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USDA/FSA RIN: 0560-AI59 Publication ID: Spring 2021 
Title: ●Supplemental Dairy Margin Coverage Payments, Marketing Assistance Loans (MAL), Loan Deficiency Payments (LDP), and Oriental Fruit Fly Program 

This rule amends the regulations for Dairy Margin Coverage (DMC) to allow supplemental dairy margin coverage payments to participating eligible dairy operations as authorized in the Consolidated Appropriations Act, 2021.  DMC provides dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed (the margin) falls below a certain level.  Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketing.  Supplemental DMC coverage is applicable to calendar years 2021, 2022, and 2023.  Participating dairy operations with supplemental production may receive supplemental payments in addition to payments based on their established production history.

In addition, the rule will change the Marketing Assistance Loans (MAL) and Loan Deficiency Payments (LDP) regulations to be consistent with provisions of the Agriculture Improvement Act of 2018 (the 2018 Farm Bill). MALs and LDPs will be available for crop years 2019 to 2023.  Market loan gains from cash redemptions and LDPs will not be subject to a payment limit.  The loan rates will be revised for all commodities except oilseeds, wool, mohair, honey, and peanuts.  The calculation change for the upland cotton loan rate may not equal less than 98 percent of the loan rate for base quality of upland cotton from the preceding year.

The rule will also implement assistance as authorized by Public Law 116-6 (The Consolidated Appropriations Act of 2019) which appropriated $9 million to the Farm Service Agency (FSA) for the purpose of making payments to producers impacted by an Oriental Fruit Fly (Bactrocera dorsalis) Quarantine as referenced in House Report 115-232.  The legislation specified funds will remain available until expended. This program will be referred to as the Oriental Fruit Fly Program (OFF).

The State of Florida and Animal and Plant Health Inspection Service (APHIS) implemented a quarantine in the Redland area of Miami-Dade County on August 28, 2015, due to oriental fruit fly detections. The quarantine covered 98.65 square miles in Miami-Dade County.  On February 13, 2016, APHIS eradicated the quarantine because three lifecycles elapsed without any new oriental fruit fly detections. Due to the timing of the APHIS implemented quarantine, it is possible that crops affected could have been intended to be harvested during the 2015 and/or 2016 crop growing seasons.

Agency: Department of Agriculture(USDA)  Priority: Economically Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 7 CFR 1430    7 CFR 1405    7 CFR 1435    7 CFR 756   
Legal Authority: Pub. L. 116-260    Pub. L. 115-334    Pub. L. 116-6, sec. 778, 133 STAT. 91   
Legal Deadline:  None
Action Date FR Cite
Final Rule  05/00/2021 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Deirdre Holder
Branch Chief, Regulatory Analysis and PRA Requirements Branch
Department of Agriculture
Farm Production and Conservation Business Center, 1400 Independence Avenue SW,
Washington, DC 20250-0572
Phone:202 205-5851