[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Engrossed in House (EH)]
2d Session
H. R. 2854
_______________________________________________________________________
AN ACT
To modify the operation of certain agricultural programs.
104th CONGRESS
2d Session
H. R. 2854
_______________________________________________________________________
AN ACT
To modify the operation of certain agricultural programs.
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
Market Transition Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM
Sec. 101. Purpose.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Elimination of permanent price support authority.
Sec. 110. Effect of amendments.
TITLE II--DAIRY
Sec. 201. Milk price support program.
Sec. 202. Consolidation and reform of federal milk marketing orders.
Sec. 203. Dairy export incentive program.
Sec. 204. Effect on fluid milk standards in the State of California.
Sec. 205. Repeal of milk manufacturing marketing adjustment.
Sec. 206. Promotion.
TITLE III--CONSERVATION
Sec. 301. Conservation.
Sec. 302. Wetlands reserve program.
Sec. 303. Elimination of consultation requirements with Sectary of the
Interior.
Sec. 304. Environmental conservation acreage reserve program.
Sec. 305. Conservation reserve program.
TITLE IV--AGRICULTURAL PROMOTION AND EXPORT PROGRAMS
Subtitle A--Agricultural Promotion and Export Enhancement Programs
Sec. 401. Market promotion program.
Sec. 402. Export enhancement program.
Subtitle B--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
Sec. 411. Food aid to developing countries.
Sec. 412. Trade and development assistance.
Sec. 413. Agreements regarding eligible countries and private entities.
Sec. 414. Terms and conditions of sales.
Sec. 415. Use of local currency payment.
Sec. 416. Eligible organizations.
Sec. 417. Generation and use of foreign currencies.
Sec. 418. General levels of assistance under Public Law 480.
Sec. 419. Food aid consultative group.
Sec. 420. Support of nongovernmental organizations.
Sec. 421. Commodity determinations.
Sec. 422. General provisions.
Sec. 423. Agreements.
Sec. 424. Administrative provisions.
Sec. 425. Expiration date.
Sec. 426. Regulations.
Sec. 427. Independent evaluation of programs.
Sec. 428. Authorization of appropriations.
Sec. 429. Coordination of foreign assistance programs.
Sec. 430. Use of certain local currency.
Sec. 431. Level of assistance to farmer to farmer program.
Sec. 432. Food security commodity reserve.
Sec. 433. Food for progress program.
Subtitle C--Amendments to Agricultural Trade Act of 1978
Sec. 451. Agricultural export promotion stragegy.
Sec. 452. Export credits.
Sec. 453. Export program and food assistance transfer authority.
Sec. 454. Arrival certification.
Sec. 455. Regulations.
Sec. 456. Foreign agricultural service.
Sec. 457. Reports.
Subtitle D--Miscellaneous
Sec. 471. Reporting requirements relating to tobacco.
Sec. 472. Triggered export enhancement.
Sec. 473. Disposition of commodities to prevent waste.
Sec. 474. Debt-for-health-and-protection swap.
Sec. 475. Policy on expansion of international markets.
Sec. 476. Policy on maintenance and development of export markets.
Sec. 477. Policy on trade liberalization.
Sec. 478. Agricultural trade negotiations.
Sec. 479. Policy on unfair trade practices.
Sec. 480. Agricultural aid and trade missions.
Sec. 481. Annual reports by agricultural attaches.
Sec. 482. World livestock market price information.
Sec. 483. Orderly liquidation of stocks.
Sec. 484. Sales of extra long staple cotton.
Sec. 485. Regulations.
Sec. 486. Emerging markets.
Sec. 487. Implementation of commitments under Uruguay Round Agreements.
Sec. 488. Sense of Congress concerning multilateral disciplines on
credit guarantees.
Sec. 489. Foreign market development cooperator program.
Subtitle E--Dairy Exports
Sec. 491. Dairy export incentive program.
Sec. 492. Authority to assist in establishment and maintenance of
export trading company.
Sec. 493. Standby authority to indicate entity best suited to provide
international market development and export
services.
Sec. 494. Study and report regarding potential impact of Urguay Round
on prices, income and government purchases.
Sec. 495. Promotion of United States dairy products in international
markets through dairy promotion program.
TITLE V--MISCELLANEOUS
Sec. 501. Crop insurance.
Sec. 502. Collection and use of agricultural quarantine and inspection
fees.
Sec. 503. Commodity Credit Corporation interest rate.
Sec. 504. Establishment of Office of Risk Management.
Sec. 505. Business Interruption Insurance Program.
Sec. 506. Continuation of options pilot program.
Sec. 507. Everglades agricultural area.
Sec. 508. Sense of Congress regarding purchase of American-made
equipment and products; requirement
regarding notice.
TITLE VI--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
Sec. 601. Establishment.
Sec. 602. Composition.
Sec. 603. Comprehensive review of past and future of production
agriculture.
Sec. 604. Reports.
Sec. 605. Powers.
Sec. 606. Commission procedures.
Sec. 607. Personnel matters.
Sec. 608. Termination of Commission.
TITLE VII--EXTENSION OF CERTAIN AUTHORITIES
Sec. 701. Extension of authority under Public Law 480.
Sec. 702. Extension of food for progress program.
TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM
SEC. 101. PURPOSE.
It is the purpose of this title--
(1) to authorize the use of binding production flexibility
contracts between the United States and agricultural producers
to support farming certainty and flexibility while ensuring
continued compliance with farm conservation compliance plans
and wetland protection requirements;
(2) to make nonrecourse marketing assistance loans and loan
deficiency available for certain crops;
(3) to improve the operation of farm programs for peanuts
and sugar; and
(4) to terminate price support authority under the
Agricultural Act of 1949.
SEC. 102. DEFINITIONS.
In this title:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect
prior to the amendment made by section 109(b)(2)) and such
other acreage as the Secretary considers fair and equitable.
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 103.
(3) Contract acreage.--The term ``contract acreage'' means
1 or more crop acreage bases established for contract
commodities under title V of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section 109(b)(2))
that would have been in effect for the 1996 crop (but for the
amendment made by section 109(b)(2)).
(4) Contract commodity.--The term ``contract commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
and rice.
(5) Contract payment.--The term ``contract payment'' means
a payment made under section 103 pursuant to a contract.
(6) Department.--The term ``Department'' means the United
States Department of Agriculture.
(7) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
section 505 of the Agricultural Act of 1949 (as in effect prior
to the amendment made by section 109(b)(2)) The Secretary shall
adjust the farm program payment yield for the 1995 crop of a
contract commodity to account for any additional yield payments
made with respect to that crop under subsection (b)(2) of the
section.
(8) Loan commodity.--The term ``loan commodity'' means each
contract commodity, extra long staple cotton, and oilseeds.
(9) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary,
other oilseeds.
(10) Producer.--The term ``producer'' means an owner,
landlord, tenant, or sharecropper who shares in the risk of
producing a crop and who is entitled to share in the crop
available for marketing from the farm, or would have shared had
the crop been produced. In determining whether a grower of
hybrid seed is a producer, the Secretary shall not take into
consideration the existence of a hybrid seed contract.
(11) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(12) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(13) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable
after the date of the enactment of this title, the Secretary
shall offer to enter into a contract with an eligible owner or
operator described in paragraph (2) on a farm containing
eligible farmland. Under the terms of a contract, the owner or
operator shall agree, in exchange for annual contract payments,
to--
(A) comply with the conservation plan for the farm
prepared in accordance with section 1212 of the Food
Security Act of 1985 (16 U.S.C. 3812);
(B) comply with wetland protection requirements
applicable to the farm under subtitle C of title XII of
the Act (16 U.S.C. 3821 et seq.); and
(C) comply with the planting flexibility
requirements of subsection (j); and
(D) to use the land subject to the contract for
agricultural or related activities, but not for
nonagricultural commercial or industrial uses.
(2) Eligible owners and operators described.--The producers
and owners described in this paragraph shall be eligible to
enter into a contract:
(A) An owner of eligible farmland who assumes all
of the risk of producing a crop.
(B) An owner of eligible farmland who shares in the
risk of producing a crop.
(C) An operator of eligible farmland with a share-
rent lease of the eligible farmland, regardless of the
length of the lease, if the owner enters into the same
contract.
(D) An operator of eligible farmland who cash rents
the eligible farmland under a lease expiring on or
after September 30, 2002, in which case the consent of
the owner is not required.
(E) An operator of eligible farmland who cash rents
the eligible farmland under a lease expiring before
September 30, 2002, if the owner consents to the
contract.
(F) An owner of eligible farmland who cash rents
the eligible farmland and the lease term expires before
September 30, 2002, but only if the actual operator of
the farm declines to enter into a contract. In the case
of an owner covered by this subparagraph, contract
payments shall not begin under a contract until the
fiscal year following the fiscal year in which the
lease held by the nonparticipating operator expires.
(G) An owner or operator described in any preceding
subparagraph of this paragraph regardless of whether
the owner or operator purchased catastrophic risk
protection for a fall-planted 1996 crop under section
508(b) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)).
(3) Tenants and sharecroppers.--In carrying out this
section, the Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph
(B), the Secretary may not enter into a contract after
April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each
fiscal year, the Secretary shall allow an
eligible owner or operator on a farm covered by
a conservation reserve contract entered into
under section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) that terminates after the
date specified in subparagraph (A) to enter
into or expand a production flexibility
contract to cover the contract acreage of the
farm that was subject to the former
conservation reserve contract.
(ii) Amount.--Contract payments made for
contract acreage under this subparagraph shall
be made at the rate and amount applicable to
the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity;
or
(ii) in the case of acreage that was
subject to a conservation reserve contract
described in paragraph (1)(B), the date the
production flexibility contract was entered
into or expanded to cover the acreage.
(B) Ending date.--A contract shall extend through
the 2002 crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to be
made during at least the first fiscal year for which contract
payments will be made.
(c) Eligible Farmland Described.--Land shall be considered to be
farmland eligible for coverage under a contract only if the land has
contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
whose term expired, or was voluntarily terminated, on or after
January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in subsection
(b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal years 1996
through 2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner
or operator, 50 percent of the contract payment for
fiscal year 1996 shall be made not later than June 15,
1996.
(B) Subsequent fiscal years.--At the option of the
owner or operator for fiscal year 1997 and each
subsequent fiscal year, 50 percent of the annual
contract payment shall be made on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal Year.--
(1) In general.--The Secretary shall, to the maximum extent
practicable, expend on a fiscal year basis the following
amounts to satisfy the obligations of the Secretary under all
contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal
year under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for a
particular fiscal year by--
(A) adding an amount equal to the sum of all
repayments of deficiency payments received under
section 114(a)(2) of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section
109(b)(2)) for the commodity;
(B) to the maximum extent practicable, adding an
amount equal to the sum of all contract payments
withheld by the Secretary, at the request of an owner
or operator subject to a contract, as an offset against
repayments of deficiency payments otherwise required
under section 114(a)(2) of the Act (as so in effect)
for the commodity;
(C) adding an amount equal to the sum of all
refunds of contract payments received during the
preceding fiscal year under subsection (h) of this
section for the commodity; and
(D) subtracting an amount equal to the amount, if
any, necessary during that fiscal year to satisfy
payment requirements for the commodity under sections
103B, 105B, or 107B of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section
109(b)(2)) for the 1994 and 1995 crop years.
(4) Special adjustment to cover existing rice payment
requirements.--As soon as possible after the date of the
enactment of this Act, the Secretary shall determine the
amount, if any, necessary to satisfy remaining payment
requirements under section 101B of the Agricultural Act of 1949
(as in effect prior to the amendment made by section 109(b)(2))
for the 1994 and 1995 crops of rice. The total amount
determined under this paragraph shall be deducted, in equal
amounts each fiscal year, from the amount allocated for rice
under paragraph (2)(G) for fiscal years after the fiscal year
in which the final remaining payments are made for rice.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--
For each contract, the payment quantity of a contract commodity
for each fiscal year shall be equal to the product of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e)
for the contract commodity for the fiscal year; divided
by
(B) the amount determined under paragraph (2) for
the fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph
(1) with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--The provisions of
section 8(g) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(g)) (relating to assignment of payments)
shall apply to contract payments under this subsection. The
owner or operator making the assignment, or the assignee, shall
provide the Secretary with notice, in such manner as the
Secretary may require in the contract, of any assignment made
under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--Sections 1001 through 1001C of the
Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3), as amended by
section 105, establish payment limitations on the total amount of
contract payments that may be made under contracts during any fiscal
year.
