CHAPTER 115 —AGRICULTURAL COMMODITY POLICY AND PROGRAMS
SUBCHAPTER I—COMMODITY POLICY
SUBCHAPTER II—MARKETING LOANS
SUBCHAPTER III—DAIRY
Part A—Dairy Margin Coverage
Part B—Milk Donation Program
SUBCHAPTER IV—SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS
SUBCHAPTER V—ADMINISTRATION
§9001. Definition of Secretary of Agriculture
In this Act, the term "Secretary" means the Secretary of Agriculture.
(
Editorial Notes
References in Text
This Act, referred to in text, is
Codification
This section was not enacted as part of title I of
Statutory Notes and Related Subsidiaries
Short Title of 2018 Amendment
Short Title
Extension of Agricultural Programs
"(a)
"(1) September 30, 2024; or
"(2) the date specified in the provision of that Act or the provision of law amended by that Act.
"(b)
"(c)
"(1)
"(d)
"(9)
"(A) Section 1614(c)(4) of the Agricultural Act of 2014 (
"(B) Subparagraphs (A) and (B) of section 1241(a)(1) of the Food Security Act of 1985 (
"(e)
"(1)
"(2)
"(g)
Definition of "Secretary"
SUBCHAPTER I—COMMODITY POLICY
§9011. Definitions
In this subchapter and subchapter II:
(1) Actual crop revenue
The term "actual crop revenue", with respect to a covered commodity for a crop year, means the amount determined by the Secretary under
(2) Agriculture risk coverage
The term "agriculture risk coverage" means coverage provided under
(3) Agriculture risk coverage guarantee
The term "agriculture risk coverage guarantee", with respect to a covered commodity for a crop year, means the amount determined by the Secretary under
(4) Base acres
(A) In general
The term "base acres", with respect to a covered commodity on a farm, means the number of acres in effect under
(B) Inclusion of generic base acres
The term "base acres" includes any generic base acres planted to a covered commodity as determined in
(5) County coverage
The term "county coverage" means agriculture risk coverage selected under
(6) Covered commodity
(A) In general
The term "covered commodity" means wheat, oats, and barley (including wheat, oats, and barley used for haying and grazing), corn, grain sorghum, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.
(B) Inclusion
Effective beginning with the 2018 crop year, the term "covered commodity" includes seed cotton.
(7) Effective price
The term "effective price", with respect to a covered commodity for a crop year, means the price calculated by the Secretary under
(8) Effective reference price
The term "effective reference price", with respect to a covered commodity for a crop year, means the lesser of the following:
(A) An amount equal to 115 percent of the reference price for such covered commodity.
(B) An amount equal to the greater of—
(i) the reference price for such covered commodity; or
(ii) 85 percent of the average of the marketing year average price of the covered commodity for the most recent 5 crop years, excluding each of the crop years with the highest and lowest marketing year average price.
(9) Extra long staple cotton
The term "extra long staple cotton" means cotton that—
(A) is produced from pure strain varieties of the Barbadense species or any hybrid of the species, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and
(B) is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.
(10) Generic base acres
The term "generic base acres" means the number of base acres for cotton in effect under
(11) Individual coverage
The term "individual coverage" means agriculture risk coverage selected under
(12) Medium grain rice
The term "medium grain rice" includes short grain rice and temperate japonica rice.
(13) Other oilseed
The term "other oilseed" means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary.
(14) Payment acres
The term "payment acres", with respect to the provision of price loss coverage payments and agriculture risk coverage payments, means the number of acres determined for a farm under
(15) Payment yield
The term "payment yield", for a farm for a covered commodity—
(A) means the yield used to make payments pursuant to
(B) means the yield established under
(16) Price loss coverage
The term "price loss coverage" means coverage provided under
(17) Producer
(A) In general
The term "producer" means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.
(B) Hybrid seed
In determining whether a grower of hybrid seed is a producer, the Secretary shall—
(i) not take into consideration the existence of a hybrid seed contract; and
(ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this chapter.
(18) Pulse crop
The term "pulse crop" means dry peas, lentils, small chickpeas, and large chickpeas.
(19) Reference price
The term "reference price", with respect to a covered commodity for a crop year, means the following:
(A) For wheat, $5.50 per bushel.
(B) For corn, $3.70 per bushel.
(C) For grain sorghum, $3.95 per bushel.
(D) For barley, $4.95 per bushel.
(E) For oats, $2.40 per bushel.
(F) For long grain rice, $14.00 per hundredweight.
(G) For medium grain rice, $14.00 per hundredweight.
(H) For soybeans, $8.40 per bushel.
(I) For other oilseeds, $20.15 per hundredweight.
(J) For peanuts, $535.00 per ton.
(K) For dry peas, $11.00 per hundredweight.
(L) For lentils, $19.97 per hundredweight.
(M) For small chickpeas, $19.04 per hundredweight.
(N) For large chickpeas, $21.54 per hundredweight.
(O) For seed cotton, $0.367 per pound.
(20) Secretary
The term "Secretary" means the Secretary of Agriculture.
(21) Seed cotton
The term "seed cotton" means unginned upland cotton that includes both lint and seed.
(22) State
The term "State" means—
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(23) Temperate japonica rice
The term "temperate japonica rice" means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions, in the Western United States, as determined by the Secretary, for the purpose of—
(A) the reallocation of base acres under
(B) the establishment of a reference price (as required under
(C) the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to
(24) Transitional yield
The term "transitional yield" has the meaning given the term in
(25) United States
The term "United States", when used in a geographical sense, means all of the States.
(26) United States Premium Factor
The term "United States Premium Factor" means the percentage by which the difference in the United States loan schedule premiums for Strict Middling (SM) 11/8-inch upland cotton and for Middling (M) 13/32-inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.
(
Editorial Notes
References in Text
This subchapter, referred to in text, was in the original "this subtitle", meaning subtitle A (§§1101–1109) of title I of
This chapter, referred to in par. (17)(B)(ii), was in the original "this title", meaning title I of
Amendments
2018—Par. (6).
Pars. (8) to (18).
Par. (18)(O).
Par. (19).
Pars. (20) to (25).
Par. (26).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Administration
Popcorn Acreage
§9012. Base acres
(a) Retention or 1-time reallocation of base acres
(1) Election required
(A) Notice of election opportunity
As soon as practicable after February 7, 2014, the Secretary shall provide notice to the owners of a farm regarding their opportunity to make an election, in the manner provided in this subsection—
(i) to retain base acres, including any generic base acres, as provided in paragraph (2); or
(ii) in lieu of retaining base acres, to reallocate base acres, other than any generic base acres, as provided in paragraph (3).
(B) Content of notice
The notice under subparagraph (A) shall include the following:
(i) Information that the opportunity of an owner to make the election is being provided only once.
(ii) Information regarding the manner in which the owner must make the election and the manner of notifying the Secretary of the election.
(iii) Information regarding the deadline before which the owner must notify the Secretary of the election to be in effect beginning with the 2014 crop year.
(C) Effect of failure to make election
If the owner of a farm fails to make the election under this subsection, or fails to timely notify the Secretary of the election as required by subparagraph (B)(iii), the owner shall be deemed to have elected to retain base acres, including generic base acres, as provided in paragraph (2).
(2) Retention of base acres
(A) Election to retain
For the purpose of applying this subchapter to a covered commodity, the Secretary shall give an owner of a farm an opportunity to elect to retain all of the base acres for each covered commodity on the farm.
(B) Treatment of generic base acres
Generic base acres are automatically retained.
(3) Reallocation of base acres
(A) Election to reallocate
For the purpose of applying this subchapter to covered commodities, the Secretary shall give an owner of a farm an opportunity to elect to reallocate all of the base acres for covered commodities on the farm, as in effect on September 30, 2013, among those covered commodities planted on the farm at any time during the 2009 through 2012 crop years.
(B) Reallocation formula
The reallocation of base acres among covered commodities on a farm shall be in proportion to the ratio of—
(i) the 4-year average of—
(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2009 through 2012 crop years; and
(II) any acreage on the farm that the producers were prevented from planting during the 2009 through 2012 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to
(ii) the 4-year average of—
(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage, or other similar purposes for such crop years; and
(II) any acreage on the farm that the producers were prevented from planting during such crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.
(C) Treatment of generic base acres
Generic base acres are retained and may not be reallocated under this paragraph.
(D) Inclusion of all 4 years in average
For the purpose of determining a 4-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted.
(E) Treatment of multiple planting or prevented planting
For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2009 through 2012 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the commodity to be used for that crop year in determining the 4-year average, but may not include both the initial commodity and the subsequent commodity.
(F) Limitation
The reallocation of base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres (including generic base acres) for the farm in excess of the number of base acres in effect for the farm on September 30, 2013.
(4) Application of election to all covered commodities
The election made under this subsection, or deemed to be made under paragraph (1)(C), with respect to a farm shall apply to all of the covered commodities on the farm.
(b) Adjustment of base acres
(1) In general
Notwithstanding the election made under subsection (a), the Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm and any generic base acres for the farm whenever any of the following circumstances occur:
(A) A conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (
(B) Cropland is released from coverage under a conservation reserve contract by the Secretary.
(C) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under
(2) Special conservation reserve acreage payment rules
For the crop year in which a base acres adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive price loss coverage or agriculture risk coverage with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.
(c) Prevention of excess base acres
(1) Required reduction
Notwithstanding the election made under subsection (a), if the sum of the base acres for a farm, including generic base acres, and the acreage described in paragraph (2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered commodities or generic base acres for the farm so that the sum of the base acres, including generic base acres, and the acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.
(2) Other acreage
For purposes of paragraph (1), the Secretary shall include the following:
(A) Any acreage on the farm enrolled in—
(i) the conservation reserve program established under subchapter B of
(ii) a wetland reserve easement under section 1265C of the Food Security Act of 1985 (
(B) Any other acreage on the farm enrolled in a Federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage.
(C) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under subsection (b)(1)(C).
(3) Selection of acres
The Secretary shall give the owner of the farm the opportunity to select the base acres for a covered commodity or generic base acres for the farm against which the reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage
In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.
(d) Reduction in base acres
(1) Reduction at option of owner
(A) In general
The owner of a farm may reduce, at any time, the base acres for any covered commodity or generic base acres for the farm.
(B) Effect of reduction
A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary.
(2) Required action by Secretary
(A) In general
The Secretary shall proportionately reduce base acres, including any generic base acres, on a farm for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size of the tracts and the density of the subdivision is such that the land is unlikely to return to the previous agricultural use, unless the producers on the farm demonstrate that the land—
(i) remains devoted to commercial agricultural production; or
(ii) is likely to be returned to the previous agricultural use.
(B) Requirement
The Secretary shall establish procedures to identify land described in subparagraph (A).
(3) Treatment of base acres on farms entirely planted to grass or pasture
(A) In general
In the case of a farm on which all of the cropland was planted to grass or pasture (including cropland that was idle or fallow), as determined by the Secretary, during the period beginning on January 1, 2009, and ending on December 31, 2017, the Secretary shall maintain all base acres and payment yields for the covered commodities on the farm, except that no payment shall be made with respect to those base acres under
(B) Ineligibility
The producers on a farm for which all of the base acres are maintained under subparagraph (A) shall be ineligible for the option to change the election applicable to the producers on the farm under
(4) Prohibition on reconstitution of farm
The Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change the treatment of base acres under this section.
(
Editorial Notes
References in Text
The Food Security Act of 1985, referred to in subsec. (c)(2)(A)(i), is
Codification
Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (c)(2)(A).
Subsec. (d)(3), (4).
§9013. Payment yields
(a) Establishment and purpose
For the purpose of making price loss coverage payments under
(b) Payment yields for designated oilseeds
(1) Determination of average yield
In the case of oilseeds designated before December 20, 2018, the Secretary shall determine the average yield per planted acre for the designated oilseed on a farm for the 1998 through 2001 crop years, excluding any crop year in which the acreage planted to the designated oilseed was zero.
(2) Adjustment for payment yield
(A) In general
The payment yield for a farm for an oilseed designated before December 20, 2018, shall be equal to the product of the following:
(i) The average yield for the designated oilseed determined under paragraph (1).
(ii) The ratio resulting from dividing the national average yield for the designated oilseed for the 1981 through 1985 crops by the national average yield for the designated oilseed for the 1998 through 2001 crops.
(B) No national average yield information available
To the extent that national average yield information for an oilseed designated before December 20, 2018, is not available, the Secretary shall use such information as the Secretary determines to be fair and equitable to establish a national average yield under this section.
(3) Use of county average yield
If the yield per planted acre for a crop of an oilseed designated before December 20, 2018, for a farm for any of the 1998 through 2001 crop years was less than 75 percent of the county yield for that designated oilseed, the Secretary shall assign a yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1).
(4) Treatment of oilseeds designated after certain date
In the case of oilseeds designated on or after December 20, 2018, the payment yield shall be equal to 90 percent of the average of the yield per planted acre for the most recent 5 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero.
(c) Effect of lack of payment yield
(1) Establishment by Secretary
In the case of a covered commodity on a farm for which base acres have been established or that is planted on generic base acres, if no payment yield is otherwise established for the covered commodity on the farm, the Secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph (2).
(2) Use of similarly situated farms
To establish an appropriate payment yield for a covered commodity on a farm as required by paragraph (1), the Secretary shall take into consideration the farm program payment yields applicable to that covered commodity for similarly situated farms. The use of such data in an appeal, by the Secretary or by the producer, shall not be subject to any other provision of law.
