II 

115TH CONGRESS 

2D SESSION S. 2749 

To provide for the reform and continuation of agricultural commodity programs of the Department of Agriculture through fiscal year 2023, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 25, 2018 

Mr. BROWN (for himself and Mr. THUNE) introduced the following bill; which 

was read twice and referred to the Committee on Agriculture, Nutrition, 

and Forestry 

A BILL 

To provide for the reform and continuation of agricultural 

commodity programs of the Department of Agriculture 

through fiscal year 2023, 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 ‘‘Agriculture Risk Cov5 erage Improvement and Innovation Act of 2018’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ACTUAL CROP REVENUE.—The term ‘‘ac9 tual crop revenue’’, with respect to a covered comVerDate Sep 11 2014 04:52 May 02, 2018 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2749.IS S2749

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1 modity for a crop year, means the amount deter2 mined by the Secretary under section 8(b). 

3 (2) AGRICULTURE RISK COVERAGE.—The term 

4 ‘‘agriculture risk coverage’’ means coverage provided 

5 under section 8. 

6 (3) AGRICULTURE RISK COVERAGE GUAR7 ANTEE.—The term ‘‘agriculture risk coverage guar8 antee’’, with respect to a covered commodity for a 

9 crop year, means the amount determined by the Sec10 retary under section 8(c). 

11 (4) BASE ACRES.—The term ‘‘base acres’’, with 

12 respect to a covered commodity on a farm, means 

13 the number of acres in effect under section 1111 of 

14 the Agricultural Act of 2014 (7 U.S.C. 9011), as in 

15 effect on September 30, 2018, subject to any re16 allocation, adjustment, or reduction under section 3. 

17 (5) COVERED COMMODITY.—The term ‘‘covered 

18 commodity’’ means wheat, oats, and barley (includ19 ing wheat, oats, and barley used for haying and 

20 grazing), corn, grain sorghum, seed cotton, long 

21 grain rice, medium grain rice, pulse crops, soybeans, 

22 other oilseeds, and peanuts. 

23 (6) EFFECTIVE PRICE.—The term ‘‘effective 

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

25 crop year, means the price calculated by the SecVerDate Sep 11 2014 04:52 May 02, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2749.IS S2749

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1 retary under section 7(b) to determine whether price 

2 loss coverage payments are required to be provided 

3 for that crop year. 

4 (7) INDIVIDUAL COVERAGE.—The term ‘‘indi5 vidual coverage’’ means agriculture risk coverage se6 lected under section 6(b)(2) to be obtained at the 

7 farm level. 

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

9 grain rice’’ includes short grain rice and temperate 

10 japonica rice. 

11 (9) OTHER OILSEED.—The term ‘‘other oil12 seed’’ means a crop of sunflower seed, rapeseed, 

13 canola, safflower, flaxseed, mustard seed, crambe, 

14 sesame seed, or any oilseed designated by the Sec15 retary. 

16 (10) PAYMENT ACRES.—The term ‘‘payment 

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

18 coverage payments and agriculture risk coverage 

19 payments, means the number of acres determined 

20 for a farm under section 5. 

21 (11) PAYMENT YIELD.—The term ‘‘payment 

22 yield’’, for a farm for a covered commodity, means, 

23 as applicable— 

24 (A) the yield used to make payments pur25 suant to section 1104 or 1304 of the Food, 


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1 Conservation, and Energy Act of 2008 (7 

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

3 30, 2018; 

4 (B) the yield established under section 4; 

5 or 

6 (C) with respect to seed cotton, the yield 

7 established under section 1113(e) of the Agri8 cultural Act of 2014 (7 U.S.C. 9013(e)), as in 

9 effect on September 30, 2018. 

10 (12) PRICE LOSS COVERAGE.—The term ‘‘price 

11 loss coverage’’ means coverage provided under sec12 tion 7. 

13 (13) PRODUCER.— 

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

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

16 sharecropper that shares in the risk of pro17 ducing a crop and is entitled to share in the 

18 crop available for marketing from the farm, or 

19 would have shared had the crop been produced. 

20 (B) HYBRID SEED.—In determining 

21 whether a grower of hybrid seed is a producer, 

22 the Secretary shall— 

23 (i) not take into consideration the ex24 istence of a hybrid seed contract; and 


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1 (ii) ensure that program requirements 

2 do not adversely affect the ability of the 

3 grower to receive a payment under this 

4 Act. 

5 (14) PULSE CROP.—The term ‘‘pulse crop’’ 

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

7 chickpeas. 

8 (15) REFERENCE PRICE.—The term ‘‘reference 

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

10 crop year, means the lesser of— 

11 (A) the national average market price re12 ceived by producers during the 12-month mar13 keting year for the most recent 10 crop years 

14 for the covered commodity; and 

15 (B)(i) for wheat, $5.50 per bushel; 

16 (ii) for corn, $3.70 per bushel; 

17 (iii) for grain sorghum, $3.95 per bushel; 

18 (iv) for barley, $4.95 per bushel; 

19 (v) for oats, $2.40 per bushel; 

20 (vi) for seed cotton, $0.367 per pound; 

21 (vii) for long grain rice, $14.00 per hun22 dredweight; 

23 (viii) for medium grain rice, $14.00 per 

24 hundredweight; 

25 (ix) for soybeans, $8.40 per bushel; 


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1 (x) for other oilseeds, $20.15 per hundred2 weight; 

3 (xi) for peanuts, $535.00 per ton; 

4 (xii) for dry peas, $11.00 per hundred5 weight; 

6 (xiii) for lentils, $19.97 per hundredweight; 

7 (xiv) for small chickpeas, $19.04 per hun8 dredweight; or 

9 (xv) for large chickpeas, $21.54 per hun10 dredweight. 

