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