,,ii #aaeth ,,congress #b;d ,session ,s4 #bgdi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #be1 #bjah,mr4 ,brown 7for himself and ,mr4 ,thune7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to provide for the reform and continuation of agricultural commodity programs of the ,department of ,agriculture through fiscal year #bjbc1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,agriculture ,risk ,coverage ,improvement and ,innovation ,act of #bjah4 #b4 ,definitions ,in this ,act3 7#a7 ,actual crop revenue ,the term actual crop revenue1 with respect to a covered commodity for a crop year1 means the amount determined by the ,secretary under section #h7;b74 7#b7 ,agriculture risk coverage ,the term agriculture risk coverage means coverage provided under section #h4 7#c7 ,agriculture risk coverage guarantee ,the term agriculture risk coverage guarantee1 with respect to a covered commodity for a crop year1 means the amount determined by the ,secretary under section #h7;c74 7#d7 ,base acres ,the term base acres1 with respect to a covered commodity on a farm1 means the number of acres in effect under section #aaaa of the ,agricultural ,act of #bjad 7#g ,u4,s4,c4 #ijaa71 as in effect on ,september #cj1 #bjah1 subject to any reallocation1 adjustment1 or reduction under section #c4 7#e7 ,covered commodity ,the term covered commodity means wheat1 oats1 and barley 7including wheat1 oats1 and barley used for haying and grazing71 corn1 grain sorghum1 seed cotton1 long grain rice1 medium grain rice1 pulse crops1 soybeans1 other oilseeds1 and peanuts4 7#f7 ,effective price ,the term effective price1 with respect to a covered commodity for a crop year1 means the price calculated by the ,secretary under section #g7;b7 to determine whether price loss coverage payments are required to be provided for that crop year4 7#g7 ,individual coverage ,the term individual coverage means agriculture risk coverage selected under section #f7;b77#b7 to be obtained at the farm level4 7#h7 ,medium grain rice ,the term medium grain rice includes short grain rice and temperate japonica rice4 7#i7 ,other oilseed ,the term other oilseed means a crop of sunflower seed1 rapeseed1 canola1 safflower1 flaxseed1 mustard seed1 crambe1 sesame seed1 or any oilseed designated by the ,secretary4 7#aj7 ,payment acres ,the term payment acres1 with respect to the provision of price loss coverage payments and agriculture risk coverage payments1 means the number of acres determined for a farm under section #e4 7#aa7 ,payment yield ,the term payment yield1 for a farm for a covered commodity1 means1 as applicable-- 7,a7 the yield used to make payments pursuant to section #aajd or #acjd of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgad1 #hged71 as in effect on ,september #cj1 #bjah2 7,b7 the yield established under section #d2 or 7,c7 with respect to seed cotton1 the yield established under section #aaac7;e7 of the ,agricultural ,act of #bjad 7#g ,u4,s4,c4 #ijac7;e771 as in effect on ,september #cj1 #bjah4 7#ab7 ,price loss coverage ,the term price loss coverage means coverage provided under section #g4 7#ac7 ,producer 7,a7 ,in general ,the term producer means an owner1 operator1 landlord1 tenant1 or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm1 or would have shared had the crop been produced4 7,b7 ,hybrid seed ,in determining whether a grower of hybrid seed is a producer1 the ,secretary shall-- 7i7 not take into consideration the existence of a hybrid seed contract2 and 7ii7 ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this ,act4 7#ad7 ,pulse crop ,the term pulse crop means dry peas1 lentils1 small chickpeas1 and large chickpeas4 7#ae7 ,reference price ,the term reference price1 with respect to a covered commodity for a crop year1 means the lesser of-- 7,a7 the national average market price received by producers during the #ab-month marketing year for the most recent #aj crop years for the covered commodity2 and 7,b7 7i7 for wheat1 #e4ej per bushel2 7ii7 for corn1 #c4gj per bushel2 7iii7 for grain sorghum1 #c4ie per bushel2 7iv7 for barley1 #d4ie per bushel2 7v7 for oats1 #b4dj per bushel2 7vi7 for seed cotton1 #j4cfg per pound2 7vii7 for long grain rice1 #ad4jj per hundredweight2 7viii7 for medium grain rice1 #ad4jj per hundredweight2 7ix7 for soybeans1 #h4dj per bushel2 7x7 for other oilseeds1 #bj4ae per hundredweight2 7xi7 for peanuts1 #ece4jj per ton2 7xii7 for dry peas1 #aa4jj per hundredweight2 7xiii7 for lentils1 #ai4ig per hundredweight2 7xiv7 for small chickpeas1 #ai4jd per hundredweight2 or 7xv7 for large chickpeas1 #ba4ed per hundredweight4 7#af7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7#ag7 ,state ,the term ,state means-- 7,a7 a ,state2 7,b7 the ,district of ,columbia2 7,c7 the ,commonwealth of ,puerto ,rico2 and 7,d7 any other territory or possession of the ,united ,states4 7#ah7 ,temperate japonica rice ,the term temperate japonica rice means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions1 in the ,western ,united ,states1 as determined by the ,secretary1 for the purpose of-- 7,a7 the reallocation of base acres under section #c2 7,b7 the establishment of a reference price 7as required under section #g7;g77 and an effective price pursuant to section #g2 and 7,c7 the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to section #h4 7#ai7 ,transitional yield ,the term transitional yield has the meaning given the term in section #ejb7;b7 of the ,federal ,crop ,insurance ,act 7#g ,u4,s4,c4 #aejb7;b774 7#bj7 ,united ,states ,the term ,united ,states1 when used in a geographical sense1 means all of the ,states4 #c4 ,base acres 7a7 ,adjustment of base acres 7#a7 ,in general ,the ,secretary shall provide for an adjustment1 as appropriate1 in the base acres for covered commodities for a farm whenever any of the following circumstances occur3 7,a7 ,a conservation reserve contract entered into under section #abca of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chca7 with respect to the farm expires or is voluntarily terminated4 7,b7 ,cropland is released from coverage under a conservation reserve contract by the ,secretary4 7,c7 ,the producer has eligible oilseed acreage as the result of the ,secretary designating additional oilseeds1 which shall be determined in the same manner as eligible oilseed acreage under section #aaja7;a77#a77;,d7 of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgaa7;a77#a77;,d774 7#b7 ,special conservation reserve acreage payment rules ,for the crop year in which a base-acres adjustment under subparagraph 7,a7 or 7,b7 of paragraph 7#a7 is first made1 the owner of the farm shall elect to receive price loss coverage or agriculture risk coverage with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract1 but not both4 7#c7 ,beginning farmers of covered commodities 7,a7 ,definition of beginning farmer of covered commodities ,in this paragraph1 the term beginning farmer of covered commodities means a beginning farmer 7as determined by the ,secretary7 of one or more covered commodities that has not planted or been prevented from planting a covered commodity on any farm for any crop year before the #bjjb crop year4 7,b7 ,opportunity to increase base acres ,the ,secretary shall provide a #a-time opportunity for a beginning farmer of covered commodities to increase base acres on a farm in accordance with subparagraph 7,c7 if-- 7i7 the beginning farmer of covered commodities is an operator on the farm and provides a significant contribution of active personal labor2 7ii7 as determined by the ,secretary1 the beginning farmer of covered commodities has1 or has an option to obtain1 a significant ownership share of the farm or a business producing commodities on the farm2 7iii7 the beginning farmer of covered commodities has not planted or been prevented from planting a covered commodity on the farm for any crop year before the #bjjg crop year2 and 7iv7 the average number of acres planted on the farm to covered commodities during the #bjac through #bjag crop years is greater than the number of base acres on the farm4 7,c7 ,base increase for beginning farmers of covered commodities 7i7 ,in general ,subject to clause 7ii71 the number of base acres added to a farm under subparagraph 7,b7 shall be equal to the difference between-- 7,i7 the #e-year average of-- 7aa7 the acreage planted on the farm to all covered commodities for harvest1 grazing1 haying1 silage1 or other similar purposes for the #bjac through #bjag crop years1 according to records submitted to the ,farm ,service ,agency2 and 7bb7 any acreage on the farm that the beginning farmer of covered commodities was prevented from planting during the #bjac through #bjag crop years to a covered commodity because of drought1 flood1 or other natural disaster1 or other condition beyond the control of the beginning farmer of covered commodities1 according to records submitted to the ,farm ,service ,agency and as determined by the ,secretary2 and 7,,ii7 the number of base acres for covered commodities on the farm4 7ii7 ,limitation ,the ,secretary shall adjust the number of base acres added to a farm under clause 7i7 to prevent the cumulative increase in the number of base acres under this paragraph from exceeding #e1jjj1jjj base acres for all beginning farmers of covered commodities4 7iii7 ,distribution ,base acres added to a farm under clause 7i7 shall be added to the base acreage of each covered commodity on the farm in the proportion that-- 7,i7 the acreage planted to the covered commodity on the farm2 bears to 7,,ii7 the acreage planted to all covered commodities on the farm4 7,d7 ,reduction of base increase ,if a beginning farmer of covered commodities on a farm for which base acres have been increased under subparagraph 7,b7 no longer owns or operates the farm for any of the #bjai through #bjbc crop years1 the base acres on the farm shall be reduced by the number of base acres added to the farm under that subparagraph in the same proportion among covered commodities