```

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2261 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Revenue Loss 
Assistance and Crop Insurance Enhancement Act of 2012''.
    (b) Table of Contents.--The table of contents of 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.

SEC. 2. REVENUE LOSS ASSISTANCE PROGRAM AND COUNTER-CYCLICAL PROGRAM.

    (a) In General.--Title I of the Food, Conservation, and Energy Act 
of 2008 is amended--
            (1) by striking section 1001 (7 U.S.C. 8702);
            (2) by striking subtitles A and C (7 U.S.C. 8711 et seq.); 
        and
            (3) by inserting before subtitle B (7 U.S.C. 8731 et seq.) 
        the following:

``SEC. 1001. DEFINITIONS.

    ``In this title:
            ``(1) Base acres.--The term `base acres', with respect to a 
        covered commodity on a farm, means the number of acres 
        established under section 1101 or 1302 of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 7911, 7952) or section 
        1101, 1108, or 1302 of this Act, as in effect on September 30, 
        2012, subject to any adjustment under section 1101.
            ``(2) Counter-cyclical payment.--The term `counter-cyclical 
        payment' means a payment made to producers on a farm under 
        section 1104.
            ``(3) Counter-cyclical payment acres.--The term `counter-
        cyclical payment acres' means 75 percent of the base acres of a 
        covered commodity on a farm for which counter-cyclical payments 
        are made.
            ``(4) Covered commodity.--The term `covered commodity' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        long grain rice, medium grain rice, pulse crops, peanuts, 
        soybeans, and other oilseeds.
            ``(5) Effective price.--The term `effective price', with 
        respect to a covered commodity for a crop year, means the price 
        calculated by the Secretary under section 1104 to determine 
        whether counter-cyclical payments are required to be made for 
        that crop year.
            ``(6) Extra long staple cotton.--The term `extra long 
        staple cotton' means cotton that--
                    ``(A) is produced from pure strain varieties of the 
                Barbadense species or any hybrid of the species, or 
                other similar types of extra long staple cotton, 
                designated by the Secretary, having characteristics 
                needed for various end uses for which United States 
                upland cotton is not suitable and grown in irrigated 
                cotton-growing regions of the United States designated 
                by the Secretary or other areas designated by the 
                Secretary as suitable for the production of the 
                varieties or types; and
                    ``(B) is ginned on a roller-type gin or, if 
                authorized by the Secretary, ginned on another type gin 
                for experimental purposes.
            ``(7) Loan commodity.--The term `loan commodity' means 
        wheat, corn, grain sorghum, barley, oats, upland cotton, extra 
        long staple cotton, long grain rice, medium grain rice, 
        soybeans, other oilseeds, graded wool, nongraded wool, mohair, 
        honey, dry peas, lentils, peanuts, small chickpeas, and large 
        chickpeas.
            ``(8) Medium grain rice.--The term `medium grain rice' 
        includes short grain rice.
            ``(9) Other oilseed.--The term `other oilseed' means a crop 
        of sunflower seed, rapeseed, canola, safflower, flaxseed, 
        mustard seed, crambe, sesame seed, or any oilseed designated by 
        the Secretary.
            ``(10) Payment yield.--The term `payment yield' means the 
        yield established for counter-cyclical payments under section 
        1102 or 1302 of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 7912, 7952), section 1102 of 1302 of this Act, 
        as in effect on September 30, 2012, or section 1102 or 1106, or 
        for revenue loss assistance program payments under section 
        1103, for a farm for a covered commodity.
            ``(11) Producer.--
                    ``(A) In general.--The term `producer' means an 
                owner, operator, landlord, tenant, or sharecropper that 
                shares in the risk of producing a crop and is entitled 
                to share in the crop available for marketing from the 
                farm, or would have shared had the crop been produced.
                    ``(B) Hybrid seed.--In determining whether a grower 
                of hybrid seed is a producer, the Secretary shall--
                            ``(i) not take into consideration the 
                        existence of a hybrid seed contract; and
                            ``(ii) ensure that program requirements do 
                        not adversely affect the ability of the grower 
                        to receive a payment under this title.
            ``(12) Pulse crop.--The term `pulse crop' means dry peas, 
        lentils, small chickpeas, and large chickpeas.
            ``(13) Revenue loss assistance program payment.--The term 
        `revenue loss assistance program payment' means a payment made 
        to producers on a farm under section 1103.
            ``(14) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia; and
                    ``(C) the Commonwealth of Puerto Rico.
            ``(15) Target price.--The term `target price' means the 
        price per bushel, pound, or hundredweight (or other appropriate 
        unit) of a covered commodity used to determine the payment rate 
        for counter-cyclical payments.
            ``(16) United states.--The term `United States', when used 
        in a geographical sense, means all of the States.
            ``(17) United states premium factor.--The term `United 
        States Premium Factor' means the percentage by which the 
        difference in the United States loan schedule premiums for 
        Strict Middling (SM) 1\1/8\-inch upland cotton and for Middling 
        (M) 1\3/32\-inch upland cotton exceeds the difference in the 
        applicable premiums for comparable international qualities.

  ``Subtitle A--Revenue Loss Assistance Program and Counter-Cyclical 
                                Program

``SEC. 1101. BASE ACRES.

    ``(a) Adjustment of Base Acres.--
            ``(1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for covered 
        commodities for a farm whenever any of the following 
        circumstances occurs:
                    ``(A) A conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) with respect to the farm expires or is 
                voluntarily terminated, or was terminated or expired 
                during the period beginning on October 1, 2007, and 
                ending on the date of enactment of this Act.
                    ``(B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary, or was 
                released during the period beginning on October 1, 
                2007, and ending on the date of enactment of this Act.
                    ``(C) The producer has eligible oilseed acreage as 
                the result of the Secretary designating additional 
                oilseeds, which shall be determined in the same manner 
                as eligible oilseed acreage under section 1101(a)(2) of 
                the Farm Security and Rural Investment Act of 2002 (7 
                U.S.C. 7911(a)(2)).
            ``(2) Special conservation reserve acreage payment rules.--
        For the crop year in which a base acres adjustment under 
        subparagraph (A) or (B) of paragraph (1) is first made, the 
        owner of the farm shall elect to receive either revenue loss 
        assistance program payments and counter-cyclical payments with 
        respect to the acreage added to the farm under this subsection 
        or a prorated payment under the conservation reserve contract, 
        but not both.
