Title I: Commodity Programs

Direct payments were available for producers with eligible historic acreage of wheat, corn, barley, grain sorghum, oats, upland cotton, and rice. Direct payments were extended to soybeans, other oilseeds, and peanuts.

Retains provision. Rice is divided into long-grain rice and medium-grain rice (which includes short-grain rice). Beginning with CY 2009, pulse crops (dry peas, lentils, small chickpeas, and large chickpeas) are included as covered commodities, but are not eligible for direct payments.

To receive payments on covered commodities (wheat, corn, grain sorghum, barley, oats, rice, upland cotton, soybeans, and other oilseeds), a producer with eligible historic acreage entered into an annual agreement.

Retains provision for covered commodities.

For peanuts, 2002 payment was made to historic 1998-2001 producers of peanuts. In 2003-07, a historic producer of peanuts could assign eligibility for payments to other farms.

Peanuts producers remain eligible for direct payments, but are treated separately from other covered commodities.

An eligible farm's "payment amount" for a given commodity was product of:

• payment rate specified for the commodity
• payment acres (85% of the farm's base acreage for the covered commodity) and
• payment yield for that commodity

Retains provision, but payment acres for direct payments are reduced to 83.3% of base acres for crop years (CY) 2009-11.

Payment rates were specified in 2002 Farm Act:

Payment rates are specified in 2008 Farm Act:

Additional peanut program details follow below.

Direct payments for 2002 crop were to be made as soon as practicable after enactment of the Farm Act. For CY 2003-07, farmers were to receive payments no sooner than Oct 1 of year the crop was harvested. Farmers could receive advance payments of up to 50% beginning Dec 1 of calendar year before the year when covered commodity was harvested.

Amendments to 2002 Farm Act reduced advance payments to 40% in CY 2006 and to 22% in CY 2007.

For CY 2008-12, direct payments may be made no sooner than Oct 1 of harvest year.

Producers can elect to receive advance payments of up to 22% of direct payment beginning Dec 1 of calendar year before the year covered commodity is harvested. For CY 2008, Secretary of Agriculture will make advance direct payments as soon as practicable after each producer’s election.

Advance direct payments are not available for CY 2012.

Counter-cyclical payments (CCPs) were available for producers with eligible historic acreage of covered commodities whenever effective price was less than the target price. Effective price was equal to the sum of:

• higher of national average farm price for the marketing year or national commodity program loan rate and
• direct payment rate for the commodity

Retains provision.

For long-grain rice and medium-grain rice, effective price is determined using same calculation, but by type or class of rice.

Beginning with CY 2009, counter-cyclical payments are available for dry peas, lentils, small chickpeas, and large chickpeas.

Payment amount for a farmer equaled product of direct payment rate, payment acres, and payment yield.

Retains provision. Payment acres for counter-cyclical payments are unchanged at 85% of base acres.

Target prices for CCPs:

Target prices for CCPs:

Additional peanut program details follow below.

For CY 2002-06, Secretary required to make CCPs for crop as soon as practicable after end of crop year (marketing year) for the covered commodity. If producer elected to receive partial payment, payment of up to 35% was required to be made in Oct of year when crop was harvested. A second payment of up to 70% minus first payment was required to be made after Feb 1. Final payment was required to be made as soon as practicable after end of crop year. For CY 2007, first partial payment, not to exceed 40%, was to be made after first 6 months of crop year.

In a year when Secretary estimates that CCPs will be required and the producer elects to receive partial payments, a first partial payment not to exceed 40% of the projected payment must be made after first 180 days of the marketing year. Final payments are to be made as soon as practical after end of the marketing year. If actual payment is less than first partial payment, producer must be repay the difference.

Partial counter-cyclical payments are not available beginning with 2011 crop year.

Owners of farms with eligible historic acreage had 1-time opportunity to select a method for determining base acreage of covered commodities for the entire farm. An owner who failed to make an election was considered to have selected 2002 production flexibility (PFC) contract acres and, for oilseed base, the 4-year average of oilseed plantings.

Secretary directed to provide for an adjustment in base acres when a CRP contract expired or was terminated voluntarily.

Base acreage could not exceed a farm's available cropland.

Several options were available for designating base acres under the 2002 Act, including options that allowed for inclusion of oilseed acres. Farmland owners had to select 1 option for designating base acres on their farm.

Base acreage can also be adjusted for:

• eligible pulse crop acreage
• eligible additional other oilseed acreage
• land that has been subdivided and developed for multiple residential units

Base acres for pulse crops and additional oilseeds are determined in same manner used for other oilseeds in 2002 Act.

No similar provision.

Base acres of rice on farm are apportioned using:

• 4-year average of percentages of acreage planted in applicable State to long-grain rice and medium-grain rice during CY 2003-06, or
• 4-year average of acreage planted (including prevented plantings) on the farm to long-grain rice and medium-grain rice during CY 2003-06; in case of crop year for which producer elected not to plant long-grain and medium-grain rice during CY 2003-06, percentages of acreage planted in applicable State to long-grain rice and medium-grain rice are used

Payment acres were equal to 85% of base acres.

