[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2330 Introduced in House (IH)]
1st Session
H. R. 2330
To amend the Agricultural Act of 1949 to extend the agricultural price
support programs for certain commodities through 2002 and to modify the
operation of such programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 14, 1995
Mr. Emerson (for himself, Mr. Combest, Mr. Baker of Louisiana, Mr.
Livingston, Mr. Tauzin, Mr. McCrery, Mr. Laughlin, Mr. Chambliss, Mr.
Parker, Mr. Everett, Mr. Wicker, Mr. Thornberry, Mr. Hayes, Mr. Taylor
of Mississippi, and Mr. Dickey) introduced the following bill; which
was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Agricultural Act of 1949 to extend the agricultural price
support programs for certain commodities through 2002 and to modify the
operation of such programs, 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 ``Agricultural
Competitiveness Act of 1995''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress regarding regulatory and tax relief for
agricultural producers and role of farm
programs in ending the federal deficit.
TITLE I--EXTENSION OF CERTAIN COMMODITY PROGRAMS
Sec. 101. Extension of loans, payments, and acreage reduction programs
for wheat through 2002.
Sec. 102. Extension of loans, payments, and acreage reduction programs
for feed grains through 2002.
Sec. 103. Extension of loans, payments, and acreage reduction programs
for cotton through 2002.
Sec. 104. Extension of loans, payments, and acreage reduction programs
for rice through 2002.
Sec. 105. Extension of loans and payments for oilseeds through 2002.
TITLE II--MODIFICATION OF COMMODITY PROGRAM OPERATIONS
Sec. 201. Increase in flex acres to reduce acres for which deficiency
payments are available.
Sec. 202. Application of same repayment criteria to 0/50 and 0/85
payments as regular deficiency payments.
Sec. 203. Increased planting flexibility.
Sec. 204. Alternative repayment provision for marketing loans.
Sec. 205. Peanut program.
Sec. 206. Sugar program.
Sec. 207. Effect of amendments on 1991 through 1995 crops.
TITLE III--GENERAL COMMODITY PROVISIONS
Sec. 301. Extension of supplemental set-aside and acreage limitation
authority.
Sec. 302. Extension of deficiency and land diversion payments.
Sec. 303. Extension of authority to adjust established prices.
Sec. 304. Extension of limitation on adjustments of support prices.
Sec. 305. Extension of option to extend programs.
Sec. 306. References to terms regarding price support.
Sec. 307. Extension of acreage base and yield system.
Sec. 308. Normally planted acreage.
Sec. 309. Extension of National Agricultural Cost of Production
Standards Review Board.
Sec. 310. Extension of payment limitations.
Sec. 311. Extension of requirements for notice and public participation
in Secretary determinations.
Sec. 312. Determination of normal supply.
Sec. 313. Extension of options pilot program.
TITLE IV--REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM
Sec. 401. Repeal of emergency livestock feed assistance program.
TITLE V--FEDERAL CROP INSURANCE
Sec. 501. Conversion of catastrophic risk protection program to a
voluntary program.
TITLE VI--MISCELLANEOUS PROGRAMS
Sec. 601. Reduction in funding levels for export enhancement program.
Sec. 602. Spending limitations on conservation reserve program.
TITLE VII--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
Sec. 701. Establishment.
Sec. 702. Composition.
Sec. 703. Comprehensive review of past and future of production
agriculture.
Sec. 704. Reports.
Sec. 705. Powers.
Sec. 706. Commission procedures.
Sec. 707. Personnel matters.
Sec. 708. Termination of Commission.
SEC. 2. SENSE OF CONGRESS REGARDING REGULATORY AND TAX RELIEF FOR
AGRICULTURAL PRODUCERS AND ROLE OF FARM PROGRAMS IN
ENDING THE FEDERAL DEFICIT.
(a) Findings.--The Congress finds that--
(1) the continuation of significant Federal budgetary
deficits harms the economic well-being of the United States and
is detrimental to the development of sound, long-term
agricultural policy;
(2) agricultural price support and production adjustment
programs are necessary for the continued economic health of
United States agriculture, which must compete in international
markets against subsidized foreign competition; and
(3) regulatory and tax relief for agricultural producers is
necessary so that agricultural producers in the United States
can continue to produce an abundant supply of agricultural
commodities and compete in international markets.
(b) Sense of Congress.--Based on the findings expressed in
subsection (a), it is the sense of Congress that--
(1) agricultural price support and production adjustment
programs should be--
(A) implemented, to the maximum extent practicable,
in a manner that is consistent with the primary goal of
the concurrent resolution on the budget for fiscal year
1996 (H.Con.Res. 67, agreed to June 29, 1995) to end
Federal budget deficits; and
(B) modified, as necessary, to ensure that the
programs comply with applicable budget reconciliation
instructions in the concurrent resolution that are
designed to end Federal budget deficits, in a manner
consistent with section 306 of the concurrent
resolution;
(2) regulatory relief for agricultural producers should be
enacted and implemented, including the application of cost/
benefit principles in the issuance of agricultural regulations;
and
(3) tax relief for agricultural producers should be enacted
in the form of capital gains tax reductions, estate tax
exemptions, and mechanisms to average tax loads over high and
low income years.
TITLE I--EXTENSION OF CERTAIN COMMODITY PROGRAMS
SEC. 101. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS
FOR WHEAT THROUGH 2002.
(a) Agricultural Act of 1949.--Section 107B of the Agricultural Act
of 1949 (7 U.S.C. 1445b-3a) is amended--
(1) in the section heading by striking ``1995'' and
inserting ``2002'';
(2) in subsections (a)(1), (a)(4)(C), (b)(1), (c)(1)(A),
(c)(1)(B)(iii), (e)(1)(G), (e)(3)(A), (e)(3)(C)(iii), (f)(1),
(q), by striking ``1995'' each place it appears and inserting
``2002'';
(3) in the heading of subsection (c)(1)(B)(ii), by striking
``and 1995'' and inserting ``through 2002'';
(4) in subsection (c)(1)(B)(ii), by striking ``and 1995''
and inserting ``through 2002''; and
(5) in subsections (c)(1)(E)(i) and (c)(1)(E)(vii), by
striking ``1997'' each place it appears and inserting ``2002'';
(6) in the heading of subsection (e)(1)(G), by striking
``1995'' and inserting ``2002''; and
(7) in subsection (g)(1), by striking ``and 1995'' and
inserting ``through 2002''.
(b) Food Security Wheat Reserve.--Section 302(i) of the Food
Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) is amended by
striking ``1995'' both places it appears and inserting ``2002''.
(c) Nonapplicability of Certificate Requirements.--Sections 379d
through 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1379d-1379j) shall not be applicable to wheat processors or exporters
during the period June 1, 1996, through May 31, 2003.
(d) 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.
(e) 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.
(f) Nonapplicability of Section 107 of Agricultural Act of 1949.--
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. 102. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS
FOR FEED GRAINS THROUGH 2002.
(a) Agricultural Act of 1949.--Section 105B of the Agricultural Act
of 1949 (7 U.S.C. 1444f) is amended--
(1) in the section heading, by striking ``1995'' and
inserting ``2002'';
(2) in subsections (a)(1), (a)(4)(C), (a)(6), (b)(1),
(c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(1)(H), (e)(2)(H),
(e)(3)(A), (e)(3)(C)(iii), (f)(1), (p)(1), (q)(1), and (r), by
striking ``1995'' each place it appears and inserting ``2002'';
(3) in the heading of subsection (c)(1)(B)(ii), by striking
``and 1995'' and inserting ``through 2002'';
(4) in subsection (c)(1)(B)(ii), by striking ``and 1995''
and inserting ``through 2002'';
(5) in subsections (c)(1)(E)(i) and (c)(1)(E)(vii), by
striking ``1997'' each place it appears and inserting ``2002'';
(6) in the headings of subsections (e)(1)(G) and (e)(1)(H),
by striking ``1995'' both places it appears and inserting
``2002''; and
(7) in subsection (g)(1), by striking ``and 1995'' and
inserting ``through 2002''.
(b) Recourse Loan Program For Silage.--Section 403 of the Food
Security Act of 1985 (7 U.S.C. 1444e-1) is amended by striking ``1996''
and inserting ``2002''.
(c) Nonapplicability of Section 105 of Agricultural Act of 1949.--
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. 103. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS
FOR COTTON THROUGH 2002.
(a) Extra Long Staple Cotton.--Section 103(h)(16) of the
Agricultural Act of 1949 (7 U.S.C. 1444(h)(16)) is amended by striking
``1996'' and inserting ``2003''.
(b) Upland Cotton.--Section 103B of the Agricultural Act of 1949 (7
U.S.C. 1444-2) is amended--
(1) in the section heading, by striking ``1997'' and
inserting ``2002'';
(2) in subsections (a)(1), (b)(1), (c)(1)(A),
(c)(1)(B)(ii), (c)(1)(D)(i), (c)(1)(D)(v)(II), and (o), by
striking ``1997'' each place it appears and inserting ``2002'';
(3) in the heading of subsection (c)(1)(D)(v)(II), by
striking ``1997 crops'' and inserting ``2002 crops'';
(4) in subsection (e)(1)(D), by striking ``the 1997 crop''
and inserting ``each of the 1997 through 2002 crops'';
(5) in subsections (e)(3)(A) and (f)(1), by striking
``1995'' each place it appears and inserting ``2002''; and
(6) in subparagraphs (B)(i), (D)(i), (E)(i), and (F)(i) of
subsection (a)(5), by striking ``1998'' each place it appears
and inserting ``2003''.
(c) Cottonseed and Cottonseed Oil.--Section 203(b) of the
Agricultural Act of 1949 (7 U.S.C. 1446d(b)) is amended by striking
``1995'' and inserting ``2002''.
(d) Agricultural Adjustment Act of 1938.--Section 374(a) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1374(a)) is amended by
striking ``1995'' each place it appears and inserting ``2002''.