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

12 means the Secretary of Agriculture. 

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

14 (A) a State; 

15 (B) the District of Columbia; 

16 (C) the Commonwealth of Puerto Rico; 

17 and 

18 (D) any other territory or possession of the 

19 United States. 

20 (18) TEMPERATE JAPONICA RICE.—The term 

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

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

24 United States, as determined by the Secretary, for 

25 the purpose of— 


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1 (A) the reallocation of base acres under 

2 section 3; 

3 (B) the establishment of a reference price 

4 (as required under section 7(g)) and an effec5 tive price pursuant to section 7; and 

6 (C) the determination of the actual crop 

7 revenue and agriculture risk coverage guarantee 

8 pursuant to section 8. 

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

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

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

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

15 all of the States. 

16 SEC. 3. BASE ACRES. 

17 (a) ADJUSTMENT OF BASE ACRES.— 

18 (1) IN GENERAL.—The Secretary shall provide 

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

20 for covered commodities for a farm whenever any of 

21 the following circumstances occur: 

22 (A) A conservation reserve contract en23 tered into under section 1231 of the Food Secu24 rity Act of 1985 (16 U.S.C. 3831) with respect 

25 to the farm expires or is voluntarily terminated. 


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1 (B) Cropland is released from coverage 

2 under a conservation reserve contract by the 

3 Secretary. 

4 (C) The producer has eligible oilseed acre5 age as the result of the Secretary designating 

6 additional oilseeds, which shall be determined in 

7 the same manner as eligible oilseed acreage 

8 under section 1101(a)(1)(D) of the Food, Con9 servation, and Energy Act of 2008 (7 U.S.C. 

10 8711(a)(1)(D)). 

11 (2) SPECIAL CONSERVATION RESERVE ACREAGE

12 PAYMENT RULES.—For the crop year in which a 

13 base-acres adjustment under subparagraph (A) or 

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

15 farm shall elect to receive price loss coverage or ag16 riculture risk coverage with respect to the acreage 

17 added to the farm under this subsection or a pro18 rated payment under the conservation reserve con19 tract, but not both. 

20 (3) BEGINNING FARMERS OF COVERED COM21 MODITIES.— 

22 (A) DEFINITION OF BEGINNING FARMER

23 OF COVERED COMMODITIES.—In this para24 graph, the term ‘‘beginning farmer of covered 

25 commodities’’ means a beginning farmer (as deVerDate Sep 11 2014 04:52 May 02, 2018 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2749.IS S2749

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1 termined by the Secretary) of one or more cov2 ered commodities that has not planted or been 

3 prevented from planting a covered commodity 

4 on any farm for any crop year before the 2002 

5 crop year. 

6 (B) OPPORTUNITY TO INCREASE BASE

7 ACRES.—The Secretary shall provide a 1-time 

8 opportunity for a beginning farmer of covered 

9 commodities to increase base acres on a farm in 

10 accordance with subparagraph (C) if— 

11 (i) the beginning farmer of covered 

12 commodities is an operator on the farm 

13 and provides a significant contribution of 

14 active personal labor; 

15 (ii) as determined by the Secretary, 

16 the beginning farmer of covered commod17 ities has, or has an option to obtain, a sig18 nificant ownership share of the farm or a 

19 business producing commodities on the 

20 farm; 

21 (iii) the beginning farmer of covered 

22 commodities has not planted or been pre23 vented from planting a covered commodity 

24 on the farm for any crop year before the 

25 2007 crop year; and 


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1 (iv) the average number of acres 

2 planted on the farm to covered commod3 ities during the 2013 through 2017 crop 

4 years is greater than the number of base 

5 acres on the farm. 

6 (C) BASE INCREASE FOR BEGINNING

7 FARMERS OF COVERED COMMODITIES.— 

8 (i) IN GENERAL.—Subject to clause 

9 (ii), the number of base acres added to a 

10 farm under subparagraph (B) shall be 

11 equal to the difference between— 

12 (I) the 5-year average of— 

13 (aa) the acreage planted on 

14 the farm to all covered commod15 ities for harvest, grazing, haying, 

16 silage, or other similar purposes 

17 for the 2013 through 2017 crop 

18 years, according to records sub19 mitted to the Farm Service 

20 Agency; and 

21 (bb) any acreage on the 

22 farm that the beginning farmer 

23 of covered commodities was pre24 vented from planting during the 

25 2013 through 2017 crop years to 


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1 a covered commodity because of 

2 drought, flood, or other natural 

3 disaster, or other condition be4 yond the control of the beginning 

5 farmer of covered commodities, 

6 according to records submitted to 

7 the Farm Service Agency and as 

8 determined by the Secretary; and 

9 (II) the number of base acres for 

10 covered commodities on the farm. 

11 (ii) LIMITATION.—The Secretary shall 

12 adjust the number of base acres added to 

13 a farm under clause (i) to prevent the cu14 mulative increase in the number of base 

15 acres under this paragraph from exceeding 

16 5,000,000 base acres for all beginning 

17 farmers of covered commodities. 

18 (iii) DISTRIBUTION.—Base acres 

19 added to a farm under clause (i) shall be 

20 added to the base acreage of each covered 

21 commodity on the farm in the proportion 

22 that— 

23 (I) the acreage planted to the 

24 covered commodity on the farm; bears 

25 to 


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1 (II) the acreage planted to all 

2 covered commodities on the farm. 

