I 
109TH CONGRESS 
1ST SESSION H. R. 1590 
To amend the Food Security Act of 1985 to restore integrity to, and 
strengthen payment limitation rules for, commodity payments and benefits. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 13, 2005 
Mr. KIND (for himself and Mr. FLAKE) introduced the following bill; which 
was referred to the Committee on Agriculture 
A BILL 
To amend the Food Security Act of 1985 to restore integrity 
to, and strengthen payment limitation rules for, com-
modity payments and benefits. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rural America Preser-
vation Act’’. 
SEC. 2. PAYMENT LIMITATIONS. 
Section 1001 of the Food Security of 1985 (7 U.S.C. 
1308) is amended— 
(1) in subsection (b)(1), by striking ‘‘$40,000’’ 
and inserting ‘‘$20,000’’;
(2) in subsection (c)(1), by striking ‘‘$65,000’’ 
and inserting ‘‘$30,000’’; 
(3) in subsection (d), by striking ‘‘(d)’’ and all 
that follows through the end of paragraph (1) and 
inserting the following: 
‘‘(d) LIMITATIONS
ON MARKETING LOAN GAINS, 
LOAN DEFICIENCY PAYMENTS, AND COMMODITY CER-
TIFICATE TRANSACTIONS.— 
‘‘(1) LOAN COMMODITIES.—The total amount 
of the following gains and payments that a person 
may receive during any crop year may not exceed 
$75,000: 
‘‘(A)(i) Any gain realized by a producer 
from repaying a marketing assistance loan for 
1 or more loan commodities under subtitle B of 
title I of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 7931 et seq.) at a 
lower level than the original loan rate estab-
lished for the loan commodity under that sub-
title. 
‘‘(ii) In the case of settlement of a mar-
keting assistance loan for 1 or more loan com-
modities under that subtitle by forfeiture, the 
amount by which the loan amount exceeds the
repayment amount for the loan if the loan had 
been settled by repayment instead of forfeiture. 
‘‘(B) Any loan deficiency payments re-
ceived for 1 or more loan commodities under 
that subtitle. 
‘‘(C) Any gain realized from the use of a 
commodity certificate issued by the Commodity 
Credit Corporation for 1 or more loan commod-
ities, as determined by the Secretary, including 
the use of a certificate for the settlement of a 
marketing assistance loan made under that sub-
title, with the gain reported annually to the In-
ternal Revenue Service and to the taxpayer in 
the same manner as gains under subparagraphs 
(A) and (B).’’; and 
(4) by adding at the end the following: 
‘‘(h) SINGLE FARMING OPERATION.— 
‘‘(1) 
IN
GENERAL.—Notwithstanding 
sub-
sections (b) through (d), subject to paragraph (2), 
if a person participates only in a single farming op-
eration and receives, directly or indirectly, any pay-
ment or gain covered by this section through the 
farming operation, the total amount of payments or 
gains (as applicable) covered by this section that the 
person may receive during any crop year may be up
to but not exceed twice the applicable dollar 
amounts specified in subsections (b), (c), and (d). 
‘‘(2) INDIVIDUALS.—The total amount of pay-
ments or gains (as applicable) covered by this sec-
tion that an individual person may receive during 
any crop year may not exceed $250,000. 
‘‘(i) SPOUSE EQUITY.—Notwithstanding subsections 
(b) through (d), except as provided in subsection 
(e)(2)(C)(i), if an individual and spouse are covered by 
subsection (e)(2)(C) and receive, directly or indirectly, any 
payment or gain covered by this section, the total amount 
of payments or gains (as applicable) covered by this sec-
tion that the individual and spouse may jointly receive 
during any crop year may not exceed twice the applicable 
dollar amounts specified in subsections (b), (c), and (d). 
