II 

115TH CONGRESS 

1ST SESSION S. 1259 

To improve and extend agricultural commodity programs, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2017 

Mr. THUNE introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To improve and extend agricultural commodity programs, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) IN GENERAL.—This Act may be cited as the 

5 ‘‘Commodity Program Improvement Act of 2017’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—COMMODITY POLICY 

Sec. 101. Base acres. 

Sec. 102. Payment yields. 


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Sec. 103. Payment acres. 

Sec. 104. Producer election. 

Sec. 105. Price loss coverage. 

Sec. 106. Agriculture risk coverage. 

Sec. 107. Producer agreements. 

TITLE II—MARKETING LOANS 

Sec. 201. Availability of nonrecourse marketing assistance loans for loan commodities. 

Sec. 202. Loan rates for nonrecourse marketing assistance loans. 

Sec. 203. Term of loans. 

Sec. 204. Repayment of loans. 

Sec. 205. Loan deficiency payments. 

Sec. 206. Payments in lieu of loan deficiency payments for grazed acreage. 

Sec. 207. Special marketing loan provisions for upland cotton. 

Sec. 208. Special competitive provisions for extra long staple cotton. 

Sec. 209. Availability of recourse loans for high moisture feed grains and seed 

cotton. 

Sec. 210. Adjustments of loans. 

TITLE III—ADMINISTRATION 

Sec. 301. Administration generally. 

Sec. 302. Suspension of permanent price support authority. 

Sec. 303. Conforming amendments. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ACTUAL CROP REVENUE.—The term ‘‘ac4 tual crop revenue’’, with respect to a covered com5 modity for a crop year, means the amount deter6 mined by the Secretary under section 106(b). 

7 (2) AGRICULTURE RISK COVERAGE.—The term 

8 ‘‘agriculture risk coverage’’ means coverage provided 

9 under section 106. 

10 (3) AGRICULTURE RISK COVERAGE GUAR11 ANTEE.—The term ‘‘agriculture risk coverage guar12 antee’’, with respect to a covered commodity for a 

13 crop year, means the amount determined by the Sec14 retary under section 106(c). 


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1 (4) BASE ACRES.—The term ‘‘base acres’’ 

2 means the number of acres on a farm designated as 

3 base acres pursuant to part II of subtitle A of title 

4 I of the Agricultural Act of 2014 (7 U.S.C. 9011 et 

5 seq.) for the 2018 crop year. 

6 (5) COUNTY COVERAGE.—The term ‘‘county 

7 coverage’’ means agriculture risk coverage selected 

8 under section 104(b)(1) to be obtained at the county 

9 level. 

10 (6) COVERED COMMODITY.—The term ‘‘covered 

11 commodity’’ means wheat, oats, and barley (includ12 ing wheat, oats, and barley used for haying and 

13 grazing), corn, grain sorghum, long grain rice, me14 dium grain rice, pulse crops, soybeans, other oil15 seeds, and peanuts. 

16 (7) EFFECTIVE PRICE.—The term ‘‘effective 

17 price’’, with respect to a covered commodity for a 

18 crop year, means the price calculated by the Sec19 retary under section 105(b) to determine whether 

20 price loss coverage payments are required to be pro21 vided for that crop year. 

22 (8) EXTRA LONG STAPLE COTTON.—The term 

23 ‘‘extra long staple cotton’’ means cotton that— 

24 (A) is produced from pure strain varieties 

25 of the Barbadense species or any hybrid of the 


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1 species, or other similar types of extra long sta2 ple cotton, designated by the Secretary, having 

3 characteristics needed for various end uses for 

4 which United States upland cotton is not suit5 able and grown in irrigated cotton-growing re6 gions of the United States designated by the 

7 Secretary or other areas designated by the Sec8 retary as suitable for the production of the vari9 eties or types; and 

10 (B) is ginned on a roller-type gin or, if au11 thorized by the Secretary, ginned on another 

12 type gin for experimental purposes. 

13 (9) INDIVIDUAL COVERAGE.—The term ‘‘indi14 vidual coverage’’ means agriculture risk coverage se15 lected under section 104(b)(2) to be obtained at the 

16 farm level. 

17 (10) MEDIUM GRAIN RICE.—The term ‘‘medium 

18 grain rice’’ includes short grain rice and temperate 

19 japonica rice. 

20 (11) OTHER OILSEED.—The term ‘‘other oil21 seed’’ means a crop of sunflower seed, rapeseed, 

22 canola, safflower, flaxseed, mustard seed, crambe, 

23 sesame seed, or any oilseed designated by the Sec24 retary. 


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1 (12) PAYMENT ACRES.—The term ‘‘payment 

2 acres’’, with respect to the provision of price loss 

3 coverage payments and agriculture risk coverage 

4 payments, means the number of acres determined 

5 for a farm under section 103. 

6 (13) PAYMENT YIELD.—The term ‘‘payment 

7 yield’’, for a farm for a covered commodity, means— 

8 (A) the yield used to make payments pur9 suant to section 1104 or 1304 of the Food, 

10 Conservation, and Energy Act of 2008 (7 

11 U.S.C. 8714, 8754), as in effect on September 

12 30, 2013; or 

13 (B) the yield established under section 

14 102. 

15 (14) PRICE LOSS COVERAGE.—The term ‘‘price 

16 loss coverage’’ means coverage provided under sec17 tion 105. 

18 (15) PRODUCER.— 

19 (A) IN GENERAL.—The term ‘‘producer’’ 

20 means an owner, operator, landlord, tenant, or 

21 sharecropper that shares in the risk of pro22 ducing a crop and is entitled to share in the 

23 crop available for marketing from the farm, or 

24 would have shared had the crop been produced. 


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1 (B) HYBRID SEED.—In determining 

2 whether a grower of hybrid seed is a producer, 

3 the Secretary shall— 

4 (i) not take into consideration the ex5 istence of a hybrid seed contract; and 

6 (ii) ensure that program requirements 

7 do not adversely affect the ability of the 

8 grower to receive a payment under this 

9 Act. 

10 (16) PULSE CROP.—The term ‘‘pulse crop’’ 

11 means dry peas, lentils, small chickpeas, and large 

12 chickpeas. 

13 (17) REFERENCE PRICE.—The term ‘‘reference 

14 price’’, with respect to a covered commodity for a 

15 crop year, means the following: 

16 (A) For wheat, $5.50 per bushel. 

17 (B) For corn, $3.70 per bushel. 

18 (C) For grain sorghum, $3.95 per bushel. 

19 (D) For barley, $4.95 per bushel. 

20 (E) For oats, $2.40 per bushel. 

21 (F) For long grain rice, $14.00 per hun22 dredweight. 

23 (G) For medium grain rice, $14.00 per 

24 hundredweight. 

25 (H) For soybeans, $8.40 per bushel. 


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1 (I) For other oilseeds, $20.15 per hundred2 weight. 

3 (J) For peanuts, $535.00 per ton. 

4 (K) For dry peas, $11.00 per hundred5 weight. 

6 (L) For lentils, $19.97 per hundredweight. 

7 (M) For small chickpeas, $19.04 per hun8 dredweight. 

9 (N) For large chickpeas, $21.54 per hun10 dredweight. 

11 (18) SECRETARY.—The term ‘‘Secretary’’ 

12 means the Secretary of Agriculture. 

13 (19) STATE.—The term ‘‘State’’ means— 

14 (A) a State; 

15 (B) the District of Columbia; 

16 (C) the Commonwealth of Puerto Rico; 

17 and 

18 (D) any other territory or possession of the 

19 United States. 

20 (20) TEMPERATE JAPONICA RICE.—The term 

21 ‘‘temperate japonica rice’’ means rice that is grown 

22 in high altitudes or temperate regions of high lati23 tudes with cooler climate conditions, in the Western 

24 United States, as determined by the Secretary, for 

25 the purpose of— 


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1 (A) the update of base acres under section 

2 101; 

3 (B) the establishment of a reference price 

4 (as required under section 105(g)) and an effec5 tive price pursuant to section 105; and 

6 (C) the determination of the actual crop 

7 revenue and agriculture risk coverage guarantee 

8 pursuant to section 106. 

9 (21) TRANSITIONAL YIELD.—The term ‘‘transi10 tional yield’’ has the meaning given the term in sec11 tion 502(b) of the Federal Crop Insurance Act (7 

12 U.S.C. 1502(b)). 

13 (22) UNITED STATES.—The term ‘‘United 

14 States’’, when used in a geographical sense, means 

15 all of the States. 

16 (23) UNITED STATES PREMIUM FACTOR.—The 

17 term ‘‘United States Premium Factor’’ means the 

18 percentage by which the difference in the United 

19 States loan schedule premiums for Strict Middling 

(SM) 11 20 ⁄8-inch upland cotton and for Middling (M) 

13 21 ⁄32-inch upland cotton exceeds the difference in the 

22 applicable premiums for comparable international 

23 qualities. 

24 (24) UPDATED BASE ACRES.—The term ‘‘up25 dated base acres’’, with respect to a covered comVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 modity on a farm, means the number of base acres 

2 updated by the Secretary under section 101. 

3 TITLE I—COMMODITY POLICY 

4 SEC. 101. BASE ACRES. 

5 (a) MANDATORY ONE-TIME UPDATE OF BASE

6 ACRES.— 

7 (1) IN GENERAL.—As soon as practicable after 

8 the date of enactment of this Act, the Secretary 

9 shall update base acres on a farm for the 2019 crop 

10 year in accordance with this section. 

11 (2) MANDATORY UPDATE.—For the purpose of 

12 applying this title to covered commodities, the Sec13 retary shall determine the updated base acres on a 

14 farm by updating all of the base acres for covered 

15 commodities on the farm among those covered com16 modities planted on the farm at any time during the 

17 2014 through 2017 crop years. 