    ``(b) Prevention of Excess Base Acres.--
            ``(1) Required reduction.--If the sum of the base acres for 
        a farm, together with the acreage described in paragraph (2) 
        exceeds the actual cropland acreage of the farm, the Secretary 
        shall reduce the base acres for 1 or more covered commodities 
        for the farm so that the sum of the base acres and acreage 
        described in paragraph (2) does not exceed the actual cropland 
        acreage of the farm.
            ``(2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                    ``(A) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
                    ``(B) Any other acreage on the farm enrolled in a 
                Federal conservation program for which payments are 
                made in exchange for not producing an agricultural 
                commodity on the acreage.
                    ``(C) If the Secretary designates additional 
                oilseeds, any eligible oilseed acreage, which shall be 
                determined in the same manner as eligible oilseed 
                acreage under section 1101(a)(2) of the Farm Security 
                and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)).
            ``(3) Selection of acres.--The Secretary shall give the 
        owner of the farm the opportunity to select the base acres for 
        a covered commodity for the farm against which the reduction 
        required by paragraph (1) will be made.
            ``(4) Exception for double-cropped acreage.--In applying 
        paragraph (1), the Secretary shall make an exception in the 
        case of double cropping, as determined by the Secretary.
    ``(c) Reduction in Base Acres.--
            ``(1) Reduction at option of owner.--
                    ``(A) In general.--The owner of a farm may reduce, 
                at any time, the base acres for any covered commodity 
                for the farm.
                    ``(B) Effect of reduction.--A reduction under 
                subparagraph (A) shall be permanent and made in a 
                manner prescribed by the Secretary.
            ``(2) Required action by secretary.--
                    ``(A) In general.--The Secretary shall 
                proportionately reduce base acres on a farm for covered 
                commodities for land that has been subdivided and 
                developed for multiple residential units or other 
                nonfarming uses if the size of the tracts and the 
                density of the subdivision is such that the land is 
                unlikely to return to the previous agricultural use, 
                unless the producers on the farm demonstrate that the 
                land--
                            ``(i) remains devoted to commercial 
                        agricultural production; or
                            ``(ii) is likely to be returned to the 
                        previous agricultural use.
                    ``(B) Requirement.--The Secretary shall establish 
                procedures to identify land described in subparagraph 
                (A).
            ``(3) Review and report.--Each year, to ensure, to the 
        maximum extent practicable, that payments are received only by 
        producers, the Secretary shall submit to Congress a report that 
        describes the results of the actions taken under paragraph (2).
    ``(d) Treatment of Farms With Limited Base Acres.--
            ``(1) Prohibition on payments.--Except as provided in 
        paragraph (2) and notwithstanding any other provision of this 
        title, a producer on a farm may not receive revenue loss 
        assistance program payments or counter-cyclical payments if the 
        sum of the base acres of the farm is 10 acres or less, as 
        determined by the Secretary.
            ``(2) Exceptions.--Paragraph (1) shall not apply to a farm 
        owned or operated by--
                    ``(A) a socially disadvantaged farmer or rancher 
                (as defined in section 355(e) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2003(e))); or
                    ``(B) a limited resource farmer or rancher, as 
                defined by the Secretary.
            ``(3) Data collection and publication.--The Secretary 
        shall--
                    ``(A) collect and publish segregated data and 
                survey information about the farm profiles, utilization 
                of land, and crop production; and
                    ``(B) perform an evaluation on the supply and price 
                of fruits and vegetables based on the effects of 
                suspension of base acres under this section.

``SEC. 1102. PAYMENT YIELDS.

    ``For the purpose of making revenue loss assistance program 
payments and counter-cyclical payments under this subtitle, the 
Secretary shall provide for the establishment of a payment yield for 
each farm for any designated oilseed or eligible pulse crop for which a 
payment yield was not established under section 1102 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7912) or this 
section as in effect on September 30, 2012.

``SEC. 1103. REVENUE LOSS ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Farm.--The term `farm' means, in relation to an 
        eligible producer on a farm, the sum of all acreage in all 
        counties of the covered commodity that is planted or intended 
        to be planted for harvest by the eligible producer.
            ``(2) Noninsured crop disaster assistance program.--The 
        term `noninsured crop disaster assistance program' means the 
        program established by section 196 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7333).
            ``(3) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term in section 355(e) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2003(e)).
    ``(b) Payments Required.--Beginning with the 2013 crop year of each 
covered commodity, the Secretary shall make revenue loss assistance 
payments to eligible producers on farms in accordance with this 
section.
    ``(c) Coverage Provided.--The revenue loss assistance program under 
this section shall cover losses suffered by a producer with respect to 
covered commodities on a farm in excess of 12 percent and up to a 
maximum of 25 percent of the historic revenue of the producer.
    ``(d) Eligibility.--A producer on a farm shall be eligible for 
assistance under this section--
            ``(1) in the case of each insurable covered commodity 
        produced on the farm (excluding grazing land), if the producer 
        obtains a policy or plan of insurance under subtitle A of the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (excluding a 
        crop insurance pilot program under that subtitle);
            ``(2) in the case of each noninsurable covered commodity 
        produced on the farm, if the producer files the required 
        paperwork, and pays the administrative fee by the applicable 
        State filing deadline, for the noninsured crop disaster 
        assistance program; or
            ``(3) if the producer is a socially disadvantaged farmer or 
        rancher.
    ``(e) Payment Amount.--
            ``(1) In general.--Subject to paragraph (2), the amount of 
        a revenue loss assistance payment for a covered commodity on a 
        farm to be paid to a producer of the covered commodity on the 
        farm during an applicable crop year shall equal the product 
        obtained by multiplying--
                    ``(A) the per acre revenue loss of the producer for 
                the covered commodity on the farm, as determined under 
                paragraph (2)(A);
                    ``(B) the payment factor determined under paragraph 
                (2)(B);
                    ``(C) in the case of acreage that the producer was 
                prevented from planting, the applicable prevented 
                planting payment factor determined under paragraph 
                (2)(C); and
                    ``(D) the payment acres on the farm determined 
                under paragraph (2)(D).
