(a) Short title.—This Act may be cited as the “Agriculture and Nutrition Act of 2018”.

(b) Table of contents.—The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary of Agriculture.

In this Act, the term “Secretary” means the Secretary of Agriculture.

In this subtitle and subtitle B:

(1) ACTUAL CROP REVENUE.—The term “actual crop revenue”, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1117(b).

(2) AGRICULTURE RISK COVERAGE.—The term “agriculture risk coverage” means coverage provided under section 1117.

(3) AGRICULTURE RISK COVERAGE GUARANTEE.—The term “agriculture risk coverage guarantee”, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 1117(c).

(4) BASE ACRES.—The term “base acres” has the meaning given the term in section 1111(4)(A) of the Agricultural Act of 2014 (7 U.S.C. 9011(4)(A)), subject to any reallocation, adjustment, or reduction under section 1112.

(5) COVERED COMMODITY.—The term “covered commodity” means wheat, oats, and barley (including wheat, oats, and barley used for haying and grazing), corn, grain sorghum, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, seed cotton, and peanuts.

(6) EFFECTIVE PRICE.—The term “effective price”, with respect to a covered commodity for a crop year, means the price calculated by the Secretary under section 1116(b) to determine whether price loss coverage payments are required to be provided for that crop year.

(7) EFFECTIVE REFERENCE PRICE.—The term “effective reference price”, with respect to a covered commodity for a crop year, means the lesser of the following:

(A) An amount equal to 115 percent of the reference price for such covered commodity.

(B) An amount equal to the greater of—

(i) the reference price for such covered commodity; or

(ii) 85 percent of the average of the marketing year average price of the covered commodity for the most recent 5 crop years, excluding each of the crop years with the highest and lowest marketing year average price.

(8) EXTRA LONG STAPLE COTTON.—The term “extra long staple cotton” means cotton that—

(A) is produced from pure strain varieties of the barbadense species or any hybrid of the species, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and

(B) is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.

(9) MARKETING YEAR AVERAGE PRICE.—The term “marketing year average price” means the national average market price received by producers during the 12-month marketing year for a covered commodity, as determined by the Secretary.

(10) MEDIUM GRAIN RICE.—The term “medium grain rice” includes short grain rice and temperate japonica rice.

(11) OTHER OILSEED.—The term “other oilseed” means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary.

(12) PAYMENT ACRES.—The term “payment acres”, with respect to the provision of price loss coverage payments and agriculture risk coverage payments, means the number of acres determined for a farm under section 1114.

(13) PAYMENT YIELD.—The term “payment yield”, for a farm for a covered commodity—

(A) means the yield used to make payments pursuant to section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016); or

(B) means the yield established under section 1113.

(14) PRICE LOSS COVERAGE.—The term “price loss coverage” means coverage provided under section 1116.

(15) PRODUCER.—

(A) IN GENERAL.—The term “producer” means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced.

(B) HYBRID SEED.—In determining whether a grower of hybrid seed is a producer, the Secretary shall—

(i) not take into consideration the existence of a hybrid seed contract; and

(ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this title.

(16) PULSE CROP.—The term “pulse crop” means dry peas, lentils, small chickpeas, and large chickpeas.

(17) REFERENCE PRICE.—The term “reference price”, with respect to a covered commodity for a crop year, means the following:

(A) For wheat, $5.50 per bushel.

(B) For corn, $3.70 per bushel.

(C) For grain sorghum, $3.95 per bushel.

(D) For barley, $4.95 per bushel.

(E) For oats, $2.40 per bushel.

(F) For long grain rice, $14.00 per hundredweight.

(G) For medium grain rice, $14.00 per hundredweight.

(H) For soybeans, $8.40 per bushel.

(I) For other oilseeds, $20.15 per hundredweight.

(J) For peanuts, $535.00 per ton.

(K) For dry peas, $11.00 per hundredweight.

(L) For lentils, $19.97 per hundredweight.

(M) For small chickpeas, $19.04 per hundredweight.

(N) For large chickpeas, $21.54 per hundredweight.

(O) For seed cotton, $0.367 per pound.

(18) SECRETARY.—The term “Secretary” means the Secretary of Agriculture.

(19) SEED COTTON.—The term “seed cotton” means unginned upland cotton that includes both lint and seed.

(20) STATE.—The term “State” means—

(A) a State;

(B) the District of Columbia;

(C) the Commonwealth of Puerto Rico; and

(D) any other territory or possession of the United States.

(21) TEMPERATE JAPONICA RICE.—The term “temperate japonica rice” means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions, in the Western United States, as determined by the Secretary, for the purpose of—

(A) the establishment of a reference price (as required under section 1116(g)) and an effective price pursuant to section 1116; and

(B) the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to section 1117.

(22) TRANSITIONAL YIELD.—The term “transitional yield” has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)).

(23) UNITED STATES.—The term “United States”, when used in a geographical sense, means all of the States.

(24) UNITED STATES PREMIUM FACTOR.—The term “United States Premium Factor” means the percentage by which the difference in the United States loan schedule premiums for Strict Middling (SM) 1¹⁄8 -inch upland cotton and for Middling (M) 1³⁄32 -inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.

(a) Adjustment of Base Acres.—

(1) IN GENERAL.—The Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm whenever any of the following circumstances occur:

(A) A conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm expires or is voluntarily terminated.

(B) Cropland is released from coverage under a conservation reserve contract by the Secretary.

(C) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under section 1101(a)(1)(D) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(a)(1)(D)).

(2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT RULES.—For the crop year in which a base acres adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive price loss coverage or agriculture risk coverage with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.

(b) Prevention of Excess Base Acres.—

(1) REQUIRED REDUCTION.—If the sum of the base acres for a farm and the acreage described in paragraph (2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered commodities for the farm so that the sum of the base acres and the acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.

(2) OTHER ACREAGE.—For purposes of paragraph (1), the Secretary shall include the following:

(A) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program (or successor programs) under title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.).

(B) Any other acreage on the farm enrolled in a Federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage.

(C) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under subsection (a)(1)(C).

(3) SELECTION OF ACRES.—The Secretary shall give the owner of the farm the opportunity to select the base acres for a covered commodity for the farm against which the reduction required by paragraph (1) will be made.

(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE.—In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.

(c) Reduction in Base Acres.—

(1) REDUCTION AT OPTION OF OWNER.—

(A) IN GENERAL.—The owner of a farm may reduce, at any time, the base acres for any covered commodity for the farm.

(B) EFFECT OF REDUCTION.—A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary.

(2) REQUIRED ACTION BY SECRETARY.—

(A) IN GENERAL.—The Secretary shall proportionately reduce base acres on a farm for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size of the tracts and the density of the subdivision is such that the land is unlikely to return to the previous agricultural use, unless the producers on the farm demonstrate that the land—

(i) remains devoted to commercial agricultural production; or

(ii) is likely to be returned to the previous agricultural use.

(B) REQUIREMENT.—The Secretary shall establish procedures to identify land described in subparagraph (A).

(3) TREATMENT OF UNPLANTED BASE.—In the case of a farm on which no covered commodities (including seed cotton) were planted or prevented from being planted during the period beginning on January 1, 2009, and ending on December 31, 2017, the Secretary shall allocate all base acres on the farm to unassigned crop base for which no payment shall be made under section 1116 or 1117.

(4) PROHIBITION ON RECONSTITUTION OF FARM.—The Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change the treatment of base acres under this section.

(a) Treatment of designated oilseeds.—

(1) IN GENERAL.—For the purpose of making price loss coverage payments under section 1116, the Secretary shall provide for the establishment of a yield for each farm for any designated oilseed for which a payment yield was not established under section 1113 of the Agricultural Act of 2014 (7 U.S.C. 9013) in accordance with this section.

(2) PAYMENT YIELDS FOR DESIGNATED OILSEEDS.—In the case of designated oilseeds, the payment yield shall be equal to 90 percent of the average of the yield per planted acre for the most recent five crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero.

(3) APPLICATION.—This subsection shall apply to oilseeds designated after the date of the enactment of this Act.

(b) Effect of Lack of Payment Yield.—

(1) ESTABLISHMENT BY SECRETARY.—In the case of a covered commodity on a farm for which base acres have been established, if no payment yield is otherwise established for the covered commodity on the farm, the Secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph (2).

(2) USE OF SIMILARLY SITUATED FARMS.—To establish an appropriate payment yield for a covered commodity on a farm as required by paragraph (1), the Secretary shall take into consideration the farm program payment yields applicable to that covered commodity for similarly situated farms. The use of such data in an appeal, by the Secretary or by the producer, shall not be subject to any other provision of law.

(c) Single opportunity to update yields in counties affected by drought.—

(1) ELECTION TO UPDATE.—In the case of a farm that is physically located in a county in which any area of the county was rated by the U.S. Drought Monitor as having a D4 (exceptional drought) intensity for 20 or more consecutive weeks during the period beginning January 1, 2008, and ending December 31, 2012, at the sole discretion of the owner of such farm, the owner of a farm shall have a 1-time opportunity to update, on a covered-commodity-by-covered-commodity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made.

(2) METHOD OF UPDATING YIELDS FOR COVERED COMMODITIES.—If the owner of a farm elects to update yields under paragraph (1), the payment yield for covered commodities on the farm, for the purpose of calculating price loss coverage payments only, shall be equal to 90 percent of the average of the yield per planted acre for the crop of covered commodities on the farm for the 2013 through 2017 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero.

(3) USE OF COUNTY AVERAGE YIELD.—For the purposes of determining the average yield under paragraph (2), if the yield per planted acre for a crop of a covered commodity for a farm for any of the crop years specified in paragraph (2) was less than 75 percent of the average of county yields for those same years for that commodity, the Secretary shall assign a yield for that crop year equal to 75 percent of the average of the 2013 though 2017 county yield for the covered commodity.

(4) UPLAND COTTON CONVERSION.—In the case of seed cotton, for purposes of determining the average of the yield per planted acre under paragraph (2), the average yield for seed cotton per planted acre shall be equal to 2.4 times the average yield for upland cotton per planted acre.

(5) TIME FOR ELECTION.—An election under this subsection shall be made at a time and manner so as to be in effect beginning with the 2019 crop year, as determined by the Secretary.

(a) Determination of Payment Acres.—Subject to subsection (d), for the purpose of price loss coverage and agriculture risk coverage, the payment acres for each covered commodity on a farm shall be equal to 85 percent of the base acres for the covered commodity on the farm.

(b) Effect of Minimal Payment Acres.—

(1) PROHIBITION ON PAYMENTS.—Notwithstanding any other provision of this title, a producer on a farm may not receive price loss coverage payments or agriculture risk coverage payments if the sum of the base acres on the farm is 10 acres or less, as determined by the Secretary, unless the sum of the base acres on the farm, when combined with the base acres of other farms in which the producer has an interest, is more than 10 acres.

(2) EXCEPTIONS.—Paragraph (1) does not apply to a producer that is—

(A) a socially disadvantaged farmer or rancher (as defined in section 355(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2003(e))); or

(B) a limited resource farmer or rancher, as defined by the Secretary.

(c) Effect of Planting Fruits and Vegetables.—

(1) REDUCTION REQUIRED.—In the manner provided in this subsection, payment acres on a farm shall be reduced in any crop year in which fruits, vegetables (other than mung beans and pulse crops), or wild rice have been planted on base acres on a farm.

(2) PRICE LOSS COVERAGE AND AGRICULTURAL RISK COVERAGE.—In the case of price loss coverage payments and agricultural risk coverage payments, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 15 percent of base acres.

(3) REDUCTION EXCEPTIONS.—No reduction to payment acres shall be made under this subsection if—

(A) cover crops or crops referred to in paragraph (1) are grown solely for conservation purposes and not harvested for use or sale, as determined by the Secretary; or

(B) in any region in which there is a history of double-cropping covered commodities with crops referred to in paragraph (1) and such crops were so double-cropped on the base acres, as determined by the Secretary.

