HR 3111 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 3111CommentsClose CommentsPermalink

To reform and reauthorize agricultural programs, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

October 5, 2011CommentsClose CommentsPermalink

Mr. STUTZMAN introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To reform and reauthorize agricultural programs, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Rural Economic Farm and Ranch Sustainability and Hunger Act of 2011’ or the ‘REFRESH Act of 2011’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Definition of Secretary.CommentsClose CommentsPermalink

TITLE I--PRODUCER SAFETY NET

Subtitle A--Revenue-Based Safety Net

Sec. 1001. Aggregate risk and revenue management program.CommentsClose CommentsPermalink





Sec. 1002. Supplemental insurance.CommentsClose CommentsPermalink

Subtitle B--Federal Crop Insurance Program

Sec. 1201. Whole farm revenue insurance tools.CommentsClose CommentsPermalink





Sec. 1202. Insurance availability.CommentsClose CommentsPermalink





Sec. 1203. Crop insurance education assistance.CommentsClose CommentsPermalink

Subtitle C--Sugar Program Repeal

Sec. 1301. Repeal of sugar program.CommentsClose CommentsPermalink





Sec. 1302. Elimination of sugar price support and production adjustment programs.CommentsClose CommentsPermalink





Sec. 1303. Elimination of sugar tariff and over-quota tariff rate.CommentsClose CommentsPermalink





Sec. 1304. Application.CommentsClose CommentsPermalink

Subtitle D--Dairy Program Reform

PART I--Dairy Producer Margin Protection and Dairy Market Stabilization Programs

Sec. 1401. Definitions.CommentsClose CommentsPermalink





Sec. 1402. Calculation of average feed cost and actual dairy producer margins.CommentsClose CommentsPermalink

subpart a--dairy producer margin protection program

Sec. 1411. Establishment of dairy producer margin protection program.CommentsClose CommentsPermalink





Sec. 1412. Eligibility and registration of dairy producers for margin protection program.CommentsClose CommentsPermalink





Sec. 1413. Production history and annual production quantity of participating dairy producers.CommentsClose CommentsPermalink





Sec. 1414. Basic margin protection.CommentsClose CommentsPermalink





Sec. 1415. Supplemental margin protection.CommentsClose CommentsPermalink





Sec. 1416. Effect of failure to pay administrative fees or premiums.CommentsClose CommentsPermalink





Sec. 1417. No payment limitations.CommentsClose CommentsPermalink

subpart b--dairy market stabilization program

Sec. 1431. Establishment of dairy market stabilization program.CommentsClose CommentsPermalink





Sec. 1432. Threshold for implementation and reduction in dairy producer payments.CommentsClose CommentsPermalink





Sec. 1433. Producer milk marketings information.CommentsClose CommentsPermalink





Sec. 1434. Calculation and collection of reduced dairy producer payments.CommentsClose CommentsPermalink





Sec. 1435. Remitting monies to Commodity Credit Corporation.CommentsClose CommentsPermalink





Sec. 1436. Suspension of reduced payment requirement.CommentsClose CommentsPermalink





Sec. 1437. Audit requirements.CommentsClose CommentsPermalink





Sec. 1438. Board of directors.CommentsClose CommentsPermalink

subpart c--commodity credit corporation

Sec. 1451. Use of Commodity Credit Corporation.CommentsClose CommentsPermalink

subpart d--duration

Sec. 1461. Duration.CommentsClose CommentsPermalink

PART II--Federal Milk Marketing Order Reform

Sec. 1471. Required amendments to Federal milk marketing orders.CommentsClose CommentsPermalink





Sec. 1472. Amendment process.CommentsClose CommentsPermalink





Sec. 1473. Development of effective balancing programs for milk markets.CommentsClose CommentsPermalink





Sec. 1474. Study on elimination of milk marketing orders.CommentsClose CommentsPermalink

PART III--Repeal of Superseded Provisions

Sec. 1481. Repeal of dairy product price support and milk income loss contract programs.CommentsClose CommentsPermalink





Sec. 1482. Repeal of permanent price support authority for milk.CommentsClose CommentsPermalink





Sec. 1483. Repeal of dairy export incentive program.CommentsClose CommentsPermalink





Sec. 1484. Effective date.CommentsClose CommentsPermalink

TITLE II--CONSERVATION

Subtitle A--Conservation Reserve Program

Sec. 2001. Conservation reserve program.CommentsClose CommentsPermalink





Sec. 2002. Pilot program for enrollment of wetland and buffer acreage in conservation reserve.CommentsClose CommentsPermalink





Sec. 2003. Duties of owners and operators.CommentsClose CommentsPermalink





Sec. 2004. Payments.CommentsClose CommentsPermalink





Sec. 2005. Contracts.CommentsClose CommentsPermalink





Sec. 2006. Conversion of land subject to contract to other conserving uses.CommentsClose CommentsPermalink

Subtitle B--Easement Benefits Program

Sec. 2101. Easement benefits program.CommentsClose CommentsPermalink

Subtitle C--Working Land Program

Sec. 2201. Working land program.CommentsClose CommentsPermalink

Subtitle D--Other Conservation Programs

Sec. 2301. Other conservation programs of the Food Security Act of 1985.CommentsClose CommentsPermalink





Sec. 2302. Funding of conservation programs under Food Security Act of 1985.CommentsClose CommentsPermalink





Sec. 2303. Cooperative conservation partnership initiative.CommentsClose CommentsPermalink





Sec. 2304. Administrative requirements for conservation programs.CommentsClose CommentsPermalink





Sec. 2305. Repeal of healthy forests reserve program.CommentsClose CommentsPermalink

TITLE III--NUTRITION

Subtitle A--Supplemental Nutrition Assistance Program

Sec. 3001. Categorical eligibility limitations.CommentsClose CommentsPermalink





Sec. 3002. Repeal of funding for employment and training programs.CommentsClose CommentsPermalink





Sec. 3003. Repeal of incentive payments to States with low SNAP benefit allocation error rates.CommentsClose CommentsPermalink





Sec. 3004. Quality control.CommentsClose CommentsPermalink

Subtitle B--Extensions

Sec. 3101. Supplemental nutrition assistance program.CommentsClose CommentsPermalink





Sec. 3102. Commodity distribution programs.CommentsClose CommentsPermalink





Sec. 3103. Miscellaneous.CommentsClose CommentsPermalink

TITLE IV--ENERGY FROM RURAL AMERICA

Sec. 4001. Definitions.CommentsClose CommentsPermalink





Sec. 4002. Biobased markets program.CommentsClose CommentsPermalink





Sec. 4003. Biorefinery assistance.CommentsClose CommentsPermalink





Sec. 4004. Rural Energy for America Program.CommentsClose CommentsPermalink





Sec. 4005. Repeal of feedstock flexibility program for bioenergy producers.CommentsClose CommentsPermalink





Sec. 4006. Biomass Crop Assistance Program.CommentsClose CommentsPermalink





Sec. 4007. Rural energy savings program.CommentsClose CommentsPermalink

TITLE V--TECHNICAL IMPROVEMENTS TO RESEARCH

Sec. 5001. Matching fund requirement under McIntire-Stennis Cooperative Forestry Act.CommentsClose CommentsPermalink





Sec. 5002. Matching fund requirement under Hatch Act of 1887.CommentsClose CommentsPermalink





Sec. 5003. Matching fund requirement under Smith-Lever Act.CommentsClose CommentsPermalink





Sec. 5004. Biomass Research and Development Initiative.CommentsClose CommentsPermalink

SEC. 2. DEFINITION OF SECRETARY.

In this Act, the term ‘Secretary’ means the Secretary of Agriculture.CommentsClose CommentsPermalink

TITLE I--PRODUCER SAFETY NETCommentsClose CommentsPermalink

Subtitle A--Revenue-Based Safety NetCommentsClose CommentsPermalink

SEC. 1001. AGGREGATE RISK AND REVENUE MANAGEMENT PROGRAM.

(a) In General- Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715) is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 1105. AGGREGATE RISK AND REVENUE MANAGEMENT PROGRAM.

‘(a) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) ALTERNATIVE PRICE- The term ‘alternative price’ means an average of the price for each of the immediately preceding 4 years, as determined by the National Agricultural Statistics Service, for each crop for which the harvest price is unavailable.CommentsClose CommentsPermalink





‘(2) ARRM- The term ‘ARRM’ means the aggregate risk and revenue management program established under this section.CommentsClose CommentsPermalink





‘(3) CRD- The term ‘CRD’ means a crop reporting district, as determined by the National Agricultural Statistics Service.CommentsClose CommentsPermalink





‘(4) HARVEST PRICE- The term ‘harvest price’ means the harvest price determined by the Risk Management Agency.CommentsClose CommentsPermalink





‘(b) Availability and Election of Alternative Approach-CommentsClose CommentsPermalink





‘(1) AVAILABILITY OF AGGREGATE RISK AND REVENUE MANAGEMENT PAYMENTS- With respect to all covered commodities and peanuts on a farm, during each of the 2013 through 2017 crop years, the Secretary shall give the operator, tenant, or sharecropper, as appropriate, on the farm an opportunity to make an annual election for all producers on the farm to receive aggregate risk and revenue management payments under this section for the crop year for which the election is made.CommentsClose CommentsPermalink





‘(2) LIMITATIONS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The total number of planted acres for which the producers on a farm may receive ARRM payments under this section shall be equal to the total number of acres planted to all covered commodities and peanuts on the farm.CommentsClose CommentsPermalink





‘(B) NATIVE SOD-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Native sod (as defined in section 508(o)(1) of the Federal Crop Insurance Act (7 U.S.C. 1508(o)(1))) acreage that is tilled for the purpose of producing an annual crop after the date of enactment of the Rural Economic Farm and Ranch Sustainability and Hunger Act of 2011 shall not be considered acreage planted to the covered commodity or peanuts for harvest on a farm in a crop year for purposes of making ARRM payments under this section during the first 5 crop years of planting.CommentsClose CommentsPermalink





‘(ii) REQUIREMENT- Ineligibility under clause (i) shall only apply to the actual acreage of native sod that was converted to crop production.CommentsClose CommentsPermalink





‘(3) ELECTION; TIME FOR ELECTION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall provide notice to the operators, tenants, or sharecroppers, as appropriate regarding the opportunity to make each of the elections described in paragraph (1).CommentsClose CommentsPermalink





‘(B) NOTICE REQUIREMENTS- The notice shall include--CommentsClose CommentsPermalink





‘(i) notice of the opportunity of the operator, tenant, or sharecropper, as appropriate, on a farm to make the election; andCommentsClose CommentsPermalink





‘(ii) information regarding the manner in which the election must be made and the time periods and manner in which notice of the election must be submitted to the Secretary.CommentsClose CommentsPermalink





‘(4) ELECTION DEADLINE- Within the time period and in the manner prescribed pursuant to paragraph (3), the operator, tenant, or sharecropper, as appropriate, on a farm shall submit to the Secretary notice of an election made under paragraph (1).CommentsClose CommentsPermalink





‘(5) EFFECT OF FAILURE TO MAKE ELECTION- If the operators, tenants, or sharecroppers, as appropriate, on a farm fail to make an election under paragraph (1) or fail to timely notify the Secretary of the election made, as required by paragraph (4), all of the producers on the farm shall be deemed to not have made the election described in paragraph (1), for the applicable crop years.CommentsClose CommentsPermalink





