USC Subchapter I

USC Subchapter I
in effect

7 U.S.C. § 9011 Definitions

In this subchapter and subchapter II: (1) Actual crop revenueThe term “actual crop revenue”, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 9017(b) of this title. (2) Agriculture risk coverageThe term “agriculture risk coverage” means coverage provided under section 9017 of this title. (3) Agriculture risk coverage guaranteeThe term “agriculture risk coverage guarantee”, with respect to a covered commodity for a crop year, means the amount determined by the Secretary under section 9017(c) of this title. (4) Base acres(A) In generalThe term “base acres”, with respect to a covered commodity on a farm, means the number of acres in effect under sections 8702 and 8751 of this title, as adjusted pursuant to sections 8711, 8718, and 8752 of this title, as in effect on September 30, 2013, subject to any reallocation, adjustment, or reduction under section 9012 of this title. (B) Inclusion of generic base acresThe term “base acres” includes any generic base acres planted to a covered commodity as determined in section 9014(b) of this title. (5) County coverageThe term “county coverage” means agriculture risk coverage selected under section 9015(b)(1) of this title to be obtained at the county level. (6) Covered commodity(A) In generalThe term “covered commodity” means wheat, oats, and barley (including wheat, oats, and barley used for haying and grazing), corn, grain sorghum, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts. (B) InclusionEffective beginning with the 2018 crop year, the term “covered commodity” includes seed cotton. (7) Effective priceThe term “effective price”, with respect to a covered commodity for a crop year, means the price calculated by the Secretary under section 9016(b) of this title to determine whether price loss coverage payments are required to be provided for that crop year. (8) Effective reference priceThe term “effective reference price”, with respect to a covered commodity for a crop year, means the lesser of the following:(A) An amount equal to 115 percent of the reference price for such covered commodity. (B) An amount equal to the greater of—(i) the reference price for such covered commodity; or (ii) beginning with the crop year 2025, 88 percent of the average of the marketing year average price of the covered commodity for the most recent 5 crop years, excluding each of the crop years with the highest and lowest marketing year average price. (9) Extra long staple cottonThe term “extra long staple cotton” means cotton that—(A) is produced from pure strain varieties of the Barbadense species or any hybrid of the species, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and (B) is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes. (10) Generic base acresThe term “generic base acres” means the number of base acres for cotton in effect under section 8702 of this title, as adjusted pursuant to section 8711 of this title, as in effect on September 30, 2013, subject to any adjustment or reduction under section 9012 of this title. (11) Individual coverageThe term “individual coverage” means agriculture risk coverage selected under section 9015(b)(2) of this title to be obtained at the farm level. (12) Medium grain riceThe term “medium grain rice” includes short grain rice and temperate japonica rice. (13) Other oilseedThe term “other oilseed” means a crop of sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe, sesame seed, or any oilseed designated by the Secretary. (14) Payment acresThe term “payment acres”, with respect to the provision of price loss coverage payments and agriculture risk coverage payments, means the number of acres determined for a farm under section 9014 of this title. (15) Payment yieldThe term “payment yield”, for a farm for a covered commodity—(A) means the yield used to make payments pursuant to section 8714 or 8754 of this title, as in effect on September 30, 2013; or (B) means the yield established under section 9013 of this title. (16) Price loss coverageThe term “price loss coverage” means coverage provided under section 9016 of this title. (17) Producer(A) In generalThe term “producer” means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced. (B) Hybrid seedIn determining whether a grower of hybrid seed is a producer, the Secretary shall—(i) not take into consideration the existence of a hybrid seed contract; and (ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this chapter. (18) Pulse cropThe term “pulse crop” means dry peas, lentils, small chickpeas, and large chickpeas. (19) Reference price(A) In generalEffective beginning with the 2025 crop year, subject to subparagraphs (B) and (C), the term “reference price”, with respect to a covered commodity for a crop year, means the following:(i) For wheat, $6.35 per bushel. (ii) For corn, $4.10 per bushel. (iii) For grain sorghum, $4.40 per bushel. (iv) For barley, $5.45 per bushel. (v) For oats, $2.65 per bushel. (vi) For long grain rice, $16.90 per hundredweight. (vii) For medium grain rice, $16.90 per hundredweight. (viii) For soybeans, $10.00 per bushel. (ix) For other oilseeds, $23.75 per hundredweight. (x) For peanuts, $630.00 per ton. (xi) For dry peas, $13.10 per hundredweight. (xii) For lentils, $23.75 per hundredweight. (xiii) For small chickpeas, $22.65 per hundredweight. (xiv) For large chickpeas, $25.65 per hundredweight. (xv) For seed cotton, $0.42 per pound. (B) EffectivenessEffective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005. (C) LimitationIn no case shall a reference price for a covered commodity exceed 113 percent of the reference price for such covered commodity listed in subparagraph (A). (20) SecretaryThe term “Secretary” means the Secretary of Agriculture. (21) Seed cottonThe term “seed cotton” means unginned upland cotton that includes both lint and seed. (22) StateThe term “State” means—(A) a State; (B) the District of Columbia; (C) the Commonwealth of Puerto Rico; and (D) any other territory or possession of the United States. (23) Temperate japonica riceThe term “temperate japonica rice” means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions, in the Western United States, as determined by the Secretary, for the purpose of—(A) the reallocation of base acres under section 9012 of this title; (B) the establishment of a reference price (as required under section 9016(g) of this title) and an effective price pursuant to section 9016 of this title; and (C) the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to section 9017 of this title. (24) Transitional yieldThe term “transitional yield” has the meaning given the term in section 1502(b) of this title. (25) United StatesThe term “United States”, when used in a geographical sense, means all of the States. (26) United States Premium FactorThe term “United States Premium Factor” means the percentage by which the difference in the United States loan schedule premiums for Strict Middling (SM) 1⅛-inch upland cotton and for Middling (M) 13⁄32-inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities.

