19 USC 2497 - Agricultural Disaster Relief Trust Fund

Collapse to view only § 2497a. Agricultural Disaster Relief Trust Fund

§ 2497. Supplemental agricultural disaster assistance
§ 2497a. Agricultural Disaster Relief Trust Fund
§ 2497b. Jurisdiction

§ 2497. Supplemental agricultural disaster assistance

(a) DefinitionsIn this section:

(1) Actual production history yield

(2) Actual production on the farm

(3) Adjusted actual production history yieldThe term “adjusted actual production history yield” means—

(A) in the case of an eligible producer on a farm that has at least 4 years of actual production history yields for an insurable commodity that are established other than pursuant to section 508(g)(4)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(4)(B)), the actual production history for the eligible producer without regard to any yields established under that section;

(B) in the case of an eligible producer on a farm that has less than 4 years of actual production history yields for an insurable commodity, of which 1 or more were established pursuant to section 508(g)(4)(B) of that Act [7 U.S.C. 1508(g)(4)(B)], the actual production history for the eligible producer as calculated without including the lowest of the yields established pursuant to section 508(g)(4)(B) of that Act; and

(4) Adjusted noninsured crop disaster assistance program yieldThe term “adjusted noninsured crop disaster assistance program yield” means—

(A) in the case of an eligible producer on a farm that has at least 4 years of production history under the noninsured crop disaster assistance program that are not replacement yields, the noninsured crop disaster assistance program yield without regard to any replacement yields;

(B) in the case of an eligible producer on a farm that has less than 4 years of production history under the noninsured crop disaster assistance program that are not replacement yields, the noninsured crop disaster assistance program yield as calculated without including the lowest of the replacement yields; and

(C) in all other cases, the production history of the eligible producer on the farm under the noninsured crop disaster assistance program.

(5) Counter-cyclical program payment yieldThe term “counter-cyclical program payment yield” means the weighted average payment yield established under under— 1

1 So in original.

(i) section 7912 or 7952 of title 7;

(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.

(6) Crop of economic significance

(7) Disaster county

(A) In general

(B) InclusionThe term “disaster county” includes—

(i) a county contiguous to a county described in subparagraph (A); and

(ii) any farm in which, during a calendar year 2

2 So in original. Probably should be followed by a comma.

the actual production on the farm is less than 50 percent of the normal production on the farm.

(8) Eligible producer on a farm

(A) In general

(B) DescriptionAn individual or entity referred to in subparagraph (A) is—

(i) a citizen of the United States;

(ii) a resident alien;

(iii) a partnership of citizens of the United States; or

(iv) a corporation, limited liability corporation, or other farm organizational structure organized under State law.

(9) Farm

(A) In general

(B) Aquaculture

(10) Farm-raised fish

(11) Insurable commodity

(12) LivestockThe term “livestock” includes—

(A) cattle (including dairy cattle);

(B) bison;

(D) sheep;

(E) swine;

(F) horses; and

(G) other livestock, as determined by the Secretary.

(13) Noninsurable commodity

(14) Noninsured crop assistance program

(15) Normal production on the farm

(16) Qualifying natural disaster declaration

(17) Secretary

(18) Socially disadvantaged farmer or rancher

(19) StateThe term “State” means—

(A) a State;

(B) the District of Columbia;

(D) any other territory or possession of the United States.

(20) Trust Fund

(21) United States

(b) Supplemental revenue assistance payments

(1) Payments

(A) In general

(B) Crop loss

(2) Amount

(A) In generalSubject to subparagraph (B), the Secretary shall provide crop disaster assistance payments under this section to an eligible producer on a farm in an amount equal to 60 percent of the difference between—

(i) the disaster assistance program guarantee, as described in paragraph (3); and

(ii) the total farm revenue for a farm, as described in paragraph (4).

(B) Limitation

(C) Exclusion of subsequently planted cropsIn 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.

