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Full Text of this Amendment
SA 3817. Mr. DURBIN submitted an amendment intended to be proposed to amendment SA 3500 proposed by Mr. Harkin (for himself, Mr. Chambliss, Mr. Baucus, and Mr. Grassley) to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:
Beginning on page 108, strike line 3 and all that follows through page 123, line 8 and insert the following:
(A) the 2009, 2010, 2011, and 2012 crop years;
(B) the 2010, 2011, and 2012 crop years;
(C) the 2011 and 2012 crop years; or
(D) the 2012 crop year.
(2) ELECTION; TIME FOR ELECTION.--
(A) IN GENERAL.--The Secretary shall provide notice to producers regarding the opportunity to make the election described in paragraph (1).
(B) NOTICE REQUIREMENTS.--The notice shall include--
(i) notice of the opportunity of the producers on a farm to make the election; and
(ii) information regarding the manner in which the election must be made and the time periods and manner in which notice of the election must be submitted to the Secretary.
(3) ELECTION DEADLINE.--Within the time period and in the manner prescribed pursuant to paragraph (2), the producers on a farm shall submit to the Secretary notice of the election made under paragraph (1).
(4) EFFECT OF FAILURE TO MAKE ELECTION.--If the producers on a farm fail to make the election under paragraph (1) or fail to timely notify the Secretary of the election made, as required by paragraph (3), the producers shall be deemed to have made the election to receive payments and loans under subtitle A for all covered commodities and peanuts on the farm for the applicable crop year.
(b) Payments Required.--
(1) IN GENERAL.--In the case of producers on a farm who make the election under subsection (a) to receive average crop revenue payments, for any of the 2009 through 2012 crop years for all covered commodities and peanuts, the Secretary shall make average crop revenue payments available to the producers on a farm in accordance with this subsection.
(2) FIXED PAYMENT COMPONENT.--Subject to paragraph (3), in the case of producers on a farm described in paragraph (1), the Secretary shall make average crop revenue payments available to the producers on a farm for each crop year in an amount equal to not less than the product obtained by multiplying--
(A) $15 per acre; and
(B) 100 percent of the lower of--
(i) the quantity of base acres on the farm for all covered commodities and peanuts (as adjusted in accordance with the terms and conditions of section 1101 or 1302, as determined by the Secretary); or
(ii) the average of the acreage planted or considered planted to the covered commodity or peanuts for harvest on the farm during the 2002 through 2007 crop years.
(3) REVENUE COMPONENT.--
(A) IN GENERAL.--Subject to subparagraph (B), the Secretary shall increase the amount of the average crop revenue payments available to the producers on a farm in a State for a crop year if--
(i) the actual State revenue for the crop year for the covered commodity or peanuts in the State determined under subsection (c); is less than
(ii) the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d).
(B) INDIVIDUAL LOSS.--The Secretary shall increase the amount of the average crop revenue payments available to the producers on a farm in a State for a crop year only if (as determined by the Secretary)--
(i) the sum obtained by adding--
(I) the amount determined by multiplying--
(aa) the actual yield for the covered commodity or peanuts of the producers on the farm; and
(bb) the average crop revenue program harvest price for the crop year for the covered commodity or peanuts determined under subsection (c)(3); and
(II) the amount of the crop insurance premium for the crop year for the covered commodity or peanuts of the producers on the farm; is less than
(ii) the amount determined by multiplying--
(I) the yield used to calculate crop insurance coverage for the covered commodity or peanuts on the farm under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (commonly referred to as ``actual production history''); and
(II) the pre-planting price for the applicable crop year for the covered or peanuts in a State determined under subsection (d)(3).
(4) TIME FOR PAYMENTS.--In the case of each of the 2009 through 2012 crop years, the Secretary shall make--
(A) [__ percent] of the total quantity of payments under the fixed payment component described in paragraph (2) not earlier than October 1 of the calendar year in which the crop of the covered commodity or peanuts is harvested;
(B) the remainder of payments under the fixed payment component described in paragraph (2) on October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity or peanuts; and
(C) payments under the revenue component described in paragraph (3) beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity or peanuts.
