Category: OBBBA Text

Section 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended—

(1) in paragraph (1), by striking “paragraph (3)” and inserting “paragraphs (3) and (4)”; and

(2) by adding at the end the following:

“(4) EXCEPTION FOR CERTAIN OPERATIONS.—

“(A) DEFINITIONS.—In this paragraph:

“(i) EXCEPTED PAYMENT OR BENEFIT.—The term ‘excepted payment or benefit’ means—

“(I) a payment or benefit under subtitle E of title I of the Agricultural Act of 2014 (7 U.S.C. 9081 et seq.);

“(II) a payment or benefit under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333); and

“(III) a payment or benefit described in paragraph (2)(C) received on or after October 1, 2024.

“(ii) FARMING, RANCHING, OR SILVICULTURE ACTIVITIES.—The term ‘farming, ranching, or silviculture activities’ includes agri-tourism, direct-to-consumer marketing of agricultural products, the sale of agricultural equipment owned by the person or legal entity, and other agriculture-related activities, as determined by the Secretary.

“(B) EXCEPTION.—In the case of an excepted payment or benefit, the limitation established by paragraph (1) shall not apply to a person or legal entity during a crop, fiscal, or program year, as appropriate, if greater than or equal to 75 percent of the average gross income of the person or legal entity derives from farming, ranching, or silviculture activities.”.

(a) In general.—Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(1) in subsection (a)—

(A) by redesignating paragraph (5) as paragraph (6); and

(B) by inserting after paragraph (4) the following:

“(5) QUALIFIED PASS-THROUGH ENTITY.—The term ‘qualified pass-through entity’ means—

“(A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986);

“(B) an S corporation (as defined in section 1361 of that Code);

“(C) a limited liability company that does not affirmatively elect to be treated as a corporation; and

“(D) a joint venture or general partnership.”;

(2) in subsections (b) and (c), by striking “except a joint venture or general partnership” each place it appears and inserting “except a qualified pass-through entity”; and

(3) in subsection (d), by striking “subtitle B of title I of the Agricultural Act of 2014 or”.

(b) Attribution of payments.—Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended—

(1) in the clause heading, by striking “joint ventures and general partnerships” and inserting “qualified pass-through entities”;

(2) by striking “a joint venture or a general partnership” and inserting “a qualified pass-through entity”;

(3) by striking “joint ventures and general partnerships” and inserting “qualified pass-through entities”; and

(4) by striking “the joint venture or general partnership” and inserting “the qualified pass-through entity”.

(c) Persons actively engaged in farming.—Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–1(b)(2)) is amended—

(1) subparagraphs (A) and (B), by striking “a general partnership, a participant in a joint venture” each place it appears and inserting “a qualified pass-through entity”; and

(2) in subparagraph (C), by striking “a general partnership, joint venture, or similar entity” and inserting “a qualified pass-through entity or a similar entity”.

(d) Joint and several liability.—Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308–2(d)) is amended by striking “partnerships and joint ventures” and inserting “qualified pass-through entities”.

(e) Exclusion from AGI calculation.—Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(d)) is amended by striking “, general partnership, or joint venture” each place it appears.

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended—

(1) in subsection (b)—

(A) by striking “The” and inserting “Subject to subsection (i), the”; and

(B) by striking “$125,000” and inserting “$155,000”;

(2) in subsection (c)—

(A) by striking “The” and inserting “Subject to subsection (i), the”; and

(B) by striking “$125,000” and inserting “$155,000”; and

(3) by adding at the end the following:

“(i) Adjustment.—For the 2025 crop year and each crop year thereafter, the Secretary shall annually adjust the amounts described in subsections (b) and (c) for inflation based on the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.”.