(3) Supplemental revenue assistance program guarantee

(A) In generalExcept as otherwise provided in this paragraph, the supplemental assistance program guarantee shall be the sum obtained by adding—

(i) for each insurable commodity on the farm, 115 percent of the product obtained by multiplying—(I) a payment rate for the commodity that is equal to the price election for the commodity elected by the eligible producer;(II) the payment acres for the commodity that is equal to the number of acres planted, or prevented from being planted, to the commodity;(III) the payment yield for the commodity that is equal to the percentage of the crop insurance yield elected by the producer of the higher of—(aa) the adjusted actual production history yield; or(bb) the counter-cyclical program payment yield for each crop; and

(ii) for each noninsurable commodity on a farm, 120 percent of the product obtained by multiplying—(I) a payment rate for the commodity that is equal to 100 percent of the noninsured crop assistance program established price for the commodity;(II) the payment acres for the commodity that is equal to the number of acres planted, or prevented from being planted, to the commodity; and(III) the payment yield for the commodity that is equal to 50 percent of the higher of—(aa) the adjusted noninsured crop assistance program yield; or(bb) the counter-cyclical program payment yield for each crop.

(B) Adjustment insurance guarantee

(D) Equitable treatment for non-yield based policies

(4) Farm revenue

(A) In generalFor purposes of this subsection, the total farm revenue for a farm,4

4 So in original. The comma probably should not appear.

shall equal the sum obtained by adding—

(i) the estimated actual value for each crop produced on a farm by using the product obtained by multiplying—(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(II) subject to subparagraphs (B) and (C), to the extent practicable, the national average market price received for the marketing year, as determined by the Secretary;

(ii) 15 percent of amount of any direct payments made to the producer under sections 1103 and 1303 3 of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8713, 8753] or successor sections;

(iii) the total amount of any counter-cyclical payments made to the producer under sections 1104 and 1304 3 of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8714, 8754] or successor sections or of any average crop revenue election payments made to the producer under section 1105 3 of that Act [7 U.S.C. 8715];

(iv) the total amount of any loan deficiency payments, marketing loan gains, and marketing certificate gains made to the producer under subtitles B and C of the Food, Conservation, and Energy Act of 2008 3 or successor subtitles;

(v) the amount of payments for prevented planting on a farm;

(vi) the amount of crop insurance indemnities received by an eligible producer on a farm for each crop on a farm;

(vii) the amount of payments an eligible producer on a farm received under the noninsured crop assistance program for each crop on a farm; and

(viii) the value of any other natural disaster assistance payments provided by the Federal Government to an eligible producer on a farm for each crop on a farm for the same loss for which the eligible producer is seeking assistance.

(B) AdjustmentThe Secretary shall adjust the average market price received by the eligible producer on a farm—

(i) to reflect the average quality discounts applied to the local or regional market price of a crop or mechanically harvested forage due to a reduction in the intrinsic characteristics of the production resulting from adverse weather, as determined annually by the State office of the Farm Service Agency;

(ii) to account for a crop the value of which is reduced due to excess moisture resulting from a disaster-related condition; and

(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.

(5) Expected revenueThe expected revenue for each crop on a farm shall equal—

(A) for each insurable commodity, the product obtained by multiplying—

(i) the greater of—(I) the adjusted actual production history yield of the eligible producer on a farm; and(II) the counter-cyclical program payment yield;

(ii) the acreage planted or prevented from being planted for each crop; and

(iii) 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

(B) for each noninsurable crop, the product obtained by multiplying—

(i) 100 percent of the adjusted noninsured crop assistance program yield;

(ii) the acreage planted or prevented from being planted for each crop; and

(iii) 100 percent of the noninsured crop assistance program price for each of the crops on a farm.

(6) Production on the farm

(A) Normal production on the farm

(B) Actual production on the farmThe 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.

(1) Payments

(2) Payment rates

(d) Livestock forage disaster program

(1) DefinitionsIn this subsection:

(A) Covered livestock

(i) In generalThe term “covered livestock” means livestock of an eligible livestock producer that, during the 60 days prior to the beginning date of a qualifying drought or fire condition, as determined by the Secretary, the eligible livestock producer—(I) owned;(II) leased;(III) purchased;(IV) entered into a contract to purchase;(V) is 1 a contract grower; or(VI) sold or otherwise disposed of due to qualifying drought conditions during—(aa) the current production year; or(bb) subject to paragraph (3)(B)(ii), 1 or both of the 2 production years immediately preceding the current production year.

(ii) Exclusion

(B) Drought monitor

(i) In generalThe term “eligible livestock producer” means an eligible producer on a farm that—(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the pastureland or grazing land, including cash-leased pastureland or grazing land, for the livestock;(II) provides the pastureland or grazing land for covered livestock, including cash-leased pastureland or grazing land that is physically located in a county affected by drought;(III) certifies grazing loss; and(IV) meets all other eligibility requirements established under this subsection.