‘‘(j) REGULATIONS.— 
‘‘(1) IN GENERAL.—Not later than 270 days 
after the date of enactment of this subsection, the 
Secretary shall promulgate regulations— 
‘‘(A) to ensure that total payments and 
gains described in this section made to or 
through joint operations or multiple entities 
under the primary control of a person, in com-
bination with the payments and gains received 
directly by the person, shall not exceed twice
the applicable dollar amounts specified in sub-
sections (b), (c), and (d); 
‘‘(B) in the case of a person that in the ag-
gregate owns, conducts farming operations, or 
provides custom farming services on land with 
respect to which the aggregate payments exceed 
the applicable dollar amounts specified in sub-
sections (b), (c), and (d), to attribute all pay-
ments and gains made on crops produced on 
the land to— 
‘‘(i) a person that rents land as lessee 
or lessor through a crop share lease and 
receives a share of the payments that is 
less than the usual and customary share of 
the crop received by the lessee or lessor, as 
determined by the Secretary; 
‘‘(ii) a person that provides custom 
farming services through arrangements 
under which— 
‘‘(I) all or part of the compensa-
tion for the services is at risk; 
‘‘(II) farm management services 
are provided by— 
‘‘(aa) the same person;
‘‘(bb) an immediate family 
member; or 
‘‘(cc) an entity or individual 
that has a business relationship 
that is not an arm’s length rela-
tionship, as determined by the 
Secretary; or 
‘‘(III) more than 2⁄3 of the farm-
ing operations are conducted as cus-
tom farming services provided by— 
‘‘(aa) the same person; 
‘‘(bb) an immediate family 
member; or 
‘‘(cc) an entity or individual 
that has a business relationship 
that is not an arm’s length rela-
tionship, as determined by the 
Secretary; or 
‘‘(iii) a person under such other ar-
rangements as the Secretary determines 
are established to transfer payments from 
persons that would otherwise exceed the 
applicable dollar amounts specified in sub-
sections (b), (c), and (d); and
‘‘(C) to ensure that payments attributed 
under this section to a person other than the 
direct recipient shall also count toward the limit 
of the direct recipient. 
‘‘(2) 
PRIMARY
CONTROL.—The 
regulations 
under paragraph (1) shall define ‘primary control’ to 
include a joint operation or multiple entity in which 
a person owns an interest that is equal to or greater 
than the interest of any other 1 or more persons 
that materially participate on a regular, substantial, 
and continuous basis in the management of the op-
eration or entity.’’. 
SEC. 3. SCHEMES OR DEVICES. 
Section 1001B of the Food Security Act of 1985 (7 
U.S.C. 1308–2) is amended— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘If’’; and 
(2) by adding at the end the following: 
‘‘(b) FRAUD.—If fraud is committed by a person in 
connection with a scheme or device to evade, or that has 
the purpose of evading, section 1001, 1001A, or 1001C, 
the person shall be ineligible to receive farm program pay-
ments (as described in subsections (b), (c), and (d) of sec-
tion 1001 as being subject to limitation) applicable to the
crop year for which the scheme or device is adopted and 
the succeeding 5 crop years.’’. 
SEC. 4. REGULATIONS. 
(a) IN GENERAL.—The Secretary of Agriculture may 
promulgate such regulations as are necessary to imple-
ment this Act and the amendments made by this Act. 
(b) PROCEDURE.—The promulgation of the regula-
tions and administration of this Act and the amendments 
made by this Act shall be made without regard to— 
(1) the notice and comment provisions of sec-
tion 553 of title 5, United States Code; 
(2) the Statement of Policy of the Secretary of 
Agriculture effective July 24, 1971 (36 Fed. Reg. 
13804), relating to notices of proposed rulemaking 
and public participation in rulemaking; and 
(3) chapter 35 of title 44, United States Code 
(commonly known as the ‘‘Paperwork Reduction 
Act’’). 
(c) CONGRESSIONAL REVIEW
OF AGENCY RULE-
MAKING.—In carrying out this section, the Secretary shall 
use the authority provided under section 808 of title 5, 
United States Code. 
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