(d) Single opportunity to update yields
(1) Election to update
At the sole discretion of the owner of a farm, the owner of a farm shall have a 1-time opportunity to update, on a covered-commodity-by-covered-commodity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made.
(2) Method of updating yields for covered commodities
If the owner of a farm elects to update yields under paragraph (1), the payment yield for a covered commodity on the farm, for the purpose of calculating price loss coverage payments only, shall be equal to the product obtained by multiplying—
(A) 90 percent;
(B) the average of the yield per planted acre for the crop of covered commodities on the farm for the 2013 through 2017 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero; and
(C) subject to paragraph (3), the ratio obtained by dividing—
(i) the average of the 2008 through 2012 national average yield per planted acre for the covered commodity, as determined by the Secretary; by
(ii) the average of the 2013 through 2017 national average yield per planted acre for the covered commodity, as determined by the Secretary.
(3) Limitation
In no case shall the ratio obtained under paragraph (2)(C) be less than 90 percent or greater than 100 percent.
(4) Use of county average yield
For the purposes of determining the average yield per planted acre under paragraph (2)(B), if the yield per planted acre for a crop of a covered commodity for a farm for any of the crop years described in that subparagraph was less than 75 percent of the average of county yields for those crop years for that commodity, the Secretary shall assign a yield for that crop year equal to 75 percent of the average of the 2013 through 2017 county yield for the covered commodity.
(5) Upland cotton conversion
In the case of seed cotton, for purposes of determining the average of the yield per planted acre under this subsection, the average yield for seed cotton per planted acre shall be equal to 2.4 times the average yield for upland cotton per planted acre.
(6) Time for election
An election under this subsection shall be made at a time and manner so as to be in effect beginning with the 2020 crop year, as determined by the Secretary.
(e) Payment yield for seed cotton
(1) Payment yield
Subject to paragraph (2), the payment yield for seed cotton for a farm shall be equal to 2.4 times the payment yield for upland cotton for the farm established under
(2) Update
At the sole discretion of the owner of a farm with a yield for upland cotton described in paragraph (1), the owner of the farm shall have a 1-time opportunity to update the payment yield for upland cotton for the farm, as provided in subsection (d), for the purpose of calculating the payment yield for seed cotton under paragraph (1).
(
Editorial Notes
Amendments
2018—Subsec. (b)(1).
Subsec. (b)(2), (3).
Subsec. (b)(4).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§9014. Payment acres
(a) Determination of payment acres
(1) General rule
For the purpose of price loss coverage and agriculture risk coverage when county coverage has been selected under
(2) Effect of individual coverage
In the case of agriculture risk coverage when individual coverage has been selected under
(b) Treatment of generic base acres
(1) In general
In the case of generic base acres, price loss coverage payments and agriculture risk coverage payments are made only with respect to generic base acres planted to a covered commodity for the crop year.
(2) Attribution
With respect to a farm containing generic base acres, for the purpose of applying paragraphs (1) and (2) of subsection (a), generic base acres on the farm are attributed to a covered commodity in the following manner:
(A) If a single covered commodity is planted and the total acreage planted exceeds the generic base acres on the farm, the generic base acres are attributed to that covered commodity in an amount equal to the total number of generic base acres.
(B) If multiple covered commodities are planted and the total number of acres planted to all covered commodities on the farm exceeds the generic base acres on the farm, the generic base acres are attributed to each of the covered commodities on the farm on a pro rata basis to reflect the ratio of—
(i) the acreage planted to a covered commodity on the farm; to
(ii) the total acreage planted to all covered commodities on the farm.
(C) If the total number of acres planted to all covered commodities on the farm does not exceed the generic base acres on the farm, the number of acres planted to a covered commodity is attributed to that covered commodity.
(3) Treated as additional acreage
When generic base acres are planted to a covered commodity or acreage planted to a covered commodity is attributed to generic base acres, the generic base acres are in addition to other base acres on the farm.
(4) Seed cotton
(A) In general
Not later than 90 days after February 9, 2018, the Secretary shall require the owner of a farm to allocate all generic base acres on the farm under subparagraph (B) or (C), or both.
(B) No recent history of covered commodities
In the case of a farm on which no covered commodities (including seed cotton) were planted or were prevented from being planted at any time during the 2009 through 2016 crop years, the owner of such farm shall allocate generic base acres on the farm to unassigned crop base for which no payments may be made under
(C) Recent history of covered commodities
In the case of a farm not described in subparagraph (B), the owner of such farm shall allocate generic base acres on the farm—
(i) subject to subparagraph (D), to seed cotton base acres in a quantity equal to the greater of—
(I) 80 percent of the generic base acres on the farm; or
(II) the average number of seed cotton acres planted or prevented from being planted on the farm during the 2009 through 2012 crop years (not to exceed the total generic base acres on the farm); or
(ii) to base acres for covered commodities (including seed cotton), by applying subparagraphs (B), (D), (E), and (F) of
(D) Treatment of residual generic base acres
In the case of a farm on which generic base acres are allocated under subparagraph (C)(i), the residual generic base acres shall be allocated to unassigned crop base for which no payments may be made under
(E) Effect of failure to allocate
In the case of a farm not described in subparagraph (B) for which the owner of the farm fails to make an election under subparagraph (C), the owner of the farm shall be deemed to have elected to allocate all generic base acres in accordance with subparagraph (C)(i).
(c) Exclusion
The quantity of payment acres determined under subsection (a) may not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for price loss coverage payments or agriculture risk coverage payments, unless the crop was approved for double cropping in the county, as determined by the Secretary.
(d) Effect of minimal payment acres
(1) Prohibition on payments
Notwithstanding any other provision of this chapter, a producer on a farm may not receive price loss coverage payments or agriculture risk coverage payments if the sum of the base acres on the farm is 10 acres or less, as determined by the Secretary, unless the sum of the base acres on the farm, when combined with the base acres of other farms in which the producer has an interest, is more than 10 acres.
(2) Exceptions
Paragraph (1) does not apply to a producer that is—
(A) a socially disadvantaged farmer or rancher (as defined in
(B) a limited resource farmer or rancher, as defined by the Secretary;
(C) a beginning farmer or rancher (as defined in subsection (a) of
(D) a veteran farmer or rancher (as defined in subsection (a) of
(e) Effect of planting fruits and vegetables
(1) Reduction required
In the manner provided in this subsection, payment acres on a farm shall be reduced in any crop year in which fruits, vegetables (other than mung beans and pulse crops), or wild rice have been planted on base acres on a farm.
(2) Price loss coverage and county coverage
In the case of price loss coverage payments and agricultural risk coverage payments using county coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 15 percent of base acres.
(3) Individual coverage
In the case of agricultural risk coverage payments using individual coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 35 percent of base acres.
(4) Reduction exceptions
No reduction to payment acres shall be made under this subsection if—
(A) cover crops or crops referred to in paragraph (1) are grown solely for conservation purposes and not harvested for use or sale, as determined by the Secretary; or
(B) in any region in which there is a history of double-cropping covered commodities with crops referred to in paragraph (1) and such crops were so double-cropped on the base acres, as determined by the Secretary.
(5) Effect of reduction
For each crop year for which fruits, vegetables (other than mung beans and pulse crops), or wild rice are planted to base acres on a farm for which a reduction in payment acres is made under this subsection, the Secretary shall consider such base acres to be planted, or prevented from being planted, to a covered commodity for purposes of any adjustment or reduction of base acres for the farm under
(f) Unassigned crop base
The Secretary shall maintain information on generic base acres on a farm allocated as unassigned crop base under subsection (b)(4).
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (d)(1), was in the original "this title", meaning title I of
Amendments
2018—Subsec. (b)(2).
Subsec. (b)(4).
Subsec. (d)(1).
Subsec. (d)(2)(C), (D).
Subsec. (e)(5).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§9015. Producer election
(a) Election required
For the 2014 through 2018 crop years (except as provided in subsection (g)) and for the 2019 through 2023 crop years (subject to subsection (h)), all of the producers on a farm shall make a 1-time, irrevocable election to obtain—
(1) price loss coverage under
(2) agriculture risk coverage under
(b) Coverage options
In the election under subsection (a) or (h), as applicable, the producers on a farm that elect to obtain agriculture risk coverage shall unanimously select whether to receive agriculture risk coverage payments based on—
(1) county coverage applicable on a covered commodity-by-covered-commodity basis; or
(2) individual coverage applicable to all of the covered commodities on the farm.
(c) Effect of failure to make unanimous election
If all the producers on a farm fail to make a unanimous election under subsection (a) for the 2014 crop year or the 2019 crop year, as applicable—
(1) the Secretary shall not make any payments with respect to the farm for the 2014 crop year or the 2019 crop year, as applicable, under
(2) subject to subsection (h), the producers on the farm shall be deemed to have elected, as applicable—
(A) price loss coverage for all covered commodities on the farm for the 2015 through 2018 crop years; and
(B) the same coverage for each covered commodity on the farm for the 2020 through 2023 crop years as was applicable for the 2015 through 2018 crop years.
(d) Effect of selection of county coverage
If all the producers on a farm select county coverage for a covered commodity under subsection (b)(1), the Secretary may not make price loss coverage payments under
(e) Effect of selection of individual coverage
If all the producers on a farm select individual coverage under subsection (b)(2), in addition to the selection and election under this section applying to each producer on the farm, the Secretary shall consider, for purposes of making the calculations required by subsections (b)(2) and (c)(3) of
(1) in which the producer has an interest; and
(2) for which individual coverage has been selected.
(f) Prohibition on reconstitution
The Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change an election or selection made under this section.
(g) Special election
(1) In general
In the case of acres allocated to seed cotton on a farm, for the 2018 crop year, all of the producers on the farm shall be given the opportunity to make a new 1-time election under subsection (a) to reflect the designation of seed cotton as a covered commodity for that crop year under
(2) Effect of failure to make unanimous election
If all the producers on a farm fail to make a unanimous election under paragraph (1), the producers on the farm shall be deemed to have elected price loss coverage under
(h) Option to change election
(1) In general
For the 2021 crop year and each crop year thereafter, all of the producers on a farm may change the election under subsection (a), subsection (c), or this subsection, as applicable, to price loss coverage or agriculture risk coverage, as applicable.
(2) Applicability
An election change under paragraph (1) shall apply to—
(A) the crop year for which the election change is made; and
(B) each crop year thereafter until another election change is made under that paragraph.
(
Editorial Notes
Codification
Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (g).
Subsec. (g)(1).
Subsec. (h).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§9016. Price loss coverage
(a) Price loss coverage payments
If all of the producers on a farm make the election under subsection (a) or (h) of
(1) for any of the 2014 through 2018 crop years—
(A) the effective price for the covered commodity for the crop year; is less than
(B) the reference price for the covered commodity for the crop year; or
(2) for any of the 2019 through 2023 crop years—
(A) the effective price for the covered commodity for the crop year; is less than
(B) the effective reference price for the covered commodity for the crop year.
(b) Effective price
The effective price for a covered commodity for a crop year shall be the higher of—
(1) the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or
(2) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II.
(c) Payment rate
(1) In general
(A) 2014 through 2018 crop years
For the 2014 through 2018 crop years, the payment rate shall be equal to the difference between—
(i) the reference price for the covered commodity; and
(ii) the effective price determined under subsection (b) for the covered commodity.
(B) 2019 through 2023 crop years
For the 2019 through 2023 crop years, the payment rate shall be equal to the difference between—
(i) the effective reference price for the covered commodity; and
(ii) the effective price determined under subsection (b) for the covered commodity.
(2) Announcement
Not later than 30 days after the end of each applicable 12-month marketing year for each covered commodity, the Secretary shall publish the payment rate determined under paragraph (1).
(3) Insufficient data
In the case of a covered commodity, such as temperate japonica rice, for which the Secretary cannot determine the payment rate for the most recent 12-month marketing year by the date described in paragraph (2) due to insufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, the Secretary shall publish the payment rate as soon as practicable after the marketing year data are made available.
(d) Payment amount
If price loss coverage payments are required to be provided under this section for any of the 2014 through 2024 crop years for a covered commodity, the amount of the price loss coverage payment to be paid to the producers on a farm for the crop year shall be equal to the product obtained by multiplying—
(1) the payment rate for the covered commodity under subsection (c);
(2) the payment yield for the covered commodity; and
(3) the payment acres for the covered commodity.
(e) Time for payments
If the Secretary determines under this section that price loss coverage payments are required to be provided for the covered commodity, the payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.
(f) Effective price for barley
In determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price.
(g) Reference price for temperate japonica rice
In order to reflect price premiums, the Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to the amount established under subparagraph (F) of
(1) the simple average of the marketing year average price of medium grain rice from the 2012 through 2016 crop years; by
(2) the simple average of the marketing year average price of all rice from the 2012 through 2016 crop years.
(h) Effective price for seed cotton
(1) In general
The effective price for seed cotton under subsection (b) shall be equal to the marketing year average price for seed cotton, as calculated under paragraph (2).
(2) Calculation
The marketing year average price for seed cotton for a crop year shall be equal to the quotient obtained by dividing—
(A) the sum obtained by adding—
(i) the product obtained by multiplying—
(I) the upland cotton lint marketing year average price; and
(II) the total United States upland cotton lint production, measured in pounds; and
(ii) the product obtained by multiplying—
(I) the cottonseed marketing year average price; and
(II) the total United States cottonseed production, measured in pounds; by
(B) the sum obtained by adding—
(i) the total United States upland cotton lint production, measured in pounds; and
(ii) the total United States cottonseed production, measured in pounds.
