Sec. 8. Agriculture risk coverage
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If all of the producers on a farm make the election under section 6(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 2019 through 2023 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 (including any adjustments under paragraph (3)); 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; and the national average loan rate for a marketing assistance loan for the covered commodity in effect for that crop year under subtitle B of title I of the Agricultural Act of 2014 ( 7 U.S.C. 9031 et seq.). 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 share of the producer in 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 those 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 that crop year under subtitle B of title I of the Agricultural Act of 2014 ( 7 U.S.C. 9031 et seq.). The sum of the amounts determined under subparagraph
(A)for all covered commodities on those farms. The quotient obtained by dividing the amount determined under subparagraph
(B)by the total planted acres of all covered commodities on those farms. The Secretary may adjust county yields under paragraph (1)(A) to reduce disparities between neighboring and nearby counties with similar soils and climate that are not attributable to a localized weather event. The Secretary shall ensure that all adjustments made under this paragraph are balanced so the aggregate amount of payments made under this section as a result of the adjustments for a crop year do not increase. If the Secretary makes adjustments under this paragraph, the Secretary shall make the adjustments in accordance with clause
(ii)or (iii). Subject to subparagraph (B), the Secretary shall allow State committees of the Farm Service Agency to review and recommend adjustments to the initial yield estimates before the adjustments become final to reduce unexplained variation between neighboring or nearby counties with similar soils and climate. The Secretary shall review and approve or reject adjustments recommended under subclause
(I)before the adjustments become final. Subject to subparagraph (B), the Secretary shall allow State committees of the Farm Service Agency or the national office of the Farm Service Agency, in consultation with affected State committees, to review and recommend adjustments to the initial yield estimates before the adjustments become final to reduce unexplained variation between counties in neighboring States. The Secretary shall review and approve or reject adjustments recommended under subclause
(I)before the adjustments become final. The Secretary shall adjust county yields for wheat under paragraph (1)(A) to account for weather-related quality factors, such as protein, falling numbers, or vomitoxin, based on— the average quality adjustment discount factor determined by the Secretary for policies or plans of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq.) for— the applicable crop year; and that county or the applicable region; or a comparable adjustment, as determined by the Secretary, if the factor described in clause
(i)is not available. A yield may not be adjusted by greater than 50 percent under subparagraph (A). The Secretary shall not use a yield adjustment under this paragraph for purposes of subsection (c). The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 90 percent of the benchmark revenue described in paragraph
(2)or (3), as applicable. In the case of county coverage, the benchmark revenue referred to in paragraph
(1)shall be the product obtained by multiplying— subject to paragraphs
(4)and (5), 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 (6), the national average market price received by producers during the 12-month marketing year for the most recent 3 crop years. In the case of individual coverage, the benchmark revenue for a producer on a farm for a crop year shall be based on the share of the producer in 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 paragraphs
(4)and (5), the yield per planted acre for the covered commodity on those farms, as determined by the Secretary; by subject to paragraph (6), 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 2019 through 2023 crop years, the sum of the amounts determined under subparagraph
(B)for all covered commodities on those farms, but adjusted to reflect the ratio that— the total number of acres planted on those farms to a covered commodity; bears to the total acres of all covered commodities planted on those 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 80 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), as applicable, shall be 80 percent of the transitional yield. The Secretary shall adjust the yield determined under paragraph (2)(A) or (3)(A)(i), as applicable, using the same Trend-Adjusted Yield factor that is used under the endorsement under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq.) for that crop and county. If a factor described in subparagraph
(A)is not available for a crop or county, the Secretary shall calculate and use a State or national Trend-Adjusted Yield factor for the crop, as determined by the Secretary. In the case of county coverage, if the national average market price received by producers during the 12-month marketing year for any of the 3 most recent crop years is lower than the national average market price received by producers during the 12-month marketing year for the most recent 10 crop years for the covered commodity, the Secretary shall use the national average market price received by producers during the 12-month marketing year for the most recent 10 crop years for the amount in paragraph (2)(B). In the case of individual coverage, 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 amount in paragraph (3)(A)(i). 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); and 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 2019 through 2023 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 5. 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. For purposes of agriculture risk coverage payments in the case of county coverage, a county may be divided into not greater than 3 administrative units in accordance with this subsection. A county that may be divided into administrative units under this subsection is a county that— is larger than 1,500 square miles; and contains more than 10,000 base acres. Before making any agriculture risk coverage payments for the 2019 crop year, the Farm Service Agency State committee, in consultation with the Farm Service Agency county or area committee of a county described in paragraph (2), may make a 1-time election to divide the county into administrative units under this subsection. For purposes of providing agriculture risk coverage payments in the case of county coverage, the Secretary shall consider an administrative unit elected under paragraph
(3)to be a county for the 2019 through 2023 crop years. 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 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; 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; prioritize the use of yields from sources that provide the greatest geographic coverage of county-level data from the same source; and use the yield, benchmark revenue and payment rate based on the county of the physical location of the farm; and in the case of a farm that crosses county boundaries— split the base acres on a pro rata basis based on the relative quantity of cropland in each county; and calculate any payments on that same pro rata basis.
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