1.Short title; table of
contents
(a)This Act may be cited
as the Revenue Loss Assistance and
Crop Insurance Enhancement Act of 2012
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Revenue loss assistance program and counter-cyclical
program.
Sec. 3. Marketing assistance loans and loan deficiency
payments.
Sec. 4. Extension of expiring authorities.
Sec. 5. Repeal of direct payment and ACRE programs.
Sec. 6. Supplemental coverage option.
Sec. 7. Catastrophic risk protection premium
reduction.
Sec. 8. Adjustment in actual production history to establish
insurable yields.
Sec. 9. Supplemental agricultural disaster
assistance.
Sec. 10. Budgetary effects.
Sec. 11. Effective date.
2.Revenue loss
assistance program and counter-cyclical program
(a)Title I of the Food, Conservation, and Energy Act of 2008
is amended—
(1)by striking
section 1001 (7 U.S.C. 8702);
(2)by striking
subtitles A and C (7 U.S.C. 8711 et seq.); and
(3)by inserting
before subtitle B (7 U.S.C. 8731 et seq.) the following:
1001.In this title:
(1)The term base acres, with respect to a covered
commodity on a farm, means the number of acres established under section 1101
or 1302 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7911,
7952) or section 1101, 1108, or 1302 of this Act, as in effect on September 30,
2012, subject to any adjustment under section 1101.
(2)The term counter-cyclical payment means a
payment made to producers on a farm under section 1104.
(3)Counter-cyclical
payment acresThe term counter-cyclical payment
acres means 75 percent of the base acres of a covered commodity on a
farm for which counter-cyclical payments are made.
(4)The term covered commodity means wheat,
corn, grain sorghum, barley, oats, upland cotton, long grain rice, medium grain
rice, pulse crops, peanuts, soybeans, and other oilseeds.
(5)The term effective price, with respect to a
covered commodity for a crop year, means the price calculated by the Secretary
under section 1104 to determine whether counter-cyclical payments are required
to be made for that crop year.
(6)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.
(7)The term loan commodity means wheat, corn,
grain sorghum, barley, oats, upland cotton, extra long staple cotton, long
grain rice, medium grain rice, soybeans, other oilseeds, graded wool, nongraded
wool, mohair, honey, dry peas, lentils, peanuts, small chickpeas, and large
chickpeas.
(8)The term medium grain rice includes short grain
rice.
(9)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.
(10)The term payment yield means the yield
established for counter-cyclical payments under section 1102 or 1302 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7912, 7952), section
1102 of 1302 of this Act, as in effect on September 30, 2012, or section 1102
or 1106, or for revenue loss assistance program payments under section 1103,
for a farm for a covered commodity.
(11)
(A)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)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 title.
(12)The term pulse crop means dry peas, lentils,
small chickpeas, and large chickpeas.
(13)Revenue loss
assistance program paymentThe term revenue loss assistance
program payment means a payment made to producers on a farm under
section 1103.
(14)The
term State means—
(A)a State;
(B)the District of
Columbia; and
(C)the Commonwealth
of Puerto Rico.
(15)The term target price means the price per
bushel, pound, or hundredweight (or other appropriate unit) of a covered
commodity used to determine the payment rate for counter-cyclical
payments.
(16)The term United States, when used in a
geographical sense, means all of the States.
(17)United States
premium factorThe 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.
ARevenue loss
assistance program and counter-Cyclical program
1101.
(a)
(1)The Secretary shall provide for an adjustment, as
appropriate, in the base acres for covered commodities for a farm whenever any
of the following circumstances occurs:
(A)A conservation
reserve contract entered into under section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) with respect to the farm expires or is voluntarily
terminated, or was terminated or expired during the period beginning on October
1, 2007, and ending on the date of enactment of this Act.
(B)Cropland is
released from coverage under a conservation reserve contract by the Secretary,
or was released during the period beginning on October 1, 2007, and ending on
the date of enactment of this Act.
(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 section 1101(a)(2) of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7911(a)(2)).
(2)Special
conservation reserve acreage payment rulesFor 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 either revenue loss
assistance program payments and counter-cyclical payments with respect to the
acreage added to the farm under this subsection or a prorated payment under the
conservation reserve contract, but not both.
(b)Prevention of
excess base acres
(1)If the sum of the base acres for a farm, together with
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 for the farm so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual cropland acreage of the
farm.
(2)For purposes of paragraph (1), the Secretary shall
include the following:
(A)Any acreage on
the farm enrolled in the conservation reserve program or wetlands reserve
program under chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.).
(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 section
1101(a)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
7911(a)(2)).
(3)The Secretary shall give the owner of the farm the
opportunity to select the base acres for a covered commodity for the farm
against which the reduction required by paragraph (1) will be made.
(4)Exception for
double-cropped acreageIn applying paragraph (1), the Secretary
shall make an exception in the case of double cropping, as determined by the
Secretary.
(c)
(1)Reduction at
option of owner
(A)The owner of a farm may reduce, at any time, the base
acres for any covered commodity for the farm.