(
Editorial Notes
Codification
Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of
Amendments
2023—Subsec. (d).
2018—Subsec. (a).
Subsec. (c).
Subsec. (g).
Subsec. (h).
Statutory Notes and Related Subsidiaries
Effective Date of 2023 Amendment
Amendment by
Effective Date of 2018 Amendment
Amendment by
§9017. Agriculture risk coverage
(a) Agriculture risk coverage payments
If all of the producers on a farm make the election under
(1) the actual crop revenue determined under subsection (b) for the crop year; is less than
(2) the agriculture risk coverage guarantee determined under subsection (c) for the crop year.
(b) Actual crop revenue
(1) County coverage
In the case of county coverage, the amount of the actual crop revenue for a county for a crop year of a covered commodity shall be equal to the product obtained by multiplying—
(A) the actual average county yield per planted acre for the covered commodity, as determined by the Secretary; and
(B) the higher of—
(i) the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or
(ii) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II.
(2) Individual coverage
In the case of individual coverage, the amount of the actual crop revenue for a producer on a farm for a crop year shall be based on the producer's share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:
(A) For each covered commodity, the product obtained by multiplying—
(i) the total production of the covered commodity on such farms, as determined by the Secretary; and
(ii) the higher of—
(I) the national average market price received by producers during the 12-month marketing year, as determined by the Secretary; or
(II) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II.
(B) The sum of the amounts determined under subparagraph (A) for all covered commodities on such farms.
(C) The quotient obtained by dividing the amount determined under subparagraph (B) by the total planted acres of all covered commodities on such farms.
(c) Agriculture risk coverage guarantee
(1) In general
The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 86 percent of the benchmark revenue.
(2) Benchmark revenue for county coverage
In the case of county coverage, the benchmark revenue shall be the product obtained by multiplying—
(A) subject to paragraphs (4) and (5), the average historical county yield as determined by the Secretary for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and
(B) subject to paragraph (6), the national average market price received by producers during the 12-month marketing year for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.
(3) Benchmark revenue for individual coverage
In the case of individual coverage, the benchmark revenue for a producer on a farm for a crop year shall be based on the producer's share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:
(A) For each covered commodity for each of the most recent 5 crop years, the product obtained by multiplying—
(i) subject to paragraph (4), the yield per planted acre for the covered commodity on such farms, as determined by the Secretary; by
(ii) subject to paragraph (6), the national average market price received by producers during the 12-month marketing year.
(B) For each covered commodity, the average of the revenues determined under subparagraph (A) for the most recent 5 crop years, excluding each of the crop years with the highest and lowest revenues.
(C) For each of the 2014 through 2023 crop years, the sum of the amounts determined under subparagraph (B) for all covered commodities on such farms, but adjusted to reflect the ratio between the total number of acres planted on such farms to a covered commodity and the total acres of all covered commodities planted on such farms.
(4) Yield conditions
(A) 2014 through 2018 crop years
Effective for the 2014 through 2018 crop years, if the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of the 5 most recent crop years, as determined by the Secretary, is less than 70 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) or (3)(A)(i) shall be 70 percent of the transitional yield.
(B) 2019 through 2023 crop years
Effective for the 2019 through 2023 crop years, if the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of the 5 most recent crop years, as determined by the Secretary, is less than 80 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) or (3)(A)(i) shall be 80 percent of the transitional yield.
(5) Trend-adjusted yield
The Secretary shall calculate and use a trend-adjusted yield factor to adjust the yield determined under paragraph (2)(A) and subsection (b)(1)(A), taking into consideration, but not exceeding, the trend-adjusted yield factor that is used to increase yield history under the endorsement under the Federal Crop Insurance Act (
(6) Low national average market price
(A) Reference price
For the 2014 through 2018 crop years, if the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop years is lower than the reference price for the covered commodity, the Secretary shall use the reference price for any of those years for the amounts in paragraph (2)(B) or (3)(A)(ii).
(B) Effective reference price
For the 2019 through 2023 crop years, if the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop years is lower than the effective reference price for the covered commodity, the Secretary shall use the effective reference price for any of those years for the amounts in paragraph (2)(B) or (3)(A)(ii).
(d) Payment rate
(1) In general
The payment rate for a covered commodity, in the case of county coverage, or a farm, in the case of individual coverage, shall be equal to the lesser of—
(A) the amount that—
(i) the agriculture risk coverage guarantee for the crop year applicable under subsection (c); exceeds
(ii) the actual crop revenue for the crop year applicable under subsection (b); or
(B) 10 percent of the benchmark revenue for the crop year applicable under subsection (c).
(2) Announcement
Not later than 30 days after the end of each applicable 12-month marketing year for each covered commodity, the Secretary shall publish the payment rate determined under paragraph (1) for each county.
(e) Payment amount
If agriculture risk coverage payments are required to be paid for any of the 2014 through 2023 crop years, the amount of the agriculture risk coverage payment for the crop year shall be determined by multiplying—
(1) the payment rate determined under subsection (d); and
(2) the payment acres determined under
(f) Time for payments
If the Secretary determines that agriculture risk coverage payments are required to be provided for the covered commodity, payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.
(g) Additional duties of the Secretary
In providing agriculture risk coverage, the Secretary shall—
(1) to the maximum extent practicable, use all available information and analysis, including data mining, to check for anomalies in the determination of agriculture risk coverage payments;
(2) calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;
(3) in the case of individual coverage, assign an average yield for a farm on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary determines that the farm has planted acreage in a quantity that is insufficient to calculate a representative average yield for the farm;
(4) effective for the 2014 through 2018 crop years, in the case of county coverage, assign an actual or benchmark county yield for each planted acre for the crop year for the covered commodity on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if—
(A) the Secretary cannot establish the actual or benchmark county yield for each planted acre for a crop year for a covered commodity in the county in accordance with subsection (b)(1) or (c)(2); or
(B) the yield determined under subsection (b)(1) or (c)(2) is an unrepresentative average yield for the county, as determined by the Secretary; and
(5) effective for the 2019 through 2023 crop years, in the case of county coverage, assign an actual or benchmark county yield for each planted acre for the crop year for the covered commodity—
(A) for a county for which county data collected by the Risk Management Agency are sufficient for the Secretary to offer a county-wide insurance product, using the actual average county yield determined by the Risk Management Agency; or
(B) for a county not described in subparagraph (A), using—
(i) other sources of yield information, as determined by the Secretary; or
(ii) the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary.
(h) Publications
(1) County guarantee
(A) In general
For each crop year for a covered commodity, the Secretary shall publish information describing, for that crop year for the covered commodity in each county—
(i) the agriculture risk coverage guarantee for county coverage determined under subsection (c)(1);
(ii) the average historical county yield determined under subsection (c)(2)(A); and
(iii) the national average market price determined under subsection (c)(2)(B).
(B) Timing
(i) In general
Except as provided in clauses (ii) and (iii), not later than 30 days after the end of each applicable 12-month marketing year, the Secretary shall publish the information described in subparagraph (A).
(ii) Insufficient data
In the case of a covered commodity, such as temperate japonica rice, for which the Secretary cannot determine the national average market price for the most recent 12-month marketing year by the date described in clause (i) due to insufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, as soon as practicable after the pricing data are made available, the Secretary shall publish information describing—
(I) the agriculture risk coverage guarantee under subparagraph (A)(i); and
(II) the national average market price under subparagraph (A)(iii).
(iii) Transition
Not later than 60 days after December 20, 2018, the Secretary shall publish the information described in clauses (i) and (ii) of subparagraph (A) for the 2018 crop year.
(2) Actual average county yield
As soon as practicable after each crop year, the Secretary shall determine and publish each actual average county yield for each covered commodity, as determined under subsection (b)(1)(A).
(3) Data sources for county yields
For the 2018 crop year and each crop year thereafter, the Secretary shall make publicly available information describing, for the most recent crop year—
(A) the sources of data used to calculate county yields under subsection (c)(2)(A) for each covered commodity—
(i) by county; and
(ii) nationally; and
(B) the number and outcome of occurrences in which the Farm Service Agency reviewed, changed, or determined not to change a source of data used to calculate county yields under subsection (c)(2)(A).
(i) Administrative units
(1) In general
For purposes of agriculture risk coverage payments in the case of county coverage, a county may be divided into not greater than 2 administrative units in accordance with this subsection.
(2) Eligible counties
A county that may be divided into administrative units under this subsection is a county that—
(A) is larger than 1,400 square miles; and
(B) contains more than 190,000 base acres.
(3) Elections
Before making any agriculture risk coverage payments for the 2019 crop year, the Farm Service Agency State committee, in consultation with the Farm Service Agency county or area committee of a county described in paragraph (2), may make a 1-time election to divide the county into administrative units under this subsection along a boundary that better reflects differences in weather patterns, soil types, or other factors.
(4) Limitation
The Secretary shall—
(A) limit the number of counties that may be divided into administrative units under paragraph (3) to 25 counties; and
(B) give preference to the division of counties that have greater variation in climate, soils, and expected productivity between the proposed administrative units.
(5) Administration
For purposes of providing agriculture risk coverage payments in the case of county coverage, the Secretary shall consider an administrative unit elected under paragraph (3) to be a county for the 2019 through 2023 crop years.
(
Editorial Notes
References in Text
The Federal Crop Insurance Act, referred to in subsec. (c)(5), is subtitle A of title V of act Feb. 16, 1938, ch. 30,
Codification
Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (a).
Subsec. (c)(2)(A).
Subsec. (c)(2)(B).
Subsec. (c)(3)(A)(ii).
Subsec. (c)(3)(C).
Subsec. (c)(4).
Subsec. (c)(5).
Subsec. (c)(6).
Subsec. (d).
Subsec. (e).
Subsec. (g)(2).
Subsec. (g)(4).
Subsec. (g)(5).
Subsecs. (h), (i).
§9018. Producer agreements
(a) Compliance with certain requirements
(1) Requirements
Before the producers on a farm may receive payments under this subchapter with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—
(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (
(B) to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (
(C) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary; and
(D) to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary.
(2) Compliance
The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).
(3) Modification
At the request of the transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives of this subsection, as determined by the Secretary.
(b) Transfer or change of interest in farm
(1) Termination
(A) In general
Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which payments under this subchapter are provided shall result in the termination of the payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).
(B) Effective date
The termination shall take effect on the date determined by the Secretary.
(2) Exception
If a producer entitled to a payment under this subchapter dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment in accordance with rules issued by the Secretary.
(c) Acreage reports
As a condition on the receipt of any benefits under this subchapter or subchapter II, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.
(d) Production reports
As an additional condition on receiving agriculture risk coverage payments for individual coverage, the Secretary shall require a producer on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on all farms in the same State—
(1) in which the producer has an interest; and
(2) for which individual coverage has been selected.
(e) Effect of inaccurate reports
No penalty with respect to benefits under this subchapter or subchapter II shall be assessed against a producer on a farm for an inaccurate acreage or production report unless the Secretary determines that the producer on the farm knowingly and willfully falsified the acreage or production report.
(f) Tenants and sharecroppers
In carrying out this subchapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.
(g) Sharing of payments
The Secretary shall provide for the sharing of payments made under this subchapter among the producers on a farm on a fair and equitable basis.
(
Editorial Notes
References in Text
This subchapter, referred to in subsecs. (a)(1), (b)(1)(A), (2), (c), and (e) to (g), was in the original "this subtitle", meaning subtitle A (§§1101–1109) of title I of
The Food Security Act of 1985, referred to in subsec. (a)(1)(A), (B), is
§9019. Repealed. Pub. L. 115–334, title I, §1108, Dec. 20, 2018, 132 Stat. 4508
Section,
SUBCHAPTER II—MARKETING LOANS
§9031. Availability of nonrecourse marketing assistance loans for loan commodities
(a) Definition of loan commodity
In this subchapter, the term "loan commodity" means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.
(b) Nonrecourse loans available
(1) In general
For each of the 2014 through 2023 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.
(2) Terms and conditions
The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under
(c) Eligible production
The producers on a farm shall be eligible for a marketing assistance loan under subsection (b) for any quantity of a loan commodity produced on the farm.
(d) Compliance with conservation and wetlands requirements
As a condition of the receipt of a marketing assistance loan under subsection (b), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (
(e) Special rules for peanuts
(1) In general
This subsection shall apply only to producers of peanuts.
(2) Options for obtaining loan
A marketing assistance loan under this section, and loan deficiency payments under
(A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or
(B) the Farm Service Agency.
(3) Storage of loan peanuts
As a condition on the approval by the Secretary of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—
(A) to provide the storage on a nondiscriminatory basis; and
(B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.
(4) Storage, handling, and associated costs
(A) In general
To ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.
(B) Redemption and forfeiture
The Secretary shall—
(i) require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and
(ii) pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section.
(5) Marketing
A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.
(6) Reimbursable agreements and payment of administrative expenses
The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities.
(
Editorial Notes
References in Text
The Food Security Act of 1985, referred to in subsec. (d), is
Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (b)(1).