(c) Actual State Revenue.--
(1) IN GENERAL.--For purposes of subsection (b)(3)(A), the amount of the actual State revenue for a crop year of a covered commodity shall equal the product obtained by multiplying--
(A) the actual State yield for each planted acre for the crop year for the covered commodity or peanuts determined under paragraph (2); and
(B) the average crop revenue program harvest price for the crop year for the covered commodity or peanuts determined under paragraph (3).
(2) ACTUAL STATE YIELD.--For purposes of paragraph (1)(A) and subsection (d)(1)(A), the actual State yield for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal (as determined by the Secretary)--
(A) the quantity of the covered commodity or peanuts that is produced in the State during the crop year; divided by
(B) the number of acres that are planted to the covered commodity or peanuts in the State during the crop year.
(3) AVERAGE CROP REVENUE PROGRAM HARVEST PRICE.--
(A) IN GENERAL.--For purposes of paragraph (1)(B), subject to subparagraph (B), the average crop revenue program harvest price for a crop year for a covered commodity or peanuts in a State shall equal the harvest price that is used to calculate revenue under revenue coverage plans that are offered for the crop year for the covered commodity or peanuts in the State under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(B) ASSIGNED PRICE.--If the Secretary cannot establish the harvest price for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A), the Secretary shall assign a price for the covered commodity or peanuts in the State on the basis of comparable price data.
(d) Average Crop Revenue Program Guarantee.--
(1) IN GENERAL.--Except as provided in paragraph (4), the average crop revenue program guarantee for a crop year for a covered commodity or peanuts in a State shall equal 90 percent of the product obtained by multiplying--
(A) the expected State yield for each planted acre for the crop year for the covered commodity or peanuts in a State determined under paragraph (2); and
(B) the average crop revenue program pre-planting price for the crop year for the covered commodity or peanuts determined under paragraph (3).
(2) EXPECTED STATE YIELD.--
(A) IN GENERAL.--For purposes of paragraph (1)(A), subject to subparagraph (B), the expected State yield for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal the projected yield for the crop year for the covered commodity or peanuts in the State, based on a linear regression trend of the yield per acre planted to the covered commodity or peanuts in the State during the 1980 through 2006 period using National Agricultural Statistics Service data.
(B) ASSIGNED YIELD.--If the Secretary cannot establish the expected State yield for each planted acre for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A) or if the linear regression trend of the yield per acre planted to the covered commodity or peanuts in the State (as determined under subparagraph (A)) is negative, the Secretary shall assign an expected State yield for each planted acre for the crop year for the covered commodity or peanuts
in the State on the basis of expected State yields for planted acres for the crop year for the covered commodity or peanuts in similar States.
(3) AVERAGE CROP REVENUE PROGRAM PRE-PLANTING PRICE.--
(A) IN GENERAL.--For purposes of paragraph (1)(B), subject to subparagraphs (B) and (C), the average crop revenue program pre-planting price for a crop year for a covered commodity or peanuts in a State shall equal the average price that is used to calculate revenue under revenue coverage plans that are offered for the covered commodity in the State under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the crop year and the preceding 2 crop years.
(B) ASSIGNED PRICE.--If the Secretary cannot establish the pre-planting price for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A), the Secretary shall assign a price for the covered commodity or peanuts in the State on the basis of comparable price data.
(C) MINIMUM AND MAXIMUM PRICE.--In the case of each of the 2010 through 2012 crop years, the average crop revenue program pre-planting price for a crop year for a covered commodity or peanuts under subparagraph (A) shall not decrease or increase more than 15 percent from the pre-planting price for the preceding year.
(4) STATES WITH IRRIGATED AND NONIRRIGATED LAND.--In the case of a State in which at least 25 percent of the planted acreage in the State is under irrigation and at least 25 percent of the planted acreage in the State is not under irrigation, the Secretary shall calculate a separate average crop revenue program guarantee for the irrigated and nonirrigated areas of the State.