18 (3) UPDATE FORMULA.—The updated base 

19 acres among covered commodities on a farm shall be 

20 the proportion that— 

21 (A) the 4-year average of— 

22 (i) the acreage planted on the farm to 

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1 poses for the 2014 through 2017 crop 

2 years; and 

3 (ii) any acreage on the farm that the 

4 producers were prevented from planting 

5 during the 2014 through 2017 crop years 

6 to that covered commodity because of 

7 drought, flood, or other natural disaster, or 

8 other condition beyond the control of the 

9 producers, as determined by the Secretary; 

10 bears to 

11 (B) the 4-year average of— 

12 (i) the acreage planted on the farm to 

13 all covered commodities for harvest, graz14 ing, haying, silage, or other similar pur15 poses for the 2014 through 2017 crop 

16 years; and 

17 (ii) any acreage on the farm that the 

18 producers were prevented from planting 

19 during the 2014 through 2017 crop years 

20 to covered commodities because of drought, 

21 flood, or other natural disaster, or other 

22 condition beyond the control of the pro23 ducers, as determined by the Secretary. 

24 (4) INCLUSION OF ALL 4 YEARS IN AVERAGE.— 

25 For the purpose of determining a 4-year acreage avVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 erage under paragraph (3) for a farm, the Secretary 

2 shall not exclude any crop year in which a covered 

3 commodity was not planted. 

4 (5) TREATMENT OF MULTIPLE PLANTING OR

5 PREVENTED PLANTING.—For the purpose of deter6 mining under paragraph (3) the acreage on a farm 

7 that producers planted or were prevented from 

8 planting during the 2014 through 2017 crop years 

9 to covered commodities, if the acreage that was 

10 planted or prevented from being planted was devoted 

11 to another covered commodity in the same crop year 

12 (other than a covered commodity produced under an 

13 established practice of double cropping), the owner— 

14 (A) may elect the commodity to be used 

15 for that crop year in determining the 4-year av16 erage; but 

17 (B) may not include both the initial com18 modity and the subsequent commodity. 

19 (b) ADJUSTMENT OF BASE ACRES.— 

20 (1) IN GENERAL.—Notwithstanding the update 

21 of base acres under subsection (a), the Secretary 

22 shall provide for an adjustment, as appropriate, in 

23 the updated base acres for covered commodities for 

24 a farm whenever any of the following circumstances 

25 occur: 


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1 (A) A conservation reserve contract en2 tered into under section 1231 of the Food Secu3 rity Act of 1985 (16 U.S.C. 3831) with respect 

4 to the farm expires or is voluntarily terminated. 

5 (B) Cropland is released from coverage 

6 under a conservation reserve contract by the 

7 Secretary. 

8 (C) The producer has eligible oilseed acre9 age as the result of the Secretary designating 

10 additional oilseeds, which shall be determined in 

11 the same manner as eligible oilseed acreage 

12 under section 1101(a)(1)(D) of the Food, Con13 servation, and Energy Act of 2008 (7 U.S.C. 

14 8711(a)(1)(D)). 

15 (2) SPECIAL CONSERVATION RESERVE ACREAGE

16 PAYMENT RULES.—For the crop year in which an 

17 updated base acres adjustment under subparagraph 

18 (A) or (B) of paragraph (1) is first made, the owner 

19 of the farm shall elect to receive price loss coverage 

20 or agriculture risk coverage with respect to the acre21 age added to the farm under this subsection or a 

22 prorated payment under the conservation reserve 

23 contract, but not both. 

24 (c) PREVENTION OF EXCESS UPDATED BASE

25 ACRES.— 


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1 (1) REQUIRED REDUCTION.—If the updated 

2 base acres for a farm exceeds the actual cropland 

3 acreage of the farm, the Secretary shall reduce the 

4 updated base acres for one or more covered commod5 ities for the farm so that the sum of the base acres 

6 and the other acreage described in paragraph (2) 

7 does not exceed the actual cropland acreage of the 

8 farm. 

9 (2) OTHER ACREAGE.—The other acreage re10 ferred to in paragraph (1) is the following: 

11 (A) Any acreage on the farm enrolled in 

12 the conservation reserve program or wetlands 

13 reserve program (or successor programs) under 

14 chapter 1 of subtitle D of title XII of the Food 

15 Security Act of 1985 (16 U.S.C. 3830 et seq.). 

16 (B) Any other acreage on the farm en17 rolled in a Federal conservation program for 

18 which payments are made in exchange for not 

19 producing an agricultural commodity on the 

20 acreage. 

21 (C) If the Secretary designates additional 

22 oilseeds, any eligible oilseed acreage, which shall 

23 be determined in the same manner as eligible 

24 oilseed acreage under subsection (b)(1)(C). 


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1 (3) SELECTION OF ACRES.—The Secretary shall 

2 give the owner of the farm the opportunity to select 

3 the updated base acres for a covered commodity for 

4 the farm against which the reduction required by 

5 paragraph (1) will be made. 

6 (4) EXCEPTION FOR DOUBLE-CROPPED ACRE7 AGE.—In applying paragraph (1), the Secretary 

8 shall make an exception in the case of double crop9 ping, as determined by the Secretary. 

10 (d) REDUCTION IN UPDATED BASE ACRES.— 

11 (1) REDUCTION AT OPTION OF OWNER.— 

12 (A) IN GENERAL.—The owner of a farm 

13 may reduce, at any time, the updated base 

14 acres for any covered commodity for the farm. 

15 (B) EFFECT OF REDUCTION.—A reduction 

16 under subparagraph (A) shall be permanent 

17 and made in a manner prescribed by the Sec18 retary. 

19 (2) REQUIRED ACTION BY SECRETARY.— 

20 (A) IN GENERAL.—The Secretary shall 

21 proportionately reduce updated base acres on a 

22 farm for land that has been subdivided and de23 veloped for multiple residential units or other 

24 nonfarming uses if the size of the tracts and 

25 the density of the subdivision is such that the 


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1 land is unlikely to return to the previous agri2 cultural use, unless the producers on the farm 

3 demonstrate that the land— 

4 (i) remains devoted to commercial ag5 ricultural production; or 

6 (ii) is likely to be returned to the pre7 vious agricultural use. 

8 (B) REQUIREMENT.—The Secretary shall 

9 establish procedures to identify land described 

10 in subparagraph (A). 

11 SEC. 102. PAYMENT YIELDS. 

12 (a) EFFECT OF LACK OF PAYMENT YIELD.—In the 

13 case of a covered commodity on a farm for which updated 

14 base acres have been established, if no payment yield is 

15 otherwise established for the covered commodity on the 

16 farm, the Secretary shall establish an appropriate pay17 ment yield for the covered commodity on the farm under 

18 subsection (b). 

19 (b) USE OF SIMILARLY SITUATED FARMS.— 

20 (1) IN GENERAL.—To establish an appropriate 

21 payment yield for a covered commodity on a farm as 

22 required by subsection (a), the Secretary shall take 

23 into consideration the farm program payment yields 

24 applicable to that covered commodity for similarly 

25 situated farms. 


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1 (2) APPLICABILITY OF OTHER LAWS.—The use 

2 of any data described in paragraph (1) in an appeal, 

3 by the Secretary or by the producer, shall not be 

4 subject to any other provision of law. 

5 SEC. 103. PAYMENT ACRES. 

6 (a) DETERMINATION OF PAYMENT ACRES.— 

7 (1) GENERAL RULE.—For the purpose of price 

8 loss coverage and agriculture risk coverage when 

9 county coverage has been selected, subject to sub10 section (c), the payment acres for each covered com11 modity on a farm shall be equal to 85 percent of the 

12 updated base acres for the covered commodity on the 

13 farm. 

14 (2) EFFECT OF INDIVIDUAL COVERAGE.—In 

15 the case of agriculture risk coverage when individual 

16 coverage has been selected, subject to subsection (c), 

17 the payment acres for a farm shall be equal to 65 

18 percent of the updated base acres for all of the cov19 ered commodities on the farm. 

20 (b) EFFECT OF MINIMAL PAYMENT ACRES.— 

21 (1) PROHIBITION ON PAYMENTS.—Notwith22 standing any other provision of this Act, a producer 

23 on a farm may not receive price loss coverage pay24 ments or agriculture risk coverage payments if the 


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1 sum of the updated base acres on the farm is 10 

2 acres or less, as determined by the Secretary. 

3 (2) EXCEPTIONS.—Paragraph (1) does not 

4 apply to a producer that is— 

5 (A) a socially disadvantaged farmer or 

6 rancher (as defined in section 355(e) of the 

7 Consolidated Farm and Rural Development Act 

8 (7 U.S.C. 2003(e))); or 

9 (B) a limited resource farmer or rancher, 

10 as defined by the Secretary. 

11 (c) EFFECT OF PLANTING FRUITS AND VEGETA12 BLES.— 

13 (1) REDUCTION REQUIRED.—In the manner 

14 provided in this subsection, payment acres on a farm 

15 shall be reduced in any crop year in which fruits, 

16 vegetables (other than mung beans and pulse crops), 

17 or wild rice have been planted on updated base acres 

18 on a farm. 

19 (2) PRICE LOSS COVERAGE AND COUNTY COV20 ERAGE.—In the case of price loss coverage payments 

21 and agricultural risk coverage payments using coun22 ty coverage, the reduction under paragraph (1) shall 

23 be the amount equal to the updated base acres 

24 planted to crops referred to in that paragraph in ex25 cess of 15 percent of updated base acres. 


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1 (3) INDIVIDUAL COVERAGE.—In the case of ag2 ricultural risk coverage payments using individual 

3 coverage, the reduction under paragraph (1) shall be 

4 the amount equal to the updated base acres planted 

5 to crops referred to in that paragraph in excess of 

6 35 percent of updated base acres. 

7 (4) REDUCTION EXCEPTIONS.—No reduction to 

8 payment acres shall be made under this subsection 

9 if— 

10 (A) cover crops or crops referred to in 

11 paragraph (1) are grown solely for conservation 

12 purposes and not harvested for use or sale, as 

13 determined by the Secretary; or 

14 (B) in any region in which there is a his15 tory of double-cropping covered commodities 

16 with crops referred to in paragraph (1) and 

17 those crops were so double-cropped on the up18 dated base acres, as determined by the Sec19 retary. 