on the farm described in subparagraph 7,c77iii74 7b7 ,prevention of excess base acres 7#a7 ,required reduction ,if the sum of the base acres for a farm and the acreage described in paragraph 7#b7 exceeds the actual cropland acreage of the farm1 the ,secretary shall reduce the base acres for one or more covered commodities for the farm so that the sum of the base acres and the acreage described in paragraph 7#b7 does not exceed the actual cropland acreage of the farm4 7#b7 ,other acreage ,for purposes of paragraph 7#a71 the ,secretary shall include the following3 7,a7 ,any acreage on the farm enrolled in-- 7i7 the conservation reserve program established under subchapter ,b of chapter #a of subtitle ,d of title ,,xii of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chca et seq472 or 7ii7 the agricultural conservation easement program established under subtitle ,h of title ,,xii of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chfe et seq474 7,b7 ,any other acreage on the farm enrolled in a ,federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage4 7,c7 ,if the ,secretary designates additional oilseeds1 any eligible oilseed acreage1 which shall be determined in the same manner as eligible oilseed acreage under subsection 7a77#a77;,c74 7#c7 ,selection of acres ,the ,secretary shall give the owner of the farm the opportunity to select the base acres for a covered commodity for the farm against which the reduction required by paragraph 7#a7 will be made4 7#d7 ,exception for double-cropped acreage ,in applying paragraph 7#a71 the ,secretary shall make an exception in the case of double cropping1 as determined by the ,secretary4 7c7 ,reduction in base acres 7#a7 ,reduction at option of owner 7,a7 ,in general ,the owner of a farm may reduce1 at any time1 the base acres for any covered commodity for the farm4 7,b7 ,effect of reduction ,a reduction under subparagraph 7,a7 shall be permanent and made in a manner prescribed by the ,secretary4 7#b7 ,required action by ,secretary 7,a7 ,in general ,the ,secretary shall proportionately reduce base acres on a farm for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size of the tracts and the density of the subdivision is such that the land is unlikely to return to the previous agricultural use1 unless the producers on the farm demonstrate that the land-- 7i7 remains devoted to commercial agricultural production2 or 7ii7 is likely to be returned to the previous agricultural use4 7,b7 ,requirement ,the ,secretary shall establish procedures to identify land described in subparagraph 7,a74 #d4 ,payment yields 7a7 ,establishment and purpose ,for the purpose of making price loss coverage payments under section #g1 the ,secretary shall provide for the establishment of a yield for each farm for any designated oilseed for which a payment yield was not established under section #aajb of the ,food1 ,conservation1 and ,energy ,act of #bjjh 7#g ,u4,s4,c4 #hgab7 in accordance with this section4 7b7 ,payment yields for designated oilseeds 7#a7 ,determination of average yield ,in the case of designated oilseeds1 the ,secretary shall determine the average yield per planted acre for the designated oilseed on a farm for the #aiih through #bjja crop years1 excluding any crop year in which the acreage planted to the designated oilseed was zero4 7#b7 ,adjustment for payment yield 7,a7 ,in general ,the payment yield for a farm for a designated oilseed shall be equal to the product of the following3 7i7 ,the average yield for the designated oilseed determined under paragraph 7#a74 7ii7 ,the ratio resulting from dividing the national average yield for the designated oilseed for the #aiha through #aihe crops by the national average yield for the designated oilseed for the #aiih through #bjja crops4 7,b7 ,no national average yield information available ,to the extent that national average yield information for a designated oilseed is not available1 the ,secretary shall use such information as the ,secretary determines to be fair and equitable to establish a national average yield under this section4 7#c7 ,use of county average yield ,if the yield per planted acre for a crop of a designated oilseed for a farm for any of the #aiih through #bjja crop years was less than #ge percent of the county yield for that designated oilseed1 the ,secretary shall assign a yield for that crop year equal to #ge percent of the county yield for the purpose of determining the average under paragraph 7#a74 7c7 ,effect of lack of payment yield 7#a7 ,establishment by ,secretary ,in the case of a covered commodity on a farm for which base acres have been established1 if no payment yield is otherwise established for the covered commodity on the farm1 the ,secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph 7#b74 7#b7 ,use of similarly situated farms 7,a7 ,in general ,to establish an appropriate payment yield for a covered commodity on a farm as required by paragraph 7#a71 the ,secretary shall take into consideration