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Makes targeted changes to the Dairy Margin Coverage (DMC) program by changing how a dairy producer’s production history is calculated and raising two production thresholds used in Tier I and Tier II premium rules. Producers’ production history will be based on the most recent three-year period and that history will be recalculated once every five years; two numeric thresholds in the DMC premium provisions are increased from 5,000,000 to 6,000,000.
Amends Section 1405(a)(1) of the Agricultural Act of 2014 by replacing the phrase "during any one of the 2011, 2012, or 2013 calendar years" with "in the most recent three-year history, as calculated once every five years."
Amends the heading of Section 1407(b) (Tier I) of the Agricultural Act of 2014 by striking and inserting text (exact replacement text for the heading is not specified in this section).
Amends paragraph (1) of Section 1407(b) (Tier I) by striking the numeric value "5,000,000" and inserting "6,000,000."
Amends the heading of Section 1407(c) (Tier II) of the Agricultural Act of 2014 by striking and inserting text (exact replacement text for the heading is not specified in this section).
Amends paragraph (1) of Section 1407(c) (Tier II) by striking the numeric value "5,000,000" and inserting "6,000,000."
Who is affected: Primarily dairy producers and the USDA administrators who implement the Dairy Margin Coverage program. Dairy operations will have their DMC production history based on the most recent three-year production average with that figure updated every five years, which may benefit expanding or recently increased-production farms by recognizing recent growth sooner. Conversely, producers whose production has fallen since earlier base years could see lower historical production figures if recent years are lower. Raising the Tier I and Tier II numeric thresholds from 5,000,000 to 6,000,000 changes the points at which premium or coverage tier rules apply; some mid-to-large producers may move between tiers or experience different premium calculations. USDA program staff will need to update enrollment systems and guidance to incorporate the recalculation cadence and the revised numeric thresholds. The changes are narrow and technical; they adjust calculations and thresholds rather than create new program structures or major new compliance requirements.
Replaces a fixed-calendar-year reference in the production history provision with a rolling most-recent-three-year calculation performed once every five years.
Amends subsections addressing Tier I and Tier II premiums by replacing the numeric production thresholds (striking "5,000,000" and inserting "6,000,000") and updates the headings of those subsections (heading text replaced as indicated).
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Referred to the House Committee on Agriculture.
Introduced January 9, 2025 by Nicholas A. Langworthy · Last progress January 9, 2025
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
Referred to the Subcommittee on Livestock, Dairy, and Poultry.
Referred to the House Committee on Agriculture.
Introduced in House