s. 954 - agriculture reform, food and jobs act of 2013

7/28/2019 S. 954 - Agriculture Reform, Food and Jobs Act of 2013

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O:\WEI\WEI13462.xml [file 1 of 2] S.L.C.

113TH CONGRESS1ST SESSION S.

llTo reauthorize agricultural programs through 2018.

IN THE SENATE OF THE UNITED STATES

llllllllll

Ms. STABENOW from the Committee on Agriculture, Nutrition, and Forestry,

reported the following original bill; which was read twice and placed onthe calendar

A BILL

To reauthorize agricultural programs through 2018.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled,2

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.3

(a) IN GENERAL.This Act may be cited as the Ag-4

riculture Reform, Food, and Jobs Act of 2013.5

(b) TABLE OF CONTENTS.The table of contents for6

this Act is as follows:7Sec. 1. Short title; table of contents.

Sec. 2. Definition of Secretary.

TITLE ICOMMODITY PROGRAMS

Subtitle ARepeals and Reforms

Sec. 1101. Repeal of direct payments.

Sec. 1102. Repeal of counter-cyclical payments.


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Sec. 1103. Repeal of average crop revenue election program.

Sec. 1104. Definitions.

Sec. 1105. Base acres.

Sec. 1106. Payment yields.

Sec. 1107. Availability of adverse market payments.

Sec. 1108. Agriculture risk coverage.

Sec. 1109. Producer agreement required as condition of provision of payments.Sec. 1110. Period of effectiveness.

Subtitle BMarketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for loan com-

modities.

Sec. 1202. Loan rates for nonrecourse marketing assistance loans.

Sec. 1203. Term of loans.

Sec. 1204. Repayment of loans.

Sec. 1205. Loan deficiency payments.

Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage.

Sec. 1207. Economic adjustment assistance to users of upland cotton.

Sec. 1208. Special competitive provisions for extra long staple cotton.

Sec. 1209. Availability of recourse loans for high moisture feed grains and seed

cotton.

Sec. 1210. Adjustments of loans.

Subtitle CSugar

Sec. 1301. Sugar program.

Subtitle DDairy

PART IDAIRY PRODUCTION MARGIN PROTECTION AND DAIRY MARKET

STABILIZATION PROGRAMS

Sec. 1401. Definitions.Sec. 1402. Calculation of average feed cost and actual dairy production mar-

gins.

SUBPART ADAIRY PRODUCTION MARGIN PROTECTION PROGRAM

Sec. 1411. Establishment of dairy production margin protection program.

Sec. 1412. Participation of dairy operations in production margin protection

program.

Sec. 1413. Production history of participating dairy operations.

Sec. 1414. Basic production margin protection.

Sec. 1415. Supplemental production margin protection.

Sec. 1416. Effect of failure to pay administration fees or premiums.

SUBPART BDAIRY MARKET STABILIZATION PROGRAM

Sec. 1431. Establishment of dairy market stabilization program.

Sec. 1432. Threshold for implementation and reduction in dairy payments.

Sec. 1433. Milk marketings information.

Sec. 1434. Calculation and collection of reduced dairy operation payments.

Sec. 1435. Remitting funds to the Secretary and use of funds.

Sec. 1436. Suspension of reduced payment requirement.

Sec. 1437. Enforcement.

Sec. 1438. Audit requirements.

Sec. 1439. Study; report.


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SUBPART CADMINISTRATION

Sec. 1451. Duration.

Sec. 1452. Administration and enforcement.

PART IIDAIRY MARKET TRANSPARENCY

Sec. 1461. Dairy product mandatory reporting.Sec. 1462. Federal milk marketing order program pre-hearing procedure for

Class III pricing.

PART IIIREPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED

PROVISIONS

Sec. 1471. Repeal of dairy product price support and milk income loss contract

programs.

Sec. 1472. Repeal of dairy export incentive program.

Sec. 1473. Extension of dairy forward pricing program.

Sec. 1474. Extension of dairy indemnity program.

Sec. 1475. Extension of dairy promotion and research program.

Sec. 1476. Extension of Federal Milk Marketing Order Review Commission.

PART IVFEDERAL MILK MARKETING ORDER REFORM

Sec. 1481. Federal milk marketing orders.

PART VEFFECTIVE DATE

Sec. 1491. Effective date.

Subtitle ESupplemental Agricultural Disaster Assistance Programs

Sec. 1501. Supplemental agricultural disaster assistance programs.

Subtitle FAdministration

Sec. 1601. Administration generally.

Sec. 1602. Suspension of permanent price support authority.

Sec. 1603. Payment limitations.

Sec. 1604. Payments limited to active farmers.

Sec. 1605. Adjusted gross income limitation.

Sec. 1606. Geographically disadvantaged farmers and ranchers.

Sec. 1607. Personal liability of producers for deficiencies.

Sec. 1608. Prevention of deceased individuals receiving payments under farm

commodity programs.

Sec. 1609. Appeals.

Sec. 1610. Technical corrections.

Sec. 1611. Assignment of payments.

Sec. 1612. Tracking of benefits.Sec. 1613. Signature authority.

Sec. 1614. Implementation.

TITLE IICONSERVATION

Subtitle AConservation Reserve Program

Sec. 2001. Extension and enrollment requirements of conservation reserve pro-

gram.

Sec. 2002. Farmable wetland program.


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Sec. 2003. Duties of owners and operators.

Sec. 2004. Duties of the Secretary.

Sec. 2005. Payments.

Sec. 2006. Contract requirements.

Sec. 2007. Conversion of land subject to contract to other conserving uses.


Subtitle BConservation Stewardship Program

Sec. 2101. Conservation stewardship program.

Subtitle CEnvironmental Quality Incentives Program

Sec. 2201. Purposes.

Sec. 2202. Definitions.

Sec. 2203. Establishment and administration.

Sec. 2204. Evaluation of applications.

Sec. 2205. Duties of producers.

Sec. 2206. Limitation on payments.

Sec. 2207. Conservation innovation grants and payments.


Subtitle DAgricultural Conservation Easement Program

Sec. 2301. Agricultural Conservation Easement Program.

Subtitle ERegional Conservation Partnership Program

Sec. 2401. Regional Conservation Partnership Program.

Subtitle FOther Conservation Programs

Sec. 2501. Conservation of private grazing land.

Sec. 2502. Grassroots source water protection program.

Sec. 2503. Voluntary public access and habitat incentive program.Sec. 2504. Agriculture conservation experienced services program.

Sec. 2505. Small watershed rehabilitation program.

Sec. 2506. Emergency watershed protection program.

Sec. 2507. Terminal lakes assistance.

Sec. 2508. Study of potential improvements to the wetland mitigation process.

Subtitle GFunding and Administration

Sec. 2601. Funding.

Sec. 2602. Technical assistance.

Sec. 2603. Regional equity.

Sec. 2604. Reservation of funds to provide assistance to certain farmers or

ranchers for conservation access.

Sec. 2605. Annual report on program enrollments and assistance.

Sec. 2606. Administrative requirements for conservation programs.

Sec. 2607. Rulemaking authority.

Sec. 2608. Standards for State technical committees.

Sec. 2609. Highly erodible land and wetland conservation for crop insurance.

Sec. 2610. Adjusted gross income limitation for conservation programs.

Subtitle HRepeal of Superseded Program Authorities and Transitional

Provisions


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Sec. 2701. Comprehensive conservation enhancement program.

Sec. 2702. Emergency forestry conservation reserve program.

Sec. 2703. Wetlands reserve program.

Sec. 2704. Farmland protection program and farm viability program.

Sec. 2705. Grassland reserve program.

Sec. 2706. Agricultural water enhancement program.

Sec. 2707. Wildlife habitat incentive program.Sec. 2708. Great Lakes basin program.

Sec. 2709. Chesapeake Bay watershed program.

Sec. 2710. Cooperative conservation partnership initiative.

Sec. 2711. Environmental easement program.

Sec. 2712. Technical amendments.

TITLE IIITRADE

Subtitle AFood for Peace Act

Sec. 3001. Set-aside for support for organizations through which nonemergency

assistance is provided.

Sec. 3002. Food aid quality.

Sec. 3003. Minimum levels of assistance.

Sec. 3004. Reauthorization of Food Aid Consultative Group.

Sec. 3005. Oversight, monitoring, and evaluation of Food for Peace Act pro-

grams.

Sec. 3006. Assistance for stockpiling and rapid transportation, delivery, and

distribution of shelf-stable prepackaged foods.

Sec. 3007. Limitation on total volume of commodities monetized.

Sec. 3008. Flexibility.

Sec. 3009. Procurement, transportation, testing, and storage of agricultural

commodities for prepositioning in the United States and for-

eign countries.

Sec. 3010. Deadline for agreements to finance sales or to provide other assist-

ance.Sec. 3011. Minimum level of nonemergency food assistance.

Sec. 3012. Coordination of foreign assistance programs report.

Sec. 3013. Micronutrient fortification programs.

Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.

Sec. 3015. Prohibition on assistance for North Korea.

Subtitle BAgricultural Trade Act of 1978

Sec. 3101. Export credit guarantee programs.

Sec. 3102. Funding for market access program.

Sec. 3103. Foreign market development cooperator program.

Subtitle COther Agricultural Trade Laws

Sec. 3201. Food for Progress Act of 1985.

Sec. 3202. Bill Emerson Humanitarian Trust.

Sec. 3203. Promotion of agricultural exports to emerging markets.

Sec. 3204. McGovern-Dole International Food for Education and Child Nutri-

tion Program.

Sec. 3205. Technical assistance for specialty crops.

Sec. 3206. Global Crop Diversity Trust.

Sec. 3207. Local and regional food aid procurement projects.

Sec. 3208. Donald Payne Horn of Africa food resilience program.


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Sec. 3209. Under Secretary of Agriculture for Trade and Foreign Agricultural

Affairs.

TITLE IVNUTRITION

Subtitle ASupplemental Nutrition Assistance Program

Sec. 4001. Food distribution program on Indian reservations.Sec. 4002. Standard utility allowances based on the receipt of energy assistance

payments.

Sec. 4003. Eligibility disqualifications.

Sec. 4004. Ending supplemental nutrition assistance program benefits for lot-

tery or gambling winners.

Sec. 4005. Retail food stores.

Sec. 4006. Improving security of food assistance.

Sec. 4007. Technology modernization for retail food stores.

Sec. 4008. Use of benefits for purchase of community-supported agriculture

share.

Sec. 4009. Restaurant meals program.

Sec. 4010. Quality control standards.

Sec. 4011. Performance bonus payments.

Sec. 4012. Funding of employment and training programs.

Sec. 4013. Authorization of appropriations.

Sec. 4014. Assistance for community food projects.

Sec. 4015. Emergency food assistance.

Sec. 4016. Nutrition education.

Sec. 4017. Retail food store and recipient trafficking.

Sec. 4018. Technical and conforming amendments.

Subtitle BCommodity Distribution Programs

Sec. 4101. Commodity distribution program.

Sec. 4102. Commodity supplemental food program.

Sec. 4103. Distribution of surplus commodities to special nutrition projects.Sec. 4104. Processing of commodities.

Subtitle CMiscellaneous

Sec. 4201. Purchase of fresh fruits and vegetables for distribution to schools

and service institutions.

Sec. 4202. Seniors farmers market nutrition program.

Sec. 4203. Nutrition information and awareness pilot program.

Sec. 4204. Hunger-free communities.

Sec. 4205. Healthy Food Financing Initiative.

Sec. 4206. Pulse crop products.

Sec. 4207. Dietary Guidelines for Americans.

Sec. 4208. Purchases of locally produced foods.Sec. 4209. Multiagency task force.

Sec. 4210. Food and Agriculture Service Learning Program.

TITLE VCREDIT

Subtitle AFarmer Loans, Servicing, and Other Assistance Under the

Consolidated Farm and Rural Development Act

Sec. 5001. Farmer loans, servicing, and other assistance under the Consoli-

dated Farm and Rural Development Act.


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Subtitle BMiscellaneous

Sec. 5101. State agricultural mediation programs.

Sec. 5102. Loans to purchasers of highly fractionated land.

Sec. 5103. Removal of duplicative appraisals.

Sec. 5104. Compensation disclosure by Farm Credit System institutions.

TITLE VIRURAL DEVELOPMENT

Subtitle AReorganization of the Consolidated Farm and Rural Development

Act

Sec. 6001. Reorganization of the Consolidated Farm and Rural Development

Act.

Sec. 6002. Conforming amendments.

Subtitle BRural Electrification

Sec. 6101. Definition of rural area.

Sec. 6102. Guarantees for bonds and notes issued for electrification or tele-

phone purposes.

Sec. 6103. Expansion of 911 access.

Sec. 6104. Access to broadband telecommunications services in rural areas.

Subtitle CMiscellaneous

Sec. 6201. Distance learning and telemedicine.

Sec. 6202. Definition of rural area for purposes of the Housing Act of 1949.

Sec. 6203. Rural energy savings program.

Sec. 6204. Funding of pending rural development loan and grant applications.

Sec. 6205. Study of rural transportation issues.

Sec. 6206. Agricultural transportation policy.

Sec. 6207. Value-added agricultural market development program grants.

TITLE VIIRESEARCH, EXTENSION, AND RELATED MATTERS

Subtitle ANational Agricultural Research, Extension, and Teaching Policy

Act of 1977

Sec. 7101. National Agricultural Research, Extension, Education, and Econom-

ics Advisory Board.

Sec. 7102. Specialty crop committee.

Sec. 7103. Veterinary services grant program.

Sec. 7104. Grants and fellowships for food and agriculture sciences education.

Sec. 7105. Agricultural and food policy research centers.

Sec. 7106. Education grants to Alaska Native serving institutions and Native

Hawaiian serving institutions.

Sec. 7107. Nutrition education program.Sec. 7108. Continuing animal health and disease research programs.

Sec. 7109. Grants to upgrade agricultural and food sciences facilities at 1890

land-grant colleges, including Tuskegee University.

Sec. 7110. Grants to upgrade agricultural and food sciences facilities and

equipment at insular area land-grant institutions.

Sec. 7111. Hispanic-serving institutions.

Sec. 7112. Competitive grants for international agricultural science and edu-

cation programs.

Sec. 7113. University research.

Sec. 7114. Extension service.


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Sec. 7115. Supplemental and alternative crops.

Sec. 7116. Capacity building grants for NLGCA institutions.

Sec. 7117. Aquaculture assistance programs.

Sec. 7118. Rangeland research programs.

Sec. 7119. Special authorization for biosecurity planning and response.

Sec. 7120. Distance education and resident instruction grants program for in-

sular area institutions of higher education.

Subtitle BFood, Agriculture, Conservation, and Trade Act of 1990

Sec. 7201. Best utilization of biological applications.

Sec. 7202. Integrated management systems.

Sec. 7203. Sustainable agriculture technology development and transfer pro-

gram.

Sec. 7204. National Training Program.

Sec. 7205. National Genetics Resources Program.

Sec. 7206. National Agricultural Weather Information System.

Sec. 7207. Agricultural Genome Initiative.

Sec. 7208. High-priority research and extension initiatives.

Sec. 7209. Organic agriculture research and extension initiative.

Sec. 7210. Farm business management.

Sec. 7211. Regional centers of excellence.

Sec. 7212. Assistive technology program for farmers with disabilities.

Sec. 7213. National rural information center clearinghouse.

Subtitle CAgricultural Research, Extension, and Education Reform Act of

1998

Sec. 7301. Relevance and merit of agricultural research, extension, and edu-

cation funded by the Department.

Sec. 7302. Integrated research, education, and extension competitive grants

program.

Sec. 7303. Support for research regarding diseases of wheat, triticale, and bar-

ley caused by Fusarium graminearum or by Tilletia indica.

Sec. 7304. Grants for youth organizations.

Sec. 7305. Specialty crop research initiative.

Sec. 7306. Food animal residue avoidance database program.

Sec. 7307. Office of pest management policy.

Sec. 7308. Authorization of regional integrated pest management centers.

Subtitle DOther Laws

Sec. 7401. Critical Agricultural Materials Act.

Sec. 7402. Equity in Educational Land-Grant Status Act of 1994.

Sec. 7403. Research Facilities Act.

Sec. 7404. Competitive, Special, and Facilities Research Grant Act.

Sec. 7405. Enhanced use lease authority pilot program under Department ofAgriculture Reorganization Act of 1994.

Sec. 7406. Renewable Resources Extension Act of 1978.

Sec. 7407. National Aquaculture Act of 1980.

Sec. 7408. Beginning farmer and rancher development program under Farm

Security and Rural Investment Act of 2002.

Subtitle EFood, Conservation, and Energy Act of 2008

PART IAGRICULTURAL SECURITY


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Sec. 7501. Agricultural biosecurity communication center.

Sec. 7502. Assistance to build local capacity in agricultural biosecurity plan-

ning, preparation, and response.

Sec. 7503. Research and development of agricultural countermeasures.

Sec. 7504. Agricultural biosecurity grant program.

PART IIMISCELLANEOUS

Sec. 7511. Grazinglands research laboratory.

Sec. 7512. Budget submission and funding.

Sec. 7513. Natural products research program.

Sec. 7514. Sun grant program.

Subtitle FMiscellaneous

Sec. 7601. Foundation for Food and Agriculture Research.

Sec. 7602. Agricultural and food law research, legal tools, and information.

TITLE VIIIFORESTRY

Subtitle ARepeal of Certain Forestry Programs

Sec. 8001. Forest land enhancement program.

Sec. 8002. Hispanic-serving institution agricultural land national resources

leadership program.

Sec. 8003. Tribal watershed forestry assistance program.