(4) EFFECT OF REDUCTION.—For each crop year for which fruits, vegetables (other than mung beans and pulse crops), or wild rice are planted to base acres on a farm for which a reduction in payment acres is made under this subsection, the Secretary shall consider such base acres to be planted, or prevented from planting, to a covered commodity for purposes of any adjustment or reduction of base acres for the farm under section 1112.

(d) Unassigned crop base.—The Secretary shall maintain information on base acres allocated as unassigned crop base pursuant to—

(1) section 1112(c)(3); or

(2) section 1112(a) of the Agricultural Act of 2014 (7 U.S.C. 9012(a)).

(a) Election required.—For the 2019 through 2023 crop years, all of the producers on a farm shall make a 1-time, irrevocable election to obtain on a covered-commodity-by-covered-commodity basis—

(1) price loss coverage under section 1116; or

(2) agriculture risk coverage under section 1117.

(b) Effect of failure to make unanimous election.—If all the producers on a farm fail to make a unanimous election under subsection (a) for the 2019 crop year—

(1) the Secretary shall not make any payments with respect to the farm for the 2019 crop year under section 1116 or 1117; and

(2) the producers on the farm shall be deemed to have elected price loss coverage under section 1116 for all covered commodities on the farm for the 2020 through 2023 crop years.

(c) Prohibition on Reconstitution.—The Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change an election made under this section.

(a) Price Loss Coverage Payments.—If all of the producers on a farm make the election under subsection (a) of section 1115 to obtain price loss coverage or, subject to subsection (b)(1) of such section, are deemed to have made such election under subsection (b)(2) of such section, the Secretary shall make price loss coverage payments to producers on the farm on a covered-commodity-by-covered-commodity basis if the Secretary determines that, for any of the 2019 through 2023 crop years—

(1) the effective price for the covered commodity for the crop year; is less than

(2) the effective reference price for the covered commodity for the crop year.

(b) Effective Price.—The effective price for a covered commodity for a crop year shall be the higher of—

(1) the marketing year average price; or

(2) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.

(c) Payment Rate.—The payment rate shall be equal to the difference between—

(1) the effective reference price for the covered commodity; and

(2) the effective price determined under subsection (b) for the covered commodity.

(d) Payment Amount.—If price loss coverage payments are required to be provided under this section for any of the 2019 through 2023 crop years for a covered commodity, the amount of the price loss coverage payment to be paid to the producers on a farm for the crop year shall be equal to the product obtained by multiplying—

(1) the payment rate for the covered commodity under subsection (c);

(2) the payment yield for the covered commodity; and

(3) the payment acres for the covered commodity determined under section 1114.

(e) Time for Payments.—If the Secretary determines under this section that price loss coverage payments are required to be provided for the covered commodity, the payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

(f) Effective price for Barley.—In determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price.

(g) Reference Price for Temperate Japonica Rice.—In order to reflect price premiums, the Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to the amount established under subparagraph (F) of section 1111(17), as adjusted by paragraph (7) of such section, multiplied by the ratio obtained by dividing—

(1) the simple average of the marketing year average price of medium grain rice from the 2012 through 2016 crop years; by

(2) the simple average of the marketing year average price of all rice from the 2012 through 2016 crop years.

(a) Agriculture Risk Coverage Payments.—If all of the producers on a farm make the election under section 1115(a) to obtain agriculture risk coverage, the Secretary shall make agriculture risk coverage payments to producers on the farm if the Secretary determines that, for any of the 2019 through 2023 crop years—

(1) the actual crop revenue determined under subsection (b) for the crop year; is less than

(2) the agriculture risk coverage guarantee determined under subsection (c) for the crop year.

(b) Actual crop revenue.—The amount of the actual crop revenue for a county for a crop year of a covered commodity shall be equal to the product obtained by multiplying—

(1) the actual average county yield per planted acre for the covered commodity, as determined by the Secretary; and

(2) the higher of—

(A) the marketing year average price; or

(B) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subtitle B.

(c) Agriculture Risk Coverage Guarantee.—

(1) IN GENERAL.—The agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 86 percent of the benchmark revenue.

(2) BENCHMARK REVENUE.—The benchmark revenue shall be equal to the product obtained by multiplying—

(A) subject to paragraph (3), the average historical county yield as determined by the Secretary for the most recent 5 crop years, excluding each of the crop years with the highest and lowest yields; and

(B) subject to paragraph (4), the marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.

(3) YIELD CONDITIONS.—If the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of the 5 most recent crop years, as determined by the Secretary, is less than 70 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) shall be 70 percent of the transitional yield.

(4) REFERENCE PRICE.—If the marketing year average price for any of the 5 most recent crop years is lower than the reference price for the covered commodity, the Secretary shall use the reference price for any of those years for the amounts in paragraph (2)(B).

(d) Payment Rate.—The payment rate for a covered commodity in a county shall be equal to the lesser of—

(1) the amount that—

(A) the agriculture risk coverage guarantee for the crop year applicable under subsection (c); exceeds

(B) the actual crop revenue for the crop year applicable under subsection (b); or

(2) 10 percent of the benchmark revenue for the crop year applicable under subsection (c).

(e) Payment Amount.—If agriculture risk coverage payments are required to be paid for any of the 2019 through 2023 crop years, the amount of the agriculture risk coverage payment for the crop year shall be determined by multiplying—

(1) the payment rate for the covered commodity determined under subsection (d); and

(2) the payment acres for the covered commodity determined under section 1114.

(f) Time for Payments.—If the Secretary determines that agriculture risk coverage payments are required to be provided for the covered commodity, payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

(g) Additional Duties of the Secretary.—In providing agriculture risk coverage, the Secretary shall—

(1) to the maximum extent practicable, use all available information and analysis, including data mining, to check for anomalies in the determination of agriculture risk coverage payments;

(2) calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;

(3) assign an actual or benchmark county yield for each planted acre for the crop year for the covered commodity—

(A) for a county for which county data collected by the Risk Management Agency is sufficient for the Secretary to offer a county-wide insurance product using the actual average county yield determined by the Risk Management Agency; or

(B) for a county not described in subparagraph (A) using—

(i) other sources of yield information, as determined by the Secretary; or

(ii) the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary; and

(4) make payments, as applicable, to producers using the payment rate of the county of the physical location of the base acres of a farm.

(a) Compliance With Certain Requirements.—

(1) REQUIREMENTS.—Before the producers on a farm may receive payments under this subtitle with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—

(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);

(B) to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);

(C) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary; and

(D) to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary.

(2) COMPLIANCE.—The Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1).

(3) MODIFICATION.—At the request of the transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives of this subsection, as determined by the Secretary.

(b) Transfer or Change of Interest in Farm.—

(1) TERMINATION.—

(A) IN GENERAL.—Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which payments under this subtitle are provided shall result in the termination of the payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a).

(B) EFFECTIVE DATE.—The termination shall take effect on the date determined by the Secretary.

(2) EXCEPTION.—If a producer entitled to a payment under this subtitle dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment in accordance with rules issued by the Secretary.

(c) Acreage Reports.—As a condition on the receipt of any benefits under this subtitle or subtitle B, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.

(d) Effect of Inaccurate Reports.—No penalty with respect to benefits under this subtitle or subtitle B shall be assessed against a producer on a farm for an inaccurate acreage report unless the Secretary determines that the producer on the farm knowingly and willfully falsified the acreage report.

(e) Tenants and Sharecroppers.—In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

(f) Sharing of Payments.—The Secretary shall provide for the sharing of payments made under this subtitle among the producers on a farm on a fair and equitable basis.

(a) Definition of loan commodity.—In this subtitle, the term “loan commodity” means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.

(b) Nonrecourse loans available.—

(1) IN GENERAL.—For each of the 2019 through 2023 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.

(2) TERMS AND CONDITIONS.—The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 1202 for the loan commodity.

(c) Eligible production.—The producers on a farm shall be eligible for a marketing assistance loan under subsection (b) for any quantity of a loan commodity produced on the farm.

(d) Compliance with conservation and wetlands requirements.—As a condition of the receipt of a marketing assistance loan under subsection (b), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) during the term of the loan.

(e) Special rules for peanuts.—

(1) IN GENERAL.—This subsection shall apply only to producers of peanuts.

(2) OPTIONS FOR OBTAINING LOAN.—A marketing assistance loan under this section, and loan deficiency payments under section 1205, may be obtained at the option of the producers on a farm through—

(A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or

(B) the Farm Service Agency.

(3) STORAGE OF LOAN PEANUTS.—As a condition on the approval by the Secretary of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—

(A) to provide the storage on a nondiscriminatory basis; and

(B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.

(4) STORAGE, HANDLING, AND ASSOCIATED COSTS.—

(A) IN GENERAL.—To ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.

(B) REDEMPTION AND FORFEITURE.—The Secretary shall—

(i) require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and

(ii) pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section.

(5) MARKETING.—A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.

(6) REIMBURSABLE AGREEMENTS AND PAYMENT OF ADMINISTRATIVE EXPENSES.—The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities.

(a) In General.—For purposes of each of the 2019 through 2023 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following:

(1) In the case of wheat, $2.94 per bushel.

(2) In the case of corn, $1.95 per bushel.

(3) In the case of grain sorghum, $1.95 per bushel.

(4) In the case of barley, $1.95 per bushel.

(5) In the case of oats, $1.39 per bushel.

(6) (A) Subject to subparagraphs (B) and (C), in the case of base quality of upland cotton, the simple average of the adjusted prevailing world price for the 2 immediately preceding marketing years, as determined by the Secretary and announced October 1 preceding the next domestic planting.

(B) Except as provided in subparagraph (C), the loan rate determined under subparagraph (A) may not equal less than an amount equal to 98 percent of the loan rate for base quality of upland cotton for the preceding year.

(C) The loan rate determined under subparagraph (A) may not be equal to an amount—

(i) less than $0.45 per pound; or

(ii) more than $0.52 per pound.

(7) In the case of extra long staple cotton, $0.95 per pound.

(8) In the case of long grain rice, $6.50 per hundredweight.

(9) In the case of medium grain rice, $6.50 per hundredweight.

(10) In the case of soybeans, $5.00 per bushel.

(11) In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds:

(A) Sunflower seed.

(B) Rapeseed.

(C) Canola.

(D) Safflower.

(E) Flaxseed.

(F) Mustard seed.

(G) Crambe.

(H) Sesame seed.

(I) Other oilseeds designated by the Secretary.

(12) In the case of dry peas, $5.40 per hundredweight.

(13) In the case of lentils, $11.28 per hundredweight.

(14) In the case of small chickpeas, $7.43 per hundredweight.

(15) In the case of large chickpeas, $11.28 per hundredweight.

(16) In the case of graded wool, $1.15 per pound.

(17) In the case of nongraded wool, $0.40 per pound.

(18) In the case of mohair, $4.20 per pound.

(19) In the case of honey, $0.69 per pound.

(20) In the case of peanuts, $355 per ton.

(b) Single County Loan Rate for Other Oilseeds.—The Secretary shall establish a single loan rate in each county for each kind of other oilseeds described in subsection (a)(11).

(c) Rule for seed cotton.—

(1) IN GENERAL.—For purposes of sections 1116(b)(2) and 1117(b)(2)(B) only, seed cotton shall be deemed to have a loan rate equal to $0.25 per pound.

(2) RULE OF CONSTRUCTION.—Nothing in this subsection shall be construed to authorize nonrecourse marketing assistance loans under this subtitle for seed cotton.

(a) Term of Loan.—In the case of each loan commodity, a marketing assistance loan under section 1201 shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.

(b) Extensions Prohibited.—The Secretary may not extend the term of a marketing assistance loan for any loan commodity.