the farm program payment yields applicable to that covered commodity for similarly situated farms4 7,b7 ,use of farm program payment yields in appeal ,the use of farm program payment yields described in subparagraph 7,a7 in an appeal1 by the ,secretary or by the producer1 shall not be subject to any other provision of law4 #e4 ,payment acres 7a7 ,determination of payment acres 7#a7 ,in general ,for the purpose of price loss coverage and agriculture risk coverage when county coverage has been selected under section #f7;b77#a71 subject to subsection 7d71 the payment acres for each covered commodity on a farm shall be equal to #he percent of the base acres for the covered commodity on the farm 7not including any base acres excluded under subsection 7e774 7#b7 ,effect of individual coverage ,in the case of agriculture risk coverage when individual coverage has been selected under section #f7;b77#b71 but subject to subsection 7e71 the payment acres for a farm shall be equal to #fe percent of the base acres for all of the covered commodities on the farm4 7b7 ,exclusion ,the quantity of payment acres determined under subsection 7a7 may not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for price loss coverage payments or agriculture risk coverage payments1 unless the crop was approved for double cropping in the county1 as determined by the ,secretary4 7c7 ,effect of minimal payment acres 7#a7 ,prohibition on payments ,notwithstanding any other provision of this ,act1 a producer on a farm may not receive price loss coverage payments or agriculture risk coverage payments if the sum of the base acres on the farm is #aj acres or less1 as determined by the ,secretary4 7#b7 ,exceptions ,paragraph 7#a7 does not apply to a producer that is-- 7,a7 a socially disadvantaged farmer or rancher 7as defined in section #cee7;e7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #bjjc7;e7772 or 7,b7 a limited resource farmer or rancher1 as defined by the ,secretary4 7d7 ,effect of planting fruits and vegetables 7#a7 ,reduction required ,in the manner provided in this subsection1 payment acres on a farm shall be reduced in any crop year in which fruits1 vegetables 7other than mung beans and pulse crops71 or wild rice have been planted on base acres on a farm4 7#b7 ,quantity of reduction 7,a7 ,price loss coverage and county coverage ,in the case of price loss coverage payments and agricultural risk coverage payments using county coverage1 the reduction under paragraph 7#a7 shall be the amount equal to the base acres planted to crops referred to in that paragraph in excess of #ae percent of base acres4 7,b7 ,individual coverage ,in the case of agricultural risk coverage payments using individual coverage1 the reduction under paragraph 7#a7 shall be the amount equal to the base acres planted to crops referred to in that paragraph in excess of #ce percent of base acres4 7#c7 ,reduction exceptions ,no reduction to payment acres shall be made under this subsection if-- 7,a7 cover crops or crops referred to in paragraph 7#a7 are grown solely for conservation purposes and not harvested for use or sale1 as determined by the ,secretary2 or 7,b7 in any region in which there is a history of double-cropping covered commodities with crops referred to in paragraph 7#a7 and those crops were so double-cropped on the base acres1 as determined by the ,secretary4 7e7 ,exclusion of unused acres 7#a7 ,in general ,effective beginning with the #bjai crop year1 subject to paragraphs 7#b7 and 7#c71 if the producers on a farm did not plant and were not prevented from planting a covered commodity on base acres during each of the #bjji through #bjaf crop years1 the ,secretary shall exclude those base acres from payment acres on the farm4 7#b7 ,treatment of planting fruits and vegetables and acres enrolled in conservation reserve ,base acres subject to a reduction under subsection 7d7 or that were enrolled in the conservation reserve program established under subchapter ,b of chapter #a of subtitle ,d of title ,,xii of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chca et seq47 for not fewer than #e crop years of the #bjji through #bjaf crop years shall be considered planted to a covered commodity for purposes of paragraph 7#a74 7#c7 ,exceptions ,paragraph 7#a7 shall not apply to-- 7,a7 a socially disadvantaged farmer or rancher 7as defined in section #cee7;e7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #bjjc7;e7772 or 7,b7 a limited resource farmer or rancher1 as defined by the ,secretary4 #f4 ,producer election 7a7 ,election required ,for the #bjai through #bjbc crop years1 all of the producers on a farm shall make a #a-time1 irrevocable election to obtain-- 7#a7 price loss coverage under section #g for all covered commodities on the farm2 or 7#b7 agriculture risk coverage under section #h for all covered commodities on the farm4 7b7 ,coverage options ,in the election under subsection 7a71 the producers on a farm that elect under paragraph 7#b7 of that