Wednesday, February 5

Pending Legislation: HR 2642 - Agricultural Act of 2014

Agricultural Act of 2014 (Enrolled Bill [Final as Passed Both House and Senate]

This is a LARGE document - 357 Pages total.

You can download the Bill in full as a PDF by using this link

Agricultural Act of 2014

(a) Short Title- This Act may be cited as the `Agricultural Act of 2014'.

(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.

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TITLE I--COMMODITIES

Subtitle A--Repeals and Reforms

Part I--Repeals

Sec. 1101. Repeal of direct payments.
Sec. 1102. Repeal of counter-cyclical payments.
Sec. 1103. Repeal of average crop revenue election program.

Part II--Commodity Policy

Sec. 1111. Definitions.
Sec. 1112. Base acres.
Sec. 1113. Payment yields.
Sec. 1114. Payment acres.
Sec. 1115. Producer election.
Sec. 1116. Price loss coverage.
Sec. 1117. Agriculture risk coverage.
Sec. 1118. Producer agreements.
Sec. 1119. Transition assistance for producers of upland cotton.

Subtitle B--Marketing Loans

Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities.
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 policy.

Subtitle D--Dairy

Part I--Margin Protection Program for Dairy Producers

Sec. 1401. Definitions.
Sec. 1402. Calculation of average feed cost and actual dairy production margins.
Sec. 1403. Establishment of margin protection program for dairy producers.
Sec. 1404. Participation of dairy operations in margin protection program.
Sec. 1405. Production history of participating dairy operations.
Sec. 1406. Margin protection payments.
Sec. 1407. Premiums for margin protection program.
Sec. 1408. Effect of failure to pay administrative fees or premiums.
Sec. 1409. Duration.
Sec. 1410. Administration and enforcement.

Part II--Repeal or Reauthorization of Other Dairy-Related Provisions

Sec. 1421. Repeal of dairy product price support program.
Sec. 1422. Temporary continuation and eventual repeal of milk income loss contract program.
Sec. 1423. Repeal of dairy export incentive program.
Sec. 1424. Extension of dairy forward pricing program.
Sec. 1425. Extension of dairy indemnity program.
Sec. 1426. Extension of dairy promotion and research program.
Sec. 1427. Repeal of Federal Milk Marketing Order Review Commission.

Part III--Dairy Product Donation Program

Sec. 1431. Dairy product donation program.

Subtitle E--Supplemental Agricultural Disaster Assistance Programs

Sec. 1501. Supplemental agricultural disaster assistance.

Subtitle F--Administration

Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Rulemaking related to significant contribution for active personal management.
Sec. 1605. Adjusted gross income limitation.
Sec. 1606. Geographically disadvantaged farmers and ranchers.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Prevention of deceased individuals receiving payments under farm commodity programs.
Sec. 1609. Technical corrections.
Sec. 1610. Appeals.
Sec. 1611. Assignment of payments.
Sec. 1612. Tracking of benefits.
Sec. 1613. Signature authority.
Sec. 1614. Implementation.
Sec. 1615. Research option.

TITLE II--CONSERVATION

Subtitle A--Conservation Reserve Program

Sec. 2001. Extension and enrollment requirements of conservation reserve program.
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. Effect on existing contracts.

Subtitle B--Conservation Stewardship Program

Sec. 2101. Conservation stewardship program.

Subtitle C--Environmental Quality Incentives Program

Sec. 2201. Purposes.
Sec. 2202. Definitions.
Sec. 2203. Establishment and administration.
Sec. 2204. Evaluation of applications.
Sec. 2205. Duties of producers.
Sec. 2206. Limitation on payments.
Sec. 2207. Conservation innovation grants and payments.
Sec. 2208. Effect on existing contracts.

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.
Sec. 2504. Agriculture conservation experienced services program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Emergency watershed protection program.
Sec. 2507. Terminal Lakes.
Sec. 2508. Soil and Water Resources Conservation.

Subtitle G--Funding and Administration

Sec. 2601. Funding.
Sec. 2602. Technical assistance.
Sec. 2603. Regional equity.
Sec. 2604. Reservation of funds to provide assistance to certain farmers or ranchers for conservation access.
Sec. 2605. Annual report on program enrollments and assistance.
Sec. 2606. Administrative requirements applicable to all conservation programs.
Sec. 2607. Standards for State technical committees.
Sec. 2608. Rulemaking authority.
Sec. 2609. Wetlands mitigation.
Sec. 2610. Lesser prairie-chicken conservation report.
Sec. 2611. Highly erodible land and wetland conservation for crop insurance.

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. Temporary administration of conservation programs.
Sec. 2713. Technical amendments.

TITLE III--TRADE

Subtitle A--Food for Peace Act

Sec. 3001. General authority.
Sec. 3002. Set-aside for support for organizations through which nonemergency 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 distribution of shelf-stable prepackaged foods.
Sec. 3008. Impact on local farmers and economy and report on use of funds.
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. Minimum level of nonemergency food assistance.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Sec. 3015. Coordination of foreign assistance programs report.

Subtitle B--Agricultural Trade Act of 1978

Sec. 3101. Export credit guarantee program.
Sec. 3102. Funding for market access program.
Sec. 3103. Foreign market development cooperator program.

Subtitle C--Other Agricultural Trade Laws

Sec. 3201. Food for Progress Act of 1985.
Sec. 3202. Bill Emerson Humanitarian Trust Act.
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. Local and regional food aid procurement projects.
Sec. 3208. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs.

TITLE IV--NUTRITION

Subtitle A--Supplemental Nutrition Assistance Program

Sec. 4001. Preventing payment of cash to recipients of supplemental nutrition assistance benefits for the return of empty bottles and cans used to contain food purchased with benefits provided under the program.
Sec. 4002. Retail food stores.
Sec. 4003. Enhancing services to elderly and disabled supplemental nutrition assistance program participants.
Sec. 4004. Food distribution program on Indian reservations.
Sec. 4005. Exclusion of medical marijuana from excess medical expense deduction.
Sec. 4006. Standard utility allowances based on the receipt of energy assistance payments.
Sec. 4007. Eligibility disqualifications.
Sec. 4008. Eligibility disqualifications for certain convicted felons.
Sec. 4009. Ending supplemental nutrition assistance program benefits for lottery or gambling winners.
Sec. 4010. Improving security of food assistance.
Sec. 4011. Technology modernization for retail food stores.
Sec. 4012. Use of benefits for purchase of community-supported agriculture share.
Sec. 4013. Improved wage verification using the National Directory of New Hires.
Sec. 4014. Restaurant meals program.
Sec. 4015. Mandating State immigration verification.
Sec. 4016. Data exchange standardization for improved interoperability.
Sec. 4017. Pilot projects to improve Federal-State cooperation in identifying and reducing fraud in the supplemental nutrition assistance program.
Sec. 4018. Prohibiting government-sponsored recruitment activities.
Sec. 4019. Tolerance level for excluding small errors.
Sec. 4020. Quality control standards.
Sec. 4021. Performance bonus payments.
Sec. 4022. Pilot projects to reduce dependency and increase work requirements and work effort under supplemental nutrition assistance program.
Sec. 4023. Cooperation with program research and evaluation.
Sec. 4024. Authorization of appropriations.
Sec. 4025. Review, report, and regulation of cash nutrition assistance program benefits provided in Puerto Rico.
Sec. 4026. Assistance for community food projects.
Sec. 4027. Emergency food assistance.
Sec. 4028. Nutrition education.
Sec. 4029. Retail food store and recipient trafficking.
Sec. 4030. Technical and conforming amendments.
Sec. 4031. Commonwealth of the Northern Mariana Islands pilot program.
Sec. 4032. Annual State report on verification of SNAP participation.
Sec. 4033. Service of traditional foods in public facilities.

