7 USC 7332 - Risk management education

Collapse to view only § 7332. Risk management education

§ 7331. Options pilot program
§ 7332. Risk management education
§ 7333. Administration and operation of noninsured crop assistance program
§ 7334. Repealed.

§ 7331. Options pilot program

(a) Pilot programs authorized

(b) Distribution of pilot program

In operating the pilot program, the Secretary may enter into contract with a producer who—

(1) is eligible for a production flexibility contract, a marketing assistance loan, or other assistance under this chapter;

(2) volunteers to participate in the pilot program during any calendar year in which a county in which the farm of the producer is located is included in the pilot program;

(3) operates a farm located in a county selected for the pilot program; and

(4) meets such other eligibility requirements as the Secretary may establish.

(d) Notice to producers

The Secretary shall provide notice to each producer participating in the pilot program that—

(1) the participation of the producer is voluntary; and

(2) neither the United States, the Commodity Credit Corporation, the Federal Crop Insurance Corporation, the Department of Agriculture, nor any other Federal agency is authorized to guarantee that participants in the pilot program will be better or worse off financially as a result of participation in the pilot program than the producer would have been if the producer had not participated in the pilot program.

(e) Contracts

(f) Eligible markets

(g) Recordkeeping

(h) Use of Commodity Credit Corporation

(Pub. L. 104–127, title I, § 191, Apr. 4, 1996, 110 Stat. 941; Pub. L. 106–224, title I, § 134, June 20, 2000, 114 Stat. 388.)

§ 7332. Risk management education

In consultation with the Commodity Futures Trading Commission, the Secretary shall provide such education in management of the financial risks inherent in the production and marketing of agricultural commodities as the Secretary considers appropriate. As part of such educational activities, the Secretary may develop and implement programs to facilitate the participation of agricultural producers in commodity futures trading programs, forward contracting options, and insurance protection programs by assisting and training producers in the usage of such programs. In implementing this authority, the Secretary may use existing research and extension authorities and resources of the Department of Agriculture.

(Pub. L. 104–127, title I, § 192, Apr. 4, 1996, 110 Stat. 942.)

§ 7333. Administration and operation of noninsured crop assistance program

(a) Operation and administration of program

(1) In general

(A) CoveragesIn the case of an eligible crop described in paragraph (2), the Secretary of Agriculture shall operate a noninsured crop disaster assistance program to provide coverages based on individual yields (other than for value-loss crops) equivalent to—

(i) catastrophic risk protection available under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)); or

(ii) except in the case of crops and grasses used for grazing, additional coverage available under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 1508) that does not exceed 65 percent, as described in subsection (l).

(B) Administration

(C) Data collection and sharingThe Secretary shall coordinate with the Administrator of the Risk Management Agency on the type and format of data received under the noninsured crop disaster assistance program that—

(i) best facilitates the use of that data in developing policies or plans of insurance offered under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); and

(ii) ensures the availability of that data on a regular basis.

(D) CoordinationThe Secretary shall coordinate between the agencies of the Department that provide programs or services to farmers and ranchers that are potentially eligible for the noninsured crop disaster assistance program under this section—

(i) to make available coverage under—(I) the fee waiver under subsection (k)(2); or(II) the premium discount under subsection (l)(3); and

(ii) to share eligibility information to reduce paperwork and avoid duplication.

(2) Eligible crops

(A) In general

(B) Crops specifically included

(3) Cause of loss

(4) Program reduction in benefits relating to crop production on native sod

(A) Definition of native sodIn this paragraph, the term “native sod” means land—

(i) on which the plant cover is composed principally of native grasses, grasslike plants, forbs, or shrubs suitable for grazing and browsing; and

(ii) that has never been tilled, or the producer cannot substantiate that the ground has ever been tilled, for the production of an annual crop as of the date of enactment of this paragraph.

