Sec. 1107. Availability of adverse market payments
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For each of the 2014 through 2018 crop years for each covered commodity, the Secretary shall make adverse market payments to producers on farms for which payment yields and base acres are established with respect to the covered commodity if the Secretary determines that the actual price for the covered commodity is less than the reference price for the covered commodity. Except as provided in paragraph (2), for purposes of subsection (a), the actual price for a covered commodity is equal to the higher of the following:
The national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary. The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable period under subtitle B. In the case of long grain rice and medium grain rice, for purposes of subsection (a), the actual price for each type or class of rice is equal to the higher of the following: The national average market price received by producers during the 12-month marketing year for the type or class of rice, as determined by the Secretary.
The national average loan rate for a marketing assistance loan for the type or class of rice in effect for the applicable period under subtitle B. The reference price for a covered commodity shall be determined as follows: Subject to paragraph (2), the reference price for a covered commodity shall be the product obtained by multiplying— 55 percent; by the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.
In the case of long and medium grain rice and peanuts, the reference price shall be— in the case of long and medium grain rice, $13.30 per hundredweight; and in the case of peanuts, $523.77 per ton. The payment rate used to make adverse market payments with respect to a covered commodity for a crop year shall be equal to the amount that— the reference price under subsection
(c)for the covered commodity; exceeds the actual price determined under subsection
(b)for the covered commodity. If adverse market payments are required to be paid under this section for any of the 2014 through 2018 crop years of a covered commodity, the amount of the adverse market payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following: The payment rate specified in subsection (d). The payment acres of the covered commodity on the farm. The payment yield for the covered commodity for the farm. ln carrying out the calculations in subsections
(b)and (c), the Secretary shall differentiate by type or class the national average price of— sunflower seeds; barley, using malting barley values; and wheat. If the Secretary determines under subsection
(a)that adverse market payments are required to be made under this section for the crop of a covered commodity, beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity, the Secretary shall make the adverse market payments for the crop.