Safety net

(a) Reference price Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)) is amended to read as follows: (19) Reference price (A) In general 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) Effectiveness Effective 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) Limitation In no case shall a reference price for a covered commodity exceed 115 percent of the reference price for such covered commodity listed in subparagraph (A).. (b) Base acres Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended— (1) in subsection (d)(3)(A), by striking 2023 and inserting 2031; and (2) by adding at the end the following: (e) Additional base acres (1) In general As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (4) 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. (2) Content of notice The 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 (4). (C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (4) through an appeals process established by the Secretary. (3) Opt-out 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. (4) Eligibility (A) In general Subject 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 sum The 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 commodities The 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 commodities In 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 defined In 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. (5) Number of base acres Subject to paragraphs (4) and (7), 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 (4) from the amount determined under subparagraph (B) of that paragraph; and (B) include unassigned crop base. (6) Allocation of acres (A) Allocation The Secretary shall allocate the number of base acres under paragraph (5) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years. (B) Allocation formula The 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 (4)(B)(i). (C) Inclusion of all 5 years in average For 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 planting For 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) Limitation The 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. (7) Reduction by the Secretary In 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. (8) Payment yield Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, 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 1113(c). (9) Treatment of new owners In the case of a farm for which the owner on the date of enactment of this subsection 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 (4); (B) eligible acres under paragraph (5); and (C) the allocation of acres under paragraph (6).. (c) Producer election Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended— (1) in subsection (a), in the matter preceding paragraph (1) by striking 2023 and inserting 2031; and (2) in subsection (c)— (A) in the matter preceding paragraph (1), by striking 2014 crop year or the 2019 crop year, as applicable and inserting 2014 crop year, 2019 crop year, or 2026 crop year, as applicable; (B) in paragraph (1), by striking 2014 crop year or the 2019 crop year, as applicable, and inserting 2014 crop year, 2019 crop year, or 2026 crop year, as applicable,; and (C) in paragraph (2)— (i) in subparagraph (A), by striking and at the end; (ii) in subparagraph (B), by striking the period at the end and inserting; and; and (iii) by adding at the end the following: (C) the same coverage for each covered commodity on the farm for the 2026 through 2031 crop years as was applicable for the 2024 crop year.. (d) Price loss coverage Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended— (1) in subsection (a)(2), in the matter preceding subparagraph (A), by striking 2023 and inserting 2031; (2) in subsection (c)(1)(B)— (A) in the subparagraph heading, by striking 2023 and inserting 2031; and (B) in the matter preceding clause (i), by striking 2023 and inserting 2031; (3) in subsection (d), by striking 2025 and inserting 2031; and (4) in subsection (g), by striking 2012 through 2016 each place it appears and inserting 2017 through 2021. (e) Agriculture risk coverage Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended— (1) in subsection (a), in the matter preceding paragraph (1), by striking 2023 and inserting 2031; (2) in subsection (c)— (A) in paragraph (1), by inserting 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 before the period at the end; (B) by striking 2023 each place it appears and inserting 2031; and (C) in paragraph (4)(B), in the subparagraph heading, by striking 2023 and inserting 2031; (3) by amending subsection (d)(1)(B) to read as follows: (B) (i) for each of the crop years 2014 through 2024, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and (ii) for each of the crop years 2025 through 2031, 12.5 percent of the benchmark revenue for the crop year applicable under subsection (c).; and (4) in subsections (e), (g)(5), and (i)(5), by striking 2023 each place it appears and inserting 2031. (f) Equitable treatment of certain entities (1) In general Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended— (A) in subsection (a)— (i) by redesignating paragraph (5) as paragraph (6); and (ii) by inserting after paragraph (4) the following: (5) Qualified pass-through entity The term qualified pass-through entity means— (A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986); (B) an S corporation (as defined in section 1361 of that Code); (C) a limited liability company that does not affirmatively elect to be treated as a corporation; and (D) a joint venture or general partnership.; (B) in subsections (b) and (c), by striking except a joint venture or general partnership each place it appears and inserting except a qualified pass-through entity; and (C) in subsection (d), by striking subtitle B and all that follows through the end and inserting title I of the Agricultural Act of 2014.. (2) Attribution of payments Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended— (A) in the clause heading, by striking joint ventures and general partnerships and inserting qualified pass-through entities; (B) by striking a joint venture or a general partnership and inserting a qualified pass-through entity; (C) by striking joint ventures and general partnerships and inserting qualified pass-through entities; and (D) by striking the joint venture or general partnership and inserting the qualified pass-through entity. (3) Persons actively engaged in farming Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–1(b)(2)) is amended— (A) in subparagraphs (A) and (B), by striking in a general partnership, a participant in a joint venture each place it appears and inserting a qualified pass-through entity; and (B) in subparagraph (C), by striking a general partnership, joint venture, or similar entity and inserting a qualified pass-through entity or a similar entity. (4) Joint and several liability Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308–2(d)) is amended by striking partnerships and joint ventures and inserting qualified pass-through entities. (5) Exclusion from AGI calculation Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(d)) is amended by striking, general partnership, or joint venture each place it appears. (g) Payment limitations Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended— (1) in subsection (b)— (A) by striking The and inserting Subject to subsection (i), the; and (B) by striking $125,000 and inserting $155,000; (2) in subsection (c)— (A) by striking The and inserting Subject to subsection (i), the; and (B) by striking $125,000 and inserting $155,000; and (3) by adding at the end the following: (i) Adjustment For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.. (h) Adjusted gross income limitation Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended— (1) in paragraph (1), by striking paragraph (3) and inserting paragraphs (3) and (4); and (2) by adding at the end the following: (4) Exception for certain operations (A) Definitions In this paragraph: (i) Excepted payment or benefit The term excepted payment or benefit means— (I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.); (II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and (III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024. (ii) Farming, ranching, or silviculture activities The term farming, ranching, or silviculture activities includes agritourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment by a person or legal entity that owns such equipment, and other agriculture-related activities, as determined by the Secretary. (B) Exception In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.. (i) Marketing loans (1) Availability of nonrecourse marketing assistance loans for loan commodities Section 1201(b)(1) of the Agricultural Act of 2014 (7 U.S.C. 9031(b)(1)) is amended by striking 2023 and inserting 2031. (2) Loan rates for nonrecourse marketing assistance loans Section 1202 of the Agricultural Act of 2014 (7 U.S.C. 9032) is amended— (A) in subsection (b)— (i) in the subsection heading, by striking 2023 and inserting 2025; and (ii) in the matter preceding paragraph (1), by striking 2023 and inserting 2025; (B) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; (C) by inserting after subsection (b) the following: (c) 2026 through 2031 crop years For purposes of each of the 2026 through 2031 crop years, the loan rate for a marketing assistance loan under section 1201 for a loan commodity shall be equal to the following: (1) In the case of wheat, $3.72 per bushel. (2) In the case of corn, $2.42 per bushel. (3) In the case of grain sorghum, $2.42 per bushel. (4) In the case of barley, $2.75 per bushel. (5) In the case of oats, $2.20 per bushel. (6) In the case of upland cotton, $0.55 per pound. (7) In the case of extra long staple cotton, $1.00 per pound. (8) In the case of long grain rice, $7.70 per hundredweight. (9) In the case of medium grain rice, $7.70 per hundredweight. (10) In the case of soybeans, $6.82 per bushel. (11) In the case of other oilseeds, $11.10 per hundredweight for each of the following kinds of oilseeds: (A) Sunflower seed. (B) Rapeseed. (C) Canola. (D) Safflower. (E) Flaxseed. (F) Mustard seed. (G) Crambe. (H) Sesame seed. (I) Other oilseeds designated by the Secretary. (12) In the case of dry peas, $6.87 per hundredweight. (13) In the case of lentils, $14.30 per hundredweight. (14) In the case of small chickpeas, $11.00 per