(4) PAYMENT AMOUNT.—If price loss coverage 
payments are required to be provided under this 
subsection for any of the 2014 through 2018 crop 
years for a covered commodity, the amount of the 
price loss coverage payment to be paid to the pro-
ducers on a farm for the crop year shall be equal to 
the product obtained by multiplying— 
(A) the payment rate for the covered com-
modity under paragraph (3); 
(B) the payment yield for the covered com-
modity; and 
(C) the payment acres for the covered com-
modity. 
(5) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that price loss cov-
erage payments are required to be provided for the 
covered commodity, the payments shall be made be-
ginning October 1, or as soon as practicable there-
after, after the end of the applicable marketing year 
for the covered commodity. 
(6) SPECIAL
RULE
FOR
BARLEY.—In deter-
mining the effective price for barley in paragraph 
(2), the Secretary shall use the all-barley price. 
(7) SPECIAL RULE FOR TEMPERATE JAPONICA 
RICE.—The Secretary shall provide a reference price 
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with respect to temperate japonica rice in an amount 
equal to 115 percent of the amount established in 
subparagraphs (F) and (G) of section 1104(16) in 
order to reflect price premiums. 
(c) REVENUE LOSS COVERAGE.— 
(1) AVAILABLE AS AN ALTERNATIVE.—As an 
alternative to receiving price loss coverage payments 
under subsection (b) for a covered commodity, all of 
the owners of the farm may make a one-time, irrev-
ocable election on a covered commodity-by-covered 
commodity basis to receive revenue loss coverage 
payments for each covered commodity in accordance 
with this subsection. If any of the owners of the 
farm make different elections on the same covered 
commodity on the farm, all of the owners of the 
farm shall be deemed to have not made the election 
available under this paragraph. 
(2) PAYMENTS.—In the case of owners of a 
farm that make the election described in paragraph 
(1) for a covered commodity, the Secretary shall 
make revenue loss coverage payments available 
under this subsection for each of the 2014 through 
2018 crop years if the Secretary determines that— 
(A) the actual county revenue for the crop 
year for the covered commodity; is less than 
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(B) the county revenue loss coverage trig-
ger for the crop year for the covered com-
modity. 
(3) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that revenue loss cov-
erage payments are required to be provided for the 
covered commodity, payments shall be made begin-
ning October 1, or as soon as practicable thereafter, 
after the end of the applicable marketing year for 
the covered commodity. 
(4) ACTUAL COUNTY REVENUE.—The amount 
of the actual county revenue for a crop year of a 
covered commodity shall be equal to the product ob-
tained by multiplying— 
(A) the actual county yield, as determined 
by the Secretary, for each planted acre for the 
crop year for the covered commodity; and 
(B) the higher of— 
(i) the midseason price; or 
(ii) the national average loan rate for 
a marketing assistance loan for the covered 
commodity in effect for crop years 2014 
through 2018 under subtitle B. 
(5) COUNTY REVENUE LOSS COVERAGE TRIG-
GER.— 
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TKELLEY on DSK3SPTVN1PROD with BILLS
(A) IN
GENERAL.—The county revenue 
loss coverage trigger for a crop year for a cov-
ered commodity on a farm shall equal 85 per-
cent of the benchmark county revenue. 
(B) BENCHMARK COUNTY REVENUE.— 
(i) IN
GENERAL.—The benchmark 
county revenue shall be the product ob-
tained by multiplying— 
(I) subject to clause (ii), the av-
erage historical county yield as deter-
mined by the Secretary for the most 
recent 5 crop years, excluding each of 
the crop years with the highest and 
lowest yields; and 
(II) subject to clause (iii), the av-
erage national marketing year average 
price for the most recent 5 crop years, 
excluding each of the crop years with 
the highest and lowest prices. 
(ii) YIELD CONDITIONS.—If the his-
torical county yield in clause (i)(I) for any 
of the 5 most recent crop years, as deter-
mined by the Secretary, is less than 70 
percent of the transitional yield, as deter-
mined by the Secretary, the amounts used 
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for any of those years in clause (i)(I) shall 
be 70 percent of the transitional yield. 
(iii) REFERENCE PRICE.—If the na-
tional marketing year average price in 
clause (i)(II) for any of the 5 most recent 
crop years is lower than the reference price 
for the covered commodity, the Secretary 
shall use the reference price for any of 
those years for the amounts in clause 
(i)(II). 
(6) PAYMENT RATE.—The payment rate shall 
be equal to the lesser of— 
(A) the difference between— 
(i) the county revenue loss coverage 
trigger for the covered commodity; and 
(ii) the actual county revenue for the 
crop year for the covered commodity; or 
(B) 10 percent of the benchmark county 
revenue for the crop year for the covered com-
modity. 
(7) PAYMENT AMOUNT.—If revenue loss cov-
erage payments under this subsection are required 
to be provided for any of the 2014 through 2018 
crop years of a covered commodity, the amount of 
the revenue loss coverage payment to be provided to 
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the producers on a farm for the crop year shall be 
equal to the product obtained by multiplying— 
(A) the payment rate under paragraph (6); 
and 
(B) the payment acres of the covered com-
modity on the farm. 
(8) DUTIES OF THE SECRETARY.—In providing 
revenue loss coverage payments under this sub-
section, the Secretary— 
(A) shall ensure that producers on a farm 
do not reconstitute the farm of the producers to 
void or change the election made under para-
graph (1); 
(B) to the maximum extent practicable, 
shall use all available information and analysis, 
including data mining, to check for anomalies 
in the provision of revenue loss coverage pay-
ments; 
(C) to the maximum extent practicable, 
shall calculate a separate county revenue loss 
coverage trigger for irrigated and nonirrigated 
covered commodities and a separate actual 
county revenue for irrigated and nonirrigated 
covered commodities; 
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(D) shall assign a benchmark county yield 
for each planted acre for the crop year for the 
covered commodity on the basis of the yield his-
tory of representative farms in the State, re-
gion, or crop reporting district, as determined 
by the Secretary, if— 
(i) the Secretary cannot establish the 
benchmark county yield for each planted 
acre for a crop year for a covered com-
modity in the county in accordance with 
paragraph (5); or 
(ii) the yield determined under para-
graph (5) is an unrepresentative average 
yield for the county (as determined by the 
Secretary); and 
(E) to the maximum extent practicable, 
shall ensure that in order to be eligible for a 
payment under this subsection, the producers 
on the farm suffered an actual loss on the cov-
ered commodity for the crop year for which 
payment is sought. 
SEC. 1108. PRODUCER AGREEMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on 
a farm may receive payments under this subtitle 
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TKELLEY on DSK3SPTVN1PROD with BILLS
with respect to the farm, the producers shall agree, 
during the crop year for which the payments are 
made and in exchange for the payments— 
(A) to comply with applicable conservation 
requirements under subtitle B of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3811 
et seq.); 
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title 
XII of that Act (16 U.S.C. 3821 et seq.); and 
(C) to effectively control noxious weeds 
and otherwise maintain the land in accordance 
with sound agricultural practices, as determined 
by the Secretary. 
(2) COMPLIANCE.—The Secretary may issue 
such rules as the Secretary considers necessary to 
ensure producer compliance with the requirements of 
paragraph (1). 
(3) MODIFICATION.—At the request of the 
transferee or owner, the Secretary may modify the 
requirements of this subsection if the modifications 
are consistent with the objectives of this subsection, 
as determined by the Secretary. 
(b) TRANSFER
OR
CHANGE
OF
INTEREST
IN 
FARM.— 
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TKELLEY on DSK3SPTVN1PROD with BILLS
(1) TERMINATION.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), a transfer of (or change in) the 
interest of the producers on a farm for which 
payments under this subtitle are provided shall 
result in the termination of the payments, un-
less the transferee or owner of the acreage 
agrees to assume all obligations under sub-
section (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a 
payment under this subtitle dies, becomes incom-
petent, or is otherwise unable to receive the pay-
ment, the Secretary shall make the payment in ac-
cordance with rules issued by the Secretary. 
(c) ACREAGE REPORTS.—As a condition on the re-
ceipt of any benefits under this subtitle or subtitle B, the 
Secretary shall require producers on a farm to submit to 
the Secretary annual acreage reports with respect to all 
cropland on the farm. 
(d) TENANTS AND SHARECROPPERS.—In carrying 
out this subtitle, the Secretary shall provide adequate safe-
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guards to protect the interests of tenants and share-
croppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall 
provide for the sharing of payments made under this sub-
title among the producers on a farm on a fair and equi-
table basis. 
SEC. 1109. PERIOD OF EFFECTIVENESS. 
This subtitle shall be effective beginning with the 
2014 crop year of each covered commodity through the 
2018 crop year. 
Subtitle B—Marketing Loans 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) DEFINITION OF LOAN COMMODITY.—In this sub-
title, the term ‘‘loan commodity’’ means wheat, corn, grain 
sorghum, barley, oats, upland cotton, extra long staple 
cotton, long grain rice, medium grain rice, peanuts, soy-
beans, other oilseeds, graded wool, nongraded wool, mo-
hair, honey, dry peas, lentils, small chickpeas, and large 
chickpeas. 
(b) NONRECOURSE LOANS AVAILABLE.— 
(1) IN
GENERAL.—For each of the 2014 
through 2018 crops of each loan commodity, the 
Secretary shall make available to producers on a 
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TKELLEY on DSK3SPTVN1PROD with BILLS
farm nonrecourse marketing assistance loans for 
loan commodities produced on the farm. 
(2) TERMS AND CONDITIONS.—The marketing 
assistance loans shall be made under terms and con-
ditions that are prescribed by the Secretary and at 
the loan rate established under section 1202 for the 
loan commodity. 
(c) ELIGIBLE PRODUCTION.—The producers on a 
farm shall be eligible for a marketing assistance loan 
under subsection (b) for any quantity of a loan commodity 
produced on the farm. 
(d) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (b), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet-
land protection requirements under subtitle C of title XII 
of that Act (16 U.S.C. 3821 et seq.) during the term of 
the loan. 
(e) SPECIAL RULES FOR PEANUTS.— 
(1) IN GENERAL.—This subsection shall apply 
only to producers of peanuts. 
(2) OPTIONS FOR OBTAINING LOAN.—A mar-
keting assistance loan under this section, and loan 
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deficiency payments under section 1205, may be ob-
tained at the option of the producers on a farm 
through— 
(A) a designated marketing association or 
marketing cooperative of producers that is ap-
proved by the Secretary; or 
(B) the Farm Service Agency. 
(3) STORAGE OF LOAN PEANUTS.—As a condi-
tion on the approval by the Secretary of an indi-
vidual or entity to provide storage for peanuts for 
which a marketing assistance loan is made under 
this section, the individual or entity shall agree— 
(A) to provide the storage on a nondiscrim-
inatory basis; and 
(B) to comply with such additional require-
ments as the Secretary considers appropriate to 
accomplish the purposes of this section and pro-
mote fairness in the administration of the bene-
fits of this section. 
(4) STORAGE, HANDLING, AND
ASSOCIATED 
COSTS.— 
(A) IN GENERAL.—To ensure proper stor-
age of peanuts for which a loan is made under 
this section, the Secretary shall pay handling 
and other associated costs (other than storage 
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costs) incurred at the time at which the peanuts 
are placed under loan, as determined by the 
Secretary. 
(B) REDEMPTION AND FORFEITURE.—The 
Secretary shall— 
(i) require the repayment of handling 
and other associated costs paid under sub-
paragraph (A) for all peanuts pledged as 
collateral for a loan that is redeemed under 
this section; and 
(ii) pay storage, handling, and other 
associated costs for all peanuts pledged as 
collateral that are forfeited under this sec-
tion. 
(5) MARKETING.—A marketing association or 
cooperative may market peanuts for which a loan is 
made under this section in any manner that con-
forms to consumer needs, including the separation of 
peanuts by type and quality. 
(6) REIMBURSABLE
AGREEMENTS
AND
PAY-
MENT
OF
ADMINISTRATIVE
EXPENSES.—The Sec-
retary may implement any reimbursable agreements 
or provide for the payment of administrative ex-
penses under this subsection only in a manner that 
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is consistent with those activities in regard to other 
loan commodities. 
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 
ASSISTANCE LOANS. 
(a) IN GENERAL.—For purposes of each of the 2014 
through 2018 crop years, the loan rate for a marketing 
assistance loan under section 1201 for a loan commodity 
shall be equal to the following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
(3) In the case of grain sorghum, $1.95 per 
bushel. 
(4) In the case of barley, $1.95 per bushel. 
(5) In the case of oats, $1.39 per bushel. 
(6) In the case of base quality of upland cotton, 
for the 2014 and each subsequent crop year, the 
simple average of the adjusted prevailing world price 
for the 2 immediately preceding marketing years, as 
determined by the Secretary and announced October 
1 preceding the next domestic plantings, but in no 
case less than $0.47 per pound or more than $0.52 
per pound. 
(7) In the case of extra long staple cotton, 
$0.7977 per pound. 
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TKELLEY on DSK3SPTVN1PROD with BILLS
(8) In the case of long grain rice, $6.50 per 
hundredweight. 
(9) In the case of medium grain rice, $6.50 per 
hundredweight. 
(10) In the case of soybeans, $5.00 per bushel. 
(11) In the case of other oilseeds, $10.09 per 
hundredweight for each of the following kinds of oil-
seeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Sec-
retary. 
(12) In the case of dry peas, $5.40 per hun-
dredweight. 
(13) In the case of lentils, $11.28 per hundred-
weight. 
(14) In the case of small chickpeas, $7.43 per 
hundredweight. 
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TKELLEY on DSK3SPTVN1PROD with BILLS
(15) In the case of large chickpeas, $11.28 per 
hundredweight. 
(16) In the case of graded wool, $1.15 per 
pound. 
(17) In the case of nongraded wool, $0.40 per 
pound. 
(18) In the case of mohair, $4.20 per pound. 
(19) In the case of honey, $0.69 per pound. 
(20) In the case of peanuts, $355 per ton. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-
SEEDS.—The Secretary shall establish a single loan rate 
in each county for each kind of other oilseeds described 
in subsection (a)(11). 
SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan com-
modity, a marketing assistance loan under section 1201 
shall have a term of 9 months beginning on the first day 
of the first month after the month in which the loan is 
made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may 
not extend the term of a marketing assistance loan for 
any loan commodity. 
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the 
producers on a farm to repay a marketing assistance loan 
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under section 1201 for a loan commodity (other than up-
land cotton, long grain rice, medium grain rice, extra long 
staple cotton, peanuts and confectionery and each other 
kind of sunflower seed (other than oil sunflower seed)) at 
a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); 
(2) a rate (as determined by the Secretary) 
that— 
(A) is calculated based on average market 
prices for the loan commodity during the pre-
ceding 30-day period; and 
(B) will minimize discrepancies in mar-
keting loan benefits across State boundaries 
and across county boundaries; or 
(3) a rate that the Secretary may develop using 
alternative methods for calculating a repayment rate 
for a loan commodity that the Secretary determines 
will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
the commodity by the Federal Government; 
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(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; 
(D) allow the commodity produced in the 
United States to be marketed freely and com-
petitively, both domestically and internationally; 
and 
(E) minimize discrepancies in marketing 
loan benefits across State boundaries and 
across county boundaries. 
(b) REPAYMENT RATES FOR UPLAND COTTON, LONG 
GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 
shall permit producers to repay a marketing assistance 
loan under section 1201 for upland cotton, long grain rice, 
and medium grain rice at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the prevailing world market price for the 
commodity, as determined and adjusted by the Sec-
retary in accordance with this section. 
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE 
COTTON.—Repayment of a marketing assistance loan for 
extra long staple cotton shall be at the loan rate estab-
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lished for the commodity under section 1202, plus interest 
(determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7283)). 
(d) PREVAILING WORLD MARKET PRICE.—For pur-
poses of this section and section 1207, the Secretary shall 
prescribe by regulation— 
(1) a formula to determine the prevailing world 
market price for each of upland cotton, long grain 
rice, and medium grain rice; and 
(2) a mechanism by which the Secretary shall 
announce periodically those prevailing world market 
prices. 
(e) ADJUSTMENT OF PREVAILING WORLD MARKET 
PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND 
MEDIUM GRAIN RICE.— 
(1) RICE.—The prevailing world market price 
for long grain rice and medium grain rice deter-
mined under subsection (d) shall be adjusted to 
United States quality and location. 
(2) COTTON.—The prevailing world market 
price for upland cotton determined under subsection 
(d)— 
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(A) shall be adjusted to United States 
quality and location, with the adjustment to in-
clude— 
(i) a reduction equal to any United 
States Premium Factor for upland cotton 
of a quality higher than Middling (M) 
13⁄32-inch; and 
(ii) the average costs to market the 
commodity, including average transpor-
tation costs, as determined by the Sec-
retary; and 
(B) may be further adjusted, during the 
period beginning on the date of enactment of 
this Act and ending on July 31, 2019, if the 
Secretary determines the adjustment is nec-
essary— 
(i) to minimize potential loan forfeit-
ures; 
(ii) to minimize the accumulation of 
stocks of upland cotton by the Federal 
Government; 
(iii) to ensure that upland cotton pro-
duced in the United States can be mar-
keted freely and competitively, both domes-
tically and internationally; and 
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(iv) to ensure an appropriate transi-
tion between current-crop and forward- 
crop price quotations, except that the Sec-
retary 
may 
use 
forward-crop 
price 
quotations prior to July 31 of a marketing 
year only if— 
(I) there are insufficient current- 
crop price quotations; and 
(II) 
the 
forward-crop 
price 
quotation is the lowest such quotation 
available. 
(3) GUIDELINES
FOR
ADDITIONAL
ADJUST-
MENTS.—In making adjustments under this sub-
section, the Secretary shall establish a mechanism 
for determining and announcing the adjustments in 
order to avoid undue disruption in the United States 
market. 
(f) REPAYMENT RATES FOR CONFECTIONERY AND 
OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 
shall permit the producers on a farm to repay a marketing 
assistance loan under section 1201 for confectionery and 
each other kind of sunflower seed (other than oil sunflower 
seed) at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
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TKELLEY on DSK3SPTVN1PROD with BILLS
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effec-
tive for each of the 2014 through 2018 crop years, the 
Secretary shall make cotton storage payments available in 
the same manner, and at the same rates as the Secretary 
provided storage payments for the 2006 crop of cotton, 
except that the rates shall be reduced by 10 percent. 
