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In the House of Representatives, U. S., 
September 28, 2013. 
Resolved, That the House agree to the amendment of the 
Senate to the bill (H.R. 2642) entitled ‘‘An Act to provide 
for the reform and continuation of agricultural and other pro-
grams of the Department of Agriculture through fiscal year 
2018, and for other purposes.’’, with the following 
HOUSE AMENDMENT TO SENATE AMENDMENT: 
In lieu of the matter proposed to be inserted by the 
amendment of the Senate to the text of the bill, insert 
the following: 
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 
2013’’. 
(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.
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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 INSURANCE PROGRAM 
Sec. 1401. Dairy producer margin insurance program. 
Sec. 1402. Rulemaking. 
PART II—REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED 
PROVISIONS 
Sec. 1411. Repeal of dairy product price support and milk income loss contract 
programs. 
Sec. 1412. Repeal of dairy export incentive program. 
Sec. 1413. Extension of dairy forward pricing program. 
Sec. 1414. Extension of dairy indemnity program. 
Sec. 1415. Extension of dairy promotion and research program. 
Sec. 1416. Repeal of Federal Milk Marketing Order Review Commission. 
PART III—EFFECTIVE DATE 
Sec. 1421. Effective date. 
Subtitle E—Supplemental Agricultural Disaster Assistance Programs 
Sec. 1501. Supplemental agricultural disaster assistance. 
Sec. 1502. National Drought Council and National Drought Policy Action Plan. 
Subtitle F—Administration 
Sec. 1601. Administration generally. 
Sec. 1602. Repeal of permanent price support authority. 
Sec. 1603. Payment limitations. 
Sec. 1603A. Payments limited to active farmers. 
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. 
Sec. 1613. Protection of producer information. 
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. Establishment and administration. 
Sec. 2203. Evaluation of applications. 
Sec. 2204. Duties of producers. 
Sec. 2205. Limitation on payments. 
Sec. 2206. Conservation innovation grants and payments. 
Sec. 2207. 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. 
Sec. 2507. Emergency watershed protection program. 
Subtitle G—Funding and Administration 
Sec. 2601. Funding. 
Sec. 2602. Technical assistance. 
Sec. 2603. Reservation of funds to provide assistance to certain farmers or ranch-
ers for conservation access. 
Sec. 2604. Annual report on program enrollments and assistance.
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Sec. 2605. Review of conservation practice standards. 
Sec. 2606. Administrative requirements applicable to all conservation programs. 
Sec. 2607. Standards for State technical committees. 
Sec. 2608. Rulemaking authority. 
Sec. 2609. Wetlands mitigation. 
Sec. 2610. Lesser prairie-chicken conservation report. 
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. 
Sec. 3002. Support for organizations through which 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. 
Sec. 3007. Assistance for stockpiling and rapid transportation, delivery, and dis-
tribution of shelf-stable prepackaged foods. 
Sec. 3008. General provisions. 
Sec. 3009. Prepositioning of agricultural commodities. 
Sec. 3010. Annual report regarding food aid programs and activities. 
Sec. 3011. Deadline for agreements to finance sales or to provide other assistance. 
Sec. 3012. Authorization of appropriations. 
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. 
Sec. 3202. Bill Emerson Humanitarian Trust Act. 
Sec. 3203. Promotion of agricultural exports to emerging markets. 
Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition 
Program. 
Sec. 3205. Technical assistance for specialty crops.
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Sec. 3206. Global Crop Diversity Trust. 
Sec. 3207. Under Secretary of Agriculture for Foreign Agricultural Services. 
Sec. 3208. Department of Agriculture certificates of origin. 
TITLE IV—SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM 
Sec. 4000. Short Title. 
Sec. 4001. Preventing payment of cash to recipients of supplemental nutrition as-
sistance benefits for the return of empty bottles and cans used 
to contain food purchased with benefits provided under the pro-
gram. 
Sec. 4002. Retailers. 
Sec. 4003. Enhancing services to elderly and disabled supplemental nutrition as-
sistance program participants. 
Sec. 4004. Food distribution program on Indian reservations. 
Sec. 4005. Updating program eligibility. 
Sec. 4006. Exclusion of medical marijuana from excess medical expense deduc-
tion. 
Sec. 4007. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 4008. Eligibility disqualifications. 
Sec. 4009. Repeal of State work program waiver authority. 
Sec. 4010. Ending supplemental nutrition assistance program benefits for lottery 
or gambling winners. 
Sec. 4011. Improving security of food assistance. 
Sec. 4012. Demonstration projects on acceptance of benefits of mobile trans-
actions. 
Sec. 4013. Use of benefits for purchase of community-supported agriculture share. 
Sec. 4014. Restaurant meals program. 
Sec. 4015. Mandating State immigration verification. 
Sec. 4016. Data exchange standardization for improved interoperability. 
Sec. 4017. Pilot projects to improve Federal-State cooperation in identifying and 
reducing fraud in the supplemental nutrition assistance pro-
gram. 
Sec. 4018. Prohibiting government-sponsored recruitment activities. 
Sec. 4019. Repeal of bonus program. 
Sec. 4020. Funding of employment and training programs. 
Sec. 4021. Monitoring employment and training programs. 
Sec. 4022. Cooperation with program research and evaluation. 
Sec. 4023. Pilot projects to reduce dependency and increase work effort in the 
supplemental nutrition assistance program. 
Sec. 4024. Authorization of appropriations. 
Sec. 4025. Limitation on use of block grant to Puerto Rico. 
Sec. 4026. Assistance for community food projects. 
Sec. 4027. Emergency food assistance. 
Sec. 4028. Nutrition education. 
Sec. 4029. Retailer trafficking. 
Sec. 4030. Technical and conforming amendments. 
Sec. 4031. Tolerance level for excluding small errors. 
Sec. 4032. Commonwealth of the Northern Mariana Islands pilot program. 
Sec. 4033. Annual State report on verification of SNAP participation. 
Sec. 4034. Termination of existing agreement. 
Sec. 4035. Service of traditional foods in public facilities. 
Sec. 4036. Testing applicants for unlawful use of controlled substances. 
Sec. 4037. Eligibility disqualifications for certain convicted felons.
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Sec. 4038. Expungement of unused supplemental nutrition assistance program 
benefits. 
Sec. 4039. Pilot projects to promote work and increase State accountability in the 
supplemental nutrition assistance program. 
Sec. 4040. Improved wage verification using the National Directory of New 
Hires. 
Sec. 4041. Feasibility study for Indian tribes. 
Sec. 4042. Commodity distribution program. 
Sec. 4043. Commodity supplemental food program. 
Sec. 4044. Distribution of surplus commodities to special nutrition projects. 
Sec. 4045. Processing of commodities. 
Sec. 4046. Farmers’ market nutrition program. 
Sec. 4047. Nutrition information and awareness pilot program. 
Sec. 4048. Fresh fruit and vegetable program. 
Sec. 4049. Additional authority for purchase of fresh fruits, vegetables, and other 
specialty food crops. 
Sec. 4050. Encouraging locally and regionally grown and raised food. 
Sec. 4051. Review of public health benefits of white potatoes. 
Sec. 4052. Healthy Food Financing Initiative. 
Sec. 4053. Review of sole-source contracts in Federal nutrition programs. 
Sec. 4054. Purchase of Halal and Kosher food for emergency food assistance pro-
gram. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
Sec. 5001. Eligibility for farm ownership loans. 
Sec. 5002. Conservation loan and loan guarantee program. 
Sec. 5003. 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. Elimination of rural residency requirement for operating loans to 
youth. 
Sec. 5103. Authority to waive personal liability for youth loans due to cir-
cumstances beyond borrower control. 
Sec. 5104. Microloans. 
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 eli-
gibility changes.
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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. Utilization of loan guarantees for community facilities. 
Sec. 6005. Rural water and wastewater circuit rider program. 
Sec. 6006. Tribal college and university essential community facilities. 
Sec. 6007. Essential community facilities technical assistance and training. 
Sec. 6008. Emergency and imminent community water assistance grant program. 
Sec. 6009. Household water well systems. 
Sec. 6010. Rural business and industry loan program. 
Sec. 6011. Rural cooperative development grants. 
Sec. 6012. Locally or regionally produced agricultural food products. 
Sec. 6013. Intermediary relending program. 
Sec. 6014. Rural college coordinated strategy. 
Sec. 6015. Rural water and waste disposal infrastructure. 
Sec. 6016. Simplified applications. 
Sec. 6017. Grants for NOAA weather radio transmitters. 
Sec. 6018. Rural microentrepreneur assistance program. 
Sec. 6019. Delta Regional Authority. 
Sec. 6020. Northern Great Plains Regional Authority. 
Sec. 6021. 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. Rural utilities service contracting authority. 
Sec. 6104. Guarantees for bonds and notes issued for electrification or telephone 
purposes. 
Sec. 6105. Expansion of 911 access. 
Sec. 6106. 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. 
Sec. 6206. Certain Federal actions not to be considered major. 
Sec. 6207. Telemedicine and distance learning services in rural areas. 
Sec. 6208. Regional economic and infrastructure development.
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TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS 
Subtitle A—National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 
Sec. 7101. Option to be included as non-land-grant college of agriculture. 
Sec. 7102. National Agricultural Research, Extension, Education, and Economics 
Advisory Board. 
Sec. 7103. Specialty crop committee. 
Sec. 7104. Veterinary services grant program. 
Sec. 7105. Grants and fellowships for food and agriculture sciences education. 
Sec. 7106. Policy research centers. 
Sec. 7107. Repeal of human nutrition intervention and health promotion research 
program. 
Sec. 7108. Repeal of pilot research program to combine medical and agricultural 
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 Program for Hispanic Agricultural Workers and 
Youth. 
Sec. 7117. Competitive grants for international agricultural science and edu-
cation programs. 
Sec. 7118. Repeal of research equipment grants. 
Sec. 7119. University research. 
Sec. 7120. Extension service. 
Sec. 7121. Auditing, reporting, bookkeeping, and administrative requirements. 
Sec. 7122. Supplemental and alternative crops. 
Sec. 7123. Capacity building grants for NLGCA institutions. 
Sec. 7124. Aquaculture assistance programs. 
Sec. 7125. Rangeland research programs. 
Sec. 7126. Special authorization for biosecurity planning and response. 
Sec. 7127. Distance education and resident instruction grants program for insu-
lar area institutions of higher education. 
Sec. 7128. Matching funds requirement. 
Sec. 7129. Sense of Congress regarding expansion of the land grant program to 
include enhanced funding and additional institutions. 
Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 
Sec. 7201. Best utilization of biological applications. 
Sec. 7202. Integrated management systems. 
Sec. 7203. Sustainable agriculture technology development and transfer program. 
Sec. 7204. National training program. 
Sec. 7205. National Genetics Resources Program. 
Sec. 7206. 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.
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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. Centers of excellence. 
Sec. 7215. Repeal of red meat safety research center. 
Sec. 7216. Assistive technology program for farmers with disabilities. 
Sec. 7217. National rural information center clearinghouse. 
Subtitle C—Agricultural Research, Extension, and Education Reform Act of 
1998 
Sec. 7301. Relevance and merit of agricultural research, extension, and education 
funded by the Department. 
Sec. 7302. Integrated research, education, and extension competitive grants pro-
gram. 
Sec. 7303. Repeal of coordinated program of research, extension, and education 
to improve viability of small and medium size dairy, livestock, 
and poultry operations. 
Sec. 7304. Fusarium Graminearum grants. 
Sec. 7305. Repeal of Bovine Johne’s disease control program. 
Sec. 7306. Grants for youth organizations. 
Sec. 7307. Specialty crop research initiative. 
Sec. 7308. Food animal residue avoidance database program. 
Sec. 7309. Repeal of national swine research center. 
Sec. 7310. Office of pest management policy. 
Sec. 7311. Repeal of studies of agricultural research, extension, and education. 
Subtitle D—Other Laws 
Sec. 7401. Critical Agricultural Materials Act. 
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994. 
Sec. 7403. Research Facilities Act. 
Sec. 7404. 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. 
Sec. 7410. Beginning farmer and rancher development program. 
Sec. 7411. Inclusion of American Samoa, Federated States of Micronesia, and 
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 planning, 
preparation, and response. 
Sec. 7503. Research and development of agricultural countermeasures. 
Sec. 7504. Agricultural biosecurity grant program.
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PART 2—MISCELLANEOUS 
Sec. 7511. Enhanced use lease authority pilot program. 
Sec. 7512. Grazinglands research laboratory. 
Sec. 7513. Budget submission and funding. 
Sec. 7514. Research and education grants for the study of antibiotic-resistant bac-
teria. 
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. 
Subtitle F—Miscellaneous Provisions 
Sec. 7601. Agreements with nonprofit organizations for National Arboretum. 
Sec. 7602. Cotton Disease Research Report. 
Sec. 7603. Acceptance of facility for Agricultural Research Service. 
Sec. 7604. Miscellaneous technical corrections. 
Sec. 7605. Legitimacy of industrial hemp research. 
TITLE VIII—FORESTRY 
Subtitle A—Repeal of Certain Forestry Programs 
Sec. 8001. Forest land enhancement program. 
Sec. 8002. Watershed forestry assistance program. 
Sec. 8003. Expired cooperative national forest products marketing program. 
Sec. 8004. Hispanic-serving institution agricultural land national resources lead-
ership program. 
Sec. 8005. Tribal watershed forestry assistance program. 
Sec. 8006. Separate Forest Service decisionmaking and appeals process. 
Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 
Programs 
Sec. 8101. State-wide assessment and strategies for forest resources. 
Sec. 8102. Forest Legacy Program. 
Sec. 8103. 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. 
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 For-
ests Restoration Act of 2003 to critical areas. 
Sec. 8304. Good neighbor authority.
•HR 2642 EAH1S 
Subtitle E—Miscellaneous Provisions 
Sec. 8401. Revision of strategic plan for forest inventory and analysis. 
Sec. 8402. Forest Service participation in ACES Program. 
Sec. 8403. Green science and technology transfer research under Forest and 
Rangeland Renewable Resources Research Act of 1978. 
Sec. 8404. Extension of stewardship contracts authority regarding use of designa-
tion by prescription to all thinning sales under National Forest 
Management Act of 1976. 
Sec. 8405. Reimbursement of fire funds expended by a State for management and 
suppression of certain wildfires. 
Sec. 8406. Ability of National Forest System lands to meet needs of local wood 
producing facilities for raw materials. 
Sec. 8407. Report on the National Forest System roads. 
Sec. 8408. Forest Service large airtanker and aerial asset firefighting recapital-
ization pilot program. 
Sec. 8409. Land conveyance, Jefferson National Forest in Wise County, Virginia. 
Sec. 8410. Categorical exclusion for forest projects in response to emergencies. 
TITLE IX—ENERGY 
Sec. 9001. Definition of renewable energy system. 
Sec. 9002. Biobased markets program. 
Sec. 9003. Biorefinery assistance. 
Sec. 9004. Repowering assistance program. 
Sec. 9005. Bioenergy Program for Advanced Biofuels. 
Sec. 9006. Biodiesel Fuel Education Program. 
Sec. 9007. Rural Energy for America Program. 
Sec. 9008. Biomass Research and Development. 
Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers. 
Sec. 9010. Biomass Crop Assistance Program. 
Sec. 9011. Community wood energy program. 
Sec. 9012. Repeal of biofuels infrastructure study. 
Sec. 9013. Repeal of renewable fertilizer study. 
Sec. 9014. Energy efficiency report for USDA facilities. 
TITLE X—HORTICULTURE 
Sec. 10001. Specialty crops market news allocation. 
Sec. 10002. Repeal of grant program to improve movement of specialty crops. 
Sec. 10003. Farmers market and local food promotion program. 
Sec. 10004. Organic agriculture. 
Sec. 10005. Investigations and enforcement of the Organic Foods Production Act 
of 1990. 
Sec. 10006. Food safety education initiatives. 
Sec. 10007. Specialty crop block grants. 
Sec. 10008. Department of Agriculture consultation regarding enforcement of cer-
tain labor law provisions. 
Sec. 10009. Report on honey. 
Sec. 10010. Bulk shipments of apples to Canada. 
Sec. 10011. Consolidation of plant pest and disease management and disaster 
prevention programs. 
Sec. 10012. Modification, cancellation, or suspension on basis of a biological 
opinion. 
Sec. 10013. Use and discharges of authorized pesticides. 
Sec. 10014. Seed not pesticide or device for purposes of importation.
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Sec. 10015. Stay of regulations related to Christmas Tree Promotion, Research, 
and Information Order. 
Sec. 10016. Study on proposed order pertaining to sulfuryl fluoride. 
Sec. 10017. Study on local and regional food production and program evaluation. 
Sec. 10018. Annual report on invasive species. 
TITLE XI—CROP INSURANCE 
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 performance-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 policies. 
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. Program compliance partnerships. 
Sec. 11023. Pilot programs. 
Sec. 11024. Technical amendments. 
Sec. 11025. Advance public notice of crop insurance policy and plan changes. 
TITLE XII—MISCELLANEOUS 
Subtitle A—Livestock 
Sec. 12101. Repeal of the National Sheep Industry Improvement Center. 
Sec. 12102. Repeal of certain regulations under the Packers and Stockyards Act, 
1921. 
Sec. 12103. Trichinae certification program. 
Sec. 12104. National Aquatic Animal Health Plan. 
Sec. 12105. Country of origin labeling. 
Sec. 12106. National animal health laboratory network. 
Sec. 12107. Repeal of duplicative catfish inspection program. 
Sec. 12108. National Poultry Improvement Program. 
Sec. 12109. Report on bovine tuberculosis in Texas. 
Sec. 12110. Economic fraud in wild and farm-raised seafood. 
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.
•HR 2642 EAH1S 
Sec. 12203. Socially Disadvantaged Farmers and Ranchers Policy Research Cen-
ter. 
Sec. 12204. Receipt for service or denial of service from certain department of ag-
riculture agencies. 
Subtitle C—Other Miscellaneous Provisions 
Sec. 12301. Grants to improve supply, stability, safety, and training of agricul-
tural labor force. 
Sec. 12302. Program benefit eligibility status for participants in high plains 
water study. 
Sec. 12303. Office of Tribal Relations. 
Sec. 12304. Military Veterans Agricultural Liaison. 
Sec. 12305. Prohibition on keeping GSA leased cars overnight. 
Sec. 12306. Noninsured crop assistance program. 
Sec. 12307. Ensuring high standards for agency use of scientific information. 
Sec. 12308. Evaluation required for purposes of prohibition on closure or reloca-
tion of county offices for the Farm Service Agency. 
Sec. 12309. Acer access and development program. 
Sec. 12310. Regulatory review by the Secretary of Agriculture. 
Sec. 12311. Prohibition on attending an animal fighting venture or causing a 
minor to attend an animal fighting venture. 
Sec. 12312. Prohibition against interference by State and local governments with 
production or manufacture of items in other States. 
Sec. 12313. Increased protection for agricultural interests in the Missouri River 
Basin. 
Sec. 12314. Increased protection for agricultural interests in the Black Dirt re-
gion. 
Sec. 12315. Protection of honey bees and other pollinators. 
