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,