Farm Program Integrity Act of 2013 - Amends the Food Security Act of 1985 to establish a per farm cap of $50,000 on commodity program benefits and $75,000 on marketing loan program benefits ($125,000 total). Increases such limit to $250,000 for married couples.
Revises the limitation of benefits eligibility to active producers to include farm managers.
Establishes criteria for determining whether a person acting as a farm manager is actively engaged in farming for such purposes. (Permits only one such eligibility per farm operation.)
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1932 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1932
To amend the Food Security Act of 1985 to restore integrity to and
strengthen payment limitation rules for commodity payments and
benefits.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 9, 2013
Mr. Fortenberry introduced the following bill; which was referred to
the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Food Security Act of 1985 to restore integrity to and
strengthen payment limitation rules for commodity payments and
benefits.
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 ``Farm Program Integrity Act of
2013''.
SEC. 2. PAYMENT LIMITATIONS.
(a) In General.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended--
(1) in subsection (a), by striking paragraph (3) and
inserting the following:
``(3) Legal entity.--
``(A) In general.--The term `legal entity' means--
``(i) an organization that (subject to the
requirements of this section and section 1001A)
is eligible to receive a payment under a
provision of law referred to in subsection (b),
(c), or (d);
``(ii) a corporation, joint stock company,
association, limited partnership, limited
liability company, limited liability
partnership, charitable organization, estate,
irrevocable trust, grantor of a revocable
trust, or other similar entity (as determined
by the Secretary); and
``(iii) an organization that is
participating in a farming operation as a
partner in a general partnership or as a
participant in a joint venture.
``(B) Exclusion.--The term `legal entity' does not
include a general partnership or joint venture.'';
(2) by striking subsections (b) through (d) and inserting
the following:
``(b) Limitation on Payments for Covered Commodities and Peanuts.--
The total amount of payments received, directly or indirectly, by a
person or legal entity for any crop year for 1 or more covered
commodities and peanuts under title I of the Food, Conservation, and
Energy Act of 2008 (7 U.S.C. 8701 et seq.) (or a successor provision)
may not exceed $125,000, of which--
``(1) not more than $75,000 may consist of marketing loan
gains and loan deficiency payments under subtitle B or C of
title I of the Food, Conservation, and Energy Act of 2008 (7
U.S.C. 8731 et seq.) (or a successor provision); and
``(2) not more than $50,000 may consist of any other
payments made for covered commodities and peanuts under title I
of the Food, Conservation, and Energy Act of 2008 (7 U.S.C.
8702 et seq.) (or a successor provision).
``(c) Spousal Equity.--
``(1) In general.--Notwithstanding subsection (b), except
as provided in paragraph (2), if a person and the spouse of the
person are covered by paragraph (2) and receive, directly or
indirectly, any payment or gain covered by this section, the
total amount of payments or gains (as applicable) covered by
this section that the person and spouse may jointly receive
during any crop year may not exceed an amount equal to twice
the applicable dollar amounts specified in subsection (b).
``(2) Exceptions.--
``(A) Separate farming operations.--In the case of
a married couple in which each spouse, before the
marriage, was separately engaged in an unrelated
farming operation, each spouse shall be treated as a
separate person with respect to a farming operation
brought into the marriage by a spouse, subject to the
condition that the farming operation shall remain a
separate farming operation, as determined by the
Secretary.
``(B) Election to receive separate payments.--A
married couple may elect to receive payments separately
in the name of each spouse if the total amount of
payments and benefits described in subsection (b) that
the married couple receives, directly or indirectly,
does not exceed an amount equal to twice the applicable
dollar amounts specified in those subsections.'';
(3) in paragraph (3)(B) of subsection (f), by adding at the
end the following:
``(iii) Irrevocable trusts.--In
promulgating regulations to define the term
`legal entity' as the term applies to
irrevocable trusts, the Secretary shall ensure
that irrevocable trusts are legitimate entities
that have not been created for the purpose of
avoiding a payment limitation.''; and
(4) in subsection (h), in the second sentence, by striking
``or other entity'' and inserting ``or legal entity''.
