II 

112TH CONGRESS 

2D SESSION S. 2261 

To amend the Food, Conservation, and Energy Act of 2008 to establish 

a revenue loss assistance program, repeal the direct payment and ACRE 

programs, extend commodity programs through 2017, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2012 

Mr. CONRAD (for himself, Mr. HOEVEN, and Mr. BAUCUS) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Food, Conservation, and Energy Act of 2008 

to establish a revenue loss assistance program, repeal 

the direct payment and ACRE programs, extend commodity programs through 2017, 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) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Revenue Loss Assistance and Crop Insurance Enhance6 ment Act of 2012’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Revenue loss assistance program and counter-cyclical program. 

Sec. 3. Marketing assistance loans and loan deficiency payments. 

Sec. 4. Extension of expiring authorities. 

Sec. 5. Repeal of direct payment and ACRE programs. 

Sec. 6. Supplemental coverage option. 

Sec. 7. Catastrophic risk protection premium reduction. 

Sec. 8. Adjustment in actual production history to establish insurable yields. 

Sec. 9. Supplemental agricultural disaster assistance. 

Sec. 10. Budgetary effects. 

Sec. 11. Effective date. 

3 SEC. 2. REVENUE LOSS ASSISTANCE PROGRAM AND 

4 COUNTER-CYCLICAL PROGRAM. 

5 (a) IN GENERAL.—Title I of the Food, Conservation, 

6 and Energy Act of 2008 is amended— 

7 (1) by striking section 1001 (7 U.S.C. 8702); 

8 (2) by striking subtitles A and C (7 U.S.C. 

9 8711 et seq.); and 

10 (3) by inserting before subtitle B (7 U.S.C. 

11 8731 et seq.) the following: 

12 ‘‘SEC. 1001. DEFINITIONS. 

13 ‘‘In this title: 

14 ‘‘(1) BASE ACRES.—The term ‘base acres’, with 

15 respect to a covered commodity on a farm, means 

16 the number of acres established under section 1101 

17 or 1302 of the Farm Security and Rural Investment 

18 Act of 2002 (7 U.S.C. 7911, 7952) or section 1101, 

19 1108, or 1302 of this Act, as in effect on September 


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1 30, 2012, subject to any adjustment under section 

2 1101. 

3 ‘‘(2) COUNTER-CYCLICAL PAYMENT.—The term 

4 ‘counter-cyclical payment’ means a payment made to 

5 producers on a farm under section 1104. 

6 ‘‘(3) COUNTER-CYCLICAL PAYMENT ACRES.— 

7 The term ‘counter-cyclical payment acres’ means 75 

8 percent of the base acres of a covered commodity on 

9 a farm for which counter-cyclical payments are 

10 made. 

11 ‘‘(4) COVERED COMMODITY.—The term ‘cov12 ered commodity’ means wheat, corn, grain sorghum, 

13 barley, oats, upland cotton, long grain rice, medium 

14 grain rice, pulse crops, peanuts, soybeans, and other 

15 oilseeds. 

16 ‘‘(5) 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 1104 to determine whether 

20 counter-cyclical payments are required to be made 

21 for that crop year. 

22 ‘‘(6) 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 

11 authorized by the Secretary, ginned on another 

12 type gin for experimental purposes. 

13 ‘‘(7) LOAN COMMODITY.—The term ‘loan com14 modity’ means wheat, corn, grain sorghum, barley, 

15 oats, upland cotton, extra long staple cotton, long 

16 grain rice, medium grain rice, soybeans, other oil17 seeds, graded wool, nongraded wool, mohair, honey, 

18 dry peas, lentils, peanuts, small chickpeas, and large 

19 chickpeas. 

20 ‘‘(8) MEDIUM GRAIN RICE.—The term ‘medium 

21 grain rice’ includes short grain rice. 

22 ‘‘(9) OTHER OILSEED.—The term ‘other oil23 seed’ means a crop of sunflower seed, rapeseed, 

24 canola, safflower, flaxseed, mustard seed, crambe, 


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1 sesame seed, or any oilseed designated by the Sec2 retary. 

3 ‘‘(10) PAYMENT YIELD.—The term ‘payment 

4 yield’ means the yield established for counter-cyclical 

5 payments under section 1102 or 1302 of the Farm 

6 Security and Rural Investment Act of 2002 (7 

7 U.S.C. 7912, 7952), section 1102 of 1302 of this 

8 Act, as in effect on September 30, 2012, or section 

9 1102 or 1106, or for revenue loss assistance pro10 gram payments under section 1103, for a farm for 

11 a covered commodity. 

12 ‘‘(11) PRODUCER.— 

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

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

15 sharecropper that shares in the risk of pro16 ducing a crop and is entitled to share in the 

17 crop available for marketing from the farm, or 

18 would have shared had the crop been produced. 

19 ‘‘(B) HYBRID SEED.—In determining 

20 whether a grower of hybrid seed is a producer, 

21 the Secretary shall— 

22 ‘‘(i) not take into consideration the 

23 existence of a hybrid seed contract; and 

24 ‘‘(ii) ensure that program require25 ments do not adversely affect the ability of 


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1 the grower to receive a payment under this 

2 title. 

3 ‘‘(12) PULSE CROP.—The term ‘pulse crop’ 

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

5 chickpeas. 

6 ‘‘(13) REVENUE LOSS ASSISTANCE PROGRAM

7 PAYMENT.—The term ‘revenue loss assistance pro8 gram payment’ means a payment made to producers 

9 on a farm under section 1103. 

10 ‘‘(14) STATE.—The term ‘State’ means— 

11 ‘‘(A) a State; 

12 ‘‘(B) the District of Columbia; and 

13 ‘‘(C) the Commonwealth of Puerto Rico. 

14 ‘‘(15) TARGET PRICE.—The term ‘target price’ 

15 means the price per bushel, pound, or hundred16 weight (or other appropriate unit) of a covered com17 modity used to determine the payment rate for 

18 counter-cyclical payments. 

19 ‘‘(16) UNITED STATES.—The term ‘United 

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

21 all of the States. 

22 ‘‘(17) UNITED STATES PREMIUM FACTOR.—The 

23 term ‘United States Premium Factor’ means the 

24 percentage by which the difference in the United 

25 States loan schedule premiums for Strict Middling 


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(SM) 11 1 ⁄8-inch upland cotton and for Middling (M) 

13 2 ⁄32-inch upland cotton exceeds the difference in the 

3 applicable premiums for comparable international 

4 qualities. 

5 ‘‘Subtitle A—Revenue Loss Assist6 ance Program and Counter-Cy7 clical Program 

8 ‘‘SEC. 1101. BASE ACRES. 

9 ‘‘(a) ADJUSTMENT OF BASE ACRES.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall provide 

11 for an adjustment, as appropriate, in the base acres 

12 for covered commodities for a farm whenever any of 

13 the following circumstances occurs: 

14 ‘‘(A) A conservation reserve contract en15 tered into under section 1231 of the Food Secu16 rity Act of 1985 (16 U.S.C. 3831) with respect 

17 to the farm expires or is voluntarily terminated, 

18 or was terminated or expired during the period 

19 beginning on October 1, 2007, and ending on 

20 the date of enactment of this Act. 

21 ‘‘(B) Cropland is released from coverage 

22 under a conservation reserve contract by the 

23 Secretary, or was released during the period be24 ginning on October 1, 2007, and ending on the 

25 date of enactment of this Act. 


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1 ‘‘(C) The producer has eligible oilseed 

2 acreage as the result of the Secretary desig3 nating additional oilseeds, which shall be deter4 mined in the same manner as eligible oilseed 

5 acreage under section 1101(a)(2) of the Farm 

6 Security and Rural Investment Act of 2002 (7 

7 U.S.C. 7911(a)(2)). 

8 ‘‘(2) SPECIAL CONSERVATION RESERVE ACRE9 AGE PAYMENT RULES.—For the crop year in which 

10 a base acres adjustment under subparagraph (A) or 

11 (B) of paragraph (1) is first made, the owner of the 

12 farm shall elect to receive either revenue loss assist13 ance program payments and counter-cyclical pay14 ments with respect to the acreage added to the farm 

15 under this subsection or a prorated payment under 

16 the conservation reserve contract, but not both. 

17 ‘‘(b) PREVENTION OF EXCESS BASE ACRES.— 

18 ‘‘(1) REQUIRED REDUCTION.—If the sum of the 

19 base acres for a farm, together with the acreage de20 scribed in paragraph (2) exceeds the actual cropland 

21 acreage of the farm, the Secretary shall reduce the 

22 base acres for 1 or more covered commodities for the 

23 farm so that the sum of the base acres and acreage 

24 described in paragraph (2) does not exceed the ac25 tual cropland acreage of the farm. 


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1 ‘‘(2) OTHER ACREAGE.—For purposes of para2 graph (1), the Secretary shall include the following: 

3 ‘‘(A) Any acreage on the farm enrolled in 

4 the conservation reserve program or wetlands 

5 reserve program under chapter 1 of subtitle D 

6 of title XII of the Food Security Act of 1985 

7 (16 U.S.C. 3830 et seq.). 

8 ‘‘(B) Any other acreage on the farm en9 rolled in a Federal conservation program for 

10 which payments are made in exchange for not 

11 producing an agricultural commodity on the 

12 acreage. 

13 ‘‘(C) If the Secretary designates additional 

14 oilseeds, any eligible oilseed acreage, which shall 

15 be determined in the same manner as eligible 

16 oilseed acreage under section 1101(a)(2) of the 

17 Farm Security and Rural Investment Act of 

18 2002 (7 U.S.C. 7911(a)(2)). 

19 ‘‘(3) SELECTION OF ACRES.—The Secretary 

20 shall give the owner of the farm the opportunity to 

21 select the base acres for a covered commodity for the 

22 farm against which the reduction required by para23 graph (1) will be made. 

24 ‘‘(4) EXCEPTION FOR DOUBLE-CROPPED ACRE25 AGE.—In applying paragraph (1), the Secretary 


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1 shall make an exception in the case of double crop2 ping, as determined by the Secretary. 

3 ‘‘(c) REDUCTION IN BASE ACRES.— 

4 ‘‘(1) REDUCTION AT OPTION OF OWNER.— 

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

6 may reduce, at any time, the base acres for any 

7 covered commodity for the farm. 

8 ‘‘(B) EFFECT OF REDUCTION.—A reduc9 tion under subparagraph (A) shall be perma10 nent and made in a manner prescribed by the 

11 Secretary. 

12 ‘‘(2) REQUIRED ACTION BY SECRETARY.— 

13 ‘‘(A) IN GENERAL.—The Secretary shall 

14 proportionately reduce base acres on a farm for 

15 covered commodities for land that has been sub16 divided and developed for multiple residential 

17 units or other nonfarming uses if the size of the 

18 tracts and the density of the subdivision is such 

19 that the land is unlikely to return to the pre20 vious agricultural use, unless the producers on 

21 the farm demonstrate that the land— 

22 ‘‘(i) remains devoted to commercial 

23 agricultural production; or 

24 ‘‘(ii) is likely to be returned to the 

25 previous agricultural use. 


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1 ‘‘(B) REQUIREMENT.—The Secretary shall 

2 establish procedures to identify land described 

3 in subparagraph (A). 

4 ‘‘(3) REVIEW AND REPORT.—Each year, to en5 sure, to the maximum extent practicable, that pay6 ments are received only by producers, the Secretary 

7 shall submit to Congress a report that describes the 

8 results of the actions taken under paragraph (2). 

9 ‘‘(d) TREATMENT OF FARMS WITH LIMITED BASE

10 ACRES.— 

11 ‘‘(1) PROHIBITION ON PAYMENTS.—Except as 

12 provided in paragraph (2) and notwithstanding any 

13 other provision of this title, a producer on a farm 

14 may not receive revenue loss assistance program 

15 payments or counter-cyclical payments if the sum of 

16 the base acres of the farm is 10 acres or less, as de17 termined by the Secretary. 

18 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

19 apply to a farm owned or operated by— 

20 ‘‘(A) a socially disadvantaged farmer or 

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

22 Consolidated Farm and Rural Development Act 

23 (7 U.S.C. 2003(e))); or 

24 ‘‘(B) a limited resource farmer or rancher, 

25 as defined by the Secretary. 


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1 ‘‘(3) DATA COLLECTION AND PUBLICATION.— 

2 The Secretary shall— 

3 ‘‘(A) collect and publish segregated data 

4 and survey information about the farm profiles, 

5 utilization of land, and crop production; and 

6 ‘‘(B) perform an evaluation on the supply 

7 and price of fruits and vegetables based on the 

8 effects of suspension of base acres under this 

9 section. 

10 ‘‘SEC. 1102. PAYMENT YIELDS. 

11 ‘‘For the purpose of making revenue loss assistance 

12 program payments and counter-cyclical payments under 

13 this subtitle, the Secretary shall provide for the establish14 ment of a payment yield for each farm for any designated 

15 oilseed or eligible pulse crop for which a payment yield 

16 was not established under section 1102 of the Farm Secu17 rity and Rural Investment Act of 2002 (7 U.S.C. 7912) 

18 or this section as in effect on September 30, 2012. 

19 ‘‘SEC. 1103. REVENUE LOSS ASSISTANCE PROGRAM. 

20 ‘‘(a) DEFINITIONS.—In this section: 

21 ‘‘(1) FARM.—The term ‘farm’ means, in rela22 tion to an eligible producer on a farm, the sum of 

23 all acreage in all counties of the covered commodity 

24 that is planted or intended to be planted for harvest 

25 by the eligible producer. 


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1 ‘‘(2) NONINSURED CROP DISASTER ASSISTANCE

2 PROGRAM.—The term ‘noninsured crop disaster as3 sistance program’ means the program established by 

4 section 196 of the Federal Agriculture Improvement 

5 and Reform Act of 1996 (7 U.S.C. 7333). 

6 ‘‘(3) SOCIALLY DISADVANTAGED FARMER OR

7 RANCHER.—The term ‘socially disadvantaged farmer 

8 or rancher’ has the meaning given the term in sec9 tion 355(e) of the Consolidated Farm and Rural De10 velopment Act (7 U.S.C. 2003(e)). 

11 ‘‘(b) PAYMENTS REQUIRED.—Beginning with the 

12 2013 crop year of each covered commodity, the Secretary 

13 shall make revenue loss assistance payments to eligible 

14 producers on farms in accordance with this section. 

15 ‘‘(c) COVERAGE PROVIDED.—The revenue loss assist16 ance program under this section shall cover losses suffered 

17 by a producer with respect to covered commodities on a 

18 farm in excess of 12 percent and up to a maximum of 

19 25 percent of the historic revenue of the producer. 

20 ‘‘(d) ELIGIBILITY.—A producer on a farm shall be 

21 eligible for assistance under this section— 

22 ‘‘(1) in the case of each insurable covered com23 modity produced on the farm (excluding grazing 

24 land), if the producer obtains a policy or plan of in25 surance under subtitle A of the Federal Crop InsurVerDate Mar 15 2010 06:48 Mar 31, 2012 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.IS S2261

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1 ance Act (7 U.S.C. 1501 et seq.) (excluding a crop 

2 insurance pilot program under that subtitle); 

3 ‘‘(2) in the case of each noninsurable covered 

4 commodity produced on the farm, if the producer 

5 files the required paperwork, and pays the adminis6 trative fee by the applicable State filing deadline, for 

7 the noninsured crop disaster assistance program; or 

8 ‘‘(3) if the producer is a socially disadvantaged 

9 farmer or rancher. 

