IB 
Union Calendar No. 73 
113TH CONGRESS 
1ST SESSION H. R. 1947 
[Report No. 113–92, Parts I and II] 
To provide for the reform and continuation of agricultural and other programs 
of the Department of Agriculture through fiscal year 2018, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2013 
Mr. LUCAS (for himself and Mr. PETERSON) introduced the following bill; 
which was referred to the Committee on Agriculture 
MAY 29, 2013 
Reported with an amendment and referred to the Committees on Foreign Af-
fairs and the Judiciary for a period ending not later than June 7, 2013, 
for consideration of such provisions of the bill and amendment as fall 
within the jurisdiction of those committees pursuant to clause 1(i) and 
clause 1(l), respectively, of rule X 
[Strike out all after the enacting clause and insert the part printed in italic] 
JUNE 7, 2013 
Referral to the Committees on Foreign Affairs and the Judiciary extended for 
a period ending not later than June 10, 2013 
JUNE 10, 2013 
The Committee on Foreign Affairs discharged 
JUNE 10, 2013 
Reported from the Committee on the Judiciary with amendments, committed 
to the Committee of the Whole House on the State of the Union, and 
ordered to be printed 
[Omit the part struck through in roman and insert the part printed in boldface roman] 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
A BILL 
To provide for the reform and continuation of agricultural 
and other programs of the Department of Agriculture 
through fiscal year 2018, and for other purposes. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Federal Agriculture Reform and Risk Management Act of 
2013’’. 
(b) TABLE OF CONTENTS.—The table of contents of this 
Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definition of Secretary of Agriculture. 
TITLE I—COMMODITIES 
Subtitle A—Repeals and Reforms 
Sec. 1101. Repeal of direct payments. 
Sec. 1102. Repeal of counter-cyclical payments. 
Sec. 1103. Repeal of average crop revenue election program. 
Sec. 1104. Definitions. 
Sec. 1105. Base acres. 
Sec. 1106. Payment yields. 
Sec. 1107. Farm risk management election. 
Sec. 1108. Producer agreements. 
Sec. 1109. Period of effectiveness. 
Subtitle B—Marketing Loans 
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan com-
modities. 
Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 
Sec. 1203. Term of loans. 
Sec. 1204. Repayment of loans. 
Sec. 1205. Loan deficiency payments. 
Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 
Sec. 1207. Special marketing loan provisions for upland cotton. 
Sec. 1208. Special competitive provisions for extra long staple cotton. 
Sec. 1209. Availability of recourse loans for high moisture feed grains and seed 
cotton. 
Sec. 1210. Adjustments of loans. 
Subtitle C—Sugar 
Sec. 1301. Sugar program. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN PROTECTION AND DAIRY MARKET 
STABILIZATION PROGRAMS 
Sec. 1401. Definitions. 
Sec. 1402. Calculation of average feed cost and actual dairy producer margins. 
SUBPART A—DAIRY PRODUCER MARGIN PROTECTION PROGRAM 
Sec. 1411. Establishment of dairy producer margin protection program. 
Sec. 1412. Participation of dairy producers in margin protection program. 
Sec. 1413. Production history of participating dairy producers. 
Sec. 1414. Basic margin protection. 
Sec. 1415. Supplemental margin protection. 
Sec. 1416. Effect of failure to pay administrative fees or premiums. 
SUBPART B—DAIRY MARKET STABILIZATION PROGRAM 
Sec. 1431. Establishment of dairy market stabilization program. 
Sec. 1432. Threshold for implementation and reduction in dairy producer pay-
ments. 
Sec. 1433. Producer milk marketing information. 
Sec. 1434. Calculation and collection of reduced dairy producer payments. 
Sec. 1435. Remitting monies to the Secretary and use of monies. 
Sec. 1436. Suspension of reduced payment requirement. 
Sec. 1437. Enforcement. 
Sec. 1438. Audit requirements. 
SUBPART C—COMMODITY CREDIT CORPORATION 
Sec. 1451. Use of Commodity Credit Corporation. 
SUBPART D—INITIATION AND DURATION 
Sec. 1461. Rulemaking. 
Sec. 1462. Duration. 
PART II—REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED 
PROVISIONS 
Sec. 1481. Repeal of dairy product price support and milk income loss contract 
programs. 
Sec. 1482. Repeal of dairy export incentive program. 
Sec. 1483. Extension of dairy forward pricing program. 
Sec. 1484. Extension of dairy indemnity program. 
Sec. 1485. Extension of dairy promotion and research program. 
Sec. 1486. Repeal of Federal Milk Marketing Order Review Commission. 
PART III—EFFECTIVE DATE 
Sec. 1491. Effective date. 
Subtitle E—Supplemental Agricultural Disaster Assistance Programs 
Sec. 1501. Supplemental agricultural disaster assistance. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Subtitle F—Administration 
Sec. 1601. Administration generally. 
Sec. 1602. Suspension of permanent price support authority. 
Sec. 1603. Payment limitations. 
Sec. 1604. Adjusted gross income limitation. 
Sec. 1605. Geographically disadvantaged farmers and ranchers. 
Sec. 1606. Personal liability of producers for deficiencies. 
Sec. 1607. Prevention of deceased individuals receiving payments under farm 
commodity programs. 
Sec. 1608. Technical corrections. 
Sec. 1609. Assignment of payments. 
Sec. 1610. Tracking of benefits. 
Sec. 1611. Signature authority. 
Sec. 1612. Implementation. 
Sec. 1613. Protection of producer information. 
TITLE II—CONSERVATION 
Subtitle A—Conservation Reserve Program 
Sec. 2001. Extension and enrollment requirements of conservation reserve pro-
gram. 
Sec. 2002. Farmable wetland program. 
Sec. 2003. Duties of owners and operators. 
Sec. 2004. Duties of the Secretary. 
Sec. 2005. Payments. 
Sec. 2006. Contract requirements. 
Sec. 2007. Conversion of land subject to contract to other conserving uses. 
Sec. 2008. Effective date. 
Subtitle B—Conservation Stewardship Program 
Sec. 2101. Conservation stewardship program. 
Subtitle C—Environmental Quality Incentives Program 
Sec. 2201. Purposes. 
Sec. 2202. Establishment and administration. 
Sec. 2203. Evaluation of applications. 
Sec. 2204. Duties of producers. 
Sec. 2205. Limitation on payments. 
Sec. 2206. Conservation innovation grants and payments. 
Sec. 2207. Effective date. 
Subtitle D—Agricultural Conservation Easement Program 
Sec. 2301. Agricultural conservation easement program. 
Subtitle E—Regional Conservation Partnership Program 
Sec. 2401. Regional conservation partnership program. 
Subtitle F—Other Conservation Programs 
Sec. 2501. Conservation of private grazing land. 
Sec. 2502. Grassroots source water protection program. 
Sec. 2503. Voluntary public access and habitat incentive program. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Sec. 2504. Agriculture conservation experienced services program. 
Sec. 2505. Small watershed rehabilitation program. 
Sec. 2506. Agricultural management assistance program. 
Subtitle G—Funding and Administration 
Sec. 2601. Funding. 
Sec. 2602. Technical assistance. 
Sec. 2603. Reservation of funds to provide assistance to certain farmers or ranch-
ers for conservation access. 
Sec. 2604. Annual report on program enrollments and assistance. 
Sec. 2605. Review of conservation practice standards. 
Sec. 2606. Administrative requirements applicable to all conservation programs. 
Sec. 2607. Standards for State technical committees. 
Sec. 2608. Rulemaking authority. 
Subtitle H—Repeal of Superseded Program Authorities and Transitional 
Provisions; Technical Amendments 
Sec. 2701. Comprehensive conservation enhancement program. 
Sec. 2702. Emergency forestry conservation reserve program. 
Sec. 2703. Wetlands reserve program. 
Sec. 2704. Farmland protection program and farm viability program. 
Sec. 2705. Grassland reserve program. 
Sec. 2706. Agricultural water enhancement program. 
Sec. 2707. Wildlife habitat incentive program. 
Sec. 2708. Great Lakes basin program. 
Sec. 2709. Chesapeake Bay watershed program. 
Sec. 2710. Cooperative conservation partnership initiative. 
Sec. 2711. Environmental easement program. 
Sec. 2712. Technical amendments. 
TITLE III—TRADE 
Subtitle A—Food for Peace Act 
Sec. 3001. General authority. 
Sec. 3002. Support for organizations through which assistance is provided. 
Sec. 3003. Food aid quality. 
Sec. 3004. Minimum levels of assistance. 
Sec. 3005. Food Aid Consultative Group. 
Sec. 3006. Oversight, monitoring, and evaluation. 
Sec. 3007. Assistance for stockpiling and rapid transportation, delivery, and dis-
tribution of shelf-stable prepackaged foods. 
Sec. 3008. General provisions. 
Sec. 3009. Prepositioning of agricultural commodities. 
Sec. 3010. Annual report regarding food aid programs and activities. 
Sec. 3011. Deadline for agreements to finance sales or to provide other assistance. 
Sec. 3012. Authorization of appropriations. 
Sec. 3013. Micronutrient fortification programs. 
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. 
Subtitle B—Agricultural Trade Act of 1978 
Sec. 3101. Funding for export credit guarantee program. 
Sec. 3102. Funding for market access program. 
Sec. 3103. Foreign market development cooperator program. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Subtitle C—Other Agricultural Trade Laws 
Sec. 3201. Food for Progress Act of 1985. 
Sec. 3202. Bill Emerson Humanitarian Trust. 
Sec. 3203. Promotion of agricultural exports to emerging markets. 
Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition 
Program. 
Sec. 3205. Technical assistance for specialty crops. 
Sec. 3206. Global Crop Diversity Trust. 
Sec. 3207. Under Secretary of Agriculture for Foreign Agricultural Services. 
TITLE IV—NUTRITION 
Subtitle A—Supplemental Nutrition Assistance Program 
Sec. 4001. Preventing payment of cash to recipients of supplemental nutrition as-
sistance benefits for the return of empty bottles and cans used 
to contain food purchased with benefits provided under the pro-
gram. 
Sec. 4002. Retailers. 
Sec. 4003. Enhancing services to elderly and disabled supplemental nutrition as-
sistance program participants. 
Sec. 4004. Food distribution program on Indian reservations. 
Sec. 4005. Updating program eligibility. 
Sec. 4006. Exclusion of medical marijuana from excess medical expense deduc-
tion. 
Sec. 4007. Standard utility allowances based on the receipt of energy assistance 
payments. 
Sec. 4008. Eligibility disqualifications. 
Sec. 4009. Ending supplemental nutrition assistance program benefits for lottery 
or gambling winners. 
Sec. 4010. Improving security of food assistance. 
Sec. 4011. Demonstration projects on acceptance of benefits of mobile trans-
actions. 
Sec. 4012. Use of benefits for purchase of community-supported agriculture share. 
Sec. 4013. Restaurant meals program. 
Sec. 4014. Mandating State immigration verification. 
Sec. 4015. Data exchange standardization for improved interoperability. 
Sec. 4016. Pilot projects to improve Federal-State cooperation in identifying and 
reducing fraud in the supplemental nutrition assistance pro-
gram. 
Sec. 4017. Prohibiting government-sponsored recruitment activities. 
Sec. 4018. Repeal of bonus program. 
Sec. 4019. Funding of employment and training programs. 
Sec. 4020. Monitoring employment and training programs. 
Sec. 4021. Cooperation with program research and evaluation. 
Sec. 4022. Pilot projects to reduce dependency and increase work effort in the 
supplemental nutrition assistance program. 
Sec. 4023. Authorization of appropriations. 
Sec. 4024. Limitation on use of block grant to Puerto Rico. 
Sec. 4025. Assistance for community food projects. 
Sec. 4026. Emergency food assistance. 
Sec. 4027. Nutrition education. 
Sec. 4028. Retailer trafficking. 
Sec. 4029. Technical and conforming amendments. 
Sec. 4030. Tolerance level for excluding small errors. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Sec. 4031. Commonwealth of the Northern Mariana Islands pilot program. 
Sec. 4032. Annual State report on verification of SNAP participation. 
Subtitle B—Commodity Distribution Programs 
Sec. 4101. Commodity distribution program. 
Sec. 4102. Commodity supplemental food program. 
Sec. 4103. Distribution of surplus commodities to special nutrition projects. 
Sec. 4104. Processing of commodities. 
Subtitle C—Miscellaneous 
Sec. 4201. Farmers’ market nutrition program. 
Sec. 4202. Nutrition information and awareness pilot program. 
Sec. 4203. Fresh fruit and vegetable program. 
Sec. 4204. Additional authority for purchase of fresh fruits, vegetables, and other 
specialty food crops. 
Sec. 4205. Encouraging locally and regionally grown and raised food. 
Sec. 4206. Review of public health benefits of white potatoes. 
Sec. 4207. Healthy Food Financing Initiative. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
Sec. 5001. Eligibility for farm ownership loans. 
Sec. 5002. Conservation loan and loan guarantee program. 
Sec. 5003. Down payment loan program. 
Sec. 5004. Elimination of mineral rights appraisal requirement. 
Subtitle B—Operating Loans 
Sec. 5101. Eligibility for farm operating loans. 
Sec. 5102. Elimination of rural residency requirement for operating loans to 
youth. 
Sec. 5103. Authority to waive personal liability for youth loans due to cir-
cumstances beyond borrower control. 
Sec. 5104. Microloans. 
Subtitle C—Emergency Loans 
Sec. 5201. Eligibility for emergency loans. 
