† HR 2642 EAS 
of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 8711(a)(1)(D)). 
(iii) The producer has any acreage not 
cropped during the 2009 through 2012 crop 
years, but placed into an established rota-
tion practice for the purposes of enriching 
land or conserving moisture for subsequent 
crop years, including summer fallow, as de-
termined by the Secretary. 
(D) EXCLUSION.—The term ‘‘eligible acres’’ 
does not include any crop subsequently planted 
during the same crop year on the same land for 
which the first crop is eligible for payments 
under this subtitle, unless the crop was planted 
in an area approved for double cropping, as de-
termined by the Secretary. 
(10) EXTRA LONG STAPLE COTTON.—The term 
‘‘extra long staple cotton’’ means cotton that— 
(A) is produced from pure strain varieties 
of the Barbadense species or any hybrid of the 
species, or other similar types of extra long sta-
ple cotton, designated by the Secretary, having 
characteristics needed for various end uses for 
which United States upland cotton is not suit-
able and grown in irrigated cotton-growing re-
† HR 2642 EAS 
gions of the United States designated by the Sec-
retary or other areas designated by the Secretary 
as suitable for the production of the varieties or 
types; and 
(B) is ginned on a roller-type gin or, if au-
thorized by the Secretary, ginned on another 
type gin for experimental purposes. 
(11) INDIVIDUAL
COVERAGE.—For purposes of 
agriculture risk coverage under section 1108, the term 
‘‘individual coverage’’ means coverage determined 
using the total quantity of all acreage in a county of 
the covered commodity that is planted or prevented 
from being planted for harvest by a producer with the 
yield determined by the average individual yield of 
the producer described in subsection (c) of that sec-
tion. 
(12) MEDIUM GRAIN RICE.—The term ‘‘medium 
grain rice’’ includes short grain rice. 
(13) OTHER OILSEED.—The term ‘‘other oilseed’’ 
means a crop of sunflower seed, rapeseed, canola, saf-
flower, flaxseed, mustard seed, crambe, sesame seed, or 
any oilseed designated by the Secretary. 
(14) PAYMENT
ACRES.—The term ‘‘payment 
acres’’ means, in the case of adverse market pay-
ments, 85 percent of the base acres for a covered com-
† HR 2642 EAS 
modity on a farm on which adverse market payments 
are made. 
(15) PAYMENT
YIELD.—The term ‘‘payment 
yield’’ means the yield established for adverse market 
payments under section 1102 or 1302 of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 
7912, 7952) as in effect on the date of enactment of 
this Act, or under section 1106 of this Act, for a farm 
for a covered commodity. 
(16) PRODUCER.— 
(A) IN
GENERAL.—The term ‘‘producer’’ 
means an owner, operator, landlord, tenant, or 
sharecropper that shares in the risk of producing 
a crop and is entitled to share in the crop avail-
able for marketing from the farm, or would have 
shared had the crop been produced. 
(B) HYBRID SEED.—In determining wheth-
er a grower of hybrid seed is a producer, the Sec-
retary shall— 
(i) not take into consideration the ex-
istence of a hybrid seed contract; and 
(ii) ensure that program requirements 
do not adversely affect the ability of the 
grower to receive a payment under this 
title.
† HR 2642 EAS 
(17) PULSE
CROP.—The term ‘‘pulse crop’’ 
means dry peas, lentils, small chickpeas, and large 
chickpeas. 
(18) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; and 
(D) any other territory or possession of the 
United States. 
(19) REFERENCE
PRICE.—The term ‘‘reference 
price’’ means the price per bushel, pound, or hundred-
weight (or other appropriate unit) of a covered com-
modity used to determine the payment rate for ad-
verse market payments. 
(20) TRANSITIONAL YIELD.—The term ‘‘transi-
tional yield’’ has the meaning given the term in sec-
tion 502(b) of the Federal Crop Insurance Act (7 
U.S.C. 1502(b)). 
(21) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, when used in a geographical sense, means all 
of the States. 
(22) UNITED
STATES
PREMIUM
FACTOR.—The 
term ‘‘United States Premium Factor’’ means the 
percentage by which the difference in the United 
States loan schedule premiums for Strict Middling
† HR 2642 EAS 
(SM) 11⁄8-inch upland cotton and for Middling (M) 
13⁄32-inch upland cotton exceeds the difference in the 
applicable premiums for comparable international 
qualities. 
SEC. 1105. BASE ACRES. 
(a) ADJUSTMENT OF BASE ACRES.— 
(1) IN GENERAL.—The Secretary shall provide 
for an adjustment, as appropriate, in the base acres 
for covered commodities for a farm whenever any of 
the following circumstances occurs: 
(A) A conservation reserve contract entered 
into under section 1231 of the Food Security Act 
of 1985 (16 U.S.C. 3831) with respect to the 
farm expires or is voluntarily terminated, or was 
terminated or expired during the period begin-
ning on October 1, 2012, and ending on the date 
of enactment of this Act. 
(B) Cropland is released from coverage 
under a conservation reserve contract by the Sec-
retary, or was released during the period begin-
ning on October 1, 2012, and ending on the date 
of enactment of this Act. 
(C) The producer has eligible pulse crop 
acreage, which shall be determined in the same 
manner as eligible oilseed acreage under section
† HR 2642 EAS 
1101(a)(2) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(D) The producer has eligible oilseed acre-
age as the result of the Secretary designating ad-
ditional oilseeds, which shall be determined in 
the same manner as eligible oilseed acreage 
under section 1101(a)(2) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 
7911(a)(2)). 