            ``(2) Revenue loss payment factors.--For purposes of 
        paragraph (1):
                    ``(A) Revenue loss.--The amount of the per acre 
                revenue loss of the producer shall be equal to the 
                product obtained by multiplying--
                            ``(i) the lesser of--
                                    ``(I) the amount that--
                                            ``(aa) 88 percent of the 
                                        historic revenue per acre 
                                        calculated under subsection 
                                        (f); exceeds
                                            ``(bb) the actual crop 
                                        revenue per acre determined 
                                        under subsection (g); or
                                    ``(II) the amount that is the 
                                difference between--
                                            ``(aa) 88 percent of the 
                                        historic revenue per acre 
                                        calculated under subsection 
                                        (f); and
                                            ``(bb) 75 percent of the 
                                        historic revenue per acre 
                                        calculated under subsection 
                                        (f); and
                            ``(ii) the payment acres calculated under 
                        subparagraph (D).
                    ``(B) Payment factor.--Except as provided in 
                subparagraph (C), the payment factor shall be 65 
                percent.
                    ``(C) Prevented planting payment factor.--For 
                producers who have been prevented from planting and 
                have purchased a crop insurance policy under subtitle A 
                of the Federal Crop Insurance Act (7 U.S.C. 1501 et 
                seq.), the prevented planting factor shall be 45 
                percent.
                    ``(D) Payment acres.--
                            ``(i) In general.--The payment acres for a 
                        covered commodity on a farm shall equal the sum 
                        of--
                                    ``(I) the number of acres planted 
                                to the covered commodity on the farm; 
                                and
                                    ``(II) the number of acres 
                                prevented from being planted to covered 
                                commodity on the farm.
                            ``(ii) Adjustment.--If the total payment 
                        acres for all covered commodities on the farm 
                        exceeds the total base acres for all covered 
                        commodities on the farm, the total payment 
                        acres for the covered commodities on the farm 
                        shall be equal to the product obtained by 
                        multiplying--
                                    ``(I) the total payment acres of 
                                each covered commodity on the farm 
                                determined under clause (i); by
                                    ``(II) the factor determined by 
                                dividing--
                                            ``(aa) the total base acres 
                                        for all covered commodities on 
                                        the farm; by
                                            ``(bb) the total acreage 
                                        planted or prevented from being 
                                        planted to all covered 
                                        commodities on the farm.
    ``(f) Historic Revenue Per Acre.--
            ``(1) In general.--Subject to subsection (h), the historic 
        revenue per acre for a covered commodity produced on a farm 
        shall be equal to the product obtained by multiplying--
                    ``(A) the production yield for the covered 
                commodity determined under paragraph (2)(A); and
                    ``(B) the historic commodity price for the covered 
                commodity determined under paragraph (2)(B).
            ``(2) Historic revenue factors.--For purposes of paragraph 
        (1):
                    ``(A) Production yield.--The production yield of a 
                covered commodity shall be the higher of--
                            ``(i) a production yield based on the 
                        weighted average of the actual production 
                        history yields of the producer for all acreage 
                        devoted to the covered commodity on the farm, 
                        as determined by the Secretary;
                            ``(ii) the weighted average of production 
                        yields for the most recent 5 crop years for all 
                        acreage devoted to the covered commodity on the 
                        farm, excluding the crop years with the highest 
                        and lowest yields, as determined by the 
                        Secretary;
                            ``(iii) the production yield that is equal 
                        to--
                                    ``(I) the payment yield established 
                                for the counter-cyclical program that 
                                is in effect as of September 30, 2012; 
                                or
                                    ``(II) the payment yield 
                                established under section 1102; or
                            ``(iv) the yield established by the 
                        Secretary in the case of a producer on a farm 
                        that does not have a production yield 
                        established under clause (i), (ii), or (iii).
                    ``(B) Historic commodity price.--The historic 
                commodity price for each crop of a covered commodity 
                produced on a farm shall be equal to the higher of--
                            ``(i) the target price for the covered 
                        commodity under section 1104(c); or
                            ``(ii) subject to subparagraph (C), the 
                        average national price (as determined by the 
                        Secretary) for each covered commodity, by type 
                        or variety as applicable, for the marketing 
                        years for the immediately preceding 5 crops, 
                        excluding the year in which the average price 
                        received was the highest in the period and the 
                        year in which the average price received was 
                        the lowest in the period, as determined by the 
                        Secretary.
                    ``(C) Limitation.--The average national price for 
                each covered commodity under subparagraph (B)(ii) may 
                not exceed the total economic cost of production for 
                each covered commodity for the applicable crop year, as 
                determined by the Secretary.
    ``(g) Actual Crop Revenue Per Acre.--
            ``(1) In general.--Subject to subsection (h), the actual 
        crop revenue per acre for a covered commodity produced on a 
        farm during the applicable crop year shall be equal to the sum 
        of--
                    ``(A) the product obtained by multiplying--
                            ``(i) the actual yield for the covered 
                        commodity on the farm determined under 
                        paragraph (2)(A); and
                            ``(ii) the average price of the covered 
                        commodity determined under paragraph (2)(B); 
                        and
                    ``(B) the average amount of crop insurance 
                indemnities and noninsured crop disaster assistance 
                payments received by a producer on the farm determined 
                under paragraph (2)(C).
            ``(2) Actual crop revenue factors.--For purposes of 
        paragraph (1):
                    ``(A) Actual yield.--The actual yield of a covered 
                commodity shall be equal to the weighted average yield 
                of all planted acres of the covered commodity on the 
                farm, as determined by the Secretary.
                    ``(B) Average price.--
                            ``(i) In general.--Subject to clause (ii), 
                        the average price of a covered commodity shall 
                        be equal to the national average price for each 
                        covered commodity on the farm, determined by 
                        type or class if applicable in the case of 
                        wheat, barley, and rice, for the first 4 months 
                        of the marketing year of the covered commodity 
                        during which the crop of the covered commodity 
                        would normally be expected to be harvested, as 
                        determined by the Secretary.
                            ``(ii) Adjustment.--The Secretary shall 
                        adjust the average national price of a covered 
                        commodity received by a producer on a farm to 
                        reflect--
                                    ``(I) the average quality discounts 
                                applied to the local or regional market 
                                price of a crop or mechanically 
                                harvested forage due to damage of the 
                                covered commodity from adverse weather, 
                                as determined annually by Secretary;
                                    ``(II) the reduced value of the 
                                covered commodity due to excess 
                                moisture resulting from a disaster-
                                related condition; or
                                    ``(III) as the Secretary determines 
                                appropriate, regional variations in 
                                quality recognized under the crop 
                                insurance program under subtitle A of 
                                the Federal Crop Insurance Act (7 
                                U.S.C. 1501 et seq.) and the noninsured 
                                crop disaster assistance program.