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in
paragraph (2), if an owner or operator subject to a contract
violates a requirement of the contract specified in
subparagraphs (A), (B), (C), or (D) of subsection (a)(1), the
Secretary shall terminate the contract with respect to the
owner or operator on each farm in which the owner or operator
has an interest. On the termination, the owner or operator
shall forfeit all rights to receive future contract payments on
each farm in which the owner or operator has an interest and
shall refund to the Secretary all contract payments received by
the owner or operator during the period of the violation,
together with interest on the contract payments as determined
by the Secretary.
(2) Refund or adjustment.--If the Secretary determines that
a violation does not warrant termination of the contract under
paragraph (1), the Secretary may require the owner or operator
subject to the contract--
(A) to refund to the Secretary that part of the
contract payments received by the owner or operator
during the period of the violation, together with
interest on the contract payments as determined by the
Secretary; or
(B) to accept a reduction in the amount of future
contract payments that is proportionate to the severity
of the violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a
contract may not be required to make repayments to the
Secretary of amounts received under the contract if the
contract acreage has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate in
order to provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner or
operator under the contract if the owner or operator continues
or resumes operation, or control, of the contract acreage. On
the resumption of operation or control over the contract
acreage by the owner or operator, the provisions of the
contract in effect on the date of the foreclosure shall apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph
(2), the transfer by an owner or operator subject to a contract
of the right and interest of the owner or operator in the
contract acreage shall result in the termination of the
contract with respect to the acreage, effective on the date of
the transfer, unless the transferee of the acreage agrees with
the Secretary to assume all obligations of the contract. At the
request of the transferee, the Secretary may modify the
contract if the modifications are consistent with the
objectives of this section as determined by the Secretary. The
Secretary shall carry out this paragraph in such a manner as to
ensure that the reconstitution of a farm as part of the
transfer of contract acreage results in no additional outlays
under this section.
(2) Exception.--If an owner or operator who is entitled to
a contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed by
the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2), any
commodity or crop may be planted on contract acreage on a farm.
(2) Limitations.--
(A) Haying and grazing.--
(i) Time limitations.--Haying and grazing
on land exceeding 15 percent of the contract
acreage on a farm as provided in clause (iii)
shall be permitted, except during any
consecutive 5-month period between April 1 and
October 31 that is determined by the State
committee established under section 8(b) of the
Soil Conservation and Domestic Allotment Act (6
U.S.C. 590h(b)) for a State. In the case of a
natural disaster, the Secretary may permit
unlimited haying and grazing on the contract
acreage of a farm.
(ii) Contract commodities.--Contract
acreage planted to a contract commodity for
harvest may be hayed or grazed at any time
without limitation.
(iii) Haying and grazing limitation on
portion or contract acreage.--Unlimited haying
and grazing shall be permitted on not more than
15 percent of the contract acreage on a farm.
(B) Alfalfa.--Alfalfa may be grown on contract
acreage in excess of the acreage limitation in
subparagraph (A)(iii) and without regard to the time
limitation in subparagraph (A)(i), except that each
contract acre of alfalfa on a farm that is harvested in
excess of 15 percent of the total contract acreage on
the farm shall be ineligible for contract payments.
(C) Fruits and vegetables.--
(i) In general.--The planting for harvest
of fruits and vegetables shall be prohibited on
contract acreage, except in any region in which
there is a history of double-cropping, as
determined by the Secretary.
(ii) Unrestricted vegetables.--
Notwithstanding clause (i), lentils, mung
beans, and dry peas may be planted for harvest
without limitation on contract acreage.
SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY
PAYMENTS.
(a) Availability of Marketing Assistance Loans.--
(1) Nonrecourse loans available.--For each of the 1996
through 2002 crops of each loan commodity, the Secretary shall
make available to producers on a farm nonrecourse marketing
assistance loans for loan commodities produced on the farm. The
loans shall be made under terms and conditions that are
prescribed by the Secretary and at the loan rate established
under subsection (b) for the loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under paragraph (1):
(A) In the case of a marketing assistance loan for
a contract commodity, any production by a producer who
has entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for
extra long staple cotton and oilseeds, any production.
(3) Recourse loans for high moisture feed grains.--
(A) Recourse loans available.--For each of the 1996
through 2002 crops of corn and grain sorghum, the
Secretary shall make available recourse loans, as
determined by the Secretary, to producers on a farm
who--
(i) normally harvest all or a portion of
their crop of corn or grain sorghum in a high
moisture state;
(ii) present--
(I) certified scale tickets from an
inspected, certified commercial scale,
including licensed warehouses,
feedlots, feed mills, distilleries, or
other similar entities approved by the
Secretary, pursuant to regulations
issued by the Secretary; or
(II) present field or other
physical measurements of the standing
or stored crop in regions of the
country, as determined by the
Secretary, that do not have certified
commercial scales from which certified
scale tickets may be obtained within
reasonable proximity of harvest
operation;
(iii) certify that they were the owners of
the feed grain at the time of delivery to, and
that the quantity to be placed under loan under
this paragraph was in fact harvested on the
farm and delivered to, a feedlot, feed mill, or
commercial or on-farm high-moisture storage
facility, or to such facilities maintained by
the users of corn and grain sorghum in a high
moisture state; and
(iv) comply with deadlines established by
the Secretary for harvesting the corn or grain
sorghum and submit applications for loans under
this paragraph within deadlines established by
the Secretary.
(B) Eligibility of acquired feed grains.--Loans
under this paragraph shall be made on a quantity of
corn or grain sorghum of the same crop acquired by the
producer equivalent to a quantity determined by
multiplying--
(i) the acreage of the corn or grain
sorghum in a high moisture state harvested on
the producer's farm; by
(ii) the lower of the farm program payment
yield or the actual yield on a field, as
determined by the Secretary, that is similar to
the field from which the corn or grain sorghum
was obtained.
(C) High moisture state defined.--In this
paragraph, the term ``high moisture state'' means corn
or grain sorghum having a moisture content in excess of
Commodity Credit Corporation standards for marketing
assistance loans made by the Secretary under paragraph
(1).
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan under
subsection (a)(1) for wheat shall be--
(i) not less than 85 percent of the simple
average price received by producers of wheat,
as determined by the Secretary, during the
marketing years for the immediately preceding 5
crops of wheat, excluding the year in which the
average price was the highest and the year in
which the average price was the lowest in the
period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the
Secretary estimates for any marketing year that the
ratio of ending stocks of wheat to total use for the
marketing year will be--
(i) equal to or greater than 30 percent,
the Secretary may reduce the loan rate for
wheat for the corresponding crop by an amount
not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than
15 percent, the Secretary may reduce the loan
rate for wheat for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(iii) less than 15 percent, the Secretary
may not reduce the loan rate for wheat for the
corresponding crop.
(C) No effect on future years.--Any reduction in
the loan rate for wheat under subparagraph (B) shall
not be considered in determining the loan rate for
wheat for subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph
(B), the loan rate for a marketing assistance loan
under subsection (a)(1) for corn shall be--
(i) not less than 85 percent of the simple
average price received by producers of corn, as
determined by the Secretary, during the
marketing years for the immediately preceding 5
crops of corn, excluding the year in which the
average price was the highest and the year in
which the average price was the lowest in the
period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the
Secretary estimates for any marketing year that the
ratio of ending stocks of corn to total use for the
marketing year will be--
(i) equal to or greater than 25 percent,
the Secretary may reduce the loan rate for corn
for the corresponding crop by an amount not to
exceed 10 percent in any year;
(ii) less than 25 percent but not less than
12.5 percent, the Secretary may reduce the loan
rate for corn for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(iii) less than 12.5 percent the Secretary
may not reduce the loan rate for corn for the
corresponding crop.
(C) No effect on future years.--Any reduction in
the loan rate for corn under subparagraph (B) shall not
be considered in determining the loan rate for corn for
subsequent years.
(D) Other feed grains.--The loan rate for a
marketing assistance loan under subsection (a)(1) for
grain sorghum, barley, and oats, respectively, shall be
established at such level as the Secretary determines
is fair and reasonable in relation to the rate that
loans are made available for corn, taking into
consideration the feeding value of the commodity in
relation to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan under
subsection (a)(1) for upland cotton shall be
established by the Secretary at such loan rate, per
pound, as will reflect for the base quality of upland
cotton, as determined by the Secretary, at average
locations in the United States a rate that is not less
than the smaller of--
(i) 85 percent of the average price
(weighted by market and month) of the base
quality of cotton as quoted in the designated
United States spot markets during 3 years of
the 5-year period ending July 31 in the year in
which the loan rate is announced, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period; or
(ii) 90 percent of the average, for the 15-
week period beginning July 1 of the year in
which the loan rate is announced, of the 5
lowest-priced growths of the growths quoted for
Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average
difference during the period April 15 through
October 15 of the year in which the loan is
announced between the average Northern European
price quotation of such quality of cotton and
the market quotations in the designated United
States spot markets for the base quality of
upland cotton), as determined by the Secretary.
(B) Limitations.--The loan rate for a marketing
assistance loan for upland cotton shall not be less
than $0.50 per pound or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a
marketing assistance loan under subsection (a)(1) for extra
long staple cotton shall be--
(A) not less than 85 percent of the simple average
price received by producers of extra long staple
cotton, as determined by the Secretary, during 3 years
of the 5 previous marketing years, excluding the year
in which the average price was the highest and the year
in which the average price was the lowest in the
period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
under subsection (a)(1) for rice shall be $6.50 per
hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing
assistance loan under subsection (a)(1) for soybeans
shall be $4.92 per bushel.
(B) Sunflower seed, canola, rapeseed, safflower,
mustard seed, and flaxseed.--The loan rates for a
marketing assistance loan under subsection (a)(1) for
sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed, individually, shall be $0.087 per
pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan under subsection (a)(1) for other
oilseeds shall be established at such level as the
Secretary determines is fair and reasonable in relation
to the loan rate available for soybeans, except in no
event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for
soybeans on a per-pound basis for the same crop.
(c) Term of Loan.--In the case of each loan commodity (other than
upland cotton or extra long staple cotton), a marketing assistance loan
under subsection (a)(1) shall have a term of 9 months beginning on the
first day of the first month after the month in which the loan is made.
A marketing assistance loan for upland cotton or extra long staple
cotton shall have a term of 10 months beginning on the first day of the
first month after the month in which the loan is made. The Secretary
may not extend the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates generally.--The Secretary shall permit
producers to repay a marketing assistance loan under subsection
(a)(1) for a loan commodity (other than extra long staple
cotton) at a level that is the lesser of--
(A) the loan rate established for the commodity
under subsection (b); or
(B) the prevailing world market price for the
commodity (adjusted to United States quality and
location), as determined by the Secretary.
(2) Additional repayment rates for wheat, feed grains, and
oilseeds.--In the case of a marketing assistance loan under
subsection (a)(1) for wheat, corn, grain sorghum, barley, oats,
or oilseeds, the Secretary shall also permit a producer to
repay the loan at such level as the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity; and
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
(3) Repayment rates for extra long staple cotton.--
Repayment of a marketing assistance loan for extra long staple
cotton shall be at the loan rate established for the commodity
under subsection (b), plus interest (as determined by the
Secretary).
(4) Prevailing world market price.--For purposes of
paragraph (1) and subsection (f), the Secretary shall prescribe
by regulation--
(A) a formula to determine the prevailing world
market price for each loan commodity, adjusted to
United States quality and location; and
(B) a mechanism by which the Secretary shall
announce periodically the prevailing world market price
for each loan commodity.
