H. R. 2642 
One Hundred Thirteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Friday, 
the third day of January, two thousand and fourteen 
An Act 
To provide for the reform and continuation of agricultural and other programs 
of the Department of Agriculture through fiscal year 2018, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Agricultural 
Act of 2014’’. 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definition of Secretary of Agriculture. 
TITLE I—COMMODITIES 
Subtitle A—Repeals and Reforms 
PART I—REPEALS 
Sec. 1101. Repeal of direct payments. 
Sec. 1102. Repeal of counter-cyclical payments. 
Sec. 1103. Repeal of average crop revenue election program. 
PART II—COMMODITY POLICY 
Sec. 1111. Definitions. 
Sec. 1112. Base acres. 
Sec. 1113. Payment yields. 
Sec. 1114. Payment acres. 
Sec. 1115. Producer election. 
Sec. 1116. Price loss coverage. 
Sec. 1117. Agriculture risk coverage. 
Sec. 1118. Producer agreements. 
Sec. 1119. Transition assistance for producers of upland cotton. 
Subtitle B—Marketing Loans 
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commod-
ities. 
Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 
Sec. 1203. Term of loans. 
Sec. 1204. Repayment of loans. 
Sec. 1205. Loan deficiency payments. 
Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 
Sec. 1207. Special marketing loan provisions for upland cotton. 
Sec. 1208. Special competitive provisions for extra long staple cotton. 
Sec. 1209. Availability of recourse loans for high moisture feed grains and seed cot-
ton. 
Sec. 1210. Adjustments of loans. 
Subtitle C—Sugar 
Sec. 1301. Sugar policy. 
Subtitle D—Dairy 
PART I—MARGIN PROTECTION PROGRAM FOR DAIRY PRODUCERS 
Sec. 1401. Definitions.
H. R. 2642—2 
Sec. 1402. Calculation of average feed cost and actual dairy production margins. 
Sec. 1403. Establishment of margin protection program for dairy producers. 
Sec. 1404. Participation of dairy operations in margin protection program. 
Sec. 1405. Production history of participating dairy operations. 
Sec. 1406. Margin protection payments. 
Sec. 1407. Premiums for margin protection program. 
Sec. 1408. Effect of failure to pay administrative fees or premiums. 
Sec. 1409. Duration. 
Sec. 1410. Administration and enforcement. 
PART II—REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS 
Sec. 1421. Repeal of dairy product price support program. 
Sec. 1422. Temporary continuation and eventual repeal of milk income loss con-
tract program. 
Sec. 1423. Repeal of dairy export incentive program. 
Sec. 1424. Extension of dairy forward pricing program. 
Sec. 1425. Extension of dairy indemnity program. 
Sec. 1426. Extension of dairy promotion and research program. 
Sec. 1427. Repeal of Federal Milk Marketing Order Review Commission. 
PART III—DAIRY PRODUCT DONATION PROGRAM 
Sec. 1431. Dairy product donation program. 
Subtitle E—Supplemental Agricultural Disaster Assistance Programs 
Sec. 1501. Supplemental agricultural disaster assistance. 
Subtitle F—Administration 
Sec. 1601. Administration generally. 
Sec. 1602. Suspension of permanent price support authority. 
Sec. 1603. Payment limitations. 
Sec. 1604. Rulemaking related to significant contribution for active personal man-
agement. 
Sec. 1605. Adjusted gross income limitation. 
Sec. 1606. Geographically disadvantaged farmers and ranchers. 
Sec. 1607. Personal liability of producers for deficiencies. 
Sec. 1608. Prevention of deceased individuals receiving payments under farm com-
modity programs. 
Sec. 1609. Technical corrections. 
Sec. 1610. Appeals. 
Sec. 1611. Assignment of payments. 
Sec. 1612. Tracking of benefits. 
Sec. 1613. Signature authority. 
Sec. 1614. Implementation. 
Sec. 1615. Research option. 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve Program 
Sec. 2001. Extension and enrollment requirements of conservation reserve pro-
gram. 
Sec. 2002. Farmable wetland program. 
Sec. 2003. Duties of owners and operators. 
Sec. 2004. Duties of the Secretary. 
Sec. 2005. Payments. 
Sec. 2006. Contract requirements. 
Sec. 2007. Conversion of land subject to contract to other conserving uses. 
Sec. 2008. Effect on existing contracts. 
Subtitle B—Conservation Stewardship Program 
Sec. 2101. Conservation stewardship program. 
Subtitle C—Environmental Quality Incentives Program 
Sec. 2201. Purposes. 
Sec. 2202. Definitions. 
Sec. 2203. Establishment and administration. 
Sec. 2204. Evaluation of applications. 
Sec. 2205. Duties of producers. 
Sec. 2206. Limitation on payments. 
Sec. 2207. Conservation innovation grants and payments. 
Sec. 2208. Effect on existing contracts.
H. R. 2642—3 
Subtitle D—Agricultural Conservation Easement Program 
Sec. 2301. Agricultural conservation easement program. 
Subtitle E—Regional Conservation Partnership Program 
Sec. 2401. Regional conservation partnership program. 
Subtitle F—Other Conservation Programs 
Sec. 2501. Conservation of private grazing land. 
Sec. 2502. Grassroots source water protection program. 
Sec. 2503. Voluntary public access and habitat incentive program. 
Sec. 2504. Agriculture conservation experienced services program. 
Sec. 2505. Small watershed rehabilitation program. 
Sec. 2506. Emergency watershed protection program. 
Sec. 2507. Terminal Lakes. 
Sec. 2508. Soil and Water Resources Conservation. 
Subtitle G—Funding and Administration 
Sec. 2601. Funding. 
Sec. 2602. Technical assistance. 
Sec. 2603. Regional equity. 
Sec. 2604. Reservation of funds to provide assistance to certain farmers or ranchers 
for conservation access. 
Sec. 2605. Annual report on program enrollments and assistance. 
Sec. 2606. Administrative requirements applicable to all conservation programs. 
Sec. 2607. Standards for State technical committees. 
Sec. 2608. Rulemaking authority. 
Sec. 2609. Wetlands mitigation. 
Sec. 2610. Lesser prairie-chicken conservation report. 
Sec. 2611. Highly erodible land and wetland conservation for crop insurance. 
Subtitle H—Repeal of Superseded Program Authorities and Transitional Provisions; 
Technical Amendments 
Sec. 2701. Comprehensive conservation enhancement program. 
Sec. 2702. Emergency forestry conservation reserve program. 
Sec. 2703. Wetlands reserve program. 
Sec. 2704. Farmland protection program and farm viability program. 
Sec. 2705. Grassland reserve program. 
Sec. 2706. Agricultural water enhancement program. 
Sec. 2707. Wildlife habitat incentive program. 
Sec. 2708. Great Lakes basin program. 
Sec. 2709. Chesapeake Bay watershed program. 
Sec. 2710. Cooperative conservation partnership initiative. 
Sec. 2711. Environmental easement program. 
Sec. 2712. Temporary administration of conservation programs. 
Sec. 2713. Technical amendments. 
TITLE III—TRADE 
Subtitle A—Food for Peace Act 
Sec. 3001. General authority. 
Sec. 3002. Set-aside for support for organizations through which nonemergency as-
sistance is provided. 
Sec. 3003. Food aid quality. 
Sec. 3004. Minimum levels of assistance. 
Sec. 3005. Food Aid Consultative Group. 
Sec. 3006. Oversight, monitoring, and evaluation. 
Sec. 3007. Assistance for stockpiling and rapid transportation, delivery, and dis-
tribution of shelf-stable prepackaged foods. 
Sec. 3008. Impact on local farmers and economy and report on use of funds. 
Sec. 3009. Prepositioning of agricultural commodities. 
Sec. 3010. Annual report regarding food aid programs and activities. 
Sec. 3011. Deadline for agreements to finance sales or to provide other assistance. 
Sec. 3012. Minimum level of nonemergency food assistance. 
Sec. 3013. Micronutrient fortification programs. 
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. 
Sec. 3015. Coordination of foreign assistance programs report. 
Subtitle B—Agricultural Trade Act of 1978 
Sec. 3101. Export credit guarantee program. 
Sec. 3102. Funding for market access program.
H. R. 2642—4 
Sec. 3103. Foreign market development cooperator program. 
Subtitle C—Other Agricultural Trade Laws 
Sec. 3201. Food for Progress Act of 1985. 
Sec. 3202. Bill Emerson Humanitarian Trust Act. 
Sec. 3203. Promotion of agricultural exports to emerging markets. 
Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition 
Program. 
Sec. 3205. Technical assistance for specialty crops. 
Sec. 3206. Global Crop Diversity Trust. 
Sec. 3207. Local and regional food aid procurement projects. 
Sec. 3208. Under Secretary of Agriculture for Trade and Foreign Agricultural Af-
fairs. 
TITLE IV—NUTRITION 
Subtitle A—Supplemental Nutrition Assistance Program 
Sec. 4001. Preventing payment of cash to recipients of supplemental nutrition as-
sistance benefits for the return of empty bottles and cans used to con-
tain food purchased with benefits provided under the program. 
Sec. 4002. Retail food stores. 
Sec. 4003. Enhancing services to elderly and disabled supplemental nutrition as-
sistance program participants. 
Sec. 4004. Food distribution program on Indian reservations. 
Sec. 4005. Exclusion of medical marijuana from excess medical expense deduction. 
Sec. 4006. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 4007. Eligibility disqualifications. 
Sec. 4008. Eligibility disqualifications for certain convicted felons. 
Sec. 4009. Ending supplemental nutrition assistance program benefits for lottery or 
gambling winners. 
Sec. 4010. Improving security of food assistance. 
Sec. 4011. Technology modernization for retail food stores. 
Sec. 4012. Use of benefits for purchase of community-supported agriculture share. 
Sec. 4013. Improved wage verification using the National Directory of New Hires. 
Sec. 4014. Restaurant meals program. 
Sec. 4015. Mandating State immigration verification. 
Sec. 4016. Data exchange standardization for improved interoperability. 
Sec. 4017. Pilot projects to improve Federal-State cooperation in identifying and re-
ducing fraud in the supplemental nutrition assistance program. 
Sec. 4018. Prohibiting government-sponsored recruitment activities. 
Sec. 4019. Tolerance level for excluding small errors. 
Sec. 4020. Quality control standards. 
Sec. 4021. Performance bonus payments. 
Sec. 4022. Pilot projects to reduce dependency and increase work requirements and 
work effort under supplemental nutrition assistance program. 
Sec. 4023. Cooperation with program research and evaluation. 
Sec. 4024. Authorization of appropriations. 
Sec. 4025. Review, report, and regulation of cash nutrition assistance program ben-
efits provided in Puerto Rico. 
Sec. 4026. Assistance for community food projects. 
Sec. 4027. Emergency food assistance. 
Sec. 4028. Nutrition education. 
Sec. 4029. Retail food store and recipient trafficking. 
Sec. 4030. Technical and conforming amendments. 
Sec. 4031. Commonwealth of the Northern Mariana Islands pilot program. 
Sec. 4032. Annual State report on verification of SNAP participation. 
Sec. 4033. Service of traditional foods in public facilities. 
Subtitle B—Commodity Distribution Programs 
Sec. 4101. Commodity distribution program. 
Sec. 4102. Commodity supplemental food program. 
Sec. 4103. Distribution of surplus commodities to special nutrition projects. 
Sec. 4104. Processing of commodities. 
Subtitle C—Miscellaneous 
Sec. 4201. Purchase of fresh fruits and vegetables for distribution to schools and 
service institutions. 
Sec. 4202. Pilot project for procurement of unprocessed fruits and vegetables. 
Sec. 4203. Seniors farmers’ market nutrition program. 
Sec. 4204. Dietary Guidelines for Americans.
H. R. 2642—5 
Sec. 4205. Multiagency task force. 
Sec. 4206. Healthy Food Financing Initiative. 
Sec. 4207. Purchase of Halal and Kosher food for emergency food assistance pro-
gram. 
Sec. 4208. Food insecurity nutrition incentive. 
Sec. 4209. Food and agriculture service learning program. 
Sec. 4210. Nutrition information and awareness pilot program. 
Sec. 4211. Termination of existing agreement. 
Sec. 4212. Review of sole-source contracts in Federal nutrition programs. 
Sec. 4213. Pulse crop products. 
Sec. 4214. Pilot project for canned, frozen, or dried fruits and vegetables. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
Sec. 5001. Eligibility for farm ownership loans. 
Sec. 5002. Conservation loan and loan guarantee program. 
Sec. 5003. Joint financing arrangements. 
Sec. 5004. Elimination of mineral rights appraisal requirement. 
Sec. 5005. Down payment loan program. 
Subtitle B—Operating Loans 
Sec. 5101. Eligibility for farm operating loans. 
Sec. 5102. Elimination of rural residency requirement for operating loans to youth. 
Sec. 5103. Defaults by youth loan borrowers. 
Sec. 5104. Term limits on direct operating loans. 
Sec. 5105. Valuation of local or regional crops. 
Sec. 5106. Microloans. 
Sec. 5107. Term limits on guaranteed operating loans. 
Subtitle C—Emergency Loans 
Sec. 5201. Eligibility for emergency loans. 
Subtitle D—Administrative Provisions 
Sec. 5301. Beginning farmer and rancher individual development accounts pilot 
program. 
Sec. 5302. Farmer loan pilot projects. 
Sec. 5303. Definition of qualified beginning farmer or rancher. 
Sec. 5304. Loan authorization levels. 
Sec. 5305. Loan fund set-asides. 
Sec. 5306. Borrower training. 
Subtitle E—Miscellaneous 
Sec. 5401. State agricultural mediation programs. 
Sec. 5402. Loans to purchasers of highly fractionated land. 
Sec. 5403. Removal of duplicative appraisals. 
Sec. 5404. Compensation disclosure by Farm Credit System institutions. 
TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and Rural Development Act 
Sec. 6001. Water, waste disposal, and wastewater facility grants. 