Subtitle BReauthorization of Cooperative Forestry Assistance Act of 1978

Programs

Sec. 8101. State-wide assessment and strategies for forest resources.

Subtitle CReauthorization of Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.Sec. 8202. Office of International Forestry.

Sec. 8203. Insect and disease infestation.

Sec. 8204. Stewardship end result contracting projects.

Sec. 8205. Healthy forests reserve program.

Subtitle DMiscellaneous Provisions

Sec. 8301. McIntire-Stennis Cooperative Forestry Act.

Sec. 8302. Revision of strategic plan for forest inventory and analysis.

Sec. 8303. Reimbursement of fire funds.

TITLE IXENERGY

Sec. 9001. Definitions.Sec. 9002. Biobased markets program.

Sec. 9003. Biorefinery, renewable chemical, and biobased product manufac-

turing assistance.

Sec. 9004. Bioenergy program for advanced biofuels.

Sec. 9005. Biodiesel fuel education program.

Sec. 9006. Rural Energy for America Program.

Sec. 9007. Biomass research and development.

Sec. 9008. Feedstock flexibility program for bioenergy producers.

Sec. 9009. Biomass Crop Assistance Program.

Sec. 9010. Repeal of forest biomass for energy.


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Sec. 9011. Community wood energy program.

Sec. 9012. Repeal of renewable fertilizer study.

TITLE XHORTICULTURE

Sec. 10001. Specialty crops market news allocation.

Sec. 10002. Repeal of grant program to improve movement of specialty crops.

Sec. 10003. Farmers market and local food promotion program.Sec. 10004. Study on local food production and program evaluation.

Sec. 10005. Organic agriculture.

Sec. 10006. Food safety education initiatives.

Sec. 10007. Coordinated plant management program.

Sec. 10008. Specialty crop block grants.

Sec. 10009. Recordkeeping, investigations, and enforcement.

Sec. 10010. Report on honey.

Sec. 10011. Removal of AMS inspection authority over apples in bulk bins.

Sec. 10012. Organic product promotion orders.


TITLE XICROP INSURANCE

Sec. 11001. Supplemental coverage option.

Sec. 11002. Crop margin coverage option.

Sec. 11003. Premium amounts for catastrophic risk protection.

Sec. 11004. Permanent enterprise unit.

Sec. 11005. Enterprise units for irrigated and nonirrigated crops.

Sec. 11006. Data collection.

Sec. 11007. Adjustment in actual production history to establish insurable

yields.

Sec. 11008. Submission and review of policies.

Sec. 11009. Board review and approval.

Sec. 11010. Consultation.

Sec. 11011. Budget limitations on renegotiation of the Standard Reinsurance

Agreement.

Sec. 11012. Test weight for corn.

Sec. 11013. Stacked Income Protection Plan for producers of upland cotton.

Sec. 11014. Peanut revenue crop insurance.

Sec. 11015. Authority to correct errors.

Sec. 11016. Implementation.

Sec. 11017. Approval of costs for research and development.

Sec. 11018. Whole farm risk management insurance.

Sec. 11019. Study of food safety insurance.

Sec. 11020. Crop insurance for livestock.

Sec. 11021. Margin coverage for catfish.

Sec. 11022. Poultry business disruption insurance policy.

Sec. 11023. Study of crop insurance for seafood harvesters.

Sec. 11024. Biomass and sweet sorghum energy crop insurance policies.

Sec. 11025. Crop insurance for organic crops.

Sec. 11026. Research and development.

Sec. 11027. Pilot programs.

Sec. 11028. Index-based weather insurance pilot program.

Sec. 11029. Enhancing producer self-help through farm financial

benchmarking.

Sec. 11030. Beginning farmer and rancher provisions.

Sec. 11031. Agricultural management assistance, risk management education,

and organic certification cost share assistance.


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Sec. 11032. Crop production on native sod.

Sec. 11033. Technical amendments.

Sec. 11034. Greater accessibility for crop insurance.

Sec. 11035. GAO crop insurance fraud report.

TITLE XIIMISCELLANEOUS

Subtitle ASocially Disadvantaged Producers and Limited Resource

Producers

Sec. 12001. Outreach and assistance for socially disadvantaged farmers and

ranchers and veteran farmers and ranchers.

Sec. 12002. Socially disadvantaged farmers and ranchers policy research cen-

ter.

Sec. 12003. Office of Advocacy and Outreach.

Subtitle BLivestock

Sec. 12101. Wildlife reservoir zoonotic disease initiative.

Sec. 12102. Trichinae certification program.

Sec. 12103. National Aquatic Animal Health Plan.Sec. 12104. Sheep production and marketing grant program.

Sec. 12105. Feral swine eradication pilot program.

Sec. 12106. National animal health laboratory network.

Sec. 12107. National poultry improvement plan (NPIP).

Subtitle COther Miscellaneous Provisions

Sec. 12201. Military Veterans Agricultural Liaison.

Sec. 12202. Information gathering.

Sec. 12203. Grants to improve supply, stability, safety, and training of agricul-

tural labor force.

Sec. 12204. Noninsured crop assistance program.

Sec. 12205. Bioenergy coverage in noninsured crop assistance program.Sec. 12206. Regional economic and infrastructure development.

Sec. 12207. Office of Tribal Relations.

Sec. 12208. Acer access and development program.

Sec. 12209. Prohibition on attending an animal fight or causing a minor to at-

tend an animal fight; enforcement of animal fighting provi-

sions.

Sec. 12210. Pima cotton trust fund.

Sec. 12211. Agriculture wool apparel manufacturers trust fund.

Sec. 12212. Citrus disease research and development trust fund.

SEC. 2. DEFINITION OF SECRETARY.1

In this Act, the term Secretary means the Sec-2

retary of Agriculture.3


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TITLE ICOMMODITY1

PROGRAMS2

Subtitle ARepeals and Reforms3

SEC. 1101. REPEAL OF DIRECT PAYMENTS.4

(a) REPEAL.Sections 1103 and 1303 of the Food,5

Conservation, and Energy Act of 2008 (7 U.S.C. 8713,6

8753) are repealed.7

(b) CONTINUED APPLICATION FOR 2013 CROP8

YEAR.Sections 1103 and 1303 of the Food, Conserva-9

tion, and Energy Act of 2008 (7 U.S.C. 8713, 8753), as10

in effect on the day before the date of enactment of this11

Act, shall continue to apply through the 2013 crop year12

with respect to all covered commodities (as defined in sec-13

tion 1001 of that Act (7 U.S.C. 8702)) (except pulse14

crops) and peanuts on a farm.15

SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS.16

(a) REPEAL.Sections 1104 and 1304 of the Food,17

Conservation, and Energy Act of 2008 (7 U.S.C. 8714,18

8754) are repealed.19


YEAR

.Sections 1104 and 1304 of the Food, Conserva-21

tion, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as22

in effect on the day before the date of enactment of this23

Act, shall continue to apply through the 2013 crop year24

with respect to all covered commodities (as defined in sec-25


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tion 1001 of that Act (7 U.S.C. 8702)) and peanuts on1

a farm.2

SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION3

PROGRAM.4

(a) REPEAL.Section 1105 of the Food, Conserva-5

tion, and Energy Act of 2008 (7 U.S.C. 8715) is repealed.6


YEAR.Section 1105 of the Food, Conservation, and En-8

ergy Act of 2008 (7 U.S.C. 8715), as in effect on the day9

before the date of enactment of this Act, shall continue10

to apply through the 2013 crop year with respect to all11

covered commodities (as defined in section 1001 of that12

Act (7 U.S.C. 8702)) and peanuts on a farm for which13

the irrevocable election under section 1105 of that Act is14

made before the date of enactment of this Act.15

SEC. 1104. DEFINITIONS.16

In this subtitle, subtitle B, and subtitle F:17

(1) ACTUAL CROP REVENUE.The term ac-18

tual crop revenue, with respect to a covered com-19

modity for a crop year, means the amount deter-20

mined by the Secretary under section 1108(c)(3).21

(2) ADVERSE MARKET PAYMENT.The term22

adverse market payment means a payment made23

to producers on a farm under section 1107.24


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(3) AGRICULTURE RISK COVERAGE GUAR-1