20 SEC. 104. PRODUCER ELECTION. 

21 (a) ELECTION REQUIRED.—For the 2019 through 

22 2024 crop years, all of the producers on a farm shall make 

23 a one-time, irrevocable election to obtain— 

24 (1) price loss coverage on a covered commodity25 by-covered-commodity basis; or 


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1 (2) agriculture risk coverage. 

2 (b) COVERAGE OPTIONS.—In the election under sub3 section (a), the producers on a farm that elect under para4 graph (2) of that subsection to obtain agriculture risk cov5 erage shall unanimously select whether to receive agri6 culture risk coverage payments based on— 

7 (1) county coverage applicable on a covered 

8 commodity-by-covered-commodity basis; or 

9 (2) individual coverage applicable to all of the 

10 covered commodities on the farm. 

11 (c) EFFECT OF FAILURE TO MAKE UNANIMOUS

12 ELECTION.—If all the producers on a farm fail to make 

13 a unanimous election under subsection (a) for the 2019 

14 crop year— 

15 (1) the Secretary shall not make any payments 

16 with respect to the farm for the 2019 crop year 

17 under this title; and 

18 (2) the producers on the farm shall be deemed 

19 to have elected price loss coverage for all covered 

20 commodities on the farm for the 2020 through 2024 

21 crop years. 

22 (d) EFFECT OF SELECTION OF COUNTY COV23 ERAGE.—If all the producers on a farm select county cov24 erage for a covered commodity, the Secretary may not 


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1 make price loss coverage payments to the producers on 

2 the farm with respect to that covered commodity. 

3 (e) EFFECT OF SELECTION OF INDIVIDUAL COV4 ERAGE.—If all the producers on a farm select individual 

5 coverage, in addition to the selection and election under 

6 this section applying to each producer on the farm, the 

7 Secretary shall consider, for purposes of making the cal8 culations required by subsections (b)(2) and (c)(3) of sec9 tion 106, the share of the producer of all farms in the 

10 same State— 

11 (1) in which the producer has an interest; and 

12 (2) for which individual coverage has been se13 lected. 

14 (f) PROHIBITION ON RECONSTITUTION.—The Sec15 retary shall ensure that producers on a farm do not recon16 stitute the farm to void or change an election or selection 

17 made under this section. 

18 SEC. 105. PRICE LOSS COVERAGE. 

19 (a) PRICE LOSS COVERAGE PAYMENTS.—If all of the 

20 producers on a farm make the election under subsection 

21 (a) of section 104 to obtain price loss coverage or, subject 

22 to subsection (c)(1) of that section, are deemed to have 

23 made that election under subsection (c)(2) of that section, 

24 the Secretary shall make price loss coverage payments to 

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1 ered-commodity basis if the Secretary determines that, for 

2 any of the 2019 through 2024 crop years— 

3 (1) the effective price for the covered com4 modity for the crop year; is less than 

5 (2) the reference price for the covered com6 modity for the crop year. 

7 (b) EFFECTIVE PRICE.—The effective price for a cov8 ered commodity for a crop year shall be the higher of— 

9 (1) the national average market price received 

10 by producers during the 12-month marketing year 

11 for the covered commodity, as determined by the 

12 Secretary; or 

13 (2) the national average loan rate for a mar14 keting assistance loan for the covered commodity in 

15 effect for that crop year under title II. 

16 (c) PAYMENT RATE.—The payment rate shall be 

17 equal to the difference between— 

18 (1) the reference price for the covered com19 modity; and 

20 (2) the effective price determined under sub21 section (b) for the covered commodity. 

22 (d) PAYMENT AMOUNT.—If price loss coverage pay23 ments are required to be provided under this section for 

24 any of the 2019 through 2024 crop years for a covered 

25 commodity, the amount of the price loss coverage payment 


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1 to be paid to the producers on a farm for the crop year 

2 shall be equal to the product obtained by multiplying— 

3 (1) the payment rate for the covered commodity 

4 under subsection (c); 

5 (2) the payment yield for the covered com6 modity; and 

7 (3) the payment acres for the covered com8 modity. 

9 (e) TIME FOR PAYMENTS.—If the Secretary deter10 mines under this section that price loss coverage payments 

11 are required to be provided for the covered commodity, 

12 the payments shall be made beginning October 1, or as 

13 soon as practicable thereafter, after the end of the applica14 ble marketing year for the covered commodity. 

15 (f) EFFECTIVE PRICE FOR BARLEY.—In determining 

16 the effective price for barley under subsection (b), the Sec17 retary shall use the all-barley price. 

18 (g) REFERENCE PRICE FOR TEMPERATE JAPONICA

19 RICE.—The Secretary shall provide a reference price with 

20 respect to temperate japonica rice in an amount equal to 

21 115 percent of the amount established in subparagraphs 

22 (F) and (G) of section 2(17) in order to reflect price pre23 miums. 


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1 SEC. 106. AGRICULTURE RISK COVERAGE. 

2 (a) AGRICULTURE RISK COVERAGE PAYMENTS.—If 

3 all of the producers on a farm make the election under 

4 section 104(a) to obtain agriculture risk coverage, the Sec5 retary shall make agriculture risk coverage payments 

6 based on the physical location of the farm to producers 

7 on the farm if the Secretary determines that, for any of 

8 the 2019 through 2024 crop years— 

9 (1) the actual crop revenue determined under 

10 subsection (b) for the crop year; is less than 

11 (2) the agriculture risk coverage guarantee de12 termined under subsection (c) for the crop year. 

13 (b) ACTUAL CROP REVENUE.— 

14 (1) COUNTY COVERAGE.—In the case of county 

15 coverage, the amount of the actual crop revenue for 

16 a county for a crop year of a covered commodity 

17 shall be equal to the product obtained by multi18 plying— 

19 (A) the actual average county yield per 

20 planted acre for the covered commodity, as de21 termined by the Secretary; and 

22 (B) the higher of— 

23 (i) the national average market price 

24 received by producers during the 12-month 

25 marketing year for the covered commodity, 

26 as determined by the Secretary; or 


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1 (ii) the national average loan rate for 

2 a marketing assistance loan for the covered 

3 commodity in effect for that crop year 

4 under title II. 

5 (2) INDIVIDUAL COVERAGE.—In the case of in6 dividual coverage, the amount of the actual crop rev7 enue for a producer on a farm for a crop year shall 

8 be based on the share of the producer of all covered 

9 commodities planted on all farms for which indi10 vidual coverage has been selected and in which the 

11 producer has an interest, to be determined by the 

12 Secretary as follows: 

13 (A) For each covered commodity, the prod14 uct obtained by multiplying— 

15 (i) the total production of the covered 

16 commodity on those farms, as determined 

17 by the Secretary; and 

18 (ii) the higher of— 

19 (I) the national average market 

20 price received by producers during the 

21 12-month marketing year, as deter22 mined by the Secretary; or 

23 (II) the national average loan 

24 rate for a marketing assistance loan 


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1 for the covered commodity in effect 

2 for that crop year under title II. 

3 (B) The sum of the amounts determined 

4 under subparagraph (A) for all covered com5 modities on those farms. 

6 (C) The quotient obtained by dividing— 

7 (i) the amount determined under sub8 paragraph (B); by 

9 (ii) the total planted acres of all cov10 ered commodities on those farms. 

11 (c) AGRICULTURE RISK COVERAGE GUARANTEE.— 

12 (1) IN GENERAL.—The agriculture risk cov13 erage guarantee for a crop year for a covered com14 modity shall be equal to 86 percent of the bench15 mark revenue. 

16 (2) BENCHMARK REVENUE FOR COUNTY COV17 ERAGE.—In the case of county coverage, the bench18 mark revenue shall be the product obtained by mul19 tiplying— 

20 (A) subject to paragraph (4), the average 

21 historical county yield, as determined by the 

22 Secretary, for the most recent 5 crop years, ex23 cluding each of the crop years with the highest 

24 and lowest yields; and 


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1 (B) subject to paragraph (5), the national 

2 average market price received by producers dur3 ing the 12-month marketing year for the most 

4 recent 5 crop years, excluding each of the crop 

5 years with the highest and lowest prices. 

6 (3) BENCHMARK REVENUE FOR INDIVIDUAL

7 COVERAGE.—In the case of individual coverage, the 

8 benchmark revenue for a producer on a farm for a 

9 crop year shall be based on the share of the pro10 ducer of all covered commodities planted on all 

11 farms for which individual coverage has been se12 lected and in which the producer has an interest, to 

13 be determined by the Secretary as follows: 

14 (A) For each covered commodity for each 

15 of the most recent 5 crop years, the product ob16 tained by multiplying— 

17 (i) subject to paragraph (4), the yield 

18 per planted acre for the covered commodity 

19 on those farms, as determined by the Sec20 retary; and 

21 (ii) subject to paragraph (5), the na22 tional average market price received by 

23 producers during the 12-month marketing 

24 year. 


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1 (B) For each covered commodity, the aver2 age of the revenues determined under subpara3 graph (A) for the most recent 5 crop years, ex4 cluding each of the crop years with the highest 

5 and lowest revenues. 

6 (C) For each of the 2019 through 2024 

7 crop years, the sum of the amounts determined 

8 under subparagraph (B) for all covered com9 modities on those farms, but adjusted to reflect 

10 the proportion that— 

11 (i) the total number of acres planted 

12 on those farms to a covered commodity; 

13 bears to 

14 (ii) the total number of acres of all 

15 covered commodities planted on those 

16 farms. 

17 (4) YIELD CONDITIONS.—If the yield per plant18 ed acre for the covered commodity or historical 

19 county yield per planted acre for the covered com20 modity for any of the 5 most recent crop years, as 

21 determined by the Secretary, is less than 70 percent 

22 of the transitional yield, as determined by the Sec23 retary, the amounts used for any of those years in 

24 paragraph (2)(A) or (3)(A)(i) shall be 70 percent of 

25 the transitional yield. 


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1 (5) REFERENCE PRICE.—If the national aver2 age market price received by producers during the 

3 12-month marketing year for any of the 5 most re4 cent crop years is lower than the reference price for 

5 the covered commodity, the Secretary shall use the 

6 reference price for any of those years for the 

7 amounts in paragraph (2)(B) or (3)(A)(ii). 