§9032. Loan rates for nonrecourse marketing assistance loans
(a) 2014 through 2018 crop years
For purposes of each of the 2014 through 2018 crop years, the loan rate for a marketing assistance loan under
(1) In the case of wheat, $2.94 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality of upland cotton, for each of the 2014 through 2018 crop years, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic plantings, but in no case less than $0.45 per pound or more than $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of large chickpeas, $11.28 per hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(20) In the case of peanuts, $355 per ton.
(b) 2019 through 2023 crop years
For purposes of each of the 2019 through 2023 crop years, the loan rate for a marketing assistance loan under
(1) In the case of wheat, $3.38 per bushel.
(2) In the case of corn, $2.20 per bushel.
(3) In the case of grain sorghum, $2.20 per bushel.
(4) In the case of barley, $2.50 per bushel.
(5) In the case of oats, $2.00 per bushel.
(6)(A) Subject to subparagraphs (B) and (C), in the case of base quality of upland cotton, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic planting.
(B) Except as provided in subparagraph (C), the loan rate determined under subparagraph (A) may not equal less than an amount equal to 98 percent of the loan rate for base quality of upland cotton for the preceding year.
(C) The loan rate determined under subparagraph (A) may not be equal to an amount—
(i) less than $0.45 per pound; or
(ii) more than $0.52 per pound.
(7) In the case of extra long staple cotton, $0.95 per pound.
(8) In the case of long grain rice, $7.00 per hundredweight.
(9) In the case of medium grain rice, $7.00 per hundredweight.
(10) In the case of soybeans, $6.20 per bushel.
(11) In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $6.15 per hundredweight.
(13) In the case of lentils, $13.00 per hundredweight.
(14) In the case of small chickpeas, $10.00 per hundredweight.
(15) In the case of large chickpeas, $14.00 per hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(20) In the case of peanuts, $355 per ton.
(c) Single county loan rate for other oilseeds
The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsections (a)(11) and (b)(11).
(d) Seed cotton
(1) In general
For purposes of section 9016 (b)(2) of this title and paragraphs (1)(B)(ii) and (2)(A)(ii)(II) of
(2) Effect
Nothing in this subsection authorizes any nonrecourse marketing assistance loan under this subchapter for seed cotton.
(
Editorial Notes
Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§9033. Term of loans
(a) Term of loan
In the case of each loan commodity, a marketing assistance loan under
(b) Extensions prohibited
The Secretary may not extend the term of a marketing assistance loan for any loan commodity.
(
§9034. Repayment of loans
(a) General rule
The Secretary shall permit the producers on a farm to repay a marketing assistance loan under
(1) the loan rate established for the commodity under
(2) a rate (as determined by the Secretary) that—
(A) is calculated based on average market prices for the loan commodity during the preceding 30-day period; and
(B) will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or
(3) a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the commodity by the Federal Government;
(C) minimize the cost incurred by the Federal Government in storing the commodity;
(D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and
(E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.
(b) Repayment rates for upland cotton, long grain rice, and medium grain rice
The Secretary shall permit producers to repay a marketing assistance loan under
(1) the loan rate established for the commodity under
(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.
(c) Repayment rates for extra long staple cotton
Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under
(d) Prevailing world market price
For purposes of this section and
(1) a formula to determine the prevailing world market price for each of upland cotton, long grain rice, and medium grain rice; and
(2) a mechanism by which the Secretary shall announce periodically those prevailing world market prices.
(e) Adjustment of prevailing world market price for upland cotton, long grain rice, and medium grain rice
(1) Rice
The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States quality and location.
(2) Cotton
The prevailing world market price for upland cotton determined under subsection (d)—
(A) shall be adjusted to United States quality and location, with the adjustment to include—
(i) a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 13/32-inch; and
(ii) the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and
(B) may be further adjusted, during the period beginning on February 7, 2014, and ending on July 31, 2024, if the Secretary determines the adjustment is necessary—
(i) to minimize potential loan forfeitures;
(ii) to minimize the accumulation of stocks of upland cotton by the Federal Government;
(iii) to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and
(iv) to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—
(I) there are insufficient current-crop price quotations; and
(II) the forward-crop price quotation is the lowest such quotation available.
(3) Guidelines for additional adjustments
In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.
(f) Repayment rates for confectionery and other kinds of sunflower seeds
The Secretary shall permit the producers on a farm to repay a marketing assistance loan under
(1) the loan rate established for the commodity under
(2) the repayment rate established for oil sunflower seed.
(g) Payment of cotton storage costs
Effective for each of the 2014 through 2023 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 10 percent.
(h) Repayment rate for peanuts
The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under
(1) the loan rate established for peanuts under subsection (a)(20) or (b)(20), as applicable, of
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of peanuts by the Federal Government;
(C) minimize the cost incurred by the Federal Government in storing peanuts; and
(D) allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.
(i) Authority to temporarily adjust repayment rates
(1) Adjustment authority
In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under
(2) Duration
Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.
(
Editorial Notes
Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (e)(2)(B).
Subsec. (g).
Subsec. (h)(1).
§9035. Loan deficiency payments
(a) Availability of loan deficiency payments
(1) In general
Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under
(2) Unshorn pelts, hay, and silage
(A) Marketing assistance loans
Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under
(B) Loan deficiency payment
Effective for each of the 2014 through 2023 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
(b) Computation
A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—
(1) the payment rate determined under subsection (c) for the commodity; by
(2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under
(c) Payment rate
(1) In general
In the case of a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under
(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under
(2) Unshorn pelts
In the case of unshorn pelts, the payment rate shall be the amount by which—
(A) the loan rate established under
(B) the rate at which a marketing assistance loan for ungraded wool may be repaid under
(3) Hay and silage
In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under
(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under
(d) Exception for extra long staple cotton
This section shall not apply with respect to extra long staple cotton.
(e) Effective date for payment rate determination
The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.
(
Editorial Notes
Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsec. (a)(2)(B).
§9036. Payments in lieu of loan deficiency payments for grazed acreage
(a) Eligible producers
(1) In general
Effective for each of the 2014 through 2023 crop years, in the case of a producer that would be eligible for a loan deficiency payment under
(2) Grazing of triticale acreage
Effective for each of the 2014 through 2023 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.
(b) Payment amount
(1) In general
The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying—
(A) the loan deficiency payment rate determined under
(B) the payment quantity determined by multiplying—
(i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and
(ii)(I) the payment yield in effect for the calculation of price loss coverage under
(II) in the case of a farm for which agriculture risk coverage is elected under
(III) in the case of a farm for which no payment yield is otherwise established for that loan commodity on the farm, an appropriate yield established by the Secretary in a manner consistent with
(2) Grazing of triticale acreage
The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying—
(A) the loan deficiency payment rate determined under
(B) the payment quantity determined by multiplying—
(i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and
(ii)(I) the payment yield in effect for the calculation of price loss coverage under subchapter I with respect to wheat on the farm;
(II) in the case of a farm for which agriculture risk coverage is elected under
(III) in the case of a farm for which no payment yield is otherwise established for wheat on the farm, an appropriate yield established by the Secretary in a manner consistent with
(c) Time, manner, and availability of payment
(1) Time and manner
A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under
(2) Availability
(A) In general
The Secretary shall establish an availability period for the payments authorized by this section.
(B) Certain commodities
In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this subchapter.
(d) Prohibition on crop insurance indemnity or noninsured crop assistance
A 2014 through 2023 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (
(
Editorial Notes
References in Text
Subchapter I, referred to in subsec. (b)(2)(B)(ii)(I), was in the original "subtitle A", meaning subtitle A of title I of
The Federal Crop Insurance Act, referred to in subsec. (d), is subtitle A of title V of act Feb. 16, 1938, ch. 30,
Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsecs. (a), (d).
§9037. Special marketing loan provisions for upland cotton
(a) Special import quota
(1) Definition of special import quota
In this subsection, the term "special import quota" means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.
(2) Establishment
(A) In general
The President shall carry out an import quota program beginning on August 1, 2014, as provided in this subsection.
(B) Program requirements
Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 13/32-inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.
(3) Quantity
The quota shall be equal to the consumption during a 1-week period of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.
(4) Application
The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary's announcement under paragraph (2) and entered into the United States not later than 180 days after that date.
(5) Overlap
A special quota period may be established that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b).
(6) Preferential tariff treatment
The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—
(A)
(B)
(C)
(D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
(7) Limitation
The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 10 weeks' consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.
(b) Limited global import quota for upland cotton
(1) Definitions
In this subsection:
(A) Demand
The term "demand" means—
(i) the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary; and
(ii) the larger of—
(I) average exports of upland cotton during the preceding 6 marketing years; or
(II) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.
(B) Limited global import quota
The term "limited global import quota" means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.
(C) Supply
The term "supply" means, using the latest official data of the Department of Agriculture—
(i) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;
(ii) production of the current crop; and
(iii) imports to the latest date available during the marketing year.
(2) Program
The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:
(A) Quantity
The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.
(B) Quantity if prior quota
If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.
(C) Preferential tariff treatment
The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—
(i)
(ii)
(iii)
(iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
(D) Quota entry period
When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.
(3) No overlap
Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (a).
(c) Economic adjustment assistance for textile mills
(1) In general
Subject to paragraph (2), the Secretary shall, on a monthly basis, make economic adjustment assistance available to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.
(2) Value of assistance
Effective beginning on August 1, 2013, the value of the assistance provided under paragraph (1) shall be 3 cents per pound.
(3) Allowable purposes
Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.
(4) Review or audit
The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.
(5) Improper use of assistance
If the Secretary determines, after a review or audit of the records of the domestic user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph (3), the domestic user shall be—
(A) liable for the repayment of the assistance to the Secretary, plus interest, as determined by the Secretary; and
(B) ineligible to receive assistance under this subsection for a period of 1 year following the determination of the Secretary.
(
Editorial Notes
References in Text
The Harmonized Tariff Schedule, referred to in subsecs. (a)(6)(D) and (b)(2)(C)(iv), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under
Amendments
2018—Subsec. (c).
§9038. Special competitive provisions for extra long staple cotton
(a) Competitiveness program
Notwithstanding any other provision of law, during the period beginning on February 7, 2014, through July 31, 2024, the Secretary shall carry out a program—
(1) to maintain and expand the domestic use of extra long staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton produced in the United States; and
(3) to ensure that extra long staple cotton produced in the United States remains competitive in world markets.
(b) Payments under program; trigger
Under the program, the Secretary shall make payments available under this section whenever—
(1) for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and
(2) the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 113 percent of the loan rate for extra long staple cotton.
(c) Eligible recipients
The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.
(d) Payment amount
Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.
(
Editorial Notes
Amendments
2018—Subsec. (a).
Subsec. (b)(2).
§9039. Availability of recourse loans for high moisture feed grains and seed cotton
(a) High moisture feed grains
(1) Definition of high moisture state
In this subsection, the term "high moisture state" means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under
(2) Recourse loans available
For each of the 2014 through 2023 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—
(A) normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;
(B) present—
(i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or
(ii) field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;
(C) certify that the producers on the farm were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and
(D) comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.
(3) Eligibility of acquired feed grains
A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—
(A) the acreage of the corn or grain sorghum in a high moisture state harvested on the farm of the producer; by
(B) the lower of—
(i) the payment yield in effect for the calculation of price loss coverage under
(ii) the actual yield of corn or grain sorghum on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained.
(b) Recourse loans available for seed cotton
For each of the 2014 through 2023 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.
(c) Recourse loans available for contaminated commodities
In the case of a loan commodity that is ineligible for 100 percent of the nonrecourse marketing loan rate in the county due to a determination that the commodity is contaminated yet still merchantable, for each of the 2019 through 2023 crops of such loan commodity, the Secretary shall make available recourse commodity loans, at the rate provided under
(d) Repayment rates
Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with
(
Editorial Notes
Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of
Amendments
2018—Subsecs. (a)(2), (b).
Subsecs. (c), (d).
§9040. Adjustments of loans
(a) Adjustment authority
Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors.
(b) Manner of adjustment
The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subchapter and subtitle C.
(c) Adjustment on county basis
(1) In general
The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.
(2) Prohibition
Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.
(d) Adjustment in loan rate for cotton
(1) In general
The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.
(2) Types of adjustments
Loan rate adjustments under paragraph (1) may include—
(A) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;
(B) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and
(C) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).
(3) Consultation with private sector
(A) Prior to revision
In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry.
(B) Inapplicability of chapter 10 of title 5
(4) Review of adjustments
The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further adjustments to the administration of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (2).
(e) Rice
The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).
(
Editorial Notes
References in Text
Subtitle C, referred to in subsec. (b), means subtitle C of title I of
Amendments
2022—Subsec. (d)(3)(B).
SUBCHAPTER III—DAIRY
Part A—Dairy Margin Coverage
Editorial Notes
Codification
§9051. Definitions
In this part:
(1) Actual dairy production margin
The term "actual dairy production margin" means the difference between the all-milk price and the average feed cost, as calculated under
(2) All-milk price
The term "all-milk price" means the average price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United States, as determined by the Secretary.
(3) Average feed cost
The term "average feed cost" means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under
(A) The product determined by multiplying 1.0728 by the price of corn per bushel.
(B) The product determined by multiplying 0.00735 by the price of soybean meal per ton.
(C) The product determined by multiplying 0.0137 by the price of alfalfa hay per ton.
(4) Dairy operation
(A) In general
The term "dairy operation" means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer—
(i) shares in the risk of producing milk; and
(ii) makes contributions (including land, labor, management, equipment, or capital) to the dairy operation of the individual or entity, which are at least commensurate with the individual or entity's share of the proceeds of the operation.
