Amendment provides dairy producers with the option to annually enroll in a new margin insurance program at levels of $4.00 and up to $8.00 in increments of fifty cents. Based on the highest annual of three previous calendar years of their milk marketings, dairy producers are allowed to elect their coverage level and the percentage of coverage up to 80% at the start of the program and annually thereafter. Amendment requires the Secretary to make payments to dairy producers enrolled in the program whenever the actual dairy producer margin drops below $4.00 (or below a higher level of coverage up to $8.00).

Purpose:

An amendment numbered 99 printed in Part B of House Report 113-117 to remove Subtitle D PART I--`DAIRY PRODUCER MA RGIN PROTECTION AND DAIRY MARKET STABILIZATION PROGRAMS' and replaces it with a new `Dairy Producer Margin Insurance Program'. The amendment provides dairy producers with the option to annually enroll in a new margin insurance program at levels of $4.00 and up to $8.00 in increments of fifty cents. Based on the highest annual of three previous calendar years of their milk marketings, dairy producers are allowed to elect their coverage level and the percentage of coverage up to 80% at the start of the program and annually thereafter. Dairy producers are also allowed to update their production history annually. The Secretary is required to make payments to dairy producers enrolled in the program whenever the actual dairy producer margin drops below $4.00 (or below a higher level of coverage up to $8.00). The amendment leaves the rest of the underlying dairy title intact, including the removal of the Dairy Product Price Support Program, the MILC Program, and the Dairy Export Assistance Program and the reauthorization of the 1996 FMMO additional order provision.

House Amendment Code:

(A053)

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