3 (D) REDUCTION OF BASE INCREASE.—If a 

4 beginning farmer of covered commodities on a 

5 farm for which base acres have been increased 

6 under subparagraph (B) no longer owns or op7 erates the farm for any of the 2019 through 

8 2023 crop years, the base acres on the farm 

9 shall be reduced by the number of base acres 

10 added to the farm under that subparagraph in 

11 the same proportion among covered commod12 ities on the farm described in subparagraph 

13 (C)(iii). 

14 (b) PREVENTION OF EXCESS BASE ACRES.— 

15 (1) REQUIRED REDUCTION.—If the sum of the 

16 base acres for a farm and the acreage described in 

17 paragraph (2) exceeds the actual cropland acreage of 

18 the farm, the Secretary shall reduce the base acres 

19 for one or more covered commodities for the farm so 

20 that the sum of the base acres and the acreage de21 scribed in paragraph (2) does not exceed the actual 

22 cropland acreage of the farm. 

23 (2) OTHER ACREAGE.—For purposes of para24 graph (1), the Secretary shall include the following: 

25 (A) Any acreage on the farm enrolled in— 


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1 (i) the conservation reserve program 

2 established under subchapter B of chapter 

3 1 of subtitle D of title XII of the Food Se4 curity Act of 1985 (16 U.S.C. 3831 et 

5 seq.); or 

6 (ii) the agricultural conservation ease7 ment program established under subtitle H 

8 of title XII of the Food Security Act of 

9 1985 (16 U.S.C. 3865 et seq.). 

10 (B) Any other acreage on the farm en11 rolled in a Federal conservation program for 

12 which payments are made in exchange for not 

13 producing an agricultural commodity on the 

14 acreage. 

15 (C) If the Secretary designates additional 

16 oilseeds, any eligible oilseed acreage, which shall 

17 be determined in the same manner as eligible 

18 oilseed acreage under subsection (a)(1)(C). 

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

20 give the owner of the farm the opportunity to select 

21 the base acres for a covered commodity for the farm 

22 against which the reduction required by paragraph 

23 (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 reduction 

9 under subparagraph (A) shall be permanent 

10 and made in a manner prescribed by the Sec11 retary. 

12 (2) REQUIRED ACTION BY SECRETARY.— 

13 (A) IN GENERAL.—The Secretary shall 

14 proportionately reduce base acres on a farm for 

15 land that has been subdivided and developed for 

16 multiple residential units or other nonfarming 

17 uses if the size of the tracts and the density of 

18 the subdivision is such that the land is unlikely 

19 to return to the previous agricultural use, un20 less the producers on the farm demonstrate 

21 that the land— 

22 (i) remains devoted to commercial ag23 ricultural production; or 

24 (ii) is likely to be returned to the pre25 vious agricultural use. 


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1 (B) REQUIREMENT.—The Secretary shall 

2 establish procedures to identify land described 

3 in subparagraph (A). 

4 SEC. 4. PAYMENT YIELDS. 

5 (a) ESTABLISHMENT AND PURPOSE.—For the pur6 pose of making price loss coverage payments under section 

7 7, the Secretary shall provide for the establishment of a 

8 yield for each farm for any designated oilseed for which 

9 a payment yield was not established under section 1102 

10 of the Food, Conservation, and Energy Act of 2008 (7 

11 U.S.C. 8712) in accordance with this section. 

12 (b) PAYMENT YIELDS FOR DESIGNATED OIL13 SEEDS.— 

14 (1) DETERMINATION OF AVERAGE YIELD.—In 

15 the case of designated oilseeds, the Secretary shall 

16 determine the average yield per planted acre for the 

17 designated oilseed on a farm for the 1998 through 

18 2001 crop years, excluding any crop year in which 

19 the acreage planted to the designated oilseed was 

20 zero. 

21 (2) ADJUSTMENT FOR PAYMENT YIELD.— 

22 (A) IN GENERAL.—The payment yield for 

23 a farm for a designated oilseed shall be equal 

24 to the product of the following: 


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1 (i) The average yield for the des2 ignated oilseed determined under para3 graph (1). 

4 (ii) The ratio resulting from dividing 

5 the national average yield for the des6 ignated oilseed for the 1981 through 1985 

7 crops by the national average yield for the 

8 designated oilseed for the 1998 through 

9 2001 crops. 

10 (B) NO NATIONAL AVERAGE YIELD INFOR11 MATION AVAILABLE.—To the extent that na12 tional average yield information for a des13 ignated oilseed is not available, the Secretary 

14 shall use such information as the Secretary de15 termines to be fair and equitable to establish a 

16 national average yield under this section. 

17 (3) USE OF COUNTY AVERAGE YIELD.—If the 

18 yield per planted acre for a crop of a designated oil19 seed for a farm for any of the 1998 through 2001 

20 crop years was less than 75 percent of the county 

21 yield for that designated oilseed, the Secretary shall 

22 assign a yield for that crop year equal to 75 percent 

23 of the county yield for the purpose of determining 

24 the average under paragraph (1). 

25 (c) EFFECT OF LACK OF PAYMENT YIELD.— 


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1 (1) ESTABLISHMENT BY SECRETARY.—In the 

2 case of a covered commodity on a farm for which 

3 base acres have been established, if no payment yield 

4 is otherwise established for the covered commodity 

5 on the farm, the Secretary shall establish an appro6 priate payment yield for the covered commodity on 

7 the farm under paragraph (2). 