ANTEE.The term agriculture risk coverage guar-2

antee, with respect to a covered commodity for a3

crop year, means the amount determined by the Sec-4

retary under section 1108(c)(4).5

(4) AGRICULTURE RISK COVERAGE PAYMENT.6

The term agriculture risk coverage payment7

means a payment under section 1108(c).8

(5) AVERAGE INDIVIDUAL YIELD.The term9

average individual yield means the yield reported10

by a producer for purposes of subtitle A of the Fed-11

eral Crop Insurance Act (7 U.S.C. 1501 et seq.), to12

the maximum extent practicable.13

(6) BASE ACRES.The term base acres, with14

respect to a covered commodity on a farm, means15

the number of acres established under section 110116

or 1302 of the Farm Security and Rural Investment17

Act of 2002 (7 U.S.C. 7911, 7952) as in effect on18

the date of enactment of this Act, subject to any ad-19

justment under section 1105 of this Act.20

(7) COUNTY COVERAGE.For the purposes of21

agriculture risk coverage under section 1108, the22

term county coverage means coverage determined23

using the total quantity of all acreage in a county24

of the covered commodity that is planted or pre-25


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vented from being planted for harvest by a producer1

with the yield determined by the average county2

yield described in subsection (c) of that section.3

(8) COVERED COMMODITY.4

(A) IN GENERAL.The term covered5

commodity means wheat, corn, grain sorghum,6

barley, oats, long grain rice, medium grain rice,7

pulse crops, soybeans, other oilseeds, and pea-8

nuts.9

(B) POPCORN.The Secretary10

(i) shall study the feasibility of includ-11

ing popcorn as a covered commodity by12

2014; and13

(ii) if the Secretary determines it to14

be feasible, shall designate popcorn as a15

covered commodity.16

(9) ELIGIBLE ACRES.17

(A) IN GENERAL.Except as provided in18

subparagraphs (B) through (D), the term eli-19

gible acres means all acres planted or pre-20

vented from being planted to all covered com-21

modities on a farm in any crop year.22

(B) MAXIMUM.Except as provided in23

subparagraph (C), the total quantity of eligible24

acres on a farm determined under subpara-25


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graph (A) shall not exceed the average total1

acres planted or prevented from being planted2

to covered commodities and upland cotton on3

the farm for the 2009 through 2012 crop years,4

as determined by the Secretary.5

(C) ADJUSTMENT.The Secretary shall6

provide for an adjustment, as appropriate, in7

the eligible acres for covered commodities for a8

farm if any of the following circumstances oc-9

curs:10

(i) If a conservation reserve contract11

for a farm in a county entered into under12

section 1231 of the Food Security Act of13

1985 (16 U.S.C. 3831) expires or is volun-14

tarily terminated or cropland is released15

from coverage under a conservation reserve16

contract, the Secretary shall provide for an17

adjustment, as appropriate, in the eligible18

acres for the farm to a total quantity that19

is the higher of20

(I) the total base acreage for the21

farm, less any upland cotton base22

acreage, that was suspended during23

the conservation reserve contract; or24


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(II) the product obtained by mul-1

tiplying2

(aa) the average proportion3

that4

(AA) the total number5

of acres planted to covered6

commodities and upland cot-7

ton in the county for crop8

years 2009 through 2012;9

bears to10

(BB) the total number11

of all acres of covered com-12

modities, grassland, and up-13

land cotton acres in the14

county for the same crop15

years; by16

(bb) the total acres for17

which coverage has expired, vol-18

untarily terminated, or been re-19

leased under the conservation re-20

serve contract.21

(ii) The producer has eligible oilseed22

acreage as the result of the Secretary des-23

ignating additional oilseeds, which shall be24

determined in the same manner as eligible25


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oilseed acreage under section1

1101(a)(1)(D) of the Food, Conservation,2

and Energy Act of 2008 (7 U.S.C.3

8711(a)(1)(D)).4

(iii) The producer has any acreage not5

cropped during the 2009 through 20126

crop years, but placed into an established7

rotation practice for the purposes of en-8

riching land or conserving moisture for9

subsequent crop years, including summer10

fallow, as determined by the Secretary.11

(D) EXCLUSION.The term eligible12

acres does not include any crop subsequently13

planted during the same crop year on the same14

land for which the first crop is eligible for pay-15

ments under this subtitle, unless the crop was16

planted in an area approved for double crop-17

ping, as determined by the Secretary.18

(10) EXTRA LONG STAPLE COTTON.The term19

extra long staple cotton means cotton that20

(A) is produced from pure strain varieties21

of the Barbadense species or any hybrid of the22

species, or other similar types of extra long sta-23

ple cotton, designated by the Secretary, having24

characteristics needed for various end uses for25


19/1147

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which United States upland cotton is not suit-1

able and grown in irrigated cotton-growing re-2

gions of the United States designated by the3

Secretary or other areas designated by the Sec-4

retary as suitable for the production of the vari-5

eties or types; and6

(B) is ginned on a roller-type gin or, if au-7

thorized by the Secretary, ginned on another8

type gin for experimental purposes.9

(11) INDIVIDUAL COVERAGE.For purposes of10

agriculture risk coverage under section 1108, the11

term individual coverage means coverage deter-12

mined using the total quantity of all acreage in a13

county of the covered commodity that is planted or14

prevented from being planted for harvest by a pro-15

ducer with the yield determined by the average indi-16

vidual yield of the producer described in subsection17

(c) of that section.18

(12) MEDIUM GRAIN RICE.The term medium19

grain rice includes short grain rice.20

(13) OTHER OILSEED.The term other oil-21

seed means a crop of sunflower seed, rapeseed,22

canola, safflower, flaxseed, mustard seed, crambe,23

sesame seed, or any oilseed designated by the Sec-24

retary.25


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(14) PAYMENT ACRES.The term payment1

acres means, in the case of adverse market pay-2

ments, 85 percent of the base acres for a covered3

commodity on a farm on which adverse market pay-4

ments are made.5

(15) PAYMENT YIELD.The term payment6

yield means the yield established for adverse mar-7

ket payments under section 1102 or 1302 of the8

Farm Security and Rural Investment Act of 2002 (79

U.S.C. 7912, 7952) as in effect on the date of enact-10

ment of this Act, or under section 1106 of this Act,11

for a farm for a covered commodity.12

(16) PRODUCER.13

(A) IN GENERAL.The term producer14

means an owner, operator, landlord, tenant, or15

sharecropper that shares in the risk of pro-16

ducing a crop and is entitled to share in the17

crop available for marketing from the farm, or18

would have shared had the crop been produced.19

(B) HYBRID SEED.In determining20

whether a grower of hybrid seed is a producer,21

the Secretary shall22

(i) not take into consideration the ex-23

istence of a hybrid seed contract; and24


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(ii) ensure that program requirements1

do not adversely affect the ability of the2

grower to receive a payment under this3

title.4

(17) PULSE CROP.The term pulse crop5

means dry peas, lentils, small chickpeas, and large6

chickpeas.7

(18) STATE.The term State means8

(A) a State;9

(B) the District of Columbia;10

(C) the Commonwealth of Puerto Rico;11

and12

(D) any other territory or possession of the13

United States.14

(19) REFERENCE PRICE.The term reference15

price means the price per bushel, pound, or hun-16

dredweight (or other appropriate unit) of a covered17

commodity used to determine the payment rate for18

adverse market payments.19

(20) TRANSITIONAL YIELD.The term transi-20

tional yield has the meaning given the term in sec-21

tion 502(b) of the Federal Crop Insurance Act (722

U.S.C. 1502(b)).23


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(21) UNITED STATES.The term United1

States, when used in a geographical sense, means2

all of the States.3

(22) UNITED STATES PREMIUM FACTOR.The4

term United States Premium Factor means the5

percentage by which the difference in the United6

States loan schedule premiums for Strict Middling7

(SM) 118-inch upland cotton and for Middling (M)8

1332-inch upland cotton exceeds the difference in the9

applicable premiums for comparable international10

qualities.11

SEC. 1105. BASE ACRES.12

(a) ADJUSTMENT OF BASEACRES.13

(1) IN GENERAL.The Secretary shall provide14

for an adjustment, as appropriate, in the base acres15

for covered commodities for a farm whenever any of16

the following circumstances occurs:17

(A) A conservation reserve contract en-18

tered into under section 1231 of the Food Secu-19

rity Act of 1985 (16 U.S.C. 3831) with respect20

to the farm expires or is voluntarily terminated,21

or was terminated or expired during the period22

beginning on October 1, 2012, and ending on23

the date of enactment of this Act.24


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(B) Cropland is released from coverage1

under a conservation reserve contract by the2

Secretary, or was released during the period be-3

ginning on October 1, 2012, and ending on the4

date of enactment of this Act.5

(C) The producer has eligible pulse crop6

acreage, which shall be determined in the same7

manner as eligible oilseed acreage under section8

1101(a)(2) of the Farm Security and Rural In-9

vestment Act of 2002 (7 U.S.C. 7911(a)(2)).10

(D) The producer has eligible oilseed acre-11

age as the result of the Secretary designating12

additional oilseeds, which shall be determined in13

the same manner as eligible oilseed acreage14

under section 1101(a)(2) of the Farm Security15

and Rural Investment Act of 2002 (7 U.S.C.16

7911(a)(2)).17

(2) SPECIAL CONSERVATION RESERVE ACREAGE18

PAYMENT RULES.For the crop year in which a19

base acres adjustment under subparagraph (A) or20

(B) of paragraph (1) is first made, the producer on21

the farm shall elect to receive either adverse market22

payments with respect to the acreage added to the23

farm under this subsection or a prorated payment24


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under the conservation reserve contract, but not1