(B) Reduction in benefits

(i) In general(I) Agricultural Act of 2014(II) Subsequent yearsNative sod acreage that has been tilled for the production of an eligible crop after December 20, 2018, shall be subject to a reduction in benefits under this section as described in this subparagraph for not more than any 4 crop years—(aa) during the first 10 crop years after the initial tillage; and(bb) during which a crop on that acreage is enrolled under subsection (l)(2) or (k).

(ii) De minimis acreage exemption

(iii) ReductionFor purposes of the reduction in benefits for the acreage described in clause (i)—(I) the approved yield shall be determined by using a yield equal to 65 percent of the county expected yield; and(II) the service fees or premiums for crops planted on native sod shall be equal to 200 percent of the amount determined in subsections 1

1 So in original. Probably should be “subsection”.

(l)(2) or (k), as applicable, but in no case shall exceed the amount determined in subsection (l)(2)(B)(ii).

(b) Application for noninsured crop disaster assistance

(1) Timely application

(2) Records

(3) Acreage reports

(4) Streamlined submission process

(1) Cause

(2) Assistance

(A) In general

(B) Aquaculture producers

(3) Prevented planting

(4) Area trigger

(d) PaymentThe Secretary shall make available to a producer eligible for noninsured assistance under this section a payment computed by multiplying—

(1) the producer’s share of the total acres devoted to the eligible crop; by

(2) the quantity that is less than 50 percent of the approved yield for the crop, as determined by the Secretary; by

(3)

(A) in the case of each of the 1996 through 1998 crop years, 60 percent of the average market price for the crop (or any comparable coverage determined by the Secretary); or

(B) in the case of each of the 1999 and subsequent crop years, 55 percent of the average market price for the crop (or any comparable coverage determined by the Secretary); by

(4) a payment rate for the type of crop (as determined by the Secretary) that—

(A) in the case of a crop that is produced with a significant and variable harvesting expense, reflects the decreasing cost incurred in the production cycle for the crop that is—

(i) harvested;

(ii) planted but not harvested; and

(iii) prevented from being planted because of drought, flood, or other natural disaster (as determined by the Secretary); and

(B) in the case of a crop that is not produced with a significant and variable harvesting expense, as determined by the Secretary.

(e) Yield determinations

(1) Establishment

(2) Actual production history

(A) In general

(B) Calculation

(3) Assignment of yield

(4) Prohibition on assigned yields in certain counties

(A) In general

(i) Documentation

(ii) Prohibition

(B) ExceptionA crop or a producer shall not be subject to this subsection if—

(i) the planted acreage of the producer for the crop has been inspected by a third party acceptable to the Secretary; or

(ii)(I) the County Executive Director and the State Executive Director recommend an exemption from the requirement to the Administrator of the Agency; and(II) the Administrator approves the recommendation.

(5) Limitation on receipt of subsequent assigned yield

(6) Yield variations due to different farming practices

(f) Contract payments

(g) Use of Commodity Credit Corporation

(h) ExclusionsNoninsured crop disaster assistance under this section shall not cover losses due to—

(1) the neglect or malfeasance of the producer;

(2) the failure of the producer to reseed to the same crop in those areas and under such circumstances where it is customary to reseed; or

(3) the failure of the producer to follow good farming practices, as determined by the Secretary.

(i) Payment and income limitations

(1) Definitions

(2) Payment limitationThe total amount of payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) for any crop year may not exceed—

(A) in the case of catastrophic coverage under subsection (c), $125,000; and

(B) in the case of additional coverage under subsection (l), $300,000.

(3) Limitation on multiple benefits for same loss

(A) In general

(B) Exception

(4) Adjusted gross income limitation

(5) RegulationsThe Secretary shall issue regulations prescribing such rules as the Secretary determines necessary—

(A) to ensure a fair and equitable application of section 1308 of this title, the general payment limitation regulations of the Secretary, and the limitations established under this subsection; and

(B) to ensure that payments under this section are attributed to a person or legal entity (excluding a joint venture or general partnership) in accordance with the terms and conditions of sections 1308 through 1308–3a of this title, as determined by the Secretary.

