Sec. 1107. Farm risk management election
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Except as provided in paragraph (2), if the Secretary determines that payments are required under subsection (b)(1) or (c)(2) for a covered commodity, the Secretary shall make payments for that covered commodity available under such subsection to producers on a farm pursuant to the terms and conditions of this section. Notwithstanding any other provision of this title, a producer on a farm may not receive price loss coverage payments or revenue loss coverage payments if the sum of the planted acres of covered commodities on the farm is 10 acres or less, as determined by the Secretary, unless the producer is— 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 a limited resource farmer or rancher, as defined by the Secretary.
For the 2014 crop year and each succeeding crop year, the Secretary shall make price loss coverage payments to producers on a farm for a covered commodity if the Secretary determines that— the effective price for the covered commodity for the crop year; is less than the reference price for the covered commodity for the crop year. The effective price for a covered commodity for a crop year shall be the higher of— the midseason price; or the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.
The payment rate shall be equal to the difference between— the reference price for the covered commodity; and the effective price determined under paragraph
(2)for the covered commodity. If price loss coverage payments are required to be provided under this subsection for the 2014 crop year or any succeding crop year 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— the payment rate for the covered commodity under paragraph (3); the payment yield for the covered commodity; and the payment acres for the covered commodity. If the Secretary determines under this subsection 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. In determining the effective price for barley in paragraph (2), the Secretary shall use the all-barley price. 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 1104(16) in order to reflect price premiums. As an alternative to receiving price loss coverage payments under subsection
(b)for a covered commodity, all of the owners of the farm may make a one-time, irrevocable election on a covered commodity-by-covered-commodity basis to receive revenue loss coverage payments for each covered commodity in accordance with this subsection. If any of the owners of the farm make different elections on the same covered commodity on the farm, all of the owners of the farm shall be deemed to have not made the election available under this paragraph. In the case of owners of a farm that make the election described in paragraph
(1)for a covered commodity, the Secretary shall make revenue loss coverage payments available under this subsection for the 2014 crop year and each succeeding crop year if the Secretary determines that— the actual county revenue for the crop year for the covered commodity; is less than the county revenue loss coverage trigger for the crop year for the covered commodity. If the Secretary determines under this subsection that revenue loss 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. The amount of the actual county revenue for a crop year of a covered commodity shall be equal to the product obtained by multiplying— the actual county yield, as determined by the Secretary, for each planted acre for the crop year for the covered commodity; and the higher of— the midseason price; or the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B. The county revenue loss coverage trigger for a crop year for a covered commodity on a farm shall equal 85 percent of the benchmark county revenue. The benchmark county revenue shall be the product obtained by multiplying— subject to clause (ii), 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 subject to clause (iii), 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. If the historical county yield in clause (i)(I) 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 clause (i)(I) shall be 70 percent of the transitional yield. If the national marketing year average price in clause (i)(II) 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 clause (i)(II). The payment rate shall be equal to the lesser of— the difference between— the county revenue loss coverage trigger for the covered commodity; and the actual county revenue for the crop year for the covered commodity; or 10 percent of the benchmark county revenue for the crop year for the covered commodity. If revenue loss coverage payments under this subsection are required to be provided for the 2014 crop year or any succeeding crop year of a covered commodity, the amount of the revenue loss coverage payment to be provided to the producers on a farm for the crop year shall be equal to the product obtained by multiplying— the payment rate under paragraph (6); and the payment acres of the covered commodity on the farm. In providing revenue loss coverage payments under this subsection, the Secretary— shall ensure that producers on a farm do not reconstitute the farm of the producers to void or change the election made under paragraph (1); to the maximum extent practicable, shall use all available information and analysis, including data mining, to check for anomalies in the provision of revenue loss coverage payments; to the maximum extent practicable, shall calculate a separate county revenue loss coverage trigger for irrigated and nonirrigated covered commodities and a separate actual county revenue for irrigated and nonirrigated covered commodities; shall assign a 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— the Secretary cannot establish the benchmark county yield for each planted acre for a crop year for a covered commodity in the county in accordance with paragraph (5); or the yield determined under paragraph
(5)is an unrepresentative average yield for the county (as determined by the Secretary); and to the maximum extent practicable, shall ensure that in order to be eligible for a payment under this subsection, the producers on the farm suffered an actual loss on the covered commodity for the crop year for which payment is sought. The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report annually containing an evaluation of the impact of price loss coverage and revenue loss coverage— on the planting, production, price, and export of covered commodities; and on the cost of each commodity program. Notwithstanding any other provision of this section, the total amount of price loss coverage payments and revenue loss coverage payments made under this section during the period of fiscal years 2014 through 2020 shall not exceed $16,956,500,000. Producer agreements required by section 1108 shall specifically state that payments made under this section shall be reduced as necessary to comply with this subsection.
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Sec. 1107
Farm risk management election
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