(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to that loan com-
modity on the farm; or 
(II) in the case of a farm without a 
payment yield for that loan commodity, an 
appropriate yield established by the Sec-
retary in a manner consistent with section 
1106(c) of this Act. 
(2) GRAZING
OF
TRITICALE
ACREAGE.—The 
amount of a payment made under this section to a 
producer on a farm described in subsection (a)(2) 
shall be equal to the amount determined by multi-
plying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect for 
wheat, as of the date of the agreement, for the 
county in which the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of triticale; 
and 
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(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to wheat on the 
farm; or 
(II) in the case of a farm without a 
payment yield for wheat, an appropriate 
yield established by the Secretary in a 
manner consistent with section 1106(c) of 
this Act. 
(c) TIME, MANNER, AND AVAILABILITY
OF PAY-
MENT.— 
(1) TIME AND MANNER.—A payment under this 
section shall be made at the same time and in the 
same manner as loan deficiency payments are made 
under section 1205. 
(2) AVAILABILITY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish an availability period for the payments 
authorized by this section. 
(B) CERTAIN COMMODITIES.—In the case 
of wheat, barley, and oats, the availability pe-
riod shall be consistent with the availability pe-
riod for the commodity established by the Sec-
retary for marketing assistance loans author-
ized by this subtitle. 
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(d) PROHIBITION ON CROP INSURANCE INDEMNITY 
OR NONINSURED CROP ASSISTANCE.—A 2014 crop or 
succeeding annual crop of wheat, barley, oats, or triticale 
planted on acreage that a producer elects, in the agree-
ment required by subsection (a), to use for the grazing 
of livestock in lieu of any other harvesting of the crop shall 
not be eligible for an indemnity under a policy or plan 
of insurance authorized under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance 
under section 196 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR 
UPLAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.— 
In this subsection, the term ‘‘special import quota’’ 
means a quantity of imports that is not subject to 
the over-quota tariff rate of a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN
GENERAL.—The President shall 
carry out an import quota program beginning 
on August 1, 2014, as provided in this sub-
section. 
(B) PROGRAM REQUIREMENTS.—Whenever 
the Secretary determines and announces that 
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for any consecutive 4-week period, the Friday 
through Thursday average price quotation for 
the lowest-priced United States growth, as 
quoted for Middling (M) 13⁄32-inch cotton, deliv-
ered to a definable and significant international 
market, as determined by the Secretary, ex-
ceeds the prevailing world market price, there 
shall immediately be in effect a special import 
quota. 
(3) QUANTITY.—The quota shall be equal to 
the consumption during a 1-week period of cotton by 
domestic mills at the seasonally adjusted average 
rate of the most recent 3 months for which official 
data of the Department of Agriculture are available 
or, in the absence of sufficient data, as estimated by 
the Secretary. 
(4) APPLICATION.—The quota shall apply to 
upland cotton purchased not later than 90 days 
after the date of the Secretary’s announcement 
under paragraph (2) and entered into the United 
States not later than 180 days after that date. 
(5) OVERLAP.—A special quota period may be 
established that overlaps any existing quota period if 
required by paragraph (2), except that a special 
quota period may not be established under this sub-
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section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 
1974 (19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing 
year under the special import quota established 
under this subsection may not exceed the equivalent 
of 10 weeks’ consumption of upland cotton by do-
mestic mills at the seasonally adjusted average rate 
of the 3 months immediately preceding the first spe-
cial import quota established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
(1) DEFINITIONS.—In this subsection: 
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(A) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption of 
cotton during the most recent 3 months 
for which official data of the Department 
of Agriculture are available or, in the ab-
sence of sufficient data, as estimated by 
the Secretary; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton during the preceding 6 marketing 
years; or 
(II) cumulative exports of upland 
cotton plus outstanding export sales 
for the marketing year in which the 
quota is established. 
(B) LIMITED
GLOBAL
IMPORT
QUOTA.— 
The term ‘‘limited global import quota’’ means 
a quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(C) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Department 
of Agriculture— 
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(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; 
and 
(iii) imports to the latest date avail-
able during the marketing year. 
(2) PROGRAM.—The President shall carry out 
an import quota program that provides that when-
ever the Secretary determines and announces that 
the average price of the base quality of upland cot-
ton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of the quality of cotton in 
the markets for the preceding 36 months, notwith-
standing any other provision of law, there shall im-
mediately be in effect a limited global import quota 
subject to the following conditions: 
(A) QUANTITY.—The quantity of the quota 
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which official data of the Department of Ag-
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riculture are available or, in the absence of suf-
ficient data, as estimated by the Secretary. 
(B) QUANTITY
IF
PRIOR
QUOTA.—If a 
quota has been established under this sub-
section during the preceding 12 months, the 
quantity of the quota next established under 
this subsection shall be the smaller of 21 days 
of domestic mill consumption calculated under 
subparagraph (A) or the quantity required to 
increase the supply to 130 percent of the de-
mand. 
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a limited global 
import quota shall be considered to be an in- 
quota quantity for purposes of— 
(i) section 213(d) of the Caribbean 
Basin Economic Recovery Act (19 U.S.C. 
2703(d)); 
(ii) section 204 of the Andean Trade 
Preference Act (19 U.S.C. 3203); 
(iii) section 503(d) of the Trade Act 
of 1974 (19 U.S.C. 2463(d)); and 
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
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(D) QUOTA
ENTRY
PERIOD.—When a 
quota is established under this subsection, cot-
ton may be entered under the quota during the 
90-day period beginning on the date the quota 
is established by the Secretary. 
(3) NO OVERLAP.—Notwithstanding paragraph 
(2), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (a). 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall, on a monthly basis, make eco-
nomic adjustment assistance available to domestic 
users of upland cotton in the form of payments for 
all documented use of that upland cotton during the 
previous monthly period regardless of the origin of 
the upland cotton. 
(2) VALUE OF ASSISTANCE.—Effective begin-
ning on August 1, 2013, the value of the assistance 
provided under paragraph (1) shall be 3 cents per 
pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made 
available only to domestic users of upland cotton 
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that certify that the assistance shall be used only to 
acquire, construct, install, modernize, develop, con-
vert, or expand land, plant, buildings, equipment, fa-
cilities, or machinery. 
(4) REVIEW
OR
AUDIT.—The Secretary may 
conduct such review or audit of the records of a do-
mestic user under this subsection as the Secretary 
determines necessary to carry out this subsection. 
(5) IMPROPER
USE
OF
ASSISTANCE.—If the 
Secretary determines, after a review or audit of the 
records of the domestic user, that economic adjust-
ment assistance under this subsection was not used 
for the purposes specified in paragraph (3), the do-
mestic user shall be— 
(A) liable for the repayment of the assist-
ance to the Secretary, plus interest, as deter-
mined by the Secretary; and 
(B) ineligible to receive assistance under 
this subsection for a period of 1 year following 
the determination of the Secretary. 
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 
LONG STAPLE COTTON. 
(a) COMPETITIVENESS PROGRAM.—Notwithstanding 
any other provision of law, the Secretary shall carry out 
a program— 
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(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple cot-
ton produced in the United States; and 
(3) to ensure that extra long staple cotton pro-
duced in the United States remains competitive in 
world markets. 
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 
the program, the Secretary shall make payments available 
under this section whenever— 
(1) for a consecutive 4-week period, the world 
market price for the lowest priced competing growth 
of extra long staple cotton (adjusted to United 
States quality and location and for other factors af-
fecting the competitiveness of such cotton), as deter-
mined by the Secretary, is below the prevailing 
United States price for a competing growth of extra 
long staple cotton; and 
(2) the lowest priced competing growth of extra 
long staple cotton (adjusted to United States quality 
and location and for other factors affecting the com-
petitiveness of such cotton), as determined by the 
Secretary, is less than 134 percent of the loan rate 
for extra long staple cotton. 