8 (2) USE OF SIMILARLY SITUATED FARMS.— 

9 (A) IN GENERAL.—To establish an appro10 priate payment yield for a covered commodity 

11 on a farm as required by paragraph (1), the 

12 Secretary shall take into consideration the farm 

13 program payment yields applicable to that cov14 ered commodity for similarly situated farms. 

15 (B) USE OF FARM PROGRAM PAYMENT

16 YIELDS IN APPEAL.—The use of farm program 

17 payment yields described in subparagraph (A) 

18 in an appeal, by the Secretary or by the pro19 ducer, shall not be subject to any other provi20 sion of law. 

21 SEC. 5. PAYMENT ACRES. 

22 (a) DETERMINATION OF PAYMENT ACRES.— 

23 (1) IN GENERAL.—For the purpose of price loss 

24 coverage and agriculture risk coverage when county 

25 coverage has been selected under section 6(b)(1), 


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1 subject to subsection (d), the payment acres for each 

2 covered commodity on a farm shall be equal to 85 

3 percent of the base acres for the covered commodity 

4 on the farm (not including any base acres excluded 

5 under subsection (e)). 

6 (2) EFFECT OF INDIVIDUAL COVERAGE.—In 

7 the case of agriculture risk coverage when individual 

8 coverage has been selected under section 6(b)(2), but 

9 subject to subsection (e), the payment acres for a 

10 farm shall be equal to 65 percent of the base acres 

11 for all of the covered commodities on the farm. 

12 (b) EXCLUSION.—The quantity of payment acres de13 termined under subsection (a) may not include any crop 

14 subsequently planted during the same crop year on the 

15 same land for which the first crop is eligible for price loss 

16 coverage payments or agriculture risk coverage payments, 

17 unless the crop was approved for double cropping in the 

18 county, as determined by the Secretary. 

19 (c) EFFECT OF MINIMAL PAYMENT ACRES.— 

20 (1) PROHIBITION ON PAYMENTS.—Notwith21 standing any other provision of this Act, a producer 

22 on a farm may not receive price loss coverage pay23 ments or agriculture risk coverage payments if the 

24 sum of the base acres on the farm is 10 acres or 

25 less, as determined by the Secretary. 


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

2 apply to a producer that is— 

3 (A) a socially disadvantaged farmer or 

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

5 Consolidated Farm and Rural Development Act 

6 (7 U.S.C. 2003(e))); or 

7 (B) a limited resource farmer or rancher, 

8 as defined by the Secretary. 

9 (d) EFFECT OF PLANTING FRUITS AND VEGETA10 BLES.— 

11 (1) REDUCTION REQUIRED.—In the manner 

12 provided in this subsection, payment acres on a farm 

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

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

15 or wild rice have been planted on base acres on a 

16 farm. 

17 (2) QUANTITY OF REDUCTION.— 

18 (A) PRICE LOSS COVERAGE AND COUNTY

19 COVERAGE.—In the case of price loss coverage 

20 payments and agricultural risk coverage pay21 ments using county coverage, the reduction 

22 under paragraph (1) shall be the amount equal 

23 to the base acres planted to crops referred to in 

24 that paragraph in excess of 15 percent of base 

25 acres. 


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1 (B) INDIVIDUAL COVERAGE.—In the case 

2 of agricultural risk coverage payments using in3 dividual coverage, the reduction under para4 graph (1) shall be the amount equal to the base 

5 acres planted to crops referred to in that para6 graph in excess of 35 percent of base acres. 

7 (3) REDUCTION EXCEPTIONS.—No reduction to 

8 payment acres shall be made under this subsection 

9 if— 

10 (A) cover crops or crops referred to in 

11 paragraph (1) are grown solely for conservation 

12 purposes and not harvested for use or sale, as 

13 determined by the Secretary; or 

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

16 with crops referred to in paragraph (1) and 

17 those crops were so double-cropped on the base 

18 acres, as determined by the Secretary. 

19 (e) EXCLUSION OF UNUSED ACRES.— 

20 (1) IN GENERAL.—Effective beginning with the 

21 2019 crop year, subject to paragraphs (2) and (3), 

22 if the producers on a farm did not plant and were 

23 not prevented from planting a covered commodity on 

24 base acres during each of the 2009 through 2016 


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1 crop years, the Secretary shall exclude those base 

2 acres from payment acres on the farm. 

3 (2) TREATMENT OF PLANTING FRUITS AND

4 VEGETABLES AND ACRES ENROLLED IN CONSERVA5 TION RESERVE.—Base acres subject to a reduction 

6 under subsection (d) or that were enrolled in the 

7 conservation reserve program established under sub8 chapter B of chapter 1 of subtitle D of title XII of 

9 the Food Security Act of 1985 (16 U.S.C. 3831 et 

10 seq.) for not fewer than 5 crop years of the 2009 

11 through 2016 crop years shall be considered planted 

12 to a covered commodity for purposes of paragraph 

13 (1). 

14 (3) EXCEPTIONS.—Paragraph (1) shall not 

15 apply to— 

16 (A) a socially disadvantaged farmer or 

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

18 Consolidated Farm and Rural Development Act 

19 (7 U.S.C. 2003(e))); or 

20 (B) a limited resource farmer or rancher, 

21 as defined by the Secretary. 

22 SEC. 6. PRODUCER ELECTION. 

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

24 2023 crop years, all of the producers on a farm shall make 

25 a 1-time, irrevocable election to obtain— 


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1 (1) price loss coverage under section 7 for all 

2 covered commodities on the farm; or 

3 (2) agriculture risk coverage under section 8 for 

4 all covered commodities on the farm. 