7 U.S.C. § 9012 Base acres

(a) Retention or 1-time reallocation of base acres(1) Election required(A) Notice of election opportunityAs soon as practicable after February 7, 2014, the Secretary shall provide notice to the owners of a farm regarding their opportunity to make an election, in the manner provided in this subsection—(i) to retain base acres, including any generic base acres, as provided in paragraph (2); or (ii) in lieu of retaining base acres, to reallocate base acres, other than any generic base acres, as provided in paragraph (3). (B) Content of noticeThe notice under subparagraph (A) shall include the following:(i) Information that the opportunity of an owner to make the election is being provided only once. (ii) Information regarding the manner in which the owner must make the election and the manner of notifying the Secretary of the election. (iii) Information regarding the deadline before which the owner must notify the Secretary of the election to be in effect beginning with the 2014 crop year. (C) Effect of failure to make electionIf the owner of a farm fails to make the election under this subsection, or fails to timely notify the Secretary of the election as required by subparagraph (B)(iii), the owner shall be deemed to have elected to retain base acres, including generic base acres, as provided in paragraph (2). (2) Retention of base acres(A) Election to retainFor the purpose of applying this subchapter to a covered commodity, the Secretary shall give an owner of a farm an opportunity to elect to retain all of the base acres for each covered commodity on the farm. (B) Treatment of generic base acresGeneric base acres are automatically retained. (3) Reallocation of base acres(A) Election to reallocateFor the purpose of applying this subchapter to covered commodities, the Secretary shall give an owner of a farm an opportunity to elect to reallocate all of the base acres for covered commodities on the farm, as in effect on September 30, 2013, among those covered commodities planted on the farm at any time during the 2009 through 2012 crop years. (B) Reallocation formulaThe reallocation of base acres among covered commodities on a farm shall be in proportion to the ratio of—(i) the 4-year average of—(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2009 through 2012 crop years; and (II) any acreage on the farm that the producers were prevented from planting during the 2009 through 2012 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to (ii) the 4-year average of—(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage, or other similar purposes for such crop years; and (II) any acreage on the farm that the producers were prevented from planting during such crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary. (C) Treatment of generic base acresGeneric base acres are retained and may not be reallocated under this paragraph. (D) Inclusion of all 4 years in averageFor the purpose of determining a 4-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted. (E) Treatment of multiple planting or prevented plantingFor the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2009 through 2012 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the commodity to be used for that crop year in determining the 4-year average, but may not include both the initial commodity and the subsequent commodity. (F) LimitationThe reallocation of base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres (including generic base acres) for the farm in excess of the number of base acres in effect for the farm on September 30, 2013. (4) Application of election to all covered commoditiesThe election made under this subsection, or deemed to be made under paragraph (1)(C), with respect to a farm shall apply to all of the covered commodities on the farm. (b) Adjustment of base acres(1) In generalNotwithstanding the election made under subsection (a), the Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm and any generic base acres for the farm whenever any of the following circumstances occur:(A) A conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm expires or is voluntarily terminated. (B) Cropland is released from coverage under a conservation reserve contract by the Secretary. (C) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under section 8711(a)(1)(D) of this title. (2) Special conservation reserve acreage payment rulesFor the crop year in which a base acres adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive price loss coverage or agriculture risk coverage with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both. (c) Prevention of excess base acres(1) Required reductionNotwithstanding the election made under subsection (a), if the sum of the base acres for a farm, including generic base acres, and the acreage described in paragraph (2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered commodities or generic base acres for the farm so that the sum of the base acres, including generic base acres, and the acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm. (2) Other acreageFor purposes of paragraph (1), the Secretary shall include the following:(A) Any acreage on the farm enrolled in—(i) the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.); or (ii) a wetland reserve easement under section 1265C of the Food Security Act of 1985 (16 U.S.C. 3865c). (B) Any other acreage on the farm enrolled in a Federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage. (C) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under subsection (b)(1)(C). (3) Selection of acresThe Secretary shall give the owner of the farm the opportunity to select the base acres for a covered commodity or generic base acres for the farm against which the reduction required by paragraph (1) will be made. (4) Exception for double-cropped acreageIn applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary. (d) Reduction in base acres(1) Reduction at option of owner(A) In generalThe owner of a farm may reduce, at any time, the base acres for any covered commodity or generic base acres for the farm. (B) Effect of reductionA reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary. (2) Required action by Secretary(A) In generalThe Secretary shall proportionately reduce base acres, including any generic base acres, on a farm for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size of the tracts and the density of the subdivision is such that the land is unlikely to return to the previous agricultural use, unless the producers on the farm demonstrate that the land—(i) remains devoted to commercial agricultural production; or (ii) is likely to be returned to the previous agricultural use. (B) RequirementThe Secretary shall establish procedures to identify land described in subparagraph (A). (3) Treatment of base acres on farms entirely planted to grass or pasture(A) In generalIn the case of a farm on which all of the cropland was planted to grass or pasture (including cropland that was idle or fallow), as determined by the Secretary, during the period beginning on January 1, 2009, and ending on December 31, 2017, the Secretary shall maintain all base acres and payment yields for the covered commodities on the farm, except that no payment shall be made with respect to those base acres under section 9016 or 9017 of this title for the 2019 through 2031 crop years. (B) IneligibilityThe producers on a farm for which all of the base acres are maintained under subparagraph (A) shall be ineligible for the option to change the election applicable to the producers on the farm under section 9015(h) of this title. (4) Prohibition on reconstitution of farmThe Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change the treatment of base acres under this section. (e) Additional base acres(1) In generalAs soon as practicable after July 4, 2025, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (3) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection. An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary not later than 90 days after receipt of the notice provided by the Secretary under this paragraph. (2) Content of noticeThe notice under paragraph (1) shall include the following:(A) Information that the allocation is occurring. (B) Information regarding the eligibility of the farm for an allocation of base acres under paragraph (3). (C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (3) through an appeals process established by the Secretary. (3) Eligibility(A) In generalSubject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C). (B) 5-year average sumThe amount described in this subparagraph, with respect to a farm, is the sum of—(i) the 5-year average of—(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and (II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus (ii) the lesser of—(I) 15 percent of the total acres on the farm; and (II) the 5-year average of—(aa) the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and (bb) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary. (C) Total number of base acres for covered commoditiesThe amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024. (D) Effect of no recent plantings of covered commoditiesIn the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection. (E) Acreage planted on the farm to eligible noncovered commodities definedIn this paragraph, the term “acreage planted on the farm to eligible noncovered commodities” means acreage planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary. (4) Number of base acresSubject to paragraphs (3) and (8), the number of base acres allocated to an eligible farm shall—(A) be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (3) from the amount determined under subparagraph (B) of that paragraph; and (B) include unassigned crop base. (5) Allocation of acres(A) AllocationThe Secretary shall allocate the number of base acres under paragraph (4) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years. (B) Allocation formulaThe allocation of additional base acres for covered commodities shall be in proportion to the ratio of—(i) the 5-year average of—(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and (II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to (ii) the 5-year average determined under paragraph (3)(B)(i). (C) Inclusion of all 5 years in averageFor the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted. (D) Treatment of multiple planting or prevented plantingFor the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity. (E) LimitationThe allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm. (6) Reduction by the SecretaryIn carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres. (7) Payment yieldBeginning with crop year 2026, for the purpose of making price loss coverage payments under section 9016 of this title, the Secretary shall establish payment yields to base acres allocated under this subsection equal to—(A) the payment yield established on the farm for the applicable covered commodity; and (B) if no such payment yield for the applicable covered commodity exists, a payment yield—(i) equal to the average payment yield for the covered commodity for the county in which the farm is situated; or (ii) determined pursuant to section 9013(c) of this title. (8) Treatment of new ownersIn the case of a farm for which the owner on July 4, 2025 was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining—(A) eligibility under paragraph (3); (B) eligible acres under paragraph (4); and (C) the allocation of acres under paragraph (5).