subsection to obtain agriculture risk coverage under section #h shall unanimously select whether to receive agriculture risk coverage payments based on-- 7#a7 county coverage applicable on a covered commodity-by-covered-commodity basis2 or 7#b7 individual coverage applicable to all of the covered commodities on the farm4 7c7 ,effect of failure ,to make unanimous election ,if all the producers on a farm fail to make a unanimous election under subsection 7a7 for the #bjai crop year-- 7#a7 the ,secretary shall not make any payments with respect to the farm for the #bjai crop year under section #g or #h2 and 7#b7 the producers on the farm shall be deemed to have elected for the #bjbj through #bjbc crop years the coverage described in paragraph 7#a7 or 7#b7 of subsection 7a7 in which the majority of base acres on the farm were enrolled during the period of crop years #bjad through #bjah4 7d7 ,effect of selection of county coverage ,if all the producers on a farm select county coverage for a covered commodity under subsection 7b77#a71 the ,secretary may not make price loss coverage payments under section #g to the producers on the farm with respect to that covered commodity4 7e7 ,effect of selection of individual coverage ,if all the producers on a farm select individual coverage under subsection 7b77#b71 in addition to the selection and election under this section applying to each producer on the farm1 the ,secretary shall consider1 for purposes of making the calculations required by subsections 7b77#b7 and 7c77#c7 of section #h1 the share of the producer in all farms in the same ,state-- 7#a7 in which the producer has an interest2 and 7#b7 for which individual coverage has been selected4 7f7 ,prohibition on reconstitution ,the ,secretary shall ensure that producers on a farm do not reconstitute the farm to void or change an election or selection made under this section4 #g4 ,price loss coverage 7a7 ,price loss coverage payments ,if all of the producers on a farm make the election under section #f7;a7 to obtain price loss coverage1 or are deemed to have made that election under section #f7;c77#b71 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 that1 for any of the #bjai through #bjbc crop years-- 7#a7 the effective price for the covered commodity for the crop year2 is less than 7#b7 the reference price for the covered commodity for the crop year4 7b7 ,effective price 7#a7 ,in general ,except as provided in paragraph 7#b71 the effective price for a covered commodity for a crop year shall be the higher of-- 7,a7 the national average market price received by producers during the #ab-month marketing year for the covered commodity1 as determined by the ,secretary2 or 7,b7 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 #bjad 7#g ,u4,s4,c4 #ijca et seq474 7#b7 ,seed cotton 7,a7 ,in general ,the effective price for seed cotton for a crop year shall be equal to the marketing year average price for seed cotton1 as calculated under subparagraph 7,b74 7,b7 ,calculation ,the marketing year average price for seed cotton for a crop year shall be equal to the quotient obtained by dividing-- 7i7 the sum obtained by adding-- 7,i7 the product obtained by multiplying-- 7aa7 the upland cotton lint marketing year average price2 and 7bb7 the total ,united ,states upland cotton lint production1 measured in pounds2 and 7,,ii7 the product obtained by multiplying-- 7aa7 the cottonseed marketing year average price2 and 7bb7 the total ,united ,states cottonseed production1 measured in pounds2 by 7ii7 the sum obtained by adding-- 7,i7 the total ,united ,states upland cotton lint production1 measured in pounds2 and 7,,ii7 the total ,united ,states cottonseed production1 measured in pounds4 7c7 ,payment rate ,the payment rate shall be equal to the difference between-- 7#a7 the reference price for the covered commodity2 and 7#b7 the effective price determined under subsection 7b7 for the covered commodity4 7d7 ,payment amount ,if price loss coverage payments are required to be provided under this section for any of the #bjai through #bjbc crop years for a covered commodity1 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-- 7#a7 the payment rate for the covered commodity under subsection 7c72 7#b7 the payment yield for the covered commodity2 and 7#c7 the payment acres for the covered commodity4 7e7 ,time for payments ,if the ,secretary determines under this section that price loss coverage payments are required to be provided for the covered commodity1 the payments shall be made beginning ,october #a1 or as soon as practicable thereafter1 after the end of the applicable marketing year for the covered commodity4 7f7 ,effective price for barley ,in determining the effective price for barley under subsection 7b71 the ,secretary shall use the all-barley price4 7g7 ,reference price for temperate japonica rice ,the ,secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to #aae percent of the amount established in clauses 7vii7 and 7viii7 of section #b7ad77;,b7 in order to reflect price premiums4 #h4 ,agriculture risk coverage 7a7 ,agriculture risk coverage payments ,if all of the producers on a farm make the election under section #f7;a7 to obtain agriculture risk coverage1 the ,secretary shall make agriculture risk coverage payments to producers on the farm if the ,secretary determines that1 for any of the #bjai through #bjbc crop years-- 7#a7 the actual crop revenue determined under subsection 7b7 for the crop year2 is less than 7#b7 the agriculture risk coverage guarantee determined under subsection 7c7 for the crop year4 7b7 ,actual crop revenue 7#a7 ,county coverage ,in the case of county coverage1 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-- 7,a7 the actual average county yield per planted acre for the covered commodity1 as determined by the ,secretary 7including any adjustments under paragraph 7#c772 and 7,b7 the higher of-- 7i7 the national average market price received by producers during the #ab-month marketing year for the covered commodity1 as determined by the ,secretary2 and 7ii7 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 #bjad 7#g ,u4,s4,c4 #ijca et seq474 7#b7 ,individual coverage ,in the case of individual coverage1 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 interest1 to be determined by the ,secretary as follows3 7,a7 ,for each covered commodity1 the product obtained by multiplying-- 7i7 the total production of the covered commodity on those farms1 as determined by the ,secretary2 and 7ii7 the higher of-- 7,i7 the national average market price received by producers during the #ab-month marketing year1 as determined by the ,secretary2 or 7,,ii7 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 #bjad 7#g ,u4,s4,c4 #ijca et seq474 7,b7 ,the sum of the amounts determined under subparagraph 7,a7 for all covered commodities on those farms4 7,c7 ,the quotient obtained by dividing the amount determined under subparagraph 7,b7 by the total planted acres of all covered commodities on those farms4 7#c7 ,county yield disparities 7,a7 ,in general ,the ,secretary may adjust county yields under paragraph 7#a77;,a7 to reduce disparities between neighboring and nearby counties with similar soils and climate that are not attributable to a localized weather event4 7,b7 ,aggregate estimated payment ,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 increase4 7,c7 ,options 7i7 ,in general ,if the ,secretary makes adjustments under this paragraph1 the ,secretary shall make the adjustments in accordance with clause 7ii7 or 7iii74 7ii7 ,variations within a ,state 7,i7 ,in general ,subject to subparagraph 7,b71 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 climate4 7,,ii7 ,review and approval ,the ,secretary shall review and approve or reject adjustments recommended under subclause 7,i7 before the adjustments become final4 7iii7 ,variations along ,state boundaries 7,i7 ,in general ,subject to subparagraph 7,b71 the ,secretary shall allow ,state committees of the ,farm ,service ,agency or the national office of the ,farm ,service ,agency1 in consultation with affected ,state committees1 to review and recommend adjustments to the initial yield estimates before the adjustments become final to reduce unexplained variation between counties in neighboring ,states4 7,,ii7 ,review and approval ,the ,secretary shall review and approve or reject adjustments recommended under subclause 7,i7 before the adjustments become final4 7#d7 ,quality adjustment factor for wheat 7,a7 ,in general ,the ,secretary shall adjust county yields for wheat under paragraph 7#a77;,a7 to account for weather-related quality factors1 such as protein1 falling numbers1 or vomitoxin1 based on-- 7i7 the average quality adjustment discount factor determined by the ,secretary for policies or plans of insurance under the ,federal ,crop ,insurance ,act 7#g ,u4,s4,c4 #aeja et seq47 for-- 7,i7 the applicable crop year2 and 7,,ii7 that county or the applicable region2 or 7ii7 a comparable adjustment1 as determined by the ,secretary1 if the factor described in clause 7i7 is not available4 7,b7 ,limitation ,a yield may not be adjusted by greater than #ej percent under subparagraph 7,a74 7,c7 ,use ,the ,secretary shall not use a yield adjustment under this paragraph for purposes of subsection 7c74 7c7 ,agriculture risk coverage guarantee 7#a7 ,in general ,the agriculture risk coverage guarantee for a crop year for a covered commodity shall equal #ij percent of the benchmark revenue described in paragraph 7#b7 or 7#c71 as applicable4 7#b7 ,benchmark revenue for county coverage ,in the case of county coverage1 the benchmark revenue referred to in paragraph 7#a7 shall be the product obtained by multiplying-- 7,a7 subject to paragraphs 7#d7 and 7#e71 the average historical county yield as determined by the ,secretary for the most recent #e crop years1 excluding each of the crop years with the highest and lowest yields2 and 7,b7 subject to paragraph 7#f71 the national average market