5 (b) COVERAGE OPTIONS.—In the election under sub6 section (a), the producers on a farm that elect under para7 graph (2) of that subsection to obtain agriculture risk cov8 erage under section 8 shall unanimously select whether to 

9 receive agriculture risk coverage payments based on— 

10 (1) county coverage applicable on a covered 

11 commodity-by-covered-commodity basis; or 

12 (2) individual coverage applicable to all of the 

13 covered commodities on the farm. 

14 (c) EFFECT OF FAILURE TO MAKE UNANIMOUS

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

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

17 crop year— 

18 (1) the Secretary shall not make any payments 

19 with respect to the farm for the 2019 crop year 

20 under section 7 or 8; and 

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

22 to have elected for the 2020 through 2023 crop 

23 years the coverage described in paragraph (1) or (2) 

24 of subsection (a) in which the majority of base acres 


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1 on the farm were enrolled during the period of crop 

2 years 2014 through 2018. 

3 (d) EFFECT OF SELECTION OF COUNTY COV4 ERAGE.—If all the producers on a farm select county cov5 erage for a covered commodity under subsection (b)(1), 

6 the Secretary may not make price loss coverage payments 

7 under section 7 to the producers on the farm with respect 

8 to that covered commodity. 

9 (e) EFFECT OF SELECTION OF INDIVIDUAL COV10 ERAGE.—If all the producers on a farm select individual 

11 coverage under subsection (b)(2), in addition to the selec12 tion and election under this section applying to each pro13 ducer on the farm, the Secretary shall consider, for pur14 poses of making the calculations required by subsections 

15 (b)(2) and (c)(3) of section 8, the share of the producer 

16 in all farms in the same State— 

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

18 (2) for which individual coverage has been se19 lected. 

20 (f) PROHIBITION ON RECONSTITUTION.—The Sec21 retary shall ensure that producers on a farm do not recon22 stitute the farm to void or change an election or selection 

23 made under this section. 


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1 SEC. 7. PRICE LOSS COVERAGE. 

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

3 producers on a farm make the election under section 6(a) 

4 to obtain price loss coverage, or are deemed to have made 

5 that election under section 6(c)(2), the Secretary shall 

6 make price loss coverage payments to producers on the 

7 farm on a covered commodity-by-covered-commodity basis 

8 if the Secretary determines that, for any of the 2019 

9 through 2023 crop years— 

10 (1) the effective price for the covered com11 modity for the crop year; is less than 

12 (2) the reference price for the covered com13 modity for the crop year. 

14 (b) EFFECTIVE PRICE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the effective price for a covered com17 modity for a crop year shall be the higher of— 

18 (A) the national average market price re19 ceived by producers during the 12-month mar20 keting year for the covered commodity, as de21 termined by the Secretary; or 

22 (B) the national average loan rate for a 

23 marketing assistance loan for the covered com24 modity in effect for that crop year under sub25 title B of title I of the Agricultural Act of 2014 

26 (7 U.S.C. 9031 et seq.). 


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1 (2) SEED COTTON.— 

2 (A) IN GENERAL.—The effective price for 

3 seed cotton for a crop year shall be equal to the 

4 marketing year average price for seed cotton, as 

5 calculated under subparagraph (B). 

6 (B) CALCULATION.—The marketing year 

7 average price for seed cotton for a crop year 

8 shall be equal to the quotient obtained by divid9 ing— 

10 (i) the sum obtained by adding— 

11 (I) the product obtained by mul12 tiplying— 

13 (aa) the upland cotton lint 

14 marketing year average price; 

15 and 

16 (bb) the total United States 

17 upland cotton lint production, 

18 measured in pounds; and 

19 (II) the product obtained by mul20 tiplying— 

21 (aa) the cottonseed mar22 keting year average price; and 

23 (bb) the total United States 

24 cottonseed production, measured 

25 in pounds; by 


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1 (ii) the sum obtained by adding— 

2 (I) the total United States up3 land cotton lint production, measured 

4 in pounds; and 

5 (II) the total United States cot6 tonseed production, measured in 

7 pounds. 

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

9 equal to the difference between— 

10 (1) the reference price for the covered com11 modity; and 

12 (2) the effective price determined under sub13 section (b) for the covered commodity. 

14 (d) PAYMENT AMOUNT.—If price loss coverage pay15 ments are required to be provided under this section for 

16 any of the 2019 through 2023 crop years for a covered 

17 commodity, the amount of the price loss coverage payment 

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

19 shall be equal to the product obtained by multiplying— 

20 (1) the payment rate for the covered commodity 

21 under subsection (c); 

22 (2) the payment yield for the covered com23 modity; and 

24 (3) the payment acres for the covered com25 modity. 


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1 (e) TIME FOR PAYMENTS.—If the Secretary deter2 mines under this section that price loss coverage payments 

3 are required to be provided for the covered commodity, 

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

5 soon as practicable thereafter, after the end of the applica6 ble marketing year for the covered commodity. 

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

8 the effective price for barley under subsection (b), the Sec9 retary shall use the all-barley price. 

10 (g) REFERENCE PRICE FOR TEMPERATE JAPONICA

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

12 respect to temperate japonica rice in an amount equal to 

13 115 percent of the amount established in clauses (vii) and 

14 (viii) of section 2(14)(B) in order to reflect price pre15 miums. 