8 (d) PAYMENT RATE.—The payment rate for a cov9 ered commodity, in the case of county coverage, or a farm, 

10 in the case of individual coverage, shall be equal to the 

11 lesser of— 

12 (1) the amount that— 

13 (A) the agriculture risk coverage guarantee 

14 for the crop year applicable under subsection 

15 (c); exceeds 

16 (B) the actual crop revenue for the crop 

17 year applicable under subsection (b); or 

18 (2) 10 percent of the benchmark revenue for 

19 the crop year applicable under subsection (c). 

20 (e) PAYMENT AMOUNT.—If agriculture risk coverage 

21 payments are required to be paid for any of the 2019 

22 through 2024 crop years, the amount of the agriculture 

23 risk coverage payment for the crop year shall be deter24 mined by multiplying— 


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1 (1) the payment rate determined under sub2 section (d); and 

3 (2) the payment acres. 

4 (f) TIME FOR PAYMENTS.—If the Secretary deter5 mines that agriculture risk coverage payments are re6 quired to be provided for the covered commodity, pay7 ments shall be made beginning October 1, or as soon as 

8 practicable thereafter, after the end of the applicable mar9 keting year for the covered commodity. 

10 (g) ADDITIONAL DUTIES OF THE SECRETARY.—In 

11 providing agriculture risk coverage, the Secretary shall— 

12 (1) to the maximum extent practicable, use all 

13 available information and analysis, including data 

14 mining, to check for anomalies in the determination 

15 of agriculture risk coverage payments; 

16 (2) to the maximum extent practicable, cal17 culate a separate actual crop revenue and agri18 culture risk coverage guarantee for irrigated and 

19 nonirrigated covered commodities; 

20 (3) in the case of individual coverage, assign an 

21 average yield for a farm on the basis of the yield his22 tory of representative farms in the State, region, or 

23 crop reporting district, as determined by the Sec24 retary, if the Secretary determines that the farm has 

25 planted acreage in a quantity that is insufficient to 


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1 calculate a representative average yield for the farm; 

2 and 

3 (4) in the case of county coverage, assign an ac4 tual or benchmark county yield for each planted acre 

5 for the crop year for the covered commodity on the 

6 basis of the yield history of representative farms in 

7 the State, region, or crop reporting district, as deter8 mined by the Secretary, if— 

9 (A) the Secretary cannot establish the ac10 tual or benchmark county yield for each planted 

11 acre for a crop year for a covered commodity in 

12 the county in accordance with subsection (b)(1) 

13 or (c)(2); or 

14 (B) the yield determined under subsection 

15 (b)(1) or (c)(2) is an unrepresentative average 

16 yield for the county, as determined by the Sec17 retary. 

18 SEC. 107. PRODUCER AGREEMENTS. 

19 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

20 (1) REQUIREMENTS.—Before the producers on 

21 a farm may receive payments under this title with 

22 respect to the farm, the producers shall agree, dur23 ing the crop year for which the payments are made 

24 and in exchange for the payments— 


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1 (A) to comply with applicable conservation 

2 requirements under subtitle B of title XII of 

3 the Food Security Act of 1985 (16 U.S.C. 3811 

4 et seq.); 

5 (B) to comply with applicable wetland pro6 tection requirements under subtitle C of title 

7 XII of that Act (16 U.S.C. 3821 et seq.); 

8 (C) to effectively control noxious weeds 

9 and otherwise maintain the land in accordance 

10 with sound agricultural practices, as determined 

11 by the Secretary; and 

12 (D) to use the land on the farm, in a 

13 quantity equal to the attributable updated base 

14 acres for the farm and any updated base acres 

15 for an agricultural or conserving use, and not 

16 for a nonagricultural commercial, industrial, or 

17 residential use, as determined by the Secretary. 

18 (2) COMPLIANCE.—The Secretary may issue 

19 such rules as the Secretary considers necessary to 

20 ensure producer compliance with paragraph (1). 

21 (3) MODIFICATION.—At the request of the 

22 transferee or owner, the Secretary may modify the 

23 requirements of this subsection if the modifications 

24 are consistent with the objectives of this subsection, 

25 as determined by the Secretary. 


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1 (b) TRANSFER OR CHANGE OF INTEREST IN

2 FARM.— 

3 (1) TERMINATION.— 

4 (A) IN GENERAL.—Except as provided in 

5 paragraph (2), a transfer of (or change in) the 

6 interest of the producers on a farm for which 

7 payments under this title are provided shall re8 sult in the termination of the payments, unless 

9 the transferee or owner of the acreage agrees to 

10 assume all obligations under subsection (a). 

11 (B) EFFECTIVE DATE.—The termination 

12 shall take effect on the date determined by the 

13 Secretary. 

14 (2) EXCEPTION.—If a producer entitled to a 

15 payment under this title dies, becomes incompetent, 

16 or is otherwise unable to receive the payment, the 

17 Secretary shall make the payment in accordance 

18 with rules issued by the Secretary. 

19 (c) ACREAGE REPORTS.—As a condition on the re20 ceipt of any benefits under this Act, the Secretary shall 

21 require producers on a farm to submit to the Secretary 

22 annual acreage reports with respect to all cropland on the 

23 farm. 

24 (d) PRODUCTION REPORTS.—As an additional condi25 tion on receiving agriculture risk coverage payments for 


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1 individual coverage, the Secretary shall require a producer 

2 on a farm to submit to the Secretary annual production 

3 reports with respect to all covered commodities produced 

4 on all farms in the same State— 

5 (1) in which the producer has an interest; and 

6 (2) for which individual coverage has been se7 lected. 

8 (e) EFFECT OF INACCURATE REPORTS.—No penalty 

9 with respect to benefits under this Act shall be assessed 

10 against a producer on a farm for an inaccurate acreage 

11 or production report unless the Secretary determines that 

12 the producer on the farm knowingly and willfully falsified 

13 the acreage or production report. 

14 (f) TENANTS AND SHARECROPPERS.—In carrying 

15 out this title, the Secretary shall provide adequate safe16 guards to protect the interests of tenants and share17 croppers. 

18 (g) SHARING OF PAYMENTS.—The Secretary shall 

19 provide for the sharing of payments made under this title 

20 among the producers on a farm on a fair and equitable 

21 basis. 


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1 TITLE II—MARKETING LOANS 

2 SEC. 201. AVAILABILITY OF NONRECOURSE MARKETING AS3 SISTANCE LOANS FOR LOAN COMMODITIES. 

4 (a) DEFINITION OF LOAN COMMODITY.—In this title, 

5 the term ‘‘loan commodity’’ means wheat, corn, grain sor6 ghum, barley, oats, upland cotton, extra long staple cot7 ton, long grain rice, medium grain rice, peanuts, soybeans, 

8 other oilseeds, graded wool, nongraded wool, mohair, 

9 honey, dry peas, lentils, small chickpeas, and large chick10 peas. 

11 (b) NONRECOURSE LOANS AVAILABLE.— 

12 (1) IN GENERAL.—For each of the 2019 

13 through 2024 crops of each loan commodity, the 

14 Secretary shall make available to producers on a 

15 farm nonrecourse marketing assistance loans for 

16 loan commodities produced on the farm. 

17 (2) TERMS AND CONDITIONS.—The marketing 

18 assistance loans shall be made under terms and con19 ditions that are prescribed by the Secretary and at 

20 the loan rate established under section 202 for the 

21 loan commodity. 

22 (c) ELIGIBLE PRODUCTION.—The producers on a 

23 farm shall be eligible for a marketing assistance loan 

24 under subsection (b) for any quantity of a loan commodity 

25 produced on the farm. 


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1 (d) COMPLIANCE WITH CONSERVATION AND WET2 LANDS REQUIREMENTS.—As a condition of the receipt of 

3 a marketing assistance loan under subsection (b), the pro4 ducer shall comply with applicable conservation require5 ments under subtitle B of title XII of the Food Security 

6 Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet7 land protection requirements under subtitle C of title XII 

8 of that Act (16 U.S.C. 3821 et seq.) during the term of 

9 the loan. 

10 (e) SPECIAL RULES FOR PEANUTS.— 

11 (1) IN GENERAL.—This subsection shall apply 

12 only to producers of peanuts. 

13 (2) OPTIONS FOR OBTAINING LOAN.—A mar14 keting assistance loan under this section, and loan 

15 deficiency payments under section 205, may be ob16 tained at the option of the producers on a farm 

17 through— 

18 (A) a designated marketing association or 

19 marketing cooperative of producers that is ap20 proved by the Secretary; or 

21 (B) the Farm Service Agency. 

22 (3) STORAGE OF LOAN PEANUTS.—As a condi23 tion on the approval by the Secretary of an indi24 vidual or entity to provide storage for peanuts for 


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1 which a marketing assistance loan is made under 

2 this section, the individual or entity shall agree— 

3 (A) to provide the storage on a nondiscrim4 inatory basis; and 

5 (B) to comply with such additional require6 ments as the Secretary considers appropriate to 

7 accomplish the purposes of this section and pro8 mote fairness in the administration of the bene9 fits of this section. 

10 (4) STORAGE, HANDLING, AND ASSOCIATED

11 COSTS.— 

12 (A) IN GENERAL.—To ensure proper stor13 age of peanuts for which a loan is made under 

14 this section, the Secretary shall pay handling 

15 and other associated costs (other than storage 

16 costs) incurred at the time at which the peanuts 

17 are placed under loan, as determined by the 

18 Secretary. 

19 (B) REDEMPTION AND FORFEITURE.—The 

20 Secretary shall— 

21 (i) require the repayment of handling 

22 and other associated costs paid under sub23 paragraph (A) for all peanuts pledged as 

24 collateral for a loan that is redeemed under 

25 this section; and 


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1 (ii) pay storage, handling, and other 

2 associated costs for all peanuts pledged as 

3 collateral that are forfeited under this sec4 tion. 

5 (5) MARKETING.—A marketing association or 

6 cooperative may market peanuts for which a loan is 

7 made under this section in any manner that con8 forms to consumer needs, including the separation of 

9 peanuts by type and quality. 

