[110th Congress Public Law 398]
[From the U.S. Government Printing Office]
[DOCID: f:publ398.110]
[[Page 122 STAT. 4213]]
Public Law 110-398
110th Congress
An Act
To amend the commodity provisions of the Food, Conservation, and Energy
Act of 2008 to permit producers to aggregate base acres and reconstitute
farms to avoid the prohibition on receiving direct payments, counter-
cyclical payments, or average crop revenue election payments when the
sum of the base acres of a farm is 10 acres or less, and for other
purposes. <<NOTE: Oct. 13, 2008 - [H.R. 6849]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TREATMENT OF FARMS WITH LIMITED BASE ACRES.
(a) Suspension of Prohibition.--
(1) In general.--Section 1101(d) of the Food, Conservation,
and Energy Act of 2008 (7 U.S.C. 8711(d)) is amended by adding
at the end the following:
``(4) Suspension of prohibition.--Paragraphs (1) through (3)
shall not apply during the 2008 crop year.''.
(2) Peanuts.--Section 1302(d) of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8752(d)) is amended by adding at
the end the following:
``(4) Suspension of prohibition.--Paragraphs (1) through (3)
shall not apply during the 2008 crop year.''.
(b) Extension of 2008 Signup for Direct Payments and Counter-
Cyclical Payments.--
(1) In general.--Section 1106 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8716) is amended by adding at the
end the following:
``(f) Extension of 2008 Signup.--
``(1) In <<NOTE: Deadline.>> general.--Notwithstanding any
other provision of law, the Secretary shall extend the 2008 crop
year deadline for the signup for benefits under this subtitle by
producers on a farm with base acres of 10 acres or less until
the later of--
``(A) November 14, 2008; or
``(B) the end of the 45-day period beginning on the
date of the enactment of this subsection.
``(2) Penalties.--The Secretary shall ensure that no penalty
with respect to benefits under this subtitle or subtitle B is
assessed against producers on a farm described in paragraph (1)
for failure to submit reports under this section or timely
comply with other program requirements as a result of compliance
with the extended signup deadline under that paragraph.''.
(2) Peanuts.--Section 1305 of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8755) is amended by adding at the
end the following:
[[Page 122 STAT. 4214]]
``(f) Extension of 2008 Signup.--
``(1) In general.--Notwithstanding <<NOTE: Deadline.>> any
other provision of law, the Secretary shall extend the 2008 crop
year deadline for the signup for benefits under this subtitle by
producers on a farm with base acres of 10 acres or less until
the later of--
``(A) November 14, 2008; or
``(B) the end of the 45-day period beginning on the
date of the enactment of this subsection.
``(2) Penalties.--The Secretary shall ensure that no penalty
with respect to benefits under this subtitle is assessed against
producers on a farm described in paragraph (1) for failure to
submit reports under this section or timely comply with other
program requirements as a result of compliance with the extended
signup deadline under that paragraph.''.
(c) Offsetting Reduction.--Section 515(k)(1) of the Federal Crop
Insurance Act (7 U.S.C. 1515(k)(1)) is amended by striking ``2011'' and
inserting ``2010, and not more than $9,000,000 for fiscal year 2011''.
SEC. 2. SUPPLEMENTAL REVENUE ASSISTANCE PROGRAM.
(a) Federal Crop Insurance Act.--
(1) Definitions.--Section 531(a) of the Federal Crop
Insurance Act (7 U.S.C. 1531(a)) is amended--
(A) in paragraph (3)(B), by inserting ``has'' after
``on a farm that'';
(B) in paragraph (4), by striking ``section 1102 of
the Farm Security and Rural Investment Act of 2002'' and
all that follows through the end of the paragraph and
inserting ``under--
``(i) section 1102 or 1302 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 7912, 7952);
``(ii) section 1102 or 1301(6) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8712, 8751(6)); or
``(iii) a successor section.'';
(C) in paragraph (5)(B)(ii), by striking ``, the
total loss'' and all that follows through the end of the
paragraph and adding ``the actual production on the farm
is less than 50 percent of the normal production on the
farm.'';
(D) in paragraph (7)--
(i) in subparagraph (A), by inserting ``for
sale or on-farm livestock feeding (including
native grassland intended for haying)'' after
``harvest''; and
(ii) in subparagraph (C), by inserting ``for
sale'' after ``crop'';
(E) by redesignating paragraphs (2) through (4), (5)
through (12), and (13) through (18) as paragraphs (3)
through (5), (7) through (14), and (16) through (21),
respectively;
(F) by inserting after paragraph (1) the following:
``(2) Actual production on the farm.--The term `actual
production on the farm' means the sum of the value of all crops
produced on the farm, as determined under subsection
(b)(6)(B).'';
[[Page 122 STAT. 4215]]
(G) by inserting after paragraph (5) (as
redesignated by subparagraph (E)) the following:
``(6) Crop of economic significance.--The term `crop of
economic significance' shall have the uniform meaning given the
term by the Secretary for purposes of subsections (b)(1)(B) and
(g)(6).''; and
(H) by inserting after paragraph (14) (as
redesignated by subparagraph (E)) the following:
``(15) Normal production on the farm.--The term `normal
production on the farm' means the sum of the expected revenue
for all crops on the farm, as determined under subsection
(b)(6)(A).''.
