7 U.S.C. § 9016 — Price loss coverage

Page 2267 TITLE 7—AGRICULTURE § 9016 subsection (a) to reflect the designation of seed cotton as a covered commodity for that crop year under section 9011(6)(B) of this title. (2) Effect of failure to make unanimous elec- tion If all the producers on a farm fail to make a unanimous election under paragraph (1), the producers on the farm shall be deemed to have elected price loss coverage under section 9016 of this title for acres allocated on the farm to seed cotton. (h) Option to change election (1) In general For the 2021 crop year and each crop year thereafter, all of the producers on a farm may change the election under subsection (a), sub- section (c), or this subsection, as applicable, to price loss coverage or agriculture risk cov- erage, as applicable. (2) Applicability An election change under paragraph (1) shall apply to— (A) the crop year for which the election change is made; and (B) each crop year thereafter until another election change is made under that para- graph. (Pub. L. 113–79, title I, § 1115, Feb. 7, 2014, 128 Stat. 667; Pub. L. 115–123, div. F, § 60101(a)(7), Feb. 9, 2018, 132 Stat. 309; Pub. L. 115–334, title I, § 1105, Dec. 20, 2018, 132 Stat. 4503.) Editorial Notes CODIFICATION Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of Pub. L. 113–79 applicable to the 2024 crop year for that covered commodity, see section 102(c)(1) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title. AMENDMENTS 2018—Subsec. (a). Pub. L. 115–334, § 1105(1), substituted ‘‘For the 2014 through 2018 crop years (except as pro- vided in subsection (g)) and for the 2019 through 2023 crop years (subject to subsection (h))’’ for ‘‘Except as provided in subsection (g), for the 2014 through 2018 crop years’’ in introductory provisions. Pub. L. 115–123, § 60101(a)(7)(A), substituted ‘‘Except as provided in subsection (g), for’’ for ‘‘For’’ in introduc- tory provisions. Subsec. (b). Pub. L. 115–334, § 1105(2), substituted ‘‘In the election under subsection (a) or (h), as applicable, the producers on a farm that elect to obtain agri- culture risk coverage’’ for ‘‘In the election under sub- section (a), the producers on a farm that elect under paragraph (2) of such subsection to obtain agriculture risk coverage under section 9017 of this title’’ in intro- ductory provisions. Subsec. (c). Pub. L. 115–334, § 1105(3)(A), inserted ‘‘or the 2019 crop year, as applicable’’ after ‘‘the 2014 crop year’’ in introductory provisions. Subsec. (c)(1). Pub. L. 115–334, § 1105(3)(B), inserted ‘‘or the 2019 crop year, as applicable,’’ after ‘‘the 2014 crop year’’. Subsec. (c)(2). Pub. L. 115–334, § 1105(3)(C), added par. (2) and struck out former par. (2) which read as follows: ‘‘the producers on the farm shall be deemed to have elected price loss coverage under section 9016 of this title for all covered commodities on the farm for the 2015 through 2018 crop years.’’ Subsec. (g). Pub. L. 115–123, § 60101(a)(7)(B), added sub- sec. (g). Subsec. (g)(1). Pub. L. 115–334, § 1105(4), inserted ‘‘for the 2018 crop year,’’ after ‘‘allocated to seed cotton on a farm,’’. Subsec. (h). Pub. L. 115–334, § 1105(5), added subsec. (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–123 applicable beginning with the 2018 crop year, see section 60101(a)(13) of Pub. L. 115–123, set out as a note under section 9011 of this title. § 9016. Price loss coverage (a) Price loss coverage payments If all of the producers on a farm make the election under subsection (a) or (h) of section 9015 of this title to obtain price loss coverage or, subject to subsection (c)(1) of such section, are deemed to have made such election under sub- section (c)(2) of such section, the Secretary shall make price loss coverage payments to producers on the farm on a covered commodity-by-cov- ered-commodity basis if the Secretary deter- mines that— (1) for any of the 2014 through 2018 crop years— (A) the effective price for the covered com- modity for the crop year; is less than (B) the reference price for the covered commodity for the crop year; or (2) for any of the 2019 through 2023 crop years— (A) the effective price for the covered com- modity for the crop year; is less than (B) 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 national average market price re- ceived by producers during the 12-month mar- keting year for the covered commodity, as de- termined by the Secretary; or (2) the national average loan rate for a mar- keting assistance loan for the covered com- modity in effect for such crop year under sub- chapter II. (c) Payment rate (1) In general (A) 2014 through 2018 crop years For the 2014 through 2018 crop years, the payment rate shall be equal to the difference between— (i) the reference price for the covered commodity; and (ii) the effective price determined under subsection (b) for the covered commodity. (B) 2019 through 2023 crop years For the 2019 through 2023 crop years, the payment rate shall be equal to the difference between— (i) the effective reference price for the covered commodity; and (ii) the effective price determined under subsection (b) for the covered commodity. Page 2268 TITLE 7—AGRICULTURE § 9016 (2) Announcement Not later than 30 days after the end of each applicable 12-month marketing year for each covered commodity, the Secretary shall pub- lish the payment rate determined under para- graph (1). (3) Insufficient data In the case of a covered commodity, such as temperate japonica rice, for which the Sec- retary cannot determine the payment rate for the most recent 12-month marketing year by the date described in paragraph (2) due to in- sufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered com- modity, the Secretary shall publish the pay- ment rate as soon as practicable after the marketing year data are made available. (d) Payment amount If price loss coverage payments are required to be provided under this section for any of the 2014 through 2025 crop years for a covered com- modity, 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 com- modity under subsection (c); (2) the payment yield for the covered com- modity; and (3) the payment acres for the covered