10 (6) REIMBURSABLE AGREEMENTS AND PAY11 MENT OF ADMINISTRATIVE EXPENSES.—The Sec12 retary may implement any reimbursable agreements 

13 or provide for the payment of administrative ex14 penses under this subsection only in a manner that 

15 is consistent with those activities in regard to other 

16 loan commodities. 

17 SEC. 202. LOAN RATES FOR NONRECOURSE MARKETING AS18 SISTANCE LOANS. 

19 (a) IN GENERAL.—For purposes of each of the 2019 

20 through 2024 crop years, the loan rate for a marketing 

21 assistance loan under section 201 for a loan commodity 

22 shall be equal to the following: 

23 (1) In the case of wheat, $2.94 per bushel. 

24 (2) In the case of corn, $1.95 per bushel. 


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1 (3) In the case of grain sorghum, $1.95 per 

2 bushel. 

3 (4) In the case of barley, $1.95 per bushel. 

4 (5) In the case of oats, $1.39 per bushel. 

5 (6) In the case of base quality of upland cotton, 

6 for each of the 2019 through 2024 crop years, the 

7 simple average of the adjusted prevailing world price 

8 for the 2 immediately preceding marketing years, as 

9 determined by the Secretary and announced October 

10 1 preceding the next domestic plantings, but in no 

11 case less than $0.45 per pound or more than $0.52 

12 per pound. 

13 (7) In the case of extra long staple cotton, 

14 $0.7977 per pound. 

15 (8) In the case of long grain rice, $6.50 per 

16 hundredweight. 

17 (9) In the case of medium grain rice, $6.50 per 

18 hundredweight. 

19 (10) In the case of soybeans, $5.00 per bushel. 

20 (11) In the case of other oilseeds, $10.09 per 

21 hundredweight for each of the following kinds of oil22 seeds: 

23 (A) Sunflower seed. 

24 (B) Rapeseed. 

25 (C) Canola. 


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1 (D) Safflower. 

2 (E) Flaxseed. 

3 (F) Mustard seed. 

4 (G) Crambe. 

5 (H) Sesame seed. 

6 (I) Other oilseeds designated by the Sec7 retary. 

8 (12) In the case of dry peas, $5.40 per hun9 dredweight. 

10 (13) In the case of lentils, $11.28 per hundred11 weight. 

12 (14) In the case of small chickpeas, $7.43 per 

13 hundredweight. 

14 (15) In the case of large chickpeas, $11.28 per 

15 hundredweight. 

16 (16) In the case of graded wool, $1.15 per 

17 pound. 

18 (17) In the case of nongraded wool, $0.40 per 

19 pound. 

20 (18) In the case of mohair, $4.20 per pound. 

21 (19) In the case of honey, $0.69 per pound. 

22 (20) In the case of peanuts, $355 per ton. 

23 (b) SINGLE COUNTY LOAN RATE FOR OTHER OIL24 SEEDS.—The Secretary shall establish a single loan rate 


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1 in each county for each kind of other oilseeds described 

2 in subsection (a)(11). 

3 SEC. 203. TERM OF LOANS. 

4 (a) TERM OF LOAN.—In the case of each loan com5 modity, a marketing assistance loan under section 201 

6 shall have a term of 9 months beginning on the first day 

7 of the first month after the month in which the loan is 

8 made. 

9 (b) EXTENSIONS PROHIBITED.—The Secretary may 

10 not extend the term of a marketing assistance loan for 

11 any loan commodity. 

12 SEC. 204. REPAYMENT OF LOANS. 

13 (a) GENERAL RULE.—The Secretary shall permit the 

14 producers on a farm to repay a marketing assistance loan 

15 under section 201 for a loan commodity (other than up16 land cotton, long grain rice, medium grain rice, extra long 

17 staple cotton, peanuts and confectionery and each other 

18 kind of sunflower seed (other than oil sunflower seed)) at 

19 a rate that is the lesser of— 

20 (1) the loan rate established for the commodity 

21 under section 202, plus interest (determined in ac22 cordance with section 163 of the Federal Agriculture 

23 Improvement and Reform Act of 1996 (7 U.S.C. 

24 7283)); 


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1 (2) a rate (as determined by the Secretary) 

2 that— 

3 (A) is calculated based on average market 

4 prices for the loan commodity during the pre5 ceding 30-day period; and 

6 (B) will minimize discrepancies in mar7 keting loan benefits across State boundaries 

8 and across county boundaries; or 

9 (3) a rate that the Secretary may develop using 

10 alternative methods for calculating a repayment rate 

11 for a loan commodity that the Secretary determines 

12 will— 

13 (A) minimize potential loan forfeitures; 

14 (B) minimize the accumulation of stocks of 

15 the commodity by the Federal Government; 

16 (C) minimize the cost incurred by the Fed17 eral Government in storing the commodity; 

18 (D) allow the commodity produced in the 

19 United States to be marketed freely and com20 petitively, both domestically and internationally; 

21 and 

22 (E) minimize discrepancies in marketing 

23 loan benefits across State boundaries and 

24 across county boundaries. 


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1 (b) REPAYMENT RATES FOR UPLAND COTTON, LONG

2 GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 

3 shall permit producers to repay a marketing assistance 

4 loan under section 201 for upland cotton, long grain rice, 

5 and medium grain rice at a rate that is the lesser of— 

6 (1) the loan rate established for the commodity 

7 under section 202, plus interest (determined in ac8 cordance with section 163 of the Federal Agriculture 

9 Improvement and Reform Act of 1996 (7 U.S.C. 

10 7283)); or 

11 (2) the prevailing world market price for the 

12 commodity, as determined and adjusted by the Sec13 retary in accordance with this section. 

14 (c) REPAYMENT RATES FOR EXTRA LONG STAPLE

15 COTTON.—Repayment of a marketing assistance loan for 

16 extra long staple cotton shall be at the loan rate estab17 lished for the commodity under section 202, plus interest 

18 (determined in accordance with section 163 of the Federal 

19 Agriculture Improvement and Reform Act of 1996 (7 

20 U.S.C. 7283)). 

21 (d) PREVAILING WORLD MARKET PRICE.—For pur22 poses of this section and section 207, the Secretary shall 

23 prescribe by regulation— 


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1 (1) a formula to determine the prevailing world 

2 market price for each of upland cotton, long grain 

3 rice, and medium grain rice; and 

4 (2) a mechanism by which the Secretary shall 

5 announce periodically those prevailing world market 

6 prices. 

7 (e) ADJUSTMENT OF PREVAILING WORLD MARKET

8 PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND

9 MEDIUM GRAIN RICE.— 

10 (1) RICE.—The prevailing world market price 

11 for long grain rice and medium grain rice deter12 mined under subsection (d) shall be adjusted to 

13 United States quality and location. 

14 (2) COTTON.—The prevailing world market 

15 price for upland cotton determined under subsection 

16 (d)— 

17 (A) shall be adjusted to United States 

18 quality and location, with the adjustment to in19 clude— 

20 (i) a reduction equal to any United 

21 States Premium Factor for upland cotton 

22 of a quality higher than Middling (M) 

13 23 ⁄32-inch; and 

24 (ii) the average costs to market the 

25 commodity, including average transporVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 tation costs, as determined by the Sec2 retary; and 

3 (B) may be further adjusted, during the 

4 period beginning on the date of enactment of 

5 this Act and ending on July 31, 2025, if the 

6 Secretary determines the adjustment is nec7 essary— 

8 (i) to minimize potential loan forfeit9 ures; 

10 (ii) to minimize the accumulation of 

11 stocks of upland cotton by the Federal 

12 Government; 

13 (iii) to ensure that upland cotton pro14 duced in the United States can be mar15 keted freely and competitively, both domes16 tically and internationally; and 

17 (iv) to ensure an appropriate transi18 tion between current-crop and forward19 crop price quotations, except that the Sec20 retary may use forward-crop price 

21 quotations prior to July 31 of a marketing 

22 year only if— 

23 (I) there are insufficient current24 crop price quotations; and 


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1 (II) the forward-crop price 

2 quotation is the lowest such quotation 

3 available. 

4 (3) GUIDELINES FOR ADDITIONAL ADJUST5 MENTS.—In making adjustments under this sub6 section, the Secretary shall establish a mechanism 

7 for determining and announcing the adjustments in 

8 order to avoid undue disruption in the United States 

9 market. 

10 (f) REPAYMENT RATES FOR CONFECTIONERY AND

11 OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 

12 shall permit the producers on a farm to repay a marketing 

13 assistance loan under section 201 for confectionery and 

14 each other kind of sunflower seed (other than oil sunflower 

15 seed) at a rate that is the lesser of— 

16 (1) the loan rate established for the commodity 

17 under section 202, plus interest (determined in ac18 cordance with section 163 of the Federal Agriculture 

19 Improvement and Reform Act of 1996 (7 U.S.C. 

20 7283)); or 

21 (2) the repayment rate established for oil sun22 flower seed. 

23 (g) PAYMENT OF COTTON STORAGE COSTS.—Effec24 tive for each of the 2019 through 2024 crop years, the 

25 Secretary shall make cotton storage payments available in 


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1 the same manner, and at the same rates as the Secretary 

2 provided storage payments for the 2006 crop of cotton, 

3 except that the rates shall be reduced by 10 percent. 

4 (h) REPAYMENT RATE FOR PEANUTS.—The Sec5 retary shall permit producers on a farm to repay a mar6 keting assistance loan for peanuts under section 201 at 

7 a rate that is the lesser of— 

8 (1) the loan rate established for peanuts under 

9 section 202(a)(20), plus interest (determined in ac10 cordance with section 163 of the Federal Agriculture 

11 Improvement and Reform Act of 1996 (7 U.S.C. 

12 7283)); or 

13 (2) a rate that the Secretary determines will— 

14 (A) minimize potential loan forfeitures; 

15 (B) minimize the accumulation of stocks of 

16 peanuts by the Federal Government; 

17 (C) minimize the cost incurred by the Fed18 eral Government in storing peanuts; and 

19 (D) allow peanuts produced in the United 

20 States to be marketed freely and competitively, 

21 both domestically and internationally. 

