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This rule will amend 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 amend the alfalfa hay calculation used in determining the average feed cost and actual dairy production margin.

This rule also will amend the Conservation Reserve Program (CRP) regulations to remove two discretionary requirements.

The rule will amend the Dairy Indemnity Program Regulation (DIPP).

In addition, the rule will update 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).

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).