of the acreage agrees to assume all obligations 
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 a 
price loss coverage payment or revenue loss coverage 
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) ACREAGE REPORTS.—As a condition on the receipt 
of any benefits under this subtitle or subtitle B, the Sec-
retary shall require producers on a farm to submit to the 
Secretary annual acreage reports with respect to all crop-
land on the farm. 
(d) TENANTS AND SHARECROPPERS.—In carrying out 
this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and sharecroppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of price loss coverage payments and 
revenue loss coverage payments among the producers on a 
farm on a fair and equitable basis. 
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SEC. 1109. PERIOD OF EFFECTIVENESS. 
This subtitle shall be effective beginning with the 2013 
crop year of each covered commodity through the 2017 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 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 2013 through 
2017 crops of each loan commodity, the Secretary 
shall make available to producers on a farm non-
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. 
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(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.—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 wetland 
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 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. 
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(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 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-
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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 
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 2013 
through 2017 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. 
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(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 2013 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 $0.47 per pound or more than $0.52 per 
pound. 
(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. 
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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-
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— 
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(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; 
(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 
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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 
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 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 
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(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— 
(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 
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Act and ending on July 31, 2018, 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 
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 
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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 
(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effective 
for each of the 2013 through 2017 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 Secretary 
shall permit producers on a farm to repay a marketing as-
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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 
(D) allow peanuts produced in the United 
States to be marketed freely and competitively, 
both domestically and internationally. 
(i) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT 
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. 
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(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 
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 2013 through 2017 crop years, the Sec-
retary may make loan deficiency payments 
available under this section to producers on a 
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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.— 
(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— 
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(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. 
(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. 
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SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN GENERAL.—Effective for the 2013 through 
2017 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 2013 through 2017 crop years, with respect 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 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— 
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(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 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— 
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(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 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 man-
ner consistent with section 1106(c) of this 
Act. 
(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.— 
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(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 2013 through 2017 
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-
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. SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In 
this subsection, the term ‘‘special import quota’’ 
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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, 2013, and ending 
on July 31, 2018, as provided in this subsection. 
(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, delivered to a de-
finable and significant international market, as 
determined by the Secretary, exceeds the pre-
vailing world market price, there shall imme-
diately 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 do-
mestic 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 ab-
sence of sufficient data, as estimated by the Secretary. 
(4) APPLICATION.—The quota shall apply to up-
land cotton purchased not later than 90 days after the 
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date of the Secretary’s announcement under para-
graph (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 
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 entered 
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 domestic mills at 
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the seasonally adjusted average rate of the 3 months 
immediately preceding the first special import quota 
established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
(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 Ag-
riculture are available or, in the absence of 
sufficient data, as estimated by the Sec-
retary; 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 
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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— 
(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 whenever 
the Secretary determines and announces that the av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot 
markets for a month exceeded 130 percent of the aver-
age price of the quality of cotton in the markets for 
the preceding 36 months, notwithstanding any other 
provision of law, there shall immediately 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-
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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-
riculture are available or, in the absence of suffi-
cient data, as estimated by the Secretary. 
(B) QUANTITY IF PRIOR QUOTA.—If a quota 
has been established under this subsection 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 con-
sumption calculated under subparagraph (A) or 
the quantity required to increase the supply to 
130 percent of the demand. 
(C) PREFERENTIAL TARIFF TREATMENT.— 
The quantity under a limited global import 
quota shall be considered to be an in-quota quan-
tity 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 
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(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(D) QUOTA ENTRY PERIOD.—When a quota 
is established under this subsection, cotton may 
be entered under the quota during the 90-day pe-
riod beginning on the date the quota is estab-
lished 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 economic 
adjustment assistance available to domestic users of 
upland cotton in the form of payments for all docu-
mented use of that upland cotton during the previous 
monthly period regardless of the origin of the upland 
cotton. 
(2) VALUE OF ASSISTANCE.—Effective beginning 
on August 1, 2012, the value of the assistance pro-
vided under paragraph (1) shall be 3 cents per pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made 
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available only to domestic users of upland cotton that 
certify that the assistance shall be used only to ac-
quire, construct, install, modernize, develop, convert, 
or expand land, plant, buildings, equipment, facili-
ties, or machinery. 
(4) REVIEW OR AUDIT.—The Secretary may con-
duct such review or audit of the records of a domestic 
user under this subsection as the Secretary determines 
necessary to carry out this subsection. 
