S.Amdt. 1092

1. Rewrites section 1104 through section 1110

   Replaces

   Removes section 1104 through section 1110.

   Inserted: SEC. 1104. DEFINITIONS.

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

   Inserted: (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 section 1105(c)(3).

   Inserted: (2) 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 section 1105(c)(4).

   Inserted: (3) Agriculture risk coverage payment.--The term "agriculture risk coverage payment" means a payment under section 1105(c).

   Inserted: (4) Average individual yield.--The term "average individual yield" means the yield reported by a producer for purposes of subtitle A of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), to the maximum extent practicable.

   Inserted: (5) County coverage.--For the purposes of agriculture risk coverage under section 1105, the term "county coverage" means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average county yield described in subsection (c) of that section.

   Inserted: (6) Covered commodity.--

   Inserted: (A) In general.--The term "covered commodity" means wheat, corn, grain sorghum, barley, oats, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.

   Inserted: (B) Popcorn.--The Secretary--

   Inserted: (i) shall study the feasibility of including popcorn as a covered commodity by 2014; and

   Inserted: (ii) if the Secretary determines it to be feasible, shall designate popcorn as a covered commodity.

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   Inserted: (7) Eligible acres.--

   Inserted: (A) In general.--Except as provided in subparagraphs (B) through (D), the term "eligible acres" means all acres planted or prevented from being planted to all covered commodities on a farm in any crop year.

   Inserted: (B) Maximum.--Except as provided in subparagraph (C), the total quantity of eligible acres on a farm determined under subparagraph (A) shall not exceed the average total acres planted or prevented from being planted to covered commodities and upland cotton on the farm for the 2009 through 2012 crop years, as determined by the Secretary.

   Inserted: (C) Adjustment.--The Secretary shall provide for an adjustment, as appropriate, in the eligible acres for covered commodities for a farm if any of the following circumstances occurs:

   Inserted: (i) If a conservation reserve contract for a farm in a county entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) expires or is voluntarily terminated or cropland is released from coverage under a conservation reserve contract, the Secretary shall provide for an adjustment, as appropriate, in the eligible acres for the farm to a total quantity that is the higher of--

   Inserted: (I) the total base acreage for the farm, less any upland cotton base acreage, that was suspended during the conservation reserve contract; or

   Inserted: (II) the product obtained by multiplying--

   Inserted: (aa) the average proportion that--

   Inserted: (AA) the total number of acres planted to covered commodities and upland cotton in the county for crop years 2009 through 2012; bears to

   Inserted: (BB) the total number of all acres of covered commodities, grassland, and upland cotton acres in the county for the same crop years; by

   Inserted: (bb) the total acres for which coverage has expired, voluntarily terminated, or been released under the conservation reserve contract.

   Inserted: (ii) 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 section 1101(a)(1)(D) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(a)(1)(D)).

   Inserted: (iii) The producer has any acreage not cropped during the 2009 through 2012 crop years, but placed into an established rotation practice for the purposes of enriching land or conserving moisture for subsequent crop years, including summer fallow, as determined by the Secretary.

   Inserted: (D) Exclusion.--The term "eligible acres" does not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for payments under this subtitle, unless the crop was planted in an area approved for double cropping, as determined by the Secretary.

   Inserted: (8) Extra long staple cotton.--The term "extra long staple cotton" means cotton that--

   Inserted: (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

   Inserted: (B) is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.

   Inserted: (9) Individual coverage.--For purposes of agriculture risk coverage under section 1105, the term "individual coverage" means coverage determined using the total quantity of all acreage in a county of the covered commodity that is planted or prevented from being planted for harvest by a producer with the yield determined by the average individual yield of the producer described in subsection (c) of that section.

   Inserted: (10) Medium grain rice.--The term "medium grain rice" includes short grain rice.

   Inserted: (11) 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.

   Inserted: (12) Payment yield.--The term "payment yield" means the yield established for adverse market payments under section 1102 or 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912, 7952) as in effect on the date of enactment of this Act for a farm for a covered commodity.

   Inserted: (13) Producer.--

   Inserted: (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.

   Inserted: (B) Hybrid seed.--In determining whether a grower of hybrid seed is a producer, the Secretary shall--

   Inserted: (i) not take into consideration the existence of a hybrid seed contract; and

   Inserted: (ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this title.

   Inserted: (14) Pulse crop.--The term "pulse crop" means dry peas, lentils, small chickpeas, and large chickpeas.

   Inserted: (15) State.--The term "State" means--

   Inserted: (A) a State;

   Inserted: (B) the District of Columbia;

   Inserted: (C) the Commonwealth of Puerto Rico; and

   Inserted: (D) any other territory or possession of the United States.

   Inserted: (16) Reference price.--The term "reference price" means the price per bushel, pound, or hundredweight (or other appropriate unit) of a covered commodity used to determine the actual crop revenue under section 1105(c)(3).

   Inserted: (17) Transitional yield.--The term "transitional yield" has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).

   Inserted: (18) United states.--The term "United States", when used in a geographical sense, means all of the States.

   Inserted: SEC. 1105. AGRICULTURE RISK COVERAGE.

   Inserted: (a) Payments Required.--If the Secretary determines that payments are required under subsection (c), the Secretary shall make payments for each covered commodity available to producers in accordance with this section.

   Inserted: (b) Coverage Election.--

   Inserted: (1) In general.--For the period of crop years 2014 through 2018, the producers shall make a 1-time, irrevocable election to receive--

   Inserted: (A) individual coverage under this section, as determined by the Secretary; or

   Inserted: (B) in the case of a county with sufficient data (as determined by the Secretary), county coverage under this section.

   Inserted: (2) Effect of election.--The election made under paragraph (1) shall be binding on the producers making the election, regardless of covered commodities planted, and applicable to all acres under the operational control of the producers, in a manner that--

   Inserted: (A) acres brought under the operational control of the producers after the election are included; and

   Inserted: (B) acres no longer under the operational control of the producers after the election are no longer subject to the election of the producers but become subject to the election of the subsequent producers.

   Inserted: (3) Duties of the secretary.--The Secretary shall ensure that producers are precluded from taking any action, including reconstitution, transfer, or other similar action, that would have the effect of altering or reversing the election made under paragraph (1).

   Inserted: (c) Agriculture Risk Coverage.--

   Inserted: (1) Payments.--The Secretary shall make agriculture risk coverage payments available under this subsection for each of the 2014 through 2018 crop years if the Secretary determines that--

   Inserted: (A) the actual crop revenue for the crop year for the covered commodity; is less than

   Inserted: (B) the agriculture risk coverage guarantee for the crop year for the covered commodity.

   Inserted: (2) Time for payments.--If the Secretary determines under this subsection that agriculture risk coverage payments are required to be made for the covered commodity, beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity, the Secretary shall make the agriculture risk coverage payments.

   Inserted: (3) Actual crop revenue.--The amount of the actual crop revenue for a crop year of a covered commodity shall be equal to the product obtained by multiplying--

   Inserted: (A)(i) in the case of individual coverage, the actual average individual yield for the covered commodity, as determined by the Secretary; or

   Inserted: (ii) in the case of county coverage, the actual average yield for the county for the covered commodity, as determined by the Secretary; and

   Inserted: (B) the higher of--

   Inserted: (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

   Inserted: (ii) if applicable, the reference price for the covered commodity under paragraph (4).

   Inserted: (4) Reference price.--The reference price for a covered commodity shall be determined as follows:

   Inserted: (A) In general.--Subject to subparagraph (B), the reference price for a covered commodity shall be the product obtained by multiplying--

   Inserted: (i) 55 percent; by

   Inserted: (ii) the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.

   Inserted: (B) Alternative price for rice and peanuts.--In the case of long and medium grain rice and peanuts, the reference price shall be--

   Inserted: (i) in the case of long and medium grain rice, $13.00 per hundredweight; and

   Inserted: (ii) in the case of peanuts, $530.00 per ton.

   Inserted: (5) Agriculture risk coverage guarantee.--

   Inserted: (A) In general.--The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 88 percent of the benchmark revenue.

   Inserted: (B) Benchmark revenue.--

   Inserted: (i) In general.--The benchmark revenue shall be the product obtained by multiplying--

   Inserted: (I)(aa) in the case of individual coverage, subject to clause (ii), the average individual 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; or

   Inserted: (bb) in the case of county coverage, the average 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

   Inserted: (II) the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.

   Inserted: (ii) Use of transitional yields.--If the yield determined under clause (i)(I)(aa)--

   Inserted: (I) for the 2013 crop year or any prior crop year, is less than 60 percent of the applicable transitional yield, the Secretary shall use 60 percent of the applicable transitional yield for that crop year; and

   Inserted: (II) for the 2014 crop year and any subsequent crop year, is less than 65 percent of the applicable transitional yield, the Secretary shall use 65 percent of the applicable transitional yield for that crop year.