                    ``(C) Net crop insurance indemnities.--For each 
                covered commodity, the average amount of crop insurance 
                indemnities and noninsured crop disaster assistance 
                payments received by a producer on a farm shall be 
                equal to the weighted average amount of crop insurance 
                indemnities less the amount of the producer-paid 
                premium per acre and noninsured crop disaster 
                assistance payments per acre received by the producer.
    ``(h) Exclusion of Ghost Acres.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        crop subsequently planted on land determined for purposes of 
        the Federal crop insurance program to be prevented planting 
        acreage during the same crop year shall not be considered in 
        calculating the historic revenue per acre or the actual crop 
        revenue per acre for the farm under this section.
            ``(2) Exception.--Paragraph (1) shall not apply to a farm 
        that, as determined by the Secretary--
                    ``(A) has a history of double-cropping; and
                    ``(B) is located in an area in which double-
                cropping is an acceptable agricultural practice for 
                purposes of the Federal crop insurance program.

``SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    ``(a) Payment Required.--For each of the 2013 through 2017 crop 
years for each covered commodity, the Secretary shall make counter-
cyclical payments to producers on farms for which payment yields and 
base acres are established with respect to the covered commodity if the 
Secretary determines that the effective price for the covered commodity 
is less than the target price for the covered commodity.
    ``(b) Effective Price.--
            ``(1) Covered commodities other than rice.--Except as 
        provided in paragraph (2), for purposes of subsection (a), the 
        effective price for a covered commodity is equal to the higher 
        of the following:
                    ``(A) The national average market price received by 
                producers during the first 4 months of the marketing 
                year for the covered commodity, as determined by the 
                Secretary.
                    ``(B) The national average loan rate for a 
                marketing assistance loan for the covered commodity in 
                effect for the applicable period under subtitle B.
            ``(2) Rice.--In the case of long grain rice and medium 
        grain rice, for purposes of subsection (a), the effective price 
        for each type or class of rice is equal to the higher of the 
        following:
                    ``(A) The national average market price received by 
                producers during the first 4 months of the marketing 
                year for the type or class of rice, as determined by 
                the Secretary.
                    ``(B) The national average loan rate for a 
                marketing assistance loan for the type or class of rice 
                in effect for the applicable period under subtitle B.
    ``(c) Target Price.--For purposes of each of the 2013 through 2017 
crop years, the target prices for covered commodities shall be as 
follows:
            ``(1) Wheat, $4.17 per bushel.
            ``(2) Corn, $2.63 per bushel.
            ``(3) Grain sorghum, $2.63 per bushel.
            ``(4) Barley, $2.63 per bushel.
            ``(5) Oats, $1.79 per bushel.
            ``(6) Upland cotton, $0.65 per pound.
            ``(7) Long grain rice, $10.50 per hundredweight.
            ``(8) Medium grain rice, $10.50 per hundredweight.
            ``(9) Soybeans, $6.00 per bushel.
            ``(10) Other oilseeds, $12.68 per hundredweight.
            ``(11) Dry peas, $8.32 per hundredweight.
            ``(12) Lentils, $12.81 per hundredweight.
            ``(13) Small chickpeas, $10.36 per hundredweight.
            ``(14) Large chickpeas, $12.81 per hundredweight.
            ``(15) Peanuts, $495 per ton.
    ``(d) Payment Rate.--The payment rate used to make counter-cyclical 
payments with respect to a covered commodity for a crop year shall be 
equal to the difference between--
            ``(1) the target price for the covered commodity; and
            ``(2) the effective price determined under subsection (b) 
        for the covered commodity.
    ``(e) Payment Amount.--If counter-cyclical payments are required to 
be paid under this section for any of the 2013 through 2017 crop years 
of a covered commodity, the amount of the counter-cyclical payment to 
be paid to the producers on a farm for that crop year shall be equal to 
the product of the following:
            ``(1) The payment rate specified in subsection (d).
            ``(2) The counter-cyclical payment acres of the covered 
        commodity on the farm.
            ``(3) The payment yield for the covered commodity for the 
        farm.
    ``(f) Time for Payments.--If the Secretary determines under 
subsection (a) that counter-cyclical payments are required to be made 
under this section for the crop of a covered commodity, as soon as 
practicable after the end of the first 4 months of the marketing year 
for the covered commodity, the Secretary shall make the counter-
cyclical payments for the crop.

``SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
              PAYMENTS.

    ``(a) Compliance With Certain Requirements.--
            ``(1) Requirements.--Before the producers on a farm may 
        receive revenue loss assistance program payments or counter-
        cyclical payments with respect to the farm, the producers shall 
        agree, during the crop year for which the payments are made and 
        in exchange for the payments--
                    ``(A) to comply with applicable conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.);
                    ``(B) to comply with applicable wetland protection 
                requirements under subtitle C of title XII of that Act 
                (16 U.S.C. 3821 et seq.);
                    ``(C) to comply with the planting flexibility 
                requirements of section 1106;
                    ``(D) to use the land on the farm, in a quantity 
                equal to the attributable base acres for the farm for 
                an agricultural or conserving use, and not for a 
                nonagricultural commercial, industrial, or residential 
                use, as determined by the Secretary; and
                    ``(E) to effectively control noxious weeds and 
                otherwise maintain the land in accordance with sound 
                agricultural practices, as determined by the Secretary, 
                if the agricultural or conserving use involves the 
                noncultivation of any portion of the land referred to 
                in subparagraph (D).
            ``(2) Compliance.--The Secretary may issue such rules as 
        the Secretary considers necessary to ensure producer compliance 
        with the requirements of paragraph (1).
            ``(3) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of this 
        subsection if the modifications are consistent with the 
        objectives of this subsection, as determined by the Secretary.
    ``(b) Transfer or Change of Interest in Farm.--
            ``(1) Termination.--
                    ``(A) In general.--Except as provided in paragraph 
                (2), a transfer of (or change in) the interest of the 
                producers on a farm in base acres for which revenue 
                loss assistance program payments or counter-cyclical 
                payments are made shall result in the termination of 
                the revenue loss assistance program payments or 
                counter-cyclical payments to the extent the payments 
                are made or based on the base acres, unless the 
                transferee or owner of the acreage agrees to assume all 
                obligations under subsection (a).