16 SEC. 8. AGRICULTURE RISK COVERAGE. 

17 (a) AGRICULTURE RISK COVERAGE PAYMENTS.—If 

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

19 section 6(a) to obtain agriculture risk coverage, the Sec20 retary shall make agriculture risk coverage payments to 

21 producers on the farm if the Secretary determines that, 

22 for any of the 2019 through 2023 crop years— 

23 (1) the actual crop revenue determined under 

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


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1 (2) the agriculture risk coverage guarantee de2 termined under subsection (c) for the crop year. 

3 (b) ACTUAL CROP REVENUE.— 

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

5 coverage, the amount of the actual crop revenue for 

6 a county for a crop year of a covered commodity 

7 shall be equal to the product obtained by multi8 plying— 

9 (A) the actual average county yield per 

10 planted acre for the covered commodity, as de11 termined by the Secretary (including any ad12 justments under paragraph (3)); and 

13 (B) the higher of— 

14 (i) the national average market price 

15 received by producers during the 12-month 

16 marketing year for the covered commodity, 

17 as determined by the Secretary; and 

18 (ii) the national average loan rate for 

19 a marketing assistance loan for the covered 

20 commodity in effect for that crop year 

21 under subtitle B of title I of the Agricul22 tural Act of 2014 (7 U.S.C. 9031 et seq.). 

23 (2) INDIVIDUAL COVERAGE.—In the case of in24 dividual coverage, the amount of the actual crop rev25 enue for a producer on a farm for a crop year shall 


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1 be based on the share of the producer in all covered 

2 commodities planted on all farms for which indi3 vidual coverage has been selected and in which the 

4 producer has an interest, to be determined by the 

5 Secretary as follows: 

6 (A) For each covered commodity, the prod7 uct obtained by multiplying— 

8 (i) the total production of the covered 

9 commodity on those farms, as determined 

10 by the Secretary; and 

11 (ii) the higher of— 

12 (I) the national average market 

13 price received by producers during the 

14 12-month marketing year, as deter15 mined by the Secretary; or 

16 (II) the national average loan 

17 rate for a marketing assistance loan 

18 for the covered commodity in effect 

19 for that crop year under subtitle B of 

20 title I of the Agricultural Act of 2014 

21 (7 U.S.C. 9031 et seq.). 

22 (B) The sum of the amounts determined 

23 under subparagraph (A) for all covered com24 modities on those farms. 


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1 (C) The quotient obtained by dividing the 

2 amount determined under subparagraph (B) by 

3 the total planted acres of all covered commod4 ities on those farms. 

5 (3) COUNTY YIELD DISPARITIES.— 

6 (A) IN GENERAL.—The Secretary may ad7 just county yields under paragraph (1)(A) to 

8 reduce disparities between neighboring and 

9 nearby counties with similar soils and climate 

10 that are not attributable to a localized weather 

11 event. 

12 (B) AGGREGATE ESTIMATED PAYMENT.— 

13 The Secretary shall ensure that all adjustments 

14 made under this paragraph are balanced so the 

15 aggregate amount of payments made under this 

16 section as a result of the adjustments for a crop 

17 year do not increase. 

18 (C) OPTIONS.— 

19 (i) IN GENERAL.—If the Secretary 

20 makes adjustments under this paragraph, 

21 the Secretary shall make the adjustments 

22 in accordance with clause (ii) or (iii). 

23 (ii) VARIATIONS WITHIN A STATE.— 

24 (I) IN GENERAL.—Subject to 

25 subparagraph (B), the Secretary shall 


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1 allow State committees of the Farm 

2 Service Agency to review and rec3 ommend adjustments to the initial 

4 yield estimates before the adjustments 

5 become final to reduce unexplained 

6 variation between neighboring or 

7 nearby counties with similar soils and 

8 climate. 

9 (II) REVIEW AND APPROVAL.— 

10 The Secretary shall review and ap11 prove or reject adjustments rec12 ommended under subclause (I) before 

13 the adjustments become final. 

14 (iii) VARIATIONS ALONG STATE

15 BOUNDARIES.— 

16 (I) IN GENERAL.—Subject to 

17 subparagraph (B), the Secretary shall 

18 allow State committees of the Farm 

19 Service Agency or the national office 

20 of the Farm Service Agency, in con21 sultation with affected State commit22 tees, to review and recommend adjust23 ments to the initial yield estimates be24 fore the adjustments become final to 


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1 reduce unexplained variation between 

2 counties in neighboring States. 

3 (II) REVIEW AND APPROVAL.— 

4 The Secretary shall review and ap5 prove or reject adjustments rec6 ommended under subclause (I) before 

7 the adjustments become final. 

8 (4) QUALITY ADJUSTMENT FACTOR FOR

9 WHEAT.— 

10 (A) IN GENERAL.—The Secretary shall ad11 just county yields for wheat under paragraph 

12 (1)(A) to account for weather-related quality 

13 factors, such as protein, falling numbers, or 

14 vomitoxin, based on— 

15 (i) the average quality adjustment dis16 count factor determined by the Secretary 

17 for policies or plans of insurance under the 

18 Federal Crop Insurance Act (7 U.S.C. 

19 1501 et seq.) for— 

20 (I) the applicable crop year; and 

21 (II) that county or the applicable 

22 region; or 

23 (ii) a comparable adjustment, as de24 termined by the Secretary, if the factor de25 scribed in clause (i) is not available. 


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1 (B) LIMITATION.—A yield may not be ad2 justed by greater than 50 percent under sub3 paragraph (A). 

4 (C) USE.—The Secretary shall not use a 

5 yield adjustment under this paragraph for pur6 poses of subsection (c). 

