[Congressional Record Volume 153, Number 120 (Wednesday, July 25, 2007)]
[Senate]
[Pages S9921-S9922]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself and Mr. Brown):
  S. 1872. 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; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. DURBIN. I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1872

       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

[[Page S9922]]

     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.
                                 ______