(B) Additional ownership structures
The Secretary shall determine additional ownership structures to be covered by the definition of dairy operation.
(5) Dairy margin coverage
The term "dairy margin coverage" means the dairy margin coverage program required by
(6) Dairy margin coverage payment
The term "dairy margin coverage payment" means a payment made to a participating dairy operation under dairy margin coverage pursuant to
(7) Participating dairy operation
The term "participating dairy operation" means a dairy operation that registers under
(8) Production history
The term "production history" means the production history determined for a participating dairy operation under subsection (a) or (b) of
(9) Secretary
The term "Secretary" means the Secretary of Agriculture.
(10) United States
The term "United States", in a geographical sense, means the 50 States, the District of Columbia, American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, and any other territory or possession of the United States.
(
Editorial Notes
Amendments
2018—
Par. (4).
Pars. (5), (6).
Pars. (7), (8).
Pars. (9) to (11).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
§9052. Calculation of average feed cost and actual dairy production margins
(a) Calculation of average feed cost
The Secretary shall calculate the national average feed cost for each month using the following data:
(1) The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported in the monthly Agricultural Prices report by the Secretary.
(2) The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market News–Monthly Soybean Meal Price Report by the Secretary.
(3) The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary.
(b) Calculation of actual dairy production margin
(1) In general
For use in dairy margin coverage, the Secretary shall calculate the actual dairy production margin for each month by subtracting—
(A) the average feed cost for that month, determined in accordance with subsection (a); from
(B) the all-milk price for that month.
(2) Time for calculation
The calculation required by this subsection shall be made as soon as practicable using the full-month price of the applicable reference month.
(
Editorial Notes
Amendments
2018—Subsec. (b)(1).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Amendment by
Collection of Alfalfa Hay Data
§9053. Dairy margin coverage
(a) In general
The Secretary shall continue to administer a dairy margin coverage program for dairy producers under which participating dairy operations are paid a dairy margin coverage payment when actual dairy production margins are less than the threshold levels for a dairy margin coverage payment.
(b) Regulations
Subpart A of part 1430 of title 7, Code of Federal Regulations (as in effect on December 20, 2018), shall remain in effect for dairy margin coverage beginning with the 2019 calendar year, except to the extent that the regulations are inconsistent with any provision of this Act.
(
Editorial Notes
References in Text
This Act, referred to in subsec. (b), is
Amendments
2018—
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§9054. Participation of dairy operations in dairy margin coverage
(a) Eligibility
All dairy operations in the United States shall be eligible to participate in dairy margin coverage to receive dairy margin coverage payments.
(b) Registration process
(1) In general
The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in dairy margin coverage, including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year.
(2) Extension of election period for 2018 calendar year
(A) In general
The Secretary shall extend the election period for the 2018 calendar year by not less than 90 days after February 9, 2018, or such additional period as the Secretary determines is necessary for dairy operations to make new elections to participate for that calendar year, including dairy operations that elected to so participate before February 9, 2018.
(B) Retroactive program option
In the case of a dairy operation that, by operation of subsection (d) (as in effect on the day before December 20, 2018), was ineligible to participate in the margin protection program for any part of calendar year 2018, the Secretary shall establish a new election period for that calendar year that ends on a date that is not less than 90 days after December 20, 2018, and the Secretary determines is necessary for dairy operations to make new elections to participate in the margin protection program (as in effect on the day before December 20, 2018) for that calendar year, including dairy operations that elected to participate in the livestock gross margin for dairy program under the Federal Crop Insurance Act (
(3) Election period for 2019 calendar year
For the 2019 calendar year, the Secretary shall—
(A) open the election period not later than 60 days after the effective date described in section 1401(m) of the Agriculture Improvement Act of 2018; and
(B) hold that election period open for not less than 90 days.
(4) Treatment of multiproducer dairy operation
(A) In general
If a participating dairy operation is operated by more than 1 dairy producer, the dairy producers of the dairy operation who elect to participate shall be treated as a single dairy operation for purposes of participating in dairy margin coverage.
(B) Rule of construction
Subparagraph (A) shall not be construed to allow a producer to adjust the proportion of their share covered under tier I or tier II premiums from the proportion covered for the operation.
(5) Treatment of producers with multiple dairy operations
If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to participate in dairy margin coverage.
(c) Annual administrative fee
(1) Administrative fee required
Each participating dairy operation shall—
(A) pay an administrative fee to register to participate in dairy margin coverage; and
(B) pay the administrative fee annually through the duration of dairy margin coverage specified in
(2) Amount of fee
The administrative fee for a participating dairy operation shall be $100.
(3) Use of fees
The Secretary shall use administrative fees collected under this subsection to cover administrative costs incurred to carry out dairy margin coverage.
(4) Exemption
A limited resource, beginning, veteran, or socially disadvantaged farmer, as defined by the Secretary, shall be exempt from the administrative fee under this subsection.
(
Editorial Notes
References in Text
The Federal Crop Insurance Act, referred to in subsec. (b)(2)(B), is subtitle A of title V of act Feb. 16, 1938, ch. 30,
Section 1401(m) of the Agriculture Improvement Act of 2018, referred to in subsec. (b)(3)(A), is section 1401(m) of
Amendments
2018—
Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (c)(1), (3).
Subsec. (c)(4).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Amendment by
§9055. Production history of participating dairy operations
(a) Production history
(1) In general
Except as provided in paragraph (4) and subsection (b), when a dairy operation first registers to participate in dairy margin coverage, the production history of the dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012, or 2013 calendar years.
(2) Adjustment
In the subsequent calendar years ending before January 1, 2019, the Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) to reflect any increase in the national average milk production.
(3) Continued applicability of base production history
A production history established for a dairy operation under paragraph (1) shall be the base production history for the dairy operation in subsequent years (as adjusted under paragraph (2), as applicable).
(4) Base production history adjustment for participating dairy operations with production of less than 5,000,000 pounds
(A) In general
If the amount determined under paragraph (1) is less than 5,000,000 pounds, the production history of the dairy operation for dairy margin coverage shall be equal to—
(i) the amount determined under paragraph (1); plus
(ii) 75 percent of the amount described in subparagraph (B).
(B) Amount
The amount referred to in subparagraph (A)(ii) is, with respect to a dairy operation, the amount equal to—
(i) the production volume of such dairy operation for the 2019 milk marketing year; minus
(ii) the amount determined under paragraph (1).
(b) Election by new dairy operations
(1) Dairy operations with less than 1 year of production history
In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:
(A) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.
(B) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.
(2) Dairy operations with 1 year or more of production history
In the case of a participating dairy operation that was not in operation prior to January 1, 2014, that has not established a production history, and that has been in operation for equal to or longer than 1 year, the participating dairy operation shall elect the annual milk marketings during any 1 calendar year to determine the production history of the participating dairy operation.
(3) Adjustment
The Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) or (2) to reflect any increase or decrease in the national average milk production relative to calendar year 2017.
(c) Required information
A participating dairy operation shall provide all information that the Secretary may require in order to establish the production history of the participating dairy operation for purposes of participating in dairy margin coverage.
(d) Limitation on changes to business structure
The Secretary may not make dairy margin coverage payments to a participating dairy operation if the Secretary determines that the participating dairy operation has reorganized the structure of such operation solely for the purpose of qualifying as a new operation under subsection (b).
(
Editorial Notes
Amendments
2023—Subsec. (a)(1).
Subsec. (a)(4).
2018—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2023 Amendment
Amendment by
Effective Date of 2018 Amendment
Amendment by
Amendment by
§9056. Dairy margin coverage payments
(a) Coverage level threshold and coverage percentage
(1) Coverage level threshold
(A) In general
For purposes of receiving dairy margin coverage payments for a month, a participating dairy operation shall annually elect a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, $8.00, $8.50, $9.00, or $9.50.
(B) Applicability
Except as provided in subparagraph (C), the coverage level threshold elected under subparagraph (A) shall apply to the covered production elected by the participating dairy operation under paragraph (2).
(C) Second coverage election for tier II
In the case of a participating dairy operation that elects a coverage level threshold of $8.50, $9.00, or $9.50 under subparagraph (A)—
(i) that coverage level threshold shall apply to the first 5,000,000 pounds of milk marketings included in the covered production elected by the participating dairy operation; and
(ii) the participating dairy operation shall elect 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 to apply to milk marketings in excess of 5,000,000 pounds included in the covered production elected by the participating dairy operation.
(2) Coverage percentage
For purposes of receiving dairy margin coverage payments for a month, a participating dairy operation shall annually elect a percentage of coverage, in 5-percent increments, not exceeding 95 percent of the production history of the participating dairy operation.
(b) Payment threshold
A participating dairy operation shall receive a dairy margin coverage payment whenever the average actual dairy production margin for a month is less than the coverage level threshold selected by the participating dairy operation.
(c) Amount of payment
The dairy margin coverage 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 month.
(2) The amount determined under paragraph (1) shall be multiplied by—
(A) the coverage percentage selected by the participating dairy operation; and
(B) the production history of the participating dairy operation divided by 12.
(
Editorial Notes
Amendments
2018—
Subsec. (a).
"(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
"(2) a percentage of coverage, in 5-percent increments, beginning with 25 percent and not exceeding 90 percent of the production history of the participating dairy operation."
Subsec. (b).
Subsec. (c).
Subsec. (c)(2)(B).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Amendment by
Supplemental Dairy Margin Coverage Payments
"(a)
"(b)
"(1)
"(A) is located in the United States; and
"(B) during a calendar year in which such dairy operation is a participating dairy operation (as defined in section 1401 of the Agricultural Act of 2014 (
"(2)
"(c)
"(1)
"(2)
"(A) the production volume of such dairy operation for the 2019 milk marketing year; minus
"(B) the dairy margin coverage production history of such dairy operation established under section 1405 of the Agricultural Act of 2014 (
"(d)
"(1)
"(2) 5
"(A)
"(B)
"(i) the supplemental production history calculated under subsection (c) with respect to such dairy operation; and
"(ii) the dairy margin coverage production history described in subsection (c)(2)(B) with respect to such dairy operation.
"(e)
"(1) the Tier I premium cost calculated with respect to such dairy operation for such year under section 1407(b) of the Agricultural Act of 2014 (
"(2) the supplemental production history with respect to such dairy operation calculated under subsection (c) (such that total covered production history does not exceed 5,000,000 pounds).
"(f)
"(g)
"(1)
"(2)
"(h)
"(i)
"(j)
[For definition of "Secretary" as used in section 761 of div. N of
§9057. Premiums for dairy margin coverage
(a) Calculation of premiums
For purposes of participating in dairy margin coverage, a participating dairy operation shall pay an annual premium equal to the product obtained by multiplying—
(1) the coverage percentage elected by the participating dairy operation under
(2) the production history of the participating dairy operation; and
(3) the premium per hundredweight of milk imposed by this section for the coverage level selected.
(b) Tier I: premium per hundredweight for first 5,000,000 pounds of production
(1) In general
For the first 5,000,000 pounds of milk marketings included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).
(2) Producer premiums
Except as provided in subsection (g), the following annual premiums apply:
| Coverage Level | Premium per Cwt. |
|---|---|
| $4.00 | None |
| $4.50 | $0.0025 |
| $5.00 | $0.005 |
| $5.50 | $0.030 |
| $6.00 | $0.050 |
| $6.50 | $0.070 |
| $7.00 | $0.080 |
| $7.50 | $0.090 |
| $8.00 | $0.100 |
| $8.50 | $0.105 |
| $9.00 | $0.110 |
| $9.50 | $0.150 |
(c) Tier II: premium per hundredweight for production in excess of 5,000,000 pounds
(1) In general
For milk marketings in excess of 5,000,000 pounds included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).
(2) Producer premiums
Except as provided in subsection (g), the following annual premiums apply:
| Coverage Level | Premium per Cwt. |
|---|---|
| $4.00 | None |
| $4.50 | $0.0025 |
| $5.00 | $0.005 |
| $5.50 | $0.100 |
| $6.00 | $0.310 |
| $6.50 | $0.650 |
| $7.00 | $1.107 |
| $7.50 | $1.413 |
| $8.00 | $1.813 |
(d) Time for payment of premium
The Secretary shall provide more than 1 method by which a participating dairy operation may pay the premium required under this section in any manner that maximizes participating dairy operation payment flexibility and dairy margin coverage integrity.
(e) Premium obligations
(1) Pro-ration of premium for new participants
In the case of a participating dairy operation that first registers to participate in dairy margin coverage for a calendar year after the start of the calendar year, the participating dairy operation shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which the participating dairy operation purchases the coverage.
(2) Legal obligation
A participating dairy operation in dairy margin coverage for a calendar year shall be legally obligated to pay the applicable premium for that calendar year, except that the Secretary may waive that obligation, under terms and conditions determined by the Secretary, for any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, or other circumstances as the Secretary considers appropriate to ensure the integrity of dairy margin coverage.
(f) Repayment of premiums
(1) In general
Each dairy operation described in paragraph (2) shall be eligible to receive a repayment from the Secretary in an amount equal to the difference between—
(A) the total amount of premiums paid by the participating dairy operation under this section for each applicable calendar year; and
(B) the total amount of payments made to the participating dairy operation under
(2) Eligibility
A dairy operation that is eligible to receive a repayment under paragraph (1) is a dairy operation that—
(A) participated in the margin protection program, as in effect for any of calendar years 2014 through 2017; and
(B) submits to the Secretary an application for the repayment at such time, in such manner, and containing such information as the Secretary may require.