(a) General Rule.—The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, peanuts and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283));

(2) a rate (as determined by the Secretary) that—

(A) is calculated based on average market prices for the loan commodity during the preceding 30-day period; and

(B) will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or

(3) a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity that the Secretary determines will—

(A) minimize potential loan forfeitures;

(B) minimize the accumulation of stocks of the commodity by the Federal Government;

(C) minimize the cost incurred by the Federal Government in storing the commodity;

(D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and

(E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.

(b) Repayment Rates for Upland Cotton, Long Grain Rice, and Medium Grain Rice.—The Secretary shall permit producers to repay a marketing assistance loan under section 1201 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of—

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.

(c) Repayment Rates for Extra Long Staple Cotton.—Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

(d) Prevailing World Market Price.—For purposes of this section and section 1207, the Secretary shall prescribe by regulation—

(1) a formula to determine the prevailing world market price for each of upland cotton, long grain rice and medium grain rice; and

(2) a mechanism by which the Secretary shall announce periodically those prevailing world market prices.

(e) Adjustment of Prevailing World Market Price for Upland Cotton, Long Grain Rice, and Medium Grain Rice.—

(1) RICE.—The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States quality and location.

(2) COTTON.—The prevailing world market price for upland cotton determined under subsection (d)—

(A) shall be adjusted to United States quality and location, with the adjustment to include—

(i) a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 1³⁄32 -inch; and

(ii) the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and

(B) may be further adjusted, during the period beginning on the date of enactment of this Act and ending on July 31, 2024, if the Secretary determines the adjustment is necessary—

(i) to minimize potential loan forfeitures;

(ii) to minimize the accumulation of stocks of upland cotton by the Federal Government;

(iii) to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and

(iv) to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—

(I) there are insufficient current-crop price quotations; and

(II) the forward-crop price quotation is the lowest such quotation available.

(3) GUIDELINES FOR ADDITIONAL ADJUSTMENTS.—In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.

(f) Repayment Rates for Confectionery and Other Kinds of Sunflower Seeds.—The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

(2) the repayment rate established for oil sunflower seed.

(g) Payment of Cotton Storage Costs.—Effective for each of the 2019 through 2023 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 10 percent.

(h) Repayment Rate for Peanuts.—The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under section 1201 at a rate that is the lesser of—

(1) the loan rate established for peanuts under section 1202(a)(20), plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or

(2) a rate that the Secretary determines will—

(A) minimize potential loan forfeitures;

(B) minimize the accumulation of stocks of peanuts by the Federal Government;

(C) minimize the cost incurred by the Federal Government in storing peanuts; and

(D) allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.

(i) Authority To Temporarily Adjust Repayment Rates.—

(1) ADJUSTMENT AUTHORITY.—In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under section 1201 for a loan commodity.

(2) DURATION.—Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.

(a) Availability of Loan Deficiency Payments.—

(1) IN GENERAL.—Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.

(2) UNSHORN PELTS, HAY, AND SILAGE.—

(A) MARKETING ASSISTANCE LOANS.—Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 1201.

(B) LOAN DEFICIENCY PAYMENT.—Effective for each of the 2019 through 2023 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.

(b) Computation.—A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—

(1) the payment rate determined under subsection (c) for the commodity; by

(2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201.

(c) Payment Rate.—

(1) IN GENERAL.—In the case of a loan commodity, the payment rate shall be the amount by which—

(A) the loan rate established under section 1202 for the loan commodity; exceeds

(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.

(2) UNSHORN PELTS.—In the case of unshorn pelts, the payment rate shall be the amount by which—

(A) the loan rate established under section 1202 for ungraded wool; exceeds

(B) the rate at which a marketing assistance loan for ungraded wool may be repaid under section 1204.

(3) HAY AND SILAGE.—In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—

(A) the loan rate established under section 1202 for the loan commodity from which the hay or silage is derived; exceeds

(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.

(d) Exception for Extra Long Staple Cotton.—This section shall not apply with respect to extra long staple cotton.

(e) Effective Date for Payment Rate Determination.—The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.

(a) Eligible Producers.—

(1) IN GENERAL.—Effective for each of the 2019 through 2023 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.

(2) GRAZING OF TRITICALE ACREAGE.—Effective for each of the 2019 through 2023 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.

(b) Payment Amount.—

(1) IN GENERAL.—The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying—

(A) the loan deficiency payment rate determined under section 1205(c) in effect, as of the date of the agreement, for the county in which the farm is located; by

(B) the payment quantity determined by multiplying—

(i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and

(ii) (I) the payment yield in effect for the calculation of price loss coverage under section 1116 with respect to that loan commodity on the farm;

(II) in the case of a farm for which agriculture risk coverage is elected under section 1117, the payment yield that would otherwise be in effect with respect to that loan commodity on the farm in the absence of such election; or

(III) in the case of a farm for which no payment yield is otherwise established for that loan commodity on the farm, an appropriate yield established by the Secretary in a manner consistent with section 1113(b).

(2) GRAZING OF TRITICALE ACREAGE.—The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying—

(A) the loan deficiency payment rate determined under section 1205(c) in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by

(B) the payment quantity determined by multiplying—

(i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and

(ii) (I) the payment yield in effect for the calculation of price loss coverage under subtitle A with respect to wheat on the farm;

(II) in the case of a farm for which agriculture risk coverage is elected under section 1117, the payment yield that would otherwise be in effect for wheat on the farm in the absence of such election; or

(III) in the case of a farm for which no payment yield is otherwise established for wheat on the farm, an appropriate yield established by the Secretary in a manner consistent with section 1113(b).

(c) Time, Manner, and Availability of Payment.—

(1) TIME AND MANNER.—A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 1205.

(2) AVAILABILITY.—

(A) IN GENERAL.—The Secretary shall establish an availability period for the payments authorized by this section.

(B) CERTAIN COMMODITIES.—In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this subtitle.

(d) Prohibition on crop insurance indemnity or noninsured crop assistance.—A 2019 through 2023 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

(a) Special import quota.—

(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this subsection, the term “special import quota” means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(2) ESTABLISHMENT.—

(A) IN GENERAL.—The President shall carry out an import quota program beginning on August 1, 2019, as provided in this subsection.

(B) PROGRAM REQUIREMENTS.—Whenever the Secretary determines and announces that for any consecutive 4-week period, the Friday through Thursday average price quotation for the lowest priced United States growth, as quoted for Middling (M) 1³⁄32 -inch upland cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota.

(3) QUANTITY.—The quota shall be equal to the consumption during a 1-week period of cotton by domestic mills at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.

(4) APPLICATION.—The quota shall apply to upland cotton purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into the United States not later than 180 days after that date.

(5) OVERLAP.—A special quota period may be established that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b).

(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—

(A) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

(B) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

(C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

(D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(7) LIMITATION.—The quantity of cotton entered into the United States during any marketing year under the special import quota established under this subsection may not exceed the equivalent of 10 weeks’ consumption of upland cotton by domestic mills at the seasonally adjusted average rate of the 3 months immediately preceding the first special import quota established in any marketing year.

(b) Limited global import quota for upland cotton.—

(1) DEFINITIONS.—In this subsection:

(A) DEMAND.—The term “demand” means—

(i) the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary; and

(ii) the larger of—

(I) average exports of upland cotton during the preceding 6 marketing years; or

(II) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.

(B) LIMITED GLOBAL IMPORT QUOTA.—The term “limited global import quota” means a quantity of imports that is not subject to the over-quota tariff rate of a tariff-rate quota.

(C) SUPPLY.—The term “supply” means, using the latest official data of the Department of Agriculture—

(i) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;

(ii) production of the current crop; and

(iii) imports to the latest date available during the marketing year.

(2) PROGRAM.—The President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of the quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:

(A) QUANTITY.—The quantity of the quota shall be equal to 21 days of domestic mill consumption of upland cotton at the seasonally adjusted average rate of the most recent 3 months for which official data of the Department of Agriculture are available or, in the absence of sufficient data, as estimated by the Secretary.

(B) QUANTITY OF PRIOR QUOTA.—If a quota has been established under this subsection during the preceding 12 months, the quantity of the quota next established under this subsection shall be the smaller of 21 days of domestic mill consumption calculated under subparagraph (A) or the quantity required to increase the supply to 130 percent of the demand.

(C) PREFERENTIAL TARIFF TREATMENT.—The quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—

(i) section 213(d) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));

(ii) section 204 of the Andean Trade Preference Act (19 U.S.C. 3203);

(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 2463(d)); and

(iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(D) QUOTA ENTRY PERIOD.—When a quota is established under this subsection, cotton may be entered under the quota during the 90-day period beginning on the date the quota is established by the Secretary.

(3) NO OVERLAP.—Notwithstanding paragraph (2), a quota period may not be established that overlaps an existing quota period or a special quota period established under subsection (a).

(c) Economic adjustment assistance for textile mills.—

(1) IN GENERAL.—Subject to paragraph (2), the Secretary shall, on a monthly basis, make economic adjustment assistance available to domestic users of upland cotton in the form of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the upland cotton.

(2) VALUE OF ASSISTANCE.—The value of the assistance provided under paragraph (1) shall be 3.15 cents per pound.

(3) ALLOWABLE PURPOSES.—Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery.

(4) REVIEW OR AUDIT.—The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this subsection.

(5) IMPROPER USE OF ASSISTANCE.—If the Secretary determines, after a review or audit of the records of the domestic user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph (3), the domestic user shall be—

(A) liable for the repayment of the assistance to the Secretary, plus interest, as determined by the Secretary; and

(B) ineligible to receive assistance under this subsection for a period of 1 year following the determination of the Secretary.

(a) Competitiveness Program.—Notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act through July 31, 2024, the Secretary shall carry out a program—

(1) to maintain and expand the domestic use of extra long staple cotton produced in the United States;

(2) to increase exports of extra long staple cotton produced in the United States; and

(3) to ensure that extra long staple cotton produced in the United States remains competitive in world markets.

(b) Payments under program; trigger.—Under the program, the Secretary shall make payments available under this section whenever—

(1) for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and

(2) the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 113 percent of the loan rate for extra long staple cotton.

(c) Eligible Recipients.—The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.

(d) Payment Amount.—Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.

(a) High moisture feed grains.—

(1) DEFINITION OF HIGH MOISTURE STATE.—In this subsection, the term “high moisture state” means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 1201.

(2) RECOURSE LOANS AVAILABLE.—For each of the 2019 through 2023 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—

(A) normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;

(B) present—

(i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or

(ii) field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;

(C) certify that the producers on the farm were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and

(D) comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.

(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—

(A) the acreage of the corn or grain sorghum in a high moisture state harvested on the farm of the producer; by

(B) the lower of—

(i) the payment yield in effect for the calculation of price loss coverage under section 1116, or the payment yield deemed to be in effect or established under subclause (II) or (III) of section 1206(b)(1)(B)(ii), with respect to corn or grain sorghum on a field that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained; or

(ii) the actual yield of corn or grain sorghum on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained.

(b) Recourse loans available for seed cotton.—For each of the 2019 through 2023 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.

(c) Recourse loans available for contaminated commodities.—In the case of a loan commodity that is ineligible for 100 percent of the nonrecourse marketing loan rate in the county due to a determination that the commodity is contaminated yet still merchantable, for each of the 2019 through 2023 crops of such loan commodity, the Secretary shall make available recourse commodity loans, at the rate provided under section 1202, on any production.

(d) Repayment Rates.—Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).

(a) Adjustment authority.—Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors.

(b) Manner of adjustment.—The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitle C.

(c) Cost saving option.—In carrying out this title, the Secretary shall consider methods to enhance the support, loan, or assistance provided under this title in a manner that further minimizes the potential for forfeitures.

(d) Adjustment on county basis.—

(1) IN GENERAL.—The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.

(2) PROHIBITION.—Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.

(e) Adjustment in loan rate for cotton.—

(1) IN GENERAL.—The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.