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. Purchase of fresh fruits and vegetables for distribution to schools and service institutions.
Sec. 4202. Pilot project for procurement of unprocessed fruits and vegetables.
Sec. 4203. Seniors farmers' market nutrition program.
Sec. 4204. Dietary Guidelines for Americans.
Sec. 4205. Multiagency task force.
Sec. 4206. Healthy Food Financing Initiative.
Sec. 4207. Purchase of Halal and Kosher food for emergency food assistance program.
Sec. 4208. Food insecurity nutrition incentive.
Sec. 4209. Food and agriculture service learning program.
Sec. 4210. Nutrition information and awareness pilot program.
Sec. 4211. Termination of existing agreement.
Sec. 4212. Review of sole-source contracts in Federal nutrition programs.
Sec. 4213. Pulse crop products.
Sec. 4214. Pilot project for canned, frozen, or dried fruits and vegetables.

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. Joint financing arrangements.
Sec. 5004. Elimination of mineral rights appraisal requirement.
Sec. 5005. Down payment loan program.

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. Defaults by youth loan borrowers.
Sec. 5104. Term limits on direct operating loans.
Sec. 5105. Valuation of local or regional crops.
Sec. 5106. Microloans.
Sec. 5107. Term limits on guaranteed operating loans.

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. Farmer loan pilot projects.
Sec. 5303. Definition of qualified beginning farmer or rancher.
Sec. 5304. Loan authorization levels.
Sec. 5305. Loan fund set-asides.
Sec. 5306. Borrower training.

Subtitle E--Miscellaneous

Sec. 5401. State agricultural mediation programs.
Sec. 5402. Loans to purchasers of highly fractionated land.
Sec. 5403. Removal of duplicative appraisals.
Sec. 5404. Compensation disclosure by Farm Credit System institutions.

TITLE VI--RURAL DEVELOPMENT

Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Water, waste disposal, and wastewater facility grants.
Sec. 6002. Elimination of reservation of community facilities grant program funds.
Sec. 6003. Rural water and wastewater circuit rider program.
Sec. 6004. Use of loan guarantees for community facilities.
Sec. 6005. Tribal college and university essential community facilities.
Sec. 6006. Essential community facilities technical assistance and training.
Sec. 6007. Emergency and imminent community water assistance grant program.
Sec. 6008. Water systems for rural and native villages in Alaska.
Sec. 6009. Household water well systems.
Sec. 6010. Rural business and industry loan program.
Sec. 6011. Solid waste management grants.
Sec. 6012. Rural business development grants.
Sec. 6013. Rural cooperative development grants.
Sec. 6014. Locally or regionally produced agricultural food products.
Sec. 6015. Appropriate technology transfer for rural areas program.
Sec. 6016. Rural economic area partnership zones.
Sec. 6017. Intermediary relending program.
Sec. 6018. Rural college coordinated strategy.
Sec. 6019. Rural water and waste disposal infrastructure.
Sec. 6020. Simplified applications.
Sec. 6021. National Rural Development Partnership.
Sec. 6022. Grants for NOAA weather radio transmitters.
Sec. 6023. Rural microentrepreneur assistance program.
Sec. 6024. Health care services.
Sec. 6025. Strategic economic and community development.
Sec. 6026. Delta Regional Authority.
Sec. 6027. Northern Great Plains Regional Authority.
Sec. 6028. Rural business investment program.

Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Fees for certain loan guarantees.
Sec. 6102. Guarantees for bonds and notes issued for electrification or telephone purposes.
Sec. 6103. Expansion of 911 access.
Sec. 6104. Access to broadband telecommunications services in rural areas.
Sec. 6105. Rural Gigabit Network Pilot Program.

Subtitle C--Miscellaneous

Sec. 6201. Distance learning and telemedicine.
Sec. 6202. Agricultural transportation.
Sec. 6203. Value-added agricultural product market development grants.
Sec. 6204. Agriculture innovation center demonstration program.
Sec. 6205. Rural energy savings program.
Sec. 6206. Study of rural transportation issues.
Sec. 6207. Regional economic and infrastructure development.
Sec. 6208. Definition of rural area for purposes of the Housing Act of 1949.
Sec. 6209. Program metrics.
Sec. 6210. Funding of pending rural development loan and grant applications.

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.
Sec. 7104. Veterinary services grant program.
Sec. 7105. Grants and fellowships for food and agriculture sciences education.
Sec. 7106. Agricultural and food policy research centers.
Sec. 7107. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions.
Sec. 7108. Repeal of human nutrition intervention and health promotion research program.
Sec. 7109. Repeal of pilot research program to combine medical and agricultural research.
Sec. 7110. Nutrition education program.
Sec. 7111. Continuing animal health and disease research programs.
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 equipment 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 education 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 insular area institutions of higher education.
Sec. 7128. Matching funds requirement.
Sec. 7129. Designation of Central State University as 1890 institution.

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. National Agricultural Weather Information System.
Sec. 7207. Repeal of rural electronic commerce extension program.
Sec. 7208. 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 research 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.

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 program.
Sec. 7303. Support for research regarding diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica.
Sec. 7304. Repeal of Bovine Johne's disease control program.
Sec. 7305. Grants for youth organizations.
Sec. 7306. Specialty crop research initiative.
Sec. 7307. [H7308] Food animal residue avoidance database program.
Sec. 7308. Repeal of national swine research center.
Sec. 7309. Office of pest management policy.
Sec. 7310. Forestry products advanced utilization research.
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. Competitive, Special, and Facilities Research Grant Act.
Sec. 7405. Renewable Resources Extension Act of 1978.
Sec. 7406. National Aquaculture Act of 1980.
Sec. 7407. Repeal of use of remote sensing data.
Sec. 7408. Repeal of reports under Farm Security and Rural Investment Act of 2002.
Sec. 7409. Beginning farmer and rancher development program.
Sec. 7410. National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985.

Subtitle E--Food, Conservation, and Energy Act of 2008

Part I--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 II--Miscellaneous Provisions

Sec. 7511. Enhanced use lease authority pilot program.
Sec. 7512. Grazinglands research laboratory.
Sec. 7513. Budget submission and funding.
Sec. 7514. Repeal of seed distribution.
Sec. 7515. Natural products research program.
Sec. 7516. Sun grant program.
Sec. 7517. Repeal of study and report on food deserts.
Sec. 7518. Repeal of agricultural and rural transportation research and education.

Subtitle F--Miscellaneous Provisions

Sec. 7601. Foundation for Food and Agriculture Research.
Sec. 7602. Concessions and agreements with nonprofit organizations for National Arboretum.
Sec. 7603. Agricultural and food law research, legal tools, and information.
Sec. 7604. Cotton Disease Research Report.
Sec. 7605. Miscellaneous technical corrections.
Sec. 7606. Legitimacy of industrial hemp research.

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 leadership 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.