Subtitle D—Administrative Provisions 
Sec. 5301. Beginning farmer and rancher individual development accounts pilot 
program. 
Sec. 5302. Eligible beginning farmers and ranchers. 
Sec. 5303. Loan authorization levels. 
Sec. 5304. Priority for participation loans. 
Sec. 5305. Loan fund set-asides. 
Sec. 5306. Conforming amendment to borrower training provision, relating to eli-
gibility changes. 
Subtitle E—State Agricultural Mediation Programs 
Sec. 5401. State agricultural mediation programs. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Subtitle F—Loans to Purchasers of Highly Fractionated Land 
Sec. 5501. Loans to purchasers of highly fractionated land. 
TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and Rural Development Act 
Sec. 6001. Water, waste disposal, and wastewater facility grants. 
Sec. 6002. Rural business opportunity grants. 
Sec. 6003. Elimination of reservation of community facilities grant program 
funds. 
Sec. 6004. Utilization of loan guarantees for community facilities. 
Sec. 6005. Rural water and wastewater circuit rider program. 
Sec. 6006. Tribal college and university essential community facilities. 
Sec. 6007. Essential community facilities technical assistance and training. 
Sec. 6008. Emergency and imminent community water assistance grant program. 
Sec. 6009. Household water well systems. 
Sec. 6010. Rural business and industry loan program. 
Sec. 6011. Rural cooperative development grants. 
Sec. 6012. Locally or regionally produced agricultural food products. 
Sec. 6013. Intermediary relending program. 
Sec. 6014. Rural college coordinated strategy. 
Sec. 6015. Rural water and waste disposal infrastructure. 
Sec. 6016. Simplified applications. 
Sec. 6017. Grants for NOAA weather radio transmitters. 
Sec. 6018. Rural microentrepreneur assistance program. 
Sec. 6019. Delta Regional Authority. 
Sec. 6020. Northern Great Plains Regional Authority. 
Sec. 6021. Rural business investment program. 
Subtitle B—Rural Electrification Act of 1936 
Sec. 6101. Relending for certain purposes. 
Sec. 6102. Fees for certain loan guarantees. 
Sec. 6103. Guarantees for bonds and notes issued for electrification or telephone 
purposes. 
Sec. 6104. Expansion of 911 access. 
Sec. 6105. Access to broadband telecommunications services in rural areas. 
Subtitle C—Miscellaneous 
Sec. 6201. Distance learning and telemedicine. 
Sec. 6202. Value-added agricultural market development program grants. 
Sec. 6203. Agriculture innovation center demonstration program. 
Sec. 6204. Program metrics. 
Sec. 6205. Study of rural transportation issues. 
Sec. 6206. Certain Federal actions not to be considered major. 
TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS 
Subtitle A—National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 
Sec. 7101. Option to be included as non-land-grant college of agriculture. 
Sec. 7102. National Agricultural Research, Extension, Education, and Economics 
Advisory Board. 
Sec. 7103. Specialty crop committee. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Sec. 7104. Veterinary services grant program. 
Sec. 7105. Grants and fellowships for food and agriculture sciences education. 
Sec. 7106. Policy research centers. 
Sec. 7107. Repeal of human nutrition intervention and health promotion research 
program. 
Sec. 7108. Repeal of pilot research program to combine medical and agricultural 
research. 
Sec. 7109. Nutrition education program. 
Sec. 7110. Continuing animal health and disease research programs. 
Sec. 7111. Repeal of appropriations for research on national or regional prob-
lems. 
Sec. 7112. Grants to upgrade agricultural and food sciences facilities at 1890 
land-grant colleges, including Tuskegee University. 
Sec. 7113. Grants to upgrade agriculture and food science facilities and equip-
ment at insular area land-grant institutions. 
Sec. 7114. Repeal of national research and training virtual centers. 
Sec. 7115. Hispanic-serving institutions. 
Sec. 7116. Competitive Grants Program for Hispanic Agricultural Workers and 
Youth. 
Sec. 7117. Competitive grants for international agricultural science and edu-
cation programs. 
Sec. 7118. Repeal of research equipment grants. 
Sec. 7119. University research. 
Sec. 7120. Extension service. 
Sec. 7121. Auditing, reporting, bookkeeping, and administrative requirements. 
Sec. 7122. Supplemental and alternative crops. 
Sec. 7123. Capacity building grants for NLGCA institutions. 
Sec. 7124. Aquaculture assistance programs. 
Sec. 7125. Rangeland research programs. 
Sec. 7126. Special authorization for biosecurity planning and response. 
Sec. 7127. Distance education and resident instruction grants program for insu-
lar area institutions of higher education. 
Sec. 7128. Matching funds requirement. 
Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 
Sec. 7201. Best utilization of biological applications. 
Sec. 7202. Integrated management systems. 
Sec. 7203. Sustainable agriculture technology development and transfer program. 
Sec. 7204. National training program. 
Sec. 7205. National Genetics Resources Program. 
Sec. 7206. Repeal of National Agricultural Weather Information System. 
Sec. 7207. Repeal of rural electronic commerce extension program. 
Sec. 7208. Repeal of agricultural genome initiative. 
Sec. 7209. High-priority research and extension initiatives. 
Sec. 7210. Repeal of nutrient management research and extension initiative. 
Sec. 7211. Organic agriculture research and extension initiative. 
Sec. 7212. Repeal of agricultural bioenergy feedstock and energy efficiency re-
search and extension initiative. 
Sec. 7213. Farm business management. 
Sec. 7214. Centers of excellence. 
Sec. 7215. Repeal of red meat safety research center. 
Sec. 7216. Assistive technology program for farmers with disabilities. 
Sec. 7217. National rural information center clearinghouse. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Subtitle C—Agricultural Research, Extension, and Education Reform Act of 
1998 
Sec. 7301. Relevance and merit of agricultural research, extension, and education 
funded by the Department. 
Sec. 7302. Integrated research, education, and extension competitive grants pro-
gram. 
Sec. 7303. Repeal of coordinated program of research, extension, and education 
to improve viability of small and medium size dairy, livestock, 
and poultry operations. 
Sec. 7304. Fusarium Graminearum grants. 
Sec. 7305. Repeal of Bovine Johne’s disease control program. 
Sec. 7306. Grants for youth organizations. 
Sec. 7307. Specialty crop research initiative. 
Sec. 7308. Food animal residue avoidance database program. 
Sec. 7309. Repeal of national swine research center. 
Sec. 7310. Office of pest management policy. 
Sec. 7311. Repeal of studies of agricultural research, extension, and education. 
Subtitle D—Other Laws 
Sec. 7401. Critical Agricultural Materials Act. 
Sec. 7402. Equity in Educational Land-grant Status Act of 1994. 
Sec. 7403. Research Facilities Act. 
Sec. 7404. Repeal of carbon cycle research. 
Sec. 7405. Competitive, Special, and Facilities Research Grant Act. 
Sec. 7406. Renewable Resources Extension Act of 1978. 
Sec. 7407. National Aquaculture Act of 1980. 
Sec. 7408. Repeal of use of remote sensing data. 
Sec. 7409. Repeal of reports under Farm Security and Rural Investment Act of 
2002. 
Sec. 7410. Beginning farmer and rancher development program. 
Sec. 7411. Inclusion of Northern Mariana Islands as a State under McIntire- 
Stennis Cooperative Forestry Act. 
Subtitle E—Food, Conservation, and Energy Act of 2008 
PART 1—AGRICULTURAL SECURITY 
Sec. 7501. Agricultural biosecurity communication center. 
Sec. 7502. Assistance to build local capacity in agricultural biosecurity planning, 
preparation, and response. 
Sec. 7503. Research and development of agricultural countermeasures. 
Sec. 7504. Agricultural biosecurity grant program. 
PART 2—MISCELLANEOUS 
Sec. 7511. Enhanced use lease authority pilot program. 
Sec. 7512. Grazinglands research laboratory. 
Sec. 7513. Budget submission and funding. 
Sec. 7514. Repeal of research and education grants for the study of antibiotic-re-
sistant bacteria. 
Sec. 7515. Repeal of farm and ranch stress assistance network. 
Sec. 7516. Repeal of seed distribution. 
Sec. 7517. Natural products research program. 
Sec. 7518. Sun grant program. 
Sec. 7519. Repeal of study and report on food deserts. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Sec. 7520. Repeal of agricultural and rural transportation research and edu-
cation. 
Subtitle F—Miscellaneous Provisions 
Sec. 7601. Agreements with nonprofit organizations for National Arboretum. 
Sec. 7602. Cotton Disease Research Report. 
Sec. 7603. Acceptance of facility for Agricultural Research Service. 
Sec. 7604. Miscellaneous technical corrections. 
TITLE VIII—FORESTRY 
Subtitle A—Repeal of Certain Forestry Programs 
Sec. 8001. Forest land enhancement program. 
Sec. 8002. Watershed forestry assistance program. 
Sec. 8003. Expired cooperative national forest products marketing program. 
Sec. 8004. Hispanic-serving institution agricultural land national resources lead-
ership program. 
Sec. 8005. Tribal watershed forestry assistance program. 
Sec. 8006. Separate Forest Service decisionmaking and appeals process. 
Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 
Programs 
Sec. 8101. State-wide assessment and strategies for forest resources. 
Sec. 8102. Forest Legacy Program. 
Sec. 8103. Community forest and open space conservation program. 
Subtitle C—Reauthorization of Other Forestry-Related Laws 
Sec. 8201. Rural revitalization technologies. 
Sec. 8202. Office of International Forestry. 
Sec. 8203. Change in funding source for healthy forests reserve program. 
Sec. 8204. Stewardship end result contracting project authority. 
Subtitle D—National Forest Critical Area Response 
Sec. 8301. Definitions. 
Sec. 8302. Designation of critical areas. 
Sec. 8303. Application of expedited procedures and activities of the Healthy For-
ests Restoration Act of 2003 to critical areas. 
Sec. 8304. Good neighbor authority. 
Subtitle E—Miscellaneous Provisions 
Sec. 8401. Revision of strategic plan for forest inventory and analysis. 
Sec. 8402. Forest Service participation in ACES Program. 
Sec. 8403. Green science and technology transfer research under Forest and 
Rangeland Renewable Resources Research Act of 1978. 
Sec. 8404. Extension of stewardship contracts authority regarding use of designa-
tion by prescription to all thinning sales under National Forest 
Management Act of 1976. 
Sec. 8405. Reimbursement of fire funds expended by a State for management and 
suppression of certain wildfires. 
Sec. 8406. Ability of National Forest System lands to meet needs of local wood 
producing facilities for raw materials. 
Sec. 8407. Report on the National Forest System roads. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
TITLE IX—ENERGY 
Sec. 9001. Definition of renewable energy system. 
Sec. 9002. Biobased markets program. 
Sec. 9003. Biorefinery Assistance. 
Sec. 9004. Repowering assistance program. 
Sec. 9005. Bioenergy Program for Advanced Biofuels. 
Sec. 9006. Biodiesel Fuel Education Program. 
Sec. 9007. Rural Energy for America Program. 
Sec. 9008. Biomass Research and Development. 
Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers. 
Sec. 9010. Biomass Crop Assistance Program. 
Sec. 9011. Community wood energy program. 
Sec. 9012. Repeal of biofuels infrastructure study. 
Sec. 9013. Repeal of renewable fertilizer study. 
TITLE X—HORTICULTURE 
Sec. 10001. Specialty crops market news allocation. 
Sec. 10002. Repeal of grant program to improve movement of specialty crops. 
Sec. 10003. Farmers market and local food promotion program. 
Sec. 10004. Organic agriculture. 
Sec. 10005. Investigations and enforcement of the Organic Foods Production Act 
of 1990. 
Sec. 10006. Food safety education initiatives. 
Sec. 10007. Specialty crop block grants. 
Sec. 10008. Report on honey. 
Sec. 10009. Bulk shipments of apples to Canada. 
Sec. 10010. Inclusion of olive oil in import controls under the Agricultural Ad-
justment Act. 
Sec. 10011. Consolidation of plant pest and disease management and disaster 
prevention programs. 
Sec. 10012. Modification, cancellation, or suspension on basis of a biological 
opinion. 
Sec. 10013. Use and discharges of authorized pesticides. 
Sec. 10014. Seed not pesticide or device for purposes of importation. 
Sec. 10015. Stay of regulations related to Christmas Tree Promotion, Research, 
and Information Order. 
Sec. 10016. Study on proposed order pertaining to sulfuryl fluoride. 
Sec. 10017. Study on local and regional food production and program evaluation. 
TITLE XI—CROP INSURANCE 
Sec. 11001. Information sharing. 
Sec. 11002. Publication of information on violations of prohibition on premium 
adjustments. 
Sec. 11003. Supplemental coverage option. 
Sec. 11004. Premium amounts for catastrophic risk protection. 
Sec. 11005. Repeal of performance-based discount. 
Sec. 11006. Permanent enterprise unit subsidy. 
Sec. 11007. Enterprise units for irrigated and nonirrigated crops. 
Sec. 11008. Data collection. 
Sec. 11009. Adjustment in actual production history to establish insurable yields. 
Sec. 11010. Submission and review of policies. 
Sec. 11011. Equitable relief for specialty crop policies. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Sec. 11012. Budget limitations on renegotiation of the standard reinsurance 
agreement. 
Sec. 11013. Crop production on native sod. 
Sec. 11014. Coverage levels by practice. 
Sec. 11015. Beginning farmer and rancher provisions. 
Sec. 11016. Stacked income protection plan for producers of upland cotton. 
