H. R. 2419—23 
end of the applicable marketing year for the covered com-
modity. 
(4) AMOUNT OF PARTIAL PAYMENT.— 
(A) FIRST
PARTIAL
PAYMENT.—For each of the 2008 
through 2010 crops of a covered commodity, the first partial 
payment under paragraph (3) to the producers on a farm 
may not exceed 40 percent of the projected counter-cyclical 
payment for the covered commodity for the crop year, as 
determined by the Secretary. 
(B) FINAL PAYMENT.—The final payment for a covered 
commodity for a crop year shall be equal to the difference 
between— 
(i) the actual counter-cyclical payment to be made 
to the producers for the covered commodity for that 
crop year; and 
(ii) the amount of the partial payment made to 
the producers under subparagraph (A). 
(5) REPAYMENT.—The producers on a farm that receive 
a partial payment under this subsection for a crop year shall 
repay to the Secretary the amount, if any, by which the total 
of the partial payments exceed the actual counter-cyclical pay-
ment to be made for the covered commodity for that crop 
year. 
SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM. 
(a) AVAILABILITY AND ELECTION OF ALTERNATIVE APPROACH.— 
(1) AVAILABILITY OF AVERAGE CROP REVENUE ELECTION PAY-
MENTS.—As an alternative to receiving counter-cyclical pay-
ments under section 1104 or 1304 and in exchange for a 20- 
percent reduction in direct payments under section 1103 or 
1303 and a 30-percent reduction in marketing assistance loan 
rates under section 1202 or 1307, with respect to all covered 
commodities and peanuts on a farm, during each of the 2009, 
2010, 2011, and 2012 crop years, the Secretary shall give the 
producers on the farm an opportunity to make an irrevocable 
election to instead receive average crop revenue election 
(referred to in this section as ‘‘ACRE’’) payments under this 
section for the initial crop year for which the election is made 
through the 2012 crop year. 
(2) LIMITATION.— 
(A) IN GENERAL.—The total number of planted acres 
for which the producers on a farm may receive ACRE 
payments under this section may not exceed the total base 
acreage for all covered commodities and peanuts on the 
farm. 
(B) ELECTION.—If the total number of planted acres 
to all covered commodities and peanuts of the producers 
on a farm exceeds the total base acreage of the farm, 
the producers on the farm may choose which planted acres 
to enroll in the program under this section. 
(3) ELECTION; TIME FOR ELECTION.— 
(A) IN GENERAL.—The Secretary shall provide notice 
to producers regarding the opportunity to make each of 
the elections described in paragraph (1). 
(B) NOTICE REQUIREMENTS.—The notice shall include— 
(i) notice of the opportunity of the producers on 
a farm to make the election; and
H. R. 2419—24 
(ii) information regarding the manner in which 
the election must be made and the time periods and 
manner in which notice of the election must be sub-
mitted to the Secretary. 
(4) ELECTION DEADLINE.—Within the time period and in 
the manner prescribed pursuant to paragraph (3), all of the 
producers on a farm shall submit to the Secretary notice of 
an election made under paragraph (1). 
(5) EFFECT OF FAILURE TO MAKE ELECTION.—If all of the 
producers on a farm fail to make an election under paragraph 
(1), make different elections under paragraph (1), or fail to 
timely notify the Secretary of the election made, as required 
by paragraph (4), all of the producers on the farm shall be 
deemed to have made the election to receive counter-cyclical 
payments under section 1104 or 1304 for all covered commod-
ities and peanuts on the farm, and to otherwise not have 
made the election described in paragraph (1), for the applicable 
crop years. 
(b) PAYMENTS REQUIRED.— 
(1) IN GENERAL.—In the case of producers on a farm who 
make an election under subsection (a) to receive ACRE pay-
ments for any of the 2009 through 2012 crop years for all 
covered commodities and peanuts, the Secretary shall make 
ACRE payments available to the producers on a farm in accord-
ance with this subsection. 
(2) ACRE PAYMENT.— 
(A) IN GENERAL.—Subject to paragraph (3), in the case 
of producers on a farm described in paragraph (1), the 
Secretary shall make ACRE payments available to the 
producers on a farm for each crop year if— 
(i) the actual State revenue for the crop year for 
the covered commodity or peanuts in the State deter-
mined under subsection (c); is less than 
(ii) the ACRE program guarantee for the crop year 
for the covered commodity or peanuts in the State 
determined under subsection (d). 
