Sec. 60101. ### (a) Treatment of Seed Cotton

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## SEC. 60101 ###

(a)Treatment of Seed Cotton ####

(1)Designation of seed cotton as a covered commodity Section 1111(6) of the Agricultural Act of 2014 (7 U.S.C. 9011(6)) is amended— #####

(A)by striking “ The term ” and inserting the following: > > ##### “(A) In general > > The term” > ; and #####

(B)by adding at the end the following: > > ##### “(B) Inclusion > > Effective beginning with the 2018 crop year, the term ‘covered commodity’ includes seed cotton.” > . ####

(2)Reference price for seed cotton Section 1111(18) of the Agricultural Act of 2014 (7 U.S.C. 9011(18)) is amended by adding at the end the following: > > ##### “(O) > > For seed cotton, $0.367 per pound.” > . ####

(3)Definition of seed cotton Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended— #####

(A)by redesignating paragraphs

(20)through

(24)as paragraphs

(21)through (25), respectively; and #####

(B)by inserting after paragraph

(19)the following: > > #### “(20) Seed cotton > > The term ‘seed cotton’ means unginned upland cotton that includes both lint and seed.” > . ####

(4)Payment yield Section 1113 of the Agricultural Act of 2014 (7 U.S.C. 9013) is amended by adding at the end the following: > > ### “(e) Payment Yield for Seed Cotton > > > #### “(1) Payment yield > > Subject to paragraph (2), the payment yield for seed cotton for a farm shall be equal to 2.4 times the payment yield for upland cotton for the farm established under section 1104(e)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714(e)(3)) (as in effect on September 30, 2013). > > > #### “(2) Update > > At the sole discretion of the owner of a farm with a yield for upland cotton described in paragraph (1), the owner of the farm shall have a 1-time opportunity to update the payment yield for upland cotton for the farm, as provided in subsection (d), for the purpose of calculating the payment yield for seed cotton under paragraph (1).” > . ####

(5)Payment acres Section 1114(b) of the Agricultural Act of 2014 (7 U.S.C. 9014(b)) is amended by adding at the end the following: > > #### “(4) Seed cotton > > > ##### “(A) In general > > Not later than 90 days after the date of enactment of this paragraph, the Secretary shall require the owner of a farm to allocate all generic base acres on the farm under subparagraph

(B)or (C), or both. > > > ##### “(B) No recent history of covered commodities > > In the case of a farm on which no covered commodities (including seed cotton) were planted or were prevented from being planted at any time during the 2009 through 2016 crop years, the owner of such farm shall allocate generic base acres on the farm to unassigned crop base for which no payments may be made under section 1116 or 1117. > > > ##### “(C) Recent history of covered commodities > > In the case of a farm not described in subparagraph (B), the owner of such farm shall allocate generic base acres on the farm— > > > ###### “(i) > > subject to subparagraph (D), to seed cotton base acres in a quantity equal to the greater of— > > > ###### “(I) > > 80 percent of the generic base acres on the farm; or > > > ###### “(II) > > the average number of seed cotton acres planted or prevented from being planted on the farm during the 2009 through 2012 crop years (not to exceed the total generic base acres on the farm); or > > > ###### “(ii) > > to base acres for covered commodities (including seed cotton), by applying subparagraphs (B), (D), (E), and

(F)of section 1112(a)(3). > > > ##### “(D) Treatment of residual generic base acres > > In the case of a farm on which generic base acres are allocated under subparagraph (C)(i), the residual generic base acres shall be allocated to unassigned crop base for which no payments may be made under section 1116 or 1117. > > > ##### “(E) Effect of failure to allocate > > In the case of a farm not described in subparagraph

(B)for which the owner of the farm fails to make an election under subparagraph (C), the owner of the farm shall be deemed to have elected to allocate all generic base acres in accordance with subparagraph (C)(i).” > . ####

(6)Recordkeeping regarding unassigned crop base Section 1114 of the Agricultural Act of 2014 (7 U.S.C. 9014) is amended by adding at the end the following: > > ### “(f) Unassigned Crop Base > > The Secretary shall maintain information on generic base acres on a farm allocated as unassigned crop base under subsection (b)(4).” > . ####