(2) Supplemental revenue assistance payments.--Section
531(b) of the Federal Crop Insurance Act (7 U.S.C. 1531(b)) is
amended--
(A) in paragraph (1)--
(i) by striking ``(1) in general.--The
Secretary'' and inserting the following:
``(1) Payments.--
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Crop loss.--To be eligible for crop loss
assistance under this subsection, the actual production
on the farm for at least 1 crop of economic significance
shall be reduced by at least 10 percent due to disaster,
adverse weather, or disaster-related conditions.'';
(B) in paragraph (2), by adding at the end the
following:
``(C) Exclusion of subsequently planted crops.--In
calculating the disaster assistance program guarantee
under paragraph (3) and the total farm revenue under
paragraph (4), the Secretary shall not consider the
value of any crop that--
``(i) is produced on land that is not eligible
for a policy or plan of insurance under subtitle A
or assistance under the noninsured crop assistance
program; or
``(ii) is subsequently planted on the same
land during the same crop year as the crop for
which disaster assistance is provided under this
subsection, except in areas in which double-
cropping is a normal practice, as determined by
the Secretary.'';
(C) in paragraph (3)(A)(ii)(III)--
(i) in the matter before item (aa), by
inserting ``50 percent of'' before ``the higher
of''; and
(ii) in item (aa), by striking ``guarantee'';
(D) in paragraph (4)--
(i) in subparagraph (A)(i)--
(I) by striking subclauses (I) and
(II) and inserting the following:
``(I) the actual production by crop
on a farm for purposes of determining
losses under subtitle A or the
noninsured crop assistance program;
and''; and
(II) by redesignating subclause
(III) as subclause (II);
(ii) in subparagraph (B)--
(I) in clause (i), by striking
``and'' at the end;
[[Page 122 STAT. 4216]]
(II) in clause (ii), by striking the
period at the end and inserting ``;
and''; and
(iii) by adding at the end the following:
``(iii) as the Secretary determines
appropriate, to reflect regional variations in a
manner consistent with the operation of the crop
insurance program under subtitle A and the
noninsured crop assistance program.'';
(E) in paragraph (5)--
(i) in the matter preceding subparagraph (A),
by striking ``the sum obtained by adding'';
(ii) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``the product'' and
inserting ``for each insurable
commodity, the product'';
(II) in clause (i), by striking
``greatest'' and inserting ``greater'';
(III) in clause (iii), by striking
``of the insurance price guarantee;
and'' and inserting ``of the price
election for the commodity used to
calculate an indemnity for an applicable
policy of insurance if an indemnity is
triggered; and''; and
(iii) in subparagraph (B)--
(I) in the matter preceding clause
(i), by striking ``the product'' and
inserting ``for each noninsurable crop,
the product'';
(II) in clause (i), by striking
``and'' at the end;
(III) by redesignating clause (ii)
as clause (iii); and
(IV) by inserting after clause (i)
the following:
``(ii) the acreage planted or prevented from
being planted for each crop; and''; and
(F) by adding at the end the following:
``(6) Production on the farm.--
``(A) Normal production on the farm.--The normal
production on the farm shall equal the sum of the
expected revenue for each crop on a farm as determined
under paragraph (5).
``(B) Actual production on the farm.--The actual
production on the farm shall equal the sum obtained by
adding--
``(i) for each insurable commodity on the
farm, the product obtained by multiplying--
``(I) 100 percent of the price
election for the commodity used to
calculate an indemnity for an applicable
policy of insurance if an indemnity is
triggered; and
``(II) the quantity of the commodity
produced on the farm, adjusted for
quality losses; and
``(ii) for each noninsurable commodity on a
farm, the product obtained by multiplying--
``(I) 100 percent of the noninsured
crop assistance program established
price for the commodity; and
``(II) the quantity of the commodity
produced on the farm, adjusted for
quality losses.''.
