Soil Health and Income Protection Program Act of 2017

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Soil Health and Income Protection 
Program Act of 2017'' or the ``SHIPP Act of 2017''.

SEC. 2. SOIL HEALTH AND INCOME PROTECTION PROGRAM.

    (a) In General.--Chapter 5 of subtitle D of title XII of the Food 
Security Act of 1985 is amended by inserting after section 1240M (16 
U.S.C. 3839bb) the following:

``SEC. 1240N. SOIL HEALTH AND INCOME PROTECTION PROGRAM.

    ``(a) Definition of Eligible Land.--In this section:
            ``(1) In general.--The term `eligible land' means land 
        that--
                    ``(A) is selected by the owner or operator of the 
                land for proposed enrollment in the program under this 
                section; and
                    ``(B) as determined by the Secretary--
                            ``(i) had a cropping history or was 
                        considered to be planted during the 3 crop 
                        years preceding the crop year described in 
                        subsection (b)(2); and
                            ``(ii) is verified to be less-productive 
                        land, as compared to other land on the 
                        applicable farm.
            ``(2) Exclusion.--The term `eligible land' does not include 
        any land covered by a conservation reserve program contract 
        under subchapter B of chapter 1 that expires during the crop 
        year described in subsection (b)(2).
    ``(b) Establishment.--
            ``(1) In general.--The Secretary shall establish a 
        voluntary soil health and income protection program under which 
        eligible land is enrolled through the use of agreements to 
        assist owners and operators of eligible land to conserve and 
        improve the soil, water, and wildlife resources of the eligible 
        land.
            ``(2) Deadline for participation.--Eligible land may be 
        enrolled in the program under this section only during the 
        first crop year beginning after the date of enactment of this 
        section.
    ``(c) Agreements.--
            ``(1) Requirements.--An agreement described in subsection 
        (b) shall--
                    ``(A) be entered into by the Secretary, the owner 
                of the eligible land, and (if applicable) the operator 
                of the eligible land; and
                    ``(B) provide that, during the term of the 
                agreement--
                            ``(i) the lowest practicable cost perennial 
                        conserving use cover crop for the eligible 
                        land, as determined by the applicable State 
                        conservationist after considering the advice of 
                        the applicable State technical committee, shall 
                        be planted on the eligible land;
                            ``(ii) except as provided in paragraph (5), 
                        the owner or operator of the eligible land 
                        shall pay the cost of planting the conserving 
                        use cover crop under clause (i);
                            ``(iii) subject to paragraph (6), the 
                        eligible land may be harvested for seed, hayed, 
                        or grazed outside the nesting and brood-rearing 
                        period established for the applicable county;
                            ``(iv) the eligible land may be eligible 
                        for a walk-in access program of the applicable 
                        State, if any; and
                            ``(v) a nonprofit wildlife organization may 
                        provide to the owner or operator of the 
                        eligible land a payment in exchange for an 
                        agreement by the owner or operator not to 
                        harvest the conserving use cover.
            ``(2) Payments.--Except as provided in paragraphs (5) and 
        (6)(B)(ii), the annual rental rate for a payment under an 
        agreement described in subsection (b) shall be equal to 50 
        percent of the average rental rate for the applicable county 
        under section 1234(d), as determined by the Secretary.
            ``(3) Limitation on enrolled land.--Not more than 15 
        percent of the eligible land on a farm may be enrolled in the 
        program under this section.
            ``(4) Term.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each agreement described in 
                subsection (b) shall be for a term of 3, 4, or 5 years, 
                as determined by the parties to the agreement.
                    ``(B) Early termination.--
                            ``(i) Secretary.--The Secretary may 
                        terminate an agreement described in subsection 
                        (b) before the end of the term described in 
                        subparagraph (A) if the Secretary determines 
                        that the early termination of the agreement is 
                        necessary.
                            ``(ii) Owners and operators.--An owner and 
                        (if applicable) an operator of eligible land 
                        enrolled in the program under this section may 
                        terminate an agreement described in subsection 
                        (b) before the end of the term described in 
                        subparagraph (A) if the owner and (if 
                        applicable) the operator pay--
                                    ``(I) to the Secretary an amount 
                                equal to the amount of rental payments 
                                received under the agreement; and
                                    ``(II) if applicable, to the 
                                Federal Crop Insurance Corporation the 
                                amount of the increase in premium 
                                discounts provided under subparagraph 
                                (B) of section 508(d)(3) of the Federal 
                                Crop Insurance Act (7 U.S.C. 
                                1508(d)(3)).
            ``(5) Beginning, small, socially disadvantaged, young, or 
        veteran farmers and ranchers.--With respect to a beginning, 
        small, socially disadvantaged, young, or veteran farmer or 
        rancher, as determined by the Secretary--
                    ``(A) an agreement described in subsection (b) 