(3) Method of repayment
A dairy operation that is eligible to receive a repayment under paragraph (1) shall elect to receive the repayment—
(A) in an amount equal to 75 percent of the repayment calculated under that paragraph as credit that may be used by the dairy operation for dairy margin coverage premiums; or
(B) in an amount equal to 50 percent of the repayment calculated under that paragraph as a direct cash repayment.
(4) Applicability
Paragraph (1) shall only apply to a calendar year during the period of calendar years 2014 through 2017 for which the amount described in subparagraph (A) of that paragraph is greater than the amount described in subparagraph (B) of that paragraph.
(g) Premium discount
The premium per hundredweight specified in the tables contained in subsections (b) and (c) for each coverage level shall be reduced by 25 percent in accordance with the following:
(1) In general
For each of calendar years 2019 through 2023, for a participating dairy operation that makes a 1-time election of coverage level in a tier and of a percentage of coverage under
(2) New dairy operations
For each applicable calendar year through 2023, for a participating dairy operation that—
(A) establishes a production history pursuant to
(B) makes a 1-time election of coverage level in a tier and of a percentage of coverage under
(3) Full participation required
Notwithstanding the annual elections under
(A) a 1-time enrollment under this subsection shall remain in effect for the full duration applicable to a participating dairy operation in accordance with paragraph (1) or (2)(B), as applicable; and
(B) a participating dairy operation that makes a 1-time enrollment under this subsection and is noncompliant under
(
Editorial Notes
Amendments
2018—
Subsec. (a).
Subsec. (b).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (c).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (d).
Subsec. (e).
Subsec. (e)(2).
Subsec. (f).
Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Amendment by
Availability of Premium Discount
§9058. Effect of failure to pay administrative fees or premiums
(a) Loss of benefits
A participating dairy operation that fails to pay the required annual administrative fee under
(1) remains legally obligated to pay the administrative fee or premiums, as the case may be; and
(2) may not receive dairy margin coverage payments until the fees or premiums are fully paid.
(b) Enforcement
The Secretary may take such action as necessary to collect administrative fees and premium payments for participation in dairy margin coverage.
(
Editorial Notes
Amendments
2018—Subsec. (a)(2).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
§9059. Duration
Dairy margin coverage shall end on December 31, 2024.
(
Editorial Notes
Amendments
2023—
2018—
Statutory Notes and Related Subsidiaries
Effective Date of 2023 Amendment
Amendment by
Effective Date of 2018 Amendment
Amendment by
§9060. Administration and enforcement
(a) In general
The Secretary shall promulgate regulations to address administrative and enforcement issues involved in carrying out dairy margin coverage.
(b) Reconstitution
The Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the purpose of the dairy producer receiving dairy margin coverage payments.
(c) Administrative appeals
Using authorities under
(
Editorial Notes
References in Text
The Department of Agriculture Reorganization Act, referred to in subsec. (c), probably means the Department of Agriculture Reorganization Act of 1994 which is title II of
Codification
Section is comprised of section 1410 of
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
Amendment by
Part B—Milk Donation Program
Editorial Notes
Codification
§9071. Milk donation program
(a) Definitions
In this section:
(1) Eligible dairy organization
The term "eligible dairy organization" means a dairy farmer (either individually or as part of a cooperative), or a dairy processor, who—
(A) accounts to a Federal milk marketing order marketwide pool; and
(B) incurs qualified expenses under subsection (e).
(2) Eligible distributor
The term "eligible distributor" means a public or private nonprofit organization that distributes donated eligible milk.
(3) Eligible milk
The term "eligible milk" means Class I fluid milk products produced and processed in the United States.
(4) Eligible partnership
The term "eligible partnership" means a partnership between an eligible dairy organization and an eligible distributor.
(5) Participating partnership
The term "participating partnership" means an eligible partnership for which the Secretary has approved a donation and distribution plan for eligible milk under subsection (c)(2).
(b) Program required; purposes
Not later than 180 days after December 20, 2018, the Secretary shall establish and administer a milk donation program for the purposes of—
(1) encouraging the donation of eligible milk;
(2) providing nutrition assistance to individuals in low-income groups; and
(3) reducing food waste.
(c) Donation and distribution plans
(1) In general
To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that—
(A) describes the process that the eligible partnership will use for the donation, processing, transportation, temporary storage, and distribution of eligible milk;
(B) includes an estimate of the quantity of eligible milk that the eligible partnership will donate each year, based on—
(i) preplanned donations; and
(ii) contingency plans to address unanticipated donations; and
(C) describes the rate at which the eligible partnership will be reimbursed, which shall be based on a percentage of the limitation described in subsection (e)(2), not to exceed 100 percent.
(2) Review and approval
Not less frequently than annually, the Secretary shall—
(A) review donation and distribution plans submitted under paragraph (1); and
(B) determine whether to approve or disapprove each of those donation and distribution plans.
(d) Reimbursement
(1) In general
On receipt of appropriate documentation under paragraph (2), the Secretary shall reimburse an eligible dairy organization that is a member of a participating partnership on a regular basis for qualified expenses described in subsection (e).
(2) Documentation
(A) In general
An eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate the qualified expenses described in subsection (e) of the eligible dairy organization.
(B) Verification
The Secretary may verify the accuracy of documentation submitted under subparagraph (A) by spot checks and audits.
(3) Retroactive reimbursement
In providing reimbursements under paragraph (1), the Secretary may provide reimbursements for qualified expenses incurred before the date on which the donation and distribution plan for the applicable participating partnership was approved by the Secretary.
(e) Qualified expenses
(1) In general
The amount of a reimbursement under subsection (d) shall be an amount equal to the product of—
(A) the quantity of eligible milk donated by the eligible dairy organization under a donation and distribution plan approved by the Secretary under subsection (c); and
(B) subject to the limitation under paragraph (2), the rate described in that donation and distribution plan under subsection (c)(1)(C).
(2) Limitation
Expenses eligible for reimbursement under subsection (d) shall not exceed the value that an eligible dairy organization incurred by accounting to the Federal milk marketing order pool at the difference in the Class I milk value and the lowest classified price for the applicable month (either Class III milk or Class IV milk).
(f) Preapproval
(1) In general
The Secretary shall—
(A) establish a process for an eligible partnership to apply for preapproval of donation and distribution plans under subsection (c); and
(B) not less frequently than annually, preapprove an amount for qualified expenses described in subsection (e) that the Secretary will allocate for reimbursement under each donation and distribution plan preapproved under subparagraph (A), based on an assessment of—
(i) the feasibility of the plan; and
(ii) the extent to which the plan advances the purposes described in subsection (b).
(2) Preference
In preapproving amounts for reimbursement under paragraph (1)(B), the Secretary shall give preference to eligible partnerships that will provide funding and in-kind contributions in addition to the reimbursements.
(3) Adjustments
(A) In general
The Secretary shall adjust or increase amounts preapproved for reimbursement under paragraph (1)(B) based on performance and demand.
(B) Requests for increase
(i) In general
The Secretary shall establish a procedure for a participating partnership to request an increase in the amount preapproved for reimbursement under paragraph (1)(B) based on changes in conditions.
(ii) Interim approval; incremental increase
The Secretary may provide an interim approval of an increase requested under clause (i) and an incremental increase in the amount of reimbursement to the applicable participating partnership to allow time for the Secretary to review the request without interfering with the donation and distribution of eligible milk by the participating partnership.
(g) Prohibition on resale of products
(1) In general
An eligible distributor that receives eligible milk donated under this section may not sell the products back into commercial markets.
(2) Prohibition on future participation
An eligible distributor that the Secretary determines has violated paragraph (1) shall not be eligible for any future participation in the program established under this section.
(h) Administration
The Secretary shall publicize opportunities to participate in the program established under this section.
(i) Reviews
The Secretary shall conduct appropriate reviews or audits to ensure the integrity of the program established under this section.
(j) Funding
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $9,000,000 for fiscal year 2019, and $5,000,000 for each fiscal year thereafter, to remain available until expended.
(
Editorial Notes
Prior Provisions
A prior section 9071,
§9071a. Dairy donation program
(a) Definitions
In this section:
(1) Eligible dairy organization
The term "eligible dairy organization" has the meaning given the term in
(2) Eligible dairy product
The term "eligible dairy product" means a product primarily made from milk, including fluid milk, that is produced and processed in the United States.
(3) Eligible distributor
The term "eligible distributor" means a public or private nonprofit organization that distributes donated eligible dairy products to recipient individuals and families.
(4) Eligible partnership
The term "eligible partnership" means a partnership between an eligible dairy organization and an eligible distributor.
(b) Establishment and purposes
Not later than 60 days after December 27, 2020, the Secretary shall establish and administer a dairy donation program for the purposes of—
(1) facilitating the timely donation of eligible dairy products; and
(2) preventing and minimizing food waste.
(c) Donation and distribution plans
(1) In general
To be eligible to receive reimbursement under subsection (d), an eligible partnership shall submit to the Secretary a donation and distribution plan that describes the process that the eligible partnership will use for the donation, processing, transportation, temporary storage, and distribution of eligible dairy products.
(2) Review and approval
(A) In general
Not later than 15 business days after receiving a plan described in paragraph (1), the Secretary shall—
(i) review that plan; and
(ii) issue an approval or disapproval of that plan.
(B) Emergency and disaster-related prioritization
(i) In general
In receiving and reviewing a donation and distribution plan submitted under paragraph (1), the Secretary shall determine whether an emergency or disaster was a substantial factor in the submission, including—
(I) a declared or renewed public health emergency under
(II) a disaster designated by the Secretary.
(ii) Priority review
On making an affirmative determination under clause (i) with respect to a donation and distribution plan submitted under paragraph (1), the Secretary shall give priority to the approval or disapproval of that plan.
(d) Reimbursement
(1) In general
On receipt of appropriate documentation under paragraph (3), the Secretary shall reimburse an eligible dairy organization that is a member of an eligible partnership for which the Secretary has approved a donation and distribution plan under subsection (c)(2)(A)(ii) at a rate equal to the product obtained by multiplying—
(A) the current reimbursement price described in paragraph (2); and
(B) the volume of milk required to make the donated eligible dairy product.
(2) Reimbursement price
The Secretary—
(A) shall set the reimbursement price referred to in paragraph (1)(A) at a value that shall—
(i) be representative of the cost of the milk required to make the donated eligible dairy product;
(ii) be between the lowest and highest of the class I, II, III, or IV milk prices on the date of the production of the eligible dairy product;
(iii) be sufficient to avoid food waste; and
(iv) not interfere with the commercial marketing of milk or dairy products;
(B) may set appropriate reimbursement prices under subparagraph (A) for different eligible dairy products by class and region for the purpose of—
(i) encouraging the donation of surplus eligible dairy products;
(ii) facilitating the orderly marketing of milk;
(iii) reducing volatility relating to significant market disruptions;
(iv) maintaining traditional price relationships between classes of milk; or
(v) stabilizing on-farm milk prices.
(3) Documentation
(A) In general
An eligible dairy organization shall submit to the Secretary such documentation as the Secretary may require to demonstrate—
(i) the production of the eligible dairy product; and
(ii) the donation of the eligible dairy product to an eligible distributor.
(B) Verification
The Secretary may verify the accuracy of documentation submitted under subparagraph (A).
(4) Retroactive reimbursement
In providing reimbursements under paragraph (1), the Secretary may provide reimbursements for eligible dairy product costs incurred before the date on which the donation and distribution plan for the applicable participating partnership was approved by the Secretary under subsection (c)(2)(A)(ii).
(5) Emergency and disaster-related prioritization
In providing reimbursements under paragraph (1), the Secretary shall give priority to reimbursements to eligible dairy organizations covered by a donation and distribution plan for which the Secretary makes an affirmative determination under subsection (c)(2)(B)(i).
(e) Prohibition on resale of products
(1) In general
An eligible distributor that receives eligible dairy products donated under this section may not sell the eligible dairy products into commercial markets.
(2) Prohibition on future participation
An eligible distributor that the Secretary determines has violated paragraph (1) shall not be eligible for any future participation in the program established under this section.
(f) Reviews
The Secretary shall conduct appropriate reviews or audits to ensure the integrity of the program established under this section.
(g) Publication of donation activity
The Secretary, acting through the Administrator of the Agricultural Marketing Service, shall publish on the publicly accessible website of the Agricultural Marketing Service periodic reports describing donation activity under this section.
(h) Supplemental reimbursements
(1) In general
The Secretary shall make a supplemental reimbursement to an eligible dairy organization that received a reimbursement under the milk donation program established under
(2) Reimbursement calculation
A supplemental reimbursement described in paragraph (1) shall be an amount equal to—
(A) the reimbursement calculated under subsection (d); minus
(B) the reimbursement under the milk donation program described in paragraph (1).
(i) Funding
Out of any amounts of the Treasury not otherwise appropriated, there is appropriated to the Secretary to carry out this section $400,000,000, to remain available until expended.