(e) 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.
(f) Suspension of Miscellaneous Cotton Provisions.--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.
(g) Preliminary Allotments for 2003 Crop of Upland Cotton.--
Notwithstanding any other provision of law, the permanent State,
county, and farm base acreage allotments for the 1977 crop of upland
cotton, adjusted for any underplantings in 1977 and reconstituted as
provided in section 379 of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1379), shall be the preliminary allotments for the 2003 crop.
(h) Cotton Classification Services.--The first sentence of section
3a of the Act of March 3, 1927 (commonly known as the ``Cotton
Statistics and Estimates Act'') (chapter 337; 7 U.S.C. 473a), is
amended by striking ``1996'' and inserting ``2002''.
SEC. 104. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS
FOR RICE THROUGH 2002.
Section 101B of the Agricultural Act of 1949 (7 U.S.C. 1441-2) is
amended--
(1) in the section heading, by striking ``1995'' and
inserting ``2002'';
(2) in subsections (a)(1), (a)(3), (b)(1), (c)(1)(A),
(c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n), by striking
``1995'' each place it appears and inserting ``2002'';
(3) in subsection (a)(5)(D)(i), by striking ``1996'' and
inserting ``2001'';
(4) in the heading of subsection (c)(1)(B)(ii), by striking
``and 1995'' and inserting ``through 2002'';
(5) in subsection (c)(1)(B)(ii), by striking ``and 1995''
and inserting ``through 2002'';
(6) in subsections (c)(1)(D)(i) and (c)(1)(D)(v)(II), by
striking ``1997'' each place it appears and inserting ``2002'';
and
(7) in the heading of subsection (c)(1)(D)(v)(II), by
striking ``1997 crops'' and inserting ``2002 crops''.
SEC. 105. EXTENSION OF LOANS AND PAYMENTS FOR OILSEEDS THROUGH 2002.
Section 205 of the Agricultural Act of 1949 (7 U.S.C. 1446f) is
amended--
(1) in the section heading, by striking ``1995'' and
inserting ``2002'';
(2) in subsections (b), (c), (e)(1), and (n), by striking
``1995'' each place it appears and inserting ``2002''; and
(3) in subsections (c) and (h)(2), by striking ``1997''
each places it appears and inserting ``2002''.
TITLE II--MODIFICATION OF COMMODITY PROGRAM OPERATIONS
SEC. 201. INCREASE IN FLEX ACRES TO REDUCE ACRES FOR WHICH DEFICIENCY
PAYMENTS ARE AVAILABLE.
(a) Wheat.--Subsection (c)(1)(C)(ii) of section 107B of the
Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended by striking
``85 percent'' and inserting ``85 percent (through the 1995 crop of
wheat) and 70 percent (for the 1996 through 2002 crops)''.
(b) Feed Grains.--Subsection (c)(1)(C)(ii) of section 105B of such
Act (7 U.S.C. 1444f) is amended by striking ``85 percent'' and
inserting ``85 percent (through the 1995 crop) and 70 percent (for the
1996 through 2002 crops)''.
(c) Upland Cotton.--Subsection (c)(1)(C)(ii) of section 103B of
such Act (7 U.S.C. 1444-2) is amended by striking ``85 percent'' and
inserting ``85 percent (through the 1995 crop of upland cotton) and 70
percent (for the 1996 through 2002 crops)''.
(d) Rice.--Subsection (c)(1)(C)(ii) of section 101B of such Act (7
U.S.C. 1441-2) is amended by striking ``85 percent'' and inserting ``85
percent (through the 1995 crop of rice) and 70 percent (for the 1996
through 2002 crops)''.
SEC. 202. APPLICATION OF SAME REPAYMENT CRITERIA TO 0/50 AND 0/85
PAYMENTS AS REGULAR DEFICIENCY PAYMENTS.
(a) Wheat.--Subsection (c)(1)(E) of section 107B of the
Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended by striking
clause (ii) and inserting the following new clause:
``(ii) Deficiency payments; repayment.--
Notwithstanding any other provision of this
section, for the 1996 through 2002 crops of
wheat, any producer who devotes a portion of
the maximum payment acres for wheat for the
farm to conservation uses (or other uses as
provided in subparagraph (F)) under this
subparagraph shall receive deficiency payments
on the acreage that is considered to be planted
to wheat and eligible for payments under this
subparagraph for the crop. Such deficiency
payments shall be made at the payment rate
provided in subparagraph (B) for deficiency
payments under subparagraph (A) and shall be
subject to repayment under the terms set forth
in section 114.''.
(b) Feed Grains.--Subsection (c)(1)(E) of section 105B of such Act
(7 U.S.C. 1444f) is amended by striking clause (ii) and inserting the
following new clause:
``(ii) Deficiency payments; repayment.--
Notwithstanding any other provision of this
section, for the 1996 through 2002 crops of
feed grains, any producer who devotes a portion
of the maximum payment acres for feed grains
for the farm to conservation uses (or other
uses as provided in subparagraph (F)) under
this subparagraph shall receive deficiency
payments on the acreage that is considered to
be planted to feed grains and eligible for
payments under this subparagraph for the crop.
Such deficiency payments shall be made at the
payment rate provided in subparagraph (B) for
deficiency payments under subparagraph (A) and
shall be subject to repayment under the terms
set forth in section 114.''.
(c) Upland Cotton.--Subsection (c)(1)(D) of section 103B of such
Act (7 U.S.C. 1444-2) is amended by striking clause (iii) and inserting
the following new clause:
``(iii) Deficiency payments; repayment.--
Notwithstanding any other provision of this
section, for the 1996 through 2002 crops of
upland cotton, any producer who devotes a
portion of the maximum payment acres for upland
cotton for the farm to conservation uses (or
other uses as provided in subparagraph (F))
under this subparagraph shall receive
deficiency payments on the acreage that is
considered to be planted to upland cotton and
eligible for payments under this subparagraph
for the crop. Such deficiency payments shall be
made at the payment rate provided in
subparagraph (B) for deficiency payments
under subparagraph (A) and shall be subject to
repayment under the terms set forth in section 114.''.
(d) Rice.--Subsection (c)(1)(D) of section 101B of such Act (7
U.S.C. 1441-2) is amended by striking clause (iii) and inserting the
following new clause:
``(iii) Deficiency payments; repayment.--
Notwithstanding any other provision of this
section, for the 1996 through 2002 crops of
rice, any producer who devotes a portion of the
maximum payment acres for rice for the farm to
conservation uses (or other uses as provided in
subparagraph (F)) under this subparagraph shall
receive deficiency payments on the acreage that
is considered to be planted to rice and
eligible for payments under this subparagraph
for the crop. Such deficiency payments shall be
made at the payment rate provided in
subparagraph (B) for deficiency payments under
subparagraph (A) and shall be subject to
repayment under the terms set forth in section
114.''.
SEC. 203. INCREASED PLANTING FLEXIBILITY.
(a) Expansion of 25 Percent Limitation.--Subsection (c) of section
504 of the Agricultural Act of 1949 (7 U.S.C. 1464) is amended to read
as follows:
``(c) Limitation on Acreage.--The quantity of the crop acreage base
that may be planted to a commodity, other than the specific program
crop, under this section may not exceed 100 percent of the crop acreage
base.''.
(b) Two-Way Flexibility.--Such section is further amended by adding
at the end the following new subsection:
``(f) Two-Way Flexibility.--
``(1) Planting on historical soybean acreage.--
Notwithstanding any other provision of this Act, producers of a
program crop on a farm who are participating in the production
adjustment program for the program crop under this Act shall be
allowed to plant the program crop in a quantity that exceeds
the permitted acreage for the crop without losing the
eligibility of the producers for loans, purchases, or payments
with respect to the crop under this Act if the acreage planted
to the program crop on the farm in excess of the permitted
acreage does not exceed 25 percent of the historical soybean
acreage on the farm for the crop.
``(2) Additional flexibility.--Any authority to plant a
program crop in excess of the permitted acreage for the crop
under this subsection shall be in addition to authority
provided under subsection (d).
``(3) Limitation.--The Secretary may limit the application
of this subsection with respect to a program crop if the
Secretary determines the limitation to be necessary to prevent
an increase in the acreage limitation program that would
otherwise be implemented in accordance with sections 101B,
103B, 105B, and 107B during a crop year for the crop.''.
(c) Conforming Amendments.--Such section is further amended--
(1) in subsection (d)--
(A) by striking ``Notwithstanding'' and inserting
``Except as provided in subsection (f) and
notwithstanding''; and
(B) in paragraph (1), by striking ``25 percent''
and inserting ``100 percent''; and
(2) in subsection (e)(2)(A), by striking ``25 percent'' and
inserting ``100 percent''.
SEC. 204. ALTERNATIVE REPAYMENT PROVISION FOR MARKETING LOANS.
(a) Wheat.--
(1) Marketing loan repayment.--Subsection (a) of section
107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is
amended--
(A) by striking paragraph (3) and all that follows
through paragraph (4)(A) and inserting the following:
``(3) Marketing loans.--
``(A) In general.--The Secretary shall permit the
producers on a farm to repay a loan made under this
subsection for a crop at a level (except as provided in
subparagraph (C)) that is the lesser of--
``(i) the loan level determined for the
crop; and
``(ii) the prevailing world market price
for wheat (adjusted to United States quality
and location), as determined by the
Secretary.''; and
(B) by redesignating paragraph (5) as paragraph
(4).
(2) Conforming amendment.--Subsection (c)(1) of such
section is amended by striking subparagraph (D).