(ii) Exclusion

(D) Normal carrying capacity

(E) Normal grazing period

(2) ProgramThe Secretary shall use such sums as are necessary from the Trust Fund to provide compensation for losses to eligible livestock producers due to grazing losses for covered livestock due to—

(A) a drought condition, as described in paragraph (3); or

(B) fire, as described in paragraph (4).

(3) Assistance for losses due to drought conditions

(A) Eligible lossesAn eligible livestock producer may receive assistance under this subsection only for grazing losses for covered livestock that occur on land that—

(i) is native or improved pastureland with permanent vegetative cover; or

(ii) is planted to a crop planted specifically for the purpose of providing grazing for covered livestock.

(B) Monthly payment rate

(i) In generalExcept as provided in clause (ii), the payment rate for assistance under this paragraph for 1 month shall, in the case of drought, be equal to 60 percent of the lesser of—(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as determined under subparagraph (C); or(II) the monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer.

(ii) Partial compensation

(i) In generalThe monthly feed cost shall equal the product obtained by multiplying—(I) 30 days;(II) a payment quantity that is equal to the feed grain equivalent, as determined under clause (ii); and(III) a payment rate that is equal to the corn price per pound, as determined under clause (iii).

(ii) Feed grain equivalentFor purposes of clause (i)(I), the feed grain equivalent shall equal—(I) in the case of an adult beef cow, 15.7 pounds of corn per day; or(II) in the case of any other type of weight of livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day necessary to feed the livestock.

(iii) Corn price per poundFor purposes of clause (i)(II), the corn price per pound shall equal the quotient obtained by dividing—(I) the higher of—(aa) the national average corn price per bushel for the 12-month period immediately preceding March 1 of the year for which the disaster assistance is calculated; or(bb) the national average corn price per bushel for the 24-month period immediately preceding that March 1; by(II) 56.

(D) Normal grazing period and drought monitor intensity

(i) FSA county committee determinations(I) In general(II) Changes

(ii) Drought intensity(I) D2(II) D3An eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph—(aa) in an amount equal to 2 monthly payments using the monthly payment rate determined under subparagraph (B); or(bb) if the county is rated as having a D3 (extreme drought) intensity in any area of the county for at least 4 weeks during the normal grazing period for the county, or is rated as having a D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period, in an amount equal to 3 monthly payments using the monthly payment rate determined under subparagraph (B).

(4) Assistance for losses due to fire on public managed land

(A) In generalAn eligible livestock producer may receive assistance under this paragraph only if—

(i) the grazing losses occur on rangeland that is managed by a Federal agency; and

(ii) the eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire.

(B) Payment rate

(i) In generalSubject to clause (ii), an eligible livestock producer shall be eligible to receive assistance under this paragraph for the period—(I) beginning on the date on which the Federal agency excludes the eligible livestock producer from using the managed rangeland for grazing; and(II) ending on the last day of the Federal lease of the eligible livestock producer.

(ii) Limitation

(5) Minimum risk management purchase requirements

(A) In generalExcept as otherwise provided in this paragraph, a livestock producer shall only be eligible for assistance under this subsection if the livestock producer—

(i) obtained a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for the grazing land incurring the losses for which assistance is being requested; or

(ii) filed the required paperwork, and paid the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for the grazing land incurring the losses for which assistance is being requested.

(B) Waiver for socially disadvantaged, limited resource, or beginning farmer or rancherIn the case of an eligible livestock producer that is a socially disadvantaged farmer or rancher or limited resource or beginning farmer or rancher, as determined by the Secretary, the Secretary may—

(i) waive subparagraph (A); and

(ii) provide disaster assistance under this subsection at a level that the Secretary determines to be equitable and appropriate.