(2) SPECIAL CONSERVATION RESERVE ACREAGE 
PAYMENT RULES.—For the crop year in which a base 
acres adjustment under subparagraph (A) or (B) of 
paragraph (1) is first made, the producer on the farm 
shall elect to receive either adverse market payments 
with respect to the acreage added to the farm under 
this subsection or a prorated payment under the con-
servation reserve contract, but not both. 
(3) OPTIONAL ADJUSTMENT.— 
(A) ELECTION.— 
(i) IN GENERAL.—For the purpose of 
making adverse market payments, the Sec-
retary shall give a producer on a farm a 1- 
time opportunity to adjust the peanut base 
acres on the farm.
† HR 2642 EAS 
(ii) NOTICE.—As soon as practicable 
after the date of enactment of this Act, the 
Secretary shall provide notice of the election 
described in clause (i) to producers on 
farms with peanut base acres, including— 
(I) the manner in which the elec-
tion is to be transmitted to the Sec-
retary; 
(II) a deadline for transmission; 
and 
(III) notification that the election 
is a 1-time opportunity. 
(iii) EFFECT
OF
FAILURE
TO
MAKE 
ELECTION.—If the producer on a farm fails 
to notify the Secretary of an election by the 
deadline described in clause (ii), the pro-
ducer shall be considered to have not elected 
to update the peanut base acres on the farm. 
(B) CALCULATION.— 
(i) IN GENERAL.—If the producer on a 
farm makes the election described in sub-
paragraph (A), the base acres for peanuts 
on the farm established pursuant to section 
1302 of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 7952) shall
† HR 2642 EAS 
be equal to the average acreage planted on 
the farm to peanuts for harvest or similar 
purposes for the 2009 through 2012 crop 
years, as determined by the Secretary. 
(ii) INCLUSIONS.—In making the cal-
culation described in clause (i), the Sec-
retary shall include— 
(I) any acreage on the farm that 
the producer was prevented from plant-
ing to peanuts during the 2009 
through 2012 crop years because of 
drought, flood, or other natural dis-
aster, or other condition beyond the 
control of the producer; 
(II) any crop year in which pea-
nuts were not planted on the farm; and 
(III) any adjustment, as appro-
priate, whenever either of the following 
occurs: 
(aa) A conservation reserve 
contract entered into under sec-
tion 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) with 
respect to the peanut base acres on
† HR 2642 EAS 
the farm expires or is voluntarily 
terminated. 
(bb) Peanut cropland is re-
leased from coverage under a con-
servation reserve contract by the 
Secretary. 
(C) LIMIT.— 
(i) IN GENERAL.—If the producer on a 
farm makes the election described in sub-
paragraph (A), the Secretary shall ensure 
that the adjustment does not result in a net 
increase in the total base acres for the farm 
(including the upland cotton base acres de-
scribed in subsection (e)). 
(ii) REDUCTION REQUIRED.—If the ad-
justment in base acres made pursuant to an 
election described in subparagraph (A) re-
sults in a net increase in the total base 
acres of all covered commodities and upland 
cotton on the farm, the Secretary shall re-
duce the base acres on the farm for all cov-
ered commodities (other than peanuts) and 
upland cotton proportionately, as deter-
mined by the Secretary. 
(b) PREVENTION OF EXCESS BASE ACRES.—
† HR 2642 EAS 
(1) REQUIRED REDUCTION.—If the sum of the 
base acres for a farm, together with the acreage de-
scribed in paragraph (2), exceeds the actual cropland 
acreage of the farm, the Secretary shall reduce the 
base acres for 1 or more covered commodities for the 
farm so that the sum of the base acres and acreage 
described in paragraph (2) does not exceed the actual 
cropland acreage of the farm. 
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following: 
(A) Any acreage on the farm enrolled in the 
conservation reserve program or agricultural 
conservation easement program under subchapter 
B of chapter 1 of subtitle D and subtitle H, re-
spectively, of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3831 et seq.). 
(B) Any other acreage on the farm enrolled 
in a Federal conservation program for which 
payments are made in exchange for not pro-
ducing an agricultural commodity on the acre-
age. 
(C) Any eligible pulse crop acreage, which 
shall be determined in the same manner as eligi-
ble oilseed acreage under section 1101(a)(2) of
† HR 2642 EAS 
the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7911(a)(2)). 
(D) If the Secretary designates additional 
oilseeds, any eligible oilseed acreage, which shall 
be determined in the same manner as eligible oil-
seed acreage under section 1101(a)(2) of the 
Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7911(a)(2)). 
(3) SELECTION OF ACRES.—The Secretary shall 
give the producer on the farm the opportunity to se-
lect the base acres for a covered commodity for the 
farm against which the reduction required by para-
graph (1) will be made. 
(4) EXCEPTION
FOR
DOUBLE-CROPPED
ACRE-
AGE.—In applying paragraph (1), the Secretary shall 
make an exception in the case of double cropping, as 
determined by the Secretary. 
(c) REDUCTION IN BASE ACRES.— 
(1) REDUCTION AT OPTION OF PRODUCER.— 
(A) IN GENERAL.—The producer on a farm 
may reduce, at any time, the base acres for any 
covered commodity for the farm. 
