---
kind: "section"
citation: "7 U.S.C. § 9057"
title: "7"
title_heading: "Agriculture"
number: "9057"
heading: "Premiums for dairy margin coverage"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/9057"
units:
  - "Chapter 115 — Agricultural Commodity Policy and Programs"
  - "Subchapter III — Dairy"
  - "Part A — Dairy Margin Coverage"
---

# §9057. Premiums for dairy margin coverage

- (a) **Calculation of premiums—** For purposes of participating in [dairy margin coverage](/usc/7/9051.md?p=5), a [participating dairy operation](/usc/7/9051.md?p=7) shall pay an annual premium equal to the product obtained by multiplying—
  - (1) the coverage percentage elected by the [participating dairy operation](/usc/7/9051.md?p=7) under [section 9056(a)(2) of this title](/usc/7/9056.md?p=a-2);
  - (2) the [production history](/usc/7/9051.md?p=8) of the [participating dairy operation](/usc/7/9051.md?p=7); and
  - (3) the premium per hundredweight of milk imposed by this section for the coverage level selected.
- (b) **Tier I: premium per hundredweight for first 6,000,000 pounds of production—**
  - (1) **In general—** For the first 6,000,000 pounds of milk marketings included in the [production history](/usc/7/9051.md?p=8) of a [participating dairy operation](/usc/7/9051.md?p=7), the premium per hundredweight for each coverage level is specified in the table contained in [paragraph (2)](#b-2).
  - (2) **Producer premiums—** Except as provided in [subsection (g)](#g), the following annual premiums apply:

    | Coverage Level | Premium per Cwt. |
    | --- | --- |
    | $4.00 | None |
    | $4.50 | $0.0025 |
    | $5.00 | $0.005 |
    | $5.50 | $0.030 |
    | $6.00 | $0.050 |
    | $6.50 | $0.070 |
    | $7.00 | $0.080 |
    | $7.50 | $0.090 |
    | $8.00 | $0.100 |
    | $8.50 | $0.105 |
    | $9.00 | $0.110 |
    | $9.50 | $0.150 |

- (c) **Tier II: premium per hundredweight for production in excess of 6,000,000 pounds—**
  - (1) **In general—** For milk marketings in excess of 6,000,000 pounds included in the [production history](/usc/7/9051.md?p=8) of a [participating dairy operation](/usc/7/9051.md?p=7), the premium per hundredweight for each coverage level is specified in the table contained in [paragraph (2)](#c-2).
  - (2) **Producer premiums—** Except as provided in [subsection (g)](#g), the following annual premiums apply:

    | Coverage Level | Premium per Cwt. |
    | --- | --- |
    | $4.00 | None |
    | $4.50 | $0.0025 |
    | $5.00 | $0.005 |
    | $5.50 | $0.100 |
    | $6.00 | $0.310 |
    | $6.50 | $0.650 |
    | $7.00 | $1.107 |
    | $7.50 | $1.413 |
    | $8.00 | $1.813 |