(h) REPAYMENT RATE
FOR PEANUTS.—The Sec-
retary shall permit producers on a farm to repay a mar-
keting assistance loan for peanuts under section 1201 at 
a rate that is the lesser of— 
(1) the loan rate established for peanuts under 
section 1202(a)(20), plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) a rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
peanuts by the Federal Government; 
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(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and 
(D) allow peanuts produced in the United 
States to be marketed freely and competitively, 
both domestically and internationally. 
(i) AUTHORITY TO TEMPORARILY ADJUST REPAY-
MENT RATES.— 
(1) ADJUSTMENT AUTHORITY.—In the event of 
a severe disruption to marketing, transportation, or 
related infrastructure, the Secretary may modify the 
repayment rate otherwise applicable under this sec-
tion for marketing assistance loans under section 
1201 for a loan commodity. 
(2) DURATION.—Any adjustment made under 
paragraph (1) in the repayment rate for marketing 
assistance loans for a loan commodity shall be in ef-
fect on a short-term and temporary basis, as deter-
mined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY
OF
LOAN
DEFICIENCY
PAY-
MENTS.— 
(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary may make loan deficiency 
payments available to producers on a farm that, al-
though eligible to obtain a marketing assistance loan 
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under section 1201 with respect to a loan com-
modity, agree to forgo obtaining the loan for the 
commodity in return for loan deficiency payments 
under this section. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) MARKETING
ASSISTANCE
LOANS.— 
Subject to subparagraph (B), nongraded wool 
in the form of unshorn pelts and hay and silage 
derived from a loan commodity are not eligible 
for a marketing assistance loan under section 
1201. 
(B) LOAN DEFICIENCY PAYMENT.—Effec-
tive for the 2014 through 2018 crop years, the 
Secretary may make loan deficiency payments 
available under this section to producers on a 
farm that produce unshorn pelts or hay and si-
lage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a 
loan commodity or commodity referred to in subsection 
(a)(2) shall be equal to the product obtained by multi-
plying— 
(1) the payment rate determined under sub-
section (c) for the commodity; by 
(2) the quantity of the commodity produced by 
the eligible producers, excluding any quantity for 
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which the producers obtain a marketing assistance 
loan under section 1201. 
(c) PAYMENT RATE.— 
(1) IN GENERAL.—In the case of a loan com-
modity, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for the loan commodity; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(2) UNSHORN PELTS.—In the case of unshorn 
pelts, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for ungraded wool; exceeds 
(B) the rate at which a marketing assist-
ance loan for ungraded wool may be repaid 
under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or si-
lage derived from a loan commodity, the payment 
rate shall be the amount by which— 
(A) the loan rate established under section 
1202 for the loan commodity from which the 
hay or silage is derived; exceeds 
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(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(d) EXCEPTION
FOR EXTRA LONG STAPLE COT-
TON.—This section shall not apply with respect to extra 
long staple cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETER-
MINATION.—The Secretary shall determine the amount of 
the loan deficiency payment to be made under this section 
to the producers on a farm with respect to a quantity of 
a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection 
(c) as of the date the producers request the payment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN
GENERAL.—Effective for the 2014 
through 2018 crop years, in the case of a producer 
that would be eligible for a loan deficiency payment 
under section 1205 for wheat, barley, or oats, but 
that elects to use acreage planted to the wheat, bar-
ley, or oats for the grazing of livestock, the Sec-
retary shall make a payment to the producer under 
this section if the producer enters into an agreement 
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with the Secretary to forgo any other harvesting of 
the wheat, barley, or oats on that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effec-
tive for the 2014 through 2018 crop years, with re-
spect to a producer on a farm that uses acreage 
planted to triticale for the grazing of livestock, the 
Secretary shall make a payment to the producer 
under this section if the producer enters into an 
agreement with the Secretary to forgo any other 
harvesting of triticale on that acreage. 
(b) PAYMENT AMOUNT.— 
(1) IN GENERAL.—The amount of a payment 
made under this section to a producer on a farm de-
scribed in subsection (a)(1) shall be equal to the 
amount determined by multiplying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect, as of the 
date of the agreement, for the county in which 
the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of wheat, 
barley, or oats; and 
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(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to that loan com-
modity on the farm; or 
(II) in the case of a farm without a 
payment yield for that loan commodity, an 
appropriate yield established by the Sec-
retary in a manner consistent with section 
1106(c) of this Act. 
(2) GRAZING
OF
TRITICALE
ACREAGE.—The 
amount of a payment made under this section to a 
producer on a farm described in subsection (a)(2) 
shall be equal to the amount determined by multi-
plying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect for 
wheat, as of the date of the agreement, for the 
county in which the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of triticale; 
and 
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(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to wheat on the 
farm; or 
(II) in the case of a farm without a 
payment yield for wheat, an appropriate 
yield established by the Secretary in a 
manner consistent with section 1106(c) of 
this Act. 
(c) TIME, MANNER, AND AVAILABILITY
OF PAY-
MENT.— 
(1) TIME AND MANNER.—A payment under this 
section shall be made at the same time and in the 
same manner as loan deficiency payments are made 
under section 1205. 
(2) AVAILABILITY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish an availability period for the payments 
authorized by this section. 
(B) CERTAIN COMMODITIES.—In the case 
of wheat, barley, and oats, the availability pe-
riod shall be consistent with the availability pe-
riod for the commodity established by the Sec-
retary for marketing assistance loans author-
ized by this subtitle. 
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(d) PROHIBITION ON CROP INSURANCE INDEMNITY 
OR NONINSURED CROP ASSISTANCE.—A 2014 through 
2018 crop of wheat, barley, oats, or triticale planted on 
acreage that a producer elects, in the agreement required 
by subsection (a), to use for the grazing of livestock in 
lieu of any other harvesting of the crop shall not be eligible 
for an indemnity under a policy or plan of insurance au-
thorized under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) or noninsured crop assistance under section 
196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR 
UPLAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.— 
In this subsection, the term ‘‘special import quota’’ 
means a quantity of imports that is not subject to 
the over-quota tariff rate of a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN
GENERAL.—The President shall 
carry out an import quota program during the 
period beginning on August 1, 2014, and end-
ing on July 31, 2019, as provided in this sub-
section. 
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TKELLEY on DSK3SPTVN1PROD with BILLS
(B) PROGRAM REQUIREMENTS.—Whenever 
the Secretary determines and announces that 
for any consecutive 4-week period, the Friday 
through Thursday average price quotation for 
the lowest-priced United States growth, as 
quoted for Middling (M) 13⁄32-inch cotton, deliv-
ered to a definable and significant international 
market, as determined by the Secretary, ex-
ceeds the prevailing world market price, there 
shall immediately be in effect a special import 
quota. 
(3) QUANTITY.—The quota shall be equal to 
the consumption during a 1-week period of cotton by 
domestic mills at the seasonally adjusted average 
rate of the most recent 3 months for which official 
data of the Department of Agriculture are available 
or, in the absence of sufficient data, as estimated by 
the Secretary. 
(4) APPLICATION.—The quota shall apply to 
upland cotton purchased not later than 90 days 
after the date of the Secretary’s announcement 
under paragraph (2) and entered into the United 
States not later than 180 days after that date. 
(5) OVERLAP.—A special quota period may be 
established that overlaps any existing quota period if 
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required by paragraph (2), except that a special 
quota period may not be established under this sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 
1974 (19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing 
year under the special import quota established 
under this subsection may not exceed the equivalent 
of 10 week’s consumption of upland cotton by do-
mestic mills at the seasonally adjusted average rate 
of the 3 months immediately preceding the first spe-
cial import quota established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
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(1) DEFINITIONS.—In this subsection: 
(A) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption of 
cotton during the most recent 3 months 
for which official data of the Department 
of Agriculture are available or, in the ab-
sence of sufficient data, as estimated by 
the Secretary; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton during the preceding 6 marketing 
years; or 
(II) cumulative exports of upland 
cotton plus outstanding export sales 
for the marketing year in which the 
quota is established. 
(B) LIMITED
GLOBAL
IMPORT
QUOTA.— 
The term ‘‘limited global import quota’’ means 
a quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(C) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Department 
of Agriculture— 
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TKELLEY on DSK3SPTVN1PROD with BILLS
(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; 
and 
(iii) imports to the latest date avail-
able during the marketing year. 
(2) PROGRAM.—The President shall carry out 
an import quota program that provides that when-
ever the Secretary determines and announces that 
the average price of the base quality of upland cot-
ton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of the quality of cotton in 
the markets for the preceding 36 months, notwith-
standing any other provision of law, there shall im-
mediately be in effect a limited global import quota 
subject to the following conditions: 
(A) QUANTITY.—The quantity of the quota 
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which official data of the Department of Ag-
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riculture are available or, in the absence of suf-
ficient data, as estimated by the Secretary. 
(B) QUANTITY
IF
PRIOR
QUOTA.—If a 
quota has been established under this sub-
section during the preceding 12 months, the 
quantity of the quota next established under 
this subsection shall be the smaller of 21 days 
of domestic mill consumption calculated under 
subparagraph (A) or the quantity required to 
increase the supply to 130 percent of the de-
mand. 
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a limited global 
import quota shall be considered to be an in- 
quota quantity for purposes of— 
(i) section 213(d) of the Caribbean 
Basin Economic Recovery Act (19 U.S.C. 
2703(d)); 
(ii) section 204 of the Andean Trade 
Preference Act (19 U.S.C. 3203); 
(iii) section 503(d) of the Trade Act 
of 1974 (19 U.S.C. 2463(d)); and 
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
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(D) QUOTA
ENTRY
PERIOD.—When a 
quota is established under this subsection, cot-
ton may be entered under the quota during the 
90-day period beginning on the date the quota 
is established by the Secretary. 
(3) NO OVERLAP.—Notwithstanding paragraph 
(2), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (a). 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall, on a monthly basis, make eco-
nomic adjustment assistance available to domestic 
users of upland cotton in the form of payments for 
all documented use of that upland cotton during the 
previous monthly period regardless of the origin of 
the upland cotton. 
(2) VALUE OF ASSISTANCE.—Effective begin-
ning on August 1, 2013, the value of the assistance 
provided under paragraph (1) shall be 3 cents per 
pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made 
available only to domestic users of upland cotton 
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that certify that the assistance shall be used only to 
acquire, construct, install, modernize, develop, con-
vert, or expand land, plant, buildings, equipment, fa-
cilities, or machinery. 
(4) REVIEW
OR
AUDIT.—The Secretary may 
conduct such review or audit of the records of a do-
mestic user under this subsection as the Secretary 
determines necessary to carry out this subsection. 
(5) IMPROPER
USE
OF
ASSISTANCE.—If the 
Secretary determines, after a review or audit of the 
records of the domestic user, that economic adjust-
ment assistance under this subsection was not used 
for the purposes specified in paragraph (3), the do-
mestic user shall be— 
(A) liable for the repayment of the assist-
ance to the Secretary, plus interest, as deter-
mined by the Secretary; and 
(B) ineligible to receive assistance under 
this subsection for a period of 1 year following 
the determination of the Secretary. 
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 
LONG STAPLE COTTON. 
(a) COMPETITIVENESS PROGRAM.—Notwithstanding 
any other provision of law, during the period beginning 
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on the date of enactment of this Act through July 31, 
2019, the Secretary shall carry out a program— 
(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple cot-
ton produced in the United States; and 
(3) to ensure that extra long staple cotton pro-
duced in the United States remains competitive in 
world markets. 
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 
the program, the Secretary shall make payments available 
under this section whenever— 
(1) for a consecutive 4-week period, the world 
market price for the lowest priced competing growth 
of extra long staple cotton (adjusted to United 
States quality and location and for other factors af-
fecting the competitiveness of such cotton), as deter-
mined by the Secretary, is below the prevailing 
United States price for a competing growth of extra 
long staple cotton; and 
(2) the lowest priced competing growth of extra 
long staple cotton (adjusted to United States quality 
and location and for other factors affecting the com-
petitiveness of such cotton), as determined by the 
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Secretary, is less than 134 percent of the loan rate 
for extra long staple cotton. 
(c) ELIGIBLE RECIPIENTS.—The Secretary shall 
make payments available under this section to domestic 
users of extra long staple cotton produced in the United 
States and exporters of extra long staple cotton produced 
in the United States that enter into an agreement with 
the Commodity Credit Corporation to participate in the 
program under this section. 
(d) PAYMENT AMOUNT.—Payments under this sec-
tion shall be based on the amount of the difference in the 
prices referred to in subsection (b)(1) during the fourth 
week of the consecutive 4-week period multiplied by the 
amount of documented purchases by domestic users and 
sales for export by exporters made in the week following 
such a consecutive 4-week period. 
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 
MOISTURE FEED GRAINS AND SEED COTTON. 
(a) HIGH MOISTURE FEED GRAINS.— 
(1) DEFINITION OF HIGH MOISTURE STATE.— 
In this subsection, the term ‘‘high moisture state’’ 
means corn or grain sorghum having a moisture con-
tent in excess of Commodity Credit Corporation 
standards for marketing assistance loans made by 
the Secretary under section 1201. 
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(2) RECOURSE LOANS AVAILABLE.—For each of 
the 2014 through 2018 crops of corn and grain sor-
ghum, the Secretary shall make available recourse 
loans, as determined by the Secretary, to producers 
on a farm that— 
(A) normally harvest all or a portion of 
their crop of corn or grain sorghum in a high 
moisture state; 
(B) present— 
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill, 
distillery, or other similar entity approved 
by the Secretary, pursuant to regulations 
issued by the Secretary; or 
(ii) field or other physical measure-
ments of the standing or stored crop in re-
gions of the United States, as determined 
by the Secretary, that do not have certified 
commercial scales from which certified 
scale tickets may be obtained within rea-
sonable proximity of harvest operation; 
(C) certify that the producers on the farm 
were the owners of the feed grain at the time 
of delivery to, and that the quantity to be 
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placed under loan under this subsection was in 
fact harvested on the farm and delivered to, a 
feedlot, feed mill, or commercial or on-farm 
high-moisture storage facility, or to a facility 
maintained by the users of corn and grain sor-
ghum in a high moisture state; and 
(D) comply with deadlines established by 
the Secretary for harvesting the corn or grain 
sorghum and submit applications for loans 
under this subsection within deadlines estab-
lished by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 
A loan under this subsection shall be made on a 
quantity of corn or grain sorghum of the same crop 
acquired by the producer equivalent to a quantity 
determined by multiplying— 
(A) the acreage of the corn or grain sor-
ghum in a high moisture state harvested on the 
farm of the producer; by 
(B) the lower of the farm program pay-
ment yield used to make payments under sub-
title A or the actual yield on a field, as deter-
mined by the Secretary, that is similar to the 
field from which the corn or grain sorghum was 
obtained. 
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(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For each of the 2014 through 2018 crops of upland 
cotton and extra long staple cotton, the Secretary shall 
make available recourse seed cotton loans, as determined 
by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate es-
tablished for the commodity by the Secretary, plus interest 
(determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT
AUTHORITY.—Subject to sub-
section (e), the Secretary may make appropriate adjust-
ments in the loan rates for any loan commodity (other 
than cotton) for differences in grade, type, quality, loca-
tion, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan 
level for the commodity will, on the basis of the anticipated 
incidence of the factors, be equal to the level of support 
determined in accordance with this subtitle and subtitle 
C. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
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(1) IN GENERAL.—The Secretary may establish 
loan rates for a crop for producers in individual 
counties in a manner that results in the lowest loan 
rate being 95 percent of the national average loan 
rate, if those loan rates do not result in an increase 
in outlays. 
(2) PROHIBITION.—Adjustments under this 
subsection shall not result in an increase in the na-
tional average loan rate for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN
GENERAL.—The Secretary may make 
appropriate adjustments in the loan rate for cotton 
for differences in quality factors. 
(2) TYPES OF ADJUSTMENTS.—Loan rate ad-
justments under paragraph (1) may include— 
(A) the use of non-spot market price data, 
in addition to spot market price data, that 
would enhance the accuracy of the price infor-
mation used in determining quality adjustments 
under this subsection; 
(B) adjustments in the premiums or dis-
counts associated with upland cotton with a sta-
ple length of 33 or above due to micronaire 
with the goal of eliminating any unnecessary ar-
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tificial splits in the calculations of the pre-
miums or discounts; and 
(C) such other adjustments as the Sec-
retary determines appropriate, after consulta-
tions conducted in accordance with paragraph 
(3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton in-
dustry. 
(B) INAPPLICABILITY OF FEDERAL ADVI-
SORY COMMITTEE ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton qual-
ity adjustments implemented pursuant to this sub-
section and may make further adjustments to the 
administration of the loan program for upland cot-
ton, by revoking or revising any adjustment taken 
under paragraph (2). 
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(e) RICE.—The Secretary shall not make adjust-
ments in the loan rates for long grain rice and medium 
grain rice, except for differences in grade and quality (in-
cluding milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION
OF CURRENT PROGRAM
AND 
LOAN RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘each of the 
2012 through 2018 crop years’’. 
(2) SUGAR BEETS.—Section 156(b)(2) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(b)(2)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(3) EFFECTIVE PERIOD.—Section 156(i) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(i)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(b) FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
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1359bb(a)(1)) is amended by striking ‘‘2012’’ and 
inserting ‘‘2018’’. 
(2) EFFECTIVE
PERIOD.—Section 359l(a) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ll(a)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2018’’. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN PROTECTION 
AND DAIRY MARKET STABILIZATION PROGRAMS 
SEC. 1401. DEFINITIONS. 
In this part: 
(1) ACTUAL DAIRY PRODUCER MARGIN.—The 
term ‘‘actual dairy producer margin’’ means the dif-
ference between the all-milk price and the average 
feed cost, as calculated under section 1402. 
(2) ALL-MILK
PRICE.—The term ‘‘all-milk 
price’’ means the average price received, per hun-
dredweight of milk, by dairy producers for all milk 
sold to plants and dealers in the United States, as 
determined by the Secretary. 
(3) ANNUAL PRODUCTION HISTORY.—The term 
‘‘annual production history’’ means the production 
history determined for a participating dairy producer 
under section 1413(b) whenever the dairy producer 
purchases supplemental margin protection. 
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(4) AVERAGE FEED COST.—The term ‘‘average 
feed cost’’ means the average cost of feed used by 
a dairy operation to produce a hundredweight of 
milk, determined under section 1402 using the sum 
of the following: 
(A) The product determined by multiplying 
1.0728 by the price of corn per bushel. 
(B) The product determined by multiplying 
0.00735 by the price of soybean meal per ton. 
(C) The product determined by multiplying 
0.0137 by the price of alfalfa hay per ton. 