(B) EFFECT OF REDUCTION.—A reduction 
under subparagraph (A) shall be permanent and 
made in a manner prescribed by the Secretary.
† HR 2642 EAS 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN GENERAL.—The Secretary shall pro-
portionately reduce base acres on a farm for cov-
ered commodities for land that has been sub-
divided and developed for multiple residential 
units or other nonfarming uses if the size of the 
tracts and the density of the subdivision is such 
that the land is unlikely to return to the pre-
vious agricultural use, unless the producers on 
the farm demonstrate that the land— 
(i) remains devoted to commercial ag-
ricultural production; or 
(ii) is likely to be returned to the pre-
vious agricultural use. 
(B) REQUIREMENT.—The Secretary shall 
establish procedures to identify land described in 
subparagraph (A). 
(3) REVIEW AND REPORT.—Each year, to ensure, 
to the maximum extent practicable, that payments 
are received only by producers, the Secretary shall 
submit to Congress a report that describes the results 
of the actions taken under paragraph (2). 
(d) TREATMENT
OF FARMS WITH LIMITED BASE 
ACRES.—
† HR 2642 EAS 
(1) PROHIBITION ON PAYMENTS.—Except as pro-
vided in paragraph (2) and notwithstanding any 
other provision of this title, a producer on a farm 
may not receive adverse market payments if the sum 
of the base acres of the farm is 10 acres or less, as 
determined by the Secretary. 
(2) EXCEPTIONS.—Paragraph (1) shall not 
apply to a farm owned or operated by— 
(A) a socially disadvantaged farmer (as de-
fined in section 3002 of the Consolidated Farm 
and Rural Development Act); or 
(B) a limited resource farmer or rancher, as 
defined by the Secretary. 
(3) DATA COLLECTION AND PUBLICATION.—The 
Secretary shall— 
(A) collect and publish segregated data and 
survey information about farm profiles, utiliza-
tion of land, and crop production; and 
(B) perform an evaluation on the supply 
and price of fruits and vegetables based on the 
effects of suspension of base acres under this sec-
tion. 
(e) TREATMENT OF FARMS WITH UPLAND COTTON 
BASE ACRES.—The Secretary shall maintain a record of
† HR 2642 EAS 
farms with upland cotton base acres in effect on the day 
before the date of enactment of this Act. 
SEC. 1106. PAYMENT YIELDS. 
(a) DESIGNATED
OILSEED
OR
ELIGIBLE
PULSE 
CROP.— 
(1) ADJUSTMENT.—For the purpose of making 
adverse market payments under this subtitle, the Sec-
retary shall provide for the establishment of a yield 
for each farm for any designated oilseed or eligible 
pulse crop for which a payment yield was not estab-
lished under section 1102 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 7912) in ac-
cordance with this section. 
(2) PAYMENT
YIELDS
FOR
DESIGNATED
OIL-
SEEDS AND ELIGIBLE PULSE CROPS.— 
(A) DETERMINATION OF AVERAGE YIELD.— 
In the case of designated oilseeds and eligible 
pulse crops, the Secretary shall determine the av-
erage yield per planted acre for the designated 
oilseed or pulse crop on a farm for the 1998 
through 2001 crop years, excluding any crop 
year in which the acreage planted to the des-
ignated oilseed or pulse crop was zero. 
(B) ADJUSTMENT FOR PAYMENT YIELD.—
† HR 2642 EAS 
(i) IN GENERAL.—The payment yield 
for a farm for a designated oilseed or eligi-
ble pulse crop shall be equal to the product 
of the following: 
(I) The average yield for the des-
ignated oilseed or pulse crop deter-
mined under subparagraph (A). 
(II) The ratio resulting from di-
viding the national average yield for 
the designated oilseed or pulse crop for 
the 1981 through 1985 crops by the na-
tional average yield for the designated 
oilseed or pulse crop for the 1998 
through 2001 crops. 
(ii) NO NATIONAL AVERAGE YIELD IN-
FORMATION AVAILABLE.—To the extent that 
national average yield information for a 
designated oilseed or pulse crop is not avail-
able, the Secretary shall use such informa-
tion as the Secretary determines to be fair 
and equitable to establish a national aver-
age yield under this section. 
(C) USE
OF
PARTIAL
COUNTY
AVERAGE 
YIELD.—If the yield per planted acre for a crop 
of a designated oilseed or pulse crop for a farm
† HR 2642 EAS 
for any of the 1998 through 2001 crop years was 
less than 75 percent of the county yield for that 
designated oilseed or pulse crop, the Secretary 
shall assign a yield for that crop year equal to 
75 percent of the county yield for the purpose of 
determining the average under subparagraph 
(A). 
(D) NO
HISTORIC
YIELD
DATA
AVAIL-
ABLE.—In the case of establishing yields for des-
ignated oilseeds and eligible pulse crops, if his-
toric yield data is not available, the Secretary 
shall use the ratio for dry peas calculated under 
subparagraph (B)(i)(II) in determining the 
yields for designated oilseeds and eligible pulse 
crops, as determined to be fair and equitable by 
the Secretary. 
(b) RICE.— 
(1) ADJUSTMENT.—For the purpose of making 
adverse market payments under this subtitle, the Sec-
retary shall give a producer on a farm a 1-time op-
portunity to adjust the payment yield for base acres 
of rice on the farm that was established under section 
1102 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7912). 