both.2

(3) OPTIONAL ADJUSTMENT.3

(A) ELECTION.4

(i) IN GENERAL.For the purpose of5

making adverse market payments, the Sec-6

retary shall give a producer on a farm a 1-7

time opportunity to adjust the peanut base8

acres on the farm.9

(ii) NOTICE.As soon as practicable10

after the date of enactment of this Act, the11

Secretary shall provide notice of the elec-12

tion described in clause (i) to producers on13

farms with peanut base acres, including14

(I) the manner in which the elec-15

tion is to be transmitted to the Sec-16

retary;17

(II) a deadline for transmission;18

and19

(III) notification that the election20

is a 1-time opportunity.21

(iii) EFFECT OF FAILURE TO MAKE22

ELECTION.If the producer on a farm23

fails to notify the Secretary of an election24

by the deadline described in clause (ii), the25


25/1147

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producer shall be considered to have not1

elected to update the peanut base acres on2

the farm.3

(B) CALCULATION.4

(i) IN GENERAL.If the producer on5

a farm makes the election described in6

subparagraph (A), the base acres for pea-7

nuts on the farm established pursuant to8

section 1302 of the Farm Security and9

Rural Investment Act of 2002 (7 U.S.C.10

7952) shall be equal to the average acreage11

planted on the farm to peanuts for harvest12

or similar purposes for the 2009 through13

2012 crop years, as determined by the Sec-14

retary.15

(ii) INCLUSIONS.In making the cal-16

culation described in clause (i), the Sec-17

retary shall include18

(I) any acreage on the farm that19

the producer was prevented from20

planting to peanuts during the 200921

through 2012 crop years because of22

drought, flood, or other natural dis-23

aster, or other condition beyond the24

control of the producer;25


26/1147

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(II) any crop year in which pea-1

nuts were not planted on the farm;2

and3

(III) any adjustment, as appro-4

priate, whenever either of the fol-5

lowing occurs:6

(aa) A conservation reserve7

contract entered into under sec-8

tion 1231 of the Food Security9

Act of 1985 (16 U.S.C. 3831)10

with respect to the peanut base11

acres on the farm expires or is12

voluntarily terminated.13

(bb) Peanut cropland is re-14

leased from coverage under a15

conservation reserve contract by16

the Secretary.17

(C) LIMIT.18

(i) IN GENERAL.If the producer on19

a farm makes the election described in20

subparagraph (A), the Secretary shall en-21

sure that the adjustment does not result in22

a net increase in the total base acres for23

the farm (including the upland cotton base24

acres described in subsection (e)).25


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(ii) REDUCTION REQUIRED.If the1

adjustment in base acres made pursuant to2

an election described in subparagraph (A)3

results in a net increase in the total base4

acres of all covered commodities and up-5

land cotton on the farm, the Secretary6

shall reduce the base acres on the farm for7

all covered commodities (other than pea-8

nuts) and upland cotton proportionately,9


(b) PREVENTION OF EXCESS BASEACRES.11

(1) REQUIRED REDUCTION.If the sum of the12

base acres for a farm, together with the acreage de-13

scribed in paragraph (2), exceeds the actual crop-14

land acreage of the farm, the Secretary shall reduce15

the base acres for 1 or more covered commodities for16

the farm so that the sum of the base acres and acre-17

age described in paragraph (2) does not exceed the18

actual cropland acreage of the farm.19

(2) OTHER ACREAGE.For purposes of para-20

graph (1), the Secretary shall include the following:21

(A) Any acreage on the farm enrolled in22

the conservation reserve program or agricul-23

tural conservation easement program under24

subchapter B of chapter 1 of subtitle D and25


28/1147

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subtitle H, respectively, of title XII of the Food1

Security Act of 1985 (16 U.S.C. 3831 et seq.).2

(B) Any other acreage on the farm en-3

rolled in a Federal conservation program for4

which payments are made in exchange for not5

producing an agricultural commodity on the6

acreage.7

(C) Any eligible pulse crop acreage, which8

shall be determined in the same manner as eli-9

gible oilseed acreage under section 1101(a)(2)10

of the Farm Security and Rural Investment Act11

of 2002 (7 U.S.C. 7911(a)(2)).12

(D) If the Secretary designates additional13

oilseeds, any eligible oilseed acreage, which shall14

be determined in the same manner as eligible15

oilseed acreage under section 1101(a)(2) of the16

Farm Security and Rural Investment Act of17

2002 (7 U.S.C. 7911(a)(2)).18

(3) SELECTION OF ACRES.The Secretary shall19

give the producer on the farm the opportunity to se-20

lect the base acres for a covered commodity for the21

farm against which the reduction required by para-22

graph (1) will be made.23

(4) EXCEPTION FOR DOUBLE-CROPPED ACRE-24

AGE.In applying paragraph (1), the Secretary25


29/1147

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shall make an exception in the case of double crop-1

ping, as determined by the Secretary.2

(c) REDUCTION IN BASEACRES.3

(1) REDUCTION AT OPTION OF PRODUCER.4

(A) IN GENERAL.The producer on a5

farm may reduce, at any time, the base acres6

for any covered commodity for the farm.7

(B) EFFECT OF REDUCTION.A reduction8

under subparagraph (A) shall be permanent9

and made in a manner prescribed by the Sec-10

retary.11

(2) REQUIRED ACTION BY SECRETARY.12

(A) IN GENERAL.The Secretary shall13

proportionately reduce base acres on a farm for14

covered commodities for land that has been sub-15

divided and developed for multiple residential16

units or other nonfarming uses if the size of the17

tracts and the density of the subdivision is such18

that the land is unlikely to return to the pre-19

vious agricultural use, unless the producers on20

the farm demonstrate that the land21

(i) remains devoted to commercial ag-22

ricultural production; or23

(ii) is likely to be returned to the pre-24

vious agricultural use.25


30/1147

30


(B) REQUIREMENT.The Secretary shall1

establish procedures to identify land described2

in subparagraph (A).3

(3) REVIEW AND REPORT.Each year, to en-4

sure, to the maximum extent practicable, that pay-5

ments are received only by producers, the Secretary6

shall submit to Congress a report that describes the7

results of the actions taken under paragraph (2).8

(d) TREATMENT OF FARMS WITH LIMITED BASE9

ACRES.10

(1) PROHIBITION ON PAYMENTS.Except as11

provided in paragraph (2) and notwithstanding any12

other provision of this title, a producer on a farm13

may not receive adverse market payments if the sum14

of the base acres of the farm is 10 acres or less, as15

determined by the Secretary.16

(2) EXCEPTIONS.Paragraph (1) shall not17

apply to a farm owned or operated by18

(A) a socially disadvantaged farmer (as de-19

fined in section 3002 of the Consolidated Farm20

and Rural Development Act); or21

(B) a limited resource farmer or rancher,22

as defined by the Secretary.23

(3) DATA COLLECTION AND PUBLICATION.24

The Secretary shall25


31/1147

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(A) collect and publish segregated data1

and survey information about farm profiles, uti-2

lization of land, and crop production; and3

(B) perform an evaluation on the supply4

and price of fruits and vegetables based on the5

effects of suspension of base acres under this6

section.7

(e) TREATMENT OF FARMS WITH UPLAND COTTON8

BASE ACRES.The Secretary shall maintain a record of9

farms with upland cotton base acres in effect on the day10

before the date of enactment of this Act.11

SEC. 1106. PAYMENT YIELDS.12

(a) DESIGNATED OILSEED OR ELIGIBLE PULSE13

CROP.14

(1) ADJUSTMENT.For the purpose of making15

adverse market payments under this subtitle, the16

Secretary shall provide for the establishment of a17

yield for each farm for any designated oilseed or eli-18

gible pulse crop for which a payment yield was not19

established under section 1102 of the Farm Security20

and Rural Investment Act of 2002 (7 U.S.C. 7912)21

in accordance with this section.22

(2) PAYMENT YIELDS FOR DESIGNATED OIL-23

SEEDS AND ELIGIBLE PULSE CROPS.24


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(A) DETERMINATION OF AVERAGE1