                    ``(B) Effective date.--The termination shall take 
                effect on the date determined by the Secretary.
            ``(2) Exception.--If a producer entitled to a revenue loss 
        assistance program payment or counter-cyclical payment dies, 
        becomes incompetent, or is otherwise unable to receive the 
        payment, the Secretary shall make the payment, in accordance 
        with rules issued by the Secretary.
    ``(c) Reports.--
            ``(1) Acreage reports.--As a condition on the receipt of 
        any benefits under this subtitle or subtitle B, the Secretary 
        shall require producers on a farm to submit to the Secretary 
        annual acreage reports with respect to all cropland on the 
        farm.
            ``(2) Penalties.--No penalty with respect to benefits under 
        this subtitle or subtitle B shall be assessed against the 
        producers on a farm for an inaccurate acreage report unless the 
        producers on the farm knowingly and willfully falsified the 
        acreage report.
    ``(d) Tenants and Sharecroppers.--In carrying out this subtitle, 
the Secretary shall provide adequate safeguards to protect the 
interests of tenants and sharecroppers.
    ``(e) Sharing of Payments.--The Secretary shall provide for the 
sharing of revenue loss assistance program payments and counter-
cyclical payments among the producers on a farm on a fair and equitable 
basis.

``SEC. 1106. PLANTING FLEXIBILITY.

    ``(a) Definition of Noncovered Commodity.--In this section, the 
term `noncovered commodity' means--
            ``(1) fruits;
            ``(2) vegetables; and
            ``(3) wild rice.
    ``(b) Permitted Crops.--Subject to subsection (c), any commodity or 
crop (other than a controlled substance) may be planted on base acres 
on a farm.
    ``(c) Reduction in Base Acres.--
            ``(1) In general.--Subject to paragraph (2), for each crop 
        year for which a noncovered commodity is planted on base acres 
        on a farm, the total base acres used to calculate revenue loss 
        assistance program payments and counter-cyclical payments shall 
        be reduced by an acre for each acre planted to the noncovered 
        commodity.
            ``(2) Double-cropping.--In any region or on any farm that 
        has a history of double-cropping of covered commodities with 
        noncovered commodities, as determined by the Secretary, a 
        producer may receive full revenue loss assistance program 
        payments and counter-cyclical payments for crops of covered 
        commodities, but no payments for crops of noncovered 
        commodities.

``SEC. 1107. SPECIAL RULE FOR LONG GRAIN AND MEDIUM GRAIN RICE.

    ``(a) Calculation Method.--Subject to subsections (b) and (c), for 
the purposes of determining the amount of the revenue loss assistance 
program payments and counter-cyclical payments to be paid to the 
producers on a farm for long grain rice and medium grain rice under 
sections 1103 and 1104, respectively, the base acres of rice on the 
farm shall be apportioned using the 4-year average of the percentages 
of acreage planted in the applicable State to long grain rice and 
medium grain rice during the 2003 through 2006 crop years, as 
determined by the Secretary.
    ``(b) Producer Election.--As an alternative to the calculation 
method described in subsection (a), the Secretary shall provide 
producers on a farm the opportunity to elect to apportion rice base 
acres on the farm using the 4-year average of--
            ``(1) the percentages of acreage planted on the farm to 
        long grain rice and medium grain rice during the 2003 through 
        2006 crop years;
            ``(2) the percentages of any acreage on the farm that the 
        producers were prevented from planting to long grain rice and 
        medium grain rice during the 2003 through 2006 crop years 
        because of drought, flood, other natural disaster, or other 
        condition beyond the control of the producers, as determined by 
        the Secretary; and
            ``(3) in the case of a crop year for which a producer on a 
        farm elected not to plant to long grain and medium grain rice 
        during the 2003 through 2006 crop years, the percentages of 
        acreage planted in the applicable State to long grain rice and 
        medium grain rice, as determined by the Secretary.
    ``(c) Limitation.--In carrying out this section, the Secretary 
shall use the same total base acres, counter-cyclical payment acres, 
and payment yields established with respect to rice under sections 1101 
and 1102 of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7911, 7912), as in effect on September 30, 2007, subject to any 
adjustment under section 1101 of this Act.

``SEC. 1108. PERIOD OF EFFECTIVENESS.

    ``This subtitle shall be effective beginning with the 2013 crop 
year of each covered commodity through the 2017 crop year.''.

SEC. 3. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS.

    (a) Loan Rates for Nonrecourse Marketing Assistance Loans.--Section 
1202 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8732) 
is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(c) 2013 Through 2017 Crop Years.--For purposes of each of the 
2013 through 2017 crop year, the loan rate for a marketing assistance 
loan under section 1201 for a loan commodity shall be equal to the 
following:
            ``(1) In the case of wheat, $2.94 per bushel.
            ``(2) In the case of corn, $1.95 per bushel.
            ``(3) In the case of grain sorghum, $1.95 per bushel.
            ``(4) In the case of barley, $1.95 per bushel.
            ``(5) In the case of oats, $1.39 per bushel.
            ``(6) In the case of base quality of upland cotton--
                    ``(A) for the 2012 crop year, $0.52 per pound; and
                    ``(B) for the 2013 and each subsequent crop year, 
                the simple average of the adjusted prevailing world 
                price for the 2 immediately preceding marketing years, 
                as determined by the Secretary and announced the 
                October 1 preceding the next domestic plantings, but in 
                no case less than $0.47 per pound or more than $0.52 
                per pound.
            ``(7) In the case of extra long staple cotton, $0.7977 per 
        pound.
            ``(8) In the case of long grain rice, $6.50 per 
        hundredweight.
            ``(9) In the case of medium grain rice, $6.50 per 
        hundredweight.
            ``(10) In the case of soybeans, $5.00 per bushel.
            ``(11) In the case of other oilseeds, $10.09 per 
        hundredweight for each of the following kinds of oilseeds:
                    ``(A) Sunflower seed.
                    ``(B) Rapeseed.
                    ``(C) Canola.
                    ``(D) Safflower.
                    ``(E) Flaxseed.
                    ``(F) Mustard seed.
                    ``(G) Crambe.