(b) Feed Grains.--
(1) Marketing loan repayment.--Subsection (a) of section
105B of the Agricultural Act of 1949 (7 U.S.C. 1444f) is
amended--
(A) by striking paragraph (3) and all that follows
through paragraph (4)(A) and inserting the following:
``(3) Marketing loans.--
``(A) In general.--The Secretary shall permit the
producers on a farm to repay a loan made under this
subsection for a crop at a level (except as provided in
subparagraph (C)) that is the lesser of--
``(i) the loan level determined for the
crop; and
``(ii) the prevailing world market price
for feed grains (adjusted to United States
quality and location), as determined by the
Secretary.''; and
(B) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
(2) Conforming amendment.--Subsection (c)(1) of such
section is amended by striking subparagraph (D).
SEC. 205. PEANUT PROGRAM.
(a) National Poundage Quotas and Acreage Allotments.--Section 358-1
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is amended
to read as follows:
``SEC. 358-1. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS FOR
PEANUTS.
``(a) National Poundage Quotas.--
``(1) Establishment.--The national poundage quota for
peanuts for each marketing year shall be established by the
Secretary at a level that is equal to the quantity of peanuts
(in tons) that the Secretary estimates will be devoted in each
such marketing year to domestic edible and related uses,
excluding seed. The Secretary shall also include in his annual
estimate of domestic edible and related uses, the estimated
quantity of peanuts and peanut products to be imported into the
United States for the marketing year for which the quota is
being established.
``(2) Announcement.--The national poundage quota for a
marketing year shall be announced by the Secretary not later
than December 15 preceding the marketing year.
``(3) Apportionment among states.--The national poundage
quota established under paragraph (1) shall be apportioned
among the States so that the poundage quota allocated to each
State shall be equal to the percentage of the national poundage
quota allocated to farms in the State for 1995.
``(b) Farm Poundage Quotas.--
``(1) In general.--
``(A) Establishment.--A farm poundage quota for
each marketing year shall be established--
``(i) for each farm that had a farm
poundage quota for peanuts for the 1995
marketing year;
``(ii) if the poundage quota apportioned to
a State under subsection (a)(3) for any such
marketing year is larger than the quota for the
immediately preceding marketing year, for each
other farm on which peanuts were produced for
marketing in at least 2 of the 3 immediately
preceding crop years, as determined by the
Secretary; and
``(iii) as approved and determined by the
Secretary under section 358c, for each farm on
which peanuts are produced in connection with
experimental and research programs.
``(B) Quantity.--The farm poundage quota for each
marketing year for each farm described in subparagraph
(A)(i) shall be the same as the farm poundage quota for
the farm for the immediately preceding marketing year,
as adjusted under paragraph (2), but not including any
increases resulting from the allocation of quotas
voluntarily released for one year under paragraph (7).
The farm poundage quota, if any, for each marketing
year for each farm described in subparagraph (A)(ii)
shall be equal to the quantity of peanuts allocated to
the farm for the year under paragraph (2).
``(C) Transfers.--For purposes of this subsection,
if the farm poundage quota, or any part thereof, is
permanently transferred in accordance with section 358a
or 358b, the receiving farm shall be considered as
possessing the farm poundage quota (or portion thereof)
of the transferring farm for all subsequent marketing
years.
``(2) Adjustments.--
``(A) Allocation of increased quota generally.--
Except as provided in subparagraph (C), if the poundage
quota apportioned to a State under subsection (a)(3) of
any marketing year is increased over the poundage quota
apportioned to farms in the State for the immediately
preceding marketing year, the increase shall be
allocated proportionately, based on farm production
history for peanuts for the 3 immediately preceding
years, among--
``(i) all farms in the State for each of
which a farm poundage quota was established for
the marketing year immediately preceding the
marketing year for which the allocation is
being made; and
``(ii) all other farms in the State on each
of which peanuts were produced in at least 2 of
the 3 immediately preceding crop years, as
determined by the Secretary.
``(B) Decrease.--If the poundage quota apportioned
to a State under subsection (a)(3) for any marketing
year is decreased from the poundage quota apportioned
to farms in the State under subsection (a)(3) for the
immediately preceding marketing year, the decrease
shall be allocated among all the farms in the State for
each of which a farm poundage quota was established for
the marketing year immediately preceding the marketing
year for which the allocation is being made.
``(C) Special rule on tenant's share of increased
quota.--Subject to terms and conditions prescribed by
the Secretary, on farms that were leased to a tenant
for peanut production, the tenant shall share equally
with the owner of the farm in that percentage of the
quota referred to in subparagraph (A) and otherwise
allocated to the farm as the result of the tenant's
production on the farm of additional peanuts. Not later
than April 1 of each year or as soon as practicable,
the tenant's share of any such quota shall be allocated
to a farm within the county owned by the tenant or sold
by the tenant to the owner of any farm within the
county and permanently transferred to that farm. Any
quota not so disposed of as provided in this
subparagraph shall be allocated to other quota farms in
the State under paragraph (6) as part of the quota
reduced from farms in the State due to the failure to
produce the quota.
``(3) Quota not produced.--
``(A) In general.--Insofar as practicable and on
such fair and equitable basis as the Secretary may by
regulation prescribe, the farm poundage quota
established for a farm for any marketing year shall be
reduced to the extent that the Secretary determines
that the farm poundage quota established for the farm
for any 2 of the 3 marketing years preceding the
marketing year for which the determination is being
made was not produced, or considered produced, on the
farm.
``(B) Exclusions.--For purposes of this paragraph,
the farm poundage quota for any such preceding
marketing year shall not include any increase resulting
from the allocation of quotas voluntarily released for
1 year under paragraph (7).
``(4) Quota considered produced.--For purposes of this
subsection, the farm poundage quota shall be considered
produced on a farm if--
``(A) the farm poundage quota was not produced on
the farm because of drought, flood, or any other
natural disaster, or any other condition beyond the
control of the producer, as determined by the
Secretary; or
``(B) the farm poundage quota for the farm was
either leased to another owner or operator of a farm
within the same county for transfer to such farm for
only 1 of the 3 marketing years immediately preceding
the marketing year for which the determination is being
made or the farm poundage quota was released
voluntarily under paragraph (7) for only 1 of the 3
marketing years immediately preceding the marketing
year for which the determination is being made. The
farm poundage quota shall not be considered produced
for more than one marketing year out of the three
immediately preceding marketing years under this
subparagraph.
``(5) Quota permanently released.--Notwithstanding any
other provision of law--
``(A) the farm poundage quota established for a
farm under this subsection, or any part of the quota,
may be permanently released by the owner of the farm,
or the operator with the permission of the owner; and
``(B) the poundage quota for the farm for which the
quota is released shall be adjusted downward to reflect
the quota that is so released.
``(6) Allocation of quotas reduced or released.--
``(A) In general.--Except as provided in
subparagraph (B), the total quantity of the farm
poundage quotas reduced or voluntarily released from
farms in a State for any marketing year under
paragraphs (3) and (5) shall be allocated, as the
Secretary may by regulation prescribe, to other farms
in the State as provided in subparagraph (B) on which
peanuts were produced in at least 2 of the 3 crop years
immediately preceding the year for which the allocation
is being made.
``(B) Set-aside for farms with no quota.--The total
amount of farm poundage quota to be allocated in the
State under subparagraph (A) shall be allocated to
farms in the State for which no farm poundage quota was
established for the immediately preceding year's crop.
The allocation to any such farm shall not exceed the
average farm production of peanuts for the 3
immediately preceding years during which peanuts were
produced on the farm. Any farm quota pounds remaining
after allocation to farms under this subparagraph shall
be allocated to farms in the State on which poundage
quotas were established for the immediately preceding
year's crop.
``(7) Quota temporarily released.--
``(A) In general.--The farm poundage quota, or any
portion thereof, established for a farm for a marketing
year may be voluntarily released to the Secretary to
the extent that the quota, or any part thereof, will
not be produced on the farm for the marketing year. Any
farm poundage quota so released in a State shall be
allocated to other farms in the State on such basis as
the Secretary may by regulation prescribe.
``(B) Effective period.--Except as otherwise
provided in this section, any adjustment in the farm
poundage quota for a farm under subparagraph (A) shall
be effective only for the marketing year for which it
is made and shall not be taken into consideration in
establishing a farm poundage quota for the farm from
which the quota was released for any subsequent
marketing year.
``(8) Transfer of additional peanuts.--Additional peanuts
on a farm from which the quota poundage was not harvested and
marketed may be transferred to the quota loan pool for pricing
purposes on such basis as the Secretary shall by regulation
provide, except that the poundage of such peanuts so
transferred shall not exceed the difference in the total
peanuts meeting quality requirements for domestic edible use as
determined by the Secretary marketed from the farm and the
total farm poundage quota, excluding quota pounds transferred
to the farm in the fall. Peanuts transferred under provisions
of this paragraph shall be supported at a total of not less
than 70 percent of the quota support rate for the marketing
years in which such transfers occur and such transfers for a
farm shall not exceed 25 percent of the total farm quota
pounds, excluding pounds transferred in the fall.
``(9) Temporary quota allocation.--
``(A) Temporary allocation of quota pounds for the
marketing year only in which the crop is planted shall
be made to producers as provided in this subsection.
The temporary quota
allocation shall be equal to the pounds of seed
peanuts planted on the farm as may be adjusted under regulations that
shall be prescribed by the Secretary. The temporary allocation of quota
pounds under this paragraph shall be in addition to the farm quota
pounds established under paragraph (1).
``(B) The allocation of quota pounds to producers
under the provisions of this subsection shall be
performed in such a manner as will not result in a net
decrease in quota pounds on a farm in excess of 3
percent, after temporary seed quota is added, from the
basic farm quota in 1996 and such decrease shall occur
one time only and shall be applicable to the 1996
marketing year only.
``(C) Implementation of provisions in this
subsection may continue so long as doing so does not
result in increased cost to the Commodity Credit
Corporation by displacement of quota peanuts by
additional peanuts in the domestic market, increased
losses in the Association loan pools or other such
increases in cost.
``(D) Nothing in this paragraph shall alter or
change in any way the requirements of section 358e(b).