Sec. 12316. Produce represented as grown in the United States when it is not in 
fact grown in the United States. 
Sec. 12317. Urban agriculture coordination. 
Sec. 12318. Sense of Congress on increased business opportunities for black farm-
ers, women, minorities, and small businesses. 
Sec. 12319. Sense of Congress regarding agriculture security programs. 
Sec. 12320. Report on water sharing. 
Sec. 12321. Scientific and economic analysis of the FDA Food Safety Moderniza-
tion Act. 
Sec. 12322. Improved Department of Agriculture consideration of economic im-
pact of regulations on small business. 
Sec. 12323. Silvicultural activities. 
Sec. 12324. Applicability of Spill Prevention, Control, and Countermeasure rule. 
Sec. 12325. Agricultural producer information disclosure. 
Sec. 12326. Report on National Ocean Policy. 
Sec. 12327. Sunsetting of programs. 
Subtitle D—Chesapeake Bay Accountability and Recovery 
Sec. 12401. Short title. 
Sec. 12402. Chesapeake Bay Crosscut Budget. 
Sec. 12403. Restoration through adaptive management. 
Sec. 12404. Independent Evaluator for the Chesapeake Bay Program. 
Sec. 12405. Definitions.
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of 2008 (7 U.S.C. 8715), as in effect on the day before the 
date of enactment of this Act, shall continue to apply 
through the 2013 crop year with respect to all covered com-
modities (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 determined 
by the Secretary under section 1107(c)(4) to deter-
mine whether revenue loss coverage payments are re-
quired to be provided for that crop year. 
(2) BASE ACRES.—The term ‘‘base acres’’, with 
respect to a covered commodity and cotton on a farm, 
means the number of acres established under sections 
1101 and 1302 of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 7911, 7952) or sec-
tions 1101 and 1302 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8711, 8752), as in ef-
fect on September 30, 2013, subject to any adjustment 
under section 1105 of this Act. For purposes of mak-
ing payments under subsections (b) and (c) of section
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1107, base acres are reduced by the payment acres 
calculated in section 1101(c). 
(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 revenue 
loss coverage payments are required to be provided for 
that crop year. 
(4) COVERED COMMODITY.—The term ‘‘covered 
commodity’’ means wheat, oats, and barley (including 
wheat, oats, and barley used for haying and grazing), 
corn, grain sorghum, long grain rice, medium grain 
rice, pulse crops, soybeans, other oilseeds, and pea-
nuts. 
(5) EFFECTIVE
PRICE.—The term ‘‘effective 
price’’, with respect to a covered commodity for a 
crop year, means the price calculated by the Secretary 
under section 1107(b)(2) to determine whether 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
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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 Sec-
retary or other areas designated by the Secretary 
as suitable for the production of the varieties or 
types; and 
(B) is ginned on a roller-type gin or, if au-
thorized by the Secretary, ginned on another 
type gin for experimental purposes. 
(7) FARM BASE ACRES.—The term ‘‘farm base 
acres’’ means the sum of the base acreage for all cov-
ered commodities and cotton on a farm in effect as 
of September 30, 2013, and subject to any adjustment 
under section 1105. 
(8) MEDIUM GRAIN RICE.—The term ‘‘medium 
grain rice’’ includes short grain rice. 
(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.
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(10) OTHER OILSEED.—The term ‘‘other oilseed’’ 
means a crop of sunflower seed, rapeseed, canola, saf-
flower, flaxseed, mustard seed, crambe, sesame seed, or 
any oilseed designated by the Secretary. 
(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 total acres approved 
as 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. 
(C) REDUCTION.—If the sum of all payment 
acres for a farm exceeds the limits established 
under subparagraph (B), the Secretary shall re-
duce the payment acres applicable to each crop 
proportionately.
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(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-cyclical 
payments under section 1102 or 1302 of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 
7912, 7952), section 1102 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8712), as in effect 
on September 30, 2013, or under section 1106 of this 
Act, for a farm for a covered commodity. 
(13) PRICE LOSS COVERAGE.—The term ‘‘price 
loss coverage’’ means coverage provided under section 
1107(b). 
(14) PRODUCER.— 
(A) IN
GENERAL.—The term ‘‘producer’’ 
means an owner, operator, landlord, tenant, or 
sharecropper that shares in the risk of producing 
a crop and is entitled to share in the crop avail-
able for marketing from the farm, or would have 
shared had the crop been produced.
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(B) HYBRID SEED.—In determining wheth-
er a grower of hybrid seed is a producer, the Sec-
retary shall— 
(i) not take into consideration the ex-
istence of a hybrid seed contract; and 
(ii) ensure that program requirements 
do not adversely affect the ability of the 
grower to receive a payment under this 
title. 
(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. 
(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.
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(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 ‘‘rev-
enue 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 
(D) any other territory or possession of the 
United States. 
(20) TEMPERATE
JAPONICA
RICE.—The term 
‘‘temperate japonica rice’’ means rice that is grown 
in high altitudes or temperate regions of high lati-
tudes with cooler climate conditions, in the Western 
United States, as determined by the Secretary.
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(21) 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)). 
(22) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, when used in a geographical sense, means all 
of the States. 
(23) 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 entered 
into under section 1231 of the Food Security Act 
of 1985 (16 U.S.C. 3831) with respect to the 
farm expires or is voluntarily terminated.
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(B) Cropland is released from coverage 
under a conservation reserve contract by the Sec-
retary. 
(C) The producer has eligible oilseed acreage 
as the result of the Secretary designating addi-
tional oilseeds, which shall be determined in the 
same manner as eligible oilseed acreage under 
section 1101(a)(1)(D) of the Food, Conservation, 
and 
Energy 
Act 
of 
2008 
(7 
U.S.C. 
8711(a)(1)(D)). 
(2) SPECIAL CONSERVATION RESERVE ACREAGE 
PAYMENT RULES.—For the crop year in which a base 
acres adjustment under subparagraph (A) or (B) of 
paragraph (1) is first made, the owner of the farm 
shall elect to receive price loss coverage or revenue loss 
coverage with respect to the acreage added to the farm 
under this subsection or a prorated payment under 
the conservation reserve contract, but not both. 
(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 
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
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acreage described in paragraph (2) does not exceed 
the actual cropland acreage of the farm. 
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following: 
(A) Any acreage on the farm enrolled in the 
conservation reserve program or 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 enrolled 
in a Federal conservation program for which 
payments are made in exchange for not pro-
ducing an agricultural commodity on the acre-
age. 
(C) If the Secretary designates additional 
oilseeds, any eligible oilseed acreage, which shall 
be determined in the same manner as eligible oil-
seed 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 
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
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make an exception in the case of double cropping, 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 Secretary. 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN GENERAL.—The Secretary shall pro-
portionately reduce base acres on a farm for cov-
ered commodities and cotton for land that has 
been subdivided and developed for multiple resi-
dential units or other nonfarming uses if the size 
of the tracts and the density of the subdivision 
is such that the land is unlikely to return to the 
previous agricultural use, unless the producers 
on the farm demonstrate that the land— 
(i) remains devoted to commercial ag-
ricultural production; or 
(ii) is likely to be returned to the pre-
vious agricultural use.
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(B) REQUIREMENT.—The Secretary shall 
establish procedures to identify land described in 
subparagraph (A). 
SEC. 1106. PAYMENT YIELDS. 
(a) ESTABLISHMENT AND PURPOSE.—For the purpose 
of making payments under this subtitle, the Secretary 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 OILSEEDS.— 
(1) DETERMINATION OF AVERAGE YIELD.—In the 
case of designated oilseeds, the Secretary shall deter-
mine the average yield per planted acre for the des-
ignated oilseed on a farm for the 1998 through 2001 
crop years, excluding any crop year in which the 
acreage planted to the designated oilseed was zero. 
(2) ADJUSTMENT FOR PAYMENT YIELD.— 
(A) IN GENERAL.—The payment yield for a 
farm for a designated oilseed shall be equal to the 
product of the following: 
(i) The average yield for the designated 
oilseed determined under paragraph (1).
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(ii) The ratio resulting from dividing 
the national average yield for the designated 
oilseed for the 1981 through 1985 crops by 
the national average yield for the designated 
oilseed for the 1998 through 2001 crops. 
(B) NO NATIONAL AVERAGE YIELD INFOR-
MATION AVAILABLE.—To the extent that national 
average yield information for a designated oil-
seed is not available, the Secretary shall use such 
information as the Secretary determines to be 
fair and equitable to establish a national average 
yield under this section. 
(3) USE
OF
COUNTY
AVERAGE
YIELD.—If the 
yield per planted acre for a crop of a designated 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 of the 
county yield for the purpose of determining the aver-
age under paragraph (1). 
(4) NO HISTORIC YIELD DATA AVAILABLE.—In 
the case of establishing yields for designated oilseeds, 
if historic yield data is not available, the Secretary 
shall use the ratio for dry peas calculated under para-
graph (2)(A)(ii) in determining the yields for des-
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ignated oilseeds, as determined to be fair and equi-
table by the Secretary. 
(c) EFFECT OF LACK OF PAYMENT YIELD.— 
(1) ESTABLISHMENT BY SECRETARY.—If no pay-
ment 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.—To 
establish an appropriate payment yield for a covered 
commodity on a farm as required by paragraph (1), 
the Secretary shall take into consideration the farm 
program payment yields applicable to that covered 
commodity for similarly situated farms. The use of 
such data in an appeal, by the Secretary or by the 
producer, shall not be subject to any other provision 
of law. 
(d) SINGLE OPPORTUNITY TO UPDATE YIELDS USED 
TO 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 payment 
yields on a covered commodity-by-covered-commodity 
basis that would otherwise be used in calculating any
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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 2014 crop year as determined 
by the Secretary. 
(3) METHOD
OF
UPDATING
YIELDS.—If the 
owner of a farm elects to update yields under this 
subsection, the payment yield for a covered 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 determined by 
the Secretary, excluding any crop year in which the 
acreage planted to the crop of the covered commodity 
was zero. 
(4) USE
OF
COUNTY
AVERAGE
YIELD.—If the 
yield per planted acre for a crop of the covered 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
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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 commodity 
on a farm, the Secretary shall establish an ap-
propriate updated payment yield for the covered 
commodity on the farm under subparagraph (B). 
(B) USE OF SIMILARLY SITUATED FARMS.— 
To establish an appropriate payment 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 commodity for simi-
larly situated farms. The use of such data in an 
appeal, by the Secretary or by the producer, 
shall not be subject to any other provision of law. 
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
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under such subsection to producers on a farm pursu-
ant to the terms and conditions of this section. 
(2) PROHIBITION ON PAYMENTS; EXCEPTIONS.— 
Notwithstanding any other provision of this title, a 
producer on a farm may not receive price loss cov-
erage payments or revenue loss coverage payments if 
the sum of the planted acres of covered commodities 
on the farm is 10 acres or less, as determined by the 
Secretary, unless the producer is— 
(A) a socially disadvantaged farmer or 
rancher (as defined in section 355(e) of the Con-
solidated 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.— 
(1) PAYMENTS.—For the 2014 crop year and 
each succeeding crop year, the Secretary shall make 
price loss coverage payments to producers on a farm 
for a covered 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 com-
modity for the crop year.
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(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 such crop year under subtitle 
B. 
(3) PAYMENT RATE.—The payment rate shall be 
equal to the difference between— 
(A) the reference price for the covered com-
modity; 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 sub-
section for the 2014 crop year or any succeding crop 
year for a covered commodity, the amount of the price 
loss coverage payment to be paid to the producers on 
a farm for the crop year shall be equal to the product 
obtained by multiplying— 
(A) the payment rate for the covered com-
modity under paragraph (3); 
(B) the payment yield for the covered com-
modity; and
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(C) the payment acres for the covered com-
modity. 
(5) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that price loss coverage 
payments are required to be provided for the covered 
commodity, the payments shall be made beginning 
October 1, or as soon as practicable thereafter, after 
the end of the applicable marketing year for the cov-
ered commodity. 
(6) SPECIAL
RULE
FOR
BARLEY.—In deter-
mining the effective price for barley in paragraph (2), 
the Secretary shall use the all-barley price. 
(7) SPECIAL RULE FOR TEMPERATE JAPONICA 
RICE.—The Secretary shall provide a reference price 
with respect to temperate japonica rice in an amount 
equal to 115 percent of the amount established in sub-
paragraphs (F) and (G) of section 1104(16) in order 
to reflect price premiums. 
(c) REVENUE LOSS COVERAGE.— 
(1) AVAILABLE AS AN ALTERNATIVE.—As an al-
ternative 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-
ocable election on a covered commodity-by-covered- 
commodity basis to receive revenue loss coverage pay-
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ments 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 rev-
enue loss coverage payments available under this sub-
section for the 2014 crop year and each succeeding 
crop year 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 trigger 
for the crop year for the covered commodity. 
(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, 
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
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commodity shall be equal to the product obtained 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 such crop year 
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 covered 
commodity on a farm shall equal 85 percent of 
the benchmark county revenue. 
(B) BENCHMARK COUNTY REVENUE.— 
(i) 
IN
GENERAL.—The 
benchmark 
county revenue shall be the product obtained 
by multiplying— 
(I) subject to clause (ii), the aver-
age historical county yield as deter-
mined by the Secretary for the most re-
cent 5 crop years, excluding each of the
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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 histor-
ical county yield in clause (i)(I) for any of 
the 5 most recent crop years, as determined 
by the Secretary, is less than 70 percent of 
the transitional yield, as determined by the 
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 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—
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(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 rev-
enue for the crop year for the covered commodity. 
(7) PAYMENT AMOUNT.—If revenue loss coverage 
payments under this subsection are required to be 
provided for the 2014 crop year or any succeeding 
crop year 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. 
(8) DUTIES OF THE SECRETARY.—In providing 
revenue loss coverage payments under this subsection, 
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);
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(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 payments; 
(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 coun-
ty 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, region, 
or crop reporting district, as determined by the 
Secretary, if— 
(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
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(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 covered 
commodity for the crop year for which payment 
is sought. 
(d) ANNUAL REPORT.—The Secretary shall submit to 
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report annually containing an 
evaluation of the impact of price loss coverage and revenue 
loss coverage— 
(1) on the planting, production, price, and ex-
port of covered commodities; and 
(2) on the cost of each commodity program. 
(e) CAP
ON TOTAL OBLIGATIONS
AND EXPENDI-
TURES.—Notwithstanding any other provision of this sec-
tion, the total amount of price loss coverage payments and 
revenue loss coverage payments made under this section 
during the period of fiscal years 2014 through 2020 shall 
not exceed $16,956,500,000. Producer agreements required 
by section 1108 shall specifically state that payments made 
under this section shall be reduced as necessary to comply 
with this subsection.
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SEC. 1108. PRODUCER AGREEMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a 
farm may receive payments under this subtitle with 
respect to the farm, the producers shall agree, during 
the crop year for which the payments are made and 
in exchange for the payments— 
(A) to comply with applicable conservation 
requirements under subtitle B of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.); 
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title XII 
of that Act (16 U.S.C. 3821 et seq.); 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 para-
graph (1). 
(3) MODIFICATION.—At the request of the trans-
feree or owner, the Secretary may modify the require-
ments of this subsection if the modifications are con-
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sistent with the objectives of this subsection, as deter-
mined by the Secretary. 
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 
(1) TERMINATION.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), a transfer of (or change in) the 
interest of the producers on a farm for which 
payments under this subtitle are provided shall 
result in the termination of the payments, unless 
the transferee or owner of the acreage agrees to 
assume all obligations under subsection (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a 
payment under this subtitle dies, becomes incom-
petent, or is otherwise unable to receive the payment, 
the Secretary shall make the payment in accordance 
with rules issued by the Secretary. 
(c) ACREAGE REPORTS.—As a condition on the receipt 
of any benefits under this subtitle or subtitle B, the Sec-
retary shall require producers on a farm to submit to the 
Secretary annual acreage reports with respect to all crop-
land on the farm.
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(d) TENANTS AND SHARECROPPERS.—In carrying out 
this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and sharecroppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of payments made under this subtitle 
among the producers on a farm on a fair and equitable 
basis. 
Subtitle B—Marketing Loans 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) DEFINITION OF LOAN COMMODITY.—In this sub-
title, the term ‘‘loan commodity’’ means wheat, corn, grain 
sorghum, barley, oats, upland cotton, extra long staple cot-
ton, long grain rice, medium grain rice, peanuts, soybeans, 
other oilseeds, graded wool, nongraded wool, mohair, honey, 
dry peas, lentils, small chickpeas, and large chickpeas. 
(b) NONRECOURSE LOANS AVAILABLE.— 
(1) IN GENERAL.—For the 2014 crops and each 
succeeding annual crops of each loan commodity, the 
Secretary shall make available to producers on a farm 
nonrecourse marketing assistance loans for loan com-
modities produced on the farm. 
(2) TERMS AND CONDITIONS.—The marketing as-
sistance loans shall be made under terms and condi-
•HR 2642 EAH1S 
tions that are prescribed by the Secretary and at the 
loan rate established under section 1202 for the loan 
commodity. 
(c) ELIGIBLE PRODUCTION.—The producers on a farm 
shall be eligible for a marketing assistance loan under sub-
section (b) for any quantity of a loan commodity produced 
on the farm. 
(d) COMPLIANCE WITH CONSERVATION
AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (b), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland 
protection requirements under subtitle C of title XII of that 
Act (16 U.S.C. 3821 et seq.) during the term of the loan. 
(e) SPECIAL RULES FOR PEANUTS.— 
(1) IN GENERAL.—This subsection shall apply 
only to producers of peanuts. 
(2) OPTIONS
FOR
OBTAINING
LOAN.—A mar-
keting assistance loan under this section, and loan de-
ficiency payments under section 1205, may be ob-
tained at the option of the producers on a farm 
through—
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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 storage 
of peanuts for which a loan is made under this 
section, the Secretary shall pay handling and 
other associated costs (other than storage costs) 
incurred at the time at which the peanuts are 
placed under loan, as determined by the Sec-
retary.
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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 co-
operative may market peanuts for which a loan is 
made under this section in any manner that conforms 
to consumer needs, including the separation of pea-
nuts by type and quality. 
(6) REIMBURSABLE AGREEMENTS AND PAYMENT 
OF ADMINISTRATIVE EXPENSES.—The Secretary may 
implement any reimbursable agreements or provide 
for the payment of administrative expenses under this 
subsection only in a manner that is consistent with 
those activities in regard to other loan commodities.
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SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 
ASSISTANCE LOANS. 
(a) IN GENERAL.—For purposes of the 2014 crop year 
and each succeeding crop year, the loan rate for a mar-
keting assistance loan under section 1201 for a loan com-
modity shall be equal to the following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
(3) In the case of grain sorghum, $1.95 per bush-
el. 
(4) In the case of barley, $1.95 per bushel. 
(5) In the case of oats, $1.39 per bushel. 
(6) In the case of base quality of upland cotton, 
for the 2014 crop year and each succeeding 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 hun-
dredweight. 
(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 hun-
dredweight for each of the following kinds of oilseeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Sec-
retary. 
(12) In the case of dry peas, $5.40 per hundred-
weight. 