(2) ELECTION.—
† HR 2642 EAS 
(A) NOTICE.—As soon as practicable after 
the date of enactment of this Act, the Secretary 
shall provide notice of the election described in 
paragraph (1) to producers on farms with rice 
base acres, including— 
(i) the manner in which the election is 
to be transmitted to the Secretary; 
(ii) a deadline for transmission; and 
(iii) notification that the election is a 
1-time opportunity. 
(B) EFFECT OF FAILURE TO MAKE ELEC-
TION.—If the producer on a farm fails to notify 
the Secretary of an election by the deadline de-
scribed in subparagraph (A), the producer shall 
be considered to have not elected to update the 
payment yields for base acres of rice on the farm. 
(3) CALCULATION.— 
(A) IN
GENERAL.—If the producer on a 
farm makes the election described in paragraph 
(2), the Secretary shall adjust the payment 
yields for the base acres of rice using an average 
yield described in subparagraph (B) and adjust-
ment described in subparagraph (C). 
(B) DETERMINATION OF AVERAGE YIELD.— 
Subject to subparagraph (D), the Secretary shall
† HR 2642 EAS 
determine the average yield per planted acre for 
the rice on the farm for the 2009 through 2012 
crop years, excluding any crop year in which the 
acreage planted to rice was zero. 
(C) DETERMINATION OF ADJUSTMENT.—The 
Secretary shall adjust the payment yield for the 
base acres of rice on the farm that was estab-
lished under section 1102 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 
7912) in accordance with the following: 
(i) In a case in which less than 50 per-
cent of the rice base acres on the farm were 
planted to rice, on average, during the 2009 
through 2012 crop years, the adjustment 
shall be equal to the sum obtained by add-
ing to the payment yield— 
(I) the product obtained by multi-
plying— 
(aa) the difference between 
the average yield and the payment 
yield; by 
(bb) the percent of rice plant-
ed on the base acres of rice on the 
farm, on average.
† HR 2642 EAS 
(ii) In a case in which more than 50 
percent of the rice base acres on the farm 
were planted to rice, on average, during the 
2009 through 2012 crop years, the payment 
yield shall be equal to the product obtained 
by multiplying— 
(I) the average yield; by 
(II) 90 percent. 
(D) USE
OF
PARTIAL
COUNTY
AVERAGE 
YIELD.—If the yield per planted acre for a crop 
of rice for a farm for any of the 2009 through 
2012 crop years was less than 75 percent of the 
county yield for that rice crop, the Secretary 
shall assign a yield for that crop year equal to 
75 percent of the county yield for purposes of de-
termining the average under subparagraph (B). 
(c) PEANUTS.— 
(1) ADJUSTMENT.—If the producer on a farm 
elects to adjust the peanut base acres for the farm 
pursuant to section 1105, the Secretary shall adjust 
the payment yields for the base acres of peanuts for 
purposes of making adverse market payments. 
(2) CALCULATION.—Notwithstanding the pay-
ment yields established under section 1102 of the 
Farm Security and Rural Investment Act of 2002 (7
† HR 2642 EAS 
U.S.C. 7912), the payment yield for the base acres of 
peanuts adjusted pursuant to section 1105 shall be the 
average yield per planted acre for such base acres for 
the 2009 through 2012 crop years, excluding any crop 
year in which the acreage planted to peanuts was 
zero. 
(3) USE OF PARTIAL COUNTY AVERAGE YIELD.— 
If the yield per planted acre for a crop of peanuts for 
a farm for any of the 2009 through 2012 crop years 
was less than 75 percent of the county yield for that 
peanut crop, the Secretary shall assign a yield for 
that crop year equal to 75 percent of the county yield 
for purposes of determining the average under para-
graph (2). 
SEC. 1107. AVAILABILITY OF ADVERSE MARKET PAYMENTS. 
(a) PAYMENT REQUIRED.—For each of the 2014 
through 2018 crop years for each covered commodity, the 
Secretary shall make adverse market payments to producers 
on farms for which payment yields and base acres are estab-
lished with respect to the covered commodity if the Sec-
retary determines that the actual price for the covered com-
modity is less than the reference price for the covered com-
modity. 
(b) ACTUAL PRICE.—
† HR 2642 EAS 
(1) 
COVERED
COMMODITIES
OTHER
THAN 
RICE.—Except as provided in paragraph (2), for pur-
poses of subsection (a), the actual price for a covered 
commodity is equal to the higher of the following: 
(A) The national average market price re-
ceived by producers during the 12-month mar-
keting year for the covered commodity, as deter-
mined by the Secretary. 
(B) The national average loan rate for a 
marketing assistance loan for the covered com-
modity in effect for the applicable period under 
subtitle B. 
(2) RICE.—In the case of long grain rice and 
medium grain rice, for purposes of subsection (a), the 
actual price for each type or class of rice is equal to 
the higher of the following: 
(A) The national average market price re-
ceived by producers during the 12-month mar-
keting year for the type or class of rice, as deter-
mined by the Secretary. 
(B) The national average loan rate for a 
marketing assistance loan for the type or class of 
rice in effect for the applicable period under sub-
title B.
† HR 2642 EAS 
(c) REFERENCE PRICE.—The reference price for a cov-
ered commodity shall be determined as follows: 
(1) IN GENERAL.—Subject to paragraph (2), the 
reference price for a covered commodity shall be the 
product obtained by multiplying— 
(A) 55 percent; by 
(B) the average national marketing year 
average price for the most recent 5 crop years, 
excluding each of the crop years with the highest 
and lowest prices. 