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(c) ELIGIBLE RECIPIENTS.—The Secretary shall 
make payments available under this section to domestic 
users of extra long staple cotton produced in the United 
States and exporters of extra long staple cotton produced 
in the United States that enter into an agreement with 
the Commodity Credit Corporation to participate in the 
program under this section. 
(d) PAYMENT AMOUNT.—Payments under this sec-
tion shall be based on the amount of the difference in the 
prices referred to in subsection (b)(1) during the fourth 
week of the consecutive 4-week period multiplied by the 
amount of documented purchases by domestic users and 
sales for export by exporters made in the week following 
such a consecutive 4-week period. 
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 
MOISTURE FEED GRAINS AND SEED COTTON. 
(a) HIGH MOISTURE FEED GRAINS.— 
(1) DEFINITION OF HIGH MOISTURE STATE.— 
In this subsection, the term ‘‘high moisture state’’ 
means corn or grain sorghum having a moisture con-
tent in excess of Commodity Credit Corporation 
standards for marketing assistance loans made by 
the Secretary under section 1201. 
(2) RECOURSE
LOANS
AVAILABLE.—For the 
2014 crop and each succeeding annual crop of corn 
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and grain sorghum, the Secretary shall make avail-
able recourse loans, as determined by the Secretary, 
to producers on a farm that— 
(A) normally harvest all or a portion of 
their crop of corn or grain sorghum in a high 
moisture state; 
(B) present— 
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill, 
distillery, or other similar entity approved 
by the Secretary, pursuant to regulations 
issued by the Secretary; or 
(ii) field or other physical measure-
ments of the standing or stored crop in re-
gions of the United States, as determined 
by the Secretary, that do not have certified 
commercial scales from which certified 
scale tickets may be obtained within rea-
sonable proximity of harvest operation; 
(C) certify that the producers on the farm 
were the owners of the feed grain at the time 
of delivery to, and that the quantity to be 
placed under loan under this subsection was in 
fact harvested on the farm and delivered to, a 
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feedlot, feed mill, or commercial or on-farm 
high-moisture storage facility, or to a facility 
maintained by the users of corn and grain sor-
ghum in a high moisture state; and 
(D) comply with deadlines established by 
the Secretary for harvesting the corn or grain 
sorghum and submit applications for loans 
under this subsection within deadlines estab-
lished by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 
A loan under this subsection shall be made on a 
quantity of corn or grain sorghum of the same crop 
acquired by the producer equivalent to a quantity 
determined by multiplying— 
(A) the acreage of the corn or grain sor-
ghum in a high moisture state harvested on the 
farm of the producer; by 
(B) the lower of the farm program pay-
ment yield used to make payments under sub-
title A or the actual yield on a field, as deter-
mined by the Secretary, that is similar to the 
field from which the corn or grain sorghum was 
obtained. 
(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For the 2014 crop and each succeeding annual 
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crop of upland cotton and extra long staple cotton, the 
Secretary shall make available recourse seed cotton loans, 
as determined by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate es-
tablished for the commodity by the Secretary, plus interest 
(determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT
AUTHORITY.—Subject to sub-
section (e), the Secretary may make appropriate adjust-
ments in the loan rates for any loan commodity (other 
than cotton) for differences in grade, type, quality, loca-
tion, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan 
level for the commodity will, on the basis of the anticipated 
incidence of the factors, be equal to the level of support 
determined in accordance with this subtitle and subtitle 
C. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
(1) IN GENERAL.—The Secretary may establish 
loan rates for a crop for producers in individual 
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counties in a manner that results in the lowest loan 
rate being 95 percent of the national average loan 
rate, if those loan rates do not result in an increase 
in outlays. 
(2) PROHIBITION.—Adjustments under this 
subsection shall not result in an increase in the na-
tional average loan rate for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN
GENERAL.—The Secretary may make 
appropriate adjustments in the loan rate for cotton 
for differences in quality factors. 
(2) TYPES OF ADJUSTMENTS.—Loan rate ad-
justments under paragraph (1) may include— 
(A) the use of non-spot market price data, 
in addition to spot market price data, that 
would enhance the accuracy of the price infor-
mation used in determining quality adjustments 
under this subsection; 
(B) adjustments in the premiums or dis-
counts associated with upland cotton with a sta-
ple length of 33 or above due to micronaire 
with the goal of eliminating any unnecessary ar-
tificial splits in the calculations of the pre-
miums or discounts; and 
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(C) such other adjustments as the Sec-
retary determines appropriate, after consulta-
tions conducted in accordance with paragraph 
(3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton in-
dustry. 
(B) INAPPLICABILITY OF FEDERAL ADVI-
SORY COMMITTEE ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton qual-
ity adjustments implemented pursuant to this sub-
section and may make further adjustments to the 
administration of the loan program for upland cot-
ton, by revoking or revising any adjustment taken 
under paragraph (2). 
(e) RICE.—The Secretary shall not make adjust-
ments in the loan rates for long grain rice and medium 
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grain rice, except for differences in grade and quality (in-
cluding milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION
OF CURRENT PROGRAM
AND 
LOAN RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘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. 
(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 
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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-
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 hun-
dredweight of milk, by dairy producers for all milk 
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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. 
‘‘(4) CONSECUTIVE
2-MONTH
PERIOD.—The 
term ‘consecutive 2-month period’ refers to the 2- 
month period consisting of the months of January 
and February, March and April, May and June, 
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July and August, September and October, or No-
vember and December, 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 
operation. 
‘‘(6) MARGIN INSURANCE PROGRAM.—The term 
‘margin insurance program’ means the dairy pro-
ducer margin insurance program required by this 
section. 
‘‘(7) PARTICIPATING
DAIRY
PRODUCER.—The 
term ‘participating dairy producer’ means a dairy 
producer that registers under subsection (d)(2) to 
participate in the margin insurance program. 
‘‘(8) PRODUCTION
HISTORY.—The term ‘pro-
duction history’ means the quantity of annual milk 
marketings determined for a dairy producer under 
subsection (e)(1). 
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‘‘(9) UNITED
STATES.—The term ‘United 
States’, in a geographical sense, means the 50 
States. 
‘‘(b) CALCULATION OF AVERAGE FEED COST AND 
ACTUAL 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 agri-
cultural producers in the United States for 
corn, as reported in the monthly Agriculture 
Prices report by the Secretary. 
‘‘(B) The price of soybean meal for a 
month shall be the central Illinois price for soy-
bean meal, as reported in the Market News– 
Monthly Soybean Meal Price Report by the Sec-
retary. 
‘‘(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. 
‘‘(2) CALCULATION
OF
ACTUAL
DAIRY
PRO-
DUCER MARGINS.—The Secretary shall calculate the 
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actual dairy producer margin for each consecutive 2- 
month period by subtracting— 
‘‘(A) the average feed cost for that con-
secutive 2-month period, determined in accord-
ance 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 
PRODUCERS 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 interested dairy producers in the mar-
gin insurance program. 
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‘‘(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 
OPERATIONS.—If a dairy operation consists of 
more than 1 dairy producer, all of the dairy 
producers of the operation shall be treated as a 
single 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 pur-
chase 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 
in a dairy operation as of that date may reg-
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ister 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 sec-
tion, but that, after that date, establishes a new 
dairy operation, may register with the Secretary 
during the 180-day period beginning on the 
date on which the dairy operation first markets 
milk commercially to participate in the margin 
insurance 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 Reg-
ister notice) to participate in the margin insur-
ance program. 
‘‘(B) RETROACTIVE MARGIN INSURANCE.— 
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‘‘(5) RECONSTITUTION.—The Secretary shall 
ensure 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 
determine the production history of the dairy 
operation of each participating dairy producer 
in the margin insurance program. 