- (d) **Time for payment of premium—** The [Secretary](/usc/7/9011.md?p=20) shall provide more than 1 method by which a [participating dairy operation](/usc/7/9051.md?p=7) may pay the premium required under this section in any manner that maximizes [participating dairy operation](/usc/7/9051.md?p=7) payment flexibility and [dairy margin coverage](/usc/7/9051.md?p=5) integrity.
- (e) **Premium obligations—**
  - (1) **Pro-ration of premium for new participants—** In the case of a [participating dairy operation](/usc/7/9051.md?p=7) that first registers to participate in [dairy margin coverage](/usc/7/9051.md?p=5) for a calendar year after the start of the calendar year, the [participating dairy operation](/usc/7/9051.md?p=7) shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the [participating dairy operation](/usc/7/9051.md?p=7) purchases the coverage.
  - (2) **Legal obligation—** A [participating dairy operation](/usc/7/9051.md?p=7) in [dairy margin coverage](/usc/7/9051.md?p=5) for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the [Secretary](/usc/7/9011.md?p=20) may waive that obligation, under terms and conditions determined by the [Secretary](/usc/7/9011.md?p=20), for any [participating dairy operation](/usc/7/9051.md?p=7) in the case of death, retirement, permanent dissolution of a [participating dairy operation](/usc/7/9051.md?p=7), or other circumstances as the [Secretary](/usc/7/9011.md?p=20) considers appropriate to ensure the integrity of [dairy margin coverage](/usc/7/9051.md?p=5).
- (f) **Repayment of premiums—**
  - (1) **In general—** Each [dairy operation](/usc/7/9051.md?p=4-A) described in [paragraph (2)](#f-2) shall be eligible to receive a repayment from the [Secretary](/usc/7/9011.md?p=20) in an amount equal to the difference between—
    - (A) the total amount of premiums paid by the [participating dairy operation](/usc/7/9051.md?p=7) under this section for each applicable calendar year; and
    - (B) the total amount of payments made to the [participating dairy operation](/usc/7/9051.md?p=7) under [section 9056 of this title](/usc/7/9056.md) for that calendar year.
  - (2) **Eligibility—** A [dairy operation](/usc/7/9051.md?p=4-A) that is eligible to receive a repayment under [paragraph (1)](#f-1) is a [dairy operation](/usc/7/9051.md?p=4-A) that—
    - (A) participated in the margin protection program, as in effect for any of calendar years 2014 through 2017; and
    - (B) submits to the [Secretary](/usc/7/9011.md?p=20) an application for the repayment at such time, in such manner, and containing such information as the [Secretary](/usc/7/9011.md?p=20) may require.
  - (3) **Method of repayment—** A [dairy operation](/usc/7/9051.md?p=4-A) that is eligible to receive a repayment under [paragraph (1)](#f-1) shall elect to receive the repayment—
    - (A) in an amount equal to 75 percent of the repayment calculated under that paragraph as credit that may be used by the [dairy operation](/usc/7/9051.md?p=4-A) for [dairy margin coverage](/usc/7/9051.md?p=5) premiums; or
    - (B) in an amount equal to 50 percent of the repayment calculated under that paragraph as a direct cash repayment.
  - (4) **Applicability—** [Paragraph (1)](#f-1) shall only apply to a calendar year during the period of calendar years 2014 through 2017 for which the amount described in [subparagraph (A)](#f-1-A) of that paragraph is greater than the amount described in [subparagraph (B)](#f-1-B) of that paragraph.
- (g) **Premium discount—** The premium per hundredweight specified in the tables contained in subsections [(b)](#b) and [(c)](#c) for each coverage level shall be reduced by 25 percent in accordance with the following:
  - (1) **In general—** For each of calendar years 2026 through 2031, for a [participating dairy operation](/usc/7/9051.md?p=7) that makes a 1-time election of coverage level in a tier and of a percentage of coverage under [section 9056(a) of this title](/usc/7/9056.md?p=a) for the 5-year period beginning in January 2026.
  - (2) **New dairy operations—** For each applicable calendar year through 2031, for a [participating dairy operation](/usc/7/9051.md?p=7) that—
    - (A) establishes a [production history](/usc/7/9051.md?p=8) pursuant to [section 9055(b) of this title](/usc/7/9055.md?p=b); and
    - (B) makes a 1-time election of coverage level in a tier and of a percentage of coverage under [section 9056(a) of this title](/usc/7/9056.md?p=a) for the period beginning with the first available calendar year and ending in December 2031.
  - (3) **Full participation required—** Notwithstanding the annual elections under [section 9056(a) of this title](/usc/7/9056.md?p=a)—
    - (A) a 1-time enrollment under this subsection shall remain in effect for the full duration applicable to a [participating dairy operation](/usc/7/9051.md?p=7) in accordance with paragraph [(1)](#g-1) or [(2)(B)](#g-2-B), as applicable; and
    - (B) a [participating dairy operation](/usc/7/9051.md?p=7) that makes a 1-time enrollment under this subsection and is noncompliant under [section 9058 of this title](/usc/7/9058.md) shall be subject to that section.

## Source credit

(Pub. L. 113–79, title I, § 1407, Feb. 7, 2014, 128 Stat. 691; Pub. L. 115–123, div. F, § 60101(b)(4), Feb. 9, 2018, 132 Stat. 312; Pub. L. 115–334, title I, § 1401(h)–(j), (k)(8), Dec. 20, 2018, 132 Stat. 4514, 4515, 4517; Pub. L. 119–21, title I, § 10313(c), July 4, 2025, 139 Stat. 100.)

## Notes

### Editorial Notes

### Amendments

2025—Subsec. (b). Pub. L. 119–21, § 10313(c)(1), substituted “6,000,000” for “5,000,000” in heading and par. (1).