‘(c) Payments Required-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of producers on a farm who make an election under subsection (b) to receive ARRM payments for any of the 2013 through 2017 crop years for all covered commodities and peanuts, the Secretary shall make ARRM payments available to the producers on a farm in accordance with this subsection.CommentsClose CommentsPermalink





‘(2) ARRM PAYMENT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Subject to paragraph (3), in the case of producers on a farm described in paragraph (1), the Secretary shall make ARRM payments available to the producers on a farm for each crop year if--CommentsClose CommentsPermalink





‘(i) the actual CRD revenue for the crop year for the covered commodity or peanuts in the CRD determined under subsection (e); is less thanCommentsClose CommentsPermalink





‘(ii) the ARRM program guarantee for the crop year for the covered commodity or peanuts in the CRD determined under subsection (d).CommentsClose CommentsPermalink





‘(B) INDIVIDUAL LOSS- The Secretary shall make ARRM payments available to the producers on a farm in a CRD for a crop year only if (as determined by the Secretary)--CommentsClose CommentsPermalink





‘(i) the actual farm revenue for the crop year for the covered commodity or peanuts, as determined under subsection (g); is less thanCommentsClose CommentsPermalink





‘(ii) the farm ARRM revenue guarantee for the crop year for the covered commodity or peanuts, as determined under subsection (f).CommentsClose CommentsPermalink





‘(3) TIME FOR PAYMENTS- In the case of each of the 2013 through 2017 crop years, the Secretary shall make ARRM payments beginning October 1, or as soon as practicable thereafter, after the date of determination of the harvest price for the covered commodity or peanuts.CommentsClose CommentsPermalink





‘(d) ARRM Program Guarantee-CommentsClose CommentsPermalink





‘(1) CRD AMOUNT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of subsection (c)(2)(A) and subject to subparagraphs (B) and (C), the ARRM program guarantee for a crop year for a covered commodity or peanuts in a CRD shall equal 90 percent of the CRD average revenue, as determined under subparagraph (B).CommentsClose CommentsPermalink





‘(B) CRD AVERAGE REVENUE- For purposes of subparagraph (A), the CRD average revenue shall be the average during the marketing years for the immediately preceding 5 crops of a covered commodity and peanuts, excluding the year in which the CRD revenue was the highest and the year in which the CRD revenue was the lowest in the period, of the product obtained by multiplying--CommentsClose CommentsPermalink





‘(i) the CRD yield for the covered commodity or peanuts in a CRD determined under paragraph (2); andCommentsClose CommentsPermalink





‘(ii) the harvest price or alternative price for the covered commodity or peanuts.CommentsClose CommentsPermalink





‘(C) MINIMUM AND MAXIMUM GUARANTEE- The ARRM program guarantee for a crop year for a covered commodity or peanuts under subparagraph (A) shall not decrease or increase more than 10 percent from the guarantee for the preceding crop year.CommentsClose CommentsPermalink





‘(D) DOUBLE-CROPPED ACREAGE- Any crop subsequently planted on land determined for purposes of the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) to be prevented planted acreage shall not be included in calculating the ARRM program guarantee under subparagraph (A) or the actual farm revenue under subsection (g) unless the farm has a history of double-cropping and is located in a region in which double-cropping is an acceptable farming practice, as determined by the Secretary.CommentsClose CommentsPermalink





‘(2) ASSIGNED CRD YIELD- If the Secretary cannot establish the CRD yield for each planted acre for a crop year for a covered commodity or peanuts in a CRD in accordance with subparagraph (A) or if the yield determined under subparagraph (A) is an unrepresentative average yield for the CRD (as determined by the Secretary), the Secretary shall assign a CRD yield for each planted acre for the crop year for the covered commodity or peanuts in the CRD on the basis of--CommentsClose CommentsPermalink





‘(A) previous average yields for a period of 5 crop years, excluding each of the crop years with the highest and lowest yields; orCommentsClose CommentsPermalink





‘(B) CRD yields for planted acres for the crop year for the covered commodity or peanuts in similar CRDs.CommentsClose CommentsPermalink





‘(3) CRDS WITH IRRIGATED AND NONIRRIGATED LAND- In the case of a CRD in which at least 25 percent of the acreage planted to a covered commodity or peanuts in the CRD is irrigated and at least 25 percent of the acreage planted to the covered commodity or peanuts in the CRD is not irrigated, the Secretary shall calculate a separate ARRM program guarantee for the irrigated and nonirrigated areas of the CRD for the covered commodity or peanuts.CommentsClose CommentsPermalink





‘(e) Actual CRD Revenue-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of subsection (c)(2)(A), the amount of the actual CRD revenue for a crop year of a covered commodity or peanuts shall equal the product obtained by multiplying--CommentsClose CommentsPermalink





‘(A) the actual CRD yield for each planted acre for the crop year for the covered commodity or peanuts determined under paragraph (2); andCommentsClose CommentsPermalink





‘(B) the national average harvest price or alternative price received by producers for the crop year for the covered commodity or peanuts as determined by the Risk Management Agency.CommentsClose CommentsPermalink





‘(2) ACTUAL CRD YIELD- For purposes of paragraph (1)(A), the actual CRD yield for each planted acre for a crop year for a covered commodity or peanuts in a CRD shall equal (as determined by the Secretary)--CommentsClose CommentsPermalink





‘(A) the quantity of the covered commodity or peanuts that is produced in the CRD during the crop year; divided byCommentsClose CommentsPermalink





‘(B) the number of acres that are planted to the covered commodity or peanuts in the CRD during the crop year.CommentsClose CommentsPermalink





‘(f) Farm ARRM Revenue Guarantee-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of subsection (c)(2)(B), the farm ARRM revenue guarantee for the crop year for a covered commodity or peanuts shall equal 90 percent of the average farm revenue as determined under paragraph (2).CommentsClose CommentsPermalink





‘(2) AVERAGE FARM REVENUE- The average farm revenue shall be equal to the sum obtained by adding--CommentsClose CommentsPermalink





‘(A) the average during the marketing years for the immediately preceding 5 crops of a covered commodity and peanuts, excluding the year in which the farm revenue was the highest and the year in which the farm revenue was the lowest in the period, of the product obtained by multiplying--CommentsClose CommentsPermalink





‘(i) the actual production history, as determined using production records and data of the Risk Management Agency; andCommentsClose CommentsPermalink





‘(ii) the harvest price or alternative price for the covered commodity or peanuts in a CRD; andCommentsClose CommentsPermalink





‘(B) the amount of the per acre crop insurance premium required to be paid by the producers on the farm for the applicable crop year for the covered commodity or peanuts on the farm.CommentsClose CommentsPermalink





‘(g) Actual Farm Revenue- For purposes of subsection (c)(2)(B) and except as provided in subsection (d)(1)(C), the amount of the actual farm revenue for a crop year for a covered commodity or peanuts shall equal the amount determined by multiplying--CommentsClose CommentsPermalink





‘(1) the actual yield for the covered commodity or peanuts of the producers on the farm; andCommentsClose CommentsPermalink





‘(2) the national average harvest price or alternative price for the crop year for the covered commodity or peanuts.CommentsClose CommentsPermalink





‘(h) Payment Amount- If ARRM payments are required to be paid for any of the 2013 through 2017 crop years of a covered commodity or peanuts under this section, the amount of the ARRM payment to be paid to the producers on the farm for the crop year under this section shall be equal to the product obtained by multiplying--CommentsClose CommentsPermalink





‘(1) the lesser of--CommentsClose CommentsPermalink





‘(A) the difference between--CommentsClose CommentsPermalink





‘(i) the ARRM program guarantee for the crop year for the covered commodity or peanuts in the CRD determined under subsection (d); andCommentsClose CommentsPermalink





‘(ii) the actual CRD revenue from the crop year for the covered commodity or peanuts in the CRD determined under subsection (e); andCommentsClose CommentsPermalink





‘(B) 15 percent of the ARRM program guarantee for the crop year for the covered commodity or peanuts in the CRD determined under subsection (d);CommentsClose CommentsPermalink





‘(2) 85 percent of the acreage planted to the covered commodity or peanuts for harvest on the farm in the crop year; andCommentsClose CommentsPermalink





‘(3) the quotient obtained by dividing--CommentsClose CommentsPermalink





‘(A) the actual production history for the covered commodity or peanuts of the producers on the farm, as determined using production records and data of the Risk Management Agency; andCommentsClose CommentsPermalink





‘(B) the assigned CRD yield for each planted acre for the crop year for the covered commodity or peanuts in a CRD, as determined under subsection (d)(2).CommentsClose CommentsPermalink





‘(i) Crop Reporting District Assessment- The Secretary shall review CRDs in western States that have 7 or fewer CRDs to assess whether additional CRDs in the States are necessary.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) REPEAL OF DIRECT AND COUNTER-CYCLICAL PAYMENTS FOR COVERED COMMODITIES AND PEANUTS-CommentsClose CommentsPermalink





(A) IN GENERAL- Sections 1103, 1104, 1303, and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 8714, 8753, 8754) are repealed.CommentsClose CommentsPermalink





(B) APPLICATION- The amendments made by paragraph (1) apply beginning with the 2013 crop year.CommentsClose CommentsPermalink





(2) PERIOD OF EFFECTIVENESS- Section 1109 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8719) is amended by striking ‘2012’ and inserting ‘2017’.CommentsClose CommentsPermalink





(3) SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY- Section 1602 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8782) is amended--CommentsClose CommentsPermalink





(A) by striking ‘through 2012’ each place it appears and inserting ‘through 2017’; andCommentsClose CommentsPermalink





(B) by striking ‘December 31, 2012’ each place it appears and inserting ‘December 31, 2017’.CommentsClose CommentsPermalink





(4) TECHNICAL AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 1001 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702) is amended by striking paragraph (1) and inserting the following:CommentsClose CommentsPermalink





‘(1) AGGREGATE RISK AND REVENUE MANAGEMENT PAYMENT- The term ‘aggregate risk and revenue management payment’ means a payment made to producers on a farm under section 1105.’CommentsClose CommentsPermalink





(B) Section 1101(d)(1) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(d)(1)) is amended by striking ‘average crop revenue election’ and inserting ‘aggregate risk and revenue management’.CommentsClose CommentsPermalink





(C) Section 1106 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8716) is amended by striking ‘average crop revenue election’ each place it appears in subsections (a)(1), (b), and (e) and inserting ‘aggregate risk and revenue management’.CommentsClose CommentsPermalink





(D) Section 1302(d)(1) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8752(d)(1)) is amended by striking ‘average crop revenue election’ and inserting ‘aggregate risk and revenue management’.CommentsClose CommentsPermalink





(E) Section 1305 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8755) is amended by striking ‘average crop revenue election’ each place it appears in subsections (a)(1), (b), and (e) and inserting ‘aggregate risk and revenue management’.CommentsClose CommentsPermalink





(F) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended--CommentsClose CommentsPermalink





(i) by striking ‘ACRE’ each place it appears in the headings of subsections (b) and (c) and inserting ‘ARRM’;CommentsClose CommentsPermalink





(ii) by striking ‘ACRE’ each place it appears in the headings of paragraph (3) of subsections (b) and (c) and inserting ‘ARRM’; andCommentsClose CommentsPermalink





(iii) by striking ‘average crop revenue election’ each place it appears in subsections (b) and (c) and inserting ‘aggregate risk and revenue management’.CommentsClose CommentsPermalink





(G) Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a) is amended--CommentsClose CommentsPermalink





(i) in subsection (b)(C)(i), by striking ‘average crop revenue election’ and inserting ‘aggregate risk and revenue management’; andCommentsClose CommentsPermalink





(ii) in subsection (f), by striking ‘2012’ and inserting ‘2017’.CommentsClose CommentsPermalink

SEC. 1002. SUPPLEMENTAL INSURANCE.