Sec. 11017. Peanut revenue crop insurance. 
Sec. 11018. Authority to correct errors. 
Sec. 11019. Implementation. 
Sec. 11020. Research and development priorities. 
Sec. 11021. Additional research and development contracting requirements. 
Sec. 11022. Program compliance partnerships. 
Sec. 11023. Pilot programs. 
Sec. 11024. Technical amendments. 
TITLE XII—MISCELLANEOUS 
Subtitle A—Livestock 
Sec. 12101. National Sheep Industry Improvement Center. 
Sec. 12102. Repeal of certain regulations under the Packers and Stockyards Act, 
1921. 
Sec. 12103. Trichinae certification program. 
Sec. 12104. National Aquatic Animal Health Plan. 
Sec. 12105. Country of origin labeling. 
Sec. 12106. National animal health laboratory network. 
Sec. 12107. Repeal of duplicative catfish inspection program. 
Sec. 12108. National Poultry Improvement Program. 
Sec. 12109. Report on bovine tuberculosis in Texas. 
Subtitle B—Socially Disadvantaged Producers and Limited Resource Producers 
Sec. 12201. Outreach and assistance for socially disadvantaged farmers and 
ranchers and veteran farmers and ranchers. 
Sec. 12202. Office of Advocacy and Outreach. 
Sec. 12203. Socially Disadvantaged Farmers and Ranchers Policy Research Cen-
ter. 
Subtitle C—Other Miscellaneous Provisions 
Sec. 12302. Grants to improve supply, stability, safety, and training of agricul-
tural labor force. 
Sec. 12303. Program benefit eligibility status for participants in high plains 
water study. 
Sec. 12304. Office of Tribal Relations. 
Sec. 12305. Military Veterans Agricultural Liaison. 
Sec. 12306. Prohibition on keeping GSA leased cars overnight. 
Sec. 12307. Noninsured crop assistance program. 
Sec. 12308. Ensuring high standards for agency use of scientific information. 
Sec. 12309. Evaluation required for purposes of prohibition on closure or reloca-
tion of county offices for the Farm Service Agency. 
Sec. 12310. Acer access and development program. 
Sec. 12311. Regulatory review by the Secretary of Agriculture. 
Sec. 12312. Agricultural commodity definition. 
Sec. 12313. Prohibition on attending an animal fighting venture or causing a 
minor to attend an animal fighting venture. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6213
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Sec. 12314. Prohibition against interference by State and local governments with 
production or manufacture of items in other States. 
Sec. 12315. Increased protection for agricultural interests in the Missouri River 
Basin. 
Sec. 12316. Increased protection for agricultural interests in the Black Dirt re-
gion. 
SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE. 
In this Act, the term ‘‘Secretary’’ means the Secretary 
of Agriculture. 
TITLE I—COMMODITIES 
Subtitle A—Repeals and Reforms 
SEC. 1101. REPEAL OF DIRECT PAYMENTS. 
(a) REPEAL.—Sections 1103 and 1303 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 
8753) are repealed. 
(b) CONTINUED APPLICATION FOR 2013 CROP YEAR.— 
Sections 1103 and 1303 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8713, 8753), as in effect on the 
day before the date of enactment of this Act, shall continue 
to apply through the 2013 crop year with respect to all cov-
ered commodities (as defined in section 1001 of that Act 
(7 U.S.C. 8702)) and peanuts on a farm. 
(c) CONTINUED APPLICATION
FOR 2014 AND 2015 
CROP YEARS.—Subject to this subtitle, the amendments 
made by sections 1603 and 1604 of this Act, and sections 
1607 and 1611 of this Act, section 1103 of the Food, Con-
servation and Energy Act of 2008 (7 U.S.C. 8713), as in 
effect on the day before the date of enactment of this Act, 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
shall continue to apply through the 2014 and 2015 crop 
years with respect to upland cotton only (as defined in sec-
tion 1001 of that Act (7 U.S.C. 8702)), except that, in ap-
plying such section 1103, the term ‘‘payment acres’’ means 
the following: 
(1) For crop year 2014, 70 percent of the base 
acres of upland cotton on a farm on which direct 
payments are made. 
(2) For crop year 2015, 60 percent of the base 
acres of upland cotton on a farm on which direct 
payments are made. 
SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS. 
(a) REPEAL.—Sections 1104 and 1304 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 
8754) are repealed. 
(b) CONTINUED APPLICATION FOR 2013 CROP YEAR.— 
Sections 1104 and 1304 of the Food, Conservation, and En-
ergy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on the 
day before the date of enactment of this Act, shall continue 
to apply through the 2013 crop year with respect to all cov-
ered commodities (as defined in section 1001 of that Act 
(7 U.S.C. 8702)) and peanuts on a farm. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION 
PROGRAM. 
(a) REPEAL.—Section 1105 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8715) is repealed. 
(b) CONTINUED APPLICATION FOR 2013 CROP YEAR.— 
Section 1105 of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 8715), as in effect on the day before the 
date of enactment of this Act, shall continue to apply 
through the 2013 crop year with respect to all covered com-
modities (as defined in section 1001 of that Act (7 U.S.C. 
8702)) and peanuts on a farm for which the irrevocable 
election under section 1105 of that Act was made before the 
date of enactment of this Act. 
SEC. 1104. DEFINITIONS. 
In this subtitle and subtitle B: 
(1) ACTUAL COUNTY REVENUE.—The term ‘‘ac-
tual county revenue’’, with respect to a covered com-
modity for a crop year, means the amount determined 
by the Secretary under section 1107(c)(4) to deter-
mine whether revenue loss coverage payments are re-
quired to be provided for that crop year. 
(2) BASE ACRES.—The term ‘‘base acres’’, with 
respect to a covered commodity and cotton on a farm, 
means the number of acres established under section 
1101 and 1302 of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 7911, 7952) or section 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
1101 and 1302 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8711, 8752), as in effect on 
September 30, 2013, subject to any adjustment under 
section 1105 of this Act. For purposes of making pay-
ments under subsections (b) and (c) of section 1107, 
base acres are reduced by the payment acres cal-
culated in 1101(c). 
(3) COUNTY
REVENUE
LOSS
COVERAGE
TRIG-
GER.—The term ‘‘county revenue loss coverage trig-
ger’’, with respect to a covered commodity for a crop 
year, means the amount determined by the Secretary 
under section 1107(c)(5) to determine whether revenue 
loss coverage payments are required to be provided for 
that crop year. 
(4) COVERED COMMODITY.—The term ‘‘covered 
commodity’’ means wheat, oats, and barley (including 
wheat, oats, and barley used for haying and grazing), 
corn, grain sorghum, long grain rice, medium grain 
rice, pulse crops, soybeans, other oilseeds, and pea-
nuts. 
(5) EFFECTIVE
PRICE.—The term ‘‘effective 
price’’, with respect to a covered commodity for a 
crop year, means the price calculated by the Secretary 
under section 1107(b)(2) to determine whether price 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
loss coverage payments are required to be provided for 
that crop year. 
(6) EXTRA
LONG
STAPLE
COTTON.—The term 
‘‘extra long staple cotton’’ means cotton that— 
(A) is produced from pure strain varieties 
of the Barbadense species or any hybrid of the 
species, or other similar types of extra long sta-
ple cotton, designated by the Secretary, having 
characteristics needed for various end uses for 
which United States upland cotton is not suit-
able and grown in irrigated cotton-growing re-
gions of the United States designated by the Sec-
retary or other areas designated by the Secretary 
as suitable for the production of the varieties or 
types; and 
(B) is ginned on a roller-type gin or, if au-
thorized by the Secretary, ginned on another 
type gin for experimental purposes. 
(7) FARM BASE ACRES.—The term ‘‘farm base 
acres’’ means the sum of the base acreage for all cov-
ered commodities and cotton on a farm in effect as 
of September 30, 2013, and subject to any adjustment 
under section 1105. 
(8) MEDIUM GRAIN RICE.—The term ‘‘medium 
grain rice’’ includes short grain rice. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(9) MIDSEASON
PRICE.—The term ‘‘midseason 
price’’ means the applicable national average market 
price received by producers for the first 5 months of 
the applicable marketing year, as determined by the 
Secretary. 
(10) OTHER OILSEED.—The term ‘‘other oilseed’’ 
means a crop of sunflower seed, rapeseed, canola, saf-
flower, flaxseed, mustard seed, crambe, sesame seed, or 
any oilseed designated by the Secretary. 
(11) PAYMENT ACRES.— 
(A) IN GENERAL.—Except as provided in 
subparagraphs (B) through (D), the term ‘‘pay-
ment acres’’, with respect to the provision of 
price loss coverage payments and revenue loss 
coverage payments, means— 
(i) 85 percent of total acres planted for 
the year to each covered commodity on a 
farm; and 
(ii) 30 percent of total acres approved 
as prevented from being planted for the year 
to each covered commodity on a farm. 
(B) MAXIMUM.—The total quantity of pay-
ment acres determined under subparagraph (A) 
shall not exceed the farm base acres. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(C) REDUCTION.—If the sum of all payment 
acres for a farm exceeds the limits established 
under subparagraph (B), the Secretary shall re-
duce the payment acres applicable to each crop 
proportionately. 
(D) 
EXCLUSION.—The 
term 
‘‘payment 
acres’’ does not include any crop subsequently 
planted during the same crop year on the same 
land for which the first crop is eligible for pay-
ments under this subtitle, unless the crop was 
approved for double cropping in the county, as 
determined by the Secretary. 
(12) PAYMENT
YIELD.—The term ‘‘payment 
yield’’ means the yield established for counter-cyclical 
payments under section 1102 or 1302 of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 
7912, 7952), section 1102 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8712), as in effect 
on September 30, 2013, or under section 1106 of this 
Act, for a farm for a covered commodity. 
(13) PRICE LOSS COVERAGE.—The term ‘‘price 
loss coverage’’ means coverage provided under section 
1107(b). 
(14) PRODUCER.— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(A) IN
GENERAL.—The term ‘‘producer’’ 
means an owner, operator, landlord, tenant, or 
sharecropper that shares in the risk of producing 
a crop and is entitled to share in the crop avail-
able for marketing from the farm, or would have 
shared had the crop been produced. 
(B) HYBRID SEED.—In determining wheth-
er a grower of hybrid seed is a producer, the Sec-
retary shall— 
(i) not take into consideration the ex-
istence of a hybrid seed contract; and 
(ii) ensure that program requirements 
do not adversely affect the ability of the 
grower to receive a payment under this 
title. 
(15) PULSE
CROP.—The term ‘‘pulse crop’’ 
means dry peas, lentils, small chickpeas, and large 
chickpeas. 
(16) REFERENCE
PRICE.—The term ‘‘reference 
price’’, with respect to a covered commodity for a 
crop year, means the following: 
(A) Wheat, $5.50 per bushel. 
(B) Corn, $3.70 per bushel. 
(C) Grain sorghum, $3.95 per bushel. 
(D) Barley, $4.95 per bushel. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(E) Oats, $2.40 per bushel. 
(F) Long grain rice, $14.00 per hundred-
weight. 
(G) Medium grain rice, $14.00 per hun-
dredweight. 
(H) Soybeans, $8.40 per bushel. 
(I) Other oilseeds, $20.15 per hundred-
weight. 
(J) Peanuts $535.00 per ton. 
(K) Dry peas, $11.00 per hundredweight. 
(L) Lentils, $19.97 per hundredweight. 
(M) Small chickpeas, $19.04 per hundred-
weight. 
(N) Large chickpeas, $21.54 per hundred-
weight. 
(17) REVENUE LOSS COVERAGE.—The term ‘‘rev-
enue loss coverage’’ means coverage provided under 
section 1107(c). 
(18) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(19) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; and 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(D) any other territory or possession of the 
United States. 
(20) TEMPERATE
JAPONICA
RICE.—The term 
‘‘temperate japonica rice’’ means rice that is grown 
in high altitudes or temperate regions of high lati-
tudes with cooler climate conditions, in the Western 
United States, as determined by the Secretary. 
(21) TRANSITIONAL YIELD.—The term ‘‘transi-
tional yield’’ has the meaning given the term in sec-
tion 502(b) of the Federal Crop Insurance Act (7 
U.S.C. 1502(b)). 
(22) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, when used in a geographical sense, means all 
of the States. 
(23) UNITED
STATES
PREMIUM
FACTOR.—The 
term ‘‘United States Premium Factor’’ means the 
percentage by which the difference in the United 
States loan schedule premiums for Strict Middling 
(SM) 11⁄8-inch upland cotton and for Middling (M) 
13⁄32-inch upland cotton exceeds the difference in the 
applicable premiums for comparable international 
qualities. 
SEC. 1105. BASE ACRES. 
(a) ADJUSTMENT OF BASE ACRES.— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(1) IN GENERAL.—The Secretary shall provide 
for an adjustment, as appropriate, in the base acres 
for covered commodities and cotton for a farm when-
ever any of the following circumstances occurs: 
(A) A conservation reserve contract entered 
into under section 1231 of the Food Security Act 
of 1985 (16 U.S.C. 3831) with respect to the 
farm expires or is voluntarily terminated. 
(B) Cropland is released from coverage 
under a conservation reserve contract by the Sec-
retary. 
(C) The producer has eligible oilseed acreage 
as the result of the Secretary designating addi-
tional oilseeds, which shall be determined in the 
same manner as eligible oilseed acreage under 
section 1101(a)(1)(D) of the Food, Conservation, 
and 
Energy 
Act 
of 
2008 
(7 
U.S.C. 