Subtitle C--Reauthorization of Other Forestry-Related Laws

Sec. 8201. Rural revitalization technologies.
Sec. 8202. Office of International Forestry.
Sec. 8203. Healthy forests reserve program.
Sec. 8204. Insect and disease infestation.
Sec. 8205. Stewardship end result contracting projects.
Sec. 8206. Good neighbor authority.

Subtitle D--Miscellaneous Provisions

Sec. 8301. Revision of strategic plan for forest inventory and analysis.
Sec. 8302. Forest service participation in ACES program.
Sec. 8303. Extension of stewardship contracts authority regarding use of designation by prescription to all thinning sales under National Forest Management Act of 1976.
Sec. 8304. Reimbursement of fire funds.
Sec. 8305. Forest Service large airtanker and aerial asset firefighting recapitalization pilot program.
Sec. 8306. Land conveyance, Jefferson National Forest in Wise County, Virginia.

TITLE IX--ENERGY

Sec. 9001. Definitions.
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. Repeal of forest biomass for energy.
Sec. 9012. Community wood energy program.
Sec. 9013. Repeal of biofuels infrastructure study.
Sec. 9014. Repeal of renewable fertilizer study.
Sec. 9015. Energy efficiency report for USDA facilities.

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. Consolidation of plant pest and disease management and disaster prevention programs.
Sec. 10008. Importation of seed.
Sec. 10009. Bulk shipments of apples to Canada.
Sec. 10010. Specialty crop block grants.
Sec. 10011. Department of Agriculture consultation regarding enforcement of certain labor law provisions.
Sec. 10012. Report on honey.
Sec. 10013. Reports to Congress.
Sec. 10014. Stay of regulations.
Sec. 10015. Regulation of sulfuryl fluoride.
Sec. 10016. Local food production and program evaluation.
Sec. 10017. Clarification of use of funds for technical assistance.

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. Crop margin coverage option.
Sec. 11005. Premium amounts for catastrophic risk protection.
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 of policies and Board review and approval.
Sec. 11011. Consultation.
Sec. 11012. Budget limitations on renegotiation of the standard reinsurance agreement.
Sec. 11013. Test weight for corn.
Sec. 11014. Crop production on native sod.
Sec. 11015. Coverage levels by practice.
Sec. 11016. Beginning farmer and rancher provisions.
Sec. 11017. Stacked income protection plan for producers of upland cotton.
Sec. 11018. Peanut revenue crop insurance.
Sec. 11019. Authority to correct errors.
Sec. 11020. Implementation.
Sec. 11021. Crop insurance fraud.
Sec. 11022. Research and development priorities.
Sec. 11023. Crop insurance for organic crops.
Sec. 11024. Program compliance partnerships.
Sec. 11025. Pilot programs.
Sec. 11026. Index-based weather insurance pilot program.
Sec. 11027. Enhancing producer self-help through farm financial benchmarking.
Sec. 11028. Technical amendments.

TITLE XII--MISCELLANEOUS

Subtitle A--Livestock

Sec. 12101. Trichinae certification program.
Sec. 12102. Sheep production and marketing grant program.
Sec. 12103. National Aquatic Animal Health Plan.
Sec. 12104. Country of origin labeling.
Sec. 12105. National animal health laboratory network.
Sec. 12106. Food safety inspection.
Sec. 12107. National Poultry Improvement Plan.
Sec. 12108. Sense of Congress regarding feral swine eradication.

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 Center.
Sec. 12204. Receipt for service or denial of service from certain department of agriculture agencies.

Subtitle C--Other Miscellaneous Provisions

Sec. 12301. Grants to improve supply, stability, safety, and training of agricultural labor force.
Sec. 12302. Program benefit eligibility status for participants in high plains water study.
Sec. 12303. Office of Tribal Relations.
Sec. 12304. Military Veterans Agricultural Liaison.
Sec. 12305. Noninsured crop assistance program.
Sec. 12306. Acer access and development program.
Sec. 12307. Science Advisory Board.
Sec. 12308. Amendments to Animal Welfare Act.
Sec. 12309. Produce represented as grown in the United States when it is not in fact grown in the United States.
Sec. 12310. Report on water sharing.
Sec. 12311. Scientific and economic analysis of the FDA Food Safety Modernization Act.
Sec. 12312. Payment in lieu of taxes.
Sec. 12313. Silvicultural activities.
Sec. 12314. Pima agriculture cotton trust fund.
Sec. 12315. Agriculture Wool Apparel Manufacturers Trust Fund.
Sec. 12316. Wool research and promotion.

Subtitle D--Oilheat Efficiency, Renewable Fuel Research and Jobs Training

Sec. 12401. Short title.
Sec. 12402. Findings and purposes.
Sec. 12403. Definitions.
Sec. 12404. Membership.
Sec. 12405. Functions.
Sec. 12406. Assessments.
Sec. 12407. Market survey and consumer protection.
Sec. 12408. Lobbying restrictions.
Sec. 12409. Noncompliance.
Sec. 12410. Sunset.

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

PART I--REPEALS

SEC. 1101. REPEAL OF DIRECT PAYMENTS.

Sections 1103 and 1303 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8753) are repealed.

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 Energy 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 covered commodities (as defined in section 1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm.

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 commodities (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.

PART II--COMMODITY POLICY

SEC. 1111. DEFINITIONS.