‘‘(B) CALCULATION.—Except as provided 
in subparagraphs (C) and (D), the production 
history 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 
registered, the production history of the partici-
pating producer shall be annually updated 
based on the highest annual milk marketings of 
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the dairy producer during any one of the 3 im-
mediately 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 
production history of the dairy producer under 
subparagraph (B) by extrapolating the actual 
milk marketings for the months that the dairy 
producer has been in operation to a yearly 
amount. 
‘‘(2) 
REQUIRED
INFORMATION.—A 
partici-
pating dairy producer shall provide all information 
that the Secretary may require in order to establish 
the production 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 
Secretary transfer to the purchaser the in-
terest of the seller in the production his-
tory of the dairy operation. 
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‘‘(ii) TRANSFER.—If the Secretary de-
termines that the seller has sold the entire 
dairy operation to the purchaser, the Sec-
retary shall approve the transfer and, 
thereafter, the seller shall have no interest 
in the production history of the sold dairy 
operation. 
‘‘(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 
Secretary transfer to the lessee for the du-
ration 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 en-
tire dairy operation to the lessee, the Sec-
retary shall approve the transfer and, 
thereafter, the lessor shall have no interest 
for the duration of the term of the lease in 
the production history of the leased dairy 
operation. 
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‘‘(C) COVERAGE LEVEL.—A purchaser or 
lessee to whom the Secretary transfers a pro-
duction history under this paragraph may not 
obtain a different level of margin insurance cov-
erage held by the seller or lessor from whom the 
transfer was obtained. 
‘‘(D) NEW
ENTRANTS.—The Secretary 
may not transfer the production history deter-
mined for a dairy producer described in sub-
section (d)(3)(B) to another person. 
‘‘(4) MOVEMENT AND TRANSFER OF PRODUC-
TION 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-
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est in the production history previously associ-
ated with the operation at that location. 
‘‘(f) MARGIN INSURANCE.— 
‘‘(1) IN GENERAL.—At the time of the registra-
tion of a dairy producer in the margin insurance 
program under subsection (d) and annually there-
after during the duration of the margin insurance 
program, an eligible dairy producer may purchase 
margin 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 
insurance shall elect a percentage of coverage, equal 
to not more than 80 percent nor less than 25 per-
cent, 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 
insurance shall pay an annual premium equal to 
the product obtained by multiplying— 
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‘‘(i) the percentage selected by the 
dairy producer under paragraph (3); 
‘‘(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 mar-
ketings included in the annual production his-
tory of a participating dairy operation, the pre-
mium 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-
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duction history of a participating dairy oper-
ation, the premium per hundredweight cor-
responding to each coverage level is as follows: 
‘‘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 
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years in accordance with 1 of the 
schedules described in subclauses (II) 
and (III). 
‘‘(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
PAY-
MENTS.—The participating dairy pro-
ducer 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.— 
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‘‘(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 
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 effect. 
‘‘(C) LEGAL OBLIGATION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clauses (ii) and (iii), a partici-
pating dairy producer that purchases mar-
gin insurance shall be legally obligated to 
pay the applicable premiums for the entire 
period of the margin insurance program 
(as provided in the payment schedule elect-
ed under paragraph (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 
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the margin insurance and shall not be re-
sponsible for any further premium pay-
ments. 
‘‘(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 
operation entirely and certifies under oath 
that the producer will not be actively en-
gaged 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 thresh-
old 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 cov-
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erage level threshold selected by the dairy pro-
ducer under paragraph (2). 
‘‘(B) AMOUNT OF PAYMENT.—The margin 
insurance payment for the dairy operation of a 
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-
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ducer 
under 
subsection 
(e)(1); by 
‘‘(BB) 6; and 
‘‘(bb) the actual quantity of 
milk marketed by the dairy oper-
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 pay-
ments 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. 
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‘‘(i) PROGRAM START DATE.—The Secretary shall 
conduct the margin insurance program beginning on Octo-
ber 1, 2013.’’. 
SEC. 1402. RULEMAKING. 
(a) PROCEDURE.—The promulgation of regulations 
for the initiation of the margin insurance program, and 
for 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 sec-
tion 553 of title 5, United States Code. 
(b) SPECIAL RULEMAKING REQUIREMENTS.— 
(1) INTERIM
RULES
AUTHORIZED.—With re-
spect to the margin insurance program, the Sec-
retary may promulgate interim rules under the au-
thority provided in subparagraph (B) of section 
553(b) of title 5, United States Code, if the Sec-
retary determines such interim rules to be needed. 
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100 
Any such interim rules for the margin insurance 
program shall be effective 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 
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 
Reform Act of 1996 (7 U.S.C. 7253(a)(2)) is amended 
by adding at the end the following new sentence: ‘‘Sub-
section (b)(2) does not apply to the authority of the Sec-
retary 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. 
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101 
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. 
(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 En-
ergy Act of 2008 (7 U.S.C. 8772(e)) is amended— 
(1) in paragraph (1), by striking ‘‘2012’’ and 
inserting ‘‘2018’’; and 
(2) in paragraph (2), by striking ‘‘2015’’ and 
inserting ‘‘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 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
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102 
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 agricul-
tural production of crops or livestock. 
(B) DESCRIPTION.—An individual or enti-
ty referred to in subparagraph (A) is— 
(i) a citizen of the United States; 
(ii) a resident alien; 
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103 
(iii) a partnership of citizens of the 
United States; or 
(iv) a corporation, limited liability cor-
poration, or other farm organizational 
structure organized under State law. 
(2) FARM-RAISED
FISH.—The term ‘‘farm- 
raised fish’’ means any aquatic species that is propa-
gated 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 Com-
modity Credit Corporation to make livestock indem-
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104 
nity payments to eligible producers on farms that 
have incurred 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 pro-
tected 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, dis-
ease, 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 pay-
ments made to an eligible producer under paragraph 
(1) are not made for the same livestock losses for 
which compensation is provided pursuant to section 
10407(d) of the Animal Health Protection Act (7 
U.S.C. 8306(d)). 
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(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) COVERED LIVESTOCK.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), the term ‘‘covered livestock’’ 
means livestock of an eligible livestock pro-
ducer that, during the 60 days prior to the 
beginning date of a qualifying drought or 
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-
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ceding the current production 
year. 
(ii) EXCLUSION.—The term ‘‘covered 
livestock’’ does not include livestock that 
were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
normal business operation of the eligible 
livestock producer, 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 defined 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 
lessee, or contract grower of covered 
livestock that provides the pastureland 
or grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
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(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
grazing land that is physically located 
in a county affected by drought; 
(III) certifies grazing loss; and 
(IV) meets all other eligibility re-
quirements established under this sub-
section. 
(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 
grazing period, in the absence of a drought or 
fire that diminishes the production of the graz-
ing land or pastureland. 
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108 
(E) NORMAL GRAZING PERIOD.—The term 
‘‘normal grazing period’’, with respect to a 
county, means the normal grazing period during 
the 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 Com-
modity Credit Corporation to provide compensation 
for losses to eligible livestock producers due to graz-
ing 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 cov-
ered livestock that occur on land that— 
(I) 
is 
native 
or 
improved 
pastureland with permanent vegeta-
tive cover; or 
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(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
(ii) EXCLUSIONS.—An eligible live-
stock producer may not receive assistance 
under this subsection for grazing losses 
that occur on land used for haying or graz-
ing under the conservation reserve pro-
gram 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 de-
termined under subparagraph (C); or 
(II) the monthly feed cost cal-
culated by using the normal carrying 
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110 
capacity of the eligible grazing land of 
the eligible livestock producer. 
(ii) PARTIAL COMPENSATION.—In the 
case of an eligible livestock producer that 
sold or otherwise disposed of covered live-
stock due to drought conditions in 1 or 
both of the 2 production years immediately 
preceding the current production year, as 
determined by the Secretary, the payment 
rate shall be 80 percent of the payment 
rate otherwise 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). 