(B) INDIVIDUAL LOSS.—The Secretary shall make ACRE 
payments available to the producers on a farm in a State 
for a crop year only if (as determined by the Secretary)— 
(i) the actual farm revenue for the crop year for 
the covered commodity or peanuts, as determined 
under subsection (e); is less than 
(ii) the farm ACRE benchmark revenue for the 
crop year for the covered commodity or peanuts, as 
determined under subsection (f). 
(3) TIME FOR PAYMENTS.—In the case of each of the 2009 
through 2012 crop years, the Secretary shall make ACRE pay-
ments beginning October 1, or as soon as practicable thereafter, 
after the end of the applicable marketing year for the covered 
commodity or peanuts. 
(c) ACTUAL STATE REVENUE.— 
(1) IN GENERAL.—For purposes of subsection (b)(2)(A), the 
amount of the actual State revenue for a crop year of a covered 
commodity or peanuts shall equal the product obtained by 
multiplying—
H. R. 2419—25 
(A) the actual State yield for each planted acre for 
the crop year for the covered commodity or peanuts deter-
mined under paragraph (2); and 
(B) the national average market price for the crop 
year for the covered commodity or peanuts determined 
under paragraph (3). 
(2) ACTUAL STATE YIELD.—For purposes of paragraph (1)(A), 
the actual State yield for each planted acre for a crop year 
for a covered commodity or peanuts in a State shall equal 
(as determined by the Secretary)— 
(A) the quantity of the covered commodity or peanuts 
that is produced in the State during the crop year; divided 
by 
(B) the number of acres that are planted to the covered 
commodity or peanuts in the State during the crop year. 
(3) NATIONAL
AVERAGE
MARKET
PRICE.—For purposes of 
paragraph (1)(B), the national average market price for a crop 
year for a covered commodity or peanuts in a State shall 
equal the greater of— 
(A) the national average market price received by pro-
ducers during the 12-month marketing year for the covered 
commodity or peanuts, as determined by the Secretary; 
or 
(B) the marketing assistance loan rate for the covered 
commodity or peanuts under section 1202 or 1307, as 
reduced under subsection (a)(1). 
(d) ACRE PROGRAM GUARANTEE.— 
(1) AMOUNT.— 
(A) IN GENERAL.—For purposes of subsection (b)(2)(A) 
and subject to subparagraph (B), the ACRE program guar-
antee for a crop year for a covered commodity or peanuts 
in a State shall equal 90 percent of the product obtained 
by multiplying— 
(i) the benchmark State yield for each planted 
acre for the crop year for the covered commodity or 
peanuts in a State determined under paragraph (2); 
and 
(ii) the ACRE program guarantee price for the 
crop year for the covered commodity or peanuts deter-
mined under paragraph (3). 
(B) MINIMUM AND MAXIMUM GUARANTEE.—In the case 
of each of the 2010 through 2012 crop years, the ACRE 
program guarantee for a crop year for a covered commodity 
or peanuts under subparagraph (A) shall not decrease or 
increase more than 10 percent from the guarantee for 
the preceding crop year. 
(2) BENCHMARK STATE YIELD.— 
(A) IN GENERAL.—For purposes of paragraph (1)(A)(i), 
subject to subparagraph (B), the benchmark State yield 
for each planted acre for a crop year for a covered com-
modity or peanuts in a State shall equal the average yield 
per planted acre for the covered commodity or peanuts 
in the State for the most recent 5 crop year yields, excluding 
each of the crop years with the highest and lowest yields, 
using National Agricultural Statistics Service data. 
(B) ASSIGNED YIELD.—If the Secretary cannot establish 
the benchmark State yield for each planted acre for a
H. R. 2419—26 
crop year for a covered commodity or peanuts in a State 
in accordance with subparagraph (A) or if the yield deter-
mined under subparagraph (A) is an unrepresentative aver-
age yield for the State (as determined by the Secretary), 
the Secretary shall assign a benchmark State yield for 
each planted acre for the crop year for the covered com-
modity or peanuts in the State on the basis of— 
(i) previous average yields for a period of 5 crop 
years, excluding each of the crop years with the highest 
and lowest yields; or 
(ii) benchmark State yields for planted acres for 
the crop year for the covered commodity or peanuts 
in similar States. 