(5) BASIC
PRODUCTION
HISTORY.—The term 
‘‘basic production history’’ means the production 
history determined for a participating dairy producer 
under section 1413(a) for provision of basic margin 
protection. 
(6) CONSECUTIVE
TWO-MONTH
PERIOD.—The 
term ‘‘consecutive two-month period’’ refers to the 
two-month period consisting of the months of Janu-
ary and February, March and April, May and June, 
July and August, September and October, or No-
vember and December, respectively. 
(7) DAIRY PRODUCER.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘‘dairy producer’’ means an 
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individual or entity that directly or indirectly 
(as determined by the Secretary)— 
(i) shares in the risk of producing 
milk; and 
(ii) makes contributions (including 
land, labor, management, equipment, or 
capital) to the dairy operation of the indi-
vidual or entity that are at least commen-
surate with the share of the individual or 
entity of the proceeds of the operation. 
(B) 
ADDITIONAL
OWNERSHIP
STRUC-
TURES.—The Secretary shall determine addi-
tional ownership structures to be covered by the 
definition of dairy producer. 
(8) HANDLER.— 
(A) IN
GENERAL.—The term ‘‘handler’’ 
means the initial individual or entity making 
payment to a dairy producer for milk produced 
in the United States and marketed for commer-
cial use. 
(B) PRODUCER-HANDLER.—The term in-
cludes a ‘‘producer-handler’’ when the producer 
satisfies the definition in subparagraph (A). 
(9) MARGIN PROTECTION PROGRAM.—The term 
‘‘margin protection program’’ means the dairy pro-
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ducer margin protection program required by sub-
part A. 
(10) PARTICIPATING
DAIRY
PRODUCER.—The 
term ‘‘participating dairy producer’’ means a dairy 
producer that— 
(A) signs up under section 1412 to partici-
pate in the margin protection program under 
subpart A; and 
(B) as a result, also participates in the sta-
bilization program under subpart B. 
(11) 
STABILIZATION
PROGRAM.—The 
term 
‘‘stabilization program’’ means the dairy market sta-
bilization program required by subpart B for all par-
ticipating dairy producers. 
(12) STABILIZATION
PROGRAM
BASE.—The 
term ‘‘stabilization program base’’, with respect to a 
participating dairy producer, means the stabilization 
program base calculated for the producer under sec-
tion 1431(b). 
(13) UNITED
STATES.—The term ‘‘United 
States’’, in a geographical sense, means the 50 
States, the District of Columbia, American Samoa, 
Guam, the Commonwealth of the Northern Mariana 
Islands, the Commonwealth of Puerto Rico, the Vir-
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gin Islands of the United States, and any other ter-
ritory or possession of the United States. 
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC-
TUAL DAIRY PRODUCER MARGINS. 
(a) CALCULATION OF AVERAGE FEED COST.—The 
Secretary shall calculate the national average feed cost for 
each month using the following data: 
(1) The price of corn for a month shall be the 
price received during that month by farmers in the 
United States for corn, as reported in the monthly 
Agricultural Prices report by the Secretary. 
(2) The price of soybean meal for a month shall 
be the central Illinois price for soybean meal, as re-
ported in the Market News-Monthly Soybean Meal 
Price Report by the Secretary. 
(3) The price of alfalfa hay for a month shall 
be the price received during that month by farmers 
in the United States for alfalfa hay, as reported in 
the monthly Agricultural Prices report by the Sec-
retary. 
(b) CALCULATION
OF ACTUAL DAIRY PRODUCER 
MARGINS.— 
(1) MARGIN PROTECTION PROGRAM.—For use 
in the margin protection program under subpart A, 
the Secretary shall calculate the actual dairy pro-
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ducer margin for each consecutive two-month period 
by subtracting— 
(A) the average feed cost for that consecu-
tive two-month period, determined in accord-
ance with subsection (a); from 
(B) the all-milk price for that consecutive 
two-month period. 
(2) STABILIZATION PROGRAM.—For use in the 
stabilization program under subpart B, the Sec-
retary shall calculate each month the actual dairy 
producer margin for the preceding month by sub-
tracting— 
(A) the average feed cost for that pre-
ceding month, determined in accordance with 
subsection (a); from 
(B) the all-milk price for that preceding 
month. 
(3) TIME
FOR
CALCULATIONS.—The calcula-
tions required by paragraphs (1) and (2) shall be 
made as soon as practicable each month using the 
full month price of the applicable reference month, 
but in no case shall the calculation be made later 
than the last business day of the month. 
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Subpart A—Dairy Producer Margin Protection 
Program 
SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCER MARGIN 
PROTECTION PROGRAM. 
The Secretary shall establish and administer a dairy 
producer margin protection program for the purpose of 
protecting dairy producer income by paying participating 
dairy producers— 
(1) basic margin protection payments when ac-
tual dairy producer margins are less than the 
threshold levels for such payments; and 
(2) supplemental margin protection payments if 
purchased by a participating dairy producer. 
SEC. 1412. PARTICIPATION OF DAIRY PRODUCERS IN MAR-
GIN PROTECTION PROGRAM. 
(a) ELIGIBILITY.—All dairy producers in the United 
States are eligible to participate in the margin protection 
program, except that a dairy producer must sign up with 
the Secretary before the producer may receive— 
(1) basic margin protection payments under 
section 1414; and 
(2) if the dairy producer purchases supple-
mental margin protection under section 1415, sup-
plemental margin protection payments under such 
section. 
(b) SIGN-UP PROCESS.— 
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(1) IN GENERAL.—The Secretary shall allow all 
interested dairy producers to sign up to participate 
in the margin protection program. The Secretary 
shall specify the manner and form by which a dairy 
producer must sign up to participate in the margin 
protection program. 
(2) TREATMENT
OF
MULTI-PRODUCER
OPER-
ATIONS.—If a dairy operation consists of more than 
one dairy producer, all of the dairy producers of the 
operation shall be treated as a single dairy producer 
for purposes of— 
(A) registration to receive basic margin 
protection and purchase supplemental margin 
protection; 
(B) payment of the administrative fee 
under subsection (e) and producer premiums 
under section 1415; and 
(C) participation in the stabilization pro-
gram under subpart B. 
(3) TREATMENT
OF
PRODUCERS
WITH
MUL-
TIPLE DAIRY OPERATIONS.—If a dairy producer op-
erates two or more dairy operations, each dairy op-
eration of the producer shall require a separate reg-
istration to receive basic margin protection and pur-
chase supplemental margin protection. Only those 
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dairy operations so registered shall be subject to the 
stabilization program. 
(c) TIME FOR SIGN UP.— 
(1) EXISTING DAIRY PRODUCERS.—During the 
one-year period beginning on the date of the initi-
ation of the sign-up period for the margin protection 
program, a dairy producer that is actively engaged 
in a dairy operation as of such date may sign up 
with the Secretary— 
(A) to receive basic margin protection; and 
(B) if the producer elects, to purchase sup-
plemental margin protection. 
(2) NEW ENTRANTS.—A dairy producer that 
has no existing interest in a dairy operation as of 
the date of the initiation of the sign-up period for 
the margin protection program, but that, after such 
date, establishes a new dairy operation, may sign up 
with the Secretary during the one year period begin-
ning on the date on which the dairy operation first 
markets milk commercially— 
(A) to receive basic margin protection; and 
(B) if the producer elects, to purchase sup-
plemental margin protection. 
(d) RETROACTIVITY PROVISION.— 
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(1) NOTICE OF AVAILABILITY OF RETROACTIVE 
PROTECTION.—Not later than 30 days after the ef-
fective date of this subtitle, the Secretary shall pub-
lish a notice in the Federal Register to inform dairy 
producers of the availability of retroactive basic mar-
gin protection and retroactive supplemental margin 
protection, subject to the condition that interested 
producers must file a notice of intent (in such form 
and manner as the Secretary specifies in the Federal 
Register notice)— 
(A) to participate in the margin protection 
program and receive basic margin protection; 
and 
(B) at the election of the producer under 
paragraph (3), to also obtain supplemental 
margin protection. 
(2) RETROACTIVE
BASIC
MARGIN
PROTEC-
TION.— 
(A) AVAILABILITY.—If a dairy producer 
files a notice of intent under paragraph (1) to 
participate in the margin protection program 
before the initiation of the sign-up period for 
the margin protection program and subse-
quently signs up for the margin protection pro-
gram, the producer shall receive basic margin 
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protection retroactive to the effective date of 
this subtitle. 
(B) DURATION.—Retroactive basic margin 
protection under this paragraph for a dairy pro-
ducer shall apply from the effective date of this 
subtitle until the date on which the producer 
signs up for the margin protection program. 
(3) RETROACTIVE
SUPPLEMENTAL
MARGIN 
PROTECTION.— 
(A) AVAILABILITY.—Subject to subpara-
graphs (B) and (C), if a dairy producer files a 
notice of intent under paragraph (1) to partici-
pate in the margin protection program and ob-
tain supplemental margin protection and subse-
quently signs up for the margin protection pro-
gram, the producer shall receive supplemental 
margin protection, in addition to the basic mar-
gin protection under paragraph (2), retroactive 
to the effective date of this subtitle. 
(B) DEADLINE FOR SUBMISSION.—A no-
tice of intent to obtain retroactive supplemental 
margin protection must be filed with the Sec-
retary no later than the earlier of the following: 
(i) 150 days after the date on which 
the Secretary publishes the notice in the 
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Federal Register required by paragraph 
(1). 
(ii) The date on which the Secretary 
initiates the sign up period for the margin 
protection program. 
(C) ELECTION OF COVERAGE LEVEL AND 
PERCENTAGE OF COVERAGE.—To be sufficient 
to obtain retroactive supplemental margin pro-
tection, the notice of intent to participate filed 
by a dairy producer must specify— 
(i) a selected coverage level that is 
higher, in any increment of $0.50, than the 
payment threshold for basic margin protec-
tion specified in section 1414(b), but not 
to exceed $6.00; and 
(ii) the percentage of coverage, subject 
to limits imposed in section 1415(c). 
(D) DURATION.—The coverage level and 
percentage specified in the notice of intent to 
participate filed by a dairy producer shall apply 
from the effective date of this subtitle until the 
later of the following: 
(i) October 1, 2013. 
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(ii) The date on which the Secretary 
initiates the sign-up period for the margin 
protection program. 
(4) NOTICE OF INTENT AND OBLIGATION TO 
PARTICIPATE IN MARGIN PROTECTION PROGRAM.— 
In no way does filing a notice of intent under this 
subsection obligate a dairy producer to sign up for 
the margin protection program once the program 
rules are final, but if a producer does file a notice 
of intent and subsequently signs up for the margin 
protection program, that dairy producer is obligated 
to pay fees and premiums for any retroactive basic 
margin protection or retroactive supplemental mar-
gin protection selected in the notice of intent. 
(e) ADMINISTRATIVE FEE.— 
(1) ADMINISTRATIVE FEE REQUIRED.—A dairy 
producer shall pay an administrative fee under this 
subsection to sign up to participate in the margin 
protection program. The participating dairy pro-
ducer shall pay the administrative fee annually 
thereafter to continue to participate in the margin 
protection program. 
(2) FEE AMOUNT.—The administrative fee for 
a participating dairy producer for a calendar year is 
based on the pounds of milk (in millions) marketed 
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by the dairy producer in the previous calendar year, 
as follows: 
Pounds Marketed (in millions) 
Admin. Fee 
less than 1 
$100 
1 to 10 
$250 
more than 10 to 40 
$500 
more than 40 
$1000 
(3) DEPOSIT OF FEES.—All administrative fees 
collected under this subsection shall be credited to 
the fund or account used to cover the costs incurred 
to administer the margin protection program and 
the stabilization program and shall be available to 
the Secretary, without further appropriation and 
until expended, for use or transfer as provided in 
paragraph (4). 
(4) USE OF FEES.—The Secretary shall use ad-
ministrative fees collected under this subsection— 
(A) to cover administrative costs of the 
margin protection program and stabilization 
program; and 
(B) to the extent funds remain available 
after operation of subparagraphs (A), to cover 
costs of the Department of Agriculture relating 
to reporting of dairy market news and to carry 
out section 273 of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1637b). 
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(f) RECONSTITUTION.—The Secretary shall prohibit 
a dairy producer from reconstituting a dairy operation for 
the sole purpose of the dairy producer— 
(1) receiving basic margin protection; 
(2) purchasing supplemental margin protection; 
or 
(3) avoiding participation in the stabilization 
program. 
(g) PRIORITY CONSIDERATION.—A dairy operation 
that participates in the margin protection program shall 
be eligible to participate in the livestock gross margin for 
dairy program under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.) only after operations that are not 
participating in the production margin protection program 
are enrolled. 
SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING 
DAIRY PRODUCERS. 
(a) PRODUCTION HISTORY FOR BASIC MARGIN PRO-
TECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing basic margin protection, the Secretary 
shall determine the basic production history of the 
dairy operation of each participating dairy producer 
in the margin protection program. 
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(2) CALCULATION.—Except as provided in 
paragraph (3), the basic production history of a par-
ticipating dairy producer for basic margin protection 
is equal to the highest annual milk marketings of 
the dairy producer during any one of the three cal-
endar years immediately preceding the calendar year 
in which the dairy producer first signed up to par-
ticipate in the margin protection program. 
(3) ELECTION BY NEW PRODUCERS.—If a par-
ticipating dairy producer has been in operation for 
less than a year, the dairy producer shall elect one 
of the following methods for the Secretary to deter-
mine the basic production history of the dairy pro-
ducer: 
(A) The volume of the actual milk mar-
ketings for the months the dairy producer has 
been in operation extrapolated to a yearly 
amount. 
(B) An estimate of the actual milk mar-
ketings of the dairy producer based on the herd 
size of the producer relative to the national roll-
ing herd average data published by the Sec-
retary. 
(4) NO CHANGE IN PRODUCTION HISTORY FOR 
BASIC MARGIN PROTECTION.—Once the basic pro-
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duction history of a participating dairy producer is 
determined under paragraph (2) or (3), the basic 
production history shall not be subsequently changed 
for purposes of determining the amount of any basic 
margin protection payments for the dairy producer 
made under section 1414. 
(b) ANNUAL PRODUCTION HISTORY FOR SUPPLE-
MENTAL MARGIN PROTECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing supplemental margin protection for a 
participating dairy producer that purchases supple-
mental margin protection for a year under section 
1415, the Secretary shall determine the annual pro-
duction history of the dairy operation of the dairy 
producer under paragraph (2). 
(2) CALCULATION.—The annual production his-
tory of a participating dairy producer for a year is 
equal to the actual milk marketings of the dairy pro-
ducer during the preceding calendar year. 
(3) NEW PRODUCERS.—Subsection (a)(3) shall 
apply with respect to determining the annual pro-
duction history of a participating dairy producer 
that has been in operation for less than a year. 
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(c) REQUIRED INFORMATION.—A participating dairy 
producer shall provide all information that the Secretary 
may require in order to establish— 
(1) the basic production history of the dairy op-
eration of the dairy producer under subsection (a); 
and 
(2) the production history of the dairy oper-
ation of the dairy producer whenever the producer 
purchases supplemental margin protection under 
section 1415. 
(d) TRANSFER OF PRODUCTION HISTORIES.— 
(1) TRANSFER BY SALE OR LEASE.—In promul-
gating the rules to initiate the margin protection 
program, the Secretary shall specify the conditions 
under which and the manner by which the produc-
tion history of a dairy operation may be transferred 
by sale or lease. 
(2) COVERAGE LEVEL.— 
(A) BASIC MARGIN PROTECTION.—A pur-
chaser or lessee to whom the Secretary trans-
fers a basic production history under this sub-
section shall not obtain a different level of basic 
margin protection than the basic margin protec-
tion coverage held by the seller or lessor from 
whom the transfer was obtained. 
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(B) SUPPLEMENTAL
MARGIN
PROTEC-
TION.—A purchaser or lessee to whom the Sec-
retary transfers an annual production history 
under this subsection shall not obtain a dif-
ferent level of supplemental margin protection 
coverage than the supplemental margin protec-
tion coverage in effect for the seller or lessor 
from whom the transfer was obtained for the 
calendar year in which the transfer was made. 
(e) MOVEMENT
AND TRANSFER
OF PRODUCTION 
HISTORY.— 
(1) MOVEMENT
AND
TRANSFER
AUTHOR-
IZED.—Subject to paragraph (2), if a dairy producer 
moves from one location to another location, the 
dairy producer may maintain the basic production 
history and annual production history associated 
with the operation. 
(2) NOTIFICATION
REQUIREMENT.—A dairy 
producer shall notify the Secretary of any move of 
a dairy operation under paragraph (1). 
(3) SUBSEQUENT OCCUPATION OF VACATED LO-
CATION.—A party subsequently occupying a dairy 
operation location vacated as described in paragraph 
(1) shall have no interest in the basic production 
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history or annual production history previously asso-
ciated with the operation at such location. 
SEC. 1414. BASIC MARGIN PROTECTION. 
(a) ELIGIBILITY.—All participating dairy producers 
are eligible to receive basic margin protection under the 
margin protection program. 
(b) PAYMENT THRESHOLD.—Participating dairy pro-
ducers shall receive a basic margin protection payment 
whenever the average actual dairy producer margin for a 
consecutive two-month period is less than $4.00 per hun-
dredweight of milk. 
(c) BASIC MARGIN PROTECTION PAYMENT.— 
(1) PAYMENT REQUIRED.—The Secretary shall 
make a basic margin protection payment to each 
participating dairy producer whenever such a pay-
ment is required by subsection (b). 
(2) AMOUNT OF PAYMENT.—The basic margin 
protection payment for the dairy operation of a par-
ticipating dairy producer for a consecutive two- 
month period shall be determined as follows: 
(A) The Secretary shall calculate the dif-
ference between the average actual dairy pro-
ducer margin for the consecutive two-month pe-
riod and $4.00, except that, if the difference is 
more than $4.00, the Secretary shall use $4.00. 
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(B) The Secretary shall multiply the 
amount under subparagraph (A) by the lesser 
of the following: 
(i) 80 percent of the production his-
tory of the dairy producer, divided by six. 
(ii) The actual amount of milk mar-
keted by the dairy operation of the dairy 
producer during the consecutive two-month 
period. 
SEC. 1415. SUPPLEMENTAL MARGIN PROTECTION. 
(a) ELECTION OF SUPPLEMENTAL MARGIN PROTEC-
TION.—Supplemental margin protection is available only 
on an annual basis. A participating dairy producer may 
annually purchase supplemental margin protection to pro-
tect, during the calendar year for which purchased, a high-
er level of the income of a participating dairy producer 
than the income level guaranteed by basic margin protec-
tion under section 1414. 