``(c) Farm Yields.--
``(1) In general.--For each farm for which a farm poundage
quota is established under subsection (b), and when necessary
for purposes of this Act, a farm yield of peanuts shall be
determined for each such farm.
``(2) Quantity.--The yield shall be equal to the average of
the actual yield per acre on the farm for each of the 3 crop
years in which yields were highest on the farm out of the 5
crop years 1973 through 1977.
``(3) Appraised yields.--If peanuts were not produced on
the farm in at least 3 years during the 5-year period or there
was a substantial change in the operation of the farm during
the period (including a change in operator, lessee who is an
operator, or irrigation practices), the Secretary shall have a
yield appraised for the farm. The appraised yield shall be that
quantity determined to be fair and reasonable on the basis of
yields established for similar farms that are located in the
area of the farm and on which peanuts were produced, taking
into consideration land, labor, and equipment available for the
production of peanuts, crop rotation practices, soil and water,
and other relevant factors.
``(d) Referendum Respecting Poundage Quotas.--
``(1) In general.--Not later than December 15 of each
calendar year, the Secretary shall conduct a referendum of
producers engaged in the production of quota peanuts in the
calendar year in which the referendum is held to determine
whether the producers are in favor of or opposed to poundage
quotas with respect to the crops of peanuts produced in the 5
calendar years immediately following the year in which the
referendum is held, except that, if as many as two-thirds of
the producers voting in any referendum vote in favor of
poundage quotas, no referendum shall be held with respect to
quotas for the second, third, fourth, and fifth years of the
period.
``(2) Proclamation.--The Secretary shall proclaim the
result of the referendum within 30 days after the date on which
it is held.
``(3) Vote against quotas.--If more than one-third of the
producers voting in the referendum vote against quotas, the
Secretary also shall proclaim that poundage quotas will not be
in effect with respect to the crop of peanuts produced in the
calendar year immediately following the calendar year in which
the referendum is held.
``(e) Definitions.--For the purposes of this part and title I of
the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.):
``(1) Additional peanuts.--The term `additional peanuts'
means, for any marketing year--
``(A) any peanuts that are marketed from a farm for
which a farm poundage quota has been established and
that are in excess of the marketings of quota peanuts
from the farm for the year; and
``(B) all peanuts marketed from a farm for which no
farm poundage quota has been established in accordance
with subsection (b).
``(2) Crushing.--The term `crushing' means the processing
of peanuts to extract oil for food uses and meal for feed uses,
or the processing of peanuts by crushing or otherwise when
authorized by the Secretary.
``(3) Domestic edible use.--The term `domestic edible use'
means use for milling to produce domestic food peanuts (other
than those described in paragraph (2)) and use on a farm,
except that the Secretary may exempt from this definition seeds
of peanuts that are used to produce peanuts excluded under
section 358d(c), are unique strains, and are not commercially
available.
``(4) Quota peanuts.--The term `quota peanuts' means, for
any marketing year, any peanuts produced on a farm having a
farm poundage quota, as determined in subsection (b), that--
``(A) are eligible for domestic edible use as
determined by the Secretary;
``(B) are marketed or considered marketed from a
farm; and
``(C) do not exceed the farm poundage quota of the
farm for the year.
``(f) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1996 through 2002 crops of
peanuts.''.
(b) Sale, Lease, or Transfer of Farm Poundage Quota.--Section 358b
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b) is amended
to read as follows:
``SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA FOR
PEANUTS.
``(a) In General.--
``(1) Authority.--Subject to such terms, conditions, or
limitations as the Secretary may prescribe, the owner, or
operator with the permission of the owner, of any farm for
which a farm poundage quota has been established under this Act
may sell or lease all or any part of the poundage quota to any
other owner or operator of a farm within the same State if not
less than 90 percent of the basic quota (the farm quota
exclusive of temporary quota transfers), plus any poundage
quota transferred to the farm under this subsection, has been
planted or considered planted on the farm from which the quota
is to be transfered. The transfer shall be under such terms and
conditions as the Secretary may by regulation prescribe. In the
case of a fall transfer or a transfer after the normal planting
season by a cash lessee, the landowner shall not be required to
sign the transfer authorization. A fall transfer or a transfer
after the normal planting season may be made not later than 72
hours after the peanuts that are the subject of the transfer
are inspected and graded. Fall transfers of quota pounds shall
not affect the farm quota history for the transferring or
receiving farm and shall not result in reducing the farm
poundage quota on the transferring farm.
``(2) Transfers in states with small quotas.--
Notwithstanding paragraph (1) and (2), in the case of any State
for which the poundage quota allocated to the State was less
than 10,000 tons for the preceding year's crop, all or any part
of a farm poundage quota may be transferred by sale or lease or
otherwise from a farm to another farm in any State.
``(b) Conditions.--Transfers (including transfer by sale or lease)
of farm poundage quotas under this section shall be subject to all of
the following conditions:
``(1) Lienholders.--No transfer of the farm poundage quota
from a farm subject to a mortgage or other lien shall be
permitted unless the transfer is agreed to by the lienholders,
except that no such agreement shall be necessary in the event
of all lease, if the operator had the lienholder's agreement
for a previous spring cash lease.
``(2) Tillable cropland.--No transfer of the farm poundage
quota shall be permitted if the county committee established
under section 8(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)) determines that the receiving
farm does not have adequate tillable cropland to produce the
farm poundage quota.
``(3) Record.--No transfer of the farm poundage quota shall
be effective until a record thereof is filed with the county
committees of the counties from which transferred and to which
transferred and the committees determined that the transfer
complies with this section.
``(4) Other terms.--Such other terms and conditions that
the Secretary may by regulation prescribe.
``(c) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1996 through 2002 crops of
peanuts.''.
(c) Marketing Penalties; Disposition of Additional Peanuts.--
Section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359a) is amended to read as follows:
``SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS.
``(a) Marketing Penalties.--
``(1) In general.--
``(A) Marketing peanuts in excess of quota.--The
marketing of any peanuts for domestic edible use in
excess of the farm poundage quota for the farm on which
the peanuts are produced shall be subject to penalty at
a rate equal to 140 percent of the support price for
quota peanuts for the marketing year in which the
marketing occurs. The penalty shall not apply to the
marketing of breeder or Foundation seed peanuts grown
and marketed by a publicly owned agricultural
experiment station (including a State operated seed
organization) under such regulations as the Secretary
may prescribe.
``(B) Marketing year.--For purposes of this
section, the marketing year for peanuts shall be the
12-month period beginning August 1 and ending July 31.
``(C) Marketing additional peanuts.--The marketing
of any additional peanuts from a farm shall be subject
to the same penalty unless the peanuts, in accordance
with regulations established by the Secretary, are--
``(i) placed under loan at the additional
loan rate in effect for the peanuts under
section 108B of the Agricultural Act of 1949
and not redeemed by the producers;
``(ii) marketed through an area marketing
association designated pursuant to section
108B(c)(1) of the Agricultural Act of 1949; or
``(iii) marketed under contracts between
handlers and producers pursuant to subsection
(f).
``(2) Payer.--The penalty shall be paid by the person who
buys or otherwise acquires the peanuts from the producer or, if
the peanuts are marketed by the producer through an agent, the
penalty shall be paid by the agent. The person or agent may
deduct an amount equivalent to the penalty from the price paid
to the producer.
``(3) Failure to collect.--If the person required to
collect the penalty fails to collect the penalty, the person
and all persons entitled to share in the peanuts marketed from
the farm or the proceeds thereof shall be jointly and severally
liable with such persons who failed to collect the penalty for
the amount of the penalty.
``(4) Application of quota.--Peanuts produced in a calendar
year in which farm poundage quotas are in effect for the
marketing year beginning therein shall be subject to the quotas
even though the peanuts are marketed prior to the date on which
the marketing year begins.
``(5) False information.--If any producer falsely
identifies, fails to accurately certify planted acres, or fails
to account for the disposition of any peanuts produced on the
planted acres, a quantity of peanuts equal to the greater of
the farm's average or actual yield, as determined by the
Secretary, times the planted acres, shall be deemed to have
been marketed in violation of permissible uses of quota and
additional peanuts. Any penalty payable under this paragraph
shall be paid and remitted by the producer.
``(6) Unintentional violations.--The Secretary shall
authorize, under such regulations as the Secretary shall issue,
the county committees established under section 8(b) of the
Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)) to waive or reduce marketing penalties provided for
under this subsection in cases which the committees determine
that the violations that were the basis of the penalties were
unintentional or without knowledge on the part of the parties
concerned.
``(7) De minimis violations.--Errors in weight that do not
exceed one-tenth of 1 percent in the case of any one marketing
document shall not be considered to be marketing violations
except in cases of fraud or conspiracy.
``(b) Use of Quota and Additional Peanuts.--
``(1) Quota peanuts.--Only quota peanuts may be retained
for use as seed or for other uses on a farm. When peanuts are
so retained, such retention shall be considered as marketings
of quota peanuts, except that the Secretary may exempt from
consideration as marketings of quota peanuts seeds of peanuts
for the quantity involved that are used to produce peanuts
excluded under section 358d(c), are unique strains, and are not
commercially available.
``(2) Additional peanuts.--Additional peanuts shall not be
retained for use on a farm and shall not be marketed for
domestic edible use, except as provided in subsection (g).
``(3) Seed.--Except as provided in paragraph (1), seed for
planting of any peanut acreage in the United States shall be
obtained solely from quota peanuts marketed or considered
marketed for domestic edible use.
``(c) Marketing Peanuts With Excess Quantity, Grade, or Quality.--
On a finding by the Secretary that the peanuts marketed from any crop
for domestic edible use by a handler are larger in quantity or higher
in grade or quality than the peanuts that could reasonably be produced
from the quantity of peanuts having the grade, kernel content, the
quality of the quota peanuts acquired by the handler from the crop for
the marketing year, the handler shall be subject to a penalty equal to
140 percent of the loan level for quota peanuts on the quantity of
peanuts that the Secretary determines are in excess of the quantity,
grade, or quality of the peanuts that could reasonably have been
produced from the peanuts so acquired.
