I 
112TH CONGRESS 
2D SESSION 
H. R. 6083 
To provide for the reform and continuation of agricultural and other programs 
of the Department of Agriculture through fiscal year 2017, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2012 
Mr. LUCAS (for himself and Mr. PETERSON) introduced the following bill; 
which was referred to the Committee on Agriculture 
A BILL 
To provide for the reform and continuation of agricultural 
and other programs of the Department of Agriculture 
through fiscal year 2017, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Agriculture Reform and Risk Management Act 
of 2012’’. 
(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 
Sec. 1101. Repeal of direct payments. 
Sec. 1102. Repeal of counter-cyclical payments. 
Sec. 1103. Repeal of average crop revenue election program. 
Sec. 1104. Definitions. 
Sec. 1105. Base acres. 
Sec. 1106. Payment yields. 
Sec. 1107. Farm risk management election. 
Sec. 1108. Producer agreements. 
Sec. 1109. Period of effectiveness. 
Subtitle B—Marketing Loans 
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan com-
modities. 
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 
cotton. 
Sec. 1210. Adjustments of loans. 
Subtitle C—Sugar 
Sec. 1301. Sugar program. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN PROTECTION AND DAIRY MARKET 
STABILIZATION PROGRAMS 
Sec. 1401. Definitions. 
Sec. 1402. Calculation of average feed cost and actual dairy producer margins. 
SUBPART A—DAIRY PRODUCER MARGIN PROTECTION PROGRAM 
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Sec. 1411. Establishment of dairy producer margin protection program. 
Sec. 1412. Participation of dairy producers in margin protection program. 
Sec. 1413. Production history of participating dairy producers. 
Sec. 1414. Basic margin protection. 
Sec. 1415. Supplemental margin protection. 
Sec. 1416. Effect of failure to pay administrative fees or premiums. 
SUBPART B—DAIRY MARKET STABILIZATION PROGRAM 
Sec. 1431. Establishment of dairy market stabilization program. 
Sec. 1432. Threshold for implementation and reduction in dairy producer pay-
ments. 
Sec. 1433. Producer milk marketings information. 
Sec. 1434. Calculation and collection of reduced dairy producer payments. 
Sec. 1435. Remitting monies to the Secretary and use of monies. 
Sec. 1436. Suspension of reduced payment requirement. 
Sec. 1437. Enforcement. 
Sec. 1438. Audit requirements. 
SUBPART C—COMMODITY CREDIT CORPORATION 
Sec. 1451. Use of Commodity Credit Corporation. 
SUBPART D—INITIATION AND DURATION 
Sec. 1461. Rulemaking. 
Sec. 1462. Duration. 
PART II—REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED 
PROVISIONS 
Sec. 1481. Repeal of dairy product price support and milk income loss contract 
programs. 
Sec. 1482. Repeal of dairy export incentive program. 
Sec. 1483. Extension of dairy forward pricing program. 
Sec. 1484. Extension of dairy indemnity program. 
Sec. 1485. Extension of dairy promotion and research program. 
Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission. 
PART III—EFFECTIVE DATE 
Sec. 1491. Effective date. 
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. Adjusted gross income limitation. 
Sec. 1605. Geographically disadvantaged farmers and ranchers. 
Sec. 1606. Personal liability of producers for deficiencies. 
Sec. 1607. Prevention of deceased individuals receiving payments under farm 
commodity programs. 
Sec. 1608. Technical corrections. 
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Sec. 1609. Assignment of payments. 
Sec. 1610. Tracking of benefits. 
Sec. 1611. Signature authority. 
Sec. 1612. Implementation. 
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. Effective date. 
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. Effective date. 
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. Agricultural management assistance program. 
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. 
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Sec. 2606. Review of conservation practice standards. 
Sec. 2607. Administrative requirements applicable to all conservation programs. 
Sec. 2608. Standards for State technical committees. 
Sec. 2609. Rulemaking authority. 
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. Technical amendments. 
TITLE III—TRADE 
Subtitle A—Food for Peace Act 
Sec. 3001. General authority regarding emergency and private assistance pro-
grams. 
Sec. 3002. Set-aside for support for organizations through which nonemergency 
assistance 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 of Food for Peace Act pro-
grams. 
Sec. 3007. Assistance for stockpiling and rapid transportation, delivery, and 
distribution of shelf-stable prepackaged foods. 
Sec. 3008. General provisions. 
Sec. 3009. Procurement, transportation, and storage of agricultural commod-
ities for prepositioning in the United States and foreign coun-
tries. 
Sec. 3010. Annual report regarding food aid programs and activities. 
Sec. 3011. Deadline for agreements to finance sales or to provide other assist-
ance. 
Sec. 3012. Authorization of appropriations; minimum level of nonemergency 
food assistance. 
Sec. 3013. Micronutrient fortification programs. 
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. 
Subtitle B—Agricultural Trade Act of 1978 
Sec. 3101. Funding for export credit guarantee program. 
Sec. 3102. Funding for market access program. 
Sec. 3103. Foreign market development cooperator program. 
Subtitle C—Other Agricultural Trade Laws 
Sec. 3201. Food for Progress Act of 1985. 
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Sec. 3202. Bill Emerson Humanitarian Trust. 
Sec. 3203. Promotion of agricultural exports to emerging markets. 
Sec. 3204. McGovern-Dole International Food for Education and Child Nutri-
tion Program. 
Sec. 3205. Technical assistance for specialty crops. 
Sec. 3206. Global Crop Diversity Trust. 
TITLE IV—NUTRITION 
Subtitle A—Supplemental Nutrition Assistance Program 
Sec. 4001. Retailers. 
Sec. 4002. Enhancing services to elderly and disabled supplemental nutrition 
assistance program recipients. 
Sec. 4003. Food distribution program on Indian reservations. 
Sec. 4004. Updating program eligibility. 
Sec. 4005. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 4006. Eligibility disqualifications. 
Sec. 4007. Ending supplemental nutrition assistance program benefits for lot-
tery or gambling winners. 
Sec. 4008. Improving security of food assistance. 
Sec. 4009. Demonstration projects on acceptance of benefits of mobile trans-
actions. 
Sec. 4010. Restaurant meals program. 
Sec. 4011. Repeal of bonus program. 
Sec. 4012. Funding of employment and training programs. 
Sec. 4013. Monitoring employment and training program. 
Sec. 4014. Cooperation with program research and evaluation. 
Sec. 4015. Authorization of appropriations. 
Sec. 4016. Assistance for community food projects. 
Sec. 4017. Emergency food assistance. 
Sec. 4018. Nutrition education. 
Sec. 4019. Retailer trafficking. 
Sec. 4020. Technical and conforming amendments. 
Sec. 4021. Tolerance level for excluding small errors. 
Sec. 4022. Commonwealth of the Northern Mariana Islands pilot program. 
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. Farmers’ market nutrition program. 
Sec. 4202. Nutrition information and awareness pilot program. 
Sec. 4203. Fresh fruit and vegetable program. 
Sec. 4204. Additional authority for purchase of fresh fruits, vegetables, and 
other specialty food crops. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
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Sec. 5001. Eligibility for farm ownership loans. 
Sec. 5002. Conservation loan and loan guarantee program. 
Sec. 5003. Down payment loan program. 
Sec. 5004. Elimination of mineral rights appraisal requirement. 
Subtitle B—Operating Loans 
Sec. 5101. Eligibility for farm operating loans. 
Sec. 5102. Authority to waive personal liability for youth loans due to cir-
cumstances beyond borrower control. 
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. Eligible beginning farmers and ranchers. 
Sec. 5303. Loan authorization levels. 
Sec. 5304. Priority for participation loans. 
Sec. 5305. Loan fund set-asides. 
Sec. 5306. Conforming amendment to borrower training provision, relating to 
eligibility changes. 
Subtitle E—State Agricultural Mediation Programs 
Sec. 5401. State agricultural mediation programs. 
Subtitle F—Loans to Purchasers of Highly Fractionated Land 
Sec. 5501. Loans to purchasers of highly fractionated land. 
TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and Rural Development Act 
Sec. 6001. Water, waste disposal, and wastewater facility grants. 
Sec. 6002. Rural business opportunity grants. 
Sec. 6003. Elimination of reservation of community facilities grant program 
funds. 
Sec. 6004. Rural water and wastewater circuit rider program. 
Sec. 6005. Tribal college and university essential community facilities. 
Sec. 6006. Emergency and imminent community water assistance grant pro-
gram. 
Sec. 6007. Grants to nonprofit organizations to finance the construction, refur-
bishing, and servicing of individually-owned household water 
well systems in rural areas for individuals with low or moderate 
incomes. 
Sec. 6008. Rural cooperative development grants. 
Sec. 6009. Locally or regionally produced agricultural food products. 
Sec. 6010. Intermediary relending program. 
Sec. 6011. Simplified applications. 
Sec. 6012. Grants for NOAA weather radio transmitters. 
Sec. 6013. Rural microentrepreneur assistance program. 
Sec. 6014. Delta Regional Authority. 
