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tion to make emergency financial assistance authorized 
under this section available to producers on a farm that 
have incurred qualifying losses described in subsection (c). 
(b) ADMINISTRATION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall make assistance avail-
able under this section in the same manner as pro-
vided under section 815 of the Agriculture, Rural De-
velopment, Food and Drug Administration and Re-
lated Agencies Appropriations Act, 2001 (Public Law 
106–387; 114 Stat. 1549A–55), including using the 
same loss thresholds for quantity and economic losses 
as were used in administering that section, except 
that the payment rate shall be 50 percent of the estab-
lished price, instead of 65 percent. 
(2) LOSS THRESHOLDS FOR QUALITY LOSSES.— 
In the case of a payment for quality loss for a crop 
under subsection (c)(2), the loss thresholds for quality 
loss for the crop shall be determined under subsection 
(d). 
(c) QUALIFYING LOSSES.—Assistance under this sec-
tion shall be made available to producers on farms, other 
than producers of sugar cane and sugar beets, that incurred 
qualifying quantity or quality losses for— 
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(1) the 2005 crop due to damaging weather or 
any related condition (including losses due to crop 
diseases, insects, and delayed harvest), as determined 
by the Secretary; and 
(2) the 2006 crop due to flooding in California 
and Hawaii that occurred prior to the date of enact-
ment of this Act and for which a petition for a dis-
aster designation has been filed with the Secretary 
not later than that date. 
(d) QUALITY LOSSES.— 
(1) IN GENERAL.—Subject to paragraph (3), the 
amount of a payment made to producers on a farm 
for a quality loss for a crop under subsection (c)(2) 
shall be equal to the amount obtained by multi-
plying— 
(A) 65 percent of the payment quantity de-
termined under paragraph (2); by 
(B) 50 percent of the payment rate deter-
mined under paragraph (3). 
(2) PAYMENT
QUANTITY.—For the purpose of 
paragraph (1)(A), the payment quantity for quality 
losses for a crop of a commodity on a farm shall 
equal the lesser of— 
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(A) the actual production of the crop af-
fected by a quality loss of the commodity on the 
farm; or 
(B) the quantity of expected production of 
the crop affected by a quality loss of the com-
modity on the farm, using the formula used by 
the Secretary to determine quantity losses for the 
crop of the commodity under subsection (c)(1). 
(3) PAYMENT RATE.—For the purpose of para-
graph (1)(B) and in accordance with paragraphs (5) 
and (6), the payment rate for quality losses for a crop 
of a commodity on a farm shall be equal to the dif-
ference between— 
(A) the per unit market value that the units 
of the crop affected by the quality loss would 
have had if the crop had not suffered a quality 
loss; and 
(B) the per unit market value of the units 
of the crop affected by the quality loss. 
(4) ELIGIBILITY.—For producers on a farm to be 
eligible to obtain a payment for a quality loss for a 
crop under subsection (c)(2), the amount obtained by 
multiplying the per unit loss determined under para-
graph (1) by the number of units affected by the qual-
ity loss shall be at least 25 percent of the value that 
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all affected production of the crop would have had if 
the crop had not suffered a quality loss. 
(5) MARKETING CONTRACTS.—In the case of any 
production of a commodity that is sold pursuant to 
1 or more marketing contracts (regardless of whether 
the contract is entered into by the producers on the 
farm before or after harvest) and for which appro-
priate documentation exists, the quantity designated 
in the contracts shall be eligible for quality loss assist-
ance based on the 1 or more prices specified in the 
contracts. 
(6) OTHER PRODUCTION.—For any additional 
production of a commodity for which a marketing 
contract does not exist or for which production con-
tinues to be owned by the producer, quality losses 
shall be based on the average local market discounts 
for reduced quality, as determined by the appropriate 
State committee of the Farm Service Agency. 
(7) QUALITY ADJUSTMENTS AND DISCOUNTS.— 
The appropriate State committee of the Farm Service 
Agency shall identify the appropriate quality adjust-
ment and discount factors to be considered in car-
rying out this subsection, including— 
(A) the average local discounts actually ap-
plied to a crop; and 
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(B) the discount schedules applied to loans 
made by the Farm Service Agency or crop insur-
ance coverage under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.). 