hundredweight. (15) In the case of large chickpeas, $15.40 per hundredweight. (16) In the case of graded wool, $1.60 per pound. (17) In the case of nongraded wool, $0.55 per pound. (18) In the case of mohair, $5.00 per pound. (19) In the case of honey, $1.50 per pound. (20) In the case of peanuts, $390 per ton.; (D) in subsection (d) (as so redesignated), by striking (a)(11) and (b)(11) and inserting (a)(11), (b)(11), and (c)(11); and (E) by amending subsection (e) (as so redesignated) to read as follows: (e) Special rule for seed cotton and corn (1) In general For purposes of section 1116(b)(2) and paragraphs (1)(B)(ii) and (2)(A)(ii)(II) of section 1117(b), the loan rate shall be deemed to equal— (A) for seed cotton, $0.30 per pound; and (B) for corn, $3.30 per bushel. (2) Effect Nothing in this subsection authorizes any nonrecourse marketing assistance loan under this subtitle for seed cotton.. (3) Payment of cotton storage costs Section 1204(g) of the Agricultural Act of 2014 (7 U.S.C. 9034(g)) is amended— (A) by striking Effective and inserting the following: (1) Crop years 2014 through 2025 Effective; (B) in paragraph (1) (as so designated), by striking 2023 and inserting 2025; and (C) by adding at the end the following: (2) Payment of cotton storage costs Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of— (A) the submitted tariff rate for the current marketing year; and (B) in the case of storage in— (i) California or Arizona, a payment rate of $4.90; and (ii) any other State, a payment rate of $3.00.. (4) Loan deficiency payments (A) Continuation Section 1205(a)(2)(B) of the Agricultural Act of 2014 (7 U.S.C. 9035(a)(2)(B)) is amended by striking 2023 and inserting 2031. (B) Payments in lieu of LDPs Section 1206 of the Agricultural Act of 2014 (7 U.S.C. 9036) is amended, in subsections (a) and (d), by striking 2023 each place it appears and inserting 2031. (5) Special competitive provisions for extra long staple cotton Section 1208(a) of the Agricultural Act of 2014 (7 U.S.C. 9038(a)) is amended, in the matter preceding paragraph (1), by striking 2026 and inserting 2032. (6) Availability of recourse loans Section 1209 of the Agricultural Act of 2014 (7 U.S.C. 9039) is amended, in subsections (a)(2), (b), and (c), by striking 2023 each place it appears and inserting 2031. (j) Repayment of marketing loans Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended— (1) in subsection (b)— (A) by redesignating paragraph (1) as subparagraph (A) and indenting appropriately; (B) in the matter preceding subparagraph (A) (as so redesignated), by striking The Secretary and inserting the following: (1) In general The Secretary; and (C) by striking paragraph (2) and inserting the following: (B) (i) in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or (ii) in the case of upland cotton, the lowest prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the day on which the producer repays the marketing assistance loan. (2) Refund for upland cotton In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price described in that paragraph and the repayment amount.; (2) in subsection (c)— (A) by striking the period at the end and inserting; and; (B) by striking at the loan rate and inserting the following: at a rate that is the lesser of— (1) the loan rate; and (C) by adding at the end the following: (2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.; (3) in subsection (d)— (A) in paragraph (1), by striking and medium grain rice and inserting medium grain rice, and extra long staple cotton; (B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (C) in the matter preceding subparagraph (A) (as so redesignated), by striking For purposes and inserting the following: (1) In general For purposes; and (D) by adding at the end the following: (2) Upland cotton In the case of upland cotton, for any period when price quotations for Middling (M) 1 3/32 -inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.; and (4) in subsection (e)— (A) in the subsection heading, by inserting extra long staple cotton, after Upland cotton,; (B) in paragraph (2)— (i) in the paragraph heading, by striking Cotton and inserting Upland Cotton; and (ii) in subparagraph (B), in the matter preceding clause (i), by striking 2024 and inserting 2032; (C) by redesignating paragraph (3) as paragraph (4); and (D) by inserting after paragraph (2) the following: (3) Extra long staple cotton The prevailing world market price for extra long staple cotton determined under subsection (d)— (A) shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and (B) may be further adjusted, during the period beginning on the date of enactment of this paragraph and ending on July 31, 2032, if the Secretary determines the adjustment is necessary— (i) to minimize potential loan forfeitures; (ii) to minimize the accumulation of stocks of extra long staple cotton by the Federal Government; (iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and (iv) to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if— (I) there are insufficient current-crop price quotations; and (II) the forward-crop price quotation is the lowest such quotation available.. (k) Economic adjustment assistance for textile mills Section 