Short title

This Act may be cited as the

Agricultural Emergency Relief Act of 2023

Definitions

In this Act: (1)

Average adjusted gross farm income

The term average adjusted gross farm income, with respect to a producer, means the portion of the average adjusted gross income of the producer that is derived from farming, ranching, or forestry operations. (2)

Average adjusted gross income

The term average adjusted gross income, with respect to a producer, means the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the producer, as averaged over the 3 taxable years preceding the most recently completed taxable year. (3)

Disaster

(A)

In general

The term disaster includes— (i)a drought; (ii)a wildfire; (iii)a hurricane; (iv)a flood; (v)a derecho; (vi)excessive heat; (vii)excessive moisture; (viii)a winter storm; and (ix)a freeze event (including a polar vortex). (B)

Determination of drought

For purposes of subparagraph (A)(i), a county shall be considered to have experienced a drought if any area within the county was rated by the U.S. Drought Monitor as experiencing— (i)a D2-level drought (commonly known as severe drought) for 8 or more consecutive weeks; or (ii)a D3-level drought (commonly known as extreme drought), or a higher level of drought intensity, during the applicable calendar year. (4)

Federal Crop Insurance

The term Federal Crop Insurance means any crop insurance program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). (5)

Noninsured Crop Disaster Assistance Program

The term Noninsured Crop Disaster Assistance Program means the program under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). (6)

Producer

(A)

In general

The term producer means an individual or entity that is eligible to receive assistance under a disaster assistance program administered by the Farm Service Agency. (B)

Exclusions

The term producer does not include— (i)a joint venture; or (ii)a general partnership. (7)

Qualified loss

(A)

In general

The term qualified loss means a loss in a crop, trees, bushes, or vines incurred by a producer as a consequence of a disaster. (B)

Inclusions

The term qualified loss includes— (i)a loss incurred by a producer as a result of being prevented from planting a crop due to a disaster; (ii)a loss in the quality of a crop, trees, bushes, or vines due to a disaster; and (iii)a loss in the quality of a crop (including wine grapes), trees, bushes, or vines due to smoke exposure from a wildfire. (8)

Secretary

The term Secretary means the Secretary of Agriculture.

Emergency relief program

(a)

Establishment

The Secretary shall establish a program under which the Secretary shall provide payments during each crop year to producers that experienced a qualified loss during the crop year. (b)

Application

(1)

In general

To be eligible to receive a payment under this section for a crop year, a producer shall submit to the Secretary an application, at such time, in such manner, and containing such information as the Secretary may require, including a description of each qualified loss incurred by the producer during the crop year. (2)

Approval

The Secretary shall approve an application submitted by a producer under paragraph (1) if the application demonstrates to the satisfaction of the Secretary that the producer has incurred a qualified loss during the applicable crop year. (c)

Provision of payments

(1)

In general

The Secretary shall provide to each producer the application of whom is approved under subsection (b)(2) a payment for the applicable crop year, in accordance with subsection (d). (2)

Requirement to purchase insurance

As a condition of receiving a payment under this section, a producer shall purchase, for each of the 2 succeeding crop years— (A)Federal Crop Insurance, if available; or (B)if Federal Crop Insurance is not available, coverage under the Noninsured Crop Disaster Assistance Program. (d)

Amount of payments

(1)

In general

Subject to subsection (e), the amount of a payment provided to a producer under subsection (c)(1) shall be determined in accordance with— (A)to the maximum extent practicable, a calculation based on data relating to the producer for the applicable crop year that were previously submitted or known to the Secretary, including— (i)any indemnity of the producer under Federal Crop Insurance or payment received by the producer under the Noninsured Crop Disaster Assistance Program; (ii)the level of coverage of the producer under— (I)Federal Crop Insurance; or (II)the Noninsured Crop Disaster Assistance Program; and (iii)an appropriate percentage factor, to be established by the Secretary, subject to the condition that the factor shall be not more than 90 percent; or (B)for a producer that did not purchase coverage under Federal Crop Insurance or the Noninsured Crop Disaster Assistance Program, a calculation based on the revenue of the producer for the applicable crop year, as described in paragraph (2). (2)

Revenue-based calculation

(A)

Definitions

In this paragraph: (i)

Allowable gross revenue

The term allowable gross revenue, with respect to a producer, means the reported revenue of the operations of the producer during a crop year, including from— (I)sales of eligible crops, as identified by the Secretary; or (II)sales resulting from value added in post-production activities. (ii)

Benchmark year

The term benchmark year means a crop year in which a producer did not experience a qualified loss. (iii)

Disaster year

The term disaster year means a crop year in which a producer experiences a qualified loss. (B)

Factors for consideration

Subject to subparagraph (C), the revenue-based calculation referred to in paragraph (1)(B) shall take into account— (i)the allowable gross revenue of the applicable producer during a benchmark year; (ii)the allowable gross revenue of the applicable producer during the disaster year for which the payment is provided under this section; (iii)the percentage of the allowable gross revenue described in clause (ii) derived from sales of specialty crops and high-value crops; and (iv)an appropriate percentage factor, to be established by the Secretary, subject to the condition that the factor shall be not more than 70 percent. (C)

Vertical integration for producers of wine grapes

For a producer of wine grapes that uses not less than 75 percent of the grapes to produce wine at a facility owned by the producer, a payment provided under this section shall be calculated based on the market rate for wine grapes at the time of calculation, in lieu of the revenue of the producer. (e)

Limitations

For each crop year— (1)a producer the average adjusted gross farm income of whom is less than 75 percent may receive payments under this section in an amount equal to not more than— (A)$125,000 for the specialty crops and high-value crops of the producer, as determined by the Secretary; and (B)$125,000 for the crops of the producer not described in subparagraph (A); (2)a producer the average adjusted gross farm income of whom is 75 percent or more may receive payments under this section in an amount equal to not more than— (A)$900,000 for the specialty crops and high-value crops of the producer, as determined by the Secretary; and (B)$250,000 for the crops of the producer not described in subparagraph (A); and (3)the total amount of all payments provided to a producer under this section shall be not more than, as applicable— (A)an amount equal to 90 percent of the qualified losses of the producer during the crop year, including any assistance provided under— (i)Federal Crop Insurance; or (ii)the Noninsured Crop Disaster Assistance Program; or (B)an amount equal to 70 percent of the qualified losses of the producer during the crop year, if the producer did not— (i)obtain a policy or plan of insurance under Federal Crop Insurance for the crops, trees, bushes, or vines incurring the qualified losses; or (ii)file any required paperwork or pay any service fee under the Noninsured Crop Disaster Assistance Program by the applicable State filing deadline for a noninsurable commodity incurring the qualified losses. (f)

Timing

The Secretary shall administer the program under this section simultaneously for— (1)producers submitting applications using indemnity-based calculations, as described in subsection (d)(1)(A); and (2)producers submitting applications using revenue-based calculations, as described in subsection (d)(1)(B).

Authorization of appropriations

(a)

In general

There are authorized to be appropriated to the Secretary such sums as are necessary to carry out this Act for each of fiscal years 2023 through 2028. (b)

Administrative costs

Of the amounts made available under subsection (a) for each fiscal year, the Secretary may use not more than 1 percent to pay the administrative costs of the Secretary.