(5) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31,
2003, the prevailing world market price for upland
cotton (adjusted to United States quality and location)
established under paragraph (4) shall be further
adjusted if--
(i) the adjusted prevailing world market
price is less than 115 percent of the loan rate
for upland cotton established under subsection
(b), as determined by the Secretary; and
(ii) the Friday through Thursday average
price quotation for the lowest-priced United
States growth as quoted for Middling (M) 1\3/
32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through
Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered
C.I.F. Northern Europe (referred to in this
subsection as the ``Northern Europe price'').
(B) Further adjustment.--Except as provided in
subparagraph (C), the adjusted prevailing world market
price for upland cotton shall be further adjusted on
the basis of some or all of the following data, as
available:
(i) The United States share of world
exports.
(ii) The current level of cotton export
sales and cotton export shipments.
(iii) Other data determined by the
Secretary to be relevant in establishing an
accurate prevailing world market price for
upland cotton (adjusted to United States
quality and location).
(C) Limitation on further adjustment.--The
adjustment under subparagraph (B) may not exceed the
difference between--
(i) the Friday through Thursday average
price for the lowest-priced United States
growth as quoted for Middling 1\3/32\-inch
cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a)(1) with respect to a loan
commodity, agree to forgo obtaining the loan for the commodity
in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under
paragraph (3) for the loan commodity; by
(B) the quantity of the loan commodity that the
producers on a farm are eligible to place under loan
but for which the producers forgo obtaining the loan in
return for payments under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b)
for the loan commodity; exceeds
(B) the rate at which a loan for the commodity may
be repaid under subsection (d).
(4) Exception for extra long staple cotton.--This
subsection shall not apply with respect to extra long staple
cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during
the period ending July 31, 2003, the Secretary shall
issue marketing certificates or cash payments to
domestic users and exporters for documented purchases
by domestic users and sales for export by exporters
made in the week following a consecutive 4-week period
in which--
(i) the Friday through Thursday average
price quotation for the lowest-priced United
States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by
more than 1.25 cents per pound; and
(ii) the prevailing world market price for
upland cotton (adjusted to United States
quality and location) does not exceed 130
percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value
of the marketing certificates or cash payments shall be
based on the amount of the difference (reduced by 1.25
cents per pound) in the prices during the 4th week of
the consecutive 4-week period multiplied by the
quantity of upland cotton included in the documented
sales.
(C) Redemption, marketing, or exchange.--The
Secretary shall establish procedures to assist persons
receiving marketing certificates under this paragraph
in the redemption of certificates for cash, or in the
marketing or exchange of certificates for agricultural
commodities owned by the Commodity Credit Corporation,
in such manner and at such price levels as the
Secretary determines will best effectuate the purposes
of the marketing certificates. Any price restrictions
that may otherwise apply to the disposition of
agricultural commodities by the Commodity Credit
Corporation shall not apply to the redemption of
certificates under this paragraph.
(D) Exception.--The Secretary shall not issue
marketing certificates or cash payments under
subparagraph (A) if, for the immediately preceding
consecutive 10-week period, the Friday through Thursday
average price quotation for the lowest priced United
States growth, as quoted for Middling (M) 1\3/32\-inch
cotton, delivered C.I.F. Northern Europe, adjusted for
the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more
than 1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures
under this paragraph shall not exceed $701,000,000
during fiscal years 1996 through 2002.
(2) Special import quota.--
(A) Establishment.--The President shall carry out
an import quota program that provides that, during the
period ending July 31, 2003, whenever the Secretary
determines and announces that for any consecutive 10-week period, the
Friday through Thursday average price quotation for the lowest-priced
United States growth, as quoted for Middling (M) 1\3/32\-inch cotton,
delivered C.I.F. Northern Europe, adjusted for the value of any
certificates issued under paragraph (1), exceeds the Northern Europe
price by more than 1.25 cents per pound, there shall immediately be in
effect a special import quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3
months for which data are available.
(C) Application.--The quota shall apply to upland
cotton purchased not later than 90 days after the date
of the Secretary's announcement under subparagraph (A)
and entered into the United States not later than 180
days after the date.
(D) Overlap.--A special quota period may be
established that overlaps any existing quota period if
required by subparagraph (A), except that a special
quota period may not be established under this
paragraph if a quota period has been established under
subsection (g).
(E) Preferential tariff treatment.--The quantity
under a special import quota shall be considered to be
an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(F) Definition.--In this paragraph, the term
``special import quota'' means a quantity of imports
that is not subject to the over-quota tariff rate of a
tariff-rate quota.
(g) Limited Global Import Quota for Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent of
the average price of such quality of cotton in the markets for
the preceding 36 months, notwithstanding any other provision of
law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to increase
the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the
Harmonized Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means,
using the latest official data of the Bureau of
the Census, the Department of Agriculture, and
the Department of the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current
crop; and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill
consumption in the most recent 3 months
for which data are available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding 6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The
term ``limited global import quota'' means a
quantity of imports that is not subject to the
over-quota tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is
established under this subsection, cotton may be
entered under the quota during the 90-day period
beginning on the date the quota is established by the
Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(2).
(h) Source of Loans.--
(1) In general.--The Secretary shall provide the loans
authorized by this section and the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1281 et seq.) through the Commodity Credit
Corporation and other means available to the Secretary.
(2) Processors.--Whenever any loan or surplus removal
operation for any agricultural commodity is carried out through
purchases from or loans or payments to processors, the
Secretary shall, to the extent practicable, obtain from the
processors such assurances as the Secretary considers adequate
that the producers of the commodity have received or will
receive maximum benefits from the loan or surplus removal
operation.
(i) Adjustments of Loans.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan levels for any commodity for
differences in grade, type, quality, location, and other
factors.
(2) Loan level.--The adjustments shall, to the maximum
extent practicable, be made in such manner that the average
loan level for the commodity will, on the basis of the
anticipated incidence of the factors, be equal to the level of
support determined as provided in this section or the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).
(j) Personal Liability of Producers for Deficiencies.--
(1) In general.--Except as provided in paragraph (2), no
producer shall be personally liable for any deficiency arising
from the sale of the collateral securing any nonrecourse loan
made under this section or the Agricultural Adjustment Act of
1938 (7 U.S.C. 1281 et seq.) unless the loan was obtained
through a fraudulent representation by the producer.
(2) Limitations.--Paragraph (1) shall not prevent the
Commodity Credit Corporation or the Secretary from requiring a
producer to assume liability for--
(A) a deficiency in the grade, quality, or quantity
of a commodity stored on a farm or delivered by the
producer;
(B) a failure to properly care for and preserve a
commodity; or
(C) a failure or refusal to deliver a commodity in
accordance with a program established under this
section or the Agricultural Adjustment Act of 1938.
(3) Acquisition of collateral.--The Secretary may include
in a contract for a nonrecourse loan made under this section or
the Agricultural Adjustment Act of 1938 a provision that
permits the Commodity Credit Corporation, on and after the
maturity of the loan, to acquire title to the unredeemed
collateral without obligation to pay for any market value that
the collateral may have in excess of the loan indebtedness.
(4) Sugarcane and sugar beets.--A security interest
obtained by the Commodity Credit Corporation as a result of the
execution of a security agreement by the processor of sugarcane
or sugar beets shall be superior to all statutory and common
law liens on raw cane sugar and refined beet sugar in favor of
the producers of sugarcane and sugar beets and all prior
recorded and unrecorded liens on the crops of sugarcane and
sugar beets from which the sugar was derived.
(k) Commodity Credit Corporation Sales Price Restrictions.--
(1) In general.--The Commodity Credit Corporation may sell
any commodity owned or controlled by the Corporation at any
price that the Secretary determines will maximize returns to the
Corporation.
(2) Nonapplication of sales price restrictions.--Paragraph
(1) shall not apply to--
(A) a sale for a new or byproduct use;
(B) a sale of peanuts or oilseeds for the
extraction of oil;
(C) a sale for seed or feed if the sale will not
substantially impair any loan program;
(D) a sale of a commodity that has substantially
deteriorated in quality or as to which there is a
danger of loss or waste through deterioration or
spoilage;
(E) a sale for the purpose of establishing a claim
arising out of a contract or against a person who has
committed fraud, misrepresentation, or other wrongful
act with respect to the commodity;
(F) a sale for export, as determined by the
Corporation; and
(G) a sale for other than a primary use.
(3) Presidential disaster areas.--
(A) In general.--Notwithstanding paragraph (1), on
such terms and conditions as the Secretary may consider
in the public interest, the Corporation may make
available any commodity or product owned or controlled
by the Corporation for use in relieving distress--
(i) in any area in the United States
(including the Virgin Islands) declared by the
President to be an acute distress area because
of unemployment or other economic cause, if the
President finds that the use will not displace
or interfere with normal marketing of
agricultural commodities; and
(ii) in connection with any major disaster
determined by the President to warrant
assistance by the Federal Government under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
(B) Costs.--Except on a reimbursable basis, the
Corporation shall not bear any costs in connection with
making a commodity available under subparagraph (A)
beyond the cost of the commodity to the Corporation
incurred in--
(i) the storage of the commodity; and
(ii) the handling and transportation costs
in making delivery of the commodity to
designated agencies at 1 or more central
locations in each State or other area.
(4) Efficient operations.--Paragraph (1) shall not apply to
the sale of a commodity the disposition of which is desirable
in the interest of the effective and efficient conduct of the
operations of the Corporation because of the small quantity of
the commodity involved, or because of the age, location, or
questionable continued storability of the commodity.
SEC. 105. PAYMENT LIMITATIONS.
(a) In General.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking paragraphs (1) through (4) and
inserting the following:
``(1) Limitation on payments under production flexibility
contracts.--The total amount of contract payments made under
section 103 of the Agricultural Market Transition Act to a
person under 1 or more production flexibility contracts entered
into under the section during any fiscal year may not exceed
$40,000.
``(2) Limitation on marketing loan gains and loan
deficiency payments.--For each of the 1996 through 2002 crops
of loan commodities, the total amount of payments specified in
paragraph (3) that a person shall be entitled to receive under
section 104 of the Agricultural Market Transition Act for one
or more loan commodities may not exceed $75,000.
``(3) Description of payments subject to limitation.--The
payments referred to in paragraph (2) are the following:
``(A) Any gain realized by a producer from repaying
a marketing assistance loan for a crop of any loan
commodity at a lower level than the original loan rate
established for the loan commodity under section 104(b)
of the Agricultural Market Transition Act.
``(B) Any loan deficiency payment received for a
loan commodity under section 104(e) of the Act.
``(4) Definitions.--In this title, the terms `contract
payment' and `loan commodity' have the meaning given those
terms in section 102 of the Agricultural Market Transition
Act.''.
(b) Conforming Amendments.--
(1) Section 1001A of the Food Security Act of 1985 (7
U.S.C. 1308-1) is amended--
(A) in subsection (a)(1), by striking ``under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''; and
(B) in subsection (b)(1), by striking ``under the
Agricultural Act of 1949''.
(2) Section 1001C(a) of the Act (7 U.S.C. 1308-3(a)) is
amended--
(A) by striking ``For each of the 1991 through 1997
crops, any'' and inserting ``Any'';
(B) by striking ``production adjustment payments,
price support program loans, payments, or benefits made
available under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.),'' and inserting ``loans or payments made
available under title I of the Agricultural Market
Transition Act,''; and
(C) by striking ``during the 1989 through 1997 crop
years''.
SEC. 106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location of
peanuts and such other factors as are authorized by section
104(i)(1).
(5) Offers from handlers.--In the case of any producer who
had an offer available from a handler to purchase quota
peanuts, for delivery within the same county or a contiguous
county, at a price equal to or greater than the applicable
quota support rate, the Secretary shall reduce the support rate
by 5 percent for the peanuts that were subject to the offer.
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates 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.
