[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1872 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1872

  To amend the Farm Security and Rural Investment Act of 2002 to make 
 revenue counter-cyclical payments available to producers on a farm to 
 ensure that the producers at least receive a minimum level of revenue 
  from the production of a covered commodity, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2007

 Mr. Durbin (for himself and Mr. Brown) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To amend the Farm Security and Rural Investment Act of 2002 to make 
 revenue counter-cyclical payments available to producers on a farm to 
 ensure that the producers at least receive a minimum level of revenue 
  from the production of a covered commodity, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farm Safety Net Improvement Act of 
2007''.

SEC. 2. REVENUE COUNTER-CYCLICAL PROGRAM.

    Section 1104 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 7914) is amended to read as follows:

``SEC. 1104. REVENUE COUNTER-CYCLICAL PROGRAM.

    ``(a) In General.--For each of the 2008 through 2012 crop years for 
each covered commodity, the Secretary shall make revenue counter-
cyclical payments available to producers on a farm in a State for a 
crop year for a covered commodity if--
            ``(1) the actual State revenue from the crop year for the 
        covered commodity in the State determined under subsection (b); 
        is less than
            ``(2) the revenue counter-cyclical program guarantee for 
        the crop year for the covered commodity in the State determined 
        under subsection (c).
    ``(b) Actual State Revenue.--
            ``(1) In general.--For purposes of subsection (a)(1), the 
        amount of the actual State revenue for a crop year of a covered 
        commodity shall equal the product obtained by multiplying--
                    ``(A) the actual State yield for each planted acre 
                for the crop year for the covered commodity determined 
                under paragraph (2); and
                    ``(B) the revenue counter-cyclical program harvest 
                price for the crop year for the covered commodity 
                determined under paragraph (3).
            ``(2) Actual state yield.--For purposes of paragraph (1)(A) 
        and subsection (c)(1)(A), the actual State yield for each 
        planted acre for a crop year for a covered commodity in a State 
        shall equal--
                    ``(A) the quantity of the covered commodity that is 
                produced in the State, and reported to the Secretary, 
                during the crop year; divided by
                    ``(B) the number of acres that are planted or 
                considered planted to the covered commodity in the 
                State, and reported to the Secretary, during the crop 
                year.
            ``(3) Revenue counter-cyclical program harvest price.--For 
        purposes of paragraph (1)(B), the revenue counter-cyclical 
        program harvest price for a crop year for a covered commodity 
        shall equal the harvest price that is used to calculate revenue 
        under revenue coverage plans that are offered for the crop year 
        for the covered commodity under the Federal Crop Insurance Act 
        (7 U.S.C. 1501 et seq.).
    ``(c) Revenue Counter-Cyclical Program Guarantee.--
            ``(1) In general.--The revenue counter-cyclical program 
        guarantee for a crop year for a covered commodity in a State 
        shall equal 90 percent of the product obtained by multiplying--
                    ``(A) the expected State yield for each planted 
                acre for the crop year for the covered commodity in a 
                State determined under paragraph (2); and
                    ``(B) the revenue counter-cyclical program pre-
                planting price for the crop year for the covered 
                commodity determined under paragraph (3).
            ``(2) Expected state yield.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(A), subject to subparagraph (B), the expected State 
                yield for each planted acre for a crop year for a 
                covered commodity in a State shall equal the projected 
                yield for the crop year for the covered commodity in 
                the State, based on a linear regression trend of the 
                yield per acre planted to the covered commodity in the 
                State during the 1980 through 2006 period using 
                National Agricultural Statistics Service data.
                    ``(B) Assigned yield.--If the Secretary cannot 
                establish the expected State yield for each planted 
                acre for a crop year for a covered commodity in a State 
                in accordance with subparagraph (A), the Secretary 
                shall assign an expected State yield for each planted 
                acre for the crop year for the covered commodity in the 
                State on the basis of expected State yields for planted 
                acres for the crop year for the covered commodity in 
                similar States.
            ``(3) Revenue counter-cyclical program pre-planting 
        price.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(B), subject to subparagraph (B), the revenue 
                counter-cyclical program pre-planting price for a crop 
                year for a covered commodity shall equal the average 
                price that is used to determine crop insurance 
                guarantees for the crop year for the covered commodity 
                under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
                seq.) during the crop year and the preceding 2 crop 
                years.
                    ``(B) Minimum and maximum price.--The revenue 
                counter-cyclical program pre-planting price for a crop 
                year for a covered commodity under subparagraph (A) 
                shall not decrease or increase more than 15 percent 
                from the pre-planting price for the preceding year.
    ``(d) Payment Amount.--If revenue counter-cyclical payments are 
required to be paid for any of the 2008 through 2012 crop years of a 
covered commodity, the amount of the revenue counter-cyclical payment 
to be paid to the producers on the farm for the crop year under this 
section shall be equal to the product obtained by multiplying--
            ``(1) the difference between--
                    ``(A) the revenue counter-cyclical program 
                guarantee for the crop year for the covered commodity 
                in the State determined under subsection (c); and
                    ``(B) the actual State revenue from the crop year 
                for the covered commodity in the State determined under 
                subsection (b);
            ``(2) the acreage planted or considered planted to the 
        covered commodity for harvest on the farm in the crop year;
            ``(3) the quotient obtained by dividing--
                    ``(A) the actual production history on the farm; by
                    ``(B) the expected State yield for the crop year, 
                as determined under subsection (c)(2); and
            ``(4) 90 percent.
    ``(e) Recourse Loans.--For each of the 2008 through 2012 crops of a 
covered commodity, the Secretary shall make available to producers on a 
farm recourse loans, as determined by the Secretary, on any production 
of the covered commodity.''.