8711(a)(1)(D)). 
(2) SPECIAL CONSERVATION RESERVE ACREAGE 
PAYMENT RULES.—For the crop year in which a base 
acres adjustment under subparagraph (A) or (B) of 
paragraph (1) is first made, the owner of the farm 
shall elect to receive price loss coverage or revenue loss 
coverage with respect to the acreage added to the farm 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
under this subsection or a prorated payment under 
the conservation reserve contract, but not both. 
(b) PREVENTION OF EXCESS BASE ACRES.— 
(1) REQUIRED REDUCTION.—If the sum of the 
base acres for a farm, together with the acreage de-
scribed in paragraph (2) exceeds the actual cropland 
acreage of the farm, the Secretary shall reduce the 
base acres for 1 or more covered commodities or cot-
ton for the farm so that the sum of the base acres and 
acreage described in paragraph (2) does not exceed 
the actual cropland acreage of the farm. 
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following: 
(A) Any acreage on the farm enrolled in the 
conservation reserve program or wetlands reserve 
program (or successor programs) under chapter 
1 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3830 et seq.). 
(B) Any other acreage on the farm enrolled 
in a Federal conservation program for which 
payments are made in exchange for not pro-
ducing an agricultural commodity on the acre-
age. 
(C) If the Secretary designates additional 
oilseeds, any eligible oilseed acreage, which shall 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
be determined in the same manner as eligible oil-
seed acreage under subsection (a)(1)(C). 
(3) SELECTION OF ACRES.—The Secretary shall 
give the owner of the farm the opportunity to select 
the base acres for a covered commodity or cotton for 
the farm against which the reduction required by 
paragraph (1) will be made. 
(4) EXCEPTION
FOR
DOUBLE-CROPPED
ACRE-
AGE.—In applying paragraph (1), the Secretary shall 
make an exception in the case of double cropping, as 
determined by the Secretary. 
(c) REDUCTION IN BASE ACRES.— 
(1) REDUCTION AT OPTION OF OWNER.— 
(A) IN
GENERAL.—The owner of a farm 
may reduce, at any time, the base acres for any 
covered commodity or cotton for the farm. 
(B) EFFECT OF REDUCTION.—A reduction 
under subparagraph (A) shall be permanent and 
made in a manner prescribed by the Secretary. 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN GENERAL.—The Secretary shall pro-
portionately reduce base acres on a farm for cov-
ered commodities and cotton for land that has 
been subdivided and developed for multiple resi-
dential units or other nonfarming uses if the size 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
of the tracts and the density of the subdivision 
is such that the land is unlikely to return to the 
previous agricultural use, unless the producers 
on the farm demonstrate that the land— 
(i) remains devoted to commercial ag-
ricultural production; or 
(ii) is likely to be returned to the pre-
vious agricultural use. 
(B) REQUIREMENT.—The Secretary shall 
establish procedures to identify land described in 
subparagraph (A). 
SEC. 1106. PAYMENT YIELDS. 
(a) ESTABLISHMENT AND PURPOSE.—For the purpose 
of making payments under this subtitle, the Secretary shall 
provide for the establishment of a yield for each farm for 
any designated oilseed for which a payment yield was not 
established under section 1102 of the Food, Conservation, 
and Energy Act of 2008 (7 U.S.C. 8712) in accordance with 
this section. 
(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS.— 
(1) DETERMINATION OF AVERAGE YIELD.—In the 
case of designated oilseeds, the Secretary shall deter-
mine the average yield per planted acre for the des-
ignated oilseed on a farm for the 1998 through 2001 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
crop years, excluding any crop year in which the 
acreage planted to the designated oilseed was zero. 
(2) ADJUSTMENT FOR PAYMENT YIELD.— 
(A) IN GENERAL.—The payment yield for a 
farm for a designated oilseed shall be equal to the 
product of the following: 
(i) The average yield for the designated 
oilseed determined under paragraph (1). 
(ii) The ratio resulting from dividing 
the national average yield for the designated 
oilseed for the 1981 through 1985 crops by 
the national average yield for the designated 
oilseed for the 1998 through 2001 crops. 
(B) NO NATIONAL AVERAGE YIELD INFOR-
MATION AVAILABLE.—To the extent that national 
average yield information for a designated oil-
seed is not available, the Secretary shall use such 
information as the Secretary determines to be 
fair and equitable to establish a national average 
yield under this section. 
(3) USE
OF
COUNTY
AVERAGE
YIELD.—If the 
yield per planted acre for a crop of a designated oil-
seed for a farm for any of the 1998 through 2001 crop 
years was less than 75 percent of the county yield for 
that designated oilseed, the Secretary shall assign a 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
yield for that crop year equal to 75 percent of the 
county yield for the purpose of determining the aver-
age under paragraph (1). 
(4) NO HISTORIC YIELD DATA AVAILABLE.—In 
the case of establishing yields for designated oilseeds, 
if historic yield data is not available, the Secretary 
shall use the ratio for dry peas calculated under para-
graph (2)(A)(ii) in determining the yields for des-
ignated oilseeds, as determined to be fair and equi-
table by the Secretary. 
(c) EFFECT OF LACK OF PAYMENT YIELD.— 
(1) ESTABLISHMENT BY SECRETARY.—If no pay-
ment yield is otherwise established for a farm for 
which a covered commodity is planted and eligible to 
receive price loss coverage payments, the Secretary 
shall establish an appropriate payment yield for the 
covered commodity on the farm under paragraph (2). 
(2) USE OF SIMILARLY SITUATED FARMS.—To 
establish an appropriate payment yield for a covered 
commodity on a farm as required by paragraph (1), 
the Secretary shall take into consideration the farm 
program payment yields applicable to that covered 
commodity for similarly situated farms. The use of 
such data in an appeal, by the Secretary or by the 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
producer, shall not be subject to any other provision 
of law. 
(d) SINGLE OPPORTUNITY TO UPDATE YIELDS USED 
TO DETERMINE PRICE LOSS COVERAGE PAYMENTS.— 
(1) ELECTION TO UPDATE.—At the sole discre-
tion of the owner of a farm, the owner of a farm shall 
have a 1-time opportunity to update the payment 
yields on a covered commodity-by-covered commodity 
basis that would otherwise be used in calculating any 
price loss coverage payment for covered commodities 
on the farm. 
(2) TIME
FOR
ELECTION.—The election under 
paragraph (1) shall be made at a time and manner 
to be in effect for the 2014 crop year as determined 
by the Secretary. 
(3) METHOD
OF
UPDATING
YIELDS.—If the 
owner of a farm elects to update yields under this 
subsection, the payment yield for a covered com-
modity on the farm, for the purpose of calculating 
price loss coverage payments only, shall be equal to 
90 percent of the average of the yield per planted acre 
for the crop of the covered commodity on the farm for 
the 2008 through 2012 crop years, as determined by 
the Secretary, excluding any crop year in which the 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
acreage planted to the crop of the covered commodity 
was zero. 
(4) USE
OF
COUNTY
AVERAGE
YIELD.—If the 
yield per planted acre for a crop of the covered com-
modity for a farm for any of the 2008 through 2012 
crop years was less than 75 percent of the average of 
the 2008 through 2012 county yield for that com-
modity, the Secretary shall assign a yield for that 
crop year equal to 75 percent of the average of the 
2008 through 2012 county yield for the purposes of 
determining the average yield under paragraph (3). 
(5) EFFECT OF LACK OF PAYMENT YIELD.— 
(A) ESTABLISHMENT BY SECRETARY.—For 
purposes of this subsection, if no payment yield 
is otherwise established for a covered commodity 
on a farm, the Secretary shall establish an ap-
propriate updated payment yield for the covered 
commodity on the farm under subparagraph (B). 
(B) USE OF SIMILARLY SITUATED FARMS.— 
To establish an appropriate payment yield for a 
covered commodity on a farm as required by 
subparagraph (A), the Secretary shall take into 
consideration the farm program payment yields 
applicable to that covered commodity for simi-
larly situated farms. The use of such data in an 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
appeal, by the Secretary or by the producer, 
shall not be subject to any other provision of law. 
SEC. 1107. FARM RISK MANAGEMENT ELECTION. 
(a) IN GENERAL.— 
(1) PAYMENTS REQUIRED.—Except as provided 
in paragraph (2), if the Secretary determines that 
payments are required under subsection (b)(1) or 
(c)(2) for a covered commodity, the Secretary shall 
make payments for that covered commodity available 
under such subsection to producers on a farm pursu-
ant to the terms and conditions of this section. 
(2) PROHIBITION ON PAYMENTS; EXCEPTIONS.— 
Notwithstanding any other provision of this title, a 
producer on a farm may not receive price loss cov-
erage payments or revenue loss coverage payments if 
the sum of the planted acres of covered commodities 
on the farm is 10 acres or less, as determined by the 
Secretary, unless the producer is— 
(A) a socially disadvantaged farmer or 
rancher (as defined in section 355(e) of the Con-
solidated Farm and Rural Development Act (7 
U.S.C. 2003(e))); or 
(B) a limited resource farmer or rancher, as 
defined by the Secretary. 
(b) PRICE LOSS COVERAGE.— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(1) PAYMENTS.—For each of the 2014 through 
2018 crop years, the Secretary shall make price loss 
coverage payments to producers on a farm for a cov-
ered commodity if the Secretary determines that— 
(A) the effective price for the covered com-
modity for the crop year; is less than 
(B) the reference price for the covered com-
modity for the crop year. 
(2) EFFECTIVE PRICE.—The effective price for a 
covered commodity for a crop year shall be the higher 
of— 
(A) the midseason price; or 
(B) the national average loan rate for a 
marketing assistance loan for the covered com-
modity in effect for crop years 2014 through 
2018 under subtitle B. 
(3) PAYMENT RATE.—The payment rate shall be 
equal to the difference between— 
(A) the reference price for the covered com-
modity; and 
(B) the effective price determined under 
paragraph (2) for the covered commodity. 
(4) PAYMENT AMOUNT.—If price loss coverage 
payments are required to be provided under this sub-
section for any of the 2014 through 2018 crop years 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
for a covered commodity, the amount of the price loss 
coverage payment to be paid to the producers on a 
farm for the crop year shall be equal to the product 
obtained by multiplying— 
(A) the payment rate for the covered com-
modity under paragraph (3); 
(B) the payment yield for the covered com-
modity; and 
(C) the payment acres for the covered com-
modity. 
(5) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that price loss coverage 
payments are required to be provided for the covered 
commodity, the payments shall be made beginning 
October 1, or as soon as practicable thereafter, after 
the end of the applicable marketing year for the cov-
ered commodity. 
(6) SPECIAL
RULE
FOR
BARLEY.—In deter-
mining the effective price for barley in paragraph (2), 
the Secretary shall use the all-barley price. 
(7) SPECIAL RULE FOR TEMPERATE JAPONICA 
RICE.—The Secretary shall provide a reference price 
with respect to temperate japonica rice in an amount 
equal to 115 percent of the amount established in sub-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
paragraphs (F) and (G) of section 1104(16) in order 
to reflect price premiums. 
(c) REVENUE LOSS COVERAGE.— 
(1) AVAILABLE AS AN ALTERNATIVE.—As an al-
ternative to receiving price loss coverage payments 
under subsection (b) for a covered commodity, all of 
the owners of the farm may make a one-time, irrev-
ocable election on a covered commodity-by-covered 
commodity basis to receive revenue loss coverage pay-
ments for each covered commodity in accordance with 
this subsection. If any of the owners of the farm make 
different elections on the same covered commodity on 
the farm, all of the owners of the farm shall be deemed 
to have not made the election available under this 
paragraph. 
(2) PAYMENTS.—In the case of owners of a farm 
that make the election described in paragraph (1) for 
a covered commodity, the Secretary shall make rev-
enue loss coverage payments available under this sub-
section for each of the 2014 through 2018 crop years 
if the Secretary determines that— 
(A) the actual county revenue for the crop 
year for the covered commodity; is less than 
(B) the county revenue loss coverage trigger 
for the crop year for the covered commodity. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(3) TIME FOR PAYMENTS.—If the Secretary de-
termines under this subsection that revenue loss cov-
erage payments are required to be provided for the 
covered commodity, payments shall be made begin-
ning October 1, or as soon as practicable thereafter, 
after the end of the applicable marketing year for the 
covered commodity. 
(4) ACTUAL COUNTY REVENUE.—The amount of 
the actual county revenue for a crop year of a covered 
commodity shall be equal to the product obtained by 
multiplying— 
(A) the actual county yield, as determined 
by the Secretary, for each planted acre for the 
crop year for the covered commodity; and 
(B) the higher of— 
(i) the midseason price; or 
(ii) the national average loan rate for 
a marketing assistance loan for the covered 
commodity in effect for crop years 2014 
through 2018 under subtitle B. 
(5) COUNTY
REVENUE
LOSS
COVERAGE
TRIG-
GER.— 
(A) IN GENERAL.—The county revenue loss 
coverage trigger for a crop year for a covered 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(B) the payment acres of the covered com-
modity on the farm. 