(2) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for which
the loan rate 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 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 section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) Administrative and supervisory activities.--An
area marketing association shall be used in
administrative and supervisory activities relating to
loans and marketing activities under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(C) Association costs.--Loans made to the
association under this paragraph shall include such
costs as the area marketing association reasonably may
incur in carrying out the responsibilities, operations,
and activities of the association under this section
and section 358e of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359a).
(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. 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 and 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.
(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.
(d) Losses.--Losses in quota area pools shall be covered using the
following sources in the following order of priority:
(1) 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 the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an
area quota pool shall be offset by reducing the gain of any
producer in the pool by the amount of pool gains attributed to
the same producer from the sale of additional peanuts for
domestic and export edible use.
(3) Buy-back gains within area.--Further losses in an area
quota pool shall be offset by gains or profits attributable to
sales of additional peanuts in that area pursuant to the
provisions of section 358e(g)(1)(A) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a(g)(1)(A)).
(4) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds attributable
to handlers) to offset further losses in area quota pools. The
Secretary shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this
subsection that the Secretary determines are not required to
cover losses in area quota pools.
(5) Cross compliance.--Further losses in area quota pools,
other than losses incurred as a result of transfers from
additional loan pools to quota loan pools under section 358-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate type
pools established under subsection (c)(2)(A) for Valencia
peanuts produced in New Mexico) in such manner as the Secretary
shall by regulation prescribe. If losses in area quota pools
have not been entirely offset through use of the preceding
sentence, then further losses shall be offset by gains or
profits attributable to sales of additional peanuts in other
areas pursuant to section 358e(g)(1)(A) of such Act (7 U.S.C.
1359a(g)(1)(A)).
(6) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to cover
losses in an area quota pool, the Secretary shall increase the
marketing assessment established under subsection (g) by such
an amount as the Secretary considers necessary to cover the
losses. The increased assessment shall apply only to quota
peanuts covered by that pool. Amounts collected under
subsection (g) as a result of the increased assessment shall be
retained by the Secretary to cover losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other provision of
law, no loan for quota peanuts 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 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under 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
inventories of peanuts sold for domestic edible use
must be shown to have been officially inspected by
licensed Department inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut
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
Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Agreement Act
of 1937); and
(D) ensure that any changes made in the peanut
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 loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement No.
146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent for
each of the 1994 and 1995 crops, 1.15 percent for the 1996
crop, and 1.2 percent for each of the 1997 through 2002 crops,
of the national average quota or additional peanut loan rate
for the applicable crop.
(2) First purchasers.--
(A) In general.--Except as provided under
paragraphs (3) and (4), the first purchaser of peanuts
shall--
(i) collect from the producer a marketing
assessment equal to the quantity of peanuts
acquired multiplied by--
(I) in the case of each of the 1994
and 1995 crops, .55 percent of the
applicable national average loan rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent of
the applicable national average loan
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 loan 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 of first purchaser.--In 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, the term means the person
acquiring the peanuts from the Commodity Credit
Corporation.
(3) 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.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, the grower
portion 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.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the 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 rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective only for
the 1996 through 2002 crops of peanuts.
(i) Poundage Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking
``1991 through 1997 crops of'';
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by
striking ``of the 1991 through 1997 marketing
years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking
``1990'' and inserting ``1990, for the 1991
through 1995 marketing years, and 1995, for the
1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991
through 1997 marketing years'' and
inserting ``each marketing year''; and
(II) in clause (i), by inserting
before the semicolon the following: ``,
in the case of the 1991 through 1995
marketing years, and the 1995 marketing
year, in the case of the 1996 through
2002 marketing years''; and
(v) in subsection (f), by striking ``1997''
and inserting ``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking
``1991 through 1995 crops of''; and
(ii) in subsection (c), by striking
``1995'' and inserting ``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by
striking ``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking
``for 1991 through 1997 crops of peanuts''; and
(ii) in subsection (i), by striking
``1997'' and inserting ``2002''.
(2) Eligibility for farm poundage quota.--
(A) Certain farms ineligible.--Section 358-1(b)(1)
of the Act (7 U.S.C. 1358-1(b)(1)) is amended by adding
at the end the following:
``(D) Certain farms ineligible to hold quota.--
Effective beginning with the 1997 marketing year, the
Secretary shall no longer establish farm poundage
quotas under subparagraph (A) for farms--
``(i) owned or controlled by
municipalities, airport authorities, schools,
colleges, refuges, and other public entities
(not including universities for research
purposes); or
``(ii) owned or controlled by a person who
is not a producer and resides in another
State.''.
(B) Allocation of quota to other farms.--Section
358-1(b)(2) of the Act (7 U.S.C. 1358-1(b)(2)) is
amended by adding at the end the following:
``(E) Transfer of quota from ineligible farms.--Any
farm poundage quota held on or after January 1, 1997,
by a farm described in paragraph (1)(D) shall be
allocated to other farms in the same State on such
basis as the Secretary may by regulation prescribe.''.
(3) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(4) Temporary quota allocation.--Section 358-1 of the Act
(7 U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic
edible, seed,'' and inserting ``domestic edible use
(except seed)'';
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking
``subparagraph (B) and subject to''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--
Temporary allocation of quota pounds for the
marketing year only in which the crop is
planted shall be made to producers for each of
the 1996 through 2002 marketing years as
provided in this subparagraph.
``(ii) Quantity.--The temporary quota
allocation shall be equal to the pounds of seed
peanuts planted on the farm, as may be adjusted
under regulations prescribed by the Secretary.
``(iii) Additional quota.--The temporary
allocation of quota pounds under this paragraph
shall be in addition to the farm poundage quota
otherwise established under this subsection and
shall be credited, for the applicable marketing
year only, in total to the producer of the
peanuts on the farm in a manner prescribed by
the Secretary.
``(iv) Effect of other requirements.--
Nothing in this section alters or changes the
requirements regarding the use of quota and
additional peanuts established by section
358e(b).''; and
(C) in subsection (e)(3), strike ``and seed and use
on a farm''.
(5) Spring and fall transfers within a state.--Section
358b(a)(1) of the Act (7 U.S.C. 1358b(a)(1)) is amended--
(A) by striking ``, conditions, or limitations'' in
the matter preceding the subparagraphs and inserting
``and conditions'';
(B) by striking ``any such lease'' in the matter
preceding the subparagraphs and inserting ``any such
sale or lease''; and
(C) by striking ``in the fall or after the normal
planting season--'' and subparagraphs (A) and (B) and
inserting the following: ``in the spring (or before the
normal planting season) or in the fall (or after the
normal planting season) with the owner or operator of a
farm located within any county in the same State. In
the case of a fall transfer or a transfer after the
normal planting season, the transfer may be made only
if not less than 90 percent of the 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 leased.''.
(6) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking
``including--'' and clauses (i) and (ii) and
inserting ``including any increases resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking
``include--'' and clauses (i) and (ii) and
inserting ``include any increase resulting from
the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9);
and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking
``(including any applicable under marketings)''
both places it appears;
(ii) in paragraph (2), by striking
``(including any applicable under
marketings)''; and
(iii) in paragraph (3), by striking
``(including any applicable undermarketings)''.
(7) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragraph (6)(A)(iii), is
further amended by adding at the end the following:
``(8) Disaster transfers.--
``(A) In general.--Except as provided in
subparagraph (B), additional peanuts produced on a farm
from which the quota poundage was not harvested and
marketed because of drought, flood, or any other
natural disaster, or any other condition beyond the
control of the producer, may be transferred to the
quota loan pool for pricing purposes on such basis as
the Secretary shall by regulation provide.
``(B) Limitation.--The poundage of peanuts
transferred under subparagraph (A) shall not exceed the
difference between--
``(i) the total quantity of peanuts meeting
quality requirements for domestic edible use,
as determined by the Secretary, marketed from
the farm; and
``(ii) the total farm poundage quota,
excluding quota pounds transferred to the farm
in the fall.
``(C) Support rate.--Peanuts transferred under this
paragraph shall be supported at 70 percent of the quota
support rate for the marketing years in which the
transfers occur. The transfers for a farm shall not
exceed 25 percent of the total farm quota pounds,
excluding pounds transferred in the fall.''.
SEC. 107. SUGAR PROGRAM.
(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to 18 cents
per pound for raw cane sugar.
(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate equal to 22.9
cents per pound for refined beet sugar.
(c) Reduction in Loan Rates.--
(1) Reduction required.--The Secretary shall reduce the
loan rate specified in subsection (a) for domestically grown
sugarcane and subsection (b) for domestically grown sugar beets
if the Secretary determines that negotiated reductions in
export subsidies and domestic subsidies provided for sugar of
the European Union and other major sugar growing, producing,
and exporting countries in the aggregate exceed the commitments
made as part of the Agreement on Agriculture.
(2) Extent of reduction.--The Secretary shall not reduce
the loan rate under subsection (a) or (b) below a rate that
provides an equal measure of support to that provided by the
European Union and other major sugar growing, producing, and
exporting countries, based on an examination of both domestic
and export subsidies subject to reduction in the Agreement on
Agriculture.
(3) Announcement of reduction.--The Secretary shall
announce any loan rate reduction to be made under this
subsection as far in advance as is practicable.
(4) Major sugar countries defined.--For purposes of this
subsection, the term ``major sugar growing, producing, and
exporting countries'' means--
(A) the countries of the European Union; and
(B) the ten foreign countries not covered by
subparagraph (A) that the Secretary determines produce
the greatest amount of sugar.
(5) Agreement on agriculture defined.--For purposes of this
subsection, the term ``Agreement on Agriculture'' means the
Agreement on Agriculture referred to in section 101(d)(2) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).
(d) Term of Loans.--
(1) In general.--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 earlier of--
(A) the end of 9 months; or
(B) the end of the fiscal year.
(2) Supplemental loans.--In the case of loans made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second
loan in the subsequent fiscal year, except that the second loan
shall--
(A) be made at the loan rate in effect at the time
the second loan is made; and
(B) mature in 9 months less the quantity of time
that the first loan was in effect.
(e) Loan Type; Processor Assurances.--
(1) Recourse loans.--Subject to paragraph (2), the
Secretary shall carry out this section through the use of
recourse loans.
(2) Nonrecourse loans.--During any fiscal year in which the
tariff rate quota for imports of sugar into the United States
is established at, or is increased to, a level in excess of
1,500,000 short tons raw value, 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 the fiscal year shall be changed by the
Secretary into a nonrecourse loan.
(3) Processor assurances.--If the Secretary is required
under paragraph (2) to make nonrecourse loans available during
a fiscal year or to change recourse loans into nonrecourse
loans, the Secretary shall obtain from each processor that
receives a loan under this section such assurances as the
Secretary considers adequate to ensure that the processor will
provide payments to producers that are proportional to the
value of the loan received by the processor for sugar beets and
sugarcane delivered by producers served by the processor. The
Secretary may establish appropriate minimum payments for
purposes of this paragraph.
(f) Marketing Assessment.--
(1) Sugarcane.--Effective for marketings of raw cane sugar
during the 1996 through 2003 fiscal years, the first processor
of sugarcane shall remit to the Commodity Credit Corporation a
nonrefundable marketing assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1 percent of the loan rate established under
subsection (a) per pound of raw cane sugar, processed
by the processor from domestically produced sugarcane
or sugarcane molasses, that has been marketed
(including the transfer or delivery of the sugar to a
refinery for further processing or marketing); and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.375 percent of the loan rate
established under subsection (a) per pound of raw cane
sugar, processed by the processor from domestically
produced sugarcane or sugarcane molasses, that has been
marketed (including the transfer or delivery of the
sugar to a refinery for further processing or
marketing).
(2) Sugar beets.--Effective for marketings of beet sugar
during the 1996 through 2003 fiscal years, the first processor
of sugar beets shall remit to the Commodity Credit Corporation
a nonrefundable marketing assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1794 percent of the loan rate established under
subsection (a) per pound of beet sugar, processed by
the processor from domestically produced sugar beets or
sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.47425 percent of the loan
rate established under subsection (a) per pound of beet
sugar, processed by the processor from domestically
produced sugar beets or sugar beet molasses, that has
been marketed.