                    ``(H) Sesame seed.
                    ``(I) Other oilseeds designated by the Secretary.
            ``(12) In the case of dry peas, $5.40 per hundredweight.
            ``(13) In the case of lentils, $11.28 per hundredweight.
            ``(14) In the case of small chickpeas, $7.43 per 
        hundredweight.
            ``(15) In the case of large chickpeas, $11.28 per 
        hundredweight.
            ``(16) In the case of graded wool, $1.15 per pound.
            ``(17) In the case of nongraded wool, $0.40 per pound.
            ``(18) In the case of mohair, $4.20 per pound.
            ``(19) In the case of honey, $0.69 per pound.
            ``(20) In the case of peanuts, $355 per ton.''.
    (b) Peanuts Marketing.--Section 1204 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8734) is amended by adding at the end the 
following:
    ``(i) Peanuts Marketing.--A marketing association or cooperative 
may market peanuts for which a loan is made under this section in any 
manner that conforms to consumer needs, including the separation of 
peanuts by type and quality.''.

SEC. 4. EXTENSION OF EXPIRING AUTHORITIES.

    (a) Food, Conservation, and Energy Act of 2008.--
            (1) In general.--The following provisions of the Food, 
        Conservation, and Energy Act of 2008 are amended by striking 
        ``2012'' each place it appears and inserting ``2017'':
                    (A) Section 1201(a)(1) (7 U.S.C. 8731(a)(1)).
                    (B) Section 1205(a)(2)(B) (7 U.S.C. 8735(a)(2)(B)).
                    (C) Subsections (a) and (d) of section 1206 (7 
                U.S.C. 8736).
                    (D) Subsections (a)(2) and (b) of section 1209 (7 
                U.S.C. 8739).
                    (E) Section 1307(a)(1) (7 U.S.C. 8757(a)(1)).
                    (F) Subsections (g) and (h)(1) of section 1506 (7 
                U.S.C. 8773).
                    (G) Section 1602 (7 U.S.C. 8782).
                    (H) Section 1605(h) (7 U.S.C. 8783(h)).
                    (I) Subsections (b)(2)(A) and (c) of section 1612 
                (7 U.S.C. 8787).
                    (J) Section 1613(c) (7 U.S.C. 8788(c)).
                    (K) Section 1621(d) (7 U.S.C. 8792(d)).
            (2) Other amendments.--
                    (A) Adjustment of prevailing world market price for 
                upland cotton.--Section 1204(e)(2)(B) of the Food, 
                Conservation, and Energy Act of 2008 (7 U.S.C. 
                8734(e)(2)(B)) is amended by striking ``July 31, 2013'' 
                and inserting ``July 31, 2018''.
                    (B) Special marketing loan provisions for upland 
                cotton.--Section 1207(a)(2)(A) of the Food, 
                Conservation, and Energy Act of 2008 (7 U.S.C. 
                8737(a)(2)(A)) is amended by striking ``July 31, 2013'' 
                and inserting ``July 31, 2018''.
                    (C) Special competitive provisions for extra long 
                staple cotton.--Section 1208(a) of the Food, 
                Conservation, and Energy Act of 2008 (7 U.S.C. 8738(a)) 
                is amended in the matter preceding paragraph (1) by 
                striking ``July 31, 2013'' and inserting ``July 31, 
                2018''.
                    (D) Dairy product price support program.--Section 
                1501(b) of the Food, Conservation, and Energy Act of 
                2008 (7 U.S.C. 8771(b)) is amended by striking 
                ``December 31, 2012'' and inserting ``December 31, 
                2017''.
                    (E) Dairy forward pricing program.--Section 1502(e) 
                of the Food, Conservation, and Energy Act of 2008 (7 
                U.S.C. 8772(e)) is amended--''
                            (i) in paragraph (1), by striking 
                        ``September 30, 2012'' and inserting 
                        ``September 30, 2017''; and
                            (ii) in paragraph (2), by striking 
                        ``September 30, 2015'' and inserting 
                        ``September 30, 2020''.
    (b) Other Laws.--The following provisions of law are amended by 
striking ``2012'' each place it appears and inserting ``2017'':
            (1) The matter preceding subparagraph (A) of section 
        359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1359bb(a)(1)).
            (2) Section 359l(a)of the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1359ll(a)).
            (3) Section 153(a) of the Food Security Act of 1985 (15 
        U.S.C. 713a-14(a)).
            (4) Section 3 of Public Law 90-484 (7 U.S.C. 450l).
            (5) Section 113(e)(2) of the Dairy Production Stabilization 
        Act of 1983 (7 U.S.C. 4504(e)(2)).
            (6)(A) Section 156 of the Federal Agriculture Improvement 
        and Reform Act of 1996 (7 U.S.C. 7272) is amended--
                    (i) in subsection (a)(5), by striking ``the 2012 
                crop year'' and inserting ``each of the 2013 through 
                2017 crop years'';
                    (ii) in subsection (b)(2), by striking ``2012'' and 
                inserting ``2017''; and
                    (iii) in subsection (i), by striking ``2012'' and 
                inserting ``2017''.
            (B) Section 1402 of the Food, Conservation, and Energy Act 
        of 2008 (7 U.S.C. 3602 note; Public Law 110-246) is amended by 
        striking ``2007'' and inserting ``2012''.
    (c) Technical Corrections.--
            (1) Section 359f(c)(1)(B) of the Agricultural Adjustment 
        Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a 
        period at the end.
            (2) Section 1603(g) of the Food, Conservation, and Energy 
        Act of 2008 (Public Law 110-246; 122 Stat. 1739) is amended in 
        paragraphs (2) through (6) and the amendments made by those 
        paragraphs by striking ``1703(a)'' each place it appears and 
        inserting ``1603(a)''.
            (3) This paragraph and the amendments made by this 
        paragraph take effect as if included in the Food, Conservation, 
        and Energy Act of 2008 (Public Law 110-246; 122 Stat. 1651).

SEC. 5. REPEAL OF DIRECT PAYMENT AND ACRE PROGRAMS.

    (a) Food, Conservation, and Energy Act of 2008.--
            (1) The table of contents in section 1(b) of the Food, 
        Conservation, and Energy Act of 2008 (122 Stat. 1651; 7 U.S.C. 