(B)A reduction under subparagraph (A) shall be permanent
and made in a manner prescribed by the Secretary.
(2)Required action
by Secretary
(A)The Secretary shall proportionately reduce base acres on
a farm for covered commodities 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)The
Secretary shall establish procedures to identify land described in subparagraph
(A).
(3)Each year, to ensure, to the maximum extent practicable,
that payments are received only by producers, the Secretary shall submit to
Congress a report that describes the results of the actions taken under
paragraph (2).
(d)Treatment of
farms with limited base acres
(1)Except as provided in paragraph (2) and notwithstanding
any other provision of this title, a producer on a farm may not receive revenue
loss assistance program payments or counter-cyclical payments if the sum of the
base acres of the farm is 10 acres or less, as determined by the
Secretary.
(2)Paragraph
(1) shall not apply to a farm owned or operated by—
(A)a socially
disadvantaged farmer or rancher (as defined in section 355(e) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e))); or
(B)a limited
resource farmer or rancher, as defined by the Secretary.
(3)Data collection
and publicationThe Secretary shall—
(A)collect and
publish segregated data and survey information about the farm profiles,
utilization of land, and crop production; and
(B)perform an
evaluation on the supply and price of fruits and vegetables based on the
effects of suspension of base acres under this section.
1102.For the purpose of
making revenue loss assistance program payments and counter-cyclical payments
under this subtitle, the Secretary shall provide for the establishment of a
payment yield for each farm for any designated oilseed or eligible pulse crop
for which a payment yield was not established under section 1102 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7912) or this section as in
effect on September 30, 2012.
1103.Revenue loss
assistance program
(a)In
this section:
(1)The
term farm means, in relation to an eligible producer on a farm,
the sum of all acreage in all counties of the covered commodity that is planted
or intended to be planted for harvest by the eligible producer.
(2)Noninsured crop
disaster assistance programThe term noninsured crop
disaster assistance program means the program established by section 196
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333).
(3)Socially
disadvantaged farmer or rancherThe term socially
disadvantaged farmer or rancher has the meaning given the term in
section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2003(e)).
(b)Beginning with the 2013 crop year of each covered
commodity, the Secretary shall make revenue loss assistance payments to
eligible producers on farms in accordance with this section.
(c)The revenue loss assistance program under this section
shall cover losses suffered by a producer with respect to covered commodities
on a farm in excess of 12 percent and up to a maximum of 25 percent of the
historic revenue of the producer.
(d)A
producer on a farm shall be eligible for assistance under this section—
(1)in the case of
each insurable covered commodity produced on the farm (excluding grazing land),
if the producer obtains a policy or plan of insurance under subtitle A of the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance
pilot program under that subtitle);
(2)in the case of
each noninsurable covered commodity produced on the farm, if the producer files
the required paperwork, and pays the administrative fee by the applicable State
filing deadline, for the noninsured crop disaster assistance program; or
(3)if the producer
is a socially disadvantaged farmer or rancher.
(e)
(1)Subject to paragraph (2), the amount of a revenue loss
assistance payment for a covered commodity on a farm to be paid to a producer
of the covered commodity on the farm during an applicable crop year shall equal
the product obtained by multiplying—
(A)the per acre
revenue loss of the producer for the covered commodity on the farm, as
determined under paragraph (2)(A);
(B)the payment
factor determined under paragraph (2)(B);
(C)in the case of
acreage that the producer was prevented from planting, the applicable prevented
planting payment factor determined under paragraph (2)(C); and
(D)the payment acres
on the farm determined under paragraph (2)(D).
(2)Revenue loss
payment factorsFor purposes of paragraph (1):
(A)The amount of the per acre revenue loss of the producer
shall be equal to the product obtained by multiplying—
(i)the lesser
of—
(I)the amount
that—
- (aa)88
percent of the historic revenue per acre calculated under subsection (f);
exceeds
- (bb)the actual crop
revenue per acre determined under subsection (g); or
(II)the amount that
is the difference between—
- (aa)88
percent of the historic revenue per acre calculated under subsection (f);
and
- (bb)75
percent of the historic revenue per acre calculated under subsection (f);
and
(ii)the payment
acres calculated under subparagraph (D).
(B)Except as provided in subparagraph (C), the payment factor
shall be 65 percent.
(C)Prevented
planting payment factorFor producers who have been prevented
from planting and have purchased a crop insurance policy under subtitle A of
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), the prevented planting
factor shall be 45 percent.
(D)
(i)The payment acres for a covered commodity on a farm shall
equal the sum of—
(I)the number of
acres planted to the covered commodity on the farm; and
(II)the number of
acres prevented from being planted to covered commodity on the farm.
(ii)If
the total payment acres for all covered commodities on the farm exceeds the
total base acres for all covered commodities on the farm, the total payment
acres for the covered commodities on the farm shall be equal to the product
obtained by multiplying—
(I)the total payment
acres of each covered commodity on the farm determined under clause (i);
by
(II)the factor
determined by dividing—
- (aa)the total base
acres for all covered commodities on the farm; by
- (bb)the total
acreage planted or prevented from being planted to all covered commodities on
the farm.