``(d) Supervision of Handlers of Additional Peanuts.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall require that the handling and disposal of
additional peanuts be supervised by agents of the Secretary or
by area marketing associations designated pursuant to section
108B(c)(1) of the Agricultural Act of 1949.
``(2) Supervision by nonhandlers.--
``(A) In general.--Supervision of the handling and
disposal of additional peanuts by a handler shall not
be required under paragraph (1) if the handler agrees
in writing, prior to any handling or disposal of the
peanuts, to comply with regulations that the Secretary
shall issue.
``(B) Regulations.--The regulations issued by the
Secretary under subparagraph (A) shall include the
following provisions:
``(i) Types of exported or crushed
peanuts.--Handlers of shelled or milled peanuts
may export or crush peanuts classified by type
in all of the following quantities:
``(I) Sound split kernel peanuts.--
Sound split kernel peanuts purchased by
the handler as additional peanuts to
which, under price support loan
schedules, a mandated deduction with
respect to the price paid to the
producer of the peanuts would be
applied due to the percentage of the
sound splits.
``(II) Sound mature kernel
peanuts.--Sound mature kernel peanuts
(which term includes sound split kernel
peanuts and sound whole kernel peanuts)
in an amount equal to the poundage of
the peanuts purchased by the handler as
additional peanuts, less the total
poundage of sound split kernel peanuts
described in subclause (I).
``(III) Remainder.--The remaining
quantity of total kernel content of
peanuts purchased by the handler as
additional peanuts.
``(ii) Documentation.--Handlers shall
ensure that any additional peanuts exported or
crushed are evidenced by onboard bills of
lading or other appropriate documentation as
may be required by the Secretary, or both.
``(iii) Loss of peanuts.--If a handler
suffers a loss of peanuts as a result of fire,
flood, or any other condition beyond the
control of the handler, the portion of the loss
allocated to contracted additional peanuts
shall not be greater than the portion of the
handler's total peanut purchases for the year
attributable to contracted additional peanuts
purchased for export or crushing by the handler
during the year.
``(iv) Shrinkage allowance.--
``(I) In general.--The obligation
of a handler to export or crush peanuts
in quantities described in this
subparagraph shall be reduced by a
shrinkage allowance, to be determined
by the Secretary, to reflect actual
dollar value shrinkage experienced by
handlers in commercial operations,
except that the allowance shall not be
less than 4 percent, except as provided
in subclause (II).
``(II) Common industry practices.--
The Secretary may provide a lower
shrinkage allowance for a handler who
fails to comply with the restrictions
on the use of peanuts, as may be
specified by the Commodity Credit
Corporation, to take into account
common industry practices.
``(3) Adequate finances and facilities.--A handler shall
submit to the Secretary adequate financial guarantees, as well
as evidence of adequate facilities and assets, with the
facilities under the control and operation of the handler, to
ensure the handler's compliance with the obligation to export
peanuts.
``(4) Commingling of like peanuts.--Quota and additional
peanuts of like type and segregation or quality may, under
regulations issued by the Secretary, be commingled and
exchanged on a dollar value basis to facilitate warehousing,
handling, and marketing.
``(5) Penalty.--
``(A) In general.--Except as provided in
subparagraph (B), the failure by a handler to comply
with regulations issued by the Secretary governing the
disposition and handling of additional peanuts shall
subject the handler to a penalty at a rate equal to 140
percent of the loan level for quota peanuts on the
quantity of peanuts involved in the violation.
``(B) Nondelivery.--A handler shall not be subject
to a penalty for failure to export additional peanuts
if the peanuts were not delivered to the handler.
``(6) Reentry of exported peanuts.--
``(A) Penalties.--If any additional peanuts or
peanut products manufactured from additional peanuts
exported by a handler are reentered into the United
States in commercial quantities as determined by the
Secretary, the importer thereof shall be subject to a
penalty at a rate equal to 140 percent of the loan
level for quota peanuts on the quantity of peanuts
reentered.
``(B) Records.--Each person, firm, or handler who
imports peanuts into the United States shall maintain
such records and documents as are required by the
Secretary to ensure compliance with this subsection.
``(e) Special Export Credits.--
``(1) In general.--The Secretary shall, with due regard for
the integrity of the peanut program, promulgate regulations
that will permit any handler of peanuts who manufactures peanut
products from domestic edible peanuts to export the products
and receive credit for the fulfillment of export obligations
for the peanut content of the products against which the export
credits the handler may thereafter apply, up to the amount
thereof, equivalent quantities of additional peanuts of the
same type acquired by the handler and used in the domestic
edible market. The peanuts so acquired for the domestic edible
market as provided in this subsection shall be of the same crop
year as the peanuts used in the manufacture of the products so
exported.
``(2) Certification.--Under such regulations, the Secretary
shall require all handlers who are peanut product manufacturers
to submit annual certifications of peanut product content on a
product-by-product basis. Any changes in peanut product
formulas as affecting peanut content shall be recorded within
90 days of the changes. The Secretary shall conduct an annual
review of the certifications. The Secretary shall pursue all
available remedies with respect to persons who fail to comply
with this paragraph.
``(3) Records.--The Secretary shall require handlers who
are peanut product manufacturers to maintain and provide such
documents as are necessary to ensure compliance with this
subsection and to maintain the integrity of the peanut program.
``(f) Contracts for Purchase of Additional Peanuts.--
``(1) In general.--Handlers may, under such regulations as
the Secretary may issue, contract with producers for the
purchase of additional peanuts for crushing or export, or both.
``(2) Submission to secretary.--
``(A) Contract deadline.--Any such contract shall
be completed and submitted to the Secretary (or if
designated by the Secretary, the area marketing
association) for approval not later than September 15
of the year in which the crop is produced.
``(B) Extension of deadline.--The Secretary may
extend the deadline under subparagraph (A) by up to 15
days in response to damaging weather or related
condition (as defined in section 112 of the Disaster
Assistance Act of 1989 (7 U.S.C. 1421 et seq.)). The
Secretary shall announce the extension no later than
September 5 of the year in which the crop is produced.
``(3) Form.--The contract shall be executed on a form
prescribed by the Secretary. The form shall require such
information as the Secretary determines appropriate to ensure
the proper handling of the additional peanuts, including the
identity of the contracting parties, the poundage, and category
of the peanuts, the disclosure of any liens, and the intended
disposition of the peanuts.
``(4) Information for handling and processing additional
peanuts.--Notwithstanding any other provision of this section,
any person wishing to handle and process additional peanuts as
a handler shall submit to the Secretary (or if designated by
the Secretary, the area marketing association), such
information as may be required under subsection (d) by such
date as prescribed by the Secretary so as to permit final
action to be taken on the application by July 1 of each
marketing year.
``(5) Terms.--Each such contract shall contain the final
price to be paid by the handler for the peanuts involved and a
specific prohibition against the disposition of the peanuts for
domestic edible or seed use.
``(6) Suspension of restrictions on imported peanuts.--
Notwithstanding any other provision of this Act, if the
President issues a proclamation under section 404(b) of the
Uruguay Round Agreements Act expanding the quantity of peanuts
subject to the in-quota rate of duty under a tariff-rate quota,
or under section 22 of the Agricultural Adjustment Act (7
U.S.C. 624), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, temporarily suspending
restrictions on the importation of peanuts, the Secretary
shall, subject to such terms and conditions as the Secretary
may prescribe, permit a handler, with the written consent of
the producer, to purchase additional peanuts from any producer
who contracted with the handler and to offer the peanuts for
sale for domestic edible use.
``(g) Marketing of Peanuts Owned or Controlled by the Commodity
Credit Corporation.--
``(1) In general.--Subject to section 407 of the
Agricultural Act of 1949 (7 U.S.C. 1427), any peanuts owned or
controlled by the Commodity Credit Corporation may be made
available for domestic edible use, in accordance with
regulations issued by the Secretary, so long as doing so does
not result in substantially increased cost to the Commodity
Credit Corporation. Additional peanuts received under loan
shall be offered for sale for domestic edible use at prices not
less than those required to cover all costs incurred with
respect to the peanuts for such items as inspection,
warehousing, shrinkage, and other expenses, plus--
``(A) not less than 100 percent of the loan value
of quota peanuts if the additional peanuts are sold and
paid for during the harvest season on delivery by and
with the written consent of the producer;
``(B) not less than 105 percent of the loan value
of quota peanuts if the additional peanuts are sold
after delivery by the producer but not later than
December 31 of the marketing year; or
``(C) not less than 107 percent of the loan value
of quota peanuts if the additional peanuts are sold
later than December 31 of the marketing year.
``(2) Acceptance of bids by area marketing associations.--
``(A) In general.--Except as provided in
subparagraph (B), for the period from the date
additional peanuts are delivered for loan to March 1 of
the calendar year following the year in which the
additional peanuts were harvested, the area marketing
association designated pursuant to section 108B(c)(1)
of the Agricultural Act of 1949 shall have sole
authority to accept or reject lot list bids when the
sales price, as determined under this subsection,
equals or exceeds the minimum price at which the
Community Credit Corporation may sell its stocks of
additional peanuts.
``(B) Modification.--The area marketing association
and the Community Credit Corporation may agree to
modify the authority granted by subparagraph (A) to
facilitate the orderly marketing of additional peanuts.
``(3) Producer marketing and expenses.--Notwithstanding any
other provision of this Act, the Secretary shall, in any
determination required under subsections (a)(2) and (b)(1) of
section 108B of the Agricultural Act of 1949, include any
additional marketing expenses required by law, excluding the
amount of any assessment required under the Omnibus Budget
Reconciliation Act of 1990.