(3) Collection.--
(A) Timing.--A marketing assessment required under
this subsection shall be collected on a monthly basis
and shall be remitted to the Commodity Credit
Corporation not later than 30 days after the end of
each month. Any cane sugar or beet sugar processed
during a fiscal year that has not been marketed by
September 30 of the year shall be subject to assessment
on that date. The sugar shall not be subject to a
second assessment at the time that it 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 the 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 cane sugar or beet sugar
involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) Enforcement.--The Secretary may enforce this subsection
in a court of the United States.
(g) Forfeiture Penalty.--
(1) In general.--A penalty shall be assessed on the
forfeiture of any sugar pledged as collateral for a nonrecourse
loan under this section.
(2) Cane sugar.--The penalty for cane sugar shall be 1 cent
per pound.
(3) Beet sugar.--The penalty for beet sugar shall bear the
same relation to the penalty for cane sugar as the marketing
assessment for sugar beets bears to the marketing assessment
for sugarcane.
(4) Effect of forfeiture.--Any payments owed producers by a
processor that forfeits any sugar pledged as collateral for a
nonrecourse loan shall be reduced in proportion to the loan
forfeiture penalty incurred by the processor.
(h) Information Reporting.--
(1) Duty of processors and refiners to report.--A sugarcane
processor, cane sugar refiner, and sugar beet processor 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) 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.
(3) 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.
(i) Marketing Allotments.--Part VII of subtitle B of title III of
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is
repealed.
(j) Crops.--This section (other than subsection (i)) shall be
effective only for the 1996 through 2002 crops of sugar beets and
sugarcane.
SEC. 108. ADMINISTRATION.
(a) Commodity Credit Corporation.--
(1) Use of corporation.--The Secretary shall carry out this
title through the Commodity Credit Corporation.
(2) Prohibition on salaries and expenses.--Notwithstanding
any other provision of law, no funds of the Corporation shall
be used for any salary or expense of any officer, employee, or
agency of the Department of Agriculture.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title or the Agricultural Adjustment Act of 1938
(7 U.S.C. 1281 et seq.) shall be final and conclusive.
(c) Regulations.--The Secretary may issue such regulations as the
Secretary determines necessary to carry out this title.
SEC. 109. ELIMINATION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The Agricultural
Adjustment Act of 1938 is amended--
(1) in title III--
(A) in subtitle B--
(i) by striking parts II through V (7
U.S.C. 1326-1351); and
(ii) in part VI--
(I) by moving subsection (c) of
section 358d (7 U.S.C. 1358d(c)) to
appear after section 301(b)(17) (7
U.S.C. 1301(b)(17)), redesignating the
subsection as paragraph (18), and
moving the margin of the paragraph 2
ems to the right; and
(II) by striking sections 358,
358a, and 358d (7 U.S.C. 1358, 1358a,
and 1359); and
(B) by striking subtitle D (7 U.S.C. 1379a-1379j);
and
(2) by striking title IV (7 U.S.C. 1401-1407).
(b) Agricultural Act of 1949.--
(1) Transfer of certain sections.--The Agricultural Act of
1949 is amended--
(A) by transferring sections 106, 106A, and 106B (7
U.S.C. 1445, 1445-1, 1445-2) to appear after section
314A of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1314-1) and redesignating the transferred
sections as sections 315, 315A, and 315B, respectively;
(B) by transferring section 111 (7 U.S.C. 1445f) to
appear after section 304 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1304) and redesignating the
transferred section as section 305; and
(C) by transferring sections 404 and 416 (7 U.S.C.
1424 and 1431) to appear after section 390 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1390) and
redesignating the transferred sections as sections 390A
and 390B, respectively.
(2) Repeal.--The Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.) (as amended by paragraph (1)) is repealed.
(c) Conforming Amendments.--
(1) Section 361 of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1361) is amended by striking ``, corn, wheat, cotton,
peanuts, and rice, established''.
(2) Section 371 of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1371) is amended--
(A) in the first sentence of subsection (a), by
striking ``cotton, rice, peanuts, or''; and
(B) in the first sentence of subsection (b), by
striking ``cotton, rice, peanuts or''.
SEC. 110. EFFECT OF AMENDMENTS.
(a) Effect on Prior Crops.--Except as otherwise specifically
provided and notwithstanding any other provision of law, this title and
the amendments made by this title shall not affect the authority of the
Secretary to carry out a price support or production adjustment program
for any of the 1991 through 1995 crops of an agricultural commodity
established under a provision of law in effect immediately before the
date of the enactment of this Act.
(b) Liability.--A provision of this title or an amendment made by
this title shall not affect the liability of any person under any
provision of law as in effect before the date of the enactment of this
Act.
TITLE II--DAIRY
SEC. 201. MILK PRICE SUPPORT PROGRAM.
(a) Support Activities.--During the period beginning on the
date of the enactment of this Act and ending December 31, 2000, the
Secretary of Agriculture shall support the price of milk produced in
the 48 contiguous States through the purchase of cheese, butter, and
nonfat dry milk produced from the milk.
(b) Rate.--The price of milk shall be supported at the
following rates per hundredweight for milk containing 3.67 percent
butterfat:
(1) During calendar year 1996, $10.15.
(2) During calendar year 1997, $10.05.
(3) During calendar year 1998, $9.95.
(4) During calendar year 1999, $9.85.
(5) During calendar year 2000, $9.75.
(c) Bid Prices.--The support purchase prices under this section
for each of the products of milk (butter, cheese, and nonfat dry milk)
announced by the Secretary shall be the same for all of that product
sold by persons offering to sell the product to the Secretary. The
purchase prices shall be sufficient to enable plants of average
efficiency to pay producers, on average, a price that is not less than
the rate of price support for milk in effect under subsection (b).
(d) Special Rule for Butter and Nonfat Dry Milk--
(1) Allocation of purchase prices.--The Secretary may
allocate the rate of price support between the purchase prices
for nonfat dry milk and butter in a manner that will result in
the lowest level of expenditures by the Commodity Credit
Corporation or achieve such other objectives as the Secretary
considers appropriate. The Secretary shall notify the Committee
on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
of the allocation.
(2) Timing of purchase price adjustments.--The Secretary may
make any such adjustments in the purchase prices for nonfat dry
milk and butter the Secretary considers to be necessary not
more than twice in each calendar year.
(e) Refunds of 1995and 1996 Assessments.--
(1) Refund required.--The Secretary shall provide for a
refund of the entire reduction required under section 204(h)(2)
of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in
effect on the day before the date of the enactment of this Act,
in the price of milk received by a producer during calendar
year 1995 or 1996, if the producer provides evidence that the
producer did not increase marketings in calendar year 1995 or
1996 when compared to calendar year 1994 or 1995, respectively.
(2) Exception.--This subsection shall not apply with respect
to a producer for a particular calendar year if the producer
has already received a refund under section 204(h) of the
Agricultural Act of 1949 for the same fiscal year before the
date of the enactment of this Act.
(3) Treatment of refund.--A refund under this subsection
shall not be considered as any type of price support or payment
for purposes of sections 1211 and 1221 of the Food Security Act
of 1985 (16 U.S.C. 3811 and 3821).
(f) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the Commodity Credit
Corporation.
(g) Period of Effectiveness.--This section shall be effective
only during the period beginning on the date of the enactment of this
Act and ending on December 31, 2000. The program authorized by this
section shall terminate on December 31, 2000, and shall be considered
to have expired notwithstanding section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
SEC. 202. CONSOLIDATION AND REFORM OF FEDERAL MILK MARKETING ORDERS.
(a) Amendment of Orders.--As soon as practicable after the date
of the enactment of this Act, the Secretary shall amend Federal milk
marketing orders issued under section 8c of the Agricultural Adjustment
Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, to--
(1) limit the number of Federal milk marketing orders to
between 10 and 14 orders; and
(2) provide for multiple basing points for the pricing of
milk.
(b) Expedited Process.--Using the rulemaking procedures
provided in section 553 of title 5, United States Code, the Secretary
shall--
(1) announce the amendments required under subsection (a) not
later than December 31, 1998; and
(2) implement the amendments not later than December 31,
2000.
(c) Funding.--Effective beginning January 1, 2001, the
Secretary shall not use any funds to administer more than 14 Federal
milk marketing orders.
(d) Study Regarding Further Reforms.--Not later than January 1,
1998, the Secretary of Agriculture shall submit to Congress a report--
(1) reviewing the Federal milk marketing order system
established pursuant to section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937, in light of
the reforms required by subsection (a); and
(2) containing such recommendations as the Secretary
considers appropriate for further improvements and reforms to
the Federal milk marketing order system.
SEC. 203. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Duration.--Section 153(a) of the Food Security Act of 1985
(15 U.S.C. 713a-14) is amended by striking ``2001'' and inserting
``2002''.
(b) Sole Discretion.--Section 153(b) of the Food Security Act
of 1985 is amended by inserting ``sole'' before ``discretion''.
(c) Elements of Program.--Section 153(c) of the Food Security
Act of 1985 is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States as a
member of the World Trade Organization is exported under the
program each year (minus the volume sold under section 1163 of
the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731
note) during that year), except to the extent that the export
of such a volume under the program would, in the judgment of
the Secretary, exceed the limitations on the value set forth in
subsection (f); and
``(4) payments may be made under the program for exports to
any destination in the world for the purpose of market
development, except a destination in a country with respect to
which shipments from the United States are otherwise restricted
by law.''.
(d) Market Development.--Section 153(e)(1) of the Food Security
Act of 1985 is amended--
(1) by striking ``and'' and inserting ``the''; and
(2) by inserting before the period the following: ``, and any
additional amount that may be required to assist in the
development of world markets for United States dairy
products''.
(e) Maximum Allowable Amounts.--Section 153 of the Food
Security Act of 1985 is amended by adding at the end the following:
``(f) Required Funding.--
``(1) In general.--Except as provided in paragraph (2), the
Commodity Credit Corporation shall in each year use money and
commodities for the program under this section in the maximum
amount consistent with the obligations of the United States as
a member of the World Trade Organization, minus the amount
expended under section 1163 of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 1731 note) during that year.
``(2) Volume limitations.--The Commodity Credit Corporation
may not exceed the limitations specified in subsection (c)(3)
on the volume of allowable dairy product exports.''.
SEC. 204. EFFECT ON FLUID MILK STANDARDS IN THE STATE OF CALIFORNIA.
Nothing in this Act or any other provision of law shall be
construed to preempt, prohibit or otherwise limit the authority of the
State of California, directly or indirectly, to establish or continue
to effect any law, regulation or requirement regarding--
(1) the percentage of milk solids or solids not fat in fluid
milk products sold at retail or marketed in the State of
California; or
(2) the labeling of such fluid milk products with regard to
milk solids or solids not fat.
SEC. 205. REPEAL OF MILK MANUFACTURING MARKETING ADJUSTMENT.
Section 102 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 1446e-1) is repealed.
SEC. 206. PROMOTION.
(a) Congressional Purpose.--Section 1999B(a) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
(1) by redesignating paragraphs (6), (7) and (8) as
paragraphs (7), (8) and (9), respectively; and
(2) by inserting after paragraph (5) the following new
paragraph:
``(6) the congressional purpose underlying this subtitle is
to maintain and expand markets for fluid milk products, not to
maintain or expand any processor's share of those markets and
that the subtitle does not prohibit or restrict individual
advertising or promotion of fluid milk products since the
programs created and funded by this subtitle are not extended
to replace individual advertising and promotion efforts;''.
(b) Congressional Policy.--Section 1999B(b) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to read as follows:
``(b) Policy.--It is declared to be the policy of Congress that
it is in the public interest to authorize the establishment, through
the exercise of powers provided in this subtitle, of an orderly
procedure for developing, financing, through adequate assessments on
fluid milk products produced in the United States and carrying out an
effective, continuous, and coordinated program of promotion, research,
and consumer information designed to strengthen the position of the
dairy industry in the marketplace and maintain and expand domestic and
foreign markets and uses for fluid milk products, the purpose of which
is not to compete with or replace individual advertising or promotion
efforts designed to promote individual brand name or trade name fluid
milk products, but rather to maintain and expand the markets for all
fluid milk products, with the goal and purpose of this subtitle being a
national governmental goal that authorizes and funds programs that
result in government speech promoting government objectives.''.