SEC. 3. IMPACT ON CROP INSURANCE PROGRAMS.

    (a) Rating.--
            (1) In general.--The Secretary of Agriculture, acting 
        through the Administrator of the Risk Management Agency shall 
        carry out a study to identify such actions as are necessary to 
        ensure, to the maximum extent practicable, that all policies 
        and plans of insurance under the Federal Crop Insurance Act (7 
        U.S.C. 1501 et seq.) are properly rated to take into account a 
        rebalancing of risk as a result of the enactment of this Act 
        and the amendments made by this Act.
            (2) Implementation.--Not later than 180 days after the date 
        of enactment of this Act, the Secretary shall carry out the 
        actions identified under paragraph (1).
    (b) Prevention of Duplication.--The Administrator of the Risk 
Management Agency and Administrator of the Farm Service Agency shall 
work together to ensure, to the maximum extent practicable, that 
producers on a farm are not compensated through the revenue counter-
cyclical program established under section 1104 of the Farm Security 
and Rural Investment Act of 2002 (as amended by section 2) and under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the same 
loss, including by reducing crop insurance indemnity payments by the 
amount of the revenue counter-cyclical payments.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Section 166(a) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7286(a)) is amended by striking ``B and''.
    (b) Section 1001 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7901) is amended--
            (1) by striking paragraphs (3), (6), (8), and (15);
            (2) by redesignating paragraphs (4), (5), (7), (9), (10), 
        (11), (12), (13), (14), and (16) as paragraphs (3), (4), (5), 
        (6), (7), (8), (9), (11), (12), and (13), respectively;
            (3) in paragraph (7) (as so redesignated), by striking 
        ``and counter-cyclical payments'';
            (4) in paragraph (8) (as so redesignated)--
                    (A) in subparagraph (A), by striking ``(A) In 
                general.--''; and
                    (B) by striking subparagraph (B);
            (5) by inserting after paragraph (9) (as so redesignated) 
        the following:
            ``(10) Revenue counter-cyclical payments.--The term 
        `revenue counter-cyclical payments' means a payment made to 
        producers on a farm under section 1104.''.
    (c) The subtitle heading of subtitle A of title I of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. prec. 7911) is 
amended by inserting ``Revenue'' before ``Counter-Cyclical''.
    (d) Section 1101 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7911) is amended by striking ``and counter-cyclical 
payments'' each place it appears in subsections (a)(1) and (e)(2).
    (e) Section 1102 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7912) is amended--
            (1) in subsection (a), by striking ``and counter-cyclical 
        payments''; and
            (2) by striking subsection (e).
    (f) Section 1103 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7913) is amended by striking ``2007'' each place it 
appears and inserting ``2012''.
    (g) Section 1105 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7915) is amended--
            (1) in the section heading, by inserting ``revenue'' before 
        ``counter-cyclical''; and
            (2) by inserting ``revenue'' before ``counter-cyclical'' 
        each place it appears.
    (h) Subtitle B of title I of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7931 et seq.) is repealed.
    (i) Subtitles C through F of title I of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7951 et seq.) are amended by striking 
``2007'' each place it appears and inserting ``2012''.
    (j) Section 1307(a)(6) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7957)(a)(6)) is amended in the first sentence by 
striking ``2006'' and inserting ``2011''.
    (k) Section 1601(d)(1) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7991(d)(1)) is amended by striking ``and counter-
cyclical payments under subtitle A and subtitle C'' and inserting 
``under subtitle A''.
    (l) Section 1605 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7993) is repealed.
    (m) Section 1615(2) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7998(2)) is amended--
            (1) in subparagraph (B), by striking ``Loan'' and inserting 
        ``Covered''; and
            (2) in subparagraph (C), by striking ``loan'' and inserting 
        ``covered''.
    (n) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
is amended--
            (1) in subsection (c)(1), by inserting ``revenue'' before 
        ``counter-cyclical''; and
            (2) in subsection (d)--
                    (A) by striking paragraph (1); and
                    (B) in paragraph (2)--
                            (i) by striking ``(2) Other commodities.--
                        '';
                            (ii) in subparagraph (A), by striking ``, 
                        wool, mohair, or honey under subtitle B or'' 
                        and inserting ``under subtitle'';
                            (iii) in subparagraph (B), by striking ``, 
                        peanuts, wool, mohair, and honey under those 
                        subtitles'' and inserting ``under that 
                        subtitle''; and
                            (iv) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively, 
                        and indenting appropriately.
                                 <all>