II 

110TH CONGRESS 

1ST SESSION S. 1872 

To amend the Farm Security and Rural Investment Act of 2002 to make 

revenue counter-cyclical payments available to producers on a farm to 

ensure that the producers at least receive a minimum level of revenue 

from the production of a covered commodity, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 25, 2007 

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

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

and Forestry 

A BILL 

To amend the Farm Security and Rural Investment Act 

of 2002 to make revenue counter-cyclical payments available to producers on a farm to ensure that the producers 

at least receive a minimum level of revenue from the 

production of a covered commodity, 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 ‘‘Farm Safety Net Im5 provement Act of 2007’’. 


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1 SEC. 2. REVENUE COUNTER-CYCLICAL PROGRAM. 

2 Section 1104 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 7914) is amended to read 

4 as follows: 

5 ‘‘SEC. 1104. REVENUE COUNTER-CYCLICAL PROGRAM. 

6 ‘‘(a) IN GENERAL.—For each of the 2008 through 

7 2012 crop years for each covered commodity, the Sec8 retary shall make revenue counter-cyclical payments avail9 able to producers on a farm in a State for a crop year 

10 for a covered commodity if— 

11 ‘‘(1) the actual State revenue from the crop 

12 year for the covered commodity in the State deter13 mined under subsection (b); is less than 

14 ‘‘(2) the revenue counter-cyclical program guar15 antee for the crop year for the covered commodity 

16 in the State determined under subsection (c). 

17 ‘‘(b) ACTUAL STATE REVENUE.— 

18 ‘‘(1) IN GENERAL.—For purposes of subsection 

19 (a)(1), the amount of the actual State revenue for 

20 a crop year of a covered commodity shall equal the 

21 product obtained by multiplying— 

22 ‘‘(A) the actual State yield for each plant23 ed acre for the crop year for the covered com24 modity determined under paragraph (2); and 


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1 ‘‘(B) the revenue counter-cyclical program 

2 harvest price for the crop year for the covered 

3 commodity determined under paragraph (3). 

4 ‘‘(2) ACTUAL STATE YIELD.—For purposes of 

5 paragraph (1)(A) and subsection (c)(1)(A), the ac6 tual State yield for each planted acre for a crop year 

7 for a covered commodity in a State shall equal— 

8 ‘‘(A) the quantity of the covered com9 modity that is produced in the State, and re10 ported to the Secretary, during the crop year; 

11 divided by 

12 ‘‘(B) the number of acres that are planted 

13 or considered planted to the covered commodity 

14 in the State, and reported to the Secretary, 

15 during the crop year. 

16 ‘‘(3) REVENUE COUNTER-CYCLICAL PROGRAM

17 HARVEST PRICE.—For purposes of paragraph 

18 (1)(B), the revenue counter-cyclical program harvest 

19 price for a crop year for a covered commodity shall 

20 equal the harvest price that is used to calculate rev21 enue under revenue coverage plans that are offered 

22 for the crop year for the covered commodity under 

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

24 seq.). 


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1 ‘‘(c) REVENUE COUNTER-CYCLICAL PROGRAM GUAR2 ANTEE.— 

3 ‘‘(1) IN GENERAL.—The revenue counter-cycli4 cal program guarantee for a crop year for a covered 

5 commodity in a State shall equal 90 percent of the 

6 product obtained by multiplying— 

7 ‘‘(A) the expected State yield for each 

8 planted acre for the crop year for the covered 

9 commodity in a State determined under para10 graph (2); and 

11 ‘‘(B) the revenue counter-cyclical program 

12 pre-planting price for the crop year for the cov13 ered commodity determined under paragraph 

14 (3). 

15 ‘‘(2) EXPECTED STATE YIELD.— 

16 ‘‘(A) IN GENERAL.—For purposes of para17 graph (1)(A), subject to subparagraph (B), the 

18 expected State yield for each planted acre for a 

19 crop year for a covered commodity in a State 

20 shall equal the projected yield for the crop year 

21 for the covered commodity in the State, based 

22 on a linear regression trend of the yield per 

23 acre planted to the covered commodity in the 

24 State during the 1980 through 2006 period 


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1 using National Agricultural Statistics Service 

2 data. 

3 ‘‘(B) ASSIGNED YIELD.—If the Secretary 

4 cannot establish the expected State yield for 

5 each planted acre for a crop year for a covered 

6 commodity in a State in accordance with sub7 paragraph (A), the Secretary shall assign an ex8 pected State yield for each planted acre for the 

9 crop year for the covered commodity in the 

10 State on the basis of expected State yields for 

11 planted acres for the crop year for the covered 

12 commodity in similar States. 

