7 U.S. Code § 9017 - Agriculture risk coverage

Status message

There is 1 Update Pending. Select the tab below to view.
(a) Agriculture risk coverage payments
If all of the producers on a farm make the election under section 9015(a) of this title 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 2014 through 2018 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
(1) County coverage
In the case of county coverage, 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—
(A) the actual average county yield per planted acre for the covered commodity, as determined by the Secretary; and
(B) the higher of—
(i) the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or
(ii) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II.
(2) Individual coverage
In the case of individual coverage, the amount of the actual crop revenue for a producer on a farm for a crop year shall be based on the producer’s share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:
(A) For each covered commodity, the product obtained by multiplying—
(i) the total production of the covered commodity on such farms, as determined by the Secretary; and
(ii) the higher of—
(I) the national average market price received by producers during the 12-month marketing year, as determined by the Secretary; or
(II) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II.
(B) The sum of the amounts determined under subparagraph (A) for all covered commodities on such farms.
(C) The quotient obtained by dividing the amount determined under subparagraph (B) by the total planted acres of all covered commodities on such farms.
(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 for county coverage
In the case of county coverage, the benchmark revenue shall be the product obtained by multiplying—
(A) subject to paragraph (4), 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 (5), the national average market price received by producers during the 12-month marketing year for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.
(3) Benchmark revenue for individual coverage
In the case of individual coverage, the benchmark revenue for a producer on a farm for a crop year shall be based on the producer’s share of all covered commodities planted on all farms for which individual coverage has been selected and in which the producer has an interest, to be determined by the Secretary as follows:
(A) For each covered commodity for each of the most recent 5 crop years, the product obtained by multiplying—
(i) subject to paragraph (4), the yield per planted acre for the covered commodity on such farms, as determined by the Secretary; by
(ii) subject to paragraph (5), the national average market price received by producers during the 12-month marketing year.
(B) For each covered commodity, the average of the revenues determined under subparagraph (A) for the most recent 5 crop years, excluding each of the crop years with the highest and lowest revenues.
(C) For each of the 2014 through 2018 crop years, the sum of the amounts determined under subparagraph (B) for all covered commodities on such farms, but adjusted to reflect the ratio between the total number of acres planted on such farms to a covered commodity and the total acres of all covered commodities planted on such farms.
(4) 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) or (3)(A)(i) shall be 70 percent of the transitional yield.
(5) Reference price
If the national average market price received by producers during the 12-month marketing year 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) or (3)(A)(ii).
(d) Payment rate
The payment rate for a covered commodity, in the case of county coverage, or a farm, in the case of individual coverage, 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 2014 through 2018 crop years, the amount of the agriculture risk coverage payment for the crop year shall be determined by multiplying—
(1) the payment rate determined under subsection (d); and
(2) the payment acres determined under section 9014 of this title.
(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) to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities;
(3) in the case of individual coverage, assign an average yield for a farm on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary determines that the farm has planted acreage in a quantity that is insufficient to calculate a representative average yield for the farm; and
(4) in the case of county coverage, assign an actual or benchmark county yield for each planted acre for the crop year for the covered commodity on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if—
(A) the Secretary cannot establish the actual or benchmark county yield for each planted acre for a crop year for a covered commodity in the county in accordance with subsection (b)(1) or (c)(2); or
(B) the yield determined under subsection (b)(1) or (c)(2) is an unrepresentative average yield for the county, as determined by the Secretary.

Source

(Pub. L. 113–79, title I, § 1117,Feb. 7, 2014, 128 Stat. 669.)

The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.

7 USCDescription of ChangeSession YearPublic LawStatutes at Large
§ 9017new2014113-79 [Sec.] 1117128 Stat. 669

 

LII has no control over and does not endorse any external Internet site that contains links to or references LII.