``(h) Administration.--
``(1) Interest.--The person liable for payment or
collection of any penalty provided for in this section shall be
liable also for interest thereon at a rate per annum equal to
the rate per annum of interest that was charged the Commodity
Credit Corporation by the Treasury of the United States on the
date the penalty became due.
``(2) De minimis quantity.--This section shall not apply to
peanuts produced on any farm on which the acreage harvested for
nuts is one acre or less if the producers who share in the
peanuts produced on the farm do not share in the peanuts
produced on any other farm.
``(3) Liens.--Until the amount of the penalty provided by
this section is paid, a lien on the crop of peanuts with
respect to which the penalty is incurred, and on any subsequent
crop of peanuts subject to farm poundage quotas in which the
person liable for payment of the penalty has an interest, shall
be in effect in favor of the United States.
``(4) Penalties.--
``(A) Procedures.--Notwithstanding any other
provision of law, the liability for and the amount of
any penalty assessed under this section shall be
determined in accordance with such procedures as the
Secretary by regulation may prescribe. The facts
constituting the basis for determining the liability
for or amount of any penalty assessed under this
section, when officially determined in conformity with
the applicable regulations prescribed by the Secretary,
shall be final and conclusive and shall not be
reviewable by any other officer or agency of the
Government.
``(B) Judicial review.--Nothing in this section
shall be construed as prohibiting any court of
competent jurisdiction from reviewing any determination
made by the Secretary with respect to whether the
determination was made in conformity with the
applicable law and regulations.
``(C) Civil penalties.--All penalties imposed under
this section shall for all purposes be considered civil
penalties.
``(5) Reduction of penalties.--
``(A) In general.--Notwithstanding any other
provision of law and except as provided in subparagraph
(B), the Secretary may reduce the amount of any penalty
assessed against handlers under this section by any
appropriate amount, including, in an appropriate case,
eliminating the penalty entirely, if the Secretary
finds that the violation on which the penalty is based
was minor or inadvertent, and that the reduction of the
penalty will not impair the operation of the peanut
program.
``(B) Failure to export contracted additional
peanuts.--The amount of any penalty imposed on a
handler under this section that resulted from the
failure to export or crush contracted additional
peanuts shall not be reduced by the Secretary.
``(i) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1996 through 2002 crops of
peanuts.''.
(d) Extension of Experimental and Research Programs for Peanuts.--
Subsection 358c(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358c(d)) is amended by striking ``1991 through 1995'' and inserting
``1996 through 2002''.
(e) Price Support Program.--Section 108B of the Agricultural Act of
1949 (7 U.S.C. 1445c-3) is amended to read as follows:
``SEC. 108B. PRICE SUPPORT PROGRAM FOR PEANUTS.
``(a) Quota Peanuts.--
``(1) In general.--The Secretary shall make price support
available to producers through loans, purchases, and other
operations on quota peanuts for each crop.
``(2) Support rates.--The national average quota support
rate for each crop of quota peanuts shall be the national
average quota support rate for the immediately preceding crop
adjusted to reflect any increase or decrease during the
calendar year immediately preceding the marketing year for the
crop for which a level of support is being determined, in the
national average cost of peanut production, excluding any
change in the cost of land, and the cost of any assessments
required under subsection (g), except that in no event shall
the national average quota support rate be increased by more
than 5 percent of the national average quota support rate for
the preceding crop, nor be decreased by more than 5 percent of
the national average quota support rate for the preceding crop.
``(3) Inspection, handling, or storage.--The levels of
support so announced shall not be reduced by any deductions for
inspection, handling, or storage.
``(4) Location and other factors.--The Secretary may make
adjustments for location of peanuts and such other factors as
are authorized by section 403.
``(5) Announcement.--The Secretary shall announce the level
of support for quota peanuts of each crop not later than
February 15 preceding the marketing year for the crop for which
the level of support is being determined.
``(b) Additional Peanuts.--
``(1) In general.--The Secretary shall make price support
available to producers through loans, purchases, or other
operations on additional peanuts from each crop at such levels
as the Secretary finds appropriate, taking into consideration
the demand for peanut oil and peanut meal, expected prices of
other vegetable oils and protein meals, and the demand for
peanuts in foreign markets, except that the Secretary shall set
the support rate on additional peanuts at a level estimated by
the Secretary to ensure that there are no losses to the
Commodity Credit Corporation on the sale or disposal of the
peanuts.
``(2) Announcement.--The Secretary shall announce the level
of support for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for which
the level of support is being determined.
``(c) Area Marketing Associations.--
``(1) Warehouse storage loans.--
``(A) In general.--In carrying out subsections (a)
and (b), the Secretary shall make warehouse storage
loans available in each of the three producing areas
(described in section 1446.95 of title 7 of the Code of
Federal Regulations (January 1, 1989)) to a designated
area marketing association of peanut producers that is
selected and approved by the Secretary and that is
operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse
storage loans available to any cooperative that is
engaged in operations or activities concerning peanuts
other than those operations and activities specified in
this section and sections 358d and 358e of the
Agricultural Adjustment Act of 1938.
``(B) Administrative and supervisory activities.--
The area marketing associations shall be used in
administrative and supervisory activities relating to
price support and marketing activities under this
section and sections 358d and 358e of the Agricultural
Adjustment Act of 1938.
``(C) Association costs.--Loans made to the
association under this paragraph shall include, in
addition to the price support value of the peanuts,
such costs as the area marketing association reasonably
may incur in carrying out its responsibilities,
operations, and activities under this section and
sections 358d and 358e of the Agricultural Adjustment
Act of 1938.
``(2) Pools for quota and additional peanuts.--
``(A) In general.--The Secretary shall require that
each area marketing association establish pools and
maintain complete and accurate records by area and
segregation for quota peanuts handled under loan and
for additional peanuts placed under loan, except that
separate pools shall be established for Valencia
peanuts produced in New Mexico. Peanuts physically
produced outside the State of New Mexico shall not be
eligible for entry into or participation in the New
Mexico pools. Bright hull and dark hull Valencia
peanuts shall be considered as separate types for the
purpose of establishing the pools.
``(B) Net gains.--Net gains on peanuts in each
pool, unless otherwise approved by the Secretary, shall
be distributed only to producers who placed peanuts in
the pool shall be distributed in proportion to the
value of the peanuts placed in the pool by each
producer. Net gains for peanuts in each pool shall
consist of the following:
``(i) Quota peanuts.--For quota peanuts,
the net gains over and above the loan
indebtedness and other costs or losses incurred
on peanuts placed in the pool plus an amount
from all additional pool gains equal to any
loss on disposition of all peanuts in the pool
for quota peanuts.
``(ii) Additional peanuts.--For additional
peanuts, the net gains over and above the loan
indebtedness and other costs or losses incurred
on peanuts placed in the pool for additional
peanuts less any amount allocated to offset any
loss on the pool for quota peanuts as provided
in clause (i).
``(d) Losses.--Notwithstanding any other provision of this section:
``(1) Quota peanuts placed under loan.--Any distribution of
net gains on additional peanuts (other than net gains on
additional peanuts in separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New
Mexico) shall be first reduced to the extent of any loss by the
Commodity Credit Corporation on quota peanuts placed under
loan.
``(2) Quota loan pools.--
``(A) Transfers from additional loan pools.--The
proceeds due any producer from any pool shall be
reduced by the amount of any loss that is incurred with
respect to peanuts transferred from an additional loan
pool to a quota loan pool by such producer under
section 358-1(b)(8) of the Agricultural Adjustment Act
of 1938.
``(B) Other losses.--Losses in area quota pools
shall be offset by reducing the gains of any producer
in such pool by the amount of pool gains attributed to
the same producer from the sale of additional peanuts
for export and domestic edible use.
``(e) Disapproval of Quotas.--Notwithstanding any other provision
of law, no price support may be made available by the Secretary for any
crop of peanuts with respect to which poundage quotas have been
disapproved by producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938.
``(f) Quality Improvement.--
``(1) Price support peanuts.--With respect to peanuts under
price support loan, the Secretary shall--
``(A) promote the crushing of peanuts at a greater
risk of deterioration before peanuts of a lesser risk
of deterioration;
``(B) ensure that all Commodity Credit Corporation
loan stocks of peanuts sold for domestic edible use
must be shown to have been officially inspected by
licensed Department of Agriculture inspectors both as
farmer stock and shelled or cleaned in-shell peanuts;
``(C) continue to endeavor to operate the peanut
price support program so as to improve the quality of
domestic peanuts and ensure the coordination of
activities under the Peanut Administrative Committee
established under Marketing Agreement No. 146,
regulating the quality of domestically produced peanuts
(under the Agricultural Marketing Agreement Act of 1937
(7 U.S.C. 601 et seq.)); and
``(D) ensure that any changes made in the price
support program as a result of this subsection
requiring additional production or handling at the farm
level shall be reflected as an upward adjustment in the
Department of Agriculture loan schedule.
``(2) Exports and other peanuts.--The Secretary shall
require that all peanuts, including peanuts imported into the
United States, meet all U.S. quality standards under Marketing
Agreement No. 146 and that importers of such peanuts fully
comply with inspection, handling, storage and processing
requirements implemented under Marketing Agreement No. 146. The
Secretary shall ensure that peanuts produced for the export
market meet quality, inspection, handling, storage and
processing requirements under Marketing Agreement No. 146.
``(g) Marketing Assessment.--
``(1) In general.--The Secretary shall provide, by
regulation, for a nonrefundable marketing assessment applicable
to each crop of domestically-grown peanuts and peanuts produced
outside the United States. The assessment shall be made in
accordance with this subsection and shall be on a per pound
basis in an amount equal to 1.2 percent of the applicable
support rate under this subsection.
