Margin protection payments
Coverage level threshold and coverage percentage
For purposes of receiving margin protection payments for a consecutive 2-month period, a participating dairy operation shall annually elect—
a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00; and
a percentage of coverage, in 5-percent increments, beginning with 25 percent and not exceeding 90 percent of the production history of the participating dairy operation.
Payment threshold
Amount of margin protection payment
The margin protection payment for the participating dairy operation shall be determined as follows:
The Secretary shall calculate the amount by which the coverage level threshold selected by the participating dairy operation exceeds the average actual dairy production margin for the consecutive 2-month period.
The amount determined under paragraph (1) shall be multiplied by—
the coverage percentage selected by the participating dairy operation; and
the production history of the participating dairy operation divided by 6.