YIELD.In the case of designated oilseeds and2

eligible pulse crops, the Secretary shall deter-3

mine the average yield per planted acre for the4

designated oilseed or pulse crop on a farm for5

the 1998 through 2001 crop years, excluding6

any crop year in which the acreage planted to7

the designated oilseed or pulse crop was zero.8

(B) ADJUSTMENT FOR PAYMENT YIELD.9

(i) IN GENERAL.The payment yield10

for a farm for a designated oilseed or eligi-11

ble pulse crop shall be equal to the product12

of the following:13

(I) The average yield for the des-14

ignated oilseed or pulse crop deter-15

mined under subparagraph (A).16

(II) The ratio resulting from di-17

viding the national average yield for18

the designated oilseed or pulse crop19

for the 1981 through 1985 crops by20

the national average yield for the des-21

ignated oilseed or pulse crop for the22

1998 through 2001 crops.23

(ii) NO NATIONAL AVERAGE YIELD IN-24

FORMATION AVAILABLE.To the extent25


33/1147

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that national average yield information for1

a designated oilseed or pulse crop is not2

available, the Secretary shall use such in-3

formation as the Secretary determines to4

be fair and equitable to establish a na-5

tional average yield under this section.6

(C) USE OF PARTIAL COUNTY AVERAGE7

YIELD.If the yield per planted acre for a crop8

of a designated oilseed or pulse crop for a farm9

for any of the 1998 through 2001 crop years10

was less than 75 percent of the county yield for11

that designated oilseed or pulse crop, the Sec-12

retary shall assign a yield for that crop year13

equal to 75 percent of the county yield for the14

purpose of determining the average under sub-15

paragraph (A).16

(D) NO HISTORIC YIELD DATA AVAIL-17

ABLE.In the case of establishing yields for18

designated oilseeds and eligible pulse crops, if19

historic yield data is not available, the Sec-20

retary shall use the ratio for dry peas calculated21

under subparagraph (B)(i)(II) in determining22

the yields for designated oilseeds and eligible23

pulse crops, as determined to be fair and equi-24

table by the Secretary.25


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(b) RICE.1

(1) ADJUSTMENT.For the purpose of making2

adverse market payments under this subtitle, the3

Secretary shall give a producer on a farm a 1-time4

opportunity to adjust the payment yield for base5

acres of rice on the farm that was established under6

section 1102 of the Farm Security and Rural Invest-7

ment Act of 2002 (7 U.S.C. 7912).8

(2) ELECTION.9

(A) NOTICE.As soon as practicable after10

the date of enactment of this Act, the Secretary11

shall provide notice of the election described in12

paragraph (1) to producers on farms with rice13

base acres, including14

(i) the manner in which the election is15

to be transmitted to the Secretary;16

(ii) a deadline for transmission; and17

(iii) notification that the election is a18

1-time opportunity.19

(B) EFFECT OF FAILURE TO MAKE ELEC-20

TION.If the producer on a farm fails to notify21

the Secretary of an election by the deadline de-22

scribed in subparagraph (A), the producer shall23

be considered to have not elected to update the24


35/1147

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payment yields for base acres of rice on the1

farm.2

(3) CALCULATION.3

(A) IN GENERAL.If the producer on a4

farm makes the election described in paragraph5

(2), the Secretary shall adjust the payment6

yields for the base acres of rice using an aver-7

age yield described in subparagraph (B) and8

adjustment described in subparagraph (C).9

(B) DETERMINATION OF AVERAGE10

YIELD.Subject to subparagraph (D), the Sec-11

retary shall determine the average yield per12

planted acre for the rice on the farm for the13

2009 through 2012 crop years, excluding any14

crop year in which the acreage planted to rice15

was zero.16

(C) DETERMINATION OF ADJUSTMENT.17

The Secretary shall adjust the payment yield18

for the base acres of rice on the farm that was19

established under section 1102 of the Farm Se-20

curity and Rural Investment Act of 2002 (721

U.S.C. 7912) in accordance with the following:22

(i) In a case in which less than 5023

percent of the rice base acres on the farm24

were planted to rice, on average, during25


36/1147

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the 2009 through 2012 crop years, the ad-1

justment shall be equal to the sum ob-2

tained by adding to the payment yield3

(I) the product obtained by mul-4

tiplying5

(aa) the difference between6

the average yield and the pay-7

ment yield; by8

(bb) the percent of rice9

planted on the base acres of rice10

on the farm, on average.11

(ii) In a case in which more than 5012

percent of the rice base acres on the farm13

were planted to rice, on average, during14

the 2009 through 2012 crop years, the15

payment yield shall be equal to the product16

obtained by multiplying17

(I) the average yield; by18

(II) 90 percent.19

(D) USE OF PARTIAL COUNTY AVERAGE20

YIELD.If the yield per planted acre for a crop21

of rice for a farm for any of the 2009 through22

2012 crop years was less than 75 percent of the23

county yield for that rice crop, the Secretary24

shall assign a yield for that crop year equal to25


37/1147

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75 percent of the county yield for purposes of1

determining the average under subparagraph2

(B).3

(c) PEANUTS.4

(1) ADJUSTMENT.If the producer on a farm5

elects to adjust the peanut base acres for the farm6

pursuant to section 1105, the Secretary shall adjust7

the payment yields for the base acres of peanuts for8

purposes of making adverse market payments.9

(2) CALCULATION.Notwithstanding the pay-10

ment yields established under section 1102 of the11

Farm Security and Rural Investment Act of 2002 (712

U.S.C. 7912), the payment yield for the base acres13

of peanuts adjusted pursuant to section 1105 shall14

be the average yield per planted acre for such base15

acres for the 2009 through 2012 crop years, exclud-16

ing any crop year in which the acreage planted to17

peanuts was zero.18

(3) USE OF PARTIAL COUNTY AVERAGE19

YIELD.If the yield per planted acre for a crop of20

peanuts for a farm for any of the 2009 through21

2012 crop years was less than 75 percent of the22

county yield for that peanut crop, the Secretary23

shall assign a yield for that crop year equal to 7524


38/1147

38


percent of the county yield for purposes of deter-1

mining the average under paragraph (2).2

SEC. 1107. AVAILABILITY OF ADVERSE MARKET PAYMENTS.3

(a) PAYMENT REQUIRED.For each of the 20144

through 2018 crop years for each covered commodity, the5

Secretary shall make adverse market payments to pro-6

ducers on farms for which payment yields and base acres7

are established with respect to the covered commodity if8

the Secretary determines that the actual price for the cov-9

ered commodity is less than the reference price for the10

covered commodity.11

(b) ACTUAL PRICE.12

(1) COVERED COMMODITIES OTHER THAN13

RICE.Except as provided in paragraph (2), for14

purposes of subsection (a), the actual price for a15

covered commodity is equal to the higher of the fol-16

lowing:17

(A) The national average market price re-18

ceived by producers during the 12-month mar-19

keting year for the covered commodity, as de-20

termined by the Secretary.21

(B) The national average loan rate for a22

marketing assistance loan for the covered com-23

modity in effect for the applicable period under24

subtitle B.25


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(2) RICE.In the case of long grain rice and1

medium grain rice, for purposes of subsection (a),2

the actual price for each type or class of rice is equal3

to the higher of the following:4

(A) The national average market price re-5

ceived by producers during the 12-month mar-6

keting year for the type or class of rice, as de-7

termined by the Secretary.8

(B) The national average loan rate for a9

marketing assistance loan for the type or class10

of rice in effect for the applicable period under11

subtitle B.12

(c) REFERENCE PRICE.The reference price for a13

covered commodity shall be determined as follows:14

(1) IN GENERAL.Subject to paragraph (2),15

the reference price for a covered commodity shall be16

the product obtained by multiplying17

(A) 55 percent; by18

(B) the average national marketing year19

average price for the most recent 5 crop years,20

excluding each of the crop years with the high-21

est and lowest prices.22

(2) ALTERNATIVE PRICE FOR RICE AND PEA-23

NUTS.In the case of long and medium grain rice24

and peanuts, the reference price shall be25


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(A) in the case of long and medium grain1

rice, $13.30 per hundredweight; and2

(B) in the case of peanuts, $523.77 per3

ton.4

(d) PAYMENT RATE.The payment rate used to5

make adverse market payments with respect to a covered6

commodity for a crop year shall be equal to the amount7

that8

(1) the reference price under subsection (c) for9

the covered commodity; exceeds10

(2) the actual price determined under sub-11

section (b) for the covered commodity.12

(e) PAYMENTAMOUNT.If adverse market payments13

are required to be paid under this section for any of the14

2014 through 2018 crop years of a covered commodity,15

the amount of the adverse market payment to be paid to16

the producers on a farm for that crop year shall be equal17

to the product of the following:18

(1) The payment rate specified in subsection19

(d).20

(2) The payment acres of the covered com-21

modity on the farm.22

(3) The payment yield for the covered com-23

modity for the farm.24


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(f) DUTIES OF THE SECRETARY.ln carrying out the1

calculations in subsections (b) and (c), the Secretary shall2

differentiate by type or class the national average price3

of4

(1) sunflower seeds;5

(2) barley, using malting barley values; and6

(3) wheat.7

(g) TIME FOR PAYMENTS.If the Secretary deter-8

mines under subsection (a) that adverse market payments9

are required to be made under this section for the crop10

of a covered commodity, beginning October 1, or as soon11

as practicable thereafter, after the end of the applicable12

marketing year for the covered commodity, the Secretary13

shall make the adverse market payments for the crop.14

SEC. 1108. AGRICULTURE RISK COVERAGE.15

(a) PAYMENTS REQUIRED.If the Secretary deter-16

mines that payments are required under subsection (c),17

the Secretary shall make payments for each covered com-18

modity available to producers in accordance with this sec-19

tion.20

(b) COVERAGE ELECTION.21

(1) IN GENERAL.For the period of crop years22

2014 through 2018, the producers shall make a 1-23

time, irrevocable election to receive24


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(A) individual coverage under this section,1

as determined by the Secretary; or2

(B) in the case of a county with sufficient3

data (as determined by the Secretary), county4

coverage under this section.5

(2) EFFECT OF ELECTION.The election made6

under paragraph (1) shall be binding on the pro-7

ducers making the election, regardless of covered8

commodities planted, and applicable to all acres9

under the operational control of the producers, in a10

manner that11

(A) acres brought under the operational12

control of the producers after the election are13

included; and14

(B) acres no longer under the operational15

control of the producers after the election are16

no longer subject to the election of the pro-17

ducers but become subject to the election of the18

subsequent producers.19

(3) DUTIES OF THE SECRETARY.The Sec-20

retary shall ensure that producers are precluded21

from taking any action, including reconstitution,22

transfer, or other similar action, that would have the23

effect of altering or reversing the election made24

under paragraph (1).25


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(c) AGRICULTURE RISK COVERAGE.1