Sec. 6015. Northern Great Plains Regional Authority. 
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Sec. 6016. Rural business investment program. 
Subtitle B—Rural Electrification Act of 1936 
Sec. 6101. Relending for certain purposes. 
Sec. 6102. Fees for certain loan guarantees. 
Sec. 6103. Guarantees for bonds and notes issued for electrification or tele-
phone purposes. 
Sec. 6104. Expansion of 911 access. 
Sec. 6105. Access to broadband telecommunications services in rural areas. 
Subtitle C—Miscellaneous 
Sec. 6201. Distance learning and telemedicine. 
Sec. 6202. Value-added agricultural market development program grants. 
Sec. 6203. Agriculture innovation center demonstration program. 
Sec. 6204. Program metrics. 
Sec. 6205. Study of rural transportation issues. 
TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS 
Subtitle A—National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 
Sec. 7101. Option to not be included as Hispanic-serving agricultural college or 
university. 
Sec. 7102. National Agricultural Research, Extension, Education, and Econom-
ics 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. Policy research centers. 
Sec. 7107. Repeal of human nutrition intervention and health promotion re-
search program. 
Sec. 7108. Repeal of pilot research program to combine medical and agricul-
tural research. 
Sec. 7109. Nutrition education program. 
Sec. 7110. Continuing animal health and disease research programs. 
Sec. 7111. Repeal of appropriations for research on national or regional prob-
lems. 
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 equip-
ment 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 for international agricultural science and edu-
cation programs. 
Sec. 7117. Repeal of research equipment grants. 
Sec. 7118. University research. 
Sec. 7119. Extension service. 
Sec. 7120. Auditing, reporting, bookkeeping, and administrative requirements. 
Sec. 7121. Supplemental and alternative crops. 
Sec. 7122. Capacity building grants for NLGCA institutions. 
Sec. 7123. Aquaculture assistance programs. 
Sec. 7124. Rangeland research programs. 
Sec. 7125. Special authorization for biosecurity planning and response. 
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Sec. 7126. Distance education and resident instruction grants program for in-
sular area institutions of higher education. 
Sec. 7127. Matching funds requirement. 
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 pro-
gram. 
Sec. 7204. National training program. 
Sec. 7205. National Genetics Resources Program. 
Sec. 7206. Repeal of National Agricultural Weather Information System. 
Sec. 7207. Repeal of rural electronic commerce extension program. 
Sec. 7208. Repeal of 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 re-
search and extension initiative. 
Sec. 7213. Farm business management. 
Sec. 7214. Regional 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 edu-
cation funded by the Department. 
Sec. 7302. Integrated research, education, and extension competitive grants 
program. 
Sec. 7303. Repeal of coordinated program of research, extension, and education 
to improve viability of small and medium size dairy, livestock, 
and poultry operations. 
Sec. 7304. Repeal of Bovine Johne’s disease control program. 
Sec. 7305. Grants for youth organizations. 
Sec. 7306. Specialty crop research initiative. 
Sec. 7307. Food animal residue avoidance database program. 
Sec. 7308. Repeal of national swine research center. 
Sec. 7309. Office of pest management policy. 
Sec. 7310. 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. Repeal of carbon cycle research. 
Sec. 7405. Competitive, Special, and Facilities Research Grant Act. 
Sec. 7406. Renewable Resources Extension Act of 1978. 
Sec. 7407. National Aquaculture Act of 1980. 
Sec. 7408. Repeal of use of remote sensing data. 
Sec. 7409. Repeal of reports under Farm Security and Rural Investment Act 
of 2002. 
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Sec. 7410. Beginning farmer and rancher development program. 
Sec. 7411. Inclusion of Northern Mariana Islands as a State under McIntire- 
Stennis Cooperative Forestry Act. 
Subtitle E—Food, Conservation, and Energy Act of 2008 
PART 1—AGRICULTURAL SECURITY 
Sec. 7501. Agricultural biosecurity communication center. 
Sec. 7502. Assistance to build local capacity in agricultural biosecurity plan-
ning, preparation, and response. 
Sec. 7503. Research and development of agricultural countermeasures. 
Sec. 7504. Agricultural biosecurity grant program. 
PART 2—MISCELLANEOUS 
Sec. 7511. Enhanced use lease authority pilot program. 
Sec. 7512. Grazinglands research laboratory. 
Sec. 7513. Budget submission and funding. 
Sec. 7514. Repeal of research and education grants for the study of antibiotic- 
resistant bacteria. 
Sec. 7515. Repeal of farm and ranch stress assistance network. 
Sec. 7516. Repeal of seed distribution. 
Sec. 7517. Natural products research program. 
Sec. 7518. Sun grant program. 
Sec. 7519. Repeal of study and report on food deserts. 
Sec. 7520. Repeal of agricultural and rural transportation research and edu-
cation. 
Sec. 7521. Conveyance of land comprising Subtropical Horticulture Research 
Station. 
Sec. 7522. Concessions, fees, and voluntary services at National Arboretum. 
Sec. 7523. Cotton Disease Research Report. 
Sec. 7524. Miscellaneous technical corrections. 
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 
leadership program. 
Sec. 8005. Tribal watershed forestry assistance program. 
Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 
Programs 
Sec. 8101. Forest Legacy Program. 
Sec. 8102. Community forest and open space conservation program. 
Subtitle C—Reauthorization of Other Forestry-Related Laws 
Sec. 8201. Rural revitalization technologies. 
Sec. 8202. Office of International Forestry. 
Sec. 8203. Change in funding source for healthy forests reserve program. 
Sec. 8204. Stewardship end result contracting project authority. 
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Subtitle D—National Forest Critical Area Response 
Sec. 8301. Definitions. 
Sec. 8302. Designation of critical areas. 
Sec. 8303. Application of expedited procedures and activities of the Healthy 
Forests Restoration Act of 2003 to critical areas. 
Sec. 8304. Good neighbor authority. 
Subtitle E—Miscellaneous Provisions 
Sec. 8401. Revision of strategic plan for forest inventory and analysis. 
Sec. 8402. Forest Service participation in ACES Program. 
TITLE IX—ENERGY 
Sec. 9001. Definition of renewable energy system. 
Sec. 9002. Biobased markets program. 
Sec. 9003. Biorefinery Assistance. 
Sec. 9004. Repeal of repowering assistance program and transfer of remaining 
funds. 
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. Community wood energy program. 
Sec. 9012. Repeal of biofuels infrastructure study. 
Sec. 9013. Repeal of renewable fertilizer study. 
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. Specialty crop block grants. 
Sec. 10008. Report on honey. 
Sec. 10009. Bulk shipments of apples to Canada. 
Sec. 10010. Inclusion of olive oil in import controls under the Agricultural Ad-
justment Act. 
Sec. 10011. Petitions to determine organism not a plant pest. 
Sec. 10012. Consolidation of plant pest and disease management and disaster 
prevention programs. 
Sec. 10013. Authority for regulation of plants. 
Sec. 10014. Report to Congress on regulation of biotechnology. 
Sec. 10015. Pesticide Registration Improvement. 
Sec. 10016. Modification, cancellation, or suspension on basis of a biological 
opinion. 
Sec. 10017. Use and discharges of authorized pesticides. 
Sec. 10018. Effective date. 
TITLE XI—CROP INSURANCE 
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Sec. 11001. Information sharing. 
Sec. 11002. Publication of information on violations of prohibition on premium 
adjustments. 
Sec. 11003. Supplemental coverage option. 
Sec. 11004. Premium amounts for catastrophic risk protection. 
Sec. 11005. Repeal of preformance-based discount. 
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 and review of policies. 
Sec. 11011. Equitable relief for specialty crop producers. 
Sec. 11012. Budget limitations on renegotiation of the standard reinsurance 
agreement. 
Sec. 11013. Crop production on native sod. 
Sec. 11014. Coverage levels by practice. 
Sec. 11015. Beginning farmer and rancher provisions. 
Sec. 11016. Stacked income protection plan for producers of upland cotton. 
Sec. 11017. Peanut revenue crop insurance. 
Sec. 11018. Authority to correct errors. 
Sec. 11019. Implementation. 
Sec. 11020. Research and development priorities. 
Sec. 11021. Additional research and development contracting requirements. 
Sec. 11022. Pilot programs. 
Sec. 11023. Limitation on expenditures for livestock pilot programs. 
Sec. 11024. Noninsured crop assistance program. 
Sec. 11025. Technical amendments. 
TITLE XII—MISCELLANEOUS 
Subtitle A—Livestock 
Sec. 12101. National Sheep Industry Improvement Center. 
Sec. 12102. Trichinae certification program. 
Sec. 12103. National Aquatic Animal Health Plan. 
Subtitle B—Socially Disadvantaged Producers and Limited Resource 
Producers 
Sec. 12201. Outreach and assistance for socially disadvantaged farmers and 
ranchers and veteran farmers and ranchers. 
Sec. 12202. Office of Advocacy and Outreach. 
Subtitle C—Other Miscellaneous Provisions 
Sec. 12301. Grants to improve supply, stability, safety, and training of agricul-
tural labor force. 
SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE. 
In this Act, the term ‘‘Secretary’’ means the Sec-
retary of Agriculture. 
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TITLE I—COMMODITIES 
Subtitle A—Repeals and Reforms 
SEC. 1101. REPEAL OF DIRECT PAYMENTS. 
(a) REPEAL.—Sections 1103 and 1303 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 
8753) are repealed. 
(b) CONTINUED
APPLICATION
FOR
2012 CROP 
YEAR.—Sections 1103 and 1303 of the Food, Conserva-
tion, and Energy Act of 2008 (7 U.S.C. 8713, 8753), as 
in effect on the day before the date of enactment of this 
Act, shall continue to apply through the 2012 crop year 
with respect to all covered commodities (as defined in sec-
tion 1001 of that Act (7 U.S.C. 8702)) and peanuts on 
a farm. 
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
2012 CROP 
YEAR.—Sections 1104 and 1304 of the Food, Conserva-
tion, 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 2012 crop year 
with respect to all covered commodities (as defined in sec-
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tion 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, Conserva-
tion, and Energy Act of 2008 (7 U.S.C. 8715) is repealed. 
(b) CONTINUED
APPLICATION
FOR
2012 CROP 
YEAR.—Section 1105 of the Food, Conservation, and En-
ergy 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 2012 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. 
SEC. 1104. DEFINITIONS. 
In this subtitle and subtitle B: 
(1) ACTUAL COUNTY REVENUE.—The term ‘‘ac-
tual county revenue’’, with respect to a covered com-
modity for a crop year, means the amount deter-
mined by the Secretary under section 1107(c)(4) to 
determine whether revenue loss coverage payments 
are required to be provided for that crop year. 
(2) BASE ACRES.—The term ‘‘base acres’’, with 
respect to a covered commodity and cotton on a 
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farm, means the number of acres established under 
section 1101 and 1302 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 7911, 
7952) or section 1101 and 1302 of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 8711, 
8752), as in effect on September 30, 2012, subject 
to any adjustment under section 1105 of this Act. 
(3) COUNTY REVENUE LOSS COVERAGE TRIG-
GER.—The term ‘‘county revenue loss coverage trig-
ger’’, with respect to a covered commodity for a crop 
year, means the amount determined by the Secretary 
under section 1107(c)(5) to determine whether rev-
enue loss coverage payments are required to be pro-
vided for that crop year. 
(4) COVERED COMMODITY.—The term ‘‘covered 
commodity’’ means wheat, oats, and barley (includ-
ing wheat, oats, and barley used for haying and 
grazing), corn, grain sorghum, long grain rice, me-
dium grain rice, pulse crops, soybeans, other oil-
seeds, and peanuts. 
(5) EFFECTIVE
PRICE.—The term ‘‘effective 
price’’, with respect to a covered commodity for a 
crop year, means the price calculated by the Sec-
retary under section 1107(b)(2) to determine wheth-
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er price loss coverage payments are required to be 
provided for that crop year. 
(6) EXTRA LONG STAPLE COTTON.—The term 
‘‘extra long staple cotton’’ means cotton that— 
(A) is produced from pure strain varieties 
of the Barbadense species or any hybrid of the 
species, or other similar types of extra long sta-
ple cotton, designated by the Secretary, having 
characteristics needed for various end uses for 
which United States upland cotton is not suit-
able and grown in irrigated cotton-growing re-
gions of the United States designated by the 
Secretary or other areas designated by the Sec-
retary as suitable for the production of the vari-
eties or types; and 
(B) is ginned on a roller-type gin or, if au-
thorized by the Secretary, ginned on another 
type gin for experimental purposes. 
(7) FARM BASE ACRES.—The term ‘‘farm base 
acres’’ means the sum of the base acreage for all 
covered commodities and cotton on a farm in effect 
as of September 30, 2012, and subject to any ad-
justment under section 1105. 
(8) MEDIUM GRAIN RICE.—The term ‘‘medium 
grain rice’’ includes short grain rice. 
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(9) MIDSEASON PRICE.—The term ‘‘midseason 
price’’ means the applicable national average market 
price received by producers for the first 5 months of 
the applicable marketing year, as determined by the 
Secretary. 
(10) OTHER OILSEED.—The term ‘‘other oil-
seed’’ means a crop of sunflower seed, rapeseed, 
canola, safflower, flaxseed, mustard seed, crambe, 
sesame seed, or any oilseed designated by the Sec-
retary. 
(11) PAYMENT ACRES.— 
(A) IN GENERAL.—Except as provided in 
subparagraphs (B) through (D), the term ‘‘pay-
ment acres’’, with respect to the provision of 
price loss coverage payments and revenue loss 
coverage payments, means— 
(i) 85 percent of total acres planted 
for the year to each covered commodity on 
a farm; and 
(ii) 30 percent of approved total acres 
prevented from being planted for the year 
to each covered commodity on a farm. 
(B) MAXIMUM.—The total quantity of pay-
ment acres determined under subparagraph (A) 
shall not exceed the farm base acres. 
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(C) REDUCTION.—If the sum of all pay-
ment acres for a farm exceeds the limits estab-
lished under subparagraph (B), the Secretary 
shall reduce the payment acres applicable to 
each crop proportionately. 
(D) EXCLUSION.—The term ‘‘payment 
acres’’ does not include any crop subsequently 
planted during the same crop year on the same 
land for which the first crop is eligible for pay-
ments under this subtitle, unless the crop was 
approved for double cropping in the county, as 
determined by the Secretary. 
(12) PAYMENT
YIELD.—The term ‘‘payment 
yield’’ means the yield established for counter-cycli-
cal payments under section 1102 or 1302 of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7912, 7952), section 1102 of the Food, Con-
servation, and Energy Act of 2008 (7 U.S.C. 8712), 
as in effect on September 30, 2012, or under section 
1106 of this Act, for a farm for a covered com-
modity. 
(13) PRICE LOSS COVERAGE.—The term ‘‘price 
loss coverage’’ means coverage provided under sec-
tion 1107(b). 
(14) PRODUCER.— 
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(A) IN GENERAL.—The term ‘‘producer’’ 
means an owner, operator, landlord, tenant, or 
sharecropper that shares in the risk of pro-
ducing 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 ex-
istence of a hybrid seed contract; and 
(ii) ensure that program requirements 
do not adversely affect the ability of the 
grower to receive a payment under this 
title. 
(15) PULSE
CROP.—The term ‘‘pulse crop’’ 
means dry peas, lentils, small chickpeas, and large 
chickpeas. 
(16) REFERENCE PRICE.—The term ‘‘reference 
price’’, with respect to a covered commodity for a 
crop year means the following: 
(A) Wheat, $5.50 per bushel. 
(B) Corn, $3.70 per bushel. 
(C) Grain sorghum, $3.95 per bushel. 
(D) Barley, $4.95 per bushel. 
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(E) Oats, $2.40 per bushel. 
(F) Long grain rice, $14.00 per hundred-
weight. 
(G) Medium grain rice, $14.00 per hun-
dredweight. 
(H) Soybeans, $8.40 per bushel. 
(I) Other oilseeds, $20.15 per hundred-
weight. 
(J) Peanuts $535.00 per ton. 
(K) Dry peas, $11.00 per hundredweight. 
(L) Lentils, $19.97 per hundredweight. 
(M) Small chickpeas, $19.04 per hundred-
weight. 
(N) Large chickpeas, $21.54 per hundred-
weight. 
(17) REVENUE
LOSS
COVERAGE.—The term 
‘‘revenue loss coverage’’ means coverage provided 
under section 1107(c). 
(18) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Agriculture. 
(19) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; 
and 
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(D) any other territory or possession of the 
United States. 
(20) TRANSITIONAL YIELD.—The term ‘‘transi-
tional yield’’ has the meaning given the term in sec-
tion 502(b) of the Federal Crop Insurance Act (7 
U.S.C. 1502(b)). 
(21) UNITED
STATES.—The term ‘‘United 
States’’, when used in a geographical sense, means 
all of the States. 
(22) UNITED STATES PREMIUM FACTOR.—The 
term ‘‘United States Premium Factor’’ means the 
percentage by which the difference in the United 
States loan schedule premiums for Strict Middling 
(SM) 11⁄8-inch upland cotton and for Middling (M) 
13⁄32-inch upland cotton exceeds the difference in the 
applicable premiums for comparable international 
qualities. 
SEC. 1105. BASE ACRES. 
(a) ADJUSTMENT OF BASE ACRES.— 
(1) IN GENERAL.—The Secretary shall provide 
for an adjustment, as appropriate, in the base acres 
for covered commodities and cotton for a farm when-
ever any of the following circumstances occurs: 
(A) A conservation reserve contract en-
tered into under section 1231 of the Food Secu-
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rity 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 conservation reserve contract by the 
Secretary. 
(C) The producer has eligible oilseed acre-
age 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, Con-
servation, 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 rev-
enue loss coverage with respect to the acreage added 
to the farm under this subsection or a prorated pay-
ment under the conservation reserve contract, but 
not both. 