In this subtitle and subtitle B:
(1) ACTUAL CROP REVENUE- The term `actual crop revenue', with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1117(b).
(2) AGRICULTURE RISK COVERAGE- The term `agriculture risk coverage' means coverage provided under section 1117.
(3) AGRICULTURE RISK COVERAGE GUARANTEE- The term `agriculture risk coverage guarantee', with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1117(c).
(4) BASE ACRES-
(A) IN GENERAL- The term `base acres', with respect to a covered commodity on a farm, means the number of acres in effect under sections 1001 and 1301 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702, 8751), as adjusted pursuant to sections 1101, 1108, and 1302 of such Act (7 U.S.C. 8711, 8718, 8752), as in effect on September 30, 2013, subject to any reallocation, adjustment, or reduction under section 1112 of this Act.
(B) INCLUSION OF GENERIC BASE ACRES- The term `base acres' includes any generic base acres planted to a covered commodity as determined in section 1114(b).
(5) COUNTY COVERAGE- The term `county coverage' means agriculture risk coverage selected under section 1115(b)(1) to be obtained at the county level.
(6) 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 peanuts.
(7) 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 1116(b) to determine whether price loss coverage payments are required to be provided for that crop year.
(8) 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 staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary 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 authorized by the Secretary, ginned on another type gin for experimental purposes.
(9) GENERIC BASE ACRES- The term `generic base acres' means the number of base acres for cotton in effect under section 1001 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702), as adjusted pursuant to section 1101 of such Act (7 U.S.C. 8711), as in effect on September 30, 2013, subject to any adjustment or reduction under section 1112 of this Act.
(10) INDIVIDUAL COVERAGE- The term `individual coverage' means agriculture risk coverage selected under section 1115(b)(2) to be obtained at the farm level.
(11) MEDIUM GRAIN RICE- The term `medium grain rice' includes short grain rice and temperate japonica rice.
(12) OTHER OILSEED- The term `other oilseed' means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary.
(13) PAYMENT ACRES- The term `payment acres', with respect to the provision of price loss coverage payments and agriculture risk coverage payments, means the number of acres determined for a farm under section 1114.
(14) PAYMENT YIELD- The term `payment yield', for a farm for a covered commodity--
(A) means the yield used to make payments pursuant to section 1104 or 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on September 30, 2013; or
(B) means the yield established under section 1113 of this Act.
(15) PRICE LOSS COVERAGE- The term `price loss coverage' means coverage provided under section 1116.
(16) PRODUCER-
(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 available for marketing from the farm, or would have shared had the crop been produced.
(B) HYBRID SEED- In determining whether a grower of hybrid seed is a producer, the Secretary shall--
(i) not take into consideration the existence 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.
(17) PULSE CROP- The term `pulse crop' means dry peas, lentils, small chickpeas, and large chickpeas.
(18) REFERENCE PRICE- The term `reference price', with respect to a covered commodity for a crop year, means the following:
(A) For wheat, $5.50 per bushel.
(B) For corn, $3.70 per bushel.
(C) For grain sorghum, $3.95 per bushel.
(D) For barley, $4.95 per bushel.
(E) For oats, $2.40 per bushel.
(F) For long grain rice, $14.00 per hundredweight.
(G) For medium grain rice, $14.00 per hundredweight.
(H) For soybeans, $8.40 per bushel.
(I) For other oilseeds, $20.15 per hundredweight.
(J) For peanuts, $535.00 per ton.
(K) For dry peas, $11.00 per hundredweight.
(L) For lentils, $19.97 per hundredweight.
(M) For small chickpeas, $19.04 per hundredweight.
(N) For large chickpeas, $21.54 per hundredweight.
(19) SECRETARY- The term `Secretary' means the Secretary of Agriculture.
(20) STATE- The term `State' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United States.
(21) TEMPERATE JAPONICA RICE- The term `temperate japonica rice' means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions, in the Western United States, as determined by the Secretary, for the purpose of--
(A) the reallocation of base acres under section 1112;
(B) the establishment of a reference price (as required under section 1116(g)) and an effective price pursuant to section 1116; and
(C) the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to section 1117.
(22) TRANSITIONAL YIELD- The term `transitional yield' has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).
(23) UNITED STATES- The term `United States', when used in a geographical sense, means all of the States.
(24) 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) 1 1/8 -inch upland cotton and for Middling (M) 1 3/32 -inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.

SEC. 1112. BASE ACRES.

(a) Retention or 1-time Reallocation of Base Acres-
(1) ELECTION REQUIRED-
(A) NOTICE OF ELECTION OPPORTUNITY- As soon as practicable after the date of enactment of this Act, the Secretary shall provide notice to the owners of a farm regarding their opportunity to make an election, in the manner provided in this subsection--
(i) to retain base acres, including any generic base acres, as provided in paragraph (2); or
(ii) in lieu of retaining base acres, to reallocate base acres, other than any generic base acres, as provided in paragraph (3).
(B) CONTENT OF NOTICE- The notice under subparagraph (A) shall include the following:
(i) Information that the opportunity of an owner to make the election is being provided only once.
(ii) Information regarding the manner in which the owner must make the election and the manner of notifying the Secretary of the election.
(iii) Information regarding the deadline before which the owner must notify the Secretary of the election to be in effect beginning with the 2014 crop year.
(C) EFFECT OF FAILURE TO MAKE ELECTION- If the owner of a farm fails to make the election under this subsection, or fails to timely notify the Secretary of the election as required by subparagraph (B)(iii), the owner shall be deemed to have elected to retain base acres, including generic base acres, as provided in paragraph (2).
(2) RETENTION OF BASE ACRES-
(A) ELECTION TO RETAIN- For the purpose of applying this part to a covered commodity, the Secretary shall give an owner of a farm an opportunity to elect to retain all of the base acres for each covered commodity on the farm.
(B) TREATMENT OF GENERIC BASE ACRES- Generic base acres are automatically retained.
(3) REALLOCATION OF BASE ACRES-
(A) ELECTION TO REALLOCATE- For the purpose of applying this part to covered commodities, the Secretary shall give an owner of a farm an opportunity to elect to reallocate all of the base acres for covered commodities on the farm, as in effect on September 30, 2013, among those covered commodities planted on the farm at any time during the 2009 through 2012 crop years.
(B) REALLOCATION FORMULA- The reallocation of base acres among covered commodities on a farm shall be in proportion to the ratio of--
(i) the 4-year average of--
(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2009 through 2012 crop years; and
(II) any acreage on the farm that the producers were prevented from planting during the 2009 through 2012 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to
(ii) the 4-year average of--
(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage, or other similar purposes for such crop years; and
(II) any acreage on the farm that the producers were prevented from planting during such crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.
(C) TREATMENT OF GENERIC BASE ACRES- Generic base acres are retained and may not be reallocated under this paragraph.
(D) INCLUSION OF ALL 4 YEARS IN AVERAGE- For the purpose of determining a 4-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted.
(E) TREATMENT OF MULTIPLE PLANTING OR PREVENTED PLANTING- For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2009 through 2012 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the commodity to be used for that crop year in determining the 4-year average, but may not include both the initial commodity and the subsequent commodity.
(F) LIMITATION- The reallocation of base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres (including generic base acres) for the farm in excess of the number of base acres in effect for the farm on September 30, 2013.
(4) APPLICATION OF ELECTION TO ALL COVERED COMMODITIES- The election made under this subsection, or deemed to be made under paragraph (1)(C), with respect to a farm shall apply to all of the covered commodities on the farm.
(b) Adjustment of Base Acres-
(1) IN GENERAL- Notwithstanding the election made under subsection (a), the Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm and any generic base acres for the farm whenever any of the following circumstances occur:
(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 Secretary.
(C) The producer has eligible oilseed acreage as the result of the Secretary designating additional 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 agriculture risk coverage with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.
(c) Prevention of Excess Base Acres-
(1) REQUIRED REDUCTION- Notwithstanding the election made under subsection (a), if the sum of the base acres for a farm, including generic base acres, and the acreage described 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 generic base acres for the farm so that the sum of the base acres, including generic base acres, and the acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.
(2) OTHER ACREAGE- For purposes of paragraph (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 producing an agricultural commodity on the acreage.
(C) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under subsection (b)(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 generic base acres for the farm against which the reduction required by paragraph (1) will be made.
(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE- In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.
(d) 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 generic base acres 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 proportionately reduce base acres, including any generic base acres, on a farm for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size 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 agricultural production; or
(ii) is likely to be returned to the previous agricultural use.
(B) REQUIREMENT- The Secretary shall establish procedures to identify land described in subparagraph (A).

SEC. 1113. PAYMENT YIELDS.

(a) Establishment and Purpose- For the purpose of making price loss coverage payments under section 1116, 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 determine the average yield per planted acre for the designated oilseed on a farm for the 1998 through 2001 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 INFORMATION AVAILABLE- To the extent that national average yield information for a designated oilseed 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 oilseed 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 yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1).
(c) Effect of Lack of Payment Yield-
(1) ESTABLISHMENT BY SECRETARY- In the case of a covered commodity on a farm for which base acres have been established or that is planted on generic base acres, if no payment yield is otherwise established for the covered commodity on the farm, 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 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 discretion of the owner of a farm, the owner of a farm shall have a 1-time opportunity to update, on a covered commodity-by-covered-commodity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made.
(2) TIME FOR ELECTION- The election under paragraph (1) shall be made at a time and manner to be in effect beginning with 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 commodity 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 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 commodity 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 commodity, 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).