(e) Payment Amount.--Subject to subsection (f), if average crop revenue payments are required to be paid for any of the 2009 through 2012 crop years of a covered commodity or peanuts under subsection (b)(3), in addition to the amount payable under subsection (b)(2), the amount of the average crop revenue payment to be paid to the producers on the farm for the crop year under this section shall be increased by an amount equal to the product obtained by multiplying--
(1) the difference between--
(A) the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d); and
(B) the actual State revenue from the crop year for the covered commodity or peanuts in the State determined under subsection (c);
(2) 100 percent of the acreage planted or considered planted to the covered commodity or peanuts for harvest on the farm in the crop year;
(3) the quotient obtained by dividing--
(A) the expected county yield for the crop year, determined for the county in the same manner as the expected State yield is determined for a State under subsection (d)(2); by
(B) the expected State yield for the crop year, as determined under subsection (d)(2); and
(4) 90 percent.
(f) Limitation on Payment Amount.--The amount of the average crop revenue payment to be paid to the producers on a farm for a crop year of a covered commodity or peanuts under subsection (e) shall not exceed 30 percent of the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in a State determined under subsection (d)(1).
(g) Recourse Loans.--For each of the 2009 through 2012 crops of a covered commodity or peanuts, the Secretary shall make available to producers on a farm who elect to receive payments under this section recourse loans, as determined by the Secretary, on any production of the covered commodity.
SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP REVENUE PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) REQUIREMENTS.--Before the producers on a farm may receive average crop revenue payments with respect to the farm, the producers shall agree, and in the case of subparagraph (C), the Farm Service Agency shall certify, 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.); and
(C) that the individuals or entities receiving payments are producers;
(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 peanuts for the farm under part III of subtitle A, for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use (including land subdivided and developed into residential units or other nonfarming uses, or that is otherwise no longer intended to be used in conjunction with a farming operation), as determined by the Secretary;
and
(E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D).
(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 average crop revenue payments are made shall result in the termination of the payments, unless the transferee or owner of the farm 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 an average crop revenue payment 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.--
(1) IN GENERAL.--As a condition on the receipt of any benefits under this subtitle, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.
(2) PENALTIES.--No penalty with respect to benefits under subtitle shall be assessed against the producers on a farm for an inaccurate acreage report unless the producers on the farm knowingly and willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the sharing of average crop revenue payments among the producers on a farm on a fair and equitable basis.
(f) Audit and Report.--Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall--
(1) conduct an audit of average crop revenue payments; and
(2) submit to Congress a report that describes the results of that audit.
SEC. 1403. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or crop may be planted on base acres on a farm for which the producers on a farm elect to receive average crop revenue payments (referred to in this section as ``base acres'').
(b) Limitations Regarding Certain Commodities.--
(1) GENERAL LIMITATION.--The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres unless the commodity, if planted, is destroyed before harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS.--The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohibited on base acres.
(3) COVERED AGRICULTURAL COMMODITIES.--Paragraphs (1) and (2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of double-cropping of covered commodities with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on base acres, except that average crop revenue payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that--
(A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and
(B) average crop revenue payments shall be reduced by an acre for each acre planted to such agricultural commodity.
(d) Planting Transferability Pilot Project.--Producers on a farm that elect to receive average crop revenue payments shall be eligible to participate in the pilot program established under section 1106(d) under the same terms and conditions as producers that receive direct payments and counter-cyclical payments.
(e) Production of Fruits or Vegetables for Processing.--
(1) IN GENERAL.--Subject to paragraphs (2) through (4), effective beginning with the 2009 crop
On page 1374, between lines 14 and 15, insert the following:
``(iii) 100 percent of the amount of the revenue component of any average crop revenue payments made to the producer under section 1401(b)(3) of the Food and Energy Security Act of 2007;''.
(As printed in the Congressional Record for the Senate on Dec 6, 2007.)
