To provide supplemental emergency disaster assistance to agricultural producers for certain crop losses during the 2011 crop year, to eliminate limitations on certain waivers for borrowers eligible for direct farm operating loans, and to suspend the limitation on the period for which borrowers are eligible for guaranteed farm operating loans, for farming or ranching operations in counties subject to a disaster declaration issued in 2011.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farmers Disaster Assistance Act of 
2011''.

SEC. 2. SUPPLEMENTAL EMERGENCY DISASTER ASSISTANCE.

    (a) Definitions.--In this section:
            (1) Disaster county.--The term ``disaster county'' means a 
        county included in the geographic area covered by a qualifying 
        natural disaster declaration for the 2011 crop year.
            (2) Eligible producer.--The term ``eligible producer'' 
        means an agricultural producer in a disaster county.
            (3) Eligible specialty crop producer.--The term ``eligible 
        specialty crop producer'' means an agricultural producer that, 
        for the 2011 crop year, as determined by the Secretary--
                    (A) produced, or was prevented from planting, a 
                specialty crop; and
                    (B) experienced crop losses in a disaster county 
                due to excessive rainfall or related condition.
            (4) Qualifying natural disaster declaration.--The term 
        ``qualifying natural disaster declaration'' means a natural 
        disaster declared by the Secretary for production losses under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (6) Specialty crop.--The term ``specialty crop'' has the 
        meaning given the term in section 3 of the Specialty Crops 
        Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 
        note).
    (b) Supplemental Direct Payment.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use such sums as are necessary 
        to make supplemental payments under sections 1103 and 1303 of 
        the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 
        8753) to eligible producers on farms located in disaster 
        counties that had at least 1 crop of economic significance 
        (other than crops intended for grazing) suffer at least a 5-
        percent crop loss due to a natural disaster, including quality 
        losses, as determined by the Secretary, in an amount equal to 
        90 percent of the direct payment the eligible producers 
        received for the 2011 crop year on the farm.
            (2) Acre program.--Eligible producers that received 
        payments under section 1105 of the Food, Conservation, and 
        Energy Act of 2008 (7 U.S.C. 8715) for the 2011 crop year and 
        that otherwise meet the requirements of paragraph (1) shall be 
        eligible to receive supplemental payments under that paragraph 
        in an amount equal to 90 percent of the reduced direct payment 
        the eligible producers received for the 2011 crop year under 
        section 1103 or 1303 of the Food, Conservation, and Energy Act 
        of 2008 (7 U.S.C. 8713, 8753).
            (3) Insurance requirement.--As a condition of receiving 
        assistance under this subsection, eligible producers on a farm 
        that--
                    (A) in the case of an insurable commodity, did not 
                obtain a policy or plan of insurance for the insurable 
                commodity under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.) (other than for a crop insurance 
                pilot program under that Act) for each crop of economic 
                significance (other than crops intended for grazing), 
                shall obtain such a policy or plan for those crops for 
                the next available crop year, as determined by the 
                Secretary; or
                    (B) in the case of a noninsurable commodity, did 
                not file the required paperwork, and pay the 
                administrative fee by the applicable State filing 
                deadline, for the noninsurable commodity under section 
                196 of the Federal Agriculture Improvement and Reform 
                Act of 1996 (7 U.S.C. 7333) for each crop of economic 
                significance (other than crops intended for grazing), 
                shall obtain such coverage for those crops for the next 
                available crop year, as determined by the Secretary.
            (4) Relationship to other law.--Assistance received under 
        this subsection shall be included in the calculation of farm 
        revenue for the 2011 crop year under section 531(b)(4)(A) of 
        the Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and 
        section 901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
        2497(b)(4)(A)).
    (c) Specialty Crop Assistance.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use such sums as necessary, 
        which shall remain available until September 30, 2012, to carry 
        out a program of grants to States to assist eligible specialty 
        crop producers for losses due to excessive rainfall and related 
        conditions affecting the 2011 crops.
            (2) Notification.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall notify the State 
        department of agriculture (or similar entity) in each State of 
        the availability of funds to assist eligible specialty crop 
        producers, including such terms as are determined by the 
        Secretary to be necessary for the equitable treatment of 
        eligible specialty crop producers.
            (3) Provision of grants.--
                    (A) In general.--The Secretary shall make grants to 
                States for disaster counties with excessive rainfall 
                and related conditions on a pro rata basis based on the 
                value of specialty crop losses in those counties during 
                the 2011 calendar year, as determined by the Secretary.
                    (B) Timing.--Not later than 120 days after the date 
                of enactment of this Act, the Secretary shall make 
                grants to States to provide assistance under this 
                subsection.
                    (C) Maximum grant.--The maximum amount of a grant 
                made to a State under this subsection may not exceed 
                $40,000,000.
            (4) Requirements.--The Secretary shall make grants under 
        this subsection only to States that demonstrate to the 
        satisfaction of the Secretary that the State will--
                    (A) use grant funds to assist eligible specialty 
                crop producers;
                    (B) provide assistance to eligible specialty crop 
                producers not later than 90 days after the date on 
                which the State receives grant funds; and
                    (C) not later than 30 days after the date on which 
                the State provides assistance to eligible specialty 
                crop producers, submit to the Secretary a report that 
                describes--
                            (i) the manner in which the State provided 
                        assistance;
                            (ii) the amounts of assistance provided by 
                        type of specialty crop; and
                            (iii) the process by which the State 
                        determined the levels of assistance to eligible 
                        specialty crop producers.
            (5) Relation to other law.--Assistance received under this 
        subsection shall be included in the calculation of farm revenue 
        for the 2011 crop year under section 531(b)(4)(A) of the 
        Federal Crop Insurance Act (7 U.S.C. 1531(b)(4)(A)) and section 
        901(b)(4)(A) of the Trade Act of 1974 (19 U.S.C. 
        2497(b)(4)(A)).