7 U.S.C. § 9013 Payment yields

(a) Establishment and purposeFor the purpose of making price loss coverage payments under section 9016 of this title, the Secretary shall provide for the establishment of a yield for each farm for any designated oilseed for which a payment yield was not established under section 8712 of this title in accordance with this section. (b) Payment yields for designated oilseeds(1) Determination of average yieldIn the case of oilseeds designated before December 20, 2018, the Secretary shall determine the average yield per planted acre for the designated oilseed on a farm for the 1998 through 2001 crop years, excluding any crop year in which the acreage planted to the designated oilseed was zero. (2) Adjustment for payment yield(A) In generalThe payment yield for a farm for an oilseed designated before December 20, 2018, shall be equal to the product of the following:(i) The average yield for the designated oilseed determined under paragraph (1). (ii) The ratio resulting from dividing the national average yield for the designated oilseed for the 1981 through 1985 crops by the national average yield for the designated oilseed for the 1998 through 2001 crops. (B) No national average yield information availableTo the extent that national average yield information for an oilseed designated before December 20, 2018, is not available, the Secretary shall use such information as the Secretary determines to be fair and equitable to establish a national average yield under this section. (3) Use of county average yieldIf the yield per planted acre for a crop of an oilseed designated before December 20, 2018, for a farm for any of the 1998 through 2001 crop years was less than 75 percent of the county yield for that designated oilseed, the Secretary shall assign a yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1). (4) Treatment of oilseeds designated after certain dateIn the case of oilseeds designated on or after December 20, 2018, the payment yield shall be equal to 90 percent of the average of the yield per planted acre for the most recent 5 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero. (c) Effect of lack of payment yield(1) Establishment by SecretaryIn the case of a covered commodity on a farm for which base acres have been established or that is planted on generic base acres, if no payment yield is otherwise established for the covered commodity on the farm, the Secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph (2). (2) Use of similarly situated farmsTo establish an appropriate payment yield for a covered commodity on a farm as required by paragraph (1), the Secretary shall take into consideration the farm program payment yields applicable to that covered commodity for similarly situated farms. The use of such data in an appeal, by the Secretary or by the producer, shall not be subject to any other provision of law. (d) Single opportunity to update yields(1) Election to updateAt the sole discretion of the owner of a farm, the owner of a farm shall have a 1-time opportunity to update, on a covered-commodity-by-covered-commodity basis, the payment yield that would otherwise be used in calculating any price loss coverage payment for each covered commodity on the farm for which the election is made. (2) Method of updating yields for covered commoditiesIf the owner of a farm elects to update yields under paragraph (1), the payment yield for a covered commodity on the farm, for the purpose of calculating price loss coverage payments only, shall be equal to the product obtained by multiplying—(A) 90 percent; (B) the average of the yield per planted acre for the crop of covered commodities on the farm for the 2013 through 2017 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the covered commodity was zero; and (C) subject to paragraph (3), the ratio obtained by dividing—(i) the average of the 2008 through 2012 national average yield per planted acre for the covered commodity, as determined by the Secretary; by (ii) the average of the 2013 through 2017 national average yield per planted acre for the covered commodity, as determined by the Secretary. (3) LimitationIn no case shall the ratio obtained under paragraph (2)(C) be less than 90 percent or greater than 100 percent. (4) Use of county average yieldFor the purposes of determining the average yield per planted acre under paragraph (2)(B), if the yield per planted acre for a crop of a covered commodity for a farm for any of the crop years described in that subparagraph was less than 75 percent of the average of county yields for those crop years for that commodity, the Secretary shall assign a yield for that crop year equal to 75 percent of the average of the 2013 through 2017 county yield for the covered commodity. (5) Upland cotton conversionIn the case of seed cotton, for purposes of determining the average of the yield per planted acre under this subsection, the average yield for seed cotton per planted acre shall be equal to 2.4 times the average yield for upland cotton per planted acre. (6) Time for electionAn election under this subsection shall be made at a time and manner so as to be in effect beginning with the 2020 crop year, as determined by the Secretary. (e) Payment yield for seed cotton(1) Payment yieldSubject to paragraph (2), the payment yield for seed cotton for a farm shall be equal to 2.4 times the payment yield for upland cotton for the farm established under section 8714(e)(3) of this title (as in effect on September 30, 2013). (2) UpdateAt the sole discretion of the owner of a farm with a yield for upland cotton described in paragraph (1), the owner of the farm shall have a 1-time opportunity to update the payment yield for upland cotton for the farm, as provided in subsection (d), for the purpose of calculating the payment yield for seed cotton under paragraph (1).

