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graph (1) for a crop of a commodity may not
be made available to producers on a farm with
respect to any acreage in excess of the payment
acreage for the farm for the commodity.
‘‘(B) CROP
INSURANCE.—Payments pro-
vided under paragraph (1) for a crop of a com-
modity may not be made available to producers
on a farm unless such producers enter into an
agreement to obtain multiperil crop insurance,
to the extent required under section 2247.
‘‘(4) REDUCTION IN DEFICIENCY PAYMENTS.—
The total quantity of a crop of a commodity on
which deficiency payments otherwise would be pay-
able to producers on a farm under the Agricultural
Act of 1949 shall be reduced by the quantity on
which a payment is made to the producers for the
crop under paragraph (1).
‘‘(5) ELECTION OF PAYMENTS.—
‘‘(A) APPLICATION OF PARAGRAPH.—This
paragraph shall apply for a crop year, effective
only for the crops of wheat, feed grains, upland
cotton, extra long staple cotton, and rice, to
producers on a farm who—
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‘‘(i) had failed wheat, feed grain, up-
land cotton, extra long staple cotton, or
rice acreage during such crop year; or
‘‘(ii) were prevented from planting
acreage to such commodity because of
damaging weather or related condition.
‘‘(B) ELECTION.—The Secretary of Agri-
culture shall (within 30 days after the date on
which assistance is made available under this
subchapter for a crop year) permit producers
referred to in subparagraph (A) to elect wheth-
er to receive disaster payments for such crop
for such crop year in accordance with this sec-
tion in lieu of payments received for such crop
under section 101B(c)(1)(D), 103B(c)(1)(D),
105B(c)(1)(E), or 107B(c)(1)(E) of the Agri-
cultural Act of 1949.
‘‘(6) SPRING WHEAT AS REPLACEMENT CROP
FOR WINTER WHEAT.—In providing assistance under
this section or section 2242 for a crop of winter
wheat, the Secretary shall disregard spring wheat
that is planted as a replacement crop for such win-
ter wheat.
‘‘(b) ADVANCE DEFICIENCY PAYMENTS.—
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‘‘(1) APPLICATION OF SUBSECTION.—This sub-
section shall apply only for a crop year for which the
producers on a farm elect to participate in the pro-
duction adjustment program established under the
Agricultural Act of 1949 for the crop of wheat, feed
grains, upland cotton, extra long staple cotton, or
rice for such crop year.
‘‘(2) FORGIVENESS
OF
REFUND
REQUIRE-
MENT.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), if because of damaging weather or
related condition the total quantity of such crop
of the commodity that the producers are able to
harvest on the farm is less than the result of
multiplying the farm program payment yield es-
tablished by the Secretary for such crop by the
sum of the acreage planted for harvest and the
acreage prevented from being planted (because
of a natural disaster, as determined by the Sec-
retary) for such crop (hereinafter in this section
referred to as the ‘qualifying amount’), the pro-
ducers shall not be required to refund any ad-
vance deficiency payment made to the produc-
ers for such crop under section 114 of the Agri-
cultural Act of 1949 (7 U.S.C. 1445j) with re-
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spect to that portion of the deficiency in pro-
duction that does not exceed—
‘‘(i) in the case of producers who ob-
tained crop insurance for such crop of the
commodity under the Federal Crop Insur-
ance Act, 35 percent of the qualifying
amount; and
‘‘(ii) in the case of other producers,
40 percent of the qualifying amount.
‘‘(B) CROP INSURANCE.—Producers on a
farm shall not be eligible for the forgiveness
provided for under subparagraph (A), unless
such producers enter into an agreement to ob-
tain multiperil crop insurance to the extent re-
quired under section 2247.
‘‘(3) ELECTION
FOR
NONRECIPIENTS.—The
Secretary shall allow producers on a farm who, be-
fore the date on which assistance is made available
under this subchapter for a crop year, elect not to
receive advance deficiency payments made available
for the crop for such crop year under section 114 of
the Agricultural Act of 1949 (7 U.S.C. 1445j) to
elect (within 30 days after such date) whether to re-
ceive such advance deficiency payments.
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‘‘(4) DATE OF REFUND FOR PAYMENTS.—If the
Secretary determines that any portion of the ad-
vance deficiency payment made to producers for a
crop of wheat, feed grains, upland cotton, extra long
staple cotton, or rice under section 114 of the Agri-
cultural Act of 1949 (7 U.S.C. 1445j) must be re-
funded, such refund shall not be required prior to
July 31 of the year following such determination for
that portion of the crop for which a disaster pay-
ment is made under subsection (a).
‘‘SEC. 2242. PAYMENTS TO PROGRAM NONPARTICIPANTS
FOR TARGET PRICE COMMODITIES AND PAY-
MENTS TO PROGRAM PARTICIPANTS FOR
TARGET PRICE COMMODITIES ON FLEXIBLE
ACRES.
‘‘(a) DISASTER PAYMENTS.—
‘‘(1) IN GENERAL.—Effective only for a crop
year for which the producers on a farm elect not to
participate in the production adjustment program
established under the Agricultural Act of 1949 (7
U.S.C. 1421 et seq.) for the crop of wheat, feed
grains, upland cotton, extra long staple cotton, or
rice for such crop year (and for such crop on flexible
acres as provided under section 2241(a)(2)), if the
Secretary of Agriculture determines that, because of