(
Editorial Notes
Codification
Section was enacted as part of the Consolidated Appropriations Act, 2021, and not as part of title I of
Statutory Notes and Related Subsidiaries
Definition
For definition of "Secretary" as used in this section, see section 760 of div. N of
SUBCHAPTER IV—SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE PROGRAMS
§9081. Supplemental agricultural disaster assistance
(a) Definitions
In this section:
(1) Covered producer
The term "covered producer" means an eligible producer on a farm that is—
(A) as determined by the Secretary—
(i) a beginning farmer or rancher;
(ii) a socially disadvantaged farmer or rancher; or
(iii) a limited resource farmer or rancher; or
(B) a veteran farmer or rancher, as defined in
(2) Eligible producer on a farm
(A) In general
The term "eligible producer on a farm" means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes the production and market risks associated with the agricultural production of crops or livestock.
(B) Description
An individual or entity referred to in subparagraph (A) is—
(i) a citizen of the United States;
(ii) a resident alien;
(iii) an Indian tribe or tribal organization (as those terms are defined in
(iv) a partnership of citizens of the United States; or
(v) a corporation, limited liability corporation, or other farm organizational structure organized under State law.
(3) Farm-raised fish
The term "farm-raised fish" means any aquatic species that is propagated and reared in a controlled environment.
(4) Livestock
The term "livestock" includes—
(A) cattle (including dairy cattle);
(B) bison;
(C) poultry;
(D) sheep;
(E) swine;
(F) horses; and
(G) other livestock, as determined by the Secretary.
(5) Secretary
The term "Secretary" means the Secretary of Agriculture.
(b) Livestock indemnity payments
(1) Payments
For fiscal year 2012 and each succeeding fiscal year, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to make livestock indemnity payments to eligible producers on farms that have incurred livestock death losses in excess of the normal mortality, sold livestock for a reduced sale price, or both as determined by the Secretary, due to—
(A) attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators;
(B) adverse weather, as determined by the Secretary, during the calendar year, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat, and extreme cold, on the condition that in the case of the death loss of unweaned livestock due to that adverse weather, the Secretary may disregard any management practice, vaccination protocol, or lack of vaccination by the eligible producer on a farm; or
(C) disease that, as determined by the Secretary—
(i) is caused or transmitted by a vector; and
(ii) is not susceptible to control by vaccination or acceptable management practices.
(2) Payment rates
Indemnity payments to an eligible producer on a farm under paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock, as determined by the Secretary, on, as applicable—
(A) the day before the date of death of the livestock; or
(B) the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.
(3) Special rule for payments made due to disease
The Secretary shall ensure that payments made to an eligible producer under paragraph (1) are not made for the same livestock losses for which compensation is provided pursuant to
(4) Payment reductions
A payment made under paragraph (1) to an eligible producer on a farm that sold livestock for a reduced sale price shall—
(A) be made if the sale occurs within a reasonable period following the event, as determined by the Secretary; and
(B) be reduced by the amount that the producer received for the sale.
(c) Livestock forage disaster program
(1) Definitions
In this subsection:
(A) Covered livestock
(i) In general
Except as provided in clause (ii), the term "covered livestock" means livestock of an eligible livestock producer that, during the 60 days prior to the beginning date of a qualifying drought or fire condition, as determined by the Secretary, the eligible livestock producer—
(I) owned;
(II) leased;
(III) purchased;
(IV) entered into a contract to purchase;
(V) is a contract grower; or
(VI) sold or otherwise disposed of due to qualifying drought conditions during—
(aa) the current production year; or
(bb) subject to paragraph (3)(B)(ii), 1 or both of the 2 production years immediately preceding the current production year.
(ii) Exclusion
The term "covered livestock" does not include livestock that were or would have been in a feedlot, on the beginning date of the qualifying drought or fire condition, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary.
(B) Drought monitor
The term "drought monitor" means a system for classifying drought severity according to a range of abnormally dry to exceptional drought, as defined by the Secretary.
(C) Eligible livestock producer
(i) In general
The term "eligible livestock producer" means an eligible producer on a farm that—
(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the pastureland or grazing land, including cash-leased pastureland or grazing land, for the livestock;
(II) provides the pastureland or grazing land for covered livestock, including cash-leased pastureland or grazing land that is physically located in a county affected by drought;
(III) certifies grazing loss; and
(IV) meets all other eligibility requirements established under this subsection.
(ii) Exclusion
The term "eligible livestock producer" does not include an owner, cash or share lessee, or contract grower of livestock that rents or leases pastureland or grazing land owned by another person on a rate-of-gain basis.
(D) Normal carrying capacity
The term "normal carrying capacity", with respect to each type of grazing land or pastureland in a county, means the normal carrying capacity, as determined under paragraph (3)(D)(i), that would be expected from the grazing land or pastureland for livestock during the normal grazing period, in the absence of a drought or fire that diminishes the production of the grazing land or pastureland.
(E) Normal grazing period
The term "normal grazing period", with respect to a county, means the normal grazing period during the calendar year for the county, as determined under paragraph (3)(D)(i).
(2) Program
For fiscal year 2012 and each succeeding fiscal year, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide compensation for losses to eligible livestock producers due to grazing losses for covered livestock due to—
(A) a drought condition, as described in paragraph (3); or
(B) fire, as described in paragraph (4).
(3) Assistance for losses due to drought conditions
(A) Eligible losses
(i) In general
An eligible livestock producer may receive assistance under this subsection only for grazing losses for covered livestock that occur on land that—
(I) is native or improved pastureland with permanent vegetative cover; or
(II) is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.
(ii) Exclusions
An eligible livestock producer may not receive assistance under this subsection for grazing losses that occur on land used for haying or grazing under the conservation reserve program established under subchapter B of
(B) Monthly payment rate
(i) In general
Except as provided in clause (ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be equal to 60 percent of the lesser of—
(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as determined under subparagraph (C); or
(II) the monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer.
(ii) Partial compensation
In the case of an eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions in 1 or both of the 2 production years immediately preceding the current production year, as determined by the Secretary, the payment rate shall be 80 percent of the payment rate otherwise calculated in accordance with clause (i).
(C) Monthly feed cost
(i) In general
The monthly feed cost shall equal the product obtained by multiplying—
(I) 30 days;
(II) a payment quantity that is equal to the feed grain equivalent, as determined under clause (ii); and
(III) a payment rate that is equal to the corn price per pound, as determined under clause (iii).
(ii) Feed grain equivalent
For purposes of clause (i)(II), the feed grain equivalent shall equal—
(I) in the case of an adult beef cow, 15.7 pounds of corn per day; or
(II) in the case of any other type of weight of livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day necessary to feed the livestock.
(iii) Corn price per pound
For purposes of clause (i)(III), the corn price per pound shall equal the quotient obtained by dividing—
(I) the higher of—
(aa) the national average corn price per bushel for the 12-month period immediately preceding March 1 of the year for which the disaster assistance is calculated; or
(bb) the national average corn price per bushel for the 24-month period immediately preceding that March 1; by
(II) 56.
(D) Normal grazing period and drought monitor intensity
(i) FSA county committee determinations
(I) In general
The Secretary shall determine the normal carrying capacity and normal grazing period for each type of grazing land or pastureland in the county served by the applicable committee.
(II) Changes
No change to the normal carrying capacity or normal grazing period established for a county under subclause (I) shall be made unless the change is requested by the appropriate State and county Farm Service Agency committees.
(ii) Drought intensity
(I) D2
An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having a D2 (severe drought) intensity in any area of the county for at least 8 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B).
(II) D3
An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph—
(aa) in an amount equal to 3 monthly payments using the monthly payment rate determined under subparagraph (B);
(bb) if the county is rated as having a D3 (extreme drought) intensity in any area of the county for at least 4 weeks during the normal grazing period for the county, or is rated as having a D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period, in an amount equal to 4 monthly payments using the monthly payment rate determined under subparagraph (B); or
(cc) if the county is rated as having a D4 (exceptional drought) intensity in any area of the county for at least 4 weeks during the normal grazing period, in an amount equal to 5 monthly payments using the monthly rate determined under subparagraph (B).
(4) Assistance for losses due to fire on public managed land
(A) In general
An eligible livestock producer may receive assistance under this paragraph only if—
(i) the grazing losses occur on rangeland that is managed by a Federal agency; and
(ii) the eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire.
(B) Payment rate
The payment rate for assistance under this paragraph shall be equal to 50 percent of the monthly feed cost for the total number of livestock covered by the Federal lease of the eligible livestock producer, as determined under paragraph (3)(C).
(C) Payment duration
(i) In general
Subject to clause (ii), an eligible livestock producer shall be eligible to receive assistance under this paragraph for the period—
(I) beginning on the date on which the Federal agency excludes the eligible livestock producer from using the managed rangeland for grazing; and
(II) ending on the last day of the Federal lease of the eligible livestock producer.
(ii) Limitation
An eligible livestock producer may only receive assistance under this paragraph for losses that occur on not more than 180 days per year.
(5) No duplicative payments
An eligible livestock producer may elect to receive assistance for grazing or pasture feed losses due to drought conditions under paragraph (3) or fire under paragraph (4), but not both for the same loss, as determined by the Secretary.
(d) Emergency assistance for livestock, honey bees, and farm-raised fish
(1) In general
For fiscal year 2012 and each succeeding fiscal year, the Secretary shall use the funds of the Commodity Credit Corporation to provide emergency relief to eligible producers of livestock, honey bees, and farm-raised fish to aid in the reduction of losses due to disease (including cattle tick fever), adverse weather, or other conditions, such as blizzards and wildfires, as determined by the Secretary, that are not covered under subsection (b) or (c).
(2) Use of funds
Funds made available under this subsection shall be used to reduce losses caused by feed or water shortages, disease, or other factors as determined by the Secretary, including inspections of cattle tick fever.
(3) Availability of funds
Any funds made available under this subsection shall remain available until expended.
(4) Payment rate for covered producers
In the case of a covered producer that is eligible to receive assistance under this subsection, the Secretary shall provide reimbursement of 90 percent of the cost of losses described in paragraph (1) or (2).
(e) Tree assistance program
(1) Definitions
In this subsection:
(A) Eligible orchardist
The term "eligible orchardist" means a person that produces annual crops from trees for commercial purposes.
(B) Natural disaster
The term "natural disaster" means plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other occurrence, as determined by the Secretary.
(C) Nursery tree grower
The term "nursery tree grower" means a person who produces nursery, ornamental, fruit, nut, or Christmas trees for commercial sale, as determined by the Secretary.
(D) Tree
The term "tree" includes a tree, bush, and vine.
(2) Eligibility
(A) Loss
Subject to subparagraph (B), for fiscal year 2012 and each succeeding fiscal year, the Secretary shall use such sums as are necessary of the funds of the Commodity Credit Corporation to provide assistance—
(i) under paragraph (3) to eligible orchardists and nursery tree growers that planted trees for commercial purposes but lost the trees as a result of a natural disaster, as determined by the Secretary; and
(ii) under paragraph (3)(B) to eligible orchardists and nursery tree growers that have a production history for commercial purposes on planted or existing trees but lost the trees as a result of a natural disaster, as determined by the Secretary.
(B) Limitation
An eligible orchardist or nursery tree grower shall qualify for assistance under subparagraph (A) only if the tree mortality of the eligible orchardist or nursery tree grower, as a result of damaging weather or related condition, exceeds 15 percent (adjusted for normal mortality).
(3) Assistance
Subject to paragraphs (4) and (5), the assistance provided by the Secretary to eligible orchardists and nursery tree growers for losses described in paragraph (2) shall consist of—
(A)(i) reimbursement of 65 percent of the cost of replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or
(ii) at the option of the Secretary, sufficient seedlings to reestablish a stand; and
(B) reimbursement of 50 percent of the cost of pruning, removal, and other costs incurred by an eligible orchardist or nursery tree grower to salvage existing trees or, in the case of tree mortality, to prepare the land to replant trees as a result of damage or tree mortality due to a natural disaster, as determined by the Secretary, in excess of 15 percent damage or mortality (adjusted for normal tree damage and mortality).
(4) Limitations on assistance
(A) Definitions of legal entity and person
In this paragraph, the terms "legal entity" and "person" have the meaning given those terms in section 1001(a) of the Food Security Act of 1985 (
(B) Acres
The total quantity of acres planted to trees or tree seedlings for which a person or legal entity shall be entitled to receive payments under this subsection may not exceed 1,000 acres.
(5) Payment rate for beginning and veteran producers
Subject to paragraph (4), in the case of a beginning farmer or rancher or a veteran farmer or rancher (as those terms are defined in subsection (a) of
(f) Payment limitations
(1) Definitions of legal entity and person
In this subsection, the terms "legal entity" and "person" have the meaning given those terms in section 1001(a) of the Food Security Act of 1985 (
(2) Amount
The total amount of disaster assistance payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under subsection (c) may not exceed $125,000 for any crop year.
(3) Direct attribution
Subsections (e) and (f) of section 1001 of the Food Security Act of 1985 (
(
Editorial Notes
References in Text
The Food Security Act of 1985, referred to in subsec. (c)(3)(A)(ii), is
Amendments
2018—Subsec. (a)(1).
Subsec. (a)(1)(B)(iii) to (v).
Subsec. (a)(2) to (5).
Subsec. (b)(1).
Subsec. (b)(1)(B).
Subsec. (b)(1)(C).
Subsec. (b)(2).
Subsec. (b)(4).
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (d)(4).
Subsec. (e)(3).
Subsec. (e)(4)(B), (C).
Subsec. (e)(5).
Subsec. (f)(2).
Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment
SUBCHAPTER V—ADMINISTRATION
§9091. Administration generally
(a) Use of Commodity Credit Corporation
The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this chapter.