(2) ALTERNATIVE
PRICE
FOR
RICE
AND
PEA-
NUTS.—In the case of long and medium grain rice 
and peanuts, the reference price shall be— 
(A) in the case of long and medium grain 
rice, $13.30 per hundredweight; and 
(B) in the case of peanuts, $523.77 per ton. 
(d) PAYMENT RATE.—The payment rate used to make 
adverse market payments with respect to a covered com-
modity for a crop year shall be equal to the amount that— 
(1) the reference price under subsection (c) for 
the covered commodity; exceeds 
(2) the actual price determined under subsection 
(b) for the covered commodity. 
(e) PAYMENT AMOUNT.—If adverse market payments 
are required to be paid under this section for any of the
† HR 2642 EAS 
2014 through 2018 crop years of a covered commodity, the 
amount of the adverse market payment to be paid to the 
producers on a farm for that crop year shall be equal to 
the product of the following: 
(1) The payment rate specified in subsection (d). 
(2) The payment acres of the covered commodity 
on the farm. 
(3) The payment yield for the covered commodity 
for the farm. 
(f) DUTIES OF THE SECRETARY.—ln carrying out the 
calculations in subsections (b) and (c), the Secretary shall 
differentiate by type or class the national average price of— 
(1) sunflower seeds; 
(2) barley, using malting barley values; and 
(3) wheat. 
(g) TIME FOR PAYMENTS.—If the Secretary determines 
under subsection (a) that adverse market payments are re-
quired to be made under this section for the crop of a cov-
ered commodity, beginning October 1, or as soon as prac-
ticable thereafter, after the end of the applicable marketing 
year for the covered commodity, the Secretary shall make 
the adverse market payments for the crop. 
SEC. 1108. AGRICULTURE RISK COVERAGE. 
(a) PAYMENTS REQUIRED.—If the Secretary deter-
mines that payments are required under subsection (c), the
† HR 2642 EAS 
Secretary shall make payments for each covered commodity 
available to producers in accordance with this section. 
(b) COVERAGE ELECTION.— 
(1) IN GENERAL.—For the period of crop years 
2014 through 2018, the producers shall make a 1- 
time, irrevocable election to receive— 
(A) individual coverage under this section, 
as determined by the Secretary; or 
(B) in the case of a county with sufficient 
data (as determined by the Secretary), county 
coverage under this section. 
(2) EFFECT OF ELECTION.—The election made 
under paragraph (1) shall be binding on the pro-
ducers making the election, regardless of covered com-
modities planted, and applicable to all acres under 
the operational control of the producers, in a manner 
that— 
(A) acres brought under the operational 
control of the producers after the election are in-
cluded; and 
(B) acres no longer under the operational 
control of the producers after the election are no 
longer subject to the election of the producers but 
become subject to the election of the subsequent 
producers.
† HR 2642 EAS 
(3) DUTIES OF THE SECRETARY.—The Secretary 
shall ensure that producers are precluded from taking 
any action, including reconstitution, transfer, or 
other similar action, that would have the effect of al-
tering or reversing the election made under paragraph 
(1). 
(c) AGRICULTURE RISK COVERAGE.— 
(1) PAYMENTS.—The Secretary shall make agri-
culture risk coverage payments available under this 
subsection for each of the 2014 through 2018 crop 
years if the Secretary determines that— 
(A) the actual crop revenue for the crop 
year for the covered commodity; is less than 
(B) the agriculture risk coverage guarantee 
for the crop year for the covered commodity. 
(2) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that agriculture risk 
coverage payments are required to be made for the 
covered commodity, beginning October 1, or as soon 
as practicable thereafter, after the end of the applica-
ble marketing year for the covered commodity, the 
Secretary shall make the agriculture risk coverage 
payments. 
(3) ACTUAL CROP REVENUE.—The amount of the 
actual crop revenue for a crop year of a covered com-
† HR 2642 EAS 
modity shall be equal to the product obtained by mul-
tiplying— 
(A)(i) in the case of individual coverage, the 
actual average individual yield for the covered 
commodity, as determined by the Secretary; or 
(ii) in the case of county coverage, the ac-
tual average yield for the county for the covered 
commodity, as determined by the Secretary; and 
(B) the higher of— 
(i) the national average market price 
received by producers during the 12-month 
marketing year for the covered commodity, 
as determined by the Secretary; or 
(ii) if applicable, the reference price for 
the covered commodity under section 1107. 
(4) 
AGRICULTURE
RISK
COVERAGE
GUAR-
ANTEE.— 
(A) IN GENERAL.—The agriculture risk cov-
erage guarantee for a crop year for a covered 
commodity shall equal 88 percent of the bench-
mark revenue. 
(B) BENCHMARK REVENUE.— 
(i) IN GENERAL.—The benchmark rev-
enue shall be the product obtained by multi-
plying—
† HR 2642 EAS 
(I)(aa) in the case of individual 
coverage, subject to clause (ii), the av-
erage individual yield, as determined 
by the Secretary, for the most recent 5 
crop years, excluding each of the crop 
years with the highest and lowest 
yields; or 
(bb) in the case of county cov-
erage, the average county yield, as de-
termined by the Secretary, for the most 
recent 5 crop years, excluding each of 
the crop years with the highest and 
lowest yields; and 
(II) the average national mar-
keting year average price for the most 
recent 5 crop years, excluding each of 
the crop years with the highest and 
lowest prices. 
