113 S746 IS: To amend the Food, Conservation, and Energy Act of 2008 to establish a market-driven inventory system.
U.S. Senate
2013-04-17
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Market-driven inventory
system
(a)Subtitle B of title I
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8731 et seq.) is
amended by adding at the end the following:
1211.Market-driven
inventory system
(a)In
this section:
(1)The term inventory cap means the market
commodity-specific limitations on participation in the program described in
subsection (b)(3).
(2)The term market commodity means corn,
oats, barley, grain sorghum, wheat, and soybeans.
(3)The
term program means the market-driven inventory system program
established in accordance with this section.
(4)The term storage period means, for a market
commodity enrolled in the program, the period that—
(A)begins on the
date of enrollment of the market commodity in the program; and
(B)ends on the date
on which the Secretary authorizes loan repayment and release under subsection
(d).
(b)
(1)Subject to paragraph (3), for each of the 2014 through
2018 crops of each market commodity, the Secretary shall make available
recourse loans in accordance with this section to producers on a farm that
elect to participate in the program for 1 or more market commodities.
(2)
(A)Enrollment in the program shall be voluntary and
considered on a rolling basis.
(B)
(i)The Secretary may implement enrollment restrictions if
the market prices of a market commodity are close to the recourse loan rate or
the release price described in subsection (d)(2).
(ii)Any enrollment restrictions implemented under clause
(i) for a market commodity shall end as soon as the Secretary determines that
the 1-month average of the market commodity is below the recourse loan rate for
that market commodity.
(3)Participation in the program for corn, wheat, and soybeans
shall be limited to not more than the following:
(A)Corn,
3,000,000,000 bushels.
(B)Oats, 20,000,000
bushels.
(C)Barley,
40,000,000 bushels.
(D)Grain sorghum,
40,000,000 bushels.
(E)Wheat,
800,000,000 bushels.
(F)Soybeans,
400,000,000 bushels.
(c)
(1)As a condition of participation, for each market
commodity that the producers on a farm enroll in the program, the producers on
the farm shall, throughout the storage period—
(A)store the market
commodity;
(B)maintain the
market commodity in proper condition, as determined by the Secretary;
and
(C)not sell or
otherwise release into the market the market commodity.
(2)During
the storage period—
(A)title to the
market commodity shall remain with the producers on the farm, subject to the
conditions on participation described in paragraph (1); and
(B)the Secretary
shall have a first lien on the market commodity for which a recourse loan under
this section is received.
(3)
(A)During the storage period, the Secretary shall make
storage payments to the producers on the farm at a rate of $0.40 per bushel of
market commodity per crop year.
(B)The
Secretary shall terminate the making of storage payments for a market commodity
to producers on a farm on the date on which the release price for the market
commodity is triggered in accordance with subsection (d).
(d)Loan repayment
and release
(1)Subject to paragraph (4), the Secretary shall authorize
loan repayment and release for a market commodity on the date on which the
release price for that market commodity is triggered.
(2)The release price for a market commodity shall be equal to
160 percent of the applicable recourse loan rate described in subsection
(e).
(3)Subject to paragraph (4), once the Secretary has
authorized loan repayment and release for a market commodity, the producers on
a farm may—
(A)sell or otherwise
release into the market the market commodity; or
(B)continue to store
the market commodity, but without receiving additional storage payments for the
market commodity.
(4)
(A)Regardless of whether the inventory cap for a market
commodity has been reached, if the Secretary determines, based on available
information, that the total quantity of the market commodity stored is so great
that release of all of the stored market commodity into the market would
depress market prices below the release level, the Secretary may establish a
maximum release quantity to limit the sale and release of the stored market
commodity.
(B)In
the case of a partial release described in subparagraph (A)—
(i)the producers on
a farm that first enrolled in the program shall be eligible first to sell or
otherwise release into the market the stored market commodity; and
(ii)the producers on
a farm that do not have the option of selling or otherwise releasing into the
market the stored market commodity shall continue to be eligible to receive
storage payments for the market commodity.
(e)For purposes of each of the 2014 through 2018 crop years,
the recourse loan rate for a market commodity under this section shall be equal
to the following:
(1)Corn, $3.50 per
bushel.
(2)Oats, $2.49 per
bushel.
(3)Barley, $3.50 per
bushel.
(4)Grain sorghum,
$3.50 per bushel.
(5)Wheat, $5.28 per
bushel.
(6)Soybeans, $8.97
per bushel.
(f)
(1)If the inventory cap for a market commodity is reached
and the market price of the market commodity is below the recourse loan rate
for the market commodity, the Secretary may establish a set-aside program under
which producers on a farm may remove acres from production for the following
crop year.
(2)To
be eligible to enroll acres in the set-aside program under paragraph (1), the
producers on a farm shall be required to have produced the applicable market
commodity during at least 1 of the last 2 crop years, as determined by the
Secretary.
(3)
(A)
(i)As a condition on participation in the set-aside program,
producers on a farm shall be required to maintain an approved cover crop on all
enrolled acreage.
(ii)Producers on a farm may plant any crop on acreage not
enrolled in the set-aside program.
(B)If the Secretary establishes a set-aside program under
paragraph (1), the Secretary shall determine, at the discretion of the
Secretary—
(i)the amount of the
payment to be made to producers that elect to participate in the set-aside
program;
(ii)the percentage
of the total acreage planted to the market commodity that the producers are
required to remove from production as a condition of participation; and
(iii)the extent to
which grazing and other noncommercial uses of the land enrolled in the
set-aside program shall be
permitted.
.
(b)
(1)Section 1001 of
the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702) is
amended—
(A)in paragraph
(4)—
(i)by
striking wheat, corn, grain sorghum, barley, oats
; and
(ii)by
striking soybeans
; and
(B)in paragraph
(8)—
(i)by
striking wheat, corn, grain sorghum, barley, oats
; and
(ii)by striking
soybeans
.
(2)Section 1103(b)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713) is
amended—
(A)by striking
paragraphs (1), (2), (3), (4), (5), and (9); and
(B)by redesignating
paragraphs (6), (7), (8), and (10) as paragraphs (1), (2), (3), and (4),
respectively.
(3)Section
1104(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8714(c)(3)) is amended—
(A)by striking
subparagraphs (A), (B), (C), (D), (E), and (I); and
(B)by redesignating
subparagraphs (F), (G), and (H) and (J) through (N) as subparagraphs (A), (B),
and (C) and (D) through (H), respectively.
(4)Section 1202(c)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8732(c)) is
amended—
(A)by striking
paragraphs (1), (2), (3), (4), (5), and (10); and
(B)by redesignating
paragraphs (6) through (9) and (11) through (19) as paragraphs (1) through (4)
and (5) through (13), respectively.
(c)The
amendments made by this section apply beginning with the 2014 crop of a market
commodity (as defined in section 1211(a) of the Food, Conservation, and Energy
Act of 2008 (as added by subsection (a))).