(1) PAYMENTS.The Secretary shall make ag-2

riculture risk coverage payments available under this3

subsection for each of the 2014 through 2018 crop4

years if the Secretary determines that5

(A) the actual crop revenue for the crop6

year for the covered commodity; is less than7

(B) the agriculture risk coverage guarantee8

for the crop year for the covered commodity.9

(2) TIME FOR PAYMENTS.If the Secretary de-10

termines under this subsection that agriculture risk11

coverage payments are required to be made for the12

covered commodity, beginning October 1, or as soon13

as practicable thereafter, after the end of the appli-14

cable marketing year for the covered commodity, the15

Secretary shall make the agriculture risk coverage16

payments.17

(3) ACTUAL CROP REVENUE.The amount of18

the actual crop revenue for a crop year of a covered19

commodity shall be equal to the product obtained by20

multiplying21

(A)(i) in the case of individual coverage,22

the actual average individual yield for the cov-23

ered commodity, as determined by the Sec-24

retary; or25


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(ii) in the case of county coverage, the ac-1

tual average yield for the county for the covered2

commodity, as determined by the Secretary;3

and4

(B) the higher of5

(i) the national average market price6

received by producers during the 12-month7

marketing year for the covered commodity,8

as determined by the Secretary; or9

(ii) if applicable, the reference price10

for the covered commodity under section11

1107.12

(4) AGRICULTURE RISK COVERAGE GUAR-13

ANTEE.14

(A) IN GENERAL.The agriculture risk15

coverage guarantee for a crop year for a cov-16

ered commodity shall equal 88 percent of the17

benchmark revenue.18

(B) BENCHMARK REVENUE.19

(i) IN GENERAL.The benchmark20

revenue shall be the product obtained by21

multiplying22

(I)(aa) in the case of individual23

coverage, subject to clause (ii), the av-24

erage individual yield, as determined25


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by the Secretary, for the most recent1

5 crop years, excluding each of the2

crop years with the highest and lowest3

yields; or4

(bb) in the case of county cov-5

erage, the average county yield, as de-6

termined by the Secretary, for the7

most recent 5 crop years, excluding8

each of the crop years with the high-9

est and lowest yields; and10

(II) the average national mar-11

keting year average price for the most12

recent 5 crop years, excluding each of13

the crop years with the highest and14

lowest prices.15

(ii) USE OF TRANSITIONAL YIELDS.16

If the yield determined under clause17

(i)(I)(aa)18

(I) for the 2013 crop year or any19

prior crop year, is less than 60 per-20

cent of the applicable transitional21

yield, the Secretary shall use 60 per-22

cent of the applicable transitional23

yield for that crop year; and24


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(II) for the 2014 crop year and1

any subsequent crop year, is less than2

65 percent of the applicable transi-3

tional yield, the Secretary shall use 654

percent of the applicable transitional5

yield for that crop year.6

(5) PAYMENT RATE.The payment rate for7

each covered commodity shall be equal to the lesser8

of9

(A) the amount that10

(i) the agriculture risk coverage guar-11

antee for the covered commodity; exceeds12

(ii) the actual crop revenue for the13

crop year of the covered commodity; or14

(B) 10 percent of the benchmark revenue15

for the crop year of the covered commodity.16

(6) PAYMENT AMOUNT.If agriculture risk17

coverage payments under this subsection are re-18

quired to be paid for any of the 2014 through 201819

crop years of a covered commodity, the amount of20

the agriculture risk coverage payment for the crop21

year shall be equal to the product obtained by multi-22

plying23

(A) the payment rate under paragraph (5);24

and25


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(B)(i) in the case of individual coverage1

the sum of2

(I) 65 percent of the planted eligible3

acres of the covered commodity; and4

(II) 45 percent of the eligible acres5

that were prevented from being planted to6

the covered commodity; or7

(ii) in the case of county coverage8

(I) 80 percent of the planted eligible9

acres of the covered commodity; and10

(II) 45 percent of the eligible acres11

that were prevented from being planted to12

the covered commodity.13

(7) DUTIES OF THE SECRETARY.In carrying14

out the program under this subsection, the Secretary15

shall16

(A) to the maximum extent practicable,17

use all available information and analysis to18

check for anomalies in the determination of19

payments under the program;20

(B) to the maximum extent practicable,21

calculate a separate actual crop revenue and ag-22

riculture risk coverage guarantee for irrigated23

and nonirrigated covered commodities;24


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(C) differentiate by type or class the na-1

tional average price of2

(i) sunflower seeds;3

(ii) barley, using malting barley val-4

ues; and5

(iii) wheat; and6

(D) assign a yield for each acre planted or7

prevented from being planted for the crop year8

for the covered commodity on the basis of the9

yield history of representative farms in the10

State, region, or crop reporting district, as de-11

termined by the Secretary, if the Secretary can-12

not establish the yield as determined under13

paragraph (3)(A)(ii) or (4)(B)(i) or if the yield14

determined under paragraph (3)(A)(ii) or (4) is15

an unrepresentative average yield for the cov-16

ered commodity as determined by the Secretary.17

SEC. 1109. PRODUCER AGREEMENT REQUIRED AS CONDI-18

TION OF PROVISION OF PAYMENTS.19

(a) COMPLIANCEWITH CERTAIN REQUIREMENTS.20

(1) REQUIREMENTS.Before the producers on21

a farm may receive agriculture risk coverage pay-22

ments or adverse market payments, the producers23

shall agree, during the crop year for which the pay-24

ments are made and in exchange for the payments25


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(A) to comply with applicable conservation1

requirements under subtitle B of title XII of2

the Food Security Act of 1985 (16 U.S.C. 38113

et seq.);4

(B) to comply with applicable wetland pro-5

tection requirements under subtitle C of title6

XII of that Act (16 U.S.C. 3821 et seq.);7

(C) to use the land on the farm for an ag-8

ricultural or conserving use in a quantity equal9

to the attributable eligible acres of the farm,10

and not for a nonagricultural commercial, in-11

dustrial, or residential use, as determined by12

the Secretary; and13

(D) to effectively control noxious weeds14

and otherwise maintain the land in accordance15

with sound agricultural practices, as determined16

by the Secretary, if the agricultural or con-17

serving use involves the noncultivation of any18

portion of the land referred to in subparagraph19

(C).20

(2) COMPLIANCE.The Secretary may issue21

such rules as the Secretary considers necessary to22

ensure producer compliance with the requirements of23

paragraph (1).24


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(3) MODIFICATION.At the request of the1

transferee or owner, the Secretary may modify the2

requirements of this subsection if the modifications3

are consistent with the objectives of this subsection,4


(b) TRANSFER OR CHANGE OF INTEREST IN6

FARM.7

(1) TERMINATION.8

(A) IN GENERAL.Except as provided in9

paragraph (2), a transfer of (or change in) the10

interest of the producers on a farm for which11

agriculture risk coverage payments or adverse12

market payments are made shall result in the13

termination of the payments, unless the trans-14

feree or owner of the acreage agrees to assume15

all obligations under subsection (a).16

(B) EFFECTIVE DATE.The termination17

shall take effect on the date determined by the18

Secretary.19

(2) EXCEPTION.If a producer entitled to an20

agriculture risk coverage payment or adverse market21

payment dies, becomes incompetent, or is otherwise22

unable to receive the payment, the Secretary shall23

make the payment, in accordance with rules issued24

by the Secretary.25


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(c) REPORTS.1

(1) ACREAGE REPORTS.As a condition on the2

receipt of any benefits under this subtitle or subtitle3

B, the Secretary shall require producers on a farm4

to submit to the Secretary annual acreage reports5

with respect to all cropland on the farm.6

(2) PRODUCTION REPORTS.As a condition on7

the receipt of any benefits under section 1108, the8

Secretary shall require producers on a farm to sub-9

mit to the Secretary annual production reports with10

respect to all covered commodities produced on the11

farm.12

(3) PENALTIES.No penalty with respect to13

benefits under this subtitle or subtitle B shall be as-14

sessed against the producers on a farm for an inac-15

curate acreage or production report unless the pro-16

ducers on the farm knowingly and willfully falsified17

the acreage or production report.18

(4) DATA REPORTING.To the maximum ex-19

tent practicable, the Secretary shall use data re-20

ported by the producer pursuant to requirements21

under the Federal Crop Insurance Act (7 U.S.C.22

1501 et seq.) to meet the obligations described in23

paragraphs (1) and (2), without additional submis-24

sions to the Department.25


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(d) TENANTS AND SHARECROPPERS.In carrying1