7 (c) AGRICULTURE RISK COVERAGE GUARANTEE.— 

8 (1) IN GENERAL.—The agriculture risk cov9 erage guarantee for a crop year for a covered com10 modity shall equal 90 percent of the benchmark rev11 enue described in paragraph (2) or (3), as applica12 ble. 

13 (2) BENCHMARK REVENUE FOR COUNTY COV14 ERAGE.—In the case of county coverage, the bench15 mark revenue referred to in paragraph (1) shall be 

16 the product obtained by multiplying— 

17 (A) subject to paragraphs (4) and (5), the 

18 average historical county yield as determined by 

19 the Secretary for the most recent 5 crop years, 

20 excluding each of the crop years with the high21 est and lowest yields; and 

22 (B) subject to paragraph (6), the national 

23 average market price received by producers dur24 ing the 12-month marketing year for the most 

25 recent 3 crop years. 


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1 (3) BENCHMARK REVENUE FOR INDIVIDUAL

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

3 benchmark revenue for a producer on a farm for a 

4 crop year shall be based on the share of the pro5 ducer in all covered commodities planted on all 

6 farms for which individual coverage has been se7 lected and in which the producer has an interest, to 

8 be determined by the Secretary as follows: 

9 (A) For each covered commodity for each 

10 of the most recent 5 crop years, the product ob11 tained by multiplying— 

12 (i) subject to paragraphs (4) and (5), 

13 the yield per planted acre for the covered 

14 commodity on those farms, as determined 

15 by the Secretary; by 

16 (ii) subject to paragraph (6), the na17 tional average market price received by 

18 producers during the 12-month marketing 

19 year. 

20 (B) For each covered commodity, the aver21 age of the revenues determined under subpara22 graph (A) for the most recent 5 crop years, ex23 cluding each of the crop years with the highest 

24 and lowest revenues. 


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1 (C) For each of the 2019 through 2023 

2 crop years, the sum of the amounts determined 

3 under subparagraph (B) for all covered com4 modities on those farms, but adjusted to reflect 

5 the ratio that— 

6 (i) the total number of acres planted 

7 on those farms to a covered commodity; 

8 bears to 

9 (ii) the total acres of all covered com10 modities planted on those farms. 

11 (4) YIELD CONDITIONS.—If the yield per plant12 ed acre for the covered commodity or historical 

13 county yield per planted acre for the covered com14 modity for any of the 5 most recent crop years, as 

15 determined by the Secretary, is less than 80 percent 

16 of the transitional yield, as determined by the Sec17 retary, the amounts used for any of those years in 

18 paragraph (2)(A) or (3)(A)(i), as applicable, shall be 

19 80 percent of the transitional yield. 

20 (5) TREND-ADJUSTED YIELD.— 

21 (A) IN GENERAL.—The Secretary shall ad22 just the yield determined under paragraph 

23 (2)(A) or (3)(A)(i), as applicable, using the 

24 same Trend-Adjusted Yield factor that is used 

25 under the endorsement under the Federal Crop 


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1 Insurance Act (7 U.S.C. 1501 et seq.) for that 

2 crop and county. 

3 (B) NOT AVAILABLE FOR CROP OR COUN4 TY.—If a factor described in subparagraph (A) 

5 is not available for a crop or county, the Sec6 retary shall calculate and use a State or na7 tional Trend-Adjusted Yield factor for the crop, 

8 as determined by the Secretary. 

9 (6) FLOOR PRICE.—In the case of county cov10 erage, if the national average market price received 

11 by producers during the 12-month marketing year 

12 for any of the 3 most recent crop years is lower than 

13 the national average market price received by pro14 ducers during the 12-month marketing year for the 

15 most recent 10 crop years for the covered com16 modity, the Secretary shall use the national average 

17 market price received by producers during the 12- 

18 month marketing year for the most recent 10 crop 

19 years for the amount in paragraph (2)(B). 

20 (7) REFERENCE PRICE.—In the case of indi21 vidual coverage, if the national average market price 

22 received by producers during the 12-month mar23 keting year for any of the 5 most recent crop years 

24 is lower than the reference price for the covered 

25 commodity, the Secretary shall use the reference 


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1 price for any of those years for the amount in para2 graph (3)(A)(i). 

3 (d) PAYMENT RATE.—The payment rate for a cov4 ered commodity, in the case of county coverage, or a farm, 

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

6 lesser of— 

7 (1) the amount that— 

8 (A) the agriculture risk coverage guarantee 

9 for the crop year applicable under subsection 

10 (c); exceeds 

11 (B) the actual crop revenue for the crop 

12 year applicable under subsection (b); and 

13 (2) 10 percent of the benchmark revenue for 

14 the crop year applicable under subsection (c). 

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

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

17 through 2023 crop years, the amount of the agriculture 

18 risk coverage payment for the crop year shall be deter19 mined by multiplying— 

20 (1) the payment rate determined under sub21 section (d); and 

22 (2) the payment acres determined under section 

23 5. 

24 (f) TIME FOR PAYMENTS.—If the Secretary deter25 mines that agriculture risk coverage payments are reVerDate Sep 11 2014 04:52 May 02, 2018 Jkt 079200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S2749.IS S2749

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1 quired to be provided for the covered commodity, pay2 ments shall be made beginning October 1, or as soon as 

3 practicable thereafter, after the end of the applicable mar4 keting year for the covered commodity. 

5 (g) ADMINISTRATIVE UNITS.— 

6 (1) IN GENERAL.—For purposes of agriculture 

7 risk coverage payments in the case of county cov8 erage, a county may be divided into not greater than 

9 3 administrative units in accordance with this sub10 section. 