(c) Research.--Section 1999C(6) of the Fluid Milk Promotion Act
of 1990 (7 U.S.C. 6402(6)) is amended to read as follows:
``(6) Research.--The term `research' means market research to
support advertising and promotion efforts, including
educational activities, research directed to product
characteristics, product development, including new products or
improved technology in production, manufacturing or processing
of milk and the products of milk.''.
(d) Voting.--(1) Section 1999N(b)(2) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is amended by striking
``all processors'' and inserting ``fluid milk processors voting in the
referendum''.
(2) Section 1999O(c) of such Act (7 U.S.C. 6414(c)) is amended
by striking ``all processors'' each place it appears and inserting
``fluid milk processors voting in the referendum''.
(e) Duration.--Section 1999O(a) of the Fluid Milk Promotion Act
of 1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' and
inserting ``2002''.
TITLE III--CONSERVATION
SEC. 301. CONSERVATION.
(a) Funding.--Subtitle E of title XII of the Food Security Act
of 1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:
``Subtitle E--Funding
``SEC. 1241. FUNDING.
``(a) Mandatory Expenses.--For each of fiscal years 1996
through 2002, the Secretary shall use the funds of the Commodity Credit
Corporation to carry out the programs authorized by--
``(1) subchapter B of chapter 1 of subtitle D (including
contracts extended by the Secretary pursuant to section 1437 of
the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 16 U.S.C. 3831 note));
``(2) subchapter C of chapter 1 of subtitle D; and
``(3) chapter 4 of subtitle D.
``(b) Environmental Quality Incentive Program.--For each of
fiscal years 1996 through 2002, $200,000,000 of the funds of the
Commodity Credit Corporation shall be available for providing technical
assistance, cost-sharing payments, and incentive payments for practices
authorized under the environmental quality incentive program under
chapter 4 of subtitle D. At least 50 percent of the funds made
available under this subsection for a fiscal year shall be used to
provide technical assistance, cost-sharing payments, and incentive
payments under such chapter relating to livestock production.''.
(b) Environmental Quality Incentive Program.--Subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is
amended by adding at the end the following:
``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVE PROGRAM
``SEC. 1240. DEFINITIONS.
``In this chapter and section 1241:
``(1) Land management practice.--The term `land management
practice' means a site-specific nutrient or manure management,
integrated pest management, irrigation management, tillage or
residue management, grazing management, or other land
management practice that the Secretary determines is needed to
protect, in the most cost effective manner, water, soil, or
related resources from degradation.
``(2) Livestock.--The term `livestock' means mature
livestock, dairy cows, beef cattle, laying hens, turkeys,
swine, sheep, and such other animals as determined by the
Secretary.
``(3) Producer.--The term `producer' means a person who is
engaged in livestock or agricultural production (as defined by
the Secretary).
``(4) Structural practice.--The term `structural practice'
means--
``(A) the establishment of an animal waste management
facility, terrace, grassed waterway, contour grass
strip, filterstrip, tailwater pit, or other structural
practice that the Secretary determines is needed to
protect, in the most cost effective manner, water,
soil, or related resources from degradation; and
``(B) the capping of abandoned wells.
``SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY
INCENTIVE PROGRAM.
``(a) Establishment.--
``(1) In General.--During the 1996 through 2002 fiscal years,
the Secretary shall provide technical assistance, cost-sharing
payments, and incentive payments to producers who enter into
contracts with the Secretary, through a environmental quality
incentive program.
``(2) Eligible practices.--
``(A) Structural practices.--A producer who
implements a structural practice shall be eligible for
technical assistance or cost-sharing payments, or both.
``(B) Land management practices.--A producer who
performs a land management practice shall be eligible
for technical assistance or incentive payments, or
both.
``(3) Eligible land.--Assistance under this chapter may be
provided with respect to land that is used for livestock or
agricultural production and on which a serious threat to water,
soil, or related resources exists, as determined by the
Secretary, by reason of the soil types, terrain, climatic,
soil, topographic, flood, or saline characteristics, or other
factors or natural hazards.
``(4) Selection criteria.--In providing technical assistance,
cost-sharing payments, and incentive payments to producers in a
region or watershed, the Secretary shall consider--
``(A) the significance of the water, soil, and
related natural resource problems; and
``(B) the maximization of environmental benefits per
dollar expended.
``(b) Application and Term.--
``(1) In general.--A contract between a producer and the
Secretary under this chapter may--
``(A) apply to 1 or more structural practices or 1 or
more land management practices, or both; and
``(B) have a term of not less than 5, nor more than
10, years, as determined appropriate by the Secretary,
depending on the practice or practices that are the
basis of the contract.
``(2) Duties of producers and secretary.--To receive cost-
sharing or incentive payments, or technical assistance,
participating producers shall comply with all terms and
conditions of the contract and a plan, as established by the
Secretary.
``(c) Structural Practices.--
``(1) Competitive offer.--The Secretary shall administer a
competitive offer system for producers proposing to receive
cost-sharing payments in exchange for the implementation of 1
or more structural practices by the producer. The competitive
offer system shall consist of--
``(A) the submission of a competitive offer by the
producer in such manner as the Secretary may prescribe;
and
``(B) evaluation of the offer in light of the
selection criteria established under subsection (a)(4)
and the projected cost of the proposal, as determined
by the Secretary.
``(C) Concurrence of owner.--If the producer making an offer
to implement a structural practice is a tenant of the land
involved in agricultural production, for the offer to be
acceptable, the producer shall obtain the concurrence of the
owner of the land with respect to the offer.
``(d) Land Management Practices.--The Secretary shall establish
an application and evaluation process for awarding technical assistance
or incentive payments, or both, to a producer in exchange for the
performance of 1 or more land management practices by the producer.
``(e) Cost-Sharing, Incentive Payments, and Technical
Assistance.--
``(1) Cost-sharing payments.--
``(A) In general.--The Federal share of cost-sharing
payments to a producer proposing to implement 1 or more
structural practices shall not be greater than 75
percent of the projected cost of each practice, as
determined by the Secretary, taking into consideration
any payment received by the producer from a State or
local government.
``(B) Other payments.--A producer shall not be
eligible for cost-sharing payments for structural
practices on eligible land under this chapter if the
producer receives cost-sharing payments or other
benefits for the same land under chapter 1, 2, or 3.
``(2) Incentive payments.--The Secretary shall make incentive
payments in an amount and at a rate determined by the Secretary
to be necessary to encourage a producer to perform 1 or more
land management practices.
``(3) Technical assistance.--
``(A) Funding.--The Secretary shall allocate funding
under this chapter for the provision of technical
assistance with respect to non-Federal lands according
to the purpose and projected cost for which the
technical assistance is provided for a fiscal year. The
allocated amount may vary according to the type of
expertise required, quantity of time involved, and
other factors as determined appropriate by the
Secretary. Funding shall not exceed the projected cost
to the Secretary of the technical assistance provided
for a fiscal year.
``(B) Other authorities.--The receipt of technical
assistance under this chapter shall not affect the
eligibility of the producer to receive technical
assistance under other authorities of law available to
the Secretary.
``(C) Private sources.--The Secretary shall ensure
that the process of writing and developing proposals
and plans for contracts under this chapter, and of
assisting in the implementation of structural practices
and land management practices covered by the contracts,
are open to individuals in agribusiness, including
agricultural producers, representatives from
agricultural cooperatives, agricultural input retail
dealers, and certified crop advisers. The requirements
of this subparagraph shall also apply to any other
Department program using incentive payments, technical
assistance, or cost-share payments and to pilot project
programs of the Department that require plans.
``(f) Limitation on Payments.--
``(1) In general.--The total amount of cost-sharing and
incentive payments paid to a person under this chapter may not
exceed--
``(A) $10,000 for any fiscal year; or
``(B) $50,000 for any multiyear contract.
``(2) Exception to annual limit.--The Secretary may exceed
the limitation on the annual amount of a payment under
paragraph (1)(A) on a case-by-case basis if the Secretary
determines that a larger payment is essential to accomplish the
land management practice or structural practice for which the
payment is made.
``(3) Regulations.--The Secretary shall issue regulations
that are consistent with section 1001 for the purpose of--
``(A) defining the term `person' as used in paragraph
(1); and
``(B) prescribing such rules as the Secretary
determines necessary to ensure a fair and reasonable
application of the limitations established under this
subsection.
``(g) Regulations.--Not later than 180 days after the effective
date of this subsection, the Secretary shall issue regulations to
implement the environmental quality incentive program established under
this chapter.''.
SEC. 302. WETLANDS RESERVE PROGRAM.
(a) Enrollment.--Section 1237 of the Food Security Act of 1985
(16 U.S.C. 3837) is amended by striking subsection (b) and inserting
the following:
``(b) Enrollment Conditions.--
``(1) Maximum enrollment.--The total number of acres enrolled
in the wetlands reserve program shall not exceed 975,000 acres.
``(2) Methods of enrollment.--The Secretary shall ensure, to
the maximum extent practicable, that of the total number of
acres enrolled in the wetlands reserve program--
``(A) one-third of the acres are enrolled through the
use of permanent easements;
``(B) one-third of the acres are enrolled through the
use of 30-year easements (or ease-ments of a shorter
period if required under applicable State laws); and
``(C) one-third of the acres are enrolled through the
use of restoration cost-share agreements authorized
under section 1237A(h).''.
``(3) Temporary emphasis on certain enrollment methods.--To
achieve the enrollment rations specified in paragraph (2), the
Secretary shall endeavor, to the maximum extent practicable, to
rely on the enrollment methods described in subparagraphs (B)
and (C) of paragraph (2) to enroll lands in the wetlands
reserve program until such time as enrollments under each such
subparagraph accounts for approximately one-third of all lands
enrolled in the wetlands reserve.''
(b) Eligibility.--Section 1237(c) of the Food Security Act of
1985 (16 U.S.C. 3837(c)) is amended by striking ``2000'' and inserting
``2002''.
(c) Easements and Restoration Cost-Share Agreements.--Section
1237A of the Food Security Act of 1985 (16 U.S.C. 3837a) is amended--
(1) in the section heading, by inserting before the period at
the end the following: ``AND RESTORATION COST-SHARE
AGREEMENTS'';
(2) by striking subsection (c) and inserting the following:
``(c) Restoration Plans.--The development of a restoration
plan, including any compatible use, under this section shall be made
through the local Natural Resources Conservation Service
representative.'';
(3) in subsection (f), by striking the third sentence and
inserting the following: ``Compensation may be provided in not
less than 5, nor more than 30, annual payments of equal or
unequal size, as agreed to by the owner and the Secretary.'';
and
(4) by adding at the end the following:
``(h) Restoration Cost-Share Agreements.--The Secretary may
enroll land in the wetland reserve program through agreements that
require the landowner to restore wetlands on the land, if the agreement
does not provide the Secretary with an easement. Other than cost share
and technical assistance provided under section 1237C(b), the Secretary
may not provide compensation for an agreement under this subsection.''.
(d) Share and Technical Assistance.--Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking
subsection (b) and inserting the following:
``(b) Cost Share and Technical Assistance.--
``(1) Easements.--In the case of an easement entered into
during the 1996 through 2002 calendar years, in making cost
share payments under subsection (a)(1), the Secretary shall--
``(A) in the case of a permanent easement, pay the
owner an amount that is not less than 75 percent, but
not more than 100 percent, of the eligible costs; and
``(B) in the case of a 30-year easement, pay the
owner an amount that is not less than 50 percent, but
not more than 75 percent, of the eligible costs.
``(2) Restoration cost-share agreements.--In making cost
share payments in connection with a restoration cost-share
agreement entered into under section 1237(A)(h), the Secretary
shall pay the owner an amount that is not less than 50 percent,
but not more than 75 percent, of the eligible costs.