(b) SELECTION OF PAYMENT THRESHOLD.—A par-
ticipating dairy producer purchasing supplemental margin 
protection for a year shall elect a coverage level that is 
higher, in any increment of $0.50, than the payment 
threshold for basic margin protection specified in section 
1414(b), but not to exceed $8.00. 
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(c) SELECTION OF COVERAGE PERCENTAGE.—A par-
ticipating dairy producer purchasing supplemental margin 
protection for a year shall elect a percentage of coverage 
equal to not more than 90 percent, nor less than 25 per-
cent, of the annual production history of the dairy oper-
ation of the participating dairy producer. 
(d) PRODUCER
PREMIUMS
FOR
SUPPLEMENTAL 
MARGIN PROTECTION.— 
(1) PREMIUMS
REQUIRED.—A participating 
dairy producer that purchases supplemental margin 
protection shall pay an annual premium equal to the 
product obtained by multiplying— 
(A) the percentage selected by the dairy 
producer under subsection (c); 
(B) the annual production history of the 
dairy producer; and 
(C) the premium per hundredweight of 
milk, as specified in the applicable table under 
paragraph (2) or (3). 
(2) PREMIUM PER HUNDREDWEIGHT FOR FIRST 
4 MILLION POUNDS OF PRODUCTION.—For the first 
4,000,000 pounds of milk marketings included in 
the annual production history of a participating 
dairy producer, the premium per hundredweight cor-
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responding to each coverage level specified in the fol-
lowing table is as follows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.01 
$5.00 
$0.025 
$5.50 
$0.04 
$6.00 
$0.065 
$6.50 
$0.09 
$7.00 
$0.434 
$7.50 
$0.590 
$8.00 
$0.922 
(3) PREMIUM PER HUNDREDWEIGHT FOR PRO-
DUCTION IN EXCESS OF 4 MILLION POUNDS.—For 
milk marketings in excess of 4,000,000 pounds in-
cluded in the annual production history of a partici-
pating dairy producer, the premium per hundred-
weight corresponding to each coverage level is as fol-
lows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.015 
$5.00 
$0.036 
$5.50 
$0.081 
$6.00 
$0.155 
$6.50 
$0.230 
$7.00 
$0.434 
$7.50 
$0.590 
$8.00 
$0.922 
(4) TIME FOR PAYMENT.—In promulgating the 
rules to initiate the margin protection program, the 
Secretary shall provide more than one method by 
which a participating dairy producer that purchases 
supplemental margin protection for a calendar year 
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may pay the premium under this subsection for that 
year that maximizes producer payment flexibility 
and program integrity. 
(e) PRODUCER’S PREMIUM OBLIGATIONS.— 
(1) PRO-RATION OF PREMIUM FOR NEW PRO-
DUCERS.—A dairy producer described in section 
1412(c)(2) that purchases supplemental margin pro-
tection for a calendar year after the start of the cal-
endar year shall pay a pro-rated premium for that 
calendar year based on the portion of the calendar 
year for which the producer purchases the coverage. 
(2) LEGAL OBLIGATION.—A participating dairy 
producer that purchases supplemental margin pro-
tection for a calendar year shall be legally obligated 
to pay the applicable premium for that calendar 
year, except that, if the dairy producer retires, the 
producer may request that Secretary cancel the sup-
plemental margin protection if the producer has ter-
minated the dairy operation entirely and certifies 
under oath that the producer will not be actively en-
gaged in any dairy operation for at least the next 
seven years. 
(f) SUPPLEMENTAL PAYMENT THRESHOLD.—A par-
ticipating dairy producer with supplemental margin pro-
tection shall receive a supplemental margin protection 
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payment whenever the average actual dairy producer mar-
gin for a consecutive two-month period is less than the 
coverage level threshold selected by the dairy producer 
under subsection (b). 
(g) SUPPLEMENTAL
MARGIN
PROTECTION
PAY-
MENTS.— 
(1) IN
GENERAL.—The supplemental margin 
protection payment for a participating dairy pro-
ducer is in addition to the basic margin protection 
payment. 
(2) AMOUNT OF PAYMENT.—The supplemental 
margin protection payment for the dairy operation 
of a participating dairy producer shall be determined 
as follows: 
(A) The Secretary shall calculate the dif-
ference between the coverage level threshold se-
lected by the dairy producer under subsection 
(b) and the greater of— 
(i) the average actual dairy producer 
margin for the consecutive two-month pe-
riod; or 
(ii) $4.00. 
(B) The amount determined under sub-
paragraph (A) shall be multiplied by the per-
centage selected by the participating dairy pro-
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ducer under subsection (c) and by the lesser of 
the following: 
(i) The annual production history of 
the dairy operation of the dairy producer, 
divided by six. 
(ii) The actual amount of milk mar-
keted by the dairy operation of the dairy 
producer during the consecutive two-month 
period. 
SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATIVE 
FEES OR PREMIUMS. 
(a) LOSS OF BENEFITS.—A participating dairy pro-
ducer that fails to pay the required administrative fee 
under section 1412 or is in arrears on premium payments 
for supplemental margin protection under section 1415— 
(1) remains legally obligated to pay the admin-
istrative fee or premiums, as the case may be; and 
(2) may not receive basic margin protection 
payments or supplemental margin protection pay-
ments until the fees or premiums are fully paid. 
(b) ENFORCEMENT.—The Secretary may take such 
action as necessary to collect administrative fees and pre-
mium payments for supplemental margin protection. 
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104 
Subpart B—Dairy Market Stabilization Program 
SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZA-
TION PROGRAM. 
(a) PROGRAM REQUIRED; PURPOSE.—The Secretary 
shall establish and administer a dairy market stabilization 
program applicable to participating dairy producers for 
the purpose of assisting in balancing the supply of milk 
with demand when dairy producers are experiencing low 
or negative operating margins. 
(b) ELECTION OF STABILIZATION PROGRAM BASE 
CALCULATION METHOD.— 
(1) ELECTION.—When a dairy producer signs 
up under section 1412 to participate in the margin 
protection program, the dairy producer shall inform 
the Secretary of the method by which the stabiliza-
tion program base for the dairy producer for fiscal 
year 2013 will be calculated under paragraph (3). 
(2) CHANGE
IN
CALCULATION
METHOD.—A 
participating dairy producer may change the sta-
bilization program base calculation method to be 
used for a calendar year by notifying the Secretary 
of the change not later than a date determined by 
the Secretary. 
(3) CALCULATION METHODS.—A participating 
dairy producer may elect either of the following 
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methods for calculation of the stabilization program 
base for the producer: 
(A) The volume of the average monthly 
milk marketings of the dairy producer for the 
three months immediately preceding the an-
nouncement by the Secretary that the stabiliza-
tion program will become effective. 
(B) The volume of the monthly milk mar-
ketings of the dairy producer for the same 
month in the preceding year as the month for 
which the Secretary has announced the sta-
bilization program will become effective. 
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND RE-
DUCTION IN DAIRY PRODUCER PAYMENTS. 
(a) WHEN STABILIZATION PROGRAM REQUIRED.— 
Except as provided in subsection (b), the Secretary shall 
announce that the stabilization program is in effect and 
order reduced payments for any participating dairy pro-
ducer that exceeds the applicable percentage of the pro-
ducer’s stabilization program base whenever— 
(1) the actual dairy producer margin has been 
$6.00 or less per hundredweight of milk for each of 
the immediately preceding two months; or 
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(2) the actual dairy producer margin has been 
$4.00 or less per hundredweight of milk for the im-
mediately preceding month. 
(b) EXCEPTION.—The Secretary shall not make the 
announcement under subsection (a) to implement the sta-
bilization program or order reduced payments if any of 
the conditions described in section 1436(b) have been met 
during the two months immediately preceding the month 
in which the announcement under subsection (a) would 
otherwise be made by the Secretary in the absence of this 
exception. 
(c) EFFECTIVE DATE
FOR IMPLEMENTATION
OF 
PAYMENT REDUCTIONS.—Reductions in dairy producer 
payments shall commence beginning on the first day of 
the month immediately following the date of the announce-
ment by the Secretary under subsection (a). 
SEC. 1433. PRODUCER MILK MARKETING INFORMATION. 
(a) COLLECTION OF MILK MARKETING DATA.—The 
Secretary shall establish, by regulation, a process to collect 
from participating dairy producers and handlers such in-
formation that the Secretary considers necessary for each 
month during which the stabilization program is in effect. 
(b) REDUCE REGULATORY BURDEN.—When imple-
menting the process under subsection (a), the Secretary 
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shall minimize the regulatory burden on dairy producers 
and handlers. 
SEC. 1434. CALCULATION AND COLLECTION OF REDUCED 
DAIRY PRODUCER PAYMENTS. 
(a) REDUCED PRODUCER PAYMENTS REQUIRED.— 
During any month in which payment reductions are in ef-
fect under the stabilization program, each handler shall 
reduce payments to each participating dairy producer 
from whom the handler receives milk. 
(b) REDUCTIONS BASED ON ACTUAL DAIRY PRO-
DUCER MARGIN.— 
(1) REDUCTION REQUIREMENT 1.—Unless the 
reduction required by paragraph (2) or (3) applies, 
when the actual dairy producer margin has been 
$6.00 or less per hundredweight of milk for two con-
secutive months, the handler shall make payments to 
a participating dairy producer for a month based on 
the greater of the following: 
(A) 98 percent of the stabilization program 
base of the dairy producer. 
(B) 94 percent of the marketings of milk 
for the month by the producer. 
(2) REDUCTION REQUIREMENT 2.—Unless the 
reduction required by paragraph (3) applies, when 
the actual dairy producer margin has been $5.00 or 
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less per hundredweight of milk for two consecutive 
months, the handler shall make payments to a par-
ticipating dairy producer for a month based on the 
greater of the following: 
(A) 97 percent of the stabilization program 
base of the dairy producer. 
(B) 93 percent of the marketings of milk 
for the month by the producer. 
(3) REDUCTION
REQUIREMENT
3.—When the 
actual dairy producer margin has been $4.00 or less 
for any one month, the handler shall make payments 
to a participating dairy producer for a month based 
on the greater of the following: 
(A) 96 percent of the stabilization program 
base of the dairy producer. 
(B) 92 percent of the marketings of milk 
for the month by the producer. 
(c) CONTINUATION OF REDUCTIONS.—The largest 
level of payment reduction required under paragraph (1), 
(2), or (3) of subsection (b) shall be continued for each 
month until the Secretary suspends the stabilization pro-
gram and terminates payment reductions in accordance 
with section 1436. 
(d) PAYMENT REDUCTION EXCEPTION.—Notwith-
standing any preceding subsection of this section, a han-
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109 
dler shall make no payment reductions for a dairy pro-
ducer for a month if the producer’s milk marketings for 
the month are equal to or less than the percentage of the 
stabilization program base applicable to the producer 
under paragraph (1), (2), or (3) of subsection (b). 
SEC. 1435. REMITTING MONIES TO THE SECRETARY AND 
USE OF MONIES. 
(a) REMITTING MONIES.—As soon as practicable 
after the end of each month during which payment reduc-
tions are in effect under the stabilization program, each 
handler shall remit to the Secretary an amount equal to 
the amount by which payments to participating dairy pro-
ducers are reduced by the handler under section 1434. 
(b) DEPOSIT OF MONIES.—All monies received under 
subsection (a) shall be available to the Secretary, without 
further appropriation and until expended, for use or trans-
fer as provided in subsection (c). 
(c) USE OF MONIES.— 
(1) AVAILABILITY
FOR
CERTAIN
COMMODITY 
DONATIONS.—Within three months of the receipt of 
monies under subsection (a), the Secretary shall ob-
ligate the monies for the purpose of— 
(A) purchasing dairy products for donation 
to food banks and other programs that the Sec-
retary determines appropriate; and 
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110 
(B) expanding consumption and building 
demand for dairy products. 
(2) NO DUPLICATION OF EFFORT.—The Sec-
retary shall ensure that expenditures under para-
graph (1) are compatible with, and do not duplicate, 
programs supported by the dairy research and pro-
motion activities conducted under the Dairy Produc-
tion Stabilization Act of 1983 (7 U.S.C. 4501 et 
seq.). 
(3) ACCOUNTING.—The Secretary shall keep an 
accurate account of all monies obligated under para-
graph (1). 
(d) ANNUAL REPORT.—Not later than December 31 
of each year that the stabilization program is in effect, 
the Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Sen-
ate a report that provides an accurate accounting of— 
(1) the monies received by the Secretary during 
the preceding fiscal year under subsection (a); and 
(2) all expenditures made by the Secretary 
under subsection (b) during the preceding fiscal 
year. 
(e) ENFORCEMENT.—If a participating dairy pro-
ducer or handler fails to remit or collect the amounts by 
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111 
which payments to participating dairy producers are re-
duced under section 1434, the producer or handler respon-
sible for the failure shall be liable to the Secretary for the 
amount that should have been remitted or collected, plus 
interest. In addition to the enforcement authorities avail-
able under section 1437, the Secretary may enforce this 
subsection in the courts of the United States. 
SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE-
MENT. 
(a) DETERMINATION OF PRICES.—For purposes of 
this section: 
(1) The price in the United States for cheddar 
cheese and nonfat dry milk shall be determined by 
the Secretary. 
(2) The world price of cheddar cheese and skim 
milk powder shall be determined by the Secretary. 
(b) INITIAL SUSPENSION THRESHOLDS.—The Sec-
retary shall announce that the stabilization program shall 
be suspended whenever the Secretary determines that— 
(1) the actual dairy producer margin is greater 
than $6.00 per hundredweight of milk for two con-
secutive months; 
(2) the dairy producer margin is equal to or 
less than $6.00 (but greater than $5.00) for two 
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consecutive months, and during the same two con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is equal to or greater than the 
world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is equal to or greater than the 
world price of skim milk powder; 
(3) the dairy producer margin is equal to or 
less than $5.00 (but greater than $4.00) for two 
consecutive months, and during the same two con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is more than 5 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non-
fat dry milk is more than 5 percent above the 
world price of skim milk powder; or 
(4) the dairy producer margin is equal to or 
less than $4.00 for two consecutive months, and 
during the same two consecutive months— 
(A) the price in the United States for 
cheddar cheese is more than 7 percent above 
the world price of cheddar cheese; or 
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(B) the price in the United States for non-
fat dry milk is more than 7 percent above the 
world price of skim milk powder. 
(c) ENHANCED SUSPENSION THRESHOLDS.—If the 
stabilization program is not suspended pursuant to sub-
section (b) for six consecutive months or more, the sta-
bilization program shall be suspended whenever the Sec-
retary determines that— 
(1) the actual dairy producer margin is greater 
than $6.00 per hundredweight of milk for two con-
secutive months; 
(2) the dairy producer margin is equal to or 
less than $6.00 (but greater than $5.00) for two 
consecutive months, and during the same two con-
secutive months— 
(A) the price in the United States for 
cheddar cheese is not less than 97 percent of 
the world price of cheddar cheese; or 
(B) the price in the United States for non- 
fat dry milk is not less than 97 percent of the 
world price of skim milk powder; 
(3) the dairy producer margin is equal to or 
less than $5.00 (but greater than $4.00) for two 
consecutive months, and during the same two con-
secutive months— 
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(A) the price in the United States for 
cheddar cheese is more than 3 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non 
fat dry milk is more than 3 percent above the 
world price of skim milk powder; or 
(4) the dairy producer margin is equal to or 
less than $4.00 for two consecutive months, and 
during the same two consecutive months— 
(A) the price in the United States for 
cheddar cheese is more than 6 percent above 
the world price of cheddar cheese; or 
(B) the price in the United States for non 
fat dry milk is more than 6 percent above the 
world price of skim milk powder. 
(d) IMPLEMENTATION BY HANDLERS.—Effective on 
the day after the date of the announcement by the Sec-
retary under subsection (b) or (c) of the suspension of the 
stabilization program, the handler shall cease reducing 
payments to participating dairy producers under the sta-
bilization program. 
(e) CONDITION ON RESUMPTION OF STABILIZATION 
PROGRAM.—Upon the announcement by the Secretary 
under subsection (b) or (c) that the stabilization program 
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has been suspended, the stabilization program may not be 
implemented again until, at the earliest— 
(1) two months have passed, beginning on the 
first day of the month immediately following the an-
nouncement by the Secretary; and 
(2) the conditions of section 1432(a) are again 
met. 
SEC. 1437. ENFORCEMENT. 
(a) UNLAWFUL ACT.—It shall be unlawful and a vio-
lation of the this subpart for any person subject to the 
stabilization program to willfully fail or refuse to provide, 
or delay the timely reporting of, accurate information and 
remittance of funds to the Secretary in accordance with 
this subpart. 
(b) ORDER.—After providing notice and opportunity 
for a hearing to an affected person, the Secretary may 
issue an order against any person to cease and desist from 
continuing any violation of this subpart. 
(c) APPEAL.—An order of the Secretary under sub-
section (b) shall be final and conclusive unless an affected 
person files an appeal of the order of the Secretary in 
United States district court not later than 30 days after 
the date of the issuance of the order. A finding of the 
Secretary in the order shall be set aside only if the finding 
is not supported by substantial evidence. 
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(d) NONCOMPLIANCE WITH ORDER.—If a person 
subject to this subpart fails to obey an order issued under 
subsection (b) after the order has become final and 
unappealable, or after the appropriate United States dis-
trict court has entered a final judgment in favor of the 
Secretary, the United States may apply to the appropriate 
United States district court for enforcement of the order. 
If the court determines that the order was lawfully made 
and duly served and that the person violated the order, 
the court shall enforce the order. 
SEC. 1438. AUDIT REQUIREMENTS. 
(a) AUDITS OF PRODUCER AND HANDLER COMPLI-
ANCE.— 
(1) AUDITS
AUTHORIZED.—If determined by 
the Secretary to be necessary to ensure compliance 
by participating dairy producers and handlers with 
the stabilization program, the Secretary may con-
duct periodic audits of participating dairy producers 
and handlers. 
(2) SAMPLE OF DAIRY PRODUCERS.—Any audit 
conducted under this subsection shall include, at a 
minimum, investigation of a statistically valid and 
random sample of participating dairy producers. 
(b) SUBMISSION OF RESULTS.—The Secretary shall 
submit the results of any audit conducted under sub-
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section (a) to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate and include such rec-
ommendations as the Secretary considers appropriate re-
garding the stabilization program. 
Subpart C—Commodity Credit Corporation 
SEC. 1451. USE OF COMMODITY CREDIT CORPORATION. 
