I 

115TH CONGRESS 

2D SESSION H. R. 4988 

To establish nonrecourse conservation assistance loans for loan commodities 

produced on certain farms, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 8, 2018 

Mrs. BUSTOS (for herself and Mr. BOST) introduced the following bill; which 

was referred to the Committee on Agriculture 

A BILL 

To establish nonrecourse conservation assistance loans for 

loan commodities produced on certain farms, 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. 

4 This Act may be cited as the ‘‘Conservation Assist5 ance Loan Act of 2018’’. 

6 SEC. 2. AVAILABILITY OF NONRECOURSE CONSERVATION 

7 ASSISTANCE LOANS FOR LOAN COMMOD8 ITIES. 

9 (a) NONRECOURSE LOANS AVAILABLE.— 


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1 (1) IN GENERAL.—For each of the 2018 

2 through 2022 crops of each loan commodity, the 

3 Secretary shall make available to qualified producers 

4 on a farm nonrecourse conservation assistance loans 

5 for loan commodities produced on the farm. 

6 (2) QUALIFIED PRODUCER.—In this section, 

7 the term ‘‘qualified producer’’ means a producer eli8 gible for a nonrecourse marketing loan under section 

9 1201 of the Agricultural Act of 2014 (7 U.S.C. 

10 9031) that agrees to not apply for such loan for 

11 each of the 2018 through 2022 crops described in 

12 paragraph (1). 

13 (b) ELIGIBLE PRODUCTION.—The producers on a 

14 farm shall be eligible for a conservation assistance loan 

15 under subsection (a) for any quantity of a loan commodity 

16 produced on the farm. 

17 (c) LOAN RATES FOR NONRECOURSE CONSERVATION

18 ASSISTANCE LOANS.— 

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

20 for purposes of each of the 2018 through 2022 crop 

21 years, the loan rate for a conservation assistance 

22 loan under this section for a loan commodity shall 

23 be— 

24 (A) for beginning farmers and ranchers (as 

25 determined by the Secretary), 75 percent of the 


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1 national average price received by producers 

2 during the 12-month marketing year for the 

3 loan commodity for the most recent 5 crop 

4 years, excluding— 

5 (i) the crop year with the highest 

6 price; and 

7 (ii) the crop year with the lowest 

8 price; and 

9 (B) for producers not described in para10 graph (1), 60 percent of the national average 

11 price received by producers during the 12- 

12 month marketing year for the loan commodity 

13 for the most recent 5 crop years, excluding— 

14 (i) the crop year with the highest 

15 price; and 

16 (ii) the crop year with the lowest 

17 price. 

18 (2) SPECIAL RULE FOR COVER CROPS.—In the 

19 case of a producer who agrees to plant a cover crop 

20 on acres associated with the loan commodity, the ap21 plicable loan rate under paragraph (1) shall be in22 creased by an amount equal to $0.20 per bushel. 

23 (d) TERMS OF LOANS.— 

24 (1) IN GENERAL.—In the case of each loan 

25 commodity, a conservation loan under this section 


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1 shall have a term of 9 months beginning on the first 

2 day of the first month after the month in which the 

3 loan is made. 

4 (2) EXTENSIONS PROHIBITED.—The Secretary 

5 may not extend the term of a conservation assist6 ance loan for any loan commodity. 

7 (e) REPAYMENT OF LOANS.— 

8 (1) IN GENERAL.—The Secretary shall permit 

9 the producers on a farm to repay a conservation as10 sistance loan under this section for a loan com11 modity at a rate that is the lesser of the following: 

12 (A) The loan rate established under sub13 section (c). 

14 (B) A rate that is equal to the expected 

15 market price for the loan commodity as cal16 culated for crop insurance, as determined by 

17 the Secretary. 

18 (C) Such other rate the Secretary deter19 mines will avoid or minimize potential loan for20 feitures. 

21 (2) ADJUSTMENTS.—The Secretary shall make 

22 all adjustments that the Secretary determines nec23 essary to— 


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1 (A) avoid forfeiture or the accumulation of 

2 stocks of the commodities placed under a loan 

3 under this section; 

4 (B) minimize the costs incurred by the 

5 Federal Government; 

6 (C) allow the commodity produced to be 

7 marketed freely and competitively, both domes8 tically and internationally; 

9 (D) minimize discrepancies in conservation 

10 loan benefits across State boundaries and 

11 across country boundaries; and 

12 (E) in the case of a producer who is pre13 vented from planting a commercial crop due to 

14 weather or other natural events that interfered 

15 with cover crop determined (as determined by 

16 the Secretary), the Secretary may forgive the 

17 portion of the loan calculated under subsection 

18 (c)(2). 

19 (f) COMPLIANCE REQUIREMENTS.—As a condition of 

20 the receipt of a conservation assistance loan under this 

21 section, the producer shall during the crop year of the 

22 loan— 

23 (1) comply with applicable conservation require24 ments under subtitle B of title XII of the Food Se25 curity Act of 1985 (16 U.S.C. 3811 et seq.) and apVerDate Sep 11 2014 00:22 Feb 13, 2018 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4988.IH H4988

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1 plicable wetland protection requirements under sub2 title C of title XII of that Act (16 U.S.C. 3821 et 

3 seq.); 

4 (2) agree to use a reduced tillage method and 

5 nutrient management practices (as determined by 

6 the Secretary to be appropriate for soil health man7 agement) for the acres associated with the com8 modity covered by the loan; and 

9 (3) in the case of a loan calculated under sub10 section (c)(2), agree to plant a cover crop on the 

11 acres associated with the loan commodity, as deter12 mined by the Secretary to be appropriate. 

13 (g) FARM SERVICE AGENCY REPORT.—The Adminis14 trator of the Farm Service Agency shall submit an annual 

15 report to the Secretary that includes the information with 

16 respect to the compliance requirements specified in para17 graphs (1) and (2) of subsection (f) relating to each con18 servation assistance loan under this section that was fully 

19 repaid in the preceding fiscal year. 

Æ 


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