22 (i) AUTHORITY TO TEMPORARILY ADJUST REPAY23 MENT RATES.— 

24 (1) ADJUSTMENT AUTHORITY.—In the event of 

25 a severe disruption to marketing, transportation, or 


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1 related infrastructure, the Secretary may modify the 

2 repayment rate otherwise applicable under this sec3 tion for marketing assistance loans under section 

4 201 for a loan commodity. 

5 (2) DURATION.—Any adjustment made under 

6 paragraph (1) in the repayment rate for marketing 

7 assistance loans for a loan commodity shall be in ef8 fect on a short-term and temporary basis, as deter9 mined by the Secretary. 

10 SEC. 205. LOAN DEFICIENCY PAYMENTS. 

11 (a) AVAILABILITY OF LOAN DEFICIENCY PAY12 MENTS.— 

13 (1) IN GENERAL.—Except as provided in sub14 section (d), the Secretary may make loan deficiency 

15 payments available to producers on a farm that, al16 though eligible to obtain a marketing assistance loan 

17 under section 201 with respect to a loan commodity, 

18 agree to forgo obtaining the loan for the commodity 

19 in return for loan deficiency payments under this 

20 section. 

21 (2) UNSHORN PELTS, HAY, AND SILAGE.— 

22 (A) MARKETING ASSISTANCE LOANS.— 

23 Subject to subparagraph (B), nongraded wool 

24 in the form of unshorn pelts and hay and silage 

25 derived from a loan commodity are not eligible 


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1 for a marketing assistance loan under section 

2 201. 

3 (B) LOAN DEFICIENCY PAYMENT.—Effec4 tive for each of the 2019 through 2024 crop 

5 years, the Secretary may make loan deficiency 

6 payments available under this section to pro7 ducers on a farm that produce unshorn pelts or 

8 hay and silage derived from a loan commodity. 

9 (b) COMPUTATION.—A loan deficiency payment for a 

10 loan commodity or commodity referred to in subsection 

11 (a)(2) shall be equal to the product obtained by multi12 plying— 

13 (1) the payment rate determined under sub14 section (c) for the commodity; and 

15 (2) the quantity of the commodity produced by 

16 the eligible producers, excluding any quantity for 

17 which the producers obtain a marketing assistance 

18 loan under section 201. 

19 (c) PAYMENT RATE.— 

20 (1) IN GENERAL.—In the case of a loan com21 modity, the payment rate shall be the amount by 

22 which— 

23 (A) the loan rate established under section 

24 202 for the loan commodity; exceeds 


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1 (B) the rate at which a marketing assist2 ance loan for the loan commodity may be repaid 

3 under section 204. 

4 (2) UNSHORN PELTS.—In the case of unshorn 

5 pelts, the payment rate shall be the amount by 

6 which— 

7 (A) the loan rate established under section 

8 202 for ungraded wool; exceeds 

9 (B) the rate at which a marketing assist10 ance loan for ungraded wool may be repaid 

11 under section 204. 

12 (3) HAY AND SILAGE.—In the case of hay or si13 lage derived from a loan commodity, the payment 

14 rate shall be the amount by which— 

15 (A) the loan rate established under section 

16 202 for the loan commodity from which the hay 

17 or silage is derived; exceeds 

18 (B) the rate at which a marketing assist19 ance loan for the loan commodity may be repaid 

20 under section 204. 

21 (d) EXCEPTION FOR EXTRA LONG STAPLE COT22 TON.—This section shall not apply with respect to extra 

23 long staple cotton. 

24 (e) EFFECTIVE DATE FOR PAYMENT RATE DETER25 MINATION.—The Secretary shall determine the amount of 


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1 the loan deficiency payment to be made under this section 

2 to the producers on a farm with respect to a quantity of 

3 a loan commodity or commodity referred to in subsection 

4 (a)(2) using the payment rate in effect under subsection 

5 (c) as of the date the producers request the payment. 

6 SEC. 206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY7 MENTS FOR GRAZED ACREAGE. 

8 (a) ELIGIBLE PRODUCERS.— 

9 (1) IN GENERAL.—Effective for each of the 

10 2019 through 2024 crop years, in the case of a pro11 ducer that would be eligible for a loan deficiency 

12 payment under section 205 for wheat, barley, or 

13 oats, but that elects to use acreage planted to the 

14 wheat, barley, or oats for the grazing of livestock, 

15 the Secretary shall make a payment to the producer 

16 under this section if the producer enters into an 

17 agreement with the Secretary to forgo any other 

18 harvesting of the wheat, barley, or oats on that acre19 age. 

20 (2) GRAZING OF TRITICALE ACREAGE.—Effec21 tive for each of the 2019 through 2024 crop years, 

22 with respect to a producer on a farm that uses acre23 age planted to triticale for the grazing of livestock, 

24 the Secretary shall make a payment to the producer 

25 under this section if the producer enters into an 


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1 agreement with the Secretary to forgo any other 

2 harvesting of triticale on that acreage. 

3 (b) PAYMENT AMOUNT.— 

4 (1) IN GENERAL.—The amount of a payment 

5 made under this section to a producer on a farm de6 scribed in subsection (a)(1) shall be equal to the 

7 amount determined by multiplying— 

8 (A) the loan deficiency payment rate deter9 mined under section 205(c) in effect, as of the 

10 date of the agreement, for the county in which 

11 the farm is located; and 

12 (B) the payment quantity determined by 

13 multiplying— 

14 (i) the quantity of the grazed acreage 

15 on the farm with respect to which the pro16 ducer elects to forgo harvesting of wheat, 

17 barley, or oats; and 

18 (ii)(I) the payment yield in effect for 

19 the calculation of price loss coverage with 

20 respect to that loan commodity on the 

21 farm; 

22 (II) in the case of a farm for which 

23 agriculture risk coverage is elected under 

24 section 106(a), the payment yield that 

25 would otherwise be in effect with respect to 


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1 that loan commodity on the farm in the 

2 absence of that election; or 

3 (III) in the case of a farm for which 

4 no payment yield is otherwise established 

5 for that loan commodity on the farm, an 

6 appropriate yield established by the Sec7 retary in a manner consistent with section 

8 102(a). 

9 (2) GRAZING OF TRITICALE ACREAGE.—The 

10 amount of a payment made under this section to a 

11 producer on a farm described in subsection (a)(2) 

12 shall be equal to the amount determined by multi13 plying— 

14 (A) the loan deficiency payment rate deter15 mined under section 205(c) in effect for wheat, 

16 as of the date of the agreement, for the county 

17 in which the farm is located; and 

18 (B) the payment quantity determined by 

19 multiplying— 

20 (i) the quantity of the grazed acreage 

21 on the farm with respect to which the pro22 ducer elects to forgo harvesting of triticale; 

23 and 


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1 (ii)(I) the payment yield in effect for 

2 the calculation of price loss coverage with 

3 respect to wheat on the farm; 

4 (II) in the case of a farm for which 

5 agriculture risk coverage is elected under 

6 section 106(a), the payment yield that 

7 would otherwise be in effect for wheat on 

8 the farm in the absence of that election; or 

9 (III) in the case of a farm for which 

10 no payment yield is otherwise established 

11 for wheat on the farm, an appropriate 

12 yield established by the Secretary in a 

13 manner consistent with section 102(a). 

14 (c) TIME, MANNER, AND AVAILABILITY OF PAY15 MENT.— 

16 (1) TIME AND MANNER.—A payment under this 

17 section shall be made at the same time and in the 

18 same manner as loan deficiency payments are made 

19 under section 205. 

20 (2) AVAILABILITY.— 

21 (A) IN GENERAL.—The Secretary shall es22 tablish an availability period for the payments 

23 authorized by this section. 

24 (B) CERTAIN COMMODITIES.—In the case 

25 of wheat, barley, and oats, the availability peVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 riod shall be consistent with the availability pe2 riod for the commodity established by the Sec3 retary for marketing assistance loans under this 

4 title. 

5 (d) PROHIBITION ON CROP INSURANCE INDEMNITY

6 OR NONINSURED CROP ASSISTANCE.—A 2019 through 

7 2024 crop of wheat, barley, oats, or triticale planted on 

8 acreage that a producer elects, in the agreement required 

9 by subsection (a), to use for the grazing of livestock in 

10 lieu of any other harvesting of the crop shall not be eligible 

11 for an indemnity under a policy or plan of insurance au12 thorized under the Federal Crop Insurance Act (7 U.S.C. 

13 1501 et seq.) or noninsured crop assistance under section 

14 196 of the Federal Agriculture Improvement and Reform 

15 Act of 1996 (7 U.S.C. 7333). 

16 SEC. 207. SPECIAL MARKETING LOAN PROVISIONS FOR UP17 LAND COTTON. 

18 (a) SPECIAL IMPORT QUOTA.— 

19 (1) DEFINITION OF SPECIAL IMPORT QUOTA.— 

20 In this subsection, the term ‘‘special import quota’’ 

21 means a quantity of imports that is not subject to 

22 the overquota tariff rate of a tariff rate quota. 

23 (2) ESTABLISHMENT.— 


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1 (A) IN GENERAL.—The President shall 

2 carry out an import quota program, as provided 

3 in this subsection. 

4 (B) PROGRAM REQUIREMENTS.—Whenever 

5 the Secretary determines and announces that 

6 for any consecutive 4-week period, the Friday 

7 through Thursday average price quotation for 

8 the lowest-priced United States growth, as 

quoted for Middling (M) 13 9 ⁄32-inch cotton, deliv10 ered to a definable and significant international 

11 market, as determined by the Secretary, ex12 ceeds the prevailing world market price, there 

13 shall immediately be in effect a special import 

14 quota. 

15 (3) QUANTITY.—The quota shall be equal to 

16 the consumption during a 1-week period of cotton by 

17 domestic mills at the seasonally adjusted average 

18 rate of the most recent 3 months for which official 

19 data of the Department of Agriculture are available 

20 or, in the absence of sufficient data, as estimated by 

21 the Secretary. 