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(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 de-
termined by the Secretary that rep-
resents 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 ob-
tained 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- 
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112 
month period immediately pre-
ceding that March 1; by 
(II) 56. 
(D) 
NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
(i) FSA COUNTY COMMITTEE DETER-
MINATIONS.— 
(I) IN GENERAL.—The Secretary 
shall determine the normal carrying 
capacity and normal grazing period 
for each type of grazing land or 
pastureland in the county served by 
the applicable committee. 
(II) CHANGES.—No change to 
the normal carrying capacity or nor-
mal grazing period established for a 
county under subclause (I) shall be 
made unless the change is requested 
by the appropriate State and county 
Farm Service Agency committees. 
(ii) DROUGHT INTENSITY.— 
(I) D2.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
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the U.S. Drought Monitor as having a 
D2 (severe drought) intensity in any 
area of the county for at least 8 con-
secutive weeks during the normal 
grazing period for the county, as de-
termined by the Secretary, shall be el-
igible to receive assistance under this 
paragraph in an amount equal to 1 
monthly payment using the monthly 
payment rate determined under sub-
paragraph (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) in-
tensity in any area of the county at 
any time during the normal grazing 
period for the county, as determined 
by the Secretary, shall be eligible to 
receive assistance under this para-
graph— 
(aa) in an amount equal to 
3 monthly payments using the 
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114 
monthly payment rate deter-
mined 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) inten-
sity in any area of the county at 
any time during the normal graz-
ing period, in an amount equal to 
4 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B); 
or 
(cc) if the county is rated as 
having 
a 
D4 
(exceptional 
drought) intensity in any area of 
the county for at least 4 weeks 
during the normal grazing pe-
riod, in an amount equal to 5 
monthly 
payments 
using 
the 
monthly rate determined under 
subparagraph (B). 
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115 
(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
(A) IN
GENERAL.—An eligible livestock 
producer may receive assistance under this 
paragraph 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 
grazing the normal permitted livestock on 
the managed rangeland due to a fire. 
(B) PAYMENT RATE.—The payment rate 
for assistance under this paragraph shall be 
equal to 50 percent of the monthly feed cost for 
the total number of livestock covered by the 
Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
(C) PAYMENT DURATION.— 
(i) IN
GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
(I) beginning on the date on 
which the Federal agency excludes the 
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116 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
(II) ending on the last day of the 
Federal lease of the eligible livestock 
producer. 
(ii) LIMITATION.—An eligible livestock 
producer may only receive assistance under 
this paragraph for losses that occur on not 
more than 180 days per year. 
(5) NO DUPLICATIVE PAYMENTS.—An eligible 
livestock producer may elect to receive assistance for 
grazing or pasture feed losses due to drought condi-
tions under paragraph (3) or fire under paragraph 
(4), but not both for the same loss, as determined 
by the Secretary. 
(d) EMERGENCY
ASSISTANCE
FOR
LIVESTOCK, 
HONEY BEES, AND FARM-RAISED FISH.— 
(1) IN GENERAL.—For fiscal year 2012 and 
each succeeding fiscal year, the Secretary shall use 
not more than $20,000,000 of the funds of the Com-
modity Credit Corporation to provide emergency re-
lief to eligible producers of livestock, honey bees, and 
farm-raised fish to aid in the reduction of losses due 
to disease (including cattle tick fever), adverse 
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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. 
(e) TREE ASSISTANCE PROGRAM.— 
(1) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE
ORCHARDIST.—The term 
‘‘eligible orchardist’’ means a person that pro-
duces 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-
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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 
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 assist-
ance under subparagraph (A) only if the tree 
mortality of the eligible orchardist or nursery 
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119 
tree grower, as a result of damaging weather or 
related condition, exceeds 15 percent (adjusted 
for normal mortality). 
(3) ASSISTANCE.—Subject to paragraph (4), 
the assistance provided by the Secretary to eligible 
orchardists and nursery tree growers for losses de-
scribed in paragraph (2) shall consist of— 
(A)(i) reimbursement of 65 percent of the 
cost of replanting trees lost due to a natural 
disaster, as determined by the Secretary, in ex-
cess of 15 percent mortality (adjusted for nor-
mal mortality); or 
(ii) at the option of the Secretary, suffi-
cient seedlings to reestablish a stand; and 
(B) reimbursement of 50 percent of the 
cost of pruning, removal, and other costs in-
curred by an eligible orchardist or nursery tree 
grower to salvage existing trees or, in the case 
of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality 
due to a natural disaster, as determined by the 
Secretary, in excess of 15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality). 
(4) LIMITATIONS ON ASSISTANCE.— 
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(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 Se-
curity 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 
person 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 
section 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 
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121 
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 assistance 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 sec-
tion. 
(2) DROUGHT.—The term ‘‘drought’’ means a 
natural disaster that is caused by a deficiency in 
precipitation— 
(A) that may lead to a deficiency in sur-
face 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 
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(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 re-
spect 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 designee. 
(5) 
MITIGATION.—The 
term 
‘‘mitigation’’ 
means a short- or long-term action, program, or pol-
icy that 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 sev-
eral 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 
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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 reservoir, 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 ‘‘water-
shed group’’ means a group of individuals, formally 
recognized by the appropriate State or States, who 
represent the broad scope of relevant interests with-
in a watershed and who work together in a collabo-
rative manner to jointly plan the management of the 
natural resources contained within the watershed. 
(b) EFFECT OF SECTION.—This section does not af-
fect— 
(1) the authority of a State to allocate quan-
tities of water under the jurisdiction of the State; or 
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(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); 
(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 des-
ignee of the Director); 
(vi) the Administrator of the Environ-
mental Protection Agency (or the designee 
of the Administrator); 
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(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 
Nation; 
(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 
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 ap-
pointment of each member of the Council shall 
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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 
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 
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127 
number may hold hearings or conduct other busi-
ness. 
(6) COUNCIL LEADERSHIP.— 
(A) IN GENERAL.—There shall be a Fed-
eral 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 
members 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 
comprehensive National Drought Policy Action 
Plan that— 
(i)(I) delineates and integrates re-
sponsibilities for activities relating to 
drought (including drought preparedness, 
mitigation, research, risk management, 
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128 
training, and emergency relief) among 
Federal agencies; and 
(II) ensures that those activities are 
coordinated with the activities of the 
States, local governments, Indian tribes, 
and neighboring 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 pro-
grams in existence on the date of enact-
ment of this Act; 
(B) evaluate Federal drought-related pro-
grams in existence on the date of enactment of 
this Act and make recommendations to Con-
gress and the President on means of elimi-
nating— 
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(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 Presi-
dent, Congress, and appropriate Federal agen-
cies 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; 
(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; 
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(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 envi-
ronment; 
(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 
(G) establish operating procedures for the 
Council. 
(2) CONSULTATION.—In carrying out this sub-
section, the Council shall consult with groups af-
fected by drought emergencies. 
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131 
(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 
Council shall submit to Congress a report 
on the activities carried out under this sec-
tion. 
(ii) INCLUSIONS.— 
(I) IN
GENERAL.—The annual 
report shall include a summary of 
drought preparedness plans. 
(II) INITIAL REPORT.—The ini-
tial report submitted under subpara-
graph (A) shall include any rec-
ommendations 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 
(ii) whether the Council should con-
tinue. 
(e) POWERS OF THE COUNCIL.— 
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132 
(1) HEARINGS.—The Council may hold hear-
ings, meet and act at any time and place, take any 
testimony and receive any evidence that the Council 
considers advisable to carry out this section. 
(2) INFORMATION FROM FEDERAL AGENCIES.— 
(A) IN GENERAL.—The Council may ob-
tain directly from any Federal agency any in-
formation that the Council considers necessary 
to carry out this section. 