(13) In the case of lentils, $11.28 per hundred-
weight. 
(14) In the case of small chickpeas, $7.43 per 
hundredweight. 
(15) In the case of large chickpeas, $11.28 per 
hundredweight. 
(16) In the case of graded wool, $1.15 per pound. 
(17) In the case of nongraded wool, $0.40 per 
pound. 
(18) In the case of mohair, $4.20 per pound.
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(19) In the case of honey, $0.69 per pound. 
(20) In the case of peanuts, $355 per ton. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-
SEEDS.—The Secretary shall establish a single loan rate in 
each county for each kind of other oilseeds described in sub-
section (a)(11). 
SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan com-
modity, a marketing assistance loan under section 1201 
shall have a term of 9 months beginning on the first day 
of the first month after the month in which the loan is 
made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may 
not extend the term of a marketing assistance loan for any 
loan commodity. 
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the 
producers on a farm to repay a marketing assistance loan 
under section 1201 for a loan commodity (other than up-
land cotton, long grain rice, medium grain rice, extra long 
staple cotton, peanuts and confectionery and each other 
kind of sunflower seed (other than oil sunflower seed)) at 
a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
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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; 
(D) allow the commodity produced in the 
United States to be marketed freely and competi-
tively, both domestically and internationally; 
and
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(E) minimize discrepancies in marketing 
loan benefits across State boundaries and across 
county boundaries. 
(b) REPAYMENT RATES FOR UPLAND COTTON, LONG 
GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 
shall permit producers to repay a marketing assistance loan 
under section 1201 for upland cotton, long grain rice, and 
medium grain rice at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the prevailing world market price for the 
commodity, as determined and adjusted by the Sec-
retary in accordance with this section. 
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE 
COTTON.—Repayment of a marketing assistance loan for 
extra long staple cotton shall be at the loan rate established 
for the commodity under section 1202, plus interest (deter-
mined in accordance with section 163 of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)).
•HR 2642 EAH1S 
(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 ME-
DIUM GRAIN RICE.— 
(1) RICE.—The prevailing world market price 
for long grain rice and medium grain rice determined 
under subsection (d) shall be adjusted to United 
States quality and location. 
(2) COTTON.—The prevailing world market price 
for upland cotton determined under subsection (d)— 
(A) shall be adjusted to United States qual-
ity and location, with the adjustment to in-
clude— 
(i) a reduction equal to any United 
States Premium Factor for upland cotton of 
a quality higher than Middling (M) 13⁄32- 
inch; and
•HR 2642 EAH1S 
(ii) the average costs to market the 
commodity, including average transpor-
tation costs, as determined by the Secretary; 
and 
(B) may be further adjusted, during the pe-
riod beginning on the date of enactment of this 
Act and ending on July 31, 2019, if the Sec-
retary determines the adjustment is necessary— 
(i) to minimize potential loan forfeit-
ures; 
(ii) to minimize the accumulation of 
stocks of upland cotton by the Federal Gov-
ernment; 
(iii) to ensure that upland cotton pro-
duced in the United States can be marketed 
freely and competitively, both domestically 
and internationally; and 
(iv) to ensure an appropriate transi-
tion between current-crop and forward-crop 
price quotations, except that the Secretary 
may use forward-crop price quotations 
prior to July 31 of a marketing year only 
if— 
(I) there are insufficient current- 
crop price quotations; and
•HR 2642 EAH1S 
(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 
(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effective 
for the 2014 crop year and each succeeding crop year, the 
Secretary shall make cotton storage payments available in
•HR 2642 EAH1S 
the same manner, and at the same rates as the Secretary 
provided storage payments for the 2006 crop of cotton, ex-
cept that the rates shall be reduced by 10 percent. 
(h) REPAYMENT RATE FOR PEANUTS.—The Secretary 
shall permit producers on a farm to repay a marketing as-
sistance loan for peanuts under section 1201 at a rate that 
is the lesser of— 
(1) the loan rate established for peanuts under 
section 1202(a)(20), 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) a rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
peanuts by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and 
(D) allow peanuts produced in the United 
States to be marketed freely and competitively, 
both domestically and internationally. 
(i) AUTHORITY TO TEMPORARILY ADJUST REPAY-
MENT RATES.— 
(1) ADJUSTMENT AUTHORITY.—In the event of a 
severe disruption to marketing, transportation, or re-
•HR 2642 EAH1S 
lated infrastructure, the Secretary may modify the re-
payment rate otherwise applicable under this section 
for marketing assistance loans under section 1201 for 
a loan commodity. 
(2) DURATION.—Any adjustment made under 
paragraph (1) in the repayment rate for marketing 
assistance loans for a loan commodity shall be in ef-
fect on a short-term and temporary basis, as deter-
mined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— 
(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary may make loan deficiency 
payments available to producers on a farm that, al-
though eligible to obtain a marketing assistance loan 
under section 1201 with respect to a loan commodity, 
agree to forgo obtaining the loan for the commodity 
in return for loan deficiency payments under this sec-
tion. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) MARKETING ASSISTANCE LOANS.—Sub-
ject to subparagraph (B), nongraded wool in the 
form of unshorn pelts and hay and silage derived 
from a loan commodity are not eligible for a 
marketing assistance loan under section 1201.
•HR 2642 EAH1S 
(B) LOAN DEFICIENCY PAYMENT.—Effective 
for the 2014 crop year and each succeeding crop 
year, the Secretary may make loan deficiency 
payments available under this section to pro-
ducers on a farm that produce unshorn pelts or 
hay and silage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a 
loan commodity or commodity referred to in subsection 
(a)(2) shall be equal to the product obtained by multi-
plying— 
(1) the payment rate determined under sub-
section (c) for the commodity; by 
(2) the quantity of the commodity produced by 
the eligible producers, excluding any quantity for 
which the producers obtain a marketing assistance 
loan under section 1201. 
(c) PAYMENT RATE.— 
(1) IN GENERAL.—In the case of a loan com-
modity, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for the loan commodity; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204.
•HR 2642 EAH1S 
(2) UNSHORN PELTS.—In the case of unshorn 
pelts, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for ungraded wool; exceeds 
(B) the rate at which a marketing assist-
ance loan for ungraded wool may be repaid 
under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or si-
lage derived from a loan commodity, the payment 
rate shall be the amount by which— 
(A) the loan rate established under section 
1202 for the loan commodity from which the hay 
or silage is derived; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.— 
This section shall not apply with respect to extra long staple 
cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETER-
MINATION.—The Secretary shall determine the amount of 
the loan deficiency payment to be made under this section 
to the producers on a farm with respect to a quantity of 
a loan commodity or commodity referred to in subsection
•HR 2642 EAH1S 
(a)(2) using the payment rate in effect under subsection (c) 
as of the date the producers request the payment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN GENERAL.—Effective for the 2014 crop 
year and each succeeding crop year, in the case of a 
producer that would be eligible for a loan deficiency 
payment under section 1205 for wheat, barley, or 
oats, but that elects to use acreage planted to the 
wheat, barley, or oats for the grazing of livestock, the 
Secretary shall make a payment to the producer 
under this section if the producer enters into an 
agreement with the Secretary to forgo any other har-
vesting of the wheat, barley, or oats on that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effective 
for the 2014 crop year and each succeeding crop year, 
with respect to a producer on a farm that uses acre-
age 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 har-
vesting of triticale on that acreage. 
(b) PAYMENT AMOUNT.—
•HR 2642 EAH1S 
(1) IN GENERAL.—The amount of a payment 
made under this section to a producer on a farm de-
scribed in subsection (a)(1) shall be equal to the 
amount determined by multiplying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect, as of the 
date of the agreement, for the county in which 
the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of wheat, 
barley, or oats; and 
(ii)(I) the 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
•HR 2642 EAH1S 
producer on a farm described in subsection (a)(2) 
shall be equal to the amount determined by multi-
plying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect for wheat, 
as of the date of the agreement, for the county in 
which the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of triticale; 
and 
(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to wheat on the 
farm; or 
(II) in the case of a farm without a 
payment yield for wheat, an appropriate 
yield established by the Secretary in a man-
ner consistent with section 1106(c) of this 
Act. 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(1) TIME AND MANNER.—A payment under this 
section shall be made at the same time and in the
•HR 2642 EAH1S 
same manner as loan deficiency payments are made 
under section 1205. 
(2) AVAILABILITY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish an availability period for the payments 
authorized by this section. 
(B) CERTAIN COMMODITIES.—In the case of 
wheat, barley, and oats, the availability period 
shall be consistent with the availability period 
for the commodity established by the Secretary 
for marketing assistance loans authorized by this 
subtitle. 
(d) PROHIBITION ON CROP INSURANCE INDEMNITY OR 
NONINSURED CROP ASSISTANCE.—A 2014 crop or suc-
ceeding annual 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 eligi-
ble for an indemnity under a policy or plan of insurance 
authorized under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) or noninsured crop assistance under section 
196 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333).
•HR 2642 EAH1S 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In 
this subsection, the term ‘‘special import quota’’ 
means a quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN
GENERAL.—The President shall 
carry out an import quota program beginning 
on August 1, 2014, as provided in this sub-
section. 
(B) PROGRAM
REQUIREMENTS.—Whenever 
the Secretary determines and announces that for 
any consecutive 4-week period, the Friday 
through Thursday average price quotation for the 
lowest-priced United States growth, as quoted for 
Middling (M) 13⁄32-inch cotton, delivered to a de-
finable and significant international market, as 
determined by the Secretary, exceeds the pre-
vailing world market price, there shall imme-
diately be in effect a special import quota. 
(3) QUANTITY.—The quota shall be equal to the 
consumption during a 1-week period of cotton by do-
mestic mills at the seasonally adjusted average rate of 
the most recent 3 months for which official data of the
•HR 2642 EAH1S 
Department of Agriculture are available or, in the ab-
sence of sufficient data, as estimated by the Secretary. 
(4) APPLICATION.—The quota shall apply to up-
land cotton purchased not later than 90 days after the 
date of the Secretary’s announcement under para-
graph (2) and entered into the United States not later 
than 180 days after that date. 
(5) OVERLAP.—A special quota period may be 
established that overlaps any existing quota period if 
required by paragraph (2), except that a special 
quota period may not be established under this sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL
TARIFF
TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 1974 
(19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
•HR 2642 EAH1S 
(7) LIMITATION.—The quantity of cotton entered 
into the United States during any marketing year 
under the special import quota established under this 
subsection may not exceed the equivalent of 10 weeks’ 
consumption of upland cotton by domestic mills at 
the seasonally adjusted average rate of the 3 months 
immediately preceding the first special import quota 
established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
(1) DEFINITIONS.—In this subsection: 
(A) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption of 
cotton during the most recent 3 months for 
which official data of the Department of Ag-
riculture are available or, in the absence of 
sufficient data, as estimated by the Sec-
retary; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton during the preceding 6 marketing 
years; or
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(II) cumulative exports of upland 
cotton plus outstanding export sales for 
the marketing year in which the quota 
is established. 
(B) LIMITED GLOBAL IMPORT QUOTA.—The 
term ‘‘limited global import quota’’ means a 
quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(C) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Department 
of Agriculture— 
(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; and 
(iii) imports to the latest date avail-
able during the marketing year. 
(2) PROGRAM.—The President shall carry out an 
import quota program that provides that whenever 
the Secretary determines and announces that the av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot 
markets for a month exceeded 130 percent of the aver-
age price of the quality of cotton in the markets for
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the preceding 36 months, notwithstanding any other 
provision of law, there shall immediately be in effect 
a limited global import quota subject to the following 
conditions: 
(A) QUANTITY.—The quantity of the quota 
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which official data of the Department of Ag-
riculture are available or, in the absence of suffi-
cient data, as estimated by the Secretary. 
(B) QUANTITY IF PRIOR QUOTA.—If a quota 
has been established under this subsection during 
the preceding 12 months, the quantity of the 
quota next established under this subsection shall 
be the smaller of 21 days of domestic mill con-
sumption calculated under subparagraph (A) or 
the quantity required to increase the supply to 
130 percent of the demand. 
(C) PREFERENTIAL TARIFF TREATMENT.— 
The quantity under a limited global import 
quota shall be considered to be an in-quota quan-
tity for purposes of—
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(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. 
(D) QUOTA ENTRY PERIOD.—When a quota 
is established under this subsection, cotton may 
be entered under the quota during the 90-day pe-
riod beginning on the date the quota is estab-
lished by the Secretary. 
(3) NO OVERLAP.—Notwithstanding paragraph 
(2), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (a). 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary shall, on a monthly basis, make economic 
adjustment assistance available to domestic users of 
upland cotton in the form of payments for all docu-
mented use of that upland cotton during the previous
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monthly period regardless of the origin of the upland 
cotton. 
(2) VALUE OF ASSISTANCE.—Effective beginning 
on August 1, 2013, the value of the assistance pro-
vided 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 that 
certify that the assistance shall be used only to ac-
quire, construct, install, modernize, develop, convert, 
or expand land, plant, buildings, equipment, facili-
ties, or machinery. 
(4) REVIEW OR AUDIT.—The Secretary may con-
duct such review or audit of the records of a domestic 
user under this subsection as the Secretary determines 
necessary to carry out this subsection. 
(5) IMPROPER USE OF ASSISTANCE.—If the Sec-
retary determines, after a review or audit of the 
records of the domestic user, that economic adjustment 
assistance under this subsection was not used for the 
purposes specified in paragraph (3), the domestic user 
shall be— 
(A) liable for the repayment of the assist-
ance to the Secretary, plus interest, as deter-
mined by the Secretary; and
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(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, the Secretary shall carry out 
a program— 
(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple cotton 
produced in the United States; and 
(3) to ensure that extra long staple cotton pro-
duced in the United States remains competitive in 
world markets. 
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 
the program, the Secretary shall make payments available 
under this section whenever— 
(1) for a consecutive 4-week period, the world 
market price for the lowest priced competing growth 
of extra long staple cotton (adjusted to United States 
quality and location and for other factors affecting 
the competitiveness of such cotton), as determined by 
the Secretary, is below the prevailing United States
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price for a competing growth of extra long staple cot-
ton; and 
(2) the lowest priced competing growth of extra 
long staple cotton (adjusted to United States quality 
and location and for other factors affecting the com-
petitiveness of such cotton), as determined by the Sec-
retary, is less than 134 percent of the loan rate for 
extra long staple cotton. 
(c) ELIGIBLE RECIPIENTS.—The Secretary shall make 
payments available under this section to domestic users of 
extra long staple cotton produced in the United States and 
exporters of extra long staple cotton produced in the United 
States that enter into an agreement with the Commodity 
Credit Corporation to participate in the program under 
this section. 
(d) PAYMENT AMOUNT.—Payments under this section 
shall be based on the amount of the difference in the prices 
referred to in subsection (b)(1) during the fourth week of 
the consecutive 4-week period multiplied by the amount of 
documented purchases by domestic users and sales for ex-
port by exporters made in the week following such a con-
secutive 4-week period. 
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 
MOISTURE FEED GRAINS AND SEED COTTON. 
(a) HIGH MOISTURE FEED GRAINS.—
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(1) DEFINITION OF HIGH MOISTURE STATE.—In 
this subsection, the term ‘‘high moisture state’’ means 
corn or grain sorghum having a moisture content in 
excess of Commodity Credit Corporation standards 
for marketing assistance loans made by the Secretary 
under section 1201. 
(2) RECOURSE LOANS AVAILABLE.—For the 2014 
crop and each succeeding annual crop of corn and 
grain sorghum, the Secretary shall make available re-
course loans, as determined by the Secretary, to pro-
ducers 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
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commercial scales from which certified scale 
tickets may be obtained within reasonable 
proximity of harvest operation; 
(C) certify that the producers on the farm 
were the owners of the feed grain at the time of 
delivery to, and that the quantity to be placed 
under loan under this subsection was in fact 
harvested on the farm and delivered to, a feedlot, 
feed mill, or commercial or on-farm high-mois-
ture storage facility, or to a facility maintained 
by the users of corn and grain sorghum in a 
high moisture state; and 
(D) comply with deadlines established by 
the Secretary for harvesting the corn or grain 
sorghum and submit applications for loans 
under this subsection within deadlines estab-
lished by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 
A loan under this subsection shall be made on a 
quantity of corn or grain sorghum of the same crop 
acquired by the producer equivalent to a quantity de-
termined by multiplying— 
(A) the acreage of the corn or grain sor-
ghum in a high moisture state harvested on the 
farm of the producer; by
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(B) the lower of the farm program payment 
yield used to make payments under subtitle A or 
the actual yield on a field, as determined by the 
Secretary, that is similar to the field from which 
the corn or grain sorghum was obtained. 
(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For the 2014 crop and each succeeding annual crop 
of upland cotton and extra long staple cotton, the Secretary 
shall make available recourse seed cotton loans, as deter-
mined by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate estab-
lished for the commodity by the Secretary, plus interest (de-
termined in accordance with section 163 of the Federal Ag-
riculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—Subject to subsection 
(e), the Secretary may make appropriate adjustments in 
the loan rates for any loan commodity (other than cotton) 
for differences in grade, type, quality, location, and other 
factors. 
(b) MANNER
OF
ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan
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level for the commodity will, on the basis of the anticipated 
incidence of the factors, be equal to the level of support de-
termined in accordance with this subtitle and subtitle C. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
(1) IN GENERAL.—The Secretary may establish 
loan rates for a crop for producers in individual 
counties in a manner that results in the lowest loan 
rate being 95 percent of the national average loan 
rate, if those loan rates do not result in an increase 
in outlays. 
(2) PROHIBITION.—Adjustments under this sub-
section shall not result in an increase in the national 
average loan rate for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN GENERAL.—The Secretary may make ap-
propriate adjustments in the loan rate for cotton for 
differences in quality factors. 
(2) TYPES OF ADJUSTMENTS.—Loan rate adjust-
ments under paragraph (1) may include— 
(A) the use of non-spot market price data, 
in addition to spot market price data, that 
would enhance the accuracy of the price informa-
tion used in determining quality adjustments 
under this subsection;
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(B) adjustments in the premiums or dis-
counts associated with upland cotton with a sta-
ple length of 33 or above due to micronaire with 
the goal of eliminating any unnecessary artifi-
cial splits in the calculations of the premiums or 
discounts; and 
(C) such other adjustments as the Secretary 
determines appropriate, after consultations con-
ducted in accordance with paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton indus-
try. 
(B) INAPPLICABILITY
OF
FEDERAL
ADVI-
SORY
COMMITTEE
ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton quality 
adjustments implemented pursuant to this subsection 
and may make further adjustments to the administra-
tion of the loan program for upland cotton, by revok-
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ing or revising any adjustment taken under para-
graph (2). 
(e) RICE.—The Secretary shall not make adjustments 
in the loan rates for long grain rice and medium grain 
rice, except for differences in grade and quality (including 
milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION OF CURRENT PROGRAM AND LOAN 
RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the Fed-
eral Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘the 2012 crop 
year and each succeeding crop year’’. 
(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 
‘‘each of the 2009 through 2012 crop years’’ and in-
serting ‘‘the 2009 crop year and each succeeding crop 
year’’. 