(a) In General- Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘The level of coverage’ and inserting the following:CommentsClose CommentsPermalink





‘(A) BASIC COVERAGE- The level of coverage’;CommentsClose CommentsPermalink





(2) by striking ‘Not later than’ and inserting the following:CommentsClose CommentsPermalink





‘(B) PROVISION OF INFORMATION- Not later than’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(C) SUPPLEMENTAL COVERAGE-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Notwithstanding paragraph (3) and subparagraph (A), the Corporation may offer supplemental coverage, based on an area yield and loss basis, to cover that portion of a crop loss not covered under the individual yield and loss basis plan of insurance of a producer, including any revenue plan of insurance with coverage based in part on individual yield and loss.CommentsClose CommentsPermalink





‘(ii) LIMITATION- The sum of the indemnity paid to the producer under the individual yield and loss plan of insurance and the supplemental coverage may not exceed 100 percent of the loss incurred by the producer for the crop.CommentsClose CommentsPermalink





‘(iii) ADMINISTRATIVE AND OPERATING EXPENSE REIMBURSEMENT- Notwithstanding subsection (k)(4), the reimbursement rate for approved insurance providers for the supplemental coverage shall equal 6 percent of the premium used to define the loss ratio.CommentsClose CommentsPermalink





‘(iv) DIRECT COVERAGE- If the Corporation determines that it is in the best interests of producers, the Corporation may offer supplemental coverage as a Corporation endorsement to existing plans and policies of crop insurance authorized under this title.CommentsClose CommentsPermalink





‘(v) PAYMENT OF PORTION OF PREMIUM BY CORPORATION- Notwithstanding subsection (e), the amount of the premium to be paid by the Corporation for supplemental coverage offered pursuant to this subparagraph shall be determined by the Corporation, but may not exceed the sum of--CommentsClose CommentsPermalink





‘(I) 50 percent of the amount of premium established under subsection (d)(2)(C)(i) for the coverage level selected; andCommentsClose CommentsPermalink





‘(II) the amount determined under subsection (d)(2)(C)(ii) for the coverage level selected to cover operating and administrative expenses.’.CommentsClose CommentsPermalink





(b) Conforming Amendments- Section 508(d)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is amended--CommentsClose CommentsPermalink





(1) in the matter preceding subparagraph (A), by striking ‘additional coverage’ and inserting ‘additional and supplemental coverages’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(C) In the case of supplemental coverage offered under subsection (c)(4)(C), the amount of the premium shall--CommentsClose CommentsPermalink





‘(i) be sufficient to cover anticipated losses and a reasonable reserve; andCommentsClose CommentsPermalink





‘(ii) include an amount for operating and administrative expenses, as determined by the Corporation on an industry-wide basis as a percentage of the amount of the premium used to define loss ratio.’.CommentsClose CommentsPermalink

Subtitle B--Federal Crop Insurance ProgramCommentsClose CommentsPermalink

SEC. 1201. WHOLE FARM REVENUE INSURANCE TOOLS.

(a) Establishment- Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(11) WHOLE FARM INSURANCE PLAN- The Corporation shall offer a whole farm insurance plan that allows a producer to qualify for an indemnity if actual gross farm revenue is below 80 percent of the average gross farm revenue of the producer.’.CommentsClose CommentsPermalink





(b) Adjusted Gross Revenue Insurance Pilot Program- Section 523(e) of the Federal Crop Insurance Act (7 U.S.C. 1523(e)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘2004’ and inserting ‘2014’;CommentsClose CommentsPermalink





(2) in paragraph (2), by striking subparagraph (A) and inserting the following:CommentsClose CommentsPermalink





‘(A) IN GENERAL- In addition to counties otherwise included in the pilot program, the Corporation shall include in the pilot program for each of the 2010 through 2014 reinsurance years all States and counties that meet the criteria for selection (pending required rating), as determined by the Corporation.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(3) ELIGIBLE PRODUCERS- The Corporation shall permit the producer of any type of agricultural commodity (including a producer of specialty crops, floricultural, ornamental nursery, and Christmas tree crops, turfgrass sod, seed crops, aquacultural products (including ornamental fish), sea grass and sea oats, and industrial crops) to participate in a pilot program established under this subsection.’.CommentsClose CommentsPermalink

SEC. 1202. INSURANCE AVAILABILITY.

(a) Conducting Research and Development- Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) is amended--CommentsClose CommentsPermalink





(1) in the subsection heading, by striking ‘Contracting’;CommentsClose CommentsPermalink





(2) in paragraph (1), in the matter preceding paragraph (A), by striking ‘enter into contracts to carry out research and development to’ and inserting ‘conduct activities or enter into contracts to carry out research and development to maintain or improve existing policies or develop new policies to’;CommentsClose CommentsPermalink





(3) in paragraph (2)--CommentsClose CommentsPermalink





(A) in subparagraph (A), by inserting ‘conduct research and development or’ after ‘The Corporation may’; andCommentsClose CommentsPermalink





(B) in subparagraph (B), by inserting ‘conducting research and development or’ after ‘Before’; andCommentsClose CommentsPermalink





(4) in paragraph (5), by inserting ‘after expert review in accordance with section 505(e)’ after ‘approved by the Board’.CommentsClose CommentsPermalink





(b) Funding- Section 522(e) of the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)--CommentsClose CommentsPermalink





(A) in the paragraph heading, by striking ‘CONTRACTING’ and inserting ‘CONDUCTING AND CONTRACTING FOR RESEARCH AND DEVELOPMENT’;CommentsClose CommentsPermalink





(B) in subparagraph (A), by inserting ‘conduct research and development and’ after ‘the Corporation may use to’; andCommentsClose CommentsPermalink





(C) in subparagraph (B), by inserting ‘conduct research and development and’ after ‘for the fiscal year to’;CommentsClose CommentsPermalink





(2) in paragraph (3), in the matter preceding subparagraph (A), by striking ‘to provide either reimbursement payments or contract payments under this section for a fiscal year is not needed for such purposes’ and inserting ‘for a fiscal year is not needed for the purposes for which the amount was made available’; andCommentsClose CommentsPermalink





(3) by striking paragraph (4).CommentsClose CommentsPermalink

SEC. 1203. CROP INSURANCE EDUCATION ASSISTANCE.

Section 524(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(3)) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (B), by striking ‘A grant’ and inserting ‘Subject to subparagraph (E), a grant’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(E) ALLOCATION TO STATES- The Secretary shall allocate funds made available to carry out this subsection for each fiscal year in a manner that ensures that grants are provided to eligible entities in States based on the ratio that the value of agricultural production of each State bears to the total value of agricultural production in all States, as determined by the Secretary.’.CommentsClose CommentsPermalink

Subtitle C--Sugar Program RepealCommentsClose CommentsPermalink

SEC. 1301. REPEAL OF SUGAR PROGRAM.

Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is repealed.CommentsClose CommentsPermalink

SEC. 1302. ELIMINATION OF SUGAR PRICE SUPPORT AND PRODUCTION ADJUSTMENT PROGRAMS.

(a) In General- Notwithstanding any other provision of law--CommentsClose CommentsPermalink





(1) a processor of any of the 2013 or subsequent crops of sugarcane or sugar beets shall not be eligible for a loan under any provision of law with respect to the crop; andCommentsClose CommentsPermalink





(2) the Secretary of Agriculture may not make price support available, whether in the form of a loan, payment, purchase, or other operation, for any of the 2013 and subsequent crops of sugar beets and sugarcane by using the funds of the Commodity Credit Corporation or other funds available to the Secretary.CommentsClose CommentsPermalink





(b) Termination of Marketing Quotas and Allotments-CommentsClose CommentsPermalink





(1) IN GENERAL- Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 344(f)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1344(f)(2)) is amended by striking ‘sugar cane for sugar, sugar beets for sugar,’.CommentsClose CommentsPermalink





(c) General Powers-CommentsClose CommentsPermalink





(1) SECTION 32 ACTIVITIES- Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), is amended in the second sentence of the first paragraph--CommentsClose CommentsPermalink





(A) in paragraph (1), by inserting ‘(other than sugar beets and sugarcane)’ after ‘commodities’; andCommentsClose CommentsPermalink





(B) in paragraph (3), by inserting ‘(other than sugar beets and sugarcane)’ after ‘commodity’.CommentsClose CommentsPermalink





(2) POWERS OF COMMODITY CREDIT CORPORATION- Section 5(a) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting ‘, sugar beets, and sugarcane’ after ‘tobacco’.CommentsClose CommentsPermalink





(3) PRICE SUPPORT FOR NONBASIC AGRICULTURAL COMMODITIES- Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking ‘milk, sugar beets, and sugarcane’ and inserting ‘, and milk’.CommentsClose CommentsPermalink





(4) COMMODITY CREDIT CORPORATION STORAGE PAYMENTS- Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is repealed.CommentsClose CommentsPermalink





(5) SUSPENSION AND REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY- Section 171(a)(1) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is amended--CommentsClose CommentsPermalink





(A) by striking subparagraph (E); andCommentsClose CommentsPermalink





(B) by redesignating subparagraphs (F) through (I) as subparagraphs (E) through (H), respectively.CommentsClose CommentsPermalink





(6) STORAGE FACILITY LOANS- Section 1402(c) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7971) is repealed.CommentsClose CommentsPermalink





(d) Transition Provisions- This section and the amendments made by this section shall not affect the liability of any person under any provision of law as in effect before the application of this section and the amendments made by this section.CommentsClose CommentsPermalink

SEC. 1303. ELIMINATION OF SUGAR TARIFF AND OVER-QUOTA TARIFF RATE.