[[Page 122 STAT. 4217]]
(3) Waiver for socially disadvantaged, limited resource, or
beginning farmer or rancher.--Section 531(d)(5)(B)(ii) of the
Federal Crop Insurance Act (7 U.S.C. 1531(d)(5)(B)(ii)) is
amended by striking ``section'' and inserting ``subsection''.
(4) Tree assistance program.--Section 531(f)(2)(A) of the
Federal Crop Insurance Act (7 U.S.C. 1531(f)(2)(A)) is amended
by striking ``the Secretary shall provide'' and inserting ``the
Secretary shall use such sums as are necessary from the Trust
Fund to provide''.
(5) De minimis exception to risk management purchase
requirement.--Section 531(g) of the Federal Crop Insurance Act
(7 U.S.C. 1531(g)) is amended by adding at the end the
following:
``(6) De minimis exception.--
``(A) In general.--For <<NOTE: Waiver
authority.>> purposes of assistance under subsection
(b), at the option of an eligible producer on a farm,
the Secretary shall waive paragraph (1)--
``(i) in the case of a portion of the total
acreage of a farm of the eligible producer that is
not of economic significance on the farm, as
established by the Secretary; or
``(ii) in the case of a crop for which the
administrative fee required for the purchase of
noninsured crop disaster assistance coverage
exceeds 10 percent of the value of that coverage.
``(B) Treatment of acreage.--The Secretary shall not
consider the value of any crop exempted under
subparagraph (A) in calculating the supplemental revenue
assistance program guarantee under subsection (b)(3) and
the total farm revenue under subsection (b)(4).''.
(6) Risk management purchase requirement waiver for 2009
crop year.--Section 531(g) of the Federal Crop Insurance Act (7
U.S.C. 1531(g)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by striking ``(other than subsection (c))'' and
inserting ``(other than subsections (c) and
(d))''; and
(ii) in subparagraph (A), by inserting ``,
excluding grazing land'' after ``producers on the
farm'';
(B) in paragraph (2), by striking ``grazed,
planted,'' and inserting ``planted'';
(C) in paragraph (4), by striking ``(4)'' and all
that follows through ``In the case'' and inserting the
following:
``(4) Waivers for certain crop years.--
``(A) 2008 crop year.--In the case''; and
(D) by adding at the end the following:
``(B) 2009 crop year.--In <<NOTE: Deadline.>> the
case of an insurable commodity or noninsurable commodity
for the 2009 crop year that does not meet the
requirements of paragraph (1) and the relevant crop
insurance program sales closing date or noninsured crop
assistance program fee payment date was prior to August
14, 2008, the Secretary shall waive paragraph (1) if the
eligible producer of the insurable commodity or
noninsurable commodity pays a fee in an amount equal to
the applicable noninsured crop assistance program fee or
catastrophic risk protection plan fee
[[Page 122 STAT. 4218]]
required under paragraph (1) to the Secretary not later
than 90 days after the date of enactment of this
subparagraph.''.
(7) Payment limitations.--Section 531(h) of the Federal Crop
Insurance Act (7 U.S.C. 1531) is amended by adding at the end
the following:
``(5) Transition rule.--
Sections <<NOTE: Applicability.>> 1001, 1001A, 1001B, and 1001D
of the Food Security Act of 1985 (7 U.S.C. 1308 et seq.) as in
effect on September 30, 2007, shall continue to apply with
respect to 2008 crops.''.
(b) Trade Act of 1974.--
(1) Definitions.--Section 901(a) of the Trade Act of 1974
(19 U.S.C. 2497(a)) is amended--
(A) in paragraph (3)(B), by inserting ``has'' after
``on a farm that'';
(B) in paragraph (4), by striking ``section 1102 of
the Farm Security and Rural Investment Act of 2002'' and
all that follows through the end of the paragraph and
inserting ``under--
``(i) section 1102 or 1302 of the Farm
Security and Rural Investment Act of 2002 (7
U.S.C. 7912, 7952);
``(ii) section 1102 or 1301(6) of the Food,
Conservation, and Energy Act of 2008 (7 U.S.C.