(2) TYPES OF ADJUSTMENTS.—Loan rate adjustments under paragraph (1) may include—

(A) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;

(B) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and

(C) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).

(3) CONSULTATION WITH PRIVATE SECTOR.—

(A) PRIOR TO REVISION.—In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry.

(B) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.—The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations under this subsection.

(4) REVIEW OF ADJUSTMENTS.—The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further adjustments to the administration of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (2).

(f) Rice.—The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).

(g) Continuation of authority.—Section 166 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286) is amended by striking “and Subtitle B of title I of the Agricultural Act of 2014” each place it appears and inserting “subtitle B of title I of the Agricultural Act of 2014, and subtitle B of title I of the Agriculture and Nutrition Act of 2018”.

(a) Continuation of Current Program and Loan Rates.—

(1) SUGARCANE.—Section 156(a)(4) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)(4)) is amended by striking “2018” and inserting “2023”.

(2) SUGAR BEETS.—Section 156(b)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(b)(2)) is amended by striking “2018” and inserting “2023”.

(3) EFFECTIVE PERIOD.—Section 156(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by striking “2018” and inserting “2023”.

(b) Flexible Marketing Allotments for Sugar.—

(1) SUGAR ESTIMATES.—Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking “2018” and inserting “2023”.

(2) EFFECTIVE PERIOD.—Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking “2018” and inserting “2023”.

(a) Review of data used in calculation of average feed cost.—Not later than 60 days after the date of the enactment of this Act, the Secretary of Agriculture 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 evaluating the extent to which the average cost of feed used by a dairy operation to produce a hundredweight of milk calculated by the Secretary as required by section 1402(a) of the Agricultural Act of 2014 (7 U.S.C. 9052(a)) is representative of actual dairy feed costs.

(b) Corn silage report.—Not later than 1 year after the date of the enactment of this Act, the Secretary of Agriculture 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 detailing the costs incurred by dairy operations in the use of corn silage as feed, and the difference between the feed cost of corn silage and the feed cost of corn.

(c) Collection of alfalfa hay data.—Not later than 120 days after the date of the enactment of this Act, the Secretary of Agriculture, acting through the National Agricultural Statistics Service, shall revise monthly price survey reports to include prices for high-quality alfalfa hay in the top five milk producing States, as measured by volume of milk produced during the previous month.

(d) Registration of multiproducer dairy operations.—Section 1404(b) of the Agricultural Act of 2014 (7 U.S.C. 9054(b)) is amended—

(1) in paragraph (3), by striking “If” and inserting “Subject to paragraph (5), if”; and

(2) by adding at the end the following new paragraph:

“(5) CERTAIN MULTIPRODUCER DAIRY OPERATION EXCLUSIONS.—

“(A) EXCLUSION OF LOW-PERCENTAGE OWNERS.—To promote administrative efficiency in the dairy risk management program, a multiproducer dairy operation covered by paragraph (3) may elect, at the option of the multiproducer dairy operation, to exclude information from the registration process regarding any individual owner of the multiproducer dairy operation that—

“(i) holds less than a five percent ownership interest in the multiproducer dairy operation; or

“(ii) is entitled to less than five percent of the income, revenue, profit, gain, loss, expenditure, deduction, or credit of the multiproducer dairy operation for any given year.

“(B) EFFECT OF EXCLUSION ON DAIRY RISK MANAGEMENT PAYMENTS.—To the extent that an individual owner of a multiproducer dairy operation is excluded under subparagraph (A) from the registration of the multiproducer dairy operation, any dairy risk management payment made to the multiproducer dairy operation shall be reduced by an amount equal to the greater of the following:

“(i) The amount determined by multiplying the dairy risk management payment otherwise determined under section 1406 by the total percentage of ownership interests represented by the excluded owners.

“(ii) The amount determined by multiplying the dairy risk management payment otherwise determined under section 1406 by the total percentage of the income, revenue, profit, gain, loss, expenditure, deduction, or credit of the multiproducer dairy operation represented by the excluded owners.”.

(e) Relation to livestock gross margin for dairy program.—Section 1404(d) of the Agricultural Act of 2014 (7 U.S.C. 9054(d)) is amended—

(1) by striking “but not both” and inserting “but not on the same production”;

(2) by striking “or the” and inserting “and the”; and

(3) by striking “margin protection program” and inserting “dairy risk management program”.

(f) Production history of participating dairy operators.—

(1) CONTINUED USE OF PRIOR DAIRY OPERATION PRODUCTION HISTORY.—Section 1405(a)(1) of the Agricultural Act of 2014 (7 U.S.C. 9055(a)(1)) is amended by adding at the end the following new sentence: “The production history of a participating dairy operation shall continue to be based on annual milk marketings during the 2011, 2012, or 2013 calendar year notwithstanding the operation of the dairy risk management program through 2023.”.

(2) ADJUSTMENT.—Section 1405(a) of the Agricultural Act of 2014 (7 U.S.C. 9055(a)) is amended—

(A) in paragraph (2), by striking “In subsequent years” and inserting “In the subsequent calendar years ending before January 1, 2019”; and

(B) in paragraph (3), by inserting “, as applicable” after “paragraph (2)”.

(3) LIMITATION ON CHANGES TO BUSINESS STRUCTURE.—Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended by adding at the end the following new subsection:

“(d) Limitation on changes to business structure.—The Secretary may not make dairy risk management payments to a participating dairy operation if the Secretary determines that the participating dairy operation has reorganized the structure of such operation solely for the purpose of qualifying as a new operation under subsection (b).”.

(g) Dairy risk management payments.—

(1) ELECTION OF COVERAGE LEVEL THRESHOLD AND COVERAGE PERCENTAGE.—Section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056) is amended—

(A) in subsection (a), by striking “annually”; and

(B) by adding at the end the following new subsection:

“(d) Deadline for election; duration.—Not later than 90 days after the date of the enactment of this subsection, each participating dairy operation shall elect a coverage level threshold under subsection (a)(1) and a coverage percentage under subsection (a)(2) to be used to determine dairy risk management payments. This election shall remain in effect for the participating dairy operation for the duration of the dairy risk management program, as specified in section 1409.”.

(2) ADDITIONAL COVERAGE LEVEL THRESHOLDS FOR CERTAIN PRODUCERS.—Section 1406(a)(1) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)) is amended by inserting after “or $8.00” the following: “(and in the case of production subject to premiums under section 1407(b), also $8.50 or $9.00)”.

(3) ELECTION OF PRODUCTION HISTORY COVERAGE PERCENTAGE.—Section 1406(a)(2) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(2)) is amended by striking “beginning with 25 percent and not exceeding” and inserting “but not to exceed”.

(h) Premiums for participation in dairy risk management program.—

(1) PREMIUM PER HUNDREDWEIGHT FOR FIRST 5 MILLION POUNDS OF PRODUCTION.—Section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)) is amended—

(A) by striking paragraph (2) and inserting the following new paragraph:

“(2) PRODUCER PREMIUMS.—The following annual premiums apply:

(B) by striking paragraph (3).

(2) TECHNICAL CORRECTION.—Section 1407(d) of the Agricultural Act of 2014 (7 U.S.C. 9057(d)) is amended in the subsection heading by striking “Time for” and inserting “Method of”.

(i) Conforming amendments related to program name.—

(1) HEADING.—The heading of part I of subtitle D of title I of the Agricultural Act of 2014 (Public Law 113–79; 128 Stat. 688) is amended to read as follows:

(2) DEFINITIONS.—Section 1401 of the Agricultural Act of 2014 (7 U.S.C. 9051) is amended—

(A) by striking paragraphs (5) and (6) and inserting the following new paragraphs:

“(5) DAIRY RISK MANAGEMENT PROGRAM.—The terms ‘dairy risk management program’ and ‘program’ mean the dairy risk management program required by section 1403.

“(6) DAIRY RISK MANAGEMENT PAYMENT.—The term ‘dairy risk management payment’ means a payment made to a participating dairy operation under the program pursuant to section 1406.”; and

(B) in paragraphs (7) and (8), by striking “margin protection” both places it appears.

(3) CALCULATION OF ACTUAL DAIRY PRODUCTION MARGIN.—Section 1402(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9052(b)(1)) is amended by striking “margin protection” and inserting “dairy risk management”.

(4) PROGRAM OPERATION.—Section 1403 of the Agricultural Act of 2014 (7 U.S.C. 9053) is amended—

(A) in the section heading, by striking “ESTABLISHMENT OF MARGIN PROTECTION” and inserting “DAIRY RISK MANAGEMENT”;

(B) by striking “Not later than September 1, 2014, the Secretary shall establish and administer a margin protection program” and inserting “The Secretary shall continue to administer a dairy risk management program”; and

(C) by striking “margin protection payment” both places it appears and inserting “dairy risk management payment”.

(5) PARTICIPATION.—Section 1404 of the Agricultural Act of 2014 (7 U.S.C. 9054) is amended—

(A) in the section heading, by striking “MARGIN PROTECTION”;

(B) in subsection (a), by striking “margin protection program to receive margin protection payments” and inserting “dairy risk management program to receive dairy risk management payments”; and

(C) in subsections (b) and (c), by striking “margin protection” each place it appears.

(6) PRODUCTION HISTORY.—Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended—

(A) in subsection (a)(1)—

(i) by striking “margin protection program” the first place it appears and inserting “dairy risk management program”; and

(ii) by striking “margin protection” the second place it appears; and

(B) in subsection (c), by striking “margin protection”.

(7) PAYMENTS.—Section 1406 of the Agricultural Act of 2014 (7 U.S.C. 9056) is amended—

(A) in the section heading, by striking “MARGIN PROTECTION” and inserting “DAIRY RISK MANAGEMENT”;

(B) by striking “margin protection” each place it appears and inserting “dairy risk management”; and

(C) in the heading of subsection (c), by striking “Margin Protection”.

(8) PREMIUMS.—Section 1407 of the Agricultural Act of 2014 (7 U.S.C. 9057) is amended—

(A) in the section heading, by striking “MARGIN PROTECTION” and inserting “DAIRY RISK MANAGEMENT”;

(B) in subsection (a), by striking “margin protection program” and inserting “dairy risk management program”; and

(C) in subsection (e), by striking “margin protection” both places it appears.

(9) PENALTIES.—Section 1408 of the Agricultural Act of 2014 (7 U.S.C. 9058) is amended by striking “margin protection” both places it appears and inserting “dairy risk management”.

(10) ADMINISTRATION AND ENFORCEMENT.—Section 1410 of the Agricultural Act of 2014 (7 U.S.C. 9060) is amended by striking “margin protection” each place it appears and inserting “dairy risk management”.

(j) Effective date.—The amendments made by this section shall take effect 60 days after the date of the enactment of this Act.

(k) Duration.—Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended—

(1) by striking “margin protection” and inserting “dairy risk management”; and

(2) by striking “2018” and inserting “2023”.

(a) Class I skim milk price.—Section 8c(5)(A) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking “Throughout the 2-year period” and all that follows through “such handlers.” and inserting the following new sentence: “Throughout the 2-year period beginning on the effective date of this sentence (and subsequent to such 2-year period unless modified by amendment to the order involved), for purposes of determining prices for milk of the highest use classification, the Class I skim milk price per hundredweight specified in section 1000.50(b) of title 7, Code of Federal Regulations (or successor regulation), shall be the sum of the adjusted Class I differential specified in section 1000.52 of such title 7, plus the adjustment to Class I prices specified in sections 1005.51(b), 1006.51(b), and 1007.51(b) of such title 7 (or successor regulation), plus the simple average of the advanced pricing factors computed in sections 1000.50(q)(1) and 1000.50(q)(2) of such title 7 (or successor regulation), plus $0.74.”.

(b) Effective date and implementation.—

(1) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on the first day of the first month beginning more than 120 days after the date of the enactment of this Act.