Retains provision, but payment acres for direct payments and ACRE payments are reduced to 83.3% for CY 2009-11.

If conservation reserve contract expired, was voluntarily terminated, or released from coverage by Secretary, base acreage increased. For these base acres, owner of farm had to elect to receive either direct and counter-cyclical payments or prorated payment under conservation reserve contract.

Retains provision.

No similar provision.

Prohibits direct payments, counter-cyclical payments, and average crop revenue election payments if sum of base acres of the farm is 10 acres or less, unless farm is owned by a socially disadvantaged or limited-resource farmer or rancher.

Secretary must evaluate effects of suspension of base acres under this provision on supply and price of fruits and vegetables.

Payment yields for direct payments were unchanged from 1996 Act except that peanuts, soybeans, and other oilseeds were added to program.

Soybean and other oilseed payment yields were determined based on farm's 1998-2001 average yield multiplied by national average yield for 1981-85, divided by national average yield for 1998-2001.

Payment yields for peanuts were determined as the average yield on the farm for CY 1998-2001.

Payment yields for CCPs were same as for direct payments, unless producer updated base acres. If base acres were updated, payment yields for counter-cyclical payments could be updated during the signup period.

Payment yields for direct and counter-cyclical payments are unchanged from 2002 Act except those payment yields to be established for any designated oilseed or newly eligible pulse crop.

Payment yields for pulse crops are established in same manner that was used for soybeans and other oilseeds in the 2002 Act.

Participants could plant 100% of their total base acreage to any crop, except with limitations on fruit, vegetables, and wild rice. Land had to be maintained in agricultural use. Unlimited haying and grazing and unlimited planting and harvesting of alfalfa and other forage crops were permitted with no reduction in payments.

Planting of fruits, vegetables, and wild rice (excluding mung beans, lentils, and dry peas) on base acres was prohibited unless producer or farm had a history of planting fruits, vegetables, or wild rice, but payments were reduced acre-for-acre on such plantings. Double cropping of fruit, vegetables, and wild rice was permitted without loss of payments if region had a history of such double cropping.

Producers on a farm required to submit annual acreage reports with respect to all cropland on farm.

Retains provision on planting restrictions for fruits, vegetables, and wild rice, excluding mung beans and pulse crops (dry peas, lentils, small chickpeas, and large chickpeas) on base acres.

No similar provision.

Authorizes pilot planting-flexibility project for CY 2009-12 to allow production of cucumbers, green peas, lima beans, pumpkins, snap beans, sweet corn, and tomatoes for processing on up to 9,000 base acres in Illinois; 9,000 base acres in Indiana; 1,000 base acres in Iowa; 9,000 base acres in Michigan; 34,000 base acres in Minnesota; 4,000 base acres in Ohio; and 9,000 base acres in Wisconsin.

To be eligible for the pilot, producers had to have entered into contract to produce the specified crop for processing, agree to produce crop as part of a program of crop rotation, and provide evidence of disposition of crop. Base acres are reduced per crop year by an acre for each acre planted under the pilot program.

Participants had to abide by conservation-compliance requirements (see Title II, Compliance Mechanisms).

Continues conservation-compliance requirements.

No similar provision.

An optional revenue-based counter-cyclical program, Average Crop Revenue Election (ACRE) program, is available beginning with 2009 crop year, as an alternative to receiving counter-cyclical payments.

Producers on a farm with covered commodities and/or peanuts can elect to participate in the ACRE program for all covered commodities and peanut acreage on the farm. Once they elect to participate in ACRE, producers on the farm must remain in the program for the duration of the 2008 Act.

For ACRE participants, direct payments are reduced by 20% and marketing assistance loan rates are reduced by 30% on enrolled farms.

No similar provision.

ACRE Program Guarantee: Participants are eligible for State-based revenue coverage equaling 90% of product of:

• 5-year ACRE benchmark State yield
• 2-year ACRE program guarantee price

ACRE benchmark State yield: average yield per planted acre for commodity in the State in previous 5 years, dropping high and low yields. Secretary can assign yields if yields are not available or are unrepresentative of average State yields.

ACRE program guarantee price: commodity-specific 2-year national average market price received by producers.

ACRE program guarantee for CY 2010-12 cannot change by more than 10% from the guarantee for previous crop year.

For States with more than 25% of acreage planted to a covered crop or peanuts that is irrigated and 25% of acreage planted that is nonirrigated, Secretary must calculate separate guarantees for irrigated and nonirrigated acreage.

No similar provision.

ACRE national average market price: greater of

• the national average commodity market price received by producers during the 12-month marketing year; or
• the reduced marketing assistance commodity loan rate.

ACRE actual State revenue: actual State yield per planted acre x the 12-month ACRE national average market price.

ACRE actual State yield per planted acre: crop year commodity production (quantity) produced in the State per planted acre.

ACRE actual farm revenue: actual commodity farm yield per planted acre x the ACRE national average market price.