SEC. 1114. PAYMENT ACRES.

(a) Determination of Payment Acres-
(1) GENERAL RULE- For the purpose of price loss coverage and agriculture risk coverage when county coverage has been selected under section 1115(b)(1), but subject to subsection (e), the payment acres for each covered commodity on a farm shall be equal to 85 percent of the base acres for the covered commodity on the farm.
(2) EFFECT OF INDIVIDUAL COVERAGE- In the case of agriculture risk coverage when individual coverage has been selected under section 1115(b)(2), but subject to subsection (e), the payment acres for a farm shall be equal to 65 percent of the base acres for all of the covered commodities on the farm.
(b) Treatment of Generic Base Acres-
(1) IN GENERAL- In the case of generic base acres, price loss coverage payments and agriculture risk coverage payments are made only with respect to generic base acres planted to a covered commodity for the crop year.
(2) ATTRIBUTION- With respect to a farm containing generic base acres, for the purpose of applying paragraphs (1)(B) and (2)(B) of subsection (a), generic base acres on the farm are attributed to a covered commodity in the following manner:
(A) If a single covered commodity is planted and the total acreage planted exceeds the generic base acres on the farm, the generic base acres are attributed to that covered commodity in an amount equal to the total number of generic base acres.
(B) If multiple covered commodities are planted and the total number of acres planted to all covered commodities on the farm exceeds the generic base acres on the farm, the generic base acres are attributed to each of the covered commodities on the farm on a pro rata basis to reflect the ratio of--
(i) the acreage planted to a covered commodity on the farm; to
(ii) the total acreage planted to all covered commodities on the farm.
(C) If the total number of acres planted to all covered commodities on the farm does not exceed the generic base acres on the farm, the number of acres planted to a covered commodity is attributed to that covered commodity.
(3) TREATED AS ADDITIONAL ACREAGE- When generic base acres are planted to a covered commodity or acreage planted to a covered commodity is attributed to generic base acres, the generic base acres are in addition to other base acres on the farm.
(c) Exclusion- The quantity of payment acres determined under subsection (a) may not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for price loss coverage payments or agriculture risk coverage payments, unless the crop was approved for double cropping in the county, as determined by the Secretary.
(d) Effect of Minimal Payment Acres-
(1) PROHIBITION ON PAYMENTS- Notwithstanding any other provision of this title, a producer on a farm may not receive price loss coverage payments or agriculture risk coverage payments if the sum of the base acres on the farm is 10 acres or less, as determined by the Secretary.
(2) EXCEPTIONS- Paragraph (1) does not apply to a producer that is--
(A) a socially disadvantaged farmer or rancher (as defined in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e))); or
(B) a limited resource farmer or rancher, as defined by the Secretary.
(e) Effect of Planting Fruits and Vegetables-
(1) REDUCTION REQUIRED- In the manner provided in this subsection, payment acres on a farm shall be reduced in any crop year in which fruits, vegetables (other than mung beans and pulse crops), or wild rice have been planted on base acres on a farm.
(2) PRICE LOSS COVERAGE AND COUNTY COVERAGE- In the case of price loss coverage payments and agricultural risk coverage payments using county coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 15 percent of base acres.
(3) INDIVIDUAL COVERAGE- In the case of agricultural risk coverage payments using individual coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 35 percent of base acres.
(4) REDUCTION EXCEPTIONS- No reduction to payment acres shall be made under this subsection if--
(A) cover crops or crops referred to in paragraph (1) are grown solely for conservation purposes and not harvested for use or sale, as determined by the Secretary; or
(B) in any region in which there is a history of double-cropping covered commodities with crops referred to in paragraph (1) and such crops were so double-cropped on the base acres, as determined by the Secretary.

SEC. 1115. PRODUCER ELECTION.

(a) Election Required- For the 2014 through 2018 crop years, all of the producers on a farm shall make a 1-time, irrevocable election to obtain--
(1) price loss coverage under section 1116 on a covered commodity-by-covered-commodity basis; or
(2) agriculture risk coverage under section 1117.
(b) Coverage Options- In the election under subsection (a), the producers on a farm that elect under paragraph (2) of such subsection to obtain agriculture risk coverage under section 1117 shall unanimously select whether to receive agriculture risk coverage payments based on--
(1) county coverage applicable on a covered commodity-by-covered-commodity basis; or
(2) individual coverage applicable to all of the covered commodities on the farm.
(c) Effect of Failure to Make Unanimous Election- If all the producers on a farm fail to make a unanimous election under subsection (a) for the 2014 crop year--
(1) the Secretary shall not make any payments with respect to the farm for the 2014 crop year under section 1116 or 1117; and
(2) the producers on the farm shall be deemed to have elected price loss coverage under section 1116 for all covered commodities on the farm for the 2015 through 2018 crop years.
(d) Effect of Selection of County Coverage- If all the producers on a farm select county coverage for a covered commodity under subsection (b)(1), the Secretary may not make price loss coverage payments under section 1116 to the producers on the farm with respect to that covered commodity.
(e) Effect of Selection of Individual Coverage- If all the producers on a farm select individual coverage under subsection (b)(2), in addition to the selection and election under this section applying to each producer on the farm, the Secretary shall consider, for purposes of making the calculations required by subsections (b)(2) and (c)(3) of section 1117, the producer's share of all farms in the same State--
(1) in which the producer has an interest; and
(2) for which individual coverage has been selected.
(f) Prohibition on Reconstitution- The Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change an election or selection made under this section.

SEC. 1116. PRICE LOSS COVERAGE.

(a) Price Loss Coverage Payments- If all of the producers on a farm make the election under subsection (a) of section 1115 to obtain price loss coverage or, subject to subsection (c)(1) of such section, are deemed to have made such election under subsection (c)(2) of such section, the Secretary shall make price loss coverage payments to producers on the farm on a covered commodity-by-covered-commodity basis if the Secretary determines that, for any of the 2014 through 2018 crop years--
(1) the effective price for the covered commodity for the crop year; is less than
(2) the reference price for the covered commodity for the crop year.
(b) Effective Price- The effective price for a covered commodity for a crop year shall be the higher of--
(1) the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or
(2) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.
(c) Payment Rate- The payment rate shall be equal to the difference between--
(1) the reference price for the covered commodity; and
(2) the effective price determined under subsection (b) for the covered commodity.
(d) Payment Amount- If price loss coverage payments are required to be provided under this section for any of the 2014 through 2018 crop years 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--
(1) the payment rate for the covered commodity under subsection (c);
(2) the payment yield for the covered commodity; and
(3) the payment acres for the covered commodity.
(e) Time for Payments- If the Secretary determines under this section 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 covered commodity.
(f) Effective Price for Barley- In determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price.
(g) Reference Price 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 subparagraphs (F) and (G) of section 1111(18) in order to reflect price premiums.

SEC. 1117. AGRICULTURE RISK COVERAGE.