(2) IMPLEMENTATION.—Implementation of the amendment made by subsection (a) is not subject to any of the following:

(A) The notice and comment provisions of section 553 of title 5, United States Code.

(B) The notice and hearing requirements of paragraphs (3) and (4) of section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937.

(C) The order amendment requirements of section 8c(17) of such Act (7 U.S.C. 608c(17)).

(D) A referendum under section 8c(19) of such Act (7 U.S.C. 608c(19)).

Section 1502(e) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8772(e)) is amended—

(1) in paragraph (1), by striking “2018” and inserting “2023”; and

(2) in paragraph (2), by striking “2021” and inserting “2026”.

Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by striking “2018” and inserting “2023”.

Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking “2018” and inserting “2023”.

Section 1431 of the Agricultural Act of 2014 (7 U.S.C. 9071) is repealed.

(a) Covered livestock losses for livestock indemnity payments.—Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended—

(1) in paragraph (1)—

(A) by striking “or” at the end of subparagraph (A);

(B) by striking the period at the end of subparagraph (B) and inserting “; or”; and

(C) by adding at the end the following new subparagraph:

“(C) disease that, as determined by the Secretary—

“(i) is caused or transmitted by a vector; and

“(ii) is not susceptible to control by vaccination or acceptable management practices.”; and

(2) in paragraph (4), by striking “A payment” and inserting “Payment reductions.—A payment”.

(b) Payment limitations and exclusion of gross income limitation.—Section 1501(f) of the Agricultural Act of 2014 (7 U.S.C. 9081(f)) is amended—

(1) in paragraph (2)—

(A) by striking “this section (excluding payments received under subsections (b) and (e))” and inserting “subsection (c)”; and

(B) by striking “joint venture or general partnership” and inserting “qualified pass through entity (as such term is defined in paragraph (5) of section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)))”; and

(2) by adding at the end the following new paragraph:

“(4) EXCLUSION OF GROSS INCOME LIMITATION.—For purposes of this section only, subsection (b) of section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) shall not apply to a person or legal entity if 75 percent or greater of the average adjusted gross income (as such term is defined in subsection (a) of such section) of such person or legal entity derives from farming, ranching, or silviculture activities.”.

(c) Application of amendments.—Section 1501 of the Agricultural Act of 2014 (7 U.S.C. 9081), as amended by this section, shall apply with respect to losses described in such section 1501 incurred on or after January 1, 2017.

(a) Use of Commodity Credit Corporation.—The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this title.

(b) Determinations by Secretary.—A determination made by the Secretary under this title shall be final and conclusive.

(c) Regulations.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, not later than 90 days after the date of enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by this title.

(2) PROCEDURE.—The promulgation of the regulations and administration of this title and the amendments made by this title shall be made without regard to—

(A) the notice and comment provisions of section 553 of title 5, United States Code; and

(B) chapter 35 of title 44, United States Code (commonly known as the “Paperwork Reduction Act”).

(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

(d) Adjustment Authority Related to Trade Agreements Compliance.—

(1) REQUIRED DETERMINATION; ADJUSTMENT.—If the Secretary determines that expenditures under this title that are subject to the total allowable domestic support levels under the Uruguay Round Agreements (as defined in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed such allowable levels for any applicable reporting period, the Secretary shall, to the maximum extent practicable, make adjustments in the amount of such expenditures during that period to ensure that such expenditures do not exceed the allowable levels.

(2) CONGRESSIONAL NOTIFICATION.—Before making any adjustment under paragraph (1), 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 describing the determination made under that paragraph and the extent of the adjustment to be made.

(a) Agricultural Adjustment Act of 1938.—The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2019 through 2023 crops of covered commodities (as defined in section 1111), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2023:

(1) Parts II through V of subtitle B of title III (7 U.S.C. 1326 et seq.).

(2) In the case of upland cotton, section 377 (7 U.S.C. 1377).

(3) Subtitle D of title III (7 U.S.C. 1379a et seq.).

(4) Title IV (7 U.S.C. 1401 et seq.).

(b) Agricultural Act of 1949.—

(1) APPLICABILITY.—The following provisions of the Agricultural Act of 1949 shall not be applicable to the 2019 through 2023 crops of covered commodities (as defined in section 1111), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2023:

(A) Section 101 (7 U.S.C. 1441).

(B) Section 103(a) (7 U.S.C. 1444(a)).

(C) Section 105 (7 U.S.C. 1444b).

(D) Section 107 (7 U.S.C. 1445a).

(E) Section 110 (7 U.S.C. 1445e).

(F) Section 112 (7 U.S.C. 1445g).

(G) Section 115 (7 U.S.C. 1445k).

(H) Section 201 (7 U.S.C. 1446).

(I) Title III (7 U.S.C. 1447 et seq.).

(J) Title IV (7 U.S.C. 1421 et seq.), other than sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).

(K) Title V (7 U.S.C. 1461 et seq.).

(L) Title VI (7 U.S.C. 1471 et seq.).

(2) CLARIFYING AMENDMENTS.—Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended—

(A) by inserting “, crambe, cottonseed, sesame seed” after “mustard seed”;

(B) by inserting “dry peas, lentils, small chickpeas, large chickpeas, graded wool, nongraded wool, mohair, peanuts,” after “honey,”; and

(C) by striking “in accordance with this title” and inserting “consistent with the percentage levels of support provided under subsection (c), except as otherwise provided for under subsection (b)”.

(c) Suspension of Certain Quota Provisions.—The joint resolution entitled “A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended”, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 2019 through 2023.

(a) In General.—Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(1) in subsection (a)—

(A) in paragraph (1) by striking “section 1001 of the Food, Conservation, and Energy Act of 2008” and inserting “section 1111 of the Agriculture and Nutrition Act of 2018”;

(B) in paragraph (2), by inserting “first cousin, niece, nephew,” after “sibling,”;

(C) by redesignating paragraph (5) as (6); and

(D) by inserting after paragraph (4) the following new paragraph:

“(5) QUALIFIED PASS THROUGH ENTITY.—The term ‘qualified pass through entity’ means a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986 and including a limited liability company that does not affirmatively elect to be treated as a corporation), an S corporation (as defined in section 1361 of such Code), or a joint venture.”;

(2) in subsections (b) and (c) by striking “entity” through “Agricultural Act of 2014” in each place it appears and inserting “entity (except a qualified pass through entity) for any crop year under sections 1116 and 1117 of the Agriculture and Nutrition Act of 2018”;

(3) in subsection (d) by striking “associated” and all that follows through the end of the sentence and inserting “associated with subtitle B of title I of the Agriculture and Nutrition Act of 2018.”; and

(4) in subsection (f), by adding the end the following new paragraph:

“(9) ADMINISTRATION OF REDUCTION.—The Secretary shall apply any order described in section 1614(d)(1) of the Agricultural Act of 2014 (7 U.S.C. 9097(d)(1)) to payments under sections 1116 and 1117 of the Agriculture and Nutrition Act of 2018 prior to applying payment limitations under this section.”.

(b) Treatment of qualified pass through entities.—Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended—

(1) in the heading, by striking “joint ventures and general partnerships” and inserting “qualified pass through entities”;

(2) by striking “joint venture or a general partnership” and inserting “qualified pass through entity”;

(3) by striking “joint ventures and general partnerships” and inserting “qualified pass through entities”; and

(4) by striking “joint venture or general partnership” and inserting “qualified pass through entity”.

(c) Conforming Amendments.—

(1) TREATMENT OF FEDERAL AGENCIES AND STATE AND LOCAL GOVERNMENTS.—Section 1001(f) of the Food Security Act of 1985 (7 U.S.C. 1308(f)) is amended—

(A) in paragraph (5)(A), by striking “or title XII” and inserting “title I of the Agriculture and Nutrition Act of 2018, or title XII”; and

(B) in paragraph (6)(A), by striking “or title XII” and inserting “title I of the Agriculture and Nutrition Act of 2018, or title XII”.

(2) FOREIGN PERSONS INELIGIBLE.—Section 1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308–3(a)) is amended by inserting “title I of the Agriculture and Nutrition Act of 2018,” after “2014,”.

(d) Application.—The amendments made by this section shall apply beginning with the 2019 crop year.

(a) Limitations.—Section 1001D(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(2)) is amended—

(1) in subparagraph (A), by striking “title I of the Agricultural Act of 2014” and inserting “title I of the Agriculture and Nutrition Act of 2018”;

(2) by striking subparagraphs (B) and (D); and

(3) by redesignating subparagraphs (C) and (E) as subparagraphs (B) and (C), respectively.

(b) Exceptions.—

(1) IN GENERAL.—Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended by adding at the end the following:

“(3) EXCEPTIONS.—

“(A) EXCEPTION FOR QUALIFIED PASS THROUGH ENTITIES.—Paragraph (1) shall not apply with respect to a qualified pass through entity (as such term is defined in section 1001(a)(5)).

“(B) WAIVER.—The Secretary may waive the limitation established by paragraph (1) with respect to a payment pursuant to a covered benefit described in paragraph (2)(B), on a case-by-case basis, if the Secretary determines that environmentally sensitive land of special significance would be protected as a result of such waiver.”.

(2) CONFORMING AMENDMENTS.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended—

(A) in subsection (b)(1), by inserting “subject to paragraph (3),” after “of law,”; and

(B) in subsection (d), by striking “, general partnership, or joint venture” both places it appears.

(c) Transition.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day before the date of the enactment of this Act, shall apply with respect to the 2018 crop, fiscal, or program year, as appropriate, for each program described in subsection (b)(2) of that section (as so in effect on that day).

(a) Reconciliation.—At least twice each year, the Secretary shall reconcile Social Security numbers of all individuals who receive payments under this title, whether directly or indirectly, with the Commissioner of Social Security to determine if the individuals are alive.

(b) Preclusion.—The Secretary shall preclude the issuance of payments to, and on behalf of, deceased individuals that were not eligible for payments.

(a) In General.—The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments made under this title.

(b) Notice.—The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require, of any assignment made under this section.

As soon as practicable after the date of enactment of this Act, the Secretary may track the benefits provided, directly or indirectly, to individuals and entities under titles I and II and the amendments made by those titles.

(a) In General.—In carrying out this title and title II and amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of any person signing the document on behalf of the applicant or any other individual, entity, or qualified pass through entity (as such term is defined in paragraph (5) of section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a))) or the documents relied upon were determined inadequate or invalid, unless the person signing the program document knowingly and willfully falsified the evidence of signature authority or a signature.

(b) Affirmation.—

(1) IN GENERAL.—Nothing in this section prohibits the Secretary from asking a proper party to affirm any document that otherwise would be considered approved under subsection (a).

(2) NO RETROACTIVE EFFECT.—A denial of benefits based on a lack of affirmation under paragraph (1) shall not be retroactive with respect to third-party producers who were not the subject of the erroneous representation of authority, if the third-party producers—

(A) relied on the prior approval by the Secretary of the documents in good faith; and

(B) substantively complied with all program requirements.

Section 164(a) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7284(a)) is amended by striking “this title” and all that follows through “unless” and inserting “this title, title I of the Farm Security and Rural Investment Act of 2002, title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.), title I of the Agricultural Act of 2014, or Agriculture and Nutrition Act of 2018”.

(a) Maintenance of base acres and payment yields.—The Secretary shall maintain, for each covered commodity, base acres and payment yields on a farm established under sections 1001 and 1301 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702, 8751), as adjusted pursuant to sections 1101, 1102, 1108, and 1302 of such Act (7 U.S.C. 8711, 8712, 8718, 8752), as in effect on September 30, 2013, and as adjusted pursuant to sections 1112 and 1113 of the Agricultural Act of 2014 (7 U.S.C. 9012, 9013).