(3) EFFECTIVE PERIOD.—Section 156(i) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(i)) is repealed.
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(b) 
FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359bb(a)(1)) is amended by striking ‘‘each of the 
2008 through 2012 crop years’’ and inserting ‘‘the 
2008 crop year and each succeeding crop year’’. 
(2) EFFECTIVE PERIOD.—Section 359i(a) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ii(a)) is amended by striking ‘‘only for the 2008 
through 2012 crop years’’ and inserting ‘‘for the 2008 
crop year and each succeeding crop year’’. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN INSURANCE 
PROGRAM 
SEC. 1401. DAIRY PRODUCER MARGIN INSURANCE PRO-
GRAM. 
Subtitle E of title I of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771 et seq.) is amended by 
adding at the end the following new section: 
‘‘SEC. 1511. DAIRY PRODUCER MARGIN INSURANCE PRO-
GRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ACTUAL
DAIRY
PRODUCER
MARGIN.—The 
term ‘actual dairy producer margin’ means the dif-
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ference between the all-milk price and the average feed 
cost, as calculated under subsection (b)(2). 
‘‘(2) ALL-MILK PRICE.—The term ‘all-milk price’ 
means the average price received, per hundredweight 
of milk, by dairy producers for all milk sold to plants 
and dealers in the United States, as reported by the 
National Agricultural Statistics Service. 
‘‘(3) AVERAGE FEED COST.—The term ‘average 
feed cost’ means the average cost of feed used by a 
dairy operation to produce a hundredweight of milk, 
determined under subsection (b)(1) using the sum of 
the following: 
‘‘(A) The product determined by multi-
plying— 
‘‘(i) 1.0728; by 
‘‘(ii) the price of corn per bushel. 
‘‘(B) The product determined by multi-
plying— 
‘‘(i) 0.00735; by 
‘‘(ii) the price of soybean meal per ton. 
‘‘(C) The product determined by multi-
plying— 
‘‘(i) 0.0137; by 
‘‘(ii) the price of alfalfa hay per ton.
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‘‘(4) CONSECUTIVE 2-MONTH PERIOD.—The term 
‘consecutive 2-month period’ refers to the 2-month pe-
riod consisting of the months of January and Feb-
ruary, March and April, May and June, July and 
August, September and October, or November and De-
cember, respectively. 
‘‘(5) DAIRY PRODUCER.—The term ‘dairy pro-
ducer’ means an individual or entity that directly or 
indirectly (as determined by the Secretary)— 
‘‘(A) shares in the risk of producing milk; 
and 
‘‘(B) makes contributions (including land, 
labor, management, equipment, or capital) to the 
dairy operation of the individual or entity that 
are at least commensurate with the share of the 
individual or entity of the proceeds of the oper-
ation. 
‘‘(6) MARGIN INSURANCE PROGRAM.—The term 
‘margin insurance program’ means the dairy pro-
ducer margin insurance program required by this sec-
tion. 
‘‘(7) PARTICIPATING
DAIRY
PRODUCER.—The 
term ‘participating dairy producer’ means a dairy 
producer that registers under subsection (d)(2) to par-
ticipate in the margin insurance program.
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‘‘(8) PRODUCTION HISTORY.—The term ‘produc-
tion history’ means the quantity of annual milk mar-
ketings determined for a dairy producer under sub-
section (e)(1). 
‘‘(9) UNITED STATES.—The term ‘United States’, 
in a geographical sense, means the 50 States. 
‘‘(b) CALCULATION OF AVERAGE FEED COST AND AC-
TUAL DAIRY PRODUCER MARGINS.— 
‘‘(1) CALCULATION OF AVERAGE FEED COST.— 
The Secretary shall calculate the national average 
feed cost for each month using the following data: 
‘‘(A) The price of corn for a month shall be 
the price received during that month by agricul-
tural producers in the United States for corn, as 
reported in the monthly Agriculture Prices re-
port by the Secretary. 
‘‘(B) The price of soybean meal for a month 
shall be the central Illinois price for soybean 
meal, as reported in the Market News–Monthly 
Soybean Meal Price Report by the Secretary. 
‘‘(C) The price of alfalfa hay for a month 
shall be the price received during that month by 
agricultural producers in the United States for 
alfalfa hay, as reported in the monthly Agri-
culture Prices report by the Secretary.
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‘‘(2) CALCULATION OF ACTUAL DAIRY PRODUCER 
MARGINS.—The Secretary shall calculate the actual 
dairy producer margin for each consecutive 2-month 
period by subtracting— 
‘‘(A) the average feed cost for that consecu-
tive 2-month period, determined in accordance 
with paragraph (1); from 
‘‘(B) the all-milk price for that consecutive 
2-month period. 
‘‘(c) ESTABLISHMENT OF DAIRY PRODUCER MARGIN 
INSURANCE PROGRAM.—The Secretary shall establish and 
administer a dairy producer margin insurance program for 
the purpose of protecting dairy producer income by paying 
participating dairy producers margin insurance payments 
when actual dairy producer margins are less than the 
threshold levels for the payments. 
‘‘(d) ELIGIBILITY AND REGISTRATION OF DAIRY PRO-
DUCERS FOR MARGIN INSURANCE PROGRAM.— 
‘‘(1) ELIGIBILITY.—All dairy producers in the 
United States shall be eligible to participate in the 
margin insurance program. 
‘‘(2) REGISTRATION PROCESS.— 
‘‘(A) REGISTRATION.— 
‘‘(i) ANNUAL
REGISTRATION.—On an 
annual basis, the Secretary shall register all
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interested dairy producers in the margin 
insurance program. 
‘‘(ii) MANNER
AND
FORM.—The Sec-
retary shall specify the manner and form by 
which a dairy producer shall register for the 
margin insurance program. 
‘‘(B) TREATMENT OF MULTI-PRODUCER OP-
ERATIONS.—If a dairy operation consists of 
more than 1 dairy producer, all of the dairy pro-
ducers of the operation shall be treated as a sin-
gle dairy producer for purposes of— 
‘‘(i) purchasing margin insurance; and 
‘‘(ii) payment of producer premiums 
under subsection (f)(4). 
‘‘(C) TREATMENT
OF
PRODUCERS
WITH 
MULTIPLE DAIRY OPERATIONS.—If a dairy pro-
ducer operates 2 or more dairy operations, each 
dairy operation of the producer shall require a 
separate registration to participate and purchase 
margin insurance. 
‘‘(3) TIME FOR REGISTRATION.— 
‘‘(A) EXISTING
DAIRY
PRODUCERS.—Dur-
ing the 1-year period beginning on the date of 
enactment of this section, and annually there-
after, a dairy producer that is actively engaged
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in a dairy operation as of that date may register 
with the Secretary to participate in the margin 
insurance program. 
‘‘(B) NEW
ENTRANTS.—A dairy producer 
that has no existing interest in a dairy oper-
ation as of the date of enactment of this section, 
but that, after that date, establishes a new dairy 
operation, may register with the Secretary dur-
ing the 180-day period beginning on the date on 
which the dairy operation first markets milk 
commercially to participate in the margin insur-
ance program. 
‘‘(4) RETROACTIVITY.— 
‘‘(A) NOTICE OF AVAILABILITY OF RETRO-
ACTIVE PROTECTION.—Not later than 30 days 
after the effective date of this section, the Sec-
retary shall publish a notice in the Federal Reg-
ister to inform dairy producers of the avail-
ability of retroactive margin insurance, 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) to participate in the margin insurance 
program. 
‘‘(B) RETROACTIVE MARGIN INSURANCE.—
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‘‘(i) AVAILABILITY.—If a dairy pro-
ducer files a notice of intent under subpara-
graph (A) to participate in the margin in-
surance program before the initiation of the 
sign-up period for the margin insurance 
program and subsequently signs up for the 
margin insurance program, the producer 
shall receive margin insurance retroactive 
to the effective date of this section. 
‘‘(ii) DURATION.—Retroactive margin 
insurance under this paragraph for a dairy 
producer shall apply from the effective date 
of this section until the date on which the 
producer signs up for the margin insurance 
program. 
‘‘(C) NOTICE OF INTENT AND OBLIGATION 
TO PARTICIPATE.—In no way does filing a notice 
of intent under this paragraph obligate a dairy 
producer to sign up for the margin insurance 
program once the program rules are final, but if 
a producer does file a notice of intent and subse-
quently signs up for the margin insurance pro-
gram, that dairy producer is obligated to pay 
premiums for any retroactive margin insurance 
selected in the notice of intent.
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‘‘(5) RECONSTITUTION.—The Secretary shall en-
sure that a dairy producer does not reconstitute a 
dairy operation for the sole purpose of purchasing 
margin insurance. 
‘‘(e) PRODUCTION HISTORY OF PARTICIPATING DAIRY 
PRODUCERS.— 
‘‘(1) DETERMINATION
OF
PRODUCTION
HIS-
TORY.— 
‘‘(A) IN GENERAL.—The Secretary shall de-
termine the production history of the dairy oper-
ation of each participating dairy producer in the 
margin insurance program. 
‘‘(B) CALCULATION.—Except as provided in 
subparagraphs (C) and (D), the production his-
tory of a participating dairy producer shall be 
equal to the highest annual milk marketings of 
the dairy producer during any 1 of the 3 cal-
endar years immediately preceding the registra-
tion of the dairy producer for participation in 
the margin insurance program. 
‘‘(C) UPDATING PRODUCTION HISTORY.—So 
long as a participating producer remains reg-
istered, the production history of the partici-
pating producer shall be annually updated based 
on the highest annual milk marketings of the
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dairy producer during any one of the 3 imme-
diately preceding calendar years. 
‘‘(D) NEW
PRODUCERS.—If a dairy pro-
ducer has been in operation for less than 1 year, 
the Secretary shall determine the initial produc-
tion history of the dairy producer under sub-
paragraph (B) by extrapolating the actual milk 
marketings for the months that the dairy pro-
ducer has been in operation to a yearly amount. 
‘‘(2) REQUIRED INFORMATION.—A participating 
dairy producer shall provide all information that the 
Secretary may require in order to establish the pro-
duction history of the dairy operation of the dairy 
producer. 
‘‘(3) TRANSFER OF PRODUCTION HISTORY.— 
‘‘(A) TRANSFER BY SALE.— 
‘‘(i) REQUEST FOR TRANSFER.—If an 
existing dairy producer sells an entire dairy 
operation to another party, the seller and 
purchaser may jointly request that the Sec-
retary transfer to the purchaser the interest 
of the seller in the production history of the 
dairy operation. 
‘‘(ii) TRANSFER.—If the Secretary de-
termines that the seller has sold the entire
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dairy operation to the purchaser, the Sec-
retary shall approve the transfer and, there-
after, the seller shall have no interest in the 
production history of the sold dairy oper-
ation. 
‘‘(B) TRANSFER BY LEASE.— 
‘‘(i) REQUEST FOR TRANSFER.—If an 
existing dairy producer leases an entire 
dairy operation to another party, the lessor 
and lessee may jointly request that the Sec-
retary transfer to the lessee for the duration 
of the term of the lease the interest of the 
lessor in the production history of the dairy 
operation. 
‘‘(ii) TRANSFER.—If the Secretary de-
termines that the lessor has leased the entire 
dairy operation to the lessee, the Secretary 
shall approve the transfer and, thereafter, 
the lessor shall have no interest for the du-
ration of the term of the lease in the produc-
tion history of the leased dairy operation. 
‘‘(C) COVERAGE
LEVEL.—A purchaser or 
lessee to whom the Secretary transfers a produc-
tion history under this paragraph may not ob-
tain a different level of margin insurance cov-
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erage held by the seller or lessor from whom the 
transfer was obtained. 
‘‘(D) NEW ENTRANTS.—The Secretary may 
not transfer the production history determined 
for a dairy producer described in subsection 
(d)(3)(B) to another person. 
‘‘(4) MOVEMENT AND TRANSFER OF PRODUCTION 
HISTORY.— 
‘‘(A) MOVEMENT AND TRANSFER AUTHOR-
IZED.—Subject to subparagraph (B), if a dairy 
producer moves from 1 location to another loca-
tion, the dairy producer may maintain the pro-
duction history associated with the operation. 
‘‘(B) 
NOTIFICATION
REQUIREMENT.—A 
dairy producer shall notify the Secretary of any 
move of a dairy operation under subparagraph 
(A). 
‘‘(C) SUBSEQUENT
OCCUPATION
OF
VA-
CATED LOCATION.—A party subsequently occu-
pying a dairy operation location vacated as de-
scribed in subparagraph (A) shall have no inter-
est in the production history previously associ-
ated with the operation at that location. 
‘‘(f) MARGIN INSURANCE.—
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‘‘(1) IN GENERAL.—At the time of the registra-
tion of a dairy producer in the margin insurance 
program under subsection (d) and annually thereafter 
during the duration of the margin insurance pro-
gram, an eligible dairy producer may purchase mar-
gin insurance. 
‘‘(2) SELECTION OF PAYMENT THRESHOLD.—A 
participating dairy producer purchasing margin in-
surance shall elect a coverage level in any increment 
of $0.50, with a minimum of $4.00 and a maximum 
of $8.00. 
‘‘(3) SELECTION OF COVERAGE PERCENTAGE.—A 
participating dairy producer purchasing margin in-
surance shall elect a percentage of coverage, equal to 
not more than 80 percent nor less than 25 percent, of 
the production history of the dairy operation of the 
participating dairy producer. 
‘‘(4) PRODUCER PREMIUMS.— 
‘‘(A) PREMIUMS
REQUIRED.—A partici-
pating dairy producer that purchases margin in-
surance shall pay an annual premium equal to 
the product obtained by multiplying— 
‘‘(i) the percentage selected by the 
dairy producer under paragraph (3);
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‘‘(ii) the production history applicable 
to the dairy producer; and 
‘‘(iii) the premium per hundredweight 
of milk, as specified in the applicable table 
under subparagraph (B) or (C). 
‘‘(B) PREMIUM PER HUNDREDWEIGHT FOR 
FIRST 4 MILLION POUNDS OF PRODUCTION.—For 
the first 4,000,000 pounds of milk marketings in-
cluded in the annual production history of a 
participating dairy operation, the premium per 
hundredweight corresponding to each coverage 
level specified in the following table is as follows: 
‘‘Coverage Level 
Premium per Cwt. 
$4.00 
$0.00 
$4.50 
$0.01 
$5.00 
$0.02 
$5.50 
$0.035 
$6.00 
$0.045 
$6.50 
$0.09 
$7.00 
$0.18 
$7.50 
$0.60 
$8.00 
$0.95 
‘‘(C) PREMIUM PER HUNDREDWEIGHT FOR 
PRODUCTION
IN
EXCESS
OF
MILLION 
POUNDS.—For milk marketings in excess of 
4,000,000 pounds included in the annual pro-
duction history of a participating dairy oper-
ation, the premium per hundredweight cor-
responding to each coverage level is as follows:
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‘‘Coverage Level 
Premium per Cwt. 
$4.00 
$0.030 
$4.50 
$0.045 
$5.00 
$0.066 
$5.50 
$0.11 
$6.00 
$0.185 
$6.50 
$0.29 
$7.00 
$0.38 
$7.50 
$0.83 
$8.00 
$1.06 
‘‘(D) TIME FOR PAYMENT.— 
‘‘(i) FIRST YEAR.—As soon as prac-
ticable after a dairy producer registers to 
participate in the margin insurance pro-
gram and purchases margin insurance, the 
dairy producer shall pay the premium de-
termined under subparagraph (A) for the 
dairy producer for the first calendar year of 
the margin insurance. 
‘‘(ii) SUBSEQUENT YEARS.— 
‘‘(I) 
IN
GENERAL.—When 
the 
dairy producer first purchases margin 
insurance, the dairy producer shall 
also elect the method by which the 
dairy producer will pay premiums 
under this subsection for subsequent 
years in accordance with 1 of the 
schedules described in subclauses (II) 
and (III).
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‘‘(II) 
SINGLE
ANNUAL
PAY-
MENT.—The participating dairy pro-
ducer may elect to pay 100 percent of 
the annual premium determined under 
subparagraph (A) for the dairy pro-
ducer for a calendar year by not later 
than January 15 of the calendar year. 
‘‘(III) SEMI-ANNUAL PAYMENTS.— 
The participating dairy producer may 
elect to pay— 
‘‘(aa) 50 percent of the an-
nual premium determined under 
subparagraph (A) for the dairy 
producer for a calendar year by 
not later than January 15 of the 
calendar year; and 
‘‘(bb) the remaining 50 per-
cent of the premium by not later 
than June 15 of the calendar 
year. 
‘‘(5) PRODUCER PREMIUM OBLIGATIONS.— 
‘‘(A) PRO-RATION
OF
FIRST
YEAR
PRE-
MIUM.—A participating dairy producer that 
purchases margin insurance after initial reg-
istration in the margin insurance program shall
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pay a pro-rated premium for the first calendar 
year based on the date on which the producer 
purchases the coverage. 
‘‘(B) SUBSEQUENT PREMIUMS.—Except as 
provided in subparagraph (A), the annual pre-
mium for a participating dairy producer shall 
be determined under paragraph (4) for each year 
in which the margin insurance program is in ef-
fect. 
‘‘(C) LEGAL OBLIGATION.— 
‘‘(i) IN GENERAL.—Except as provided 
in clauses (ii) and (iii), a participating 
dairy producer that purchases margin in-
surance shall be legally obligated to pay the 
applicable premiums for the entire period of 
the margin insurance program (as provided 
in the payment schedule elected under para-
graph (4)(B)), and may not opt out of the 
margin insurance program. 
‘‘(ii) DEATH.—If the dairy producer 
dies, the estate of the deceased may cancel 
the margin insurance and shall not be re-
sponsible for any further premium pay-
ments.
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‘‘(iii) RETIREMENT.—If the dairy pro-
ducer retires, the producer may request that 
Secretary cancel the margin insurance if 
the producer has terminated the dairy oper-
ation entirely and certifies under oath that 
the producer will not be actively engaged in 
any dairy operation for at least the next 7 
years. 
‘‘(6) PAYMENT
THRESHOLD.—A participating 
dairy producer with margin insurance shall receive a 
margin insurance payment whenever the average ac-
tual dairy producer margin for a consecutive 2-month 
period is less than the coverage level threshold selected 
by the dairy producer under paragraph (2). 
‘‘(7) MARGIN INSURANCE PAYMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make a margin insurance protection payment to 
each participating dairy producer whenever the 
average actual dairy producer margin for a con-
secutive 2-month period is less than the coverage 
level threshold selected by the dairy producer 
under paragraph (2). 
‘‘(B) AMOUNT OF PAYMENT.—The margin 
insurance payment for the dairy operation of a
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participating dairy producer shall be determined 
as follows: 
‘‘(i) The Secretary shall calculate the 
difference between— 
‘‘(I) the coverage level threshold 
selected by the dairy producer under 
paragraph (2); and 
‘‘(II) the average actual dairy 
producer margin for the consecutive 2- 
month period. 
