article: SECTION 1. MARKET-DRIVEN INVENTORY SYSTEM. (a) In General.--Subtitle B of title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8731 et seq.) is amended by adding at the end the following: ``SEC. 1211. MARKET-DRIVEN INVENTORY SYSTEM. ``(a) Definitions.--In this section: ``(1) Inventory cap.--The term `inventory cap' means the market commodity-specific limitations on participation in the program described in subsection (b)(3). ``(2) Market commodity.--The term `market commodity' means corn, oats, barley, grain sorghum, wheat, and soybeans. ``(3) Program.--The term `program' means the market-driven inventory system program established in accordance with this section. ``(4) Storage period.--The term `storage period' means, for a market commodity enrolled in the program, the period that-- ``(A) begins on the date of enrollment of the market commodity in the program; and ``(B) ends on the date on which the Secretary authorizes loan repayment and release under subsection (d). ``(b) Recourse Loans Available.-- ``(1) In general.--Subject to paragraph (3), for each of the 2014 through 2018 crops of each market commodity, the Secretary shall make available recourse loans in accordance with this section to producers on a farm that elect to participate in the program for 1 or more market commodities. ``(2) Enrollment.-- ``(A) In general.--Enrollment in the program shall be voluntary and considered on a rolling basis. ``(B) Limitations.-- ``(i) In general.--The Secretary may implement enrollment restrictions if the market prices of a market commodity are close to the recourse loan rate or the release price described in subsection (d)(2). ``(ii) End of restrictions.--Any enrollment restrictions implemented under clause (i) for a market commodity shall end as soon as the Secretary determines that the 1-month average of the market commodity is below the recourse loan rate for that market commodity. ``(3) Inventory cap.--Participation in the program for corn, wheat, and soybeans shall be limited to not more than the following: ``(A) Corn, 3,000,000,000 bushels. ``(B) Oats, 20,000,000 bushels. ``(C) Barley, 40,000,000 bushels. ``(D) Grain sorghum, 40,000,000 bushels. ``(E) Wheat, 800,000,000 bushels. ``(F) Soybeans, 400,000,000 bushels. ``(c) Storage Period.-- ``(1) In general.--As a condition of participation, for each market commodity that the producers on a farm enroll in the program, the producers on the farm shall, throughout the storage period-- ``(A) store the market commodity; ``(B) maintain the market commodity in proper condition, as determined by the Secretary; and ``(C) not sell or otherwise release into the market the market commodity. ``(2) Ownership.--During the storage period-- ``(A) title to the market commodity shall remain with the producers on the farm, subject to the conditions on participation described in paragraph (1); and ``(B) the Secretary shall have a first lien on the market commodity for which a recourse loan under this section is received. ``(3) Payment.-- ``(A) In general.--During the storage period, the Secretary shall make storage payments to the producers on the farm at a rate of $0.40 per bushel of market commodity per crop year. ``(B) Duration.--The Secretary shall terminate the making of storage payments for a market commodity to producers on a farm on the date on which the release price for the market commodity is triggered in accordance with subsection (d). ``(d) Loan Repayment and Release.-- ``(1) In general.--Subject to paragraph (4), the Secretary shall authorize loan repayment and release for a market commodity on the date on which the release price for that market commodity is triggered. ``(2) Release price.--The release price for a market commodity shall be equal to 160 percent of the applicable recourse loan rate described in subsection (e). ``(3) Producer options.--Subject to paragraph (4), once the Secretary has authorized loan repayment and release for a market commodity, the producers on a farm may-- ``(A) sell or otherwise release into the market the market commodity; or ``(B) continue to store the market commodity, but without receiving additional storage payments for the market commodity. ``(4) Partial release.-- ``(A) In general.--Regardless of whether the inventory cap for a market commodity has been reached, if the Secretary determines, based on available information, that the total quantity of the market commodity stored is so great that release of all of the stored market commodity into the market would depress market prices below the release level, the Secretary may establish a maximum release quantity to limit the sale and release of the stored market commodity. ``(B) Administration.--In the case of a partial release described in subparagraph (A)-- ``(i) the producers on a farm that first enrolled in the program shall be eligible first to sell or otherwise release into the market the stored market commodity; and ``(ii) the producers on a farm that do not have the option of selling or otherwise releasing into the market the stored market commodity shall continue to be eligible to receive storage payments for the market commodity. ``(e) Recourse Loan Rates.