(8) DUTIES OF THE SECRETARY.—In providing 
revenue loss coverage payments under this subsection, 
the Secretary— 
(A) shall ensure that producers on a farm 
do not reconstitute the farm of the producers to 
void or change the election made under para-
graph (1); 
(B) to the maximum extent practicable, 
shall use all available information and analysis, 
including data mining, to check for anomalies in 
the provision of revenue loss coverage payments; 
(C) to the maximum extent practicable, 
shall calculate a separate county revenue loss 
coverage trigger for irrigated and nonirrigated 
covered commodities and a separate actual coun-
ty revenue for irrigated and nonirrigated covered 
commodities; 
(D) shall assign a benchmark county yield 
for each planted acre for the crop year for the 
covered commodity on the basis of the yield his-
tory of representative farms in the State, region, 
or crop reporting district, as determined by the 
Secretary, if— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(i) the Secretary cannot establish the 
benchmark county yield for each planted 
acre for a crop year for a covered com-
modity in the county in accordance with 
paragraph (5); or 
(ii) the yield determined under para-
graph (5) is an unrepresentative average 
yield for the county (as determined by the 
Secretary); and 
(E) to the maximum extent practicable, 
shall ensure that in order to be eligible for a 
payment under this subsection, the producers on 
the farm suffered an actual loss on the covered 
commodity for the crop year for which payment 
is sought. 
(d) ANNUAL REPORT.—The Secretary shall submit to 
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report annually containing an 
evaluation of the impact of price loss coverage and revenue 
loss coverage— 
(1) on the planting, production, price, and ex-
port of covered commodities; and 
(2) on the cost of each commodity program. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 1108. PRODUCER AGREEMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a 
farm may receive payments under this subtitle with 
respect to the farm, the producers shall agree, during 
the crop year for which the payments are made and 
in exchange for the payments— 
(A) to comply with applicable conservation 
requirements under subtitle B of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.); 
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title XII 
of that Act (16 U.S.C. 3821 et seq.); and 
(C) to effectively control noxious weeds and 
otherwise maintain the land in accordance with 
sound agricultural practices, as determined by 
the Secretary. 
(2) COMPLIANCE.—The Secretary may issue such 
rules as the Secretary considers necessary to ensure 
producer compliance with the requirements of para-
graph (1). 
(3) MODIFICATION.—At the request of the trans-
feree or owner, the Secretary may modify the require-
ments of this subsection if the modifications are con-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
sistent with the objectives of this subsection, as deter-
mined by the Secretary. 
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 
(1) TERMINATION.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), a transfer of (or change in) the 
interest of the producers on a farm for which 
payments under this subtitle are provided shall 
result in the termination of the payments, unless 
the transferee or owner of the acreage agrees to 
assume all obligations under subsection (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a 
payment under this subtitle dies, becomes incom-
petent, or is otherwise unable to receive the payment, 
the Secretary shall make the payment in accordance 
with rules issued by the Secretary. 
(c) ACREAGE REPORTS.—As a condition on the receipt 
of any benefits under this subtitle or subtitle B, the Sec-
retary shall require producers on a farm to submit to the 
Secretary annual acreage reports with respect to all crop-
land on the farm. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(d) TENANTS AND SHARECROPPERS.—In carrying out 
this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and sharecroppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of payments made under this subtitle 
among the producers on a farm on a fair and equitable 
basis. 
SEC. 1109. PERIOD OF EFFECTIVENESS. 
This subtitle shall be effective beginning with the 2014 
crop year of each covered commodity through the 2018 crop 
year. 
Subtitle B—Marketing Loans 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) DEFINITION OF LOAN COMMODITY.—In this sub-
title, the term ‘‘loan commodity’’ means wheat, corn, grain 
sorghum, barley, oats, upland cotton, extra long staple cot-
ton, long grain rice, medium grain rice, peanuts, soybeans, 
other oilseeds, graded wool, nongraded wool, mohair, honey, 
dry peas, lentils, small chickpeas, and large chickpeas. 
(b) NONRECOURSE LOANS AVAILABLE.— 
(1) IN GENERAL.—For each of the 2014 through 
2018 crops of each loan commodity, the Secretary 
shall make available to producers on a farm non-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
recourse marketing assistance loans for loan commod-
ities produced on the farm. 
(2) TERMS AND CONDITIONS.—The marketing as-
sistance loans shall be made under terms and condi-
tions that are prescribed by the Secretary and at the 
loan rate established under section 1202 for the loan 
commodity. 
(c) ELIGIBLE PRODUCTION.—The producers on a farm 
shall be eligible for a marketing assistance loan under sub-
section (b) for any quantity of a loan commodity produced 
on the farm. 
(d) COMPLIANCE WITH CONSERVATION
AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (b), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland 
protection requirements under subtitle C of title XII of that 
Act (16 U.S.C. 3821 et seq.) during the term of the loan. 
(e) SPECIAL RULES FOR PEANUTS.— 
(1) IN GENERAL.—This subsection shall apply 
only to producers of peanuts. 
(2) OPTIONS
FOR
OBTAINING
LOAN.—A mar-
keting assistance loan under this section, and loan de-
ficiency payments under section 1205, may be ob-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
tained at the option of the producers on a farm 
through— 
(A) a designated marketing association or 
marketing cooperative of producers that is ap-
proved by the Secretary; or 
(B) the Farm Service Agency. 
(3) STORAGE OF LOAN PEANUTS.—As a condi-
tion on the approval by the Secretary of an indi-
vidual or entity to provide storage for peanuts for 
which a marketing assistance loan is made under this 
section, the individual or entity shall agree— 
(A) to provide the storage on a nondiscrim-
inatory basis; and 
(B) to comply with such additional require-
ments as the Secretary considers appropriate to 
accomplish the purposes of this section and pro-
mote fairness in the administration of the bene-
fits of this section. 
(4) STORAGE, 
HANDLING, 
AND
ASSOCIATED 
COSTS.— 
(A) IN GENERAL.—To ensure proper storage 
of peanuts for which a loan is made under this 
section, the Secretary shall pay handling and 
other associated costs (other than storage costs) 
incurred at the time at which the peanuts are 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
placed under loan, as determined by the Sec-
retary. 
(B) REDEMPTION AND FORFEITURE.—The 
Secretary shall— 
(i) require the repayment of handling 
and other associated costs paid under sub-
paragraph (A) for all peanuts pledged as 
collateral for a loan that is redeemed under 
this section; and 
(ii) pay storage, handling, and other 
associated costs for all peanuts pledged as 
collateral that are forfeited under this sec-
tion. 
(5) MARKETING.—A marketing association or co-
operative may market peanuts for which a loan is 
made under this section in any manner that conforms 
to consumer needs, including the separation of pea-
nuts by type and quality. 
(6) REIMBURSABLE AGREEMENTS AND PAYMENT 
OF ADMINISTRATIVE EXPENSES.—The Secretary may 
implement any reimbursable agreements or provide 
for the payment of administrative expenses under this 
subsection only in a manner that is consistent with 
those activities in regard to other loan commodities. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 
ASSISTANCE LOANS. 
(a) IN GENERAL.—For purposes of each of the 2014 
through 2018 crop years, the loan rate for a marketing as-
sistance loan under section 1201 for a loan commodity shall 
be equal to the following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
(3) In the case of grain sorghum, $1.95 per bush-
el. 
(4) In the case of barley, $1.95 per bushel. 
(5) In the case of oats, $1.39 per bushel. 
(6) In the case of base quality of upland cotton, 
for the 2014 and each subsequent crop year, the sim-
ple average of the adjusted prevailing world price for 
the 2 immediately preceding marketing years, as de-
termined by the Secretary and announced October 1 
preceding the next domestic plantings, but in no case 
less than $0.47 per pound or more than $0.52 per 
pound. 
(7) In the case of extra long staple cotton, 
$0.7977 per pound. 
(8) In the case of long grain rice, $6.50 per hun-
dredweight. 
(9) In the case of medium grain rice, $6.50 per 
hundredweight. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(10) In the case of soybeans, $5.00 per bushel. 
(11) In the case of other oilseeds, $10.09 per hun-
dredweight for each of the following kinds of oilseeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Sec-
retary. 
(12) In the case of dry peas, $5.40 per hundred-
weight. 
(13) In the case of lentils, $11.28 per hundred-
weight. 
(14) In the case of small chickpeas, $7.43 per 
hundredweight. 
(15) In the case of large chickpeas, $11.28 per 
hundredweight. 
(16) In the case of graded wool, $1.15 per pound. 
(17) In the case of nongraded wool, $0.40 per 
pound. 
(18) In the case of mohair, $4.20 per pound. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(19) In the case of honey, $0.69 per pound. 
(20) In the case of peanuts, $355 per ton. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-
SEEDS.—The Secretary shall establish a single loan rate in 
each county for each kind of other oilseeds described in sub-
section (a)(11). 
SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan com-
modity, a marketing assistance loan under section 1201 
shall have a term of 9 months beginning on the first day 
of the first month after the month in which the loan is 
made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may 
not extend the term of a marketing assistance loan for any 
loan commodity. 
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the 
producers on a farm to repay a marketing assistance loan 
under section 1201 for a loan commodity (other than up-
land cotton, long grain rice, medium grain rice, extra long 
staple cotton, peanuts and confectionery and each other 
kind of sunflower seed (other than oil sunflower seed)) at 
a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); 
(2) a rate (as determined by the Secretary) 
that— 
(A) is calculated based on average market 
prices for the loan commodity during the pre-
ceding 30-day period; and 
(B) will minimize discrepancies in mar-
keting loan benefits across State boundaries and 
across county boundaries; or 
(3) a rate that the Secretary may develop using 
alternative methods for calculating a repayment rate 
for a loan commodity that the Secretary determines 
will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
the commodity by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; 
(D) allow the commodity produced in the 
United States to be marketed freely and competi-
tively, both domestically and internationally; 
and 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(d) PREVAILING WORLD MARKET PRICE.—For pur-
poses of this section and section 1207, the Secretary shall 
prescribe by regulation— 
(1) a formula to determine the prevailing world 
market price for each of upland cotton, long grain 
rice, and medium grain rice; and 
(2) a mechanism by which the Secretary shall 
announce periodically those prevailing world market 
prices. 
(e) ADJUSTMENT
OF PREVAILING WORLD MARKET 
PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND ME-
DIUM GRAIN RICE.— 
(1) RICE.—The prevailing world market price 
for long grain rice and medium grain rice determined 
under subsection (d) shall be adjusted to United 
States quality and location. 
(2) COTTON.—The prevailing world market price 
for upland cotton determined under subsection (d)— 
(A) shall be adjusted to United States qual-
ity and location, with the adjustment to in-
clude— 
(i) a reduction equal to any United 
States Premium Factor for upland cotton of 
a quality higher than Middling (M) 13⁄32- 
inch; and 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(ii) the average costs to market the 
commodity, including average transpor-
tation costs, as determined by the Secretary; 
and 
(B) may be further adjusted, during the pe-
riod beginning on the date of enactment of this 
Act and ending on July 31, 2019, if the Sec-
retary determines the adjustment is necessary— 
(i) to minimize potential loan forfeit-
ures; 
(ii) to minimize the accumulation of 
stocks of upland cotton by the Federal Gov-
ernment; 
(iii) to ensure that upland cotton pro-
duced in the United States can be marketed 
freely and competitively, both domestically 
and internationally; and 
(iv) to ensure an appropriate transi-
tion between current-crop and forward-crop 
price quotations, except that the Secretary 
may use forward-crop price quotations 
prior to July 31 of a marketing year only 
if— 
(I) there are insufficient current- 
crop price quotations; and 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(II) 
the 
forward-crop 
price 
quotation is the lowest such quotation 
available. 
(3) GUIDELINES
FOR
ADDITIONAL
ADJUST-
MENTS.—In making adjustments under this sub-
section, the Secretary shall establish a mechanism for 
determining and announcing the adjustments in 
order to avoid undue disruption in the United States 
market. 
(f) REPAYMENT RATES
FOR CONFECTIONERY
AND 
OTHER KINDS
OF SUNFLOWER SEEDS.—The Secretary 
shall permit the producers on a farm to repay a marketing 
assistance loan under section 1201 for confectionery and 
each other kind of sunflower seed (other than oil sunflower 
seed) at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effective 
for each of the 2014 through 2018 crop years, the Secretary 
shall make cotton storage payments available in the same 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
manner, and at the same rates as the Secretary provided 
storage payments for the 2006 crop of cotton, except that 
the rates shall be reduced by 10 percent. 
(h) REPAYMENT RATE FOR PEANUTS.—The Secretary 
shall permit producers on a farm to repay a marketing as-
sistance loan for peanuts under section 1201 at a rate that 
is the lesser of— 
(1) the loan rate established for peanuts under 
section 1202(a)(20), plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) a rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
peanuts by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and 
(D) allow peanuts produced in the United 
States to be marketed freely and competitively, 
both domestically and internationally. 
(i) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT 
RATES.— 
(1) ADJUSTMENT AUTHORITY.—In the event of a 
severe disruption to marketing, transportation, or re-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
lated infrastructure, the Secretary may modify the re-
payment rate otherwise applicable under this section 
for marketing assistance loans under section 1201 for 
a loan commodity. 
(2) DURATION.—Any adjustment made under 
paragraph (1) in the repayment rate for marketing 
assistance loans for a loan commodity shall be in ef-
fect on a short-term and temporary basis, as deter-
mined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— 
(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary may make loan deficiency 
payments available to producers on a farm that, al-
though eligible to obtain a marketing assistance loan 
under section 1201 with respect to a loan commodity, 
agree to forgo obtaining the loan for the commodity 
in return for loan deficiency payments under this sec-
tion. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) MARKETING ASSISTANCE LOANS.—Sub-
ject to subparagraph (B), nongraded wool in the 
form of unshorn pelts and hay and silage derived 
from a loan commodity are not eligible for a 
marketing assistance loan under section 1201. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(B) LOAN DEFICIENCY PAYMENT.—Effective 
for the 2014 through 2018 crop years, the Sec-
retary may make loan deficiency payments 
available under this section to producers on a 
farm that produce unshorn pelts or hay and si-
lage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a 
loan commodity or commodity referred to in subsection 
(a)(2) shall be equal to the product obtained by multi-
plying— 
(1) the payment rate determined under sub-
section (c) for the commodity; by 
(2) the quantity of the commodity produced by 
the eligible producers, excluding any quantity for 
which the producers obtain a marketing assistance 
loan under section 1201. 