‘‘(ii) The amount determined under 
clause (i) shall be multiplied by— 
‘‘(I) the percentage selected by the 
dairy producer under paragraph (3); 
and 
‘‘(II) the lesser of— 
‘‘(aa) the quotient obtained 
by dividing— 
‘‘(AA) the production 
history applicable to the pro-
ducer under subsection (e)(1); 
by 
‘‘(BB) 6; and 
‘‘(bb) the actual quantity of 
milk marketed by the dairy oper-
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ation of the dairy producer dur-
ing the consecutive 2-month pe-
riod. 
‘‘(g) EFFECT OF FAILURE TO PAY PREMIUMS.— 
‘‘(1) LOSS OF BENEFITS.—A participating dairy 
producer that is in arrears on premium payments for 
margin insurance— 
‘‘(A) remains legally obligated to pay the 
premiums; and 
‘‘(B) may not receive margin insurance 
until the premiums are fully paid. 
‘‘(2) ENFORCEMENT.—The Secretary may take 
such action as is necessary to collect premium pay-
ments for margin insurance. 
‘‘(h) USE OF COMMODITY CREDIT CORPORATION.— 
The Secretary shall use the funds, facilities, and the au-
thorities of the Commodity Credit Corporation to carry out 
this section. 
‘‘(i) PROGRAM START DATE.—The Secretary shall con-
duct the margin insurance program beginning on October 
1, 2013.’’. 
SEC. 1402. RULEMAKING. 
(a) PROCEDURE.—The promulgation of regulations for 
the initiation of the margin insurance program, and for
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administration of the margin insurance program, shall be 
made— 
(1) without regard to chapter 35 of title 44, 
United States Code (commonly known as the Paper-
work Reduction Act); 
(2) without regard to the Statement of Policy of 
the Secretary of Agriculture effective July 24, 1971 
(36 Fed. Reg. 13804), relating to notices of proposed 
rulemaking and public participation in rulemaking; 
and 
(3) subject to subsection (b), pursuant to section 
553 of title 5, United States Code. 
(b) SPECIAL RULEMAKING REQUIREMENTS.— 
(1) INTERIM RULES AUTHORIZED.—With respect 
to the margin insurance program, the Secretary may 
promulgate interim rules under the authority pro-
vided in subparagraph (B) of section 553(b) of title 
5, United States Code, if the Secretary determines 
such interim rules to be needed. Any such interim 
rules for the margin insurance program shall be effec-
tive on publication. 
(2) FINAL RULES.—With respect to the margin 
insurance program, the Secretary shall promulgate 
final rules, with an opportunity for public notice and
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comment, no later than 21 months after the date of 
the enactment of this Act. 
(c) INCLUSION
OF
ADDITIONAL
ORDER.—Section 
143(a)(2) of the Federal Agriculture Improvement and Re-
form Act of 1996 (7 U.S.C. 7253(a)(2)) is amended by add-
ing at the end the following new sentence: ‘‘Subsection 
(b)(2) does not apply to the authority of the Secretary under 
this subsection.’’. 
PART II—REPEAL OR REAUTHORIZATION OF 
OTHER DAIRY-RELATED PROVISIONS 
SEC. 1411. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 
AND MILK INCOME LOSS CONTRACT PRO-
GRAMS. 
(a) REPEAL
OF DAIRY PRODUCT PRICE SUPPORT 
PROGRAM.—Section 1501 of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771) is repealed. 
(b) REPEAL OF MILK INCOME LOSS CONTRACT PRO-
GRAM.—Section 1506 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8773) is repealed. 
SEC. 1412. REPEAL OF DAIRY EXPORT INCENTIVE PRO-
GRAM. 
(a) REPEAL.—Section 153 of the Food Security Act 
of 1985 (15 U.S.C. 713a–14) is repealed.
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•HR 2642 EAH1S 
(b) CONFORMING AMENDMENTS.—Section 902(2) of 
the Trade Sanctions Reform and Export Enhancement Act 
of 2000 (22 U.S.C. 7201(2)) is amended— 
(1) by striking subparagraph (D); and 
(2) by redesignating subparagraphs (E) and (F) 
as subparagraphs (D) and (E), respectively. 
SEC. 1413. EXTENSION OF DAIRY FORWARD PRICING PRO-
GRAM. 
Section 1502(e) of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8772(e)) is amended— 
(1) in paragraph (1), by striking ‘‘2012’’ and in-
serting ‘‘2018’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and in-
serting ‘‘2021’’. 
SEC. 1414. EXTENSION OF DAIRY INDEMNITY PROGRAM. 
Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 
amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 1415. EXTENSION OF DAIRY PROMOTION AND RE-
SEARCH PROGRAM. 
Section 113(e)(2) of the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’.
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SEC. 1416. REPEAL OF FEDERAL MILK MARKETING ORDER 
REVIEW COMMISSION. 
Section 1509 of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 122 Stat. 1726) is re-
pealed. 
PART III—EFFECTIVE DATE 
SEC. 1421. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect on October 1, 2013. 
Subtitle E—Supplemental Agricul-
tural Disaster Assistance Pro-
grams 
SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE PRODUCER ON A FARM.— 
(A) IN GENERAL.—The term ‘‘eligible pro-
ducer on a farm’’ means an individual or entity 
described in subparagraph (B) that, as deter-
mined by the Secretary, assumes the production 
and market risks associated with the agricultural 
production of crops or livestock. 
(B) DESCRIPTION.—An individual or entity 
referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien;
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•HR 2642 EAH1S 
(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability 
corporation, or other farm organizational 
structure organized under State law. 
(2) FARM-RAISED FISH.—The term ‘‘farm-raised 
fish’’ means any aquatic species that is propagated 
and reared in a controlled environment. 
(3) 
LIVESTOCK.—The 
term 
‘‘livestock’’ 
in-
cludes— 
(A) cattle (including dairy cattle); 
(B) bison; 
(C) poultry; 
(D) sheep; 
(E) swine; 
(F) horses; and 
(G) other livestock, as determined by the 
Secretary. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(b) LIVESTOCK INDEMNITY PAYMENTS.— 
(1) PAYMENTS.—For fiscal year 2012 and each 
succeeding fiscal year, the Secretary shall use such 
sums as are necessary of the funds of the Commodity 
Credit Corporation to make livestock indemnity pay-
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•HR 2642 EAH1S 
ments to eligible producers on farms that have in-
curred livestock death losses in excess of the normal 
mortality, as determined by the Secretary, due to— 
(A) attacks by animals reintroduced into 
the wild by the Federal Government or protected 
by Federal law, including wolves and avian 
predators; or 
(B) adverse weather, as determined by the 
Secretary, during the calendar year, including 
losses due to hurricanes, floods, blizzards, disease, 
wildfires, extreme heat, and extreme cold. 
(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before the 
date of death of the livestock, as determined by the 
Secretary. 
(3) SPECIAL RULE FOR PAYMENTS MADE DUE TO 
DISEASE.—The Secretary shall ensure that payments 
made to an eligible producer under paragraph (1) are 
not made for the same livestock losses for which com-
pensation is provided pursuant to section 10407(d) of 
the Animal Health Protection Act (7 U.S.C. 8306(d)). 
(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) DEFINITIONS.—In this subsection:
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•HR 2642 EAH1S 
(A) COVERED LIVESTOCK.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘covered livestock’’ 
means livestock of an eligible livestock pro-
ducer that, during the 60 days prior to the 
beginning date of a qualifying drought or 
fire condition, as determined by the Sec-
retary, the eligible livestock producer— 
(I) owned; 
(II) leased; 
(III) purchased; 
(IV) entered into a contract to 
purchase; 
(V) is a contract grower; or 
(VI) sold or otherwise disposed of 
due to qualifying drought conditions 
during— 
(aa) the current production 
year; or 
(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
ceding the current production 
year.
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•HR 2642 EAH1S 
(ii) EXCLUSION.—The term ‘‘covered 
livestock’’ does not include livestock that 
were or would have been in a feedlot, on the 
beginning date of the qualifying drought or 
fire condition, as a part of the normal busi-
ness operation of the eligible livestock pro-
ducer, as determined by the Secretary. 
(B) 
DROUGHT
MONITOR.—The 
term 
‘‘drought 
monitor’’ 
means 
a 
system 
for 
classifying drought severity according to a range 
of abnormally dry to exceptional drought, as de-
fined by the Secretary. 
(C) ELIGIBLE LIVESTOCK PRODUCER.— 
(i) IN GENERAL.—The term ‘‘eligible 
livestock producer’’ means an eligible pro-
ducer on a farm that— 
(I) is an owner, cash or share les-
see, or contract grower of covered live-
stock that provides the pastureland or 
grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or
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•HR 2642 EAH1S 
grazing land that is physically located 
in a county affected by drought; 
(III) certifies grazing loss; and 
(IV) meets all other eligibility re-
quirements established under this sub-
section. 
(ii) EXCLUSION.—The term ‘‘eligible 
livestock producer’’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
(D) NORMAL
CARRYING
CAPACITY.—The 
term ‘‘normal carrying capacity’’, with respect 
to each type of grazing land or pastureland in 
a county, means the normal carrying capacity, 
as determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal graz-
ing period, in the absence of a drought or fire 
that diminishes the production of the grazing 
land or pastureland. 
(E) NORMAL GRAZING PERIOD.—The term 
‘‘normal grazing period’’, with respect to a coun-
ty, means the normal grazing period during the
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calendar year for the county, as determined 
under paragraph (3)(D)(i). 
(2) PROGRAM.—For fiscal year 2012 and each 
succeeding fiscal year, the Secretary shall use such 
sums as are necessary of the funds of the Commodity 
Credit Corporation to provide compensation for losses 
to eligible livestock producers due to grazing losses for 
covered livestock due to— 
(A) a drought condition, as described in 
paragraph (3); or 
(B) fire, as described in paragraph (4). 
(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT 
CONDITIONS.— 
(A) ELIGIBLE LOSSES.— 
(i) IN GENERAL.—An eligible livestock 
producer may receive assistance under this 
subsection only for grazing losses for covered 
livestock that occur on land that— 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegetative 
cover; or 
(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock.
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•HR 2642 EAH1S 
(ii) EXCLUSIONS.—An eligible livestock 
producer may not receive assistance under 
this subsection for grazing losses that occur 
on land used for haying or grazing under 
the conservation reserve program established 
under subchapter B of chapter 1 of subtitle 
D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3831 et seq.). 
(B) MONTHLY PAYMENT RATE.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the payment rate for assist-
ance under this paragraph for 1 month 
shall, in the case of drought, be equal to 60 
percent of the lesser of— 
(I) the monthly feed cost for all 
covered livestock owned or leased by the 
eligible livestock producer, as deter-
mined under subparagraph (C); or 
(II) the monthly feed cost cal-
culated by using the normal carrying 
capacity of the eligible grazing land of 
the eligible livestock producer. 
(ii) PARTIAL COMPENSATION.—In the 
case of an eligible livestock producer that 
sold or otherwise disposed of covered live-
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•HR 2642 EAH1S 
stock due to drought conditions in 1 or both 
of the 2 production years immediately pre-
ceding the current production year, as de-
termined by the Secretary, the payment rate 
shall be 80 percent of the payment rate oth-
erwise calculated in accordance with clause 
(i). 
(C) MONTHLY FEED COST.— 
(i) IN
GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
(I) 30 days; 
(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
(III) a payment rate that is equal 
to the corn price per pound, as deter-
mined under clause (iii). 
(ii) FEED
GRAIN
EQUIVALENT.—For 
purposes of clause (i)(II), the feed grain 
equivalent shall equal— 
(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
(II) in the case of any other type 
of weight of livestock, an amount deter-
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•HR 2642 EAH1S 
mined by the Secretary that represents 
the average number of pounds of corn 
per day necessary to feed the livestock. 
(iii) CORN
PRICE
PER
POUND.—For 
purposes of clause (i)(III), the corn price 
per pound shall equal the quotient obtained 
by dividing— 
(I) the higher of— 
(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
(bb) the national average 
corn price per bushel for the 24- 
month period immediately pre-
ceding that March 1; by 
(II) 56. 
(D) 
NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
(i) FSA COUNTY COMMITTEE DETER-
MINATIONS.— 
(I) IN GENERAL.—The Secretary 
shall determine the normal carrying
111 
•HR 2642 EAH1S 
capacity and normal grazing period 
for each type of grazing land or 
pastureland in the county served by the 
applicable committee. 
(II) CHANGES.—No change to the 
normal carrying capacity or normal 
grazing period established for a county 
under subclause (I) shall be made un-
less the change is requested by the ap-
propriate State and county Farm 
Service Agency committees. 
(ii) DROUGHT INTENSITY.— 
(I) D2.—An eligible livestock pro-
ducer that owns or leases grazing land 
or pastureland that is physically lo-
cated in a county that is rated by the 
U.S. Drought Monitor as having a D2 
(severe drought) intensity in any area 
of the county for at least 8 consecutive 
weeks during the normal grazing pe-
riod for the county, as determined by 
the Secretary, shall be eligible to re-
ceive assistance under this paragraph 
in an amount equal to 1 monthly pay-
112 
•HR 2642 EAH1S 
ment using the monthly payment rate 
determined under subparagraph (B). 
(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by the 
U.S. Drought Monitor as having at 
least a D3 (extreme drought) intensity 
in any area of the county at any time 
during the normal grazing period for 
the county, as determined by the Sec-
retary, shall be eligible to receive as-
sistance under this paragraph— 
(aa) in an amount equal to 3 
monthly 
payments 
using 
the 
monthly payment rate determined 
under subparagraph (B); 
(bb) if the county is rated as 
having a D3 (extreme drought) 
intensity in any area of the coun-
ty for at least 4 weeks during the 
normal grazing period for the 
county, or is rated as having a 
D4 (exceptional drought) intensity 
in any area of the county at any
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•HR 2642 EAH1S 
time during the normal grazing 
period, in an amount equal to 4 
monthly 
payments 
using 
the 
monthly payment rate determined 
under subparagraph (B); or 
(cc) if the county is rated as 
having a D4 (exceptional drought) 
intensity in any area of the coun-
ty for at least 4 weeks during the 
normal grazing period, in an 
amount equal to 5 monthly pay-
ments using the monthly rate de-
termined 
under 
subparagraph 
(B). 
(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
(A) IN GENERAL.—An eligible livestock pro-
ducer may receive assistance under this para-
graph only if— 
(i) the grazing losses occur on range-
land that is managed by a Federal agency; 
and 
(ii) the eligible livestock producer is 
prohibited by the Federal agency from graz-
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•HR 2642 EAH1S 
ing the normal permitted livestock on the 
managed rangeland due to a fire. 
(B) PAYMENT RATE.—The payment rate for 
assistance under this paragraph shall be equal to 
50 percent of the monthly feed cost for the total 
number of livestock covered by the Federal lease 
of the eligible livestock producer, as determined 
under paragraph (3)(C). 
(C) PAYMENT DURATION.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
(I) beginning on the date on 
which the Federal agency excludes the 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
(II) ending on the last day of the 
Federal lease of the eligible livestock 
producer. 
(ii) LIMITATION.—An eligible livestock 
producer may only receive assistance under 
this paragraph for losses that occur on not 
more than 180 days per year.
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•HR 2642 EAH1S 
(5) NO
DUPLICATIVE
PAYMENTS.—An eligible 
livestock producer may elect to receive assistance for 
grazing or pasture feed losses due to drought condi-
tions under paragraph (3) or fire under paragraph 
(4), but not both for the same loss, as determined by 
the Secretary. 
(d) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY 
BEES, AND FARM-RAISED FISH.— 
(1) IN GENERAL.—For fiscal year 2012 and each 
succeeding fiscal year, the Secretary shall use not 
more than $20,000,000 of the funds of the Commodity 
Credit Corporation to provide emergency relief to eli-
gible producers of livestock, honey bees, and farm- 
raised fish to aid in the reduction of losses due to dis-
ease (including cattle tick fever), adverse weather, or 
other conditions, such as blizzards and wildfires, as 
determined by the Secretary, that are not covered 
under subsection (b) or (c). 
(2) USE
OF
FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
(3) AVAILABILITY OF FUNDS.—Any funds made 
available under this subsection shall remain available 
until expended.
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•HR 2642 EAH1S 
(e) TREE ASSISTANCE PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE ORCHARDIST.—The term ‘‘eli-
gible orchardist’’ means a person that produces 
annual crops from trees for commercial purposes. 
(B) NATURAL DISASTER.—The term ‘‘nat-
ural disaster’’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
(C) NURSERY
TREE
GROWER.—The term 
‘‘nursery tree grower’’ means a person who pro-
duces nursery, ornamental, fruit, nut, or Christ-
mas trees for commercial sale, as determined by 
the Secretary. 
(D) TREE.—The term ‘‘tree’’ includes a 
tree, bush, and vine. 
(2) ELIGIBILITY.— 
(A) LOSS.—Subject to subparagraph (B), 
for fiscal year 2012 and each succeeding fiscal 
year, the Secretary shall use such sums as are 
necessary of the funds of the Commodity Credit 
Corporation to provide assistance— 
(i) under paragraph (3) to eligible or-
chardists and nursery tree growers that
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•HR 2642 EAH1S 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
(ii) under paragraph (3)(B) to eligible 
orchardists and nursery tree growers that 
have a production history for commercial 
purposes on planted or existing trees but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary. 
(B) LIMITATION.—An eligible orchardist or 
nursery tree grower shall qualify for assistance 
under subparagraph (A) only if the tree mor-
tality of the eligible orchardist or nursery tree 
grower, as a result of damaging weather or re-
lated condition, exceeds 15 percent (adjusted for 
normal mortality). 
(3) ASSISTANCE.—Subject to paragraph (4), the 
assistance provided by the Secretary to eligible or-
chardists and nursery tree growers for losses described 
in paragraph (2) shall consist of— 
(A)(i) reimbursement of 65 percent of the 
cost of replanting trees lost due to a natural dis-
aster, as determined by the Secretary, in excess 
of 15 percent mortality (adjusted for normal 
mortality); or
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•HR 2642 EAH1S 
(ii) at the option of the Secretary, sufficient 
seedlings to reestablish a stand; and 
(B) reimbursement of 50 percent of the cost 
of pruning, removal, and other costs incurred by 
an eligible orchardist or nursery tree grower to 
salvage existing trees or, in the case of tree mor-
tality, to prepare the land to replant trees as a 
result of damage or tree mortality due to a nat-
ural disaster, as determined by the Secretary, in 
excess of 15 percent damage or mortality (ad-
justed for normal tree damage and mortality). 
(4) LIMITATIONS ON ASSISTANCE.— 
(A) DEFINITIONS
OF
LEGAL
ENTITY
AND 
PERSON.—In this paragraph, the terms ‘‘legal 
entity’’ and ‘‘person’’ have the meaning given 
those terms in section 1001(a) of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308(a)). 
(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $125,000 for any crop year, or an 
equivalent value in tree seedlings. 
(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a per-
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•HR 2642 EAH1S 
son or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
(f) PAYMENT LIMITATIONS.— 
(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘‘legal entity’’ and 
‘‘person’’ have the meaning given those terms in sec-
tion 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a)). 
