SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Reduce and End our 
Deficits Using Commonsense Eliminations in the Agriculture Program 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Termination of Federal commodity storage payments on behalf of 
                            cotton and peanut producers.
Sec. 3. Termination of Forest Service Economic Action Program.
Sec. 4. Termination of authority to provide grants to manufacturers of 
                            worsted wool fabrics.
Sec. 5. Termination of Department of Agriculture health care services 
                            program for the Delta region.
Sec. 6. Termination of authority to provide energy generation, 
                            transmission, and distribution facilities 
                            efficiency grants and loans in rural 
                            communities with extremely high energy 
                            costs.
Sec. 7. Revised adjusted gross income limitations for receipt of direct 
                            payments, counter-cyclical payments, 
                            marketing loan gains, loan deficiency 
                            payments, and other agricultural payments 
                            or benefits.
Sec. 8. Imposition of new limits on payments to producers of certain 
                            agricultural commodities.
Sec. 9. One percent reduction in payment acres for commodity programs.
Sec. 10. Reduction in funding for market access program.
Sec. 11. Reduction in reimbursement rate paid to private insurance 
                            companies under crop insurance program.
Sec. 12. Prohibition on timber sales in the Southwestern, Pacific 
                            Southwest, and Alaska regions of the 
                            National Forest System, where Federal 
                            expenditures for sales have been 
                            significantly higher than offsetting 
                            receipts.

SEC. 2. TERMINATION OF FEDERAL COMMODITY STORAGE PAYMENTS ON BEHALF OF 
              COTTON AND PEANUT PRODUCERS.

    (a) Cotton.--Section 1204 of the Food, Conservation, and Energy Act 
of 2008 (7 U.S.C. 8734) is amended by striking subsection (g).
    (b) Peanuts.--Section 1307(a) of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8757(a)) is amended by striking paragraph (6).

SEC. 3. TERMINATION OF FOREST SERVICE ECONOMIC ACTION PROGRAM.

    The Secretary of Agriculture shall terminate the Economic Action 
Program administered by the Forest Service, which provides technical 
and financial assistance to communities and groups to enhance rural 
economies through the utilization of forest and related natural 
resources.

SEC. 4. TERMINATION OF AUTHORITY TO PROVIDE GRANTS TO MANUFACTURERS OF 
              WORSTED WOOL FABRICS.

    Section 4002(c) of the Wool Suit and Textile Trade Extension Act of 
2004 (Public Law 108-429; 7 U.S.C. 7101 note) is amended by striking 
paragraph (6).

SEC. 5. TERMINATION OF DEPARTMENT OF AGRICULTURE HEALTH CARE SERVICES 
              PROGRAM FOR THE DELTA REGION.

    Section 379G of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2008u) is repealed.

SEC. 6. TERMINATION OF AUTHORITY TO PROVIDE ENERGY GENERATION, 
              TRANSMISSION, AND DISTRIBUTION FACILITIES EFFICIENCY 
              GRANTS AND LOANS IN RURAL COMMUNITIES WITH EXTREMELY HIGH 
              ENERGY COSTS.

    Section 19 of the Rural Electrification Act of 1936 (7 U.S.C. 918a) 
is repealed.

SEC. 7. REVISED ADJUSTED GROSS INCOME LIMITATIONS FOR RECEIPT OF DIRECT 
              PAYMENTS, COUNTER-CYCLICAL PAYMENTS, MARKETING LOAN 
              GAINS, LOAN DEFICIENCY PAYMENTS, AND OTHER AGRICULTURAL 
              PAYMENTS OR BENEFITS.