(c) PAYMENT RATE.— 
(1) IN GENERAL.—In the case of a loan com-
modity, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for the loan commodity; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00058
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(2) UNSHORN PELTS.—In the case of unshorn 
pelts, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for ungraded wool; exceeds 
(B) the rate at which a marketing assist-
ance loan for ungraded wool may be repaid 
under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or si-
lage derived from a loan commodity, the payment 
rate shall be the amount by which— 
(A) the loan rate established under section 
1202 for the loan commodity from which the hay 
or silage is derived; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.— 
This section shall not apply with respect to extra long staple 
cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETER-
MINATION.—The Secretary shall determine the amount of 
the loan deficiency payment to be made under this section 
to the producers on a farm with respect to a quantity of 
a loan commodity or commodity referred to in subsection 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00059
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(a)(2) using the payment rate in effect under subsection (c) 
as of the date the producers request the payment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN GENERAL.—Effective for the 2014 through 
2018 crop years, in the case of a producer that would 
be eligible for a loan deficiency payment under sec-
tion 1205 for wheat, barley, or oats, but that elects to 
use acreage planted to the wheat, barley, or oats for 
the grazing of livestock, the Secretary shall make a 
payment to the producer under this section if the pro-
ducer enters into an agreement with the Secretary to 
forgo any other harvesting of the wheat, barley, or 
oats on that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effective 
for the 2014 through 2018 crop years, with respect to 
a producer on a farm that uses acreage planted to 
triticale for the grazing of livestock, the Secretary 
shall make a payment to the producer under this sec-
tion if the producer enters into an agreement with the 
Secretary to forgo any other harvesting of triticale on 
that acreage. 
(b) PAYMENT AMOUNT.— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00060
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(1) IN GENERAL.—The amount of a payment 
made under this section to a producer on a farm de-
scribed in subsection (a)(1) shall be equal to the 
amount determined by multiplying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect, as of the 
date of the agreement, for the county in which 
the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of wheat, 
barley, or oats; and 
(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to that loan com-
modity on the farm; or 
(II) in the case of a farm without a 
payment yield for that loan commodity, an 
appropriate yield established by the Sec-
retary in a manner consistent with section 
1106(c) of this Act. 
(2) GRAZING
OF
TRITICALE
ACREAGE.—The 
amount of a payment made under this section to a 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00061
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
producer on a farm described in subsection (a)(2) 
shall be equal to the amount determined by multi-
plying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect for wheat, 
as of the date of the agreement, for the county in 
which the farm is located; by 
(B) the payment quantity determined by 
multiplying— 
(i) the quantity of the grazed acreage 
on the farm with respect to which the pro-
ducer elects to forgo harvesting of triticale; 
and 
(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to wheat on the 
farm; or 
(II) in the case of a farm without a 
payment yield for wheat, an appropriate 
yield established by the Secretary in a man-
ner consistent with section 1106(c) of this 
Act. 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(1) TIME AND MANNER.—A payment under this 
section shall be made at the same time and in the 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
same manner as loan deficiency payments are made 
under section 1205. 
(2) AVAILABILITY.— 
(A) IN GENERAL.—The Secretary shall es-
tablish an availability period for the payments 
authorized by this section. 
(B) CERTAIN COMMODITIES.—In the case of 
wheat, barley, and oats, the availability period 
shall be consistent with the availability period 
for the commodity established by the Secretary 
for marketing assistance loans authorized by this 
subtitle. 
(d) PROHIBITION ON CROP INSURANCE INDEMNITY OR 
NONINSURED CROP ASSISTANCE.—A 2014 through 2018 
crop of wheat, barley, oats, or triticale planted on acreage 
that a producer elects, in the agreement required by sub-
section (a), to use for the grazing of livestock in lieu of any 
other harvesting of the crop shall not be eligible for an in-
demnity 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). 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00063
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In 
this subsection, the term ‘‘special import quota’’ 
means a quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN
GENERAL.—The President shall 
carry out an import quota program during the 
period beginning on August 1, 2014, and ending 
on July 31, 2019, as provided in this subsection. 
(B) PROGRAM
REQUIREMENTS.—Whenever 
the Secretary determines and announces that for 
any consecutive 4-week period, the Friday 
through Thursday average price quotation for the 
lowest-priced United States growth, as quoted for 
Middling (M) 13⁄32-inch cotton, delivered to a de-
finable and significant international market, as 
determined by the Secretary, exceeds the pre-
vailing world market price, there shall imme-
diately be in effect a special import quota. 
(3) QUANTITY.—The quota shall be equal to the 
consumption during a 1-week period of cotton by do-
mestic mills at the seasonally adjusted average rate of 
the most recent 3 months for which official data of the 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00064
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
Department of Agriculture are available or, in the ab-
sence of sufficient data, as estimated by the Secretary. 
(4) APPLICATION.—The quota shall apply to up-
land cotton purchased not later than 90 days after the 
date of the Secretary’s announcement under para-
graph (2) and entered into the United States not later 
than 180 days after that date. 
(5) OVERLAP.—A special quota period may be 
established that overlaps any existing quota period if 
required by paragraph (2), except that a special 
quota period may not be established under this sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL
TARIFF
TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 1974 
(19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(7) LIMITATION.—The quantity of cotton entered 
into the United States during any marketing year 
under the special import quota established under this 
subsection may not exceed the equivalent of 10 week’s 
consumption of upland cotton by domestic mills at 
the seasonally adjusted average rate of the 3 months 
immediately preceding the first special import quota 
established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
(1) DEFINITIONS.—In this subsection: 
(A) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption of 
cotton during the most recent 3 months for 
which official data of the Department of Ag-
riculture are available or, in the absence of 
sufficient data, as estimated by the Sec-
retary; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton during the preceding 6 marketing 
years; or 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(II) cumulative exports of upland 
cotton plus outstanding export sales for 
the marketing year in which the quota 
is established. 
(B) LIMITED GLOBAL IMPORT QUOTA.—The 
term ‘‘limited global import quota’’ means a 
quantity of imports that is not subject to the 
over-quota tariff rate of a tariff-rate quota. 
(C) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Department 
of Agriculture— 
(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; and 
(iii) imports to the latest date avail-
able during the marketing year. 
(2) PROGRAM.—The President shall carry out an 
import quota program that provides that whenever 
the Secretary determines and announces that the av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot 
markets for a month exceeded 130 percent of the aver-
age price of the quality of cotton in the markets for 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
the preceding 36 months, notwithstanding any other 
provision of law, there shall immediately be in effect 
a limited global import quota subject to the following 
conditions: 
(A) QUANTITY.—The quantity of the quota 
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which official data of the Department of Ag-
riculture are available or, in the absence of suffi-
cient data, as estimated by the Secretary. 
(B) QUANTITY IF PRIOR QUOTA.—If a quota 
has been established under this subsection during 
the preceding 12 months, the quantity of the 
quota next established under this subsection shall 
be the smaller of 21 days of domestic mill con-
sumption calculated under subparagraph (A) or 
the quantity required to increase the supply to 
130 percent of the demand. 
(C) PREFERENTIAL TARIFF TREATMENT.— 
The quantity under a limited global import 
quota shall be considered to be an in-quota quan-
tity for purposes of— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(i) section 213(d) of the Caribbean 
Basin Economic Recovery Act (19 U.S.C. 
2703(d)); 
(ii) section 204 of the Andean Trade 
Preference Act (19 U.S.C. 3203); 
(iii) section 503(d) of the Trade Act of 
1974 (19 U.S.C. 2463(d)); and 
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(D) QUOTA ENTRY PERIOD.—When a quota 
is established under this subsection, cotton may 
be entered under the quota during the 90-day pe-
riod beginning on the date the quota is estab-
lished by the Secretary. 
(3) NO OVERLAP.—Notwithstanding paragraph 
(2), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (a). 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary shall, on a monthly basis, make economic 
adjustment assistance available to domestic users of 
upland cotton in the form of payments for all docu-
mented use of that upland cotton during the previous 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
monthly period regardless of the origin of the upland 
cotton. 
(2) VALUE OF ASSISTANCE.—Effective beginning 
on August 1, 2013, the value of the assistance pro-
vided under paragraph (1) shall be 3 cents per pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made 
available only to domestic users of upland cotton that 
certify that the assistance shall be used only to ac-
quire, construct, install, modernize, develop, convert, 
or expand land, plant, buildings, equipment, facili-
ties, or machinery. 
(4) REVIEW OR AUDIT.—The Secretary may con-
duct such review or audit of the records of a domestic 
user under this subsection as the Secretary determines 
necessary to carry out this subsection. 
(5) IMPROPER USE OF ASSISTANCE.—If the Sec-
retary determines, after a review or audit of the 
records of the domestic user, that economic adjustment 
assistance under this subsection was not used for the 
purposes specified in paragraph (3), the domestic user 
shall be— 
(A) liable for the repayment of the assist-
ance to the Secretary, plus interest, as deter-
mined by the Secretary; and 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(B) ineligible to receive assistance under 
this subsection for a period of 1 year following 
the determination of the Secretary. 
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 
LONG STAPLE COTTON. 
(a) COMPETITIVENESS PROGRAM.—Notwithstanding 
any other provision of law, during the period beginning on 
the date of enactment of this Act through July 31, 2019, 
the Secretary shall carry out a program— 
(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple cotton 
produced in the United States; and 
(3) to ensure that extra long staple cotton pro-
duced in the United States remains competitive in 
world markets. 
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 
the program, the Secretary shall make payments available 
under this section whenever— 
(1) for a consecutive 4-week period, the world 
market price for the lowest priced competing growth 
of extra long staple cotton (adjusted to United States 
quality and location and for other factors affecting 
the competitiveness of such cotton), as determined by 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
the Secretary, is below the prevailing United States 
price for a competing growth of extra long staple cot-
ton; and 
(2) the lowest priced competing growth of extra 
long staple cotton (adjusted to United States quality 
and location and for other factors affecting the com-
petitiveness of such cotton), as determined by the Sec-
retary, is less than 134 percent of the loan rate for 
extra long staple cotton. 
(c) ELIGIBLE RECIPIENTS.—The Secretary shall make 
payments available under this section to domestic users of 
extra long staple cotton produced in the United States and 
exporters of extra long staple cotton produced in the United 
States that enter into an agreement with the Commodity 
Credit Corporation to participate in the program under 
this section. 
(d) PAYMENT AMOUNT.—Payments under this section 
shall be based on the amount of the difference in the prices 
referred to in subsection (b)(1) during the fourth week of 
the consecutive 4-week period multiplied by the amount of 
documented purchases by domestic users and sales for ex-
port by exporters made in the week following such a con-
secutive 4-week period. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
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 content in 
excess of Commodity Credit Corporation standards 
for marketing assistance loans made by the Secretary 
under section 1201. 
(2) RECOURSE LOANS AVAILABLE.—For each of 
the 2014 through 2018 crops of corn and grain sor-
ghum, the Secretary shall make available recourse 
loans, as determined by the Secretary, to producers on 
a farm that— 
(A) normally harvest all or a portion of 
their crop of corn or grain sorghum in a high 
moisture state; 
(B) present— 
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill, 
distillery, or other similar entity approved 
by the Secretary, pursuant to regulations 
issued by the Secretary; or 
(ii) field or other physical measure-
ments of the standing or stored crop in re-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
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 reasonable 
proximity of harvest operation; 
(C) certify that the producers on the farm 
were the owners of the feed grain at the time of 
delivery to, and that the quantity to be placed 
under loan under this subsection was in fact 
harvested on the farm and delivered to, a feedlot, 
feed mill, or commercial or on-farm high-mois-
ture storage facility, or to a facility maintained 
by the users of corn and grain sorghum in a 
high moisture state; and 
(D) comply with deadlines established by 
the Secretary for harvesting the corn or grain 
sorghum and submit applications for loans 
under this subsection within deadlines estab-
lished by the Secretary. 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 
A loan under this subsection shall be made on a 
quantity of corn or grain sorghum of the same crop 
acquired by the producer equivalent to a quantity de-
termined by multiplying— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(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 payment 
yield used to make payments under subtitle A or 
the actual yield on a field, as determined by the 
Secretary, that is similar to the field from which 
the corn or grain sorghum was obtained. 
(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For each of the 2014 through 2018 crops of upland 
cotton and extra long staple cotton, the Secretary shall make 
available recourse seed cotton loans, as determined by the 
Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate estab-
lished for the commodity by the Secretary, plus interest (de-
termined in accordance with section 163 of the Federal Ag-
riculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—Subject to subsection 
(e), the Secretary may make appropriate adjustments in 
the loan rates for any loan commodity (other than cotton) 
for differences in grade, type, quality, location, and other 
factors. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(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 de-
termined in accordance with this subtitle and subtitle C. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
(1) IN GENERAL.—The Secretary may establish 
loan rates for a crop for producers in individual 
counties in a manner that results in the lowest loan 
rate being 95 percent of the national average loan 
rate, if those loan rates do not result in an increase 
in outlays. 