(f)Historic
revenue per acre
(1)Subject to subsection (h), the historic revenue per acre
for a covered commodity produced on a farm shall be equal to the product
obtained by multiplying—
(A)the production
yield for the covered commodity determined under paragraph (2)(A); and
(B)the historic
commodity price for the covered commodity determined under paragraph
(2)(B).
(2)For purposes of paragraph (1):
(A)The production yield of a covered commodity shall be the
higher of—
(i)a
production yield based on the weighted average of the actual production history
yields of the producer for all acreage devoted to the covered commodity on the
farm, as determined by the Secretary;
(ii)the weighted
average of production yields for the most recent 5 crop years for all acreage
devoted to the covered commodity on the farm, excluding the crop years with the
highest and lowest yields, as determined by the Secretary;
(iii)the production
yield that is equal to—
(I)the payment yield
established for the counter-cyclical program that is in effect as of September
30, 2012; or
(II)the payment
yield established under section 1102; or
(iv)the yield
established by the Secretary in the case of a producer on a farm that does not
have a production yield established under clause (i), (ii), or (iii).
(B)The historic commodity price for each crop of a
covered commodity produced on a farm shall be equal to the higher of—
(i)the target price
for the covered commodity under section 1104(c); or
(ii)subject to
subparagraph (C), the average national price (as determined by the Secretary)
for each covered commodity, by type or variety as applicable, for the marketing
years for the immediately preceding 5 crops, excluding the year in which the
average price received was the highest in the period and the year in which the
average price received was the lowest in the period, as determined by the
Secretary.
(C)The
average national price for each covered commodity under subparagraph (B)(ii)
may not exceed the total economic cost of production for each covered commodity
for the applicable crop year, as determined by the Secretary.
(g)Actual crop
revenue per acre
(1)Subject to subsection (h), the actual crop revenue per
acre for a covered commodity produced on a farm during the applicable crop year
shall be equal to the sum of—
(A)the product
obtained by multiplying—
(i)the actual yield
for the covered commodity on the farm determined under paragraph (2)(A);
and
(ii)the average
price of the covered commodity determined under paragraph (2)(B); and
(B)the average
amount of crop insurance indemnities and noninsured crop disaster assistance
payments received by a producer on the farm determined under paragraph
(2)(C).
(2)Actual crop
revenue factorsFor purposes of paragraph (1):
(A)The actual yield of a covered commodity shall be equal to
the weighted average yield of all planted acres of the covered commodity on the
farm, as determined by the Secretary.
(B)
(i)Subject to clause (ii), the average price of a covered
commodity shall be equal to the national average price for each covered
commodity on the farm, determined by type or class if applicable in the case of
wheat, barley, and rice, for the first 4 months of the marketing year of the
covered commodity during which the crop of the covered commodity would normally
be expected to be harvested, as determined by the Secretary.
(ii)The
Secretary shall adjust the average national price of a covered commodity
received by a producer on a farm to reflect—
(I)the average
quality discounts applied to the local or regional market price of a crop or
mechanically harvested forage due to damage of the covered commodity from
adverse weather, as determined annually by Secretary;
(II)the reduced
value of the covered commodity due to excess moisture resulting from a
disaster-related condition; or
(III)as the
Secretary determines appropriate, regional variations in quality recognized
under the crop insurance program under subtitle A of the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) and the noninsured crop disaster assistance
program.
(C)Net crop
insurance indemnitiesFor each covered commodity, the average
amount of crop insurance indemnities and noninsured crop disaster assistance
payments received by a producer on a farm shall be equal to the weighted
average amount of crop insurance indemnities less the amount of the
producer-paid premium per acre and noninsured crop disaster assistance payments
per acre received by the producer.
(h)
(1)Except as provided in paragraph (2), any crop
subsequently planted on land determined for purposes of the Federal crop
insurance program to be prevented planting acreage during the same crop year
shall not be considered in calculating the historic revenue per acre or the
actual crop revenue per acre for the farm under this section.
(2)Paragraph
(1) shall not apply to a farm that, as determined by the Secretary—
(A)has a history of
double-cropping; and
(B)is located in an
area in which double-cropping is an acceptable agricultural practice for
purposes of the Federal crop insurance program.
1104.Availability
of counter-cyclical payments
(a)For each of the 2013 through 2017 crop years for each
covered commodity, the Secretary shall make counter-cyclical payments to
producers on farms for which payment yields and base acres are established with
respect to the covered commodity if the Secretary determines that the effective
price for the covered commodity is less than the target price for the covered
commodity.
(b)
(1)Covered
commodities other than riceExcept as provided in paragraph (2),
for purposes of subsection (a), the effective price for a covered commodity is
equal to the higher of the following:
(A)The national
average market price received by producers during the first 4 months of the
marketing year for the covered commodity, as determined by the
Secretary.