ACRE benchmark farm revenue: [5-yr Olympic average farm crop yield per planted acre x ACRE program guarantee price] + crop insurance premiums per acre]

Farm-specific productivity ratio: 5-year Olympic average farm crop yield per planted acre/ACRE benchmark State yield

No similar provision.

ACRE revenue payments are made on 83.3% of acreage planted or considered planted to covered commodities or peanuts in CY 2009-11 and 85% in CY 2012.

Total number of planted acres for which producers on a farm may receive ACRE payments may not exceed total base acreage for all covered commodities and peanuts on the farm.

No similar provision.

ACRE payments can be triggered by a decrease in State yields or the national average market price.

Enrolled producers are eligible for ACRE payments if ACRE actual State revenue for the covered commodity or peanuts in the State is less than ACRE program guarantee for crop year AND ACRE actual farm revenue is less than the ACRE benchmark farm revenue.

ACRE Payments per commodity equal:

1) Lesser of: a) ACRE program guarantee – actual State revenue OR b) 25% of ACRE program guarantee
x
2) Planted crop acres: 83.3% in CY 2009-11 and 85% in CY 2012 of farm planted, or considered planted, crop acres not to exceed total base acres
x
3) Farm-specific productivity ratio

No similar provision.

ACRE payments are made beginning October 1, or as soon as practicable after end of applicable marketing year.

Nonrecourse commodity loans with marketing loan provisions were authorized for 2002-07 crops. Commodity loans were for up to 9 months. Producers had to comply with conservation and wetland requirements to be eligible for a loan. Marketing loan provisions were continued allowing repayment of loans at less than full principal plus interest when prices were below loan rates.

National loan rates were set in legislation. Marketing loan provisions were extended to peanuts, wool, mohair, honey, small chickpeas, lentils, and dry peas. Producers no longer had to enter into an agreement for direct payments to be eligible for loan program benefits.

Peanut marketing assistance loans could have been obtained through:

• designated marketing association or marketing cooperative of producers or
• Farm Service Agency

Continues nonrecourse commodity loans with marketing loan provisions for 2008-12 crops.

National loan rates are set in legislation. Retains eligibility provisions.

Expands eligible crops to include large chickpeas starting in 2009. Long-grain rice and medium-grain rice specified separately rather than as 'rice,' each with its own national loan rate.

Extra Long Staple (ELS) cotton loans were nonrecourse, but had to be repaid at the loan rate plus interest.

Authorizes nonrecourse loans for ELS cotton for 2008-12 crops.

National loan rates were set in legislation:

National loan rates are set in legislation:

Required Secretary to establish single loan rate for each kind of other oilseed in each county.

Continues provision.

No similar provision.

Reduces loan rates by 30% for production on farms in ACRE program.

Marketing loans were continued for wheat, feed grains, upland cotton, rice, soybeans, and other oilseeds. Marketing loan provisions were extended to peanuts, wool, mohair, honey, small chickpeas, lentils, and dry peas. Loans could be repaid at loan rate plus interest, or repaid at a rate less than the sum of original loan rate plus accrued interest when market prices were below commodity loan rates.

Continues provision, with loan availability extended to large chickpeas.

Required Secretary to determine loan repayment rates for loan commodities—other than upland cotton, ELS cotton, and rice—at rate that:

• minimized potential forfeitures
• minimized accumulation of stocks of commodity
• minimized storage costs
• allowed commodity produced in U.S. to be marketed freely and competitively, both domestically and internationally

Marketing loan repayment rates were based on local, posted county prices (PCPs) for wheat, feed grains, and oilseeds. PCPs were calculated (and posted) each day the Federal government was open. Other oilseeds (excluding soybeans), pulses, wool, and mohair set weekly. Honey set monthly.

Continues provisions—other than for upland cotton, ELS cotton, long-grain rice, medium-grain rice, confectionery, and each other kind of sunflower seed (other than oil sunflower seed).

Requires Secretary to determine loan repayment rates for selected loan commodities at rate based on average market prices for loan commodity during preceding 30-day period. Secretary may choose to establish another rate that meets conditions specified in previous legislation. Loan repayment rate for applicable commodities is lesser of principal plus interest, the 30-day repayment rate, or calculated repayment rate as determined by CCC. Not applicable to cotton, rice, and peanuts.

Marketing loan repayment rates for rice and upland cotton were based on prevailing world market prices. World market price for rice was determined by a formula adjusted for U.S. quality and location. Prevailing world market prices were calculated by USDA on a weekly basis.

Secretary to prescribe by regulation:

• formula to determine prevailing world market price for upland cotton and rice, adjusted to U.S. quality and location
• mechanism to announce periodically prevailing world market price

Continues provision. Prevailing world market price for cotton is based on cotton of comparable quality delivered to a definable and significant international market.

2002 Farm Act amended in 2003 to allow marketing assistance loans for confectionery and each other kind of sunflower seed (except oil sunflower seed) to be repaid at rate that is lesser of loan rate plus interest or repayment rate established for oil sunflower seed.