Beginning on page 108, strike line 3 and all that follows through page 123, line 8 and insert the following:
(A) the 2009, 2010, 2011, and 2012 crop years;
(B) the 2010, 2011, and 2012 crop years;
(C) the 2011 and 2012 crop years; or
(D) the 2012 crop year.
(2) ELECTION; TIME FOR ELECTION.--
(A) IN GENERAL.--The Secretary shall provide notice to producers regarding the opportunity to make the election described in paragraph (1).
(B) NOTICE REQUIREMENTS.--The notice shall include--
(i) notice of the opportunity of the producers on a farm to make the election; and
(ii) information regarding the manner in which the election must be made and the time periods and manner in which notice of the election must be submitted to the Secretary.
(3) ELECTION DEADLINE.--Within the time period and in the manner prescribed pursuant to paragraph (2), the producers on a farm shall submit to the Secretary notice of the election made under paragraph (1).
(4) EFFECT OF FAILURE TO MAKE ELECTION.--If the producers on a farm fail to make the election under paragraph (1) or fail to timely notify the Secretary of the election made, as required by paragraph (3), the producers shall be deemed to have made the election to receive payments and loans under subtitle A for all covered commodities and peanuts on the farm for the applicable crop year.
(b) Payments Required.--
(1) IN GENERAL.--In the case of producers on a farm who make the election under subsection (a) to receive average crop revenue payments, for any of the 2009 through 2012 crop years for all covered commodities and peanuts, the Secretary shall make average crop revenue payments available to the producers on a farm in accordance with this subsection.
(2) FIXED PAYMENT COMPONENT.--Subject to paragraph (3), in the case of producers on a farm described in paragraph (1), the Secretary shall make average crop revenue payments available to the producers on a farm for each crop year in an amount equal to not less than the product obtained by multiplying--
(A) $15 per acre; and
(B) 100 percent of the lower of--
(i) the quantity of base acres on the farm for all covered commodities and peanuts (as adjusted in accordance with the terms and conditions of section 1101 or 1302, as determined by the Secretary); or
(ii) the average of the acreage planted or considered planted to the covered commodity or peanuts for harvest on the farm during the 2002 through 2007 crop years.
(3) REVENUE COMPONENT.--
(A) IN GENERAL.--Subject to subparagraph (B), the Secretary shall increase the amount of the average crop revenue payments available to the producers on a farm in a State for a crop year if--
(i) the actual State revenue for the crop year for the covered commodity or peanuts in the State determined under subsection (c); is less than
(ii) the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d).
(B) INDIVIDUAL LOSS.--The Secretary shall increase the amount of the average crop revenue payments available to the producers on a farm in a State for a crop year only if (as determined by the Secretary)--
(i) the sum obtained by adding--
(I) the amount determined by multiplying--
(aa) the actual yield for the covered commodity or peanuts of the producers on the farm; and
(bb) the average crop revenue program harvest price for the crop year for the covered commodity or peanuts determined under subsection (c)(3); and
(II) the amount of the crop insurance premium for the crop year for the covered commodity or peanuts of the producers on the farm; is less than
(ii) the amount determined by multiplying--
(I) the yield used to calculate crop insurance coverage for the covered commodity or peanuts on the farm under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (commonly referred to as ``actual production history''); and
(II) the pre-planting price for the applicable crop year for the covered or peanuts in a State determined under subsection (d)(3).
(4) TIME FOR PAYMENTS.--In the case of each of the 2009 through 2012 crop years, the Secretary shall make--
(A) [__ percent] of the total quantity of payments under the fixed payment component described in paragraph (2) not earlier than October 1 of the calendar year in which the crop of the covered commodity or peanuts is harvested;
(B) the remainder of payments under the fixed payment component described in paragraph (2) on October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity or peanuts; and
(C) payments under the revenue component described in paragraph (3) beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity or peanuts.
(c) Actual State Revenue.--
(1) IN GENERAL.--For purposes of subsection (b)(3)(A), the amount of the actual State revenue for a crop year of a covered commodity shall equal the product obtained by multiplying--
(A) the actual State yield for each planted acre for the crop year for the covered commodity or peanuts determined under paragraph (2); and
(B) the average crop revenue program harvest price for the crop year for the covered commodity or peanuts determined under paragraph (3).