(5) IMPROPER USE OF ASSISTANCE.—If the Sec-
retary determines, after a review or audit of the 
records of the domestic user, that economic adjustment 
assistance under this subsection was not used for the 
purposes specified in paragraph (3), the domestic 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 on 
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the date of enactment of this Act through July 31, 2018, 
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 
(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-
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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 
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. 
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(2) RECOURSE LOANS AVAILABLE.—For each of 
the 2013 through 2017 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 reasonable 
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 placed 
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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-mois-
ture storage facility, or to a facility maintained 
by the users of corn and grain sorghum 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 de-
termined 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 payment 
yield used to make payments under subtitle A or 
the actual yield on a field, as determined 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 2013 through 2017 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 estab-
lished for the commodity by the Secretary, plus interest (de-
termined in accordance with section 163 of the Federal Ag-
riculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—Subject to subsection 
(e), the Secretary may make appropriate adjustments in 
the loan rates for any loan commodity (other than cotton) 
for differences in grade, type, quality, location, 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 de-
termined 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 sub-
section shall not result in an increase in the national 
average loan rate for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN GENERAL.—The Secretary may make ap-
propriate adjustments in the loan rate for cotton for 
differences in quality factors. 
(2) TYPES OF ADJUSTMENTS.—Loan rate adjust-
ments 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 informa-
tion 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 artifi-
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cial splits in the calculations of the premiums or 
discounts; and 
(C) such other adjustments as the Secretary 
determines appropriate, after consultations con-
ducted 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 indus-
try. 
(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 quality 
adjustments implemented pursuant to this subsection 
and may make further adjustments to the administra-
tion of the loan program for upland cotton, by revok-
ing or revising any adjustment taken under para-
graph (2). 
(e) RICE.—The Secretary shall not make adjustments 
in the loan rates for long grain rice and medium grain 
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rice, except for differences in grade and quality (including 
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 Fed-
eral 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 2017 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 ‘‘2017’’. 
(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 ‘‘2017’’. 
(b) 
FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359bb(a)(1)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2017’’. 
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(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 insert-
ing ‘‘2017’’. 
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 hundredweight 
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. 
(4) AVERAGE FEED COST.—The term ‘‘average 
feed cost’’ means the average cost of feed used by a 
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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 his-
tory 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 Novem-
ber and December, respectively. 
(7) DAIRY PRODUCER.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the term ‘‘dairy producer’’ means an indi-
vidual or entity that directly or indirectly (as 
determined by the Secretary)— 
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(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 commensu-
rate with the share of the individual or en-
tity 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-
ducer margin protection program required by subpart 
A. 
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(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 ‘‘sta-
bilization 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 par-
ticipating 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 Virgin Islands 
of the United States, and any other territory or pos-
session of the United States. 
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SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC-
TUAL DAIRY PRODUCER MARGINS. 
(a) CALCULATION OF AVERAGE FEED COST.—The Sec-
retary 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 Secretary. 
(b) CALCULATION OF ACTUAL DAIRY PRODUCER MAR-
GINS.— 
(1) MARGIN PROTECTION PROGRAM.—For use in 
the margin protection program under subpart A, the 
Secretary shall calculate the actual dairy producer 
margin for each consecutive two-month period by sub-
tracting— 
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(A) the average feed cost for that consecutive 
two-month period, determined in accordance 
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 Secretary 
shall calculate each month the actual dairy producer 
margin for the preceding month by subtracting— 
(A) the average feed cost for that preceding 
month, determined in accordance with subsection 
(a); from 
(B) the all-milk price for that preceding 
month. 
(3) TIME FOR CALCULATIONS.—The calculations 
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 busi-
ness 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 pro-
tecting dairy producer income by paying participating 
dairy producers— 
(1) basic margin protection payments when ac-
tual dairy producer margins are less than the thresh-
old 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 sec-
tion 1414; and 
(2) if the dairy producer purchases supplemental 
margin protection under section 1415, supplemental 
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 pro-
tection and purchase supplemental margin pro-
tection; 
(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 MULTIPLE 
DAIRY
OPERATIONS.—If a dairy producer operates 
two or more dairy operations, each dairy operation 
of the producer shall require a separate registration 
to receive basic margin protection and purchase sup-
plemental margin protection. Only those dairy oper-
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ations 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 beginning 
on the date on which the dairy operation first mar-
kets 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 effec-
tive date of this subtitle, the Secretary shall publish 
a notice in the Federal Register to inform dairy pro-
ducers of the availability of retroactive basic margin 
protection and retroactive supplemental margin pro-
tection, subject to the condition that interested pro-
ducers must file a notice of intent (in such form and 
manner as the Secretary specifies in the Federal Reg-
ister 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 mar-
gin protection. 