Continues provision.

Secretary could adjust commodity loan rates for commodities based on differences in grade, type, quality, location, and other factors. Loan repayment rates were adjusted for quality and grade for each applicable commodity loan.

Continues provision.

No similar provision.

Authorizes Secretary to modify repayment rates under marketing loan program in event of severe disruption to marketing, transportation, or related infrastructure.

Requires Secretary to revise marketing assistance loan program for upland cotton to better reflect market values for upland cotton.

Secretary shall not make adjustments in loan rates for long-grain rice and medium-grain rice, except for differences in grade and quality (including milling yields).

A USDA-determined lower repayment rate option for peanuts was designed to minimize commodity forfeiture, government-owned stocks, and storage costs, and to allow peanuts to be marketed freely and competitively, both domestically and internationally.

Continues provision.

To reduce administrative costs, loan deficiency payments were available when market prices were lower than commodity loan rates. LDPs to producers amounted to difference between commodity loan rate and what producer's loan repayment rate would be under marketing loan provisions.

Payment amount was determined whenever producer requested payment or on date when producer lost ownership of commodity.

LDPs were available for all loan commodities except ELS cotton.

Continues provision. Includes authority for Secretary to base loan repayment rate on average market prices for loan commodity during preceding 30-day period.

Unshorn pelts (wool), hay, and silage became eligible for LDPs.

Continues provision.

Producers who elected to use acreage planted to wheat, barley, oats, or triticale for grazing of livestock were eligible to receive LDPs. Payment amount was determined by multiplying acreage grazed times direct payment yield for covered commodity on that acreage.

Producers electing this payment were not eligible for a crop insurance indemnity or for noninsured crop assistance.

Continues provision.

Commodity certificates could be purchased at posted county price for wheat, feed grains, and oilseeds, national posted price for peanuts, or at effective adjusted world price for rice or upland cotton. Certificates were available so that producers could immediately acquire crop collateral they had pledged to the Commodity Credit Corporation (CCC) for a commodity loan.

Retains provision for 2007-09 crops.

USDA authorized to pay storage and other costs associated with upland cotton going into the loan program.

Continues cotton storage payments, but reduces rates by 10% from rates provided in 2006 for CY 2008-11. Reduces rates by 20% for CY 2012.

Recourse loans were available to producers who normally harvested all or a portion of their corn or grain sorghum in a high-moisture condition, having moisture content in excess of CCC standards for marketing assistance loans. Borrowers had to repay recourse loans; i.e., they could not pledge crops as collateral.

Retains provision.

Recourse seed cotton loans could be made on any production of upland and ELS cotton.

Retains provision.

Repayment of a recourse loans made under this section was made at loan rate established for the commodity, plus interest.

Retains provision.

Special import quotas permitted President to announce a special import quota for upland cotton to temporarily increase cotton supplies.

Retains provision.

A limited global import quota was authorized when average monthly spot price of base-quality upland cotton exceeded 130% of average price during preceding 36 months.

Retains provision.

Upland cotton user marketing certificates (Step 2 payments) were available to domestic users and exporters subject to price conditions in the U.S. and Northern Europe. Provisions were repealed on Aug 1, 2006.

No similar provision.

No similar provision.

From Aug 1, 2008 through July 31, 2012, economic adjustment assistance equal to 4 cents/lb shall be provided to domestic users of upland cotton for all documented use of upland cotton during previous month regardless of the origin of the cotton. Payment rate drops to 3 cents/lb on Aug 1, 2012. Assistance can be used only for acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery.

Retained program to increase exports and maintain competitiveness of ELS cotton in world markets. Payments were made to domestic users and exporters when world market price was below the U.S. price for 4 consecutive weeks and lowest priced competing ELS cotton was less than 134% of ELS loan rate.

Retains provision.

Peanut price support program was converted to a system providing direct and counter-cyclical payments and nonrecourse loans with marketing loan provisions.

Marketing quota for peanuts was eliminated through a quota buyout. New direct payment of $36/ton was available to peanut producers. Peanut producers were eligible for new counter-cyclical payments when market prices were below an established target price of $495/ ton. Peanut loan rate was fixed at $355/ton. Peanut base and payment limits were treated separately from covered crops.

Provision retained. See provisions for Direct and Counter-Cyclical Payments and for Marketing Assistance Loans and Loan Deficiency Payments (LDPs).

For 2002-06 peanut crops, Secretary was required to use CCC funds to pay storage, handling, and other costs associated with commodity-secured loans to peanut producers. Authority terminated beginning with 2007 crop.

Beginning with 2008 crop, Secretary must use CCC funds to pay handling and associated costs (excluding storage) for peanuts placed under commodity-secured loan. These costs are not excluded from a producer's loan proceeds at the time peanuts are placed in the loan. Secretary must pay handling and associated costs (including storage) for peanuts forfeited to CCC. Producers must repay handling and associated costs if loans are redeemed.

Reauthorized nonrecourse loan program for processors of domestically grown sugar through fiscal year (FY) 2008 at 18 cents/lb for raw cane sugar and 22.9 cents/lb for refined beet sugar.