``(3) Technical assistance.--The Secretary shall provide
owners with technical assistance to assist owners in complying
with the terms of easements and restoration cost-share
agreements.''.
(e) Effect on Existing Easements.--The amendments made by this
section shall not affect the validity or terms of any easements
acquired by the Secretary of Agriculture under subchapter C of chapter
1 of subtitle D of title XII of the Food Security Act of 1985 (16
U.S.C. 3837 et seq.) before the date of the enactment of this Act or
any payments required to be made in connection with such easements.
SEC. 303. ELIMINATION OF CONSULTATION REQUIREMENTS WITH SECRETARY OF
THE INTERIOR.
Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842)
is amended--
(1) by striking ``(a)'' before ``In carrying out''; and
(2) by striking subsection (b).
SEC. 304. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
(a) Program Extensions.--Section 1230(a) of the Food Security
Act of 1985 (16 U.S.C. 3830(a)) is amended by striking ``1995'' and
inserting ``2002''.
(b) Conservation and Improvement of Wildlife Habitat.--Such
section is further amended by inserting ``and wildlife habitat'' after
``soil and water resources''.
SEC. 305. CONSERVATION RESERVE PROGRAM.
(a) Program Extensions.--
(1) Conservation reserve program.--Section 1231 of the Act
(16 U.S.C. 3831) is amended in subsections (a) and (b)(3), by
striking ``1995'' each place it appears and inserting ``2002''.
(3) Duties of owners and operators.--Section 1232(c) of the
Act (16 U.S.C. 3832(c)) is amended by striking ``1995'' and
inserting ``2002''.
(b) Maximum Enrollment.--Section 1231(d) of the Food Security
Act of 1985 (16 U.S.C. 3831(d)) is amended by striking ``total of'' and
all that follows through the period at the end of the subsection and
inserting ``total of 36,400,000 acres during the 1986 through 2002
calendar years (including contracts extended by the Secretary pursuant
to section 1437(c) of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 note).''.
(c) Optional Contract Termination by Producers.--Section 1235
of the Food Security Act of 1985 (16 U.S.C. 3835) is amended by adding
at the end the following new subsection:
``(e) Terminational by Owner or Operator.--
(1) Early termination authorized.--The Secretary shall allow
an owner or operator of land that, on the date of the enactment
of the Agricultural Market Transition Act, is covered by a
contract that was entered into under this subchapter at least
five years before that date to terminate the contract with
respect to all or a portion of the covered land. The owner or
operator shall provide the Secretary with reasonable notice of
the termination request.
``(2) Certain lands excepted.--Notwithstanding paragraph (1),
the following lands shall not be subject to an early
termination of contract under this subsection:
``(A) Filterstrips, waterways, strips adjacent to
riparian areas, windbreaks, and shelterbelts.
``(B) Land with an erodibility index of more than 15.
``(C) Other lands of high environmental value, as
determined by the Secretary.
``(3) Effective date.--The contract termination shall take
effect 60 days after the date on which the owner or operator
submits the notice under paragraph (1).
``(4) Prorated rental payment.--If a contract entered into
under this subchapter is terminated under this subsection
before the end of the fiscal year for which a rental payment is
due, the Secretary shall provide a prorated rental payment
covering the portion of the fiscal year during which the
contract was in effect.
``(5) Renewed enrollment.--The termination of a contract
entered into under this subchapter shall not affect the ability
of the owner or operator who requested the termination to
submit a subsequent bid to enroll the land that was subject to
the contract into the conservation reserve.
``(6) Conservation requirements.--If land that was subject to
a contract is returned to production of an agricultural
commodity, the conservation requirements under subtitles B and
C shall apply to the use of the land to the extent that the
requirements are similar to those requirements imposed on other
similar lands in the area, except than the requirements may not
be more onerous that the requirements imposed on other
lands.''.
(d) Use of Unexpended Funds.--Section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) is amended by adding at the end the
following:
``(h) Use of Unexpended Funds from Contract Terminations.--If a
contract entered into under this section is terminated, voluntarily or
otherwise, before the expiration date specified in the contract, the
Secretary may use funds, already available to the Secretary to cover
payments under the contract, but unexpended as a result of the contract
termination, to enroll other eligible lands in the conservation reserve
established under this subchapter.''.
(e) Fair Market Value Rental Rates.--
(1) In general.--Section 1234(c) of the Food Security Act of
1985 (16 U.S.C. 3834(c)) is amended by adding at the end the
following new paragraph:
``(5) In the case of a contract covering land which has not
been previously enrolled in the conservation reserve, annual rental
payments under the contract may not exceed the average fair market
rental rate for comparable lands in the county in which the lands are
located. This paragraph shall not apply to the extension of an existing
contract.''
(2) Application of amendment.--The amendment made by
paragraph (1) shall apply with respect to contracts for the
enrollment of lands in the conservation reserve program under
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831))
entered into after the date of the enactment of this Act.
(f) Enrollments in 1997.--Section 725 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 332), is amended
by striking the proviso relating to enrollment of new acres in 1997.
TITLE IV--AGRICULTURAL PROMOTION AND EXPORT PROGRAMS
Subtitle A--Agricultural Promotion and Export Enhancement Programs
SEC. 401. MARKET PROMOTION PROGRAM.
Effective as of October 1, 1995, section 211(c)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--
(1) by striking ``and'' after ``1991 through 1993,''; and
(2) by striking ``through 1997,'' and inserting ``through
1995, and not more than $100,000,000 for each of fiscal years
1996 through 2002,''.
SEC. 402. EXPORT ENHANCEMENT PROGRAM.
(a) Generally.--Effective as of October 1, 1995, section 301(e)(1)
of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended
to read as follows:
``(1) In general.--The Commodity Credit Corporation shall
make available to carry out the program established under this
section not more than--
``(A) $350,000,000 for fiscal year 1996;
``(B) $350,000,000 for fiscal year 1997;
``(C) $500,000,000 for fiscal year 1998;
``(D) $550,000,000 for fiscal year 1999;
``(E) $579,000,000 for fiscal year 2000;
``(F) $478,000,000 for fiscal year 2001; and
``(G) $478,000,000 for fiscal year 2002.''.
(b) Priority Funding for Wheat Flour.--Section 301 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended by adding at
the end the following:
``(h) Priority Funding for Wheat Flour.--Consistent, as
determined by the Secretary, with the obligations and reduction
commitments undertaken by the United States set forth in the Uruguay
Round Agreements, the Secretary shall announce awards under this
section on an annual basis for the sale of wheat flour in sufficient
amount to maintain the percentage of market share of world commercial
flour markets achieved by the United States wheat flour industry during
the Uruguay Round base period years of 1986 through 1990.''.
Subtitle B--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
SEC. 411. FOOD AID TO DEVELOPING COUNTRIES.
(a) In General.--Section 3 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691a) is amended to
read as follows:
``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.
``(a) Policy.--In light of the Uruguay Round Agreement on
Agriculture and the Ministerial Decision on Measures Concerning the
Possible Negative Effects of the Reform Program on Least-Developed and
Net-Food Importing Developing Countries, the United States reaffirms
the commitment of the United States to providing food aid to developing
countries.
``(b) Sense of congress.--It is the sense of Congress that--
``(1) the President should initiate consultations with other
donor nations to consider appropriate levels of food aid
commitments to meet the legitimate needs of developing
countries;
``(2) the United States should increase its contribution of
bona fide food assistance to developing countries consistent
with the Agreement on Agriculture.''.
(b) Conforming Amendment.--Section 411 of the Uruguay Round
Agreements Act (19 U.S.C. 3611) is amended by striking subsection (e).
SEC. 412. TRADE AND DEVELOPMENT ASSISTANCE.
Section 101 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1701) is amended--
(1) by striking ``developing countries'' each place it
appears and inserting ``developing countries and private
entities''; and
(2) in subsection (b), by inserting ``and entities'' before
the period at the end.
SEC. 413. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.
Section 102 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1702) is amended to read as follows:
``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.
``(a) Priority.--In selecting agreements to be entered into
under this title, the Secretary shall give priority to agreements
providing for the export of agricultural commodities to developing
countries that--
``(1) have the demonstrated potential to become commercial
markets for competitively priced United States agricultural
commodities;
``(2) are undertaking measures for economic development
purposes to improve food security and agricultural development,
alleviate poverty, and promote broad-based equitable and
sustainable development; and
``(3) demonstrate the greatest need for food.
``(b) Private Entities.--An agreement entered into under this
title with a private entity shall require such security, or such other
provisions as the Secretary determines necessary, to provide reasonable
and adequate assurance of repayment of the financing extended to the
private entity.
``(c) Agricultural Market Development Plan.--
``(1) Definition of agricultural trade organization.--In this
subsection, the term `agricultural trade organization' means a
United States agricultural trade organization that promotes the
export and sale of a United States agricultural commodity and
that does not stand to profit directly from the specific sale
of the commodity.
``(2) An.--The Secretary shall consider a developing country
for which an agricultural market development plan has been
approved under this subsection to have the demonstrated
potential to become a commercial market for competitively
priced United States agricultural commodities for the purpose
of granting a priority under subsection (a).
``(3) Requirements.--
`(A) In general.--To be approved by the Secretary, an
agricultural market development plan shall--
``(i) be submitted by a developing country or
private entity, in conjunction with an
agricultural trade organization;
``(ii) describe a project or program for the
development and expansion of a United States
agricultural commodity market in a developing
country, and the economic development of the
country, using funds derived from the sale of
agricultural commodities received under an
agreement described in section 101;
``(iii) provide for any matching funds that
are required by the Secretary for the project
or program;
``(iv) provide for a results-oriented means
of measuring the success of the project or
program; and
``(v) provide for graduation to the use of
non-Federal funds to carry out the project or
program, consistent with requirements
established by the Secretary.
``(B) Agricultural trade organization.--The project
or program shall be designed and carried out by the
agricultural trade organization.
``(C) Additional requirements.--An agricultural
market development plan shall contain such additional
requirements as are determined necessary by the
Secretary.
``(4) Administrative costs.--
``(A) In general.--The Secretary shall make funds
made available to carry out this title available for
the reimbursement of administrative expenses incurred
by agricultural trade organizations in developing,
implementing, and administering agricultural market
development plans, subject to such requirements and in
such amounts as the Secretary considers appropriate.
``(B) Duration.--The funds shall be made available to
agricultural trade organizations for the duration of
the applicable agricultural market development plan.
``(C) Termination.--The Secretary may terminate
assistance made available under this subsection if the
agricultural trade organization is not carrying out the
approved agricultural market development plan.''.
SEC. 414. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1703) is amended--
``(1) in subsection (a)(2)(A)--
(A) by striking ``a recipient country to make''; and
(B) by striking ``such country'' and inserting ``the
appropriate country'';
(2) in subsection (c), by striking ``less than 10
nor''; and
(3) in subsection (d)--
(A) by striking ``recipient country'' and inserting
``developing country or private entity''; and
(B) by striking ``7'' and inserting ``5''.
SEC. 415. USE OF LOCAL CURRENCY PAYMENT.
Section 104 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1704) is amended--
(1) in subsection (a), by striking ``recipient country'' and
inserting ``developing country or private entity''; and
(2) in subsection (c)--
(A) by striking ``recipient country'' each place it
appears and inserting ``appropriate developing
country''; and
(B) in paragraph (3), by striking ``recipient
countries'' and inserting ``appropriate developing
countries''.
SEC. 416. ELIGIBLE ORGANIZATIONS.
Section 202 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1722) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Nonemergency Assistance.--
``(1) In general.--The Administrator may provide agricultural
commodities for nonemergency assistance under this title
through eligible organizations (as described in subsection (d))
that have entered into an agreement with the Administrator to
use the commodities in accordance with this title.