(7)Special election period for price loss coverage or agriculture risk coverage Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended— #####

(A)in subsection (a), by striking “For” and inserting “Except as provided in subsection (g), for”; and #####

(B)by adding at the end the following: > > ### “(g) Special Election > > > #### “(1) In general > > In the case of acres allocated to seed cotton on a farm, all of the producers on the farm shall be given the opportunity to make a new 1-time election under subsection

(a)to reflect the designation of seed cotton as a covered commodity for that crop year under section 1111(6)(B). > > > #### “(2) Effect of failure to make unanimous election > > If all the producers on a farm fail to make a unanimous election under paragraph (1), the producers on the farm shall be deemed to have elected price loss coverage under section 1116 for acres allocated on the farm to seed cotton.” > . ####

(8)Effective price Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended by adding at the end the following: > > ### “(h) Effective Price for Seed Cotton > > > #### “(1) In general > > The effective price for seed cotton under subsection

(b)shall be equal to the marketing year average price for seed cotton, as calculated under paragraph (2). > > > #### “(2) Calculation > > The marketing year average price for seed cotton for a crop year shall be equal to the quotient obtained by dividing— > > > ##### “(A) > > the sum obtained by adding— > > > ###### “(i) > > the product obtained by multiplying— > > > ###### “(I) > > the upland cotton lint marketing year average price; and > > > ###### “(II) > > the total United States upland cotton lint production, measured in pounds; and > > > ###### “(ii) > > the product obtained by multiplying— > > > ###### “(I) > > the cottonseed marketing year average price; and > > > ###### “(II) > > the total United States cottonseed production, measured in pounds; by > > > ##### “(B) > > the sum obtained by adding— > > > ###### “(i) > > the total United States upland cotton lint production, measured in pounds; and > > > ###### “(ii) > > the total United States cottonseed production, measured in pounds.” > . ####

(9)Deemed loan rate for seed cotton Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended by adding at the end the following: > > ### “(c) Seed Cotton > > > #### “(1) In general > > For purposes of section 1116(b)(2) and paragraphs (1)(B)(ii) and (2)(A)(ii)(II) of section 1117(b), the loan rate for seed cotton shall be deemed to be equal to $0.25 per pound. > > > #### “(2) Effect > > Nothing in this subsection authorizes any nonrecourse marketing assistance loan under this subtitle for seed cotton.” > . ####

(10)Limitation on stacked income protection plan for producers of upland cotton Section 508B of the Federal Crop Insurance Act (7 U.S.C. 1508b) is amended by adding at the end the following: > > ### “(f) Limitation > > Effective beginning with the 2019 crop year, a farm shall not be eligible for the Stacked Income Protection Plan for upland cotton for a crop year for which the farm is enrolled in coverage for seed cotton under— > > > #### “(1) > > price loss coverage under section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016); or > > > #### “(2) > > agriculture risk coverage under section 1117 of that Act (7 U.S.C. 9017).” > . ####

(11)Technical correction Section 1114(b)(2) of the Agricultural Act of 2014 (7 U.S.C. 9014(b)(2)) is amended by striking “paragraphs (1)(B) and (2)(B)” and inserting “paragraphs

(1)and (2)”. ####

(12)Administration **[**[7 U.S.C. 9011 note](/us/usc/t7/s9011)**]** The Secretary of Agriculture shall carry out the amendments made by this subsection in accordance with section 1601 of the Agricultural Act of 2014 (7 U.S.C. 9091). ####

(13)Application **[**[7 U.S.C. 9011 note](/us/usc/t7/s9011)**]** Except as provided in paragraph (10), the amendments made by this subsection shall apply beginning with the 2018 crop year. ###

(b)Margin Protection Program for Dairy Producers ####

(1)Monthly calculation of actual dairy production margin #####

(A)Definitions Section 1401 of the Agricultural Act of 2014 (7 U.S.C. 9051) is amended— ######

