duction of the crop of the loan commodity by
the producer in a quantity that does not exceed
the historical county average yield for the loan
commodity established by the National Agricul-
tural Statistics Service, adjusted for long-term
yield trends.
‘‘(B) EXCESS
PRODUCTION.—The loan
rate for a marketing assistance loan made to a
producer for a crop of a loan commodity under
paragraph (1) with respect to the production of
the crop of the loan commodity in excess of the
historical county average yield for the loan com-
modity described in subparagraph (A) shall be
equal to the loan rate established for a 0% pro-
jected percentage reduction rate for the loan
commodity under paragraph (1).
‘‘(C) DISASTERS.—
‘‘(i) IN GENERAL.—If the production
of a crop of a loan commodity by a pro-
ducer is less than the historical county av-
erage yield for the loan commodity de-
scribed in subparagraph (A) as a result of
damaging weather, an insurable peril, or
related condition, the producer may receive
a payment on the lost production that shall
equal the difference between—
‘‘(I) the maximum quantity of
loan commodity that could have been
designated for the loan rate author-
ized under this section for the pro-
ducer; and
‘‘(II) the quantity of loan com-
modity the producer was able to
produce and commercially market.
‘‘(ii) CALCULATION
OF
PAYMENT.—
The payment described in clause (i) shall
be equal to the loan deficiency payment the
producer could have received on the lost
production on any date, selected by the
producer, on which a loan deficiency pay-
ment was available for that crop of the
loan commodity.
‘‘(3) OTHER LOAN COMMODITIES.—In the case
of a producer of a loan commodity not covered by
paragraphs (1) and (2) that elects to participate in
the flexible fallow program under this section, the
loan rate for a marketing assistance loan under sec-
tion 131 for the crop of the loan commodity shall be
based on—
‘‘(A) in the case of grain sorghum, barley,
and oats, such level as the Secretary determines
is fair and reasonable in relation to the rate
that loans are made available for corn, taking
into consideration the feeding value of the com-
modity in relation to corn;
‘‘(B) in the case of extra long staple cot-
ton, such level as the Secretary determines is
fair and reasonable; and
‘‘(C) in the case of oilseeds other than soy-
beans, such level as the Secretary determines is
fair and reasonable in relation to the loan rate
available for soybeans, except that the rate for
the oilseeds (other than cottonseed) shall not be
less than the rate established for soybeans on a
per-pound basis for the same crop.
‘‘(d) CONSERVATION USE
OF SET-ASIDE ACRE-
AGE.—To be eligible for a loan rate under this section,
a producer shall devote all of the acreage set aside under
this section to a conservation use approved by the Sec-
retary and manage the set-aside acreage using manage-
ment practices designed to enhance soil conservation and
wildlife habitat. The Secretary shall prescribe the ap-
proved management practices for a county in consultation
with the relevant State technical committee.
‘‘(1) LIMITED GRAZING.—The Secretary may
permit limited grazing on the set-aside acreage when
the grazing is incidental to the gleaning of crop resi-
dues on adjacent fields.
‘‘(e) CERTIFICATION.—To be eligible to participate in
the flexible fallow program for the 2001 or 2002 crops,
a producer shall certify to the Secretary (by farm serial
number) the total planted acreage assigned, planted, and
set aside with respect to each loan commodity.’’.
(b) CONFORMING AMENDMENTS.—
(1) LOAN RATE ADJUSTMENTS.—Section 132 of
the Agricultural Market Transition Act (7 U.S.C.
7232) is amended—
(A) in subsection (a)(1)(B), by striking
‘‘$2.58’’ and inserting ‘‘$2.75’’; and
(B) in subsection (f)(1), by striking sub-
paragraph (B) and inserting the following new
subparagraph:
‘‘(B) not more than $4.72 per bushel.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply beginning with the
2001 crop of a loan commodity (as defined in sec-
tion 102 of the Agricultural Market Transition Act
(7 U.S.C. 7202)).
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