[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4988 Introduced in House (IH)]
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115th CONGRESS
2d Session
H. R. 4988
To establish nonrecourse conservation assistance loans for loan
commodities produced on certain farms, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 8, 2018
Mrs. Bustos (for herself and Mr. Bost) introduced the following bill;
which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To establish nonrecourse conservation assistance loans for loan
commodities produced on certain farms, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Conservation Assistance Loan Act of
2018''.
SEC. 2. AVAILABILITY OF NONRECOURSE CONSERVATION ASSISTANCE LOANS FOR
LOAN COMMODITIES.
(a) Nonrecourse Loans Available.--
(1) In general.--For each of the 2018 through 2022 crops of
each loan commodity, the Secretary shall make available to
qualified producers on a farm nonrecourse conservation
assistance loans for loan commodities produced on the farm.
(2) Qualified producer.--In this section, the term
``qualified producer'' means a producer eligible for a
nonrecourse marketing loan under section 1201 of the
Agricultural Act of 2014 (7 U.S.C. 9031) that agrees to not
apply for such loan for each of the 2018 through 2022 crops
described in paragraph (1).
(b) Eligible Production.--The producers on a farm shall be
eligible for a conservation assistance loan under subsection (a) for
any quantity of a loan commodity produced on the farm.
(c) Loan Rates for Nonrecourse Conservation Assistance Loans.--
(1) In general.--Subject to paragraph (2), for purposes of
each of the 2018 through 2022 crop years, the loan rate for a
conservation assistance loan under this section for a loan
commodity shall be--
(A) for beginning farmers and ranchers (as
determined by the Secretary), 75 percent of the
national average price received by producers during the
12-month marketing year for the loan commodity for the
most recent 5 crop years, excluding--
(i) the crop year with the highest price;
and
(ii) the crop year with the lowest price;
and
(B) for producers not described in paragraph (1),
60 percent of the national average price received by
producers during the 12-month marketing year for the
loan commodity for the most recent 5 crop years,
excluding--
(i) the crop year with the highest price;
and
(ii) the crop year with the lowest price.
(2) Special rule for cover crops.--In the case of a
producer who agrees to plant a cover crop on acres associated
with the loan commodity, the applicable loan rate under
paragraph (1) shall be increased by an amount equal to $0.20
per bushel.
(d) Terms of Loans.--
(1) In general.--In the case of each loan commodity, a
conservation loan under this section shall have a term of 9
months beginning on the first day of the first month after the
month in which the loan is made.
(2) Extensions prohibited.--The Secretary may not extend
the term of a conservation assistance loan for any loan
commodity.
(e) Repayment of Loans.--
(1) In general.--The Secretary shall permit the producers
on a farm to repay a conservation assistance loan under this
section for a loan commodity at a rate that is the lesser of
the following:
(A) The loan rate established under subsection (c).
(B) A rate that is equal to the expected market
price for the loan commodity as calculated for crop
insurance, as determined by the Secretary.
(C) Such other rate the Secretary determines will
avoid or minimize potential loan forfeitures.
(2) Adjustments.--The Secretary shall make all adjustments
that the Secretary determines necessary to--
(A) avoid forfeiture or the accumulation of stocks
of the commodities placed under a loan under this
section;
(B) minimize the costs incurred by the Federal
Government;
(C) allow the commodity produced to be marketed
freely and competitively, both domestically and
internationally;
(D) minimize discrepancies in conservation loan
benefits across State boundaries and across country
boundaries; and
(E) in the case of a producer who is prevented from
planting a commercial crop due to weather or other
natural events that interfered with cover crop
determined (as determined by the Secretary), the
Secretary may forgive the portion of the loan
calculated under subsection (c)(2).
(f) Compliance Requirements.--As a condition of the receipt of a
conservation assistance loan under this section, the producer shall
during the crop year of the loan--
(1) comply with applicable conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of that Act (16
U.S.C. 3821 et seq.);
(2) agree to use a reduced tillage method and nutrient
management practices (as determined by the Secretary to be
appropriate for soil health management) for the acres
associated with the commodity covered by the loan; and
(3) in the case of a loan calculated under subsection
(c)(2), agree to plant a cover crop on the acres associated
with the loan commodity, as determined by the Secretary to be
appropriate.
(g) Farm Service Agency Report.--The Administrator of the Farm
Service Agency shall submit an annual report to the Secretary that
includes the information with respect to the compliance requirements
specified in paragraphs (1) and (2) of subsection (f) relating to each
conservation assistance loan under this section that was fully repaid
in the preceding fiscal year.
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