10 ‘‘(e) PAYMENT AMOUNT.— 

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

12 the amount of a revenue loss assistance payment for 

13 a covered commodity on a farm to be paid to a pro14 ducer of the covered commodity on the farm during 

15 an applicable crop year shall equal the product ob16 tained by multiplying— 

17 ‘‘(A) the per acre revenue loss of the pro18 ducer for the covered commodity on the farm, 

19 as determined under paragraph (2)(A); 

20 ‘‘(B) the payment factor determined under 

21 paragraph (2)(B); 

22 ‘‘(C) in the case of acreage that the pro23 ducer was prevented from planting, the applica24 ble prevented planting payment factor deter25 mined under paragraph (2)(C); and 


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1 ‘‘(D) the payment acres on the farm deter2 mined under paragraph (2)(D). 

3 ‘‘(2) REVENUE LOSS PAYMENT FACTORS.—For 

4 purposes of paragraph (1): 

5 ‘‘(A) REVENUE LOSS.—The amount of the 

6 per acre revenue loss of the producer shall be 

7 equal to the product obtained by multiplying— 

8 ‘‘(i) the lesser of— 

9 ‘‘(I) the amount that— 

10 ‘‘(aa) 88 percent of the his11 toric revenue per acre calculated 

12 under subsection (f); exceeds 

13 ‘‘(bb) the actual crop rev14 enue per acre determined under 

15 subsection (g); or 

16 ‘‘(II) the amount that is the dif17 ference between— 

18 ‘‘(aa) 88 percent of the his19 toric revenue per acre calculated 

20 under subsection (f); and 

21 ‘‘(bb) 75 percent of the his22 toric revenue per acre calculated 

23 under subsection (f); and 

24 ‘‘(ii) the payment acres calculated 

25 under subparagraph (D). 


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1 ‘‘(B) PAYMENT FACTOR.—Except as pro2 vided in subparagraph (C), the payment factor 

3 shall be 65 percent. 

4 ‘‘(C) PREVENTED PLANTING PAYMENT

5 FACTOR.—For producers who have been pre6 vented from planting and have purchased a 

7 crop insurance policy under subtitle A of the 

8 Federal Crop Insurance Act (7 U.S.C. 1501 et 

9 seq.), the prevented planting factor shall be 45 

10 percent. 

11 ‘‘(D) PAYMENT ACRES.— 

12 ‘‘(i) IN GENERAL.—The payment 

13 acres for a covered commodity on a farm 

14 shall equal the sum of— 

15 ‘‘(I) the number of acres planted 

16 to the covered commodity on the 

17 farm; and 

18 ‘‘(II) the number of acres pre19 vented from being planted to covered 

20 commodity on the farm. 

21 ‘‘(ii) ADJUSTMENT.—If the total pay22 ment acres for all covered commodities on 

23 the farm exceeds the total base acres for 

24 all covered commodities on the farm, the 

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1 modities on the farm shall be equal to the 

2 product obtained by multiplying— 

3 ‘‘(I) the total payment acres of 

4 each covered commodity on the farm 

5 determined under clause (i); by 

6 ‘‘(II) the factor determined by di7 viding— 

8 ‘‘(aa) the total base acres 

9 for all covered commodities on 

10 the farm; by 

11 ‘‘(bb) the total acreage 

12 planted or prevented from being 

13 planted to all covered commod14 ities on the farm. 

15 ‘‘(f) HISTORIC REVENUE PER ACRE.— 

16 ‘‘(1) IN GENERAL.—Subject to subsection (h), 

17 the historic revenue per acre for a covered com18 modity produced on a farm shall be equal to the 

19 product obtained by multiplying— 

20 ‘‘(A) the production yield for the covered 

21 commodity determined under paragraph (2)(A); 

22 and 

23 ‘‘(B) the historic commodity price for the 

24 covered commodity determined under paragraph 

25 (2)(B). 


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1 ‘‘(2) HISTORIC REVENUE FACTORS.—For pur2 poses of paragraph (1): 

3 ‘‘(A) PRODUCTION YIELD.—The produc4 tion yield of a covered commodity shall be the 

5 higher of— 

6 ‘‘(i) a production yield based on the 

7 weighted average of the actual production 

8 history yields of the producer for all acre9 age devoted to the covered commodity on 

10 the farm, as determined by the Secretary; 

11 ‘‘(ii) the weighted average of produc12 tion yields for the most recent 5 crop years 

13 for all acreage devoted to the covered com14 modity on the farm, excluding the crop 

15 years with the highest and lowest yields, as 

16 determined by the Secretary; 

17 ‘‘(iii) the production yield that is 

18 equal to— 

19 ‘‘(I) the payment yield estab20 lished for the counter-cyclical program 

21 that is in effect as of September 30, 

22 2012; or 

23 ‘‘(II) the payment yield estab24 lished under section 1102; or 


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1 ‘‘(iv) the yield established by the Sec2 retary in the case of a producer on a farm 

3 that does not have a production yield es4 tablished under clause (i), (ii), or (iii). 

5 ‘‘(B) HISTORIC COMMODITY PRICE.—The 

6 historic commodity price for each crop of a cov7 ered commodity produced on a farm shall be 

8 equal to the higher of— 

9 ‘‘(i) the target price for the covered 

10 commodity under section 1104(c); or 

11 ‘‘(ii) subject to subparagraph (C), the 

12 average national price (as determined by 

13 the Secretary) for each covered commodity, 

14 by type or variety as applicable, for the 

15 marketing years for the immediately pre16 ceding 5 crops, excluding the year in which 

17 the average price received was the highest 

18 in the period and the year in which the av19 erage price received was the lowest in the 

20 period, as determined by the Secretary. 

21 ‘‘(C) LIMITATION.—The average national 

22 price for each covered commodity under sub23 paragraph (B)(ii) may not exceed the total eco24 nomic cost of production for each covered comVerDate Mar 15 2010 06:48 Mar 31, 2012 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.IS S2261

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1 modity for the applicable crop year, as deter2 mined by the Secretary. 

3 ‘‘(g) ACTUAL CROP REVENUE PER ACRE.— 

4 ‘‘(1) IN GENERAL.—Subject to subsection (h), 

5 the actual crop revenue per acre for a covered com6 modity produced on a farm during the applicable 

7 crop year shall be equal to the sum of— 

8 ‘‘(A) the product obtained by multi9 plying— 

10 ‘‘(i) the actual yield for the covered 

11 commodity on the farm determined under 

12 paragraph (2)(A); and 

13 ‘‘(ii) the average price of the covered 

14 commodity determined under paragraph 

15 (2)(B); and 

16 ‘‘(B) the average amount of crop insurance 

17 indemnities and noninsured crop disaster assist18 ance payments received by a producer on the 

19 farm determined under paragraph (2)(C). 

20 ‘‘(2) ACTUAL CROP REVENUE FACTORS.—For 

21 purposes of paragraph (1): 

22 ‘‘(A) ACTUAL YIELD.—The actual yield of 

23 a covered commodity shall be equal to the 

24 weighted average yield of all planted acres of 


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1 the covered commodity on the farm, as deter2 mined by the Secretary. 

3 ‘‘(B) AVERAGE PRICE.— 

4 ‘‘(i) IN GENERAL.—Subject to clause 

5 (ii), the average price of a covered com6 modity shall be equal to the national aver7 age price for each covered commodity on 

8 the farm, determined by type or class if 

9 applicable in the case of wheat, barley, and 

10 rice, for the first 4 months of the mar11 keting year of the covered commodity dur12 ing which the crop of the covered com13 modity would normally be expected to be 

14 harvested, as determined by the Secretary. 