(D) Equitable relief

(i) In general

(ii) 2008 calendar year

(6) No duplicative payments

(A) In general

(B) Relationship to supplemental revenue assistance

(e) Emergency assistance for livestock, honey bees, and farm-raised fish

(1) In general

(2) Use of funds

(3) Availability of funds

(f) Tree assistance program

(1) DefinitionsIn this subsection:

(A) Eligible orchardist

(B) Natural disaster

(D) Tree

(2) Eligibility

(A) LossSubject to subparagraph (B), the Secretary shall use such sums as are necessary from the Trust Fund to provide assistance—

(i) under paragraph (3) to eligible orchardists and nursery tree growers that planted trees for commercial purposes but lost the trees as a result of a natural disaster, as determined by the Secretary; and

(ii) under paragraph (3)(B) to eligible orchardists and nursery tree growers that have a production history for commercial purposes on planted or existing trees but lost the trees as a result of a natural disaster, as determined by the Secretary.

(B) Limitation

(3) AssistanceSubject to paragraph (4), the assistance provided by the Secretary to eligible orchardists and nursery tree growers for losses described in paragraph (2) shall consist of—

(A)

(i) reimbursement of 70 percent of the cost of replanting trees lost due to a natural disaster, as determined by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or

(ii) at the option of the Secretary, sufficient seedlings to reestablish a stand; and

(B) reimbursement of 50 percent of the cost of pruning, removal, and other costs incurred by an eligible orchardist or nursery tree grower to salvage existing trees or, in the case of tree mortality, to prepare the land to replant trees as a result of damage or tree mortality due to a natural disaster, as determined by the Secretary, in excess of 15 percent damage or mortality (adjusted for normal tree damage and mortality).

(4) Limitations on assistance

(A) Definitions of legal entity and person

(B) Amount

(g) Risk management purchase requirement

(1) In generalExcept as otherwise provided in this section, the eligible producers on a farm shall not be eligible for assistance under this section (other than subsections (c) and (d)) if the eligible producers on the farm—

(A) in the case of each insurable commodity of the eligible producers on the farm, excluding grazing land, did not obtain a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance pilot program under that Act); or

(B) in the case of each noninsurable commodity of the eligible producers on the farm, did not file the required paperwork, and pay the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program.

(2) Minimum

(3) Waiver for socially disadvantaged, limited resource, or beginning farmer or rancherWith respect to eligible producers that are socially disadvantaged farmers or ranchers or limited resource or beginning farmers or ranchers, as determined by the Secretary, the Secretary may—

(A) waive paragraph (1); and

(B) provide disaster assistance under this section at a level that the Secretary determines to be equitable and appropriate.

(4) Waivers for certain crop years

(A) 2008 crop year

(B) 2009 crop year

(5) Equitable relief

(A) In general

(B) 2008 crop year

(6) De minimis exception

(A) In generalFor 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

(7) 2008 transition assistance

(A) In generalEligible producers on a farm described in subparagraph (A) of paragraph (4) that failed to timely pay the appropriate fee described in that subparagraph shall be eligible for assistance under this section in accordance with subparagraph (B) if the eligible producers on the farm—

(i) pay the appropriate fee described in paragraph (4)(A) not later than 90 days after February 17, 2009; and

(ii)(I) in the case of each insurable commodity of the eligible producers on the farm, excluding grazing land, agree to obtain a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) (excluding a crop insurance pilot program under that Act) for the next insurance year for which crop insurance is available to the eligible producers on the farm at a level of coverage equal to 70 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage; and(II) in the case of each noninsurable commodity of the eligible producers on the farm, agree to file the required paperwork, and pay the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for the next year for which a policy is available.

(B) Amount of assistanceEligible producers on a farm that meet the requirements of subparagraph (A) shall be eligible to receive assistance under this section as if the eligible producers on the farm—

(i) in the case of each insurable commodity of the eligible producers on the farm, had obtained a policy or plan of insurance for the 2008 crop year at a level of coverage not to exceed 70 percent or more of the recorded or appraised average yield indemnified at 100 percent of the expected market price, or an equivalent coverage; and

(ii) in the case of each noninsurable commodity of the eligible producers on the farm, had filed the required paperwork, and paid the administrative fee by the applicable State filing deadline, for the noninsured crop assistance program for the 2008 crop year, except that in determining the level of coverage, the Secretary shall use 70 percent of the applicable yield.

