7 U.S. Code § 9056 - Margin protection payments
(a) 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—
(1) 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
(b) Payment threshold
A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation.
(c) Amount of margin protection payment
The margin protection payment for the participating dairy operation shall be determined as follows:
(1) 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.