Sec. 6002. Elimination of reservation of community facilities grant program funds. 
Sec. 6003. Rural water and wastewater circuit rider program. 
Sec. 6004. Use of loan guarantees for community facilities. 
Sec. 6005. Tribal college and university essential community facilities. 
Sec. 6006. Essential community facilities technical assistance and training. 
Sec. 6007. Emergency and imminent community water assistance grant program. 
Sec. 6008. Water systems for rural and native villages in Alaska. 
Sec. 6009. Household water well systems. 
Sec. 6010. Rural business and industry loan program. 
Sec. 6011. Solid waste management grants. 
Sec. 6012. Rural business development grants. 
Sec. 6013. Rural cooperative development grants. 
Sec. 6014. Locally or regionally produced agricultural food products. 
Sec. 6015. Appropriate technology transfer for rural areas program. 
Sec. 6016. Rural economic area partnership zones. 
Sec. 6017. Intermediary relending program. 
Sec. 6018. Rural college coordinated strategy. 
Sec. 6019. Rural water and waste disposal infrastructure. 
Sec. 6020. Simplified applications.
H. R. 2642—6 
Sec. 6021. National Rural Development Partnership. 
Sec. 6022. Grants for NOAA weather radio transmitters. 
Sec. 6023. Rural microentrepreneur assistance program. 
Sec. 6024. Health care services. 
Sec. 6025. Strategic economic and community development. 
Sec. 6026. Delta Regional Authority. 
Sec. 6027. Northern Great Plains Regional Authority. 
Sec. 6028. Rural business investment program. 
Subtitle B—Rural Electrification Act of 1936 
Sec. 6101. Fees for certain loan guarantees. 
Sec. 6102. Guarantees for bonds and notes issued for electrification or telephone 
purposes. 
Sec. 6103. Expansion of 911 access. 
Sec. 6104. Access to broadband telecommunications services in rural areas. 
Sec. 6105. Rural Gigabit Network Pilot Program. 
Subtitle C—Miscellaneous 
Sec. 6201. Distance learning and telemedicine. 
Sec. 6202. Agricultural transportation. 
Sec. 6203. Value-added agricultural product market development grants. 
Sec. 6204. Agriculture innovation center demonstration program. 
Sec. 6205. Rural energy savings program. 
Sec. 6206. Study of rural transportation issues. 
Sec. 6207. Regional economic and infrastructure development. 
Sec. 6208. Definition of rural area for purposes of the Housing Act of 1949. 
Sec. 6209. Program metrics. 
Sec. 6210. Funding of pending rural development loan and grant applications. 
TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS 
Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of 
1977 
Sec. 7101. Option to be included as non-land-grant college of agriculture. 
Sec. 7102. National Agricultural Research, Extension, Education, and Economics 
Advisory Board. 
Sec. 7103. Specialty crop committee. 
Sec. 7104. Veterinary services grant program. 
Sec. 7105. Grants and fellowships for food and agriculture sciences education. 
Sec. 7106. Agricultural and food policy research centers. 
Sec. 7107. Education grants to Alaska Native serving institutions and Native Ha-
waiian serving institutions. 
Sec. 7108. Repeal of human nutrition intervention and health promotion research 
program. 
Sec. 7109. Repeal of pilot research program to combine medical and agricultural re-
search. 
Sec. 7110. Nutrition education program. 
Sec. 7111. Continuing animal health and disease research programs. 
Sec. 7112. Grants to upgrade agricultural and food sciences facilities at 1890 land- 
grant colleges, including Tuskegee University. 
Sec. 7113. Grants to upgrade agriculture and food science facilities and equipment 
at insular area land-grant institutions. 
Sec. 7114. Repeal of national research and training virtual centers. 
Sec. 7115. Hispanic-serving institutions. 
Sec. 7116. Competitive Grants Program for Hispanic Agricultural Workers and 
Youth. 
Sec. 7117. Competitive grants for international agricultural science and education 
programs. 
Sec. 7118. Repeal of research equipment grants. 
Sec. 7119. University research. 
Sec. 7120. Extension service. 
Sec. 7121. Auditing, reporting, bookkeeping, and administrative requirements. 
Sec. 7122. Supplemental and alternative crops. 
Sec. 7123. Capacity building grants for NLGCA institutions. 
Sec. 7124. Aquaculture assistance programs. 
Sec. 7125. Rangeland research programs. 
Sec. 7126. Special authorization for biosecurity planning and response. 
Sec. 7127. Distance education and resident instruction grants program for insular 
area institutions of higher education. 
Sec. 7128. Matching funds requirement. 
Sec. 7129. Designation of Central State University as 1890 institution.
H. R. 2642—7 
Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 
Sec. 7201. Best utilization of biological applications. 
Sec. 7202. Integrated management systems. 
Sec. 7203. Sustainable agriculture technology development and transfer program. 
Sec. 7204. National training program. 
Sec. 7205. National Genetics Resources Program. 
Sec. 7206. National Agricultural Weather Information System. 
Sec. 7207. Repeal of rural electronic commerce extension program. 
Sec. 7208. Agricultural Genome Initiative. 
Sec. 7209. High-priority research and extension initiatives. 
Sec. 7210. Repeal of nutrient management research and extension initiative. 
Sec. 7211. Organic agriculture research and extension initiative. 
Sec. 7212. Repeal of agricultural bioenergy feedstock and energy efficiency research 
and extension initiative. 
Sec. 7213. Farm business management. 
Sec. 7214. Centers of excellence. 
Sec. 7215. Repeal of red meat safety research center. 
Sec. 7216. Assistive technology program for farmers with disabilities. 
Sec. 7217. National rural information center clearinghouse. 
Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998 
Sec. 7301. Relevance and merit of agricultural research, extension, and education 
funded by the Department. 
Sec. 7302. Integrated research, education, and extension competitive grants pro-
gram. 
Sec. 7303. Support for research regarding diseases of wheat, triticale, and barley 
caused by Fusarium graminearum or by Tilletia indica. 
Sec. 7304. Repeal of Bovine Johne’s disease control program. 
Sec. 7305. Grants for youth organizations. 
Sec. 7306. Specialty crop research initiative. 
Sec. 7307. [H7308] Food animal residue avoidance database program. 
Sec. 7308. Repeal of national swine research center. 
Sec. 7309. Office of pest management policy. 
Sec. 7310. Forestry products advanced utilization research. 
Sec. 7311. Repeal of studies of agricultural research, extension, and education. 
Subtitle D—Other Laws 
Sec. 7401. Critical Agricultural Materials Act. 
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994. 
Sec. 7403. Research Facilities Act. 
Sec. 7404. Competitive, Special, and Facilities Research Grant Act. 
Sec. 7405. Renewable Resources Extension Act of 1978. 
Sec. 7406. National Aquaculture Act of 1980. 
Sec. 7407. Repeal of use of remote sensing data. 
Sec. 7408. Repeal of reports under Farm Security and Rural Investment Act of 
2002. 
Sec. 7409. Beginning farmer and rancher development program. 
Sec. 7410. National Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1985. 
Subtitle E—Food, Conservation, and Energy Act of 2008 
PART I—AGRICULTURAL SECURITY 
Sec. 7501. Agricultural biosecurity communication center. 
Sec. 7502. Assistance to build local capacity in agricultural biosecurity planning, 
preparation, and response. 
Sec. 7503. Research and development of agricultural countermeasures. 
Sec. 7504. Agricultural biosecurity grant program. 
PART II—MISCELLANEOUS PROVISIONS 
Sec. 7511. Enhanced use lease authority pilot program. 
Sec. 7512. Grazinglands research laboratory. 
Sec. 7513. Budget submission and funding. 
Sec. 7514. Repeal of seed distribution. 
Sec. 7515. Natural products research program. 
Sec. 7516. Sun grant program. 
Sec. 7517. Repeal of study and report on food deserts. 
Sec. 7518. Repeal of agricultural and rural transportation research and education. 
Subtitle F—Miscellaneous Provisions 
Sec. 7601. Foundation for Food and Agriculture Research.
H. R. 2642—8 
Sec. 7602. Concessions and agreements with nonprofit organizations for National 
Arboretum. 
Sec. 7603. Agricultural and food law research, legal tools, and information. 
Sec. 7604. Cotton Disease Research Report. 
Sec. 7605. Miscellaneous technical corrections. 
Sec. 7606. Legitimacy of industrial hemp research. 
TITLE VIII—FORESTRY 
Subtitle A—Repeal of Certain Forestry Programs 
Sec. 8001. Forest land enhancement program. 
Sec. 8002. Watershed forestry assistance program. 
Sec. 8003. Expired cooperative national forest products marketing program. 
Sec. 8004. Hispanic-serving institution agricultural land national resources leader-
ship program. 
Sec. 8005. Tribal watershed forestry assistance program. 
Sec. 8006. Separate Forest Service decisionmaking and appeals process. 
Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 
Programs 
Sec. 8101. State-wide assessment and strategies for forest resources. 
Subtitle C—Reauthorization of Other Forestry-Related Laws 
Sec. 8201. Rural revitalization technologies. 
Sec. 8202. Office of International Forestry. 
Sec. 8203. Healthy forests reserve program. 
Sec. 8204. Insect and disease infestation. 
Sec. 8205. Stewardship end result contracting projects. 
Sec. 8206. Good neighbor authority. 
Subtitle D—Miscellaneous Provisions 
Sec. 8301. Revision of strategic plan for forest inventory and analysis. 
Sec. 8302. Forest service participation in ACES program. 
Sec. 8303. Extension of stewardship contracts authority regarding use of designa-
tion by prescription to all thinning sales under National Forest Manage-
ment Act of 1976. 
Sec. 8304. Reimbursement of fire funds. 
Sec. 8305. Forest Service large airtanker and aerial asset firefighting recapitaliza-
tion pilot program. 
Sec. 8306. Land conveyance, Jefferson National Forest in Wise County, Virginia. 
TITLE IX—ENERGY 
Sec. 9001. Definitions. 
Sec. 9002. Biobased markets program. 
Sec. 9003. Biorefinery assistance. 
Sec. 9004. Repowering assistance program. 
Sec. 9005. Bioenergy program for advanced biofuels. 
Sec. 9006. Biodiesel fuel education program. 
Sec. 9007. Rural Energy for America Program. 
Sec. 9008. Biomass research and development. 
Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers. 
Sec. 9010. Biomass Crop Assistance Program. 
Sec. 9011. Repeal of forest biomass for energy. 
Sec. 9012. Community wood energy program. 
Sec. 9013. Repeal of biofuels infrastructure study. 
Sec. 9014. Repeal of renewable fertilizer study. 
Sec. 9015. Energy efficiency report for USDA facilities. 
TITLE X—HORTICULTURE 
Sec. 10001. Specialty crops market news allocation. 
Sec. 10002. Repeal of grant program to improve movement of specialty crops. 
Sec. 10003. Farmers’ market and local food promotion program. 
Sec. 10004. Organic agriculture. 
Sec. 10005. Investigations and enforcement of the Organic Foods Production Act of 
1990. 
Sec. 10006. Food safety education initiatives. 
Sec. 10007. Consolidation of plant pest and disease management and disaster pre-
vention programs. 
Sec. 10008. Importation of seed. 
Sec. 10009. Bulk shipments of apples to Canada.
H. R. 2642—9 
Sec. 10010. Specialty crop block grants. 
Sec. 10011. Department of Agriculture consultation regarding enforcement of cer-
tain labor law provisions. 
Sec. 10012. Report on honey. 
Sec. 10013. Reports to Congress. 
Sec. 10014. Stay of regulations. 
Sec. 10015. Regulation of sulfuryl fluoride. 
Sec. 10016. Local food production and program evaluation. 
Sec. 10017. Clarification of use of funds for technical assistance. 
TITLE XI—CROP INSURANCE 
Sec. 11001. Information sharing. 
Sec. 11002. Publication of information on violations of prohibition on premium ad-
justments. 
Sec. 11003. Supplemental coverage option. 
Sec. 11004. Crop margin coverage option. 
Sec. 11005. Premium amounts for catastrophic risk protection. 
Sec. 11006. Permanent enterprise unit subsidy. 
Sec. 11007. Enterprise units for irrigated and nonirrigated crops. 
Sec. 11008. Data collection. 
Sec. 11009. Adjustment in actual production history to establish insurable yields. 
Sec. 11010. Submission of policies and Board review and approval. 
Sec. 11011. Consultation. 
Sec. 11012. Budget limitations on renegotiation of the standard reinsurance agree-
ment. 
Sec. 11013. Test weight for corn. 
Sec. 11014. Crop production on native sod. 
Sec. 11015. Coverage levels by practice. 
Sec. 11016. Beginning farmer and rancher provisions. 
Sec. 11017. Stacked income protection plan for producers of upland cotton. 
Sec. 11018. Peanut revenue crop insurance. 
Sec. 11019. Authority to correct errors. 
Sec. 11020. Implementation. 
Sec. 11021. Crop insurance fraud. 
Sec. 11022. Research and development priorities. 
Sec. 11023. Crop insurance for organic crops. 
Sec. 11024. Program compliance partnerships. 
Sec. 11025. Pilot programs. 
Sec. 11026. Index-based weather insurance pilot program. 
Sec. 11027. Enhancing producer self-help through farm financial benchmarking. 
Sec. 11028. Technical amendments. 
TITLE XII—MISCELLANEOUS 
Subtitle A—Livestock 
Sec. 12101. Trichinae certification program. 
Sec. 12102. Sheep production and marketing grant program. 
Sec. 12103. National Aquatic Animal Health Plan. 
Sec. 12104. Country of origin labeling. 
Sec. 12105. National animal health laboratory network. 
Sec. 12106. Food safety inspection. 
Sec. 12107. National Poultry Improvement Plan. 
Sec. 12108. Sense of Congress regarding feral swine eradication. 