SEC. 3. ELIMINATION OF LIMITATIONS ON CERTAIN WAIVERS FOR BORROWERS 
              ELIGIBLE FOR DIRECT FARM OPERATING LOANS FOR FARMING OR 
              RANCHING OPERATIONS IN COUNTIES SUBJECT TO A DISASTER 
              DECLARATION ISSUED IN 2011.

    The numerical and durational limitations on waivers which may be 
granted under section 311(c)(4)(B) of the Consolidated Farm and Rural 
Development Act shall not apply with respect to an operating loan for a 
farming or ranching operation located in a county which is found by the 
Secretary of Agriculture to have been substantially affected by a 
natural disaster in the United States or a major disaster or emergency 
designated by the President under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, that occurred in calendar year 
2011.

SEC. 4. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
              ELIGIBLE FOR GUARANTEED FARM OPERATING LOANS FOR FARMING 
              OR RANCHING OPERATIONS IN COUNTIES SUBJECT TO A DISASTER 
              DECLARATION ISSUED IN 2011.

    Section 5102 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1949 note; Public Law 107-171) is amended--
            (1) in the section heading by inserting ``for farming or 
        ranching operations in counties subject to a disaster 
        declaration issued in 2011'' after ``assistance'';
            (2) by striking ``2010'' and inserting ``2013''; and
            (3) by inserting ``in the case of a guaranteed operating 
        loan for a farming or ranching operation located in a county 
        which is found by the Secretary of Agriculture to have been 
        substantially affected by a natural disaster in the United 
        States or a major disaster or emergency designated by the 
        President under the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act, that occurred in calendar year 2011'' 
        before the period.

Summary: Farmers Disaster Assistance Act of 2011 - Directs the Secretary of Agriculture (USDA) to make supplemental payments to agricultural producers receiving direct payments for covered commodities, direct payments for peanuts, or average crop revenue election (ACRE) payments in disaster counties that had qualifying losses for the 2011 crop year. Sets forth related insurance requirements. Directs the Secretary to provide grants to qualifying states through September 30, 2012, to assist specialty crop producers for losses due to excessive rainfall and related conditions affecting the 2011 crops. Eliminates numerical and durational limitations on operating loan waivers for a farm or a ranch in a county which in 2011: (1) has been substantially affected by a natural disaster, or (2) is included in a presidentially-designated major disaster or emergency area. Amends the Farm Security and Rural Investment Act of 2002 to suspend through December 31, 2013, the limitation on the period for which borrowers are eligible for guaranteed farm operating loans in a county which in 2011: (1) has been substantially affected by a natural disaster, or (2) is included in a presidentially-designated major disaster or emergency area.