118 S2610 IS: Farm Program Integrity Act of 2023
U.S. Senate
2023-07-27
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II
118th CONGRESS
1st Session
S. 2610
IN THE SENATE OF THE UNITED STATES
July 27, 2023
Mr. Grassley (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 Food Security Act of 1985 to modify payment and other limitations for commodity programs, and for other purposes.
1.

Short title
This Act may be cited as the “Farm Program Integrity Act of 2023”.
2.

General commodity provisions
(a)

Payment limitations
Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—
(1)
in subsection (a)—
(A)
by redesignating paragraphs (1) through (5) as paragraphs (2) through (6), respectively; and
(B)
by inserting before paragraph (2) (as so redesignated) the following:
“(1)

Active personal management
The term active personal management means management activities personally performed on a farming operation—
(A)
by a person with a direct or indirect ownership interest in that farming operation; and
(B)
on a regular, continuous, and substantial basis.”;
(2)
by striking subsections (b) through (d) and inserting the following:
“(b)

Limitation on marketing loan gains and loan deficiency payments for covered commodities
The total amount of payments received, directly or indirectly, by a person or legal entity for any crop year as marketing loan gains or loan deficiency payments under subtitle B of title I of the Agricultural Act of 2014 (7 U.S.C. 9031 et seq.) may not exceed $75,000.
(c)

Limitation on payments for covered commodities received with respect to a farming operation
The total amount of payments received for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (7 U.S.C. 9016, 9017) with respect to a farming operation—
(1)
in which 2 or more persons or legal entities are determined to be actively engaged in farming under subsection (b) or (c) of section 1001A may not exceed $250,000; or
(2)
in which less than 2 persons or legal entities are determined to be actively engaged in farming under subsection (b) or (c) of section 1001A may not exceed $125,000.”;
(3)
by redesignating subsections (e) through (h) as subsections (d) through (g), respectively;
(4)
in subsection (d) (as so redesignated), in paragraph (3)(B)—
(A)
by striking clause (ii) and inserting the following:
“(ii)

Reduction for persons and legal entities actively engaged in farming
Payments made to a legal entity shall be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity of each person or legal entity that is determined to be actively engaged in farming under subsection (b) or (c) of section 1001A.”; and
(B)
in clause (iii), in the clause heading, by striking “Reduction” and inserting “Reduction for persons and legal entities that exceeded the payment limitation”;
(5)
in subsection (e) (as so redesignated)—
(A)
by striking paragraph (4);
(B)
by redesignating paragraphs (5) through (8) as paragraphs (4) through (7), respectively;
(C)
in paragraph (4) (as so redesignated)—
(i)
in subparagraph (A), by striking “Notwithstanding subsection (d), a Federal” and inserting “A Federal”; and
(ii)
in subparagraph (B), by striking “(b), (c), or (d)” and inserting “(b) or (c)”;
(D)
in paragraph (5) (as so redesignated)—
(i)
in subparagraph (A), by striking “Notwithstanding subsection (d), except as provided in subsection (g),” and inserting “Except as provided in subsection (f),”; and
(ii)
in subparagraph (B), by striking “(b), (c), and (d)” and inserting “(b) and (c)”; and
(E)
by striking paragraph (9); and
(6)
in subsection (f) (as so redesignated), in paragraph (1), by striking “(f)(6)(A)” and inserting “(e)(5)(A)”.
(b)

Notification of interests; payments limited to active farmers
Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended—
(1)
in subsection (b)(2)—
(A)
in subparagraph (A)(i), by striking subclause (II) and inserting the following:
“(II)
personal labor and active personal management, which shall be in a duration equal to not less than the lesser of—
- (aa)
1,000 hours for the applicable crop year; and
- (bb)
a period equal to 50 percent of the commensurate share of the total number of hours of personal labor and active personal management required to conduct the farming operation for the applicable crop year, as determined by the Secretary;”;
(B)
in subparagraph (B)—
(i)
in the matter preceding clause (i)—
(I)
by inserting “general partnership, joint venture,” after “limited partnership,”; and
(II)
by striking “(including” and all that follows through “Secretary)”;
(ii)
in clause (ii)—
(I)
by striking “stockholders” and inserting “stockholders, partners, participants,”; and
(II)
by striking “labor or active” and inserting “labor and active”; and
(iii)
in clause (iii), by adding “and” at the end;
(C)
by striking subparagraph (C); and
(D)
by redesignating subparagraph (D) as subparagraph (C); and
(2)
in subsection (c)—
(A)
in paragraph (1)—
(i)
by striking subparagraph (A) and inserting the following:
“(A)
the landowner share-rents the land at a rate that is usual and customary;”;
(ii)
in subparagraph (B), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following:
“(C)
the share of the payments received by the landowner is commensurate with the share of the crop or income received as rent.”;
(B)
in paragraph (5)—
(i)
in subparagraph (A), by inserting “under usual and customary terms” after “services”;
(ii)
by striking subparagraph (B); and
(iii)
by striking “services” in the paragraph heading and all that follows through “A person” in subparagraph (A) and inserting “services.—A person”; and
(C)
by striking paragraph (6).
(c)

Adjusted gross income limitation
Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended—
(1)
in subsection (a), by striking paragraph (3); and
(2)
in subsection (b), by striking paragraph (3).
(d)

Technical amendment
Section 1001E(c) of the Food Security Act of 1985 (7 U.S.C. 1308–4(c)) is amended by striking “Agricultural Stabilization and Conservation Service” and inserting “Farm Service Agency”.