Subtitle B—Socially Disadvantaged Producers and Limited Resource Producers 
Sec. 12201. Outreach and assistance for socially disadvantaged farmers and ranch-
ers and veteran farmers and ranchers. 
Sec. 12202. Office of Advocacy and Outreach. 
Sec. 12203. Socially Disadvantaged Farmers and Ranchers Policy Research Center. 
Sec. 12204. Receipt for service or denial of service from certain department of agri-
culture agencies. 
Subtitle C—Other Miscellaneous Provisions 
Sec. 12301. Grants to improve supply, stability, safety, and training of agricultural 
labor force. 
Sec. 12302. Program benefit eligibility status for participants in high plains water 
study. 
Sec. 12303. Office of Tribal Relations. 
Sec. 12304. Military Veterans Agricultural Liaison. 
Sec. 12305. Noninsured crop assistance program. 
Sec. 12306. Acer access and development program.
H. R. 2642—10 
Sec. 12307. Science Advisory Board. 
Sec. 12308. Amendments to Animal Welfare Act. 
Sec. 12309. Produce represented as grown in the United States when it is not in 
fact grown in the United States. 
Sec. 12310. Report on water sharing. 
Sec. 12311. Scientific and economic analysis of the FDA Food Safety Modernization 
Act. 
Sec. 12312. Payment in lieu of taxes. 
Sec. 12313. Silvicultural activities. 
Sec. 12314. Pima agriculture cotton trust fund. 
Sec. 12315. Agriculture Wool Apparel Manufacturers Trust Fund. 
Sec. 12316. Wool research and promotion. 
Subtitle D—Oilheat Efficiency, Renewable Fuel Research and Jobs Training 
Sec. 12401. Short title. 
Sec. 12402. Findings and purposes. 
Sec. 12403. Definitions. 
Sec. 12404. Membership. 
Sec. 12405. Functions. 
Sec. 12406. Assessments. 
Sec. 12407. Market survey and consumer protection. 
Sec. 12408. Lobbying restrictions. 
Sec. 12409. Noncompliance. 
Sec. 12410. Sunset. 
SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE. 
In this Act, the term ‘‘Secretary’’ means the Secretary of Agri-
culture. 
TITLE I—COMMODITIES 
Subtitle A—Repeals and Reforms 
PART I—REPEALS 
SEC. 1101. REPEAL OF DIRECT PAYMENTS. 
Sections 1103 and 1303 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8713, 8753) are repealed. 
SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS. 
(a) REPEAL.—Sections 1104 and 1304 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed. 
(b) CONTINUED APPLICATION FOR 2013 CROP YEAR.—Sections 
1104 and 1304 of the Food, Conservation, and Energy Act of 2008 
(7 U.S.C. 8714, 8754), as in effect on the day before the date 
of enactment of this Act, shall continue to apply through the 2013 
crop year with respect to all covered commodities (as defined in 
section 1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm. 
SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION PROGRAM. 
(a) REPEAL.—Section 1105 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8715) is repealed. 
(b) CONTINUED APPLICATION
FOR 2013 CROP YEAR.—Section 
1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
8715), as in effect on the day before the date of enactment of 
this Act, shall continue to apply through the 2013 crop year with 
respect to all covered commodities (as defined in section 1001 of 
that Act (7 U.S.C. 8702)) and peanuts on a farm for which the 
irrevocable election under section 1105 of that Act was made before 
the date of enactment of this Act.
H. R. 2642—11 
PART II—COMMODITY POLICY 
SEC. 1111. DEFINITIONS. 
In this subtitle and subtitle B: 
(1) ACTUAL CROP REVENUE.—The term ‘‘actual crop rev-
enue’’, with respect to a covered commodity for a crop year, 
means the amount determined by the Secretary under section 
1117(b). 
(2) AGRICULTURE RISK COVERAGE.—The term ‘‘agriculture 
risk coverage’’ means coverage provided under section 1117. 
(3) AGRICULTURE RISK COVERAGE GUARANTEE.—The term 
‘‘agriculture risk coverage guarantee’’, with respect to a covered 
commodity for a crop year, means the amount determined by 
the Secretary under section 1117(c). 
(4) BASE ACRES.— 
(A) IN GENERAL.—The term ‘‘base acres’’, with respect 
to a covered commodity on a farm, means the number 
of acres in effect under sections 1001 and 1301 of the 
Food, Conservation, and Energy Act of 2008 (7 U.S.C. 
8702, 8751), as adjusted pursuant to sections 1101, 1108, 
and 1302 of such Act (7 U.S.C. 8711, 8718, 8752), as 
in effect on September 30, 2013, subject to any reallocation, 
adjustment, or reduction under section 1112 of this Act. 
(B) INCLUSION
OF
GENERIC
BASE
ACRES.—The term 
‘‘base acres’’ includes any generic base acres planted to 
a covered commodity as determined in section 1114(b). 
(5) COUNTY COVERAGE.—The term ‘‘county coverage’’ means 
agriculture risk coverage selected under section 1115(b)(1) to 
be obtained at the county level. 
(6) COVERED COMMODITY.—The term ‘‘covered commodity’’ 
means wheat, oats, and barley (including wheat, oats, and 
barley used for haying and grazing), corn, grain sorghum, long 
grain rice, medium grain rice, pulse crops, soybeans, other 
oilseeds, and peanuts. 
(7) EFFECTIVE
PRICE.—The term ‘‘effective price’’, with 
respect to a covered commodity for a crop year, means the 
price calculated by the Secretary under section 1116(b) to deter-
mine whether price loss coverage payments are required to 
be provided for that crop year. 
(8) EXTRA LONG STAPLE COTTON.—The term ‘‘extra long 
staple cotton’’ means cotton that— 
(A) is produced from pure strain varieties of the 
Barbadense species or any hybrid of the species, or other 
similar types of extra long staple cotton, designated by 
the Secretary, having characteristics needed for various 
end uses for which United States upland cotton is not 
suitable and grown in irrigated cotton-growing regions of 
the United States designated by the Secretary or other 
areas designated by the Secretary as suitable for the 
production of the varieties or types; and 
(B) is ginned on a roller-type gin or, if authorized 
by the Secretary, ginned on another type gin for experi-
mental purposes. 
(9) GENERIC BASE ACRES.—The term ‘‘generic base acres’’ 
means the number of base acres for cotton in effect under 
section 1001 of the Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8702), as adjusted pursuant to section 1101
H. R. 2642—12 
of such Act (7 U.S.C. 8711), as in effect on September 30, 
2013, subject to any adjustment or reduction under section 
1112 of this Act. 
(10) INDIVIDUAL
COVERAGE.—The term ‘‘individual cov-
erage’’ means agriculture risk coverage selected under section 
1115(b)(2) to be obtained at the farm level. 
(11) MEDIUM GRAIN RICE.—The term ‘‘medium grain rice’’ 
includes short grain rice and temperate japonica rice. 
(12) OTHER OILSEED.—The term ‘‘other oilseed’’ means a 
crop of sunflower seed, rapeseed, canola, safflower, flaxseed, 
mustard seed, crambe, sesame seed, or any oilseed designated 
by the Secretary. 
(13) PAYMENT
ACRES.—The term ‘‘payment acres’’, with 
respect to the provision of price loss coverage payments and 
agriculture risk coverage payments, means the number of acres 
determined for a farm under section 1114. 
(14) PAYMENT
YIELD.—The term ‘‘payment yield’’, for a 
farm for a covered commodity— 
(A) means the yield used to make payments pursuant 
to section 1104 or 1304 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8714, 8754), as in effect 
on September 30, 2013; or 
(B) means the yield established under section 1113 
of this Act. 
(15) PRICE LOSS COVERAGE.—The term ‘‘price loss coverage’’ 
means coverage provided under section 1116. 
(16) PRODUCER.— 
(A) IN
GENERAL.—The term ‘‘producer’’ means an 
owner, operator, landlord, tenant, or sharecropper that 
shares in the risk of producing a crop and is entitled 
to share in the crop available for marketing from the farm, 
or would have shared had the crop been produced. 
(B) HYBRID SEED.—In determining whether a grower 
of hybrid seed is a producer, the Secretary shall— 
(i) not take into consideration the existence of a 
hybrid seed contract; and 
(ii) ensure that program requirements do not 
adversely affect the ability of the grower to receive 
a payment under this title. 
(17) PULSE CROP.—The term ‘‘pulse crop’’ means dry peas, 
lentils, small chickpeas, and large chickpeas. 
(18) REFERENCE PRICE.—The term ‘‘reference price’’, with 
respect to a covered commodity for a crop year, means the 
following: 
(A) For wheat, $5.50 per bushel. 
(B) For corn, $3.70 per bushel. 
(C) For grain sorghum, $3.95 per bushel. 
(D) For barley, $4.95 per bushel. 
(E) For oats, $2.40 per bushel. 
(F) For long grain rice, $14.00 per hundredweight. 
(G) For medium grain rice, $14.00 per hundredweight. 
(H) For soybeans, $8.40 per bushel. 
(I) For other oilseeds, $20.15 per hundredweight. 
(J) For peanuts, $535.00 per ton. 
(K) For dry peas, $11.00 per hundredweight. 
(L) For lentils, $19.97 per hundredweight. 
(M) For small chickpeas, $19.04 per hundredweight.
H. R. 2642—13 
(N) For large chickpeas, $21.54 per hundredweight. 
(19) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture. 
(20) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; and 
(D) any other territory or possession of the United 
States. 
(21) TEMPERATE
JAPONICA
RICE.—The term ‘‘temperate 
japonica rice’’ means rice that is grown in high altitudes or 
temperate regions of high latitudes with cooler climate condi-
tions, in the Western United States, as determined by the 
Secretary, for the purpose of— 
(A) the reallocation of base acres under section 1112; 
(B) the establishment of a reference price (as required 
under section 1116(g)) and an effective price pursuant to 
section 1116; and 
(C) the determination of the actual crop revenue and 
agriculture risk coverage guarantee pursuant to section 
1117. 
(22) TRANSITIONAL YIELD.—The term ‘‘transitional yield’’ 
has the meaning given the term in section 502(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1502(b)). 
(23) UNITED STATES.—The term ‘‘United States’’, when used 
in a geographical sense, means all of the States. 
(24) UNITED STATES PREMIUM FACTOR.—The term ‘‘United 
States Premium Factor’’ means the percentage by which the 
difference in the United States loan schedule premiums for 
Strict Middling (SM) 11⁄8-inch upland cotton and for Middling 
(M) 13⁄32-inch upland cotton exceeds the difference in the 
applicable premiums for comparable international qualities. 
SEC. 1112. BASE ACRES. 
(a) RETENTION
OR 1-TIME REALLOCATION
OF BASE ACRES.— 
(1) ELECTION REQUIRED.— 
(A) NOTICE OF ELECTION OPPORTUNITY.—As soon as 
practicable after the date of enactment of this Act, the 
Secretary shall provide notice to the owners of a farm 
regarding their opportunity to make an election, in the 
manner provided in this subsection— 
(i) to retain base acres, including any generic base 
acres, as provided in paragraph (2); or 
(ii) in lieu of retaining base acres, to reallocate 
base acres, other than any generic base acres, as pro-
vided in paragraph (3). 
(B) CONTENT OF NOTICE.—The notice under subpara-
graph (A) shall include the following: 
(i) Information that the opportunity of an owner 
to make the election is being provided only once. 
(ii) Information regarding the manner in which 
the owner must make the election and the manner 
of notifying the Secretary of the election. 
(iii) Information regarding the deadline before 
which the owner must notify the Secretary of the elec-
tion to be in effect beginning with the 2014 crop year.
H. R. 2642—14 
(C) EFFECT
OF
FAILURE
TO
MAKE
ELECTION.—If the 
owner of a farm fails to make the election under this 
subsection, or fails to timely notify the Secretary of the 
election as required by subparagraph (B)(iii), the owner 
shall be deemed to have elected to retain base acres, 
including generic base acres, as provided in paragraph 
(2). 
(2) RETENTION OF BASE ACRES.— 
(A) ELECTION TO RETAIN.—For the purpose of applying 
this part to a covered commodity, the Secretary shall give 
an owner of a farm an opportunity to elect to retain all 
of the base acres for each covered commodity on the farm. 
(B) TREATMENT OF GENERIC BASE ACRES.—Generic base 
acres are automatically retained. 
(3) REALLOCATION OF BASE ACRES.— 
(A) ELECTION
TO
REALLOCATE.—For the purpose of 
applying this part to covered commodities, the Secretary 
shall give an owner of a farm an opportunity to elect 
to reallocate all of the base acres for covered commodities 
on the farm, as in effect on September 30, 2013, among 
those covered commodities planted on the farm at any 
time during the 2009 through 2012 crop years. 
(B) REALLOCATION FORMULA.—The reallocation of base 
acres among covered commodities on a farm shall be in 
proportion to the ratio of— 
(i) the 4-year average of— 
(I) the acreage planted on the farm to each 
covered commodity for harvest, grazing, haying, 
silage, or other similar purposes for the 2009 
through 2012 crop years; and 
(II) any acreage on the farm that the producers 
were prevented from planting during the 2009 
through 2012 crop years to that covered commodity 
because of drought, flood, or other natural disaster, 
or other condition beyond the control of the pro-
ducers, as determined by the Secretary; to 
(ii) the 4-year average of— 
(I) the acreage planted on the farm to all 
covered commodities for harvest, grazing, haying, 
silage, or other similar purposes for such crop 
years; and 
(II) any acreage on the farm that the producers 
were prevented from planting during such crop 
years to covered commodities because of drought, 
flood, or other natural disaster, or other condition 
beyond the control of the producers, as determined 
by the Secretary. 
(C) TREATMENT OF GENERIC BASE ACRES.—Generic base 
acres are retained and may not be reallocated under this 
paragraph. 
(D) INCLUSION OF ALL 4 YEARS IN AVERAGE.—For the 
purpose of determining a 4-year acreage average under 
subparagraph (B) for a farm, the Secretary shall not 
exclude any crop year in which a covered commodity was 
not planted.