   Inserted: (6) Payment rate.--The payment rate for each covered commodity shall be equal to the lesser of--

   Inserted: (A) the amount that--

   Inserted: (i) the agriculture risk coverage guarantee for the covered commodity; exceeds

   Inserted: (ii) the actual crop revenue for the crop year of the covered commodity; or

   Inserted: (B) 10 percent of the benchmark revenue for the crop year of the covered commodity.

   Inserted: (7) Payment amount.--If agriculture risk coverage payments under this subsection are required to be paid for any of the 2014 through 2018 crop years of a covered commodity, the amount of the agriculture risk coverage payment for the crop year shall be equal to the product obtained by multiplying--

   Inserted: (A) the payment rate under paragraph (5); and

   Inserted: (B)(i) in the case of individual coverage the sum of--

   Inserted: (I) 65 percent of the planted eligible acres of the covered commodity; and

   Inserted: (II) 45 percent of the eligible acres that were prevented from being planted to the covered commodity; or

   Inserted: (ii) in the case of county coverage--

   Inserted: (I) 80 percent of the planted eligible acres of the covered commodity; and

   Inserted: (II) 45 percent of the eligible acres that were prevented from being planted to the covered commodity.

   Inserted: (8) Duties of the secretary.--In carrying out the program under this subsection, the Secretary shall--

   Inserted: (A) to the maximum extent practicable, use all available information and analysis to check for anomalies in the determination of payments under the program;

   Inserted: (B) to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;

   Inserted: (C) differentiate by type or class the national average price of--

   Inserted: (i) sunflower seeds;

   Inserted: (ii) barley, using malting barley values; and

   Inserted: (iii) wheat; and

   Inserted: (D) assign a yield for each acre planted or prevented from being planted 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 the Secretary cannot establish the yield as determined under paragraph (3)(A)(ii) or (5)(B)(i) or if the yield determined under paragraph (3)(A)(ii) or (5) is an unrepresentative average yield for the covered commodity as determined by the Secretary.

   Inserted: SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF PAYMENTS.

   Inserted: (a) Compliance With Certain Requirements.--

   Inserted: (1) Requirements.--Before the producers on a farm may receive agriculture risk coverage payments, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments--

   Inserted: (A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);

   Inserted: (B) to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);

   Inserted: (C) to use the land on the farm for an agricultural or conserving use in a quantity equal to the attributable eligible acres of the farm, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary; and

   Inserted: (D) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (C).

   Inserted: (2) Compliance.--The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).

   Inserted: (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.

   Inserted: (b) Transfer or Change of Interest in Farm.--

   Inserted: (1) Termination.--

   Inserted: (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 agriculture risk coverage payments are made shall result in the termination of the payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).

   Inserted: (B) Effective date.--The termination shall take effect on the date determined by the Secretary.

   Inserted: (2) Exception.--If a producer entitled to an agriculture risk coverage payment 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.

   Inserted: (c) Reports.--

   Inserted: (1) Acreage reports.--As a condition on the receipt of any benefits under this subtitle or subtitle B, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.

   Inserted: (2) Production reports.--As a condition on the receipt of any benefits under section 1105, the Secretary shall require producers on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on the farm.

   Inserted: (3) Penalties.--No penalty with respect to benefits under this subtitle or subtitle B shall be assessed against the producers on a farm for an inaccurate acreage or production report unless the producers on the farm knowingly and willfully falsified the acreage or production report.

   Inserted: (4) Data reporting.--To the maximum extent practicable, the Secretary shall use data reported by the producer pursuant to requirements under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) to meet the obligations described in paragraphs (1) and (2), without additional submissions to the Department.

   Inserted: (d) Tenants and Sharecroppers.--In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

   Inserted: (e) Sharing of Payments.--The Secretary shall provide for the sharing of agriculture risk coverage payments among the producers on a farm on a fair and equitable basis.

   Inserted: SEC. 1107. PERIOD OF EFFECTIVENESS.

   Inserted: Sections 1104 through 1106 shall be effective beginning with the 2014 crop year of each covered commodity through the 2018 crop year.

   Original wording

   Strike sections 1104 through 1110 and insert the following:

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As printed