22 (4) APPLICATION.—The quota shall apply to 

23 upland cotton— 


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1 (A) purchased not later than 90 days after 

2 the date of the announcement of the Secretary 

3 under paragraph (2); and 

4 (B) entered into the United States not 

5 later than 180 days after that date. 

6 (5) OVERLAP.—A special quota period may be 

7 established that overlaps any existing quota period if 

8 required by paragraph (2), except that a special 

9 quota period may not be established under this sub10 section if a quota period has been established under 

11 subsection (b). 

12 (6) PREFERENTIAL TARIFF TREATMENT.—The 

13 quantity under a special import quota shall be con14 sidered to be an in-quota quantity for purposes of— 

15 (A) section 213(d) of the Caribbean Basin 

16 Economic Recovery Act (19 U.S.C. 2703(d)); 

17 (B) section 204 of the Andean Trade Pref18 erence Act (19 U.S.C. 3203); 

19 (C) section 503(d) of the Trade Act of 

20 1974 (19 U.S.C. 2463(d)); and 

21 (D) General Note 3(a)(iv) to the Har22 monized Tariff Schedule. 

23 (7) LIMITATION.—The quantity of cotton en24 tered into the United States during any marketing 

25 year under the special import quota established 


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1 under this subsection may not exceed the equivalent 

2 of 10 weeks of consumption of upland cotton by do3 mestic mills at the seasonally adjusted average rate 

4 of the 3 months immediately preceding the first spe5 cial import quota established in any marketing year. 

6 (b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND

7 COTTON.— 

8 (1) DEFINITIONS.—In this subsection: 

9 (A) DEMAND.—The term ‘‘demand’’ 

10 means— 

11 (i) the average seasonally adjusted an12 nual rate of domestic mill consumption of 

13 cotton during the most recent 3 months 

14 for which official data of the Department 

15 of Agriculture are available or, in the ab16 sence of sufficient data, as estimated by 

17 the Secretary; and 

18 (ii) the larger of— 

19 (I) average exports of upland cot20 ton during the preceding 6 marketing 

21 years; or 

22 (II) cumulative exports of upland 

23 cotton plus outstanding export sales 

24 for the marketing year in which the 

25 quota is established. 


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1 (B) LIMITED GLOBAL IMPORT QUOTA.— 

2 The term ‘‘limited global import quota’’ means 

3 a quantity of imports that is not subject to the 

4 overquota tariff rate of a tariff rate quota. 

5 (C) SUPPLY.—The term ‘‘supply’’ means, 

6 using the latest official data of the Department 

7 of Agriculture— 

8 (i) the carryover of upland cotton at 

9 the beginning of the marketing year (ad10 justed to 480-pound bales) in which the 

11 quota is established; 

12 (ii) production of the current crop; 

13 and 

14 (iii) imports to the latest date avail15 able during the marketing year. 

16 (2) PROGRAM.—The President shall carry out 

17 an import quota program that provides that when18 ever the Secretary determines and announces that 

19 the average price of the base quality of upland cot20 ton, as determined by the Secretary, in the des21 ignated spot markets for a month exceeded 130 per22 cent of the average price of the quality of cotton in 

23 the markets for the preceding 36 months, notwith24 standing any other provision of law, there shall imVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 mediately be in effect a limited global import quota 

2 subject to the following conditions: 

3 (A) QUANTITY.—The quantity of the quota 

4 shall be equal to 21 days of domestic mill con5 sumption of upland cotton at the seasonally ad6 justed average rate of the most recent 3 months 

7 for which official data of the Department of Ag8 riculture are available or, in the absence of suf9 ficient data, as estimated by the Secretary. 

10 (B) QUANTITY IF PRIOR QUOTA.—If a 

11 quota has been established under this sub12 section during the preceding 12 months, the 

13 quantity of the quota next established under 

14 this subsection shall be the smaller of 21 days 

15 of domestic mill consumption calculated under 

16 subparagraph (A) or the quantity required to 

17 increase the supply to 130 percent of the de18 mand. 

19 (C) PREFERENTIAL TARIFF TREAT20 MENT.—The quantity under a limited global 

21 import quota shall be considered to be an in22 quota quantity for purposes of— 

23 (i) section 213(d) of the Caribbean 

24 Basin Economic Recovery Act (19 U.S.C. 

25 2703(d)); 


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1 (ii) section 204 of the Andean Trade 

2 Preference Act (19 U.S.C. 3203); 

3 (iii) section 503(d) of the Trade Act 

4 of 1974 (19 U.S.C. 2463(d)); and 

5 (iv) General Note 3(a)(iv) to the Har6 monized Tariff Schedule. 

7 (D) QUOTA ENTRY PERIOD.—When a 

8 quota is established under this subsection, cot9 ton may be entered under the quota during the 

10 90-day period beginning on the date the quota 

11 is established by the Secretary. 

12 (3) NO OVERLAP.—Notwithstanding paragraph 

13 (2), a quota period may not be established that over14 laps an existing quota period or a special quota pe15 riod established under subsection (a). 

16 (c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS

17 OF UPLAND COTTON.— 

18 (1) IN GENERAL.—Subject to paragraph (2), 

19 the Secretary shall, on a monthly basis, make eco20 nomic adjustment assistance available to domestic 

21 users of upland cotton in the form of payments for 

22 all documented use of that upland cotton during the 

23 previous monthly period regardless of the origin of 

24 the upland cotton. 


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1 (2) VALUE OF ASSISTANCE.—The value of the 

2 assistance provided under paragraph (1) shall be 3 

3 cents per pound. 

4 (3) ALLOWABLE PURPOSES.—Economic adjust5 ment assistance under this subsection shall be made 

6 available only to domestic users of upland cotton 

7 that certify that the assistance shall be used only to 

8 acquire, construct, install, modernize, develop, con9 vert, or expand land, plant, buildings, equipment, fa10 cilities, or machinery. 

11 (4) REVIEW OR AUDIT.—The Secretary may 

12 conduct such review or audit of the records of a do13 mestic user under this subsection as the Secretary 

14 determines necessary to carry out this subsection. 

15 (5) IMPROPER USE OF ASSISTANCE.—If the 

16 Secretary determines, after a review or audit of the 

17 records of the domestic user, that economic adjust18 ment assistance under this subsection was not used 

19 for the purposes specified in paragraph (3), the do20 mestic user shall be— 

21 (A) liable for the repayment of the assist22 ance to the Secretary, plus interest, as deter23 mined by the Secretary; and 


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1 (B) ineligible to receive assistance under 

2 this subsection for a period of 1 year following 

3 the determination of the Secretary. 

4 SEC. 208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 

5 LONG STAPLE COTTON. 

6 (a) COMPETITIVENESS PROGRAM.—Notwithstanding 

7 any other provision of law, during the period beginning 

8 on the date of enactment of this Act and ending on July 

9 31, 2025, the Secretary shall carry out a program— 

10 (1) to maintain and expand the domestic use of 

11 extra long staple cotton produced in the United 

12 States; 

13 (2) to increase exports of extra long staple cot14 ton produced in the United States; and 

15 (3) to ensure that extra long staple cotton pro16 duced in the United States remains competitive in 

17 world markets. 

18 (b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 

19 the program, the Secretary shall make payments available 

20 under this section whenever— 

21 (1) for a consecutive 4-week period, the world 

22 market price for the lowest priced competing growth 

23 of extra long staple cotton (adjusted to United 

24 States quality and location and for other factors af25 fecting the competitiveness of that cotton), as deterVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 mined by the Secretary, is below the prevailing 

2 United States price for a competing growth of extra 

3 long staple cotton; and 

4 (2) the lowest priced competing growth of extra 

5 long staple cotton (adjusted to United States quality 

6 and location and for other factors affecting the com7 petitiveness of that cotton), as determined by the 

8 Secretary, is less than 134 percent of the loan rate 

9 for extra long staple cotton. 

10 (c) ELIGIBLE RECIPIENTS.—The Secretary shall 

11 make payments available under this section to domestic 

12 users of extra long staple cotton produced in the United 

13 States and exporters of extra long staple cotton produced 

14 in the United States that enter into an agreement with 

15 the Commodity Credit Corporation to participate in the 

16 program under this section. 

17 (d) PAYMENT AMOUNT.—Payments under this sec18 tion shall be based on the product obtained by multi19 plying— 

20 (1) the difference in the prices referred to in 

21 subsection (b)(1) during the fourth week of the con22 secutive 4-week period; and 

23 (2) the amount of documented purchases by do24 mestic users and sales for export by exporters made 

25 in the week following that consecutive 4-week period. 


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1 SEC. 209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 

2 MOISTURE FEED GRAINS AND SEED COTTON. 

3 (a) HIGH MOISTURE FEED GRAINS.— 

4 (1) DEFINITION OF HIGH MOISTURE STATE.— 

5 In this subsection, the term ‘‘high moisture state’’ 

6 means corn or grain sorghum having a moisture con7 tent in excess of Commodity Credit Corporation 

8 standards for marketing assistance loans made by 

9 the Secretary under section 201. 

10 (2) RECOURSE LOANS AVAILABLE.—For each of 

11 the 2019 through 2024 crops of corn and grain sor12 ghum, the Secretary shall make available recourse 

13 loans, as determined by the Secretary, to producers 

14 on a farm that— 

15 (A) normally harvest all or a portion of 

16 their crop of corn or grain sorghum in a high 

17 moisture state; 

18 (B) present— 

19 (i) certified scale tickets from an in20 spected, certified commercial scale, includ21 ing a licensed warehouse, feedlot, feed mill, 

22 distillery, or other similar entity approved 

23 by the Secretary, pursuant to regulations 

24 issued by the Secretary; or 

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1 gions of the United States, as determined 

2 by the Secretary, that do not have certified 

3 commercial scales from which certified 

4 scale tickets may be obtained within rea5 sonable proximity of harvest operation; 

6 (C) certify that the producers on the farm 

7 were the owners of the feed grain at the time 

8 of delivery to, and that the quantity to be 

9 placed under loan under this subsection was in 

10 fact harvested on the farm and delivered to, a 

11 feedlot, feed mill, or commercial or on-farm 

12 high-moisture storage facility, or to a facility 

13 maintained by the users of corn and grain sor14 ghum in a high moisture state; and 

15 (D) comply with deadlines established by 

16 the Secretary for harvesting the corn or grain 

17 sorghum and submit applications for loans 

18 under this subsection within deadlines estab19 lished by the Secretary. 