(C) Equitable reliefExcept as provided in subparagraph (D), eligible producers on a farm that met the requirements of paragraph (1) before the deadline described in paragraph (4)(A) and are eligible to receive, a disaster assistance payment under this section for a production loss during the 2008 crop year shall be eligible to receive an amount equal to the greater of—

(i) the amount that would have been calculated under subparagraph (B) if the eligible producers on the farm had paid the appropriate fee under that subparagraph; or

(ii) the amount that would have been calculated under subparagraph (A) of subsection (b)(3) if—(I) in clause (i) of that subparagraph, “120 percent” is substituted for “115 percent”; and(II) in clause (ii) of that subparagraph, “125” 6

6 So in original. Probably should be “ ‘125 percent’ ”.

is substituted for “120 percent”.

(D) Limitation

(E) Authority of the Secretary

(F) Lack of accessNotwithstanding any other provision of this section, the Secretary may provide assistance (including multiyear assistance) under this section to eligible producers on a farm that—

(i) suffered a production loss or multiyear production losses due to a natural cause during the 2008 crop year; and

(ii) as determined by the Secretary—(I)(aa) except as provided in item (bb), lack access to a policy or plan of insurance under subtitle A 3; or(bb) do not qualify for a written agreement because 1 or more farming practices, which the Secretary has determined are good farming practices, of the eligible producers on the farm differ significantly from the farming practices used by producers of the same crop in other regions of the United States; and(II) are not eligible for the noninsured crop disaster assistance program established by section 7333 of title 7.

(h) Payment limitations

(1) Definitions of legal entity and person

(2) Amount

(3) AGI limitation

(4) Direct attribution

(5) Transition rule

(i) Period of effectiveness

(j) No duplicative payments

(Pub. L. 93–618, title IX, § 901, as added Pub. L. 110–234, title XV, § 15101(a), May 22, 2008, 122 Stat. 1484, and Pub. L. 110–246, § 4(a), title XV, § 15101(a), June 18, 2008, 122 Stat. 1664, 2246; amended Pub. L. 110–398, § 2(b), Oct. 13, 2008, 122 Stat. 4218; Pub. L. 111–5, div. A, title I, § 102(b), Feb. 17, 2009, 123 Stat. 123; Pub. L. 111–80, title VII, § 745(b), Oct. 21, 2009, 123 Stat. 2130; Pub. L. 113–79, title XI, § 11028(d), Feb. 7, 2014, 128 Stat. 978.)

§ 2497a. Agricultural Disaster Relief Trust Fund

(a) Creation of Trust Fund

(b) Transfer to Trust Fund

(1) In general

(2) Amounts based on estimates

(3) Limitation on transfers to Agricultural Disaster Relief Trust Fund

No amount may be appropriated to the Agricultural Disaster Relief Trust Fund on and after the date of any expenditure from the Agricultural Disaster Relief Trust Fund which is not permitted by this section. The determination of whether an expenditure is so permitted shall be made without regard to—

(A) any provision of law which is not contained or referenced in this subchapter or in a revenue Act, and

(B) whether such provision of law is a subsequently enacted provision or directly or indirectly seeks to waive the application of this paragraph.

(1) Reports

(2) Investment

(A) In general

The Secretary of the Treasury shall invest such portion of the Agricultural Disaster Relief Trust Fund as is not in his judgment required to meet current withdrawals. Such investments may be made only in interest bearing obligations of the United States. For such purpose, such obligations may be acquired—

(i) on original issue at the issue price, or

(ii) by purchase of outstanding obligations at the market price.

(B) Sale of obligations

(d) Expenditures from Trust Fund

(e) Authority to borrow

(1) In general

(2) Repayment of advances

(A) In general

(B) Rate of interest

Interest on advances made pursuant to this subsection shall be—

(i) at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding, and

(ii) compounded annually.

(Pub. L. 93–618, title IX, § 902, as added Pub. L. 110–234, title XV, § 15101(a), May 22, 2008, 122 Stat. 1498, and Pub. L. 110–246, § 4(a), title XV, § 15101(a), June 18, 2008, 122 Stat. 1664, 2260.)

§ 2497b. Jurisdiction

Legislation in the Senate of the United States amending section 2497 or 2497a of this title shall be referred to the Committee on Finance of the Senate.

(Pub. L. 93–618, title IX, § 903, as added Pub. L. 110–234, title XV, § 15101(a), May 22, 2008, 122 Stat. 1499, and Pub. L. 110–246, § 4(a), title XV, § 15101(a), June 18, 2008, 122 Stat. 1664, 2261.)