(b) PREVENTION OF EXCESS BASE ACRES.— 
(1) REQUIRED REDUCTION.—If the sum of the 
base acres for a farm, together with the acreage de-
scribed in paragraph (2) exceeds the actual cropland 
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acreage of the farm, the Secretary shall reduce the 
base acres for 1 or more covered commodities or cot-
ton for the farm so that the sum of the base acres 
and acreage described in paragraph (2) does not ex-
ceed the actual cropland acreage of the farm. 
(2) OTHER ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following: 
(A) Any acreage on the farm enrolled in 
the conservation reserve program or wetlands 
reserve program (or successor 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 en-
rolled 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 (a)(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 cotton for 
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the farm against which the reduction required by 
paragraph (1) will be made. 
(4) EXCEPTION FOR DOUBLE-CROPPED ACRE-
AGE.—In applying paragraph (1), the Secretary 
shall make an exception in the case of double crop-
ping, as determined by the Secretary. 
(c) 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 cotton for the farm. 
(B) EFFECT OF REDUCTION.—A reduction 
under subparagraph (A) shall be permanent 
and made in a manner prescribed by the Sec-
retary. 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN
GENERAL.—The Secretary shall 
proportionately reduce base acres on a farm for 
covered commodities and cotton 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 subdivi-
sion is such that the land is unlikely to return 
to the previous agricultural use, unless the pro-
ducers on the farm demonstrate that the land— 
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(i) remains devoted to commercial ag-
ricultural production; or 
(ii) is likely to be returned to the pre-
vious agricultural use. 
(B) REQUIREMENT.—The Secretary shall 
establish procedures to identify land described 
in subparagraph (A). 
SEC. 1106. PAYMENT YIELDS. 
(a) ESTABLISHMENT AND PURPOSE.—For the pur-
pose of making payments under this subtitle, the Sec-
retary shall provide for the establishment of a yield for 
each farm for any designated oilseed for which a payment 
yield was not established 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
OIL-
SEEDS.— 
(1) DETERMINATION OF AVERAGE YIELD.—In 
the case of designated oilseeds, the Secretary shall 
determine the average 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.— 
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(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 des-
ignated oilseed determined under para-
graph (1). 
(ii) The ratio resulting from dividing 
the national average yield for the des-
ignated 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 INFOR-
MATION AVAILABLE.—To the extent that na-
tional average yield information for a des-
ignated oilseed is not available, the Secretary 
shall use such information as the Secretary de-
termines 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 oil-
seed 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 
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of the county yield for the purpose of determining 
the average under paragraph (1). 
(4) NO HISTORIC YIELD DATA AVAILABLE.—In 
the case of establishing yields for designated oil-
seeds, if historic yield data is not available, the Sec-
retary shall use the ratio for dry peas calculated 
under paragraph (2)(A)(ii) in determining the yields 
for designated oilseeds, as determined to be fair and 
equitable by the Secretary. 
(c) EFFECT OF LACK OF PAYMENT YIELD.— 
(1) ESTABLISHMENT
BY
SECRETARY.—If no 
payment yield is otherwise established for a farm for 
which a covered commodity is planted and eligible to 
receive price loss coverage payments, the Secretary 
shall establish an appropriate payment yield for the 
covered commodity on the farm under paragraph 
(2). 
(2) USE
OF
SIMILARLY
SITUATED
FARMS.— 
Notwithstanding any other provision of law, to es-
tablish 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. 
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(d) SINGLE OPPORTUNITY TO UPDATE YIELDS USED 
TO DETERMINE PRICE LOSS COVERAGE PAYMENTS.— 
(1) ELECTION TO UPDATE.—At the sole discre-
tion of the owner of a farm, the owner of a farm 
shall have a 1-time opportunity to update the pay-
ment yields on a covered commodity-by-covered com-
modity basis that would otherwise be used in calcu-
lating any price loss coverage payment for covered 
commodities on the farm. 
(2) TIME FOR ELECTION.—The election under 
paragraph (1) shall be made at a time and manner 
to be in effect for the 2013 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 com-
modity 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 for the crop of the covered commodity on the 
farm for the 2008 through 2012 crop years, as de-
termined by the Secretary, excluding any crop year 
in which the acreage planted to the crop of the cov-
ered commodity was zero. 
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(4) USE OF COUNTY AVERAGE YIELD.—If the 
yield per planted acre for a crop of the covered com-
modity 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 com-
modity, 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). 
(5) EFFECT OF LACK OF PAYMENT YIELD.— 
(A) ESTABLISHMENT
BY
SECRETARY.— 
For purposes of this subsection, if no payment 
yield is otherwise established for a covered com-
modity on a farm, the Secretary shall establish 
an appropriate updated payment yield for the 
covered commodity on the farm under subpara-
graph (B). 
(B) 
USE
OF
SIMILARLY
SITUATED 
FARMS.—Notwithstanding any other provision 
of law, to establish an appropriate updated pay-
ment yield for a covered commodity on a farm 
as required by subparagraph (A), the Secretary 
shall take into consideration the farm program 
payment yields applicable to that covered com-
modity for similarly situated farms, but before 
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the yields for the similarly situated farms are 
updated as provided in this subsection. 
SEC. 1107. FARM RISK MANAGEMENT ELECTION. 
(a) IN GENERAL.— 
(1) PAYMENTS REQUIRED.—Except as provided 
in paragraph (2), if the Secretary determines that 
payments are required under subsection (b)(1) or 
(c)(2) for a covered commodity, the Secretary shall 
make payments for that covered commodity available 
under such subsection to producers on a farm pursu-
ant to the terms and conditions of this section. 
(2) 
PROHIBITION
ON
PAYMENTS; 
EXCEP-
TIONS.—Notwithstanding any other provision of this 
title, a producer on a farm may not receive price loss 
coverage payments or revenue loss coverage pay-
ments if the sum of the planted acres of covered 
commodities on the farm is 10 acres or less, as de-
termined by the Secretary, unless the producer 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. 
(b) PRICE LOSS COVERAGE.— 
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(1) PAYMENTS.—For each of the 2013 through 
2017 crop years, the Secretary shall make price loss 
coverage payments to producers on a farm for a cov-
ered commodity if the Secretary determines that— 
(A) the effective price for the covered com-
modity for the crop year; is less than 
(B) the reference price for the covered 
commodity for the crop year. 
(2) EFFECTIVE PRICE.—The effective price for 
a covered commodity for a crop year shall be the 
higher of— 
(A) the midseason price; or 
(B) the national average loan rate for a 
marketing assistance loan for the covered com-
modity in effect for crop years 2013 through 
2017 under subtitle B. 
(3) PAYMENT RATE.—The payment rate shall 
be equal to the difference between— 
(A) the reference price for the covered 
commodity; and 
(B) the effective price determined under 
paragraph (2) for the covered commodity; 
(4) PAYMENT AMOUNT.—If price loss coverage 
payments are required to be provided under this 
subsection for any of the 2013 through 2017 crop 
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years for a covered commodity, the amount of the 
price loss coverage payment to be paid to the pro-
ducers on a farm for the crop year shall be equal to 
the product obtained by multiplying— 
(A) the payment rate for the covered com-
modity under paragraph (3); 
(B) the payment yield for the covered com-
modity; and 
(C) the payment acres for the covered com-
modity. 
(5) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that price loss cov-
erage payments are required to be provided for the 
covered commodity, the payments shall be made be-
ginning October 1, or as soon as practicable there-
after, after the end of the applicable marketing year 
for the covered commodity. 
(6) SPECIAL RULE.—In determining the effec-
tive price for barley in paragraph (2), the Secretary 
shall use the all-barley price. 
(c) REVENUE LOSS COVERAGE.— 
(1) AVAILABLE AS AN ALTERNATIVE.—As an 
alternative to receiving price loss coverage payments 
under subsection (b) for a covered commodity, all of 
the owners of the farm may make a one-time, irrev-
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ocable election on a covered commodity-by-covered 
commodity basis to receive revenue loss coverage 
payments for each covered commodity in accordance 
with this subsection. If any of the owners of the 
farm make different elections on the same covered 
commodity on the farm, all of the owners of the 
farm shall be deemed to have not made the election 
available under this paragraph. 
(2) PAYMENTS.—In the case of owners of a 
farm that make the election described in paragraph 
(1) for a covered commodity, the Secretary shall 
make revenue loss coverage payments available 
under this subsection for each of the 2013 through 
2017 crop years if the Secretary determines that— 
(A) the actual county revenue for the crop 
year for the covered commodity; is less than 
(B) the county revenue loss coverage trig-
ger for the crop year for the covered com-
modity. 
(3) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that revenue loss cov-
erage payments are required to be provided for the 
covered commodity, payments shall be made begin-
ning October 1, or as soon as practicable thereafter, 
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after the end of the applicable marketing year for 
the covered commodity. 