1207(c) of the Agricultural Act of 2014 (7 U.S.C. 9037(c)) is amended by striking paragraph (2) and inserting the following: (2) Value of assistance The value of the assistance provided under paragraph (1) shall be— (A) for the period beginning on August 1, 2013, and ending on July 31, 2025, 3 cents per pound; and (B) beginning on August 1, 2025, 5 cents per pound.. (l) Sugar program updates (1) Loan rate modifications Section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended— (A) in subsection (a)— (i) in paragraph (4), by striking and at the end; (ii) in paragraph (5), by striking 2023 crop years. and inserting 2024 crop years; and; and (iii) by adding at the end the following: (6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.; (B) in subsection (b)— (i) in paragraph (1), by striking and at the end; (ii) in paragraph (2), by striking 2023 crop years. and inserting 2024 crop years; and; and (iii) by adding at the end the following: (3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.; and (C) in subsection (i), by striking 2023 and inserting 2031. (2) Adjustments to Commodity Credit Corporation storage rates Section 167 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7287) is amended— (A) by striking subsection (a) and inserting the following: (a) In general The Commodity Credit Corporation shall establish rates for the storage of forfeited sugar in an amount that is not less than— (1) in the case of refined sugar, 34 cents per hundredweight per month; and (2) in the case of raw cane sugar, 27 cents per hundredweight per month.; and (B) in subsection (b)— (i) in the subsection heading, by striking Subsequent and inserting Prior; and (ii) by striking and subsequent and inserting through 2024. (3) Modernizing beet sugar allotments (A) Sugar estimates Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking 2023 and inserting 2031. (B) Allocation to processors Section 359c(g)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc(g)(2)) is amended— (i) by striking In the case and inserting the following: (A) In general Except as provided in subparagraph (B), in the case; and (ii) by adding at the end the following: (B) Exception If the Secretary makes an upward adjustment under paragraph (1)(A), in adjusting allocations among beet sugar processors, the Secretary shall give priority to beet sugar processors with available sugar.. (C) Timing of reassignment Section 359e(b)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)(2)) is amended— (i) by redesignating subparagraphs (A) through (C) as clauses (i) through (iii), respectively, and indenting appropriately; (ii) in the matter preceding clause (i) (as so redesignated), by striking If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment will be unable to market that allocation and inserting the following: (A) In general If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment for the crop year will be unable to market that allocation; and (iii) by adding at the end the following: (B) Timing In carrying out subparagraph (A), the Secretary shall— (i) make an initial determination following the publication of the World Agricultural Supply and Demand Estimates (in this subparagraph referred to as WASDE) approved by the World Agricultural Outlook Board for the month of January that is applicable to the crop year for which a determination under subparagraph (A) is made; and (ii) provide for an initial reassignment under subparagraph (A)(i) not later than 30 days after the date of the announcement of such WASDE.. (4) Reallocations of tariff-rate quota shortfall Section 359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) is amended by adding at the end the following: (c) Reallocation (1) Initial reallocation Subject to paragraph (3), following the establishment of the tariff-rate quotas under subsection (a) for a quota year, the Secretary shall— (A) determine which countries do not intend to fulfill their allocation for the quota year; and (B) reallocate any forecasted shortfall in the fulfillment of the tariff-rate quotas as soon as practicable. (2) Subsequent reallocation Subject to paragraph (3), not later than March 1 of a quota year, the Secretary shall reallocate any additional forecasted shortfall in the fulfillment of the tariff-rate quotas for raw cane sugar established under subsection (a)(1) for that quota year. (3) Cessation of effectiveness Paragraphs (1) and (2) shall cease to be in effect if— (A) the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico, signed December 19, 2014, is terminated; and (B) no countervailing duty order under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) is in effect with respect to sugar from Mexico. (d) Refined sugar (1) Definition of domestic sugar industry In this subsection, the term domestic sugar industry means domestic— (A) sugar beet producers and processors; (B) producers and processors of sugar cane; and (C) refiners of raw cane sugar. (2) Study required (A) In general Not later than 180 days after the date of enactment of this subsection, the Secretary shall conduct a study on whether the establishment of additional terms and conditions with respect to refined sugar imports is necessary and