15 ‘‘(ii) ADJUSTMENT.—The Secretary 

16 shall adjust the average national price of a 

17 covered commodity received by a producer 

18 on a farm to reflect— 

19 ‘‘(I) the average quality discounts 

20 applied to the local or regional market 

21 price of a crop or mechanically har22 vested forage due to damage of the 

23 covered commodity from adverse 

24 weather, as determined annually by 

25 Secretary; 


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1 ‘‘(II) the reduced value of the 

2 covered commodity due to excess 

3 moisture resulting from a disaster-re4 lated condition; or 

5 ‘‘(III) as the Secretary deter6 mines appropriate, regional variations 

7 in quality recognized under the crop 

8 insurance program under subtitle A of 

9 the Federal Crop Insurance Act (7 

10 U.S.C. 1501 et seq.) and the non11 insured crop disaster assistance pro12 gram. 

13 ‘‘(C) NET CROP INSURANCE INDEM14 NITIES.—For each covered commodity, the av15 erage amount of crop insurance indemnities and 

16 noninsured crop disaster assistance payments 

17 received by a producer on a farm shall be equal 

18 to the weighted average amount of crop insur19 ance indemnities less the amount of the pro20 ducer-paid premium per acre and noninsured 

21 crop disaster assistance payments per acre re22 ceived by the producer. 

23 ‘‘(h) EXCLUSION OF GHOST ACRES.— 

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1 termined for purposes of the Federal crop insurance 

2 program to be prevented planting acreage during the 

3 same crop year shall not be considered in calculating 

4 the historic revenue per acre or the actual crop rev5 enue per acre for the farm under this section. 

6 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

7 apply to a farm that, as determined by the Sec8 retary— 

9 ‘‘(A) has a history of double-cropping; and 

10 ‘‘(B) is located in an area in which double11 cropping is an acceptable agricultural practice 

12 for purposes of the Federal crop insurance pro13 gram. 

14 ‘‘SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAY15 MENTS. 

16 ‘‘(a) PAYMENT REQUIRED.—For each of the 2013 

17 through 2017 crop years for each covered commodity, the 

18 Secretary shall make counter-cyclical payments to pro19 ducers on farms for which payment yields and base acres 

20 are established with respect to the covered commodity if 

21 the Secretary determines that the effective price for the 

22 covered commodity is less than the target price for the 

23 covered commodity. 

24 ‘‘(b) EFFECTIVE PRICE.— 


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1 ‘‘(1) COVERED COMMODITIES OTHER THAN

2 RICE.—Except as provided in paragraph (2), for 

3 purposes of subsection (a), the effective price for a 

4 covered commodity is equal to the higher of the fol5 lowing: 

6 ‘‘(A) The national average market price re7 ceived by producers during the first 4 months 

8 of the marketing year for the covered com9 modity, as determined by the Secretary. 

10 ‘‘(B) The national average loan rate for a 

11 marketing assistance loan for the covered com12 modity in effect for the applicable period under 

13 subtitle B. 

14 ‘‘(2) RICE.—In the case of long grain rice and 

15 medium grain rice, for purposes of subsection (a), 

16 the effective price for each type or class of rice is 

17 equal to the higher of the following: 

18 ‘‘(A) The national average market price re19 ceived by producers during the first 4 months 

20 of the marketing year for the type or class of 

21 rice, as determined by the Secretary. 

22 ‘‘(B) The national average loan rate for a 

23 marketing assistance loan for the type or class 

24 of rice in effect for the applicable period under 

25 subtitle B. 


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1 ‘‘(c) TARGET PRICE.—For purposes of each of the 

2 2013 through 2017 crop years, the target prices for cov3 ered commodities shall be as follows: 

4 ‘‘(1) Wheat, $4.17 per bushel. 

5 ‘‘(2) Corn, $2.63 per bushel. 

6 ‘‘(3) Grain sorghum, $2.63 per bushel. 

7 ‘‘(4) Barley, $2.63 per bushel. 

8 ‘‘(5) Oats, $1.79 per bushel. 

9 ‘‘(6) Upland cotton, $0.65 per pound. 

10 ‘‘(7) Long grain rice, $10.50 per hundred11 weight. 

12 ‘‘(8) Medium grain rice, $10.50 per hundred13 weight. 

14 ‘‘(9) Soybeans, $6.00 per bushel. 

15 ‘‘(10) Other oilseeds, $12.68 per hundred16 weight. 

17 ‘‘(11) Dry peas, $8.32 per hundredweight. 

18 ‘‘(12) Lentils, $12.81 per hundredweight. 

19 ‘‘(13) Small chickpeas, $10.36 per hundred20 weight. 

21 ‘‘(14) Large chickpeas, $12.81 per hundred22 weight. 

23 ‘‘(15) Peanuts, $495 per ton. 

24 ‘‘(d) PAYMENT RATE.—The payment rate used to 

25 make counter-cyclical payments with respect to a covered 


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1 commodity for a crop year shall be equal to the difference 

2 between— 

3 ‘‘(1) the target price for the covered commodity; 

4 and 

5 ‘‘(2) the effective price determined under sub6 section (b) for the covered commodity. 

7 ‘‘(e) PAYMENT AMOUNT.—If counter-cyclical pay8 ments are required to be paid under this section for any 

9 of the 2013 through 2017 crop years of a covered com10 modity, the amount of the counter-cyclical payment to be 

11 paid to the producers on a farm for that crop year shall 

12 be equal to the product of the following: 

13 ‘‘(1) The payment rate specified in subsection 

14 (d). 

15 ‘‘(2) The counter-cyclical payment acres of the 

16 covered commodity on the farm. 

17 ‘‘(3) The payment yield for the covered com18 modity for the farm. 

19 ‘‘(f) TIME FOR PAYMENTS.—If the Secretary deter20 mines under subsection (a) that counter-cyclical payments 

21 are required to be made under this section for the crop 

22 of a covered commodity, as soon as practicable after the 

23 end of the first 4 months of the marketing year for the 

24 covered commodity, the Secretary shall make the counter25 cyclical payments for the crop. 


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1 ‘‘SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDI2 TION OF PROVISION OF PAYMENTS. 

3 ‘‘(a) COMPLIANCE WITH CERTAIN REQUIRE4 MENTS.— 

5 ‘‘(1) REQUIREMENTS.—Before the producers on 

6 a farm may receive revenue loss assistance program 

7 payments or counter-cyclical payments with respect 

8 to the farm, the producers shall agree, during the 

9 crop year for which the payments are made and in 

10 exchange for the payments— 

11 ‘‘(A) to comply with applicable conserva12 tion requirements under subtitle B of title XII 

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

14 3811 et seq.); 

15 ‘‘(B) to comply with applicable wetland 

16 protection requirements under subtitle C of title 

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

18 ‘‘(C) to comply with the planting flexibility 

19 requirements of section 1106; 

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

21 quantity equal to the attributable base acres for 

22 the farm for an agricultural or conserving use, 

23 and not for a nonagricultural commercial, in24 dustrial, or residential use, as determined by 

25 the Secretary; and 


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1 ‘‘(E) to effectively control noxious weeds 

2 and otherwise maintain the land in accordance 

3 with sound agricultural practices, as determined 

4 by the Secretary, if the agricultural or con5 serving use involves the noncultivation of any 

6 portion of the land referred to in subparagraph 

7 (D). 

8 ‘‘(2) COMPLIANCE.—The Secretary may issue 

9 such rules as the Secretary considers necessary to 

10 ensure producer compliance with the requirements of 

11 paragraph (1). 

12 ‘‘(3) MODIFICATION.—At the request of the 

13 transferee or owner, the Secretary may modify the 

14 requirements of this subsection if the modifications 

15 are consistent with the objectives of this subsection, 

16 as determined by the Secretary. 

17 ‘‘(b) TRANSFER OR CHANGE OF INTEREST IN

18 FARM.— 

19 ‘‘(1) TERMINATION.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

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

22 interest of the producers on a farm in base 

23 acres for which revenue loss assistance program 

24 payments or counter-cyclical payments are 

25 made shall result in the termination of the revVerDate Mar 15 2010 06:48 Mar 31, 2012 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.IS S2261

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1 enue loss assistance program payments or 

2 counter-cyclical payments to the extent the pay3 ments are made or based on the base acres, un4 less the transferee or owner of the acreage 

5 agrees to assume all obligations under sub6 section (a). 

