[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2010 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2010

 To reduce target prices for wheat, feed grains, rice, and cotton, to 
provide for the termination of deficiency payments and marketing loans 
   for these crops, to abandon the use of acreage reduction programs 
regarding these crops, to prohibit the provision of deficiency payments 
for acreage diverted from these crops, to impose income limitations on 
participation in programs regarding these crops, and to limit Commodity 
          Credit Corporation outlays on behalf of these crops.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 11, 1995

Mr. Zimmer (for himself, Mr. Schumer, Mr. Miller of Florida, Mr. Frank 
 of Massachusetts, Mr. Shays, Mr. Jacobs, Mr. Porter, Mr. Rohrabacher, 
  Mr. Andrews, Mr. Saxton, Mr. Meehan, Mr. Salmon, Mr. Franks of New 
  Jersey, Mr. Greenwood, Mr. Horn, Mr. Ensign, and Mr. Frelinghuysen) 
 introduced the following bill; which was referred to the Committee on 
                              Agriculture

_______________________________________________________________________

                                 A BILL


 
 To reduce target prices for wheat, feed grains, rice, and cotton, to 
provide for the termination of deficiency payments and marketing loans 
   for these crops, to abandon the use of acreage reduction programs 
regarding these crops, to prohibit the provision of deficiency payments 
for acreage diverted from these crops, to impose income limitations on 
participation in programs regarding these crops, and to limit Commodity 
          Credit Corporation outlays on behalf of these crops.
    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 Freedom Act of 1995''.

SEC. 2. REDUCTION IN TARGET PRICES AND TERMINATION OF DEFICIENCY 
              PAYMENTS AND MARKETING LOANS FOR WHEAT, FEED GRAINS, 
              RICE, AND COTTON.

    (a) Wheat.--
            (1) Reduction in target prices.--In the case of any price 
        support program for wheat administered by the Secretary of 
        Agriculture, the established price for wheat for a crop year 
        shall not exceed--
                    (A) for the 1996 crop of wheat, $3.84 per bushel; 
                and
                    (B) for the 1997 through 2000 crops of wheat, an 
                amount that is four percent less than the established 
                price for wheat for the preceding crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of wheat, the Secretary of 
        Agriculture shall not make deficiency payments available to 
        producers of wheat or permit producers to repay a price support 
        loan at a rate below the original loan rate.
    (b) Corn.--
            (1) Reduction in target prices.--In the case of any price 
        support program for corn administered by the Secretary of 
        Agriculture, the established price for corn for a crop year 
        shall not exceed--
                    (A) for the 1996 crop of corn, $2.64 per bushel; 
                and
                    (B) for the 1997 through 2000 crops of corn, an 
                amount that is four percent less than the established 
                price for corn for the preceding crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of corn, the Secretary of Agriculture 
        shall not make deficiency payments available to producers of 
        corn or permit producers to repay a price support loan at a 
        rate below the original loan rate.
    (c) Oats.--
            (1) Reduction in target prices.--In the case of any price 
        support program for oats administered by the Secretary of 
        Agriculture, the established price for oats for a crop year 
        shall not exceed--
                    (A) for the 1996 crop of oats, $1.39 per bushel; 
                and
                    (B) for the 1997 through 2000 crops of oats, an 
                amount that is four percent less than the established 
                price for oats for the preceding crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of oats, the Secretary of Agriculture 
        shall not make deficiency payments available to producers of 
        oats or permit producers to repay a price support loan at a 
        rate below the original loan rate.
    (d) Grain Sorghums.--
            (1) Reduction in target prices.--In the case of any price 
        support program for grain sorghums administered by the 
        Secretary of Agriculture, the established price for grain 
        sorghums for a crop year shall not exceed--
                    (A) for the 1996 crop of grain sorghums, $2.51 per 
                bushel; and
                    (B) for the 1997 through 2000 crops of grain 
                sorghums, an amount that is four percent less than the 
                established price for grain sorghums for the preceding 
                crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of grain sorghums, the Secretary of 
        Agriculture shall not make deficiency payments available to 
        producers of grain sorghums or permit producers to repay a 
        price support loan at a rate below the original loan rate.
    (e) Barley.--
            (1) Reduction in target prices.--In the case of any price 
        support program for barley administered by the Secretary of 
        Agriculture, the established price for barley for a crop year 
        shall not exceed--
                    (A) for the 1996 crop of barley, $2.27 per bushel; 
                and
                    (B) for the 1997 through 2000 crops of barley, an 
                amount that is four percent less than the established 
                price for barley for the preceding crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of barley, the Secretary of 
        Agriculture shall not make deficiency payments available to 
        producers of barley or permit producers to repay a price 
        support loan at a rate below the original loan rate.
    (f) Rice.--
            (1) Reduction in target prices.--In the case of any price 
        support program for rice administered by the Secretary of 
        Agriculture, the established price for rice for a crop year 
        shall not exceed--
                    (A) for the 1996 crop of rice, $10.28 per 
                hundredweight; and
                    (B) for the 1997 through 2000 crops of rice, an 
                amount that is four percent less than the established 
                price for rice for the preceding crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of rice, the Secretary of Agriculture 
        shall not make deficiency payments available to producers of 
        rice or permit producers to repay a price support loan at a 
        rate below the original loan rate.
    (g) Upland Cotton.--
            (1) Reduction in target prices.--In the case of any price 
        support program for upland cotton administered by the Secretary 
        of Agriculture, the established price for upland cotton for a 
        crop year shall not exceed--
                    (A) for the 1996 crop of upland cotton, $0.70 per 
                hundredweight; and
                    (B) for the 1997 through 2000 crops of upland 
                cotton, an amount that is four percent less than the 
                established price for upland cotton for the preceding 
                crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of upland cotton, the Secretary of 
        Agriculture shall not make deficiency payments available to 
        producers of upland cotton or permit producers to repay a price 
        support loan at a rate below the original loan rate.
    (h) Extra Long Staple Cotton.--
            (1) Reduction in target prices.--In the case of any price 
        support program for extra long staple cotton administered by 
        the Secretary of Agriculture, the established price for extra 
        long staple cotton for a crop year shall not exceed--
                    (A) for the 1996 crop of extra long staple cotton, 
                $0.918 per hundredweight; and
                    (B) for the 1997 through 2000 crops of extra long 
                staple cotton, an amount that is four percent less than 
                the established price for extra long staple cotton for 
                the preceding crop year.
            (2) Termination of deficiency payment and marketing 
        loans.--Notwithstanding any other provision of law, for the 
        2001 and subsequent crops of extra long staple cotton, the 
        Secretary of Agriculture shall not make deficiency payments 
        available to producers of extra long staple cotton or permit 
        producers to repay a price support loan at a rate below the 
        original loan rate.
    (i) Future Repeal of Current Provisions Regarding Price Support.--
Effective October 1, 2000, the following provisions of the Agricultural 
Act of 1949, if still in effect on such date, are repealed:
            (1) Section 101 (7 U.S.C. 1441) regarding price support 
        levels generally.
            (2) Section 101B (7 U.S.C. 1441-2) regarding loans, 
        deficiency payments, and acreage reduction programs for rice.
            (3) Section 103(h) (7 U.S.C. 1444(h)) regarding loans, 
        deficiency payments, and acreage reduction programs for extra 
        long staple cotton.
            (4) Section 103B (7 U.S.C. 1444-2) regarding loans, 
        deficiency payments, and acreage reduction programs for upland 
        cotton.
            (5) Section 105B (7 U.S.C. 1444f) regarding loans, 
        deficiency payments, and acreage reduction programs for feed 
        grains.
            (6) Section 107B (7 U.S.C. 1445-3a) regarding loans, 
        deficiency payments, and acreage reduction programs for wheat.
            (7) Any similar provisions of law, enacted after the date 
        of the enactment of this Act, relating to loans, deficiency 
        payments, and acreage reduction programs for the crops referred 
        to in the preceding paragraphs.

