text: 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))).
target: 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.
feat_title: A bill to amend the Food, Conservation, and Energy Act of 2008 to establish a market-driven inventory system.