--For purposes of each of the 2014 through 2018 crop years, the recourse loan rate for a market commodity under this section shall be equal to the following: ``(1) Corn, $3.50 per bushel. ``(2) Oats, $2.49 per bushel. ``(3) Barley, $3.50 per bushel. ``(4) Grain sorghum, $3.50 per bushel. ``(5) Wheat, $5.28 per bushel. ``(6) Soybeans, $8.97 per bushel. ``(f) Set-Aside Program.-- ``(1) In general.--If the inventory cap for a market commodity is reached and the market price of the market commodity is below the recourse loan rate for the market commodity, the Secretary may establish a set-aside program under which producers on a farm may remove acres from production for the following crop year. ``(2) Eligibility.--To be eligible to enroll acres in the set-aside program under paragraph (1), the producers on a farm shall be required to have produced the applicable market commodity during at least 1 of the last 2 crop years, as determined by the Secretary. ``(3) Requirements.-- ``(A) Cover crop.-- ``(i) In general.--As a condition on participation in the set-aside program, producers on a farm shall be required to maintain an approved cover crop on all enrolled acreage. ``(ii) Planting flexibility.--Producers on a farm may plant any crop on acreage not enrolled in the set-aside program. ``(B) Secretarial discretion.--If the Secretary establishes a set-aside program under paragraph (1), the Secretary shall determine, at the discretion of the Secretary-- ``(i) the amount of the payment to be made to producers that elect to participate in the set-aside program; ``(ii) the percentage of the total acreage planted to the market commodity that the producers are required to remove from production as a condition of participation; and ``(iii) the extent to which grazing and other noncommercial uses of the land enrolled in the set-aside program shall be permitted.''. (b) Conforming Amendments.-- (1) Section 1001 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702) is amended-- (A) in paragraph (4)-- (i) by striking ``wheat, corn, grain sorghum, barley, oats''; and (ii) by striking ``soybeans''; and (B) in paragraph (8)-- (i) by striking ``wheat, corn, grain sorghum, barley, oats''; and (ii) by striking ``soybeans''. (2) Section 1103(b) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713) is amended-- (A) by striking paragraphs (1), (2), (3), (4), (5), and (9); and (B) by redesignating paragraphs (6), (7), (8), and (10) as paragraphs (1), (2), (3), and (4), respectively. (3) Section 1104(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714(c)(3)) is amended-- (A) by striking subparagraphs (A), (B), (C), (D), (E), and (I); and (B) by redesignating subparagraphs (F), (G), and (H) and (J) through (N) as subparagraphs (A), (B), and (C) and (D) through (H), respectively. (4) Section 1202(c) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8732(c)) is amended-- (A) by striking paragraphs (1), (2), (3), (4), (5), and (10); and (B) by redesignating paragraphs (6) through (9) and (11) through (19) as paragraphs (1) through (4) and (5) through (13), respectively. (c) Application.--The amendments made by this section apply beginning with the 2014 crop of a market commodity (as defined in section 1211(a) of the Food, Conservation, and Energy Act of 2008 (as added by subsection (a))).
summary: Amends the Food, Conservation, and Energy Act of 2008 to direct the Secretary of Agriculture (USDA), for each of the 2014-2018 crops of each market commodity, to make recourse loans available to producers on a farm electing to participate in the program. Sets forth: (1) the recourse loan rate for corn, oats, barley, grain sorghum, wheat, and soybeans; and (2) market commodity-specific limitations on participation (inventory caps) for such crops. Requires participating producers, until the Secretary authorizes loan repayment and release, to: (1) store and maintain the market commodity, and (2) not sell or otherwise release the commodity into the market. Provides that during such storage period: (1) title to the commodity shall remain with the producers, and (2) the Secretary shall have a first lien on the commodity for which a recourse loan is received. Provides USDA payments to producers at $0.40 per bushel per crop year. Authorizes the Secretary to establish a partial commodity release if the market release of all of the stored commodity would depress prices below the release level. Authorizes the Secretary to establish a set-aside program under which qualifying producers on a farm may remove acres from production for the following crop year if the inventory cap for a commodity is reached and such commodity's market price is below the recourse loan rate. Requires participating producers to maintain a cover crop on all enrolled acreage.