    (a) Non-Farm Income Limitation for Commodity Programs.--Section 
1001D(b)(1)(A) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(b)(1)(A)) is amended by striking ``$500,000'' and inserting ``the 
following:
                            ``(i) $500,000, during the 2009 through 
                        2010 crop, program, or fiscal years, as 
                        appropriate.
                            ``(ii) $420,000, during the 2011 crop, 
                        program, or fiscal year, as appropriate.
                            ``(iii) $340,000, during the 2012 crop, 
                        program, or fiscal year, as appropriate.
                            ``(iv) $250,000, during the 2013 and 
                        subsequent crop, program, or fiscal years, as 
                        appropriate.''.
    (b) Farm Income Limitation for Direct Payments.--Section 
1001D(b)(1)(B) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(b)(1)(B)) is amended by striking ``$750,000'' and inserting ``the 
following:
                            ``(i) $750,000, during the 2009 through 
                        2010 crop years.
                            ``(ii) $670,000, during the 2011 crop year.
                            ``(iii) $590,000, during the 2012 crop 
                        year.
                            ``(iv) $500,000, during the 2013 and 
                        subsequent crop years.''.
    (c) Non-Farm Income Limitation for Conservation Programs.--Section 
1001D(b)(2)(A) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``$1,000,000'' and inserting 
        ``the amount specified in clause (iii)''; and
            (2) by adding at the end the following new clause:
                            ``(iii) Declining limitation amounts.--For 
                        purposes of clause (i), the following average 
                        adjusted gross non-farm income limitations 
                        apply:
                                    ``(I) $1,000,000, during the 2009 
                                through 2010 crop, program, or fiscal 
                                years, as appropriate.
                                    ``(II) $920,000, during the 2011 
                                crop, program, or fiscal year, as 
                                appropriate.
                                    ``(III) $840,000, during the 2012 
                                crop, program, or fiscal year, as 
                                appropriate.
                                    ``(IV) $750,000, during the 2013 
                                and subsequent crop, program, or fiscal 
                                years, as appropriate.''.

SEC. 8. IMPOSITION OF NEW LIMITS ON PAYMENTS TO PRODUCERS OF CERTAIN 
              AGRICULTURAL COMMODITIES.

    (a) Covered Commodities Generally.--
            (1) Direct payments.--Section 1001(b)(1)(A) of the Food 
        Security Act of 1985 (7 U.S.C. 1308(b)(1)(A)) is amended by 
        striking ``$40,000'' and inserting ``$20,000''.
            (2) Counter-cyclical payments.--Section 1001(b)(2) of the 
        Food Security Act of 1985 (7 U.S.C. 1308(b)(2)) is amended by 
        striking ``$65,000'' and inserting ``$32,500''.
            (3) ACRE and counter-cyclical payments.--Section 
        1001(b)(3)(A) of the Food Security Act of 1985 (7 U.S.C. 
        1308(b)(3)(A)) is amended by striking ``$65,000'' and inserting 
        ``$32,500''.
    (b) Peanuts.--
            (1) Direct payments.--Section 1001(c)(1)(A) of the Food 
        Security Act of 1985 (7 U.S.C. 1308(c)(1)(A)) is amended by 
        striking ``$40,000'' and inserting ``$20,000''.
            (2) Counter-cyclical payments.--Section 1001(c)(2) of the 
        Food Security Act of 1985 (7 U.S.C. 1308(c)(2)) is amended by 
        striking ``$65,000'' and inserting ``$32,500''.
            (3) ACRE and counter-cyclical payments.--Section 
        1001(c)(3)(A) of the Food Security Act of 1985 (7 U.S.C. 
        1308(c)(3)(A)) is amended by striking ``$65,000'' and inserting 
        ``$32,500''.

SEC. 9. ONE PERCENT REDUCTION IN PAYMENT ACRES FOR COMMODITY PROGRAMS.

    (a) Covered Commodities Generally.--Section 1001 of the Food, 
Conservation, and Energy Act of 2008 (7 U.S.C. 8702) is amended by 
striking paragraph (11) and inserting the following new paragraph:
            ``(11) Payment acres.--The term `payment acres' means--
                    ``(A) in the case of direct payments--
                            ``(i) for each of the 2009 and 2010 crop 
                        years, 83.3 percent of the base acres for the 
                        covered commodity on a farm on which direct 
                        payments are made;
                            ``(ii) for the 2011 crop year, 82.3 percent 
                        of the base acres for the covered commodity on 
                        a farm on which direct payments are made; and
                            ``(iii) for the 2012 crop year, 84 percent 
                        of the base acres for the covered commodity on 
                        a farm on which direct payments are made; and
                    ``(B) in the case of counter-cyclical payments--
                            ``(i) for each of the 2009 and 2010 crop 
                        years, 85 percent of the base acres for the 
                        covered commodity on a farm on which counter-
                        cyclical payments are made; and
                            ``(ii) for each of the 2011 and 2012 crop 
                        years, 84 percent of the base acres for the 
                        covered commodity on a farm on which counter-
                        cyclical payments are made.''.
    (b) Peanuts.--Section 1301 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 8751) is amended by striking paragraph (5) and 
inserting the following new paragraph:
            ``(5) Payment acres.--The term `payment acres' means--
                    ``(A) in the case of direct payments--
                            ``(i) for each of the 2009 and 2010 crop 
                        years, 83.3 percent of the base acres of 
                        peanuts on a farm on which direct payments are 
                        made;
                            ``(ii) for the 2011 crop year, 82.3 percent 
                        of the base acres of peanuts on a farm on which 
                        direct payments are made; and
                            ``(iii) for the 2012 crop year, 84 percent 
                        of the base acres of peanuts on a farm on which 
                        direct payments are made; and
                    ``(B) in the case of counter-cyclical payments--
                            ``(i) for each of the 2009 and 2010 crop 
                        years, 85 percent of the base acres of peanuts 
                        on a farm on which counter-cyclical payments 
                        are made; and
                            ``(ii) for each of the 2011 and 2012 crop 
                        years, 84 percent of the base acres of peanuts 
                        on a farm on which counter-cyclical payments 
                        are made.''.

