H.R. 294: Dairy Farm Resiliency Act

This bill, known as the Dairy Farm Resiliency Act, seeks to amend the Dairy Margin Coverage program established under the Agricultural Act of 2014. The main aim of the legislation is to provide enhancements and adjustments to the program to better support dairy farmers.

Key Provisions of the Bill

• Update to Production History Calculation: The bill proposes to change how the production history of dairy farms is calculated. Currently, the calculation is based on production during the years 2011, 2012, or 2013. This bill would amend this to reflect the most recent three-year history instead, assessing this calculation every five years.
• Changes to Dairy Margin Premiums:
  • Tier I Premiums: The bill proposes to increase the threshold from 5,000,000 to 6,000,000 in the context of Tier I premiums under the Dairy Margin Coverage program.
  • Tier II Premiums: Similar to Tier I, the bill also seeks to increase the Tier II premium threshold from 5,000,000 to 6,000,000.

The proposed reforms aim to better align the Dairy Margin Coverage program with current production realities, potentially providing dairy farmers with enhanced protection against fluctuations in milk prices and feed costs. The bill reflects a response to the economic challenges faced by dairy farmers and emphasizes the importance of updating outdated calculations to more accurately reflect current production conditions.

Relevant Companies

• None found