(ii) USE OF TRANSITIONAL YIELDS.—If 
the 
yield 
determined 
under 
clause 
(i)(I)(aa)— 
(I) for the 2013 crop year or any 
prior crop year, is less than 60 percent 
of the applicable transitional yield, the 
Secretary shall use 60 percent of the
† HR 2642 EAS 
applicable transitional yield for that 
crop year; and 
(II) for the 2014 crop year and 
any subsequent crop year, is less than 
65 percent of the applicable transi-
tional yield, the Secretary shall use 65 
percent of the applicable transitional 
yield for that crop year. 
(5) PAYMENT RATE.—The payment rate for each 
covered commodity shall be equal to the lesser of— 
(A) the amount that— 
(i) the agriculture risk coverage guar-
antee for the covered commodity; exceeds 
(ii) the actual crop revenue for the 
crop year of the covered commodity; or 
(B) 10 percent of the benchmark revenue for 
the crop year of the covered commodity. 
(6) PAYMENT AMOUNT.—If agriculture risk cov-
erage payments under this subsection are required to 
be paid for any of the 2014 through 2018 crop years 
of a covered commodity, the amount of the agriculture 
risk coverage payment for the crop year shall be equal 
to the product obtained by multiplying— 
(A) the payment rate under paragraph (5); 
and
† HR 2642 EAS 
(B)(i) in the case of individual coverage the 
sum of— 
(I) 65 percent of the planted eligible 
acres of the covered commodity; and 
(II) 45 percent of the eligible acres that 
were prevented from being planted to the 
covered commodity; or 
(ii) in the case of county coverage— 
(I) 80 percent of the planted eligible 
acres of the covered commodity; and 
(II) 45 percent of the eligible acres that 
were prevented from being planted to the 
covered commodity. 
(7) DUTIES OF THE SECRETARY.—In carrying 
out the program under this subsection, the Secretary 
shall— 
(A) to the maximum extent practicable, use 
all available information and analysis to check 
for anomalies in the determination of payments 
under the program; 
(B) to the maximum extent practicable, cal-
culate a separate actual crop revenue and agri-
culture risk coverage guarantee for irrigated and 
nonirrigated covered commodities;
† HR 2642 EAS 
(C) differentiate by type or class the na-
tional average price of— 
(i) sunflower seeds; 
(ii) barley, using malting barley val-
ues; and 
(iii) wheat; and 
(D) assign a yield for each acre planted or 
prevented from being planted for the crop year 
for the covered commodity on the basis of the 
yield history of representative farms in the State, 
region, or crop reporting district, as determined 
by the Secretary, if the Secretary cannot estab-
lish the yield as determined under paragraph 
(3)(A)(ii) or (4)(B)(i) or if the yield determined 
under paragraph (3)(A)(ii) or (4) is an unrepre-
sentative average yield for the covered com-
modity as determined by the Secretary. 
SEC. 1109. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION OF PROVISION OF PAYMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a 
farm may receive agriculture risk coverage payments 
or adverse market payments, the producers shall 
agree, during the crop year for which the payments 
are made and in exchange for the payments—
† HR 2642 EAS 
(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.); 
(C) to use the land on the farm for an agri-
cultural or conserving use in a quantity equal to 
the attributable eligible acres of the farm, and 
not for a nonagricultural commercial, industrial, 
or residential use, as determined by the Sec-
retary; and 
(D) to effectively control noxious weeds and 
otherwise maintain the land in accordance with 
sound agricultural practices, as determined by 
the Secretary, if the agricultural or conserving 
use involves the noncultivation of any portion of 
the land referred to in subparagraph (C). 
(2) COMPLIANCE.—The Secretary may issue such 
rules as the Secretary considers necessary to ensure 
producer compliance with the requirements of para-
graph (1). 
(3) MODIFICATION.—At the request of the trans-
feree or owner, the Secretary may modify the require-
† HR 2642 EAS 
ments of this subsection if the modifications are con-
sistent with the objectives of this subsection, as deter-
mined by the Secretary. 
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 
(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 ag-
riculture risk coverage payments or adverse mar-
ket payments are made shall result in the termi-
nation of the payments, unless the transferee or 
owner of the acreage agrees to assume all obliga-
tions under subsection (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to an 
agriculture risk coverage payment or adverse market 
payment dies, becomes incompetent, or is otherwise 
unable to receive the payment, the Secretary shall 
make the payment, in accordance with rules issued by 
the Secretary. 
(c) REPORTS.— 
(1) ACREAGE REPORTS.—As a condition on the 
receipt of any benefits under this subtitle or subtitle
† HR 2642 EAS 
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. 
(2) PRODUCTION REPORTS.—As a condition on 
the receipt of any benefits under section 1108, the 
Secretary shall require producers on a farm to submit 
to the Secretary annual production reports with re-
spect to all covered commodities produced on the 
farm. 
(3) PENALTIES.—No penalty with respect to ben-
efits under this subtitle or subtitle B shall be assessed 
against the producers on a farm for an inaccurate 
acreage or production report unless the producers on 
the farm knowingly and willfully falsified the acreage 
or production report. 