(B)The national
average loan rate for a marketing assistance loan for the covered commodity in
effect for the applicable period under subtitle B.
(2)In
the case of long grain rice and medium grain rice, for purposes of subsection
(a), the effective price for each type or class of rice is equal to the higher
of the following:
(A)The national
average market price received by producers during the first 4 months of the
marketing year for the type or class of rice, as determined by the
Secretary.
(B)The national
average loan rate for a marketing assistance loan for the type or class of rice
in effect for the applicable period under subtitle B.
(c)For purposes of each of the 2013 through 2017 crop years,
the target prices for covered commodities shall be as follows:
(1)Wheat, $4.17 per
bushel.
(2)Corn, $2.63 per
bushel.
(3)Grain sorghum,
$2.63 per bushel.
(4)Barley, $2.63 per
bushel.
(5)Oats, $1.79 per
bushel.
(6)Upland cotton,
$0.65 per pound.
(7)Long grain rice,
$10.50 per hundredweight.
(8)Medium grain
rice, $10.50 per hundredweight.
(9)Soybeans, $6.00
per bushel.
(10)Other oilseeds,
$12.68 per hundredweight.
(11)Dry peas, $8.32
per hundredweight.
(12)Lentils, $12.81
per hundredweight.
(13)Small chickpeas,
$10.36 per hundredweight.
(14)Large chickpeas,
$12.81 per hundredweight.
(15)Peanuts, $495
per ton.
(d)The payment rate used to make counter-cyclical payments with
respect to a covered commodity for a crop year shall be equal to the difference
between—
(1)the target price
for the covered commodity; and
(2)the effective
price determined under subsection (b) for the covered commodity.
(e)If counter-cyclical payments are required to be paid under
this section for any of the 2013 through 2017 crop years of a covered
commodity, the amount of the counter-cyclical payment to be paid to the
producers on a farm for that crop year shall be equal to the product of the
following:
(1)The payment rate
specified in subsection (d).
(2)The
counter-cyclical payment acres of the covered commodity on the farm.
(3)The payment yield
for the covered commodity for the farm.
(f)If the Secretary determines under subsection (a) that
counter-cyclical payments are required to be made under this section for the
crop of a covered commodity, as soon as practicable after the end of the first
4 months of the marketing year for the covered commodity, the Secretary shall
make the counter-cyclical payments for the crop.
1105.Producer
agreement required as condition of provision of payments
(a)Compliance with
certain requirements
(1)Before
the producers on a farm may receive revenue loss assistance program payments or
counter-cyclical payments 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 (16 U.S.C. 3811 et seq.);
(B)to comply with
applicable wetland protection requirements under subtitle C of title XII of
that Act (16 U.S.C. 3821 et seq.);
(C)to comply with
the planting flexibility requirements of section 1106;
(D)to use the land
on the farm, in a quantity equal to the attributable base acres for the farm
for an agricultural or conserving use, and not for a nonagricultural
commercial, industrial, or residential use, as determined by the Secretary;
and
(E)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 (D).
(2)The
Secretary may issue such rules as the Secretary considers necessary to ensure
producer compliance with the requirements of paragraph (1).
(3)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)
(A)Except as provided in paragraph (2), a transfer of (or
change in) the interest of the producers on a farm in base acres for which
revenue loss assistance program payments or counter-cyclical payments are made
shall result in the termination of the revenue loss assistance program payments
or counter-cyclical payments to the extent the payments are made or based on
the base acres, unless the transferee or owner of the acreage agrees to assume
all obligations under subsection (a).
(B)The termination shall take effect on the date determined by
the Secretary.
(2)If
a producer entitled to a revenue loss assistance program payment or
counter-cyclical 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.
(c)
(1)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.
(2)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 report
unless the producers on the farm knowingly and willfully falsified the acreage
report.
(d)Tenants and
sharecroppersIn carrying out this subtitle, the Secretary shall
provide adequate safeguards to protect the interests of tenants and
sharecroppers.
(e)The Secretary shall provide for the sharing of revenue
loss assistance program payments and counter-cyclical payments among the
producers on a farm on a fair and equitable basis.
1106.
(a)Definition of
noncovered commodityIn this section, the term noncovered
commodity means—
(1)fruits;
(2)vegetables;
and
(3)wild rice.
(b)Subject to subsection (c), any commodity or crop (other
than a controlled substance) may be planted on base acres on a farm.
(c)
(1)Subject to paragraph (2), for each crop year for which a
noncovered commodity is planted on base acres on a farm, the total base acres
used to calculate revenue loss assistance program payments and counter-cyclical
payments shall be reduced by an acre for each acre planted to the noncovered
commodity.
(2)In
any region or on any farm that has a history of double-cropping of covered
commodities with noncovered commodities, as determined by the Secretary, a
producer may receive full revenue loss assistance program payments and
counter-cyclical payments for crops of covered commodities, but no payments for
crops of noncovered commodities.