(b) Streamlining.—In implementing this title and amendments made by this title, the Secretary shall—

(1) continue to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements, including through the continuation of the Acreage Crop Reporting and Streamlining Initiative that, in part, shall ensure that—

(A) a producer (or an agent of a producer) may report information, electronically (including geospatial data) or conventionally, to the Department;

(B) upon the request of the producer (or agent thereof), the Department of Agriculture electronically shares with the producer (or agent) in real time and without cost to the producer (or agent) the common land unit data, related farm level data, and other information of the producer; and

(C) no agent, approved insurance provider, or employee or contractor of an agency or approved insurance provider, bears responsibility or liability under the Acreage Crop Reporting and Streamlining Initiative for the eligibility of a producer for programs administered by the Department of Agriculture that are not policies or plans of insurance offered under the Federal Crop Insurance Act (7 U.S.C. 1501 et. seq.) except in cases of misrepresentation, fraud, or scheme and device;

(2) continue to improve coordination, information sharing, and administrative work with the Farm Service Agency, Risk Management Agency, and the Natural Resources Conservation Service;

(3) continue to take advantage of new technologies to enhance efficiency and effectiveness of program delivery to producers; and

(4) reduce administrative burdens on producers by offering such producers an option to remotely and electronically sign annual contracts for participation in coverage under sections 1116 and 1117.

(c) Implementation.—The Secretary shall make available to the Farm Service Agency to carry out this title and amendments made by this title, $25,000,000.

(d) Loan implementation.—

(1) IN GENERAL.—Section 1614(d)(1) of the Agricultural Act of 2014 (7 U.S.C. 9097(d)(1)) is amended—

(A) by inserting “or subtitles B and C of the Agriculture and Nutrition Act of 2018” after “this title”;

(B) by striking “made by subtitles B or C” and inserting “made by such subtitles”; and

(C) by inserting “of this title, and sections 1207(c) and 1208 of the Agriculture and Nutrition Act of 2018” after “1208”.

(2) REPAYMENT.—Section 1614(d)(2) of the Agricultural Act of 2014 (7 U.S.C. 9097(d)(2)) is amended—

(A) by striking “of subtitles B or C” and inserting “of subtitle B or C of this title, or subtitle B or C of the Agriculture and Nutrition Act of 2018”; and

(B) by striking “under subtitles B or C” and inserting “of subtitle B or C of this title, or subtitle B or C of the Agriculture and Nutrition Act of 2018”.

(a) Definition of exempted producer.—In this section, the term “exempted producer” means a producer or landowner eligible to participate in any conservation or commodity program administered by the Secretary, or eligible for indemnity or compensation payments through programs administered by the Secretary.

(b) Exemption.—Notwithstanding any other provision of law, including the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109–282; 31 U.S.C. 6101 note), the requirements of parts 25 and 170 of title 2, Code of Federal Regulations (and any successor regulations), shall not apply with respect to assistance received by an exempted producer from the Secretary, acting through the Natural Resources Conservation Service, the Animal and Plant Health Inspection Service, or the Farm Service Agency.

(a) One-time filing.—Except as provided in subsection (b), during the first enrollment period announced by the Farm Service Agency after the date of the enactment of this Act, producers on a farm may file a one-time program contract with the Secretary to enroll in agricultural risk coverage or price loss coverage through crop year 2023.

(b) Updated program contract required.—In the case of a change in a farming operation for which producers on a farm have filed a one-time program contract pursuant to subsection (a), such producers shall file an updated program contract with the Secretary not later than one year after such change in the farming operation occurs.

(c) Notice of other annual reporting.—The Secretary shall provide to each producer that files a one-time program contract pursuant to subsection (a) a notice that includes the annual and other periodic reporting requirements applicable to such producer, as determined by the Secretary.

(d) Regulations revised.—The Secretary shall—

(1) issue such regulations as are necessary to carry out this section; and

(2) revise section 1412.41 of title 7, Code of Federal Regulations, in accordance with this section.

Section 1221(d) of the Food Security Act of 1985 (16 U.S.C. 3821(d)) is amended—

(1) by striking “Except as provided” and inserting the following:

“(A) IN GENERAL.—Except as provided”; and

(2) by adding at the end the following:

“(B) DUTY OF THE SECRETARY.—Before determining that a person is ineligible for program benefits under this subsection, the Secretary shall determine that no exemption under section 1222 applies.”.

(a) Identification of minimal effect exemptions.—Section 1222(d) of the Food Security Act of 1985 (16 U.S.C. 3822(d)) is amended by inserting “not later than 180 days after the date of enactment of the Agriculture and Nutrition Act of 2018,” before “the Secretary shall identify”.

(b) Mitigation banking.—Section 1222(k)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 3822(k)(1)(B)) is amended to read as follows:

“(B) FUNDING.—

“(i) FUNDS OF COMMODITY CREDIT CORPORATION.—To carry out this paragraph, the Secretary shall use $10,000,000 of the funds of the Commodity Credit Corporation beginning in fiscal year 2019, which funds shall remain available until expended.

“(ii) AUTHORIZATION OF APPROPRIATIONS.—In addition to amounts made available under clause (i), there are authorized to be appropriated to the Secretary to carry out this paragraph $5,000,000 for each of fiscal years 2019 through 2023.”.

(a) In General.—Section 1231(a) of the Food Security Act of 1985 (16 U.S.C. 3831(a)) is amended by striking “2018” and inserting “2023”.

(b) Enrollment.—Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (D), by striking “; and” and inserting a semicolon;

(B) in subparagraph (E), by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

“(F) fiscal year 2019, no more than 25,000,000 acres;

“(G) fiscal year 2020, no more than 26,000,000 acres;

“(H) fiscal year 2021, no more than 27,000,000 acres;

“(I) fiscal year 2022, no more than 28,000,000 acres; and

“(J) fiscal year 2023, no more than 29,000,000 acres.”;

(2) in paragraph (2)—

(A) by amending subparagraph (A) to read as follows:

“(A) LIMITATION.—For purposes of applying the limitations in paragraph (1)—

“(i) no more than 2,000,000 acres of the land described in subsection (b)(3) may be enrolled in the program at any one time during the 2014 through 2018 fiscal years;

“(ii) the Secretary shall enroll and maintain in the conservation reserve not fewer than 3,000,000 acres of the land described in subsection (b)(3) by September 30, 2023; and

“(iii) in carrying out clause (ii), to the maximum extent practicable, the Secretary shall maintain in the conservation reserve at any one time during—

“(I) fiscal year 2019, 1,000,000 acres;

“(II) fiscal year 2020, 1,500,000 acres;

“(III) fiscal year 2021, 2,000,000 acres;

“(IV) fiscal year 2022, 2,500,000 acres; and

“(V) fiscal year 2023, 3,000,000 acres.”; and

(B) by adding at the end the following:

“(D) RESERVATION OF UNENROLLED ACRES.—If the Secretary is unable in a fiscal year to enroll enough acres of land described in subsection (b)(3) to meet the number of acres described in clause (ii) or (iii) of subparagraph (A) for the fiscal year, the Secretary shall reserve the remaining number of acres for that fiscal year for the enrollment of land described in subsection (b)(3), and that number of acres shall not be available for the enrollment of any other type of eligible land.”; and

(3) by adding at the end the following:

“(3) STATE ENROLLMENT RATES.—During each of fiscal years 2019 through 2023, to the maximum extent practicable, the Secretary shall carry out this subchapter in such a manner as to enroll and maintain acreage in the conservation reserve in accordance with historical State enrollment rates, considering—

“(A) the average number of acres of all lands enrolled in the conservation reserve in each State during each of fiscal years 2007 through 2016;

“(B) the average number of acres of all lands enrolled in the conservation reserve nationally during each of fiscal years 2007 through 2016; and

“(C) the acres available for enrollment during each of fiscal years 2019 through 2023, excluding acres described in paragraph (2).

“(4) FREQUENCY.—In carrying out this subchapter, for contracts that are not available on a continuous enrollment basis, the Secretary shall hold a signup not less often than once every other year.”.

(c) Duration of contract.—Section 1231(e) of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended to read as follows:

“(e) Duration of contract.—

“(1) IN GENERAL.—Except as provided in paragraph (2), for the purpose of carrying out this subchapter, the Secretary shall enter into contracts of not less than 10, nor more than 15, years.

“(2) CERTAIN CONTINUOUS CONTRACTS.—With respect to contracts under this subchapter for the enrollment of land described in paragraph (4) or (5) of subsection (b), the Secretary shall enter into contracts of a period of 15 or 30 years.”.

(d) Eligibility for consideration.—Section 1231(h) of the Food Security Act of 1985 (16 U.S.C. 3831(h)) is amended—

(1) by striking “On the expiration” and inserting the following:

“(1) IN GENERAL.—On the expiration”; and

(2) by adding at the end the following:

“(2) REENROLLMENT LIMITATION FOR CERTAIN LAND.—Land subject to a contract entered into under this subchapter shall be eligible for only one reenrollment in the conservation reserve under paragraph (1) if the land is devoted to hardwood trees.”.

(a) Program required.—Section 1231B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended by striking “2018” and inserting “2023”.

(b) Eligible acreage.—Section 1231B(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3831b(b)(2)) is amended to read as follows:

“(2) BUFFER ACREAGE.—Subject to subsections (c) and (d), an owner or operator may enroll in the conservation reserve, pursuant to the program established under this section, buffer acreage that, with respect to land described in subparagraph (A), (B), or (C) of paragraph (1)—

“(A) is contiguous to such land;

“(B) is used to protect such land; and

“(C) 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.”.

(c) Program limitations.—Section 1231B(c) of the Food Security Act of 1985 (16 U.S.C. 3831b(c)) is amended—

(1) in paragraph (1)(B), by striking “750,000” and inserting “500,000”;

(2) in paragraph (2), by striking “Subject to paragraph (3), any acreage” and inserting “Any acreage”; and

(3) by striking paragraphs (3) and (4).

(d) Duties of owners and operators.—Section 1231B(e) of the Food Security Act of 1985 (16 U.S.C. 3831b(e)) is amended—

(1) in paragraph (2), by striking the semicolon and inserting “; and”;

(2) by striking paragraph (3); and

(3) by redesignating paragraph (4) as paragraph (3).

(e) Duties of the Secretary.—Section 1231B(f) of the Food Security Act of 1985 (16 U.S.C. 3831b(f)) is amended—

(1) in paragraph (1), by striking “paragraphs (2) and (3)” and inserting “paragraph (2)”;

(2) in paragraph (2), by striking “section 1234(d)(2)(A)(ii)” and inserting “section 1234(d)(2)(A)”; and

(3) by striking paragraph (3).

(a) In general.—Section 1232(a) of the Food Security Act of 1985 (16 U.S.C. 3832(a)) is amended—

(1) in paragraph (5), by inserting “, which may include the use of grazing in accordance with paragraph (8),” after “management on the land”; and

(2) by redesignating paragraphs (10) and (11) as paragraphs (11) and (12), respectively, and inserting after paragraph (9) the following:

“(10) on land devoted to hardwood or other trees, excluding windbreaks and shelterbelts, to carry out proper thinning and other practices to improve the condition of resources, promote forest management, and enhance wildlife habitat on the land;”.

(b) Conservation plans.—Section 1232(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3832(b)(2)) is amended by striking “, if any,”.

(a) Cost-Share and rental payments.—Section 1233(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3833(a)(2)) is amended by striking “pay an annual rental payment in an amount necessary to compensate for” and inserting “pay an annual rental payment, in accordance with section 1234(d), for”.