appropriate. (B) Elements In conducting the study under subparagraph (A), the Secretary shall examine the following: (i) The need for— (I) defining refined sugar as having a minimum polarization of 99.8 degrees or higher; (II) establishing a standard for color- or reflectance-based units for refined sugar such as those utilized by the International Commission of Uniform Methods of Sugar Analysis; (III) prescribing specifications for packaging type for refined sugar; (IV) prescribing specifications for transportation modes for refined sugar; (V) requiring affidavits or other evidence that sugar imported as refined sugar will not undergo further refining in the United States; (VI) prescribing appropriate terms and conditions to avoid unlawful sugar imports; and (VII) establishing other definitions, terms and conditions, or other requirements. (ii) The potential impact of modifications described in each of subclauses (I) through (VII) of clause (i) on the domestic sugar industry. (iii) Whether, based on the needs described in clause (i) and the impact described in clause (ii), the establishment of additional terms and conditions is appropriate. (C) Consultation In conducting the study under subparagraph (A), the Secretary shall consult with representatives of the domestic sugar industry and users of refined sugar. (D) Report Not later than 1 year after the date of enactment of this subsection, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the study conducted under subparagraph (A). (3) Establishment of additional terms and conditions permitted (A) In general Based on the findings in the report submitted under paragraph (2)(D), and after providing notice to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, the Secretary may issue regulations in accordance with subparagraph (B) to establish additional terms and conditions with respect to refined sugar imports that are necessary and appropriate. (B) Promulgation of regulations The Secretary may issue regulations under subparagraph (A) if the regulations— (i) do not have an adverse impact on the domestic sugar industry; and (ii) are consistent with the requirements of this part, section 156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), and obligations under international trade agreements that have been approved by Congress.. (5) Clarification of tariff-rate quota adjustments Section 359k(b)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk(b)(1)) is amended, in the matter preceding subparagraph (A), by striking if there is an and inserting for the sole purpose of responding directly to an (6) Period of effectiveness Section 359l(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by striking 2023 and inserting 2031. (m) Dairy policy updates (1) Dairy margin coverage production history (A) Definition Section 1401(8) of the Agricultural Act of 2014 (7 U.S.C. 9051(8)) is amended by striking when the participating dairy operation first registers to participate in dairy margin coverage. (B) Production history of participating dairy operations Section 1405 of the Agricultural Act of 2014 (7 U.S.C. 9055) is amended— (i) by amending subsection (a) to read as follows: (a) Production history Except as provided in subsection (b), the production history of a dairy operation for dairy margin coverage is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2021, 2022, or 2023 calendar years.; and (ii) by amending subsection (b) to read as follows: (b) Election by new dairy operations In the case of a participating dairy operation that has been in operation for less than a year, the participating dairy operation shall elect 1 of the following methods for the Secretary to determine the production history of the participating dairy operation: (1) The volume of the actual milk marketings for the months the participating dairy operation has been in operation extrapolated to a yearly amount. (2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary.. (2) Dairy margin coverage payments Section 1406(a)(1)(C) of the Agricultural Act of 2014 (7 U.S.C. 9056(a)(1)(C)) is amended by striking 5,000,000 and inserting 6,000,000 each place it appears. (3) Premiums for dairy margins (A) Tier I Section 1407(b) of the Agricultural Act of 2014 (7 U.S.C. 9057(b)) is amended— (i) in the heading, by striking 5,000,000 and inserting 6,000,000; and (ii) in paragraph (1), by striking 5,000,000 and inserting 6,000,000. (B) Tier II Section 1407(c) of the Agricultural Act of 2014 (7 U.S.C. 9057(c)) is amended— (i) in the heading, by striking 5,000,000 and inserting 6,000,000; and (ii) in paragraph (1), by striking 5,000,000 and inserting 6,000,000. (C) Premium discounts Section 1407(g) of the Agricultural Act of 2014 (7 U.S.C. 9057(g)) is amended— (i) in paragraph (1)— (I) by striking 2019 through 2023 and inserting 2026 through 2031; and (II) by striking January 2019 and inserting January 2026; and (ii) in paragraph (2), by striking 2023 each place it appears and inserting 2031. (4) Duration Section 1409 of the Agricultural Act of 2014 (7 U.S.C. 9059) is amended by striking 2025 and inserting 2031. (n) Suspension of permanent price support authority Section 1602 of the Agricultural Act of 2014 (7 U.S.C. 9092) is amended by