7 U.S.C. § 9014 Payment acres

(a) Determination of payment acres(1) General ruleFor the purpose of price loss coverage and agriculture risk coverage when county coverage has been selected under section 9015(b)(1) of this title, but subject to subsection (e), the payment acres for each covered commodity on a farm shall be equal to 85 percent of the base acres for the covered commodity on the farm. (2) Effect of individual coverageIn the case of agriculture risk coverage when individual coverage has been selected under section 9015(b)(2) of this title, but subject to subsection (e), the payment acres for a farm shall be equal to 65 percent of the base acres for all of the covered commodities on the farm. (b) Treatment of generic base acres(1) In generalIn the case of generic base acres, price loss coverage payments and agriculture risk coverage payments are made only with respect to generic base acres planted to a covered commodity for the crop year. (2) AttributionWith respect to a farm containing generic base acres, for the purpose of applying paragraphs (1) and (2) of subsection (a), generic base acres on the farm are attributed to a covered commodity in the following manner:(A) If a single covered commodity is planted and the total acreage planted exceeds the generic base acres on the farm, the generic base acres are attributed to that covered commodity in an amount equal to the total number of generic base acres. (B) If multiple covered commodities are planted and the total number of acres planted to all covered commodities on the farm exceeds the generic base acres on the farm, the generic base acres are attributed to each of the covered commodities on the farm on a pro rata basis to reflect the ratio of—(i) the acreage planted to a covered commodity on the farm; to (ii) the total acreage planted to all covered commodities on the farm. (C) If the total number of acres planted to all covered commodities on the farm does not exceed the generic base acres on the farm, the number of acres planted to a covered commodity is attributed to that covered commodity. (3) Treated as additional acreageWhen generic base acres are planted to a covered commodity or acreage planted to a covered commodity is attributed to generic base acres, the generic base acres are in addition to other base acres on the farm. (4) Seed cotton(A) In generalNot later than 90 days after February 9, 2018, the Secretary shall require the owner of a farm to allocate all generic base acres on the farm under subparagraph (B) or (C), or both. (B) No recent history of covered commoditiesIn the case of a farm on which no covered commodities (including seed cotton) were planted or were prevented from being planted at any time during the 2009 through 2016 crop years, the owner of such farm shall allocate generic base acres on the farm to unassigned crop base for which no payments may be made under section 9016 or 9017 of this title. (C) Recent history of covered commoditiesIn the case of a farm not described in subparagraph (B), the owner of such farm shall allocate generic base acres on the farm—(i) subject to subparagraph (D), to seed cotton base acres in a quantity equal to the greater of—(I) 80 percent of the generic base acres on the farm; or (II) the average number of seed cotton acres planted or prevented from being planted on the farm during the 2009 through 2012 crop years (not to exceed the total generic base acres on the farm); or (ii) to base acres for covered commodities (including seed cotton), by applying subparagraphs (B), (D), (E), and (F) of section 9012(a)(3) of this title. (D) Treatment of residual generic base acresIn the case of a farm on which generic base acres are allocated under subparagraph (C)(i), the residual generic base acres shall be allocated to unassigned crop base for which no payments may be made under section 9016 or 9017 of this title. (E) Effect of failure to allocateIn the case of a farm not described in subparagraph (B) for which the owner of the farm fails to make an election under subparagraph (C), the owner of the farm shall be deemed to have elected to allocate all generic base acres in accordance with subparagraph (C)(i). (c) ExclusionThe quantity of payment acres determined under subsection (a) may not include any crop subsequently planted during the same crop year on the same land for which the first crop is eligible for price loss coverage payments or agriculture risk coverage payments, unless the crop was approved for double cropping in the county, as determined by the Secretary. (d) Effect of minimal payment acres(1) Prohibition on paymentsNotwithstanding any other provision of this chapter, a producer on a farm may not receive price loss coverage payments or agriculture risk coverage payments if the sum of the base acres on the farm is 10 acres or less, as determined by the Secretary, unless the sum of the base acres on the farm, when combined with the base acres of other farms in which the producer has an interest, is more than 10 acres. (2) ExceptionsParagraph (1) does not apply to a producer that is—(A) a socially disadvantaged farmer or rancher (as defined in section 2003(e) of this title); (B) a limited resource farmer or rancher, as defined by the Secretary; (C) a beginning farmer or rancher (as defined in subsection (a) of section 2279 of this title); or (D) a veteran farmer or rancher (as defined in subsection (a) of section 2279 of this title). (e) Effect of planting fruits and vegetables(1) Reduction requiredIn the manner provided in this subsection, payment acres on a farm shall be reduced in any crop year in which fruits, vegetables (other than mung beans and pulse crops), or wild rice have been planted on base acres on a farm. (2) Price loss coverage and county coverageIn the case of price loss coverage payments and agricultural risk coverage payments using county coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 15 percent of base acres. (3) Individual coverageIn the case of agricultural risk coverage payments using individual coverage, the reduction under paragraph (1) shall be the amount equal to the base acres planted to crops referred to in such paragraph in excess of 35 percent of base acres. (4) Reduction exceptionsNo reduction to payment acres shall be made under this subsection if—(A) cover crops or crops referred to in paragraph (1) are grown solely for conservation purposes and not harvested for use or sale, as determined by the Secretary; or (B) in any region in which there is a history of double-cropping covered commodities with crops referred to in paragraph (1) and such crops were so double-cropped on the base acres, as determined by the Secretary. (5) Effect of reductionFor each crop year for which fruits, vegetables (other than mung beans and pulse crops), or wild rice are planted to base acres on a farm for which a reduction in payment acres is made under this subsection, the Secretary shall consider such base acres to be planted, or prevented from being planted, to a covered commodity for purposes of any adjustment or reduction of base acres for the farm under section 9012 of this title. (f) Unassigned crop baseThe Secretary shall maintain information on generic base acres on a farm allocated as unassigned crop base under subsection (b)(4).