Reauthorizes nonrecourse loan program through FY 2013. Loan rate for raw cane sugar is:

• 18 cents/lb in FY 2009
• 18.25 cents/lb in FY 2010
• 18.50 cents/lb in FY 2011
• 18.75 cents/lb in FY 2012-13

Loan rate for refined beet sugar is:

• 22.9 cents/lb in FY 2009
• 128.5% of loan rate for raw cane sugar in FY 2010-13

For producers who deliver sugar beets and sugarcane to processors, processors had to provide payments proportional to the value of nonrecourse loans processors received for these commodities.

Retains provision.

Loans could not be made earlier than beginning of fiscal year. Loans matured at earlier of end of 9 months or end of fiscal year in which loan was made.

For loans made in last 3 months of a fiscal year, processor could repledge sugar as collateral for second loan in subsequent fiscal year. These supplemental loans were made at loan rate in effect at time first loan was made, and matured in 9 months minus period of time that first loan was in effect.

Retains provision.

Nonrecourse loans were extended to in-process beets and cane syrups. Loan rate was set at 80% of loan rate applicable to raw cane sugar or refined beet sugar, depending on source material for the in-process sugars and syrups.

Retains provision.

Loan rates could be reduced, at Secretary's discretion, if foreign producers reduced export subsidies and support levels below their current World Trade Organization (WTO) commitments.

Does not extend authority to reduce loan rates.

Secretary is directed to operate nonrecourse sugar loan program at no net cost to Federal Government by avoiding sugar loan forfeitures.

Inventory reduction offers sugar processors option of diverting portion of their production in exchange for receiving CCC sugar held in inventory.

To maximum extent practicable, sugar program was to be operated at no cost to the Federal government. Secretary could provide CCC-owned sugar to processors of sugarcane and sugar beets in return for reduction of production (acting prior to planting in conjunction with the producers of sugar to be processed), Program was frequently referred to as a payment-in-kind (PIK) program.

Retains provision.

No similar provision.

If reduction in production is necessary to avoid forfeitures, quantity of sugarcane and sugar beets that has already been planted may not be used for any commercial purpose other than as a bioenergy feedstock. See Title IX, Feedstock Flexibility Program for Bioenergy Producers.

Required sugarcane processors, cane sugar refiners, and sugar beet processors, on a monthly basis, to furnish such information as Secretary may need to administer the sugar programs. Such information included quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.

Extends provision.

Requires Secretary to collect information on production, consumption, stocks, and trade of sugar in Mexico, including U.S. exports of sugar to Mexico; and publicly available information on Mexican production, consumption, and trade of high-fructose-corn syrups.

Data on Mexico must be published in each edition of USDA's monthly World Agricultural Supply and Demand Estimates.

Importers of sugars, syrups, or molasses to be used for human consumption, or for extraction of sugar for human consumption had to report quantities of products imported and sugar content or equivalent of the products. Importers were not required to report quantities subject to lower rate of import duties (tariff-rate quotas).

Retains provision.

Flexible marketing allotments authorize Secretary to impose marketing allotments in order to avoid forfeitures.

Required Secretary to annually estimate quantity of sugar for domestic human consumption, reasonable carryover stocks, carry-in stocks, domestic production, and imports.

Directed Secretary to annually estimate quantity of sugars, syrups, and molasses to be imported for human consumption both within a tariff-rate quota or in excess or outside a tariff-rate quota. Sugar imported for production of polyhydric alcohols or to be refined and reexported in refined form or in sugar-containing products was excluded from estimate.

Extends provision.

Overall allotment quantity (OAQ) was to be divided between beet processors (54.35%) and cane producers (45.65%), including cane producers of Hawaii and Puerto Rico.

Allotments did not apply to sugar produced for export or for use in production of ethanol or other bioenergy products.

Retains provision. Allotment quantity may not be less than 85% of estimated deliveries for food and human consumption.

Allotments were to be automatically suspended when estimates of imports for domestic food use exceeded sum of:

• 1.532 million short tons and
• quantities of sugar reassigned to imports from unfilled allocations of beet sugar or cane sugar overall allotment quantity (OAQ)

Eliminates provision.

If Secretary determined that any sugarcane processor who had been allocated a share of a State cane sugar allotment was unable to market processor's allocation for the crop year, Secretary would reassign estimated quantity of the deficit. Allocations were to be divided initially among other processors within that State, then to other cane sugar States, then to CCC inventories, and finally to imports.

If Secretary determined that any sugar beet processor who had been allocated a share of the beet sugar allotment was unable to market processor's allocations for the crop year, Secretary would reassign estimated quantity of the deficit to other beet processors, then to CCC inventories, and finally to imports.

Extends provision.

Cost of storing excess production was shifted from Government to industry. When allotments were in place, processors who expanded marketings in excess of rate of growth in domestic sugar demand had to postpone sale of some sugar, and either store it at their own expense or sell it for other than domestic food use.