(a) Elimination of Tariff on Raw Cane Sugar- Chapter 17 of the Harmonized Tariff Schedule of the United States is amended by striking subheadings 1701.11 through 1701.11.50 and inserting in numerical sequence the following new subheading, with the article description for such subheading having the same degree of indentation as the article description for subheading 1701.11, as in effect on the day before the date of the enactment of this section:CommentsClose CommentsPermalink

--------------------------------------------------CommentsClose CommentsPermalink

--------------------------------------------------CommentsClose CommentsPermalink

‘ 1701.11.00 Cane sugar Free  39.85›/kg ’. CommentsClose CommentsPermalink

--------------------------------------------------CommentsClose CommentsPermalink

(b) Elimination of Tariff on Beet Sugar- Chapter 17 of the Harmonized Tariff Schedule of the United States is amended by striking subheadings 1701.12 through 1701.12.50 and inserting in numerical sequence the following new subheading, with the article description for such subheading having the same degree of indentation as the article description for subheading 1701.12, as in effect on the day before the date of the enactment of this section:CommentsClose CommentsPermalink

--------------------------------------------------CommentsClose CommentsPermalink

--------------------------------------------------CommentsClose CommentsPermalink

‘ 1701.12.00 Beet sugar Free  42.05›/kg ’. CommentsClose CommentsPermalink

--------------------------------------------------CommentsClose CommentsPermalink

(c) Elimination of Tariff on Certain Refined Sugar- Chapter 17 of the Harmonized Tariff Schedule of the United States is amended--CommentsClose CommentsPermalink





(1) by striking the superior text immediately preceding subheading 1701.91.05 and by striking subheadings 1701.91.05 through 1701.91.30 and inserting in numerical sequence the following new subheading, with the article description for such subheading having the same degree of indentation as the article description for subheading 1701.12.05, as in effect on the day before the date of the enactment of this section:CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

‘ 1701.91.02 Containing added coloring but not containing added flavoring matter Free  42.05›/kg ’; CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

(2) by striking subheadings 1701.99 through 1701.99.50 and inserting in numerical sequence the following new subheading, with the article description for such subheading having the same degree of indentation as the article description for subheading 1701.99, as in effect on the day before the date of the enactment of this section:CommentsClose CommentsPermalink

---------------------------------------------CommentsClose CommentsPermalink

---------------------------------------------CommentsClose CommentsPermalink

‘ 1701.99.00 Other Free  42.05›/kg ’; CommentsClose CommentsPermalink

---------------------------------------------CommentsClose CommentsPermalink

(3) by striking the superior text immediately preceding subheading 1702.90.05 and by striking subheadings 1702.90.05 through 1702.90.20 and inserting in numerical sequence the following new subheading, with the article description for such subheading having the same degree of indentation as the article description for subheading 1702.60.22:CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

‘ 1702.90.02 Containing soluble non-sugar solids (excluding any foreign substances, including but not limited to molasses, that may have been added to or developed in the product) equal to 6 percent or less by weight of the total soluble solids Free  42.05›/kg   ’; CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

andCommentsClose CommentsPermalink





(4) by striking the superior text immediately preceding subheading 2106.90.42 and by striking subheadings 2106.90.42 through 2106.90.46 and inserting in numerical sequence the following new subheading, with the article description for such subheading having the same degree of indentation as the article description for subheading 2106.90.39:CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

‘ 2106.90.40 Syrups derived from cane or beet sugar, containing added coloring but not added flavoring matter Free  42.50›/kg   ’. CommentsClose CommentsPermalink

-------------------------------------------------------------------------------- CommentsClose CommentsPermalink

(d) Conforming Amendment- Chapter 17 of the Harmonized Tariff Schedule of the United States is amended by striking additional U.S. note 5.CommentsClose CommentsPermalink





(e) Administration of Tariff-Rate Quotas- Section 404(d)(1) of the Uruguay Round Agreements Act (19 U.S.C. 3601(d)(1)) is amended--CommentsClose CommentsPermalink





(1) by inserting ‘or’ at the end of subparagraph (B);CommentsClose CommentsPermalink





(2) by striking ‘; or’ at the end of subparagraph (C) and inserting a period; andCommentsClose CommentsPermalink





(3) by striking subparagraph (D).CommentsClose CommentsPermalink





(f) Effective Date- The amendments made by this section apply with respect to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 1304. APPLICATION.

Except as otherwise provided in this subtitle, this subtitle and the amendments made by this subtitle shall apply beginning with the 2013 crop of sugar beets and sugarcane.CommentsClose CommentsPermalink

Subtitle D--Dairy Program ReformCommentsClose CommentsPermalink

PART I--DAIRY PRODUCER MARGIN PROTECTION AND DAIRY MARKET STABILIZATION PROGRAMS

SEC. 1401. DEFINITIONS.

In this part:CommentsClose CommentsPermalink





(1) ACTUAL DAIRY PRODUCER MARGIN- The term ‘actual dairy producer margin’ means the difference between the all-milk price and the average feed cost, as calculated under section 1402.CommentsClose CommentsPermalink





(2) ALL-MILK PRICE- The term ‘all-milk price’ means the average price received, per hundredweight of milk, by dairy producers for all milk sold to plants and dealers in the United States, as reported by the National Agricultural Statistics Service.CommentsClose CommentsPermalink





(3) ANNUAL PRODUCTION QUANTITY- The term ‘annual production quantity’ means the quantity of annual milk marketings determined for a dairy producer under section 1413(b) for each year in which the dairy producer participates in the margin protection program.CommentsClose CommentsPermalink





(4) AVERAGE FEED COST- The term ‘average feed cost’ means the average cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 1402 using the sum of the following:CommentsClose CommentsPermalink





(A) The product determined by multiplying 1.192 by the price of corn per bushel.CommentsClose CommentsPermalink





(B) The product determined by multiplying 0.00817 by the price of soybean meal per ton.CommentsClose CommentsPermalink





(C) The product determined by multiplying 0.0152 by the price of alfalfa hay per ton.CommentsClose CommentsPermalink





(5) BOARD OF DIRECTORS- The term ‘board of directors’ means the board of directors appointed by the Secretary under section 1438.CommentsClose CommentsPermalink





(6) CONSECUTIVE TWO-MONTH PERIOD- The term ‘consecutive two-month period’ refers to the two-month period consisting of the months of January and February, March and April, May and June, July and August, September and October, or November and December, respectively.CommentsClose CommentsPermalink





(7) DAIRY PRODUCER- The term ‘dairy producer’ means an individual or entity that directly or indirectly (as determined by the Secretary)--CommentsClose CommentsPermalink





(A) shares in the risk of producing milk; andCommentsClose CommentsPermalink





(B) makes contributions (including land, labor, management, equipment, or capital) to the dairy operation of the individual or entity that are at least commensurate with the share of the individual or entity of the proceeds of the operation.CommentsClose CommentsPermalink





(8) HANDLER-CommentsClose CommentsPermalink





(A) IN GENERAL- The term ‘handler’ means a person making payment to a dairy producer for milk produced in the United States and marketed for commercial use.CommentsClose CommentsPermalink





(B) PRODUCER-HANDLER- The term includes a producer-handler.CommentsClose CommentsPermalink





(9) MARGIN PROTECTION PROGRAM- The term ‘margin protection program’ means the dairy producer margin protection program required by subpart A.CommentsClose CommentsPermalink





(10) PARTICIPATING DAIRY PRODUCER- The term ‘participating dairy producer’ means a dairy producer that--CommentsClose CommentsPermalink





(A) registers under section 1412(b) to participate in the margin protection program under subpart A; andCommentsClose CommentsPermalink





(B) as a result of such registration, also participates in the stabilization program under subpart B.CommentsClose CommentsPermalink





(11) PRODUCTION HISTORY- The term ‘production history’ means the quantity of annual milk marketings determined for a dairy producer under section 1413(a).CommentsClose CommentsPermalink





(12) SECRETARY- The term ‘Secretary’ means the Secretary of Agriculture.CommentsClose CommentsPermalink





(13) STABILIZATION PROGRAM- The term ‘stabilization program’ means the dairy market stabilization program required by subpart B for all participating dairy producers.CommentsClose CommentsPermalink





(14) STABILIZATION PROGRAM BASE- The term ‘stabilization program base’, with respect to a participating dairy producer, means the stabilization program base calculated for the producer under section 1431(b).CommentsClose CommentsPermalink





(15) UNITED STATES- The term ‘United States’, in a geographical sense, means the 50 States.CommentsClose CommentsPermalink

SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL DAIRY PRODUCER MARGINS.

(a) Calculation of Average Feed Cost- The Secretary shall calculate the national average feed cost for each month using the following data:CommentsClose CommentsPermalink





(1) The price of corn for a month shall be the price received during that month by farmers in the United States for corn, as reported by the National Agricultural Statistics Service.CommentsClose CommentsPermalink





(2) The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported by the Agricultural Marketing Service.CommentsClose CommentsPermalink





(3) The price of alfalfa hay for a month shall be the price received during that month by farmers in the United States for alfalfa hay, as reported by the National Agricultural Statistics Service.CommentsClose CommentsPermalink





(b) Calculation of Actual Dairy Producer Margins-CommentsClose CommentsPermalink





(1) MARGIN PROTECTION PROGRAM- For use in the margin protection program under subpart A, the Secretary shall calculate the actual dairy producer margin for each consecutive two-month period by subtracting--CommentsClose CommentsPermalink





(A) the average feed cost for that consecutive two-month period, determined in accordance with subsection (a); fromCommentsClose CommentsPermalink





(B) the all-milk price for that consecutive two-month period.CommentsClose CommentsPermalink





(2) STABILIZATION PROGRAM- For use in the stabilization program under subpart B, the Secretary shall calculate (not later than 20th of each month) the actual dairy producer margin for the preceding month by subtracting--CommentsClose CommentsPermalink





(A) the average feed cost for that preceding month, determined in accordance with subsection (a); fromCommentsClose CommentsPermalink





(B) the all-milk price for that preceding month.CommentsClose CommentsPermalink

Subpart A--Dairy Producer Margin Protection Program

SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCER MARGIN PROTECTION PROGRAM.

The Secretary shall establish and administer a dairy producer margin protection program for the purpose of protecting dairy producer income by paying participating dairy producers--CommentsClose CommentsPermalink





(1) basic margin protection payments when actual dairy producer margins are less than the threshold levels for such payments; andCommentsClose CommentsPermalink





(2) supplemental margin protection payments if purchased by a participating dairy producer.CommentsClose CommentsPermalink

SEC. 1412. ELIGIBILITY AND REGISTRATION OF DAIRY PRODUCERS FOR MARGIN PROTECTION PROGRAM.

(a) Eligibility- All dairy producers in the United States are eligible to participate in the margin protection program, except that a dairy producer must be registered with the Secretary before the producer may receive--CommentsClose CommentsPermalink





(1) basic margin protection payments under section 1414; andCommentsClose CommentsPermalink





(2) if the dairy producer purchases supplemental margin protection under section 1415, supplemental margin protection payments under such section.CommentsClose CommentsPermalink





(b) Registration Process-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall register all interested dairy producers in the margin protection program. The Secretary shall specify the manner and form by which a dairy producer must register.CommentsClose CommentsPermalink





(2) TREATMENT OF MULTI-PRODUCER OPERATIONS- If a dairy operation consists of more than one dairy producer, all of the dairy producers of the operation shall be treated as a single dairy producer for purposes of--CommentsClose CommentsPermalink





(A) registration to receive basic margin protection and purchase supplemental margin protection;CommentsClose CommentsPermalink





(B) payment of the administrative fee under subsection (d) and producer premiums under section 1415; andCommentsClose CommentsPermalink





(C) participation in the stabilization program under subpart B.CommentsClose CommentsPermalink





(3) TREATMENT OF PRODUCERS WITH MULTIPLE DAIRY OPERATIONS- If a dairy producer operates two or more dairy operations, each dairy operation of the producer shall require a separate registration to receive basic margin protection and purchase supplemental margin protection. Only those dairy operations so registered shall be subject to the stabilization program.CommentsClose CommentsPermalink





(c) Time for Registration-CommentsClose CommentsPermalink





(1) EXISTING DAIRY PRODUCERS- During the one-year period beginning on the date of the enactment of this Act, a dairy producer that is actively engaged in a dairy operation as of such date may register with the Secretary--CommentsClose CommentsPermalink