        8701 note) is amended in the items relating to title I--
                    (A) by striking the items relating to subtitle A 
                and inserting the following:

  ``Subtitle A--Revenue Loss Assistance Program and Counter-Cyclical 
                                Program

``Sec. 1101. Base acres.
``Sec. 1102. Payment yields.
``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.'';
                and
                    (B) by striking the items relating to subtitle C.
            (2) Section 1206(b) of the Food, Conservation, and Energy 
        Act of 2008 (7 U.S.C. 8736(b)) is amended--
                    (A) in paragraph (1)(B)(ii), by striking ``the 
                payment yield in effect for the calculation of direct 
                payments under subtitle A with respect to that loan 
                commodity on the farm or, in the case of a farm without 
                a payment yield for that loan commodity,''; and
                    (B) in paragraph (2)(B)(ii), by striking ``the 
                payment yield in effect for the calculation of direct 
                payments under subtitle A with respect to wheat on the 
                farm or, in the case of a farm without a payment yield 
                for wheat,''.
    (b) Food Security Act of 1985.--
            (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
        1308) is amended by striking subsections (b) and (c) and 
        inserting the following:
    ``(b) Limitation on Revenue Loss Assistance Program Payments and 
Counter-Cyclical Payments for Covered Commodities.--The total amount of 
revenue loss assistance program payments and counter-cyclical program 
payments received, directly or indirectly, by a person or legal entity 
for any crop year under subtitle A of title I of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8711 et seq.) for 1 or 
more covered commodities may not exceed $105,000.''.
            (2) Section 1001D of the Food Security Act of 1985 (7 
        U.S.C. 1308-3a) is amended--
                    (A) in subsection (b)(1)--
                            (i) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) In general.--Notwithstanding any other 
                provision of law, a person or legal entity shall not be 
                eligible to receive any benefit described in 
                subparagraph (B) during a crop, fiscal, or program 
                year, as appropriate, if the average adjusted gross 
                income of the person or legal entity exceeds 
                $999,000.'';
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B) (as so 
                        designated) by striking clause (i) and 
                        inserting the following:
                            ``(i) A revenue loss assistance program 
                        payment or counter-cyclical payment under title 
                        I of the Food, Conservation, and Energy Act of 
                        2008 (7 U.S.C. 8702 et seq.).''; and
                    (B) in subsection (f), by striking ``2012'' and 
                inserting ``2017''.

SEC. 6. SUPPLEMENTAL COVERAGE OPTION.

    (a) Availability of Supplemental Coverage Option.--Section 508(c) 
of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Yield and loss basis options.--A producer shall have 
        the option of purchasing additional coverage based on--
                    ``(A)(i) an individual yield and loss basis; or
                    ``(ii) an area yield and loss basis; or
                    ``(B) an individual yield and loss basis, 
                supplemented with coverage based on an area yield and 
                loss basis to cover a part of the deductible under the 
                individual yield and loss policy, as described in 
                paragraph (4)(C).''.
    (b) Level of Coverage.--Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (4) 
and inserting the following:
            ``(4) Level of coverage.--
                    ``(A) Dollar denomination.--Except as provided in 
                subparagraph (C), the level of coverage shall be 
                dollar-denominated.
                    ``(B) Information.--The Corporation shall provide 
                producers with information on catastrophic risk and 
                additional coverage in terms of dollar coverage (within 
                the allowable limits of coverage provided in this 
                paragraph).
                    ``(C) Supplemental coverage option.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), in the case of the 
                        supplemental coverage option described in 
                        paragraph (3)(B), the Corporation shall offer 
                        producers the opportunity to purchase coverage 
                        in combination with an individual policy or 
                        plan of insurance (other than catastrophic risk 
                        protection) offered under this subtitle that 
                        would allow indemnities to be paid to a 
                        producer equal to part of the deductible under 
                        the individual policy or plan of insurance, if 
                        sufficient area data is available (as 
                        determined by the Corporation).
                            ``(ii) Trigger.--Coverage offered under 
                        paragraph (3)(B) and clause (i) shall be 
                        triggered only if the losses in the area exceed 
                        25 percent of normal levels (as determined by 
                        the Corporation).
                            ``(iii) Coverage.--Subject to the trigger 
                        described in clause (ii) and the deductible 
                        required under clause (iv), coverage offered 
                        under paragraph (3)(B) and clause (i) shall 
                        cover the first loss incurred by the producer 
                        but not to exceed the difference between--
                                    ``(I) 75 percent; and
                                    ``(II) the coverage level selected 
                                by the producer for the underlying 
                                policy or plan of insurance.
                            ``(iv) Deductible.--Coverage offered under 
                        paragraph (3)(B) and clause (i) shall be 
                        subject to a deductible in an amount equal to 
                        25 percent of the expected value of the crop of 
                        the producer under the underlying policy or 
                        plan of insurance, as determined by the 
                        Corporation.
                            ``(v) Required terms.--The supplemental 
                        coverage option shall be offered to producers 
                        of an agricultural commodity in each county in 
                        which the agricultural commodity is produced--
                                    ``(I) at a county-wide level to the 
                                fullest extent practicable; or
                                    ``(II) in a county that lacks 
                                sufficient data, on the basis of such 
                                larger geographical area as the 
                                Corporation determines to provide 
                                sufficient data for purposes of 
                                providing the coverage.
                            ``(vi) Premium amount.--Notwithstanding 
                        subsection (d), the premium shall--
                                    ``(I) be sufficient to cover 
                                anticipated losses and a reasonable 
                                reserve; and
                                    ``(II) include an amount for 
                                operating and administrative expenses 
                                established in accordance with 
                                subsection (k)(4)(F), but not to exceed 
                                6 percent of the premium used to define 
                                the loss ratio for the supplemental 
                                coverage option.''.
    (c) Premium.--Section 508(d)(2)(B) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(d)(2)(B)) is amended in the matter preceding clause 
(i) by inserting ``or that combines an individual yield and loss basis 
and an area yield and loss basis'' after ``not based on individual 
yield''.
    (d) Payment of Portion of Premium by Corporation.--Section 
508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is 
amended by adding at the end the following:
                    ``(H) In the case of the supplemental coverage 
                option described in paragraphs (3)(B) and (4)(C) of 
                subsection (c), the amount shall be equal to the sum 
                of--
                            ``(i) not less than 70 percent of the 
                        additional premium associated with the 
                        coverage; and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage to 
                        cover operating and administrative expenses.''.