(2) RETROACTIVE BASIC MARGIN PROTECTION.— 
(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 subsequently 
signs up for the margin protection program, the 
producer shall receive basic margin protection 
retroactive to the effective date of this subtitle. 
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(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 PRO-
TECTION.— 
(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 notice 
of intent to obtain retroactive supplemental mar-
gin protection must be filed with the Secretary 
no later than the earlier of the following: 
(i) 150 days after the date on which 
the Secretary publishes the notice in the 
Federal Register required by paragraph (1). 
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(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 protec-
tion, 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. 
(ii) The date on which the Secretary 
initiates the sign-up period for the margin 
protection program. 
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(4) NOTICE OF INTENT AND OBLIGATION TO PAR-
TICIPATE IN MARGIN PROTECTION PROGRAM.—In no 
way does filing a notice of intent under this sub-
section 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 pro-
tection or retroactive supplemental margin 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 producer 
shall pay the administrative fee annually thereafter to 
continue to participate in the margin protection pro-
gram. 
(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 
by the dairy producer in the previous calendar year, 
as follows: 
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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 ad-
minister the margin protection program and the sta-
bilization program and shall be available to the Sec-
retary, without further appropriation and until ex-
pended, 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). 
(f) RECONSTITUTION.—The Secretary shall prohibit a 
dairy producer from reconstituting a dairy operation for 
the sole purpose of the dairy producer— 
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(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 par-
ticipating 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. 
(2) CALCULATION.—Except as provided in para-
graph (3), the basic production history of a partici-
pating dairy producer for basic margin protection is 
equal to the highest annual milk marketings of the 
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dairy producer during any one of the three calendar 
years immediately preceding the calendar year in 
which the dairy producer first signed up to partici-
pate 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 determine 
the basic production history of the dairy producer: 
(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 produc-
tion history of a participating dairy producer is de-
termined under paragraph (2) or (3), the basic pro-
duction history shall not be subsequently changed for 
purposes of determining the amount of any basic 
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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 produc-
tion history of a participating dairy producer that 
has been in operation for less than a year. 
(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 
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(2) the production history of the dairy operation 
of the dairy producer whenever the producer pur-
chases 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 pro-
gram, the Secretary shall specify the conditions under 
which and the manner by which the production his-
tory 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 transfers 
a basic production history under this subsection 
shall not obtain a different level of basic margin 
protection than the basic margin protection cov-
erage held by the seller or lessor from whom the 
transfer was obtained. 
(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 different 
level of supplemental margin protection coverage 
than the supplemental margin protection cov-
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erage 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 HIS-
TORY.— 
(1) MOVEMENT AND TRANSFER AUTHORIZED.— 
Subject to paragraph (2), if a dairy producer moves 
from one location to another location, the dairy pro-
ducer may maintain the basic production history and 
annual production history associated with the oper-
ation. 
(2) NOTIFICATION REQUIREMENT.—A dairy pro-
ducer 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 op-
eration location vacated as described in paragraph 
(1) shall have no interest in the basic production his-
tory or annual production history previously associ-
ated 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. 
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(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 par-
ticipating dairy producer whenever such a payment 
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. 
(B) The Secretary shall multiply the 
amount under subparagraph (A) by the lesser of 
the following: 
(i) 80 percent of the production history 
of the dairy producer, divided by six. 
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(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 higher 
level of the income of a participating dairy producer than 
the income level guaranteed by basic margin protection 
under section 1414. 
(b) SELECTION OF PAYMENT THRESHOLD.—A partici-
pating dairy producer purchasing supplemental margin 
protection for a year shall elect a coverage level that is high-
er, 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. 
(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 percent, 
of the annual production history of the dairy operation of 
the participating dairy producer. 
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(d) PRODUCER PREMIUMS FOR SUPPLEMENTAL MAR-
GIN 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 pro-
ducer 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-
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 
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(3) PREMIUM PER HUNDREDWEIGHT FOR PRO-
DUCTION
IN
EXCESS
OF
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 
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-
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100 
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 protec-
tion 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 supplemental 
margin protection if the producer has terminated the 
dairy operation entirely and certifies under oath that 
the producer will not be actively engaged 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 pay-
ment whenever the average actual dairy producer margin 
for a consecutive two-month period is less than the coverage 
level threshold selected by the dairy producer under sub-
section (b). 