(b) Specified activities permitted.—Section 1233(b) of the Food Security Act of 1985 (16 U.S.C. 3833(b)) is amended—

(1) in paragraph (2)—

(A) in the matter preceding subparagraph (A)—

(i) by striking “not less than 25 percent” and inserting “25 percent”; and

(ii) by inserting “(except that vegetative cover may not be harvested for seed)” after “managed harvesting”;

(B) in subparagraph (A), by striking “; and” and inserting a semicolon;

(C) in subparagraph (B), by striking “is at least every 5 but not more than once every 3 years;” and inserting “contributes to the health and vigor of the established cover, and is not more than once every 3 years; and”; and

(D) by adding at the end the following:

“(C) shall ensure that 25 percent of the acres covered by the contract are not harvested, in accordance with an approved plan that provides for wildlife cover and shelter;”;

(2) in paragraph (3)—

(A) in the matter preceding subparagraph (A), by striking “not less than 25 percent” and inserting “25 percent”; and

(B) in subparagraph (B)—

(i) in the matter preceding clause (i), by striking “routine grazing, except that in permitting such routine grazing” and inserting “grazing, except that in permitting such grazing”;

(ii) in clause (i), by striking “continued routine grazing; and” and inserting “grazing;”;

(iii) in clause (ii)—

(I) in the matter preceding subclause (I), by striking “routine grazing may be conducted, such that the frequency is not more than once every 2 years” and inserting “grazing may be conducted, such that the frequency contributes to the health and vigor of the established cover”;

(II) in subclause (II), by striking “the number of years that should be required between routine” and inserting “the appropriate frequency and duration of”; and

(III) in subclause (III), by striking “routine” each place it appears; and

(iv) by adding at the end the following:

“(iii) shall ensure that the grazing is conducted in accordance with an approved plan that does not restrict grazing during the primary nesting season and will reduce the stocking rate determined under clause (i) by 50 percent; and”;

(3) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively;

(4) by inserting after paragraph (3) the following:

“(4) grazing during the applicable normal grazing period determined under subclause (I) of section 1501(c)(3)(D)(i) of the Agricultural Act of 2014 (7 U.S.C. 9081(c)(3)(D)(i)), without any restriction on grazing during the primary nesting period, subject to the condition that the grazing shall be at 50 percent of the normal carrying capacity determined under that subclause.”;

(5) in paragraph (5), as so redesignated, by striking “; and” and inserting “and retains suitable vegetative structure for wildlife cover and shelter;”;

(6) in paragraph (6)(C), as so redesignated, by striking the period at the end and inserting “; and”; and

(7) by adding at the end the following:

“(7) grazing pursuant to section 1232(a)(5), without any reduction in the rental rate, if the grazing is consistent with the conservation of soil, water quality, and wildlife habitat.”.

(c) Natural disaster or adverse weather as mid-contract management.—Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) is amended by adding at the end the following:

“(e) Natural disaster or adverse weather as mid-contract management.—In the case of a natural disaster or adverse weather event that has the effect of a management practice consistent with the conservation plan, the Secretary shall not require further management practices pursuant to section 1232(a)(5) that are intended to achieve the same effect.”.

(a) Cost sharing payments.—Section 1234(b) of the Food Security Act of 1985 (16 U.S.C. 3834(b)) is amended—

(1) in paragraph (1), by striking “50 percent” and inserting “not more than 40 percent”;

(2) by amending paragraph (2) to read as follows:

“(2) LIMITATIONS.—

“(A) EXCEPTION FOR SEED COSTS.—In the case of seed costs related to the establishment of cover, cost share shall not exceed 25 percent of the total cost of the seed mixture.

“(B) ADDITIONAL INCENTIVE PAYMENTS.—Except as provided in subsection (c), the Secretary may not make additional incentive payments beyond the actual cost of installing measures and practices described in paragraph (1).

“(C) MID-CONTRACT MANAGEMENT GRAZING.—The Secretary may not make any cost sharing payment to an owner or operator under this subchapter pursuant to section 1232(a)(5).”; and

(3) by striking paragraphs (3) and (4) and redesignating paragraph (5) as paragraph (3).

(b) Incentive payments.—Section 1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended—

(1) in the subsection heading, by striking “Incentive” and inserting “Forest management payment”;

(2) in paragraph (1), by striking “The Secretary” and inserting “Using funds made available under section 1241(a)(1)(A), the Secretary”; and

(3) in paragraph (2), by striking “150 percent” and inserting “100 percent”.

(c) Annual rental payments.—Section 1234(d) of the Food Security Act of 1985 (16 U.S.C. 3834(d)) is amended—

(1) in paragraph (1)—

(A) by striking “less intensive use, the Secretary may consider” and inserting the following: “less intensive use—

“(A) the Secretary may consider”;

(B) by striking the period at the end and inserting “; and”; and

(C) by adding at the end the following:

“(B) the Secretary shall consider the impact on the local farmland rental market.”;

(2) in paragraph (2)—

(A) by amending subparagraph (A) to read as follows:

“(A) IN GENERAL.—

“(i) INITIAL ENROLLMENT.—The amounts payable to an owner or operator in the form of annual rental payments under a contract entered into under this subchapter with respect to land that has not previously been subject to such a contract shall be not more than 80 percent of the applicable estimated average county rental rate published pursuant to paragraph (4) for the year in which the contract is entered into.

“(ii) MULTIPLE ENROLLMENTS.—If land subject to a contract entered into under this subchapter is reenrolled in the conservation reserve under section 1231(h)(1)—

“(I) for the first such reenrollment, the annual rental payment shall be in an amount that is not more than 65 percent of the applicable estimated average county rental rate published pursuant to paragraph (4) for the year in which the reenrollment occurs;

“(II) for the second such reenrollment, the annual rental payment shall be in an amount that is not more than 55 percent of the applicable estimated average county rental rate published pursuant to paragraph (4) for the year in which the reenrollment occurs;

“(III) for the third such reenrollment, the annual rental payment shall be in an amount that is not more than 45 percent of the applicable estimated average county rental rate published pursuant to paragraph (4) for the year in which the reenrollment occurs; and

“(IV) for the fourth such reenrollment, the annual rental payment shall be in an amount that is not more than 35 percent of the applicable estimated average county rental rate published pursuant to paragraph (4) for the year in which the reenrollment occurs.”; and

(B) in subparagraph (B), by striking “In the case” and inserting “Notwithstanding subparagraph (A), in the case”;

(3) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4); and

(4) in paragraph (4), as so redesignated—

(A) by striking “cash” each place it appears;

(B) in subparagraph (A)—

(i) by striking “, not less frequently than once every other year,” and inserting “annually”; and

(ii) by inserting “, and shall publish the estimates derived from such survey not later than September 15 of each year” before the period at the end; and

(C) in subparagraph (C)—

(i) by striking “may” and inserting “shall”; and

(ii) by striking “as a factor in determining” and inserting “to determine”.

(d) Payment limitation for rental payments.—Section 1234(g)(2) of the Food Security Act of 1985 (16 U.S.C. 3834(g)(2)) is amended by adding at the end the following:

“(C) LIMITATION ON PAYMENTS.—Payments under subparagraph (B) shall not exceed 50 percent of the cost of activities carried out under the applicable agreement entered into under such subparagraph.”.

(a) Early termination by owner or operator.—Section 1235(e)(1)(A) of the Food Security Act of 1985 (16 U.S.C. 3835(e)(1)(A)) is amended by striking “2015” and inserting “2019”.

(b) Transition option for certain farmers or ranchers.—Section 1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) is amended—

(1) in paragraph (1)—

(A) by amending subparagraph (A) to read as follows:

“(A) beginning on the date that is 1 year before the date of termination of the contract, allow the covered farmer or rancher, in conjunction with the retired or retiring owner or operator, to make conservation and land improvements, including preparing to plant an agricultural crop;”;

(B) by redesignating subparagraphs (B) through (E) as subparagraphs (C) through (F), respectively, and inserting after subparagraph (A) the following:

“(B) beginning on the date that is 3 years before the date of termination of the contract, allow the covered farmer or rancher to begin the certification process under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.);”;

(C) in subparagraph (D), as so redesignated, by inserting “, and provide to such farmer or rancher technical and financial assistance to carry out the requirements of the plan, if any” before the semicolon at the end; and

(D) in subparagraph (E), as so redesignated, by striking “the conservation stewardship program or”; and

(2) in paragraph (2)—

(A) in the matter preceding subparagraph (A), by striking “The Secretary” and inserting “To the extent the maximum number of acres permitted to be enrolled under the program has not been met, the Secretary”; and

(B) in subparagraph (A), by striking “eligible for enrollment under the continuous signup option pursuant to section 1234(d)(2)(A)(ii)” and inserting “is carried out on land described in paragraph (4) or (5) of section 1231(b)”.

(c) End of contract considerations.—Section 1235(g) of the Food Security Act of 1985 (16 U.S.C. 3835(g)) is amended to read as follows:

“(g) End of contract considerations.—The Secretary shall not consider an owner or operator to be in violation of a term or condition of the conservation reserve contract if—

“(1) during the year prior to expiration of the contract, the owner or operator—

“(A) enters into an environmental quality incentives program contract; and

“(B) begins the establishment of an environmental quality incentives practice; or

“(2) during the three years prior to the expiration of the contract, the owner or operator begins the certification process under the Organic Foods Production Act of 1990.”.

(a) Practice.—Section 1240A(4)(B) of the Food Security Act of 1985 (16 U.S.C. 3839aa–1(4)(B)) is amended—

(1) in clause (i), by striking “; and” and inserting a semicolon; and

(2) by redesignating clause (ii) as clause (iv) and inserting after clause (i) the following:

“(ii) precision conservation management planning;

“(iii) the use of cover crops and resource conserving crop rotations; and”.

(b) Priority resource concern.—Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is amended by redesignating paragraph (5) as paragraph (6) and inserting after paragraph (4) the following:

“(5) PRIORITY RESOURCE CONCERN.—The term ‘priority resource concern’ means a natural resource concern or problem, as determined by the Secretary, that—

“(A) is identified at the national, State, or local level as a priority for a particular area of a State; and

“(B) represents a significant concern in a State or region.”.

(c) Stewardship practice.—Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa–1) is amended by adding at the end the following:

“(7) STEWARDSHIP PRACTICE.—The term ‘stewardship practice’ means a practice or set of practices approved by the Secretary that, when implemented and maintained on eligible land, address 1 or more priority resource concerns.”.

(a) Establishment.—Section 1240B(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(a)) is amended by striking “2019” and inserting “2023”.

(b) Allocation of funding.—Section 1240B(f) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(f)) is amended to read as follows:

“(f) Allocation of funding.—For each of fiscal years 2014 through 2023, at least 5 percent of the funds made available for payments under the program shall be targeted at practices benefitting wildlife habitat under subsection (g).”.

(c) Water conservation or irrigation efficiency practice.—Section 1240B(h) of the Food Security Act of 1985 (16 U.S.C. 3839aa–2(h)) is amended—

(1) by amending paragraph (1) to read as follows:

“(1) AVAILABILITY OF PAYMENTS.—The Secretary may provide water conservation and system efficiency payments under this subsection to a producer for—

“(A) a water conservation scheduling technology or water conservation scheduling management;

“(B) irrigation-related structural practices;

“(C) the use of existing drainage systems, or to upgrade drainage systems, to provide irrigation or water efficiency; or

“(D) a transition to water-conserving crops or water-conserving crop rotations.”;

(2) by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following:

“(2) LIMITED ELIGIBILITY OF IRRIGATION DISTRICTS, IRRIGATION ASSOCIATIONS, DRAINAGE DISTRICTS, AND ACEQUIAS.—

“(A) IN GENERAL.—Notwithstanding section 1001(f)(6), the Secretary may enter into a contract under this subsection with an irrigation district, irrigation association, drainage district, or acequia to implement water conservation or irrigation practices pursuant to a watershed-wide project that will effectively conserve water, as determined by the Secretary.

“(B) IMPLEMENTATION.—Water conservation or irrigation practices that are the subject of a contract entered into under this paragraph shall be implemented on—

“(i) eligible land of a producer; or

“(ii) land that is under the control of the irrigation district, irrigation association, drainage district, or acequia, and adjacent to such eligible land, as determined by the Secretary.