(4) ACTUAL COUNTY REVENUE.—The amount 
of the actual county revenue for a crop year of a 
covered commodity shall be equal to the product ob-
tained by multiplying— 
(A) the actual county yield, as determined 
by the Secretary, for each planted acre for the 
crop year for the covered commodity; and 
(B) the higher of— 
(i) the midseason price; or 
(ii) the national average loan rate for 
a marketing assistance loan for the covered 
commodity in effect for crop years 2013 
through 2017 under subtitle B. 
(5) COUNTY REVENUE LOSS COVERAGE TRIG-
GER.— 
(A) IN
GENERAL.—The county revenue 
loss coverage trigger for a crop year for a cov-
ered commodity on a farm shall equal 85 per-
cent of the benchmark county revenue. 
(B) BENCHMARK COUNTY REVENUE.— 
(i) IN
GENERAL.—The benchmark 
county revenue shall be the product ob-
tained by multiplying— 
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(I) subject to clause (ii), the av-
erage historical county yield as deter-
mined by the Secretary for the most 
recent 5 crop years, excluding each of 
the crop years with the highest and 
lowest yields; and 
(II) subject to clause (iii), the av-
erage national marketing year average 
price for the most recent 5 crop years, 
excluding each of the crop years with 
the highest and lowest prices. 
(ii) YIELD CONDITIONS.—If the his-
torical county yield in clause (i)(I) for any 
of the 5 most recent crop years, as deter-
mined by the Secretary, is less than 70 
percent of the transitional yield, as deter-
mined by the Secretary, the amounts used 
for any of those years in clause (i)(I) shall 
be 70 percent of the transitional yield. 
(iii) REFERENCE PRICE.—If the na-
tional marketing year average price in 
clause (i)(II) 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 
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those years for the amounts in clause 
(i)(II). 
(6) PAYMENT RATE.—The payment rate shall 
be equal to the lesser of— 
(A) the difference between— 
(i) the county revenue loss coverage 
trigger for the covered commodity; and 
(ii) the actual county revenue for the 
crop year for the covered commodity; or 
(B) 10 percent of the benchmark county 
revenue for the crop year for the covered com-
modity. 
(7) PAYMENT AMOUNT.—If revenue loss cov-
erage payments under this subsection are required 
to be provided for any of the 2013 through 2017 
crop years of a covered commodity, the amount of 
the revenue loss coverage payment to be provided to 
the producers on a farm for the crop year shall be 
equal to the product obtained by multiplying— 
(A) the payment rate under paragraph (6); 
and 
(B) the payment acres of the covered com-
modity on the farm. 
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(8) DUTIES OF THE SECRETARY.—In providing 
revenue loss coverage payments under this sub-
section, the Secretary— 
(A) shall ensure that producers on a farm 
do not reconstitute the farm of the producers to 
void or change the election made under para-
graph (1); 
(B) to the maximum extent practicable, 
shall use all available information and analysis, 
including data mining, to check for anomalies 
in the provision of revenue loss coverage pay-
ments; 
(C) to the maximum extent practicable, 
shall calculate a separate county revenue loss 
coverage trigger for irrigated and nonirrigated 
covered commodities and a separate actual 
county revenue for irrigated and nonirrigated 
covered commodities; 
(D) shall assign a benchmark county yield 
for each planted acre for the crop year for the 
covered commodity on the basis of the yield his-
tory of representative farms in the State, re-
gion, or crop reporting district, as determined 
by the Secretary, if— 
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(i) the Secretary cannot establish the 
benchmark county yield for each planted 
acre for a crop year for a covered com-
modity in the county in accordance with 
paragraph (5); or 
(ii) the yield determined under para-
graph (5) is an unrepresentative average 
yield for the county (as determined by the 
Secretary); and 
(E) to the maximum extent practicable, 
shall ensure that in order to be eligible for a 
payment under this subsection, the producers 
on the farm suffered an actual loss on the cov-
ered commodity for the crop year for which 
payment is sought. 
SEC. 1108. PRODUCER AGREEMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on 
a farm may receive price loss coverage payments or 
revenue loss coverage payments 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 
requirements under subtitle B of title XII of 
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the Food Security Act of 1985 (16 U.S.C. 3811 
et seq.); 
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title 
XII of that Act (16 U.S.C. 3821 et seq.); and 
(C) to effectively control noxious weeds 
and otherwise maintain the land in accordance 
with sound agricultural practices, as determined 
by the Secretary. 
(2) COMPLIANCE.—The Secretary may issue 
such rules as the Secretary considers necessary to 
ensure producer compliance with the requirements of 
paragraph (1). 
(3) MODIFICATION.—At the request of the 
transferee or owner, the Secretary may modify the 
requirements of this subsection 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 
price loss coverage payments or revenue loss 
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coverage payments are provided shall result in 
the termination of the price loss coverage and 
revenue loss coverage, unless the transferee or 
owner of the acreage agrees to assume all obli-
gations under subsection (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a 
price loss coverage payment or revenue loss coverage 
payment dies, becomes incompetent, or is otherwise 
unable to receive the payment, the Secretary shall 
make the payment in accordance with rules issued 
by the Secretary. 
(c) ACREAGE REPORTS.—As a condition on the re-
ceipt 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) TENANTS AND SHARECROPPERS.—In carrying 
out this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and share-
croppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall 
provide for the sharing of price loss coverage payments 
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and revenue loss coverage payments among the producers 
on a farm on a fair and equitable basis. 
SEC. 1109. PERIOD OF EFFECTIVENESS. 
This subtitle shall be effective beginning with the 
2013 crop year of each covered commodity through the 
2017 crop year. 
Subtitle B—Marketing Loans 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) DEFINITION OF LOAN COMMODITY.—In this sub-
title, the term ‘‘loan commodity’’ means wheat, corn, grain 
sorghum, barley, oats, upland cotton, extra long staple 
cotton, long grain rice, medium grain rice, peanuts, soy-
beans, other oilseeds, graded wool, nongraded wool, mo-
hair, honey, dry peas, lentils, small chickpeas, and large 
chickpeas. 
(b) NONRECOURSE LOANS AVAILABLE.— 
(1) IN
GENERAL.—For each of the 2013 
through 2017 crops of each loan commodity, the 
Secretary shall make available to producers on a 
farm 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 con-
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ditions that are prescribed by the Secretary and at 
the loan rate established under section 1202 for the 
loan commodity. 
(c) ELIGIBLE PRODUCTION.—The producers on a 
farm shall be eligible for a marketing assistance loan 
under subsection (b) for any quantity of a loan commodity 
produced on the farm. 
(d) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (b), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet-
land protection requirements under subtitle C of title XII 
of that Act (16 U.S.C. 3821 et seq.) during the term of 
the loan. 
(e) SPECIAL RULES FOR PEANUTS.— 
(1) IN GENERAL.—This subsection shall apply 
only to producers of peanuts. 
(2) OPTIONS FOR OBTAINING LOAN.—A mar-
keting assistance loan under this section, and loan 
deficiency payments under section 1205, may be ob-
tained at the option of the producers on a farm 
through— 
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(A) a designated marketing association or 
marketing cooperative of producers that is ap-
proved by the Secretary; or 
(B) the Farm Service Agency. 
(3) STORAGE OF LOAN PEANUTS.—As a condi-
tion on the approval by the Secretary of an indi-
vidual or entity to provide storage for peanuts for 
which a marketing assistance loan is made under 
this section, the individual or entity shall agree— 
(A) to provide the storage on a nondiscrim-
inatory basis; and 
(B) to comply with such additional require-
ments as the Secretary considers appropriate to 
accomplish the purposes of this section and pro-
mote fairness in the administration of the bene-
fits of this section. 
(4) STORAGE, HANDLING, AND
ASSOCIATED 
COSTS.— 
(A) IN GENERAL.—To ensure proper stor-
age 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. 
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(B) REDEMPTION AND FORFEITURE.—The 
Secretary shall— 
(i) require the repayment of handling 
and other associated costs paid under sub-
paragraph (A) for all peanuts pledged as 
collateral for a loan that is redeemed under 
this section; and 
(ii) pay storage, handling, and other 
associated costs for all peanuts pledged as 
collateral that are forfeited under this sec-
tion. 
(5) MARKETING.—A marketing association or 
cooperative may market peanuts for which a loan is 
made under this section in any manner that con-
forms to consumer needs, including the separation of 
peanuts by type and quality. 
(6) REIMBURSABLE
AGREEMENTS
AND
PAY-
MENT
OF
ADMINISTRATIVE
EXPENSES.—The Sec-
retary may implement any reimbursable agreements 
or provide for the payment of administrative ex-
penses under this subsection only in a manner that 
is consistent with those activities in regard to other 
loan commodities. 
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SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 
ASSISTANCE LOANS. 
(a) IN GENERAL.—For purposes of each of the 2013 
through 2017 crop years, the loan rate for a marketing 
assistance loan under section 1201 for a loan commodity 
shall be equal to the following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
(3) In the case of grain sorghum, $1.95 per 
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 the 2013 and each subsequent crop year, the 
simple average of the adjusted prevailing world price 
for the 2 immediately preceding marketing years, as 
determined by the Secretary and announced October 
1 preceding the next domestic plantings, but in no 
case less than $0.47 per pound or more than $0.52 
per pound. 