Extends provision.

U.S. Trade Representative, in consultation with Secretary, was to determine amount of cane sugar quota used by each qualified supplying country for that crop year, and could reallocate unused quota for that crop year after June 1 among other qualified supplying countries.

TRQs for raw cane sugar and refined sugars must be established at the minimum level necessary to comply with obligations under international trade agreements.

If a sugar shortage occurs due to an emergency situation such as natural disaster or war or similar event prior to April 1 of crop year, domestic marketing allotments, along with necessary reassignments, including those made to imports, can be increased. If these actions are insufficient to meet the emergency situation, then further increases in refined sugar TRQ may be made. After April 1, if there is a shortage of sugar (whatever the cause) domestic marketing allotments, along with necessary reassignments, including those made to imports, can be increased. If there is still a shortage of sugar in U.S. market, and marketing of domestic sugar has been maximized, Secretary may increase TRQ for raw cane sugar if further increase does not threaten to result in forfeiture of sugar pledged as loan collateral.

Program extended to sugar processors the type of storage facility loan program available to grain and other crop farmers, in order to facilitate orderly marketing of sugar.

To obtain a loan through this program, borrower was required to complete an environmental cost-benefit analysis. Program was implemented, but had no activity.

Extends provision.

Continued 11 Federal milk marketing orders. Western Federal milk marketing order was terminated, effective Apr 1, 2004.

Continues Federal milk marketing orders.

No similar provision.

Not later than 60 days after enactment of 2008 Act, Secretary must issue, using informal rulemaking, supplemental rules of practice to define and revise guidelines and timeframes for amending marketing orders.

No similar provision.

Subject to availability of appropriations, a Federal Milk Marketing Order Review Commission, consisting of 14 members, must be established to conduct a comprehensive review and evaluation of the current Federal milk marketing order system and non-Federal milk marketing order systems. Within 2 years following first meeting of commission, commission must submit a report to Secretary and Congress.

Secretary to support price of milk in 48 contiguous States. Minimum support price for milk was fixed at $9.90/cwt for milk containing 3.67% butterfat. Support was maintained through government purchases of butter, nonfat dry milk, and cheese. Secretary could distribute price support between nonfat dry milk and butter in a way that minimized CCC expenditures. Authority to adjust support prices for butter and nonfat dry milk was limited to twice per calendar year.

Dairy price support is provided though purchases of specific products at specific prices.

Secretary must purchase:

• cheddar cheese in blocks at not less than $1.13/lb
• cheddar cheese in barrels at not less than $1.10/lb
• butter at not less than $1.05/lb
• nonfat dry milk at not less than $0.80/lb

Prices Secretary pays for cheese, butter, or nonfat dry milk must be uniform for all U.S. regions.

Secretary may make purchase price adjustments in order to manage inventories held by CCC. Permissible quantities and duration of price adjustments are specified.

Commodities purchased by CCC can be sold back to industry at market prices prevailing for that commodity at the time of sale. The sell-back price may not be less than 110% of specified minimum purchase price for the commodity being sold back for unrestricted use.

Established a milk income loss contract (MILC) payments program. Producers entered into contracts ending on Sept 30, 2005. A qualifying dairy farm operator could receive a monthly direct payment when monthly Class I price in Boston (Federal Marketing Order 1) was less than $16.94/cwt.

Agricultural Reconciliation Act of 2005 reauthorized the program through Sept 30, 2007. Extended program period was called MILCX. Payment-rate-calculation provisions stopped any possible payments 1 month short, at the end of Aug, terminating the program at that time.

Supplemental Appropriations for Defense, International Affairs, and Other Security-Related Needs Act of 2007 amended provision to remove the 1-month zero-payment rate.

Continues program through Sept 30, 2012.

Payment rate was 45% of difference between $16.94/cwt and Class I price in the Boston milk marketing order for the applicable month. 2002 Act amended to reduce payment rate to 34% of difference.

Defines payment rate for 3 specific periods:

• From Oct 1, 2007-Sept 30, 2008, 34% of difference between $16.94/cwt (as adjusted) and Class I price in the Boston milk marketing order for the applicable month
• From Oct 1, 2008-Aug 31, 2012, 45% of difference between $16.94/cwt (as adjusted) and Class I price in the Boston milk marketing order for the applicable month
• For period starting Sept 1, 2012 and thereafter, 34% of difference between $16.94/cwt (as adjusted) and Class I price in the Boston milk marketing order for the applicable month

The $16.94 price will be adjusted by percentage that National Average Dairy Feed Rations Cost exceeds $7.35/cwt for any month for period from Jan 1, 2008-Aug 31, 2012. Target cost of feed rations increases to $9.50/cwt beginning Sept 1, 2012.

Producers, on an operation-by-operation basis, could receive payments on no more than 2.4 million lbs of milk marketed per year. Producers could not reorganize dairy operations for sole purpose of receiving additional payment. Payment quantity for a producer equaled quantity of eligible production marketed by producer during the month.