(B) PROVISION OF INFORMATION.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), on request of the Secretary 
or the non-Federal co-chair of the Council, 
the head of a Federal agency may provide 
information to the Council. 
(ii) LIMITATION.—The head of a Fed-
eral agency shall not provide any informa-
tion to the Council that the Federal agency 
head determines the disclosure of which 
may cause harm to national security inter-
ests. 
(3) POSTAL SERVICES.—The Council may use 
the United States mail in the same manner and 
under the same conditions as other agencies of the 
Federal Government. 
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133 
(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 mem-
ber of the Council who is not an officer or em-
ployee 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 em-
ployee of the Federal Government. 
(2) TRAVEL
EXPENSES.—A member of the 
Council shall be allowed travel expenses at rates au-
thorized for an employee of an agency under sub-
chapter 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 Council. 
(g) TERMINATION OF COUNCIL.—The Council shall 
terminate at the end of the eighth fiscal year beginning 
on or after the date of the enactment of this Act. 
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134 
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 deter-
mination made by the Secretary under this title shall be 
final and conclusive. 
(c) REGULATIONS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided 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 implement this title and the amendments made by 
this title. 
(2) PROCEDURE.—The promulgation of the reg-
ulations and administration of this title and the 
amendments made by this title and sections 10003 
and 10016 of this Act shall be made— 
(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 
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135 
such section if the Secretary determines such 
interim rules to be needed and final rules, with 
an opportunity for notice and comment, no 
later than 21 months after the date of the en-
actment 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 
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. 
(d) ADJUSTMENT AUTHORITY RELATED TO TRADE 
AGREEMENTS COMPLIANCE.— 
(1) 
REQUIRED
DETERMINATION; 
ADJUST-
MENT.—If the Secretary determines that expendi-
tures under this title that are subject to the total al-
lowable domestic support levels under the Uruguay 
Round Agreements (as defined in section 2 of the 
Uruguay Round Agreements Act (19 U.S.C. 3501)) 
will exceed the allowable levels for any applicable re-
porting period, the Secretary shall, to the maximum 
extent practicable, make adjustments in the amount 
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136 
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 
Committee on Agriculture, Nutrition, and Forestry 
of the Senate a report describing the determination 
made under that paragraph and the extent of the 
adjustment 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.— 
Section 377 of the Agricultural Adjustment Act of 
1938 (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 
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137 
of the enactment 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 
provisions 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 Agricul-
tural Adjustment Act of 1938, as amended’’, approved 
May 26, 1941 (7 U.S.C. 1330, 1340), is repealed. 
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138 
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 sec-
tion 1001A) is eligible to receive a pay-
ment under a provision of law referred to 
in subsection (b), (c), or (d); 
‘‘(ii) a corporation, joint stock com-
pany, association, limited partnership, lim-
ited liability company, limited liability 
partnership, charitable organization, es-
tate, irrevocable trust, grantor of a rev-
ocable trust, or other similar entity (as de-
termined by the Secretary); and 
‘‘(iii) an organization that is partici-
pating in a farming operation as a partner 
in a general partnership or as a participant 
in a joint venture. 
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‘‘(B) EXCLUSION.—The term ‘legal entity’ 
does not include a general partnership or joint 
venture.’’; 
(2) by striking subsections (b) through (d) and 
inserting the following: 
‘‘(b) LIMITATION ON PAYMENTS FOR COVERED COM-
MODITIES AND PEANUTS.—The total amount of payments 
received, directly or indirectly, by a person or legal entity 
for any crop year for 1 or more covered commodities and 
peanuts under title I of the Federal Agriculture Reform 
and Risk Management Act of 2013 may not exceed 
$125,000, of which— 
‘‘(1) not more than $75,000 may consist of 
marketing loan gains and loan deficiency payments 
under subtitle B of title I of the Federal Agriculture 
Reform and Risk Management Act of 2013; and 
‘‘(2) not more than $50,000 may consist of any 
other payments made for covered commodities and 
peanuts under title I of the Federal Agriculture Re-
form and Risk Management Act of 2013. 
‘‘(c) SPOUSAL EQUITY.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(b), except as provided in paragraph (2), if a person 
and the spouse of the person are covered by para-
graph (2) and receive, directly or indirectly, any pay-
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140 
ment or gain covered by this section, the total 
amount of payments or gains (as applicable) covered 
by this section that the person and spouse may 
jointly receive during any crop year may not exceed 
an amount equal to twice the applicable dollar 
amounts specified in subsection (b). 
‘‘(2) EXCEPTIONS.— 
‘‘(A) SEPARATE FARMING OPERATIONS.— 
In the case of a married couple in which each 
spouse, before the marriage, was separately en-
gaged in an unrelated farming operation, each 
spouse shall be treated as a separate person 
with respect to a farming operation brought 
into the marriage by a spouse, subject to the 
condition that the farming operation shall re-
main a separate farming operation, as deter-
mined by the Secretary. 
‘‘(B) ELECTION
TO
RECEIVE
SEPARATE 
PAYMENTS.—A married couple may elect to re-
ceive payments separately in the name of each 
spouse if the total amount of payments and 
benefits described in subsection (b) that the 
married couple receives, directly or indirectly, 
does not exceed an amount equal to twice the 
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141 
applicable dollar amounts specified in those 
subsections.’’; 
(3) in paragraph (3)(B) of subsection (f), by 
adding at the end the following: 
‘‘(iii) IRREVOCABLE TRUSTS.—In pro-
mulgating regulations to define the term 
‘legal entity’ as the term applies to irrev-
ocable trusts, the Secretary shall ensure 
that irrevocable trusts are legitimate enti-
ties that have not been created for the pur-
pose of avoiding a payment limitation.’’; 
and 
(4) in subsection (h), in the second sentence, by 
striking ‘‘or other entity’’ and inserting ‘‘or legal en-
tity’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) is amended— 
(A) in subsection (e), by striking ‘‘sub-
sections (b) and (c)’’ each place it appears in 
paragraphs (1) and (3)(B) and inserting ‘‘sub-
section (b)’’; 
(B) in subsection (f)— 
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(i) in paragraph (2), by striking 
‘‘Subsections (b) and (c)’’ and inserting 
‘‘Subsection (b)’’; 
(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)— 
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143 
(I) 
by 
striking 
‘‘subsection 
(f)(6)(A)’’ and inserting ‘‘subsection 
(e)(6)(A)’’; and 
(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), re-
spectively. 
(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 in-
serting ‘‘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 ‘‘sub-
sections (b) and (c) of section 1001’’ and inserting 
‘‘section 1001(b)’’. 
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144 
(c) APPLICATION.—The amendments made by this 
section shall apply beginning with the 2014 crop year. 
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 man-
agement’’ each place it appears in subpara-
graphs (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;’’; 
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145 
(ii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(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 per-
son’’ and inserting the following: 
‘‘(5) CUSTOM FARMING SERVICES.—A person’’; 
(ii) by inserting ‘‘under usual and 
customary terms’’ after ‘‘services’’; and 
(iii) by striking subparagraph (B); 
and 
(D) by adding at the end the following: 
‘‘(7) FARM MANAGERS.—A person who other-
wise meets the requirements of this subsection other 
than (b)(2)(A)(i)(II) shall be considered to be ac-
tively engaged in farming, as determined by the Sec-
retary, with respect to the farming operation, includ-
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146 
ing a farming operation that is a sole proprietorship, 
a legal entity such as a joint venture or general 
partnership, or a legal entity such as a corporation 
or limited partnership, if the person— 
‘‘(A) makes a significant contribution of 
management to the farming operation necessary 
for the farming operation, taking into ac-
count— 
‘‘(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 en-
gaged in farming under subsection (b)(2) or as 
part of a special class under this subsection, 
does not collectively receive, directly or indi-
rectly, an amount equal to more than the appli-
cable limits under section 1001(b); 
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147 
‘‘(C) does not use the management con-
tribution under this paragraph to qualify as ac-
tively engaged in more than 1 farming oper-
ation; and 
‘‘(D) manages a farm operation that does 
not substantially share equipment, labor, or 
management with persons or legal entities that 
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 ‘‘LIM-
ITATIONS’’ 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 para-
graph (2) during a crop, fiscal, or program year, as 
appropriate, if the average adjusted gross income of 
the person or legal entity exceeds $950,000. 
