SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conservation Assistance Loan Act of 
2018''.

SEC. 2. AVAILABILITY OF NONRECOURSE CONSERVATION ASSISTANCE LOANS FOR 
              LOAN COMMODITIES.

    (a) Nonrecourse Loans Available.--
            (1) In general.--For each of the 2018 through 2022 crops of 
        each loan commodity, the Secretary shall make available to 
        qualified producers on a farm nonrecourse conservation 
        assistance loans for loan commodities produced on the farm.
            (2) Qualified producer.--In this section, the term 
        ``qualified producer'' means a producer eligible for a 
        nonrecourse marketing loan under section 1201 of the 
        Agricultural Act of 2014 (7 U.S.C. 9031) that agrees to not 
        apply for such loan for each of the 2018 through 2022 crops 
        described in paragraph (1).
    (b)  Eligible Production.--The producers on a farm shall be 
eligible for a conservation assistance loan under subsection (a) for 
any quantity of a loan commodity produced on the farm.
    (c) Loan Rates for Nonrecourse Conservation Assistance Loans.--
            (1) In general.--Subject to paragraph (2), for purposes of 
        each of the 2018 through 2022 crop years, the loan rate for a 
        conservation assistance loan under this section for a loan 
        commodity shall be--
                    (A) for beginning farmers and ranchers (as 
                determined by the Secretary), 75 percent of the 
                national average price received by producers during the 
                12-month marketing year for the loan commodity for the 
                most recent 5 crop years, excluding--
                            (i) the crop year with the highest price; 
                        and
                            (ii) the crop year with the lowest price; 
                        and
                    (B) for producers not described in paragraph (1), 
                60 percent of the national average price received by 
                producers during the 12-month marketing year for the 
                loan commodity for the most recent 5 crop years, 
                excluding--
                            (i) the crop year with the highest price; 
                        and
                            (ii) the crop year with the lowest price.
            (2) Special rule for cover crops.--In the case of a 
        producer who agrees to plant a cover crop on acres associated 
        with the loan commodity, the applicable loan rate under 
        paragraph (1) shall be increased by an amount equal to $0.20 
        per bushel.
    (d) Terms of Loans.--
            (1) In general.--In the case of each loan commodity, a 
        conservation loan under this section 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.
            (2) Extensions prohibited.--The Secretary may not extend 
        the term of a conservation assistance loan for any loan 
        commodity.
    (e) Repayment of Loans.--
            (1) In general.--The Secretary shall permit the producers 
        on a farm to repay a conservation assistance loan under this 
        section for a loan commodity at a rate that is the lesser of 
        the following:
                    (A) The loan rate established under subsection (c).
                    (B) A rate that is equal to the expected market 
                price for the loan commodity as calculated for crop 
                insurance, as determined by the Secretary.
                    (C) Such other rate the Secretary determines will 
                avoid or minimize potential loan forfeitures.
            (2) Adjustments.--The Secretary shall make all adjustments 
        that the Secretary determines necessary to--
                    (A) avoid forfeiture or the accumulation of stocks 
                of the commodities placed under a loan under this 
                section;
                    (B) minimize the costs incurred by the Federal 
                Government;
                    (C) allow the commodity produced to be marketed 
                freely and competitively, both domestically and 
                internationally;
                    (D) minimize discrepancies in conservation loan 
                benefits across State boundaries and across country 
                boundaries; and
                    (E) in the case of a producer who is prevented from 
                planting a commercial crop due to weather or other 
                natural events that interfered with cover crop 
                determined (as determined by the Secretary), the 
                Secretary may forgive the portion of the loan 
                calculated under subsection (c)(2).
    (f) Compliance Requirements.--As a condition of the receipt of a 
conservation assistance loan under this section, the producer shall 
during the crop year of the loan--
            (1) 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.) and applicable wetland protection 
        requirements under subtitle C of title XII of that Act (16 
        U.S.C. 3821 et seq.);
            (2) agree to use a reduced tillage method and nutrient 
        management practices (as determined by the Secretary to be 
        appropriate for soil health management) for the acres 
        associated with the commodity covered by the loan; and
            (3) in the case of a loan calculated under subsection 
        (c)(2), agree to plant a cover crop on the acres associated 
        with the loan commodity, as determined by the Secretary to be 
        appropriate.
    (g) Farm Service Agency Report.--The Administrator of the Farm 
Service Agency shall submit an annual report to the Secretary that 
includes the information with respect to the compliance requirements 
specified in paragraphs (1) and (2) of subsection (f) relating to each 
conservation assistance loan under this section that was fully repaid 
in the preceding fiscal year.
Output: Conservation Assistance Loan Act of 2018  This bill establishes a Department of Agriculture (USDA) nonrecourse conservation assistance loan program. Under the program, farmers who receive loans must meet certain conservation requirements, including: (1) complying with applicable conservation and wetland protection requirements under the Food Security Act of 1985, (2) using a reduced tillage method and nutrient management practices, and (3) planting a cover crop.  (Under a nonrecourse loan, a farmer pledges a commodity as collateral and may deliver the pledged collateral to USDA to repay the loan.)