13 ‘‘(3) REVENUE COUNTER-CYCLICAL PROGRAM

14 PRE-PLANTING PRICE.— 

15 ‘‘(A) IN GENERAL.—For purposes of para16 graph (1)(B), subject to subparagraph (B), the 

17 revenue counter-cyclical program pre-planting 

18 price for a crop year for a covered commodity 

19 shall equal the average price that is used to de20 termine crop insurance guarantees for the crop 

21 year for the covered commodity under the Fed22 eral Crop Insurance Act (7 U.S.C. 1501 et 

23 seq.) during the crop year and the preceding 2 

24 crop years. 


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1 ‘‘(B) MINIMUM AND MAXIMUM PRICE.— 

2 The revenue counter-cyclical program pre-plant3 ing price for a crop year for a covered com4 modity under subparagraph (A) shall not de5 crease or increase more than 15 percent from 

6 the pre-planting price for the preceding year. 

7 ‘‘(d) PAYMENT AMOUNT.—If revenue counter-cyclical 

8 payments are required to be paid for any of the 2008 

9 through 2012 crop years of a covered commodity, the 

10 amount of the revenue counter-cyclical payment to be paid 

11 to the producers on the farm for the crop year under this 

12 section shall be equal to the product obtained by multi13 plying— 

14 ‘‘(1) the difference between— 

15 ‘‘(A) the revenue counter-cyclical program 

16 guarantee for the crop year for the covered 

17 commodity in the State determined under sub18 section (c); and 

19 ‘‘(B) the actual State revenue from the 

20 crop year for the covered commodity in the 

21 State determined under subsection (b); 

22 ‘‘(2) the acreage planted or considered planted 

23 to the covered commodity for harvest on the farm in 

24 the crop year; 

25 ‘‘(3) the quotient obtained by dividing— 


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1 ‘‘(A) the actual production history on the 

2 farm; by 

3 ‘‘(B) the expected State yield for the crop 

4 year, as determined under subsection (c)(2); 

5 and 

6 ‘‘(4) 90 percent. 

7 ‘‘(e) RECOURSE LOANS.—For each of the 2008 

8 through 2012 crops of a covered commodity, the Secretary 

9 shall make available to producers on a farm recourse 

10 loans, as determined by the Secretary, on any production 

11 of the covered commodity.’’. 

12 SEC. 3. IMPACT ON CROP INSURANCE PROGRAMS. 

13 (a) RATING.— 

14 (1) IN GENERAL.—The Secretary of Agri15 culture, acting through the Administrator of the 

16 Risk Management Agency shall carry out a study to 

17 identify such actions as are necessary to ensure, to 

18 the maximum extent practicable, that all policies and 

19 plans of insurance under the Federal Crop Insur20 ance Act (7 U.S.C. 1501 et seq.) are properly rated 

21 to take into account a rebalancing of risk as a result 

22 of the enactment of this Act and the amendments 

23 made by this Act. 

24 (2) IMPLEMENTATION.—Not later than 180 

25 days after the date of enactment of this Act, the 


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1 Secretary shall carry out the actions identified under 

2 paragraph (1). 

3 (b) PREVENTION OF DUPLICATION.—The Adminis4 trator of the Risk Management Agency and Administrator 

5 of the Farm Service Agency shall work together to ensure, 

6 to the maximum extent practicable, that producers on a 

7 farm are not compensated through the revenue counter8 cyclical program established under section 1104 of the 

9 Farm Security and Rural Investment Act of 2002 (as 

10 amended by section 2) and under the Federal Crop Insur11 ance Act (7 U.S.C. 1501 et seq.) for the same loss, includ12 ing by reducing crop insurance indemnity payments by the 

13 amount of the revenue counter-cyclical payments. 

14 SEC. 4. CONFORMING AMENDMENTS. 

15 (a) Section 166(a) of the Federal Agriculture Im16 provement and Reform Act of 1996 (7 U.S.C. 7286(a)) 

17 is amended by striking ‘‘B and’’. 