(2) AMOUNT.—The total amount of disaster as-
sistance payments received, directly or indirectly, by 
a person or legal entity (excluding a joint venture or 
general partnership) under this section (excluding 
payments received under subsection (e)) may not ex-
ceed $125,000 for any crop year. 
(3) DIRECT ATTRIBUTION.—Subsections (e) and 
(f) of section 1001 of the Food Security Act of 1985 
(7 U.S.C. 1308) or any successor provisions relating 
to direct attribution shall apply with respect to as-
sistance provided under this section. 
SEC. 1502. NATIONAL DROUGHT COUNCIL AND NATIONAL 
DROUGHT POLICY ACTION PLAN. 
(a) DEFINITIONS.—In this section: 
(1) COUNCIL.—The term ‘‘Council’’ means the 
National Drought Council established by this section.
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•HR 2642 EAH1S 
(2) DROUGHT.—The term ‘‘drought’’ means a 
natural disaster that is caused by a deficiency in pre-
cipitation— 
(A) that may lead to a deficiency in surface 
and subsurface water supplies (including rivers, 
streams, wetlands, ground water, soil moisture, 
reservoir supplies, lake levels, and snow pack); 
and 
(B) that causes or may cause— 
(i) substantial economic or social im-
pacts; or 
(ii) physical damage or injury to indi-
viduals, property, or the environment. 
(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has 
the meaning given the term in section 4 of the Indian 
Self-Determination and Education Assistance Act (25 
U.S.C. 450b). 
(4) MEMBER.—The term ‘‘member’’, with respect 
to the National Drought Council, means a member of 
the Council specified or appointed under this section 
or, in the absence of the member, the member’s des-
ignee. 
(5) MITIGATION.—The term ‘‘mitigation’’ means 
a short- or long-term action, program, or policy that
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is implemented in advance of or during a drought to 
minimize any risks and impacts of drought. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(7) STATE.—The term ‘‘State’’ means the several 
States, the District of Columbia, American Samoa, 
Guam, the Commonwealth of the Northern Mariana 
Islands, the Commonwealth of Puerto Rico, and the 
United States Virgin Islands. 
(8) TRIGGER.—The term ‘‘trigger’’ means the 
thresholds or criteria that must be satisfied before 
mitigation or emergency assistance may be provided 
to an area— 
(A) in which drought is emerging; or 
(B) that is experiencing a drought. 
(9) WATERSHED.—The term ‘‘watershed’’ means 
a region or area with common hydrology, an area 
drained by a waterway that drains into a lake or res-
ervoir, the total area above a given point on a stream 
that contributes water to the flow at that point, or the 
topographic dividing line from which surface streams 
flow in two different directions. In no case shall a 
watershed be larger than a river basin. 
(10) WATERSHED GROUP.—The term ‘‘watershed 
group’’ means a group of individuals, formally recog-
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•HR 2642 EAH1S 
nized by the appropriate State or States, who rep-
resent the broad scope of relevant interests within a 
watershed and who work together in a collaborative 
manner to jointly plan the management of the nat-
ural resources contained within the watershed. 
(b) EFFECT OF SECTION.—This section does not af-
fect— 
(1) the authority of a State to allocate quantities 
of water under the jurisdiction of the State; or 
(2) any State water rights established as of the 
date of enactment of this Act. 
(c) NATIONAL DROUGHT COUNCIL.— 
(1) ESTABLISHMENT.—There is established in 
the Office of the Secretary of Agriculture a council to 
be known as the ‘‘National Drought Council’’. 
(2) MEMBERSHIP.— 
(A) COMPOSITION.—The Council shall be 
composed of— 
(i) the Secretary (or the designee of the 
Secretary); 
(ii) the Secretary of Commerce (or the 
designee of the Secretary of Commerce); 
(iii) the Secretary of the Army (or the 
designee of the Secretary of the Army);
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(iv) the Secretary of the Interior (or 
the designee of the Secretary of the Inte-
rior); 
(v) the Director of the Federal Emer-
gency Management Agency (or the designee 
of the Director); 
(vi) the Administrator of the Environ-
mental Protection Agency (or the designee of 
the Administrator); 
(vii) 4 members appointed by the Sec-
retary, in coordination with the National 
Governors Association, each of whom shall 
be the Governor of a State (or the designee 
of the Governor) and who collectively shall 
represent the geographic diversity of the Na-
tion; 
(viii) 1 member appointed by the Sec-
retary, in coordination with the National 
Association of Counties; 
(ix) 1 member appointed by the Sec-
retary, in coordination with the United 
States Conference of Mayors; 
(x) 1 member appointed by the Sec-
retary of the Interior, in coordination with
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•HR 2642 EAH1S 
Indian tribes, to represent the interests of 
tribal governments; and 
(xi) 1 member appointed by the Sec-
retary, in coordination with the National 
Association of Conservation Districts, to 
represent local soil and water conservation 
districts. 
(B) DATE OF APPOINTMENT.—The appoint-
ment of each member of the Council shall be 
made not later than 120 days after the date of 
enactment of this Act. 
(3) TERM; VACANCIES.— 
(A) TERM.—A non-Federal member of the 
Council appointed under paragraph (2) shall be 
appointed for a term of two years. 
(B) VACANCIES.—A vacancy on the Coun-
cil— 
(i) shall not affect the powers of the 
Council; and 
(ii) shall be filled in the same manner 
as the original appointment was made. 
(C) TERMS OF MEMBERS FILLING VACAN-
CIES.—Any member appointed to fill a vacancy 
occurring before the expiration of the term for 
which the member’s predecessor was appointed
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shall be appointed only for the remainder of that 
term. 
(4) MEETINGS.— 
(A) IN GENERAL.—The Council shall meet 
at the call of the co-chairs. 
(B) FREQUENCY.—The Council shall meet 
at least semiannually. 
(5) QUORUM.—A majority of the members of the 
Council shall constitute a quorum, but a lesser num-
ber may hold hearings or conduct other business. 
(6) COUNCIL LEADERSHIP.— 
(A) IN GENERAL.—There shall be a Federal 
co-chair and non-Federal co-chair of the Council. 
(B) APPOINTMENT.— 
(i) FEDERAL
CO-CHAIR.—The Sec-
retary shall be the Federal co-chair. 
(ii) 
NON-FEDERAL
CO-CHAIR.—The 
non-Federal members of the Council shall 
elect, on a biannual basis, a non-Federal co- 
chair of the Council from among the mem-
bers appointed under paragraph (2). 
(d) DUTIES OF THE COUNCIL.— 
(1) IN GENERAL.—The Council shall— 
(A) not later than one year after the date 
of the first meeting of the Council, develop a
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comprehensive National Drought Policy Action 
Plan that— 
(i)(I) delineates and integrates respon-
sibilities for activities relating to drought 
(including drought preparedness, mitiga-
tion, research, risk management, training, 
and emergency relief) among Federal agen-
cies; and 
(II) ensures that those activities are co-
ordinated with the activities of the States, 
local governments, Indian tribes, and neigh-
boring countries; 
(ii) is consistent with— 
(I) this Act and other applicable 
Federal laws; and 
(II) the laws and policies of the 
States for water management; 
(iii) is integrated with drought man-
agement programs of the States, Indian 
tribes, local governments, watershed groups, 
and private entities; and 
(iv) avoids duplicating Federal, State, 
tribal, local, watershed, and private drought 
preparedness and monitoring programs in
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existence on the date of enactment of this 
Act; 
(B) evaluate Federal drought-related pro-
grams in existence on the date of enactment of 
this Act and make recommendations to Congress 
and the President on means of eliminating— 
(i) discrepancies between the goals of 
the programs and actual service delivery; 
(ii) duplication among programs; and 
(iii) any other circumstances that 
interfere with the effective operation of the 
programs; 
(C) make recommendations to the President, 
Congress, and appropriate Federal agencies on— 
(i) the establishment of common inter-
agency triggers for authorizing Federal 
drought mitigation programs; and 
(ii) improving the consistency and 
fairness 
of 
assistance 
among 
Federal 
drought relief programs; 
(D) encourage and facilitate the develop-
ment of drought preparedness plans under sub-
title C, including establishing the guidelines 
under this section;
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•HR 2642 EAH1S 
(E) based on a review of drought prepared-
ness plans, develop and make available to the 
public drought planning models to reduce water 
resource conflicts relating to water conservation 
and droughts; 
(F) develop and coordinate public aware-
ness activities to provide the public with access 
to understandable and informative materials on 
drought, including— 
(i) explanations of the causes of 
drought, the impacts of drought, and the 
damages from drought; 
(ii) descriptions of the value and bene-
fits of land stewardship to reduce the im-
pacts of drought and to protect the environ-
ment; 
(iii) clear instructions for appropriate 
responses to drought, including water con-
servation, water reuse, and detection and 
elimination of water leaks; 
(iv) information on State and local 
laws applicable to drought; and 
(v) opportunities for assistance to re-
source-dependent businesses and industries 
in times of drought; and
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•HR 2642 EAH1S 
(G) establish operating procedures for the 
Council. 
(2) CONSULTATION.—In carrying out this sub-
section, the Council shall consult with groups affected 
by drought emergencies. 
(3) REPORTS TO CONGRESS.— 
(A) ANNUAL REPORT.— 
(i) IN GENERAL.—Not later than one 
year after the date of the first meeting of the 
Council, and annually thereafter, the Coun-
cil shall submit to Congress a report on the 
activities carried out under this section. 
(ii) INCLUSIONS.— 
(I) IN GENERAL.—The annual re-
port shall include a summary of 
drought preparedness plans. 
(II) INITIAL REPORT.—The initial 
report submitted under subparagraph 
(A) shall include any recommendations 
of the Council. 
(B) FINAL REPORT.—Not later than seven 
years after the date of enactment of this Act, the 
Council shall submit to Congress a report that 
recommends— 
(i) amendments to this section; and
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•HR 2642 EAH1S 
under the same conditions as other agencies of the 
Federal Government. 
(4) GIFTS.—The Council may accept, use, and 
dispose of gifts or donations of services or property. 
(f) COUNCIL PERSONNEL MATTERS.— 
(1) COMPENSATION OF MEMBERS.— 
(A) NON-FEDERAL EMPLOYEES.—A member 
of the Council who is not an officer or employee 
of the Federal Government shall serve without 
compensation. 
(B) FEDERAL EMPLOYEES.—A member of 
the Council who is an officer or employee of the 
United States shall serve without compensation 
in addition to the compensation received for 
services of the member as an officer or employee 
of the Federal Government. 
(2) TRAVEL EXPENSES.—A member of the Coun-
cil shall be allowed travel expenses at rates authorized 
for an employee of an agency under subchapter I of 
chapter 57 of title 5, United States Code, while away 
from the home or regular place of business of the 
member in the performance of the duties of the Coun-
cil.
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(g) TERMINATION OF COUNCIL.—The Council shall ter-
minate at the end of the eighth fiscal year beginning on 
or after the date of the enactment of this Act. 
Subtitle F—Administration 
SEC. 1601. ADMINISTRATION GENERALLY. 
(a) USE OF COMMODITY CREDIT CORPORATION.—The 
Secretary of Agriculture shall use the funds, facilities, and 
authorities of the Commodity Credit Corporation to carry 
out this title. 
(b) DETERMINATIONS BY SECRETARY.—A determina-
tion made by the Secretary under this title shall be final 
and conclusive. 
(c) REGULATIONS.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, not later than 90 days after the 
date of enactment of this Act, the Secretary and the 
Commodity Credit Corporation, as appropriate, shall 
promulgate such regulations as are necessary to im-
plement this title and the amendments made by this 
title. 
(2) PROCEDURE.—The promulgation of the regu-
lations and administration of this title and the 
amendments made by this title and sections 10003 
and 10016 of this Act shall be made—
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•HR 2642 EAH1S 
(A) pursuant to section 553 of title 5, 
United States Code, including by interim rules 
effective on publication under the authority pro-
vided in subparagraph (B) of subsection (b) of 
such section if the Secretary determines such in-
terim rules to be needed and final rules, with an 
opportunity for notice and comment, no later 
than 21 months after the date of the enactment 
of this Act; 
(B) without regard to chapter 35 of title 44, 
United States Code (commonly known as the 
‘‘Paperwork Reduction Act’’); and 
(C) without regard to the Statement of Pol-
icy of the Secretary of Agriculture effective July 
24, 1971 (36 Fed. Reg. 13804), relating to no-
tices of proposed rulemaking and public partici-
pation in rulemaking. 
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE 
AGREEMENTS COMPLIANCE.— 
(1) REQUIRED DETERMINATION; ADJUSTMENT.— 
If the Secretary determines that expenditures under 
this title that are subject to the total allowable domes-
tic support levels under the Uruguay Round Agree-
ments (as defined in section 2 of the Uruguay Round 
Agreements Act (19 U.S.C. 3501)) will exceed the al-
134 
•HR 2642 EAH1S 
lowable levels for any applicable reporting period, the 
Secretary shall, to the maximum extent practicable, 
make adjustments in the amount of the expenditures 
during that period to ensure that the expenditures do 
not exceed the allowable levels. 
(2) 
CONGRESSIONAL
NOTIFICATION.—Before 
making any adjustment under paragraph (1), the 
Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the 
Senate a report describing the determination made 
under that paragraph and the extent of the adjust-
ment to be made. 
SEC. 1602. REPEAL OF PERMANENT PRICE SUPPORT AU-
THORITY. 
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.— 
(1) REPEALS.—The following provisions of the 
Agricultural Adjustment Act of 1938 are repealed: 
(A) Parts II through V of subtitle B of title 
III (7 U.S.C. 1326 et seq.). 
(B) Subtitle D of title III (7 U.S.C. 1379a 
et seq.). 
(C) Title IV (7 U.S.C. 1401 et seq.). 
(2) INAPPLICABILITY TO UPLAND COTTON.—Sec-
tion 377 of the Agricultural Adjustment Act of 1938
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•HR 2642 EAH1S 
(7 U.S.C. 1377) is amended by striking ‘‘was not 
fully planted’’ and inserting ‘‘was not fully planted: 
Provided further, That effective on the date of the en-
actment of the Federal Agriculture Reform and Risk 
Management Act of 2013, this section shall not apply 
to upland cotton’’. 
(b) AGRICULTURAL ACT OF 1949.—The following pro-
visions of the Agricultural Act of 1949 are repealed: 
(1) Section 101 (7 U.S.C. 1441). 
(2) Section 103(a) (7 U.S.C. 1444(a)). 
(3) Section 105 (7 U.S.C. 1444b). 
(4) Section 107 (7 U.S.C. 1445a). 
(5) Section 110 (7 U.S.C. 1445e). 
(6) Section 112 (7 U.S.C. 1445g). 
(7) Section 115 (7 U.S.C. 1445k). 
(8) Section 201 (7 U.S.C. 1446). 
(9) Title III (7 U.S.C. 1447 et seq.). 
(10) Title IV (7 U.S.C. 1421 et seq.), other than 
sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 
1431). 
(11) Title V (7 U.S.C. 1461 et seq.). 
(12) Title VI (7 U.S.C. 1471 et seq.). 
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 
The joint resolution entitled ‘‘A joint resolution relating to 
corn and wheat marketing quotas under the Agricultural
136 
•HR 2642 EAH1S 
Adjustment Act of 1938, as amended’’, approved May 26, 
1941 (7 U.S.C. 1330, 1340), is repealed. 
SEC. 1603. PAYMENT LIMITATIONS. 
(a) IN GENERAL.—Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended— 
(1) in subsection (a), by striking paragraph (3) 
and inserting the following: 
‘‘(3) LEGAL ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘legal entity’ 
means— 
‘‘(i) an organization that (subject to 
the requirements of this section and section 
1001A) is eligible to receive a payment 
under a provision of law referred to in sub-
section (b), (c), or (d); 
‘‘(ii) a corporation, joint stock com-
pany, association, limited partnership, lim-
ited liability company, limited liability 
partnership, charitable organization, estate, 
irrevocable trust, grantor of a revocable 
trust, or other similar entity (as determined 
by the Secretary); and 
‘‘(iii) an organization that is partici-
pating in a farming operation as a partner
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•HR 2642 EAH1S 
(ii) in paragraph (4)(B), by striking 
‘‘subsection (b) or (c)’’ and inserting ‘‘sub-
section (b)’’; 
(iii) in paragraph (5)— 
(I) in subparagraph (A), by strik-
ing ‘‘subsection (d)’’; and 
(II) in subparagraph (B), by 
striking ‘‘subsection (b), (c), or (d)’’ 
and inserting ‘‘subsection (b)’’; and 
(iv) in paragraph (6)— 
(I) in subparagraph (A), by strik-
ing ‘‘Notwithstanding subsection (d), 
except as provided in subsection (g)’’ 
and inserting ‘‘Except as provided in 
subsection (f)’’; and 
(II) in subparagraph (B), by 
striking ‘‘subsections (b), (c), and (d)’’ 
and inserting ‘‘subsection (b)’’; 
(C) in subsection (g)— 
(i) in paragraph (1)— 
(I) 
by 
striking 
‘‘subsection 
(f)(6)(A)’’ and inserting ‘‘subsection 
(e)(6)(A)’’; and
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•HR 2642 EAH1S 
(II) by striking ‘‘subsection (b) or 
(c)’’ and inserting ‘‘subsection (b)’’; 
and 
(ii) in paragraph (2)(A), by striking 
‘‘subsections (b) and (c)’’ and inserting 
‘‘subsection (b)’’; and 
(D) by redesignating subsections (e) through 
(h) as subsections (d) through (g), respectively. 
(2) Section 1001A of the Food Security Act of 
1985 (7 U.S.C. 1308–1) is amended— 
(A) in subsection (a), by striking ‘‘sub-
sections (b) and (c) of section 1001’’ and insert-
ing ‘‘section 1001(b)’’; and 
(B) in subsection (b)(1), by striking ‘‘sub-
section (b) or (c) of section 1001’’ and inserting 
‘‘section 1001(b)’’. 
(3) Section 1001B(a) of the Food Security Act of 
1985 (7 U.S.C. 1308–2(a)) is amended in the matter 
preceding paragraph (1) by striking ‘‘subsections (b) 
and (c) of section 1001’’ and inserting ‘‘section 
1001(b)’’. 
(c) APPLICATION.—The amendments made by this sec-
tion shall apply beginning with the 2014 crop year.
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•HR 2642 EAH1S 
SEC. 1603A. PAYMENTS LIMITED TO ACTIVE FARMERS. 