(2) ACTUAL STATE YIELD.--For purposes of paragraph (1)(A) and subsection (d)(1)(A), the actual State yield for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal (as determined by the Secretary)--
(A) the quantity of the covered commodity or peanuts that is produced in the State during the crop year; divided by
(B) the number of acres that are planted to the covered commodity or peanuts in the State during the crop year.
(3) AVERAGE CROP REVENUE PROGRAM HARVEST PRICE.--
(A) IN GENERAL.--For purposes of paragraph (1)(B), subject to subparagraph (B), the average crop revenue program harvest price for a crop year for a covered commodity or peanuts in a State shall equal the harvest price that is used to calculate revenue under revenue coverage plans that are offered for the crop year for the covered commodity or peanuts in the State under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(B) ASSIGNED PRICE.--If the Secretary cannot establish the harvest price for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A), the Secretary shall assign a price for the covered commodity or peanuts in the State on the basis of comparable price data.
(d) Average Crop Revenue Program Guarantee.--
(1) IN GENERAL.--Except as provided in paragraph (4), the average crop revenue program guarantee for a crop year for a covered commodity or peanuts in a State shall equal 90 percent of the product obtained by multiplying--
(A) the expected State yield for each planted acre for the crop year for the covered commodity or peanuts in a State determined under paragraph (2); and
(B) the average crop revenue program pre-planting price for the crop year for the covered commodity or peanuts determined under paragraph (3).
(2) EXPECTED STATE YIELD.--
(A) IN GENERAL.--For purposes of paragraph (1)(A), subject to subparagraph (B), the expected State yield for each planted acre for a crop year for a covered commodity or peanuts in a State shall equal the projected yield for the crop year for the covered commodity or peanuts in the State, based on a linear regression trend of the yield per acre planted to the covered commodity or peanuts in the State during the 1980 through 2006 period using National Agricultural Statistics Service data.
(B) ASSIGNED YIELD.--If the Secretary cannot establish the expected State yield for each planted acre for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A) or if the linear regression trend of the yield per acre planted to the covered commodity or peanuts in the State (as determined under subparagraph (A)) is negative, the Secretary shall assign an expected State yield for each planted acre for the crop year for the covered commodity or peanuts
in the State on the basis of expected State yields for planted acres for the crop year for the covered commodity or peanuts in similar States.
(3) AVERAGE CROP REVENUE PROGRAM PRE-PLANTING PRICE.--
(A) IN GENERAL.--For purposes of paragraph (1)(B), subject to subparagraphs (B) and (C), the average crop revenue program pre-planting price for a crop year for a covered commodity or peanuts in a State shall equal the average price that is used to calculate revenue under revenue coverage plans that are offered for the covered commodity in the State under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the crop year and the preceding 2 crop years.
(B) ASSIGNED PRICE.--If the Secretary cannot establish the pre-planting price for a crop year for a covered commodity or peanuts in a State in accordance with subparagraph (A), the Secretary shall assign a price for the covered commodity or peanuts in the State on the basis of comparable price data.
(C) MINIMUM AND MAXIMUM PRICE.--In the case of each of the 2010 through 2012 crop years, the average crop revenue program pre-planting price for a crop year for a covered commodity or peanuts under subparagraph (A) shall not decrease or increase more than 15 percent from the pre-planting price for the preceding year.
(4) STATES WITH IRRIGATED AND NONIRRIGATED LAND.--In the case of a State in which at least 25 percent of the planted acreage in the State is under irrigation and at least 25 percent of the planted acreage in the State is not under irrigation, the Secretary shall calculate a separate average crop revenue program guarantee for the irrigated and nonirrigated areas of the State.