(7) In the case of extra long staple cotton, 
$0.7977 per pound. 
(8) In the case of long grain rice, $6.50 per 
hundredweight. 
(9) In the case of medium grain rice, $6.50 per 
hundredweight. 
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(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 oil-
seeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Sec-
retary. 
(12) In the case of dry peas, $5.40 per hun-
dredweight. 
(13) In the case of lentils, $11.28 per hundred-
weight. 
(14) In the case of small chickpeas, $7.43 per 
hundredweight. 
(15) In the case of large chickpeas, $11.28 per 
hundredweight. 
(16) In the case of graded wool, $1.15 per 
pound. 
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(17) In the case of nongraded wool, $0.40 per 
pound. 
(18) In the case of mohair, $4.20 per pound. 
(19) In the case of honey, $0.69 per pound. 
(20) In the case of peanuts, $355 per ton. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-
SEEDS.—The Secretary shall establish a single loan rate 
in each county for each kind of other oilseeds described 
in subsection (a)(11). 
SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan com-
modity, a marketing assistance loan under section 1201 
shall have a term of 9 months beginning on the first day 
of the first month after the month in which the loan is 
made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may 
not extend the term of a marketing assistance loan for 
any loan commodity. 
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the 
producers on a farm to repay a marketing assistance loan 
under section 1201 for a loan commodity (other than up-
land cotton, long grain rice, medium grain rice, extra long 
staple cotton, peanuts and confectionery and each other 
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kind of sunflower seed (other than oil sunflower seed)) at 
a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); 
(2) a rate (as determined by the Secretary) 
that— 
(A) is calculated based on average market 
prices for the loan commodity during the pre-
ceding 30-day period; and 
(B) will minimize discrepancies in mar-
keting loan benefits across State boundaries 
and across county boundaries; or 
(3) a rate that the Secretary may develop using 
alternative methods for calculating a repayment rate 
for a loan commodity that the Secretary determines 
will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
the commodity by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; 
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(D) allow the commodity produced in the 
United States to be marketed freely and com-
petitively, both domestically and internationally; 
and 
(E) minimize discrepancies in marketing 
loan benefits across State boundaries and 
across county boundaries. 
(b) REPAYMENT RATES FOR UPLAND COTTON, LONG 
GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 
shall permit producers to repay a marketing assistance 
loan under section 1201 for upland cotton, long grain rice, 
and medium grain rice at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the prevailing world market price for the 
commodity, as determined and adjusted by the Sec-
retary in accordance with this section. 
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE 
COTTON.—Repayment of a marketing assistance loan for 
extra long staple cotton shall be at the loan rate estab-
lished for the commodity under section 1202, plus interest 
(determined in accordance with section 163 of the Federal 
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Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7283)). 
(d) PREVAILING WORLD MARKET PRICE.—For pur-
poses of this section and section 1207, the Secretary shall 
prescribe by regulation— 
(1) a formula to determine the prevailing world 
market price for each of upland cotton, long grain 
rice, and medium grain rice; and 
(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.— 
(1) RICE.—The prevailing world market price 
for long grain rice and medium grain rice deter-
mined 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 in-
clude— 
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(i) a reduction equal to any United 
States Premium Factor for upland cotton 
of a quality higher than Middling (M) 
13⁄32-inch; and 
(ii) the average costs to market the 
commodity, including average transpor-
tation costs, as determined by the Sec-
retary; and 
(B) may be further adjusted, during the 
period beginning on the date of enactment of 
this Act and ending on July 31, 2018, if the 
Secretary determines the adjustment is nec-
essary— 
(i) to minimize potential loan forfeit-
ures; 
(ii) to minimize the accumulation of 
stocks of upland cotton by the Federal 
Government; 
(iii) to ensure that upland cotton pro-
duced in the United States can be mar-
keted freely and competitively, both domes-
tically and internationally; and 
(iv) to ensure an appropriate transi-
tion between current-crop and forward- 
crop price quotations, except that the Sec-
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retary 
may 
use 
forward-crop 
price 
quotations prior to July 31 of a marketing 
year only if— 
(I) there are insufficient current- 
crop price quotations; and 
(II) 
the 
forward-crop 
price 
quotation is the lowest such quotation 
available. 
(3) GUIDELINES
FOR
ADDITIONAL
ADJUST-
MENTS.—In making adjustments under this sub-
section, the Secretary shall establish a mechanism 
for determining and announcing the adjustments in 
order to avoid undue disruption in the United States 
market. 
(f) REPAYMENT RATES FOR CONFECTIONERY AND 
OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 
shall permit the producers on a farm to repay a marketing 
assistance loan under section 1201 for confectionery and 
each other kind of sunflower seed (other than oil sunflower 
seed) at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
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(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effec-
tive for each of the 2013 through 2017 crop years, the 
Secretary shall make cotton storage payments available in 
the same manner, and at the same rates as the Secretary 
provided storage payments for the 2006 crop of cotton, 
except that the rates shall be reduced by 10 percent. 
(h) REPAYMENT RATE
FOR PEANUTS.—The Sec-
retary shall permit producers on a farm to repay a mar-
keting assistance loan for peanuts under subsection (a) at 
a rate that is the lesser of— 
(1) the loan rate established for peanuts under 
subsection (b), plus interest (determined in accord-
ance with section 163 of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) a rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
peanuts by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and 
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(D) allow peanuts produced in the United 
States to be marketed freely and competitively, 
both domestically and internationally. 
(i) AUTHORITY TO TEMPORARILY ADJUST REPAY-
MENT RATES.— 
(1) ADJUSTMENT AUTHORITY.—In the event of 
a severe disruption to marketing, transportation, or 
related infrastructure, the Secretary may modify the 
repayment rate otherwise applicable under this sec-
tion for marketing assistance loans under section 
1201 for a loan commodity. 
(2) DURATION.—Any adjustment made under 
paragraph (1) in the repayment rate for marketing 
assistance loans for a loan commodity shall be in ef-
fect on a short-term and temporary basis, as deter-
mined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY
OF
LOAN
DEFICIENCY
PAY-
MENTS.— 
(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary may make loan deficiency 
payments available to producers on a farm that, al-
though eligible to obtain a marketing assistance loan 
under section 1201 with respect to a loan com-
modity, agree to forgo obtaining the loan for the 
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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 section 
1201. 
(B) LOAN DEFICIENCY PAYMENT.—Effec-
tive for the 2013 through 2017 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 si-
lage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a 
loan commodity or commodity referred to in subsection 
(a)(2) shall be equal to the product obtained by multi-
plying— 
(1) the payment rate determined under sub-
section (c) for the commodity; by 
(2) the quantity of the commodity produced by 
the eligible producers, excluding any quantity for 
which the producers obtain a marketing assistance 
loan under section 1201. 
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(c) PAYMENT RATE.— 
(1) IN GENERAL.—In the case of a loan com-
modity, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for the loan commodity; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(2) UNSHORN PELTS.—In the case of unshorn 
pelts, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for ungraded wool; exceeds 
(B) the rate at which a marketing assist-
ance loan for ungraded wool may be repaid 
under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or si-
lage derived from a loan commodity, the payment 
rate shall be the amount by which— 
(A) the loan rate established under section 
1202 for the loan commodity from which the 
hay or silage is derived; exceeds 
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(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(d) EXCEPTION
FOR EXTRA LONG STAPLE COT-
TON.—This section shall not apply with respect to extra 
long staple cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETER-
MINATION.—The Secretary shall determine the amount of 
the loan deficiency payment to be made under this section 
to the producers on a farm with respect to a quantity of 
a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection 
(c) as of the date the producers request the payment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN
GENERAL.—Effective for the 2013 
through 2017 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, bar-
ley, or oats for the grazing of livestock, the Sec-
retary shall make a payment to the producer under 
this section if the producer enters into an agreement 
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with the Secretary to forgo any other harvesting of 
the wheat, barley, or oats on that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effec-
tive for the 2013 through 2017 crop years, with re-
spect 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 de-
scribed in subsection (a)(1) shall be equal to the 
amount determined by multiplying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect, as of the 
date of the agreement, for the county in which 
the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of wheat, 
barley, or oats; and 
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(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to that loan com-
modity on the farm; or 
(II) in the case of a farm without a 
payment yield for that loan commodity, an 
appropriate yield established by the Sec-
retary in a manner consistent with section 
1106(c) of this Act. 
(2) GRAZING
OF
TRITICALE
ACREAGE.—The 
amount of a payment made under this section to a 
producer on a farm described in subsection (a)(2) 
shall be equal to the amount determined by multi-
plying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect for 
wheat, as of the date of the agreement, for the 
county in which the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of triticale; 
and 
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(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to wheat on the 
farm; or 
(II) in the case of a farm without a 
payment yield for wheat, an appropriate 
yield established by the Secretary in a 
manner consistent with section 1106(c) of 
this Act. 