11 (2) ELIGIBLE COUNTIES.—A county that may 

12 be divided into administrative units under this sub13 section is a county that— 

14 (A) is larger than 1,500 square miles; and 

15 (B) contains more than 10,000 base acres. 

16 (3) ELECTIONS.—Before making any agri17 culture risk coverage payments for the 2019 crop 

18 year, the Farm Service Agency State committee, in 

19 consultation with the Farm Service Agency county 

20 or area committee of a county described in para21 graph (2), may make a 1-time election to divide the 

22 county into administrative units under this sub23 section. 

24 (4) ADMINISTRATION.—For purposes of pro25 viding agriculture risk coverage payments in the 


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1 case of county coverage, the Secretary shall consider 

2 an administrative unit elected under paragraph (3) 

3 to be a county for the 2019 through 2023 crop 

4 years. 

5 (h) ADDITIONAL DUTIES OF THE SECRETARY.—In 

6 providing agriculture risk coverage, the Secretary shall— 

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

8 available information and analysis, including data 

9 mining, to check for anomalies in the determination 

10 of agriculture risk coverage payments; 

11 (2) to the maximum extent practicable, cal12 culate a separate actual crop revenue and agri13 culture risk coverage guarantee for irrigated and 

14 nonirrigated covered commodities; 

15 (3) in the case of county coverage, assign an ac16 tual or benchmark county yield for each planted acre 

17 for the crop year for the covered commodity on the 

18 basis of the yield history of representative farms in 

19 the State, region, or crop reporting district, as deter20 mined by the Secretary, if— 

21 (A) the Secretary cannot establish the ac22 tual or benchmark county yield for each planted 

23 acre for a crop year for a covered commodity in 

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

25 or (c)(2); or 


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1 (B) the yield determined under subsection 

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

3 yield for the county, as determined by the Sec4 retary; 

5 (4) in the case of individual coverage, assign an 

6 average yield for a farm on the basis of the yield his7 tory of representative farms in the State, region, or 

8 crop reporting district, as determined by the Sec9 retary, if the Secretary determines that the farm has 

10 planted acreage in a quantity that is insufficient to 

11 calculate a representative average yield for the farm; 

12 (5) prioritize the use of yields from sources that 

13 provide the greatest geographic coverage of county14 level data from the same source; and 

15 (6)(A) use the yield, benchmark revenue and 

16 payment rate based on the county of the physical lo17 cation of the farm; and 

18 (B) in the case of a farm that crosses county 

19 boundaries— 

20 (i) split the base acres on a pro rata basis 

21 based on the relative quantity of cropland in 

22 each county; and 

23 (ii) calculate any payments on that same 

24 pro rata basis. 


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1 SEC. 9. PRODUCER AGREEMENTS. 

2 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

3 (1) REQUIREMENTS.—Before the producers on 

4 a farm may receive payments under this Act with re5 spect to the farm, the producers shall agree, during 

6 the crop year for which the payments are made and 

7 in exchange for the payments— 

8 (A) to comply with applicable conservation 

9 requirements under subtitle B of title XII of 

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

11 et seq.); 

12 (B) to comply with applicable wetland pro13 tection requirements under subtitle C of title 

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

15 (C) to effectively control noxious weeds 

16 and otherwise maintain the land in accordance 

17 with sound agricultural practices, as determined 

18 by the Secretary; and 

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

20 quantity equal to the attributable base acres for 

21 the farm and any base acres for an agricultural 

22 or conserving use, and not for a nonagricultural 

23 commercial, industrial, or residential use, as de24 termined by the Secretary. 

25 (2) COMPLIANCE.—The Secretary may issue 

26 such rules as the Secretary considers necessary to 


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1 ensure producer compliance with the requirements of 

2 paragraph (1). 

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

4 transferee or owner, the Secretary may modify the 

5 requirements of this subsection if the modifications 

6 are consistent with the objectives of this subsection, 

7 as determined by the Secretary. 

8 (b) TRANSFER OR CHANGE OF INTEREST IN

9 FARM.— 

10 (1) TERMINATION.— 

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

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

13 interest of the producers on a farm for which 

14 payments under this Act are provided shall re15 sult in the termination of the payments, unless 

16 the transferee or owner of the acreage agrees to 

17 assume all obligations under subsection (a). 

18 (B) EFFECTIVE DATE.—The termination 

19 shall take effect on the date determined by the 

20 Secretary. 

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

22 payment under this Act dies, becomes incompetent, 

23 or is otherwise unable to receive the payment, the 

24 Secretary shall make the payment in accordance 

25 with rules issued by the Secretary. 


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1 (c) PRODUCTION REPORTS.—As an additional condi2 tion on receiving agriculture risk coverage payments for 

3 individual coverage, the Secretary shall require a producer 

4 on a farm to submit to the Secretary annual production 

5 reports with respect to all covered commodities produced 

6 on all farms in the same State— 

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

8 (2) for which individual coverage has been se9 lected. 

10 (d) EFFECT OF INACCURATE REPORTS.—No penalty 

11 with respect to benefits under this Act shall be assessed 

12 against a producer on a farm for an inaccurate acreage 

13 or production report unless the Secretary determines that 

14 the producer on the farm knowingly and willfully falsified 

15 the acreage or production report. 

16 (e) TENANTS AND SHARECROPPERS.—In carrying 

17 out this Act, the Secretary shall provide adequate safe18 guards to protect the interests of tenants and share19 croppers. 

20 (f) SHARING OF PAYMENTS.—The Secretary shall 

21 provide for the sharing of payments made under this Act 

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

23 basis. 

Æ 


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