(b) Determinations by Secretary
A determination made by the Secretary under this chapter shall be final and conclusive.
(c) Regulations
(1) In general
Except as otherwise provided in this subsection, not later than 90 days after February 7, 2014, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this chapter and the amendments made by this chapter.
(2) Procedure
The promulgation of the regulations and administration of this chapter and the amendments made by this chapter, sections 11003 and 11017, title I of the Agriculture Improvement Act of 2018 and the amendments made by that title, and section 10109 of that Act shall be made without regard to—
(A) the notice and comment provisions of
(B)
(3) Congressional review of agency rulemaking
In carrying out this subsection, the Secretary shall use the authority provided under
(d) Adjustment authority related to trade agreements compliance
(1) Required determination; adjustment
If the Secretary determines that expenditures under this chapter that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in
(2) Congressional notification
Before making any adjustment under paragraph (1), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the determination made under that paragraph and the extent of the adjustment to be made.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original "this title", meaning title I of
Sections 11003 and 11017, referred to in subsec. (c)(2), mean sections 11003 and 11017 of
The Agriculture Improvement Act of 2018, referred to in subsec. (c)(2), is
Section 10109 of that Act, referred to in subsec. (c)(2), means section 10109 of
Amendments
2018—Subsec. (c)(2).
Subsec. (c)(2)(C).
§9092. Suspension of permanent price support authority
(a) Agricultural Adjustment Act of 1938
The following provisions of the Agricultural Adjustment Act of 1938 [
(1) Parts II through V of subtitle B of title III (
(2) In the case of upland cotton, section 377 (
(3) Subtitle D of title III (
(4) Title IV (
(b) Agricultural Act of 1949
The following provisions of the Agricultural Act of 1949 [
(1) Section 101 (
(2) Section 103(a) (
(3) Section 105 (
(4) Section 107 (
(5) Section 110 (
(6) Section 112 (
(7) Section 115 (
(8) Section 201 (
(9) Title III (
(10) Title IV (
(11) Title V (
(12) Title VI (
(c) Suspension of certain quota provisions
The joint resolution entitled "A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended", approved May 26, 1941 (
(
Editorial Notes
References in Text
The Agricultural Adjustment Act of 1938, referred to in subsec. (a), is act Feb. 16, 1938, ch. 30,
The Agricultural Act of 1949, referred to in subsec. (b), is act Oct. 31, 1949, ch. 792,
The joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, referred to in subsec. (c), is act May 26, 1941, ch. 133,
Amendments
2018—
Statutory Notes and Related Subsidiaries
Suspension of Permanent Price Support Authorities
"(A) subsections (a) and (b) of section 1602 of the Agricultural Act of 2014 (
"(i) shall not be applicable to the 2024 crops of covered commodities (as defined in section 1111 of that Act (
"(ii) shall not be applicable to milk through December 31, 2024; and
"(B) section 1602(c) of that Act (
§9093. Prevention of deceased individuals receiving payments under farm commodity programs
(a) Reconciliation
At least twice each year, the Secretary shall reconcile Social Security numbers of all individuals who receive payments under this chapter, whether directly or indirectly, with the Commissioner of Social Security to determine if the individuals are alive.
(b) Preclusion
The Secretary shall preclude the issuance of payments to, and on behalf of, deceased individuals that were not eligible for payments.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this title", meaning title I of
§9094. Assignment of payments
(a) In general
The provisions of
(b) Notice
The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this title", meaning title I of
§9095. Tracking of benefits
As soon as practicable after February 7, 2014, the Secretary may track the benefits provided, directly or indirectly, to individuals and entities under titles I and II and the amendments made by those titles.
(
Editorial Notes
References in Text
Titles I and II, referred to in text, are titles I and II of
§9096. Signature authority
(a) In general
In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of any person signing the document on behalf of the applicant or any other individual, entity, general partnership, or joint venture, or the documents relied upon were determined inadequate or invalid, unless the person signing the program document knowingly and willfully falsified the evidence of signature authority or a signature.
(b) Affirmation
(1) In general
Nothing in this section prohibits the Secretary from asking a proper party to affirm any document that otherwise would be considered approved under subsection (a).
(2) No retroactive effect
A denial of benefits based on a lack of affirmation under paragraph (1) shall not be retroactive with respect to third-party producers who were not the subject of the erroneous representation of authority, if the third-party producers—
(A) relied on the prior approval by the Secretary of the documents in good faith; and
(B) substantively complied with all program requirements.
(
Editorial Notes
References in Text
This title and title II, referred to in subsec. (a), are titles I and II of
§9097. Implementation
(a) Maintenance of base acres and payment yields
The Secretary shall maintain, for each covered commodity and upland cotton, base acres and payment yields on a farm established under
(b) Streamlining
In implementing this chapter and the amendments made by this title,1 the Secretary shall—
(1) continue to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements, to ensure that—
(A) a producer (or an agent of a producer) may report information, electronically (including geospatial data) or conventionally, to the Department of Agriculture, subject to the Secretary—
(i) establishing reasonable levels of tolerance that reflect the differences in accuracy between measures of common land units and geospatial data; and
(ii) ensuring that discrepancies that occur within the levels of tolerance established under clause (i) shall not be used to penalize a producer (or an agent of a producer) under any program administered by the Department of Agriculture;
(B) on the request of a producer (or an agent of a producer), the Department of Agriculture electronically shares with the producer (or agent) in real time and without cost to the producer (or agent) the common land unit data, related farm level data, conservation practices, and other information of the producer through a single Department of Agriculture-wide login;
(C) not later than September 30, 2020, the Administrator of the Risk Management Agency and the Administrator of the Farm Service Agency shall implement a consistent method for determining crop acreage, acreage yields, farm acreage, property descriptions, and other common informational requirements, including measures of common land units;
(D) except in the case of misrepresentation, fraud, or scheme and device, no crop insurance agent, approved insurance provider, or employee or contractor of a crop insurance agency or approved insurance provider bears responsibility or liability under the Acreage Crop Reporting and Streamlining Initiative (or any successor or similar initiative) for the eligibility of a producer for a program administered by the Department of Agriculture, not including a policy or plan of insurance offered under the Federal Crop Insurance Act (
(E) on request of a crop insurance agent or approved insurance provider required to deliver policies and plans of insurance under the Federal Crop Insurance Act (
(2) continue to improve coordination, information sharing, and administrative work among the Farm Service Agency, Risk Management Agency, Natural Resources Conservation Service, and other agencies, as determined by the Secretary;
(3) continue to take advantage of new technologies to enhance the efficiency and effectiveness of the delivery of Department of Agriculture programs to producers, including by developing and making publicly available data standards and security procedures to allow third-party providers to develop applications that use or feed data (including geospatial and precision agriculture data) into the datasets and analyses of the Department of Agriculture; and
(4) reduce administrative burdens on producers participating in price loss coverage or agriculture risk coverage by offering—
(A) those producers an option to remotely and electronically sign annual contracts for that coverage; and
(B) to the maximum extent practicable, an option to sign a multiyear contract for that coverage.
(c) Implementation
(1) In general
The Secretary shall make available to the Farm Service Agency to carry out this chapter $100,000,000.
(2) Additional funds
(A) Initial determination
If, by September 30, 2014, the Secretary notifies the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that the Farm Service Agency has made substantial progress toward implementing the requirements of subsection (b)(1), the Secretary shall make available to the Farm Service Agency to carry out this chapter $10,000,000 on October 1, 2014. The amount made available under this subparagraph is in addition to the amount made available under paragraph (1).
(B) Subsequent determination
If, by September 30, 2015, the Secretary notifies the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that the requirements of subsection (b)(1) have been fully implemented and those Committees provide written concurrence to the Secretary, the Secretary shall make available to the Farm Service Agency to carry out this chapter $10,000,000 on the date the written concurrence is provided or October 1, 2015, whichever is later. The amount made available under this subparagraph is in addition to the amount made available under paragraph (1) and any amount made available under subparagraph (A).
(3) Producer education
(A) In general
Of the funds made available under paragraph (1), the Secretary shall provide $3,000,000 to State extension services for the purpose of educating farmers and ranchers on the options made available under subchapters I, III, and IV of this chapter and under
(B) Web-based decision aids
(i) Use of qualified universities
Of the funds made available under paragraph (1), the Secretary shall use $3,000,000 to support qualified universities (or university-based organizations) that represent a diversity of regions and commodities (including dairy), possess expertise regarding the programs authorized by this Act, have a history in the development of decision aids and producer outreach initiatives regarding farm risk management programs, and are able to meet the deadline established pursuant to clause (ii) to develop web-based decision aids to assist producers in understanding available options described in subparagraph (A) and to train producers to use these decision aids.
(ii) Deadlines
To the maximum extent practicable, the Secretary shall—
(I) obligate the funds made available under clause (i) within 30 days after February 7, 2014; and
(II) require the products described in clause (i) to be made available to producers on the internet within a reasonable period of time, as determined by the Secretary, after the implementation of the first rule implementing programs required under subchapter I of this chapter.
(4) Agriculture Improvement Act of 2018
The Secretary shall make available to the Farm Service Agency to carry out title I of the Agriculture Improvement Act of 2018 and the amendments made by that title $15,500,000.
(d) Loan implementation
(1) In general
In any crop year in which an order is issued pursuant 2
(2) Repayment
In carrying out this subsection, the Secretary shall ensure that when a producer repays a loan at a rate equal to the loan rate plus interest in accordance with the repayment provisions of subtitles 3 B or C that the repayment amount shall include the portion of the loan amount provided under paragraph (1), except that this paragraph shall not affect or reduce marketing loan gains, loan deficiency payments, or forfeiture benefits provided for under subtitles 3 B or C and as supplemented in accordance with paragraph (1).
(e) Deobligation of unliquidated obligations
(1) In general
Subject to paragraph (3), any payment obligated or otherwise made available by the Secretary under this chapter on or after December 20, 2018, that is not disbursed to the recipient by the date that is 5 years after the date on which the payment is obligated or otherwise made available shall—
(A) be deobligated; and
(B) revert to the Treasury.
(2) Outstanding payments
(A) In general
Subject to paragraph (3), any payment obligated or otherwise made available by the Farm Service Agency (or any predecessor agency of the Department of Agriculture) under the laws described in subparagraph (B) before December 20, 2018, that is not disbursed by the date that is 5 years after the date on which the payment is obligated or otherwise made available shall—
(i) be deobligated; and
(ii) revert to the Treasury.
(B) Laws described
The laws referred to in subparagraph (A) are any of the following:
(i) This chapter.
(ii) Title I of the Food, Conservation, and Energy Act of 2008 (
(iii) Title I of the Farm Security and Rural Investment Act of 2002 (
(iv) The Agricultural Market Transition Act (
(v) Titles I through XI of the Food, Agriculture, Conservation, and Trade Act of 1990 (
(vi) Titles I through X of the Food Security Act of 1985 (
(vii) Titles I through XI of the Agriculture and Food Act of 1981 (
(viii) Titles I through X of the Food and Agriculture Act of 1977 (
(3) Waiver
The Secretary may delay the date of the deobligation and reversion under paragraph (1) or (2) of any payment—
(A) that is the subject of—
(i) ongoing administrative review or appeal;
(ii) litigation; or
(iii) the settlement of an estate; or
(B) for which the Secretary otherwise determines that the circumstances are such that the delay is equitable.
(f) Report
Not later than January 1, 2020, and each January 1 thereafter through January 1, 2023, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the tilled native sod acreage that was subject to a reduction in benefits under
(1) as of the date of submission of the report; and
(2) by State and county, relative to the total acres of cropland in the State or county.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (b), (c), and (e), was in the original "this title", meaning title I of
The amendments made by this title, referred to in subsec. (b), mean the amendments made by title I of
The Federal Crop Insurance Act, referred to in subsec. (b)(1)(D), (E), is subtitle A of title V of act Feb. 16, 1938, ch. 30,
Subchapter I of this chapter, referred to in subsec. (c)(3)(A), (B)(ii)(II), was in the original a reference to subtitle A of this title, meaning subtitle A (§1101 et seq.) of title I of
This Act, referred to in subsec. (c)(3)(B)(i), is
The Agriculture Improvement Act of 2018, referred to in subsec. (c)(4), is
Subtitles B and C, referred to in subsec. (d), are subtitles B (§1201 et seq.) and C (§1301) of title I of
Subtitle B or C of the Agriculture Improvement Act of 2018, referred to in subsec. (d)(1), probably means subtitle B (§1201 et seq.) or C (§1301) of title I of
The Food, Conservation, and Energy Act of 2008, referred to in subsec. (e)(2)(B)(ii), is
The Farm Security and Rural Investment Act of 2002, referred to in subsec. (e)(2)(B)(iii), is
The Agricultural Market Transition Act, referred to in subsec. (e)(2)(B)(iv), is title I of
The Food, Agriculture, Conservation, and Trade Act of 1990, referred to in subsec. (e)(2)(B)(v), is
The Food Security Act of 1985, referred to in subsec. (e)(2)(B)(vi), is
The Agriculture and Food Act of 1981, referred to in subsec. (e)(2)(B)(vii), is
The Food and Agriculture Act of 1977, referred to in subsec. (e)(2)(B)(viii), is
Amendments
2018—Subsec. (a).
Subsec. (b).
Subsec. (c)(4).
Subsec. (d)(1).
Subsec. (e).
Subsec. (f).
1 See References in Text note below.