7 U.S.C. § 9016 | Price loss coverage

(a)

Price loss coverage payments

section 9015 of this titleIf all of the producers on a farm make the election under subsection (a) or (h) of 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)

Effective price

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)

Payment rate

(1)

In general

(A)

2014 through 2018 crop years

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)

2019 through 2031 crop years

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)

Announcement

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)

Insufficient data

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)

Payment amount

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)

Time for payments

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)

Effective price for barley

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

(g)

Reference price for temperate japonica rice

section 9011 of this titleIn 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 , 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)

Effective price for seed cotton

(1)

In general

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)

Calculation

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.

Pub. L. 113–79, title I, § 1116Feb. 7, 2014128 Stat. 668 Pub. L. 115–123, div. F, § 60101(a)(8)Feb. 9, 2018132 Stat. 310 Pub. L. 115–334, title I, § 1106Dec. 20, 2018132 Stat. 4504 Pub. L. 118–22, div. B, title I, § 102(c)(3)Nov. 17, 2023137 Stat. 116 Pub. L. 118–158, div. D, § 4101(c)(3)Dec. 21, 2024138 Stat. 1768 Pub. L. 119–21, title I, § 10304July 4, 2025139 Stat. 90(, , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Codification

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

Amendments

Pub. L. 119–21, § 10304(1)2025—Subsec. (a)(2). , substituted “2031” for “2023” in introductory provisions.

Pub. L. 119–21, § 10304(2)Subsec. (c)(1)(B). , substituted “2031” for “2023” in heading and introductory provisions.

Pub. L. 119–21, § 10304(3)Subsec. (d). , substituted “2031” for “2023” in introductory provisions.

Pub. L. 119–21, § 10304(4)Subsec. (g). , 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).

Pub. L. 118–1582024—Subsec. (d). substituted “2025” for “2024” in introductory provisions.

Pub. L. 118–222023—Subsec. (d). substituted “2024” for “2018” in introductory provisions.

Pub. L. 115–334, § 1106(1)2018—Subsec. (a). , 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).

Pub. L. 115–334, § 1106(2)Subsec. (c). , 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).

Pub. L. 115–334, § 1106(3)section 9011(18) of this titleSubsec. (g). , 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 in order to reflect price premiums.”

Pub. L. 115–123Subsec. (h). added subsec. (h).

Statutory Notes and Related Subsidiaries

Effective Date of 2024 Amendment

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

Effective Date of 2023 Amendment

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

Effective Date of 2018 Amendment

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