Section 1117 of the Agricultural Act of 2014 (7 U.S.C. 9017) is amended—

(1) in subsection (a), in the matter preceding paragraph (1), by striking “2023” and inserting “2031”;

(2) in subsection (c)—

(A) in paragraph (1), by inserting “for each of the 2014 through 2024 crop years and 90 percent of the benchmark revenue for each of the 2025 through 2031 crop years” before the period at the end;

(B) by striking “2023” each place it appears and inserting “2031”; and

(C) in paragraph (4)(B), in the subparagraph heading, by striking “2023” and inserting “2031”;

(3) in subsection (d)(1), by striking subparagraph (B) and inserting the following:

“(B) (i) for each of the 2014 through 2024 crop years, 10 percent of the benchmark revenue for the crop year applicable under subsection (c); and

“(ii) for each of the 2025 through 2031 crop years, 12 percent of the benchmark revenue for the crop year applicable under subsection (c).”; and

(4) in subsections (e), (g)(5), and (i)(5), by striking “2023” each place it appears and inserting “2031”.

Section 1116 of the Agricultural Act of 2014 (7 U.S.C. 9016) is amended—

(1) in subsection (a)(2), in the matter preceding subparagraph (A), by striking “2023” and inserting “2031”;

(2) in subsection (c)(1)(B)—

(A) in the subparagraph heading, by striking “2023” and inserting “2031”; and

(B) in the matter preceding clause (i), by striking “2023” and inserting “2031”;

(3) in subsection (d), in the matter preceding paragraph (1), by striking “2025” and inserting “2031”; and

(4) in subsection (g)—

(A) by striking “subparagraph (F) of section 1111(19)” and inserting “paragraph (19)(A)(vi) of section 1111”; and

(B) by striking “2012 through 2016” each place it appears and inserting “2017 through 2021”.

Section 1112 of the Agricultural Act of 2014 (7 U.S.C. 9012) is amended—

(1) in subsection (d)(3)(A), by striking “2023” and inserting “2031”; and

(2) by adding at the end the following:

“(e) Additional base acres.—

“(1) IN GENERAL.—As soon as practicable after the date of enactment of this subsection, and notwithstanding subsection (a), the Secretary shall provide notice to owners of eligible farms pursuant to paragraph (3) and allocate to those eligible farms a total of not more than an additional 30,000,000 base acres in the manner provided in this subsection. An owner of a farm that is eligible to receive an allocation of base acres may elect to not receive that allocation by notifying the Secretary not later than 90 days after receipt of the notice provided by the Secretary under this paragraph.

“(2) CONTENT OF NOTICE.—The notice under paragraph (1) shall include the following:

“(A) Information that the allocation is occurring.

“(B) Information regarding the eligibility of the farm for an allocation of base acres under paragraph (3).

“(C) Information regarding how an owner may appeal a determination of ineligibility for an allocation of base acres under paragraph (3) through an appeals process established by the Secretary.

“(3) ELIGIBILITY.—

“(A) IN GENERAL.—Subject to subparagraph (D), effective beginning with the 2026 crop year, a farm is eligible to receive an allocation of base acres if, with respect to the farm, the amount described in subparagraph (B) exceeds the amount described in subparagraph (C).

“(B) 5-YEAR AVERAGE SUM.—The amount described in this subparagraph, with respect to a farm, is the sum of—

“(i) the 5-year average of—

“(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage or other similar purposes for the 2019 through 2023 crop years; and

“(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; plus

“(ii) the lesser of—

“(I) 15 percent of the total acres on the farm; and

“(II) the 5-year average of—

“(aa) the acreage planted on the farm to eligible noncovered commodities for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and

“(bb) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to eligible noncovered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.

“(C) TOTAL NUMBER OF BASE ACRES FOR COVERED COMMODITIES.—The amount described in this subparagraph, with respect to a farm, is the total number of base acres for covered commodities on the farm (excluding unassigned crop base), as in effect on September 30, 2024.