price received by producers during the #ab-month marketing year for the most recent #c crop years4 7#c7 ,benchmark revenue for individual coverage ,in the case of individual coverage1 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 interest1 to be determined by the ,secretary as follows3 7,a7 ,for each covered commodity for each of the most recent #e crop years1 the product obtained by multiplying-- 7i7 subject to paragraphs 7#d7 and 7#e71 the yield per planted acre for the covered commodity on those farms1 as determined by the ,secretary2 by 7ii7 subject to paragraph 7#f71 the national average market price received by producers during the #ab-month marketing year4 7,b7 ,for each covered commodity1 the average of the revenues determined under subparagraph 7,a7 for the most recent #e crop years1 excluding each of the crop years with the highest and lowest revenues4 7,c7 ,for each of the #bjai through #bjbc crop years1 the sum of the amounts determined under subparagraph 7,b7 for all covered commodities on those farms1 but adjusted to reflect the ratio that-- 7i7 the total number of acres planted on those farms to a covered commodity2 bears to 7ii7 the total acres of all covered commodities planted on those farms4 7#d7 ,yield conditions ,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 #e most recent crop years1 as determined by the ,secretary1 is less than #hj percent of the transitional yield1 as determined by the ,secretary1 the amounts used for any of those years in paragraph 7#b77;,a7 or 7#c77;,a77i71 as applicable1 shall be #hj percent of the transitional yield4 7#e7 ,trend-,adjusted ,yield 7,a7 ,in general ,the ,secretary shall adjust the yield determined under paragraph 7#b77;,a7 or 7#c77;,a77i71 as applicable1 using the same ,trend-,adjusted ,yield factor that is used under the endorsement under the ,federal ,crop ,insurance ,act 7#g ,u4,s4,c4 #aeja et seq47 for that crop and county4 7,b7 ,not available for crop or county ,if a factor described in subparagraph 7,a7 is not available for a crop or county1 the ,secretary shall calculate and use a ,state or national ,trend-,adjusted ,yield factor for the crop1 as determined by the ,secretary4 7#f7 ,floor price ,in the case of county coverage1 if the national average market price received by producers during the #ab-month marketing year for any of the #c most recent crop years is lower than the national average market price received by producers during the #ab-month marketing year for the most recent #aj crop years for the covered commodity1 the ,secretary shall use the national average market price received by producers during the #ab-month marketing year for the most recent #aj crop years for the amount in paragraph 7#b77;,b74 7#g7 ,reference price ,in the case of individual coverage1 if the national average market price received by producers during the #ab-month marketing year for any of the #e most recent crop years is lower than the reference price for the covered commodity1 the ,secretary shall use the reference price for any of those years for the amount in paragraph 7#c77;,a77i74 7d7 ,payment rate ,the payment rate for a covered commodity1 in the case of county coverage1 or a farm1 in the case of individual coverage1 shall be equal to the lesser of-- 7#a7 the amount that-- 7,a7 the agriculture risk coverage guarantee for the crop year applicable under subsection 7c72 exceeds 7,b7 the actual crop revenue for the crop year applicable under subsection 7b72 and 7#b7 #aj percent of the benchmark revenue for the crop year applicable under subsection 7c74 7e7 ,payment amount ,if agriculture risk coverage payments are required to be paid for any of the #bjai through #bjbc crop years1 the amount of the agriculture risk coverage payment for the crop year shall be determined by multiplying-- 7#a7 the payment rate determined under subsection 7d72 and 7#b7 the payment acres determined under section #e4 7f7 ,time for payments ,if the ,secretary determines that agriculture risk coverage payments are required to be provided for the covered commodity1 payments shall be made beginning ,october #a1 or as soon as practicable thereafter1 after the end of the applicable marketing year for the covered commodity4 7g7 ,administrative units 7#a7 ,in general ,for purposes of agriculture risk coverage payments in the case of county coverage1 a county may be divided into not greater than #c administrative units in accordance with this subsection4 7#b7 ,eligible counties ,a county that may be divided into administrative units under this subsection is a county that-- 7,a7 is larger than #a1ejj square miles2 and 7,b7 contains more than #aj1jjj base acres4 7#c7 ,elections ,before making any agriculture risk coverage payments for the #bjai crop year1 the ,farm ,service ,agency ,state committee1 in consultation with the ,farm ,service ,agency county or area committee of a county described in paragraph 7#b71 may make a #a-time election to divide the county into administrative units under