(4) DATA REPORTING.—To the maximum extent 
practicable, the Secretary shall use data reported by 
the producer pursuant to requirements under the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et seq.) to 
meet the obligations described in paragraphs (1) and 
(2), without additional submissions to the Depart-
ment. 
(d) TENANTS AND SHARECROPPERS.—In carrying out 
this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and sharecroppers.
† HR 2642 EAS 
(e) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of adverse market payments and agri-
culture risk coverage payments among the producers on a 
farm on a fair and equitable basis. 
SEC. 1110. PERIOD OF EFFECTIVENESS. 
Sections 1104 through 1109 shall be effective beginning 
with the 2014 crop year of each covered commodity through 
the 2018 crop year. 
Subtitle B—Marketing Assistance 
Loans and Loan Deficiency Pay-
ments 
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 cot-
ton, long grain rice, medium grain rice, peanuts, soybeans, 
other oilseeds, graded wool, nongraded wool, mohair, 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 farm non-
† HR 2642 EAS 
recourse marketing assistance loans for loan commod-
ities produced on the farm. 
(2) TERMS AND CONDITIONS.—The marketing as-
sistance loans shall be made under terms and condi-
tions 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 sub-
section (b) for any quantity of a loan commodity produced 
on the farm. 
(d) COMPLIANCE WITH CONSERVATION
AND WET-
LANDS REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a 
farm may receive a marketing assistance loan or any 
other payment or benefit under this subtitle, the pro-
ducers shall agree, for the crop year for which the 
payments are made and in exchange for the pay-
ments— 
(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.);
† HR 2642 EAS 
(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.); 
(C) to use the land on the farm for an agri-
cultural or conserving use in a quantity equal to 
the attributable eligible acres of the farm, and 
not for a nonagricultural commercial, industrial, 
or residential use, as determined by the Sec-
retary; and 
(D) to effectively control noxious weeds and 
otherwise maintain the land in accordance with 
sound agricultural practices, as determined by 
the Secretary, if the agricultural or conserving 
use involves the noncultivation of any portion of 
the land referred to in subparagraph (C). 
(2) COMPLIANCE.—The Secretary may issue such 
rules as the Secretary considers necessary to ensure 
producer compliance with paragraph (1). 
(3) MODIFICATION.—At the request of a trans-
feree or owner, the Secretary may modify the require-
ments of this subsection if the modifications are con-
sistent with the purposes of this subsection, as deter-
mined by the Secretary. 
(e) SPECIAL RULES FOR PEANUTS.—
† HR 2642 EAS 
(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 de-
ficiency 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.—
† HR 2642 EAS 
(A) IN GENERAL.—To ensure proper storage 
of peanuts for which a loan is made under this 
section, the Secretary shall pay handling and 
other associated costs (other than storage costs) 
incurred at the time at which the peanuts are 
placed under loan, as determined by the Sec-
retary. 
(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 co-
operative may market peanuts for which a loan is 
made under this section in any manner that conforms 
to consumer needs, including the separation of pea-
nuts by type and quality. 
(6) REIMBURSABLE AGREEMENTS AND PAYMENT 
OF ADMINISTRATIVE EXPENSES.—The Secretary may
† HR 2642 EAS 
implement any reimbursable agreements or provide 
for the payment of administrative expenses under this 
subsection only in a manner that 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 as-
sistance 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 bush-
el. 
(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 sim-
ple average of the adjusted prevailing world price for 
the 2 immediately preceding marketing years, as de-
termined by the Secretary and announced October 1 
preceding the next domestic plantings, but in no case 
less than $0.45 per pound or more than $0.52 per 
pound.
† HR 2642 EAS 
(7) In the case of extra long staple cotton, 
$0.7977 per pound. 
(8) In the case of long grain rice, $6.50 per hun-
dredweight. 
(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 hun-
dredweight for each of the following kinds of oilseeds: 
(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 hundred-
weight. 
(13) In the case of lentils, $11.28 per hundred-
weight. 
(14) In the case of small chickpeas, $7.43 per 
hundredweight.
† HR 2642 EAS 
(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 sub-
section (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 
under section 1201 for a loan commodity (other than up-
† HR 2642 EAS 
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;
† HR 2642 EAS 
(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 competi-
tively, 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 established
† HR 2642 EAS 
for the commodity under section 1202, plus interest (deter-
mined in accordance with section 163 of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)). 
(d) PREVAILING WORLD MARKET PRICE.—For pur-
poses of this section, the Secretary shall prescribe by regula-
tion— 
(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 ME-
DIUM GRAIN RICE.— 
(1) RICE.—The prevailing world market price 
for long grain rice and medium grain rice determined 
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)— 
(A) shall be adjusted to United States qual-
ity and location, with the adjustment to in-
clude—
† HR 2642 EAS 
(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 Secretary; 
and 
(B) may be further adjusted, during the pe-
riod beginning on the date of enactment of this 
Act and ending on July 31, 2019, if the Sec-
retary determines the adjustment is necessary— 
(i) to minimize potential loan forfeit-
ures; 
(ii) to minimize the accumulation of 
stocks of upland cotton by the Federal Gov-
ernment; 
(iii) to ensure that upland cotton pro-
duced in the United States can be marketed 
freely and competitively, both domestically 
and internationally; and 
(iv) to ensure an appropriate transi-
tion between current-crop and forward-crop 
price quotations, except that the Secretary 
may use forward-crop price quotations
† HR 2642 EAS 
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-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or
† HR 2642 EAS 
(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effective 
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 20 percent. 