out this subtitle, the Secretary shall provide adequate safe-2

guards to protect the interests of tenants and share-3

croppers.4

(e) SHARING OF PAYMENTS.The Secretary shall5

provide for the sharing of adverse market payments and6

agriculture risk coverage payments among the producers7

on a farm on a fair and equitable basis.8

SEC. 1110. PERIOD OF EFFECTIVENESS.9

Sections 1104 through 1109 shall be effective begin-10

ning with the 2014 crop year of each covered commodity11

through the 2018 crop year.12

Subtitle BMarketing Assistance13

Loans and Loan Deficiency Pay-14

ments15

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING16

ASSISTANCE LOANS FOR LOAN COMMOD-17

ITIES.18

(a) DEFINITION OF LOAN COMMODITY.In this sub-19

title, the term loan commodity means wheat, corn, grain20

sorghum, barley, oats, upland cotton, extra long staple21

cotton, long grain rice, medium grain rice, peanuts, soy-22

beans, other oilseeds, graded wool, nongraded wool, mo-23

hair, honey, dry peas, lentils, small chickpeas, and large24

chickpeas.25


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(b) NONRECOURSE LOANSAVAILABLE.1

(1) IN GENERAL.For each of the 20142

through 2018 crops of each loan commodity, the3

Secretary shall make available to producers on a4

farm nonrecourse marketing assistance loans for5

loan commodities produced on the farm.6

(2) TERMS AND CONDITIONS.The marketing7

assistance loans shall be made under terms and con-8

ditions that are prescribed by the Secretary and at9

the loan rate established under section 1202 for the10

loan commodity.11

(c) ELIGIBLE PRODUCTION.The producers on a12

farm shall be eligible for a marketing assistance loan13

under subsection (b) for any quantity of a loan commodity14

produced on the farm.15

(d) COMPLIANCE WITH CONSERVATION AND WET-16

LANDS REQUIREMENTS.17

(1) REQUIREMENTS.Before the producers on18

a farm may receive a marketing assistance loan or19

any other payment or benefit under this subtitle, the20

producers shall agree, for the crop year for which21

the payments are made and in exchange for the pay-22

ments23

(A) to comply with applicable conservation24

requirements under subtitle B of title XII of25


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the Food Security Act of 1985 (16 U.S.C. 38111

et seq.);2

(B) to comply with applicable wetland pro-3

tection requirements under subtitle C of title4

XII of that Act (16 U.S.C. 3821 et seq.);5

(C) to use the land on the farm for an ag-6

ricultural or conserving use in a quantity equal7

to the attributable eligible acres of the farm,8

and not for a nonagricultural commercial, in-9

dustrial, or residential use, as determined by10

the Secretary; and11

(D) to effectively control noxious weeds12

and otherwise maintain the land in accordance13

with sound agricultural practices, as determined14

by the Secretary, if the agricultural or con-15

serving use involves the noncultivation of any16

portion of the land referred to in subparagraph17

(C).18

(2) COMPLIANCE.The Secretary may issue19

such rules as the Secretary considers necessary to20

ensure producer compliance with paragraph (1).21

(3) MODIFICATION.At the request of a trans-22

feree or owner, the Secretary may modify the re-23

quirements of this subsection if the modifications24


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are consistent with the purposes of this subsection,1


(e) SPECIAL RULES FOR PEANUTS.3

(1) IN GENERAL.This subsection shall apply4

only to producers of peanuts.5

(2) OPTIONS FOR OBTAINING LOAN.A mar-6

keting assistance loan under this section, and loan7

deficiency payments under section 1205, may be ob-8

tained at the option of the producers on a farm9

through10

(A) a designated marketing association or11

marketing cooperative of producers that is ap-12

proved by the Secretary; or13

(B) the Farm Service Agency.14

(3) STORAGE OF LOAN PEANUTS.As a condi-15

tion on the approval by the Secretary of an indi-16

vidual or entity to provide storage for peanuts for17

which a marketing assistance loan is made under18

this section, the individual or entity shall agree19

(A) to provide the storage on a nondiscrim-20

inatory basis; and21

(B) to comply with such additional require-22

ments as the Secretary considers appropriate to23

accomplish the purposes of this section and pro-24


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mote fairness in the administration of the bene-1

fits of this section.2

(4) STORAGE, HANDLING, AND ASSOCIATED3

COSTS.4

(A) IN GENERAL.To ensure proper stor-5

age of peanuts for which a loan is made under6

this section, the Secretary shall pay handling7

and other associated costs (other than storage8

costs) incurred at the time at which the peanuts9

are placed under loan, as determined by the10

Secretary.11

(B) REDEMPTION AND FORFEITURE.The12

Secretary shall13

(i) require the repayment of handling14

and other associated costs paid under sub-15

paragraph (A) for all peanuts pledged as16

collateral for a loan that is redeemed under17

this section; and18

(ii) pay storage, handling, and other19

associated costs for all peanuts pledged as20

collateral that are forfeited under this sec-21

tion.22

(5) MARKETING.A marketing association or23

cooperative may market peanuts for which a loan is24

made under this section in any manner that con-25


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forms to consumer needs, including the separation of1

peanuts by type and quality.2

(6) REIMBURSABLE AGREEMENTS AND PAY-3

MENT OF ADMINISTRATIVE EXPENSES.The Sec-4

retary may implement any reimbursable agreements5

or provide for the payment of administrative ex-6

penses under this subsection only in a manner that7

is consistent with those activities in regard to other8

loan commodities.9

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING10

ASSISTANCE LOANS.11

(a) IN GENERAL.For purposes of each of the 201412

through 2018 crop years, the loan rate for a marketing13

assistance loan under section 1201 for a loan commodity14

shall be equal to the following:15

(1) In the case of wheat, $2.94 per bushel.16

(2) In the case of corn, $1.95 per bushel.17

(3) In the case of grain sorghum, $1.95 per18

bushel.19

(4) In the case of barley, $1.95 per bushel.20

(5) In the case of oats, $1.39 per bushel.21

(6) In the case of base quality of upland cotton,22

for the 2014 and each subsequent crop year, the23

simple average of the adjusted prevailing world price24

for the 2 immediately preceding marketing years, as25


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determined by the Secretary and announced October1

1 preceding the next domestic plantings, but in no2

case less than $0.45 per pound or more than $0.523

per pound.4

(7) In the case of extra long staple cotton,5

$0.7977 per pound.6

(8) In the case of long grain rice, $6.50 per7

hundredweight.8

(9) In the case of medium grain rice, $6.50 per9

hundredweight.10

(10) In the case of soybeans, $5.00 per bushel.11

(11) In the case of other oilseeds, $10.09 per12

hundredweight for each of the following kinds of oil-13

seeds:14

(A) Sunflower seed.15

(B) Rapeseed.16

(C) Canola.17

(D) Safflower.18

(E) Flaxseed.19

(F) Mustard seed.20

(G) Crambe.21

(H) Sesame seed.22

(I) Other oilseeds designated by the Sec-23

retary.24


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(12) In the case of dry peas, $5.40 per hun-1

dredweight.2

(13) In the case of lentils, $11.28 per hundred-3

weight.4

(14) In the case of small chickpeas, $7.43 per5

hundredweight.6

(15) In the case of large chickpeas, $11.28 per7

hundredweight.8

(16) In the case of graded wool, $1.15 per9

pound.10

(17) In the case of nongraded wool, $0.40 per11

pound.12

(18) In the case of mohair, $4.20 per pound.13

(19) In the case of honey, $0.69 per pound.14

(20) In the case of peanuts, $355 per ton.15

(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-16

SEEDS.The Secretary shall establish a single loan rate17

in each county for each kind of other oilseeds described18

in subsection (a)(11).19

SEC. 1203. TERM OF LOANS.20

(a) TERM OF LOAN.In the case of each loan com-21

modity, a marketing assistance loan under section 120122

shall have a term of 9 months beginning on the first day23

of the first month after the month in which the loan is24

made.25


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(b) EXTENSIONS PROHIBITED.The Secretary may1

not extend the term of a marketing assistance loan for2

any loan commodity.3

SEC. 1204. REPAYMENT OF LOANS.4

(a) GENERAL RULE.The Secretary shall permit the5

s. 954 - agriculture reform, food and jobs act of 2013

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