Compensation of United States agricultural producers harmed by water delivery shortfalls

(a) In general Not later than 90 days after a determination is made under section 3(a) that Mexico is in a water delivery shortfall for a year, the Secretary of Agriculture, in consultation with the Secretary of State and the United States Commissioner of the International Boundary and Water Commission, shall calculate the direct economic losses incurred by United States agricultural producers in the Rio Grande Valley as a result of the shortfall. (b) Compensation formula The Secretary shall calculate direct economic losses under subsection (a) at the amount equal to the product of— (1) the shortfall volume in acre-feet, multiplied by (2) the economic value per acre-foot, multiplied by (3) the impact multiplier. (c) Definitions In this section: (1) Economic value per acre-foot The term economic value per acre-foot means the value derived by the Secretary of Agriculture by considering comprehensive and regularly updated studies of South Texas agricultural economics, including direct crop revenue losses, increased costs for alternative water sources, elevated water rates, the higher value and vulnerability of specialty crops, and regional variations in water value. (2) Impact multiplier The term impact multiplier means the multiplier derived by the Secretary of Agriculture by considering indirect and cascading economic impacts beyond direct farm gate losses, including job losses in agriculture and related sectors, reduced supplies to downstream industries, and closures of agricultural processing businesses. (3) Shortfall volume in acre-feet The term shortfall volume in acre-feet means the difference between Mexico's required water delivery under section 3(b) for a year and the actual volume of water delivered to the United States in acre-feet during that year.