Subsec. (c). Pub. L. 119–21, § 10313(c)(2), substituted “6,000,000” for “5,000,000” in heading and par. (1).

Subsec. (g)(1). Pub. L. 119–21, § 10313(c)(3)(A), substituted “2026 through 2031” for “2019 through 2023” and “January 2026” for “January 2019”.

Subsec. (g)(2). Pub. L. 119–21, § 10313(c)(3)(B), substituted “2031” for “2023” in two places.

2018—Pub. L. 115–334, § 1401(k)(8)(A), substituted “dairy margin coverage” for “margin protection program” in section catchline.

Subsec. (a). Pub. L. 115–334, § 1401(k)(8)(B), substituted “dairy margin coverage” for “the margin protection program” in introductory provisions.

Subsec. (b). Pub. L. 115–123, § 60101(b)(4)(A)(i), substituted “Tier I: premium per hundredweight for first 5,000,000 pounds of production” for “Premium per hundredweight for first 4 million pounds of production” in heading.

Subsec. (b)(1). Pub. L. 115–123, § 60101(b)(4)(A)(ii), substituted “5,000,000” for “4,000,000”.

Subsec. (b)(2). Pub. L. 115–334, § 1401(h)(1), added par. (2) and struck out former par. (2) which set forth table of annual premiums, applicable except as provided in par. (3).

Pub. L. 115–123, § 60101(b)(4)(A)(iii), in Premium per Cwt. column of table, substituted “None” for “$0.010”, “None” for “$0.025”, “$0.009” for “$0.040”, “$0.016” for “$0.055”, “$0.040” for “$0.090”, “$0.063” for “$0.217”, “$0.087” for “$0.300”, and “$0.142” for “$0.475”.

Subsec. (b)(3). Pub. L. 115–334, § 1401(h)(1), struck out par. (3). Text read as follows: “The premium per hundredweight specified in the table contained in paragraph (2) for each coverage level (except the $8.00 coverage level) shall be reduced by 25 percent for each of calendar years 2014 and 2015.”

Subsec. (c). Pub. L. 115–123, § 60101(b)(4)(B)(i), substituted “Tier II: premium per hundredweight for production in excess of 5,000,000 pounds” for “Premium per hundredweight for production in excess of 4 million pounds” in heading.

Subsec. (c)(1). Pub. L. 115–123, § 60101(b)(4)(B)(ii), substituted “5,000,000” for “4,000,000”.

Subsec. (c)(2). Pub. L. 115–334, § 1401(h)(2), added par. (2) and struck out former par. (2) which set forth table of annual producer premiums.

Subsec. (d). Pub. L. 115–334, § 1401(k)(8)(C), substituted “dairy margin coverage integrity” for “program integrity”.

Subsec. (e). Pub. L. 115–334, § 1401(k)(8)(D)(i), substituted “in dairy margin coverage” for “in the margin protection program” in two places.

Subsec. (e)(2). Pub. L. 115–334, § 1401(k)(8)(D)(ii), substituted “integrity of dairy margin coverage” for “integrity of the program”.

Subsec. (f). Pub. L. 115–334, § 1401(i), added subsec. (f).

Subsec. (g). Pub. L. 115–334, § 1401(j), added subsec. (g).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by Pub. L. 115–334 effective on Jan. 1, 2019, see section 1401(m) of Pub. L. 115–334, set out as a note under section 9051 of this title.

Amendment by Pub. L. 115–123 applicable beginning with the 2018 calendar year, see section 60101(b)(5) of Pub. L. 115–123, set out as a note under section 9051 of this title.

### Availability of Premium Discount

Pub. L. 118–158, div. D, § 4101(c)(4)(A)(ii), Dec. 21, 2024, 138 Stat. 1768, provided that: “With respect to coverage for calendar year 2025, section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) shall only apply to a participating dairy operation with respect to which the premium was reduced in accordance with that section (as applied to such participating dairy operation pursuant to section 102(c)(2)(B)(ii) of division B of the Further Continuing Appropriations and Other Extensions Act, 2024 (Public Law 118–22) [137 Stat. 115]) for calendar year 2024.”

Pub. L. 118–22, div. B, title I, § 102(c)(2)(B)(ii), Nov. 17, 2023, 137 Stat. 115, provided that: “With respect to coverage for calendar year 2024, section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) shall only apply to a participating dairy operation with respect to which the premium was reduced in accordance with that section for calendar year 2023.”