(A) to receive basic margin protection; andCommentsClose CommentsPermalink





(B) if the producer elects, to purchase supplemental margin protection.CommentsClose CommentsPermalink





(2) NEW ENTRANTS- A dairy producer that has no existing interest in a dairy operation as of the date of the enactment of this Act, but that, after such date, establishes a new dairy operation, may register with the Secretary during the 180-day period beginning on the date on which the dairy operation first markets milk commercially--CommentsClose CommentsPermalink





(A) to receive basic margin protection; andCommentsClose CommentsPermalink





(B) if the producer elects, to purchase supplemental margin protection.CommentsClose CommentsPermalink





(d) Administrative Fee for Registration-CommentsClose CommentsPermalink





(1) ADMINISTRATIVE FEE REQUIRED- A dairy producer shall pay an administrative fee under this subsection to register for the margin protection program. The participating dairy producer shall pay the administrative fee annually thereafter to remain registered for the margin protection program.CommentsClose CommentsPermalink





(2) FEE AMOUNT- The administrative fee for a dairy producer shall be as follows:CommentsClose CommentsPermalink





(A) If the dairy producer marketed less than 10 million pounds of milk in the previous calendar year, the administrative fee shall be equal to $100.CommentsClose CommentsPermalink





(B) If the dairy producer marketed between 10 million and 40 million pounds of milk in the previous calendar year, the administrative fee shall be equal to $400.CommentsClose CommentsPermalink





(C) If the dairy producer marketed more than 40 million pounds of milk in the previous calendar year, the administrative fee shall be equal to $1,000.CommentsClose CommentsPermalink





(e) Reconstitution- The Secretary shall ensure that a dairy producer does not reconstitute a dairy operation for the sole purpose of receiving basic margin protection, purchasing supplemental margin protection, or avoiding participation in the stabilization program.CommentsClose CommentsPermalink

SEC. 1413. PRODUCTION HISTORY AND ANNUAL PRODUCTION QUANTITY OF PARTICIPATING DAIRY PRODUCERS.

(a) Determination of Production History-CommentsClose CommentsPermalink





(1) DETERMINATION REQUIRED- The Secretary shall determine the production history of the dairy operation of each participating dairy producer in the margin protection program.CommentsClose CommentsPermalink





(2) CALCULATION- Except as provided in paragraph (3), the production history of a participating dairy producer is equal to the highest annual milk marketings of the dairy producer during any one of the three calendar years immediately preceding the dairy producer’s registration for participation in the margin protection program.CommentsClose CommentsPermalink





(3) NEW PRODUCERS- If a dairy producer has been in operation for less than a year, the Secretary shall determine the production history of the dairy producer by extrapolating the actual milk marketings for the months the dairy producer has been in operation to a yearly amount.CommentsClose CommentsPermalink





(4) NO CHANGE IN PRODUCTION HISTORY FOR BASIC MARGIN PROTECTION- Once the production history of a participating dairy producer is determined under paragraph (2) or (3), the production history shall not be subsequently changed for purposes of determining the amount of any basic margin protection payments for the dairy producer made under section 1414.CommentsClose CommentsPermalink





(b) Determination of Annual Production Quantity for Supplemental Margin Protection-CommentsClose CommentsPermalink





(1) DETERMINATION REQUIRED- If a dairy producer selects the growth option when purchasing supplemental margin protection under section 1415, the Secretary shall determine the annual production quantity of the dairy operation of the dairy producer under paragraph (2).CommentsClose CommentsPermalink





(2) CALCULATION- The annual production quantity of a participating dairy producer is equal to the actual milk marketings of the dairy producer during each calendar year in which the dairy producer purchases supplemental margin protection, including the calendar year during which the dairy producer first purchases such supplemental margin protection.CommentsClose CommentsPermalink





(c) Required Information- A participating dairy producer shall provide all information that the Secretary may require in order to establish--CommentsClose CommentsPermalink





(1) the production history of the dairy operation of the dairy producer; andCommentsClose CommentsPermalink





(2) the annual production quantity of the dairy operation of the dairy producer if the dairy producer selects the growth option when purchasing supplemental margin protection under section 1415.CommentsClose CommentsPermalink





(d) Transfer of Production History or Annual Production Quantity-CommentsClose CommentsPermalink





(1) TRANSFER BY SALE-CommentsClose CommentsPermalink





(A) REQUEST FOR TRANSFER- If an existing dairy producer, as described in section 1412(c)(1), sells an entire dairy operation to another party, the seller and purchaser may jointly request that the Secretary transfer to the purchaser the seller’s interest in--CommentsClose CommentsPermalink





(i) production history of the dairy operation; andCommentsClose CommentsPermalink





(ii) if applicable, the annual production quantity of the dairy operation for each year in which the margin protection program has been in effect.CommentsClose CommentsPermalink





(B) TRANSFER- If the Secretary determines that the seller has sold the entire dairy operation to the purchaser, the Secretary shall approve the transfer described in subparagraph (A), and, thereafter, the seller shall have no interest in--CommentsClose CommentsPermalink





(i) the production history of the sold dairy operation; orCommentsClose CommentsPermalink





(ii) if applicable, the annual production quantity of the dairy operation.CommentsClose CommentsPermalink





(2) TRANSFER BY LEASE-CommentsClose CommentsPermalink





(A) REQUEST FOR TRANSFER- If an existing dairy producer, as described in section 1412(c)(1), leases an entire dairy operation to another party, the lessor and lessee may jointly request that the Secretary transfer to the lessee for the duration of the term of the lease the lessor’s interest in--CommentsClose CommentsPermalink





(i) production history of the dairy operation; andCommentsClose CommentsPermalink





(ii) if applicable, the annual production quantity of the dairy operation for each year in which the margin protection program has been in effect.CommentsClose CommentsPermalink





(B) TRANSFER- If the Secretary determines that the lessor has leased the entire dairy operation to the lessee, the Secretary shall approve the transfer described in subparagraph (A), and, thereafter, the lessor shall have no interest for the duration of the term of the lease in--CommentsClose CommentsPermalink





(i) the production history of the leased dairy operation; orCommentsClose CommentsPermalink





(ii) if applicable, the annual production quantity of the dairy operation.CommentsClose CommentsPermalink





(3) COVERAGE LEVEL-CommentsClose CommentsPermalink





(A) BASIC MARGIN PROTECTION- A purchaser or lessee to whom the Secretary transfers a production history or annual production quantity under this subsection may not obtain a different level of basic margin protection than the basic margin protection coverage held by the seller or lessor from whom the transfer was obtained.CommentsClose CommentsPermalink





(B) SUPPLEMENTAL MARGIN PROTECTION- A purchaser or lessee to whom the Secretary transfers a production history or annual production quantity under this subsection may not obtain a different level of supplemental margin protection coverage than the supplemental margin protection coverage held by the seller or lessor from whom the transfer was obtained.CommentsClose CommentsPermalink





(4) NEW ENTRANTS- The Secretary may not transfer the production history or annual production quantity determined for a dairy producer described in section 1412(c)(2) to another person.CommentsClose CommentsPermalink





(e) Movement and Transfer of Production History or Annual Production Quantity-CommentsClose CommentsPermalink





(1) MOVEMENT AND TRANSFER AUTHORIZED- Subject to paragraph (2), if a dairy producer moves from one location to another location, the dairy producer may maintain the production history and annual production quantity associated with the operation.CommentsClose CommentsPermalink





(2) NOTIFICATION REQUIREMENT- A dairy producer shall notify the Secretary of any move of a dairy operation under paragraph (1).CommentsClose CommentsPermalink





(3) SUBSEQUENT OCCUPATION OF VACATED LOCATION- A party subsequently occupying a dairy operation location vacated as described in paragraph (1) shall have no interest in the production history or annual production quantity previously associated with the operation at such location.CommentsClose CommentsPermalink

SEC. 1414. BASIC MARGIN PROTECTION.

(a) Eligibility- All participating dairy producers are eligible to receive basic margin protection under the margin protection program.CommentsClose CommentsPermalink





(b) Payment Threshold- Participating dairy producers shall receive a basic margin protection payment whenever the average actual dairy producer margin for a consecutive two-month period is less than $4.00 per hundredweight of milk.CommentsClose CommentsPermalink





(c) Basic Margin Protection Payment-CommentsClose CommentsPermalink





(1) PAYMENT REQUIRED- The Secretary shall make a basic margin protection payment to each participating dairy producer for a consecutive two-month period whenever such a payment is required by subsection (b) for that period.CommentsClose CommentsPermalink





(2) AMOUNT OF PAYMENT- The basic margin protection payment for the dairy operation of a participating dairy producer for a consecutive two-month period shall be determined as follows:CommentsClose CommentsPermalink





(A) The Secretary shall calculate the difference between the average actual dairy producer margin for the consecutive two-month period and $4.00, except that, if the difference is more than $4.00, the Secretary shall use $4.00.CommentsClose CommentsPermalink





(B) The Secretary shall multiply the amount under subparagraph (A) by of the lesser of the following:CommentsClose CommentsPermalink





(i) 80 percent of the production history of the dairy producer, divided by six.CommentsClose CommentsPermalink





(ii) The actual amount of milk marketed by the dairy operation of the dairy producer during the consecutive two-month period.CommentsClose CommentsPermalink

SEC. 1415. SUPPLEMENTAL MARGIN PROTECTION.

(a) Election of Supplemental Margin Protection- At the time of the registration of a dairy producer in the margin protection program under section 1412, the dairy producer may purchase supplemental margin protection to protect a higher level of the income of a participating dairy producer than the income level guaranteed by basic margin protection under section 1414.CommentsClose CommentsPermalink





(b) Selection of Payment Threshold- A participating dairy producer purchasing supplemental margin protection shall elect a coverage level that is higher, in any increment of $0.50, than the payment threshold for basic margin protection specified in section 1414(b), but not to exceed $8.00.CommentsClose CommentsPermalink





(c) Selection of Coverage Percentage- A participating dairy producer purchasing supplemental margin protection shall elect a percentage of coverage, equal to not more than 90 percent nor less than 25 percent, of--CommentsClose CommentsPermalink





(1) the production history of the dairy operation of the participating dairy producer; orCommentsClose CommentsPermalink





(2) if the participating dairy producer elects the growth option under subsection (d)--CommentsClose CommentsPermalink





(A) the production history of the dairy operation of the dairy producer, to be used for the calendar year during which the dairy producer registers for participation in the margin protection program; andCommentsClose CommentsPermalink





(B) for subsequent calendar years in which the margin protection program is in effect, the greater of--CommentsClose CommentsPermalink





(i) the production history of the dairy operation of the dairy producer; orCommentsClose CommentsPermalink





(ii) the highest annual production quantity of the dairy operation of the dairy producer during any previous calendar year in which the margin protection program was in effect.CommentsClose CommentsPermalink





(d) Availability of Growth Option- When a dairy producer purchases supplemental margin protection, the dairy producer may elect a growth option that authorizes the use of the annual production quantity of the dairy operation of the dairy producer, in lieu of production history, as provided in subsection (c)(2) to determine supplemental margin protection payments for the dairy producer under subsection (h).CommentsClose CommentsPermalink





(e) Producer Premiums-CommentsClose CommentsPermalink





(1) PREMIUMS REQUIRED- A participating dairy producer that purchases supplemental margin protection shall pay an annual premium equal to the product obtained by multiplying--CommentsClose CommentsPermalink