(g) 
SUPPLEMENTAL
MARGIN
PROTECTION
PAY-
MENTS.— 
(1) IN
GENERAL.—The supplemental margin 
protection payment for a participating dairy pro-
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101 
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 subpara-
graph (A) shall be multiplied by the percentage 
selected by the participating dairy producer 
under subsection (c) and by the lesser of the fol-
lowing: 
(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 
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102 
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 adminis-
trative fee or premiums, as the case may be; and 
(2) may not receive basic margin protection pay-
ments or supplemental margin protection payments 
until the fees or premiums are fully paid. 
(b) ENFORCEMENT.—The Secretary may take such ac-
tion as necessary to collect administrative fees and pre-
mium payments for supplemental margin protection. 
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 neg-
ative operating margins. 
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103 
(b) ELECTION
OF STABILIZATION PROGRAM BASE 
CALCULATION METHOD.— 
(1) ELECTION.—When a dairy producer signs up 
under section 1412 to participate in the margin pro-
tection program, the dairy producer shall inform the 
Secretary of the method by which the stabilization 
program base for the dairy producer for fiscal year 
2013 will be calculated under paragraph (3). 
(2) CHANGE IN CALCULATION METHOD.—A par-
ticipating dairy producer may change the stabiliza-
tion 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 Sec-
retary. 
(3) CALCULATION
METHODS.—A participating 
dairy producer may elect either of the following meth-
ods 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 announce-
ment by the Secretary that the stabilization pro-
gram will become effective. 
(B) The volume of the monthly milk mar-
ketings of the dairy producer for the same month 
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104 
in the preceding year as the month for which the 
Secretary has announced the stabilization pro-
gram will become effective. 
SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUC-
TION IN DAIRY PRODUCER PAYMENTS. 
(a) WHEN STABILIZATION PROGRAM REQUIRED.—Ex-
cept as provided in subsection (b), the Secretary shall an-
nounce that the stabilization program is in effect and order 
reduced payments for any participating dairy producer 
that exceeds the applicable percentage of the producer’s sta-
bilization 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 
(2) the actual dairy producer margin has been 
$4.00 or less per hundredweight of milk for the imme-
diately preceding month. 
(b) EXCEPTION.—The Secretary shall not make the an-
nouncement 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 dur-
ing the two months immediately preceding the month in 
which the announcement under subsection (a) would other-
wise be made by the Secretary in the absence of this excep-
tion. 
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105 
(c) EFFECTIVE DATE FOR IMPLEMENTATION OF PAY-
MENT REDUCTIONS.—Reductions in dairy producer pay-
ments shall commence beginning on the first day of the 
month immediately following the date of the announcement 
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 
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 re-
duce payments to each participating dairy producer from 
whom the handler receives milk. 
(b) REDUCTIONS BASED ON ACTUAL DAIRY PRODUCER 
MARGIN.— 
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106 
(1) REDUCTION REQUIREMENT 1.—Unless the re-
duction 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 re-
duction required by paragraph (3) applies, when the 
actual dairy producer margin has been $5.00 or 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 ac-
tual dairy producer margin has been $4.00 or less for 
any one month, the handler shall make payments to 
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107 
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 program and 
terminates payment reductions in accordance with section 
1436. 
(d) PAYMENT
REDUCTION
EXCEPTION.—Notwith-
standing any preceding subsection of this section, a handler 
shall make no payment reductions for a dairy producer 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 reductions 
are in effect under the stabilization program, each handler 
shall remit to the Secretary an amount equal to the amount 
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by which payments to participating dairy producers 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 DO-
NATIONS.—Within three months of the receipt of mon-
ies under subsection (a), the Secretary shall obligate 
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 
(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). 
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109 
(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 Agriculture of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate 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 producer 
or handler fails to remit or collect the amounts by which 
payments to participating dairy producers are reduced 
under section 1434, the producer or handler responsible 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 available 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: 
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(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 consecu-
tive months, and during the same two consecutive 
months— 
(A) the price in the United States for ched-
dar 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 consecu-
tive months, and during the same two consecutive 
months— 
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(A) the price in the United States for ched-
dar 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 ched-
dar cheese is more than 7 percent above the 
world price of cheddar cheese; or 
(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 stabiliza-
tion program shall be suspended whenever the Secretary de-
termines 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 consecu-
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112 
tive months, and during the same two consecutive 
months— 
(A) the price in the United States for ched-
dar 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 consecu-
tive months, and during the same two consecutive 
months— 
(A) the price in the United States for ched-
dar 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 ched-
dar cheese is more than 6 percent above the 
world price of cheddar cheese; or 
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113 
(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 Secretary 
under subsection (b) or (c) of the suspension of the stabiliza-
tion program, the handler shall cease reducing payments 
to participating dairy producers under the stabilization 
program. 