1107.Special rule
for long grain and medium grain rice
(a)Subject to subsections (b) and (c), for the purposes of
determining the amount of the revenue loss assistance program payments and
counter-cyclical payments to be paid to the producers on a farm for long grain
rice and medium grain rice under sections 1103 and 1104, respectively, the base
acres of rice on the farm shall be apportioned using the 4-year average of the
percentages of acreage planted in the applicable State to long grain rice and
medium grain rice during the 2003 through 2006 crop years, as determined by the
Secretary.
(b)As an alternative to the calculation method described in
subsection (a), the Secretary shall provide producers on a farm the opportunity
to elect to apportion rice base acres on the farm using the 4-year average
of—
(1)the percentages
of acreage planted on the farm to long grain rice and medium grain rice during
the 2003 through 2006 crop years;
(2)the percentages
of any acreage on the farm that the producers were prevented from planting to
long grain rice and medium grain rice during the 2003 through 2006 crop years
because of drought, flood, other natural disaster, or other condition beyond
the control of the producers, as determined by the Secretary; and
(3)in the case of a
crop year for which a producer on a farm elected not to plant to long grain and
medium grain rice during the 2003 through 2006 crop years, the percentages of
acreage planted in the applicable State to long grain rice and medium grain
rice, as determined by the Secretary.
(c)In
carrying out this section, the Secretary shall use the same total base acres,
counter-cyclical payment acres, and payment yields established with respect to
rice under sections 1101 and 1102 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7911, 7912), as in effect on September 30, 2007, subject to
any adjustment under section 1101 of this Act.
1108.This subtitle
shall be effective beginning with the 2013 crop year of each covered commodity
through the 2017 crop
year.
.
3.Marketing
assistance loans and loan deficiency payments
(a)Loan rates for
nonrecourse marketing assistance loansSection 1202 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8732) is amended—
(1)by redesignating
subsection (d) as subsection (e); and
(2)by inserting
after subsection (c) the following:
(c)2013 through
2017 crop yearsFor purposes of each of the 2013 through 2017
crop year, the loan rate for a marketing assistance loan under section 1201 for
a loan commodity shall be equal to the following:
(1)In the case of
wheat, $2.94 per bushel.
(2)In the case of
corn, $1.95 per bushel.
(3)In the case of
grain sorghum, $1.95 per bushel.
(4)In the case of
barley, $1.95 per bushel.
(5)In the case of
oats, $1.39 per bushel.
(6)In the case of
base quality of upland cotton—
(A)for the 2012 crop
year, $0.52 per pound; and
(B)for the 2013 and
each subsequent crop year, the simple average of the adjusted prevailing world
price for the 2 immediately preceding marketing years, as determined by the
Secretary and announced the October 1 preceding the next domestic plantings,
but in no case less than $0.47 per pound or more than $0.52 per pound.
(7)In the case of
extra long staple cotton, $0.7977 per pound.
(8)In the case of
long grain rice, $6.50 per hundredweight.
(9)In the case of
medium grain rice, $6.50 per hundredweight.
(10)In the case of
soybeans, $5.00 per bushel.
(11)In the case of
other oilseeds, $10.09 per hundredweight for each of the following kinds of
oilseeds:
(A)Sunflower
seed.
(B)Rapeseed.
(C)Canola.
(D)Safflower.
(E)Flaxseed.
(F)Mustard
seed.
(G)Crambe.
(H)Sesame
seed.
(I)Other oilseeds
designated by the Secretary.
(12)In the case of
dry peas, $5.40 per hundredweight.
(13)In the case of
lentils, $11.28 per hundredweight.
(14)In the case of
small chickpeas, $7.43 per hundredweight.
(15)In the case of
large chickpeas, $11.28 per hundredweight.
(16)In the case of
graded wool, $1.15 per pound.
(17)In the case of
nongraded wool, $0.40 per pound.
(18)In the case of
mohair, $4.20 per pound.
(19)In the case of
honey, $0.69 per pound.
(20)In the case of
peanuts, $355 per
ton.
.
(b)Section 1204 of the
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8734) is amended by adding
at the end the following:
(i)A marketing association or cooperative may market
peanuts for which a loan is made under this section in any manner that conforms
to consumer needs, including the separation of peanuts by type and
quality.
.
4.Extension of
expiring authorities
(a)Food,
Conservation, and Energy Act of 2008
(1)The following provisions of the Food, Conservation, and
Energy Act of 2008 are amended by striking 2012
each place it
appears and inserting 2017
:
(A)Section 1201(a)(1) (7 U.S.C.
8731(a)(1)).
(B)Section 1205(a)(2)(B) (7 U.S.C.
8735(a)(2)(B)).
(C)Subsections (a) and (d) of section 1206 (7
U.S.C. 8736).
(D)Subsections (a)(2) and (b) of section 1209
(7 U.S.C. 8739).
(E)Section 1307(a)(1) (7 U.S.C.
8757(a)(1)).