(i)by striking paragraph (4); and ######

(ii)by redesignating paragraphs

(5)through

(11)as paragraphs

(4)through (10), respectively. #####

(B)Calculation of actual dairy production margin Section 1402(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9052(b)(1)) is amended by striking “consecutive 2-month period” each place it appears and inserting “month”. #####

(C)Margin protection payments Section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056) is amended— ######

(i)by striking “consecutive 2-month period” each place it appears and inserting “month”; and ######

(ii)in subsection (c)(2)(B), by striking “6” and inserting “12”. ####

(2)Participation of dairy operations in margin protection program Section 1404 of the Agricultural Act of 2014 (7 U.S.C. 9054) is amended— #####

(A)in subsection (b)— ######

(i)in paragraph (1), by inserting “, including the establishment of a date each calendar year by which a dairy operation shall register for the calendar year” before the period at the end; ######

(ii)by redesignating paragraphs

(2)and

(3)as paragraphs

(3)and (4), respectively; and ######

(iii)by inserting after paragraph

(1)the following: > > #### “(2) Extension of election period for 2018 calendar year > > The Secretary shall extend the election period for the 2018 calendar year by not less than 90 days after the date of enactment of the Bipartisan Budget Act of 2018 or such additional period as the Secretary determines is necessary for dairy operations to make new elections to participate for that calendar year, including dairy operations that elected to so participate before that date of enactment.” > ; and #####

(B)in subsection (c), by adding at the end the following: > > #### “(4) Exemption > > A limited resource, beginning, veteran, or socially disadvantaged farmer, as defined by the Secretary, shall be exempt from the administrative fee under this subsection.” > . ####

(3)Production history of participating dairy operations Section 1405(a) of the Agricultural Act of 2014 (7 U.S.C. 9055(a)) is amended by adding at the end the following: > > #### “(3) Continued applicability of base production history > > A production history established for a dairy operation under paragraph

(1)shall be the base production history for the dairy operation in subsequent years (as adjusted under paragraph (2)).” > . ####

(4)Premiums for margin protection program Section 1407 of the Agricultural Act of 2014 (7 U.S.C. 9057) is amended— #####

(A)in subsection (b)— ######

(i)by striking the subsection heading and inserting the following: “Tier I: Premium Per Hundredweight for First 5,000,000 Pounds of Production.—”; ######

(ii)in paragraph (1), by striking “4,000,000” and inserting “5,000,000”; and ######

(iii)in paragraph (2)— ######

(I)by striking “$0.010” and inserting “None”; ######

(II)by striking “$0.025” and inserting “None”; ######

(III)by striking “$0.040” and inserting “$0.009”; ######

(IV)by striking “$0.055” and inserting “$0.016”; ######

(V)by striking “$0.090” and inserting “$0.040”; ######

(VI)by striking “$0.217” and inserting “$0.063”; ######

(VII)by striking “$0.300” and inserting “$0.087”; and ######

(VIII)by striking “$0.475” and inserting “$0.142”; and #####

(B)in subsection (c)— ######

(i)by striking the subsection heading and inserting the following: “Tier II: Premium Per Hundredweight for Production in Excess of 5,000,000 Pounds.—”; and ######

(ii)in paragraph (1), by striking “4,000,000” and inserting “5,000,000”. ####

(5)Application **[**[7 U.S.C. 9051 note](/us/usc/t7/s9051)**]** The amendments made by this subsection shall apply beginning with the 2018 calendar year. ###

(c)Limitation on Crop Insurance Livestock-Related Expenditures ####

(1)In general Section 523(b) of the Federal Crop Insurance Act (7 U.S.C. 1523(b)) is amended by striking paragraph (10). ####

(2)Conforming amendments Section 516 of the Federal Crop Insurance Act (7 U.S.C. 1516) is amended in subsections (a)(2)(C) and (b)(1)(D) by striking “subsections (a)(3)(E)(ii) and (b)(10) of section 523” each place it appears and inserting “subsection (a)(3)(E)(ii) of that section”.

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