(8) ELIGIBLE PRODUCTION.—The Secretary shall 
carry out this subsection in a fair and equitable man-
ner for all eligible production, including the produc-
tion of fruits and vegetables, other specialty crops, 
and field crops. 
(e) ELIGIBILITY FOR ASSISTANCE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the producers on a farm shall not be eligi-
ble for assistance under this section with respect to 
losses to an insurable commodity or noninsurable 
commodity if the producers on the farm— 
(A) in the case of an insurable commodity, 
did not obtain a policy or plan of insurance for 
the insurable commodity under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) for the 
crop incurring the losses; 
(B) in the case of a noninsurable com-
modity, did not file the required paperwork, and 
pay the administrative fee by the applicable 
State filing deadline, for the noninsurable com-
modity under section 196 of the Federal Agri-
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culture Improvement and Reform Act of 1996 (7 
U.S.C. 7333) for the crop incurring the losses; 
(C) had average adjusted gross income (as 
defined by section 1001D(a) of the Food Security 
Act of 1985 (7 U.S.C. 1308–3a(a)), of greater 
than $2,500,000 in 2004; or 
(D) were not in compliance with highly 
erodible land conservation and wetland conserva-
tion provisions. 
(2) CONTRACT
WAIVER.—The Secretary may 
waive paragraph (1) with respect to the producers on 
a farm if the producers enter into a contract with the 
Secretary under which the producers agree— 
(A) in the case of an insurable commodity, 
to obtain a policy or plan of insurance under the 
Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) providing additional coverage for the insur-
able commodity for each of the next 2 crops, at 
a coverage level that provides— 
(i) not less than 65 percent of the ac-
tual production history for the crop pro-
duced on the farm; and 
(ii) 100 percent of the expected market 
price or a comparable coverage (as deter-
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mined by the Federal Crop Insurance Cor-
poration); and 
(B) in the case of a noninsurable com-
modity, to file the required paperwork and pay 
the administrative fee by the applicable State fil-
ing deadline, for the noninsurable commodity for 
each of the next 2 crops under section 196 of the 
Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333). 
(3) EFFECT OF VIOLATION.—In the event of the 
violation of a contract under paragraph (2) by a pro-
ducer, the producer shall reimburse the Secretary for 
the full amount of the assistance provided to the pro-
ducer under this section. 
(f) TIMING.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary shall make payments to producers on a 
farm for a crop under this section not later than 60 
days after the date the producers on the farm submit 
to the Secretary a completed application for the pay-
ments. 
(2) INTEREST.—If the Secretary does not make 
payments to the producers on a farm by the date de-
scribed in paragraph (1), the Secretary shall pay to 
the producers on a farm interest on the payments at 
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a rate equal to the current (as of the sign-up deadline 
established by the Secretary) market yield on out-
standing, marketable obligations of the United States 
with maturities of 30 years. 
SEC. 3012. LIVESTOCK ASSISTANCE. 
(a) LIVESTOCK COMPENSATION PROGRAM.— 
(1) USE OF COMMODITY CREDIT CORPORATION 
FUNDS.—Effective beginning on the date of enactment 
of this Act, the Secretary shall use funds of the Com-
modity Credit Corporation to carry out the 2002 
Livestock Compensation Program announced by the 
Secretary on October 10, 2002 (67 Fed. Reg. 63070), 
to provide compensation for livestock losses during 
calendar years 2005 and 2006 for losses that occurred 
prior to the date of enactment of this Act (including 
wildfire disaster losses in the State of Texas and other 
States) due to a disaster, as determined by the Sec-
retary, except that the payment rate shall be 75 per-
cent of the payment rate established for the 2002 
Livestock Compensation Program. 
(2) ELIGIBLE APPLICANTS.—In carrying out the 
program described in paragraph (1), the Secretary 
shall provide assistance to any applicant that— 
(A)(i) conducts a livestock operation that is 
located in a disaster county, including any ap-
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CCOLEMAN on PROD1PC71 with BILLS
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plicant conducting a livestock operation with eli-
gible livestock (within the meaning of the live-
stock assistance program under section 101(b) of 
division B of Public Law 108–324 (118 Stat. 