20 (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 

21 A loan under this subsection shall be made on a 

22 quantity of corn or grain sorghum of the same crop 

23 acquired by the producer in a quantity equal to the 

24 product obtained by multiplying— 


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1 (A) the acreage of the corn or grain sor2 ghum in a high moisture state harvested on the 

3 farm of the producer; and 

4 (B) the lower of— 

5 (i) the payment yield in effect for the 

6 calculation of price loss coverage, or the 

7 payment yield deemed to be in effect or es8 tablished under subclause (II) or (III) of 

9 section 206(b)(1)(B)(ii), with respect to 

10 corn or grain sorghum on a field that is 

11 similar to the field from which the corn or 

12 grain sorghum referred to in subparagraph 

13 (A) was obtained; or 

14 (ii) the actual yield of corn or grain 

15 sorghum on a field, as determined by the 

16 Secretary, that is similar to the field from 

17 which the corn or grain sorghum referred 

18 to in subparagraph (A) was obtained. 

19 (b) RECOURSE LOANS AVAILABLE FOR SEED COT20 TON.—For each of the 2019 through 2024 crops of upland 

21 cotton and extra long staple cotton, the Secretary shall 

22 make available recourse seed cotton loans, as determined 

23 by the Secretary, on any production. 

24 (c) REPAYMENT RATES.—Repayment of a recourse 

25 loan made under this section shall be at the loan rate esVerDate Sep 11 2014 03:55 Jun 02, 2017 Jkt 069200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S1259.IS S1259

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1 tablished for the commodity by the Secretary, plus interest 

2 (determined in accordance with section 163 of the Federal 

3 Agriculture Improvement and Reform Act of 1996 (7 

4 U.S.C. 7283)). 

5 SEC. 210. ADJUSTMENTS OF LOANS. 

6 (a) ADJUSTMENT AUTHORITY.—Subject to sub7 section (e), the Secretary may make appropriate adjust8 ments in the loan rates for any loan commodity (other 

9 than cotton) for differences in grade, type, quality, loca10 tion, and other factors. 

11 (b) MANNER OF ADJUSTMENT.—The adjustments 

12 under subsection (a) shall, to the maximum extent prac13 ticable, be made in such a manner that the average loan 

14 level for the commodity will, on the basis of the anticipated 

15 incidence of the factors, be equal to the level of support 

16 determined in accordance with this title. 

17 (c) ADJUSTMENT ON COUNTY BASIS.— 

18 (1) IN GENERAL.—The Secretary may establish 

19 loan rates for a crop for producers in individual 

20 counties in a manner that results in the lowest loan 

21 rate being 95 percent of the national average loan 

22 rate, if those loan rates do not result in an increase 

23 in outlays. 


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1 (2) PROHIBITION.—Adjustments under this 

2 subsection shall not result in an increase in the na3 tional average loan rate for any year. 

4 (d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 

5 (1) IN GENERAL.—The Secretary may make 

6 appropriate adjustments in the loan rate for cotton 

7 for differences in quality factors. 

8 (2) TYPES OF ADJUSTMENTS.—Loan rate ad9 justments under paragraph (1) may include— 

10 (A) the use of non-spot market price data, 

11 in addition to spot market price data, that 

12 would enhance the accuracy of the price infor13 mation used in determining quality adjustments 

14 under this subsection; 

15 (B) adjustments in the premiums or dis16 counts associated with upland cotton with a sta17 ple length of 33 or above due to micronaire 

18 with the goal of eliminating any unnecessary ar19 tificial splits in the calculations of the pre20 miums or discounts; and 

21 (C) such other adjustments as the Sec22 retary determines appropriate, after consulta23 tions conducted in accordance with paragraph 

24 (3). 

25 (3) CONSULTATION WITH PRIVATE SECTOR.— 


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1 (A) PRIOR TO REVISION.—In making ad2 justments to the loan rate for cotton (including 

3 any review of the adjustments) as provided in 

4 this subsection, the Secretary shall consult with 

5 representatives of the United States cotton in6 dustry. 

7 (B) INAPPLICABILITY OF FEDERAL ADVI8 SORY COMMITTEE ACT.—The Federal Advisory 

9 Committee Act (5 U.S.C. App.) shall not apply 

10 to consultations under this subsection. 

11 (4) REVIEW OF ADJUSTMENTS.—The Secretary 

12 may review the operation of the upland cotton qual13 ity adjustments implemented pursuant to this sub14 section and may make further adjustments to the 

15 administration of the loan program for upland cot16 ton, by revoking or revising any adjustment taken 

17 under paragraph (2). 

18 (e) RICE.—The Secretary shall not make adjust19 ments in the loan rates for long grain rice and medium 

20 grain rice, except for differences in grade and quality (in21 cluding milling yields). 

22 TITLE III—ADMINISTRATION 

23 SEC. 301. ADMINISTRATION GENERALLY. 

24 (a) USE OF COMMODITY CREDIT CORPORATION.— 

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1 ties of the Commodity Credit Corporation to carry out this 

2 Act. 

3 (b) DETERMINATIONS BY SECRETARY.—A deter4 mination made by the Secretary under this Act shall be 

5 final and conclusive. 

6 (c) REGULATIONS.— 

7 (1) IN GENERAL.—Except as otherwise pro8 vided in this subsection, not later than 90 days after 

9 the date of enactment of this Act, the Secretary and 

10 the Commodity Credit Corporation, as appropriate, 

11 shall promulgate such regulations as are necessary 

12 to implement this Act and the amendments made by 

13 this Act. 

14 (2) PROCEDURE.—The promulgation of the reg15 ulations and administration of this Act and the 

16 amendments made by this Act shall be made without 

17 regard to— 

18 (A) the notice and comment provisions of 

19 section 553 of title 5, United States Code; 

20 (B) chapter 35 of title 44, United States 

21 Code (commonly known as the ‘‘Paperwork Re22 duction Act’’); and 

23 (C) the Statement of Policy of the Sec24 retary of Agriculture effective July 24, 1971 

25 (36 Fed. Reg. 13804), relating to notices of 


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1 proposed rulemaking and public participation in 

2 rulemaking. 

3 (3) CONGRESSIONAL REVIEW OF AGENCY RULE4 MAKING.—In carrying out this subsection, the Sec5 retary shall use the authority provided under section 

6 808 of title 5, United States Code. 

7 (d) ADJUSTMENT AUTHORITY RELATED TO TRADE

8 AGREEMENTS COMPLIANCE.— 

9 (1) REQUIRED DETERMINATION; ADJUST10 MENT.—If the Secretary determines that expendi11 tures under this Act that are subject to the total al12 lowable domestic support levels under the Uruguay 

13 Round Agreements (as defined in section 2 of the 

14 Uruguay Round Agreements Act (19 U.S.C. 3501)) 

15 will exceed those allowable levels for any applicable 

16 reporting period, the Secretary shall, to the max17 imum extent practicable, make adjustments in the 

18 amount of those expenditures during that period to 

19 ensure that those expenditures do not exceed the al20 lowable levels. 

21 (2) CONGRESSIONAL NOTIFICATION.—Before 

22 making any adjustment under paragraph (1), the 

23 Secretary shall submit to the Committee on Agri24 culture of the House of Representatives and the 

25 Committee on Agriculture, Nutrition, and Forestry 


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1 of the Senate a report describing the determination 

2 made under that paragraph and the extent of the 

3 adjustment to be made. 

4 SEC. 302. SUSPENSION OF PERMANENT PRICE SUPPORT 

5 AUTHORITY. 

6 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.— 

7 The following provisions of the Agricultural Adjustment 

8 Act of 1938 shall not be applicable to the 2019 through 

9 2024 crops of covered commodities and cotton: 

10 (1) Parts II through V of subtitle B of title III 

11 (7 U.S.C. 1326 et seq.). 

12 (2) In the case of upland cotton, section 377 (7 

13 U.S.C. 1377). 

14 (3) Subtitle D of title III (7 U.S.C. 1379a et 

15 seq.). 

16 (4) Title IV (7 U.S.C. 1401 et seq.). 

17 (b) AGRICULTURAL ACT OF 1949.—The following 

18 provisions of the Agricultural Act of 1949 shall not be ap19 plicable to the 2019 through 2024 crops of covered com20 modities and cotton: 

21 (1) Section 101 (7 U.S.C. 1441). 

22 (2) Section 103(a) (7 U.S.C. 1444(a)). 

23 (3) Section 105 (7 U.S.C. 1444b). 

24 (4) Section 107 (7 U.S.C. 1445a). 

25 (5) Section 110 (7 U.S.C. 1445e). 


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1 (6) Section 112 (7 U.S.C. 1445g). 

2 (7) Section 115 (7 U.S.C. 1445k). 

3 (8) Section 201 (7 U.S.C. 1446). 

4 (9) Title III (7 U.S.C. 1447 et seq.). 

5 (10) Title IV (7 U.S.C. 1421 et seq.), other 

6 than sections 404, 412, and 416 (7 U.S.C. 1424, 

7 1429, and 1431). 

8 (11) Title V (7 U.S.C. 1461 et seq.). 

9 (12) Title VI (7 U.S.C. 1471 et seq.). 

10 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 

11 The joint resolution entitled ‘‘A joint resolution relating 

12 to corn and wheat marketing quotas under the Agricul13 tural Adjustment Act of 1938, as amended’’, approved 

14 May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be 

15 applicable to the crops of wheat planted for harvest in the 

16 calendar years 2019 through 2024. 

17 SEC. 303. CONFORMING AMENDMENTS. 

18 Sections 1207 and 1208 of the Agricultural Act of 

19 2014 (7 U.S.C. 9037, 9038) are repealed. 

Æ 


SSpencer on DSKBBV9HB2PROD with BILLS