(A) the percentage selected by the dairy producer under subsection (c);CommentsClose CommentsPermalink





(B) the production history or annual production quantity applicable to the dairy producer under such subsection; andCommentsClose CommentsPermalink





(C) the premium per hundredweight of milk, as follows:CommentsClose CommentsPermalink

--------------------------------CommentsClose CommentsPermalink

Coverage Level Premium per Cwt. CommentsClose CommentsPermalink

--------------------------------CommentsClose CommentsPermalink

         $4.50           $0.015 CommentsClose CommentsPermalink

         $5.00           $0.036 CommentsClose CommentsPermalink

         $5.50           $0.081 CommentsClose CommentsPermalink

         $6.00           $0.155 CommentsClose CommentsPermalink

         $6.50           $0.230 CommentsClose CommentsPermalink

         $7.00           $0.434 CommentsClose CommentsPermalink

         $7.50           $0.590 CommentsClose CommentsPermalink

         $8.00          $0.922. CommentsClose CommentsPermalink

--------------------------------CommentsClose CommentsPermalink

(2) TIME FOR PAYMENT-CommentsClose CommentsPermalink





(A) FIRST YEAR- As soon as practicable after a dairy producer registers to participate in the margin protection program and purchases supplemental margin protection, the dairy producer shall pay the premium determined under paragraph (1) for the dairy producer for the first calendar year of such supplemental margin protection.CommentsClose CommentsPermalink





(B) SUBSEQUENT YEARS- When the dairy producer first purchases supplemental margin protection, the dairy producer shall also elect the method by which the dairy producer will pay premiums under this subsection for subsequent years in accordance with one of the following schedules:CommentsClose CommentsPermalink





(i) SINGLE ANNUAL PAYMENT- The participating dairy producer may elect to pay 100 percent of the annual premium determined under paragraph (1) for the dairy producer for a calendar year not later than January 15 of the calendar year.CommentsClose CommentsPermalink





(ii) SEMI-ANNUAL PAYMENT- The participating dairy producer may elect to pay 50 percent of the annual premium determined under paragraph (1) for the dairy producer for a calendar year not later than January 15 of the calendar year and the remaining 50 percent of the premium not later than June 15 of the calendar year.CommentsClose CommentsPermalink





(f) Producer’s Premium Obligations-CommentsClose CommentsPermalink





(1) PRO-RATION OF FIRST YEAR PREMIUM- A participating dairy producer that purchases supplemental margin protection after initial registration in the margin protection program shall pay a pro-rated premium for the first calendar year based on the date on which the producer purchases the coverage.CommentsClose CommentsPermalink





(2) SUBSEQUENT PREMIUMS- Other than as provided in paragraph (1), the annual premium for a participating dairy producer shall be determined under subsection (e) for each year in which the margin protection program is in effect.CommentsClose CommentsPermalink





(3) LEGAL OBLIGATION- A participating dairy producer that purchases supplemental margin protection shall be legally obligated to pay the applicable premiums for the entire period of the margin protection program (as provided in the payment schedule elected under subsection (e)(2)), and may not opt out of the margin protection program, except--CommentsClose CommentsPermalink





(A) if the dairy producer dies, the estate of the deceased may cancel the supplemental margin protection and shall not be responsible for any further premium payments; orCommentsClose CommentsPermalink





(B) if the dairy producer retires, the producer may request that Secretary cancel the supplemental margin protection if the producer has terminated the dairy operation entirely and certifies under oath that the producer will not be actively engaged in any dairy operation for at least the next seven years.CommentsClose CommentsPermalink





(g) Supplemental Payment Threshold- A participating dairy producer with supplemental margin protection shall receive a supplemental margin protection payment whenever the average actual dairy producer margin for a consecutive two-month period is less than the coverage level threshold selected by the dairy producer under subsection (b).CommentsClose CommentsPermalink





(h) Supplemental Margin Protection Payments-CommentsClose CommentsPermalink





(1) IN GENERAL- The supplemental margin protection payment for a participating dairy producer is in addition to the basic margin protection payment.CommentsClose CommentsPermalink





(2) AMOUNT OF PAYMENT- The supplemental margin protection payment for the dairy operation of a participating dairy producer shall be determined as follows:CommentsClose CommentsPermalink





(A) The Secretary shall calculate the difference between the coverage level threshold selected by the dairy producer under subsection (b) and the greater of--CommentsClose CommentsPermalink





(i) the average actual dairy producer margin for the consecutive two-month period; orCommentsClose CommentsPermalink





(ii) $4.00.CommentsClose CommentsPermalink





(B) The amount determined under subparagraph (A) shall be multiplied by the percentage selected by the dairy producer under subsection (c) and by the lesser of the following:CommentsClose CommentsPermalink





(i) The production history or annual production quantity applicable to the producer under subsection (c), divided by six.CommentsClose CommentsPermalink





(ii) The actual amount of milk marketed by the dairy operation of the dairy producer during the consecutive two-month period.CommentsClose CommentsPermalink

SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATIVE FEES OR PREMIUMS.

(a) Loss of Benefits- A participating dairy producer that fails to pay the required administrative fee under section 1412 or is in arrears on premium payments for supplemental margin protection under section 1415--CommentsClose CommentsPermalink





(1) remains legally obligated to pay the administrative fee or premiums, as the case may be; andCommentsClose CommentsPermalink





(2) may not receive basic margin protection payments or supplemental margin protection payments until the fees or premiums are fully paid.CommentsClose CommentsPermalink





(b) Enforcement- The Secretary may take such action as necessary to collect administrative fees and premium payments for supplemental margin protection.CommentsClose CommentsPermalink

SEC. 1417. NO PAYMENT LIMITATIONS.

Notwithstanding any other provision of law (except section 1416), basic margin protection payments and supplemental margin protection payments received by a participating dairy producer shall not be subject to limitations for any reason.CommentsClose CommentsPermalink

Subpart B--Dairy Market Stabilization Program

SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZATION PROGRAM.

(a) Program Required; Purpose- The Secretary shall establish and administer a dairy market stabilization program applicable to participating dairy producers for the purpose of assisting in balancing the supply of milk with demand when dairy producers are experiencing low or negative operating margins.CommentsClose CommentsPermalink





(b) Election of Stabilization Program Base Calculation Method-CommentsClose CommentsPermalink





(1) DEADLINE FOR ELECTION- Not later than January 15, 2012, each participating dairy producer shall inform the Secretary of the method by which the stabilization program base for the dairy producer for 2012 will be calculated under paragraph (3).CommentsClose CommentsPermalink





(2) CHANGE IN CALCULATION METHOD- A participating dairy producer may change the stabilization program base calculation method to be used for a calendar year by notifying the Secretary of the change not later than January 15 of that year.CommentsClose CommentsPermalink





(3) CALCULATION METHODS- A participating dairy producer may elect either of the following methods for calculation of the stabilization program base for the producer:CommentsClose CommentsPermalink





(A) The volume of the average monthly milk marketings of the dairy producer for the three months immediately preceding the announcement by the Secretary that the stabilization program will become effective.CommentsClose CommentsPermalink





(B) The volume of the monthly milk marketings of the dairy producer for the same month in the preceding year as the month for which the Secretary has announced the stabilization program will become effective.CommentsClose CommentsPermalink





(c) Treatment of Multi-Producer Operations- As provided in section 1412(b)(2), if a dairy operation consists of more than one dairy producer, all of the dairy producers of the operation shall be treated as a single participating dairy producer for purposes of operation of the stabilization program with respect to the producers.CommentsClose CommentsPermalink





(d) Treatment of Producers With Multiple Dairy Operations- As provided in section 1412(b)(3), if a participating dairy producer operates two or more dairy operations, only those dairy operations of the dairy producer registered under section 1412 shall be subject to the stabilization program.CommentsClose CommentsPermalink

SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUCTION IN DAIRY PRODUCER PAYMENTS.

(a) When Stabilization Program Required- The Secretary shall announce that the stabilization program is in effect and order reduced payments for any participating dairy producer that exceeds the applicable percentage of the producer’s stabilization program base whenever--CommentsClose CommentsPermalink





(1) the actual dairy producer margin has been $6.00 or less per hundredweight of milk for the immediately preceding two months; orCommentsClose CommentsPermalink





(2) the actual dairy producer margin has been $4.00 or less per hundredweight of milk for the immediately preceding month.CommentsClose CommentsPermalink





(b) Effective Date for Implementation of Payment Reductions- Reductions in dairy producer payments shall commence beginning on the first day of the month immediately following the announcement by the Secretary under subsection (a).CommentsClose CommentsPermalink

SEC. 1433. PRODUCER MILK MARKETINGS INFORMATION.

(a) Collection of Milk Marketing Data- For each month during which the stabilization program is in effect, each handler shall calculate the following:CommentsClose CommentsPermalink





(1) The volume of milk marketings the handler has received from each participating dairy producer during that month.CommentsClose CommentsPermalink





(2) The volume of milk marketings the handler has received from each participating dairy producer during the same month of the preceding year.CommentsClose CommentsPermalink





(3) The volume of milk marketings the handler has received from each participating dairy producer during each of the three months preceding the month in which the Secretary makes the announcement that the stabilization program will be in effect.CommentsClose CommentsPermalink





(b) Effect of Changing Handlers- If a participating dairy producer changes handlers, the producer shall ensure that milk marketings data required to make the calculations under subsection (a) is provided to the new handler.CommentsClose CommentsPermalink

SEC. 1434. CALCULATION AND COLLECTION OF REDUCED DAIRY PRODUCER PAYMENTS.

(a) Reduced Producer Payments Required- During any month in which payment reductions are in effect under the stabilization program, each handler shall reduce payments to each participating dairy producer from whom the handler receives milk.CommentsClose CommentsPermalink





(b) Reductions Based on Actual Dairy Producer Margin-CommentsClose CommentsPermalink





(1) REDUCTION REQUIREMENT 1- Unless the reduction required by paragraph (2) or (3) applies, when the actual dairy producer margin has been $6.00 or less per hundredweight of milk for two consecutive months, the handler shall make payments to a participating dairy producer for a month based on the greater of the following:CommentsClose CommentsPermalink





(A) 98 percent of the stabilization program base of the dairy producer.CommentsClose CommentsPermalink





(B) 94 percent of the marketings of milk for the month by the producer.CommentsClose CommentsPermalink





(2) REDUCTION REQUIREMENT 2- Unless the reduction required by paragraph (3) applies, when the actual dairy producer margin has been $5.00 or less per hundredweight of milk for two consecutive months, the handler shall make payments to a participating dairy producer for a month based on the greater of the following:CommentsClose CommentsPermalink





(A) 97 percent of the stabilization program base of the dairy producer.CommentsClose CommentsPermalink





(B) 93 percent of the marketings of milk for the month by the producer.CommentsClose CommentsPermalink





(3) REDUCTION REQUIREMENT 3- When the actual dairy producer margin has been $4.00 or less for any one month, the handler shall make payments to a participating dairy producer for a month based on the greater of the following:CommentsClose CommentsPermalink





(A) 96 percent of the stabilization program base of the dairy producer.CommentsClose CommentsPermalink





(B) 92 percent of the marketings of milk for the month by the producer.CommentsClose CommentsPermalink





(c) Continuation of Reductions- The largest level of payment reduction required under paragraph (1), (2), or (3) of subsection (b) shall be continued for each month until the Secretary suspends the stabilization program and terminates payment reductions in accordance with section 1436.CommentsClose CommentsPermalink





(d) Payment Reduction Exception- Notwithstanding any preceding subsection of this section, a handler shall make no payment reductions for a dairy producer for a month if the producer’s milk marketings for the month are equal to or less than the percentage of the stabilization program base applicable to the producer under paragraph (1), (2), or (3) of subsection (b).CommentsClose CommentsPermalink

SEC. 1435. REMITTING MONIES TO COMMODITY CREDIT CORPORATION.