(2) PROHIBITION.—Adjustments under this sub-
section shall not result in an increase in the national 
average loan rate for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN GENERAL.—The Secretary may make ap-
propriate adjustments in the loan rate for cotton for 
differences in quality factors. 
(2) TYPES OF ADJUSTMENTS.—Loan rate adjust-
ments under paragraph (1) may include— 
(A) the use of non-spot market price data, 
in addition to spot market price data, that 
would enhance the accuracy of the price informa-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
tion 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 artifi-
cial splits in the calculations of the premiums or 
discounts; and 
(C) such other adjustments as the Secretary 
determines appropriate, after consultations con-
ducted in accordance with paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton indus-
try. 
(B) INAPPLICABILITY
OF
FEDERAL
ADVI-
SORY
COMMITTEE
ACT.—The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply 
to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary 
may review the operation of the upland cotton quality 
adjustments implemented pursuant to this subsection 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
and may make further adjustments to the administra-
tion of the loan program for upland cotton, by revok-
ing or revising any adjustment taken under para-
graph (2). 
(e) RICE.—The Secretary shall not make adjustments 
in the loan rates for long grain rice and medium grain 
rice, except for differences in grade and quality (including 
milling yields). 
Subtitle C—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION OF CURRENT PROGRAM AND LOAN 
RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the Fed-
eral Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘each of the 2012 
through 2018 crop years’’. 
(2) SUGAR
BEETS.—Section 156(b)(2) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(b)(2)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
(3) EFFECTIVE PERIOD.—Section 156(i) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(i)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(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 ‘‘2012’’ and in-
serting ‘‘2018’’. 
(2) EFFECTIVE PERIOD.—Section 359l(a) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ll(a)) is amended by striking ‘‘2012’’ and insert-
ing ‘‘2018’’. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN PROTECTION 
AND DAIRY MARKET STABILIZATION PROGRAMS 
SEC. 1401. DEFINITIONS. 
In this part: 
(1) ACTUAL
DAIRY
PRODUCER
MARGIN.—The 
term ‘‘actual dairy producer margin’’ means the dif-
ference between the all-milk price and the average feed 
cost, as calculated under section 1402. 
(2) ALL-MILK PRICE.—The term ‘‘all-milk price’’ 
means the average price received, per hundredweight 
of milk, by dairy producers for all milk sold to plants 
and dealers in the United States, as determined by 
the Secretary. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(3) ANNUAL PRODUCTION HISTORY.—The term 
‘‘annual production history’’ means the production 
history determined for a participating dairy producer 
under section 1413(b) whenever the dairy producer 
purchases supplemental margin protection. 
(4) AVERAGE FEED COST.—The term ‘‘average 
feed cost’’ means the average cost of feed used by a 
dairy operation to produce a hundredweight of milk, 
determined under section 1402 using the sum of the 
following: 
(A) The product determined by multiplying 
1.0728 by the price of corn per bushel. 
(B) The product determined by multiplying 
0.00735 by the price of soybean meal per ton. 
(C) The product determined by multiplying 
0.0137 by the price of alfalfa hay per ton. 
(5) BASIC
PRODUCTION
HISTORY.—The term 
‘‘basic production history’’ means the production his-
tory determined for a participating dairy producer 
under section 1413(a) for provision of basic margin 
protection. 
(6) CONSECUTIVE
TWO-MONTH
PERIOD.—The 
term ‘‘consecutive two-month period’’ refers to the 
two-month period consisting of the months of Janu-
ary and February, March and April, May and June, 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
July and August, September and October, or Novem-
ber and December, respectively. 
(7) DAIRY PRODUCER.— 
(A) IN GENERAL.—Subject to subparagraph 
(B), the term ‘‘dairy producer’’ means an indi-
vidual or entity that directly or indirectly (as 
determined by the Secretary)— 
(i) shares in the risk of producing 
milk; and 
(ii) makes contributions (including 
land, labor, management, equipment, or 
capital) to the dairy operation of the indi-
vidual or entity that are at least commensu-
rate with the share of the individual or en-
tity of the proceeds of the operation. 
(B) 
ADDITIONAL
OWNERSHIP
STRUC-
TURES.—The Secretary shall determine addi-
tional ownership structures to be covered by the 
definition of dairy producer. 
(8) HANDLER.— 
(A) IN
GENERAL.—The term ‘‘handler’’ 
means the initial individual or entity making 
payment to a dairy producer for milk produced 
in the United States and marketed for commer-
cial use. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(B) PRODUCER-HANDLER.—The term in-
cludes a ‘‘producer-handler’’ when the producer 
satisfies the definition in subparagraph (A). 
(9) MARGIN PROTECTION PROGRAM.—The term 
‘‘margin protection program’’ means the dairy pro-
ducer margin protection program required by subpart 
A. 
(10) PARTICIPATING
DAIRY
PRODUCER.—The 
term ‘‘participating dairy producer’’ means a dairy 
producer that— 
(A) signs up under section 1412 to partici-
pate in the margin protection program under 
subpart A; and 
(B) as a result, also participates in the sta-
bilization program under subpart B. 
(11) STABILIZATION PROGRAM.—The term ‘‘sta-
bilization program’’ means the dairy market sta-
bilization program required by subpart B for all par-
ticipating dairy producers. 
(12) STABILIZATION PROGRAM BASE.—The term 
‘‘stabilization program base’’, with respect to a par-
ticipating dairy producer, means the stabilization 
program base calculated for the producer under sec-
tion 1431(b). 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(13) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, in a geographical sense, means the 50 States, 
the District of Columbia, American Samoa, Guam, 
the Commonwealth of the Northern Mariana Islands, 
the Commonwealth of Puerto Rico, the Virgin Islands 
of the United States, and any other territory or pos-
session of the United States. 
SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC-
TUAL DAIRY PRODUCER MARGINS. 
(a) CALCULATION OF AVERAGE FEED COST.—The Sec-
retary shall calculate the national average feed cost for each 
month using the following data: 
(1) The price of corn for a month shall be the 
price received during that month by farmers in the 
United States for corn, as reported in the monthly 
Agricultural Prices report by the Secretary. 
(2) The price of soybean meal for a month shall 
be the central Illinois price for soybean meal, as re-
ported in the Market News-Monthly Soybean Meal 
Price Report by the Secretary. 
(3) The price of alfalfa hay for a month shall be 
the price received during that month by farmers in 
the United States for alfalfa hay, as reported in the 
monthly Agricultural Prices report by the Secretary. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(2) if the dairy producer purchases supplemental 
margin protection under section 1415, supplemental 
margin protection payments under such section. 
(b) SIGN-UP PROCESS.— 
(1) IN GENERAL.—The Secretary shall allow all 
interested dairy producers to sign up to participate 
in the margin protection program. The Secretary 
shall specify the manner and form by which a dairy 
producer must sign up to participate in the margin 
protection program. 
(2) TREATMENT
OF
MULTI-PRODUCER
OPER-
ATIONS.—If a dairy operation consists of more than 
one dairy producer, all of the dairy producers of the 
operation shall be treated as a single dairy producer 
for purposes of— 
(A) registration to receive basic margin pro-
tection and purchase supplemental margin pro-
tection; 
(B) payment of the administrative fee 
under subsection (e) and producer premiums 
under section 1415; and 
(C) participation in the stabilization pro-
gram under subpart B. 
(3) TREATMENT OF PRODUCERS WITH MULTIPLE 
DAIRY
OPERATIONS.—If a dairy producer operates 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
two or more dairy operations, each dairy operation 
of the producer shall require a separate registration 
to receive basic margin protection and purchase sup-
plemental margin protection. Only those dairy oper-
ations so registered shall be subject to the stabilization 
program. 
(c) TIME FOR SIGN UP.— 
(1) EXISTING DAIRY PRODUCERS.—During the 
one-year period beginning on the date of the initi-
ation of the sign-up period for the margin protection 
program, a dairy producer that is actively engaged in 
a dairy operation as of such date may sign up with 
the Secretary— 
(A) to receive basic margin protection; and 
(B) if the producer elects, to purchase sup-
plemental margin protection. 
(2) NEW ENTRANTS.—A dairy producer that has 
no existing interest in a dairy operation as of the 
date of the initiation of the sign-up period for the 
margin protection program, but that, after such date, 
establishes a new dairy operation, may sign up with 
the Secretary during the one year period beginning 
on the date on which the dairy operation first mar-
kets milk commercially— 
(A) to receive basic margin protection; and 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(B) if the producer elects, to purchase sup-
plemental margin protection. 
(d) RETROACTIVITY PROVISION.— 
(1) NOTICE OF AVAILABILITY OF RETROACTIVE 
PROTECTION.—Not later than 30 days after the effec-
tive date of this subtitle, the Secretary shall publish 
a notice in the Federal Register to inform dairy pro-
ducers of the availability of retroactive basic margin 
protection and retroactive supplemental margin pro-
tection, subject to the condition that interested pro-
ducers must file a notice of intent (in such form and 
manner as the Secretary specifies in the Federal Reg-
ister notice)— 
(A) to participate in the margin protection 
program and receive basic margin protection; 
and 
(B) at the election of the producer under 
paragraph (3), to also obtain supplemental mar-
gin protection. 
(2) RETROACTIVE BASIC MARGIN PROTECTION.— 
(A) AVAILABILITY.—If a dairy producer 
files a notice of intent under paragraph (1) to 
participate in the margin protection program 
before the initiation of the sign-up period for the 
margin protection program and subsequently 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
signs up for the margin protection program, the 
producer shall receive basic margin protection 
retroactive to the effective date of this subtitle. 
(B) DURATION.—Retroactive basic margin 
protection under this paragraph for a dairy pro-
ducer shall apply from the effective date of this 
subtitle until the date on which the producer 
signs up for the margin protection program. 
(3) RETROACTIVE SUPPLEMENTAL MARGIN PRO-
TECTION.— 
(A) AVAILABILITY.—Subject to subpara-
graphs (B) and (C), if a dairy producer files a 
notice of intent under paragraph (1) to partici-
pate in the margin protection program and ob-
tain supplemental margin protection and subse-
quently signs up for the margin protection pro-
gram, the producer shall receive supplemental 
margin protection, in addition to the basic mar-
gin protection under paragraph (2), retroactive 
to the effective date of this subtitle. 
(B) DEADLINE FOR SUBMISSION.—A notice 
of intent to obtain retroactive supplemental mar-
gin protection must be filed with the Secretary 
no later than the earlier of the following: 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(i) 150 days after the date on which 
the Secretary publishes the notice in the 
Federal Register required by paragraph (1). 
(ii) The date on which the Secretary 
initiates the sign up period for the margin 
protection program. 
(C) ELECTION
OF
COVERAGE
LEVEL
AND 
PERCENTAGE OF COVERAGE.—To be sufficient to 
obtain retroactive supplemental margin protec-
tion, the notice of intent to participate filed by 
a dairy producer must specify— 
(i) a selected coverage level that is 
higher, in any increment of $0.50, than the 
payment threshold for basic margin protec-
tion specified in section 1414(b), but not to 
exceed $6.00; and 
(ii) the percentage of coverage, subject 
to limits imposed in section 1415(c). 
(D) DURATION.—The coverage level and 
percentage specified in the notice of intent to 
participate filed by a dairy producer shall apply 
from the effective date of this subtitle until the 
later of the following: 
(i) October 1, 2013. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(ii) The date on which the Secretary 
initiates the sign-up period for the margin 
protection program. 
(4) NOTICE OF INTENT AND OBLIGATION TO PAR-
TICIPATE IN MARGIN PROTECTION PROGRAM.—In no 
way does filing a notice of intent under this sub-
section obligate a dairy producer to sign up for the 
margin protection program once the program rules 
are final, but if a producer does file a notice of intent 
and subsequently signs up for the margin protection 
program, that dairy producer is obligated to pay fees 
and premiums for any retroactive basic margin pro-
tection or retroactive supplemental margin protection 
selected in the notice of intent. 
(e) ADMINISTRATIVE FEE.— 
(1) ADMINISTRATIVE FEE REQUIRED.—A dairy 
producer shall pay an administrative fee under this 
subsection to sign up to participate in the margin 
protection program. The participating dairy producer 
shall pay the administrative fee annually thereafter to 
continue to participate in the margin protection pro-
gram. 
(2) FEE AMOUNT.—The administrative fee for a 
participating dairy producer for a calendar year is 
based on the pounds of milk (in millions) marketed 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
by the dairy producer in the previous calendar year, 
as follows: 
Pounds Marketed (in millions) 
Admin. Fee 
less than 1 
$100 
1 to 10 
$250 
more than 10 to 40 
$500 
more than 40 
$1000 
(3) DEPOSIT OF FEES.—All administrative fees 
collected under this subsection shall be credited to the 
fund or account used to cover the costs incurred to ad-
minister the margin protection program and the sta-
bilization program and shall be available to the Sec-
retary, without further appropriation and until ex-
pended, for use or transfer as provided in paragraph 
(4). 
(4) USE OF FEES.—The Secretary shall use ad-
ministrative fees collected under this subsection— 
(A) to cover administrative costs of the 
margin protection program and stabilization 
program; and 
(B) to the extent funds remain available 
after operation of subparagraphs (A), to cover 
costs of the Department of Agriculture relating to 
reporting of dairy market news and to carry out 
section 273 of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1637b). 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(f) RECONSTITUTION.—The Secretary shall prohibit a 
dairy producer from reconstituting a dairy operation for 
the sole purpose of the dairy producer— 
(1) receiving basic margin protection; 
(2) purchasing supplemental margin protection; 
or 
(3) avoiding participation in the stabilization 
program. 
