Effect of failure to pay administrative fees or premiums.

(a) A participating dairy operation that fails to pay a required administrative fee or premium payment due upon application to DMC or for a calendar year of coverage: (1) Remains legally obligated to pay such administrative fee or premium, as applicable; and (2) Upon such failure to pay the administrative fee when due, loses coverage under DMC for the coverage year; and (3) Upon such failure to pay the premium fee or receivable when due, a subsequent DMC contract cannot be approved. (b) CCC may take such actions as necessary to collect unpaid administrative fees and premium payments. [[84 FR 28176, June 18, 2019, as amended at 91 FR 1059, Jan. 12, 2026]