                shall provide that, during the term of the agreement, 
                the beginning, underserved, or young farmer or rancher 
                shall pay 50 percent of the cost of planting the 
                conserving use cover crop under paragraph (1)(B)(i); 
                and
                    ``(B) the annual rental rate for a payment under an 
                agreement described in subsection (b) shall be equal to 
                75 percent of the average rental rate for the 
                applicable county under section 1234(d), as determined 
                by the Secretary.
            ``(6) Harvesting, haying, and grazing outside applicable 
        period.--The harvesting for seed, haying, or grazing of 
        eligible land under paragraph (1)(B)(iii) outside of the 
        nesting and brood-rearing period established for the applicable 
        county shall be subject to the conditions that--
                    ``(A) with respect to eligible land that is so 
                hayed or grazed, adequate stubble height shall be 
                maintained to protect the soil on the eligible land, as 
                determined by the applicable State conservationist 
                after considering the advice of the applicable State 
                technical committee; and
                    ``(B) with respect to eligible land that is so 
                harvested for seed--
                            ``(i) the eligible land shall not be 
                        eligible to be insured or reinsured under the 
                        Federal Crop Insurance Act (7 U.S.C. 1501 et 
                        seq.); and
                            ``(ii) the rental payment otherwise 
                        applicable to the eligible land under this 
                        subsection shall be reduced by 25 percent.
    ``(d) Funding.--There are authorized to be appropriated such sums 
as are necessary to carry out this section.''.
    (b) Adjustment of Base Acres.--Section 1112(b)(1) of the 
Agricultural Act of 2014 (7 U.S.C. 9012(b)(1)) is amended by adding at 
the end the following:
                    ``(D) A soil health and income protection program 
                agreement entered into under section 1240N of the Food 
                Security Act of 1985 with respect to the farm expires 
                or is terminated.''.
    (c) Crop Insurance.--Section 508(d)(3) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)(3)) is amended--
            (1) by striking ``The Corporation'' and inserting the 
        following:
                    ``(A) In general.--The Corporation''; and
            (2) by adding at the end the following:
                    ``(B) Increase for participation in soil health and 
                income protection program.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Corporation may increase the amount of a 
                        premium discount provided under this paragraph 
                        by not more than 2 percent (or not more than 3 
                        percent with respect to a beginning, small, 
                        socially disadvantaged, young, or veteran 
                        farmer or rancher described in subsection 
                        (c)(5) of section 1240N of the Food Security 
                        Act of 1985) for any agricultural commodity 
                        planted in an insurable unit that contains any 
                        eligible land (as defined in subsection (a) of 
                        that section) that is enrolled in the soil 
                        health and income protection program under that 
                        section.
                            ``(ii) Applicability.--An increase in the 
                        amount of a premium discount provided pursuant 
                        to clause (i)--
                                    ``(I) shall apply only for a 
                                premium discount equal to less than 80 
                                percent; and
                                    ``(II) shall not apply to a 
                                catastrophic risk protection plan 
                                provided under subsection (b).
                            ``(iii) Multiple insurable units.--With 
                        respect to an agricultural producer that owns 
                        or operates multiple insurable units on 1 farm, 
                        at least 1 insurable unit of which contains 
                        eligible land (as defined in subsection (a) of 
                        section 1240N of the Food Security Act of 1985) 
                        that is enrolled in the soil health and income 
                        protection program under that section, an 
                        increase in the amount of a premium discount 
                        under this subparagraph shall apply to all 
                        insurable units of the agricultural producer on 
                        the farm.''.

Summary: Soil Health and Income Protection Program Act of 2017 or the SHIPP Act of 2017  This bill amends the Food Security Act of 1985 to establish a voluntary soil health and income protection program.  Landowners and operators may enroll eligible land in the program by agreeing to adopt certain practices to conserve and improve the soil, water, and wildlife resources of the land for a period of three to five years in exchange for rental payments and additional crop insurance premium discounts.  During the period of the agreement:   the lowest practicable cost perennial conserving use cover crop must be planted on the enrolled land at the expense of the enrollee;   the land may be harvested for seed, hayed, or grazed outside the nesting and brood-rearing period, but may not be insured and is subject to a 25% reduction in rental payments if the land is harvested for seed;   the land may be eligible for a walk-in access program of the applicable state; and  a nonprofit wildlife organization may provide to the owner or operator of the eligible land a payment in exchange for an agreement by the owner or operator not to harvest the conserving use cover.   Beginning, small, socially disadvantaged, young, or veteran farmers and ranchers are only required to pay 50% of the cost of planting the conserving using cover crop and are eligible for increased payments and crop insurance premium discounts under the program. A maximum of 15% of the eligible land on a farm may be enrolled in the program.