com- modity. (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 Sec- retary shall provide a reference price with re- spect to temperate japonica rice in an amount equal to the amount established under subpara- graph (F) of section 9011(19) of this title, as ad- justed by paragraph (8) of such section, multi- plied 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. (h) Effective price for seed cotton (1) In general The effective price for seed cotton under subsection (b) shall be equal to the marketing year average price for seed cotton, as cal- culated under paragraph (2). (2) Calculation The marketing year average price for seed cotton for a crop year shall be equal to the quotient obtained by dividing— (A) the sum obtained by adding— (i) the product obtained by multiplying— (I) the upland cotton lint marketing year average price; and (II) the total United States upland cot- ton lint production, measured in pounds; and (ii) the product obtained by multi- plying— (I) the cottonseed marketing year av- erage price; and (II) the total United States cottonseed production, measured in pounds; by (B) the sum obtained by adding— (i) the total United States upland cotton lint production, measured in pounds; and (ii) the total United States cottonseed production, measured in pounds. (Pub. L. 113–79, title I, § 1116, Feb. 7, 2014, 128 Stat. 668; Pub. L. 115–123, div. F, § 60101(a)(8), Feb. 9, 2018, 132 Stat. 310; Pub. L. 115–334, title I, § 1106, Dec. 20, 2018, 132 Stat. 4504; Pub. L. 118–22, div. B, title I, § 102(c)(3), Nov. 17, 2023, 137 Stat. 116; Pub. L. 118–158, div. D, § 4101(c)(3), Dec. 21, 2024, 138 Stat. 1768.) Editorial Notes CODIFICATION Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of Pub. L. 113–79 applicable to the 2024 crop year for that covered commodity, see section 102(c)(1) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title. AMENDMENTS 2024—Subsec. (d). Pub. L. 118–158 substituted ‘‘2025’’ for ‘‘2024’’ in introductory provisions. 2023—Subsec. (d). Pub. L. 118–22 substituted ‘‘2024’’ for ‘‘2018’’ in introductory provisions. 2018—Subsec. (a). Pub. L. 115–334, § 1106(1), in introduc- tory provisions, inserted ‘‘or (h)’’ after ‘‘subsection (a)’’ and substituted ‘‘determines that—’’ for ‘‘determines that, for any of the 2014 through 2018 crop years—’’, in- serted par. (1) designation and introductory provisions, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1) and realigned margins, and added par. (2). Subsec. (c). Pub. L. 115–334, § 1106(2), designated exist- ing provisions as par. (1) and subpar. (A), inserted par. and subpar. headings, in introductory provisions of sub- par. (A) substituted ‘‘For the 2014 through 2018 crop years, the payment rate’’ for ‘‘The payment rate’’, re- designated former pars. (1) and (2) as cls. (i) and (ii), re- spectively, of subpar. (A) and realigned margins, added subpar. (B), and added pars. (2) and (3). Subsec. (g). Pub. L. 115–334, § 1106(3), added subsec. (g) and struck out former subsec. (g). Prior to amendment, text read as follows: ‘‘The Secretary shall provide a ref- erence price with respect to temperate japonica rice in an amount equal to 115 percent of the amount estab- lished in subparagraphs (F) and (G) of section 9011(18) of this title in order to reflect price premiums.’’ Subsec. (h). Pub. L. 115–123 added subsec. (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2024 AMENDMENT Amendment by Pub. L. 118–158 to be applied and ad- ministered as if enacted on Sept. 30, 2024, see section 4101(g) of Pub. L. 118–158, set out in an Extension of Ag- ricultural Programs note under section 9001 of this title. Page 2269 TITLE 7—AGRICULTURE § 9017 EFFECTIVE DATE OF 2023 AMENDMENT Amendment by Pub. L. 118–22 to be applied and ad- ministered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agri- cultural Programs note under section 9001 of this title. EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–123 applicable beginning with the 2018 crop year, see section 60101(a)(13) of Pub. L. 115–123, set out as a note under section 9011 of this title. § 9017. Agriculture risk coverage (a) Agriculture risk coverage payments If all of the producers on a farm make the election under section 9015(a) of this title to ob- tain agriculture risk coverage, the Secretary shall make agriculture risk coverage payments (beginning with the 2019 crop year, based on the physical location of the farm) to producers on the farm if the Secretary determines that, for any of the 2014 through 2018 crop years or the 2019 through 2023 crop years, as applicable— (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 multi- plying— (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 re- ceived by producers during the 12-month marketing year for the covered com- modity, 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 pro- ducer on a farm for a crop year shall be based on the producer’s share of all covered com- modities planted on all farms for which indi- vidual 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 prod- uct 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 cov- ered commodity in effect for such crop year under subchapter II. (B) The sum of the amounts determined under subparagraph (A) for all covered com- modities 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 bench- mark revenue shall be the product obtained by multiplying— (A) subject to paragraphs (4) and (5), the average historical county yield as deter- mined 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 (6), 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 Sec- retary; by (ii) subject to paragraph (6), the national average market price received by pro- ducers during the 12-month marketing year. (B) For each covered commodity, the aver- age of the revenues determined under sub- paragraph (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 2023 crop years, the sum of the amounts determined under subparagraph (B) for all covered com- modities on such farms, but adjusted to re- flect 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 (A) 2014 through 2018 crop years Effective for the 2014 through 2018 crop years, if the yield per planted acre for the covered commodity or historical county