(c) TIME, MANNER, AND AVAILABILITY
OF PAY-
MENT.— 
(1) TIME AND MANNER.—A payment under this 
section shall be made at the same time and in the 
same manner as loan deficiency payments are made 
under section 1205. 
(2) AVAILABILITY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish an availability period for the payments 
authorized by this section. 
(B) CERTAIN COMMODITIES.—In the case 
of wheat, barley, and oats, the availability pe-
riod shall be consistent with the availability pe-
riod for the commodity established by the Sec-
retary for marketing assistance loans author-
ized by this subtitle. 
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(d) PROHIBITION ON CROP INSURANCE INDEMNITY 
OR NONINSURED CROP ASSISTANCE.—A 2013 through 
2017 crop of wheat, barley, oats, or triticale planted on 
acreage that a producer elects, in the agreement required 
by 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 au-
thorized under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) or noninsured crop assistance under section 
196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR 
UPLAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.— 
In this subsection, 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 during the 
period beginning on August 1, 2013, and end-
ing on July 31, 2018, as provided in this sub-
section. 
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(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, deliv-
ered to a definable and significant international 
market, as determined by the Secretary, ex-
ceeds the prevailing world market price, there 
shall immediately be in effect a special import 
quota. 
(3) QUANTITY.—The quota shall be equal to 
the consumption during a 1-week period of cotton by 
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 Secretary’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 
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required by paragraph (2), except that a special 
quota period may not be established under this sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 
1974 (19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing 
year under the special import quota established 
under this subsection may not exceed the equivalent 
of 10 week’s consumption of upland cotton by do-
mestic mills at the seasonally adjusted average rate 
of the 3 months immediately preceding the first spe-
cial import quota established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
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(1) DEFINITIONS.—In this subsection: 
(A) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption of 
cotton during the most recent 3 months 
for which official data of the Department 
of Agriculture are available or, in the ab-
sence of sufficient data, as estimated by 
the Secretary; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton during the preceding 6 marketing 
years; or 
(II) cumulative exports of upland 
cotton plus outstanding export sales 
for the marketing year in which the 
quota is established. 
(B) LIMITED
GLOBAL
IMPORT
QUOTA.— 
The term ‘‘limited global import quota’’ means 
a 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— 
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(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; 
and 
(iii) imports to the latest date avail-
able during the marketing year. 
(2) PROGRAM.—The President shall carry out 
an import quota program that provides that when-
ever the Secretary determines and announces that 
the average price of the base quality of upland cot-
ton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of the quality of cotton in 
the markets for the preceding 36 months, notwith-
standing any other provision of law, there shall im-
mediately be in effect a limited global import quota 
subject to the following conditions: 
(A) QUANTITY.—The quantity of the quota 
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which official data of the Department of Ag-
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riculture are available or, in the absence of suf-
ficient data, as estimated by the Secretary. 
(B) QUANTITY
IF
PRIOR
QUOTA.—If a 
quota has been established under this sub-
section 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 de-
mand. 
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—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 
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
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(D) QUOTA
ENTRY
PERIOD.—When a 
quota is established under this subsection, cot-
ton 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 over-
laps an existing quota period or a special quota pe-
riod established under subsection (a). 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall, on a monthly basis, make eco-
nomic 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 begin-
ning on August 1, 2012, the value of the assistance 
provided under paragraph (1) shall be 3 cents per 
pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made 
available only to domestic users of upland cotton 
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that certify that the assistance shall be used only to 
acquire, construct, install, modernize, develop, con-
vert, or expand land, plant, buildings, equipment, fa-
cilities, or machinery. 
(4) REVIEW
OR
AUDIT.—The Secretary may 
conduct such review or audit of the records of a do-
mestic user under this subsection as the Secretary 
determines necessary to carry out this subsection. 
(5) IMPROPER
USE
OF
ASSISTANCE.—If the 
Secretary determines, after a review or audit of the 
records of the domestic user, that economic adjust-
ment assistance under this subsection was not used 
for the purposes specified in paragraph (3), the do-
mestic user shall be— 
(A) liable for the repayment of the assist-
ance to the Secretary, plus interest, as deter-
mined by the Secretary; and 
(B) ineligible to receive assistance under 
this subsection for a period of 1 year following 
the determination of the Secretary. 
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 
LONG STAPLE COTTON. 
(a) COMPETITIVENESS PROGRAM.—Notwithstanding 
any other provision of law, during the period beginning 
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on the date of enactment of this Act through July 31, 
2018, the Secretary shall carry out a program— 
(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple cot-
ton produced in the United States; and 
(3) to ensure that extra long staple cotton pro-
duced in the United States remains competitive in 
world markets. 
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 
the program, the Secretary shall make payments available 
under this section whenever— 
(1) for a consecutive 4-week period, the world 
market price for the lowest priced competing growth 
of extra long staple cotton (adjusted to United 
States quality and location and for other factors af-
fecting the competitiveness of such cotton), as deter-
mined 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 com-
petitiveness of such cotton), as determined by the 
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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 sec-
tion 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 subsection, the term ‘‘high moisture state’’ 
means corn or grain sorghum having a moisture con-
tent in excess of Commodity Credit Corporation 
standards for marketing assistance loans made by 
the Secretary under section 1201. 
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(2) RECOURSE LOANS AVAILABLE.—For each of 
the 2013 through 2017 crops of corn and grain sor-
ghum, the Secretary shall make available recourse 
loans, as determined by the Secretary, to producers 
on a farm that— 
(A) normally harvest all or a portion of 
their crop of corn or grain sorghum in a high 
moisture state; 
(B) present— 
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill, 
distillery, or other similar entity approved 
by the Secretary, pursuant to regulations 
issued by the Secretary; or 
(ii) field or other physical measure-
ments of the standing or stored crop in re-
gions of the United States, as determined 
by the Secretary, that do not have certified 
commercial scales from which certified 
scale tickets may be obtained within rea-
sonable proximity of harvest operation; 
(C) certify that the producers on the farm 
were the owners of the feed grain at the time 
of delivery to, and that the quantity to be 
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placed under loan under this subsection was in 
fact harvested on the farm and delivered to, a 
feedlot, feed mill, or commercial or on-farm 
high-moisture storage facility, or to a facility 
maintained by the users of corn and grain sor-
ghum in a high moisture state; and 
(D) comply with deadlines established by 
the Secretary for harvesting the corn or grain 
sorghum and submit applications for loans 
under this subsection within deadlines estab-
lished by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 
A loan under this subsection shall be made on a 
quantity of corn or grain sorghum of the same crop 
acquired by the producer equivalent to a quantity 
determined by multiplying— 
(A) the acreage of the corn or grain sor-
ghum in a high moisture state harvested on the 
farm of the producer; by 
(B) the lower of the farm program pay-
ment yield used to make payments under sub-
title A or the actual yield on a field, as deter-
mined by the Secretary, that is similar to the 
field from which the corn or grain sorghum was 
obtained. 
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(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For each of the 2013 through 2017 crops of upland 
cotton and extra long staple cotton, the Secretary shall 
make available recourse seed cotton loans, as determined 
by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate es-
tablished 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 sub-
section (e), the Secretary may make appropriate adjust-
ments in the loan rates for any loan commodity (other 
than cotton) for differences in grade, type, quality, loca-
tion, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan 
level for the commodity will, on the basis of the anticipated 
incidence of the factors, be equal to the level of support 
determined in accordance with this subtitle and subtitles 
C through E. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
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(1) IN GENERAL.—The Secretary may establish 
loan rates for a crop for producers in individual 
counties in a manner that results in the lowest loan 
rate being 95 percent of the national average loan 
rate, if those loan rates do not result in an increase 
in outlays. 
(2) PROHIBITION.—Adjustments under this 
subsection shall not result in an increase in the na-
tional 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 ad-
justments 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 infor-
mation used in determining quality adjustments 
under this subsection; 
(B) adjustments in the premiums or dis-
counts associated with upland cotton with a sta-
ple length of 33 or above due to micronaire 
with the goal of eliminating any unnecessary ar-
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tificial splits in the calculations of the pre-
miums or discounts; and 
(C) such other adjustments as the Sec-
retary determines appropriate, after consulta-
tions conducted in accordance with paragraph 
(3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton in-
dustry. 
(B) INAPPLICABILITY OF FEDERAL ADVI-
SORY COMMITTEE ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton qual-
ity adjustments implemented pursuant to this sub-
section and may make further adjustments to the 
administration of the loan program for upland cot-
ton, by revoking or revising any adjustment taken 
under paragraph (2). 
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(e) RICE.—The Secretary shall not make adjust-
ments in the loan rates for long grain rice and medium 
grain rice, except for differences in grade and quality (in-
cluding milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION
OF CURRENT PROGRAM
AND 
LOAN RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘each of the 
2012 through 2017 crop years’’. 
(2) SUGAR BEETS.—Section 156(b)(2) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(b)(2)) is amended by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
(3) EFFECTIVE PERIOD.—Section 156(i) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(i)) is amended by striking 
‘‘2012’’ and inserting ‘‘2017’’. 