striking 2023 each place it appears and inserting 2031. (o) Implementation Section 1614(c) of the Agricultural Act of 2014 (7 U.S.C. 9097(c)) is amended by adding at the end the following: (5) Fiscal year 2025 reconciliation The Secretary shall make available to the Farm Service Agency to carry out section 10101 of the Act titled An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14, and the amendments made by that section, $50,000,000, to remain available until expended, of which— (A) not less than $5,000,000 shall be used to carry out paragraphs (3) and (4) of subsection (b); (B) $3,000,000 shall be used for activities described in paragraph (3)(A) of this subsection; (C) $3,000,000 shall be used for activities described in paragraph (3)(B) of this subsection; and (D) $10,000,000 shall be used to— (i) carry out mandatory surveys of dairy production cost and product yield information to be reported by manufacturers required to report under section 273 of the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b), for all products processed in the same facility or facilities; and (ii) publish the results of such surveys biennially.. (p) Livestock safety net updates (1) In general Section 1501(b) of the Agricultural Act of 2014 (7 U.S.C. 9081(b)) is amended— (A) by amending paragraph (2) to read as follows: (2) Payment rates (A) Losses due to predation Indemnity payments to an eligible producer on a farm under paragraph (1)(A) shall be made at a rate of 100 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. (B) Losses due to adverse weather or disease Indemnity payments to an eligible producer on a farm under subparagraph (B) or (C) of paragraph (1) shall be made at a rate of 75 percent of the market value of the affected livestock on the applicable date, as determined by the Secretary. (C) Determination of market value In determining the market value described in subparagraphs (A) and (B), the Secretary may consider the ability of eligible producers to document regional price premiums for affected livestock that exceed the national average market price for those livestock. (D) Applicable date defined In this paragraph, the term applicable date means, with respect to livestock, as applicable— (i) the day before the date of death of the livestock; or (ii) the day before the date of the event that caused the harm to the livestock that resulted in a reduced sale price.; and (B) by adding at the end the following: (5) Additional payment for unborn livestock (A) In general In the case of unborn livestock death losses incurred on or after January 1, 2024, the Secretary shall make an additional payment to eligible producers on farms that have incurred such losses in excess of the normal mortality due to a condition specified in paragraph (1). (B) Payment rate Additional payments under subparagraph (A) shall be made at a rate— (i) determined by the Secretary; and (ii) less than or equal to 85 percent of the payment rate established with respect to the lowest weight class of the livestock, as determined by the Secretary, acting through the Administrator of the Farm Service Agency. (C) Payment amount The amount of a payment to an eligible producer that has incurred unborn livestock death losses shall be equal to the payment rate determined under subparagraph (B) multiplied, in the case of livestock described in— (i) subparagraph (A), (B), or (F) of subsection (a)(4), by 1; (ii) subparagraph (D) of such subsection, by 2; (iii) subparagraph (E) of such subsection, by 12; and (iv) subparagraph (G) of such subsection, by the average number of birthed animals (for one gestation cycle) for the species of each such livestock, as determined by the Secretary. (D) Unborn livestock death losses defined In this paragraph, the term unborn livestock death losses means losses of any livestock described in subparagraph (A), (B), (D), (E), (F), or (G) of subsection (a)(4) that was gestating on the date of the death of the livestock.. (2) Livestock forage disaster program Section 1501(c)(3)(D)(ii)(I) of the Agricultural Act of 2014 (7 U.S.C. 9081(c)(3)(D)(ii)(I)) is amended— (A) by striking 1 monthly payment and inserting 2 monthly payments; and (B) by striking county for at least 8 consecutive and inserting the following: county for not less than— (aa) 4 consecutive weeks during the normal grazing period for the county, as determined by the Secretary, shall be eligible to receive assistance under this paragraph in an amount equal to 1 monthly payment using the monthly payment rate determined under subparagraph (B); or (bb) any of the 7 of the previous 8 consecutive. (3) Emergency assistance for livestock, honey bees, and farm-raised fish Section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)) is amended by adding at the end the following: (5) Assistance for losses due to bird depredation (A) Payments Eligible producers on a farm of farm-raised fish, including fish grown as food for human consumption, shall be eligible to receive payments under this subsection to aid in the reduction of losses due to piscivorous birds. (B) Payment rate (i) In general The payment rate for payments under subparagraph (B) shall be determined by the Secretary, taking into