The Secretary shall use the funds, facilities, and the 
authorities of the Commodity Credit Corporation to carry 
out this part. 
Subpart D—Initiation and Duration 
SEC. 1461. RULEMAKING. 
(a) PROCEDURE.—The promulgation of regulations 
for the initiation of the margin protection program and 
the stabilization program, and for administration of such 
programs, shall be made without regard to— 
(1) chapter 35 of title 44, United States Code 
(commonly known as the Paperwork Reduction Act); 
(2) the Statement of Policy of the Secretary of 
Agriculture effective July 24, 1971 (36 Fed. Reg. 
13804), relating to notices of proposed rulemaking 
and public participation in rulemaking; and 
(3) the notice and comment provisions of sec-
tion 553 of title 5, United States Code. 
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(b) CONGRESSIONAL REVIEW
OF AGENCY RULE-
MAKING.—In carrying out subsection (a), the Secretary 
shall use the authority provided under section 808 of title 
5, United States Code. 
(c) INCLUSION
OF ADDITIONAL ORDER.—Section 
143(a)(2) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7253(a)(2)) is amended 
by adding at the end the following new sentence: ‘‘Sub-
section (b)(2) does not apply to the authority of the Sec-
retary under this subsection.’’. 
SEC. 1462. DURATION. 
The margin protection program and the stabilization 
program shall end on December 31, 2018. 
PART II—REPEAL OR REAUTHORIZATION OF 
OTHER DAIRY-RELATED PROVISIONS 
SEC. 1481. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
AND MILK INCOME LOSS CONTRACT PRO-
GRAMS. 
(a) REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
PROGRAM.—Section 1501 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771) is repealed. 
(b) REPEAL OF MILK INCOME LOSS CONTRACT PRO-
GRAM.—Section 1506 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8773) is repealed. 
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119 
SEC. 1482. REPEAL OF DAIRY EXPORT INCENTIVE PRO-
GRAM. 
(a) REPEAL.—Section 153 of the Food Security Act 
of 1985 (15 U.S.C. 713a–14) is repealed. 
(b) CONFORMING AMENDMENTS.—Section 902(2) of 
the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7201(2)) is amended— 
(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and 
(F) as subparagraphs (D) and (E), respectively. 
SEC. 1483. EXTENSION OF DAIRY FORWARD PRICING PRO-
GRAM. 
Section 1502(e) of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8772(e)) is amended— 
(1) in paragraph (1), by striking ‘‘2012’’ and 
inserting ‘‘2018’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and 
inserting ‘‘2021’’. 
SEC. 1484. EXTENSION OF DAIRY INDEMNITY PROGRAM. 
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 
amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1485. EXTENSION OF DAIRY PROMOTION AND RE-
SEARCH PROGRAM. 
Section 113(e)(2) of the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
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SEC. 1486. REPEAL OF FEDERAL MILK MARKETING ORDER 
REVIEW COMMISSION. 
Section 1509 of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1726) is re-
pealed. 
PART III—EFFECTIVE DATE 
SEC. 1491. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on October 1, 2013. 
Subtitle E—Supplemental Agricul-
tural Disaster Assistance Pro-
grams 
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PRODUCER ON A FARM.— 
(A) IN GENERAL.—The term ‘‘eligible pro-
ducer on a farm’’ means an individual or entity 
described in subparagraph (B) that, as deter-
mined by the Secretary, assumes the production 
and market risks associated with the agricul-
tural production of crops or livestock. 
(B) DESCRIPTION.—An individual or enti-
ty referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien; 
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(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability cor-
poration, or other farm organizational 
structure organized under State law. 
(2) FARM-RAISED
FISH.—The term ‘‘farm- 
raised fish’’ means any aquatic species that is propa-
gated and reared in a controlled environment. 
(3) LIVESTOCK.—The term ‘‘livestock’’ in-
cludes— 
(A) cattle (including dairy cattle); 
(B) bison; 
(C) poultry; 
(D) sheep; 
(E) swine; 
(F) horses; and 
(G) other livestock, as determined by the 
Secretary. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(b) LIVESTOCK INDEMNITY PAYMENTS.— 
(1) PAYMENTS.—For each of the fiscal years 
2012 through 2018, the Secretary shall use such 
sums as are necessary of the funds of the Com-
modity Credit Corporation to make livestock indem-
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nity payments to eligible producers on farms that 
have incurred livestock death losses in excess of the 
normal mortality, as determined by the Secretary, 
due to— 
(A) attacks by animals reintroduced into 
the wild by the Federal Government or pro-
tected by Federal law, including wolves and 
avian predators; or 
(B) adverse weather, as determined by the 
Secretary, during the calendar year, including 
losses due to hurricanes, floods, blizzards, dis-
ease, wildfires, extreme heat, and extreme cold. 
(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before 
the date of death of the livestock, as determined by 
the Secretary. 
(3) SPECIAL RULE FOR PAYMENTS MADE DUE 
TO DISEASE.—The Secretary shall ensure that pay-
ments made to an eligible producer under paragraph 
(1) are not made for the same livestock losses for 
which compensation is provided pursuant to section 
10407(d) of the Animal Health Protection Act (7 
U.S.C. 8306(d)). 
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(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) COVERED LIVESTOCK.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘covered livestock’’ 
means livestock of an eligible livestock pro-
ducer that, during the 60 days prior to the 
beginning date of a qualifying drought or 
fire condition, as determined by the Sec-
retary, the eligible livestock producer— 
(I) owned; 
(II) leased; 
(III) purchased; 
(IV) entered into a contract to 
purchase; 
(V) is a contract grower; or 
(VI) sold or otherwise disposed of 
due to qualifying drought conditions 
during— 
(aa) the current production 
year; or 
(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
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124 
ceding the current production 
year. 
(ii) EXCLUSION.—The term ‘‘covered 
livestock’’ does not include livestock that 
were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
normal business operation of the eligible 
livestock producer, as determined by the 
Secretary. 
(B) 
DROUGHT
MONITOR.—The 
term 
‘‘drought 
monitor’’ 
means 
a 
system 
for 
classifying drought severity according to a 
range of abnormally dry to exceptional drought, 
as defined by the Secretary. 
(C) ELIGIBLE LIVESTOCK PRODUCER.— 
(i) IN GENERAL.—The term ‘‘eligible 
livestock producer’’ means an eligible pro-
ducer on a farm that— 
(I) is an owner, cash or share 
lessee, or contract grower of covered 
livestock that provides the pastureland 
or grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
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(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
grazing land that is physically located 
in a county affected by drought; 
(III) certifies grazing loss; and 
(IV) meets all other eligibility re-
quirements established under this sub-
section. 
(ii) EXCLUSION.—The term ‘‘eligible 
livestock producer’’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
(D) NORMAL
CARRYING
CAPACITY.—The 
term ‘‘normal carrying capacity’’, with respect 
to each type of grazing land or pastureland in 
a county, means the normal carrying capacity, 
as determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal 
grazing period, in the absence of a drought or 
fire that diminishes the production of the graz-
ing land or pastureland. 
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126 
(E) NORMAL GRAZING PERIOD.—The term 
‘‘normal grazing period’’, with respect to a 
county, means the normal grazing period during 
the calendar year for the county, as determined 
under paragraph (3)(D)(i). 
(2) PROGRAM.—For each of the fiscal years 
2012 through 2018, the Secretary shall use such 
sums as are necessary of the funds of the Com-
modity Credit Corporation to provide compensation 
for losses to eligible livestock producers due to graz-
ing losses for covered livestock due to— 
(A) a drought condition, as described in 
paragraph (3); or 
(B) fire, as described in paragraph (4). 
(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT 
CONDITIONS.— 
(A) ELIGIBLE LOSSES.— 
(i) IN GENERAL.—An eligible livestock 
producer may receive assistance under this 
subsection only for grazing losses for cov-
ered livestock that occur on land that— 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegeta-
tive cover; or 
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(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
(ii) EXCLUSIONS.—An eligible live-
stock producer may not receive assistance 
under this subsection for grazing losses 
that occur on land used for haying or graz-
ing under the conservation reserve pro-
gram established under subchapter B of 
chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 
3831 et seq.). 
(B) MONTHLY PAYMENT RATE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the payment rate for assist-
ance under this paragraph for 1 month 
shall, in the case of drought, be equal to 
60 percent of the lesser of— 
(I) the monthly feed cost for all 
covered livestock owned or leased by 
the eligible livestock producer, as de-
termined under subparagraph (C); or 
(II) the monthly feed cost cal-
culated by using the normal carrying 
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capacity of the eligible grazing land of 
the eligible livestock producer. 
(ii) PARTIAL COMPENSATION.—In the 
case of an eligible livestock producer that 
sold or otherwise disposed of covered live-
stock due to drought conditions in 1 or 
both of the 2 production years immediately 
preceding the current production year, as 
determined by the Secretary, the payment 
rate shall be 80 percent of the payment 
rate otherwise calculated in accordance 
with clause (i). 
(C) MONTHLY FEED COST.— 
(i) IN GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
(I) 30 days; 
(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
(III) a payment rate that is equal 
to the corn price per pound, as deter-
mined under clause (iii). 
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(ii) FEED GRAIN EQUIVALENT.—For 
purposes of clause (i)(II), the feed grain 
equivalent shall equal— 
(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
(II) in the case of any other type 
of weight of livestock, an amount de-
termined by the Secretary that rep-
resents the average number of pounds 
of corn per day necessary to feed the 
livestock. 
(iii) CORN PRICE PER POUND.—For 
purposes of clause (i)(III), the corn price 
per pound shall equal the quotient ob-
tained by dividing— 
(I) the higher of— 
(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
(bb) the national average 
corn price per bushel for the 24- 
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130 
month period immediately pre-
ceding that March 1; by 
(II) 56. 
(D) 
NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
(i) FSA COUNTY COMMITTEE DETER-
MINATIONS.— 
(I) IN GENERAL.—The Secretary 
shall determine the normal carrying 
capacity and normal grazing period 
for each type of grazing land or 
pastureland in the county served by 
the applicable committee. 
(II) CHANGES.—No change to 
the normal carrying capacity or nor-
mal grazing period established for a 
county under subclause (I) shall be 
made unless the change is requested 
by the appropriate State and county 
Farm Service Agency committees. 
(ii) DROUGHT INTENSITY.— 
(I) D2.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
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the U.S. Drought Monitor as having a 
D2 (severe drought) intensity in any 
area of the county for at least 8 con-
secutive weeks during the normal 
grazing period for the county, as de-
termined by the Secretary, shall be el-
igible to receive assistance under this 
paragraph in an amount equal to 1 
monthly payment using the monthly 
payment rate determined under sub-
paragraph (B). 
(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having 
at least a D3 (extreme drought) in-
tensity in any area of the county at 
any time during the normal grazing 
period for the county, as determined 
by the Secretary, shall be eligible to 
receive assistance under this para-
graph— 
(aa) in an amount equal to 
3 monthly payments using the 
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132 
monthly payment rate deter-
mined under subparagraph (B); 
(bb) if the county is rated as 
having a D3 (extreme drought) 
intensity in any area of the coun-
ty for at least 4 weeks during the 
normal grazing period for the 
county, or is rated as having a 
D4 (exceptional drought) inten-
sity in any area of the county at 
any time during the normal graz-
ing period, in an amount equal to 
4 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B); 
or 
(cc) if the county is rated as 
having 
a 
D4 
(exceptional 
drought) intensity in any area of 
the county for at least 4 weeks 
during the normal grazing pe-
riod, in an amount equal to 5 
monthly 
payments 
using 
the 
monthly rate determined under 
subparagraph (B). 
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133 
(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
(A) IN
GENERAL.—An eligible livestock 
producer may receive assistance under this 
paragraph only if— 
(i) the grazing losses occur on range-
land that is managed by a Federal agency; 
and 
(ii) the eligible livestock producer is 
prohibited by the Federal agency from 
grazing the normal permitted livestock on 
the managed rangeland due to a fire. 
(B) PAYMENT RATE.—The payment rate 
for assistance under this paragraph shall be 
equal to 50 percent of the monthly feed cost for 
the total number of livestock covered by the 
Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
(C) PAYMENT DURATION.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
(I) beginning on the date on 
which the Federal agency excludes the 
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134 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
(II) ending on the last day of the 
Federal lease of the eligible livestock 
producer. 
(ii) LIMITATION.—An eligible livestock 
producer may only receive assistance under 
this paragraph for losses that occur on not 
more than 180 days per year. 
(5) NO DUPLICATIVE PAYMENTS.—An eligible 
livestock producer may elect to receive assistance for 
grazing or pasture feed losses due to drought condi-
tions under paragraph (3) or fire under paragraph 
(4), but not both for the same loss, as determined 
by the Secretary. 
(d) EMERGENCY
ASSISTANCE
FOR
LIVESTOCK, 
HONEY BEES, AND FARM-RAISED FISH.— 
(1) IN GENERAL.—For each of the fiscal years 
2012 through 2018, the Secretary shall use not 
more than $20,000,000 of the funds of the Com-
modity Credit Corporation to provide emergency re-
lief to eligible producers of livestock, honey bees, and 
farm-raised fish to aid in the reduction of losses due 
to disease (including cattle tick fever), adverse 
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135 
weather, or other conditions, such as blizzards and 
wildfires, as determined by the Secretary, that are 
not covered under subsection (b) or (c). 
(2) USE
OF
FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
(3) AVAILABILITY OF FUNDS.—Any funds made 
available under this subsection shall remain available 
until expended. 
(e) TREE ASSISTANCE PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE
ORCHARDIST.—The term 
‘‘eligible orchardist’’ means a person that pro-
duces annual crops from trees for commercial 
purposes. 
(B) NATURAL DISASTER.—The term ‘‘nat-
ural disaster’’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
(C) NURSERY TREE GROWER.—The term 
‘‘nursery tree grower’’ means a person who pro-
duces nursery, ornamental, fruit, nut, or Christ-
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mas trees for commercial sale, as determined by 
the Secretary. 
(D) TREE.—The term ‘‘tree’’ includes a 
tree, bush, and vine. 
(2) ELIGIBILITY.— 
(A) LOSS.—Subject to subparagraph (B), 
for each of the fiscal years 2012 through 2018, 
the Secretary shall use such sums as are nec-
essary of the funds of the Commodity Credit 
Corporation to provide assistance— 
(i) under paragraph (3) to eligible or-
chardists and nursery tree growers that 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
(ii) under paragraph (3)(B) to eligible 
orchardists and nursery tree growers that 
have a production history for commercial 
purposes on planted or existing trees but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary. 
(B) LIMITATION.—An eligible orchardist 
or nursery tree grower shall qualify for assist-
ance under subparagraph (A) only if the tree 
mortality of the eligible orchardist or nursery 
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137 
tree grower, as a result of damaging weather or 
related condition, exceeds 15 percent (adjusted 
for normal mortality). 
(3) ASSISTANCE.—Subject to paragraph (4), 
the assistance provided by the Secretary to eligible 
orchardists and nursery tree growers for losses de-
scribed in paragraph (2) shall consist of— 
(A)(i) reimbursement of 65 percent of the 
cost of replanting trees lost due to a natural 
disaster, as determined by the Secretary, in ex-
cess of 15 percent mortality (adjusted for nor-
mal mortality); or 
(ii) at the option of the Secretary, suffi-
cient seedlings to reestablish a stand; and 
(B) reimbursement of 50 percent of the 
cost of pruning, removal, and other costs in-
curred by an eligible orchardist or nursery tree 
grower to salvage existing trees or, in the case 
of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality 
due to a natural disaster, as determined by the 
Secretary, in excess of 15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality). 
(4) LIMITATIONS ON ASSISTANCE.— 
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138 
(A) DEFINITIONS OF LEGAL ENTITY AND 
PERSON.—In this paragraph, the terms ‘‘legal 
entity’’ and ‘‘person’’ have the meaning given 
those terms in section 1001(a) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308(a)). 
(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $125,000 for any crop year, or an 
equivalent value in tree seedlings. 
(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a 
person or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
(f) PAYMENT LIMITATIONS.— 
(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘‘legal entity’’ 
and ‘‘person’’ have the meaning given those terms in 
section 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a)). 
(2) AMOUNT.—The total amount of disaster as-
sistance payments received, directly or indirectly, by 
a person or legal entity (excluding a joint venture or 
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139 
general partnership) under this section (excluding 
payments received under subsection (e)) may not ex-
ceed $125,000 for any crop year. 
(3) DIRECT
ATTRIBUTION.—Subsections (e) 
and (f) of section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) or any successor provisions 
relating to direct attribution shall apply with respect 
to assistance provided under this section. 
Subtitle F—Administration 
SEC. 1601. ADMINISTRATION GENERALLY. 
(a) USE OF COMMODITY CREDIT CORPORATION.— 
The Secretary of Agriculture shall use the funds, facilities, 
and authorities of the Commodity Credit Corporation to 
carry out this title. 
(b) DETERMINATIONS
BY SECRETARY.—A deter-
mination made by the Secretary under this title shall be 
final and conclusive. 
(c) REGULATIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, not later than 90 days after 
the date of enactment of this Act, the Secretary and 
the Commodity Credit Corporation, as appropriate, 
shall promulgate such regulations as are necessary 
to implement this title and the amendments made by 
this title. 
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(2) PROCEDURE.—The promulgation of the reg-
ulations and administration of this title and the 
amendments made by this title and sections 11003 
and 11016 of this Act shall be made without regard 
to— 
(A) the notice and comment provisions of 
section 553 of title 5, United States Code; 
(B) chapter 35 of title 44, United States 
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’); and 
(C) the Statement of Policy of the Sec-
retary of Agriculture effective July 24, 1971 
(36 Fed. Reg. 13804), relating to notices of 
proposed rulemaking and public participation in 
rulemaking. 
(3) CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING.—In carrying out this subsection, the Sec-
retary shall use the authority provided under section 
808 of title 5, United States Code. 
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE 
AGREEMENTS COMPLIANCE.— 
(1) 
REQUIRED
DETERMINATION; 
ADJUST-
MENT.—If the Secretary determines that expendi-
tures under this title that are subject to the total al-
lowable domestic support levels under the Uruguay 
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141 
Round Agreements (as defined in section 2 of the 
Uruguay Round Agreements Act (19 U.S.C. 3501)) 
will exceed the allowable levels for any applicable re-
porting period, the Secretary shall, to the maximum 
extent practicable, make adjustments in the amount 
of the expenditures during that period to ensure that 
the expenditures do not exceed the allowable levels. 
(2) CONGRESSIONAL
NOTIFICATION.—Before 
making any adjustment under paragraph (1), the 
Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report describing the determination 
made under that paragraph and the extent of the 
adjustment to be made. 
SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT 
AUTHORITY. 
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.— 
The following provisions of the Agricultural Adjustment 
Act of 1938 shall not be applicable to the 2014 through 
2018 crops of covered commodities (as defined in section 
1104), cotton, and sugar and shall not be applicable to 
milk during the period beginning on the date of enactment 
of this Act through December 31, 2018: 
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(1) Parts II through V of subtitle B of title III 
(7 U.S.C. 1326 et seq.). 
(2) In the case of upland cotton, section 377 (7 
U.S.C. 1377). 
(3) Subtitle D of title III (7 U.S.C. 1379a et 
seq.). 
(4) Title IV (7 U.S.C. 1401 et seq.). 
(b) AGRICULTURAL ACT OF 1949.—The following 
provisions of the Agricultural Act of 1949 shall not be ap-
plicable to the 2013 through 2018 crops of covered com-
modities (as defined in section 1104), cotton, and sugar 
and shall not be applicable to milk during the period be-
ginning on the date of enactment of this Act and through 
December 31, 2018: 
(1) Section 101 (7 U.S.C. 1441). 
(2) Section 103(a) (7 U.S.C. 1444(a)). 
(3) Section 105 (7 U.S.C. 1444b). 
(4) Section 107 (7 U.S.C. 1445a). 
(5) Section 110 (7 U.S.C. 1445e). 
(6) Section 112 (7 U.S.C. 1445g). 
(7) Section 115 (7 U.S.C. 1445k). 
(8) Section 201 (7 U.S.C. 1446). 
(9) Title III (7 U.S.C. 1447 et seq.). 
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(10) Title IV (7 U.S.C. 1421 et seq.), other 
than sections 404, 412, and 416 (7 U.S.C. 1424, 
1429, and 1431). 
(11) Title V (7 U.S.C. 1461 et seq.). 
(12) Title VI (7 U.S.C. 1471 et seq.). 
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 
The joint resolution entitled ‘‘A joint resolution relating 
to corn and wheat marketing quotas under the Agricul-
tural Adjustment Act of 1938, as amended’’, approved 
May 26, 1941 (7 U.S.C. 1330, 1340), shall not be applica-
ble to the crops of wheat planted for harvest in the cal-
endar years 2014 through 2018. 
SEC. 1603. PAYMENT LIMITATIONS. 
(a) IN GENERAL.—Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended by striking sub-
sections (b) and (c) and inserting the following: 
‘‘(b) LIMITATION ON PAYMENTS FOR COVERED COM-
MODITIES (OTHER THAN PEANUTS).— 
‘‘(1) IN GENERAL.—The total amount of pay-
ments received, directly or indirectly, by a person or 
legal entity (except a joint venture or general part-
nership) for any crop year under section 1101(c) of 
the Federal Agriculture Reform and Risk Manage-
ment Act of 2013 and subsections (b) and (c) of sec-
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144 
tion 1107 of such Act (other than peanuts) may not 
exceed $125,000. 
‘‘(2) ADDITIONAL
LIMITATION
ON
PAYMENTS 
RELATED TO UPLAND COTTON.—The total amount 
of direct payments received, directly or indirectly, by 
a person or legal entity (except a joint venture or a 
general partnership) for each of the 2014 and 2015 
crop years under section 1101(c) of the Federal Ag-
riculture Reform and Risk Management Act of 2013 
may not exceed $40,000. 
‘‘(c) LIMITATION ON PAYMENTS FOR PEANUTS.— 
The total amount of payments received, directly or indi-
rectly, by a person or legal entity (except a joint venture 
or general partnership) for any crop year under subtitle 
A of title I of the Federal Agriculture Reform and Risk 
Management Act of 2013 for peanuts may not exceed 
$125,000.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1001(f) of the Food Security Act of 
1985 (7 U.S.C. 1308(f)) is amended by striking ‘‘or 
title XII’’ each place it appears in paragraphs (5)(A) 
and (6)(A) and inserting ‘‘, title I of the Federal Ag-
riculture Reform and Risk Management Act of 
2013, or title XII’’. 
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145 
(2) Section 1001C(a) of the Food Security Act 
of 1985 (7 U.S.C. 1308–3(a)) is amended by insert-
ing ‘‘title I of the Federal Agriculture Reform and 
Risk Management Act of 2013,’’ after ‘‘2008,’’. 
(c) APPLICATION.—The amendments made by this 
section shall apply beginning with the 2014 crop year. 
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION. 
(a) LIMITATIONS AND COVERED BENEFITS.—Section 
1001D(b) of the Food Security Act of 1985 (7 U.S.C. 
1308–3a(b)) is amended— 
(1) in the subsection heading, by striking ‘‘LIM-
ITATIONS’’ and inserting ‘‘LIMITATIONS
ON COM-
MODITY AND CONSERVATION PROGRAMS’’; 
(2) by striking paragraphs (1) and (2) and in-
serting the following new paragraphs: 
‘‘(1) LIMITATION.—Notwithstanding any other 
provision of law, a person or legal entity shall not 
be eligible to receive any benefit described in para-
graph (2) during a crop, fiscal, or program year, as 
appropriate, if the average adjusted gross income of 
the person or legal entity exceeds $950,000. 
‘‘(2) COVERED BENEFITS.—Paragraph (1) ap-
plies with respect to a payment or benefit under sub-
title A, B, or E of title I, or title II of the Federal 
Agriculture Reform and Risk Management Act of 
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146 
2013, title II of the Farm Security and Rural In-
vestment Act of 2002, title II of the Food, Con-
servation, and Energy Act of 2008, title XII of the 
Food Security Act of 1985, section 524(b) of the 
Federal Crop Insurance Act (7 U.S.C. 1524(b)), or 
section 196 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333).’’. 
(b) ELIMINATION OF UNUSED DEFINITIONS.—Para-
graph (1) of section 1001D(a) of the Food Security Act 
of 1985 (7 U.S.C. 1308–3a(a)) is amended to read as fol-
lows: 
‘‘(1) AVERAGE ADJUSTED GROSS INCOME.—In 
this section, the term ‘average adjusted gross in-
come’, with respect to a person or legal entity, 
means the average of the adjusted gross income or 
comparable measure of the person or legal entity 
over the 3 taxable years preceding the most imme-
diately preceding complete taxable year, as deter-
mined by the Secretary.’’. 
(c) INCOME DETERMINATION.—Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308–3a) is amend-
ed— 
(1) by striking subsection (c); and 
(2) by redesignating subsections (d), (e), and 
(f) as subsections (c), (d), and (e), respectively. 
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147 
(d) CONFORMING AMENDMENTS.—Section 1001D of 
the Food Security Act of 1985 (7 U.S.C. 1308–3a) is 
amended— 
(1) in subsection (a)(2)— 
(A) by striking ‘‘subparagraph (A) or (B) 
of’’; and 
(B) by striking ‘‘, the average adjusted 
gross farm income, and the average adjusted 
gross nonfarm income’’; 
(2) in subsection (a)(3), by striking ‘‘, average 
adjusted gross farm income, and average adjusted 
gross nonfarm income’’ both places it appears; 
(3) in subsection (c) (as redesignated by sub-
section (c)(2) of this section)— 
(A) in paragraph (1), by striking ‘‘, aver-
age adjusted gross farm income, and average 
adjusted gross nonfarm income’’ both places it 
appears; and 
(B) in paragraph (2), by striking ‘‘para-
graphs (1)(C) and (2)(B) of subsection (b)’’ 
and inserting ‘‘subsection (b)(2)’’; and 
(4) in subsection (d) (as redesignated by sub-
section (c)(2) of this section)— 
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148 
(A) by striking ‘‘paragraphs (1)(C) and 
(2)(B) of subsection (b)’’ and inserting ‘‘sub-
section (b)(2)’’; and 
(B) by striking ‘‘, average adjusted gross 
farm income, or average adjusted gross non-
farm income’’. 
(e) EFFECTIVE PERIOD.—Subsection (e) of section 
1001D of the Food Security Act of 1985 (7 U.S.C. 1308– 
3a), as redesignated by subsection (c)(2) of this section, 
is amended by striking ‘‘2009 through 2012’’ and insert-
ing ‘‘2014 through 2018’’. 
(f) 
LIMITATION
ON
APPLICABILITY.—Section 
1001(d) of the Food Security Act of 1985 (7 U.S.C. 1308) 
is amended by inserting before the period at the end the 
following: ‘‘or title I of the Federal Agriculture Reform 
and Risk Management Act of 2013’’. 
(g) TRANSITION.—Section 1001D of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308-3a), as in effect on the 
day before the date of the enactment of this Act, shall 
apply with respect to the 2013 crop, fiscal, or program 
year, as appropriate, for each program described in para-
graphs (1)(C) and (2)(B) of subsection (b) of that section 
(as so in effect on that day). 
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149 
SEC. 1605. GEOGRAPHICALLY DISADVANTAGED FARMERS 
AND RANCHERS. 
Section 1621(d) of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8792(d)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES. 
Section 164 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7284) is amended by 
striking ‘‘and title I of the Food, Conservation, and En-
ergy Act of 2008’’ each place it appears and inserting 
‘‘title I of the Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8702 et seq.), and title I of the Federal 
Agriculture Reform and Risk Management Act of 2013’’. 
SEC. 1607. PREVENTION OF DECEASED INDIVIDUALS RE-
CEIVING 
PAYMENTS 
UNDER 
FARM 
COM-
MODITY PROGRAMS. 
(a) RECONCILIATION.—At least twice each year, the 
Secretary shall reconcile social security numbers of all in-
dividuals who receive payments under this title, whether 
directly or indirectly, with the Commissioner of Social Se-
curity to determined if the individuals are alive. 
(b) PRECLUSION.—The Secretary shall preclude the 
issuance of payments to, and on behalf of, deceased indi-
viduals that were not eligible for payments. 
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150 
SEC. 1608. TECHNICAL CORRECTIONS. 
(a) MISSING PUNCTUATION.—Section 359f(c)(1)(B) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ff(c)(1)(B)) is amended by adding a period at the 
end. 
(b) ERRONEOUS CROSS REFERENCE.— 
(1) AMENDMENT.—Section 1603(g) of the 
Food, Conservation, and Energy Act of 2008 (Public 
Law 110–246; 122 Stat. 1739) is amended in para-
graphs (2) through (6) and the amendments made 
by those paragraphs by striking ‘‘1703(a)’’ each 
place it appears and inserting ‘‘1603(a)’’. 
(2) EFFECTIVE DATE.—This subsection and the 
amendments made by this subsection take effect as 
if included in the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1651). 
(c) CONTINUED APPLICABILITY OF APPROPRIATIONS 
GENERAL PROVISION.—Section 767 of division A of Pub-
lic Law 108–7 (7 U.S.C. 7911 note; 117 Stat. 48) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘sections 1101 and 1102 of 
Public Law 107–171’’ and inserting ‘‘subtitle A 
of title I of the Federal Agriculture Reform and 
Risk Management Act of 2013’’; and 
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151 
(B) by striking ‘‘such section 1102’’ and 
inserting ‘‘such subtitle’’; and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) This section, as amended by section 1608(c) of 
the Federal Agriculture Reform and Risk Management 
Act of 2013, shall take effect beginning with the 2014 
crop year.’’. 
SEC. 1609. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(g)), relating to assignment of payments, shall 
apply to payments made under this title. 
(b) NOTICE.—The producer making the assignment, 
or the assignee, shall provide the Secretary with notice, 
in such manner as the Secretary may require, of any as-
signment made under this section. 
SEC. 1610. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment 
of this Act, the Secretary may track the benefits provided, 
directly or indirectly, to individuals and entities under ti-
tles I and II and the amendments made by those titles. 
SEC. 1611. SIGNATURE AUTHORITY. 
(a) IN GENERAL.—In carrying out this title and title 
II and amendments made by those titles, if the Secretary 
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152 
approves a document, the Secretary shall not subsequently 
determine the document is inadequate or invalid because 
of the lack of authority of any person signing the docu-
ment on behalf of the applicant or any other individual, 
entity, general partnership, or joint venture, or the docu-
ments relied upon were determined inadequate or invalid, 
unless the person signing the program document know-
ingly and willfully falsified the evidence of signature au-
thority or a signature. 
(b) AFFIRMATION.— 
(1) IN GENERAL.—Nothing in this section pro-
hibits the Secretary from asking a proper party to 
affirm any document that otherwise would be consid-
ered approved under subsection (a). 
(2) NO
RETROACTIVE
EFFECT.—A denial of 
benefits based on a lack of affirmation under para-
graph (1) shall not be retroactive with respect to 
third-party producers who were not the subject of 
the erroneous representation of authority, if the 
third-party producers— 
(A) relied on the prior approval by the Sec-
retary of the documents in good faith; and 
(B) substantively complied with all pro-
gram requirements. 
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153 
SEC. 1612. IMPLEMENTATION. 
(a) STREAMLINING.—In implementing this title, the 
Secretary shall, to the maximum extent practicable— 
(1) seek to reduce administrative burdens and 
costs to producers by streamlining and reducing pa-
perwork, forms, and other administrative require-
ments; 
(2) improve coordination, information sharing, 
and administrative work with the Risk Management 
Agency and the Natural Resources Conservation 
Service; and 
(3) take advantage of new technologies to en-
hance efficiency and effectiveness of program deliv-
ery to producers. 
(b) MAINTENANCE OF BASE ACRES AND PAYMENT 
YIELDS.— 
(1) IN GENERAL.—The Secretary shall main-
tain through September 30, 2018, for each covered 
commodity and upland cotton, base acres and pay-
ment yields on a farm established under— 
(A)(i) in the case of covered commodities 
and upland cotton, sections 1101 and 1102 of 
the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7911, 7912); and 
(ii) in the case of peanuts, section 1302 of 
that Act (7 U.S.C. 7952); and 
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154 
(B)(i) in the case of covered commodities 
and upland cotton, sections 1101 and 1102 of 
the Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8711, 8712); and 
(ii) in the case of peanuts, section 1302 of 
that Act (7 U.S.C. 8752). 
(2) SPECIAL RULE FOR LONG GRAIN AND ME-
DIUM GRAIN RICE.— 
(A) IN
GENERAL.—The Secretary shall 
maintain separate base acres for long grain rice 
and medium grain rice. 
(B) LIMITATION.—In carrying out this 
paragraph, the Secretary shall use the same 
total base acres and payment yields established 
with respect to rice under sections 1108 of the 
Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8718), as in effect on the day before the 
date of enactment of this Act, subject to any 
adjustment under section 1105. 
(c) IMPLEMENTATION.—The Secretary shall make 
available to the Farm Service Agency to carry out this 
title $100,000,000. 
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155 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve 
Program 
SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS 
OF CONSERVATION RESERVE PROGRAM. 
(a) EXTENSION.—Section 1231(a) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831(a)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’. 
(b) ELIGIBLE LAND.—Section 1231(b) of the Food 
Security Act of 1985 (16 U.S.C. 3831(b)) is amended— 
(1) in paragraph (1)(B), by striking ‘‘the date 
of enactment of the Food, Conservation, and Energy 
Act of 2008’’ and inserting ‘‘the date of the enact-
ment of the Federal Agriculture Reform and Risk 
Management Act of 2013’’; 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2); 
(3) by inserting before paragraph (4) the fol-
lowing new paragraph: 
‘‘(3) grasslands that— 
‘‘(A) contain forbs or shrubland (including 
improved rangeland and pastureland) for which 
grazing is the predominant use; 
‘‘(B) are located in an area historically 
dominated by grasslands; and 
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156 
‘‘(C) could provide habitat for animal and 
plant populations of significant ecological value 
if the land is retained in its current use or re-
stored to a natural condition;’’; 
(4) 
in 
paragraph 
(4)(C), 
by 
striking 
‘‘filterstrips devoted to trees or shrubs’’ and insert-
ing ‘‘filterstrips or riparian buffers devoted to trees, 
shrubs, or grasses’’; and 
(5) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) the portion of land in a field not enrolled 
in the conservation reserve in a case in which— 
‘‘(A) more than 50 percent of the land in 
the field is enrolled as a buffer or filterstrip, or 
more than 75 percent of the land in the field 
is enrolled as a conservation practice other than 
as a buffer or filterstrip; and 
‘‘(B) the remainder of the field is— 
‘‘(i) infeasible to farm; and 
‘‘(ii) enrolled at regular rental rates.’’. 
(c) PLANTING STATUS OF CERTAIN LAND.—Section 
1231(c) of the Food Security Act of 1985 (16 U.S.C. 
3831(c)) is amended by striking ‘‘if’’ and all that follows 
through the period at the end and inserting ‘‘if, during 
the crop year, the land was devoted to a conserving use.’’. 
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157 
(d) ENROLLMENT.—Subsection (d) of section 1231 
of the Food Security Act of 1985 (16 U.S.C. 3831) is 
amended to read as follows: 
‘‘(d) ENROLLMENT.— 
‘‘(1) MAXIMUM
ACREAGE
ENROLLED.—The 
Secretary may maintain in the conservation reserve 
at any one time during— 
‘‘(A) fiscal year 2014, no more than 
27,500,000 acres; 
‘‘(B) fiscal year 2015, no more than 
26,000,000 acres; 
‘‘(C) fiscal year 2016, no more than 
25,000,000 acres; 
‘‘(D) fiscal year 2017, no more than 
24,000,000 acres; and 
‘‘(E) fiscal year 2018, no more than 
24,000,000 acres. 
‘‘(2) GRASSLANDS.— 
‘‘(A) LIMITATION.—For purposes of apply-
ing the limitations in paragraph (1), no more 
than 2,000,000 acres of the land described in 
subsection (b)(3) may be enrolled in the pro-
gram at any one time during the 2014 through 
2018 fiscal years. 
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158 
‘‘(B) PRIORITY.—In enrolling acres under 
subparagraph (A), the Secretary may give pri-
ority to land with expiring conservation reserve 
program contracts. 
‘‘(C) METHOD OF ENROLLMENT.—In en-
rolling acres under subparagraph (A), the Sec-
retary shall make the program available to own-
ers or operators of eligible land on a continuous 
enrollment basis with one or more ranking peri-
ods.’’. 
(e) DURATION OF CONTRACT.—Section 1231(e) of 
the Food Security Act of 1985 (16 U.S.C. 3831(e)) is 
amended by striking paragraphs (2) and (3) and inserting 
the following new paragraph: 
‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In 
the case of land devoted to hardwood trees, 
shelterbelts, windbreaks, or wildlife corridors under 
a contract entered into under this subchapter, the 
owner or operator of the land may, within the limita-
tions prescribed under paragraph (1), specify the du-
ration of the contract.’’. 