    (e) Data Sources.--Section 508(g)(2) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(g)(2)) is amended by adding at the end the 
following:
                    ``(E) Sources of yield data.--To determine yields 
                under the program established under this paragraph, the 
                Corporation shall use data collected by the Risk 
                Management Agency or the National Agricultural 
                Statistics Service, or both.''.
    (f) Administrative and Operating Costs Reimbursement Rate.--Section 
508(k)(4)(F) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) 
is amended by inserting ``or as authorized under section 508(c)(4)(C)'' 
after ``date of enactment of this subparagraph''.
    (g) Effective Date.--The Federal Crop Insurance Corporation shall 
begin to provide additional coverage based on an individual yield and 
loss basis, supplemented with coverage based on an area yield and loss 
basis, not later than for the 2013 crop year.

SEC. 7. CATASTROPHIC RISK PROTECTION PREMIUM REDUCTION.

    Section 508(d)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(d)(2)) is amended by striking subparagraph (A) and inserting the 
following:
                    ``(A) Catastrophic risk protection.--
                            ``(i) In general.--For the 2011 and 
                        previous crop years, the amount of the premium 
                        for catastrophic risk protection coverage shall 
                        be sufficient to cover anticipated losses and a 
                        reasonable reserve.
                            ``(ii) Reduction.--For the 2012 and 
                        subsequent crop years, the amount of the 
                        premium for catastrophic risk protection 
                        coverage authorized under clause (i) shall be 
                        reduced by the percentage equal to the 
                        difference between the average loss ratio for 
                        each crop and 100 percent, plus a reasonable 
                        reserve.''.

SEC. 8. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH INSURABLE 
              YIELDS.

    Section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 
1508(g)(4)(B)) is amended by striking ``60 percent'' both places it 
appears and inserting ``70 percent''.

SEC. 9. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE.

    (a) Definitions.--Section 531(a) of the Federal Crop Insurance Act 
(7 U.S.C. 1531(a)) is amended--
            (1) in paragraph (5)--
                    (A) in the matter preceding clause (i), by striking 
                the first ``under''; and
                    (B) by redesignating clauses (i) through (iii) as 
                subparagraphs (A), (B), and (C), respectively, and 
                indenting appropriately;
            (2) by striking paragraph (20); and
            (3) by redesignating paragraph (21) as paragraph (20).
    (b) Supplemental Revenue Assistance Payments.--Section 531(b) of 
the Federal Crop Insurance Act (7 U.S.C. 1531(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``from the Trust Fund'' and 
                        inserting ``of the Commodity Credit 
                        Corporation''; and
                            (ii) by striking ``the crop year'' and 
                        inserting ``during the period beginning on 
                        October 1, 2011, and ending on September 30, 
                        2012''; and
                    (B) in subparagraph (B), by striking ``crop of 
                economic significance'' and inserting ``covered 
                commodity (as defined in section 1001 of the Food, 
                Conservation, and Energy Act of 2008 (7 U.S.C. 8702)) 
                or peanuts'';
            (2) in paragraph (2)(A), in the matter preceding clause 
        (i), by striking ``60 percent'' and inserting ``50 percent'';
            (3) in paragraph (3)(A)(i), in the matter preceding 
        subclause (I), by striking ``115 percent'' and inserting ``112 
        percent''; and
            (4) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) in clause (i)(II), by inserting ``the 
                        first 4 months of'' after ``received for''; and
                            (ii) in clause (ii), by striking ``15 
                        percent'' and inserting ``100 percent''; and
                    (B) in subparagraph (C), by inserting ``the first 4 
                months of'' after ``during the''.
    (c) Livestock Indemnity Payments.--Section 531(c) of the Federal 
Crop Insurance Act (7 U.S.C. 1531(c)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``from the Trust Fund'' and 
                inserting ``of the funds of the Commodity Credit 
                Corporation for each of fiscal years 2012 through 
                2021''; and
                    (B) by inserting ``, or due to predators protected 
                or reintroduced by the Federal Government, as 
                determined by the Secretary'' before the period at the 
                end; and
            (2) in paragraph (2), by striking ``75'' and inserting 
        ``65''.
    (d) Livestock Forage Disaster Program.--Section 531(d) of the 
Federal Crop Insurance Act (7 U.S.C. 1531(d)) is amended--
            (1) in paragraph (2), by striking ``from the Trust Fund'' 
        and inserting ``of the funds of the Commodity Credit 
        Corporation for each of fiscal years 2012 through 2021'';
            (2) by striking paragraph (5); and
            (3) by redesignating paragraph (6) as paragraph (5).
    (e) Emergency Assistance for Livestock, Honey Bees, and Farm-Raised 
Fish.--Section 531(e)(1) of the Federal Crop Insurance Act (7 U.S.C. 
1531(e)(1)) is amended by striking ``$50,000,000 per year from the 
Trust Fund'' and inserting ``$20,000,000 of the funds of the Commodity 
Credit Corporation for each of fiscal years 2012 through 2021''.
    (f) Tree Assistance Program.--Section 531(f) of the Federal Crop 
Insurance Act (7 U.S.C. 1531(f)) is amended--
            (1) in paragraph (2)(A), by striking ``from the Trust 
        Fund'' and inserting ``of the funds of the Commodity Credit 
        Corporation for each of fiscal years 2012 through 2021''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A)(i), by striking ``70'' and 
                inserting ``60''; and
                    (B) in subparagraph (B), by striking ``50'' and 
                inserting ``40''.
    (g) Risk Management Purchase Requirement.--Section 531(g)(1) of the 
Federal Crop Insurance Act (7 U.S.C. 1531(g)(1)) is amended in the 
matter preceding subparagraph (A) by striking ``and (d)'' and inserting 
``, (d), and (e)''.
    (h) Conforming Amendments.--
            (1) Section 531 of the Federal Crop Insurance Act (7 U.S.C. 
        1531) is amended--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsections (j) and (k) as 
                subsections (i) and (j), respectively.
            (2) Title IX of the Trade Act of 1974 (19 U.S.C. 2497 et 
        seq.) is repealed.
    (i) Effective Date.--This section and the amendments made by this 
section take effect on October 1, 2011.

SEC. 10. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

SEC. 11. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act take effect on October 1, 2012.
                                 <all>
```