SEC. 3. ABANDONMENT OF ACREAGE REDUCTION PROGRAMS AND 0/85 AND 50/85 
              PROGRAMS.

    (a) Abandonment.--The Agricultural Act of 1949 is amended by 
inserting after section 115 (7 U.S.C. 1445k) the following new section:

``SEC. 116. ABANDONMENT OF RELIANCE ON ACREAGE REDUCTION PROGRAMS AND 
              0/85 AND 50/85 PROGRAMS AFTER THE 1998 CROP YEAR.

    ``(a) Zero Percentage ARP.--Beginning with the 1999 crops of rice, 
cotton, feed grains, and wheat, in operating any acreage reduction 
program on the production of such crops, the Secretary shall impose a 
uniform percentage reduction of zero percent to the applicable crop 
acreage base.
    ``(b) Effect on 0/85 and 50/85 Programs.--Because operation of the 
0/85 and 50/85 programs for rice, cotton, feed grains, and wheat for a 
crop year are conditioned on implementation of an acreage reduction 
program for that crop year, the Secretary shall not conduct 0/85 and 
50/85 programs for such crops after the 1998 crop year.
    ``(c) Definitions.--For purposes of this section:
            ``(1) The term `feed grains' means corn, oats, grain 
        sorghums, and barley.
            ``(2) The term `acreage reduction program' means a program 
        to reduce the crop acreage base for rice, cotton, feed grains, 
        or wheat by an announced acreage reduction requirement, in the 
        manner provided by--
                    ``(A) section 107B(e) of this Act, in the case of 
                wheat;
                    ``(B) section 105B(e) of this Act, in the case of 
                feed grains;
                    ``(C) section 103(h) of this Act, in the case of 
                extra long staple cotton;
                    ``(D) section 103B(e) of this Act, in the case of 
                upland cotton; and
                    ``(E) section 101B(e) of this Act, in the case of 
                rice.
            ``(3) The term `0/85 and 50/85 programs' means a program 
        that authorizes deficiency payments on a certain percentage of 
        the maximum payment acres of a program crop even though the 
        crop is not actually planted on such acres, in the manner 
        provided by--
                    ``(A) section 107B(c)(1)(E) of this Act, in the 
                case of wheat;
                    ``(B) section 105B(c)(1)(E) of this Act, in the 
                case of feed grains;
                    ``(C) section 103B(c)(1)(D) of this Act, in the 
                case of upland cotton; and
                    ``(D) section 101B(c)(1)(D) of this Act, in the 
                case of rice.''.
    (b) Preservation of Flex Acre Planting Flexibility.--Beginning with 
the 1999 crops of rice, cotton, feed grains, and wheat, the Secretary 
of Agriculture may not impose any restriction on the types of crops a 
producer may plant on that percentage of the producer's crop acreage 
base that is excluded from payment acres and ineligible for target 
price deficiency payments.

SEC. 4. INCOME LIMITATIONS ON PARTICIPATION IN COMMODITY PRICE SUPPORT 
              PROGRAMS.

    (a) Income Limitations on Participation.--Section 1001 of the Food 
Security Act of 1985 (7 U.S.C. 1308) is amended by adding at the end 
the following new paragraph:
    ``(8) Adjusted gross income limitation.--
            ``(A) Limitation.--Subject to subparagraph (B), a person 
        who has an adjusted gross income, as defined in section 62 of 
        the Internal Revenue Code of 1986 (26 U.S.C. 62), of more than 
        $100,000 annually shall not be eligible to receive deficiency 
        payments and land diversion payments described in paragraph (1) 
        or other payments described in paragraph (2)(B).
            ``(B) Exclusion of certain revenue.--Revenues from the 
        farming, ranching, and forestry operations of a person shall be 
        excluded from the calculation of the person's adjusted gross 
        income under subparagraph (A).''.
    (b) Application.--The amendment made by subsection (a) shall apply 
to crop years beginning after the date of the enactment of this Act.

SEC. 5. REDUCTION IN TOTAL AMOUNT OF AUTHORIZED DEFICIENCY PAYMENTS AND 
              ACREAGE DIVERSION PAYMENTS.

    (a) $10,000 Reduction.--Section 1001(1)(A) of the Food Security Act 
of 1985 (7 U.S.C. 1308) is amended by striking ``$50,000'' and 
inserting ``$40,000''.
    (b) Application.--The amendment made by subsection (a) shall apply 
to crop years beginning after the date of the enactment of this Act.

SEC. 6. BUDGETARY LIMITATIONS ON OUTLAYS FOR DEFICIENCY PAYMENTS FOR 
              WHEAT, FEED, GRAINS, RICE, AND COTTON.

    (a) Limitation.--The total Commodity Credit Corporation outlays for 
deficiency payments for wheat, feed, grains, rice and cotton for the 
crop year 1996 through 2000 may not exceed--
            (1) for fiscal year 1996, 88 percent of the projected 
        Congressional Budget Office baseline of $6,556,000,000;
            (2) for fiscal year 1997, 70 percent of the projected 
        Congressional Budget Office baseline of $6,525,000,000;
            (3) for fiscal year 1998, 53 percent of the projected 
        Congressional Budget Office baseline of $6,936,000,000;
            (4) for fiscal year 1999, 40 percent of the projected 
        Congressional Budget Office baseline of $6,921,000,000;
            (5) for fiscal year 2000, 23 percent of the projected 
        Congressional Budget Office baseline of $6,671,000,000;
    (b) Proration of Payments.--In any crop year before deficiency 
payments are terminated under section 2, if the total Commodity Credit 
Corporation obligations for such payments are projected to exceed the 
applicable spending limit specified in subsection (a), the Secretary of 
Agriculture shall prorate deficiency payments to recipients to meet 
such spending limit.

SEC. 7. SENSE OF CONGRESS REGARDING INCLUSION OF AGRICULTURAL 
              COMMODITIES AND PRODUCTS IN TRADE EMBARGOES.

    It is the sense of Congress that trade embargoes, which include 
agricultural commodities and products produced in the United States 
among the prohibited items, should not used as a tool of United States 
foreign policy unless the embargo is directed against a country, the 
government of which the Secretary of State has determined, for purposes 
of section 6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. 
App. 2405(6)(j)(1)), has repeatedly provided support for acts of 
international terrorism.

SEC. 8. REPORT ON FEASIBILITY OF PRIVATE REVENUE INSURANCE.

    Not later than six months after the date of the enactment of this 
Act, the Secretary of Agriculture shall submit to Congress a report 
evaluating the feasibility of using revenue insurance for agricultural 
producers provided through the private sector as an alternative to the 
continued use of price support loans, deficiency payments, and other 
methods to provide income support to producers.
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