Specifies cap on milk marketed that is eligible for payments for 3 specific periods:

• For Oct 1, 2007-Sept 30, 2008, 2.4 million lbs for the fiscal year
• For Oct 1, 2008-Aug 31, 2012, 2.985 million lbs for each fiscal year
• Beginning Sept 1, 2012, 2.4 million lbs for each fiscal year

Authorized Secretary to make indemnity payments to dairy farmers who were directed to remove milk from the market due to presence of chemical residues.

Reauthorizes program.

Consolidated Appropriations Act of 2000 amended Agricultural Marketing Agreement Act of 1937 to mandate implementation of a Dairy Forward Pricing Pilot Program through Dec 31, 2004.

Required Secretary to study the program to determine effects of forward pricing on milk prices paid to producers in the U.S. (See A Study of the Dairy Forward Pricing Pilot Program and Its Effect on Prices Paid Producers for Milk and Economic Effects of U.S. Dairy Policy.)

Establishes permanent program under which milk producers and cooperative associations of producers are authorized to enter voluntarily into forward price contracts with milk handlers. A milk handler may not require participation in a forward price contract as a condition of accepting milk from a producer or cooperative. A producer or cooperative association that does not enter into a forward price contract may continue to have milk priced under the minimum payment provisions of the applicable milk marketing order. No forward price contract under this section may be entered into after Sept 30, 2012 or extend beyond Sept 30, 2015.

No similar provision.

Subject to availability of funds, requires Secretary to establish an electronic reporting system for mandatory reporting of dairy commodities information. These reports are to be audited quarterly.

Extended DEIP to 2007. Secretary was required to authorize subsidies sufficient to export maximum volume of dairy products allowable under Uruguay Round-GATT (UR-GATT), subject to UR-GATT (later World Trade Organization) funding limits. DEIP was to be used for market development purposes.

Extends DEIP, with added emphasis on maximum use of program consistent with U.S. multilateral trade agreement obligations.

Amended NDPRP authorizing language (Dairy Production and Stabilization Act of 1983) to require assessment and collection of a payment at rate of $0.15/cwt for imported dairy products. However, USDA did not implement the import assessment.

Extends programs with revisions:

• changes "definition" of the U.S. to include the 50 States, Puerto Rico, and District of Columbia
• authorizes expenditures to develop foreign markets
• authorizes assessment and collection of a payment on imported dairy products at a rate of $0.075/cwt under regulations determined by Secretary

Extended NFMPPP authorization (Fluid Milk Promotion Act of 1990).

Retains provision.

Required Secretary to conduct studies of effects of changes in national dairy policy and fluid milk identity standards:

• address effects of terminating milk price support and supply management programs, and impacts of cooperative efforts with States to manage milk prices and supplies (see Economic Effects of U.S. Dairy Policy)
• assess effects of requiring a minimum protein content for fluid milk commensurate with average nonfat solids content of bovine milk (see Raising the Minimum Nonfat Solids Standard to the National Average in Raw Milk: A Study of Fluid Milk Identity Standards)

Within 90 days, Secretary must submit to House Committee on Agriculture and Senate Committee on Agriculture, Nutrition, and Forestry a report on USDA procedures for reporting nonfat dry milk prices and the impact of these procedures on Federal milk marketing order minimum prices during period July 1, 2006 to date of enactment of 2008 Act.

If Secretary determined that AMS ceiling would be exceeded, Secretary was required, to the maximum extent practicable, to adjust expenditures for Title I programs to avoid exceeding allowable levels.

Before making any adjustments, Secretary was required to submit a report to Congress on adjustments to be made.

No change.

Maintained permanent law and temporarily suspended provisions of basic laws through CY 2002: Agricultural Adjustment Act of 1938 and Agricultural Act of 1949.

Maintains permanent law and temporarily suspends provisions of basic laws through CY 2012: Agricultural Adjustment Act of 1938 and Agricultural Act of 1949.

Limited marketing loan benefits to $75,000. Certificate gains were not included in marketing loan payment limit. Peanuts, wool, mohair and honey were subject to a separate $75,000 payment limit for marketing loan benefits.

Eliminates payment limits on marketing loan benefits and loan deficiency payments.

Continued payment limit at $40,000/person for direct payments.

For direct payments, limit is $40,000/person, excluding peanuts. Direct payments limit is reduced for participants in average crop revenue election (ACRE) program.

Set limit of $65,000/person for counter-cyclical payments.

For counter-cyclical payments, limit is $65,000/person, excluding peanuts. For ACRE participants, sum of counter-cyclical payments and ACRE payments is limited to $65,000 plus reduction in the direct payment limit.

Peanuts were subject to separate limits for direct payments ($40,000) and counter-cyclical payments ($65,000).

Maintains separate limits for peanuts for direct payments ($40,000) and counter-cyclical payments ($65,000).

To be to be eligible for a payment:

• individual or entity must have been actively engaged in farming
• person must have made a significant contribution in the form of capital, equipment, land, personal labor or active personal management to the farming operation
• contributions of the person must haven been at risk

Retains eligibility provision.

