Dairy margin coverage

(a) Termination of administrative fee Section 1404 of the Agricultural Act of 2014 (7 U.S.C. 9054) is amended by striking subsection (c) and inserting the following: (c) No fees No participating dairy operation shall be required to pay a fee to participate in dairy margin coverage.. (b) Dairy margin coverage payments Section 1406(a)(1)(A) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(A)) is amended by striking For purposes and inserting Except in the case of coverage under section 1407(b)(1), for purposes. (c) Premiums for dairy margin coverage Section 1407 of the Agricultural Act of 2014 (7 U.S.C. 9057) is amended— (1) in subsection (a), in the matter preceding paragraph (1), by inserting under subsection (c) after dairy margin coverage; (2) by striking subsection (b) and inserting the following: (b) Premiums and election (1) No premiums for first 6,000,000 pounds of production For the first 6,000,000 pounds of milk marketings included in the production history of a participating dairy operation, the participating dairy operation may participate in dairy margin coverage without paying any premium and without making an annual coverage election. (2) Producer election A participating dairy operation may elect tier II coverage under subsection (c) on an annual basis in a manner prescribed by the Secretary that maximizes participation in dairy margin coverage under tier II.; and (3) in subsection (g)— (A) in the matter preceding paragraph (1), by striking tables contained in subsections (b) and and inserting table contained in subsection; and (B) in paragraphs (1) and (2)(B), by striking coverage level in a tier each place it appears and inserting a tier II coverage level under subsection (c). (d) Effect of failure to pay premiums Section 1408 of the Agricultural Act of 2014 (7 U.S.C. 9058) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by striking fails to pay the required annual administrative fee under section 1404 or; (B) in paragraph (1), by striking administrative fee or premiums, as the case may be and inserting premiums; and (C) in paragraph (2), by striking until the fees or and inserting for tier II coverage under section 1407(c) until the; and (2) in subsection (b), by striking administrative fees and.