(b) Conforming Amendments.--
(1) Section 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) is amended--
(A) in subsection (e), by striking ``subsections
(b) and (c)'' each place it appears in paragraphs (1)
and (3)(B) and inserting ``subsection (b)'';
(B) in subsection (f)--
(i) in paragraph (2), by striking
``Subsections (b) and (c)'' and inserting
``Subsection (b)'';
(ii) in paragraph (4)(B), by striking
``subsection (b) or (c)'' and inserting
``subsection (b)'';
(iii) in paragraph (5)--
(I) in subparagraph (A), by
striking ``subsection (d)''; and
(II) in subparagraph (B), by
striking ``subsection (b), (c), or
(d)'' and inserting ``subsection (b)'';
and
(iv) in paragraph (6)--
(I) in subparagraph (A), by
striking ``Notwithstanding subsection
(d), except as provided in subsection
(g)'' and inserting ``Except as
provided in subsection (f)''; and
(II) in subparagraph (B), by
striking ``subsections (b), (c), and
(d)'' and inserting ``subsection (b)'';
(C) in subsection (g)--
(i) in paragraph (1)--
(I) by striking ``subsection
(f)(6)(A)'' and inserting ``subsection
(e)(6)(A)''; and
(II) by striking ``subsection (b)
or (c)'' and inserting ``subsection
(b)''; and
(ii) in paragraph (2)(A), by striking
``subsections (b) and (c)'' and inserting
``subsection (b)''; and
(D) by redesignating subsections (e) through (h) as
subsections (d) through (g), respectively.
(2) Section 1001A of the Food Security Act of 1985 (7
U.S.C. 1308-1) is amended--
(A) in subsection (a), by striking ``subsections
(b) and (c) of section 1001'' and inserting ``section
1001(b)''; and
(B) in subsection (b)(1), by striking ``subsection
(b) or (c) of section 1001'' and inserting ``section
1001(b)''.
(3) Section 1001B(a) of the Food Security Act of 1985 (7
U.S.C. 1308-2(a)) is amended in the matter preceding paragraph
(1) by striking ``subsections (b) and (c) of section 1001'' and
inserting ``section 1001(b)''.
(c) Application.--The amendments made by this section shall apply
beginning with the 2014 crop year.
SEC. 3. PAYMENTS LIMITED TO ACTIVE FARMERS.
Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308-1) is
amended--
(1) in subsection (b)(2)--
(A) by striking ``or active personal management''
each place it appears in subparagraphs (A)(i)(II) and
(B)(ii); and
(B) in subparagraph (C), by striking ``, as applied
to the legal entity, are met by the legal entity, the
partners or members making a significant contribution
of personal labor or active personal management'' and
inserting ``are met by partners or members making a
significant contribution of personal labor, those
partners or members''; and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) the landowner share-rents the land at a rate
that is usual and customary;'';
(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 share of the payments received by the
landowner is commensurate with the share of the crop or
income received as rent.'';
(B) in paragraph (2)(A), by striking ``active
personal management or'';
(C) in paragraph (5)--
(i) by striking ``(5)'' and all that
follows through ``(A) In general.--A person''
and inserting the following:
``(5) Custom farming services.--A person'';
(ii) by inserting ``under usual and
customary terms'' after ``services''; and
(iii) by striking subparagraph (B); and
(D) by adding at the end the following:
``(7) Farm managers.--A person who otherwise meets the
requirements of this subsection other than (b)(2)(A)(i)(II)
shall be considered to be actively engaged in farming, as
determined by the Secretary, with respect to the farming
operation, including a farming operation that is a sole
proprietorship, a legal entity such as a joint venture or
general partnership, or a legal entity such as a corporation or
limited partnership, if the person--
``(A) makes a significant contribution of
management to the farming operation necessary for the
farming operation, taking into account--
``(i) the size and complexity of the
farming operation; and
``(ii) the management requirements normally
and customarily required by similar farming
operations;
``(B)(i) is the only person in the farming
operation qualifying as actively engaged in farming by
using the farm manager special class designation under
this paragraph; and
``(ii) together with any other persons in the
farming operation qualifying as actively engaged in
farming under subsection (b)(2) or as part of a special
class under this subsection, does not collectively
receive, directly or indirectly, an amount equal to
more than the applicable limits under section 1001(b);
``(C) does not use the management contribution
under this paragraph to qualify as actively engaged in
more than 1 farming operation; and
``(D) manages a farm operation that does not
substantially share equipment, labor, or management
with persons or legal entities that with the person
collectively receive, directly or indirectly, an amount
equal to more than the applicable limits under section
1001(b).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Agriculture.
Referred to the Subcommittee on General Farm Commodities and Risk Management.
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