“(C) WAIVER AUTHORITY.—The Secretary may waive the applicability of the limitations in section 1001D(b)(2) or section 1240G of this Act for a payment made under a contract entered into under this paragraph if the Secretary determines that such a waiver is necessary to fulfill the objectives of the project.

“(D) CONTRACT LIMITATIONS.—If the Secretary grants a waiver under subparagraph (C), the Secretary may impose a separate payment limitation for the contract with respect to which the waiver applies.”; and

(3) in paragraph (3), as so redesignated—

(A) in the matter preceding subparagraph (A), by striking “to a producer” and inserting “under this subsection”;

(B) in subparagraph (A), by striking “the eligible land of the producer is located, there is a reduction in water use in the operation of the producer” and inserting “the land on which the practices will be implemented is located, there is a reduction in water use in the operation on such land”; and

(C) in subparagraph (B), by inserting “with respect to an application under paragraph (1),” before “the producer agrees”.

(d) Stewardship contracts.—Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa–2) is amended by adding at the end the following:

“(j) Stewardship contracts.—

“(1) IDENTIFICATION OF ELIGIBLE PRIORITY RESOURCE CONCERNS FOR STATES.—

“(A) IN GENERAL.—The Secretary, in consultation with the State technical committee, shall identify priority resource concerns within a State that are eligible to be the subject of a stewardship contract under this subsection.

“(B) LIMITATION.—The Secretary shall identify not more than 3 eligible priority resource concerns under subparagraph (A) within each area of a State.

“(2) CONTRACTS.—

“(A) IN GENERAL.—The Secretary shall enter into contracts with producers under this subsection that—

“(i) provide incentives, through annual payments, to producers to attain increased conservation stewardship on eligible land;

“(ii) adopt and install a stewardship practice to effectively address a priority resource concern identified as eligible under paragraph (1); and

“(iii) require management and maintenance of such stewardship practice for the term of the contract.

“(B) TERM.—A contract under this subsection shall have a term of not less than 5, nor more than 10, years.

“(C) PRIORITIZATION.—Section 1240C(b) shall not apply to applications for contracts under this subsection.

“(3) STEWARDSHIP PAYMENTS.—

“(A) IN GENERAL.—The Secretary shall provide payments to producers through contracts entered into under paragraph (2) for—

“(i) adopting and installing stewardship practices; and

“(ii) managing, maintaining, and improving the stewardship practices for the duration of the contract, as determined appropriate by the Secretary.

“(B) PAYMENT AMOUNTS.—In determining the amount of payments under subparagraph (A), the Secretary shall consider, to the extent practicable—

“(i) the level and extent of the stewardship practice to be installed, adopted, completed, maintained, managed, or improved;

“(ii) the cost of the installation, adoption, completion, management, maintenance, or improvement of the stewardship practice;

“(iii) income foregone by the producer; and

“(iv) the extent to which compensation would ensure long-term continued maintenance, management, and improvement of the stewardship practice.

“(C) LIMITATION.—The total amount of payments a person or legal entity receives pursuant to subparagraph (A) shall not exceed $50,000 for any fiscal year.

“(4) RESERVATION OF FUNDS.—The Secretary may use not more than 50 percent of the funds made available under section 1241 to carry out this chapter for payments made pursuant to this subsection.”.

Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa–7) is amended by inserting “or the period of fiscal years 2019 through 2023,” after “2018,”.

(a) Competitive grants for innovative conservation approaches.—Section 1240H(a) of the Food Security Act of 1985 (16 U.S.C. 3839aa–8(a)) is amended—

(1) in paragraph (1), by inserting “use not more than $25,000,000 in each of fiscal years 2019 through 2023 to” after “the Secretary may”; and

(2) in paragraph (2)(A), by inserting “or persons participating in an educational activity through an institution of higher education, including by carrying out demonstration projects on lands of the institution” before the semicolon at the end.

(b) Air quality concerns from agricultural operations.—Section 1240H(b)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa–8(b)(2)) is amended by inserting “, and $37,500,000 for each of fiscal years 2019 through 2023” after “2018”.

(c) On-Farm conservation innovation trials; reporting and database.—Section 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa–8) is amended by striking subsection (c) and inserting the following:

“(c) On-Farm conservation innovation trials.—

“(1) IN GENERAL.—Using not more than $25,000,000 of the funds made available to carry out this chapter in each of fiscal years 2019 through 2023, the Secretary shall carry out on-farm conservation innovation trials, on eligible land of producers, to test new or innovative conservation approaches—

“(A) directly with producers; or

“(B) through eligible entities.

“(2) INCENTIVE PAYMENTS.—

“(A) AGREEMENTS.—In carrying out paragraph (1), the Secretary shall enter into agreements with producers on whose land an on-farm conservation innovation trial is being carried out to provide payments (including payments to compensate for foregone income, as appropriate to address the increased economic risk potentially associated with new or innovative conservation approaches) to the producers to assist with adopting and evaluating new or innovative conservation approaches.

“(B) LENGTH OF INCENTIVES.—An agreement entered into under subparagraph (A) shall be for a period determined by the Secretary that is—

“(i) not less than 3 years; and

“(ii) if appropriate, more than 3 years, including if such a period is appropriate to support—

“(I) adaptive management over multiple crop years; and

“(II) adequate data collection and analysis to report the natural resource and agricultural production benefits of the new or innovative conservation approaches.

“(3) FLEXIBLE ADOPTION.—A producer or eligible entity participating in an on-farm conservation innovation trial under paragraph (1) may determine the scale of adoption of the new or innovative conservation approaches in the on-farm conservation innovation trial, which may include multiple scales on an operation, including whole farm, field-level, or sub-field scales.

“(4) TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance—

“(A) to a producer or eligible entity participating in an on-farm conservation innovation trial under paragraph (1), with respect to the design, installation, and management of the new or innovative conservation approaches; and

“(B) to an eligible entity participating in an on-farm conservation innovation trial under paragraph (1), with respect to data analyses of the on-farm conservation innovation trial.

“(5) DEFINITIONS.—In this subsection:

“(A) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a third-party private entity the primary business of which is related to agriculture.

“(B) NEW OR INNOVATIVE CONSERVATION APPROACHES.—The term ‘new or innovative conservation approaches’ means—

“(i) new or innovative—

“(I) precision agriculture technologies;

“(II) enhanced nutrient management plans, nutrient recovery systems, and fertilization systems;

“(III) soil health management systems;

“(IV) water management systems;

“(V) resource-conserving crop rotations;

“(VI) cover crops; and

“(VII) irrigation systems; and

“(ii) any other conservation approach approved by the Secretary as new or innovative.

“(d) Reporting and database.—

“(1) REPORT REQUIRED.—Not later than December 31, 2014, and every two years thereafter, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report on the status of activities funded under this section, including—

“(A) funding awarded;

“(B) results of the activities; and

“(C) incorporation of findings from the activities, such as new technology and innovative approaches, into the conservation efforts implemented by the Secretary.

“(2) CONSERVATION PRACTICE DATABASE.—

“(A) IN GENERAL.—The Secretary shall use the data reported under paragraph (1) to establish and maintain a publicly available conservation practice database that provides—

“(i) a compilation and analysis of effective conservation practices for soil health, nutrient management, and source water protection in varying soil compositions, cropping systems, slopes, and landscapes; and

“(ii) a list of recommended new and effective conservation practices.

“(B) PRIVACY.—Information provided under subparagraph (A) shall be transformed into a statistical or aggregate form so as to not include any identifiable or personal information of individual producers.”.

Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C. 3839bb(e)) is amended by striking “2018” and inserting “2023”.

(a) Authorization of appropriations.—Section 1240O(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)(1)) is amended by striking “2018” and inserting “2023”.

(b) Availability of funds.—Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 3839bb–2(b)) is amended by adding at the end the following:

“(3) ADDITIONAL FUNDING.—In addition to any other funds made available under this subsection, of the funds of the Commodity Credit Corporation, the Secretary shall use $5,000,000 beginning in fiscal year 2019, to remain available until expended.”.

Section 1240R(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amended—

(1) by striking “2012 and” and inserting “2012,”; and

(2) by inserting “, and $50,000,000 for the period of fiscal years 2019 through 2023” before the period at the end.

(a) Authorization of appropriations.—Section 14(h)(2)(E) of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended by striking “2018” and inserting “2023”.

(b) Funds of Commodity Credit Corporation.—The Watershed Protection and Flood Prevention Act (16 U.S.C. 1001 et seq.) is amended by adding at the end the following:

(a) In general.—The Secretary of Agriculture shall establish a feral swine eradication and control pilot program to respond to the threat feral swine pose to agriculture, native ecosystems, and human and animal health.

(b) Duties of the Secretary.—In carrying out the pilot program, the Secretary shall—

(1) study and assess the nature and extent of damage to the pilot areas caused by feral swine;

(2) develop methods to eradicate or control feral swine in the pilot areas;

(3) develop methods to restore damage caused by feral swine; and

(4) provide financial assistance to agricultural producers in pilot areas.

(c) Assistance.—The Secretary may provide financial assistance to agricultural producers under the pilot program to implement methods to—

(1) eradicate or control feral swine in the pilot areas; and

(2) restore damage caused by feral swine.

(d) Coordination.—The Secretary shall ensure that the Natural Resources Conservation Service and the Animal and Plant Health Inspection Service coordinate for purposes of this section through State technical committees established under section 1261 of the Food Security Act of 1985.

(e) Pilot areas.—The Secretary shall carry out the pilot program in areas of States in which feral swine have been identified as a threat to agriculture, native ecosystems, or human or animal health, as determined by the Secretary.

(f) Cost sharing.—

(1) FEDERAL SHARE.—The Federal share of the costs activities under the pilot program may not exceed 75 percent of the total costs of such activities.

(2) IN-KIND CONTRIBUTIONS.—The non-Federal share of the costs of activities under the pilot program may be provided in the form of in-kind contributions of materials or services.

(g) Funding.—

(1) MANDATORY FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $100,000,000 for the period of fiscal years 2019 through 2023.

(2) DISTRIBUTION OF FUNDS.—Of the funds made available under paragraph (1)—

(A) 50 percent shall be allocated to the Natural Resources Conservation Service to carry out the pilot program, including the provision of financial assistance to producers for on-farm trapping and technology related to capturing and confining feral swine; and

(B) 50 percent shall be allocated to the Animal and Plant Health Inspection Service to carry out the pilot program, including the use of established, and testing of innovative, population reduction methods.

(3) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more than 10 percent of funds made available under this section may be used for administrative expenses of the pilot program.

(a) Repair or replacement of fencing.—

(1) IN GENERAL.—Section 401 of the Agricultural Credit Act of 1978 (16 U.S.C. 2201) is amended—

(A) by striking the section designation and all that follows through “The Secretary of Agriculture” and inserting the following:

(B) in subsection (a), as so designated, by inserting “wildfires,” after “hurricanes,”; and

(C) by adding at the end the following:

“(b) Repair or replacement of fencing.—With respect to a payment to an agricultural producer under subsection (a) for the repair or replacement of fencing, the Secretary shall give the agricultural producer the option of receiving the payment, determined based on the applicable percentage of the fair market value of the cost of the repair or replacement, as determined by the Secretary, before the agricultural producer carries out the repair or replacement.”.

(2) CONFORMING AMENDMENTS.—

(A) Sections 402, 403, 404, and 405 of the Agricultural Credit Act of 1978 (16 U.S.C. 2202, 2203, 2204, 2205) are amended by striking “Secretary of Agriculture” each place it appears and inserting “Secretary”.

(B) Section 407(a) of the Agricultural Credit Act of 1978 (16 U.S.C. 2206(a)) is amended by striking paragraph (4).

(b) Cost share payments.—Title IV of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.) is amended by inserting after section 402 the following:

It is the sense of Congress that the Federal Government should recognize and encourage partnerships at the watershed level between nonpoint sources and regulated point sources to advance the goals of the Federal Water Pollution Control Act and provide benefits to farmers, landowners, and the public.