(a) Remitting Monies- As soon as practicable after the end of each month during which payment reductions are in effect under the stabilization program, each handler shall remit to the Commodity Credit Corporation an amount equal to the amount by which payments to participating dairy producers are reduced by the handler under section 1434.CommentsClose CommentsPermalink





(b) Availability of Monies- As soon as practicable after receipt of monies under subsection (a), the Commodity Credit Corporation shall make the monies available to the board of directors under section 1438.CommentsClose CommentsPermalink

SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIREMENT.

(a) Suspension Thresholds- The Secretary shall suspend the stabilization program whenever the Secretary determines that--CommentsClose CommentsPermalink





(1) the actual dairy producer margin is greater than $6.00 per hundredweight of milk for 2 consecutive months;CommentsClose CommentsPermalink





(2)(A) the price for cheddar cheese or non-fat dry milk in the United States, as determined by the National Agricultural Statistics Service, is not less than 97 percent of the world price of cheddar cheese or skim milk powder in Oceania, as determined by the Secretary, for 2 consecutive months; andCommentsClose CommentsPermalink





(B) the dairy producer margin is equal to or less than $6 for the same 2 consecutive months;CommentsClose CommentsPermalink





(3)(A) the price for cheddar cheese or non-fat dry milk in the United States, as determined by the National Agricultural Statistics Service, is more than 3 percent higher than the world price of cheddar cheese or skim milk powder in Oceania, as determined by the Secretary, for 2 consecutive months; andCommentsClose CommentsPermalink





(B) the dairy producer margin is equal to or less than $5 for the same 2 consecutive months; orCommentsClose CommentsPermalink





(4)(A) the price for cheddar cheese or non-fat dry milk in the United States, as determined by the National Agricultural Statistics Service, is more than 6 percent higher than the world price of cheddar cheese or skim milk powder in Oceania, as determined by the Secretary, for 2 consecutive months; andCommentsClose CommentsPermalink





(B) the dairy producer margin is equal to or less than $4 for the same 2 consecutive months.CommentsClose CommentsPermalink





(b) Implementation by Handlers- Handlers shall cease reducing payments to participating dairy producers under the stabilization program upon receiving notice of the suspension of the stabilization program from the Secretary.CommentsClose CommentsPermalink

SEC. 1437. AUDIT REQUIREMENTS.

(a) Audits of Producer and Handler Compliance-CommentsClose CommentsPermalink





(1) AUDITS AUTHORIZED- If determined by the Secretary to be necessary to ensure compliance by participating dairy producers and handlers with the stabilization program, the Secretary may conduct periodic audits of participating dairy producers and handlers.CommentsClose CommentsPermalink





(2) SAMPLE OF DAIRY PRODUCERS- Any audit conducted under this subsection shall include, at a minimum, investigation of a statistically valid and random sample of participating dairy producers.CommentsClose CommentsPermalink





(b) Audit by Inspector General-CommentsClose CommentsPermalink





(1) AUDIT REQUIRED- At the end of the second year of operation of the stabilization program, the Inspector General of the Department of Agriculture shall audit and evaluate the effectiveness of the stabilization program. In conducting the audit and evaluation, the Inspector General shall include the use of established dairy economic models to ascertain the effectiveness, operation, and administration of the program.CommentsClose CommentsPermalink





(2) SUBMISSION OF RESULTS- The Inspector General shall submit the results of the audit and evaluation conducted under paragraph (1) to the Secretary, who shall make such recommendations to Congress as the Secretary considers appropriate regarding the stabilization program.CommentsClose CommentsPermalink

SEC. 1438. BOARD OF DIRECTORS.

(a) Establishment; Purpose- The Secretary shall establish a board of directors for the stabilization program for the purpose of--CommentsClose CommentsPermalink





(1) administering the monies made available to the board of directors under section 1435; andCommentsClose CommentsPermalink





(2) determining the most effective use of such monies.CommentsClose CommentsPermalink





(b) Appointment of Directors-CommentsClose CommentsPermalink





(1) NUMBER AND QUALIFICATIONS- The Secretary shall appoint 15 members to serve on the board of directors, who shall be representative of the United States dairy producer community, taking into account geographical diversity, cooperative membership, and volumes of milk produced in various States and regions.CommentsClose CommentsPermalink





(2) REIMBURSEMENT OF EXPENSES- Monies made available to the board of directors under section 1435 may be used to reimburse a member of the board of directors for reasonable and appropriate costs incurred by the member to serve on the board of directors.CommentsClose CommentsPermalink





(c) Decisionmaking- The board of directors shall reach decisions by an affirmative vote of 2/3 of its members.CommentsClose CommentsPermalink





(d) Removal of Dairy Products and Expansion of Demand-CommentsClose CommentsPermalink





(1) SPENDING AUTHORITY- The board of directors shall have the authority to use monies made available to the board of directors under section 1435--CommentsClose CommentsPermalink





(A) to purchase dairy products through commercial sources for donation to food banks and other food programs that the Board determines appropriate, within three months of collecting the funds; andCommentsClose CommentsPermalink





(B) to expand consumption and build demand for dairy products.CommentsClose CommentsPermalink





(2) NO DUPLICATION OF EFFORT- The board of directors shall ensure that projects supported under paragraph (1) are compatible with, and do not duplicate, programs supported by the dairy research and promotion activities conducted under the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.).CommentsClose CommentsPermalink





(3) MANAGEMENT CONTRACT- The board of directors may enter into a contract with a managing entity to carry out this subsection.CommentsClose CommentsPermalink





(e) Accounting and Reporting Requirement-CommentsClose CommentsPermalink





(1) ACCOUNTING- The board of directors shall keep an accurate account of all monies made available to the board of directors under section 1435.CommentsClose CommentsPermalink





(2) REPORTING- Not later than December 31 of each year that the stabilization program is in effect, the board of directors shall provide to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that provides an accurate accounting of the monies received by the board of directors during that year and all expenditures made by the board of directors during that year.CommentsClose CommentsPermalink

Subpart C--Commodity Credit Corporation

SEC. 1451. USE OF COMMODITY CREDIT CORPORATION.

The Secretary shall use the funds, facilities, and the authorities of the Commodity Credit Corporation to carry out this part.CommentsClose CommentsPermalink

Subpart D--Duration

SEC. 1461. DURATION.

The Secretary shall conduct the margin protection program and the stabilization program during the period beginning on January 1, 2012, and ending on December 31, 2017.CommentsClose CommentsPermalink

PART II--FEDERAL MILK MARKETING ORDER REFORM

SEC. 1471. REQUIRED AMENDMENTS TO FEDERAL MILK MARKETING ORDERS.

(a) Amendments Required-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of Agriculture shall amend each Federal milk marketing order issued under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937 (in this part referred to as a ‘milk marketing order’), as required by this section.CommentsClose CommentsPermalink





(2) RELATION TO OTHER LAWS- Except as provided in section 1472, the Secretary shall execute the amendments required by this section without regard to any provision of section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, as in effect on the day before the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) Use of End-Product Price Formulas- The Secretary shall eliminate the use of end-product price formulas for setting prices for Class III milk, and instead use a competitive price for setting prices for Class III milk.CommentsClose CommentsPermalink





(c) Administrative Authority- In addition to and notwithstanding the authority provided under section 8d of the Agricultural Adjustment Act (7 U.S.C. 608d), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, the Secretary may--CommentsClose CommentsPermalink





(1) require handlers to report, maintain, and make available all information and records as the Secretary considers necessary for the administration of any milk marketing order; andCommentsClose CommentsPermalink





(2) adopt only such conforming amendments to milk marketing orders as the Secretary determines to be necessary to implement the amendments required by this section.CommentsClose CommentsPermalink

SEC. 1472. AMENDMENT PROCESS.

(a) In General- The amendments to milk marketing orders required to be made by section 1471 shall be subject to the provisions of sections 8c(17) and 8c(19) of the Agricultural Adjustment Act (7 U.S.C. 608c(17) and (19)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, except as follows:CommentsClose CommentsPermalink





(1) NOTICE OF FINAL DECISION ON PROPOSED AMENDMENTS- Not later than 270 days after the date of the enactment of this Act, the Secretary of Agriculture shall publish in the Federal Register notice of a final decision on the proposed amendments to be made to milk marketing orders in order to comply with the requirements of section 1471.CommentsClose CommentsPermalink





(2) PRODUCER REFERENDUM-CommentsClose CommentsPermalink





(A) REFERENDUM REQUIRED- As soon as practicable after publication of the final decision on the proposed amendments under paragraph (1), the Secretary shall conduct a producer referendum regarding the final decision on the proposed amendments.CommentsClose CommentsPermalink





(B) TERMS OF REFERENDUM; EXCEPTIONS- The producer referendum shall be conducted in the manner provided by section 8c(19) of the Agricultural Adjustment Act (7 U.S.C. 608c(19)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, except that--CommentsClose CommentsPermalink





(i) the referendum shall be a single referendum upon which approval or failure of the proposed amendments to all milk marketing orders shall depend; andCommentsClose CommentsPermalink





(ii) the proposed amendments shall require approval by 1/2 of participating producers or by volume of production (rather than 2/3 ) in order for the referendum to pass and the proposed amendments to take effect.CommentsClose CommentsPermalink





(C) EFFECT OF FAILURE- If the referendum fails, the milk marketing orders shall remain in force as in effect before the proposed amendments were published.CommentsClose CommentsPermalink





(b) Effect of Court Order- In the event that the Secretary is enjoined or otherwise restrained by a court order from executing the amendments to milk marketing orders required by section 1471, the length of time for which that injunction or other restraining order is effective shall be added to any time limitation in effect under paragraph (1) or (2) of subsection (a), thereby extending those time limitations by a period of time equal to the period of time for which the injunction or other restraining order is in effect.CommentsClose CommentsPermalink





(c) Relation to Other Amendment Authority- Nothing in this part affects the authority of the Secretary to subsequently amend milk marketing orders, or the ability of producers or other persons to seek such amendments, in accordance with the rulemaking process provided by section 8c(17) of the Agricultural Adjustment Act (7 U.S.C. 608c(17)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.CommentsClose CommentsPermalink

SEC. 1473. DEVELOPMENT OF EFFECTIVE BALANCING PROGRAMS FOR MILK MARKETS.