H. R. 2642—15 
(E) TREATMENT OF MULTIPLE PLANTING OR PREVENTED 
PLANTING.—For the purpose of determining under subpara-
graph (B) the acreage on a farm that producers planted 
or were prevented from planting during the 2009 through 
2012 crop years to covered commodities, if the acreage 
that was planted or prevented from being planted was 
devoted to another covered commodity in the same crop 
year (other than a covered commodity produced under an 
established practice of double cropping), the owner may 
elect the commodity to be used for that crop year in deter-
mining the 4-year average, but may not include both the 
initial commodity and the subsequent commodity. 
(F) LIMITATION.—The reallocation of base acres among 
covered commodities on a farm under this paragraph may 
not result in a total number of base acres (including generic 
base acres) for the farm in excess of the number of base 
acres in effect for the farm on September 30, 2013. 
(4) APPLICATION OF ELECTION TO ALL COVERED COMMOD-
ITIES.—The election made under this subsection, or deemed 
to be made under paragraph (1)(C), with respect to a farm 
shall apply to all of the covered commodities on the farm. 
(b) ADJUSTMENT OF BASE ACRES.— 
(1) IN GENERAL.—Notwithstanding the election made under 
subsection (a), the Secretary shall provide for an adjustment, 
as appropriate, in the base acres for covered commodities for 
a farm and any generic base acres for the farm whenever 
any of the following circumstances occur: 
(A) A conservation reserve contract entered into under 
section 1231 of the Food Security Act of 1985 (16 U.S.C. 
3831) with respect to the farm expires or is voluntarily 
terminated. 
(B) Cropland is released from coverage under a con-
servation reserve contract by the Secretary. 
(C) The producer has eligible oilseed acreage as the 
result of the Secretary designating additional oilseeds, 
which shall be determined in the same manner as eligible 
oilseed acreage under section 1101(a)(1)(D) of the Food, 
Conservation, 
and 
Energy 
Act 
of 
2008 
(7 
U.S.C. 
8711(a)(1)(D)). 
(2) SPECIAL
CONSERVATION
RESERVE
ACREAGE
PAYMENT 
RULES.—For the crop year in which a base acres adjustment 
under subparagraph (A) or (B) of paragraph (1) is first made, 
the owner of the farm shall elect to receive price loss coverage 
or agriculture risk coverage with respect to the acreage added 
to the farm under this subsection or a prorated payment under 
the conservation reserve contract, but not both. 
(c) PREVENTION OF EXCESS BASE ACRES.— 
(1) REQUIRED
REDUCTION.—Notwithstanding the election 
made under subsection (a), if the sum of the base acres for 
a farm, including generic base acres, and the acreage described 
in paragraph (2) exceeds the actual cropland acreage of the 
farm, the Secretary shall reduce the base acres for 1 or more 
covered commodities or generic base acres for the farm so 
that the sum of the base acres, including generic base acres, 
and the acreage described in paragraph (2) does not exceed 
the actual cropland acreage of the farm.
H. R. 2642—16 
(2) OTHER ACREAGE.—For purposes of paragraph (1), the 
Secretary shall include the following: 
(A) Any acreage on the farm enrolled in the conserva-
tion reserve program or wetlands reserve program (or suc-
cessor programs) under chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 3830 
et seq.). 
(B) Any other acreage on the farm enrolled in a Federal 
conservation program for which payments are made in 
exchange for not producing an agricultural commodity on 
the acreage. 
(C) If the Secretary designates additional oilseeds, any 
eligible oilseed acreage, which shall be determined in the 
same manner as eligible oilseed acreage under subsection 
(b)(1)(C). 
(3) SELECTION
OF
ACRES.—The Secretary shall give the 
owner of the farm the opportunity to select the base acres 
for a covered commodity or generic base acres for the farm 
against which the reduction required by paragraph (1) will 
be made. 
(4) 
EXCEPTION
FOR
DOUBLE-CROPPED
ACREAGE.—In 
applying paragraph (1), the Secretary shall make an exception 
in the case of double cropping, as determined by the Secretary. 
(d) REDUCTION IN BASE ACRES.— 
(1) REDUCTION AT OPTION OF OWNER.— 
(A) IN GENERAL.—The owner of a farm may reduce, 
at any time, the base acres for any covered commodity 
or generic base acres for the farm. 
(B) 
EFFECT
OF
REDUCTION.—A 
reduction 
under 
subparagraph (A) shall be permanent and made in a 
manner prescribed by the Secretary. 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN GENERAL.—The Secretary shall proportionately 
reduce base acres, including any generic base acres, on 
a farm for land that has been subdivided and developed 
for multiple residential units or other nonfarming uses 
if the size of the tracts and the density of the subdivision 
is such that the land is unlikely to return to the previous 
agricultural use, unless the producers on the farm dem-
onstrate that the land— 
(i) remains devoted to commercial agricultural 
production; or 
(ii) is likely to be returned to the previous agricul-
tural use. 
(B) REQUIREMENT.—The Secretary shall establish 
procedures to identify land described in subparagraph (A). 
SEC. 1113. PAYMENT YIELDS. 
(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making 
price loss coverage payments under section 1116, the Secretary 
shall provide for the establishment of a yield for each farm for 
any designated oilseed for which a payment yield was not estab-
lished under section 1102 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8712) in accordance with this section. 
(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS.— 
(1) DETERMINATION OF AVERAGE YIELD.—In the case of des-
ignated oilseeds, the Secretary shall determine the average
H. R. 2642—17 
yield per planted acre for the designated oilseed on a farm 
for the 1998 through 2001 crop years, excluding any crop year 
in which the acreage planted to the designated oilseed was 
zero. 
(2) ADJUSTMENT FOR PAYMENT YIELD.— 
(A) IN GENERAL.—The payment yield for a farm for 
a designated oilseed shall be equal to the product of the 
following: 
(i) The average yield for the designated oilseed 
determined under paragraph (1). 
(ii) The ratio resulting from dividing the national 
average yield for the designated oilseed for the 1981 
through 1985 crops by the national average yield for 
the designated oilseed for the 1998 through 2001 crops. 
(B) NO NATIONAL AVERAGE YIELD INFORMATION AVAIL-
ABLE.—To the extent that national average yield informa-
tion for a designated oilseed is not available, the Secretary 
shall use such information as the Secretary determines 
to be fair and equitable to establish a national average 
yield under this section. 
(3) USE
OF
COUNTY
AVERAGE
YIELD.—If the yield per 
planted acre for a crop of a designated oilseed for a farm 
for any of the 1998 through 2001 crop years was less than 
75 percent of the county yield for that designated oilseed, 
the Secretary shall assign a yield for that crop year equal 
to 75 percent of the county yield for the purpose of determining 
the average under paragraph (1). 
(c) EFFECT OF LACK OF PAYMENT YIELD.— 
(1) ESTABLISHMENT BY SECRETARY.—In the case of a covered 
commodity on a farm for which base acres have been established 
or that is planted on generic base acres, if no payment yield 
is otherwise established for the covered commodity on the farm, 
the Secretary shall establish an appropriate payment yield 
for the covered commodity on the farm under paragraph (2). 
(2) USE OF SIMILARLY SITUATED FARMS.—To establish an 
appropriate payment yield for a covered commodity on a farm 
as required by paragraph (1), the Secretary shall take into 
consideration the farm program payment yields applicable to 
that covered commodity for similarly situated farms. The use 
of such data in an appeal, by the Secretary or by the producer, 
shall not be subject to any other provision of law. 
(d) SINGLE OPPORTUNITY TO UPDATE YIELDS USED TO DETER-
MINE PRICE LOSS COVERAGE PAYMENTS.— 
(1) ELECTION TO UPDATE.—At the sole discretion of the 
owner of a farm, the owner of a farm shall have a 1-time 
opportunity to update, on a covered commodity-by-covered-com-
modity basis, the payment yield that would otherwise be used 
in calculating any price loss coverage payment for each covered 
commodity on the farm for which the election is made. 
(2) TIME
FOR
ELECTION.—The election under paragraph 
(1) shall be made at a time and manner to be in effect beginning 
with the 2014 crop year as determined by the Secretary. 
(3) METHOD OF UPDATING YIELDS.—If the owner of a farm 
elects to update yields under this subsection, the payment 
yield for a covered commodity on the farm, for the purpose 
of calculating price loss coverage payments only, shall be equal 
to 90 percent of the average of the yield per planted acre
H. R. 2642—18 
for the crop of the covered commodity on the farm for the 
2008 through 2012 crop years, as determined by the Secretary, 
excluding any crop year in which the acreage planted to the 
crop of the covered commodity was zero. 
(4) USE
OF
COUNTY
AVERAGE
YIELD.—If the yield per 
planted acre for a crop of the covered commodity for a farm 
for any of the 2008 through 2012 crop years was less than 
75 percent of the average of the 2008 through 2012 county 
yield for that commodity, the Secretary shall assign a yield 
for that crop year equal to 75 percent of the average of the 
2008 through 2012 county yield for the purposes of determining 
the average yield under paragraph (3). 
SEC. 1114. PAYMENT ACRES. 
(a) DETERMINATION OF PAYMENT ACRES.— 
(1) GENERAL RULE.—For the purpose of price loss coverage 
and agriculture risk coverage when county coverage has been 
selected under section 1115(b)(1), but subject to subsection (e), 
the payment acres for each covered commodity on a farm shall 
be equal to 85 percent of the base acres for the covered com-
modity on the farm. 
(2) EFFECT OF INDIVIDUAL COVERAGE.—In the case of agri-
culture risk coverage when individual coverage has been 
selected under section 1115(b)(2), but subject to subsection (e), 
the payment acres for a farm shall be equal to 65 percent 
of the base acres for all of the covered commodities on the 
farm. 
(b) TREATMENT OF GENERIC BASE ACRES.— 
(1) IN GENERAL.—In the case of generic base acres, price 
loss coverage payments and agriculture risk coverage payments 
are made only with respect to generic base acres planted to 
a covered commodity for the crop year. 
(2) ATTRIBUTION.—With respect to a farm containing 
generic base acres, for the purpose of applying paragraphs 
(1)(B) and (2)(B) of subsection (a), generic base acres on the 
farm are attributed to a covered commodity in the following 
manner: 
(A) If a single covered commodity is planted and the 
total acreage planted exceeds the generic base acres on 
the farm, the generic base acres are attributed to that 
covered commodity in an amount equal to the total number 
of generic base acres. 
(B) If multiple covered commodities are planted and 
the total number of acres planted to all covered commod-
ities on the farm exceeds the generic base acres on the 
farm, the generic base acres are attributed to each of 
the covered commodities on the farm on a pro rata basis 
to reflect the ratio of— 
(i) the acreage planted to a covered commodity 
on the farm; to 
(ii) the total acreage planted to all covered 
commodities on the farm. 
(C) If the total number of acres planted to all covered 
commodities on the farm does not exceed the generic base 
acres on the farm, the number of acres planted to a covered 
commodity is attributed to that covered commodity.
H. R. 2642—19 
(3) TREATED AS ADDITIONAL ACREAGE.—When generic base 
acres are planted to a covered commodity or acreage planted 
to a covered commodity is attributed to generic base acres, 
the generic base acres are in addition to other base acres 
on the farm. 
(c) EXCLUSION.—The quantity of payment acres determined 
under subsection (a) may not include any crop subsequently planted 
during the same crop year on the same land for which the first 
crop is eligible for price loss coverage payments or agriculture 
risk coverage payments, unless the crop was approved for double 
cropping in the county, as determined by the Secretary. 
(d) EFFECT OF MINIMAL PAYMENT ACRES.— 
(1) PROHIBITION ON PAYMENTS.—Notwithstanding any other 
provision of this title, a producer on a farm may not receive 
price loss coverage payments or agriculture risk coverage pay-
ments if the sum of the base acres on the farm is 10 acres 
or less, as determined by the Secretary. 
(2) EXCEPTIONS.—Paragraph (1) does not apply to a pro-
ducer that is— 
(A) a socially disadvantaged farmer or rancher (as 
defined in section 355(e) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2003(e))); or 
(B) a limited resource farmer or rancher, as defined 
by the Secretary. 
(e) EFFECT OF PLANTING FRUITS AND VEGETABLES.— 
(1) REDUCTION REQUIRED.—In the manner provided in this 
subsection, payment acres on a farm shall be reduced in any 
crop year in which fruits, vegetables (other than mung beans 
and pulse crops), or wild rice have been planted on base acres 
on a farm. 
(2) PRICE LOSS COVERAGE AND COUNTY COVERAGE.—In the 
case of price loss coverage payments and agricultural risk cov-
erage payments using county coverage, the reduction under 
paragraph (1) shall be the amount equal to the base acres 
planted to crops referred to in such paragraph in excess of 
15 percent of base acres. 
(3) INDIVIDUAL COVERAGE.—In the case of agricultural risk 
coverage payments using individual coverage, the reduction 
under paragraph (1) shall be the amount equal to the base 
acres planted to crops referred to in such paragraph in excess 
of 35 percent of base acres. 
(4) REDUCTION
EXCEPTIONS.—No reduction to payment 
acres shall be made under this subsection if— 
(A) cover crops or crops referred to in paragraph (1) 
are grown solely for conservation purposes and not har-
vested for use or sale, as determined by the Secretary; 
or 
(B) in any region in which there is a history of double- 
cropping covered commodities with crops referred to in 
paragraph (1) and such crops were so double-cropped on 
the base acres, as determined by the Secretary. 
SEC. 1115. PRODUCER ELECTION. 
(a) ELECTION REQUIRED.—For the 2014 through 2018 crop 
years, all of the producers on a farm shall make a 1-time, irrevocable 
election to obtain—
H. R. 2642—20 
(1) price loss coverage under section 1116 on a covered 
commodity-by-covered-commodity basis; or 
(2) agriculture risk coverage under section 1117. 