(g) PRIORITY CONSIDERATION.—A dairy operation 
that participates in the margin protection program shall 
be eligible to participate in the livestock gross margin for 
dairy program under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.) only after operations that are not par-
ticipating in the production margin protection program are 
enrolled. 
SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING 
DAIRY PRODUCERS. 
(a) PRODUCTION HISTORY FOR BASIC MARGIN PRO-
TECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing basic margin protection, the Secretary 
shall determine the basic production history of the 
dairy operation of each participating dairy producer 
in the margin protection program. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(2) CALCULATION.—Except as provided in para-
graph (3), the basic production history of a partici-
pating dairy producer for basic margin protection is 
equal to the highest annual milk marketings of the 
dairy producer during any one of the three calendar 
years immediately preceding the calendar year in 
which the dairy producer first signed up to partici-
pate in the margin protection program. 
(3) ELECTION BY NEW PRODUCERS.—If a par-
ticipating dairy producer has been in operation for 
less than a year, the dairy producer shall elect one of 
the following methods for the Secretary to determine 
the basic production history of the dairy producer: 
(A) The volume of the actual milk mar-
ketings for the months the dairy producer has 
been in operation extrapolated to a yearly 
amount. 
(B) An estimate of the actual milk mar-
ketings of the dairy producer based on the herd 
size of the producer relative to the national roll-
ing herd average data published by the Sec-
retary. 
(4) NO CHANGE IN PRODUCTION HISTORY FOR 
BASIC MARGIN PROTECTION.—Once the basic produc-
tion history of a participating dairy producer is de-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
termined under paragraph (2) or (3), the basic pro-
duction history shall not be subsequently changed for 
purposes of determining the amount of any basic 
margin protection payments for the dairy producer 
made under section 1414. 
(b) ANNUAL PRODUCTION HISTORY
FOR SUPPLE-
MENTAL MARGIN PROTECTION.— 
(1) DETERMINATION REQUIRED.—For purposes 
of providing supplemental margin protection for a 
participating dairy producer that purchases supple-
mental margin protection for a year under section 
1415, the Secretary shall determine the annual pro-
duction history of the dairy operation of the dairy 
producer under paragraph (2). 
(2) CALCULATION.—The annual production his-
tory of a participating dairy producer for a year is 
equal to the actual milk marketings of the dairy pro-
ducer during the preceding calendar year. 
(3) NEW PRODUCERS.—Subsection (a)(3) shall 
apply with respect to determining the annual produc-
tion history of a participating dairy producer that 
has been in operation for less than a year. 
(c) REQUIRED INFORMATION.—A participating dairy 
producer shall provide all information that the Secretary 
may require in order to establish— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(1) the basic production history of the dairy op-
eration of the dairy producer under subsection (a); 
and 
(2) the production history of the dairy operation 
of the dairy producer whenever the producer pur-
chases supplemental margin protection under section 
1415. 
(d) TRANSFER OF PRODUCTION HISTORIES.— 
(1) TRANSFER BY SALE OR LEASE.—In promul-
gating the rules to initiate the margin protection pro-
gram, the Secretary shall specify the conditions under 
which and the manner by which the production his-
tory of a dairy operation may be transferred by sale 
or lease. 
(2) COVERAGE LEVEL.— 
(A) BASIC
MARGIN
PROTECTION.—A pur-
chaser or lessee to whom the Secretary transfers 
a basic production history under this subsection 
shall not obtain a different level of basic margin 
protection than the basic margin protection cov-
erage held by the seller or lessor from whom the 
transfer was obtained. 
(B) 
SUPPLEMENTAL
MARGIN
PROTEC-
TION.—A purchaser or lessee to whom the Sec-
retary transfers an annual production history 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
under this subsection shall not obtain a different 
level of supplemental margin protection coverage 
than the supplemental margin protection cov-
erage in effect for the seller or lessor from whom 
the transfer was obtained for the calendar year 
in which the transfer was made. 
(e) MOVEMENT AND TRANSFER OF PRODUCTION HIS-
TORY.— 
(1) MOVEMENT AND TRANSFER AUTHORIZED.— 
Subject to paragraph (2), if a dairy producer moves 
from one location to another location, the dairy pro-
ducer may maintain the basic production history and 
annual production history associated with the oper-
ation. 
(2) NOTIFICATION REQUIREMENT.—A dairy pro-
ducer shall notify the Secretary of any move of a 
dairy operation under paragraph (1). 
(3) SUBSEQUENT OCCUPATION OF VACATED LO-
CATION.—A party subsequently occupying a dairy op-
eration location vacated as described in paragraph 
(1) shall have no interest in the basic production his-
tory or annual production history previously associ-
ated with the operation at such location. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 1414. BASIC MARGIN PROTECTION. 
(a) ELIGIBILITY.—All participating dairy producers 
are eligible to receive basic margin protection under the 
margin protection program. 
(b) PAYMENT THRESHOLD.—Participating dairy pro-
ducers shall receive a basic margin protection payment 
whenever the average actual dairy producer margin for a 
consecutive two-month period is less than $4.00 per hun-
dredweight of milk. 
(c) BASIC MARGIN PROTECTION PAYMENT.— 
(1) PAYMENT REQUIRED.—The Secretary shall 
make a basic margin protection payment to each par-
ticipating dairy producer whenever such a payment 
is required by subsection (b). 
(2) AMOUNT OF PAYMENT.—The basic margin 
protection payment for the dairy operation of a par-
ticipating dairy producer for a consecutive two-month 
period shall be determined as follows: 
(A) The Secretary shall calculate the dif-
ference between the average actual dairy pro-
ducer margin for the consecutive two-month pe-
riod and $4.00, except that, if the difference is 
more than $4.00, the Secretary shall use $4.00. 
(B) The Secretary shall multiply the 
amount under subparagraph (A) by the lesser of 
the following: 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
(i) 80 percent of the production history 
of the dairy producer, divided by six. 
(ii) The actual amount of milk mar-
keted by the dairy operation of the dairy 
producer during the consecutive two-month 
period. 
SEC. 1415. SUPPLEMENTAL MARGIN PROTECTION. 
(a) ELECTION OF SUPPLEMENTAL MARGIN PROTEC-
TION.—Supplemental margin protection is available only 
on an annual basis. A participating dairy producer may 
annually purchase supplemental margin protection to pro-
tect, during the calendar year for which purchased, a higher 
level of the income of a participating dairy producer than 
the income level guaranteed by basic margin protection 
under section 1414. 
(b) SELECTION OF PAYMENT THRESHOLD.—A partici-
pating dairy producer purchasing supplemental margin 
protection for a year shall elect a coverage level that is high-
er, in any increment of $0.50, than the payment threshold 
for basic margin protection specified in section 1414(b), but 
not to exceed $8.00. 
(c) SELECTION OF COVERAGE PERCENTAGE.—A par-
ticipating dairy producer purchasing supplemental margin 
protection for a year shall elect a percentage of coverage 
equal to not more than 90 percent, nor less than 25 percent, 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00099
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
100 
of the annual production history of the dairy operation of 
the participating dairy producer. 
(d) PRODUCER PREMIUMS FOR SUPPLEMENTAL MAR-
GIN PROTECTION.— 
(1) PREMIUMS
REQUIRED.—A participating 
dairy producer that purchases supplemental margin 
protection shall pay an annual premium equal to the 
product obtained by multiplying— 
(A) the percentage selected by the dairy pro-
ducer under subsection (c); 
(B) the annual production history of the 
dairy producer; and 
(C) the premium per hundredweight of 
milk, as specified in the applicable table under 
paragraph (2) or (3). 
(2) PREMIUM PER HUNDREDWEIGHT FOR FIRST 
4 MILLION POUNDS OF PRODUCTION.—For the first 
4,000,000 pounds of milk marketings included in the 
annual production history of a participating dairy 
producer, the premium per hundredweight cor-
responding to each coverage level specified in the fol-
lowing table is as follows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.01 
$5.00 
$0.025 
$5.50 
$0.04 
$6.00 
$0.065 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00100
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
101 
Coverage Level 
Premium per Cwt. 
$6.50 
$0.09 
$7.00 
$0.434 
$7.50 
$0.590 
$8.00 
$0.922 
(3) PREMIUM PER HUNDREDWEIGHT FOR PRO-
DUCTION
IN
EXCESS
OF
MILLION
POUNDS.—For 
milk marketings in excess of 4,000,000 pounds in-
cluded in the annual production history of a partici-
pating dairy producer, the premium per hundred-
weight corresponding to each coverage level is as fol-
lows: 
Coverage Level 
Premium per Cwt. 
$4.50 
$0.015 
$5.00 
$0.036 
$5.50 
$0.081 
$6.00 
$0.155 
$6.50 
$0.230 
$7.00 
$0.434 
$7.50 
$0.590 
$8.00 
$0.922 
(4) TIME FOR PAYMENT.—In promulgating the 
rules to initiate the margin protection program, the 
Secretary shall provide more than one method by 
which a participating dairy producer that purchases 
supplemental margin protection for a calendar year 
may pay the premium under this subsection for that 
year that maximizes producer payment flexibility 
and program integrity. 
(e) PRODUCER’S PREMIUM OBLIGATIONS.— 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00101
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
102 
(1) PRO-RATION
OF
PREMIUM
FOR
NEW
PRO-
DUCERS.—A dairy producer described in section 
1412(c)(2) that purchases supplemental margin pro-
tection for a calendar year after the start of the cal-
endar year shall pay a pro-rated premium for that 
calendar year based on the portion of the calendar 
year for which the producer purchases the coverage. 
(2) LEGAL OBLIGATION.—A participating dairy 
producer that purchases supplemental margin protec-
tion for a calendar year shall be legally obligated to 
pay the applicable premium for that calendar year, 
except that, if the dairy producer retires, the producer 
may request that Secretary cancel the supplemental 
margin protection if the producer has terminated the 
dairy operation entirely and certifies under oath that 
the producer will not be actively engaged in any 
dairy operation for at least the next seven years. 
(f) SUPPLEMENTAL PAYMENT THRESHOLD.—A par-
ticipating dairy producer with supplemental margin pro-
tection shall receive a supplemental margin protection pay-
ment whenever the average actual dairy producer margin 
for a consecutive two-month period is less than the coverage 
level threshold selected by the dairy producer under sub-
section (b). 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00102
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
103 
(g) 
SUPPLEMENTAL
MARGIN
PROTECTION
PAY-
MENTS.— 
(1) IN
GENERAL.—The supplemental margin 
protection payment for a participating dairy pro-
ducer is in addition to the basic margin protection 
payment. 
(2) AMOUNT
OF
PAYMENT.—The supplemental 
margin protection payment for the dairy operation of 
a participating dairy producer shall be determined as 
follows: 
(A) The Secretary shall calculate the dif-
ference between the coverage level threshold se-
lected by the dairy producer under subsection (b) 
and the greater of— 
(i) the average actual dairy producer 
margin for the consecutive two-month pe-
riod; or 
(ii) $4.00. 
(B) The amount determined under subpara-
graph (A) shall be multiplied by the percentage 
selected by the participating dairy producer 
under subsection (c) and by the lesser of the fol-
lowing: 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00103
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
104 
(i) The annual production history of 
the dairy operation of the dairy producer, 
divided by six. 
(ii) The actual amount of milk mar-
keted by the dairy operation of the dairy 
producer during the consecutive two-month 
period. 
SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATIVE 
FEES OR PREMIUMS. 
(a) LOSS OF BENEFITS.—A participating dairy pro-
ducer that fails to pay the required administrative fee 
under section 1412 or is in arrears on premium payments 
for supplemental margin protection under section 1415— 
(1) remains legally obligated to pay the adminis-
trative fee or premiums, as the case may be; and 
(2) may not receive basic margin protection pay-
ments or supplemental margin protection payments 
until the fees or premiums are fully paid. 
(b) ENFORCEMENT.—The Secretary may take such ac-
tion as necessary to collect administrative fees and pre-
mium payments for supplemental margin protection. 
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00104
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS
105 
Subpart B—Dairy Market Stabilization Program 
SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZA-
TION PROGRAM. 
(a) PROGRAM REQUIRED; PURPOSE.—The Secretary 
shall establish and administer a dairy market stabilization 
program applicable to participating dairy producers for the 
purpose of assisting in balancing the supply of milk with 
demand when dairy producers are experiencing low or neg-
ative operating margins. 
(b) ELECTION
OF STABILIZATION PROGRAM BASE 
CALCULATION METHOD.— 
(1) ELECTION.—When a dairy producer signs up 
under section 1412 to participate in the margin pro-
tection program, the dairy producer shall inform the 
Secretary of the method by which the stabilization 
program base for the dairy producer for fiscal year 
2013 will be calculated under paragraph (3). 
(2) CHANGE IN CALCULATION METHOD.—A par-
ticipating dairy producer may change the stabiliza-
tion program base calculation method to be used for 
a calendar year by notifying the Secretary of the 
change not later than a date determined by the Sec-
retary. 
(3) CALCULATION
METHODS.—A participating 
dairy producer may elect either of the following meth-
VerDate Mar 15 2010 
01:06 Jun 11, 2013
Jkt 029200
PO 00000
Frm 00105
Fmt 6652
Sfmt 6203
E:\BILLS\H1947.RH
H1947
rfrederick on DSK6VPTVN1PROD with BILLS