(a) Advanced Notice of Proposed Rulemaking- Not later than 90 days after the enactment of this Act, the Secretary of Agriculture shall publish in the Federal Register an Advanced Notice of Proposed Rulemaking seeking public comment on, and proposals recommending, effective programs that address the issues of the costs of balancing milk markets, including the use of inter- and intra-marketing transportation credits. The Secretary shall solicit comments and proposals that--CommentsClose CommentsPermalink





(1) address the market’s balancing needs;CommentsClose CommentsPermalink





(2) target support to those producers and handlers who provide balancing services; andCommentsClose CommentsPermalink





(3) provide compensation that is in line with the costs of providing the services and with the benefits to the market of the services.CommentsClose CommentsPermalink





(b) Timeliness of Rulemaking- Not later than one year after the date of the enactment of this Act, the Secretary shall--CommentsClose CommentsPermalink





(1) initiate formal rulemaking (by publishing in the Federal Register a hearing notice) in response to the public comments received under subsection (a); orCommentsClose CommentsPermalink





(2) publish notice of the reasons that such a rulemaking is not to be initiated.CommentsClose CommentsPermalink

SEC. 1474. STUDY ON ELIMINATION OF MILK MARKETING ORDERS.

(a) In General- The Secretary shall study the effects on the marketplace associated with the elimination of the Federal milk marketing orders.CommentsClose CommentsPermalink





(b) Requirements- The study under this section shall, at a minimum, address--CommentsClose CommentsPermalink





(1) the regional differences in milk prices that would result from the elimination of the Federal milk marketing orders, compared to the regional differences derived from the order system in effect on the day before the date of enactment of this Act;CommentsClose CommentsPermalink





(2) shifts in milk production patterns and product use that would derive from the elimination;CommentsClose CommentsPermalink





(3) an examination of changes in the flow of milk and what would be required for milk to move from surplus to deficit regions in the absence of the orders;CommentsClose CommentsPermalink





(4) the potential for any premiums to be paid for milk in fluid use form and what, if any, regional differences in those premiums might exist;CommentsClose CommentsPermalink





(5) the potential impact on export markets; andCommentsClose CommentsPermalink





(6) potential changes in market price volatility.CommentsClose CommentsPermalink





(c) Report- Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the results of the study conducted under this section, including any recommendations.CommentsClose CommentsPermalink

PART III--REPEAL OF SUPERSEDED PROVISIONS

SEC. 1481. REPEAL OF DAIRY PRODUCT PRICE SUPPORT AND MILK INCOME LOSS CONTRACT PROGRAMS.

(a) Repeal of Dairy Product Price Support Program- Section 1501 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8771) is repealed.CommentsClose CommentsPermalink





(b) Repeal of Milk Income Loss Contract Program- Section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is repealed.CommentsClose CommentsPermalink

SEC. 1482. REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY FOR MILK.

(a) Repeal-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended--CommentsClose CommentsPermalink





(A) in subsection (a) (as amended by section 1302(c)(3)), by striking ‘honey, and milk,’ and inserting ‘and honey’; andCommentsClose CommentsPermalink





(B) by striking subsections (c) and (d).CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- Section 256(j) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 906(j)) is amended--CommentsClose CommentsPermalink





(A) by striking paragraph (5); andCommentsClose CommentsPermalink





(B) redesignating paragraph (6) as paragraph (5).CommentsClose CommentsPermalink





(b) Exclusion From Price Support for Other Nonbasic Agricultural Commodities- Section 301 of the Agricultural Act of 1949 (7 U.S.C. 1447) is amended by inserting ‘(other than milk)’ after ‘agricultural commodity’.CommentsClose CommentsPermalink

SEC. 1483. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM.

(a) In General- Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a-14) is repealed.CommentsClose CommentsPermalink





(b) Conforming Amendments- Section 902(2) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201(2)) is amended--CommentsClose CommentsPermalink





(1) by striking subparagraph (D); andCommentsClose CommentsPermalink





(2) by redesignating subparagraphs (E) and (F) as subparagraphs ((D) and (E).CommentsClose CommentsPermalink

SEC. 1484. EFFECTIVE DATE.

The amendments made by this part shall take effect on January 1, 2012.CommentsClose CommentsPermalink

TITLE II--CONSERVATIONCommentsClose CommentsPermalink

Subtitle A--Conservation Reserve ProgramCommentsClose CommentsPermalink

SEC. 2001. CONSERVATION RESERVE PROGRAM.

(a) In General- Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘(a) In General- Through the 2012 fiscal year’ and inserting the following:CommentsClose CommentsPermalink





‘(a) Authority-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Through the 2017 fiscal year’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(2) RELATIONSHIP TO EASEMENT BENEFITS PROGRAM-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall administer the conservation reserve program in conjunction with the easement benefits program under subchapter C in a manner that encourages landowners to enroll land in the easement benefits program to maximize the long-term benefits of fiscal outlay.CommentsClose CommentsPermalink





‘(B) TRANSFER- The Secretary shall make available to all owners and operators enrolled in the conservation reserve program the option to transfer the enrolled land into the easement benefits program under subchapter C.CommentsClose CommentsPermalink





‘(3) MINIMIZATION OF COSTS-CommentsClose CommentsPermalink





‘(A) NEW CONTRACTS- In entering into contracts under the conservation reserve program, the Secretary shall seek to minimize cost by allowing limited commercial use of land under contract, as authorized under section 1232(a)(3) and subparagraphs (A) through (D) of section 1232(a)(8).CommentsClose CommentsPermalink





‘(B) EXISTING CONTRACTS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Not later than 2 years after the date of enactment of the Rural Economic Farm and Ranch Sustainability and Hunger Act of 2011, the Secretary shall make available a revision of contracts in existence on the date of enactment of this subsection to allow limited commercial usage under the contracts of not less than 5,000,000 acres of land (such as for prescribed or routing grazing and managed harvesting), subject to conditions in section 1232.CommentsClose CommentsPermalink





‘(ii) USE OF SAVINGS- Any amounts saved through contract revisions described in clause (i) may, as determined the Secretary, be used--CommentsClose CommentsPermalink





‘(I) to expand the provision of technical assistance; andCommentsClose CommentsPermalink





‘(II) to provide incentives for owners or operators to shift land into the easement benefits program.’.CommentsClose CommentsPermalink





(b) Eligible Land-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended--CommentsClose CommentsPermalink





(A) in paragraph (4)--CommentsClose CommentsPermalink





(i) in subparagraph (B)--CommentsClose CommentsPermalink





(I) in clause (i), by striking ‘or’ at the end;CommentsClose CommentsPermalink





(II) in clause (ii), by adding ‘or’ at the end; andCommentsClose CommentsPermalink





(III) by adding at the end the following:CommentsClose CommentsPermalink





‘(iii) riparian buffer or filter strip planted to grass, shrubs, trees or other appropriate vegetation, as determined by the Secretary;’; andCommentsClose CommentsPermalink





(ii) in subparagraph (E), by striking ‘or’ at the end;CommentsClose CommentsPermalink





(B) in subparagraph (5)(B)(ii), by striking the period at the end and inserting a semicolon; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(6) subject to subsection (j), land--CommentsClose CommentsPermalink





‘(A) that is wetland (including a converted wetland described in section 1222(b)(1)(A)) that had a cropping history during at least 3 of the immediately preceding 10 crop years;CommentsClose CommentsPermalink





‘(B) on which a constructed wetland is to be developed that will receive flow from a row crop agriculture drainage system and is designed to provide nitrogen removal in addition to other wetland functions;CommentsClose CommentsPermalink





‘(C) that was devoted to commercial pond-raised aquaculture in any year during the period of calendar years 2002 through 2007; orCommentsClose CommentsPermalink





‘(D) that, after January 1, 1990, and before December 31, 2002, was--CommentsClose CommentsPermalink





‘(i) cropped during at least 3 of 10 crop years; andCommentsClose CommentsPermalink





‘(ii) subject to the natural overflow of a prairie wetland; orCommentsClose CommentsPermalink





‘(7) subject to subsection (j), buffer acreage that--CommentsClose CommentsPermalink





‘(A) with respect to land described in subparagraph (A), (B), or (C) of paragraph (6)--CommentsClose CommentsPermalink





‘(i) is contiguous to such land;CommentsClose CommentsPermalink





‘(ii) is used to protect such land; andCommentsClose CommentsPermalink





‘(iii) is of such width as the Secretary determines is necessary to protect such land, taking into consideration and accommodating the farming practices (including the straightening of boundaries to accommodate machinery) used with respect to the cropland that surrounds such land; andCommentsClose CommentsPermalink





‘(B) with respect to land described in subparagraph (D) of paragraph (6), enhances a wildlife benefit.’.CommentsClose CommentsPermalink





(2) LIMITATIONS AND DUTIES RELATING TO ENROLLED WETLAND AND BUFFER ACREAGE- Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(j) Limitations and Duties Relating to Enrolled Wetland and Buffer Acreage-CommentsClose CommentsPermalink





‘(1) ENROLLMENT LIMITATIONS-CommentsClose CommentsPermalink





‘(A) WETLAND AND RELATED LAND-CommentsClose CommentsPermalink





‘(i) WETLANDS AND CONSTRUCTED WETLANDS- The maximum size of any land described in subparagraph (A) or (B) of subsection (b)(6) that an owner or operator may enroll in the conservation reserve shall be 40 contiguous acres.CommentsClose CommentsPermalink





‘(ii) FLOODED FARMLAND- The maximum size of any land described in subparagraph (D) of subsection (b)(6) that an owner or operator may enroll in the conservation reserve shall be 20 contiguous acres.CommentsClose CommentsPermalink





‘(iii) COVERAGE- All acres described in clause (i) or (ii), including acres that are ineligible for payment, shall be covered by the conservation contract.CommentsClose CommentsPermalink





‘(B) BUFFER ACREAGE- The maximum size of any buffer acreage described in subsection (b)(7) that an owner or operator may enroll in the conservation reserve shall be determined by the Secretary, in consultation with the State Technical Committee.CommentsClose CommentsPermalink





‘(C) TRACTS- Except for land described in subsection (b)(6)(C) and buffer acreage relating to that land, the maximum size of any eligible acreage described in subsection (b)(6) in a tract of an owner or operator enrolled in the conservation reserve under this section shall be 40 acres.CommentsClose CommentsPermalink





‘(2) DUTIES OF OWNERS AND OPERATORS- During the term of a contract entered into involving land described in paragraph (6) or (7) of subsection (b), an owner or operator shall agree to a prohibition of commercial use except for activities conducive to conservation of the enrolled land, as determined by the Secretary.’.CommentsClose CommentsPermalink





(c) Maximum Enrollment- Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by striking subsection (d) and inserting the following:CommentsClose CommentsPermalink





‘(d) Maximum Enrollment-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary may maintain in the conservation reserve at any 1 time, not more than--CommentsClose CommentsPermalink





‘(A) during fiscal year 2012, 30,000,000 acres;CommentsClose CommentsPermalink





‘(B) during fiscal year 2013, 26,000,000 acres; andCommentsClose CommentsPermalink





‘(C) during each of fiscal years 2014 through 2017, 24,000,000 acres.CommentsClose CommentsPermalink





‘(2) TRANSFER OF ENROLLMENT- The Secretary may transfer enrolled acre allowance from the conservation reserve program to the easement benefits program established under subchapter C.’.CommentsClose CommentsPermalink





(d) Conservation Priority Areas- Section 1231(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3831(f)(1)) is amended by striking ‘areas of the Chesapeake Bay Region, the Great Lakes Region, the Long Island Sound Region, and other’.CommentsClose CommentsPermalink