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148 
‘‘(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 In-
vestment Act of 2002, title II of the Food, Con-
servation, and Energy Act of 2008, title XII of the 
Food Security 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 fol-
lows: 
‘‘(1) AVERAGE ADJUSTED GROSS INCOME.—In 
this section, the term ‘average adjusted gross in-
come’, with respect to a person or legal entity, 
means the average of the adjusted gross income or 
comparable measure of the person or legal entity 
over the 3 taxable years preceding the most imme-
diately preceding complete taxable year, as deter-
mined by the Secretary.’’. 
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149 
(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)— 
(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 ‘‘, aver-
age adjusted gross farm income, and average 
adjusted gross nonfarm income’’ both places it 
appears; and 
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150 
(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 non-
farm income’’. 
(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 amended by inserting before the period at the end the 
following: ‘‘or title I of the Federal Agriculture Reform 
and Risk Management Act of 2013’’. 
(g) TRANSITION.—Section 1001D of the Food Secu-
rity 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 appropriate, for each program described in para-
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151 
graphs (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 En-
ergy Act of 2008 (7 U.S.C. 8792(d)) is amended by strik-
ing ‘‘each of fiscal years 2009 through 2012’’ and insert-
ing ‘‘fiscal year 2009 and each succeeding fiscal year’’. 
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 En-
ergy 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 
directly or indirectly, with the Commissioner of Social Se-
curity to determined if the individuals are alive. 
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152 
(b) PRECLUSION.—The Secretary shall preclude the 
issuance of payments to, and on behalf of, deceased indi-
viduals 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.— 
(1) AMENDMENT.—Section 1603(g) of the 
Food, Conservation, and Energy Act of 2008 (Public 
Law 110–246; 122 Stat. 1739) is amended in para-
graphs (2) through (6) and the amendments made 
by those paragraphs by striking ‘‘1703(a)’’ each 
place it appears 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 Pub-
lic Law 108–7 (7 U.S.C. 7911 note; 117 Stat. 48) is 
amended— 
(1) in subsection (a)— 
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153 
(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 
inserting ‘‘such subtitle’’; and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(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 as-
signment 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, 
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154 
directly or indirectly, to individuals and entities under ti-
tles 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 docu-
ment on behalf of the applicant or any other individual, 
entity, general partnership, or joint venture, or the docu-
ments relied upon were determined inadequate or invalid, 
unless the person signing the program document know-
ingly and willfully falsified the evidence of signature au-
thority or a signature. 
(b) AFFIRMATION.— 
(1) IN GENERAL.—Nothing in this section pro-
hibits the Secretary from asking a proper party to 
affirm any document that otherwise would be consid-
ered approved under subsection (a). 
(2) NO
RETROACTIVE
EFFECT.—A denial of 
benefits based on a lack of affirmation under para-
graph (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 producers— 
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155 
(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-
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 
Service; and 
(3) take advantage of new technologies to en-
hance efficiency and effectiveness of program deliv-
ery to producers. 
(b) MAINTENANCE OF BASE ACRES AND PAYMENT 
YIELDS.— 
(1) IN GENERAL.—The Secretary shall main-
tain, for each covered commodity and upland cotton, 
base acres and payment yields on a farm established 
under— 
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(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 
(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. 
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157 
(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 
Department, and any officer or employee of another Fed-
eral agency shall not disclose— 
(1) information submitted by a producer or 
owner of agricultural land to the Federal Govern-
ment 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 
agencies. 
(b) EXCEPTIONS.—Information described in sub-
section (a) may be disclosed if— 
(1) the information is required to be made pub-
licly available under any other provision of Federal 
law; 
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158 
(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 compli-
ance and law enforcement. 
(c) NOTICE OF DISCLOSURE.—Any disclosure of in-
formation pursuant to an exception provided in subsection 
(b) 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. 
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159 
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 Secu-
rity Act of 1985 (16 U.S.C. 3831(a)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’. 
(b) ELIGIBLE LAND.—Section 1231(b) of the Food 
Security 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 enact-
ment of the Federal Agriculture Reform and Risk 
Management Act of 2013’’; 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2); 
(3) by inserting before paragraph (4) the fol-
lowing new paragraph: 
‘‘(3) grasslands that— 
‘‘(A) contain forbs or shrubland (including 
improved rangeland and pastureland) for which 
grazing is the predominant use; 
‘‘(B) are located in an area historically 
dominated by grasslands; and 
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160 
‘‘(C) could provide habitat for animal and 
plant populations of significant ecological value 
if the land is retained in its current use or re-
stored to a natural condition;’’; 
(4) 
in 
paragraph 
(4)(C), 
by 
striking 
‘‘filterstrips devoted to trees or shrubs’’ and insert-
ing ‘‘filterstrips or riparian buffers devoted to trees, 
shrubs, or grasses’’; and 
(5) by striking paragraph (5) and inserting the 
following new paragraph: 
‘‘(5) the portion of land in a field not enrolled 
in the conservation reserve in a case in which— 
‘‘(A) more than 50 percent of the land in 
the field is enrolled as a buffer or filterstrip, or 
more than 75 percent of the land in the field 
is enrolled as a conservation practice other than 
as a buffer or filterstrip; and 
‘‘(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.’’. 
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161 
(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 
Secretary 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. 
‘‘(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 pro-
gram at any one time during the 2014 through 
2018 fiscal years. 
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162 
‘‘(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 en-
rolling acres under subparagraph (A), the Sec-
retary shall make the program available to own-
ers or operators of eligible land on a continuous 
enrollment basis with one or more ranking peri-
ods.’’. 
(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 following 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 entered into under this subchapter, the 
owner or operator of the land may, within the limita-
tions prescribed under paragraph (1), specify the du-
ration 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— 
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163 
(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 con-
tains actual and significant adverse water quality or 
habitat impacts related to agricultural production 
activities.’’. 
SEC. 2002. FARMABLE WETLAND PROGRAM. 
(a) EXTENSION.—Section 1231B(a)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amend-
ed— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘a program’’ and inserting ‘‘a 
farmable wetland program’’. 
(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 
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164 
crop agriculture drainage system’’ and inserting ‘‘surface 
and subsurface flow from row crop agricultural produc-
tion’’. 
(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 WET-
LAND 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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165 
‘‘(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 con-
servation measures and practices set forth in the 
contract for which the Secretary determines that 
cost sharing is appropriate and in the public inter-
est; 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— 
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166 
‘‘(A) the conversion of highly erodible crop-
land or other eligible lands normally devoted to 
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 per-
manently; 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 
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167 
in the annual rental rate for the acres covered by 
the authorized activity— 
‘‘(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 stock-
ing rates for the land that are suitable for 
continued routine grazing; and 
‘‘(ii) shall identify the periods during 
which routine grazing may be conducted, 
such that the frequency is not more than 
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once every two years, taking into consider-
ation regional differences such as— 
‘‘(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 vege-
tative buffer practices incidental to agricultural pro-
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169 
duction on lands adjacent to the buffer such that the 
permitted use does not destroy the permanent vege-
tative cover. 
‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLANDS.— 
For eligible land described in section 1231(b)(3), the Sec-
retary shall permit the following activities: 
‘‘(1) Common grazing practices, including 
maintenance and necessary cultural practices, on the 
land in a manner that is consistent with maintaining 
the viability of grassland, forb, and shrub species ap-
propriate to that locality. 