(b) COVERAGE OPTIONS.—In the election under subsection (a), 
the producers on a farm that elect under paragraph (2) of such 
subsection to obtain agriculture risk coverage under section 1117 
shall unanimously select whether to receive agriculture risk cov-
erage payments based on— 
(1) county coverage applicable on a covered commodity- 
by-covered-commodity basis; or 
(2) individual coverage applicable to all of the covered 
commodities on the farm. 
(c) EFFECT OF FAILURE TO MAKE UNANIMOUS ELECTION.—If 
all the producers on a farm fail to make a unanimous election 
under subsection (a) for the 2014 crop year— 
(1) the Secretary shall not make any payments with respect 
to the farm for the 2014 crop year under section 1116 or 
1117; and 
(2) the producers on the farm shall be deemed to have 
elected price loss coverage under section 1116 for all covered 
commodities on the farm for the 2015 through 2018 crop years. 
(d) EFFECT OF SELECTION OF COUNTY COVERAGE.—If all the 
producers on a farm select county coverage for a covered commodity 
under subsection (b)(1), the Secretary may not make price loss 
coverage payments under section 1116 to the producers on the 
farm with respect to that covered commodity. 
(e) EFFECT
OF SELECTION
OF INDIVIDUAL COVERAGE.—If all 
the producers on a farm select individual coverage under subsection 
(b)(2), in addition to the selection and election under this section 
applying to each producer on the farm, the Secretary shall consider, 
for purposes of making the calculations required by subsections 
(b)(2) and (c)(3) of section 1117, the producer’s share of all farms 
in the same State— 
(1) in which the producer has an interest; and 
(2) for which individual coverage has been selected. 
(f) PROHIBITION
ON
RECONSTITUTION.—The Secretary shall 
ensure that producers on a farm do not reconstitute the farm 
to void or change an election or selection made under this section. 
SEC. 1116. PRICE LOSS COVERAGE. 
(a) PRICE LOSS COVERAGE PAYMENTS.—If all of the producers 
on a farm make the election under subsection (a) of section 1115 
to obtain price loss coverage or, subject to subsection (c)(1) of 
such section, are deemed to have made such election under sub-
section (c)(2) of such section, the Secretary shall make price loss 
coverage payments to producers on the farm on a covered com-
modity-by-covered-commodity basis if the Secretary determines 
that, for any of the 2014 through 2018 crop years— 
(1) the effective price for the covered commodity for the 
crop year; is less than 
(2) the reference price for the covered commodity for the 
crop year. 
(b) EFFECTIVE PRICE.—The effective price for a covered com-
modity for a crop year shall be the higher of— 
(1) the national average market price received by producers 
during the 12-month marketing year for the covered commodity, 
as determined by the Secretary; or
H. R. 2642—21 
(2) the national average loan rate for a marketing assist-
ance loan for the covered commodity in effect for such crop 
year under subtitle B. 
(c) PAYMENT RATE.—The payment rate shall be equal to the 
difference between— 
(1) the reference price for the covered commodity; and 
(2) the effective price determined under subsection (b) for 
the covered commodity. 
(d) PAYMENT AMOUNT.—If price loss coverage payments are 
required to be provided under this section for any of the 2014 
through 2018 crop years for a covered commodity, the amount 
of the price loss coverage payment to be paid to the producers 
on a farm for the crop year shall be equal to the product obtained 
by multiplying— 
(1) the payment rate for the covered commodity under 
subsection (c); 
(2) the payment yield for the covered commodity; and 
(3) the payment acres for the covered commodity. 
(e) TIME FOR PAYMENTS.—If the Secretary determines under 
this section that price loss coverage payments are required to be 
provided for the covered commodity, the payments shall be made 
beginning October 1, or as soon as practicable thereafter, after 
the end of the applicable marketing year for the covered commodity. 
(f) EFFECTIVE PRICE FOR BARLEY.—In determining the effective 
price for barley under subsection (b), the Secretary shall use the 
all-barley price. 
(g) REFERENCE PRICE FOR TEMPERATE JAPONICA RICE.—The 
Secretary shall provide a reference price with respect to temperate 
japonica rice in an amount equal to 115 percent of the amount 
established in subparagraphs (F) and (G) of section 1111(18) in 
order to reflect price premiums. 
SEC. 1117. AGRICULTURE RISK COVERAGE. 
(a) AGRICULTURE RISK COVERAGE PAYMENTS.—If all of the pro-
ducers on a farm make the election under section 1115(a) to obtain 
agriculture risk coverage, the Secretary shall make agriculture 
risk coverage payments to producers on the farm if the Secretary 
determines that, for any of the 2014 through 2018 crop years— 
(1) the actual crop revenue determined under subsection 
(b) for the crop year; is less than 
(2) the agriculture risk coverage guarantee determined 
under subsection (c) for the crop year. 
(b) ACTUAL CROP REVENUE.— 
(1) COUNTY COVERAGE.—In the case of county coverage, 
the amount of the actual crop revenue for a county for a 
crop year of a covered commodity shall be equal to the product 
obtained by multiplying— 
(A) the actual average county yield per planted acre 
for the covered commodity, as determined by the Secretary; 
and 
(B) the higher of— 
(i) the national average market price received by 
producers during the 12-month marketing year for the 
covered commodity, as determined by the Secretary; 
or
H. R. 2642—22 
(ii) the national average loan rate for a marketing 
assistance loan for the covered commodity in effect 
for such crop year under subtitle B. 
(2) INDIVIDUAL COVERAGE.—In the case of individual cov-
erage, the amount of the actual crop revenue for a producer 
on a farm for a crop year shall be based on the producer’s 
share of all covered commodities planted on all farms for which 
individual coverage has been selected and in which the producer 
has an interest, to be determined by the Secretary as follows: 
(A) For each covered commodity, the product obtained 
by multiplying— 
(i) the total production of the covered commodity 
on such farms, as determined by the Secretary; and 
(ii) the higher of— 
(I) the national average market price received 
by producers during the 12-month marketing year, 
as determined by the Secretary; or 
(II) the national average loan rate for a mar-
keting assistance loan for the covered commodity 
in effect for such crop year under subtitle B. 
(B) The sum of the amounts determined under subpara-
graph (A) for all covered commodities on such farms. 
(C) The quotient obtained by dividing the amount 
determined under subparagraph (B) by the total planted 
acres of all covered commodities on such farms. 
(c) AGRICULTURE RISK COVERAGE GUARANTEE.— 
(1) IN GENERAL.—The agriculture risk coverage guarantee 
for a crop year for a covered commodity shall equal 86 percent 
of the benchmark revenue. 
(2) BENCHMARK REVENUE FOR COUNTY COVERAGE.—In the 
case of county coverage, the benchmark revenue shall be the 
product obtained by multiplying— 
(A) subject to paragraph (4), the average historical 
county yield as determined by the Secretary for the most 
recent 5 crop years, excluding each of the crop years with 
the highest and lowest yields; and 
(B) subject to paragraph (5), the national average 
market price received by producers during the 12-month 
marketing year for the most recent 5 crop years, excluding 
each of the crop years with the highest and lowest prices. 
(3) BENCHMARK REVENUE FOR INDIVIDUAL COVERAGE.—In 
the case of individual coverage, the benchmark revenue for 
a producer on a farm for a crop year shall be based on the 
producer’s share of all covered commodities planted on all farms 
for which individual coverage has been selected and in which 
the producer has an interest, to be determined by the Secretary 
as follows: 
(A) For each covered commodity for each of the most 
recent 5 crop years, the product obtained by multiplying— 
(i) subject to paragraph (4), the yield per planted 
acre for the covered commodity on such farms, as deter-
mined by the Secretary; by 
(ii) subject to paragraph (5), the national average 
market price received by producers during the 12- 
month marketing year. 
(B) For each covered commodity, the average of the 
revenues determined under subparagraph (A) for the most
H. R. 2642—23 
recent 5 crop years, excluding each of the crop years with 
the highest and lowest revenues. 
(C) For each of the 2014 through 2018 crop years, 
the sum of the amounts determined under subparagraph 
(B) for all covered commodities on such farms, but adjusted 
to reflect the ratio between the total number of acres 
planted on such farms to a covered commodity and the 
total acres of all covered commodities planted on such 
farms. 
(4) YIELD CONDITIONS.—If the yield per planted acre for 
the covered commodity or historical county yield per planted 
acre for the covered commodity for any of the 5 most recent 
crop years, as determined by the Secretary, is less than 70 
percent of the transitional yield, as determined by the Sec-
retary, the amounts used for any of those years in paragraph 
(2)(A) or (3)(A)(i) shall be 70 percent of the transitional yield. 
(5) REFERENCE PRICE.—If the national average market price 
received by producers during the 12-month marketing year 
for any of the 5 most recent crop years is lower than the 
reference price for the covered commodity, the Secretary shall 
use the reference price for any of those years for the amounts 
in paragraph (2)(B) or (3)(A)(ii). 
(d) PAYMENT RATE.—The payment rate for a covered com-
modity, in the case of county coverage, or a farm, in the case 
of individual coverage, shall be equal to the lesser of— 
(1) the amount that— 
(A) the agriculture risk coverage guarantee for the 
crop year applicable under subsection (c); exceeds 
(B) the actual crop revenue for the crop year applicable 
under subsection (b); or 
(2) 10 percent of the benchmark revenue for the crop year 
applicable under subsection (c). 
(e) PAYMENT AMOUNT.—If agriculture risk coverage payments 
are required to be paid for any of the 2014 through 2018 crop 
years, the amount of the agriculture risk coverage payment for 
the crop year shall be determined by multiplying— 
(1) the payment rate determined under subsection (d); and 
(2) the payment acres determined under section 1114. 
(f) TIME FOR PAYMENTS.—If the Secretary determines that agri-
culture risk coverage payments are required to be provided for 
the covered commodity, payments shall be made beginning October 
1, or as soon as practicable thereafter, after the end of the applicable 
marketing year for the covered commodity. 
(g) ADDITIONAL DUTIES OF THE SECRETARY.—In providing agri-
culture risk coverage, the Secretary shall— 
(1) to the maximum extent practicable, use all available 
information and analysis, including data mining, to check for 
anomalies in the determination of agriculture risk coverage 
payments; 
(2) to the maximum extent practicable, calculate a separate 
actual crop revenue and agriculture risk coverage guarantee 
for irrigated and nonirrigated covered commodities; 
(3) in the case of individual coverage, assign an average 
yield for a farm on the basis of the yield history of representa-
tive farms in the State, region, or crop reporting district, as 
determined by the Secretary, if the Secretary determines that
H. R. 2642—24 
the farm has planted acreage in a quantity that is insufficient 
to calculate a representative average yield for the farm; and 
(4) in the case of county coverage, assign an actual or 
benchmark county yield for each planted acre for the crop 
year for the covered commodity on the basis of the yield history 
of representative farms in the State, region, or crop reporting 
district, as determined by the Secretary, if— 
(A) the Secretary cannot establish the actual or bench-
mark county yield for each planted acre for a crop year 
for a covered commodity in the county in accordance with 
subsection (b)(1) or (c)(2); or 
(B) the yield determined under subsection (b)(1) or 
(c)(2) is an unrepresentative average yield for the county, 
as determined by the Secretary. 
SEC. 1118. PRODUCER AGREEMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a farm may 
receive payments under this subtitle with respect to the farm, 
the producers shall agree, during the crop year for which the 
payments are made and in exchange for the payments— 
(A) to comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.); 
(B) to comply with applicable wetland protection 
requirements under subtitle C of title XII of that Act (16 
U.S.C. 3821 et seq.); 
(C) to effectively control noxious weeds and otherwise 
maintain the land in accordance with sound agricultural 
practices, as determined by the Secretary; and 
(D) to use the land on the farm, in a quantity equal 
to the attributable base acres for the farm and any base 
acres for an agricultural or conserving use, and not for 
a nonagricultural commercial, industrial, or residential use, 
as determined by the Secretary. 
(2) COMPLIANCE.—The Secretary may issue such rules as 
the Secretary considers necessary to ensure producer compli-
ance with the requirements of paragraph (1). 
(3) MODIFICATION.—At the request of the transferee or 
owner, the Secretary may modify the requirements of this sub-
section if the modifications are consistent with the objectives 
of this subsection, as determined by the Secretary. 
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 
(1) TERMINATION.— 
(A) IN GENERAL.—Except as provided in paragraph (2), 
a transfer of (or change in) the interest of the producers 
on a farm for which payments under this subtitle are 
provided shall result in the termination of the payments, 
unless the transferee or owner 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 payment under 
this subtitle 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.
H. R. 2642—25 
(c) ACREAGE REPORTS.—As a condition on the receipt of any 
benefits under this subtitle or subtitle B, the Secretary shall require 
producers on a farm to submit to the Secretary annual acreage 
reports with respect to all cropland on the farm. 
(d) PRODUCTION
REPORTS.—As an additional condition on 
receiving agriculture risk coverage payments for individual cov-
erage, the Secretary shall require a producer on a farm to submit 
to the Secretary annual production reports with respect to all cov-
ered commodities produced on all farms in the same State— 
(1) in which the producer has an interest; and 
(2) for which individual coverage has been selected. 
(e) EFFECT OF INACCURATE REPORTS.—No penalty with respect 
to benefits under this subtitle or subtitle B shall be assessed against 
a producer on a farm for an inaccurate acreage or production 
report unless the Secretary determines that the producer on the 
farm knowingly and willfully falsified the acreage or production 
report. 
(f) TENANTS AND SHARECROPPERS.—In carrying out this subtitle, 
the Secretary shall provide adequate safeguards to protect the 
interests of tenants and sharecroppers. 
(g) SHARING OF PAYMENTS.—The Secretary shall provide for 
the sharing of payments made under this subtitle among the pro-
ducers on a farm on a fair and equitable basis. 
SEC. 1119. TRANSITION ASSISTANCE FOR PRODUCERS OF UPLAND 
COTTON. 