SEC. 10. REDUCTION IN FUNDING FOR MARKET ACCESS PROGRAM.

    Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641(c)(1)(A)) is amended by striking ``and $200,000,000 for 
each of fiscal years 2008 through 2012'' and inserting ``$200,000,000 
for each of fiscal years 2008 through 2010, and $160,000,000 for each 
of fiscal years 2011 and 2012''.

SEC. 11. REDUCTION IN REIMBURSEMENT RATE PAID TO PRIVATE INSURANCE 
              COMPANIES UNDER CROP INSURANCE PROGRAM.

    Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) 
is amended--
            (1) in subparagraph (A), by striking clauses (i) and (ii) 
        and inserting the following new clauses:
                            ``(i) for the 1998 reinsurance year, 27 
                        percent of the premium used to define loss 
                        ratio;
                            ``(ii) for each of the 1999 through 2010 
                        reinsurance years, 24.5 percent of the premium 
                        used to define loss ratio; and
                            ``(iii) for each of the 2011 and subsequent 
                        reinsurance years, 20.9 percent of the premium 
                        used to define loss ratio.'';
            (2) by striking subparagraph (E); and
            (3) by redesignating subparagraph (F) as subparagraph (E), 
        and in such subparagraph, by striking ``subparagraphs (A) 
        through (E)'' and inserting ``subparagraphs (A) through (D)''.

SEC. 12. PROHIBITION ON TIMBER SALES IN THE SOUTHWESTERN, PACIFIC 
              SOUTHWEST, AND ALASKA REGIONS OF THE NATIONAL FOREST 
              SYSTEM, WHERE FEDERAL EXPENDITURES FOR SALES HAVE BEEN 
              SIGNIFICANTLY HIGHER THAN OFFSETTING RECEIPTS.

    The Secretary of Agriculture may not conduct, or authorize others 
to conduct, any timber sale under section 14 of the National Forest 
Management Act of 1976 (16 U.S.C. 472a) in the Southwestern, Pacific 
Southwest, or Alaska region of the National Forest System, where 
Federal expenditures to support timber sales have been significantly 
higher than offsetting receipts, until the Secretary certifies to 
Congress that timber sales in the region will generate receipts at 
least equal to Federal expenditures to support the sales.
Output: Reduce and End our Deficits Using Commonsense Eliminations in the Agriculture Program Act - Amends the Food, Conservation, and Energy Act of 2008 to terminate cotton and peanut storage payments.

Directs the Secretary of Agriculture (USDA) to terminate the Forest Service's Economic Action Program.

Amends the Wool Suit and Textile Trade Extension Act of 2004 to terminate the grant program for manufacturers of worsted wool fabrics.

Amends the Consolidated Farm and Rural Development Act to terminate the Delta region health care services program.

Amends the Rural Electrification Act of 1936 to terminate the grant and loan program for energy generation, transmission, and distribution facilities efficiency in rural communities with extremely high energy costs.

Amends the Food Security Act of 1985 to revise income eligibility limitations for: (1) commodity program non-farm income; (2) direct payment farm income; and (3) conservation program non-farm income.

Reduces crop year payment limits for covered commodity and peanut: (1) direct payments; (2) counter-cyclical payments; and (3) average crop revenue election (ACRE)/counter-cyclical payments.

Amends the Food, Conservation, and Energy Act of 2008 to revise the definition of "payment acres" for covered commodity and peanut direct and counter-cyclical payments.

Amends the Agricultural Trade Act of 1978 to reduce additional FY2011 and FY2012 funding for the market access program.

Amends the Federal Crop Insurance Act to reduce the reimbursement rate beginning in FY2011 for private insurance providers under the crop insurance program.

Prohibits the Secretary from conducting timber sales in the Southwestern, Pacific Southwest, or Alaska region of the National Forest System where federal expenditures to support timber sales have been significantly higher than offsetting receipts until the Secretary certifies to Congress that timber sales in the region will generate receipts at least equal to supporting federal expenditures.