7 ‘‘(B) EFFECTIVE DATE.—The termination 

8 shall take effect on the date determined by the 

9 Secretary. 

10 ‘‘(2) EXCEPTION.—If a producer entitled to a 

11 revenue loss assistance program payment or counter12 cyclical payment dies, becomes incompetent, or is 

13 otherwise unable to receive the payment, the Sec14 retary shall make the payment, in accordance with 

15 rules issued by the Secretary. 

16 ‘‘(c) REPORTS.— 

17 ‘‘(1) ACREAGE REPORTS.—As a condition on 

18 the receipt of any benefits under this subtitle or sub19 title B, the Secretary shall require producers on a 

20 farm to submit to the Secretary annual acreage re21 ports with respect to all cropland on the farm. 

22 ‘‘(2) PENALTIES.—No penalty with respect to 

23 benefits under this subtitle or subtitle B shall be as24 sessed against the producers on a farm for an inac25 curate acreage report unless the producers on the 


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1 farm knowingly and willfully falsified the acreage re2 port. 

3 ‘‘(d) TENANTS AND SHARECROPPERS.—In carrying 

4 out this subtitle, the Secretary shall provide adequate safe5 guards to protect the interests of tenants and share6 croppers. 

7 ‘‘(e) SHARING OF PAYMENTS.—The Secretary shall 

8 provide for the sharing of revenue loss assistance program 

9 payments and counter-cyclical payments among the pro10 ducers on a farm on a fair and equitable basis. 

11 ‘‘SEC. 1106. PLANTING FLEXIBILITY. 

12 ‘‘(a) DEFINITION OF NONCOVERED COMMODITY.—In 

13 this section, the term ‘noncovered commodity’ means— 

14 ‘‘(1) fruits; 

15 ‘‘(2) vegetables; and 

16 ‘‘(3) wild rice. 

17 ‘‘(b) PERMITTED CROPS.—Subject to subsection (c), 

18 any commodity or crop (other than a controlled substance) 

19 may be planted on base acres on a farm. 

20 ‘‘(c) REDUCTION IN BASE ACRES.— 

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

22 for each crop year for which a noncovered com23 modity is planted on base acres on a farm, the total 

24 base acres used to calculate revenue loss assistance 

25 program payments and counter-cyclical payments 


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1 shall be reduced by an acre for each acre planted to 

2 the noncovered commodity. 

3 ‘‘(2) DOUBLE-CROPPING.—In any region or on 

4 any farm that has a history of double-cropping of 

5 covered commodities with noncovered commodities, 

6 as determined by the Secretary, a producer may re7 ceive full revenue loss assistance program payments 

8 and counter-cyclical payments for crops of covered 

9 commodities, but no payments for crops of non10 covered commodities. 

11 ‘‘SEC. 1107. SPECIAL RULE FOR LONG GRAIN AND MEDIUM 

12 GRAIN RICE. 

13 ‘‘(a) CALCULATION METHOD.—Subject to sub14 sections (b) and (c), for the purposes of determining the 

15 amount of the revenue loss assistance program payments 

16 and counter-cyclical payments to be paid to the producers 

17 on a farm for long grain rice and medium grain rice under 

18 sections 1103 and 1104, respectively, the base acres of 

19 rice on the farm shall be apportioned using the 4-year av20 erage of the percentages of acreage planted in the applica21 ble State to long grain rice and medium grain rice during 

22 the 2003 through 2006 crop years, as determined by the 

23 Secretary. 

24 ‘‘(b) PRODUCER ELECTION.—As an alternative to the 

25 calculation method described in subsection (a), the SecVerDate Mar 15 2010 06:48 Mar 31, 2012 Jkt 019200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S2261.IS S2261

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1 retary shall provide producers on a farm the opportunity 

2 to elect to apportion rice base acres on the farm using 

3 the 4-year average of— 

4 ‘‘(1) the percentages of acreage planted on the 

5 farm to long grain rice and medium grain rice dur6 ing the 2003 through 2006 crop years; 

7 ‘‘(2) the percentages of any acreage on the 

8 farm that the producers were prevented from plant9 ing to long grain rice and medium grain rice during 

10 the 2003 through 2006 crop years because of 

11 drought, flood, other natural disaster, or other con12 dition beyond the control of the producers, as deter13 mined by the Secretary; and 

14 ‘‘(3) in the case of a crop year for which a pro15 ducer on a farm elected not to plant to long grain 

16 and medium grain rice during the 2003 through 

17 2006 crop years, the percentages of acreage planted 

18 in the applicable State to long grain rice and me19 dium grain rice, as determined by the Secretary. 

20 ‘‘(c) LIMITATION.—In carrying out this section, the 

21 Secretary shall use the same total base acres, counter-cy22 clical payment acres, and payment yields established with 

23 respect to rice under sections 1101 and 1102 of the Farm 

24 Security and Rural Investment Act of 2002 (7 U.S.C. 


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1 7911, 7912), as in effect on September 30, 2007, subject 

2 to any adjustment under section 1101 of this Act. 

3 ‘‘SEC. 1108. PERIOD OF EFFECTIVENESS. 

4 ‘‘This subtitle shall be effective beginning with the 

5 2013 crop year of each covered commodity through the 

6 2017 crop year.’’. 

7 SEC. 3. MARKETING ASSISTANCE LOANS AND LOAN DEFI8 CIENCY PAYMENTS. 

9 (a) LOAN RATES FOR NONRECOURSE MARKETING

10 ASSISTANCE LOANS.—Section 1202 of the Food, Con11 servation, and Energy Act of 2008 (7 U.S.C. 8732) is 

12 amended— 

13 (1) by redesignating subsection (d) as sub14 section (e); and 

15 (2) by inserting after subsection (c) the fol16 lowing: 

17 ‘‘(c) 2013 THROUGH 2017 CROP YEARS.—For pur18 poses of each of the 2013 through 2017 crop year, the 

19 loan rate for a marketing assistance loan under section 

20 1201 for a loan commodity shall be equal to the following: 

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

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

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

24 bushel. 

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


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

2 ‘‘(6) In the case of base quality of upland cot3 ton— 

4 ‘‘(A) for the 2012 crop year, $0.52 per 

5 pound; and 

6 ‘‘(B) for the 2013 and each subsequent 

7 crop year, the simple average of the adjusted 

8 prevailing world price for the 2 immediately 

9 preceding marketing years, as determined by 

10 the Secretary and announced the October 1 

11 preceding the next domestic plantings, but in 

12 no case less than $0.47 per pound or more than 

13 $0.52 per pound. 

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

15 $0.7977 per pound. 

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

17 hundredweight. 

18 ‘‘(9) In the case of medium grain rice, $6.50 

19 per hundredweight. 

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

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

22 hundredweight for each of the following kinds of oil23 seeds: 

24 ‘‘(A) Sunflower seed. 

25 ‘‘(B) Rapeseed. 


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1 ‘‘(C) Canola. 

2 ‘‘(D) Safflower. 

3 ‘‘(E) Flaxseed. 

4 ‘‘(F) Mustard seed. 

5 ‘‘(G) Crambe. 

6 ‘‘(H) Sesame seed. 

7 ‘‘(I) Other oilseeds designated by the Sec8 retary. 

9 ‘‘(12) In the case of dry peas, $5.40 per hun10 dredweight. 

11 ‘‘(13) In the case of lentils, $11.28 per hun12 dredweight. 

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

14 hundredweight. 

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

16 hundredweight. 

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

18 pound. 

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

20 pound. 

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

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

23 ‘‘(20) In the case of peanuts, $355 per ton.’’. 