“(D) EFFECT OF NO RECENT PLANTINGS OF COVERED COMMODITIES.—In the case of a farm for which the amount determined under clause (i) of subparagraph (B) is equal to zero, that farm shall be ineligible to receive an allocation of base acres under this subsection.

“(E) ACREAGE PLANTED ON THE FARM TO ELIGIBLE NONCOVERED COMMODITIES DEFINED.—In this paragraph, the term ‘acreage planted on the farm to eligible noncovered commodities’ means acreage planted on a farm to commodities other than covered commodities, trees, bushes, vines, grass, or pasture (including cropland that was idle or fallow), as determined by the Secretary.

“(4) NUMBER OF BASE ACRES.—Subject to paragraphs (3) and (8), the number of base acres allocated to an eligible farm shall—

“(A) be equal to the difference obtained by subtracting the amount determined under subparagraph (C) of paragraph (3) from the amount determined under subparagraph (B) of that paragraph; and

“(B) include unassigned crop base.

“(5) ALLOCATION OF ACRES.—

“(A) ALLOCATION.—The Secretary shall allocate the number of base acres under paragraph (4) among those covered commodities planted on the farm at any time during the 2019 through 2023 crop years.

“(B) ALLOCATION FORMULA.—The allocation of additional base acres for covered commodities shall be in proportion to the ratio of—

“(i) the 5-year average of—

“(I) the acreage planted on the farm to each covered commodity for harvest, grazing, haying, silage, or other similar purposes for the 2019 through 2023 crop years; and

“(II) any acreage on the farm that the producers were prevented from planting during the 2019 through 2023 crop years to that covered commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; to

“(ii) the 5-year average determined under paragraph (3)(B)(i).

“(C) INCLUSION OF ALL 5 YEARS IN AVERAGE.—For the purpose of determining a 5-year acreage average under subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not planted.

“(D) TREATMENT OF MULTIPLE PLANTING OR PREVENTED PLANTING.—For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2019 through 2023 crop years to covered commodities, if the acreage that was planted or prevented from being planted was devoted to another covered commodity in the same crop year (other than a covered commodity produced under an established practice of double cropping), the owner may elect the covered commodity to be used for that crop year in determining the 5-year average, but may not include both the initial covered commodity and the subsequent covered commodity.

“(E) LIMITATION.—The allocation of additional base acres among covered commodities on a farm under this paragraph may not result in a total number of base acres for the farm in excess of the total number of acres on the farm.

“(6) REDUCTION BY THE SECRETARY.—In carrying out this subsection, if the total number of eligible acres allocated to base acres across all farms in the United States under this subsection would exceed 30,000,000 acres, the Secretary shall apply an across-the-board, pro-rata reduction to the number of eligible acres to ensure the number of allocated base acres under this subsection is equal to 30,000,000 acres.

“(7) PAYMENT YIELD.—Beginning with crop year 2026, for the purpose of making price loss coverage payments under section 1116, the Secretary shall establish payment yields to base acres allocated under this subsection equal to—

“(A) the payment yield established on the farm for the applicable covered commodity; and

“(B) if no such payment yield for the applicable covered commodity exists, a payment yield—

“(i) equal to the average payment yield for the covered commodity for the county in which the farm is situated; or

“(ii) determined pursuant to section 1113(c).

“(8) TREATMENT OF NEW OWNERS.—In the case of a farm for which the owner on the date of enactment of this subsection was not the owner for the 2019 through 2023 crop years, the Secretary shall use the planting history of the prior owner or owners of that farm for purposes of determining—

“(A) eligibility under paragraph (3);

“(B) eligible acres under paragraph (4); and

“(C) the allocation of acres under paragraph (5).”.