7 U.S.C. § 9015 Producer election

(a) Election requiredFor the 2014 through 2018 crop years (except as provided in subsection (g)) and for the 2019 through 2031 crop years (subject to subsection (h)), all of the producers on a farm shall make a 1-time, irrevocable election to obtain—(1) price loss coverage under section 9016 of this title on a covered commodity-by-covered-commodity basis; or (2) agriculture risk coverage under section 9017 of this title. (b) Coverage optionsIn the election under subsection (a) or (h), as applicable, the producers on a farm that elect to obtain agriculture risk coverage shall unanimously select whether to receive agriculture risk coverage payments based on—(1) county coverage applicable on a covered commodity-by-covered-commodity basis; or (2) individual coverage applicable to all of the covered commodities on the farm. (c) Effect of failure to make unanimous electionIf all the producers on a farm fail to make a unanimous election under subsection (a) for the 2014 crop year, the 2019 crop year, or the 2026 crop year, as applicable—(1) the Secretary shall not make any payments with respect to the farm for the 2014 crop year, the 2019 crop year, or the 2026 crop year, as applicable, under section 9016 or 9017 of this title; and (2) subject to subsection (h), the producers on the farm shall be deemed to have elected, as applicable—(A) price loss coverage for all covered commodities on the farm for the 2015 through 2018 crop years; (B) the same coverage for each covered commodity on the farm for the 2020 through 2023 crop years as was applicable for the 2015 through 2018 crop years; and (C) the same coverage for each covered commodity on the farm for the 2027 through 2031 crop years as was applicable for the 2025 crop year. (d) Effect of selection of county coverageIf all the producers on a farm select county coverage for a covered commodity under subsection (b)(1), the Secretary may not make price loss coverage payments under section 9016 of this title to the producers on the farm with respect to that covered commodity. (e) Effect of selection of individual coverageIf all the producers on a farm select individual coverage under subsection (b)(2), in addition to the selection and election under this section applying to each producer on the farm, the Secretary shall consider, for purposes of making the calculations required by subsections (b)(2) and (c)(3) of section 9017 of this title, the producer’s share of all farms in the same State—(1) in which the producer has an interest; and (2) for which individual coverage has been selected. (f) Prohibition on reconstitutionThe Secretary shall ensure that producers on a farm do not reconstitute the farm to void or change an election or selection made under this section. (g) Special election(1) In generalIn the case of acres allocated to seed cotton on a farm, for the 2018 crop year, all of the producers on the farm shall be given the opportunity to make a new 1-time election under 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 electionIf 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 generalFor the 2021 crop year and each crop year thereafter, all of the producers on a farm may change the election under subsection (a), subsection (c), or this subsection, as applicable, to price loss coverage or agriculture risk coverage, as applicable. (2) ApplicabilityAn 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 paragraph. (i) Higher of price loss coverage payments and agriculture risk coverage paymentsFor the 2025 crop year, the Secretary shall, on a covered commodity-by-covered commodity basis, make the higher of price loss coverage payments under section 9016 of this title and agriculture risk coverage county coverage payments under section 9017 of this title to the producers on a farm for the payment acres for each covered commodity on the farm.

