Sec. 1116. Price loss coverage
412 words·~2 min read·
/bill/115/hr/2/ih/section-1116A 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 subsection
(a)of section 1115 to obtain price loss coverage or, subject to subsection (b)(1) of such section, are deemed to have made such election under subsection (b)(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 2019 through 2023 crop years— the effective price for the covered commodity for the crop year; is less than the effective 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 marketing year average 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 effective reference price for the covered commodity; and the effective price determined under subsection
(b)for the covered commodity. If price loss coverage payments are required to be provided under this section for any of the 2019 through 2023 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— the payment rate for the covered commodity under subsection (c); the payment yield for the covered commodity; and the payment acres for the covered commodity determined under section 1114. 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. In determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price. In order to reflect price premiums, the Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to the amount established under subparagraph
(F)of section 1111(17), as adjusted by paragraph
(7)of such section, multiplied by the ratio obtained by dividing— the simple average of the marketing year average price of medium grain rice from the 2012 through 2016 crop years; by the simple average of the marketing year average price of all rice from the 2012 through 2016 crop years.