(e) CONDITION ON RESUMPTION OF STABILIZATION 
PROGRAM.—Upon the announcement by the Secretary 
under subsection (b) or (c) that the stabilization program 
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 viola-
tion of the this subpart for any person subject to the sta-
bilization program to willfully fail or refuse to provide, or 
delay the timely reporting of, accurate information and re-
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114 
mittance 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 con-
tinuing 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 Sec-
retary in the order shall be set aside only if the finding 
is not supported by substantial evidence. 
(d) NONCOMPLIANCE WITH ORDER.—If a person sub-
ject to this subpart fails to obey an order issued under sub-
section (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 Sec-
retary, 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. 
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115 
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 conduct 
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 subsection 
(a) to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate and include such recommenda-
tions as the Secretary considers appropriate regarding 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. 
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116 
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 pro-
grams, 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 section 
553 of title 5, United States Code. 
(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. 
SEC. 1462. DURATION. 
The margin protection program and the stabilization 
program shall end on December 31, 2017. 
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117 
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. 
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 Energy 
Act of 2008 (7 U.S.C. 8772(e)) is amended— 
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(1) in paragraph (1), by striking ‘‘2012’’ and in-
serting ‘‘2017’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and in-
serting ‘‘2020’’. 
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 ‘‘2017’’. 
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 strik-
ing ‘‘2012’’ and inserting ‘‘2017’’. 
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, 2012. 
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119 
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 agricultural 
production of crops or livestock. 
(B) DESCRIPTION.—An individual or entity 
referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien; 
(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability 
corporation, or other farm organizational 
structure organized under State law. 
(2) FARM-RAISED FISH.—The term ‘‘farm-raised 
fish’’ means any aquatic species that is propagated 
and reared in a controlled environment. 
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(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 2017, the Secretary shall use such sums 
as are necessary of the funds of the Commodity Credit 
Corporation to make livestock indemnity payments to 
eligible producers on farms that have incurred live-
stock 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 protected 
by Federal law, including wolves and avian 
predators; or 
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(B) adverse weather, as determined by the 
Secretary, during the calendar year, including 
losses due to hurricanes, floods, blizzards, disease, 
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 payments 
made to an eligible producer under paragraph (1) are 
not made for the same livestock losses for which com-
pensation is provided pursuant to section 10407(d) of 
the Animal Health Protection Act (7 U.S.C. 8306(d)). 
(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 
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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-
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 busi-
ness operation of the eligible livestock pro-
ducer, as determined by the Secretary. 
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123 
(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 de-
fined 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 les-
see, or contract grower of covered live-
stock that provides the pastureland or 
grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
(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. 
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(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 graz-
ing period, in the absence of a drought or fire 
that diminishes the production of the grazing 
land or pastureland. 
(E) NORMAL GRAZING PERIOD.—The term 
‘‘normal grazing period’’, with respect to a coun-
ty, 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 2017, the Secretary shall use such sums as 
are necessary of the funds of the Commodity Credit 
Corporation to provide compensation for losses to eli-
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125 
gible livestock producers due to grazing losses for cov-
ered 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 covered 
livestock that occur on land that— 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegetative 
cover; or 
(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
(ii) EXCLUSIONS.—An eligible livestock 
producer may not receive assistance under 
this subsection for grazing losses that occur 
on land used for haying or grazing under 
the conservation reserve program established 
under subchapter B of chapter 1 of subtitle 
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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 deter-
mined under subparagraph (C); or 
(II) the monthly feed cost cal-
culated by using the normal carrying 
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 pre-
ceding the current production year, as de-
termined by the Secretary, the payment rate 
shall be 80 percent of the payment rate oth-
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127 
erwise 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). 
(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 deter-
mined by the Secretary that represents 
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 
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128 
per pound shall equal the quotient obtained 
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- 
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. 
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129 
(II) CHANGES.—No change to the 
normal carrying capacity or normal 
grazing period established for a county 
under subclause (I) shall be made un-
less the change is requested by the ap-
propriate State and county Farm 
Service Agency committees. 
