(a) In general

The Federal Agriculture Improvement and Reform Act of 1996 is amended by inserting after section 196 (7 U.S.C. 7333) the following:

197. Specialty crop emergency assistance framework

(a) In general

The Secretary shall establish a framework to provide direct assistance to producers of specialty crops the production of which is impacted by an adverse event (including an economic crisis or market disruption), as determined by the Secretary, in accordance with this section.

(b) Payment calculation

In determining a payment calculation for purposes of direct assistance to a producer of specialty crops under subsection (a), the Secretary shall calculate payments based on—

(1)

the producer’s sales of specialty crops for a calendar year that precedes the year in which the adverse event described in such subsection occurred or the average of such sales over a set of consecutive calendar years that precedes the year in which such adverse event occurred, as determined by the Secretary; multiplied by

(2)

a payment factor the Secretary determines, subject to the availability of funds, to address losses of such specialty crops from such adverse event.

(c) Special rules

Subject to subsection (d), in providing direct assistance pursuant to this section, the Secretary shall consider—

(1)

the higher value of specialty crops relative to other crops;

(2)

the greater input costs required to grow specialty crops relative to other crops; and

(3)

diverse types of legal entities and structures used by specialty crop producers.

(d) Limitations

(1) Total amount

(A) In general

Except as provided in subparagraph (B), the total amount of payments received, directly or indirectly, by a person or legal entity (except a qualified pass-through entity) (as such terms are defined in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a))) for any crop year under this section may not exceed the amount specified in subsection (b) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), as adjusted pursuant to subsection (i) of such section.

(B) Exception

In the case of a person or legal entity with an average gross income (as calculated under subparagraph (B) of section 1001D(b)(4) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)(4))) for which greater than or equal to 75 percent of the average derives from farming, ranching, or silviculture activities (as defined in subparagraph (A) of that section)—

(i)

subparagraph (A) of this paragraph shall not apply; and

(ii)

the total maximum amount of payments received, directly or indirectly, by such person or legal entity for any crop year under this section shall be set by the Secretary, except such amount may not be less than $500,000.

(2) Notification of interests; eligibility; denials

Sections 1001A(a), 1001B, and 1001C of the Food Security Act of 1985 (7 U.S.C. 1308–1(a); 1308–2; 1308–3) shall apply to a producer of a specialty crop under this section in the same manner as such sections apply to a person or legal entity with respect to a covered commodity, except to the extent such sections relate to the application of subsections (b) through (d) of section 1001A of that Act (7 U.S.C. 1308–1).

(b) Payment limitation conforming amendment

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