(a) Agriculture Risk Coverage Payments- If all of the producers on a farm make the election under section 1115(a) to obtain agriculture risk coverage, the Secretary shall make agriculture risk coverage payments to producers on the farm if the Secretary determines that, for any of the 2014 through 2018 crop years--
(1) the actual crop revenue determined under subsection (b) for the crop year; is less than
(2) the agriculture risk coverage guarantee determined under subsection (c) for the crop year.
(b) Actual Crop Revenue-
(1) COUNTY COVERAGE- In the case of county coverage, the amount of the actual crop revenue for a county for a crop year of a covered commodity shall be equal to the product obtained by multiplying--
(A) the actual average county yield per planted acre for the covered commodity, as determined by the Secretary; and
(B) the higher of--
(i) the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or
(ii) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.
(2) INDIVIDUAL COVERAGE- In the case of individual coverage, the amount of the actual crop revenue for a producer on a farm for a crop year shall be based on the producer's share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:
(A) For each covered commodity, the product obtained by multiplying--
(i) the total production of the covered commodity on such farms, as determined by the Secretary; and
(ii) the higher of--
(I) the national average market price received by producers during the 12-month marketing year, as determined by the Secretary; or
(II) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.
(B) The sum of the amounts determined under subparagraph (A) for all covered commodities on such farms.
(C) The quotient obtained by dividing the amount determined under subparagraph (B) by the total planted acres of all covered commodities on such farms.
(c) Agriculture Risk Coverage Guarantee-
(1) IN GENERAL- The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 86 percent of the benchmark revenue.
(2) BENCHMARK REVENUE FOR COUNTY COVERAGE- In the case of county coverage, the benchmark revenue shall be the product obtained by multiplying--
(A) subject to paragraph (4), the average historical county yield as determined by the Secretary for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and
(B) subject to paragraph (5), the national average market price received by producers during the 12-month marketing year for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.
(3) BENCHMARK REVENUE FOR INDIVIDUAL COVERAGE- In the case of individual coverage, the benchmark revenue for a producer on a farm for a crop year shall be based on the producer's share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:
(A) For each covered commodity for each of the most recent 5 crop years, the product obtained by multiplying--
(i) subject to paragraph (4), the yield per planted acre for the covered commodity on such farms, as determined by the Secretary; by
(ii) subject to paragraph (5), the national average market price received by producers during the 12-month marketing year.
(B) For each covered commodity, the average of the revenues determined under subparagraph (A) for the most recent 5 crop years, excluding each of the crop years with the highest and lowest revenues.
(C) For each of the 2014 through 2018 crop years, the sum of the amounts determined under subparagraph (B) for all covered commodities on such farms, but adjusted to reflect the ratio between the total number of acres planted on such farms to a covered commodity and the total acres of all covered commodities planted on such farms.
(4) YIELD CONDITIONS- If the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of the 5 most recent crop years, as determined by the Secretary, is less than 70 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) or (3)(A)(i) shall be 70 percent of the transitional yield.
(5) REFERENCE PRICE- If the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop years is lower than the reference price for the covered commodity, the Secretary shall use the reference price for any of those years for the amounts in paragraph (2)(B) or (3)(A)(ii).
(d) Payment Rate- The payment rate for a covered commodity, in the case of county coverage, or a farm, in the case of individual coverage, shall be equal to the lesser of--
(1) the amount that--
(A) the agriculture risk coverage guarantee for the crop year applicable under subsection (c); exceeds
(B) the actual crop revenue for the crop year applicable under subsection (b); or
(2) 10 percent of the benchmark revenue for the crop year applicable under subsection (c).
(e) Payment Amount- If agriculture risk coverage payments are required to be paid for any of the 2014 through 2018 crop years, the amount of the agriculture risk coverage payment for the crop year shall be determined by multiplying--
(1) the payment rate determined under subsection (d); and
(2) the payment acres determined under section 1114.
(f) Time for Payments- If the Secretary determines that agriculture risk coverage payments are required to be provided for the covered commodity, payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.
(g) Additional Duties of the Secretary- In providing agriculture risk coverage, the Secretary shall--
(1) to the maximum extent practicable, use all available information and analysis, including data mining, to check for anomalies in the determination of agriculture risk coverage payments;
(2) to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;
(3) in the case of individual coverage, assign an average yield for a farm on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary determines that the farm has planted acreage in a quantity that is insufficient to calculate a representative average yield for the farm; and
(4) in the case of county coverage, assign an actual or benchmark county yield for each planted acre for the crop year for the covered commodity on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if--
(A) the Secretary cannot establish the actual or benchmark county yield for each planted acre for a crop year for a covered commodity in the county in accordance with subsection (b)(1) or (c)(2); or
(B) the yield determined under subsection (b)(1) or (c)(2) is an unrepresentative average yield for the county, as determined by the Secretary.

SEC. 1118. 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 protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);
(C) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary; and
(D) to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, 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 paragraph (1).
(3) MODIFICATION- At the request of the transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives of this subsection, as determined 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 incompetent, 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 Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.
(d) Production Reports- As an additional condition on receiving agriculture risk coverage payments for individual coverage, the Secretary shall require a producer on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on all farms in the same State--
(1) in which the producer has an interest; and
(2) for which individual coverage has been selected.
(e) Effect of Inaccurate Reports- No penalty with respect to benefits under this subtitle or subtitle B shall be assessed against a producer on a farm for an inaccurate acreage or production report unless the Secretary determines that the producer on the farm knowingly and willfully falsified the acreage or production report.
(f) Tenants and Sharecroppers- In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.
(g) Sharing of Payments- The Secretary shall provide for the sharing of payments made under this subtitle among the producers on a farm on a fair and equitable basis.

SEC. 1119. TRANSITION ASSISTANCE FOR PRODUCERS OF UPLAND COTTON.

(a) Availability-
(1) PURPOSE- It is the purpose of this section to provide transition assistance to producers of upland cotton in light of the repeal of section 1103 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713), the inapplicability of sections 1116 and 1117 to upland cotton, and the delayed implementation of the Stacked Income Protection Plan required by section 508B of the Federal Crop Insurance Act (7 U.S.C. 1508b), as added by section 11017 of this Act.
(2) 2014 CROP YEAR- For the 2014 crop of upland cotton, the Secretary shall provide transition assistance, pursuant to the terms and conditions of this section, to producers on a farm for which cotton base acres were in existence for the 2013 crop year.
(3) 2015 CROP YEAR- For the 2015 crop of upland cotton, the Secretary shall provide transition assistance, pursuant to the terms and conditions of this section, to producers on a farm--
(A) for which cotton base acres were in existence for the 2013 crop year; and
(B) that is located in a county in which the Stacked Income Protection Plan required by section 508B of the Federal Crop Insurance Act (7 U.S.C. 1508b) is not available to producers of upland cotton for the 2015 crop year.
(b) Transition Assistance Rate- The transition assistance rate shall be equal to the product obtained by multiplying--
(1) the June 12, 2013, midpoint estimate for the marketing year average price of upland cotton received by producers for the marketing year beginning August 1, 2013, minus the December 10, 2013, midpoint estimate for the marketing year average price of upland cotton received by producers for the marketing year beginning August 1, 2013, as contained in the applicable World Agricultural Supply and Demand Estimates report published by the Department of Agriculture; and
(2) the national program yield for upland cotton of 597 pounds per acre.
(c) Calculation of Transition Assistance Amount- The amount of transition assistance to be provided under this section to producers on a farm for a crop year shall be equal to the product obtained by multiplying--
(1) for the 2014 crop year, 60 percent, and for the 2015 crop year, 36.5 percent, of the cotton base acres referred to in subsection (a) for the farm, subject to adjustment or reduction for conservation measures as provided in subsections (b) and (c) of section 1112;
(2) the transition assistance rate in effect for the crop year under subsection (b); and
(3) the payment yield for upland cotton for the farm established for purposes of section 1103(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713(c)(3)), divided by the national program yield for upland cotton of 597 pounds per acre.
(d) Time for Payment- The Secretary may not make transition assistance payments for a crop year under this section before October 1 of the calendar year in which the crop of upland cotton is harvested.
(e) Payment Limitations- Sections 1001 through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308C), as in effect on September 30, 2013, shall apply to the receipt of transition assistance under this section in the same manner as such sections applied to section 1103 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713).