``(2) First purchasers.--
``(A) In general.--Except as provided under
paragraphs (4) and (5), the first purchaser of peanuts
shall--
``(i) collect from the producer a marketing
assessment equal to the quantity of peanuts
acquired multiplied by .65 percent of the
applicable national average support rate;
``(ii) pay, in addition to the amount
collected under clause (i), a marketing
assessment in an amount equal to the quantity
of peanuts acquired multiplied by .55 percent
of the applicable national average support
rate; and
``(iii) remit the amounts required under
clauses (i) and (ii) to the Commodity Credit
Corporation in a manner specified by the
Secretary.
``(B) Definition.--For purposes of this subsection,
the term `first purchaser' means a person acquiring
peanuts from a producer, except that in the case of
peanuts forfeited by a producer to the Commodity Credit
Corporation, such term means the person acquiring the
peanuts from the Commodity Credit Corporation.
``(3) Other peanuts.--Each importer of peanuts for domestic
edible use produced outside of the United States shall remit to
the Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to the product obtained by
multiplying the number of pounds of peanuts imported by the
importer by 1.2 percent of the national average support rate
for domestic edible peanuts.
``(4) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a retail
or wholesale outlet or in the case of a marketing by the
producer outside of the continental United States, the producer
shall be responsible for the full amount of the assessment and
shall remit the assessment by such time as is specified by the
Secretary.
``(5) Loan peanuts.--In the case of peanuts that are
pledged as collateral for a price support loan made under this
section, one-half of the assessment shall be deducted from the
proceeds of the loan. The remainder of the assessment shall be
paid by the first purchaser of the peanuts. For purposes of
computing net gains on peanuts under this section, the
reduction in loan proceeds shall be treated as having been paid
to the producer.
``(6) Penalties.--If any person fails to collect or remit
an assessment required by this subsection or fails to comply
with such requirements for recordkeeping or otherwise as are
required by the Secretary to carry out this subsection, the
person shall be liable to the Secretary for a civil penalty up
to an amount determined by multiplying--
``(A) the quantity of peanuts involved in the
violation; by
``(B) the national average quota peanut price
support level for the applicable crop year.
``(7) Enforcement.--The Secretary may enforce this
subsection in the courts of the United States.
``(h) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1996 through 2002 crops of
peanuts.''.
(f) Reports and Records.--Effective only for the 1996 through 2002
crops of peanuts, the first sentence of section 373(a) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by
inserting before ``all brokers and dealers in peanuts'' the following:
``all producers engaged in the production of peanuts,''.
(g) Suspension of Certain Price Support Provisions.--Section 101 of
the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to
the 1996 through 2002 crops of peanuts.
(h) Regulations.--The Secretary of Agriculture shall issue such
regulations as are necessary to carry out this Act and the amendments
made by this Act. In issuing the regulations, the Secretary--
(1) is encouraged to comply with subchapter II of chapter 5
of title 5, United States Code;
(2) shall provide public notice through the Federal
Register of any such proposed regulations; and
(3) shall allow adequate time for written public comment
prior to the formulation and issuance of any final regulations.
(i) Food, Agriculture, Conservation, and Trade Act of 1990.--Title
VIII of the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 104 Stat. 3459) is amended--
(1) in section 801 (104 Stat. 3459), by striking ``1995''
and inserting ``2000'';
(2) in section 807 (104 Stat. 3478), by striking ``1995''
and inserting ``2000''; and
(3) in section 808 (7 U.S.C. 1441 note), by striking
``1995'' and inserting ``2000''.
SEC. 206. SUGAR PROGRAM.
(a) Assurance of Sugar Supply.--Section 206 of the Agricultural Act
of 1949 (7 U.S.C. 1446g) is amended to read as follows:
``SEC. 206. ASSURANCE OF SUGAR SUPPLY.
``(a) In General.--The price of each crop of sugar beets and
sugarcane, respectively, shall be supported in accordance with this
section.
``(b) Sugarcane.--Subject to subsection (d), the Secretary shall
support the price of domestically grown sugarcane through loans at 18
cents per pound for raw cane sugar.
``(c) Sugar Beets.--Subject to subsection (d), the Secretary shall
support the price of each crop of domestically grown sugar beets
through loans at the level provided for refined beet sugar produced
from the 1995 crop of domestically grown sugar beets.
``(d) Adjustment in Support Level.--
``(1) Downward adjustment in support level.--
``(A) In general.--The Secretary shall decrease the
support price of domestically grown sugarcane and sugar
beets from the price determined for the preceding crop,
as established under this section, if negotiated
reductions in export subsidies and domestic subsidies
provided for sugar of the European Union and other
major sugar growing, producing, and exporting countries
(`major countries') in the aggregate exceed the
commitments made as part of the Uruguay Round
Agreements.
``(B) Extent of reduction.--The Secretary shall not
reduce the support price under this section below a
level that provides an equal measure of support to that
provided by any other major country or customs union
based on an examination of both domestic and export
subsidies subject to reduction in the Agreement on
Agriculture referenced in 19 U.S.C. 3511(d)(2).
``(C) Major countries.--For purposes of this
subsection, the term `major countries' includes all
countries allocated a share of the tariff rate quota
for imported sugars and syrups by the United States
Trade Representative pursuant to additional U.S. note 5
of chapter 17 of the Harmonized Tariff Schedule, all
countries of the European Union, and the People's
Republic of China.
``(2) Increases in support level.--The Secretary may
increase the support level for each crop of domestically grown
sugarcane and sugar beets from the level determined for the
preceding crop based on such factors as the Secretary
determines appropriate, including changes (during the 2 crop
years immediately preceding the crop year for which the
determination is made) in the cost of sugar products, the cost
of domestic sugar production, the amount of any applicable
assessments, and other factors or circumstances that may
adversely affect domestic sugar production.
``(e) Loan Type; Processor Assurances.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall carry out this section through the use of recourse loans.
``(2) Modification.--During any fiscal year in which the
tariff rate quota for imports of sugar into the United States
is set at or is increased to a level that exceeds the minimum
level for such imports committed to by the United States under
the Agreement on Agriculture contained in the Uruguay Round of
Agreements of the General Agreement on Tariffs and Trade, the
Secretary shall carry out this section by making available
nonrecourse loans. Any recourse loan previously made available
by the Secretary under this section during such fiscal year
shall be modified by the Secretary into a nonrecourse loan.
``(3) Processor assurances.--In order to effectively
support the prices of sugar beets and sugarcane received by the
producer, the Secretary shall obtain from each processor that
receives a loan under this section such assurances as the
Secretary considers adequate that, if the Secretary is required
under paragraph (2) to make nonrecourse loans available, or
modify recourse loans into nonrecourse loans, each producer
served by the processor will receive the appropriate minimum
payment for sugar beets and sugarcane delivered by the
producer, as determined by the Secretary.
``(f) Announcements.--In order to ensure the efficient
administration of the program under this section and the effective
support of the price of sugar, the Secretary shall announce the type of
loans available and the loan rates for beet sugar and cane sugar for
any fiscal year under this section as far in advance as is practicable.
``(g) Loan Term.--
``(1) In general.--Except as provided in paragraph (2) and
subsection (h), loans under this section during any fiscal year
shall be made available not earlier than the beginning of the
fiscal year and shall mature at the end of 3 months.
``(2) Extension.--The maturity of a loan under this section
may be extended for up to 2 additional 3-month periods, at the
option of the borrower, upon written request to the Commodity
Credit Corporation. The maturity of a loan may not be extended
under this paragraph beyond the end of the fiscal year.
``(h) Supplementary Loans.--Subject to subsection (d), the
Secretary shall make available to eligible processors price support
loans with respect to sugar processed from sugar beets and sugarcane
harvested in the last 3 months of a fiscal year. Such loans shall
mature at the end of the fiscal year. The processor may repledge the
sugar as collateral for a price support loan in the subsequent fiscal
year, except that the second loan shall--
``(1) be made at the loan rate in effect at the time the
second loan is made; and
``(2) mature in not more than 9 months less the quantity of
time that the first loan was in effect.
``(i) Use of Commodity Credit Corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
``(j) Marketing Assessments.--The following assessments shall be
collected with respect to all sugar marketed within the United States
during the 1996 through 2003 fiscal years:
``(1) Beet sugar.--The first seller of beet sugar produced
from sugar beets or sugar beet molasses, or refined sugar
refined outside of the United States, shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to 1.1794 percent of the loan
level established under subsection (b) per pound of sugar
marketed.
``(2) Cane sugar.--The first seller of raw cane sugar
produced from sugarcane or sugarcane molasses, shall remit to
the Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to 1.1 percent of the loan level
established under subsection (b) per pound of sugar marketed
(including the transfer or delivery of the sugar to a refinery
for further processing or marketing).
``(3) Collection.--
``(A) Timing.--Marketing assessments required under
this subsection shall be collected and remitted to the
Commodity Credit Corporation within 30 days of the date
that the sugar is marketed.
``(B) Manner.--Subject to subparagraph (A),
marketing assessments shall be collected under this
subsection in the manner prescribed by the Secretary
and shall be nonrefundable.
``(4) Penalties.--If any person fails to remit an
assessment required by this subsection or fails to comply with
such requirements for recordkeeping or otherwise as are
required by the Secretary to carry out this subsection, the
person shall be liable to the Secretary for a civil penalty up
to an amount determined by multiplying--
``(A) the quantity of sugar involved in the
violation; by
``(B) the loan level for the applicable crop of
sugarcane or sugar beets from which the sugar is
produced.
For the purposes of this paragraph, refined sugar shall be treated
as produced from sugar beets.
``(5) Enforcement.--The Secretary may enforce this
subsection in the courts of the United States.
``(6) Regulations.--The Secretary shall promulgate
regulations to carry out this subsection.
``(k) Information Reporting.--
``(1) Duty of processors and refiners to report.--All
sugarcane processors, cane sugar refiners, and sugar beet
processors shall furnish the Secretary, on a monthly basis,
such information as the Secretary may require to administer
sugar programs, including the quantity of purchases of
sugarcane, sugar beets, and sugar, and production, importation,
distribution, and stock levels of sugar.