(f) 
CONSERVATION
PRIORITY
AREAS.—Section 
1231(f) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)) is amended— 
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(1) in paragraph (1), by striking ‘‘watershed 
areas of the Chesapeake Bay Region, the Great 
Lakes Region, the Long Island Sound Region, and 
other’’; 
(2) in paragraph (2), by striking ‘‘WATER-
SHEDS.—Watersheds’’ 
and 
inserting 
‘‘AREAS.— 
Areas’’; and 
(3) in paragraph (3), by striking ‘‘a watershed’s 
designation—’’ and all that follows through the pe-
riod at the end and inserting ‘‘an area’s designation 
if the Secretary finds that the area no longer con-
tains actual and significant adverse water quality or 
habitat impacts related to agricultural production 
activities.’’. 
SEC. 2002. FARMABLE WETLAND PROGRAM. 
(a) EXTENSION.—Section 1231B(a)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amend-
ed— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘a program’’ and inserting ‘‘a 
farmable wetland program’’. 
(b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 
the 
Food 
Security 
Act 
of 
1985 
(16 
U.S.C. 
3831b(b)(1)(B)) is amended by striking ‘‘flow from a row 
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160 
crop agriculture drainage system’’ and inserting ‘‘surface 
and subsurface flow from row crop agricultural produc-
tion’’. 
(c) ACREAGE LIMITATION.—Section 1231B(c)(1)(B) 
of the Food Security Act of 1985 (16 U.S.C. 
3831b(c)(1)(B)) is amended by striking ‘‘1,000,000’’ and 
inserting ‘‘750,000’’. 
(d) CLERICAL AMENDMENT.—The heading of section 
1231B of the Food Security Act of 1985 (16 U.S.C. 
3831b) is amended to read as follows: ‘‘FARMABLE WET-
LAND PROGRAM’’. 
SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 
(a) LIMITATION ON HARVESTING, GRAZING, OR COM-
MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the 
Food Security Act of 1985 (16 U.S.C. 3832(a)(8)) is 
amended by striking ‘‘except that’’ and all that follows 
through the semicolon at the end of the paragraph and 
inserting ‘‘except as provided in subsection (b) or (c) of 
section 1233;’’. 
(b) CONSERVATION PLAN REQUIREMENTS.—Sub-
section (b) of section 1232 of the Food Security Act of 
1985 (16 U.S.C. 3832) is amended to read as follows: 
‘‘(b) CONSERVATION PLANS.—The plan referred to 
in subsection (a)(1) shall set forth— 
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‘‘(1) the conservation measures and practices to 
be carried out by the owner or operator during the 
term of the contract; and 
‘‘(2) the commercial use, if any, to be permitted 
on the land during the term.’’. 
(c) RENTAL PAYMENT REDUCTION.—Section 1232 
of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by striking subsection (d). 
SEC. 2004. DUTIES OF THE SECRETARY. 
Section 1233 of the Food Security Act of 1985 (16 
U.S.C. 3833) is amended to read as follows: 
‘‘SEC. 1233. DUTIES OF THE SECRETARY. 
‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re-
turn for a contract entered into by an owner or operator 
under the conservation reserve program, the Secretary 
shall— 
‘‘(1) share the cost of carrying out the con-
servation measures and practices set forth in the 
contract for which the Secretary determines that 
cost sharing is appropriate and in the public inter-
est; and 
‘‘(2) for a period of years not in excess of the 
term of the contract, pay an annual rental payment 
in an amount necessary to compensate for— 
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‘‘(A) the conversion of highly erodible crop-
land or other eligible lands normally devoted to 
the production of an agricultural commodity on 
a farm or ranch to a less intensive use; 
‘‘(B) the retirement of any base history 
that the owner or operator agrees to retire per-
manently; and 
‘‘(C) the development and management of 
grasslands for multiple natural resource con-
servation benefits, including to soil, water, air, 
and wildlife. 
‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec-
retary shall permit certain activities or commercial uses 
of land that is subject to a contract under the conservation 
reserve program in a manner that is consistent with a plan 
approved by the Secretary, as follows: 
‘‘(1) Harvesting, grazing, or other commercial 
use of the forage in response to a drought or other 
emergency created by a natural disaster, without 
any reduction in the rental rate. 
‘‘(2) Consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
during nesting seasons for birds in the area), and in 
exchange for a reduction of not less than 25 percent 
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in the annual rental rate for the acres covered by 
the authorized activity— 
‘‘(A) managed harvesting and other com-
mercial use (including the managed harvesting 
of biomass), except that in permitting managed 
harvesting, the Secretary, in coordination with 
the State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
‘‘(ii) shall identify periods during 
which managed harvesting may be con-
ducted, such that the frequency is not 
more than once every three years; 
‘‘(B) routine grazing or prescribed grazing 
for the control of invasive species, except that 
in permitting such routine grazing or prescribed 
grazing, the Secretary, in coordination with the 
State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements and stock-
ing rates for the land that are suitable for 
continued routine grazing; and 
‘‘(ii) shall identify the periods during 
which routine grazing may be conducted, 
such that the frequency is not more than 
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once every two years, taking into consider-
ation regional differences such as— 
‘‘(I) climate, soil type, and nat-
ural resources; 
‘‘(II) the number of years that 
should be required between routine 
grazing activities; and 
‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(C) the installation of wind turbines and 
associated access, except that in permitting the 
installation of wind turbines, the Secretary shall 
determine the number and location of wind tur-
bines that may be installed, taking into ac-
count— 
‘‘(i) the location, size, and other phys-
ical characteristics of the land; 
‘‘(ii) the extent to which the land con-
tains wildlife and wildlife habitat; and 
‘‘(iii) the purposes of the conservation 
reserve program under this subchapter. 
‘‘(3) The intermittent and seasonal use of vege-
tative buffer practices incidental to agricultural pro-
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duction on lands adjacent to the buffer such that the 
permitted use does not destroy the permanent vege-
tative cover. 
‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLANDS.— 
For eligible land described in section 1231(b)(3), the Sec-
retary shall permit the following activities: 
‘‘(1) Common grazing practices, including 
maintenance and necessary cultural practices, on the 
land in a manner that is consistent with maintaining 
the viability of grassland, forb, and shrub species ap-
propriate to that locality. 
‘‘(2) Haying, mowing, or harvesting for seed 
production, subject to appropriate restrictions dur-
ing the nesting season for critical bird species in the 
area. 
‘‘(3) Fire presuppression, fire-related rehabilita-
tion, and construction of fire breaks. 
‘‘(4) Grazing-related activities, such as fencing 
and livestock watering. 
‘‘(d) RESOURCE CONSERVING USE.— 
‘‘(1) IN GENERAL.—Beginning on the date that 
is 1 year before the date of termination of a contract 
under the program, the Secretary shall allow an 
owner or operator to make conservation and land 
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improvements that facilitate maintaining protection 
of enrolled land after expiration of the contract. 
‘‘(2) CONSERVATION
PLAN.—The Secretary 
shall require an owner or operator carrying out the 
activities described in paragraph (1) to develop and 
implement a conservation plan. 
‘‘(3) RE-ENROLLMENT PROHIBITED.—Land im-
proved under paragraph (1) may not be re-enrolled 
in the conservation reserve program for 5 years after 
the date of termination of the contract.’’. 
SEC. 2005. PAYMENTS. 
(a) TREES, WINDBREAKS, SHELTERBELTS, AND 
WILDLIFE CORRIDORS.—Section 1234(b)(3)(A) of the 
Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is 
amended— 
(1) in clause (i), by inserting ‘‘and’’ after the 
semicolon; 
(2) by striking clause (ii); and 
(3) by redesignating clause (iii) as clause (ii). 
(b) ANNUAL RENTAL PAYMENTS.—Section 1234(c) 
of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
amended— 
(1) in paragraph (1), by inserting ‘‘or other eli-
gible lands’’ after ‘‘highly erodible cropland’’ both 
places it appears; and 
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(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) METHODS OF DETERMINATION.— 
‘‘(A) IN GENERAL.—The amounts payable 
to owners or operators in the form of rental 
payments under contracts entered into under 
this subchapter may be determined through— 
‘‘(i) the submission of bids for such 
contracts by owners and operators in such 
manner as the Secretary may prescribe; or 
‘‘(ii) such other means as the Sec-
retary determines are appropriate. 
‘‘(B) GRASSLANDS.—In the case of eligible 
land described in section 1231(b)(3), the Sec-
retary shall make annual payments in an 
amount that is not more than 75 percent of the 
grazing value of the land covered by the con-
tract.’’. 
(c) PAYMENT SCHEDULE.—Subsection (d) of section 
1234 of the Food Security Act of 1985 (16 U.S.C. 3834) 
is amended to read as follows: 
‘‘(d) PAYMENT SCHEDULE.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, payments under this sub-
chapter shall be made in cash in such amount and 
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168 
on such time schedule as is agreed on and specified 
in the contract. 
‘‘(2) ADVANCE
PAYMENT.—Payments under 
this subchapter may be made in advance of deter-
mination of performance.’’. 
(d) PAYMENT LIMITATION.—Section 1234(f) of the 
Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘, including 
rental payments made in the form of in-kind com-
modities,’’; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as para-
graph (2). 
SEC. 2006. CONTRACT REQUIREMENTS. 
(a) EARLY TERMINATION
BY OWNER
OR OPER-
ATOR.—Section 1235(e) of the Food Security Act of 1985 
(16 U.S.C. 3835(e)) is amended— 
(1) in paragraph (1)(A)— 
(A) by striking ‘‘The Secretary’’ and in-
serting ‘‘During fiscal year 2014, the Sec-
retary’’; and 
(B) by striking ‘‘before January 1, 1995,’’; 
(2) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
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‘‘(C) Land devoted to hardwood trees. 
‘‘(D) Wildlife habitat, duck nesting habi-
tat, pollinator habitat, upland bird habitat buff-
er, wildlife food plots, State acres for wildlife 
enhancement, shallow water areas for wildlife, 
and rare and declining habitat. 
‘‘(E) Farmable wetland and restored wet-
land. 
‘‘(F) Land that contains diversions, ero-
sion control structures, flood control structures, 
contour grass strips, living snow fences, salinity 
reducing vegetation, cross wind trap strips, and 
sediment retention structures. 
‘‘(G) Land located within a federally-des-
ignated wellhead protection area. 
‘‘(H) Land that is covered by an easement 
under the conservation reserve program. 
‘‘(I) Land located within an average width, 
according to the applicable Natural Resources 
Conservation Service field office technical guide, 
of a perennial stream or permanent water 
body.’’; and 
(3) in paragraph (3), by striking ‘‘60 days after 
the date on which the owner or operator submits the 
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notice required under paragraph (1)(C)’’ and insert-
ing ‘‘upon approval by the Secretary’’. 
(b) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.—Section 1235(f) of the Food Security Act of 
1985 (16 U.S.C. 3835(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘DUTIES’’ and all that follows 
through ‘‘a beginning farmer’’ and inserting 
‘‘TRANSITION TO COVERED FARMER OR RANCH-
ER.—In the case of a contract modification ap-
proved in order to facilitate the transfer of land 
subject to a contract from a retired farmer or 
rancher to a beginning farmer’’; 
(B) in subparagraph (A)(i), by inserting ‘‘, 
including preparing to plant an agricultural 
crop’’ after ‘‘improvements’’; 
(C) in subparagraph (D), by striking ‘‘the 
farmer or rancher’’ and inserting ‘‘the covered 
farmer or rancher’’; and 
(D) in subparagraph (E), by striking ‘‘sec-
tion 1001A(b)(3)(B)’’ and inserting ‘‘section 
1001’’; and 
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(2) in paragraph (2), by striking ‘‘requirement 
of section 1231(h)(4)(B)’’ and inserting ‘‘option pur-
suant to section 1234(c)(2)(A)(ii)’’. 
(c) FINAL YEAR CONTRACT.—Section 1235 of the 
Food Security Act of 1985 (16 U.S.C. 3835) is amended 
by adding at the end the following new subsections: 
‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary 
shall not consider an owner or operator to be in violation 
of a term or condition of the conservation reserve contract 
if— 
‘‘(1) during the year prior to expiration of the 
contract, the land is enrolled in the conservation 
stewardship program; and 
‘‘(2) the activity required under the conserva-
tion stewardship program pursuant to such enroll-
ment is consistent with this subchapter. 
‘‘(h) LAND ENROLLED
IN AGRICULTURAL CON-
SERVATION EASEMENT PROGRAM.—The Secretary may 
terminate or modify a contract entered into under this 
subchapter if eligible land that is subject to such contract 
is transferred into the agricultural conservation easement 
program under subtitle H.’’. 
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SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 
TO OTHER CONSERVING USES. 
Section 1235A of the Food Security Act of 1985 (16 
U.S.C. 3835a) is repealed. 
SEC. 2008. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
subtitle shall take effect on October 1, 2013, except the 
amendment made by section 2001(d), which shall take ef-
fect on the date of the enactment of this Act. 
(b) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this subtitle 
shall not affect the validity or terms of any contract 
entered into by the Secretary of Agriculture under 
subchapter B of chapter 1 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3831 
et seq.) before October 1, 2013, or any payments re-
quired to be made in connection with the contract. 
(2) UPDATING OF EXISTING CONTRACTS.—The 
Secretary shall permit an owner or operator of land 
subject to a contract entered into under subchapter 
B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.) be-
fore October 1, 2013, to update the contract to re-
flect the activities and uses of land under contract 
permitted under the terms and conditions of section 
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1233(b) of that Act (as amended by section 2004), 
as determined appropriate by the Secretary. 
Subtitle B—Conservation 
Stewardship Program 
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 
(a) REVISION OF CURRENT PROGRAM.—Subchapter 
B of chapter 2 of subtitle D of title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3838d et seq.) is amended 
to read as follows: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) AGRICULTURAL
OPERATION.—The term 
‘agricultural operation’ means all eligible land, 
whether or not contiguous, that is— 
‘‘(A) under the effective control of a pro-
ducer at the time the producer enters into a 
contract under the program; and 
‘‘(B) operated with equipment, labor, man-
agement, and production or cultivation prac-
tices that are substantially separate from other 
agricultural operations, as determined by the 
Secretary. 
‘‘(2) CONSERVATION ACTIVITIES.— 
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‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
ment systems, as determined by the Sec-
retary; and 
‘‘(ii) planning needed to address a pri-
ority resource concern. 
‘‘(3) CONSERVATION
STEWARDSHIP
PLAN.— 
The term ‘conservation stewardship plan’ means a 
plan that— 
‘‘(A) identifies and inventories priority re-
source concerns; 
‘‘(B) establishes benchmark data and con-
servation objectives; 
‘‘(C) describes conservation activities to be 
implemented, managed, or improved; and 
‘‘(D) includes a schedule and evaluation 
plan for the planning, installation, and manage-
ment of the new and existing conservation ac-
tivities. 
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‘‘(4) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ means— 
‘‘(i) private or tribal land on which 
agricultural commodities, livestock, or for-
est-related products are produced; and 
‘‘(ii) lands associated with the land 
described in clause (i) on which priority re-
source 
concerns 
could 
be 
addressed 
through a contract under the program. 
‘‘(B) INCLUSIONS.—The term ‘eligible 
land’ includes— 
‘‘(i) cropland; 
‘‘(ii) grassland; 
‘‘(iii) rangeland; 
‘‘(iv) pasture land; 
‘‘(v) nonindustrial private forest land; 
and 
‘‘(vi) other agricultural areas (includ-
ing cropped woodland, marshes, and agri-
cultural land used or capable of being used 
for the production of livestock), as deter-
mined by the Secretary. 
‘‘(5) 
PRIORITY
RESOURCE
CONCERN.—The 
term ‘priority resource concern’ means a natural re-
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source concern or problem, as determined by the 
Secretary, that— 
‘‘(A) is identified at the national, State, or 
local level as a priority for a particular area of 
a State; 
‘‘(B) represents a significant concern in a 
State or region; and 
‘‘(C) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities under this program. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the conservation stewardship program established by 
this subchapter. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of manage-
ment required, as determined by the Secretary, to 
conserve and improve the quality and condition of a 
natural resource. 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each 
of fiscal years 2014 through 2018, the Secretary shall 
carry out a conservation stewardship program to encour-
age producers to address priority resource concerns in a 
comprehensive manner— 
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‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining, and managing 
existing conservation activities. 
‘‘(b) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVA-
TION PROGRAMS.—Subject to paragraph (2), the fol-
lowing land (even if covered by the definition of eli-
gible land) is not eligible for enrollment in the pro-
gram: 
‘‘(A) Land enrolled in the conservation re-
serve program, unless— 
‘‘(i) the conservation reserve contract 
will expire at the end of the fiscal year in 
which the land is to be enrolled in the pro-
gram; and 
‘‘(ii) conservation reserve program 
payments for land enrolled in the program 
cease before the first program payment is 
made to the applicant under this sub-
chapter. 
‘‘(B) Land enrolled in a wetland easement 
through the agricultural conservation easement 
program. 
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‘‘(C) Land enrolled in the conservation se-
curity program. 
‘‘(2) CONVERSION
TO
CROPLAND.—Eligible 
land used for crop production after October 1, 2013, 
that had not been planted, considered to be planted, 
or devoted to crop production for at least 4 of the 
6 years preceding that date shall not be the basis for 
any payment under the program, unless the land 
does not meet the requirement because— 
‘‘(A) the land had previously been enrolled 
in the conservation reserve program; 
‘‘(B) the land has been maintained using 
long-term crop rotation practices, as determined 
by the Secretary; or 
‘‘(C) the land is incidental land needed for 
efficient operation of the farm or ranch, as de-
termined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eli-
gible to participate in the conservation stewardship pro-
gram, a producer shall submit to the Secretary a contract 
offer for the agricultural operation that— 
‘‘(1) demonstrates to the satisfaction of the 
Secretary that the producer, at the time of the con-
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179 
tract offer, meets or exceeds the stewardship thresh-
old for at least 2 priority resource concerns; and 
‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 additional pri-
ority resource concern by the end of the stewardship 
contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging existing conservation activities across the 
entire agricultural operation in a manner that 
increases or extends the conservation benefits in 
place at the time the contract offer is accepted 
by the Secretary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING
OF
APPLICATIONS.—In evalu-
ating contract offers submitted under subsection (a), 
the Secretary shall rank applications based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application; 
‘‘(B) the degree to which the proposed con-
servation activities effectively increase conserva-
tion performance; 
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‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet 
or exceed the stewardship threshold by the end 
of the contract; 
‘‘(D) the extent to which other priority re-
source concerns will be addressed to meet or ex-
ceed the stewardship threshold by the end of 
the contract period; 
‘‘(E) the extent to which the actual and 
anticipated conservation benefits from the con-
tract are provided at the least cost relative to 
other similarly beneficial contract offers; and 
‘‘(F) the extent to which priority resource 
concerns will be addressed when transitioning 
from the conservation reserve program to agri-
cultural production. 