‘‘(2) Haying, mowing, or harvesting for seed 
production, subject to appropriate restrictions dur-
ing 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 
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improvements that facilitate maintaining protection 
of enrolled land after expiration of the contract. 
‘‘(2) CONSERVATION
PLAN.—The Secretary 
shall require an owner or operator carrying out the 
activities described in paragraph (1) to develop and 
implement 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 
WILDLIFE CORRIDORS.—Section 1234(b)(3)(A) of the 
Food Security 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 
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(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) METHODS OF DETERMINATION.— 
‘‘(A) IN GENERAL.—The amounts payable 
to owners or operators in the form of rental 
payments 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 Sec-
retary 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 pro-
vided in this section, payments under this sub-
chapter shall be made in cash in such amount and 
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172 
on such time schedule as is agreed on and specified 
in the contract. 
‘‘(2) ADVANCE
PAYMENT.—Payments under 
this subchapter may be made in advance of deter-
mination 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 OPER-
ATOR.—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 in-
serting ‘‘During fiscal year 2014, the Sec-
retary’’; and 
(B) by striking ‘‘before January 1, 1995,’’; 
(2) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
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173 
‘‘(C) Land devoted to hardwood trees. 
‘‘(D) Wildlife habitat, duck nesting habi-
tat, pollinator habitat, upland bird habitat buff-
er, wildlife food plots, State acres for wildlife 
enhancement, shallow water areas for wildlife, 
and rare and declining habitat. 
‘‘(E) Farmable wetland and restored wet-
land. 
‘‘(F) Land that contains diversions, ero-
sion control structures, flood control structures, 
contour grass strips, living snow fences, salinity 
reducing 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 
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notice required under paragraph (1)(C)’’ and insert-
ing ‘‘upon approval by the Secretary’’. 
(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 
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(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)’’. 
(c) FINAL YEAR CONTRACT.—Section 1235 of the 
Food Security Act of 1985 (16 U.S.C. 3835) is amended 
by adding 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 
stewardship program; and 
‘‘(2) the activity required under the conserva-
tion stewardship program pursuant to such enroll-
ment is consistent with this subchapter. 
‘‘(h) LAND ENROLLED
IN AGRICULTURAL CON-
SERVATION 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.’’. 
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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 
subtitle shall take effect on October 1, 2013, except the 
amendment made by section 2001(d), which shall take ef-
fect 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 
entered into by the Secretary of Agriculture 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.) before October 1, 2013, or any payments re-
quired 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 
Security Act of 1985 (16 U.S.C. 3831 et seq.) be-
fore October 1, 2013, to update the contract to re-
flect the activities and uses of land under contract 
permitted under the terms and conditions of section 
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1233(b) of that Act (as amended by section 2004), 
as determined appropriate by the Secretary. 
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 Secu-
rity 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 
‘agricultural 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 
contract under the program; and 
‘‘(B) operated with equipment, labor, man-
agement, and production or cultivation prac-
tices that are substantially separate from other 
agricultural operations, as determined by the 
Secretary. 
‘‘(2) CONSERVATION ACTIVITIES.— 
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‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
ment systems, as determined by the Sec-
retary; 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 ac-
tivities. 
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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 
described 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 re-
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source 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 encour-
age producers to address priority resource concerns in a 
comprehensive 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 CONSERVA-
TION PROGRAMS.—Subject to paragraph (2), the fol-
lowing land (even if covered by the definition of eli-
gible land) is not eligible for enrollment in the pro-
gram: 
‘‘(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. 
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‘‘(C) Land enrolled in the conservation se-
curity program. 
‘‘(2) CONVERSION
TO
CROPLAND.—Eligible 
land used for crop production after October 1, 2013, 
that had not been planted, considered to be planted, 
or devoted to crop production for at least 4 of the 
6 years preceding that date shall not be the basis for 
any payment 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 de-
termined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eli-
gible to participate in the conservation stewardship pro-
gram, a producer shall submit to the Secretary a contract 
offer for the agricultural operation that— 
‘‘(1) demonstrates to the satisfaction of the 
Secretary that the producer, at the time of the con-
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183 
tract offer, meets or exceeds the stewardship thresh-
old for at least 2 priority resource concerns; and 
‘‘(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 evalu-
ating 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; 
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‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet 
or 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 
anticipated conservation benefits from the con-
tract 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 Secretary determines are necessary to ensure 
that national, State, and local priority resource con-
cerns are effectively addressed. 
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‘‘(c) ENTERING INTO CONTRACTS.—After a deter-
mination that a producer is eligible for the program under 
subsection (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conserva-
tion 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 con-
tract 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 
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186 
stewardship plan and any other require-
ments of the program; and 
‘‘(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 eligi-
ble 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 
condition, as determined by the Secretary; 
‘‘(E) include provisions requiring that 
upon the violation of a term or condition of the 
contract at any time the producer has control 
of the land— 
‘‘(i) if the Secretary determines that 
the violation warrants termination of the 
contract— 
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‘‘(I) the producer shall forfeit all 
rights to receive payments under the 
contract; and 
‘‘(II) the producer shall refund 
all or a portion of the payments re-
ceived by the producer under the con-
tract, including any interest on the 
payments, as determined by the Sec-
retary; or 
‘‘(ii) if the Secretary determines that 
the violation does not warrant termination 
of the contract, the producer shall refund 
or accept adjustments to the payments 
provided to the producer, as the Secretary 
determines to be appropriate; 
‘‘(F) include provisions in accordance with 
paragraphs (3) and (4) of this section; and 
‘‘(G) include any additional provisions the 
Secretary determines are necessary to carry out 
the program. 
‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT 
TO A CONTRACT.— 
‘‘(A) IN GENERAL.—At the time of appli-
cation, a producer shall have control of the eli-
gible land to be enrolled in the program. Except 
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as provided in subparagraph (B), a change in 
the interest of a producer in eligible land cov-
ered by a contract under the program shall re-
sult in the termination of the contract with re-
gard to that land. 
‘‘(B) 
TRANSFER
OF
DUTIES
AND 
RIGHTS.—Subparagraph (A) shall not apply 
if— 
‘‘(i) within a reasonable period of time 
(as determined by the Secretary) after the 
date of the change in the interest in eligi-
ble land covered by a contract under the 
program, the transferee of the land pro-
vides written notice to the Secretary that 
all duties and rights under the contract 
have been transferred to, and assumed by, 
the transferee for the portion of the land 
transferred; 
‘‘(ii) the transferee meets the eligi-
bility requirements of the program; and 
‘‘(iii) the Secretary approves the 
transfer of all duties and rights under the 
contract. 
‘‘(4) MODIFICATION
AND
TERMINATION
OF 
CONTRACTS.— 
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‘‘(A) VOLUNTARY MODIFICATION OR TER-
MINATION.—The Secretary may modify or ter-
minate a contract with a producer if— 
‘‘(i) the producer agrees to the modi-
fication or termination; and 
‘‘(ii) the Secretary determines that 
the modification or termination is in the 
public interest. 
‘‘(B) INVOLUNTARY
TERMINATION.—The 
Secretary may terminate a contract if the Sec-
retary determines that the producer violated the 
contract. 
‘‘(5) REPAYMENT.—If a contract is terminated, 
the Secretary may, consistent with the purposes of 
the program— 
‘‘(A) allow the producer to retain payments 
already received under the contract; or 
‘‘(B) require repayment, in whole or in 
part, of payments received and assess liquidated 
damages. 