8712, 8751(6)); or
``(iii) a successor section.'';
(C) in paragraph (5)(B)(ii), by striking ``, the
total loss'' and all that follows through the end of the
paragraph and adding ``the actual production on the farm
is less than 50 percent of the normal production on the
farm.'';
(D) in paragraph (7)--
(i) in subparagraph (A), by inserting ``for
sale or on-farm livestock feeding (including
native grassland intended for haying)'' after
``harvest''; and
(ii) in subparagraph (C), by inserting ``for
sale'' after ``crop'';
(E) by redesignating paragraphs (2) through (4), (5)
through (12), and (13) through (18) as paragraphs (3)
through (5), (7) through (14), and (16) through (21),
respectively;
(F) by inserting after paragraph (1) the following:
``(2) Actual production on the farm.--The term `actual
production on the farm' means the sum of the value of all crops
produced on the farm, as determined under subsection
(b)(6)(B).'';
(G) by inserting after paragraph (5) (as
redesignated by subparagraph (E)) the following:
``(6) Crop of economic significance.--The term `crop of
economic significance' shall have the uniform meaning given the
term by the Secretary for purposes of subsections (b)(1)(B) and
(g)(6).''; and
(H) by inserting after paragraph (14) (as
redesignated by subparagraph (E)) the following:
``(15) Normal production on the farm.--The term `normal
production on the farm' means the sum of the expected revenue
for all crops on the farm, as determined under subsection
(b)(6)(A).''.
[[Page 122 STAT. 4219]]
(2) Supplemental revenue assistance payments.--Section
901(b) of the Trade Act of 1974 (19 U.S.C. 2497(b)) is amended--
(A) in paragraph (1)--
(i) by striking ``(1) in general.--The
Secretary'' and inserting the following:
``(1) Payments.--
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Crop loss.--To be eligible for crop loss
assistance under this subsection, the actual production
on the farm for at least 1 crop of economic significance
shall be reduced by at least 10 percent due to disaster,
adverse weather, or disaster-related conditions.'';
(B) in paragraph (2), by adding at the end the
following:
``(C) Exclusion of subsequently planted crops.--In
calculating the disaster assistance program guarantee
under paragraph (3) and the total farm revenue under
paragraph (4), the Secretary shall not consider the
value of any crop that--
``(i) is produced on land that is not eligible
for a policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
or assistance under the noninsured crop assistance
program; or
``(ii) is subsequently planted on the same
land during the same crop year as the crop for
which disaster assistance is provided under this
subsection, except in areas in which double-
cropping is a normal practice, as determined by
the Secretary.'';
(C) in paragraph (3)(A)(ii)(III)--
(i) in the matter before item (aa), by
inserting ``50 percent of'' before ``the higher
of'';
(ii) in item (aa), by striking ``guarantee'';
(D) in paragraph (4)--
(i) in subparagraph (A)(i)--
(I) by striking subclauses (I) and
(II) and inserting the following:
``(I) the actual production by crop
on a farm for purposes of determining
losses under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) or the
noninsured crop assistance program;
and''; and
(II) by redesignating subclause
(III) as subclause (II);
(ii) in subparagraph (B)--
(I) in clause (i), by striking
``and'' at the end;
(II) in clause (ii), by striking the
period at the end and inserting ``;
and''; and
(iii) by adding at the end the following:
``(iii) as the Secretary determines
appropriate, to reflect regional variations in a
manner consistent with the operation of the
Federal crop insurance program under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) and the
noninsured crop assistance program.'';
(E) in paragraph (5)--
(i) in the matter preceding subparagraph (A),
by striking ``the sum obtained by adding'';
[[Page 122 STAT. 4220]]
(ii) in subparagraph (A)--
(I) in the matter preceding clause
(i), by striking ``the product'' and
inserting ``for each insurable
commodity, the product'';
(II) in clause (i), by striking
``greatest'' and inserting ``greater'';
(III) in clause (iii), by striking
``of the insurance price guarantee;
and'' and inserting ``of the price
election for the commodity used to
calculate an indemnity for an applicable
policy of insurance if an indemnity is
triggered; and''; and
(iii) in subparagraph (B)--
(I) in the matter preceding clause
(i), by striking ``the product'' and
inserting ``for each noninsurable crop,
the product'';
(II) in clause (i), by striking
``and'' at the end;
(III) by redesignating clause (ii)
as clause (iii); and
(IV) by inserting after clause (i)
the following:
``(ii) the acreage planted or prevented from
being planted for each crop; and''; and
(F) by adding at the end the following:
``(6) Production on the farm.--
``(A) Normal production on the farm.--The normal
production on the farm shall equal the sum of the
expected revenue for each crop on a farm as determined
under paragraph (5).