18 (b) Section 1001 of the Farm Security and Rural In19 vestment Act of 2002 (7 U.S.C. 7901) is amended— 

20 (1) by striking paragraphs (3), (6), (8), and 

21 (15); 

22 (2) by redesignating paragraphs (4), (5), (7), 

23 (9), (10), (11), (12), (13), (14), and (16) as para24 graphs (3), (4), (5), (6), (7), (8), (9), (11), (12), 

25 and (13), respectively; 


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1 (3) in paragraph (7) (as so redesignated), by 

2 striking ‘‘and counter-cyclical payments’’; 

3 (4) in paragraph (8) (as so redesignated)— 

4 (A) in subparagraph (A), by striking ‘‘(A) 

5 IN GENERAL.—’’; and 

6 (B) by striking subparagraph (B); 

7 (5) by inserting after paragraph (9) (as so re8 designated) the following: 

9 ‘‘(10) REVENUE COUNTER-CYCLICAL PAY10 MENTS.—The term ‘revenue counter-cyclical pay11 ments’ means a payment made to producers on a 

12 farm under section 1104.’’. 

13 (c) The subtitle heading of subtitle A of title I of the 

14 Farm Security and Rural Investment Act of 2002 (7 

15 U.S.C. prec. 7911) is amended by inserting ‘‘Revenue’’ 

16 before ‘‘Counter-Cyclical’’. 

17 (d) Section 1101 of the Farm Security and Rural In18 vestment Act of 2002 (7 U.S.C. 7911) is amended by 

19 striking ‘‘and counter-cyclical payments’’ each place it ap20 pears in subsections (a)(1) and (e)(2). 

21 (e) Section 1102 of the Farm Security and Rural In22 vestment Act of 2002 (7 U.S.C. 7912) is amended— 

23 (1) in subsection (a), by striking ‘‘and counter24 cyclical payments’’; and 

25 (2) by striking subsection (e). 


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1 (f) Section 1103 of the Farm Security and Rural In2 vestment Act of 2002 (7 U.S.C. 7913) is amended by 

3 striking ‘‘2007’’ each place it appears and inserting 

4 ‘‘2012’’. 

5 (g) Section 1105 of the Farm Security and Rural In6 vestment Act of 2002 (7 U.S.C. 7915) is amended— 

7 (1) in the section heading, by inserting ‘‘REV8 ENUE’’ before ‘‘COUNTER-CYCLICAL’’; and 

9 (2) by inserting ‘‘revenue’’ before ‘‘counter-cy10 clical’’ each place it appears. 

11 (h) Subtitle B of title I of the Farm Security and 

12 Rural Investment Act of 2002 (7 U.S.C. 7931 et seq.) 

13 is repealed. 

14 (i) Subtitles C through F of title I of the Farm Secu15 rity and Rural Investment Act of 2002 (7 U.S.C. 7951 

16 et seq.) are amended by striking ‘‘2007’’ each place it ap17 pears and inserting ‘‘2012’’. 

18 (j) Section 1307(a)(6) of the Farm Security and 

19 Rural Investment Act of 2002 (7 U.S.C. 7957)(a)(6)) is 

20 amended in the first sentence by striking ‘‘2006’’ and in21 serting ‘‘2011’’. 

22 (k) Section 1601(d)(1) of the Farm Security and 

23 Rural Investment Act of 2002 (7 U.S.C. 7991(d)(1)) is 

24 amended by striking ‘‘and counter-cyclical payments 


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1 under subtitle A and subtitle C’’ and inserting ‘‘under sub2 title A’’. 

3 (l) Section 1605 of the Farm Security and Rural In4 vestment Act of 2002 (7 U.S.C. 7993) is repealed. 

5 (m) Section 1615(2) of the Farm Security and Rural 

6 Investment Act of 2002 (7 U.S.C. 7998(2)) is amended— 

7 (1) in subparagraph (B), by striking ‘‘Loan’’ 

8 and inserting ‘‘Covered’’; and 

9 (2) in subparagraph (C), by striking ‘‘loan’’ and 

10 inserting ‘‘covered’’. 

11 (n) Section 1001 of the Food Security Act of 1985 

12 (7 U.S.C. 1308) is amended— 

13 (1) in subsection (c)(1), by inserting ‘‘revenue’’ 

14 before ‘‘counter-cyclical’’; and 

15 (2) in subsection (d)— 

16 (A) by striking paragraph (1); and 

17 (B) in paragraph (2)— 

18 (i) by striking ‘‘(2) OTHER COMMOD19 ITIES.—’’; 

20 (ii) in subparagraph (A), by striking 

21 ‘‘, wool, mohair, or honey under subtitle B 

22 or’’ and inserting ‘‘under subtitle’’; 

23 (iii) in subparagraph (B), by striking 

24 ‘‘, peanuts, wool, mohair, and honey under 


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1 those subtitles’’ and inserting ‘‘under that 

2 subtitle’’; and 

3 (iv) by redesignating subparagraphs 

4 (A) and (B) as paragraphs (1) and (2), re5 spectively, and indenting appropriately. 

Æ 


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