(a) AVAILABILITY.— 
(1) PURPOSE.—It is the purpose of this section to provide 
transition assistance to producers of upland cotton in light 
of the repeal of section 1103 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8713), the inapplicability of sec-
tions 1116 and 1117 to upland cotton, and the delayed 
implementation of the Stacked Income Protection Plan required 
by section 508B of the Federal Crop Insurance Act (7 U.S.C. 
1508b), as added by section 11017 of this Act. 
(2) 2014 CROP YEAR.—For the 2014 crop of upland cotton, 
the Secretary shall provide transition assistance, pursuant to 
the terms and conditions of this section, to producers on a 
farm for which cotton base acres were in existence for the 
2013 crop year. 
(3) 2015 CROP YEAR.—For the 2015 crop of upland cotton, 
the Secretary shall provide transition assistance, pursuant to 
the terms and conditions of this section, to producers on a 
farm— 
(A) for which cotton base acres were in existence for 
the 2013 crop year; and 
(B) that is located in a county in which the Stacked 
Income Protection Plan required by section 508B of the 
Federal Crop Insurance Act (7 U.S.C. 1508b) is not avail-
able to producers of upland cotton for the 2015 crop year. 
(b) TRANSITION ASSISTANCE RATE.—The transition assistance 
rate shall be equal to the product obtained by multiplying— 
(1) the June 12, 2013, midpoint estimate for the marketing 
year average price of upland cotton received by producers for 
the marketing year beginning August 1, 2013, minus the 
December 10, 2013, midpoint estimate for the marketing year 
average price of upland cotton received by producers for the
H. R. 2642—26 
marketing year beginning August 1, 2013, as contained in 
the applicable World Agricultural Supply and Demand Esti-
mates report published by the Department of Agriculture; and 
(2) the national program yield for upland cotton of 597 
pounds per acre. 
(c) CALCULATION
OF TRANSITION ASSISTANCE AMOUNT.—The 
amount of transition assistance to be provided under this section 
to producers on a farm for a crop year shall be equal to the 
product obtained by multiplying— 
(1) for the 2014 crop year, 60 percent, and for the 2015 
crop year, 36.5 percent, of the cotton base acres referred to 
in subsection (a) for the farm, subject to adjustment or reduction 
for conservation measures as provided in subsections (b) and 
(c) of section 1112; 
(2) the transition assistance rate in effect for the crop 
year under subsection (b); and 
(3) the payment yield for upland cotton for the farm estab-
lished for purposes of section 1103(c)(3) of the Food, Conserva-
tion, and Energy Act of 2008 (7 U.S.C. 8713(c)(3)), divided 
by the national program yield for upland cotton of 597 pounds 
per acre. 
(d) TIME FOR PAYMENT.—The Secretary may not make transi-
tion assistance payments for a crop year under this section before 
October 1 of the calendar year in which the crop of upland cotton 
is harvested. 
(e) PAYMENT LIMITATIONS.—Sections 1001 through 1001C of 
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308C), 
as in effect on September 30, 2013, shall apply to the receipt 
of transition assistance under this section in the same manner 
as such sections applied to section 1103 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8713). 
Subtitle B—Marketing Loans 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
LOANS FOR LOAN COMMODITIES. 
(a) DEFINITION OF LOAN COMMODITY.—In this subtitle, the term 
‘‘loan commodity’’ means wheat, corn, grain sorghum, barley, oats, 
upland cotton, extra long staple cotton, long grain rice, medium 
grain rice, peanuts, soybeans, other oilseeds, graded wool, non-
graded wool, mohair, honey, dry peas, lentils, small chickpeas, 
and large chickpeas. 
(b) NONRECOURSE LOANS AVAILABLE.— 
(1) IN GENERAL.—For each of the 2014 through 2018 crops 
of each loan commodity, the Secretary shall make available 
to producers on a farm nonrecourse marketing assistance loans 
for loan commodities produced on the farm. 
(2) TERMS
AND
CONDITIONS.—The marketing assistance 
loans shall be made under terms and conditions that are pre-
scribed by the Secretary and at the loan rate established under 
section 1202 for the loan commodity. 
(c) ELIGIBLE PRODUCTION.—The producers on a farm shall be 
eligible for a marketing assistance loan under subsection (b) for 
any quantity of a loan commodity produced on the farm. 
(d) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIRE-
MENTS.—As a condition of the receipt of a marketing assistance
H. R. 2642—27 
loan under subsection (b), the producer shall comply with applicable 
conservation requirements under subtitle B of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3811 et seq.) 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 pro-
ducers of peanuts. 
(2) OPTIONS FOR OBTAINING LOAN.—A marketing assistance 
loan under this section, and loan deficiency payments under 
section 1205, may be obtained at the option of the producers 
on a farm through— 
(A) a designated marketing association or marketing 
cooperative of producers that is approved by the Secretary; 
or 
(B) the Farm Service Agency. 
(3) STORAGE OF LOAN PEANUTS.—As a condition on the 
approval by the Secretary of an individual 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 nondiscriminatory basis; 
and 
(B) to comply with such additional requirements as 
the Secretary considers appropriate to accomplish the pur-
poses of this section and promote fairness in the adminis-
tration of the benefits 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 Secretary. 
(B) REDEMPTION
AND
FORFEITURE.—The Secretary 
shall— 
(i) require the repayment of handling and other 
associated costs paid under subparagraph (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 section. 
(5) MARKETING.—A marketing association or cooperative 
may market peanuts for which a loan is made under this 
section in any manner that conforms to consumer needs, 
including the separation of peanuts by type and quality. 
(6) REIMBURSABLE AGREEMENTS AND PAYMENT OF ADMINIS-
TRATIVE
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 2014 through 
2018 crop years, the loan rate for a marketing assistance loan
H. R. 2642—28 
under section 1201 for a loan commodity shall be equal to the 
following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
(3) In the case of grain sorghum, $1.95 per bushel. 
(4) In the case of barley, $1.95 per bushel. 
(5) In the case of oats, $1.39 per bushel. 
(6) In the case of base quality of upland cotton, for each 
of the 2014 through 2018 crop years, the simple average of 
the adjusted prevailing world price for the 2 immediately pre-
ceding marketing years, as determined by the Secretary and 
announced October 1 preceding the next domestic plantings, 
but in no case less than $0.45 per pound or more than $0.52 
per pound. 
(7) In the case of extra long staple cotton, $0.7977 per 
pound. 
(8) In the case of long grain rice, $6.50 per hundredweight. 
(9) In the case of medium grain rice, $6.50 per hundred-
weight. 
(10) In the case of soybeans, $5.00 per bushel. 
(11) In the case of other oilseeds, $10.09 per hundredweight 
for each of the following kinds of oilseeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Secretary. 
(12) In the case of dry peas, $5.40 per hundredweight. 
(13) In the case of lentils, $11.28 per hundredweight. 
(14) In the case of small chickpeas, $7.43 per hundred-
weight. 
(15) In the case of large chickpeas, $11.28 per hundred-
weight. 
(16) In the case of graded wool, $1.15 per pound. 
(17) In the case of nongraded wool, $0.40 per pound. 
(18) In the case of mohair, $4.20 per pound. 
(19) In the case of honey, $0.69 per pound. 
(20) In the case of peanuts, $355 per ton. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OILSEEDS.—The 
Secretary shall establish a single loan rate in each county for 
each kind of other oilseeds described in subsection (a)(11). 
SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan commodity, 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 upland cotton, long grain
H. R. 2642—29 
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 sec-
tion 1202, plus interest (determined in accordance with section 
163 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7283)); 
(2) a rate (as determined by the Secretary) that— 
(A) is calculated based on average market prices for 
the loan commodity during the preceding 30-day period; 
and 
(B) will minimize discrepancies in marketing loan bene-
fits 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 com-
modity by the Federal Government; 
(C) minimize the cost incurred by the Federal Govern-
ment in storing the commodity; 
(D) allow the commodity produced in the United States 
to be marketed freely and competitively, both domestically 
and internationally; and 
(E) minimize discrepancies in marketing loan benefits 
across State boundaries and across county boundaries. 
(b) REPAYMENT RATES FOR UPLAND COTTON, LONG GRAIN RICE, 
AND MEDIUM GRAIN RICE.—The Secretary shall permit producers 
to repay a marketing assistance loan under section 1201 for upland 
cotton, long grain rice, and medium grain rice at a rate that is 
the lesser of— 
(1) the loan rate established for the commodity under sec-
tion 1202, plus interest (determined in accordance 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 Secretary 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 (determined in accordance with 
section 163 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7283)). 
(d) PREVAILING WORLD MARKET PRICE.—For purposes of this 
section and section 1207, the Secretary shall prescribe by regula-
tion— 
(1) a formula to determine the prevailing world market 
price for each of upland cotton, long grain rice, and medium 
grain rice; and 
(2) a mechanism by which the Secretary shall announce 
periodically those prevailing world market prices. 
(e) ADJUSTMENT
OF PREVAILING WORLD MARKET PRICE
FOR 
UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.—
H. R. 2642—30 
(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 quality and 
location, with the adjustment to include— 
(i) a reduction equal to any United States Premium 
Factor for upland cotton of a quality higher than Mid-
dling (M) 13⁄32-inch; and 
(ii) the average costs to market the commodity, 
including average transportation costs, as determined 
by the Secretary; and 
(B) may be further adjusted, during the period begin-
ning on the date of enactment of this Act and ending 
on July 31, 2019, if the Secretary determines the adjust-
ment is necessary— 
(i) to minimize potential loan forfeitures; 
(ii) to minimize the accumulation of stocks of 
upland cotton by the Federal Government; 
(iii) to ensure that upland cotton produced in the 
United States can be marketed freely and competi-
tively, both domestically and internationally; and 
(iv) to ensure an appropriate transition 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 ADJUSTMENTS.—In making 
adjustments under this subsection, the Secretary shall establish 
a mechanism for determining and announcing the adjustments 
in order to avoid undue disruption in the United States market. 
(f) REPAYMENT RATES FOR CONFECTIONERY AND OTHER KINDS 
OF SUNFLOWER SEEDS.—The Secretary shall permit the producers 
on a farm to repay a marketing assistance loan under section 
1201 for confectionery and each other kind of sunflower seed (other 
than oil sunflower seed) at a rate that is the lesser of— 
(1) the loan rate established for the commodity under sec-
tion 1202, plus interest (determined in accordance 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 sunflower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effective for each 
of the 2014 through 2018 crop years, the Secretary shall make 
cotton storage payments available in the same manner, and at 
the same rates as the Secretary provided storage payments for 
the 2006 crop of cotton, except that the rates shall be reduced 
by 10 percent. 
(h) REPAYMENT
RATE
FOR
PEANUTS.—The Secretary shall 
permit producers on a farm to repay a marketing assistance loan 
for peanuts under section 1201 at a rate that is the lesser of—
H. R. 2642—31 
(1) the loan rate established for peanuts under section 
1202(a)(20), plus interest (determined in accordance with sec-
tion 163 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7283)); or 
(2) a rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of peanuts 
by the Federal Government; 
(C) minimize the cost incurred by the Federal Govern-
ment 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 related infrastruc-
ture, the Secretary may modify the repayment rate otherwise 
applicable under this section for marketing assistance loans 
under section 1201 for a loan commodity. 
(2) DURATION.—Any adjustment made under paragraph (1) 
in the repayment rate for marketing assistance loans for a 
loan commodity shall be in effect on a short-term and temporary 
basis, as determined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— 
(1) IN GENERAL.—Except as provided in subsection (d), the 
Secretary may make loan deficiency payments available to pro-
ducers on a farm that, although eligible to obtain a marketing 
assistance loan under section 1201 with respect to a loan com-
modity, agree to forgo obtaining the loan for the commodity 
in return for loan deficiency payments under this section. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) 
MARKETING
ASSISTANCE
LOANS.—Subject 
to 
subparagraph (B), nongraded wool in the form of unshorn 
pelts and hay and silage derived from a loan commodity 
are not eligible for a marketing assistance loan under sec-
tion 1201. 
(B) LOAN DEFICIENCY PAYMENT.—Effective for each of 
the 2014 through 2018 crop years, the Secretary may make 
loan deficiency payments available under this section to 
producers on a farm that produce unshorn pelts or hay 
and silage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a loan com-
modity or commodity referred to in subsection (a)(2) shall be equal 
to the product obtained by multiplying— 
(1) the payment rate determined under subsection (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 commodity, the 
payment rate shall be the amount by which— 
(A) the loan rate established under section 1202 for 
the loan commodity; exceeds
H. R. 2642—32 
(B) the rate at which a marketing assistance loan 
for the loan commodity may be repaid under section 1204. 
(2) UNSHORN PELTS.—In the case of unshorn pelts, the 
payment rate shall be the amount by which— 
(A) the loan rate established under section 1202 for 
ungraded wool; exceeds 
(B) the rate at which a marketing assistance loan 
for ungraded wool may be repaid under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or silage 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 assistance 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 DETERMINATION.—The 
Secretary shall determine the amount of the loan deficiency pay-
ment 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 pay-
ment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN GENERAL.—Effective for each of the 2014 through 
2018 crop years, in the case of a producer that would be 
eligible for a loan deficiency payment under section 1205 for 
wheat, barley, or oats, but that elects to use acreage planted 
to the wheat, barley, or oats for the grazing of livestock, the 
Secretary shall make a payment to the producer under this 
section if the producer enters into an agreement with the 
Secretary to forgo any other harvesting of the wheat, barley, 
or oats on that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effective for each of 
the 2014 through 2018 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 section if the producer enters into an agreement 
with the Secretary to forgo any other harvesting of triticale 
on that acreage. 