Subtitle B--Marketing Loans

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR LOAN COMMODITIES.

(a) Definition of Loan Commodity- In this subtitle, the term `loan commodity' means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, 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 nonrecourse marketing assistance loans for loan commodities produced on the farm.
(2) TERMS AND CONDITIONS- The marketing assistance loans shall be made under terms and conditions 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 subsection (b) for any quantity of a loan commodity produced on the farm.
(d) Compliance With Conservation and Wetlands Requirements- As a condition of the receipt of a marketing assistance loan under subsection (b), the producer shall 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.) 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 marketing assistance loan under this section, and loan deficiency payments under section 1205, may be obtained at the option of the producers on a farm through--
(A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or
(B) the Farm Service Agency.
(3) STORAGE OF LOAN PEANUTS- As a condition on the approval by the Secretary of an individual 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 nondiscriminatory basis; and
(B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits 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 placed under loan, as determined by the Secretary.
(B) REDEMPTION AND FORFEITURE- The Secretary shall--
(i) require the repayment of handling and other associated costs paid under subparagraph (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 section.
(5) MARKETING- A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts 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.

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 assistance 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 bushel.
(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 each of the 2014 through 2018 crop years, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic plantings, but in no case less than $0.45 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 hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per hundredweight 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 Secretary.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(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.
(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 Oilseeds- The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsection (a)(11).

SEC. 1203. TERM OF LOANS.

(a) Term of Loan- In the case of each loan commodity, 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 upland 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 accordance 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 preceding 30-day period; and
(B) will minimize discrepancies in marketing 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 Federal Government in storing the commodity;
(D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and
(E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.
(b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium Grain Rice- The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.
(c) Repayment Rates for Extra Long Staple Cotton- Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market Price- For purposes 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 Medium 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 quality and location, with the adjustment to include--
(i) a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 1 3/32 -inch; and
(ii) the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and
(B) may be further adjusted, during the period beginning on the date of enactment of this Act and ending on July 31, 2019, if the Secretary determines the adjustment is necessary--
(i) to minimize potential loan forfeitures;
(ii) to minimize the accumulation of stocks of upland cotton by the Federal Government;
(iii) to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and
(iv) to ensure an appropriate transition 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
(II) the forward-crop price quotation is the lowest such quotation available.
(3) GUIDELINES FOR ADDITIONAL ADJUSTMENTS- In making adjustments under this subsection, 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 accordance 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 sunflower 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 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 assistance 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 accordance 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 Federal 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 related infrastructure, the Secretary may modify the repayment 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 effect on a short-term and temporary basis, as determined by the Secretary.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

(a) Availability of Loan Deficiency Payments-
(1) IN GENERAL- Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although 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 section.
(2) UNSHORN PELTS, HAY, AND SILAGE-
(A) MARKETING ASSISTANCE LOANS- Subject 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.
(B) LOAN DEFICIENCY PAYMENT- Effective for each of the 2014 through 2018 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage 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 multiplying--
(1) the payment rate determined under subsection (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 commodity, 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 assistance loan for the loan commodity may be repaid under section 1204.
(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 assistance loan for ungraded wool may be repaid under section 1204.
(3) HAY AND SILAGE- In the case of hay or silage 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 assistance 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 Determination- 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 (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 PAYMENTS FOR GRAZED ACREAGE.

(a) Eligible Producers-
(1) IN GENERAL- Effective for each of the 2014 through 2018 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 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 producer 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 each of 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 section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.
(b) Payment Amount-
(1) IN GENERAL- The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined 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 producer 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 section 1115 with respect to that loan commodity on the farm;
(II) in the case of a farm for which agriculture risk coverage is elected under section 1116(a), the payment yield that would otherwise be in effect with respect to that loan commodity on the farm in the absence of such election; or
(III) in the case of a farm for which no payment yield is otherwise established for that loan commodity on the farm, an appropriate yield established by the Secretary in a manner consistent with section 1113(c).
(2) GRAZING OF TRITICALE ACREAGE- The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined 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 producer 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;
(II) in the case of a farm for which agriculture risk coverage is elected under section 1116(a), the payment yield that would otherwise be in effect for wheat on the farm in the absence of such election; or
(III) in the case of a farm for which no payment yield is otherwise established for wheat on the farm, an appropriate yield established by the Secretary in a manner consistent with section 1113(c).
(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 same manner as loan deficiency payments are made under section 1205.
(2) AVAILABILITY-
(A) IN GENERAL- The Secretary shall establish 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 subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity 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).

SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 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 beginning on August 1, 2014, 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) 1 3/32 -inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately 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 domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.
(4) APPLICATION- The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary's announcement under paragraph (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 subsection if a quota period has been established under subsection (b).
(6) PREFERENTIAL TARIFF TREATMENT- The quantity under a special import quota shall be considered 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 Preference 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 Harmonized Tariff Schedule.
(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 weeks' 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 annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary; and
(ii) the larger of--
(I) average exports of upland cotton during the preceding 6 marketing years; or
(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 (adjusted to 480-pound bales) in which the quota is established;
(ii) production of the current crop; and
(iii) imports to the latest date available 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 average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for 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 consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient 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 consumption 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 quantity for purposes of--
(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 Harmonized 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 period beginning on the date the quota is established by the Secretary.
(3) NO OVERLAP- Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period 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 documented use of that upland cotton during the previous 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 provided under paragraph (1) shall be 3 cents per pound.
(3) ALLOWABLE PURPOSES- Economic adjustment 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 acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.
(4) REVIEW OR AUDIT- The Secretary may conduct 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 Secretary 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 assistance to the Secretary, plus interest, as determined by the Secretary; and
(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 produced 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 the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; 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 competitiveness of such cotton), as determined by the Secretary, 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 export by exporters made in the week following such a consecutive 4-week period.

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 sorghum, 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 inspected, certified commercial scale, including 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 measurements of the standing or stored crop in regions 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-moisture 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 established 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 determined by multiplying--
(A) the acreage of the corn or grain sorghum in a high moisture state harvested on the farm of the producer; by
(B) the lower of--
(i) the payment yield in effect for the calculation of price loss coverage under section 1115, or the payment yield deemed to be in effect or established under subclause (II) or (III) of section 1206(b)(1)(B)(ii), with respect to corn or grain sorghum on a field that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained; or
(ii) the actual yield of corn or grain sorghum on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained.
(b) Recourse Loans Available for Seed Cotton- 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 established for the commodity by the Secretary, plus interest (determined in accordance with section 163 of the Federal Agriculture 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.
(b) Manner of Adjustment- The adjustments under subsection (a) shall, to the maximum extent practicable, 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 determined 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 subsection 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 appropriate adjustments in the loan rate for cotton for differences in quality factors.
(2) TYPES OF ADJUSTMENTS- Loan rate adjustments 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 information used in determining quality adjustments under this subsection;
(B) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and
(C) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).
(3) CONSULTATION WITH PRIVATE SECTOR-
(A) PRIOR TO REVISION- In making adjustments 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 industry.
(B) INAPPLICABILITY OF FEDERAL ADVISORY 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 and may make further adjustments to the administration of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (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 POLICY.