``(B) Actual production on the farm.--The actual
production on the farm shall equal the sum obtained by
adding--
``(i) for each insurable commodity on the
farm, the product obtained by multiplying--
``(I) 100 percent of the price
election for the commodity used to
calculate an indemnity for an applicable
policy of insurance if an indemnity is
triggered; and
``(II) the quantity of the commodity
produced on the farm, adjusted for
quality losses; and
``(ii) for each noninsurable commodity on a
farm, the product obtained by multiplying--
``(I) 100 percent of the noninsured
crop assistance program established
price for the commodity; and
``(II) the quantity of the commodity
produced on the farm, adjusted for
quality losses.''.
(3) Waiver for socially disadvantaged, limited resource, or
beginning farmer or rancher.--Section 901(d)(5)(B)(ii) of the
Trade Act of 1974 (19 U.S.C. 2497(d)(5)(B)(ii)) is amended by
striking ``section'' and inserting ``subsection''.
(4) Tree assistance program.--Section 901(f)(2)(A) of the
Trade Act of 1974 (19 U.S.C. 2497(f)(2)(A)) is amended by
striking ``the Secretary shall provide'' and inserting ``the
Secretary shall use such sums as are necessary from the Trust
Fund to provide''.
[[Page 122 STAT. 4221]]
(5) De minimis exception to risk management purchase
requirement.--Section 901(g) of the Trade Act of 1974 (19 U.S.C.
2497(g)) is amended by adding at the end the following:
``(6) De minimis exception.--
``(A) In general.--For <<NOTE: Waiver
authority.>> purposes of assistance under subsection
(b), at the option of an eligible producer on a farm,
the Secretary shall waive paragraph (1)--
``(i) in the case of a portion of the total
acreage of a farm of the eligible producer that is
not of economic significance on the farm, as
established by the Secretary; or
``(ii) in the case of a crop for which the
administrative fee required for the purchase of
noninsured crop disaster assistance coverage
exceeds 10 percent of the value of that coverage.
``(B) Treatment of acreage.--The Secretary shall not
consider the value of any crop exempted under
subparagraph (A) in calculating the supplemental revenue
assistance program guarantee under subsection (b)(3) and
the total farm revenue under subsection (b)(4).''.
(6) Risk management purchase requirement waiver for 2009
crop year.--Section 901(g) of the Trade Act of 1974 (19 U.S.C.
2497(g)) is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by striking ``(other than subsection (c))'' and
inserting ``(other than subsections (c) and
(d))''; and
(ii) in subparagraph (A), by inserting ``,
excluding grazing land'' after ``producers on the
farm'';
(B) in paragraph (2), by striking ``grazed,
planted,'' and inserting ``planted'';
(C) in paragraph (4), by striking ``(4)'' and all
that follows through ``In the case'' and inserting the
following:
``(4) Waivers for certain crop years.--
``(A) 2008 crop year.--In the case''; and
(D) by adding at the end the following:
``(B) 2009 crop year.--In <<NOTE: Deadline.>> the
case of an insurable commodity or noninsurable commodity
for the 2009 crop year that does not meet the
requirements of paragraph (1) and the relevant crop
insurance program sales closing date or noninsured crop
assistance program fee payment date was prior to August
14, 2008, the Secretary shall waive paragraph (1) if the
eligible producer of the insurable commodity or
noninsurable commodity pays a fee in an amount equal to
the applicable noninsured crop assistance program fee or
catastrophic risk protection plan fee required under
paragraph (1) to the Secretary not later than 90 days
after the date of enactment of this subparagraph.''.
(7) Payment limitations.--Section 901(h) of the Trade Act of
1974 (19 U.S.C. 2497(h)) is amended by adding at the end the
following:
``(5) Transition rule.--
Sections <<NOTE: Applicability.>> 1001, 1001A, 1001B, and 1001D
of the Food Security Act of 1985 (7 U.S.C. 1308 et
[[Page 122 STAT. 4222]]
seq.) as in effect on September 30, 2007, shall continue to
apply with respect to 2008 crops.''.
Approved October 13, 2008.
LEGISLATIVE HISTORY--H.R. 6849:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 110-881 (Comm. on Agriculture).
CONGRESSIONAL RECORD, Vol. 154 (2008):
Sept. 24, considered and passed House.
Sept. 29, considered and passed Senate, amended. House
concurred in Senate amendment.