Sec. 1117. Agriculture risk coverage
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/bill/113/hr/2642/enr/section-1117·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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— the actual crop revenue determined under subsection
(b)for the crop year; is less than the agriculture risk coverage guarantee determined under subsection
(c)for the crop year. 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— the actual average county yield per planted acre for the covered commodity, as determined by the Secretary; and the higher of— the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B. 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: For each covered commodity, the product obtained by multiplying— the total production of the covered commodity on such farms, as determined by the Secretary; and the higher of— the national average market price received by producers during the 12-month marketing year, as determined by the Secretary; 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 sum of the amounts determined under subparagraph
(A)for all covered commodities on such farms. The quotient obtained by dividing the amount determined under subparagraph
(B)by the total planted acres of all covered commodities on such farms. The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 86 percent of the benchmark revenue. In the case of county coverage, the benchmark revenue shall be the product obtained by multiplying— 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 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. 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: For each covered commodity for each of the most recent 5 crop years, the product obtained by multiplying— subject to paragraph (4), the yield per planted acre for the covered commodity on such farms, as determined by the Secretary; by subject to paragraph (5), the national average market price received by producers during the 12-month marketing year. 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. 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. 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. 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). 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— the amount that— the agriculture risk coverage guarantee for the crop year applicable under subsection (c); exceeds the actual crop revenue for the crop year applicable under subsection (b); or 10 percent of the benchmark revenue for the crop year applicable under subsection (c). 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— the payment rate determined under subsection (d); and the payment acres determined under section 1114. 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. In providing agriculture risk coverage, the Secretary shall— 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; to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities; 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 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— 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 the yield determined under subsection (b)(1) or (c)(2) is an unrepresentative average yield for the county, as determined by the Secretary.