‘‘(2) PROHIBITION.—The Secretary may not as-
sign a higher priority to any application because the 
applicant is willing to accept a lower payment than 
the applicant would otherwise be eligible to receive. 
‘‘(3) ADDITIONAL
CRITERIA.—The Secretary 
may develop and use such additional criteria that 
the Secretary determines are necessary to ensure 
that national, State, and local priority resource con-
cerns are effectively addressed. 
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‘‘(c) ENTERING INTO CONTRACTS.—After a deter-
mination that a producer is eligible for the program under 
subsection (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conserva-
tion stewardship contract with the producer to enroll the 
eligible land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship con-
tract shall be for a term of 5 years. 
‘‘(2) REQUIRED PROVISIONS.—The conservation 
stewardship contract of a producer shall— 
‘‘(A) state the amount of the payment the 
Secretary agrees to make to the producer for 
each year of the conservation stewardship con-
tract under section 1238G(d); 
‘‘(B) require the producer— 
‘‘(i) to implement a conservation stew-
ardship plan that describes the program 
purposes to be achieved through 1 or more 
conservation activities; 
‘‘(ii) to maintain and supply informa-
tion as required by the Secretary to deter-
mine compliance with the conservation 
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stewardship plan and any other require-
ments of the program; and 
‘‘(iii) not to conduct any activities on 
the agricultural operation that would tend 
to defeat the purposes of the program; 
‘‘(C) permit all economic uses of the eligi-
ble land that— 
‘‘(i) maintain the agricultural nature 
of the land; and 
‘‘(ii) are consistent with the conserva-
tion purposes of the conservation steward-
ship contract; 
‘‘(D) include a provision to ensure that a 
producer shall not be considered in violation of 
the contract for failure to comply with the con-
tract due to circumstances beyond the control 
of the producer, including a disaster or related 
condition, as determined by the Secretary; 
‘‘(E) include provisions requiring that 
upon the violation of a term or condition of the 
contract at any time the producer has control 
of the land— 
‘‘(i) if the Secretary determines that 
the violation warrants termination of the 
contract— 
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‘‘(I) the producer shall forfeit all 
rights to receive payments under the 
contract; and 
‘‘(II) the producer shall refund 
all or a portion of the payments re-
ceived by the producer under the con-
tract, including any interest on the 
payments, as determined by the Sec-
retary; or 
‘‘(ii) if the Secretary determines that 
the violation does not warrant termination 
of the contract, the producer shall refund 
or accept adjustments to the payments 
provided to the producer, as the Secretary 
determines to be appropriate; 
‘‘(F) include provisions in accordance with 
paragraphs (3) and (4) of this section; and 
‘‘(G) include any additional provisions the 
Secretary determines are necessary to carry out 
the program. 
‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT 
TO A CONTRACT.— 
‘‘(A) IN GENERAL.—At the time of appli-
cation, a producer shall have control of the eli-
gible land to be enrolled in the program. Except 
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as provided in subparagraph (B), a change in 
the interest of a producer in eligible land cov-
ered by a contract under the program shall re-
sult in the termination of the contract with re-
gard to that land. 
‘‘(B) 
TRANSFER
OF
DUTIES
AND 
RIGHTS.—Subparagraph (A) shall not apply 
if— 
‘‘(i) within a reasonable period of time 
(as determined by the Secretary) after the 
date of the change in the interest in eligi-
ble land covered by a contract under the 
program, the transferee of the land pro-
vides written notice to the Secretary that 
all duties and rights under the contract 
have been transferred to, and assumed by, 
the transferee for the portion of the land 
transferred; 
‘‘(ii) the transferee meets the eligi-
bility requirements of the program; and 
‘‘(iii) the Secretary approves the 
transfer of all duties and rights under the 
contract. 
‘‘(4) MODIFICATION
AND
TERMINATION
OF 
CONTRACTS.— 
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‘‘(A) VOLUNTARY MODIFICATION OR TER-
MINATION.—The Secretary may modify or ter-
minate a contract with a producer if— 
‘‘(i) the producer agrees to the modi-
fication or termination; and 
‘‘(ii) the Secretary determines that 
the modification or termination is in the 
public interest. 
‘‘(B) INVOLUNTARY
TERMINATION.—The 
Secretary may terminate a contract if the Sec-
retary determines that the producer violated the 
contract. 
‘‘(5) REPAYMENT.—If a contract is terminated, 
the Secretary may, consistent with the purposes of 
the program— 
‘‘(A) allow the producer to retain payments 
already received under the contract; or 
‘‘(B) require repayment, in whole or in 
part, of payments received and assess liquidated 
damages. 
‘‘(e) CONTRACT RENEWAL.—At the end of the initial 
5-year contract period, the Secretary may allow the pro-
ducer to renew the contract for 1 additional 5-year period 
if the producer— 
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‘‘(1) demonstrates compliance with the terms of 
the initial contract; 
‘‘(2) agrees to adopt and continue to integrate 
conservation activities across the entire agricultural 
operation, as determined by the Secretary; and 
‘‘(3) agrees, by the end of the contract period— 
‘‘(A) to meet the stewardship threshold of 
at least two additional priority resource con-
cerns on the agricultural operation; or 
‘‘(B) to exceed the stewardship threshold 
of two existing priority resource concerns that 
are specified by the Secretary in the initial con-
tract. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation 
goals of a contract under the conservation stewardship 
program, the Secretary shall— 
‘‘(1) make the program available to eligible pro-
ducers on a continuous enrollment basis with 1 or 
more ranking periods, one of which shall occur in 
the first quarter of each fiscal year; 
‘‘(2) identify not less than 5 priority resource 
concerns in a particular watershed or other appro-
priate region or area within a State; and 
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‘‘(3) establish a science-based stewardship 
threshold for each priority resource concern identi-
fied under paragraph (2). 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall 
allocate acres to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eli-
gible land to the total acreage of eligible land in all 
States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the con-
servation needs associated with agricultural 
production in each State; 
‘‘(B) the degree to which implementation 
of the program in the State is, or will be, effec-
tive in helping producers address those needs; 
and 
‘‘(C) other considerations to achieve equi-
table geographic distribution of funds, as deter-
mined by the Secretary. 
‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2013, and ending on 
September 30, 2021, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
8,695,000 acres for each fiscal year; and 
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‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance, 
and any other expenses associated with enrollment 
or participation in the program. 
‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide annual payments under the pro-
gram to compensate the producer for— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the ag-
ricultural operation of the producer at the time 
the contract offer is accepted by the Secretary. 
‘‘(2) PAYMENT AMOUNT.—The amount of the 
conservation stewardship annual payment shall be 
determined by the Secretary and based, to the max-
imum extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer asso-
ciated with planning, design, materials, installa-
tion, labor, management, maintenance, or train-
ing. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected conservation benefits. 
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‘‘(D) The extent to which priority resource 
concerns will be addressed through the installa-
tion and adoption of conservation activities on 
the agricultural operation. 
‘‘(E) The level of stewardship in place at 
the time of application and maintained over the 
term of the contract. 
‘‘(F) The degree to which the conservation 
activities will be integrated across the entire ag-
ricultural operation for all applicable priority 
resource concerns over the term of the contract. 
‘‘(G) Such other factors as determined ap-
propriate by the Secretary. 
‘‘(3) EXCLUSIONS.—A payment to a producer 
under this subsection shall not be provided for— 
‘‘(A) the design, construction, or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the 
producer. 
‘‘(4) DELIVERY
OF
PAYMENTS.—In making 
payments under this subsection, the Secretary shall, 
to the extent practicable— 
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‘‘(A) prorate conservation performance 
over the term of the contract so as to accommo-
date, to the extent practicable, producers earn-
ing equal annual payments in each fiscal year; 
and 
‘‘(B) make payments as soon as prac-
ticable after October 1 of each fiscal year for 
activities carried out in the previous fiscal year. 
‘‘(e) SUPPLEMENTAL PAYMENTS
FOR RESOURCE- 
CONSERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide additional payments to pro-
ducers that, in participating in the program, agree 
to adopt or improve resource-conserving crop rota-
tions to achieve beneficial crop rotations as appro-
priate for the eligible land of the producers. 
‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec-
retary shall determine whether a resource-conserving 
crop rotation is a beneficial crop rotation eligible for 
additional payments under paragraph (1) based on 
whether the resource-conserving crop rotation is de-
signed to provide natural resource conservation and 
production benefits. 
‘‘(3) ELIGIBILITY.—To be eligible to receive a 
payment described in paragraph (1), a producer 
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shall agree to adopt and maintain beneficial re-
source-conserving crop rotations for the term of the 
contract. 
‘‘(4) 
RESOURCE-CONSERVING
CROP
ROTA-
TION.—In this subsection, the term ‘resource-con-
serving crop rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource con-
serving crop (as defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion 
of soil moisture or otherwise reduces the need 
for irrigation. 
‘‘(f) PAYMENT LIMITATIONS.—A person or legal enti-
ty may not receive, directly or indirectly, payments under 
the program that, in the aggregate, exceed $200,000 
under all contracts entered into during fiscal years 2013 
through 2017, excluding funding arrangements with In-
dian tribes, regardless of the number of contracts entered 
into under the program by the person or legal entity. 
‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
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propriate to enable specialty crop and organic producers 
to participate in the program. 
‘‘(h) COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—The Secretary shall establish a transparent 
means by which producers may initiate organic certifi-
cation under the Organic Foods Production Act of 1990 
(7 U.S.C. 6501 et seq.) while participating in a contract 
under the program. 
‘‘(i) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) prescribe such other rules as the Secretary 
determines to be necessary to ensure a fair and rea-
sonable application of the limitations established 
under subsection (f); and 
‘‘(2) otherwise enable the Secretary to carry out 
the program.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2013. 
(c) EFFECT ON EXISTING CONTRACTS.— 
(1) IN
GENERAL.—The amendment made by 
this section shall not affect the validity or terms of 
any contract entered into by the Secretary of Agri-
culture under subchapter B of chapter 2 of subtitle 
D of title XII of the Food Security Act of 1985 (16 
U.S.C. 3838d et seq.) before October 1, 2013, or 
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193 
any payments required to be made in connection 
with the contract. 
(2) CONSERVATION STEWARDSHIP PROGRAM.— 
Funds made available under section 1241(a)(4) of 
the Food Security Act of 1985 (16 U.S.C. 
3841(a)(4)) (as amended by section 2601(a) of this 
title) may be used to administer and make payments 
to program participants that enrolled into contracts 
during any of fiscal years 2009 through 2013. 
Subtitle C—Environmental Quality 
Incentives Program 
SEC. 2201. PURPOSES. 
Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and, in such subparagraph, 
by inserting ‘‘and’’ after the semicolon; and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) developing and improving wildlife 
habitat; and’’; 
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(2) in paragraph (4), by striking ‘‘; and’’ and 
inserting a period; and 
(3) by striking paragraph (5). 
SEC. 2202. ESTABLISHMENT AND ADMINISTRATION. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended— 
(1) in subsection (a), by striking ‘‘2014’’ and 
inserting ‘‘2018’’; 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following new paragraph: 
‘‘(2) TERM.—A contract under the program 
shall have a term that does not exceed 10 years.’’; 
(3) in subsection (d)(4)— 
(A) in subparagraph (A), in the matter 
preceding clause (i), by inserting ‘‘, veteran 
farmer or rancher (as defined in section 
2501(e) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(e))),’’ 
before ‘‘or a beginning farmer or rancher’’; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B) ADVANCE PAYMENTS.— 
‘‘(i) IN GENERAL.—Not more than 50 
percent of the amount determined under 
subparagraph (A) may be provided in ad-
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vance for the purpose of purchasing mate-
rials or contracting. 
‘‘(ii) RETURN
OF
FUNDS.—If funds 
provided in advance are not expended dur-
ing the 90-day period beginning on the 
date of receipt of the funds, the funds shall 
be returned within a reasonable time 
frame, as determined by the Secretary.’’; 
(4) by striking subsection (f) and inserting the 
following new subsection: 
‘‘(f) ALLOCATION OF FUNDING.— 
‘‘(1) LIVESTOCK.—For each of fiscal years 
2014 through 2018, at least 60 percent of the funds 
made available for payments under the program 
shall be targeted at practices relating to livestock 
production. 
‘‘(2) WILDLIFE HABITAT.—For each of fiscal 
years 2014 through 2018, 5 percent of the funds 
made available for payments under the program 
shall be targeted at practices benefitting wildlife 
habitat.’’; 
(5) in subsection (g)— 
(A) in the subsection heading, by striking 
‘‘FEDERALLY RECOGNIZED NATIVE AMERICAN 
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INDIAN TRIBES
AND ALASKA NATIVE COR-
PORATIONS’’ and inserting ‘‘INDIAN TRIBES’’; 
(B) by striking ‘‘federally recognized Na-
tive American Indian Tribes and Alaska Native 
Corporations (including their affiliated member-
ship organizations)’’ and inserting ‘‘Indian 
tribes’’; and 
(C) by striking ‘‘or Native Corporation’’; 
and 
(6) by adding at the end the following: 
‘‘(j) WILDLIFE HABITAT INCENTIVE PRACTICE.— 
The Secretary shall provide payments under the program 
for conservation practices that support the restoration, de-
velopment, and improvement of wildlife habitat on eligible 
land, including— 
‘‘(1) upland wildlife habitat; 
‘‘(2) wetland wildlife habitat; 
‘‘(3) habitat for threatened and endangered 
species; 
‘‘(4) fish habitat; 
‘‘(5) habitat on pivot corners and other irreg-
ular areas of a field; and 
‘‘(6) other types of wildlife habitat, as deter-
mined appropriate by the Secretary.’’. 
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197 
SEC. 2203. EVALUATION OF APPLICATIONS. 
Section 1240C(b) of the Food Security Act of 1985 
(16 U.S.C. 3839aa–3(b)) is amended— 
(1) in paragraph (1), by striking ‘‘environ-
mental’’ and inserting ‘‘conservation’’; and 
(2) in paragraph (3), by striking ‘‘purpose of 
the environmental quality incentives program speci-
fied in section 1240(1)’’ and inserting ‘‘purposes of 
the program’’. 
SEC. 2204. DUTIES OF PRODUCERS. 
Section 1240D(2) of the Food Security Act of 1985 
(16 U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm, 
ranch, or forest’’ and inserting ‘‘enrolled’’. 
SEC. 2205. LIMITATION ON PAYMENTS. 
Section 1240G of the Food Security Act of 1985 (16 
U.S.C. 3839aa–7) is amended to read as follows: 
‘‘SEC. 1240G. LIMITATION ON PAYMENTS. 
‘‘A person or legal entity may not receive, directly 
or indirectly, cost share or incentive payments under this 
chapter that, in aggregate, exceed $450,000 for all con-
tracts entered into under this chapter by the person or 
legal entity during the period of fiscal years 2014 through 
2018, regardless of the number of contracts entered into 
under this chapter by the person or legal entity.’’. 
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198 
SEC. 2206. CONSERVATION INNOVATION GRANTS AND PAY-
MENTS. 
Section 1240H of the Food Security Act of 1985 (16 
U.S.C. 3839aa–8) is amended— 
(1) in subsection (a)(2)— 
(A) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (D), by striking the 
period and inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(E) facilitate on-farm conservation re-
search and demonstration activities; and 
‘‘(F) facilitate pilot testing of new tech-
nologies or innovative conservation practices.’’; 
and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) REPORTING.—Not later than December 31, 
2014, and every two years thereafter, the Secretary shall 
submit to the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Agriculture 
of the House of Representatives a report on the status 
of projects funded under this section, including— 
‘‘(1) funding awarded; 
‘‘(2) project results; and 
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‘‘(3) incorporation of project findings, such as 
new technology and innovative approaches, into the 
conservation efforts implemented by the Secretary.’’. 
SEC. 2207. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
subtitle shall take effect on October 1, 2013. 
(b) EFFECT ON EXISTING CONTRACTS.—The amend-
ments made by this subtitle shall not affect the validity 
or terms of any contract entered into by the Secretary of 
Agriculture under chapter 4 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 
before October 1, 2013, or any payments required to be 
made in connection with the contract. 
Subtitle D—Agricultural 
Conservation Easement Program 
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT 
PROGRAM. 
(a) ESTABLISHMENT.—Title XII of the Food Secu-
rity Act of 1985 is amended by adding at the end the fol-
lowing new subtitle: 
‘‘Subtitle H—Agricultural 
Conservation Easement Program 
‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an agricultural conservation easement program for the 
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conservation of eligible land and natural resources through 
easements or other interests in land. 
‘‘(b) PURPOSES.—The purposes of the program are 
to— 
‘‘(1) combine the purposes and coordinate the 
functions of the wetlands reserve program estab-
lished under section 1237, the grassland reserve pro-
gram established under section 1238N, and the 
farmland protection program established under sec-
tion 1238I, as such sections were in effect on Sep-
tember 30, 2013; 
‘‘(2) restore, protect, and enhance wetlands on 
eligible land; 
‘‘(3) protect the agricultural use and related 
conservation values of eligible land by limiting non-
agricultural uses of that land; and 
‘‘(4) protect grazing uses and related conserva-
tion values by restoring and conserving eligible land. 
‘‘SEC. 1265A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) AGRICULTURAL
LAND
EASEMENT.—The 
term ‘agricultural land easement’ means an ease-
ment or other interest in eligible land that— 
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‘‘(A) is conveyed for the purpose of pro-
tecting natural resources and the agricultural 
nature of the land; and 
‘‘(B) permits the landowner the right to 
continue agricultural production and related 
uses subject to an agricultural land easement 
plan, as approved by the Secretary. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) an agency of State or local govern-
ment or an Indian tribe (including a farmland 
protection board or land resource council estab-
lished under State law); or 
‘‘(B) an organization that is— 
‘‘(i) organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of 
the conservation purposes specified in 
clause (i), (ii), (iii), or (iv) of section 
170(h)(4)(A) of the Internal Revenue Code 
of 1986; 
‘‘(ii) an organization described in sec-
tion 501(c)(3) of that Code that is exempt 
from taxation under section 501(a) of that 
Code; or 
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