7 U.S.C. § 9016 Price loss coverage

(a) Price loss coverage paymentsIf 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 subsection (c)(2) of such section, the Secretary shall make price loss coverage payments to producers on the farm on a covered commodity-by-covered-commodity basis if the Secretary determines that—(1) for any of the 2014 through 2018 crop years—(A) the effective price for the covered commodity 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 2031 crop years—(A) the effective price for the covered commodity for the crop year; is less than (B) the effective reference price for the covered commodity for the crop year. (b) Effective priceThe effective price for a covered commodity for a crop year shall be the higher of—(1) the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or (2) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II. (c) Payment rate(1) In general(A) 2014 through 2018 crop yearsFor 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 2031 crop yearsFor the 2019 through 2031 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. (2) AnnouncementNot later than 30 days after the end of each applicable 12-month marketing year for each covered commodity, the Secretary shall publish the payment rate determined under paragraph (1). (3) Insufficient dataIn the case of a covered commodity, such as temperate japonica rice, for which the Secretary cannot determine the payment rate for the most recent 12-month marketing year by the date described in paragraph (2) due to insufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, the Secretary shall publish the payment rate as soon as practicable after the marketing year data are made available. (d) Payment amountIf price loss coverage payments are required to be provided under this section for any of the 2014 through 2031 crop years for a covered commodity, 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 commodity under subsection (c); (2) the payment yield for the covered commodity; and (3) the payment acres for the covered commodity. (e) Time for paymentsIf 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 barleyIn determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price. (g) Reference price for temperate japonica riceIn order to reflect price premiums, the Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to the amount established under paragraph (19)(A)(vi) of section 9011 of this title, as adjusted by paragraph (8) of such section, multiplied by the ratio obtained by dividing—(1) the simple average of the marketing year average price of medium grain rice from the 2017 through 2021 crop years; by (2) the simple average of the marketing year average price of all rice from the 2017 through 2021 crop years. (h) Effective price for seed cotton(1) In generalThe effective price for seed cotton under subsection (b) shall be equal to the marketing year average price for seed cotton, as calculated under paragraph (2). (2) CalculationThe 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 cotton lint production, measured in pounds; and (ii) the product obtained by multiplying—(I) the cottonseed marketing year average 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.