(F)Subsections (g) and (h)(1) of section 1506
(7 U.S.C. 8773).
(G)Section 1602 (7 U.S.C. 8782).
(H)Section 1605(h) (7 U.S.C. 8783(h)).
(I)Subsections (b)(2)(A) and (c) of section
1612 (7 U.S.C. 8787).
(J)Section 1613(c) (7 U.S.C. 8788(c)).
(K)Section 1621(d) (7 U.S.C. 8792(d)).
(2)
(A)Adjustment of
prevailing world market price for upland cottonSection 1204(e)(2)(B) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8734(e)(2)(B)) is amended by
striking July 31, 2013
and inserting July 31,
2018
.
(B)Special
marketing loan provisions for upland cottonSection 1207(a)(2)(A) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 8737(a)(2)(A)) is amended by
striking July 31, 2013
and inserting July 31,
2018
.
(C)Special
competitive provisions for extra long staple cottonSection 1208(a) of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8738(a)) is amended in the matter preceding
paragraph (1) by striking July 31, 2013
and inserting
July 31, 2018
.
(D)Dairy product
price support programSection
1501(b) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771(b)) is
amended by striking December 31, 2012
and inserting
December 31, 2017
.
(E)Dairy forward
pricing programSection
1502(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8772(e)) is
amended—”
(i)in paragraph (1),
by striking September 30, 2012
and inserting September
30, 2017
; and
(ii)in paragraph
(2), by striking September 30, 2015
and inserting
September 30, 2020
.
(b)The following provisions of law are amended by striking
2012
each place it appears and inserting
2017
:
(1)The matter
preceding subparagraph (A) of section 359b(a)(1) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359bb(a)(1)).
(2)Section
359l(a)of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359ll(a)).
(3)Section 153(a) of the Food Security Act of
1985 (15 U.S.C. 713a–14(a)).
(4)Section 3 of Public Law 90–484 (7 U.S.C.
450l).
(5)Section 113(e)(2) of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)).
(6)(A)Section 156 of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is
amended—
(i)in subsection (a)(5), by striking
the 2012 crop year
and inserting each of the 2013 through
2017 crop years
;
(ii)in subsection (b)(2), by striking
2012
and inserting 2017
; and
(iii)in subsection (i), by striking
2012
and inserting 2017
.
(B)Section 1402 of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C. 3602 note; Public Law 110–246)
is amended by striking 2007
and inserting
2012
.
(c)
(1)Section
359f(c)(1)(B) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359ff(c)(1)(B)) is amended by adding a period at the end.
(2)Section 1603(g) of the Food, Conservation,
and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1739) is amended in
paragraphs (2) through (6) and the amendments made by those paragraphs by
striking 1703(a)
each place it appears and inserting
1603(a)
.
(3)This paragraph and the amendments made by
this paragraph take effect as if included in the Food, Conservation, and Energy
Act of 2008 (Public Law 110–246; 122 Stat. 1651).
5.Repeal of direct
payment and ACRE programs
(a)Food,
Conservation, and Energy Act of 2008
(1)The table of
contents in section 1(b) of the Food, Conservation, and Energy Act of 2008 (122
Stat. 1651; 7 U.S.C. 8701 note) is amended in the items relating to title
I—
(A)by striking the
items relating to subtitle A and inserting the following:
Subtitle A—Revenue loss assistance program and
counter-Cyclical program
Sec. 1101. Base acres.
Sec. 1102. Payment yields.
Sec. 1103. Revenue loss assistance program.
Sec. 1104. Availability of counter-cyclical
payments.
Sec. 1105. Producer agreement required as condition of
provision of payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Special rule for long grain and medium grain
rice.
Sec. 1108. Period of
effectiveness.
;
and(B)by striking the
items relating to subtitle C.
(2)Section 1206(b)
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8736(b)) is
amended—
(A)in paragraph
(1)(B)(ii), by striking the payment yield in effect for the calculation
of direct payments under subtitle A with respect to that loan commodity on the
farm or, in the case of a farm without a payment yield for that loan
commodity,
; and
(B)in paragraph
(2)(B)(ii), by striking the payment yield in effect for the calculation
of direct payments under subtitle A with respect to wheat on the farm or, in
the case of a farm without a payment yield for wheat,
.
(b)Food Security
Act of 1985
(1)Section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking
subsections (b) and (c) and inserting the following:
(b)Limitation on
revenue loss assistance program payments and counter-Cyclical payments for
covered commoditiesThe total amount of revenue loss assistance
program payments and counter-cyclical program payments received, directly or
indirectly, by a person or legal entity for any crop year under subtitle A of
title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711 et
seq.) for 1 or more covered commodities may not exceed
$105,000.
.
(2)Section 1001D of
the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended—
(A)in subsection
(b)(1)—
(i)by
striking subparagraphs (A) and (B) and inserting the following:
(A)Notwithstanding any other provision of law, a person or
legal entity shall not be eligible to receive any benefit described in
subparagraph (B) during a crop, fiscal, or program year, as appropriate, if the
average adjusted gross income of the person or legal entity exceeds
$999,000.