(j) Omitted

(k) Service fee

(1) In generalTo be eligible to receive assistance for an eligible crop for a crop year under this section, a producer shall pay to the Secretary (at the time at which the producer submits the application under subsection (b)(1)) a service fee for the eligible crop in an amount that is equal to the lesser of—

(A) $325 per crop per county; or

(B) $825 per producer per county, but not to exceed a total of $1,950 per producer.

(2) Waiver

(3) Use

(l) Payment equivalent to additional coverage

(1) In generalThe Secretary shall make available noninsured assistance under this subsection (other than for crops and grasses used for grazing) at a payment amount that is equivalent to an indemnity for additional coverage under subsections (c) and (h) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) and equal to the product obtained by multiplying—

(A) the producer’s share of the total acres devoted to the crop;

(B) the amount that—

(i) the additional coverage yield, which shall be equal to the product obtained by multiplying—(I) an amount not less than 50 percent nor more than 65 percent, as elected by the producer and specified in 5-percent increments; and(II) the approved yield for the crop, as determined by the Secretary; exceeds

(ii) the actual yield;

(C) 100 percent of the average market price, contract price, or other premium price (such as a local, organic, or direct market price, as elected by the producer) for the crop, as determined by the Secretary; and

(D) a payment rate for the type of crop, as determined by the Secretary, that reflects—

(i) in the case of a crop that is produced with a significant and variable harvesting expense, the decreasing cost incurred in the production cycle for the crop that is, as applicable—(I) harvested;(II) planted but not harvested; or(III) prevented from being planted because of drought, flood, or other natural disaster, as determined by the Secretary; or

(ii) in the case of a crop that is produced without a significant and variable harvesting expense, such rate as shall be determined by the Secretary.

(2) Service fee and premiumTo be eligible to receive a payment under this subsection, a producer shall pay—

(A) the service fee required by subsection (k); and

(B) the lesser of—

(i) the sum of the premiums for each eligible crop, with the premium for each eligible crop obtained by multiplying—(I) the number of acres devoted to the eligible crop;(II) the yield, as determined by the Secretary under subsection (e);(III) the coverage level elected by the producer;(IV) the average market price, as determined by the Secretary;(V) a 5.25-percent premium fee; and(VI) the producer’s share of the crop; or

(ii) the product obtained by multiplying—(I) a 5.25-percent premium fee; and(II) the applicable payment limit.

(3) Limited resource, beginning, veteran, and socially disadvantaged farmers

(Pub. L. 104–127, title I, § 196, Apr. 4, 1996, 110 Stat. 947; Pub. L. 105–277, div. A, § 101(a) [title VIII, § 803(b)], Oct. 21, 1998, 112 Stat. 2681, 2681–38; Pub. L. 106–224, title I, § 109, June 20, 2000, 114 Stat. 371; Pub. L. 107–171, title X, § 10101, May 13, 2002, 116 Stat. 488; Pub. L. 110–234, title I, § 1603(f)(1), title XII, §§ 12020(b), 12025(b), 12027, 12028, May 22, 2008, 122 Stat. 1010, 1381, 1390; Pub. L. 110–246, § 4(a), title I, § 1603(f)(1), title XII, §§ 12020(b), 12025(b), 12027, 12028, June 18, 2008, 122 Stat. 1664, 1739, 2143, 2152; Pub. L. 113–79, title XI, § 11014(b), title XII, § 12305(a), Feb. 7, 2014, 128 Stat. 962, 986; Pub. L. 115–334, title I, § 1601, title XII, § 12306(f), Dec. 20, 2018, 132 Stat. 4523, 4970.)

§ 7334. Repealed. Pub. L. 115–334, title II, § 2814, Dec. 20, 2018, 132 Stat. 4602