(3) ACRE PROGRAM GUARANTEE PRICE.—For purposes of 
paragraph (1)(A)(ii), the ACRE program guarantee price for 
a crop year for a covered commodity or peanuts in a State 
shall be the simple average of the national average market 
price received by producers of the covered commodity or peanuts 
for the most recent 2 crop years, as determined by the Sec-
retary. 
(4) STATES WITH IRRIGATED AND NONIRRIGATED LAND.—In 
the case of a State in which at least 25 percent of the acreage 
planted to a covered commodity or peanuts in the State is 
irrigated and at least 25 percent of the acreage planted to 
the covered commodity or peanuts in the State is not irrigated, 
the Secretary shall calculate a separate ACRE program guar-
antee for the irrigated and nonirrigated areas of the State 
for the covered commodity or peanuts. 
(e) ACTUAL
FARM
REVENUE.—For purposes of subsection 
(b)(2)(B)(i), the amount of the actual farm revenue for a crop year 
for a covered commodity or peanuts shall equal the amount deter-
mined by multiplying— 
(1) the actual yield for the covered commodity or peanuts 
of the producers on the farm; and 
(2) the national average market price for the crop year 
for the covered commodity or peanuts determined under sub-
section (c)(3). 
(f) FARM ACRE BENCHMARK REVENUE.—For purposes of sub-
section (b)(2)(B)(ii), the farm ACRE benchmark revenue for the 
crop year for a covered commodity or peanuts shall equal the 
sum obtained by adding— 
(1) the amount determined by multiplying— 
(A) the average yield per planted acre for the covered 
commodity or peanuts of the producers on the farm for 
the most recent 5 crop years, excluding each of the crop 
years with the highest and lowest yields; and 
(B) the ACRE program guarantee price for the 
applicable crop year for the covered commodity or peanuts 
in a State determined under subsection (d)(3); and 
(2) the amount of the per acre crop insurance premium 
required to be paid by the producers on the farm for the 
applicable crop year for the covered commodity or peanuts 
on the farm. 
(g) PAYMENT AMOUNT.—If ACRE payments are required to 
be paid for any of the 2009 through 2012 crop years of a covered 
commodity or peanuts under this section, the amount of the ACRE 
payment to be paid to the producers on the farm for the crop
H. R. 2419—27 
year under this section shall be equal to the product obtained 
by multiplying— 
(1) the lesser of— 
(A) the difference between— 
(i) the ACRE program guarantee for the crop year 
for the covered commodity or peanuts in the State 
determined under subsection (d); and 
(ii) the actual State revenue from the crop year 
for the covered commodity or peanuts in the State 
determined under subsection (c); and 
(B) 25 percent of the ACRE program guarantee for 
the crop year for the covered commodity or peanuts in 
the State determined under subsection (d); 
(2)(A) for each of the 2009 through 2011 crop years, 83.3 
percent of the acreage planted or considered planted to the 
covered commodity or peanuts for harvest on the farm in the 
crop year; and 
(B) for the 2012 crop year, 85 percent of the acreage planted 
or considered planted to the covered commodity or peanuts 
for harvest on the farm in the crop year; and 
(3) the quotient obtained by dividing— 
(A) the average yield per planted acre for the covered 
commodity or peanuts of the producers on the farm for 
the most recent 5 crop years, excluding each of the crop 
years with the highest and lowest yields; by 
(B) the benchmark State yield for the crop year, as 
determined under subsection (d)(2). 
SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDITION OF 
PROVISION OF PAYMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a farm may 
receive direct payments, counter-cyclical payments, or average 
crop revenue election payments with respect to the farm, the 
producers shall agree, during the crop year for which the pay-
ments are made and in exchange for the payments— 
(A) to 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.); 
(B) to comply with applicable wetland protection 
requirements under subtitle C of title XII of that Act (16 
U.S.C. 3821 et seq.); 
(C) to comply with the planting flexibility requirements 
of section 1107; 
(D) to use the land on the farm, in a quantity equal 
to the attributable base acres for the farm and any base 
acres for peanuts for the farm under subtitle C, for an 
agricultural or conserving use, and not for a non-
agricultural commercial, industrial, or residential use, as 
determined by the Secretary; and 
(E) to effectively control noxious weeds and otherwise 
maintain the land in accordance with sound agricultural 
practices, as determined by the Secretary, if the agricul-
tural or conserving use involves the noncultivation of any 
portion of the land referred to in subparagraph (D).