;
(ii)by
redesignating subparagraph (C) as subparagraph (B); and
(iii)in subparagraph
(B) (as so designated) by striking clause (i) and inserting the
following:
(i)A
revenue loss assistance program payment or counter-cyclical payment under title
I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et
seq.).
;
and
(B)in subsection
(f), by striking 2012
and inserting 2017
.
6.Supplemental
coverage option
(a)Availability of
supplemental coverage optionSection 508(c) of the Federal Crop
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (3) and
inserting the following:
(3)Yield and loss
basis optionsA producer shall have the option of purchasing
additional coverage based on—
(A)(i)an individual yield and
loss basis; or
(ii)an area yield and loss basis;
or
(B)an individual
yield and loss basis, supplemented with coverage based on an area yield and
loss basis to cover a part of the deductible under the individual yield and
loss policy, as described in paragraph
(4)(C).
.
(b)Section 508(c) of the Federal Crop Insurance Act (7
U.S.C. 1508(c)) is amended by striking paragraph (4) and inserting the
following:
(4)
(A)Except as provided in subparagraph (C), the level of
coverage shall be dollar-denominated.
(B)The
Corporation shall provide producers with information on catastrophic risk and
additional coverage in terms of dollar coverage (within the allowable limits of
coverage provided in this paragraph).
(C)Supplemental
coverage option
(i)Notwithstanding subparagraph (A), in the case of the
supplemental coverage option described in paragraph (3)(B), the Corporation
shall offer producers the opportunity to purchase coverage in combination with
an individual policy or plan of insurance (other than catastrophic risk
protection) offered under this subtitle that would allow indemnities to be paid
to a producer equal to part of the deductible under the individual policy or
plan of insurance, if sufficient area data is available (as determined by the
Corporation).
(ii)Coverage
offered under paragraph (3)(B) and clause (i) shall be triggered only if the
losses in the area exceed 25 percent of normal levels (as determined by the
Corporation).
(iii)Subject
to the trigger described in clause (ii) and the deductible required under
clause (iv), coverage offered under paragraph (3)(B) and clause (i) shall cover
the first loss incurred by the producer but not to exceed the difference
between—
(I)75 percent;
and
(II)the coverage
level selected by the producer for the underlying policy or plan of
insurance.
(iv)Coverage
offered under paragraph (3)(B) and clause (i) shall be subject to a deductible
in an amount equal to 25 percent of the expected value of the crop of the
producer under the underlying policy or plan of insurance, as determined by the
Corporation.
(v)The supplemental coverage option shall be offered to
producers of an agricultural commodity in each county in which the agricultural
commodity is produced—
(I)at a county-wide
level to the fullest extent practicable; or
(II)in a county that
lacks sufficient data, on the basis of such larger geographical area as the
Corporation determines to provide sufficient data for purposes of providing the
coverage.
(vi)Notwithstanding subsection (d), the premium shall—
(I)be sufficient to
cover anticipated losses and a reasonable reserve; and
(II)include an
amount for operating and administrative expenses established in accordance with
subsection (k)(4)(F), but not to exceed 6 percent of the premium used to define
the loss ratio for the supplemental coverage
option.
.
(c)Section
508(d)(2)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)(B)) is
amended in the matter preceding clause (i) by inserting or that combines
an individual yield and loss basis and an area yield and loss basis
after not based on individual yield
.
(d)Payment of
portion of premium by CorporationSection 508(e)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended by adding at the
end the following:
(H)In the case of
the supplemental coverage option described in paragraphs (3)(B) and (4)(C) of
subsection (c), the amount shall be equal to the sum of—
(i)not less than 70
percent of the additional premium associated with the coverage; and
(ii)the amount
determined under subsection (d)(2)(B)(ii) for the coverage to cover operating
and administrative
expenses.
.
(e)Section 508(g)(2) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)(2)) is amended by adding at the end the following:
(E)To determine yields under the program established
under this paragraph, the Corporation shall use data collected by the Risk
Management Agency or the National Agricultural Statistics Service, or
both.
.
(f)Administrative
and operating costs reimbursement rateSection 508(k)(4)(F) of
the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting
or as authorized under section 508(c)(4)(C)
after date of
enactment of this subparagraph
.
(g)The Federal Crop Insurance Corporation shall begin to
provide additional coverage based on an individual yield and loss basis,
supplemented with coverage based on an area yield and loss basis, not later
than for the 2013 crop year.
7.Catastrophic
risk protection premium reductionSection 508(d)(2) of the Federal Crop
Insurance Act (7 U.S.C. 1508(d)(2)) is amended by striking subparagraph (A) and
inserting the following:
(A)Catastrophic
risk protection
(i)For the 2011 and previous crop years, the amount of the
premium for catastrophic risk protection coverage shall be sufficient to cover
anticipated losses and a reasonable reserve.