1234)); or 
(ii) produces an animal described in section 
10806(a)(1) of the Farm Security and Rural In-
vestment Act of 2002 (21 U.S.C. 321d(a)(1)); 
and 
(B) meets all other eligibility requirements 
established by the Secretary for the program. 
(3) MITIGATION.—In determining the eligibility 
for or amount of payments for which a producer is 
eligible under the livestock compensation program, the 
Secretary shall not penalize a producer that takes ac-
tions (recognizing disaster conditions) that reduce the 
average number of livestock the producer owned for 
grazing during the production year for which assist-
ance is being provided. 
(4) LIMITATION.—The Secretary shall ensure, to 
the maximum extent practicable, that no producer on 
a farm receives duplicative payments under this sub-
section and another Federal program with respect to 
any loss. 
(b) LIVESTOCK INDEMNITY PAYMENTS.— 
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(1) IN GENERAL.—The Secretary shall use such 
sums as are necessary of funds of the Commodity 
Credit Corporation to make livestock indemnity pay-
ments to producers on farms that have incurred live-
stock losses during calendar years 2005 and 2006 for 
losses that occurred prior to the date of enactment of 
this Act (including wildfire disaster losses in the 
State of Texas and other States) due to a disaster, as 
determined by the Secretary, including losses due to 
hurricanes, floods, anthrax, and wildfires. 
(2) PAYMENT RATES.—Indemnity payments to a 
producer on a farm under paragraph (1) shall be 
made at a rate of not less than 30 percent of the mar-
ket value of the applicable livestock on the day before 
the date of death of the livestock, as determined by the 
Secretary. 
(c) LIVESTOCK INDEMNITY PROGRAM FOR CONTRACT 
GROWERS.— 
(1) IN GENERAL.—Subject to subsection (d), the 
Secretary shall use funds of the Commodity Credit 
Corporation to establish a program to assist poultry 
producers in hurricane-affected counties that suffered 
income losses. 
(2) TERMS AND CONDITIONS.—The program es-
tablished under paragraph (1) shall contain similar 
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terms and conditions as the terms and conditions 
used for the livestock indemnity program for contract 
growers described in subpart E of chapter XIV of title 
7, Code of Federal Regulations (as in effect on Janu-
ary 1, 2002). 
(d) EWE LAMB REPLACEMENT AND RETENTION.— 
(1) IN
GENERAL.—The Secretary shall use 
$15,000,000 of funds of the Commodity Credit Cor-
poration to make payments under the Ewe Lamb Re-
placement and Retention Payment Program under 
part 784 of title 7, Code of Federal Regulations (or 
a successor regulation) for each qualifying ewe lamb 
retained or purchased during the period beginning on 
January 1, 2006, and ending on December 31, 2006. 
(2) INELIGIBILITY FOR OTHER ASSISTANCE.—A 
producer that receives assistance under this subsection 
shall not be eligible to receive assistance under sub-
section (a). 
(e) LIMIT
ON AMOUNT
OF ASSISTANCE.—The Sec-
retary shall ensure, to the maximum extent practicable, that 
no producer on a farm receives duplicative payments under 
this section and any other Federal program for the same 
loss. 
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SEC. 3013. FLOODED CROP AND GRAZING LAND. 
(a) IN GENERAL.—The Secretary shall compensate eli-
gible owners of flooded crop and grazing land in— 
(1) the Devils Lake basin; and 
(2) the McHugh, Lake Laretta, and Rose Lake 
closed drainage areas of the State of North Dakota. 
(b) ELIGIBILITY.— 
(1) IN GENERAL.—To be eligible to receive com-
pensation under this section, an owner shall own land 
described in subsection (a) that, during the 2 crop 
years preceding receipt of compensation, was rendered 
incapable of use for the production of an agricultural 
commodity or for grazing purposes (in a manner con-
sistent with the historical use of the land) as the re-
sult of flooding, as determined by the Secretary. 
(2) INCLUSIONS.—Land described in paragraph 
(1) shall include— 
(A) land that has been flooded; 
(B) land that has been rendered inaccessible 
due to flooding; and 
(C) a reasonable buffer strip adjoining the 
flooded land, as determined by the Secretary. 
