Sec. 2. Payments for direct marketing farmers affected by COVID–19
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Subject to paragraph (2), of the funds of the Commodity Credit Corporation, the Secretary shall use $1,000,000,000 for fiscal year 2020, to remain available until expended, to carry out payments under this section. Of the funds made available under paragraph (1), the Secretary shall reserve 20 percent for payments to socially disadvantaged farmers or ranchers under this section for fiscal year 2020. The Secretary shall make all payments under this section not later than 210 days after the date of the enactment of this Act. The Secretary shall provide a payment to a covered producer that submits to the Secretary an application in accordance with subparagraph
(B)demonstrates, as determined by the Secretary, that— the producer is a covered producer; and either— the revenue of the covered producer was reduced by 5 percent or greater during the covered period, as compared to the benchmark revenue of the covered producer; or the covered producer has incurred increased costs in excess of 5 percent due to the COVID–19 emergency during the covered period. To be eligible to receive a payment under this section, a covered producer shall submit to the Secretary an application described in subparagraph (A), not later than 120 days after the date of the enactment of this Act. Subject to subparagraphs
(B)and (C), the benchmark revenue of a covered producer shall be any 1 calendar year in the 3 calendar years prior to the first day of the covered period, as determined by the covered producer. In the case of a covered producer that has been in operation for less than 1 year before the first day of the covered period, the Secretary shall— determine the benchmark revenue based on comparable farm operations in such manner as the Secretary determines appropriate; and prorate payments under this section. For purposes of demonstrating revenue and expenses under this section, a covered producer or applicant, as applicable, shall use at least one of the following: Self-certification. Contracts, receipts, or other agreements that document direct sales to consumers, food service providers, schools, institutions, restaurants, retailers, and intermediary businesses that market locally or regionally branded products. Records of crop year revenue from 2017 through 2019. Tax documents. Other legitimate documents, as determined by the Secretary. A covered producer that demonstrates revenue and expenses using only self-certification may not receive directly or indirectly a total amount of payments greater than $6,000 under this section. A covered producer that is a very new producer (as described in paragraph (2)(B)) may not demonstrate revenue and expenses under paragraph
(3)using self-certification. The Secretary may not condition a payment under this section on participation in a plan or policy under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq.) or in the noninsured crop assistance program under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 ( 7 U.S.C. 7333 ). A covered producer shall be eligible to receive payments, regardless of whether such covered producer has a farm number. Subject to paragraphs
(2)and (3), the amount of a payment to a covered producer under this section shall be equal to— in the case of a covered producer with a benchmark revenue of less than $5,000, 70 percent of that benchmark revenue, but in no case less than $1,500; in the case of a covered producer with a benchmark revenue of equal to or greater than $5,000 and less than $10,000, 60 percent of that benchmark revenue, but in no case less than $3,500; in the case of a covered producer with a benchmark revenue of equal to or greater than $10,000 and less than $25,000, 55 percent of that benchmark revenue, but in no case less than $6,000; in the case of a covered producer with a benchmark revenue of equal to or greater than $25,000 and less than $100,000, 50 percent of that benchmark revenue, but in no case less than $13,750; in the case of a covered producer with a benchmark revenue of equal to or greater than $100,000 and less than $250,000, 40 percent of that benchmark revenue, but in no case less than $50,000, and not more than $150,000; and in the case of a covered producer with a benchmark revenue of equal to or greater than $250,000 and less than $900,000, $150,000. The total amount of payments received under this section by a covered producer, directly or indirectly, may not exceed $150,000. A payment made to a covered producer under this section shall be reduced by reduced by the amount of any payments received by such covered producer on or before August 28, 2020, under the Coronavirus Food Assistance Program of the Department of Agriculture, as specified in part 9 of title 7, Code of Federal Regulations (or successor regulations). A covered producer may not be eligible to receive a payment under this section if the average adjusted gross income of the covered producer exceeds $900,000. The Secretary shall issue a rule to carry out this section not later than 30 days after the date of the enactment of this Act. During the period beginning on the date of the enactment of this Act and ending on September 30, 2021, the Secretary of Agriculture may not collect any payment made to a covered producer under this section in satisfaction of a claim as authorized under section 3716 of title 31, United States Code. In this Act: The term benchmark revenue means, with respect to a covered producer, the revenue for the 1-year period selected under section 3(b)(2). The term covered period means the period beginning on January 31, 2020, and ending on that date on which the declaration referred to in paragraph
(4)(and any renewal thereof) terminates. The term covered producer means a farmer, livestock producer, shellfish grower, or other producer who derives at least 25 percent of total farm income from any combination of the following direct marketing arrangement in which the producer sells to: The final consumer such as through farmers’ markets, community sponsored agriculture programs, farm stands, or online sales. Retailers including supermarkets, supercenters, restaurants, caterers, independent grocery stores, and food cooperatives. Institutions such as schools, colleges, universities, hospitals, as well as intermediary business such as wholesalers distributors, food hubs. The term covered producer does not include livestock or poultry integrators, processors, or other business entities relating to livestock and poultry production that do not raise livestock or poultry. The term COVID–19 emergency means the public health emergency declared by the Secretary of Health and Human Services under section 319 of the Public Health Service Act ( 42 U.S.C. 247d ) on January 31, 2020, with respect to COVID–19. The term revenue , with respect to a covered producer, means total farm revenue, including revenue derived from agritourism activities conducted by a covered producer. The term Secretary means the Secretary of Agriculture. The term socially disadvantaged farmer or rancher has the meaning given the term in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 ( 7 U.S.C. 2279(a) ). The term farm number has the meaning given the term in section 718.2 of title 7, Code of Federal Regulations (as in effect on the date of enactment of this Act).
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Sec. 2
Payments for direct marketing farmers affected by COVID–19
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