(ii)For
the 2012 and subsequent crop years, the amount of the premium for catastrophic
risk protection coverage authorized under clause (i) shall be reduced by the
percentage equal to the difference between the average loss ratio for each crop
and 100 percent, plus a reasonable
reserve.
.
8.Adjustment in
actual production history to establish insurable yieldsSection 508(g)(4)(B) of the Federal Crop
Insurance Act (7 U.S.C. 1508(g)(4)(B)) is amended by striking 60
percent
both places it appears and inserting 70
percent
.
9.Supplemental
agricultural disaster assistance
(a)Section
531(a) of the Federal Crop Insurance Act (7 U.S.C. 1531(a)) is amended—
(1)in paragraph
(5)—
(A)in the matter
preceding clause (i), by striking the first under
; and
(B)by redesignating
clauses (i) through (iii) as subparagraphs (A), (B), and (C), respectively, and
indenting appropriately;
(2)by striking
paragraph (20); and
(3)by redesignating
paragraph (21) as paragraph (20).
(b)Supplemental
revenue assistance paymentsSection 531(b) of the Federal Crop
Insurance Act (7 U.S.C. 1531(b)) is amended—
(1)in paragraph
(1)—
(A)in subparagraph
(A)—
(i)by striking
from the Trust Fund
and inserting of the Commodity Credit
Corporation
; and
(ii)by striking
the crop year
and inserting during the period beginning
on October 1, 2011, and ending on September 30, 2012
; and
(B)in subparagraph
(B), by striking crop of economic significance
and inserting
covered commodity (as defined in section 1001 of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8702)) or peanuts
;
(2)in paragraph
(2)(A), in the matter preceding clause (i), by striking 60
percent
and inserting 50 percent
;
(3)in paragraph
(3)(A)(i), in the matter preceding subclause (I), by striking 115
percent
and inserting 112 percent
; and
(4)in paragraph
(4)—
(A)in subparagraph
(A)—
(i)in clause
(i)(II), by inserting the first 4 months of
after
received for
; and
(ii)in clause (ii),
by striking 15 percent
and inserting 100 percent
;
and
(B)in subparagraph
(C), by inserting the first 4 months of
after during
the
.
(c)Livestock
indemnity paymentsSection 531(c) of the Federal Crop Insurance
Act (7 U.S.C. 1531(c)) is amended—
(1)in paragraph
(1)—
(A)by striking
from the Trust Fund
and inserting of the funds of the
Commodity Credit Corporation for each of fiscal years 2012 through
2021
; and
(B)by inserting
, or due to predators protected or reintroduced by the Federal
Government, as determined by the Secretary
before the period at the
end; and
(2)in paragraph (2),
by striking 75
and inserting 65
.
(d)Livestock
forage disaster programSection 531(d) of the Federal Crop
Insurance Act (7 U.S.C. 1531(d)) is amended—
(1)in paragraph (2),
by striking from the Trust Fund
and inserting of the
funds of the Commodity Credit Corporation for each of fiscal years 2012 through
2021
;
(2)by striking
paragraph (5); and
(3)by redesignating
paragraph (6) as paragraph (5).
(e)Emergency
assistance for livestock, honey bees, and farm-Raised
fishSection 531(e)(1) of the Federal Crop Insurance Act (7
U.S.C. 1531(e)(1)) is amended by striking $50,000,000 per year from the
Trust Fund
and inserting $20,000,000 of the funds of the
Commodity Credit Corporation for each of fiscal years 2012 through
2021
.
(f)Section 531(f) of the Federal Crop Insurance Act (7
U.S.C. 1531(f)) is amended—
(1)in paragraph
(2)(A), by striking from the Trust Fund
and inserting of
the funds of the Commodity Credit Corporation for each of fiscal years 2012
through 2021
; and
(2)in paragraph
(3)—
(A)in subparagraph
(A)(i), by striking 70
and inserting 60
;
and
(B)in subparagraph
(B), by striking 50
and inserting 40
.
(g)Risk management
purchase requirementSection 531(g)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1531(g)(1)) is amended in the matter preceding
subparagraph (A) by striking and (d)
and inserting , (d),
and (e)
.
(h)
(1)Section 531 of
the Federal Crop Insurance Act (7 U.S.C. 1531) is amended—
(A)by striking
subsection (i); and
(B)by redesignating
subsections (j) and (k) as subsections (i) and (j), respectively.
(2)Title IX of the
Trade Act of 1974 (19 U.S.C. 2497 et seq.) is repealed.
(i)This section and the amendments made by this section take
effect on October 1, 2011.
10.The budgetary effects
of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act
of 2010, shall be determined by reference to the latest statement titled
Budgetary Effects of PAYGO Legislation
for this Act, submitted
for printing in the Congressional Record by the Chairman of the Senate Budget
Committee, provided that such statement has been submitted prior to the vote on
passage.
11.Except as otherwise
provided in this Act, this Act and the amendments made by this Act take effect
on October 1, 2012.