7 U.S.C. § 9017 Agriculture risk coverage

(a) Agriculture risk coverage paymentsIf 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 2031 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 coverageIn 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 coverageIn 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 generalThe agriculture risk coverage guarantee for a crop year for a covered commodity shall equal 86 percent of the benchmark revenue for each of the 2014 through 2024 crop years and 90 percent of the benchmark revenue for each of the 2025 through 2031 crop years. (2) Benchmark revenue for county coverageIn 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 coverageIn 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 2031 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 yearsEffective for the 2014 through 2018 crop years, if the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of the 5 most recent crop years, as determined by the Secretary, is less than 70 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) or (3)(A)(i) shall be 70 percent of the transitional yield. (B) 2019 through 2031 crop yearsEffective for the 2019 through 2031 crop years, if the yield per planted acre for the covered commodity or historical county yield per planted acre for the covered commodity for any of the 5 most recent crop years, as determined by the Secretary, is less than 80 percent of the transitional yield, as determined by the Secretary, the amounts used for any of those years in paragraph (2)(A) or (3)(A)(i) shall be 80 percent of the transitional yield. (5) Trend-adjusted yieldThe Secretary shall calculate and use a trend-adjusted yield factor to adjust the yield determined under paragraph (2)(A) and subsection (b)(1)(A), taking into consideration, but not exceeding, the trend-adjusted yield factor that is used to increase yield history under the endorsement under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for that crop and county. (6) Low national average market price(A) Reference priceFor the 2014 through 2018 crop years, if the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop years is lower than the reference price for the covered commodity, the Secretary shall use the reference price for any of those years for the amounts in paragraph (2)(B) or (3)(A)(ii). (B) Effective reference priceFor the 2019 through 2031 crop years, if the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop years is lower than the effective reference price for the covered commodity, the Secretary shall use the effective reference price for any of those years for the amounts in paragraph (2)(B) or (3)(A)(ii). (d) Payment rate(1) In generalThe 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)(i) for each of the 2014 through 2024 crop years, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and (ii) for each of the 2025 through 2031 crop years, 12 percent of the benchmark revenue for the crop year applicable under subsection (c). (2) AnnouncementNot later than 30 days after the end of each applicable 12-month marketing year for each covered commodity, the Secretary shall publish the payment rate determined under paragraph (1) for each county. (e) Payment amountIf agriculture risk coverage payments are required to be paid for any of the 2014 through 2031 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 paymentsIf the Secretary determines that agriculture risk coverage payments are required to be provided for the covered commodity, 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. (g) Additional duties of the SecretaryIn 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 2031 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 generalFor 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 generalExcept as provided in clauses (ii) and (iii), not later than 30 days after the end of each applicable 12-month marketing year, the Secretary shall publish the information described in subparagraph (A). (ii) Insufficient dataIn 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) TransitionNot later than 60 days after December 20, 2018, the Secretary shall publish the information described in clauses (i) and (ii) of subparagraph (A) for the 2018 crop year. (2) Actual average county yieldAs soon as practicable after each crop year, the Secretary shall determine and publish each actual average county yield for each covered commodity, as determined under subsection (b)(1)(A). (3) Data sources for county yieldsFor 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 generalFor purposes of agriculture risk coverage payments in the case of county coverage, a county may be divided into not greater than 2 administrative units in accordance with this subsection. (2) Eligible countiesA 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) ElectionsBefore making any agriculture risk coverage payments for the 2019 crop year, the Farm Service Agency State committee, in consultation with the Farm Service Agency county or area committee of a county described in paragraph (2), may make a 1-time election to divide the county into administrative units under this subsection along a boundary that better reflects differences in weather patterns, soil types, or other factors. (4) LimitationThe 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) AdministrationFor purposes of providing agriculture risk coverage payments in the case of county coverage, the Secretary shall consider an administrative unit elected under paragraph (3) to be a county for the 2019 through 2031 crop years.

7 U.S.C. § 9018 Producer agreements

(a) Compliance with certain requirements(1) RequirementsBefore the producers on a farm may receive payments under this subchapter with respect to the farm, the producers shall agree, 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.); (C) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary; and (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 an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential use, as determined by the Secretary. (2) ComplianceThe Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1). (3) ModificationAt 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 generalExcept as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which payments under this subchapter are provided shall result in the termination of the payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a). (B) Effective dateThe termination shall take effect on the date determined by the Secretary. (2) ExceptionIf a producer entitled to a payment under this subchapter 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 reportsAs a condition on the receipt of any benefits under this subchapter or subchapter II, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm. (d) Production reportsAs an additional condition on receiving agriculture risk coverage payments for individual coverage, the Secretary shall require a producer on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on all farms in the same State—(1) in which the producer has an interest; and (2) for which individual coverage has been selected. (e) Effect of inaccurate reportsNo penalty with respect to benefits under this subchapter or subchapter II shall be assessed against a producer on a farm for an inaccurate acreage or production report unless the Secretary determines that the producer on the farm knowingly and willfully falsified the acreage or production report. (f) Tenants and sharecroppersIn carrying out this subchapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. (g) Sharing of paymentsThe Secretary shall provide for the sharing of payments made under this subchapter among the producers on a farm on a fair and equitable basis.

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