‘‘(e) CONTRACT RENEWAL.—At the end of the initial 
5-year contract period, the Secretary may allow the pro-
ducer to renew the contract for 1 additional 5-year period 
if the producer— 
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‘‘(1) demonstrates compliance with the terms of 
the initial contract; 
‘‘(2) agrees to adopt and continue to integrate 
conservation activities across the entire agricultural 
operation, as determined by the Secretary; and 
‘‘(3) agrees, by the end of the contract period— 
‘‘(A) to meet the stewardship threshold of 
at least two additional priority resource con-
cerns on the agricultural operation; or 
‘‘(B) to exceed the stewardship threshold 
of two existing priority resource concerns that 
are specified by the Secretary in the initial con-
tract. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation 
goals of a contract under the conservation stewardship 
program, the Secretary shall— 
‘‘(1) make the program available to eligible pro-
ducers on a continuous enrollment basis with 1 or 
more ranking periods, one of which shall occur in 
the first quarter of each fiscal year; 
‘‘(2) identify not less than 5 priority resource 
concerns in a particular watershed or other appro-
priate region or area within a State; and 
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‘‘(3) establish a science-based stewardship 
threshold for each priority resource concern identi-
fied under paragraph (2). 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall 
allocate acres to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eli-
gible land to the total acreage of eligible land in all 
States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the con-
servation needs associated with agricultural 
production in each State; 
‘‘(B) the degree to which implementation 
of the program in the State is, or will be, effec-
tive in helping producers address those needs; 
and 
‘‘(C) other considerations to achieve equi-
table geographic distribution of funds, as deter-
mined by the Secretary. 
‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2013, and ending on 
September 30, 2021, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
8,695,000 acres for each fiscal year; and 
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‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance, 
and any other expenses associated with enrollment 
or participation in the program. 
‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide annual payments under the pro-
gram to compensate the producer for— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the ag-
ricultural operation of the producer at the time 
the contract offer is accepted by the Secretary. 
‘‘(2) PAYMENT AMOUNT.—The amount of the 
conservation stewardship annual payment shall be 
determined by the Secretary and based, to the max-
imum extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer asso-
ciated with planning, design, materials, installa-
tion, labor, management, maintenance, or train-
ing. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected conservation benefits. 
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‘‘(D) The extent to which priority resource 
concerns will be addressed through the installa-
tion and adoption of conservation activities on 
the agricultural operation. 
‘‘(E) The level of stewardship in place at 
the time of application and maintained over the 
term of the contract. 
‘‘(F) The degree to which the conservation 
activities will be integrated across the entire ag-
ricultural operation for all applicable priority 
resource concerns over the term of the contract. 
‘‘(G) Such other factors as determined ap-
propriate by the Secretary. 
‘‘(3) EXCLUSIONS.—A payment to a producer 
under this subsection shall not be provided for— 
‘‘(A) the design, construction, or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the 
producer. 
‘‘(4) DELIVERY
OF
PAYMENTS.—In making 
payments under this subsection, the Secretary shall, 
to the extent practicable— 
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‘‘(A) prorate conservation performance 
over the term of the contract so as to accommo-
date, to the extent practicable, producers earn-
ing equal annual payments in each fiscal year; 
and 
‘‘(B) make payments as soon as prac-
ticable after October 1 of each fiscal year for 
activities carried out in the previous fiscal year. 
‘‘(e) SUPPLEMENTAL PAYMENTS
FOR RESOURCE- 
CONSERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide additional payments to pro-
ducers that, in participating in the program, agree 
to adopt or improve resource-conserving crop rota-
tions to achieve beneficial crop rotations as appro-
priate for the eligible land of the producers. 
‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec-
retary shall determine whether a resource-conserving 
crop rotation is a beneficial crop rotation eligible for 
additional payments under paragraph (1) based on 
whether the resource-conserving crop rotation is de-
signed to provide natural resource conservation and 
production benefits. 
‘‘(3) ELIGIBILITY.—To be eligible to receive a 
payment described in paragraph (1), a producer 
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shall agree to adopt and maintain beneficial re-
source-conserving crop rotations for the term of the 
contract. 
‘‘(4) 
RESOURCE-CONSERVING
CROP
ROTA-
TION.—In this subsection, the term ‘resource-con-
serving crop rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource-con-
serving crop (as defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion 
of soil moisture or otherwise reduces the need 
for irrigation. 
‘‘(f) PAYMENT LIMITATIONS.—A person or legal enti-
ty may not receive, directly or indirectly, payments under 
the program that, in the aggregate, exceed $200,000 
under all contracts entered into during fiscal years 2014 
through 2018, excluding funding arrangements with In-
dian tribes, regardless of the number of contracts entered 
into under the program by the person or legal entity. 
‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
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propriate to enable specialty crop and organic producers 
to participate in the program. 
‘‘(h) COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—The Secretary shall establish a transparent 
means by which producers may initiate organic certifi-
cation under the Organic Foods Production Act of 1990 
(7 U.S.C. 6501 et seq.) while participating in a contract 
under the program. 
‘‘(i) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) prescribe such other rules as the Secretary 
determines to be necessary to ensure a fair and rea-
sonable application of the limitations established 
under subsection (f); and 
‘‘(2) otherwise enable the Secretary to carry out 
the program.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2013. 
(c) EFFECT ON EXISTING CONTRACTS.— 
(1) IN
GENERAL.—The amendment made by 
this section shall not affect the validity or terms of 
any contract entered into by the Secretary of Agri-
culture under 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.) before October 1, 2013, or 
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any payments required to be made in connection 
with the contract. 
(2) CONSERVATION STEWARDSHIP PROGRAM.— 
Funds made available under section 1241(a)(4) of 
the Food Security Act of 1985 (16 U.S.C. 
3841(a)(4)) (as amended by section 2601(a) of this 
title) may be used to administer and make payments 
to program participants that enrolled into contracts 
during any of fiscal years 2009 through 2013. 
Subtitle C—Environmental Quality 
Incentives Program 
SEC. 2201. PURPOSES. 
Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and, in such subparagraph, 
by inserting ‘‘and’’ after the semicolon; and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) developing and improving wildlife 
habitat; and’’; 
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(2) in paragraph (4), by striking ‘‘; and’’ and 
inserting a period; and 
(3) by striking paragraph (5). 
SEC. 2202. ESTABLISHMENT AND ADMINISTRATION. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended— 
(1) in subsection (a), by striking ‘‘2014’’ and 
inserting ‘‘2018’’; 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following new paragraph: 
‘‘(2) TERM.—A contract under the program 
shall have a term that does not exceed 10 years.’’; 
(3) in subsection (d)(4)— 
(A) in subparagraph (A), in the matter 
preceding clause (i), by inserting ‘‘, veteran 
farmer or rancher (as defined in section 
2501(e) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(e))),’’ 
before ‘‘or a beginning farmer or rancher’’; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B) ADVANCE PAYMENTS.— 
‘‘(i) IN GENERAL.—Not more than 50 
percent of the amount determined under 
subparagraph (A) may be provided in ad-
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vance for the purpose of purchasing mate-
rials or contracting. 
‘‘(ii) RETURN
OF
FUNDS.—If funds 
provided in advance are not expended dur-
ing the 90-day period beginning on the 
date of receipt of the funds, the funds shall 
be returned within a reasonable time 
frame, as determined by the Secretary.’’; 
(4) by striking subsection (f) and inserting the 
following new subsection: 
‘‘(f) ALLOCATION OF FUNDING.— 
‘‘(1) LIVESTOCK.—For each of fiscal years 
2014 through 2018, at least 60 percent of the funds 
made available for payments under the program 
shall be targeted at practices relating to livestock 
production. 
‘‘(2) WILDLIFE HABITAT.—For each of fiscal 
years 2014 through 2018, 7.5 percent of the funds 
made available for payments under the program 
shall be targeted at practices benefitting wildlife 
habitat.’’; 
(5) in subsection (g)— 
(A) in the subsection heading, by striking 
‘‘FEDERALLY RECOGNIZED NATIVE AMERICAN 
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