As long as 1 spouse is determined to be actively engaged, other spouse is also considered to be actively engaged and is eligible for payments.

An individual farmer could receive up to twice maximum payment per year in total contract payments and marketing loan gains on 3 separate farming operations (a full payment on first operation and up to a half payment for each of 2 additional entities). Referred to as 3-entity rule.

Repeals 3-entity rule.

Total amount of payments must be attributed (linked) to a person, by taking into account direct and indirect ownership interests of the person in a legal entity. Every payment made directly to a person is combined with that person's pro rata interests in payments received by a legal entity in which the person has an ownership interest, and every payment made to a legal entity is attributed to those persons with an ownership interest in the entity. Payments made to legal entities are to be traced through 4 levels of ownership in the entities, and includes a framework for attribution of payments to individuals.

Producers with adjusted gross income of over $2.5 million, averaged over previous 3 years, were not eligible for direct and counter-cyclical payments, marketing loan benefits, and Title II (conservation) payments unless 75% or more of adjusted gross income was from farming, forestry, or agriculture.

For direct payments, a person or legal entity with adjusted farm gross income of over $750,000, averaged over previous 3 years, is not eligible.

For direct payments, counter-cyclical payments, average crop revenue election, marketing loan gains or loan deficiency payments, noninsured crop assistance, milk income loss contract program payments, or disaster assistance payments or benefits, a person or entity with average adjusted gross nonfarm income in excess of $500,000 is not eligible.

For conservation, supplemental agricultural disaster assistance, and agricultural-risk-management assistance, producers with adjusted nonfarm gross income, averaged over 3 years, of over $1 million are not eligible unless 66.66% or more of total income is average adjusted gross farm income.

A husband and wife may allocate income as if they had filed separate returns.

Secretary determined income from farming, ranching, or forestry.

Income to be included in portion of average adjusted gross income derived from farming, ranching, or forestry includes:

• production of crops, livestock, or unfinished raw forestry products
• sale, including sale of easements and development rights, of farm, ranch, or forestry land, water, or hunting rights
• rental of land used for farming, ranching, or forestry operations
• production of farm-based renewable energy
• processing, storing, and transporting of farm, ranch, and forestry commodities, including renewable energy
• sale of land that has been used for agriculture

If more than 66.66% of adjusted gross income is from farming, ranching, or forestry operations, then average adjusted gross income also includes farm, ranch, and forestry equipment sales and income from providing production inputs to farmers, ranchers, foresters, and farm operations.

Required Secretary to establish procedures to track benefits provided, directly or indirectly, to individuals and entities under Titles I and II. Payment data released under these provisions is referred to as Section 1614 data.

Secretary may track benefits provided, directly or indirectly, to individuals and entities under Titles I and II.

Agricultural Marketing Act of 1929 prohibited any prediction with respect to cotton prices from issuance or inclusion in any government report, bulletin, or other such publication.

Repeals restriction.

To remain eligible for specified program benefits, farmers cropping highly erodible land were required to implement an approved conservation plan (highly erodible land conservation provisions or sodbuster). Producers had to be in compliance with wetland conservation provisions (swampbuster).

Retains provision. See Title II, Compliance Mechanisms.

Total of $20 million from CCC was used during 2003-05 to provide incentive payments to growers to plant hard white wheat (HWW). To qualify, producer had to meet minimum quality criteria and demonstrate availability of a market for the HWW to be produced. Incentive payments were limited to 2 million acres or equivalent volume of production.

Authorizes, subject to appropriations, up to $35 million for FY 2009-12 to establish a hard white wheat development program to promote HWW as a viable market class of wheat in the U.S. by encouraging production of at least 240 million bu by 2012. Payments may not be less than $0.20/bu or less than $2/acre for planting eligible HWW seed.

No similar provision.

Authorizes, subject to appropriations, up to $10 million/year in FY 2009-12 to compensate producers of durum wheat in an amount not to exceed 50% of actual cost of fungicides they apply to a crop of durum wheat to control Fusarium head blight (wheat scab).

No similar provision.

Authorizes, subject to appropriations, in FY 2009-12 to provide quality incentive payments for production of oilseeds with specialized traits that enhance human health.

No similar provision.

Establishes a storage facility loan program to provide funds for producers of storable commodities (other than sugar) to construct or upgrade storage and handling facilities. Each loan is limited to $500,000 with a maximum term of 12 years.

No similar provision.

Requires Secretary to ensure that all geospatial data of USDA agencies are portable and standardized.

Prohibits disclosure of certain agricultural producer and landowner-provided information or certain geospatial information obtained by USDA, with exceptions for authorized disclosures, disclosures of payment information, disclosures in aggregate or statistical form, or disclosure pursuant to consent of agricultural producer or landowner.

No similar provision.

Authorizes, subject to appropriations, Secretary to spend up to $15 million/fiscal year to establish new program to provide geographically disadvantaged farmers and ranchers direct reimbursement payments to cover cost to transport agricultural commodities or inputs used to produce agricultural commodities.