this subsection4 7#d7 ,administration ,for purposes of providing agriculture risk coverage payments in the case of county coverage1 the ,secretary shall consider an administrative unit elected under paragraph 7#c7 to be a county for the #bjai through #bjbc crop years4 7h7 ,additional duties of the ,secretary ,in providing agriculture risk coverage1 the ,secretary shall-- 7#a7 to the maximum extent practicable1 use all available information and analysis1 including data mining1 to check for anomalies in the determination of agriculture risk coverage payments2 7#b7 to the maximum extent practicable1 calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities2 7#c7 in the case of county coverage1 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 ,state1 region1 or crop reporting district1 as determined by the ,secretary1 if-- 7,a7 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 7b77#a7 or 7c77#b72 or 7,b7 the yield determined under subsection 7b77#a7 or 7c77#b7 is an unrepresentative average yield for the county1 as determined by the ,secretary2 7#d7 in the case of individual coverage1 assign an average yield for a farm on the basis of the yield history of representative farms in the ,state1 region1 or crop reporting district1 as determined by the ,secretary1 if the ,secretary determines that the farm has planted acreage in a quantity that is insufficient to calculate a representative average yield for the farm2 7#e7 prioritize the use of yields from sources that provide the greatest geographic coverage of county-level data from the same source2 and 7#f7 7,a7 use the yield1 benchmark revenue and payment rate based on the county of the physical location of the farm2 and 7,b7 in the case of a farm that crosses county boundaries-- 7i7 split the base acres on a pro rata basis based on the relative quantity of cropland in each county2 and 7ii7 calculate any payments on that same pro rata basis4 #i4 ,producer agreements 7a7 ,compliance with certain requirements 7#a7 ,requirements ,before the producers on a farm may receive payments under this ,act with respect to the farm1 the producers shall agree1 during the crop year for which the payments are made and in exchange for the payments-- 7,a7 to comply with applicable conservation requirements under subtitle ,b of title ,,xii of the ,food ,security ,act of #aihe 7#af ,u4,s4,c4 #chaa et seq472 7,b7 to comply with applicable wetland protection requirements under subtitle ,c of title ,,xii of that ,act 7#af ,u4,s4,c4 #chba et seq472 7,c7 to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices1 as determined by the ,secretary2 and 7,d7 to use the land on the farm1 in a quantity equal to the attributable base acres for the farm and any base acres for an agricultural or conserving use1 and not for a nonagricultural commercial1 industrial1 or residential use1 as determined by the ,secretary4 7#b7 ,compliance ,the ,secretary may issue such rules as the ,secretary considers necessary to ensure producer compliance with the requirements of paragraph 7#a74 7#c7 ,modification ,at the request of the transferee or owner1 the ,secretary may modify the requirements of this subsection if the modifications are consistent with the objectives of this subsection1 as determined by the ,secretary4 7b7 ,transfer or change of interest in farm 7#a7 ,termination 7,a7 ,in general ,except as provided in paragraph 7#b71 a transfer of 7or change in7 the interest of the producers on a farm for which payments under this ,act are provided shall result in the termination of the payments1 unless the transferee or owner of the acreage agrees to assume all obligations under subsection 7a74 7,b7 ,effective date ,the termination shall take effect on the date determined by the ,secretary4 7#b7 ,exception ,if a producer entitled to a payment under this ,act dies1 becomes incompetent1 or is otherwise unable to receive the payment1 the ,secretary shall make the payment in accordance with rules issued by the ,secretary4 7c7 ,production reports ,as an additional condition on receiving agriculture risk coverage payments for individual coverage1 the ,secretary shall require a producer on a farm to submit to the ,secretary annual production reports with respect to all covered commodities produced on all farms in the same ,state-- 7#a7 in which the producer has an interest2 and 7#b7 for which individual coverage has been selected4 7d7 ,effect of inaccurate reports ,no penalty with respect to benefits under this ,act shall be assessed against a producer on a farm for an inaccurate acreage or production report unless the ,secretary determines that the producer on the farm knowingly and willfully falsified the acreage or production report4 7e7 ,tenants and sharecroppers ,in carrying out this ,act1 the ,secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers4 7f7 ,sharing of payments ,the ,secretary shall provide for the sharing of payments made under this ,act among the producers on a farm on a fair and equitable basis4