(3) ADMINISTRATION.—The Secretary may estab-
lish— 
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(A) reasonable minimum acreage levels for 
individual parcels of land for which owners may 
receive compensation under this section; and 
(B) the location and area of adjoining 
flooded land for which owners may receive com-
pensation under this section. 
(c) SIGN-UP.—The Secretary shall establish a sign-up 
program for eligible owners to apply for compensation from 
the Secretary under this section. 
(d) COMPENSATION PAYMENTS.— 
(1) IN GENERAL.—Subject to paragraphs (2) and 
(3), the rate of an annual compensation payment 
under this section shall be equal to 90 percent of the 
average annual per acre rental payment rate (at the 
time of entry into the contract) for comparable crop 
or grazing land that has not been flooded and re-
mains in production in the county where the flooded 
land is located, as determined by the Secretary. 
(2) REDUCTION.—An annual compensation pay-
ment under this section shall be reduced by the 
amount of any conservation program rental payments 
or Federal agricultural commodity program pay-
ments received by the owner for the land during any 
crop year for which compensation is received under 
this section. 
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(3) EXCLUSION.—During any year in which an 
owner receives compensation for flooded land under 
this section, the owner shall not be eligible to partici-
pate in or receive benefits for the flooded land 
under— 
(A) the Federal crop insurance program es-
tablished under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.); 
(B) the noninsured crop assistance program 
established under section 196 of the Federal Ag-
riculture Improvement and Reform Act of 1996 
(7 U.S.C. 7333); or 
(C) any Federal agricultural crop disaster 
assistance program. 
(e) RELATIONSHIP
TO AGRICULTURAL COMMODITY 
PROGRAMS.—The Secretary, by regulation, shall provide 
for the preservation of cropland base, allotment history, and 
payment yields applicable to land described in subsection 
(a) that was rendered incapable of use for the production 
of an agricultural commodity or for grazing purposes as 
the result of flooding. 
(f) USE OF LAND.— 
(1) IN GENERAL.—An owner that receives com-
pensation under this section for flooded land shall 
take such actions as are necessary to not degrade any 
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wildlife habitat on the land that has naturally devel-
oped as a result of the flooding. 
(2) RECREATIONAL
ACTIVITIES.—To encourage 
owners that receive compensation for flooded land to 
allow public access to and use of the land for rec-
reational activities, as determined by the Secretary, 
the Secretary may— 
(A) offer an eligible owner additional com-
pensation; and 
(B) provide compensation for additional 
acreage under this section. 
(g) FUNDING.— 
(1) IN
GENERAL.—The Secretary shall use 
$6,000,000 of funds of the Commodity Credit Cor-
poration to carry out this section. 
(2) PRO-RATED PAYMENTS.—In a case in which 
the amount made available under paragraph (1) for 
a fiscal year is insufficient to compensate all eligible 
owners under this section, the Secretary shall pro-rate 
payments for that fiscal year on a per acre basis. 
SEC. 3014. SUGARCANE AND SUGAR BEET DISASTER ASSIST-
ANCE. 
(a) FLORIDA.—The Secretary of Agriculture shall use 
$120,000,000 of funds of the Commodity Credit Corporation 
to make payments to processors in Florida that are eligible 
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to obtain a loan under section 156(a) of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C. 
7272(a)) to compensate first processors and producers for 
crop and other losses in hurricane-affected counties that are 
related to hurricanes, tropical storms, excessive rains, 
floods, and wind in Florida during calendar year 2005, by 
an agreement on the same terms and conditions, to the max-
imum extent practicable, as the payments made under sec-
tion 102 of the Emergency Supplemental Appropriations 
for Hurricane Disasters Assistance Act of 2005 (Public Law 
108–324; 118 Stat. 1235), including that the 2005 base pro-
duction of each harvesting unit shall be determined using 
the same base year crop production history that was used 
pursuant to the agreement under that section. 
(b) LOUISIANA.— 
(1) COMPENSATION FOR LOSSES.—The Secretary 
shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to make $120,000,000 
in payments to first processors of sugarcane that op-
erate in a disaster county in Louisiana, or obtain 
sugarcane from a disaster county in Louisiana, and 
that are eligible to obtain a loan under section 156(a) 
of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7272(a)), to compensate the 
producers and first processors for crop and other 
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