(a) In general.—Section 1115 of the Agricultural Act of 2014 (7 U.S.C. 9015) is amended—

(1) in subsection (a), in the matter preceding paragraph (1), by striking “2023” and inserting “2031”;

(2) in subsection (c)—

(A) in the matter preceding paragraph (1)—

(i) by striking “crop year or” and inserting “crop year,”; and

(ii) by inserting “or the 2026 crop year,” after “2019 crop year,”;

(B) in paragraph (1)—

(i) by striking “crop year or” and inserting “crop year,”; and

(ii) by inserting “or the 2026 crop year,” after “2019 crop year,”; and

(C) in paragraph (2)—

(i) in subparagraph (A), by striking “and” at the end;

(ii) in subparagraph (B), by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(C) the same coverage for each covered commodity on the farm for the 2027 through 2031 crop years as was applicable for the 2025 crop year.”; and

(3) by adding at the end the following:

“(i) Higher of price loss coverage payments and agriculture risk coverage payments.—For the 2025 crop year, the Secretary shall, on a covered commodity-by-covered commodity basis, make the higher of price loss coverage payments under section 1116 and agriculture risk coverage county coverage payments under section 1117 to the producers on a farm for the payment acres for each covered commodity on the farm.”.

(b) Federal crop insurance supplemental coverage option.—Section 508(c)(4)(C)(iv) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(4)(C)(iv)) is amended by striking “Crops for which the producer has elected under section 1116 of the Agricultural Act of 2014 to receive agriculture risk coverage and acres” and inserting “Acres” .

(a) Effective reference price.—Section 1111(8)(B)(ii) of the Agricultural Act of 2014 (7 U.S.C. 9011(8)(B)(ii)) is amended by striking “85” and inserting “beginning with the crop year 2025, 88”.

(b) Reference price.—Section 1111 of the Agricultural Act of 2014 (7 U.S.C. 9011) is amended by striking paragraph (19) and inserting the following:

“(19) REFERENCE PRICE.—

“(A) IN GENERAL.—Effective beginning with the 2025 crop year, subject to subparagraphs (B) and (C), the term ‘reference price’, with respect to a covered commodity for a crop year, means the following:

“(i) For wheat, $6.35 per bushel.

“(ii) For corn, $4.10 per bushel.

“(iii) For grain sorghum, $4.40 per bushel.

“(iv) For barley, $5.45 per bushel.

“(v) For oats, $2.65 per bushel.

“(vi) For long grain rice, $16.90 per hundredweight.

“(vii) For medium grain rice, $16.90 per hundredweight.

“(viii) For soybeans, $10.00 per bushel.

“(ix) For other oilseeds, $23.75 per hundredweight.

“(x) For peanuts, $630.00 per ton.

“(xi) For dry peas, $13.10 per hundredweight.

“(xii) For lentils, $23.75 per hundredweight.

“(xiii) For small chickpeas, $22.65 per hundredweight.

“(xiv) For large chickpeas, $25.65 per hundredweight.

“(xv) For seed cotton, $0.42 per pound.

“(B) EFFECTIVENESS.—Effective beginning with the 2031 crop year, the reference prices defined in subparagraph (A) with respect to a covered commodity shall equal the reference price in the previous crop year multiplied by 1.005.

“(C) LIMITATION.—In no case shall a reference price for a covered commodity exceed 113 percent of the reference price for such covered commodity listed in subparagraph (A).”.

SEC. 10201. Rescission of amounts for forestry.

The unobligated balances of amounts appropriated by the following provisions of Public Law 117–169 are rescinded:

(1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 2023).

(2) Paragraphs (1) through (4) of section 23002(a) (136 Stat. 2025).

(3) Section 23003(a)(2) (136 Stat. 2026).

(4) Section 23005 (136 Stat. 2027).

The unobligated balances of amounts appropriated by the following provisions of Public Law 117–169 are rescinded:

(1) Paragraphs (3) and (4) of section 23001(a) (136 Stat. 2023).

(2) Paragraphs (1) through (4) of section 23002(a) (136 Stat. 2025).

(3) Section 23003(a)(2) (136 Stat. 2026).

(4) Section 23005 (136 Stat. 2027).