(b) PAYMENT AMOUNT.— 
(1) IN GENERAL.—The amount of a payment made under 
this section to a producer on a farm described in subsection 
(a)(1) shall be equal to the amount determined by multiplying— 
(A) the loan deficiency payment rate determined 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 producer elects to forgo har-
vesting of wheat, barley, or oats; and
H. R. 2642—33 
(ii)(I) the payment yield in effect for the calculation 
of price loss coverage under section 1115 with respect 
to that loan commodity on the farm; 
(II) in the case of a farm for which agriculture 
risk coverage is elected under section 1116(a), the pay-
ment yield that would otherwise be in effect with 
respect to that loan commodity on the farm in the 
absence of such election; or 
(III) in the case of a farm for which no payment 
yield is otherwise established for that loan commodity 
on the farm, an appropriate yield established by the 
Secretary in a manner consistent with section 1113(c). 
(2) GRAZING OF TRITICALE ACREAGE.—The amount of a pay-
ment made under this section to a producer on a farm described 
in subsection (a)(2) shall be equal to the amount determined 
by multiplying— 
(A) the loan deficiency payment rate determined 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 producer elects to forgo har-
vesting 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; 
(II) in the case of a farm for which agriculture 
risk coverage is elected under section 1116(a), the pay-
ment yield that would otherwise be in effect for wheat 
on the farm in the absence of such election; or 
(III) in the case of a farm for which no payment 
yield is otherwise established for wheat on the farm, 
an appropriate yield established by the Secretary in 
a manner consistent with section 1113(c). 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(1) TIME AND MANNER.—A payment under this section shall 
be made at the same time and in the same manner as loan 
deficiency payments are made under section 1205. 
(2) AVAILABILITY.— 
(A) IN
GENERAL.—The Secretary shall establish 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 NON-
INSURED CROP ASSISTANCE.—A 2014 through 2018 crop of wheat, 
barley, oats, or triticale planted on acreage that a producer elects, 
in the agreement required by subsection (a), to use for the grazing 
of livestock in lieu of any other harvesting of the crop shall not 
be eligible for an indemnity under a policy or plan of insurance 
authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) or noninsured crop assistance under section 196 of the
H. R. 2642—34 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this sub-
section, the term ‘‘special import quota’’ means a quantity of 
imports that is not subject to the over-quota tariff rate of 
a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN GENERAL.—The President shall carry out an 
import quota program beginning on August 1, 2014, 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 
definable and significant international market, as deter-
mined by the Secretary, exceeds the prevailing world 
market price, there shall immediately be in effect a special 
import quota. 
(3) QUANTITY.—The quota shall be equal to the consump-
tion during a 1-week period of cotton by domestic mills at 
the seasonally adjusted average rate of the most recent 3 
months for which official data of the Department of Agriculture 
are available or, in the absence of sufficient data, as estimated 
by the Secretary. 
(4) APPLICATION.—The quota shall apply to upland cotton 
purchased not later than 90 days after the date of the Sec-
retary’s announcement under paragraph (2) and entered into 
the United States not later than 180 days after that date. 
(5) OVERLAP.—A special quota period may be established 
that overlaps any existing quota period if required by paragraph 
(2), except that a special quota period may not be established 
under this subsection if a quota period has been established 
under subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under 
a special import quota shall be considered 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 Preference 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 Harmonized 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 weeks’ consumption of upland cotton by 
domestic mills at 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.—
H. R. 2642—35 
(1) DEFINITIONS.—In this subsection: 
(A) DEMAND.—The term ‘‘demand’’ means— 
(i) the average seasonally adjusted annual rate 
of domestic mill consumption of cotton during the most 
recent 3 months for which official data of the Depart-
ment of Agriculture are available or, in the absence 
of sufficient data, as estimated by the Secretary; and 
(ii) the larger of— 
(I) average exports of upland cotton during 
the preceding 6 marketing years; or 
(II) cumulative exports of upland cotton plus 
outstanding export sales for the marketing year 
in which the quota is established. 
(B) LIMITED GLOBAL IMPORT QUOTA.—The term ‘‘limited 
global import quota’’ means a quantity of imports that 
is not subject to the over-quota tariff rate of a tariff-rate 
quota. 
(C) SUPPLY.—The term ‘‘supply’’ means, using the 
latest official data of the Department of Agriculture— 
(i) the carry-over of upland cotton at the beginning 
of the marketing year (adjusted to 480-pound bales) 
in which the quota is established; 
(ii) production of the current crop; and 
(iii) imports to the latest date available during 
the marketing year. 
(2) PROGRAM.—The President shall carry out an import 
quota program that provides that whenever the Secretary deter-
mines and announces that the average price of the base quality 
of upland cotton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 percent of 
the average 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 consumption of upland 
cotton at the seasonally adjusted average rate of the most 
recent 3 months for which official data of the Department 
of Agriculture are available or, in the absence of sufficient 
data, as estimated by the Secretary. 
(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 consumption 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 quantity for purposes of— 
(i) section 213(d) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703(d)); 
(ii) section 204 of the Andean Trade Preference 
Act (19 U.S.C. 3203); 
(iii) section 503(d) of the Trade Act of 1974 (19 
U.S.C. 2463(d)); and
H. R. 2642—36 
(iv) General Note 3(a)(iv) to the Harmonized Tariff 
Schedule. 
(D) QUOTA ENTRY PERIOD.—When a quota is estab-
lished under this subsection, cotton may be entered under 
the quota during the 90-day period beginning on the date 
the quota is established by the Secretary. 
(3) NO OVERLAP.—Notwithstanding paragraph (2), a quota 
period may not be established that overlaps an existing quota 
period or a special quota period 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 documented 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, 2013, the value of the assistance provided under paragraph 
(1) shall be 3 cents per pound. 
(3) ALLOWABLE
PURPOSES.—Economic adjustment assist-
ance under this subsection shall be made available only to 
domestic users of upland cotton that certify that the assistance 
shall be used only to acquire, construct, install, modernize, 
develop, convert, or expand land, plant, buildings, equipment, 
facilities, or machinery. 
(4) REVIEW OR AUDIT.—The Secretary may conduct 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 Secretary deter-
mines, 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 assistance to the 
Secretary, plus interest, as determined by the Secretary; 
and 
(B) ineligible to receive assistance under this sub-
section 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 the date of enact-
ment of this Act through July 31, 2019, the Secretary shall carry 
out a program— 
(1) to maintain and expand the domestic use of extra long 
staple cotton produced in the United States; 
(2) to increase exports of extra long staple cotton produced 
in the United States; and 
(3) to ensure that extra long staple cotton produced in 
the United States remains competitive in world markets.
H. R. 2642—37 
(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 cotton; 
and 
(2) the lowest priced competing growth of extra long staple 
cotton (adjusted to United States quality and location and 
for other factors affecting the competitiveness of such cotton), 
as determined by the Secretary, is less than 134 percent of 
the loan rate for extra long staple cotton. 
(c) ELIGIBLE RECIPIENTS.—The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long 
staple cotton produced in the United States that enter into an 
agreement with the Commodity Credit Corporation to participate 
in the program under this section. 
(d) PAYMENT AMOUNT.—Payments under this 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 export by exporters made in the 
week following such a consecutive 4-week period. 
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 
FEED GRAINS AND SEED COTTON. 
(a) HIGH MOISTURE FEED GRAINS.— 
(1) DEFINITION
OF
HIGH
MOISTURE
STATE.—In this sub-
section, the term ‘‘high moisture state’’ means corn or grain 
sorghum having a moisture content in excess of Commodity 
Credit Corporation standards for marketing assistance loans 
made by the Secretary under section 1201. 
(2) RECOURSE
LOANS
AVAILABLE.—For each of the 2014 
through 2018 crops of corn and grain sorghum, 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 inspected, cer-
tified commercial scale, including 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 measurements of the 
standing or stored crop in regions of the United States, 
as determined by the Secretary, that do not have cer-
tified 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
H. R. 2642—38 
that the quantity to be placed under loan under this sub-
section was in fact harvested on the farm and delivered 
to, a feedlot, feed mill, or commercial or on-farm high- 
moisture storage facility, or to a facility maintained by 
the users of corn and grain 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 dead-
lines established by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under 
this subsection shall be made on a quantity of corn or grain 
sorghum of the same crop acquired by the producer equivalent 
to a quantity determined by multiplying— 
(A) the acreage of the corn or grain sorghum in a 
high moisture state harvested on the farm of the producer; 
by 
(B) the lower of— 
(i) the payment yield in effect for the calculation 
of price loss coverage under section 1115, or the pay-
ment yield deemed to be in effect or established under 
subclause (II) or (III) of section 1206(b)(1)(B)(ii), with 
respect to corn or grain sorghum on a field that is 
similar to the field from which the corn or grain sor-
ghum referred to in subparagraph (A) was obtained; 
or 
(ii) the actual yield of corn or grain sorghum on 
a field, as determined by the Secretary, that is similar 
to the field from which the corn or grain sorghum 
referred to in subparagraph (A) was obtained. 
(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON.—For each 
of the 2014 through 2018 crops of upland cotton and extra long 
staple cotton, the Secretary shall make available recourse seed 
cotton loans, as determined by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse loan made 
under this section shall be at the loan rate established for the 
commodity by the Secretary, plus interest (determined in accordance 
with section 163 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—Subject to subsection (e), the Sec-
retary 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 sub-
section (a) shall, to the maximum extent practicable, be made 
in such a manner that the average loan level for the commodity 
will, on the basis of the anticipated incidence of the factors, be 
equal to the level of support determined in accordance with this 
subtitle and subtitle C. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
(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.
H. R. 2642—39 
(2) PROHIBITION.—Adjustments under this subsection 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 appropriate 
adjustments in the loan rate for cotton for differences in quality 
factors. 
(2) TYPES OF ADJUSTMENTS.—Loan rate adjustments 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 information used in determining quality adjust-
ments under this subsection; 
(B) adjustments in the premiums or discounts associ-
ated with upland cotton with a staple length of 33 or 
above due to micronaire with the goal of eliminating any 
unnecessary artificial splits in the calculations of the pre-
miums or discounts; and 
(C) such other adjustments as the Secretary determines 
appropriate, after consultations conducted in accordance 
with paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR
TO
REVISION.—In making adjustments to 
the loan rate for cotton (including any review of the adjust-
ments) as provided in this subsection, the Secretary shall 
consult with representatives of the United States cotton 
industry. 
(B) INAPPLICABILITY OF FEDERAL ADVISORY 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 imple-
mented pursuant to this subsection and may make further 
adjustments to the administration of the loan program for 
upland cotton, by revoking or revising any adjustment taken 
under paragraph (2). 
(e) RICE.—The Secretary shall not make adjustments in the 
loan rates for long grain rice and medium grain rice, except for 
differences in grade and quality (including milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR POLICY. 
(a) CONTINUATION OF CURRENT PROGRAM AND LOAN RATES.— 
(1) SUGARCANE.—Section 156(a) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)) is 
amended— 
(A) by inserting ‘‘and’’ at the end of paragraph (3); 
(B) in paragraph (4), by striking ‘‘the 2011 crop year; 
and’’ and inserting ‘‘each of the 2011 through 2018 crop 
years.’’; and 
(C) by striking paragraph (5). 
(2) SUGAR BEETS.—Section 156(b)(2) of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C. 
7272(b)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’.
H. R. 2642—40 
(3) EFFECTIVE PERIOD.—Section 156(i) of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) 
is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
(b) FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is 
amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
(2) EFFECTIVE PERIOD.—Section 359l(a) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
Subtitle D—Dairy 
PART I—MARGIN PROTECTION PROGRAM FOR 
DAIRY PRODUCERS 
SEC. 1401. DEFINITIONS. 
In this part and part III: 
(1) ACTUAL DAIRY PRODUCTION MARGIN.—The term ‘‘actual 
dairy production margin’’ means the difference 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 
operations for all milk sold to plants and dealers in the United 
States, as determined by the Secretary. 
(3) AVERAGE FEED COST.—The term ‘‘average feed cost’’ 
means the average cost of feed used by a dairy operation 
to produce a hundredweight of milk, determined under section 
1402 using the sum of the following: 
(A) The product determined by multiplying 1.0728 by 
the price of corn per bushel. 
(B) The product determined by multiplying 0.00735 
by the price of soybean meal per ton. 
(C) The product determined by multiplying 0.0137 by 
the price of alfalfa hay per ton. 
(4) CONSECUTIVE 2-MONTH PERIOD.—The term ‘‘consecutive 
2-month period’’ refers to the 2-month period consisting of 
the months of January and February, March and April, May 
and June, July and August, September and October, or 
November and December, respectively. 
(5) DAIRY OPERATION.— 
(A) IN GENERAL.—The term ‘‘dairy operation’’ means, 
as determined by the Secretary, 1 or more dairy producers 
that produce and market milk as a single dairy operation 
in which each dairy producer— 
(i) shares in the risk of producing milk; and 
(ii) makes contributions (including land, labor, 
management, equipment, or capital) to the dairy oper-
ation of the individual or entity, which are at least 
commensurate with the individual or entity’s share 
of the proceeds of the operation. 
(B) ADDITIONAL
OWNERSHIP
STRUCTURES.—The Sec-
retary shall determine additional ownership structures to 
be covered by the definition of dairy operation.
H. R. 2642—41 
(6) MARGIN
PROTECTION
PROGRAM.—The term ‘‘margin 
protection program’’ means the margin protection program 
required by section 1403. 
(7) MARGIN
PROTECTION
PROGRAM
PAYMENT.—The term 
‘‘margin protection program payment’’ means a payment made 
to a participating dairy operation under the margin protection 
program pursuant to section 1406. 
(8) PARTICIPATING DAIRY OPERATION.—The term ‘‘partici-
pating dairy operation’’ means a dairy operation that registers 
under section 1404 to participate in the margin protection 
program. 
(9) PRODUCTION HISTORY.—The term ‘‘production history’’ 
means the production history determined for a participating 
dairy operation under subsection (a) or (b) of section 1405 
when the participating dairy operation first registers to partici-
pate in the margin protection program. 
(10) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture. 
(11) UNITED STATES.—The term ‘‘United States’’, in a geo-
graphical 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 posses-
sion of the United States. 
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY 
PRODUCTION MARGINS. 