account— (I) costs associated with the deterrence of piscivorous birds; (II) the value of lost fish and revenue due to bird depredation; and (III) costs associated with disease loss from bird depredation. (ii) Minimum rate The payment rate for payments under subparagraph (B) shall be not less than $600 per acre of farm-raised fish. (C) Payment amount The amount of a payment under subparagraph (B) shall be the product obtained by multiplying— (i) the applicable payment rate under subparagraph (C); and (ii) 85 percent of the total number of acres of farm-raised fish farms that the eligible producer has in production for the calendar year.. (4) Tree assistance program Section 1501(e) of the Agricultural Act of 2014 (7 U.S.C. 9081(e)) is amended— (A) in paragraph (2)(B), by striking 15 percent (adjusted for normal mortality) and inserting normal mortality; and (B) in paragraph (3)— (i) in subparagraph (A)(i), by striking 15 percent mortality (adjusted for normal mortality) and inserting normal mortality; and (ii) in subparagraph (B)— (I) by striking 50 and inserting 65; and (II) by striking 15 percent damage or mortality (adjusted for normal tree damage and mortality) and inserting normal tree damage or mortality. (q) Emergency assistance for honeybees In determining honeybee colony losses eligible for assistance under section 1501(d) of the Agricultural Act of 2014 (7 U.S.C. 9081(d)), the Secretary shall utilize a normal mortality rate of 15 percent. (r) Beginning farmer and rancher benefit (1) Definitions (A) In general Section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)) is amended in paragraph (3), by striking 5 and inserting 10. (B) Conforming amendment Section 522(c)(7) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)(7)) is amended by striking subparagraph (F). (2) Increase in assistance Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following paragraph: (9) Additional support (A) In general Notwithstanding any other provision of this subsection regarding payment of a portion of premiums, a beginning farmer or rancher shall receive premium assistance that is— (i) the number of percentage points specified in subparagraph (B) greater than the premium assistance that would otherwise be available under paragraphs (2) (except for subparagraph (A) of that paragraph), (5), (6), and (7) for the applicable policy, plan of insurance, and coverage level selected by the beginning farmer or rancher; plus (ii) any increase otherwise made available under this subsection. (B) Percentage points adjustments The percentage points referred to in subparagraph (A)(i) are the following: (i) For each of the first and second reinsurance years that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 5 percentage points. (ii) For the third reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 3 percentage points. (iii) For the fourth reinsurance year that a beginning farmer or rancher participates as a beginning farmer or rancher in the applicable policy or plan of insurance, 1 percentage point.. (s) Area-based crop insurance coverage and affordability (1) Coverage level Section 508(c)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)) is amended— (A) by amending subparagraph (A)(ii) to read as follows: (ii) may be purchased at any level not to exceed— (I) in the case of the individual yield or revenue coverage, 85 percent; (II) in the case of individual yield or revenue coverage aggregated across multiple commodities, 90 percent; and (III) in the case of area yield or revenue coverage (as determined by the Corporation), 95 percent.; and (B) in subparagraph (C)— (i) in clause (ii), by striking 14 and inserting 10; and (ii) in clause (iii)(I), by striking 86 and inserting 90. (2) Premium cost share Section 508(e)(2)(H)(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)(H)(i)) is amended by striking 65 and inserting 80. (t) Premium support Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended— (1) in subparagraph (C)(i), by striking 64 and inserting 69; (2) in subparagraph (D)(i), by striking 59 and inserting 64; (3) in subparagraph (E)(i), by striking 55 and inserting 60; (4) in subparagraph (F)(i), by striking 48 and inserting 51; and (5) in subparagraph (G)(i), by striking 38 and inserting 41. (u) Administrative and operating expense adjustments Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)) is amended by adding at the end the following: (10) Additional expenses (A) In general Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, in addition to the terms and conditions of the Standard Reinsurance Agreement, to cover additional expenses for loss adjustment procedures, the Corporation shall pay an additional administrative and operating expense subsidy to approved insurance providers for eligible contracts. (B) Payment amount In the case of an eligible contract, the payment to an approved insurance provider required under subparagraph (A) shall be the amount equal to 6 percent of the net book premium. (C) Definitions In this paragraph: (i) Eligible state The term eligible State means a State— (I) identified in State Group 2 or State Group 3 (as defined in the Standard Reinsurance Agreement for reinsurance year 2026); and (II) in