(h) REPAYMENT RATE FOR PEANUTS.—The Secretary 
shall permit producers on a farm to repay a marketing as-
sistance loan for peanuts under subsection (a) at a rate that 
is the lesser of— 
(1) the loan rate established for peanuts under 
subsection (b), plus interest (determined in accord-
ance with section 163 of the Federal Agriculture Im-
provement 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; 
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and
† HR 2642 EAS 
(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 re-
lated infrastructure, the Secretary may modify the re-
payment rate otherwise applicable under this section 
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 PAYMENTS.— 
(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 
under section 1201 with respect to a loan commodity, 
agree to forgo obtaining the loan for the commodity
† HR 2642 EAS 
in return for loan deficiency payments under this sec-
tion. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) MARKETING ASSISTANCE LOANS.—Sub-
ject 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.—Effective 
for the 2014 through 2018 crop years, the Sec-
retary 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 
which the producers obtain a marketing assistance 
loan under section 1201. 
(c) PAYMENT RATE.—
† HR 2642 EAS 
(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 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204.
† HR 2642 EAS 
(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.— 
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 sec-
tion 1205 for wheat, barley, or oats, but that elects to 
use acreage planted to the wheat, barley, or oats for 
the grazing of livestock, the Secretary shall make a 
payment to the producer under this section if the pro-
ducer enters into an agreement with the Secretary to 
forgo any other harvesting of the wheat, barley, or 
oats on that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effective 
for the 2014 through 2018 crop years, with respect to
† HR 2642 EAS 
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 sec-
tion 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 
(ii)(I) the yield in effect for the cal-
culation of agriculture risk coverage pay-
ments under subtitle A with respect to that 
loan commodity on the farm; or
† HR 2642 EAS 
(II) in the case of a farm without a 
payment yield for that loan commodity, an 
appropriate yield established by the Sec-
retary. 
(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 
(ii)(I) the yield in effect for the cal-
culation of agriculture risk coverage pay-
ments 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
† HR 2642 EAS 
yield established by the Secretary in a man-
ner consistent with section 1102 of the 
Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8712). 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(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 period 
shall be consistent with the availability period 
for the commodity established by the Secretary 
for marketing assistance loans authorized by this 
subtitle. 
(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 sub-
section (a), to use for the grazing of livestock in lieu of any 
other harvesting of the crop shall not be eligible for an in-
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demnity under a policy or plan of insurance authorized 
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. ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON. 
(a) IN GENERAL.—Subject to subsection (b), the Sec-
retary shall, on a monthly basis, make economic 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. 
(b) VALUE OF ASSISTANCE.—Effective beginning on 
August 1, 2012, the value of the assistance provided under 
subsection (a) shall be 3 cents per pound. 
(c) ALLOWABLE PURPOSES.—Economic adjustment 
assistance under this section shall be made available only 
to domestic users of upland cotton that certify that the as-
sistance shall be used only to acquire, construct, install, 
modernize, develop, convert, or expand land, plant, build-
ings, equipment, facilities, or machinery. 
(d) REVIEW OR AUDIT.—The Secretary may conduct 
such review or audit of the records of a domestic user under
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this subsection as the Secretary determines necessary to 
carry out this subsection. 
(e) IMPROPER USE OF ASSISTANCE.—If the Secretary 
determines, after a review or audit of the records of the do-
mestic user, that economic adjustment assistance under this 
subsection was not used for the purposes specified in sub-
section (c), the domestic user shall be— 
(1) liable for the repayment of the assistance to 
the Secretary, plus interest, as determined by the Sec-
retary; and 
(2) ineligible to receive assistance under this sub-
section for a period of 1 year following the determina-
tion 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 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 cotton 
produced in the United States; and
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(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 affecting 
the competitiveness of such cotton), as determined by 
the Secretary, is below the prevailing United States 
price for a competing growth of extra long staple cot-
ton; 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 Sec-
retary, 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
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Credit Corporation to participate in the program under 
this section. 
(d) PAYMENT AMOUNT.—Payments under this section 
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 ex-
port by exporters made in the week following such a con-
secutive 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 content in 
excess of Commodity Credit Corporation standards 
for marketing assistance loans made by the Secretary 
under section 1201. 
(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—
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(B) OTHER.—The Secretary may use funds 
made available to carry out the agricultural con-
servation easement program under subtitle H of 
title XII of the Food Security Act of 1985, as 
added by section 2301, to continue to carry out 
contracts and easements referred to in paragraph 
(1) using the provisions of law and regulation 
applicable to such contracts and easements as in 
existence on September 30, 2013. 
(c) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2013. 
SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM 
VIABILITY PROGRAM. 
(a) REPEAL.—Subchapter C of chapter 2 of subtitle 
D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3838h et seq.) is repealed. 
(b) TRANSITIONAL PROVISIONS.— 
(1) EFFECT
ON
EXISTING
AGREEMENTS
AND 
EASEMENTS.—The amendment made by this section 
shall not affect the validity or terms of any agreement 
or easement entered into by the Secretary of Agri-
culture under subchapter C of chapter 2 of subtitle D 
of title XII of the Food Security Act of 1985 (16 
U.S.C. 3838h et seq.) before October 1, 2013, or any