(e) Payment Amount.--Subject to subsection (f), if average crop revenue payments are required to be paid for any of the 2009 through 2012 crop years of a covered commodity or peanuts under subsection (b)(3), in addition to the amount payable under subsection (b)(2), the amount of the average crop revenue payment to be paid to the producers on the farm for the crop year under this section shall be increased by an amount equal to the product obtained by multiplying--
(1) the difference between--
(A) the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in the State determined under subsection (d); and
(B) the actual State revenue from the crop year for the covered commodity or peanuts in the State determined under subsection (c);
(2) 100 percent of the acreage planted or considered planted to the covered commodity or peanuts for harvest on the farm in the crop year;
(3) the quotient obtained by dividing--
(A) the expected county yield for the crop year, determined for the county in the same manner as the expected State yield is determined for a State under subsection (d)(2); by
(B) the expected State yield for the crop year, as determined under subsection (d)(2); and
(4) 90 percent.
(f) Limitation on Payment Amount.--The amount of the average crop revenue payment to be paid to the producers on a farm for a crop year of a covered commodity or peanuts under subsection (e) shall not exceed 30 percent of the average crop revenue program guarantee for the crop year for the covered commodity or peanuts in a State determined under subsection (d)(1).
(g) Recourse Loans.--For each of the 2009 through 2012 crops of a covered commodity or peanuts, the Secretary shall make available to producers on a farm who elect to receive payments under this section recourse loans, as determined by the Secretary, on any production of the covered commodity.
SEC. 1402. PRODUCER AGREEMENT AS CONDITION OF AVERAGE CROP REVENUE PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) REQUIREMENTS.--Before the producers on a farm may receive average crop revenue payments with respect to the farm, the producers shall agree, and in the case of subparagraph (C), the Farm Service Agency shall certify, 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.); and
(C) that the individuals or entities receiving payments are producers;
(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 peanuts for the farm under part III of subtitle A, for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use (including land subdivided and developed into residential units or other nonfarming uses, or that is otherwise no longer intended to be used in conjunction with a farming operation), as determined by the Secretary;
and
(E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D).
(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 average crop revenue payments are made shall result in the termination of the payments, unless the transferee or owner of the farm 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 an average crop revenue payment 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.--
(1) IN GENERAL.--As a condition on the receipt of any benefits under this subtitle, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm.
(2) PENALTIES.--No penalty with respect to benefits under subtitle shall be assessed against the producers on a farm for an inaccurate acreage report unless the producers on the farm knowingly and willfully falsified the acreage report.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the sharing of average crop revenue payments among the producers on a farm on a fair and equitable basis.
(f) Audit and Report.--Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall--
(1) conduct an audit of average crop revenue payments; and
(2) submit to Congress a report that describes the results of that audit.
SEC. 1403. PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or crop may be planted on base acres on a farm for which the producers on a farm elect to receive average crop revenue payments (referred to in this section as ``base acres'').
(b) Limitations Regarding Certain Commodities.--
(1) GENERAL LIMITATION.--The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres unless the commodity, if planted, is destroyed before harvest.
(2) TREATMENT OF TREES AND OTHER PERENNIALS.--The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohibited on base acres.
(3) COVERED AGRICULTURAL COMMODITIES.--Paragraphs (1) and (2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and pulse crops).
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection--
(1) in any region in which there is a history of double-cropping of covered commodities with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on base acres, except that average crop revenue payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that--
(A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and
(B) average crop revenue payments shall be reduced by an acre for each acre planted to such agricultural commodity.
(d) Planting Transferability Pilot Project.--Producers on a farm that elect to receive average crop revenue payments shall be eligible to participate in the pilot program established under section 1106(d) under the same terms and conditions as producers that receive direct payments and counter-cyclical payments.
(e) Production of Fruits or Vegetables for Processing.--
(1) IN GENERAL.--Subject to paragraphs (2) through (4), effective beginning with the 2009 crop
On page 1374, between lines 14 and 15, insert the following:
``(iii) 100 percent of the amount of the revenue component of any average crop revenue payments made to the producer under section 1401(b)(3) of the Food and Energy Security Act of 2007;''.
(As printed in the Congressional Record for the Senate on Dec 6, 2007.)