which, with respect to an insurance year, the loss ratio for eligible contracts is greater than 120 percent of the total net book premium written by all approved insurance providers. (ii) Eligible contracts The term eligible contract — (I) means a crop insurance contract entered into by an approved insurance provider in an eligible State; and (II) does not include a contract for— (aa) catastrophic risk protection under subsection (b); (bb) an area-based plan of insurance or similar plan of insurance, as determined by the Corporation; or (cc) a policy under which an approved insurance provider does not incur loss adjustment expenses, as determined by the Corporation. (11) Specialty crops (A) Minimum reimbursement Beginning with the 2026 reinsurance year and for each reinsurance year thereafter, the rate of reimbursement to approved insurance providers and agents for administrative and operating expenses with respect to crop insurance contracts covering agricultural commodities described in section 101 of title I of the Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note) shall be equal to or greater than the percent that is the greater of the following: (i) 17 percent of the premium used to define loss ratio. (ii) The percent of the premium used to define loss ratio that is otherwise applicable for the reinsurance year under the terms of the Standard Reinsurance Agreement in effect for the reinsurance year. (B) Other contracts In carrying out subparagraph (A), the Corporation shall not reduce, with respect to any reinsurance year, the amount or the rate of reimbursement to approved insurance providers and agents under the Standard Reinsurance Agreement described in clause (ii) of such subparagraph for administrative and operating expenses with respect to contracts covering agricultural commodities that are not subject to such subparagraph. (C) Administration The requirements of this paragraph and the adjustments made pursuant to this paragraph shall not be considered a renegotiation under paragraph (8)(A). (12) A&O inflation adjustment (A) In general Subject to subparagraph (B), for the 2026 reinsurance year, and each reinsurance year thereafter, the Corporation shall increase the total administrative and operating expense reimbursements otherwise required under the Standard Reinsurance Agreement in effect for the reinsurance year in order to account for inflation, in a manner consistent with the increases provided with respect to the 2011 through 2015 reinsurance years under the enclosure included in Risk Management Agency Bulletin numbered MGR–10–007 and dated June 30, 2010. (B) Special rule for 2026 reinsurance year The increase under subparagraph (A) for the 2026 reinsurance year shall not exceed the percentage change for the preceding reinsurance year included in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (C) Administration An increase under subparagraph (A)— (i) shall apply with respect to all contracts covering agricultural commodities that were subject to an increase during the period of the 2011 through 2015 reinsurance years under the enclosure referred to in that subparagraph; and (ii) shall not be considered to be a renegotiation of the Standard Reinsurance Agreement for purposes of paragraph (8)(A).. (v) Program compliance and integrity Section 515(l)(2) of the Federal Crop Insurance Act (7 U.S.C. 1515(l)(2)) is amended by striking than and all that follows through the period at the end and inserting the following: than— (A) $4,000,000 for each of fiscal years 2009 through 2025; and (B) $6,000,000 for fiscal year 2026 and each subsequent fiscal year.. (w) Reviews, compliance, and integrity Section 516(b)(2)(C)(i) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(C)(i)) is amended by striking each fiscal year and inserting each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter. (x) Poultry insurance pilot program Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following: (j) Poultry insurance pilot program (1) In general Notwithstanding subsection (a)(2), the Corporation shall establish a pilot program under which contract poultry growers, including growers of broilers and laying hens, may elect to receive index-based insurance from extreme weather-related risk resulting in increased utility costs (including costs of natural gas, propane, electricity, water, and other appropriate costs, as determined by the Corporation) associated with poultry production. (2) Stakeholder engagement The Corporation shall engage with poultry industry stakeholders in establishing the pilot program under paragraph (1). (3) Location The pilot program established under paragraph (1) shall be conducted in a sufficient number of counties to provide a comprehensive evaluation of the feasibility, effectiveness, and demand among producers in the top poultry producing States, including Alabama, Arkansas, and Mississippi, as determined by the Corporation. (4) Approval of policy or plan Notwithstanding section 508(l), the Board shall approve a policy or plan of insurance based on the pilot program under paragraph (1)— (A) in accordance with section 508(h); and (B) not later than 24 months after the date of enactment of this subsection..