(a) Continuation of Current Program and Loan Rates-
(1) SUGARCANE- Section 156(a) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)) is amended--
(A) by inserting `and' at the end of paragraph (3);
(B) in paragraph (4), by striking `the 2011 crop year; and' and inserting `each of the 2011 through 2018 crop years.'; and
(C) by striking paragraph (5).
(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'.
(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 inserting `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 inserting `2018'.

Subtitle D--Dairy

PART I--MARGIN PROTECTION PROGRAM FOR DAIRY PRODUCERS

SEC. 1401. DEFINITIONS.

In this part and part III:
(1) ACTUAL DAIRY PRODUCTION MARGIN- The term `actual dairy production margin' means the difference 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 operations for all milk sold to plants and dealers in the United States, as determined by the Secretary.
(3) 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.
(4) CONSECUTIVE 2-MONTH PERIOD- The term `consecutive 2-month period' refers to the 2-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or November and December, respectively.
(5) DAIRY OPERATION-
(A) IN GENERAL- The term `dairy operation' means, as determined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer--
(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 individual or entity, which are at least commensurate with the individual or entity's share of the proceeds of the operation.
(B) ADDITIONAL OWNERSHIP STRUCTURES- The Secretary shall determine additional ownership structures to be covered by the definition of dairy operation.
(6) MARGIN PROTECTION PROGRAM- The term `margin protection program' means the margin protection program required by section 1403.
(7) MARGIN PROTECTION PROGRAM PAYMENT- The term `margin protection program payment' means a payment made to a participating dairy operation under the margin protection program pursuant to section 1406.
(8) PARTICIPATING DAIRY OPERATION- The term `participating dairy operation' means a dairy operation that registers under section 1404 to participate in the margin protection program.
(9) PRODUCTION HISTORY- The term `production history' means the production history determined for a participating dairy operation under subsection (a) or (b) of section 1405 when the participating dairy operation first registers to participate in the margin protection program.
(10) SECRETARY- The term `Secretary' means the Secretary of Agriculture.
(11) 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 possession of the United States.

SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY PRODUCTION MARGINS.

(a) Calculation of Average Feed Cost- The Secretary 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 reported 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.
(b) Calculation of Actual Dairy Production Margin-
(1) IN GENERAL- For use in the margin protection program, the Secretary shall calculate the actual dairy production margin for each consecutive 2-month period by subtracting--
(A) the average feed cost for that consecutive 2-month period, determined in accordance with subsection (a); from
(B) the all-milk price for that consecutive 2-month period.
(2) TIME FOR CALCULATION- The calculation required by this subsection shall be made as soon as practicable using the full-month price of the applicable reference month.

SEC. 1403. ESTABLISHMENT OF MARGIN PROTECTION PROGRAM FOR DAIRY PRODUCERS.

Not later than September 1, 2014, the Secretary shall establish and administer a margin protection program for dairy producers under which participating dairy operations are paid a margin protection payment when actual dairy production margins are less than the threshold levels for a margin protection payment.

SEC. 1404. PARTICIPATION OF DAIRY OPERATIONS IN MARGIN PROTECTION PROGRAM.

(a) Eligibility- All dairy operations in the United States shall be eligible to participate in the margin protection program to receive margin protection payments.
(b) Registration Process-
(1) IN GENERAL- The Secretary shall specify the manner and form by which a participating dairy operation may register to participate in the margin protection program.
(2) TREATMENT OF MULTIPRODUCER DAIRY OPERATIONS- If a participating dairy operation is operated by more than 1 dairy producer, all of the dairy producers of the participating dairy operation shall be treated as a single dairy operation for purposes of participating in the margin protection program.
(3) TREATMENT OF PRODUCERS WITH MULTIPLE DAIRY OPERATIONS- If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately register to participate in the margin protection program.
(c) Annual Administrative Fee-
(1) ADMINISTRATIVE FEE REQUIRED- Each participating dairy operation shall--
(A) pay an administrative fee to register to participate in the margin protection program; and
(B) pay the administrative fee annually through the duration of the margin protection program specified in section 1409.
(2) AMOUNT OF FEE- The administrative fee for a participating dairy operation shall be $100.
(3) USE OF FEES- The Secretary shall use administrative fees collected under this subsection to cover administrative costs incurred to carry out the margin protection program.
(d) Relation to Livestock Gross Margin for Dairy Program- A dairy operation may participate in the margin protection program or the livestock gross margin for dairy program under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both.

SEC. 1405. PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERATIONS.

(a) Production History-
(1) IN GENERAL- Except as provided in subsection (b), when a dairy operation first registers to participate in the margin protection program, the production history of the dairy operation for the margin protection program is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012, or 2013 calendar years.
(2) ADJUSTMENT- In subsequent years, the Secretary shall adjust the production history of a participating dairy operation determined under paragraph (1) to reflect any increase in the national average milk production.
(b) Election by New Dairy Operations- In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation:
(1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount.
(2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.
(c) Required Information- A participating dairy operation shall provide all information that the Secretary may require in order to establish the production history of the participating dairy operation for purposes of participating in the margin protection program.

SEC. 1406. MARGIN PROTECTION PAYMENTS.

(a) Coverage Level Threshold and Coverage Percentage- For purposes of receiving margin protection payments for a consecutive 2-month period, a participating dairy operation shall annually elect--
(1) a coverage level threshold that is equal to $4.00, $4.50, $5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00; and
(2) a percentage of coverage, in 5-percent increments, beginning with 25 percent and not exceeding 90 percent of the production history of the participating dairy operation.
(b) Payment Threshold- A participating dairy operation shall receive a margin protection payment whenever the average actual dairy production margin for a consecutive 2-month period is less than the coverage level threshold selected by the participating dairy operation.
(c) Amount of Margin Protection Payment- The margin protection payment for the participating dairy operation shall be determined as follows:
(1) The Secretary shall calculate the amount by which the coverage level threshold selected by the participating dairy operation exceeds the average actual dairy production margin for the consecutive 2-month period.
(2) The amount determined under paragraph (1) shall be multiplied by--
(A) the coverage percentage selected by the participating dairy operation; and
(B) the production history of the participating dairy operation divided by 6.

SEC. 1407. PREMIUMS FOR MARGIN PROTECTION PROGRAM.

(a) Calculation of Premiums- For purposes of participating in the margin protection program, a participating dairy operation shall pay an annual premium equal to the product obtained by multiplying--
(1) the coverage percentage elected by the participating dairy operation under section 1406(a)(2);
(2) the production history of the participating dairy operation; and
(3) the premium per hundredweight of milk imposed by this section for the coverage level selected.
(b) Premium Per Hundredweight for First 4 Million Pounds of Production-
(1) IN GENERAL- For the first 4,000,000 pounds of milk marketings included in the production history of a participating dairy operation, the premium per hundredweight for each coverage level is specified in the table contained in paragraph (2).
(2) PRODUCER PREMIUMS- Except as provided in paragraph (3), the following annual premiums apply:
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