(a) CALCULATION OF AVERAGE FEED COST.—The Secretary shall 
calculate the national average feed cost for each month using the 
following data: 
(1) The price of corn for a month shall be the price received 
during that month by farmers in the United States for corn, 
as reported in the monthly Agricultural Prices report by the 
Secretary. 
(2) The price of soybean meal for a month shall be the 
central Illinois price for soybean meal, as reported in the 
Market News–Monthly Soybean Meal Price Report by the Sec-
retary. 
(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 PRODUCTION MARGIN.— 
(1) IN GENERAL.—For use in the margin protection program, 
the Secretary shall calculate the actual dairy production margin 
for each consecutive 2-month period by subtracting— 
(A) the average feed cost for that consecutive 2-month 
period, determined in accordance with subsection (a); from 
(B) the all-milk price for that consecutive 2-month 
period. 
(2) TIME FOR CALCULATION.—The calculation required by 
this subsection shall be made as soon as practicable using 
the full-month price of the applicable reference month. 
SEC. 1403. ESTABLISHMENT OF MARGIN PROTECTION PROGRAM FOR 
DAIRY PRODUCERS. 
Not later than September 1, 2014, the Secretary shall establish 
and administer a margin protection program for dairy producers
H. R. 2642—42 
under which participating dairy operations are paid a margin 
protection payment when actual dairy production margins are less 
than the threshold levels for a margin protection payment. 
SEC. 1404. PARTICIPATION OF DAIRY OPERATIONS IN MARGIN 
PROTECTION PROGRAM. 
(a) ELIGIBILITY.—All dairy operations in the United States shall 
be eligible to participate in the margin protection program to receive 
margin protection payments. 
(b) REGISTRATION PROCESS.— 
(1) IN GENERAL.—The Secretary shall specify the manner 
and form by which a participating dairy operation may register 
to participate in the margin protection program. 
(2) TREATMENT OF MULTIPRODUCER DAIRY OPERATIONS.— 
If a participating dairy operation is operated by more than 
1 dairy producer, all of the dairy producers of the participating 
dairy operation shall be treated as a single dairy operation 
for purposes of participating in the margin protection program. 
(3) TREATMENT OF PRODUCERS WITH MULTIPLE DAIRY OPER-
ATIONS.—If a dairy producer operates 2 or more dairy oper-
ations, each dairy operation of the producer shall separately 
register to participate in the margin protection program. 
(c) ANNUAL ADMINISTRATIVE FEE.— 
(1) ADMINISTRATIVE
FEE
REQUIRED.—Each participating 
dairy operation shall— 
(A) pay an administrative fee to register to participate 
in the margin protection program; and 
(B) pay the administrative fee annually through the 
duration of the margin protection program specified in 
section 1409. 
(2) AMOUNT OF FEE.—The administrative fee for a partici-
pating dairy operation shall be $100. 
(3) USE OF FEES.—The Secretary shall use administrative 
fees collected under this subsection to cover administrative 
costs incurred to carry out the margin protection program. 
(d) RELATION TO LIVESTOCK GROSS MARGIN FOR DAIRY PRO-
GRAM.—A dairy operation may participate in the margin protection 
program or the livestock gross margin for dairy program under 
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not 
both. 
SEC. 1405. PRODUCTION HISTORY OF PARTICIPATING DAIRY OPER-
ATIONS. 
(a) PRODUCTION HISTORY.— 
(1) IN
GENERAL.—Except as provided in subsection (b), 
when a dairy operation first registers to participate in the 
margin protection program, the production history of the dairy 
operation for the margin protection program is equal to the 
highest annual milk marketings of the participating dairy oper-
ation during any one of the 2011, 2012, or 2013 calendar 
years. 
(2) ADJUSTMENT.—In subsequent years, the Secretary shall 
adjust the production history of a participating dairy operation 
determined under paragraph (1) to reflect any increase in the 
national average milk production. 
(b) ELECTION BY NEW DAIRY OPERATIONS.—In the case of a 
participating dairy operation that has been in operation for less 
than a year, the participating dairy operation shall elect 1 of the
H. R. 2642—43 
following methods for the Secretary to determine the production 
history of the participating dairy operation: 
(1) The volume of the actual milk marketings for the 
months the participating dairy operation has been in operation 
extrapolated to a yearly amount. 
(2) An estimate of the actual milk marketings of the partici-
pating dairy operation based on the herd size of the partici-
pating dairy operation relative to the national rolling herd 
average data published by the Secretary. 
(c) REQUIRED INFORMATION.—A participating dairy operation 
shall provide all information that the Secretary may require in 
order to establish the production history of the participating dairy 
operation for purposes of participating in the margin protection 
program. 
SEC. 1406. MARGIN PROTECTION PAYMENTS. 
(a) COVERAGE LEVEL THRESHOLD
AND COVERAGE PERCENT-
AGE.—For purposes of receiving margin protection payments for 
a consecutive 2-month period, a participating dairy operation shall 
annually elect— 
(1) a coverage level threshold that is equal to $4.00, $4.50, 
$5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00; and 
(2) a percentage of coverage, in 5-percent increments, begin-
ning with 25 percent and not exceeding 90 percent of the 
production history of the participating dairy operation. 
(b) PAYMENT THRESHOLD.—A participating dairy operation shall 
receive a margin protection payment whenever the average actual 
dairy production margin for a consecutive 2-month period is less 
than the coverage level threshold selected by the participating 
dairy operation. 
(c) AMOUNT OF MARGIN PROTECTION PAYMENT.—The margin 
protection payment for the participating dairy operation shall be 
determined as follows: 
(1) The Secretary shall calculate the amount by which 
the coverage level threshold selected by the participating dairy 
operation exceeds the average actual dairy production margin 
for the consecutive 2-month period. 
(2) The amount determined under paragraph (1) shall be 
multiplied by— 
(A) the coverage percentage selected by the partici-
pating dairy operation; and 
(B) the production history of the participating dairy 
operation divided by 6. 
SEC. 1407. PREMIUMS FOR MARGIN PROTECTION PROGRAM. 
(a) CALCULATION OF PREMIUMS.—For purposes of participating 
in the margin protection program, a participating dairy operation 
shall pay an annual premium equal to the product obtained by 
multiplying— 
(1) the coverage percentage elected by the participating 
dairy operation under section 1406(a)(2); 
(2) the production history of the participating dairy oper-
ation; and 
(3) the premium per hundredweight of milk imposed by 
this section for the coverage level selected. 
(b) PREMIUM PER HUNDREDWEIGHT
FOR FIRST 4 MILLION 
POUNDS OF PRODUCTION.—
H. R. 2642—44 
(1) IN GENERAL.—For the first 4,000,000 pounds of milk 
marketings included in the production history of a participating 
dairy operation, the premium per hundredweight for each cov-
erage level is specified in the table contained in paragraph 
(2). 
(2) PRODUCER PREMIUMS.—Except as provided in paragraph 
(3), the following annual premiums apply: 
Coverage Level 
Premium per Cwt. 
$4.00 
None 
$4.50 
$0.010 
$5.00 
$0.025 
$5.50 
$0.040 
$6.00 
$0.055 
$6.50 
$0.090 
$7.00 
$0.217 
$7.50 
$0.300 
$8.00 
$0.475 
(3) SPECIAL RULE.—The premium per hundredweight speci-
fied in the table contained in paragraph (2) for each coverage 
level (except the $8.00 coverage level) shall be reduced by 
25 percent for each of calendar years 2014 and 2015. 
(c) PREMIUM PER HUNDREDWEIGHT FOR PRODUCTION IN EXCESS 
OF 4 MILLION POUNDS.— 
(1) IN
GENERAL.—For milk marketings in excess of 
4,000,000 pounds included in the production history of a partici-
pating dairy operation, the premium per hundredweight for 
each coverage level is specified in the table contained in para-
graph (2). 
(2) PRODUCER PREMIUMS.—The following annual premiums 
apply: 
Coverage Level 
Premium per Cwt. 
$4.00 
None 
$4.50 
$0.020 
$5.00 
$0.040 
$5.50 
$0.100 
$6.00 
$0.155 
$6.50 
$0.290 
$7.00 
$0.830 
$7.50 
$1.060 
$8.00 
$1.360 
(d) TIME FOR PAYMENT OF PREMIUM.—The Secretary shall pro-
vide more than 1 method by which a participating dairy operation 
may pay the premium required under this section in any manner
H. R. 2642—45 
that maximizes participating dairy operation payment flexibility 
and program integrity. 
(e) PREMIUM OBLIGATIONS.— 
(1) PRO-RATION OF PREMIUM FOR NEW PARTICIPANTS.—In 
the case of a participating dairy operation that first registers 
to participate in the margin protection program for a calendar 
year after the start of the calendar year, the participating 
dairy operation shall pay a pro-rated premium for that calendar 
year based on the portion of the calendar year for which the 
participating dairy operation purchases the coverage. 
(2) LEGAL OBLIGATION.—A participating dairy operation in 
the margin protection program for a calendar year shall be 
legally obligated to pay the applicable premium for that cal-
endar year, except that the Secretary may waive that obligation, 
under terms and conditions determined by the Secretary, for 
any participating dairy operation in the case of death, retire-
ment, permanent dissolution of a participating dairy operation, 
or other circumstances as the Secretary considers appropriate 
to ensure the integrity of the program. 
SEC. 1408. EFFECT OF FAILURE TO PAY ADMINISTRATIVE FEES OR 
PREMIUMS. 
(a) LOSS OF BENEFITS.—A participating dairy operation that 
fails to pay the required annual administrative fee under section 
1404 or is in arrears on premium payments under section 1407— 
(1) remains legally obligated to pay the administrative 
fee or premiums, as the case may be; and 
(2) may not receive margin protection payments until the 
fees or premiums are fully paid. 
(b) ENFORCEMENT.—The Secretary may take such action as 
necessary to collect administrative fees and premium payments 
for participation in the margin protection program. 
SEC. 1409. DURATION. 
The margin protection program shall end on December 31, 
2018. 
SEC. 1410. ADMINISTRATION AND ENFORCEMENT. 
(a) IN GENERAL.—The Secretary shall promulgate regulations 
to address administrative and enforcement issues involved in car-
rying out the margin protection program. 
(b) RECONSTITUTION.—The Secretary shall promulgate regula-
tions to prohibit a dairy producer from reconstituting a dairy oper-
ation for the purpose of the dairy producer receiving margin protec-
tion payments. 
(c) ADMINISTRATIVE APPEALS.—Using authorities under section 
1001(h) of the Food Security Act of 1985 (7 U.S.C. 1308(h)) and 
subtitle H of the Department of Agriculture Reorganization Act 
(7 U.S.C. 6991 et seq.), the Secretary shall promulgate regulations 
to provide for administrative appeals of decisions of the Secretary 
that are adverse to participants of the margin protection program. 
(d) INCLUSION OF ADDITIONAL ORDER.—Section 143(a)(2) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7253(a)(2)) is amended by adding at the end the following new 
sentence: ‘‘Subsection (b) does not apply to the authority of the 
Secretary under this subsection.’’.
H. R. 2642—46 
PART II—REPEAL OR REAUTHORIZATION OF 
OTHER DAIRY-RELATED PROVISIONS 
SEC. 1421. 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. 
SEC. 1422. TEMPORARY CONTINUATION AND EVENTUAL REPEAL OF 
MILK INCOME LOSS CONTRACT PROGRAM. 
(a) TEMPORARY CONTINUATION
OF PAYMENTS UNDER MILK 
INCOME LOSS CONTRACT PROGRAM.—Section 1506 of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 8773) is amended— 
(1) in subsection (a), by adding at the end the following 
new paragraph: 
‘‘(6) TERMINATION
DATE.—The term ‘termination date’ 
means the earlier of the following: 
‘‘(A) The date on which the Secretary certifies to Con-
gress that the margin protection program required by sec-
tion 1403 of the Agricultural Act of 2014 is operational. 
‘‘(B) September 1, 2014.’’; 
(2) in subsection (c)(3)— 
(A) in subparagraph (B), by inserting after ‘‘August 
31, 2013,’’ the following: ‘‘and for the period beginning 
February 1, 2014, and ending on the termination date,’’; 
and 
(B) in subparagraph (C), by striking ‘‘and thereafter,’’ 
and inserting ‘‘and ending January 31, 2014,’’; 
(3) in subsection (d)— 
(A) in paragraph (2), by striking ‘‘For any month begin-
ning on or after September 1, 2013,’’ and inserting ‘‘During 
the period beginning on September 1, 2013, and ending 
on January 31, 2014,’’; 
(B) by redesignating paragraph (3) as paragraph (4); 
and 
(C) by inserting after paragraph (2) the following new 
paragraph (3): 
‘‘(3) FINAL
ADJUSTMENT
AUTHORITY.—During the period 
beginning on February 1, 2014, and ending on the termination 
date, if the National Average Dairy Feed Ration Cost for a 
month during that period is greater than $7.35 per hundred-
weight, the amount specified in subsection (c)(2)(A) used to 
determine the payment rate for that month shall be increased 
by 45 percent of the percentage by which the National Average 
Dairy Feed Ration Cost exceeds $7.35 per hundredweight.’’; 
(4) in subsection (e)(2)(A)— 
(A) in clause (ii), by inserting after ‘‘August 31, 2013,’’ 
the following: ‘‘and for the period beginning February 1, 
2014, and ending on the termination date,’’; and 
(B) in clause (iii), by striking ‘‘effective beginning Sep-
tember 1, 2013,’’ and inserting ‘‘for the period beginning 
September 1, 2013, and ending January 31, 2014,’’; 
(5) in subsection (g), by striking ‘‘during the period begin-
ning on the date that is 90 days after the date of enactment 
of this Act and ending on September 30, 2013’’ and inserting 
‘‘until the termination date’’; and 
(6) in subsection (h)(1), by striking ‘‘September 30, 2013’’ 
and inserting ‘‘the termination date’’.