(ii) DROUGHT INTENSITY.— 
(I) D2.—An eligible livestock pro-
ducer that owns or leases grazing land 
or pastureland that is physically lo-
cated in a county that is rated by the 
U.S. Drought Monitor as having a D2 
(severe drought) intensity in any area 
of the county for at least 8 consecutive 
weeks during the normal grazing pe-
riod for the county, as determined by 
the Secretary, shall be eligible to re-
ceive assistance under this paragraph 
in an amount equal to 1 monthly pay-
ment using the monthly payment rate 
determined under subparagraph (B). 
(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
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130 
located in a county that is rated by the 
U.S. Drought Monitor as having at 
least a D3 (extreme drought) intensity 
in any area of the county at any time 
during the normal grazing period for 
the county, as determined by the Sec-
retary, shall be eligible to receive as-
sistance under this paragraph— 
(aa) in an amount equal to 2 
monthly 
payments 
using 
the 
monthly payment rate determined 
under subparagraph (B); or 
(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) intensity 
in any area of the county at any 
time during the normal grazing 
period, in an amount equal to 3 
monthly 
payments 
using 
the 
monthly payment rate determined 
under subparagraph (B). 
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131 
(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
(A) IN GENERAL.—An eligible livestock pro-
ducer may receive assistance under this para-
graph 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 graz-
ing 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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132 
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 2017, the Secretary shall use not more 
than $20,000,000 of the funds of the Commodity 
Credit Corporation to provide emergency relief to eli-
gible producers of livestock, honey bees, and farm- 
raised fish to aid in the reduction of losses due to dis-
ease (including cattle tick fever), adverse weather, or 
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133 
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 ‘‘eli-
gible orchardist’’ means a person that produces 
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-
mas trees for commercial sale, as determined by 
the Secretary. 
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134 
(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 2017, 
the Secretary shall use such sums as are nec-
essary of the funds of the Commodity Credit Cor-
poration 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 assistance 
under subparagraph (A) only if the tree mor-
tality of the eligible orchardist or nursery tree 
grower, as a result of damaging weather or re-
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135 
lated condition, exceeds 15 percent (adjusted for 
normal mortality). 
(3) ASSISTANCE.—Subject to paragraph (4), the 
assistance provided by the Secretary to eligible or-
chardists and nursery tree growers for losses described 
in paragraph (2) shall consist of— 
(A)(i) reimbursement of 65 percent of the 
cost of replanting trees lost due to a natural dis-
aster, as determined by the Secretary, in excess 
of 15 percent mortality (adjusted for normal 
mortality); or 
(ii) at the option of the Secretary, sufficient 
seedlings to reestablish a stand; and 
(B) reimbursement of 50 percent of the cost 
of pruning, removal, and other costs incurred by 
an eligible orchardist or nursery tree grower to 
salvage existing trees or, in the case of tree mor-
tality, to prepare the land to replant trees as a 
result of damage or tree mortality due to a nat-
ural disaster, as determined by the Secretary, in 
excess of 15 percent damage or mortality (ad-
justed for normal tree damage and mortality). 
(4) LIMITATIONS ON ASSISTANCE.— 
(A) DEFINITIONS
OF
LEGAL
ENTITY
AND 
PERSON.—In this paragraph, the terms ‘‘legal 
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136 
entity’’ and ‘‘person’’ have the meaning given 
those terms in section 1001(a) of the Food Secu-
rity 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 per-
son 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 sec-
tion 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 
general partnership) under this section (excluding 
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395 
Teaching Policy Act of 1977 (7 U.S.C. 3362(a)) is 
amended by striking ‘‘or noncompetitive’’. 
(2) AUTHORIZATION OF APPROPRIATIONS.—Sec-
tion 1490(f) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3362(f)) is amended by striking ‘‘section’’ and all that 
follows and inserting the following: ‘‘section— 
‘‘(1) such sums as are necessary for each of fiscal 
years 2002 through 2012; and 
‘‘(2) $2,000,000 for each of fiscal years 2013 
through 2017.’’. 
(b) RESIDENT INSTRUCTION GRANTS FOR INSULAR 
AREAS.—Section 1491(c) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 
U.S.C. 3363(c)) is amended by striking ‘‘such sums as are 
necessary’’ and all that follows and inserting the following: 
‘‘to carry out this section— 
‘‘(1) such sums as are necessary for each of fiscal 
years 2002 through 2012; and 
‘‘(2) $2,000,000 for each of fiscal years 2013 
through 2017.’’. 
SEC. 7127. MATCHING FUNDS REQUIREMENT. 
(a) IN GENERAL.—The National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 
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