Section 1001A of the Food Security Act of 1985 (7 
U.S.C. 1308–1) is amended— 
(1) in subsection (b)(2)— 
(A) by striking ‘‘or active personal manage-
ment’’ each place it appears in subparagraphs 
(A)(i)(II) and (B)(ii); and 
(B) in subparagraph (C), by striking ‘‘, as 
applied to the legal entity, are met by the legal 
entity, the partners or members making a sig-
nificant contribution of personal labor or active 
personal management’’ and inserting ‘‘are met 
by partners or members making a significant 
contribution of personal labor, those partners or 
members’’; and 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking subparagraph (A) and 
inserting the following: 
‘‘(A) the landowner share-rents the land at 
a rate that is usual and customary;’’; 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing:
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•HR 2642 EAH1S 
‘‘(C) the share of the payments received by 
the landowner is commensurate with the share of 
the crop or income received as rent.’’; 
(B) in paragraph (2)(A), by striking ‘‘ac-
tive personal management or’’; 
(C) in paragraph (5)— 
(i) by striking ‘‘(5)’’ and all that fol-
lows through ‘‘(A) IN GENERAL.—A person’’ 
and inserting the following: 
‘‘(5) CUSTOM FARMING SERVICES.—A person’’; 
(ii) by inserting ‘‘under usual and cus-
tomary terms’’ after ‘‘services’’; and 
(iii) by striking subparagraph (B); 
and 
(D) by adding at the end the following: 
‘‘(7) FARM MANAGERS.—A person who otherwise 
meets the requirements of this subsection other than 
(b)(2)(A)(i)(II) shall be considered to be actively en-
gaged in farming, as determined by the Secretary, 
with respect to the farming operation, including a 
farming operation that is a sole proprietorship, a 
legal entity such as a joint venture or general part-
nership, or a legal entity such as a corporation or 
limited partnership, if the person—
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•HR 2642 EAH1S 
‘‘(A) makes a significant contribution of 
management to the farming operation necessary 
for the farming operation, taking into account— 
‘‘(i) the size and complexity of the 
farming operation; and 
‘‘(ii) the management requirements 
normally and customarily required by simi-
lar farming operations; 
‘‘(B)(i) is the only person in the farming 
operation qualifying as actively engaged in 
farming by using the farm manager special class 
designation under this paragraph; and 
‘‘(ii) together with any other persons in the 
farming operation qualifying as actively engaged 
in farming under subsection (b)(2) or as part of 
a special class under this subsection, does not 
collectively receive, directly or indirectly, an 
amount equal to more than the applicable limits 
under section 1001(b); 
‘‘(C) does not use the management contribu-
tion under this paragraph to qualify as actively 
engaged in more than 1 farming operation; and 
‘‘(D) manages a farm operation that does 
not substantially share equipment, labor, or 
management with persons or legal entities that
145 
•HR 2642 EAH1S 
with the person collectively receive, directly or 
indirectly, an amount equal to more than the 
applicable limits under section 1001(b).’’. 
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION. 
(a) LIMITATIONS AND COVERED BENEFITS.—Section 
1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308– 
3a(b)) is amended— 
(1) in the subsection heading, by striking ‘‘LIMI-
TATIONS’’ and inserting ‘‘LIMITATIONS
ON
COM-
MODITY AND CONSERVATION PROGRAMS’’; 
(2) by striking paragraphs (1) and (2) and in-
serting the following new paragraphs: 
‘‘(1) LIMITATION.—Notwithstanding any other 
provision of law, a person or legal entity shall not be 
eligible to receive any benefit described in paragraph 
(2) during a crop, fiscal, or program year, as appro-
priate, if the average adjusted gross income of the per-
son or legal entity exceeds $950,000. 
‘‘(2) COVERED BENEFITS.—Paragraph (1) ap-
plies with respect to a payment or benefit under sub-
title A, B, or E of title I, or title II of the Federal 
Agriculture Reform and Risk Management Act of 
2013, title II of the Farm Security and Rural Invest-
ment Act of 2002, title II of the Food, Conservation, 
and Energy Act of 2008, title XII of the Food Secu-
146 
•HR 2642 EAH1S 
rity Act of 1985, section 524(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)), or section 196 of 
the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7333).’’. 
(b) ELIMINATION OF UNUSED DEFINITIONS.—Para-
graph (1) of section 1001D(a) of the Food Security Act of 
1985 (7 U.S.C. 1308–3a(a)) is amended to read as follows: 
‘‘(1) AVERAGE
ADJUSTED
GROSS
INCOME.—In 
this section, the term ‘average adjusted gross income’, 
with respect to a person or legal entity, means the av-
erage of the adjusted gross income or comparable 
measure of the person or legal entity over the 3 tax-
able years preceding the most immediately preceding 
complete taxable year, as determined by the Sec-
retary.’’. 
(c) INCOME DETERMINATION.—Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308–3a) is amend-
ed— 
(1) by striking subsection (c); and 
(2) by redesignating subsections (d), (e), and (f) 
as subsections (c), (d), and (e), respectively. 
(d) CONFORMING AMENDMENTS.—Section 1001D of 
the Food Security Act of 1985 (7 U.S.C. 1308–3a) is 
amended— 
(1) in subsection (a)(2)—
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•HR 2642 EAH1S 
(A) by striking ‘‘subparagraph (A) or (B) 
of’’; and 
(B) by striking ‘‘, the average adjusted gross 
farm income, and the average adjusted gross 
nonfarm income’’; 
(2) in subsection (a)(3), by striking ‘‘, average 
adjusted gross farm income, and average adjusted 
gross nonfarm income’’ both places it appears; 
(3) in subsection (c) (as redesignated by sub-
section (c)(2) of this section)— 
(A) in paragraph (1), by striking ‘‘, average 
adjusted gross farm income, and average ad-
justed gross nonfarm income’’ both places it ap-
pears; and 
(B) in paragraph (2), by striking ‘‘para-
graphs (1)(C) and (2)(B) of subsection (b)’’ and 
inserting ‘‘subsection (b)(2)’’; and 
(4) in subsection (d) (as redesignated by sub-
section (c)(2) of this section)— 
(A) by striking ‘‘paragraphs (1)(C) and 
(2)(B) of subsection (b)’’ and inserting ‘‘sub-
section (b)(2)’’; and 
(B) by striking ‘‘, average adjusted gross 
farm income, or average adjusted gross nonfarm 
income’’.
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•HR 2642 EAH1S 
(e) EFFECTIVE PERIOD.—Subsection (e) of section 
1001D of the Food Security Act of 1985 (7 U.S.C. 1308– 
3a), as redesignated by subsection (c)(2) of this section, is 
repealed. 
(f) LIMITATION ON APPLICABILITY.—Section 1001(d) 
of the Food Security Act of 1985 (7 U.S.C. 1308) is amend-
ed by inserting before the period at the end the following: 
‘‘or title I of the Federal Agriculture Reform and Risk Man-
agement Act of 2013’’. 
(g) TRANSITION.—Section 1001D of the Food Security 
Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day 
before the date of the enactment of this Act, shall apply with 
respect to the 2013 crop, fiscal, or program year, as appro-
priate, for each program described in paragraphs (1)(C) 
and (2)(B) of subsection (b) of that section (as so in effect 
on that day). 
SEC. 1605. GEOGRAPHICALLY DISADVANTAGED FARMERS 
AND RANCHERS. 
Section 1621(d) of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8792(d)) is amended by striking 
‘‘each of fiscal years 2009 through 2012’’ and inserting ‘‘fis-
cal year 2009 and each succeeding fiscal year’’.
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•HR 2642 EAH1S 
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES. 
Section 164 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7284) is amended by 
striking ‘‘and title I of the Food, Conservation, and Energy 
Act of 2008’’ each place it appears and inserting ‘‘title I 
of the Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8702 et seq.), and title I of the Federal Agriculture 
Reform and Risk Management Act of 2013’’. 
SEC. 1607. PREVENTION OF DECEASED INDIVIDUALS RE-
CEIVING 
PAYMENTS 
UNDER 
FARM 
COM-
MODITY PROGRAMS. 
(a) RECONCILIATION.—At least twice each year, the 
Secretary shall reconcile Social Security numbers of all in-
dividuals who receive payments under this title, whether di-
rectly or indirectly, with the Commissioner of Social Secu-
rity to determined if the individuals are alive. 
(b) PRECLUSION.—The Secretary shall preclude the 
issuance of payments to, and on behalf of, deceased individ-
uals that were not eligible for payments. 
SEC. 1608. TECHNICAL CORRECTIONS. 
(a) MISSING PUNCTUATION.—Section 359f(c)(1)(B) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ff(c)(1)(B)) is amended by adding a period at the end. 
(b) ERRONEOUS CROSS REFERENCE.—
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(1) AMENDMENT.—Section 1603(g) of the Food, 
Conservation, and Energy Act of 2008 (Public Law 
110–246; 122 Stat. 1739) is amended in paragraphs 
(2) through (6) and the amendments made by those 
paragraphs by striking ‘‘1703(a)’’ each place it ap-
pears and inserting ‘‘1603(a)’’. 
(2) EFFECTIVE DATE.—This subsection and the 
amendments made by this subsection take effect as if 
included in the Food, Conservation, and Energy Act 
of 2008 (Public Law 110–246; 122 Stat. 1651). 
(c) CONTINUED APPLICABILITY OF APPROPRIATIONS 
GENERAL PROVISION.—Section 767 of division A of Public 
Law 108–7 (7 U.S.C. 7911 note; 117 Stat. 48) is amend-
ed— 
(1) in subsection (a)— 
(A) by striking ‘‘sections 1101 and 1102 of 
Public Law 107–171’’ and inserting ‘‘subtitle A 
of title I of the Federal Agriculture Reform and 
Risk Management Act of 2013’’; and 
(B) by striking ‘‘such section 1102’’ and in-
serting ‘‘such subtitle’’; and 
(2) by striking subsection (b) and inserting the 
following new subsection:
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‘‘(b) This section, as amended by section 1608(c) of the 
Federal Agriculture Reform and Risk Management Act of 
2013, shall take effect beginning with the 2014 crop year.’’. 
SEC. 1609. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)), relating to assignment of payments, shall apply 
to payments made under this title. 
(b) NOTICE.—The producer making the assignment, or 
the assignee, shall provide the Secretary with notice, in such 
manner as the Secretary may require, of any assignment 
made under this section. 
SEC. 1610. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment of 
this Act, the Secretary may track the benefits provided, di-
rectly or indirectly, to individuals and entities under titles 
I and II and the amendments made by those titles. 
SEC. 1611. SIGNATURE AUTHORITY. 
(a) IN GENERAL.—In carrying out this title and title 
II and amendments made by those titles, if the Secretary 
approves a document, the Secretary shall not subsequently 
determine the document is inadequate or invalid because 
of the lack of authority of any person signing the document 
on behalf of the applicant or any other individual, entity, 
general partnership, or joint venture, or the documents re-
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lied upon were determined inadequate or invalid, unless the 
person signing the program document knowingly and will-
fully falsified the evidence of signature authority or a signa-
ture. 
(b) AFFIRMATION.— 
(1) IN GENERAL.—Nothing in this section pro-
hibits the Secretary from asking a proper party to af-
firm any document that otherwise would be consid-
ered approved under subsection (a). 
(2) NO RETROACTIVE EFFECT.—A denial of bene-
fits based on a lack of affirmation under paragraph 
(1) shall not be retroactive with respect to third-party 
producers who were not the subject of the erroneous 
representation of authority, if the third-party pro-
ducers— 
(A) relied on the prior approval by the Sec-
retary of the documents in good faith; and 
(B) substantively complied with all pro-
gram requirements. 
SEC. 1612. IMPLEMENTATION. 
(a) STREAMLINING.—In implementing this title, the 
Secretary shall, to the maximum extent practicable— 
(1) seek to reduce administrative burdens and 
costs to producers by streamlining and reducing pa-
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perwork, forms, and other administrative require-
ments; 
(2) improve coordination, information sharing, 
and administrative work with the Risk Management 
Agency and the Natural Resources Conservation Serv-
ice; and 
(3) take advantage of new technologies to en-
hance efficiency and effectiveness of program delivery 
to producers. 
(b) MAINTENANCE
OF BASE ACRES
AND PAYMENT 
YIELDS.— 
(1) IN GENERAL.—The Secretary shall maintain, 
for each covered commodity and upland cotton, base 
acres and payment yields on a farm established 
under— 
(A)(i) in the case of covered commodities 
and upland cotton, sections 1101 and 1102 of the 
Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7911, 7912); and 
(ii) in the case of peanuts, section 1302 of 
that Act (7 U.S.C. 7952); and 
(B)(i) in the case of covered commodities 
and upland cotton, sections 1101 and 1102 of the 
Food, Conservation, and Energy Act of 2008 (7 
U.S.C. 8711, 8712); and
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(ii) in the case of peanuts, section 1302 of 
that Act (7 U.S.C. 8752). 
(2) SPECIAL RULE FOR LONG GRAIN AND ME-
DIUM GRAIN RICE.— 
(A) IN
GENERAL.—The Secretary shall 
maintain separate base acres for long grain rice 
and medium grain rice. 
(B) LIMITATION.—In carrying out this 
paragraph, the Secretary shall use the same total 
base acres and payment yields established with 
respect to rice under sections 1108 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 
8718), as in effect on the day before the date of 
enactment of this Act, subject to any adjustment 
under section 1105. 
(c) IMPLEMENTATION.—The Secretary shall make 
available to the Farm Service Agency to carry out this title 
$100,000,000. 
SEC. 1613. PROTECTION OF PRODUCER INFORMATION. 
(a) PROHIBITION OF PUBLIC DISCLOSURE OF PRO-
TECTED INFORMATION.—Except as provided in subsection 
(b), the Secretary, any officer or employee of the Depart-
ment of Agriculture, any contractor or cooperator of the De-
partment, and any officer or employee of another Federal 
agency shall not disclose—
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(1) information submitted by a producer or 
owner of agricultural land to the Federal Government 
pursuant to title I or II of this Act; or 
(2) other information provided by a producer or 
owner of agricultural land concerning the agricul-
tural operation, farming or conservation practices, or 
the land itself in order to participate in programs of 
the Department of Agriculture or other Federal agen-
cies. 
(b) EXCEPTIONS.—Information described in subsection 
(a) may be disclosed if— 
(1) the information is required to be made pub-
licly available under any other provision of Federal 
law; 
(2) the producer or owner of agricultural land 
who provided the information has lawfully publicly 
disclosed the information; 
(3) the producer or owner of agricultural land 
who provided the information consents to the disclo-
sure; or 
(4) the information is disclosed to the Attorney 
General, to the extent necessary, to ensure compliance 
and law enforcement. 
(c) NOTICE OF DISCLOSURE.—Any disclosure of infor-
mation pursuant to an exception provided in subsection (b)
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shall be reported to the Committee on Agriculture of the 
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate within 24 
hours after the disclosure. 
(d) PRODUCER DEFINED.—In this section, the term 
‘‘producer’’ has the meaning given that term in section 
1104(14) of this Act. 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve 
Program 
SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS 
OF CONSERVATION RESERVE PROGRAM. 
(a) EXTENSION.—Section 1231(a) of the Food Security 
Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(b) ELIGIBLE LAND.—Section 1231(b) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831(b)) is amended— 
(1) in paragraph (1)(B), by striking ‘‘the date of 
enactment of the Food, Conservation, and Energy Act 
of 2008’’ and inserting ‘‘the date of the enactment of 
the Federal Agriculture Reform and Risk Manage-
ment Act of 2013’’; 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2);
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‘‘(B) the remainder of the field is— 
‘‘(i) infeasible to farm; and 
‘‘(ii) enrolled at regular rental rates.’’. 
(c) PLANTING STATUS OF CERTAIN LAND.—Section 
1231(c) of the Food Security Act of 1985 (16 U.S.C. 
3831(c)) is amended by striking ‘‘if’’ and all that follows 
through the period at the end and inserting ‘‘if, during the 
crop year, the land was devoted to a conserving use.’’. 
(d) ENROLLMENT.—Subsection (d) of section 1231 of 
the Food Security Act of 1985 (16 U.S.C. 3831) is amended 
to read as follows: 
‘‘(d) ENROLLMENT.— 
‘‘(1) MAXIMUM ACREAGE ENROLLED.—The Sec-
retary may maintain in the conservation reserve at 
any one time during— 
‘‘(A) fiscal year 2014, no more than 
27,500,000 acres; 
‘‘(B) fiscal year 2015, no more than 
26,000,000 acres; 
‘‘(C) fiscal year 2016, no more than 
25,000,000 acres; 
‘‘(D) fiscal year 2017, no more than 
24,000,000 acres; and 
‘‘(E) fiscal year 2018, no more than 
24,000,000 acres.
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‘‘(2) GRASSLANDS.— 
‘‘(A) LIMITATION.—For purposes of apply-
ing the limitations in paragraph (1), no more 
than 2,000,000 acres of the land described in 
subsection (b)(3) may be enrolled in the program 
at any one time during the 2014 through 2018 
fiscal years. 
‘‘(B) PRIORITY.—In enrolling acres under 
subparagraph (A), the Secretary may give pri-
ority to land with expiring conservation reserve 
program contracts. 
‘‘(C) METHOD OF ENROLLMENT.—In enroll-
ing acres under subparagraph (A), the Secretary 
shall make the program available to owners or 
operators of eligible land on a continuous enroll-
ment basis with one or more ranking periods.’’. 
(e) DURATION OF CONTRACT.—Section 1231(e) of the 
Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended 
by striking paragraphs (2) and (3) and inserting the fol-
lowing new paragraph: 
‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In the 
case of land devoted to hardwood trees, shelterbelts, 
windbreaks, or wildlife corridors under a contract en-
tered into under this subchapter, the owner or oper-
ator of the land may, within the limitations pre-
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scribed under paragraph (1), specify the duration of 
the contract.’’. 
(f) CONSERVATION PRIORITY AREAS.—Section 1231(f) 
of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is 
amended— 
(1) in paragraph (1), by striking ‘‘watershed 
areas of the Chesapeake Bay Region, the Great Lakes 
Region, the Long Island Sound Region, and other’’; 
(2) in paragraph (2), by striking ‘‘WATER-
SHEDS.—Watersheds’’ 
and 
inserting 
‘‘AREAS.— 
Areas’’; and 
(3) in paragraph (3), by striking ‘‘a watershed’s 
designation—’’ and all that follows through the pe-
riod at the end and inserting ‘‘an area’s designation 
if the Secretary finds that the area no longer contains 
actual and significant adverse water quality or habi-
tat impacts related to agricultural production activi-
ties.’’. 
SEC. 2002. FARMABLE WETLAND PROGRAM. 
(a) EXTENSION.—Section 1231B(a)(1) of the Food Se-
curity Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘a program’’ and inserting ‘‘a 
farmable wetland program’’.
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(b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 
the Food Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) 
is amended by striking ‘‘flow from a row crop agriculture 
drainage system’’ and inserting ‘‘surface and subsurface 
flow from row crop agricultural production’’. 
(c) ACREAGE LIMITATION.—Section 1231B(c)(1)(B) of 
the Food Security Act of 1985 (16 U.S.C. 3831b(c)(1)(B)) 
is amended by striking ‘‘1,000,000’’ and inserting 
‘‘750,000’’. 
(d) CLERICAL AMENDMENT.—The heading of section 
1231B of the Food Security Act of 1985 (16 U.S.C. 3831b) 
is amended to read as follows: ‘‘FARMABLE WETLAND 
PROGRAM.’’. 
SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 
(a) LIMITATION ON HARVESTING, GRAZING, OR COM-
MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the Food 
Security Act of 1985 (16 U.S.C. 3832(a)(8)) is amended 
by striking ‘‘except that’’ and all that follows through the 
semicolon at the end of the paragraph and inserting ‘‘except 
as provided in subsection (b) or (c) of section 1233;’’. 
