7 USC 9017 - Agriculture risk coverage

U.S Code last checked for updates: May 07, 2024

§ 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 obtain 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 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

(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 paragraphs (4) and (5), 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 (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 Secretary; by

(ii)

subject to paragraph (6), 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 2023 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

(A)

2014 through 2018 crop years

(B)

2019 through 2023 crop years

(5)

Trend-adjusted yield

(6)

Low national average market price

(A)

Reference price

(B)

Effective reference price

(d)

Payment rate

(1)

In general

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—

(A)

the amount that—

(i)

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

(ii)

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

(B)

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

(2)

Announcement

(e)

Payment amount

If agriculture risk coverage payments are required to be paid for any of the 2014 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 determined under subsection (d); and

(2)

the payment acres determined under section 9014 of this title.

(f)

Time for payments

(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)

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;

(4)

effective for the 2014 through 2018 crop years, 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; and

(5)

effective for the 2019 through 2023 crop years, 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—

(A)

for a county for which county data collected by the Risk Management Agency are 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.

(h)

Publications

(1)

County guarantee

(A)

In general

For each crop year for a covered commodity, the Secretary shall publish information describing, for that crop year for the covered commodity in each county—

(i)

the agriculture risk coverage guarantee for county coverage determined under subsection (c)(1);

(ii)

the average historical county yield determined under subsection (c)(2)(A); and

(iii)

the national average market price determined under subsection (c)(2)(B).

(B)

Timing

(i)

In general

(ii)

Insufficient data

In the case of a covered commodity, such as temperate japonica rice, for which the Secretary cannot determine the national average market price for the most recent 12-month marketing year by the date described in clause (i) due to insufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, as soon as practicable after the pricing data are made available, the Secretary shall publish information describing—

(I)

the agriculture risk coverage guarantee under subparagraph (A)(i); and

(II)

the national average market price under subparagraph (A)(iii).

(iii)

Transition

(2)

Actual average county yield

(3)

Data sources for county yields

For the 2018 crop year and each crop year thereafter, the Secretary shall make publicly available information describing, for the most recent crop year—

(A)

the sources of data used to calculate county yields under subsection (c)(2)(A) for each covered commodity—

(i)

by county; and

(ii)

nationally; and

(B)

the number and outcome of occurrences in which the Farm Service Agency reviewed, changed, or determined not to change a source of data used to calculate county yields under subsection (c)(2)(A).

(i)

Administrative units

(1)

In general

(2)

Eligible counties

A county that may be divided into administrative units under this subsection is a county that—

(A)

is larger than 1,400 square miles; and

(B)

contains more than 190,000 base acres.

(3)

Elections

(4)

Limitation

The Secretary shall—

(A)

limit the number of counties that may be divided into administrative units under paragraph (3) to 25 counties; and

(B)

give preference to the division of counties that have greater variation in climate, soils, and expected productivity between the proposed administrative units.

(5)

Administration

(Pub. L. 113–79, title I, § 1117, Feb. 7, 2014, 128 Stat. 669; Pub. L. 115–334, title I, § 1107, Dec. 20, 2018, 132 Stat. 4505.)

cite as: 7 USC 9017