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1 (b) PEANUTS MARKETING.—Section 1204 of the 

2 Food, Conservation, and Energy Act of 2008 (7 U.S.C. 

3 8734) is amended by adding at the end the following: 

4 ‘‘(i) PEANUTS MARKETING.—A marketing associa5 tion or cooperative may market peanuts for which a loan 

6 is made under this section in any manner that conforms 

7 to consumer needs, including the separation of peanuts by 

8 type and quality.’’. 

9 SEC. 4. EXTENSION OF EXPIRING AUTHORITIES. 

10 (a) FOOD, CONSERVATION, AND ENERGY ACT OF

11 2008.— 

12 (1) IN GENERAL.—The following provisions of 

13 the Food, Conservation, and Energy Act of 2008 are 

14 amended by striking ‘‘2012’’ each place it appears 

15 and inserting ‘‘2017’’: 

16 (A) Section 1201(a)(1) (7 U.S.C. 

17 8731(a)(1)). 

18 (B) Section 1205(a)(2)(B) (7 U.S.C. 

19 8735(a)(2)(B)). 

20 (C) Subsections (a) and (d) of section 

21 1206 (7 U.S.C. 8736). 

22 (D) Subsections (a)(2) and (b) of section 

23 1209 (7 U.S.C. 8739). 

24 (E) Section 1307(a)(1) (7 U.S.C. 

25 8757(a)(1)). 


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1 (F) Subsections (g) and (h)(1) of section 

2 1506 (7 U.S.C. 8773). 

3 (G) Section 1602 (7 U.S.C. 8782). 

4 (H) Section 1605(h) (7 U.S.C. 8783(h)). 

5 (I) Subsections (b)(2)(A) and (c) of section 

6 1612 (7 U.S.C. 8787). 

7 (J) Section 1613(c) (7 U.S.C. 8788(c)). 

8 (K) Section 1621(d) (7 U.S.C. 8792(d)). 

9 (2) OTHER AMENDMENTS.— 

10 (A) ADJUSTMENT OF PREVAILING WORLD

11 MARKET PRICE FOR UPLAND COTTON.—Section 

12 1204(e)(2)(B) of the Food, Conservation, and 

13 Energy Act of 2008 (7 U.S.C. 8734(e)(2)(B)) 

14 is amended by striking ‘‘July 31, 2013’’ and in15 serting ‘‘July 31, 2018’’. 

16 (B) SPECIAL MARKETING LOAN PROVI17 SIONS FOR UPLAND COTTON.—Section 

18 1207(a)(2)(A) of the Food, Conservation, and 

19 Energy Act of 2008 (7 U.S.C. 8737(a)(2)(A)) 

20 is amended by striking ‘‘July 31, 2013’’ and in21 serting ‘‘July 31, 2018’’. 

22 (C) SPECIAL COMPETITIVE PROVISIONS

23 FOR EXTRA LONG STAPLE COTTON.—Section 

24 1208(a) of the Food, Conservation, and Energy 

25 Act of 2008 (7 U.S.C. 8738(a)) is amended in 


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1 the matter preceding paragraph (1) by striking 

2 ‘‘July 31, 2013’’ and inserting ‘‘July 31, 

3 2018’’. 

4 (D) DAIRY PRODUCT PRICE SUPPORT PRO5 GRAM.—Section 1501(b) of the Food, Conserva6 tion, and Energy Act of 2008 (7 U.S.C. 

7 8771(b)) is amended by striking ‘‘December 31, 

8 2012’’ and inserting ‘‘December 31, 2017’’. 

9 (E) DAIRY FORWARD PRICING PROGRAM.— 

10 Section 1502(e) of the Food, Conservation, and 

11 Energy Act of 2008 (7 U.S.C. 8772(e)) is 

12 amended—’’ 

13 (i) in paragraph (1), by striking ‘‘Sep14 tember 30, 2012’’ and inserting ‘‘Sep15 tember 30, 2017’’; and 

16 (ii) in paragraph (2), by striking 

17 ‘‘September 30, 2015’’ and inserting ‘‘Sep18 tember 30, 2020’’. 

19 (b) OTHER LAWS.—The following provisions of law 

20 are amended by striking ‘‘2012’’ each place it appears and 

21 inserting ‘‘2017’’: 

22 (1) The matter preceding subparagraph (A) of 

23 section 359b(a)(1) of the Agricultural Adjustment 

24 Act of 1938 (7 U.S.C. 1359bb(a)(1)). 


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1 (2) Section 359l(a)of the Agricultural Adjust2 ment Act of 1938 (7 U.S.C. 1359ll(a)). 

3 (3) Section 153(a) of the Food Security Act of 

4 1985 (15 U.S.C. 713a–14(a)). 

5 (4) Section 3 of Public Law 90–484 (7 U.S.C. 

6 450l). 

7 (5) Section 113(e)(2) of the Dairy Production 

8 Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)). 

9 (6)(A) Section 156 of the Federal Agriculture 

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

11 7272) is amended— 

12 (i) in subsection (a)(5), by striking ‘‘the 

13 2012 crop year’’ and inserting ‘‘each of the 

14 2013 through 2017 crop years’’; 

15 (ii) in subsection (b)(2), by striking 

16 ‘‘2012’’ and inserting ‘‘2017’’; and 

17 (iii) in subsection (i), by striking ‘‘2012’’ 

18 and inserting ‘‘2017’’. 

19 (B) Section 1402 of the Food, Conservation, 

20 and Energy Act of 2008 (7 U.S.C. 3602 note; Pub21 lic Law 110–246) is amended by striking ‘‘2007’’ 

22 and inserting ‘‘2012’’. 

23 (c) TECHNICAL CORRECTIONS.— 


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1 (1) Section 359f(c)(1)(B) of the Agricultural 

2 Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) 

3 is amended by adding a period at the end. 

4 (2) Section 1603(g) of the Food, Conservation, 

5 and Energy Act of 2008 (Public Law 110–246; 122 

6 Stat. 1739) is amended in paragraphs (2) through 

7 (6) and the amendments made by those paragraphs 

8 by striking ‘‘1703(a)’’ each place it appears and in9 serting ‘‘1603(a)’’. 

10 (3) This paragraph and the amendments made 

11 by this paragraph take effect as if included in the 

12 Food, Conservation, and Energy Act of 2008 (Public 

13 Law 110–246; 122 Stat. 1651). 

14 SEC. 5. REPEAL OF DIRECT PAYMENT AND ACRE PRO15 GRAMS. 

16 (a) FOOD, CONSERVATION, AND ENERGY ACT OF

17 2008.— 

18 (1) The table of contents in section 1(b) of the 

19 Food, Conservation, and Energy Act of 2008 (122 

20 Stat. 1651; 7 U.S.C. 8701 note) is amended in the 

21 items relating to title I— 

22 (A) by striking the items relating to sub23 title A and inserting the following: 

‘‘Subtitle A—Revenue Loss Assistance Program and Counter-Cyclical 

Program 

‘‘Sec. 1101. Base acres. 

‘‘Sec. 1102. Payment yields. 


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‘‘Sec. 1103. Revenue loss assistance program. 

‘‘Sec. 1104. Availability of counter-cyclical payments. 

‘‘Sec. 1105. Producer agreement required as condition of provision of payments. 

‘‘Sec. 1106. Planting flexibility. 

‘‘Sec. 1107. Special rule for long grain and medium grain rice. 

‘‘Sec. 1108. Period of effectiveness.’’; 

1 and 

2 (B) by striking the items relating to sub3 title C. 

4 (2) Section 1206(b) of the Food, Conservation, 

5 and Energy Act of 2008 (7 U.S.C. 8736(b)) is 

6 amended— 

7 (A) in paragraph (1)(B)(ii), by striking 

8 ‘‘the payment yield in effect for the calculation 

9 of direct payments under subtitle A with re10 spect to that loan commodity on the farm or, in 

11 the case of a farm without a payment yield for 

12 that loan commodity,’’; and 

13 (B) in paragraph (2)(B)(ii), by striking 

14 ‘‘the payment yield in effect for the calculation 

15 of direct payments under subtitle A with re16 spect to wheat on the farm or, in the case of 

17 a farm without a payment yield for wheat,’’. 

18 (b) FOOD SECURITY ACT OF 1985.— 

19 (1) Section 1001 of the Food Security Act of 

20 1985 (7 U.S.C. 1308) is amended by striking sub21 sections (b) and (c) and inserting the following: 


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1 ‘‘(b) LIMITATION ON REVENUE LOSS ASSISTANCE

2 PROGRAM PAYMENTS AND COUNTER-CYCLICAL PAY3 MENTS FOR COVERED COMMODITIES.—The total amount 

4 of revenue loss assistance program payments and counter5 cyclical program payments received, directly or indirectly, 

6 by a person or legal entity for any crop year under subtitle 

7 A of title I of the Food, Conservation, and Energy Act 

8 of 2008 (7 U.S.C. 8711 et seq.) for 1 or more covered 

9 commodities may not exceed $105,000.’’. 

10 (2) Section 1001D of the Food Security Act of 

11 1985 (7 U.S.C. 1308–3a) is amended— 

12 (A) in subsection (b)(1)— 

13 (i) by striking subparagraphs (A) and 

14 (B) and inserting the following: 

15 ‘‘(A) IN GENERAL.—Notwithstanding any 

16 other provision of law, a person or legal entity 

17 shall not be eligible to receive any benefit de18 scribed in subparagraph (B) during a crop, fis19 cal, or program year, as appropriate, if the av20 erage adjusted gross income of the person or 

21 legal entity exceeds $999,000.’’; 

22 (ii) by redesignating subparagraph 

23 (C) as subparagraph (B); and 


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1 (iii) in subparagraph (B) (as so des2 ignated) by striking clause (i) and insert3 ing the following: 

4 ‘‘(i) A revenue loss assistance pro5 gram payment or counter-cyclical payment 

6 under title I of the Food, Conservation, 

7 and Energy Act of 2008 (7 U.S.C. 8702 et 

8 seq.).’’; and 

9 (B) in subsection (f), by striking ‘‘2012’’ 

10 and inserting ‘‘2017’’. 

11 SEC. 6. SUPPLEMENTAL COVERAGE OPTION. 

12 (a) AVAILABILITY OF SUPPLEMENTAL COVERAGE

13 OPTION.—Section 508(c) of the Federal Crop Insurance 

14 Act (7 U.S.C. 1508(c)) is amended by striking paragraph 

15 (3) and inserting the following: 

16 ‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A pro17 ducer shall have the option of purchasing additional 

18 coverage based on— 

19 ‘‘(A)(i) an individual yield and loss basis; 

20 or 

21 ‘‘(ii) an area yield and loss basis; or 

22 ‘‘(B) an individual yield and loss basis, 

23 supplemented with coverage based on an area 

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1 ductible under the individual yield and loss pol2 icy, as described in paragraph (4)(C).’’. 

3 (b) LEVEL OF COVERAGE.—Section 508(c) of the 

4 Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amend5 ed by striking paragraph (4) and inserting the following: 

6 ‘‘(4) LEVEL OF COVERAGE.— 

7 ‘‘(A) DOLLAR DENOMINATION.—Except as 

8 provided in subparagraph (C), the level of cov9 erage shall be dollar-denominated. 

10 ‘‘(B) INFORMATION.—The Corporation 

11 shall provide producers with information on cat12 astrophic risk and additional coverage in terms 

13 of dollar coverage (within the allowable limits of 

14 coverage provided in this paragraph). 

15 ‘‘(C) SUPPLEMENTAL COVERAGE OP16 TION.— 

17 ‘‘(i) IN GENERAL.—Notwithstanding 

18 subparagraph (A), in the case of the sup19 plemental coverage option described in 

20 paragraph (3)(B), the Corporation shall 

21 offer producers the opportunity to pur22 chase coverage in combination with an in23 dividual policy or plan of insurance (other 

24 than catastrophic risk protection) offered 

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1 nities to be paid to a producer equal to 

2 part of the deductible under the individual 

3 policy or plan of insurance, if sufficient 

4 area data is available (as determined by 

5 the Corporation). 

6 ‘‘(ii) TRIGGER.—Coverage offered 

7 under paragraph (3)(B) and clause (i) 

8 shall be triggered only if the losses in the 

9 area exceed 25 percent of normal levels (as 

10 determined by the Corporation). 

11 ‘‘(iii) COVERAGE.—Subject to the trig12 ger described in clause (ii) and the deduct13 ible required under clause (iv), coverage of14 fered under paragraph (3)(B) and clause 

15 (i) shall cover the first loss incurred by the 

16 producer but not to exceed the difference 

17 between— 

18 ‘‘(I) 75 percent; and 

19 ‘‘(II) the coverage level selected 

20 by the producer for the underlying 

21 policy or plan of insurance. 

22 ‘‘(iv) DEDUCTIBLE.—Coverage offered 

23 under paragraph (3)(B) and clause (i) 

24 shall be subject to a deductible in an 

25 amount equal to 25 percent of the expected 


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1 value of the crop of the producer under the 

2 underlying policy or plan of insurance, as 

3 determined by the Corporation. 

4 ‘‘(v) REQUIRED TERMS.—The supple5 mental coverage option shall be offered to 

6 producers of an agricultural commodity in 

7 each county in which the agricultural com8 modity is produced— 

9 ‘‘(I) at a county-wide level to the 

10 fullest extent practicable; or 

11 ‘‘(II) in a county that lacks suffi12 cient data, on the basis of such larger 

13 geographical area as the Corporation 

14 determines to provide sufficient data 

15 for purposes of providing the cov16 erage. 

17 ‘‘(vi) PREMIUM AMOUNT.—Notwith18 standing subsection (d), the premium 

19 shall— 

20 ‘‘(I) be sufficient to cover antici21 pated losses and a reasonable reserve; 

22 and 

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1 section (k)(4)(F), but not to exceed 6 

2 percent of the premium used to define 

3 the loss ratio for the supplemental 

4 coverage option.’’. 

5 (c) PREMIUM.—Section 508(d)(2)(B) of the Federal 

6 Crop Insurance Act (7 U.S.C. 1508(d)(2)(B)) is amended 

7 in the matter preceding clause (i) by inserting ‘‘or that 

8 combines an individual yield and loss basis and an area 

9 yield and loss basis’’ after ‘‘not based on individual yield’’. 

10 (d) PAYMENT OF PORTION OF PREMIUM BY COR11 PORATION.—Section 508(e)(2) of the Federal Crop Insur12 ance Act (7 U.S.C. 1508(e)(2)) is amended by adding at 

13 the end the following: 

14 ‘‘(H) In the case of the supplemental cov15 erage option described in paragraphs (3)(B) 

16 and (4)(C) of subsection (c), the amount shall 

17 be equal to the sum of— 

18 ‘‘(i) not less than 70 percent of the 

19 additional premium associated with the 

20 coverage; and 

21 ‘‘(ii) the amount determined under 

22 subsection (d)(2)(B)(ii) for the coverage to 

23 cover operating and administrative ex24 penses.’’. 


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1 (e) DATA SOURCES.—Section 508(g)(2) of the Fed2 eral Crop Insurance Act (7 U.S.C. 1508(g)(2)) is amended 

3 by adding at the end the following: 

4 ‘‘(E) SOURCES OF YIELD DATA.—To deter5 mine yields under the program established 

6 under this paragraph, the Corporation shall use 

7 data collected by the Risk Management Agency 

8 or the National Agricultural Statistics Service, 

9 or both.’’. 

10 (f) ADMINISTRATIVE AND OPERATING COSTS REIM11 BURSEMENT RATE.—Section 508(k)(4)(F) of the Federal 

12 Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended 

13 by inserting ‘‘or as authorized under section 

14 508(c)(4)(C)’’ after ‘‘date of enactment of this subpara15 graph’’. 