(b) CONSERVATION
PLAN
REQUIREMENTS.—Sub-
section (b) of section 1232 of the Food Security Act of 1985 
(16 U.S.C. 3832) is amended to read as follows: 
‘‘(b) CONSERVATION PLANS.—The plan referred to in 
subsection (a)(1) shall set forth—
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‘‘(1) the conservation measures and practices to 
be carried out by the owner or operator during the 
term of the contract; and 
‘‘(2) the commercial use, if any, to be permitted 
on the land during the term.’’. 
(c) RENTAL PAYMENT REDUCTION.—Section 1232 of 
the Food Security Act of 1985 (16 U.S.C. 3832) is amended 
by striking subsection (d). 
SEC. 2004. DUTIES OF THE SECRETARY. 
Section 1233 of the Food Security Act of 1985 (16 
U.S.C. 3833) is amended to read as follows: 
‘‘SEC. 1233. DUTIES OF THE SECRETARY. 
‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re-
turn for a contract entered into by an owner or operator 
under the conservation reserve program, the Secretary 
shall— 
‘‘(1) share the cost of carrying out the conserva-
tion measures and practices set forth in the contract 
for which the Secretary determines that cost sharing 
is appropriate and in the public interest; and 
‘‘(2) for a period of years not in excess of the 
term of the contract, pay an annual rental payment 
in an amount necessary to compensate for— 
‘‘(A) the conversion of highly erodible crop-
land or other eligible lands normally devoted to
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the production of an agricultural commodity on 
a farm or ranch to a less intensive use; 
‘‘(B) the retirement of any base history that 
the owner or operator agrees to retire perma-
nently; and 
‘‘(C) the development and management of 
grasslands for multiple natural resource con-
servation benefits, including to soil, water, air, 
and wildlife. 
‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec-
retary shall permit certain activities or commercial uses of 
land that is subject to a contract under the conservation 
reserve program in a manner that is consistent with a plan 
approved by the Secretary, as follows: 
‘‘(1) Harvesting, grazing, or other commercial 
use of the forage in response to a drought or other 
emergency created by a natural disaster, without any 
reduction in the rental rate. 
‘‘(2) Consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
during nesting seasons for birds in the area), and in 
exchange for a reduction of not less than 25 percent 
in the annual rental rate for the acres covered by the 
authorized activity—
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‘‘(A) managed harvesting and other com-
mercial use (including the managed harvesting 
of biomass), except that in permitting managed 
harvesting, the Secretary, in coordination with 
the State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
‘‘(ii) shall identify periods during 
which managed harvesting may be con-
ducted, such that the frequency is not more 
than once every three years; 
‘‘(B) routine grazing or prescribed grazing 
for the control of invasive species, except that in 
permitting such routine grazing or prescribed 
grazing, the Secretary, in coordination with the 
State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements and stocking 
rates for the land that are suitable for con-
tinued routine grazing; and 
‘‘(ii) shall identify the periods during 
which routine grazing may be conducted, 
such that the frequency is not more than 
once every two years, taking into consider-
ation regional differences such as—
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‘‘(I) climate, soil type, and nat-
ural resources; 
‘‘(II) the number of years that 
should be required between routine 
grazing activities; and 
‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(C) the installation of wind turbines and 
associated access, except that in permitting the 
installation of wind turbines, the Secretary shall 
determine the number and location of wind tur-
bines that may be installed, taking into ac-
count— 
‘‘(i) the location, size, and other phys-
ical characteristics of the land; 
‘‘(ii) the extent to which the land con-
tains wildlife and wildlife habitat; and 
‘‘(iii) the purposes of the conservation 
reserve program under this subchapter. 
‘‘(3) The intermittent and seasonal use of vegeta-
tive buffer practices incidental to agricultural produc-
tion on lands adjacent to the buffer such that the per-
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mitted use does not destroy the permanent vegetative 
cover. 
‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLANDS.—For 
eligible land described in section 1231(b)(3), the Secretary 
shall permit the following activities: 
‘‘(1) Common grazing practices, including main-
tenance and necessary cultural practices, on the land 
in a manner that is consistent with maintaining the 
viability of grassland, forb, and shrub species appro-
priate to that locality. 
‘‘(2) Haying, mowing, or harvesting for seed 
production, subject to appropriate restrictions during 
the nesting season for critical bird species in the area. 
‘‘(3) Fire presuppression, fire-related rehabilita-
tion, and construction of fire breaks. 
‘‘(4) Grazing-related activities, such as fencing 
and livestock watering. 
‘‘(d) RESOURCE CONSERVING USE.— 
‘‘(1) IN GENERAL.—Beginning on the date that 
is 1 year before the date of termination of a contract 
under the program, the Secretary shall allow an 
owner or operator to make conservation and land im-
provements that facilitate maintaining protection of 
enrolled land after expiration of the contract.
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‘‘(2) CONSERVATION PLAN.—The Secretary shall 
require an owner or operator carrying out the activi-
ties described in paragraph (1) to develop and imple-
ment a conservation plan. 
‘‘(3) RE-ENROLLMENT PROHIBITED.—Land im-
proved under paragraph (1) may not be re-enrolled in 
the conservation reserve program for 5 years after the 
date of termination of the contract.’’. 
SEC. 2005. PAYMENTS. 
(a) TREES, WINDBREAKS, SHELTERBELTS, AND WILD-
LIFE CORRIDORS.—Section 1234(b)(3)(A) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is amended— 
(1) in clause (i), by inserting ‘‘and’’ after the 
semicolon; 
(2) by striking clause (ii); and 
(3) by redesignating clause (iii) as clause (ii). 
(b) ANNUAL RENTAL PAYMENTS.—Section 1234(c) of 
the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
amended— 
(1) in paragraph (1), by inserting ‘‘or other eli-
gible lands’’ after ‘‘highly erodible cropland’’ both 
places it appears; and 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) METHODS OF DETERMINATION.—
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‘‘(A) IN GENERAL.—The amounts payable 
to owners or operators in the form of rental pay-
ments under contracts entered into under this 
subchapter may be determined through— 
‘‘(i) the submission of bids for such 
contracts by owners and operators in such 
manner as the Secretary may prescribe; or 
‘‘(ii) such other means as the Secretary 
determines are appropriate. 
‘‘(B) GRASSLANDS.—In the case of eligible 
land described in section 1231(b)(3), the Sec-
retary shall make annual payments in an 
amount that is not more than 75 percent of the 
grazing value of the land covered by the con-
tract.’’. 
(c) PAYMENT SCHEDULE.—Subsection (d) of section 
1234 of the Food Security Act of 1985 (16 U.S.C. 3834) 
is amended to read as follows: 
‘‘(d) PAYMENT SCHEDULE.— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this section, payments under this subchapter shall 
be made in cash in such amount and on such time 
schedule as is agreed on and specified in the contract.
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‘‘(2) ADVANCE PAYMENT.—Payments under this 
subchapter may be made in advance of determination 
of performance.’’. 
(d) PAYMENT LIMITATION.—Section 1234(f) of the 
Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘, including 
rental payments made in the form of in-kind com-
modities,’’; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as para-
graph (2). 
SEC. 2006. CONTRACT REQUIREMENTS. 
(a) EARLY TERMINATION BY OWNER OR OPERATOR.— 
Section 1235(e) of the Food Security Act of 1985 (16 U.S.C. 
3835(e)) is amended— 
(1) in paragraph (1)(A)— 
(A) by striking ‘‘The Secretary’’ and insert-
ing ‘‘During fiscal year 2014, the Secretary’’; 
and 
(B) by striking ‘‘before January 1, 1995,’’; 
(2) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
‘‘(C) Land devoted to hardwood trees.
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‘‘(D) Wildlife habitat, duck nesting habitat, 
pollinator habitat, upland bird habitat buffer, 
wildlife food plots, State acres for wildlife en-
hancement, shallow water areas for wildlife, and 
rare and declining habitat. 
‘‘(E) Farmable wetland and restored wet-
land. 
‘‘(F) Land that contains diversions, erosion 
control structures, flood control structures, con-
tour grass strips, living snow fences, salinity re-
ducing vegetation, cross wind trap strips, and 
sediment retention structures. 
‘‘(G) Land located within a federally-des-
ignated wellhead protection area. 
‘‘(H) Land that is covered by an easement 
under the conservation reserve program. 
‘‘(I) Land located within an average width, 
according to the applicable Natural Resources 
Conservation Service field office technical guide, 
of a perennial stream or permanent water 
body.’’; and 
(3) in paragraph (3), by striking ‘‘60 days after 
the date on which the owner or operator submits the 
notice required under paragraph (1)(C)’’ and insert-
ing ‘‘upon approval by the Secretary’’.
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(b) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.—Section 1235(f) of the Food Security Act of 
1985 (16 U.S.C. 3835(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘DUTIES’’ and all that follows 
through ‘‘a beginning farmer’’ and inserting 
‘‘TRANSITION TO COVERED FARMER OR RANCH-
ER.—In the case of a contract modification ap-
proved in order to facilitate the transfer of land 
subject to a contract from a retired farmer or 
rancher to a beginning farmer’’; 
(B) in subparagraph (A)(i), by inserting ‘‘, 
including preparing to plant an agricultural 
crop’’ after ‘‘improvements’’; 
(C) in subparagraph (D), by striking ‘‘the 
farmer or rancher’’ and inserting ‘‘the covered 
farmer or rancher’’; and 
(D) in subparagraph (E), by striking ‘‘sec-
tion 1001A(b)(3)(B)’’ and inserting ‘‘section 
1001’’; and 
(2) in paragraph (2), by striking ‘‘requirement 
of section 1231(h)(4)(B)’’ and inserting ‘‘option pur-
suant to section 1234(c)(2)(A)(ii)’’.
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(c) FINAL YEAR CONTRACT.—Section 1235 of the Food 
Security Act of 1985 (16 U.S.C. 3835) is amended by add-
ing at the end the following new subsections: 
‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary shall 
not consider an owner or operator to be in violation of a 
term or condition of the conservation reserve contract if— 
‘‘(1) during the year prior to expiration of the 
contract, the land is enrolled in the conservation stew-
ardship program; and 
‘‘(2) the activity required under the conservation 
stewardship program pursuant to such enrollment is 
consistent with this subchapter. 
‘‘(h) LAND ENROLLED IN AGRICULTURAL CONSERVA-
TION EASEMENT PROGRAM.—The Secretary may terminate 
or modify a contract entered into under this subchapter if 
eligible land that is subject to such contract is transferred 
into the agricultural conservation easement program under 
subtitle H.’’. 
SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 
TO OTHER CONSERVING USES. 
Section 1235A of the Food Security Act of 1985 (16 
U.S.C. 3835a) is repealed. 
SEC. 2008. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this sub-
title shall take effect on October 1, 2013, except the amend-
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ment made by section 2001(d), which shall take effect on 
the date of the enactment of this Act. 
(b) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this subtitle shall 
not affect the validity or terms of any contract en-
tered into by the Secretary of Agriculture under sub-
chapter B of chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 
before October 1, 2013, or any payments required to 
be made in connection with the contract. 
(2) UPDATING
OF
EXISTING
CONTRACTS.—The 
Secretary shall permit an owner or operator of land 
subject to a contract entered into under subchapter B 
of chapter 1 of subtitle D of title XII of the Food Se-
curity Act of 1985 (16 U.S.C. 3831 et seq.) before Oc-
tober 1, 2013, to update the contract to reflect the ac-
tivities and uses of land under contract permitted 
under the terms and conditions of section 1233(b) of 
that Act (as amended by section 2004), as determined 
appropriate by the Secretary.
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Subtitle B—Conservation 
Stewardship Program 
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 
(a) REVISION OF CURRENT PROGRAM.—Subchapter B 
of chapter 2 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3838d et seq.) is amended to read 
as follows: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) AGRICULTURAL OPERATION.—The term ‘ag-
ricultural operation’ means all eligible land, whether 
or not contiguous, that is— 
‘‘(A) under the effective control of a pro-
ducer at the time the producer enters into a con-
tract under the program; and 
‘‘(B) operated with equipment, labor, man-
agement, and production or cultivation practices 
that are substantially separate from other agri-
cultural operations, as determined by the Sec-
retary. 
‘‘(2) CONSERVATION ACTIVITIES.—
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‘‘(A) IN GENERAL.—The term ‘conservation 
activities’ means conservation systems, practices, 
or management measures. 
‘‘(B) INCLUSIONS.—The term ‘conservation 
activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage management 
systems, as determined by the Secretary; 
and 
‘‘(ii) planning needed to address a pri-
ority resource concern. 
‘‘(3) CONSERVATION STEWARDSHIP PLAN.—The 
term ‘conservation stewardship plan’ means a plan 
that— 
‘‘(A) identifies and inventories priority re-
source concerns; 
‘‘(B) establishes benchmark data and con-
servation objectives; 
‘‘(C) describes conservation activities to be 
implemented, managed, or improved; and 
‘‘(D) includes a schedule and evaluation 
plan for the planning, installation, and manage-
ment of the new and existing conservation activi-
ties.
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‘‘(4) ELIGIBLE LAND.— 
‘‘(A) IN GENERAL.—The term ‘eligible land’ 
means— 
‘‘(i) private or tribal land on which 
agricultural commodities, livestock, or for-
est-related products are produced; and 
‘‘(ii) lands associated with the land de-
scribed in clause (i) on which priority re-
source concerns could be addressed through 
a contract under the program. 
‘‘(B) INCLUSIONS.—The term ‘eligible land’ 
includes— 
‘‘(i) cropland; 
‘‘(ii) grassland; 
‘‘(iii) rangeland; 
‘‘(iv) pasture land; 
‘‘(v) nonindustrial private forest land; 
and 
‘‘(vi) other agricultural areas (includ-
ing cropped woodland, marshes, and agri-
cultural land used or capable of being used 
for the production of livestock), as deter-
mined by the Secretary. 
‘‘(5) PRIORITY RESOURCE CONCERN.—The term 
‘priority resource concern’ means a natural resource
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concern or problem, as determined by the Secretary, 
that— 
‘‘(A) is identified at the national, State, or 
local level as a priority for a particular area of 
a State; 
‘‘(B) represents a significant concern in a 
State or region; and 
‘‘(C) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities under this program. 
‘‘(6) PROGRAM.—The term ‘program’ means the 
conservation stewardship program established by this 
subchapter. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of manage-
ment required, as determined by the Secretary, to 
conserve and improve the quality and condition of a 
natural resource. 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of 
fiscal years 2014 through 2018, the Secretary shall carry 
out a conservation stewardship program to encourage pro-
ducers to address priority resource concerns in a com-
prehensive manner—
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‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining, and managing 
existing conservation activities. 
‘‘(b) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVATION 
PROGRAMS.—Subject to paragraph (2), the following 
land (even if covered by the definition of eligible land) 
is not eligible for enrollment in the program: 
‘‘(A) Land enrolled in the conservation re-
serve program, unless— 
‘‘(i) the conservation reserve contract 
will expire at the end of the fiscal year in 
which the land is to be enrolled in the pro-
gram; and 
‘‘(ii) conservation reserve program 
payments for land enrolled in the program 
cease before the first program payment is 
made to the applicant under this sub-
chapter. 
‘‘(B) Land enrolled in a wetland easement 
through the agricultural conservation easement 
program. 
‘‘(C) Land enrolled in the conservation se-
curity program.
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‘‘(2) CONVERSION TO CROPLAND.—Eligible land 
used for crop production after October 1, 2013, that 
had not been planted, considered to be planted, or de-
voted to crop production for at least 4 of the 6 years 
preceding that date shall not be the basis for any pay-
ment under the program, unless the land does not 
meet the requirement because— 
‘‘(A) the land had previously been enrolled 
in the conservation reserve program; 
‘‘(B) the land has been maintained using 
long-term crop rotation practices, as determined 
by the Secretary; or 
‘‘(C) the land is incidental land needed for 
efficient operation of the farm or ranch, as deter-
mined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eligi-
ble to participate in the conservation stewardship program, 
a producer shall submit to the Secretary a contract offer 
for the agricultural operation that— 
‘‘(1) demonstrates to the satisfaction of the Sec-
retary that the producer, at the time of the contract 
offer, meets or exceeds the stewardship threshold for at 
least 2 priority resource concerns; and
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‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 additional pri-
ority resource concern by the end of the stewardship 
contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging existing conservation activities across the 
entire agricultural operation in a manner that 
increases or extends the conservation benefits in 
place at the time the contract offer is accepted by 
the Secretary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING OF APPLICATIONS.—In evaluating 
contract offers submitted under subsection (a), the 
Secretary shall rank applications based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application; 
‘‘(B) the degree to which the proposed con-
servation activities effectively increase conserva-
tion performance; 
‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet or
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exceed the stewardship threshold by the end of the 
contract; 
‘‘(D) the extent to which other priority re-
source concerns will be addressed to meet or ex-
ceed the stewardship threshold by the end of the 
contract period; 
‘‘(E) the extent to which the actual and an-
ticipated conservation benefits from the contract 
are provided at the least cost relative to other 
similarly beneficial contract offers; and 
‘‘(F) the extent to which priority resource 
concerns will be addressed when transitioning 
from the conservation reserve program to agri-
cultural production. 
‘‘(2) PROHIBITION.—The Secretary may not as-
sign a higher priority to any application because the 
applicant is willing to accept a lower payment than 
the applicant would otherwise be eligible to receive. 
‘‘(3) ADDITIONAL CRITERIA.—The Secretary may 
develop and use such additional criteria that the Sec-
retary determines are necessary to ensure that na-
tional, State, and local priority resource concerns are 
effectively addressed. 
‘‘(c) ENTERING INTO CONTRACTS.—After a determina-
tion that a producer is eligible for the program under sub-
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section (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conservation 
stewardship contract with the producer to enroll the eligible 
land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship con-
tract shall be for a term of 5 years. 
‘‘(2) REQUIRED PROVISIONS.—The conservation 
stewardship contract of a producer shall— 
‘‘(A) state the amount of the payment the 
Secretary agrees to make to the producer for each 
year of the conservation stewardship contract 
under section 1238G(d); 
‘‘(B) require the producer— 
‘‘(i) to implement a conservation stew-
ardship plan that describes the program 
purposes to be achieved through 1 or more 
conservation activities; 
‘‘(ii) to maintain and supply informa-
tion as required by the Secretary to deter-
mine compliance with the conservation 
stewardship plan and any other require-
ments of the program; and
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‘‘(iii) not to conduct any activities on 
the agricultural operation that would tend 
to defeat the purposes of the program; 
‘‘(C) permit all economic uses of the eligible 
land that— 
‘‘(i) maintain the agricultural nature 
of the land; and 
‘‘(ii) are consistent with the conserva-
tion purposes of the conservation steward-
ship contract; 
‘‘(D) include a provision to ensure that a 
producer shall not be considered in violation of 
the contract for failure to comply with the con-
tract due to circumstances beyond the control of 
the producer, including a disaster or related con-
dition, as determined by the Secretary; 
‘‘(E) include provisions requiring that upon 
the violation of a term or condition of the con-
tract at any time the producer has control of the 
land— 
‘‘(i) if the Secretary determines that 
the violation warrants termination of the 
contract—