(b) FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
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1359bb(a)(1)) is amended by striking ‘‘2012’’ and 
inserting ‘‘2017’’. 
(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 in-
serting ‘‘2017’’. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN PROTECTION 
AND DAIRY MARKET STABILIZATION PROGRAMS 
SEC. 1401. DEFINITIONS. 
In this part: 
(1) ACTUAL DAIRY PRODUCER MARGIN.—The 
term ‘‘actual dairy producer margin’’ means the dif-
ference between the all-milk price and the average 
feed cost, as calculated under section 1402. 
(2) ALL-MILK
PRICE.—The term ‘‘all-milk 
price’’ means the average price received, per hun-
dredweight of milk, by dairy producers for all milk 
sold to plants and dealers in the United States, as 
determined by the Secretary. 
(3) ANNUAL PRODUCTION HISTORY.—The term 
‘‘annual production history’’ means the production 
history determined for a participating dairy producer 
under section 1413(b) whenever the dairy producer 
purchases supplemental margin protection. 
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(4) 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. 
(5) BASIC
PRODUCTION
HISTORY.—The term 
‘‘basic production history’’ means the production 
history determined for a participating dairy producer 
under section 1413(a) for provision of basic margin 
protection. 
(6) CONSECUTIVE
TWO-MONTH
PERIOD.—The 
term ‘‘consecutive two-month period’’ refers to the 
two-month period consisting of the months of Janu-
ary and February, March and April, May and June, 
July and August, September and October, or No-
vember and December, respectively. 
(7) DAIRY PRODUCER.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the term ‘‘dairy producer’’ means an 
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individual or entity that directly or indirectly 
(as determined by the Secretary)— 
(i) shares in the risk of producing 
milk; and 
(ii) makes contributions (including 
land, labor, management, equipment, or 
capital) to the dairy operation of the indi-
vidual or entity that are at least commen-
surate with the share of the individual or 
entity of the proceeds of the operation. 
(B) 
ADDITIONAL
OWNERSHIP
STRUC-
TURES.—The Secretary shall determine addi-
tional ownership structures to be covered by the 
definition of dairy producer. 
(8) HANDLER.— 
(A) IN
GENERAL.—The term ‘‘handler’’ 
means the initial individual or entity making 
payment to a dairy producer for milk produced 
in the United States and marketed for commer-
cial use. 
(B) PRODUCER-HANDLER.—The term in-
cludes a ‘‘producer-handler’’ when the producer 
satisfies the definition in subparagraph (A). 
(9) MARGIN PROTECTION PROGRAM.—The term 
‘‘margin protection program’’ means the dairy pro-
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ducer margin protection program required by sub-
part A. 
(10) PARTICIPATING
DAIRY
PRODUCER.—The 
term ‘‘participating dairy producer’’ means a dairy 
producer that— 
(A) signs up under section 1412 to partici-
pate in the margin protection program under 
subpart A; and 
(B) as a result, also participates in the sta-
bilization program under subpart B. 
(11) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Agriculture. 
(12) 
STABILIZATION
PROGRAM.—The 
term 
‘‘stabilization program’’ means the dairy market sta-
bilization program required by subpart B for all par-
ticipating dairy producers. 
(13) STABILIZATION
PROGRAM
BASE.—The 
term ‘‘stabilization program base’’, with respect to a 
participating dairy producer, means the stabilization 
program base calculated for the producer under sec-
tion 1431(b). 
(14) UNITED
STATES.—The term ‘‘United 
States’’, in a geographical sense, means the 50 
States, the District of Columbia, American Samoa, 
Guam, the Commonwealth of the Northern Mariana 
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Islands, the Commonwealth of Puerto Rico, the Vir-
gin Islands of the United States, and any other ter-
ritory or possession of the United States. 
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC-
TUAL DAIRY PRODUCER 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 re-
ported in the Market News-Monthly Soybean Meal 
Price Report by the Secretary. 
(3) The price of alfalfa hay for a month shall 
be the price received during that month by farmers 
in the United States for alfalfa hay, as reported in 
the monthly Agricultural Prices report by the Sec-
retary. 
(b) CALCULATION
OF ACTUAL DAIRY PRODUCER 
MARGINS.— 
(1) MARGIN PROTECTION PROGRAM.—For use 
in the margin protection program under subpart A, 
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the Secretary shall calculate the actual dairy pro-
ducer margin for each consecutive two-month period 
by subtracting— 
(A) the average feed cost for that consecu-
tive two-month period, determined in accord-
ance with subsection (a); from 
(B) the all-milk price for that consecutive 
two-month period. 
(2) STABILIZATION PROGRAM.—For use in the 
stabilization program under subpart B, the Sec-
retary shall calculate each month the actual dairy 
producer margin for the preceding month by sub-
tracting— 
(A) the average feed cost for that pre-
ceding month, determined in accordance with 
subsection (a); from 
(B) the all-milk price for that preceding 
month. 
(3) TIME
FOR
CALCULATIONS.—The calcula-
tions required by paragraphs (1) and (2) shall be 
made as soon as practicable each month using the 
full month price of the applicable reference month, 
but in no case shall the calculation be made later 
than the last business day of the month. 
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Subpart A—Dairy Producer Margin Protection 
Program 
SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCER MARGIN 
PROTECTION PROGRAM. 
The Secretary shall establish and administer a dairy 
producer margin protection program for the purpose of 
protecting dairy producer income by paying participating 
dairy producers— 
(1) basic margin protection payments when ac-
tual dairy producer margins are less than the 
threshold levels for such payments; and 
(2) supplemental margin protection payments if 
purchased by a participating dairy producer. 
SEC. 1412. PARTICIPATION OF DAIRY PRODUCERS IN MAR-
GIN PROTECTION PROGRAM. 
(a) ELIGIBILITY.—All dairy producers in the United 
States are eligible to participate in the margin protection 
program, except that a dairy producer must sign up with 
the Secretary before the producer may receive— 
(1) basic margin protection payments under 
section 1414; and 
(2) if the dairy producer purchases supple-
mental margin protection under section 1415, sup-
plemental margin protection payments under such 
section. 
(b) SIGN-UP PROCESS.— 
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(1) IN GENERAL.—The Secretary shall allow all 
interested dairy producers to sign up to participate 
in the margin protection program. The Secretary 
shall specify the manner and form by which a dairy 
producer must sign up to participate in the margin 
protection program. 
(2) TREATMENT
OF
MULTI-PRODUCER
OPER-
ATIONS.—If a dairy operation consists of more than 
one dairy producer, all of the dairy producers of the 
operation shall be treated as a single dairy producer 
for purposes of— 
(A) registration to receive basic margin 
protection and purchase supplemental margin 
protection; 
(B) payment of the administrative fee 
under subsection (e) and producer premiums 
under section 1415; and 
(C) participation in the stabilization pro-
gram under subpart B. 
(3) TREATMENT
OF
PRODUCERS
WITH
MUL-
TIPLE DAIRY OPERATIONS.—If a dairy producer op-
erates two or more dairy operations, each dairy op-
eration of the producer shall require a separate reg-
istration to receive basic margin protection and pur-
chase supplemental margin protection. Only those 
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dairy operations so registered shall be subject to the 
stabilization program. 
(c) TIME FOR SIGN UP.— 
(1) EXISTING DAIRY PRODUCERS.—During the 
one-year period beginning on the date of the initi-
ation of the sign-up period for the margin protection 
program, a dairy producer that is actively engaged 
in a dairy operation as of such date may sign up 
with the Secretary— 
(A) to receive basic margin protection; and 
(B) if the producer elects, to purchase sup-
plemental margin protection. 
(2) NEW ENTRANTS.—A dairy producer that 
has no existing interest in a dairy operation as of 
the date of the initiation of the sign-up period for 
the margin protection program, but that, after such 
date, establishes a new dairy operation, may sign up 
with the Secretary during the one year period begin-
ning on the date on which the dairy operation first 
markets milk commercially— 
(A) to receive basic margin protection; and 
(B) if the producer elects, to purchase sup-
plemental margin protection. 
(d) RETROACTIVITY PROVISION.— 
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(1) NOTICE OF AVAILABILITY OF RETROACTIVE 
PROTECTION.—Not later than 30 days after the ef-
fective date of this subtitle, the Secretary shall pub-
lish a notice in the Federal Register to inform dairy 
producers of the availability of retroactive basic mar-
gin protection and retroactive supplemental margin 
protection, subject to the condition that interested 
producers must file a notice of intent (in such form 
and manner as the Secretary specifies in the Federal 
Register notice)— 
(A) to participate in the margin protection 
program and receive basic margin protection; 
and 
(B) at the election of the producer under 
paragraph (3), to also obtain supplemental 
margin protection. 
(2) RETROACTIVE
BASIC
MARGIN
PROTEC-
TION.— 
(A) AVAILABILITY.—If a dairy producer 
files a notice of intent under paragraph (1) to 
participate in the margin protection program 
before the initiation of the sign-up period for 
the margin protection program and subse-
quently signs up for the margin protection pro-
gram, the producer shall receive basic margin 
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