§9016 — Title 7 Agriculture | U.S. Code

Summary

Pays farmers on a farm for a specific commodity when every producer on that farm has chosen price loss coverage and the commodity’s effective price for the crop year is below the applicable reference price. For crop years 2014–2018 the payment compares the effective price to the reference price. For crop years 2019–2031 it compares the effective price to the effective reference price. The effective price is whichever is higher: the national average market price during the 12‑month marketing year, or the national average loan rate for that commodity. The payment rate is the difference between the applicable reference price and that effective price. The Secretary must publish the payment rate within 30 days after the marketing year ends, or later if needed because of missing data. The total payment to producers on the farm equals the payment rate times the payment yield times the payment acres. Payments must start on October 1 or as soon as possible after the marketing year ends. Barley uses an all‑barley price. Temperate japonica rice gets a special adjusted reference price based on 2017–2021 medium‑grain and all‑rice average prices. For seed cotton, the effective price is the marketing‑year average price, calculated by combining upland lint and cottonseed prices weighted by their U.S. production (pounds).

Title 7, §9016

Agriculture — Source: USLM XML via OLRC

(a)If all of the producers on a farm make the election under subsection (a) or (h) of section 9015 of this title to obtain price loss coverage or, subject to subsection (c)(1) of such section, are deemed to have made such election under subsection (c)(2) of such section, the Secretary shall make price loss coverage payments to producers on the farm on a covered commodity-by-covered-commodity basis if the Secretary determines that—

(1)for any of the 2014 through 2018 crop years—

(A)the effective price for the covered commodity for the crop year; is less than

(B)the reference price for the covered commodity for the crop year; or

(2)for any of the 2019 through 2031 crop years—

(A)the effective price for the covered commodity for the crop year; is less than

(B)the effective reference price for the covered commodity for the crop year.

(b)The effective price for a covered commodity for a crop year shall be the higher of—

(1)the national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary; or

(2)the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop year under subchapter II.

(c)(1)(A)For the 2014 through 2018 crop years, the payment rate shall be equal to the difference between—

(i)the reference price for the covered commodity; and

(ii)the effective price determined under subsection (b) for the covered commodity.

(B)For the 2019 through 2031 crop years, the payment rate shall be equal to the difference between—

(i)the effective reference price for the covered commodity; and

(ii)the effective price determined under subsection (b) for the covered commodity.

(2)Not later than 30 days after the end of each applicable 12-month marketing year for each covered commodity, the Secretary shall publish the payment rate determined under paragraph (1).

(3)In the case of a covered commodity, such as temperate japonica rice, for which the Secretary cannot determine the payment rate for the most recent 12-month marketing year by the date described in paragraph (2) due to insufficient reporting of timely pricing data by 1 or more nongovernmental entities, including a marketing cooperative for the covered commodity, the Secretary shall publish the payment rate as soon as practicable after the marketing year data are made available.

(d)If price loss coverage payments are required to be provided under this section for any of the 2014 through 2031 crop years for a covered commodity, the amount of the price loss coverage payment to be paid to the producers on a farm for the crop year shall be equal to the product obtained by multiplying—

(1)the payment rate for the covered commodity under subsection (c);

(2)the payment yield for the covered commodity; and

(3)the payment acres for the covered commodity.

(e)If the Secretary determines under this section that price loss coverage payments are required to be provided for the covered commodity, the payments shall be made beginning October 1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity.

(f)In determining the effective price for barley under subsection (b), the Secretary shall use the all-barley price.

(g)In order to reflect price premiums, the Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to the amount established under paragraph (19)(A)(vi) of section 9011 of this title, as adjusted by paragraph (8) of such section, multiplied by the ratio obtained by dividing—

(1)the simple average of the marketing year average price of medium grain rice from the 2017 through 2021 crop years; by

(2)the simple average of the marketing year average price of all rice from the 2017 through 2021 crop years.

(h)(1)The effective price for seed cotton under subsection (b) shall be equal to the marketing year average price for seed cotton, as calculated under paragraph (2).

(2)The marketing year average price for seed cotton for a crop year shall be equal to the quotient obtained by dividing—

(A)the sum obtained by adding—

(i)the product obtained by multiplying—

(I)the upland cotton lint marketing year average price; and

(II)the total United States upland cotton lint production, measured in pounds; and

(ii)the product obtained by multiplying—

(I)the cottonseed marketing year average price; and

(II)the total United States cottonseed production, measured in pounds; by

(B)the sum obtained by adding—

(i)the total United States upland cotton lint production, measured in pounds; and

(ii)the total United States cottonseed production, measured in pounds.

Notes & Related Subsidiaries

Editorial Notes

Codification Provisions of law applicable to a covered commodity for the 2023 crop year pursuant to title I of Pub. L. 113–79 applicable to the 2024 crop year for that covered commodity, see section 102(c)(1) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Amendments

2025—Subsec. (a)(2). Pub. L. 119–21, § 10304(1), substituted “2031” for “2023” in introductory provisions. Subsec. (c)(1)(B). Pub. L. 119–21, § 10304(2), substituted “2031” for “2023” in heading and introductory provisions. Subsec. (d). Pub. L. 119–21, § 10304(3), substituted “2031” for “2023” in introductory provisions. Subsec. (g). Pub. L. 119–21, § 10304(4), substituted “paragraph (19)(A)(vi) of section 9011” for “subparagraph (F) of section 9011(19)” in introductory provisions and “2017 through 2021” for “2012 through 2016” in pars. (1) and (2). 2024—Subsec. (d). Pub. L. 118–158 substituted “2025” for “2024” in introductory provisions. 2023—Subsec. (d). Pub. L. 118–22 substituted “2024” for “2018” in introductory provisions. 2018—Subsec. (a). Pub. L. 115–334, § 1106(1), in introductory provisions, inserted “or (h)” after “subsection (a)” and substituted “determines that—” for “determines that, for any of the 2014 through 2018 crop years—”, inserted par. (1) designation and introductory provisions, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1) and realigned margins, and added par. (2). Subsec. (c). Pub. L. 115–334, § 1106(2), designated existing provisions as par. (1) and subpar. (A), inserted par. and subpar. headings, in introductory provisions of subpar. (A) substituted “For the 2014 through 2018 crop years, the payment rate” for “The payment rate”, redesignated former pars. (1) and (2) as cls. (i) and (ii), respectively, of subpar. (A) and realigned margins, added subpar. (B), and added pars. (2) and (3). Subsec. (g). Pub. L. 115–334, § 1106(3), added subsec. (g) and struck out former subsec. (g). Prior to amendment, text read as follows: “The Secretary shall provide a reference price with respect to temperate japonica rice in an amount equal to 115 percent of the amount established in subparagraphs (F) and (G) of section 9011(18) of this title in order to reflect price premiums.” Subsec. (h). Pub. L. 115–123 added subsec. (h).

Statutory Notes and Related Subsidiaries

Effective Date

of 2024 AmendmentAmendment by Pub. L. 118–158 to be applied and administered as if enacted on Sept. 30, 2024, see section 4101(g) of Pub. L. 118–158, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date

of 2023 AmendmentAmendment by Pub. L. 118–22 to be applied and administered as if enacted on Sept. 30, 2023, see section 102(g) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–123 applicable beginning with the 2018 crop year, see section 60101(a)(13) of Pub. L. 115–123, set out as a note under section 9011 of this title.

§9016 Price loss coverage

Summary

Title 7, §9016

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata