[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2195 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2195

  To establish limits on Commodity Credit Corporation farm and export 
expenditures for the 1996 through 2002 crop years, to authorize the use 
    of market transition contracts to support farming certainty and 
  flexibility and ensure continued compliance with farm conservation 
 compliance plans and wetland protection, to make marketing assistance 
loans available for certain crops, to establish a commission to examine 
     the future of production agriculture, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 4, 1995

  Mr. Roberts (for himself, Mr. Barrett of Nebraska, Mr. Boehner, Mr. 
 Hostettler, and Mr. Smith of Michigan) introduced the following bill; 
           which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
  To establish limits on Commodity Credit Corporation farm and export 
expenditures for the 1996 through 2002 crop years, to authorize the use 
    of market transition contracts to support farming certainty and 
  flexibility and ensure continued compliance with farm conservation 
 compliance plans and wetland protection, to make marketing assistance 
loans available for certain crops, to establish a commission to examine 
     the future of production agriculture, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Freedom to Farm 
Act of 1995''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--COMMODITY CREDIT CORPORATION FARM EXPENDITURES

Sec. 101. Total and annual limits on Commodity Credit Corporation farm 
                            and export expenditures for 1996 through 
                            2002 crop years.
 TITLE II--ACTIVITIES IN SUPPORT OF FARMING UNDER AGRICULTURAL ACT OF 
                                  1949

Sec. 201. Seven-year contracts to improve farming certainty and 
                            flexibility.
Sec. 202. Availability of nonrecourse marketing assistance loans for 
                            wheat, feed grains, cotton, rice, and 
                            oilseeds.
Sec. 203. Reform of payment limitation provisions of Food Security Act 
                            of 1985.
      TITLE III--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

Sec. 301. Establishment.
Sec. 302. Composition.
Sec. 303. Comprehensive review of past and future of production 
                            agriculture.
Sec. 304. Reports.
Sec. 305. Powers.
Sec. 306. Commission procedures.
Sec. 307. Personnel matters.
Sec. 308. Termination of Commission.
   TITLE IV--SUSPENSION OF CERTAIN PROVISIONS REGARDING PROGRAM CROPS

Sec. 401. Wheat.
Sec. 402. Feed grains.
Sec. 403. Cotton.
        TITLE I--COMMODITY CREDIT CORPORATION FARM EXPENDITURES

SEC. 101. TOTAL AND ANNUAL LIMITS ON COMMODITY CREDIT CORPORATION FARM 
              AND EXPORT EXPENDITURES FOR 1996 THROUGH 2002 CROP YEARS.

    Section 102 of the Agricultural Act of 1949 (7 U.S.C. 1443), which 
is obsolete, is amended to read as follows:

``SEC. 102. TOTAL AND ANNUAL LIMITS ON COMMODITY CREDIT CORPORATION 
              FARM AND EXPORT EXPENDITURES FOR 1996 THROUGH 2002 CROP 
              YEARS.

    ``(a) Farm Programs Defined.--For purposes of this section, the 
term `farm programs' means the following programs and activities funded 
through the Commodity Credit Corporation:
            ``(1) Market transition contracts under section 102A.
            ``(2) Marketing assistance loans for wheat, feed grains, 
        upland cotton, extra long staple cotton, rice, and oilseeds 
        under section 102B.
            ``(3) Price support activities conducted under this Act for 
        milk, peanuts, sugar, and other agricultural commodities.
    ``(b) Total Expenditures.--Total Commodity Credit Corporation 
expenditures in support of farm programs and export programs for the 
1996 through 2002 crop years may not exceed $43,200,000,000.
    ``(c) Total Expenditures per Crop Year.--Beginning in fiscal year 
1996, the Secretary shall expend, to the maximum extent practicable, on 
a fiscal year basis the following amounts in support of farm programs 
and export programs:
            ``(1) For the 1996 crop year, $7,600,000,000.
            ``(2) For the 1997 crop year, $6,670,000,000.
            ``(3) For the 1998 crop year, $6,520,000,000.
            ``(4) For the 1999 crop year, $6,300,000,000.
            ``(5) For the 2000 crop year, $6,070,000,000.
            ``(6) For the 2001 crop year, $5,060,000,000.
            ``(7) For the 2002 crop year, $4,960,000,000.''.

 TITLE II--ACTIVITIES IN SUPPORT OF FARMING UNDER AGRICULTURAL ACT OF 
                                  1949
SEC. 201. SEVEN-YEAR CONTRACTS TO IMPROVE FARMING CERTAINTY AND 
              FLEXIBILITY.

    (a) Contracts Authorized.--The Agricultural Act of 1949 is amended 
by inserting after section 102 (7 U.S.C. 1443), as amended by section 
101 of this Act, the following new section:
``SEC. 102A. SEVEN-YEAR MARKET TRANSITION CONTRACTS.

    ``(a) Contracts Authorized.--
            ``(1) Offer and main terms.--Beginning as soon as possible 
        after the date of the enactment of this section, the Secretary 
        shall offer to enter into a market transition contract with 
        willing producers on a farm containing eligible farmland. Under 
        the terms of a market transition contract, the producers shall 
        agree, in exchange for annual payments under the contract, to 
        comply with the conservation compliance plan for the farm 
        prepared in accordance with section 1212 of the Food Security 
        Act of 1985 (16 U.S.C. 3812) and wetland protection 
        requirements applicable to the farm under subtitle C of title 
        XII of such Act (16 U.S.C. 3821 et seq.).
            ``(2) Time for contracting.--
                    ``(A) Deadline.--Except as provided in subparagraph 
                (B), the Secretary may not enter into a market 
                transition contract after April 15, 1996.
                    ``(B) Special rule for conservation reserve 
                lands.--The producers on a farm covered by a 
                conservation reserve contract under section 1231 of the 
                Food Security Act of 1985 (16 U.S.C. 3831) expiring 
                after April 15, 1996, may enter into or expand a market 
                transition contract, within 90 days after the 
                expiration of the conservation reserve contract, to 
                cover the eligible farmland that was subject to the 
                conservation reserve contract.
            ``(3) Duration of contract.--The term of each market 
        transition contract shall--
                    ``(A) begin with the 1996 crop year, or the crop 
                year in which the contract is entered into in the case 
                of a contract entered into after April 15, 1996; and
                    ``(B) extend through the 2002 crop year.
            ``(4) Estimation of payments.--At the time the Secretary 
        enters into a market transition contract, the Secretary shall 
        provide an estimate of the minimum payments anticipated to be 
        made under the contract for at least the first crop year 
        covered by the contract. If the actual payment under the 
        contract for the first year is more than five percent less than 
        the estimated payment, the producer may terminate the contract 
        without penalty.
    ``(b) Eligible Farmland Described.--Land shall be considered to be 
farmland eligible for coverage under a market transition contract only 
if the land has crop acreage base attributable to the land and--
            ``(1) for at least three of the 1991 through 1995 crop 
        years, served as the basis for deficiency payments for rice, 
        upland cotton, feed grains, or wheat under section 101B, 103B, 
        105B, or 107B or was included in the cropland affected by the 
        15 percent reduction in payment acres required under these 
        sections;
            ``(2) was subject to a conservation reserve contract under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
        whose term expired on or after January 1, 1995; or
            ``(3) is released from coverage under a conservation 
        reserve contract, either through buy out of the contract or at 
        the discretion of the Secretary, during the period beginning on 
        January 1, 1995, and ending on April 15, 1996.
    ``(c) Time for Payment.--Payments under a market transition 
contract shall be made not later than October 15 of each year covered 
by the contract, except that, in the case of payments for crop years 
1997 through 2002, half of the annual payment may be provided in 
advance not later than March 15 of the same year at the option of the 
producer.
    ``(d) Determination of Total Amounts Available for Payments.--
            ``(1) Contract commodity defined.--For purposes of this 
        subsection and subsection (e), the term `contract commodity' 
        means rice, upland cotton, feed grains, or wheat.
            ``(2) Historic expenditure levels.--
                    ``(A) In general.--For each contract commodity, the 
                Secretary shall calculate the total expenditures that 
                were made for the 1991 through 1995 crops of that 
                contract commodity under section 101B, 103B, 105B, or 
                107B, including expenditures in the form of deficiency 
                payments, loan deficiency payments and gains realized 
                from repaying loans at a level less than the original 
                level, and marketing certificates.
                    ``(B) Special rule for 1996.--For purposes of 
                applying paragraph (1) for the 1996 crop year, the 
                Secretary may use an estimate of expenditures under 
                section 101B, 103B, 105B, or 107B for the 1995 crop of 
                each contract commodity. The Secretary shall base such 
                estimate on information contained in the President's 
                budget for fiscal year 1997 submitted to the Congress 
                under section 1105 of title 31, United States Code.
            ``(3) Amounts available for 1996 through 2002 crop years.--
        The amount available for a crop year for payments with respect 
        to crop acreage base of a contract commodity included in market 
        transition contracts shall be equal to the product of--
                    ``(A) the ratio of the amount calculated under 
                paragraph (2) for that contract commodity to the total 
                amount calculated for all contract commodities under 
                such paragraph; and
                    ``(B) the portion of the amount specified in 
                section 102(c) that is available for expenditure for 
                that crop year in support of market transition 
                contracts in effect for that crop year.
    ``(e) Determination of Payments Under Particular Contract.--
            ``(1) Individual production of contract commodities.--For 
        each market transition contract, the amount of production of a 
        contract commodity covered by the contract shall be equal to 
        the product of--
                    ``(A) the crop acreage base of that contract 
                commodity attributable to the eligible farmland subject 
                to the contract; and
                    ``(B) the farm program payment yield in effect for 
                the 1995 crop of that contract commodity for the farm 
                containing that eligible farmland.
            ``(2) Annual total production of contract commodities.--For 
        each of the 1996 through 2002 crop years, the total production 
        of each contract commodity covered by all market transition 
        contracts shall be equal to the sum of the amounts calculated 
        under paragraph (1) for each individual market transition 
        contract in effect for that crop year.
            ``(3) Annual payment rate.--The payment rate for a contract 
        commodity for a crop year shall be equal to--
                    ``(A) the amount made available under subsection 
                (d)(3) for that contract commodity for that crop year; 
                divided by
                    ``(B) the amount determined under paragraph (2) for 
                that crop year.
            ``(4) Annual payment amount.--For each of the 1996 through 
        2002 crop years, the amount to be paid under a particular 
        market transition contract for a crop year with respect to a 
        contract commodity shall be equal to the product of--
                    ``(A) the amount determined under paragraph (1) for 
                that contract for that contract commodity; and
                    ``(B) the payment rate in effect under paragraph 
                (3) for that crop year for that contract commodity.
    ``(f) Limitation on Total Amount of Payment.--The total amount of 
payments made to a person under a market transition contract for any 
year may not exceed $50,000. The Secretary shall issue regulations 
defining the term `person' as used in this subsection, which shall 
conform, to the extent practicable, to the regulations defining the 
term `person' issued under section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308). In the case of payments under a market transition 
contract provided to corporations and other persons described in 
paragraph (5)(B)(i)(II) of such section, the Secretary shall comply 
with the attribution requirements specified in paragraph (5)(C) of such 
section.
    ``(g) Effect of Violation.--
            ``(1) Termination of contract.--If the Secretary determines 
        that a producer on a farm containing eligible farmland subject 
        to a market transition contract is in violation, or has 
        violated, the conservation compliance plan for the farm 
        containing the eligible farmland or wetland protection 
        requirements applicable to the farm, the Secretary may 
        terminate the market transition contract with respect to that 
        producer. Upon such termination, the producer shall forfeit all 
        rights to receive future payments under the contract and shall 
        refund to the Secretary all payments under the contract 
        received by the producer during the period of the violation, 
        together with interest thereon as determined by the Secretary.
            ``(2) Refund or adjustment.--If the Secretary determines 
        that a violation of a market transition contract does not 
        warrant termination of the contract under paragraph (1), the 
        Secretary may require the producer--
                    ``(A) to refund to the Secretary that part of the 
                payments received by the producer during the period of 
                the violation, together with interest thereon as 
                determined by the Secretary; or
                    ``(B) to accept an adjustment in the amount of 
                future payments otherwise required under the contract.
            ``(3) Foreclosure.--A producer who is a party to a market 
        transition contract may not be required to make repayments to 
        the Secretary of amounts received under the contract if the 
        eligible farm land that is subject to the contract has been 
        foreclosed upon and the Secretary determines that forgiving 
        such repayments is appropriate in order to provide fair and 
        equitable treatment. This paragraph shall not void the 
        responsibilities of such a producer under the contract if the 
        producer continues or resumes operations or to exercise control 
        over the property that is subject to the contract within the 
        period specified in the contract. Upon the resumption of 
        operation or control over the property by the producer, the 
        provisions of the contract in effect on the date of the 
        foreclosure shall apply.
            ``(4) Review.--A determination of the Secretary under this 
        subsection shall be considered to be an adverse decision for 
        purposes of the availability of review of the determination by 
        the National Appeals Division under subtitle H of title II of 
        the Federal Crop Insurance Reform and Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6991 et seq.).
    ``(h) Transfer of Interest in Lands Subject to Contract.--
            ``(1) Effect of transfer.--Except as provided in paragraph 
        (2), the transfer of the right and interest of a producer in 
        eligible farmland subject to a market transition contract shall 
        result in the termination of the contract with respect to that 
        farmland, effective on the date of the transfer, unless the 
        transferee of the land agrees with the Secretary to assume all 
        obligations of the contract. At the request of the transferee, 
        the Secretary may modify the contract if the modifications are 
        consistent with the objectives of this section as determined by 
        the Secretary.
            ``(2) Exception.--If a producer who is entitled to a 
        payment under a market transition contract dies, becomes 
        incompetent, or is otherwise unable to receive such payment, 
        the Secretary shall make such payment, in accordance with 
        regulations prescribed by the Secretary and without regard to 
        any other provision of law, in such manner as the Secretary 
        determines is fair and reasonable in light of all of the 
        circumstances.
    ``(i) Planting Flexibility.--
            ``(1) Permitted crops.--In the case of acreage on a farm 
        that serves as the basis for payments under a market transition 
        contract, producers on the farm may plant for harvest on the 
        acreage--
                    ``(A) rice, upland cotton, feed grains, and wheat;
                    ``(B) any oilseed;
                    ``(C) any industrial or experimental crop 
                designated by the Secretary;
                    ``(D) any other crop, except any fruit or vegetable 
                crop (including potatoes and dry edible beans) unless 
                such fruit or vegetable crop is designated by the 
                Secretary as--
                            ``(i) an industrial or experimental crop; 
                        or
                            ``(ii) a crop for which no substantial 
                        domestic production or market exists; and
                    ``(E) mung beans.
            ``(2) Notification.--With regard to commodities that may be 
        planted pursuant to this subsection, the Secretary shall make a 
        determination in each crop year of the commodities that may not 
        be planted pursuant to this subsection and shall make available 
        a list of the commodities.
            ``(3) Conservation uses.--In lieu of planting any crop 
        specified in paragraph (1), the producers on a farm may devote 
        to conservation uses all or part of the eligible farmland 
        subject to a market transition contract, in accordance with 
        regulations issued by the Secretary.''.
    (b) Conforming Amendments.--
            (1) Wheat 0/85 program.--Section 107B(c)(1)(E) of the 
        Agricultural Act of 1949 (7 U.S.C. 1445b-3a(c)(1)(E)) is 
        amended by striking ``through 1997'' in clauses (i) and (vii) 
        each place it appears and inserting ``and 1995''.
            (2) Feed grains 0/85 program.--Section 105B(c)(1)(E) of 
        such Act (7 U.S.C. 1444f(c)(1)(E)) is amended by striking 
        ``through 1997'' in clauses (i) and (vii) each place it appears 
        and inserting ``and 1995''.
            (3) Cotton program.--Section 103B of such Act (7 U.S.C. 
        1444-2) is amended--
                    (A) in the section heading, by striking ``1997'' 
                and inserting ``1995'';
                    (B) in subsections (a)(1), (b)(1), (c)(1)(A), 
                (c)(1)(B)(ii), and (o), by striking ``1997'' each place 
                it appears and inserting ``1995'';
                    (C) in subsections (c)(1)(D)(i) and 
                (c)(1)(D)(v)(II) by striking ``through 1997'' each 
                place it appears and inserting ``and 1995'';
                    (D) in the heading of subsection (c)(1)(D)(v)(II), 
                by striking ``through 1997 crops'' and inserting ``and 
                1995 crops'';
                    (E) in subsection (e)(1)(D), by striking ``29\1/2\ 
                percent for each of the 1995 and 1996 crops, and 29 
                percent for the 1997 crop'' and inserting ``and 29\1/2\ 
                percent for the 1995 crop''; and
                    (F) in subparagraphs (B)(i), (D)(i), (E)(i), and 
                (F)(i) of subsection (a)(5), by striking ``1998'' each 
                place it appears and inserting ``1996''.
            (4) Rice 50/85 program.--Section 101B of such Act (7 U.S.C. 
        1441-2) is amended--
                    (A) in subsections (c)(1)(D)(i) and 
                (c)(1)(D)(v)(II), by striking ``through 1997'' each 
                place it appears and inserting ``and 1995''; and
                    (B) in the heading of subsection (c)(1)(D)(v)(II), 
                by striking ``through 1997 crops'' and inserting ``and 
                1995 crops''.
            (5) Crop acreage base.--Section 509 of such Act (7 U.S.C. 
        1469) is amended by striking ``effective only for the 1991 
        through 1997 program crops'' and inserting ``effective only 
        until January 1, 1996''.
SEC. 202. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              WHEAT, FEED GRAINS, COTTON, RICE, AND OILSEEDS.

    (a) Nonrecourse Loans Available.--The Agricultural Act of 1949 is 
amended by inserting after section 102A, as added by section 201 of 
this Act, the following new section:

``SEC. 102B. NONRECOURSE MARKETING ASSISTANCE LOANS FOR CERTAIN CROPS.

    ``(a) Nonrecourse Loans Available.--For each of the 1996 through 
2002 crops of wheat, feed grains, upland cotton, extra long staple 
cotton, rice, and oilseeds, the Secretary shall make available to 
eligible producers on a farm nonrecourse marketing assistance loans 
under terms and conditions that are prescribed by the Secretary and at 
a loan rate calculated under subsection (b). A marketing assistance 
loan shall have a term of nine months beginning on the first day of the 
first month after the month in which the loan is made. The Secretary 
may not extend the term of a marketing assistance loan.
    ``(b) Announcement of Loan Rate.--The Secretary shall announce the 
loan rate for each commodity specified in subsection (a) not later than 
the start of the marketing year of the commodity for which the loan 
rate is to be in effect.
    ``(c) Calculation of Loan Rate.--
            ``(1) Calculation.--Subject to adjustment under paragraph 
        (2), the loan rate for marketing assistance loans under 
        subsection (a) for a particular commodity specified in such 
        subsection shall be equal to 70 percent of the simple average 
        price received by producers of that commodity during the 
        marketing years for the immediately preceding five crops of 
        that commodity.
            ``(2) Required budgetary adjustments.--If the Secretary 
        estimates for one of the marketing years for the 1996 through 
        2002 crops of a particular commodity specified in subsection 
        (a) that the average price to be received by producers of that 
        commodity is likely to be less that the loan rate calculated 
        under paragraph (1) for that marketing year, the Secretary 
        shall reduce the loan rate for that commodity for that 
        marketing year by an amount sufficient to enable the Secretary 
        to provide marketing assistance loans at no net cost to the 
        Federal Government by preventing the accumulation of that 
        commodity by the Commodity Credit Corporation through loan 
        forfeitures.
            ``(3) Simple average price.--The Secretary shall be 
        responsible for determining the simple average price received 
        by producers of a commodity specified in subsection (a). In 
        determining the simple average price a commodity for a five-
        year period, the Secretary shall exclude the year in which the 
        average price was the highest and the year in which the average 
        price was the lowest during the period.
    ``(d) Adjustments for Grade, Type, Quality, Location, and Other 
Factors.--The Secretary may make such adjustments in the announced loan 
rate for a commodity specified in subsection (a) as the Secretary 
considers appropriate to reflect differences in grade, type, quality, 
location, and other factors.
    ``(e) Producers Eligible for Loans.--Only the following producers 
shall be eligible for a marketing assistance loan under this section:
            ``(1) In the case of a marketing assistance loan for a crop 
        of wheat, feed grains (other than rye), upland cotton, extra 
        long staple cotton, or rice, a producer whose land on which the 
        crop is raised is subject to a market transition contract under 
        section 102A.
            ``(2) In the case of a marketing assistance loan for a crop 
        of rye or oilseeds, any producer.
    ``(f) Definitions.--For purposes of this section:
            ``(1) The term `feed grains' means corn, grain sorghums, 
        barley, oats, and rye.
            ``(2) The term `oilseeds' means soybeans, sunflower seed, 
        rapeseed, canola, safflower, flaxseed, mustard seed, and, if 
        designated by the Secretary, other oilseeds.''.
    (b) Repeal of Farmer Owned Reserve Program.--Section 110 of the 
Agricultural Act of 1949 (7 U.S.C. 1445e) is repealed. The repeal of 
such section shall not affect the validity or terms and conditions of 
any extended price support loan provided under such section before the 
date of the enactment of this Act.
    (c) Repeal of Current Adjustment Authority.--Section 403 of the 
Agricultural Act of 1949 (7 U.S.C. 1423) is repealed.
SEC. 203. REFORM OF PAYMENT LIMITATION PROVISIONS OF FOOD SECURITY ACT 
              OF 1985.

    (a) Attribution of Payments Made to Corporations and Other 
Entities.--Section 1001(5)(C) of the Food Security Act of 1985 (7 
U.S.C. 1308(5)(C)) is amended to read as follows:
    ``(C)(i) In the case of payments to corporations and other entities 
described in subparagraph (B)(i)(II), the Secretary shall attribute 
payments to individuals in proportion to their ownership interests in 
the corporation or entity receiving the payment or in any other 
corporation or entity that has a substantial beneficial interest in the 
corporation or entity actually receiving the payment. This subparagraph 
shall apply to individuals who hold or acquire, directly or through 
another corporation or entity, a substantial beneficial interest in the 
corporation or entity actually receiving the payment.''.
    ``(ii) In the case of payments to corporations and other entities 
described in subparagraph (B)(i)(II), the Secretary shall also 
attribute payments to any State (or political subdivision or agency 
thereof) or other corporation or entity that has a substantial 
beneficial interest in the corporation or entity actually receiving the 
payment in proportion to their ownership interests in the corporation 
or entity receiving the payment. This subparagraph shall apply even if 
the payments are also attributable to individuals under clause (i).
    ``(iii) For purposes of this subparagraph, the term `substantial 
beneficial interest' means not less than five percent of all beneficial 
interests in the corporation or entity actually receiving the payment, 
except that the Secretary may set a lower percentage in order to ensure 
that the provisions of this section and the scheme or device provisions 
in section 1001B are not circumvented.''.
    (b) Tracking Payments Using Social Security and Employer 
Identification Numbers.--Section 1001(5)(A) of the Food Security Act of 
1985 (7 U.S.C. 1308(5)(A)) is amended--
            (1) by striking ``and'' at the end of subparagraph (i);
            (2) by redesignating subparagraph (ii) as subparagraph 
        (iv); and
            (3) by inserting after subparagraph (i) the following new 
        subparagraphs:
            ``(ii) providing for the tracking of payments made or 
        attributed to an individual on the basis of the social security 
        account number of the individual;
            ``(iii) providing for the tracking of payments made or 
        attributed to a corporation or other entity described in 
        subclause (II) or (III) of subparagraph (B)(i) on the basis of 
        the employer identification number of the corporation or other 
        entity; and''.
      TITLE III--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

SEC. 301. ESTABLISHMENT.

    There is hereby established a commission to be known as the 
``Commission on 21st Century Production Agriculture'' (hereinafter in 
this title referred to as the ``Commission'').
SEC. 302. COMPOSITION.

    (a) Appointment.--The Commission shall be composed of 11 members, 
appointed as follows:
            (1) Three members shall be appointed by the President.
            (2) Four members shall be appointed by the Chairman of the 
        Committee on Agriculture of the House of Representatives in 
        consultation with the ranking minority member of the Committee.
            (3) Four members shall be appointed by the Chairman of the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        in consultation with the ranking minority member of the 
        Committee.
    (b) Qualifications.--The members of the Commission shall be 
appointed from among persons having knowledge and experience in 
agricultural production, marketing, finance, or trade.
    (c) Term of Members; Vacancies.--Members of the Commission shall be 
appointed for the life of the Commission. A vacancy on the Commission 
shall not affect its powers, but shall be filled in the same manner as 
the original appointment was made.
    (d) Time for Appointment; First Meeting.--The members of the 
Commission shall be appointed not later than October 1, 1997. The 
Commission shall convene its first meeting to carry out its duties 
under this title 30 days after six members of the Commission have been 
appointed.
    (e) Chairman.--The chairman of the Commission shall be designated 
jointly by the Chairman of the Committee on Agriculture of the House of 
Representatives and the Chairman of the Committee on Agriculture, 
Nutrition, and Forestry of the Senate from among the members of the 
Commission.

SEC. 303. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION 
              AGRICULTURE.

    (a) Initial Review.--The Commission shall conduct a comprehensive 
review of changes in the condition of production agriculture in the 
United States since the date of the enactment of this Act and the 
extent to which such changes are the result of the amendments made by 
this Act. The review shall include the following:
            (1) An assessment of the initial success of market 
        transition contracts under section 102A of the Agricultural Act 
        of 1949 in supporting the economic viability of farming in the 
        United States.
            (2) An assessment of the food security situation in the 
        United States in the areas of trade, consumer prices, 
        international competitiveness of United States production 
        agriculture, food supplies, and humanitarian relief.
            (3) An assessment of the changes in farm land values and 
        agricultural producer incomes since the date of the enactment 
        of this Act.
            (4) An assessment of the extent to which regulatory relief 
        for agricultural producers has been enacted and implemented, 
        including the application of cost/benefit principles in the 
        issuance of agricultural regulations.
            (5) An assessment of the extent to which tax relief for 
        agricultural producers has been enacted in the form of capital 
        gains tax reductions, estate tax exemptions, and mechanisms to 
        average tax loads over high and low income years.
            (6) An assessment of the effect of any Government 
        interference in agricultural export markets, such as the 
        imposition of trade embargoes, and the degree of implementation 
        and success of international trade agreements.
    (b) Subsequent Review.--The Commission shall conduct a 
comprehensive review of the future of production agriculture in the 
United States and the appropriate role of the Federal Government in 
support of production agriculture. The review shall include the 
following:
            (1) An assessment of changes in the condition of production 
        agriculture in the United States since the initial review 
        conducted under subsection (a).
            (2) Identification of the appropriate future relationship 
        of the Federal Government with production agriculture after 
        2002.
            (3) An assessment of the manpower and infrastructure 
        requirements of the Department of Agriculture necessary to 
        support the future relationship of the Federal Government with 
        production agriculture.
    (c) Recommendations.--In carrying out the subsequent review under 
subsection (b), the Commission shall develop specific recommendations 
for legislation to achieve the appropriate future relationship of the 
Federal Government with production agriculture identified under 
subsection (a)(2).

SEC. 304. REPORTS.

    (a) Report on Initial Review.--Not later than January 1, 1999, the 
Commission shall submit to the President, the Committee on Agriculture 
of the House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report containing the results 
of the initial review conducted under section 303(a).
    (a) Report on Subsequent Review.--Not later than January 1, 2001, 
the Commission shall submit to the President and the congressional 
committees specified in subsection (a) a report containing the results 
of the subsequent review conducted under section 303(b).

SEC. 305. POWERS.

    (a) Hearings.--The Commission may, for the purpose of carrying out 
this title, conduct such hearings, sit and act at such times, take such 
testimony, and receive such evidence, as the Commission considers 
appropriate.
    (b) Assistance From Other Agencies.--The Commission may secure 
directly from any department or agency of the Federal Government such 
information, relevant to its duties under this title, as may be 
necessary to carry out such duties. Upon request of the chairman of the 
Commission, the head of the department or agency shall, to the extent 
permitted by law, furnish such information to the Commission.
    (c) Mail.--The Commission may use the United States mails in the 
same manner and under the same conditions as the departments and 
agencies of the Federal Government.
    (d) Assistance From Secretary.--The Secretary of Agriculture shall 
provide to the Commission appropriate
 office space and such reasonable administrative and support services 
as the Commission may request.

SEC. 306. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet on a regular basis (as 
determined by the chairman) and at the call of the chairman or a 
majority of its members.
    (b) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.

SEC. 307. PERSONNEL MATTERS.

    (a) Compensation.--Each member of the Commission shall serve 
without compensation, but shall be allowed travel expenses including 
per diem in lieu of subsistence, as authorized by section 5703 of title 
5, United States Code, when engaged in the performance of Commission 
duties.
    (b) Staff.--The Commission shall appoint a staff director, who 
shall be paid at a rate not to exceed the maximum rate of basic pay 
under section 5376 of title 5, United States Code, and such 
professional and clerical personnel as may be reasonable and necessary 
to enable the Commission to carry out its duties under this title 
without regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and without regard 
to the provisions of chapter 51 and subchapter III of chapter 53 of 
such title, or any other provision of law, relating to the number, 
classification, and General Schedule rates. No employee appointed under 
this subsection (other than the staff director) may be compensated at a 
rate to exceed the maximum rate applicable to level 15 of the General 
Schedule.
    (c) Detailed Personnel.--Upon request of the chairman of the 
Commission, the head of any department or agency of the Federal 
Government is authorized to detail, without reimbursement, any 
personnel of such department or agency to the Commission to assist the 
Commission in carrying out its duties under this section. The detail of 
any such personnel may not result in the interruption or loss of civil 
service status or privilege of such personnel.

SEC. 308. TERMINATION OF COMMISSION.

    The Commission shall terminate upon submission of the final report 
required by section 304.

   TITLE IV--SUSPENSION OF CERTAIN PROVISIONS REGARDING PROGRAM CROPS

SEC. 401. WHEAT.

    (a) Nonapplicability of Certificate Requirements.--Sections 379d 
through 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1379d-1379j) (relating to marketing certificate requirements for 
processors and exporters) shall not be applicable to wheat processors 
or exporters during the period June 1, 1996, through May 31, 2003.
    (b) Suspension of Land Use, Wheat Marketing Allocation, and 
Producer Certificate Provisions.--Sections 331 through 339, 379b, and 
379c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 
1339, 1379b, and 1379c) shall not be applicable to the 1996 through 
2002 crops of wheat.
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340) shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 1996 
through 2002.
    (d) Nonapplicability of Section 107 Program.--Section 107 of the 
Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be applicable to 
the 1996 through 2002 crops of wheat.

SEC. 402. FEED GRAINS.

    Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall 
not be applicable to the 1996 through 2002 crops of feed grains.

SEC. 403. COTTON.

    (a) Suspension of Base Acreage Allotments, Marketing Quotas, and 
Related Provisions.--Sections 342, 343, 344, 345, 346, and 377 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall 
not be applicable to any of the 1996 through 2002 crops of upland 
cotton.
    (b) Nonapplicability of Section 103 Program.--Section 103(a) of the 
Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be applicable to 
the 1996 through 2002 crops of upland cotton.
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