16 (g) EFFECTIVE DATE.—The Federal Crop Insurance 

17 Corporation shall begin to provide additional coverage 

18 based on an individual yield and loss basis, supplemented 

19 with coverage based on an area yield and loss basis, not 

20 later than for the 2013 crop year. 

21 SEC. 7. CATASTROPHIC RISK PROTECTION PREMIUM RE22 DUCTION. 

23 Section 508(d)(2) of the Federal Crop Insurance Act 

24 (7 U.S.C. 1508(d)(2)) is amended by striking subpara25 graph (A) and inserting the following: 


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1 ‘‘(A) CATASTROPHIC RISK PROTECTION.— 

2 ‘‘(i) IN GENERAL.—For the 2011 and 

3 previous crop years, the amount of the pre4 mium for catastrophic risk protection cov5 erage shall be sufficient to cover antici6 pated losses and a reasonable reserve. 

7 ‘‘(ii) REDUCTION.—For the 2012 and 

8 subsequent crop years, the amount of the 

9 premium for catastrophic risk protection 

10 coverage authorized under clause (i) shall 

11 be reduced by the percentage equal to the 

12 difference between the average loss ratio 

13 for each crop and 100 percent, plus a rea14 sonable reserve.’’. 

15 SEC. 8. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO 

16 ESTABLISH INSURABLE YIELDS. 

17 Section 508(g)(4)(B) of the Federal Crop Insurance 

18 Act (7 U.S.C. 1508(g)(4)(B)) is amended by striking ‘‘60 

19 percent’’ both places it appears and inserting ‘‘70 per20 cent’’. 

21 SEC. 9. SUPPLEMENTAL AGRICULTURAL DISASTER ASSIST22 ANCE. 

23 (a) DEFINITIONS.—Section 531(a) of the Federal 

24 Crop Insurance Act (7 U.S.C. 1531(a)) is amended— 

25 (1) in paragraph (5)— 


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1 (A) in the matter preceding clause (i), by 

2 striking the first ‘‘under’’; and 

3 (B) by redesignating clauses (i) through 

4 (iii) as subparagraphs (A), (B), and (C), re5 spectively, and indenting appropriately; 

6 (2) by striking paragraph (20); and 

7 (3) by redesignating paragraph (21) as para8 graph (20). 

9 (b) SUPPLEMENTAL REVENUE ASSISTANCE PAY10 MENTS.—Section 531(b) of the Federal Crop Insurance 

11 Act (7 U.S.C. 1531(b)) is amended— 

12 (1) in paragraph (1)— 

13 (A) in subparagraph (A)— 

14 (i) by striking ‘‘from the Trust Fund’’ 

15 and inserting ‘‘of the Commodity Credit 

16 Corporation’’; and 

17 (ii) by striking ‘‘the crop year’’ and 

18 inserting ‘‘during the period beginning on 

19 October 1, 2011, and ending on September 

20 30, 2012’’; and 

21 (B) in subparagraph (B), by striking ‘‘crop 

22 of economic significance’’ and inserting ‘‘cov23 ered commodity (as defined in section 1001 of 

24 the Food, Conservation, and Energy Act of 

25 2008 (7 U.S.C. 8702)) or peanuts’’; 


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1 (2) in paragraph (2)(A), in the matter pre2 ceding clause (i), by striking ‘‘60 percent’’ and in3 serting ‘‘50 percent’’; 

4 (3) in paragraph (3)(A)(i), in the matter pre5 ceding subclause (I), by striking ‘‘115 percent’’ and 

6 inserting ‘‘112 percent’’; and 

7 (4) in paragraph (4)— 

8 (A) in subparagraph (A)— 

9 (i) in clause (i)(II), by inserting ‘‘the 

10 first 4 months of’’ after ‘‘received for’’; 

11 and 

12 (ii) in clause (ii), by striking ‘‘15 per13 cent’’ and inserting ‘‘100 percent’’; and 

14 (B) in subparagraph (C), by inserting ‘‘the 

15 first 4 months of’’ after ‘‘during the’’. 

16 (c) LIVESTOCK INDEMNITY PAYMENTS.—Section 

17 531(c) of the Federal Crop Insurance Act (7 U.S.C. 

18 1531(c)) is amended— 

19 (1) in paragraph (1)— 

20 (A) by striking ‘‘from the Trust Fund’’ 

21 and inserting ‘‘of the funds of the Commodity 

22 Credit Corporation for each of fiscal years 2012 

23 through 2021’’; and 

24 (B) by inserting ‘‘, or due to predators 

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1 ernment, as determined by the Secretary’’ be2 fore the period at the end; and 

3 (2) in paragraph (2), by striking ‘‘75’’ and in4 serting ‘‘65’’. 

5 (d) LIVESTOCK FORAGE DISASTER PROGRAM.—Sec6 tion 531(d) of the Federal Crop Insurance Act (7 U.S.C. 

7 1531(d)) is amended— 

8 (1) in paragraph (2), by striking ‘‘from the 

9 Trust Fund’’ and inserting ‘‘of the funds of the 

10 Commodity Credit Corporation for each of fiscal 

11 years 2012 through 2021’’; 

12 (2) by striking paragraph (5); and 

13 (3) by redesignating paragraph (6) as para14 graph (5). 

15 (e) EMERGENCY ASSISTANCE FOR LIVESTOCK, 

16 HONEY BEES, AND FARM-RAISED FISH.—Section 

17 531(e)(1) of the Federal Crop Insurance Act (7 U.S.C. 

18 1531(e)(1)) is amended by striking ‘‘$50,000,000 per year 

19 from the Trust Fund’’ and inserting ‘‘$20,000,000 of the 

20 funds of the Commodity Credit Corporation for each of 

21 fiscal years 2012 through 2021’’. 

22 (f) TREE ASSISTANCE PROGRAM.—Section 531(f) of 

23 the Federal Crop Insurance Act (7 U.S.C. 1531(f)) is 

24 amended— 


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1 (1) in paragraph (2)(A), by striking ‘‘from the 

2 Trust Fund’’ and inserting ‘‘of the funds of the 

3 Commodity Credit Corporation for each of fiscal 

4 years 2012 through 2021’’; and 

5 (2) in paragraph (3)— 

6 (A) in subparagraph (A)(i), by striking 

7 ‘‘70’’ and inserting ‘‘60’’; and 

8 (B) in subparagraph (B), by striking ‘‘50’’ 

9 and inserting ‘‘40’’. 

10 (g) RISK MANAGEMENT PURCHASE REQUIRE11 MENT.—Section 531(g)(1) of the Federal Crop Insurance 

12 Act (7 U.S.C. 1531(g)(1)) is amended in the matter pre13 ceding subparagraph (A) by striking ‘‘and (d)’’ and insert14 ing ‘‘, (d), and (e)’’. 

15 (h) CONFORMING AMENDMENTS.— 

16 (1) Section 531 of the Federal Crop Insurance 

17 Act (7 U.S.C. 1531) is amended— 

18 (A) by striking subsection (i); and 

19 (B) by redesignating subsections (j) and 

20 (k) as subsections (i) and (j), respectively. 

21 (2) Title IX of the Trade Act of 1974 (19 

22 U.S.C. 2497 et seq.) is repealed. 

23 (i) EFFECTIVE DATE.—This section and the amend24 ments made by this section take effect on October 1, 2011. 


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1 SEC. 10. BUDGETARY EFFECTS. 

2 The budgetary effects of this Act, for the purpose of 

3 complying with the Statutory Pay-As-You-Go Act of 2010, 

4 shall be determined by reference to the latest statement 

5 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

6 Act, submitted for printing in the Congressional Record 

7 by the Chairman of the Senate Budget Committee, pro8 vided that such statement has been submitted prior to the 

9 vote on passage. 

10 SEC. 11. EFFECTIVE DATE. 

11 Except as otherwise provided in this Act, this Act and 

12 the amendments made by this Act take effect on October 

13 1, 2012. 

Æ 


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