``(2) Duty of producers to report.--In order to efficiently
and effectively carry out the program under this section, the
Secretary may require a producer of sugarcane or sugar beets to
report, in the manner prescribed by the Secretary, the
producer's sugarcane or sugar beet yields and acres planted to
sugarcane or sugar beets, respectively.
``(3) Penalty.--Any person willfully failing or refusing to
furnish the information, or furnishing willfully any false
information, shall be subject to a civil penalty of not more
than $10,000 for each such violation.
``(4) Monthly reports.--Taking into consideration the
information received under paragraph (1), the Secretary shall
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
``(l) Sugar Estimates.--
``(1) Domestic requirement.--Before the beginning of each
fiscal year, the Secretary shall estimate the domestic sugar
requirement of the United States equal to Total Estimated
Disappearance minus the quantity of sugar that will be
available from carry-in stocks.
``(2) Total disappearance.--For the purposes of this
subsection, the term `total estimated disappearance' means the
quantity of sugar, as estimated by the Secretary, that will be
consumed in the United States during the fiscal year (other
than sugar imported for the production of polyhydric alcohol or
to be refined and reexported in refined form or in sugar
containing products) plus the quantity of sugar that would
provide for adequate carryover stocks.
``(3) Quarterly reestimates.--The Secretary shall make
quarterly reestimates of sugar consumption, stocks, production,
and imports for a fiscal year no later than the beginning of
each of the second through fourth quarters of the fiscal year.
``(m) Definition of Market.--For purposes of this section, the term
`market' means to sell or otherwise dispose of in commerce in the
United States (including, with respect to any integrated processor and
refiner, the movement of raw cane sugar into the refining process) and
deliver to a buyer.
``(n) Crops.--This section shall be effective only for the 1996
through 2002 crops of sugar beets and sugarcane.''.
(b) Conforming Amendment.--Part VII ob subtitle B of title III of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa, et seq.) is
repealed.
SEC. 207. EFFECT OF AMENDMENTS ON 1991 THROUGH 1995 CROPS.
The amendments made by this tile shall not affect the authority of
the Secretary of Agriculture to carry out a price support, production
adjustment, or payment program for any of the 1991 through 1995 crops
of an agricultural commodity established under a provision of law as in
effect immediately before the enactment of this Act.
TITLE III--GENERAL COMMODITY PROVISIONS
SEC. 301. EXTENSION OF SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION
AUTHORITY.
Section 113 of the Agricultural Act of 1949 (7 U.S.C. 1445h) is
amended by striking ``1995'' and inserting ``2002''.
SEC. 302. EXTENSION OF DEFICIENCY AND LAND DIVERSION PAYMENTS.
Section 114 of the Agricultural Act of 1949 (7 U.S.C. 1445j) is
amended--
(1) in subsections (a)(1) and (c), by striking ``1997''
each place it appears and inserting ``2002''; and
(2) in subsection (b), by striking ``1995'' and inserting
``2002''.
SEC. 303. EXTENSION OF AUTHORITY TO ADJUST ESTABLISHED PRICES.
Section 402(b) of the Agricultural Act of 1949 (7 U.S.C. 1422(b))
is amended by striking ``1995'' and inserting ``2002''.
SEC. 304. EXTENSION OF LIMITATION ON ADJUSTMENTS OF SUPPORT PRICES.
Section 403(c) of the Agricultural Act of 1949 (7 U.S.C. 1423(c))
is amended by striking ``1995'' and inserting ``2002''.
SEC. 305. EXTENSION OF OPTION TO EXTEND PROGRAMS.
Section 406(b) of the Agricultural Act of 1949 (7 U.S.C. 1426(b))
is amended--
(1) by striking ``1995'' each place it appears and
inserting ``2002'';
(2) by striking ``1996'' each place it appears and
inserting ``2003''; and
(3) in paragraph (4), by striking ``November 28, 1990'' and
inserting ``January 1, 1995''.
SEC. 306. REFERENCES TO TERMS REGARDING PRICE SUPPORT.
Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C.
1428(k)(3)) is amended by striking ``1995'' and inserting ``2002''.
SEC. 307. EXTENSION OF ACREAGE BASE AND YIELD SYSTEM.
Title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is
amended--
(1) in subsections (c)(3) and (h)(2)(A) of section 503 (7
U.S.C. 1463), by striking ``1997'' each place it appears and
inserting ``2002'';
(2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C.
1465(b)), by striking ``1997'' each place it appears and
inserting ``2002''; and
(3) in section 509 (7 U.S.C. 1469), by striking ``1997''
and inserting ``2002''.
SEC. 308. NORMALLY PLANTED ACREAGE.
Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C.
1309) is amended in subsections (a), (b)(1), and (c) by striking
``1995'' each place it appears and inserting ``2002''.
SEC. 309. EXTENSION OF NATIONAL AGRICULTURAL COST OF PRODUCTION
STANDARDS REVIEW BOARD.
Section 1014 of the Agriculture and Food Act of 1981 (7 U.S.C.
4110) is amended by striking ``1995'' and inserting ``2002''.
SEC. 310. EXTENSION OF PAYMENT LIMITATIONS.
Title X of the Food Security Act of 1985 (Public Law 99-198; 99
Stat. 1444) is amended--
(1) in paragraphs (1)(A), (1)(B), and (2)(A) of section
1001 (7 U.S.C. 1308), by striking ``1997'' each place it
appears and inserting ``2002''; and
(2) in section 1001C(a) (7 U.S.C. 1308-3(a)), by striking
``1997'' both places it appears and inserting ``2002''.
SEC. 311. EXTENSION OF REQUIREMENTS FOR NOTICE AND PUBLIC PARTICIPATION
IN SECRETARY DETERMINATIONS.
Section 1017(b) of the Food Security Act of 1985 (7 U.S.C. 1385
note) is amended by striking ``1995'' and inserting ``2002''.
SEC. 312. DETERMINATION OF NORMAL SUPPLY.
Section 1019 of the Food Security Act of 1985 (7 U.S.C. 1310a) is
amended by striking ``1995'' and inserting ``2002''.
SEC. 313. EXTENSION OF OPTIONS PILOT PROGRAM.
The Options Pilot Program Act of 1990 (subtitle E of title XI of
Public Law 101-624; 104 Stat. 3518; 7 U.S.C. 1421 note) is amended--
(1) in subsections (a) and (b) of section 1153, by striking
``1995'' each place it appears and inserting ``2002''; and
(2) in section 1154(b)(1)(A), by striking ``1995'' both
places it appears and inserting ``2002''.
TITLE IV--REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM
SEC. 401. REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM.
(a) Repeal.--The Emergency Livestock Feed Assistance Act of 1988
(title VI of the Agricultural Act of 1949; 7 U.S.C. 1471-1471j) is
repealed.
(b) Effect of Repeal on Approved Applications for Assistance.--The
repeal of the Emergency Livestock Feed Assistance Act of 1988 by
subsection (a) shall not affect the provision of payments or benefits
under such Act pursuant to a completed application approved by the
Secretary of Agriculture before the date of the enactment of this Act.
The Emergency Livestock Feed Assistance Act of 1988, as in effect on
the day before the date of the enactment of this Act, shall continue to
apply to the provision of payments or benefits pursuant to such an
application.
TITLE V--FEDERAL CROP INSURANCE
SEC. 501. CONVERSION OF CATASTROPHIC RISK PROTECTION PROGRAM TO A
VOLUNTARY PROGRAM.
Section 508(b)(7) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)(7)) is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Exception.--Notwithstanding subparagraph (A),
a producer may decline to obtain catastrophic risk
protection, yet remain eligible for any price support
or production adjustment program, the conservation
reserve program, or any benefit described in section
371 of the Consolidated Farm and Rural Development Act,
if the producer agrees in writing to waive any
eligibility for emergency crop loss assistance in
connection with losses to any crop for which the
producer declines to obtain catastrophic risk
protection.''.
TITLE VI--MISCELLANEOUS PROGRAMS
SEC. 601. REDUCTION IN FUNDING LEVELS FOR EXPORT ENHANCEMENT PROGRAM.
Section 301(e) of the Trade Act of 1978 (7 U.S.C. 5651(e)) is
amended by striking paragraph (1) and inserting the following new
paragraph:
``(1) In general.--To carry out the program established
under this section, the Commodity Credit Corporation shall make
available--
``(A) for each of the fiscal years 1991 through
1995, not less than $500,000,000 of the funds or
commodities of the Commodity Credit Corporation; and
``(B) for each of the fiscal years 1996 through
2002, not more than $400,000,000 of the funds or
commodities of the Commodity Credit Corporation.''.
SEC. 602. SPENDING LIMITATIONS ON CONSERVATION RESERVE PROGRAM.
Title XII of the Food Security Act of 1985 is amended by inserting
after section 1236 (16 U.S.C. 3836) the following new section:
``SEC. 1236A. SPENDING LIMITATIONS ON CONSERVATION RESERVE PROGRAM.
``The Secretary shall ensure that expenditures under this
subchapter for the conservation reserve program do not exceed the
following amounts:
``(1) $1,852,000,000 during fiscal year 1997.
``(2) $1,385,000,000 during fiscal year 1998.
``(3) $1,106,000,000 during fiscal year 1999.
``(4) $918,000,000 during fiscal year 2000.
``(5) $779,000,000 during fiscal year 2001.
``(6) $753,000,000 during fiscal year 2002.''.
TITLE VII--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
SEC. 701. 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. 702. 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. 703. 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 success of farm programs under 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. 704. 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 703(a).
(b) 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 703(b).
SEC. 705. 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. 706. 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. 707. 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. 708. TERMINATION OF COMMISSION.
The Commission shall terminate upon submission of the final report
required by section 704.
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