``(2) Limitation.--The Administrator may not deny a request
for funds or commodities submitted under this subsection
because the program for which the funds or commodities are
requested--
``(A) would be carried out by the eligible
organization in a foreign country in which the Agency
for International Development does not have a mission,
office, or other presence; or
``(B) is not part of a development plan for the
country prepared by the Agency.''; and
(2) in subsection (e)--
(A) in the subsection heading, by striking ``Private
Voluntary Organizations and Cooperatives'' and
inserting ``Eligible Organizations'';
(B) in paragraph (1)--
(i) by striking ``$13,500,000'' and inserting
``$28,000,000''; and
(ii) by striking ``private voluntary
organizations and cooperatives to assist such
organizations and cooperatives'' and inserting
``eligible organizations described in
subsection (d), to assist the organizations'';
(C) in paragraph (3), by striking ``a private
voluntary organization or cooperative, the
Administrator may provide assistance to that
organization or cooperative'' and inserting ``an
eligible organization, the Administrator may provide
assistance to the eligible organization''.
SEC. 417. GENERATION AND USE OF FOREIGN CURRENCIES.
Section 203 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1723) is amended--
(1) in subsection (a), by inserting ``, or in a country in
the same region,'' after ``in the recipient country'';
(2) in subsection (b)--
(A) by inserting ``or in countries in the same
region,'' after ``in recipient countries,''; and
(B) by striking ``10 percent'' and inserting ``15
percent'';
(3) in subsection (c), by inserting ``or in a country in the
same region,'' after ``in the recipient country,''; and
(4) in subsection (d)(2), by inserting ``or within a country
in the same region'' after ``within the recipient country''.
SEC. 418. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.
Section 204(a) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--
(1) in paragraph (1), by striking ``amount that'' and all
that follows through the period at the end and inserting
``amount that for each of fiscal years 1996 through 2002 is not
less than 2,025,000 metric tons.'';
(2) in paragraph (2), by striking ``amount that'' and all
that follows through the period at the end and inserting
``amount that for each of fiscal years 1996 through 2002 is not
less than 1,550,000 metric tons.''; and
(3) in paragraph (3), by adding at the end the following:
``No waiver shall be made before the beginning of the
applicable fiscal year.''.
SEC. 419. FOOD AND CONSULTATIVE GROUP.
Section 205 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1725) is amended--
(1) in subsection (a), by striking ``private voluntary
organizations, cooperatives and indigenous non-governmental
organizations'' and inserting ``eligible organizations
described in section 202(d)(1)'';
(2) in subsection (b)--
(A) in paragraph (2), by striking ``for International
Affairs and Commodity Programs'' and inserting ``of
Agriculture for Farm and Foreign Agricultural
Services'';
(B) in paragraph (4), by striking ``and'' at the end;
(C) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(6) representatives from agricultural producer groups in
the United States.'';
(3) in the second sentence of subsection (d), by inserting
``(but at least twice per year)'' after ``when appropriate'';
and
(4) in subsection (f), by striking ``1995'' and inserting
``2002''.
SEC. 420. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.
(a) In General.--Section 306(b) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--
(1) in the subsection heading, by striking ``Indigenous Non-
Governmental'' and inserting ``Nongovernmental''; and
(2) by striking ``utilization of indigenous'' and inserting
``utilization of''.
(b) Conforming Amendment.--Section 402 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended
by striking paragraph (6) and inserting the following:
``(6) Nongovernmental organization.--The term
`nongovernmental organization' means an organization that works
at the local level to solve development problems in a foreign
country in which the organization is located, except that the
term does not include an organization that is primarily an
agency or instrumentality of the government of the foreign
country.''.
SEC. 421. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1731) is amended--
(1) by striking subsections (a) through (d) and inserting the
following:
``(a) Availability of Commodities.--No agricultural commodity
shall be available for disposition under this Act if the Secretary
determines that the disposition would reduce the domestic supply of the
commodity below the supply needed to meet domestic requirements and
provide adequate carryover (as determined by the Secretary), unless the
Secretary determines that some part of the supply should be used to
carry out urgent humanitarian purposes under this Act.'';
(2) by redesignating subsections (e) and (f) as subsections
(b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by striking
``(e)(1)'' and inserting ``(b)(1)''.
SEC. 422. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1733) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking
``Consultations'' and inserting ``Impact on Local
Farmers and Economy''; and
(B) by striking ``consult with'' and all that follows
through ``other donor organizations to'';
(2) in subsection (c)--
(A) by striking ``from countries''; and
(B) by striking ``for use'' and inserting ``or use'';
(3) in subsection (f)--
(A) by inserting ``or private entities, as
appropriate,'' after `'from countries''; and
(B) by inserting ``or private entities'' after ``such
countries''; and
(4) in subsection (i)(2), by striking subparagraph (C).
SEC. 423. AGREEMENTS.
Section 404 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1734) is amended--
(1) in subsection (a), by inserting ``with foreign
countries'' after ``Before entering into agreements'';
(2) in subsection (b)(2)--
(A) by inserting `'with foreign countries'' after
``with respect to agreements entered into''; and
(B) by inserting before the semicolon at the end the
following: ``and broad-based economic growth''; and
(3) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) In general.--Agreements to provide assistance on a
multi-year basis to recipient countries or to eligible
organizations--
``(A) may be made available under titles I and III;
and
``(B) shall be made available under title II.''.
SEC. 424. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736a) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``or private
entity that enters into an agreement under title I''
after ``importing country''; and
(B) in paragraph (2), by adding at the end the
following: ``Resulting contracts may contain such terms
and conditions as the Secretary determines are
necessary and appropriate.'';
(2) in subsection (c)--
(A) in paragraph (1)(A), by inserting ``importer or''
before ``importing country''; and
(B) in paragraph (2)(A), by inserting ``importer or''
before ``importing country'';
(3) in subsection (d)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Freight procurement.--Nothwithstanding the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 471
et seq.) or other similar provisions of law relating to the
making or performance of Federal Government contracts, ocean
transportation under titles II and III may be procured on the
basis of such full and open competitive procedures. Resulting
contracts may contain such terms and conditions, as the
Administrator determines are necessary and appropriate.''; and
(B) by striking paragraph (4);
(4) in subsection (g)(2)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) an assessment of the progress towards achieving
food security in each country receiving food assistance
from the United States Government, with special
emphasis on the nutritional status of the poorest
populations in each country.''; and
(5) by striking subsection (h).
SEC. 425. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736b) is amended by striking ``1995''
and inserting ``2002''.
SEC. 426. REGULATIONS.
Section 409 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.
SEC. 427. INDEPENDENT EVALUATION OF PROGRAMS.
Section 410 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.
SEC. 428. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 412 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1736f) is amended--
(1) by striking subsections (b) and (c) and inserting the
following:
``(b) Transfer of Funds.--Nothwithstanding any other provision
of law, the President may direct that--
``(1) up to 15 percent of the funds available for any fiscal
year for carrying out title I or III of this Act be used to
carry out any other title of this Act; and
``(2) up to 100 percent of funds available for title III be
used to carry out title II.''; and
(2) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively.
(b) Relation to Other Waiver.--Section 204(a)(3) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1724(a)(3)) is amended by inserting ``all authority to transfer from
title I under section 412 has been exercised with respect to that
fiscal year and'' after ``any fiscal year if''.
SEC. 429. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.
Section 413 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1736g) is amended by inserting ``title
III of'' before ``this Act'' each place it appears.
SEC. 430. USE OF CERTAIN LOCAL CURRENCY.
Title IV of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1731 et seq.) (as amended by section 222) is
further amended by adding at the end the following:
``SEC. 416. USE OF CERTAIN LOCAL CURRENCY.
``Local currency payments received by the United States
pursuant to agreements entered into under title I (as in effect on
November 27, 1990) may be utilized by the Secretary in accordance with
section 108 (as in effect on November 27, 1990).''.
SEC. 431. LEVEL OF ASSISTANCE TO FARMER TO FARMER PROGRAM.
Section 501(c) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737(c)) is amended--
(1) by striking ``0.2'' and inserting ``0.4'';
(2) by striking ``0.1'' and inserting ``0.2''; and
(3) by striking ``1991 through 1955'' and inserting ``1996
through 2002''.
SEC. 432. FOOD SECURITY COMMODITY RESERVE.
(a) Food Security Commodity Reserve Act of 1995.--The title
heading of title III of the Agricultural Act of 1980 (7 U.S.C. 1736f-1
note) is amended by striking ``FOOD SECURITY WHEAT RESERVE ACT OF
1980'' and inserting ``FOOD SECURITY COMMODITY RESERVE ACT OF 1995''.
(b) Short Title.--Section 301 of the Act (7 U.S.C. 1736f-1
note) is amended by striking ``Food Security Wheat Reserve Act of
1980'' and inserting ``Food Security Commodity Reserve Act of 1995''.
(c) In General.--Section 302 of the Act (7 U.S.C. 1736f-1) is
amended--
(1) in the section heading, by striking ``FOOD SECURITY WHEAT
RESERVE'' and inserting ``FOOD SECURITY COMMODITY RESERVE'';
(2) so that subsection (a) reads as follows:
``(a) In General.--To provide for a reserve solely to meet
emergency humanitarian food needs in developing countries, the
Secretary shall establish a reserve stock of wheat, rice, corn, or
sorghum, or any combination of the commodities, totaling not more than
4,000,000 metric tons for use as described in subsection (c).'';
(3) so that subsection (b)(1) reads as follows:
``(b) Commodities in Reserve.--
``(1) In general.--The reserve established under this section
shall consist of--
``(A) wheat in the reserve established under the Food
Security Commodity Reserve Act of 1980 as of the date
of enactment of the Food For Peace Reauthorization Act
of 1995;
``(B) wheat, rice, corn, and sorghum (referred to in
this section as `eligible commodities') acquired in
accordance with paragraph (2) to replenish eligible
commodities released from the reserve, including wheat
to replenish wheat released from the reserve
established under the Food Security Wheat Reserve Act
of 1980 but not replenished as of the date of enactment
of the Food For Peace Reauthorization Act of 1995; and
``(C) such rice, corn, and sorghum as the Secretary
of Agriculture (referred to in this section as the
`Secretary') may, at such time and in such manner as
the Secretary determines appropriate, acquire as a
result of exchanging an equivalent value of wheat in
the reserve established under this section.'';
(4) in subsection (b)(2)--
(A) by striking ``(2)(A) Subject to'' and inserting
the following:
``(2) Replenishment of Reserve.--
``(A) In general.--Subject to;
(B) in subparagraph (A)--
(i) by striking ``(i) of this section stocks
of wheat'' and inserting ``(i) stocks of
eligible commodities'';
(ii) in clause (ii), by striking ``stocks of
wheat'' and inserting ``stocks of eligible
commodities''; and
(iii) in the second sentence, by striking
``wheat'' and inserting ``eligible
commodities''; and
(C) in subpagraph (B)--
(i) by striking ``(B) Not later'' and
inserting ``(B) Time for replenishment of
reserve.--Not later''; and
(ii) in clause (ii), by striking ``wheat''
and inserting ``eligible commodities'';
(5) so that subsections (c) through (f) read as follows:
``(c) Release of Eligible Commodities.--
``(1) Determination.--If the Secretary determines that the
amount of commodities allocated for minimum assistance under
section 204(a)(1) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1724(a)(1)) less the amount of
commodities allocated for minimum non-emergency assistance
under section 204(a)(2) of the Act (7 U.S.C. 1724(a)(2)) will
be insufficient to meet the need for commodities for emergency
assistance under section 202(a) of the Act (7 U.S.C. 1722(a)),
the Secretary in any fiscal year may release from the reserve--
``(A) up to 500,000 metric tons of wheat or the
equivalent value of eligible commodities other than
wheat; and
``(B) any eligible commodities which under
subparagraph (A) could have been released but were not
released in prior fiscal years.
``(2) Availability of commodities.--Commodities released
under paragraph (1) shall be made available under title II of
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1721 et seq.) for emergency assistance.
``(3) Exchange.--The Secretary may exchange an eligible
commodity for another United States commodity of equal value,
including powdered milk, pulses, and vegetable oil.
``(4) Use of normal commercial practices.--To the maximum
extend practicable consistent with the fulfillment of the
purposes of this section and the effective and efficient
administration of this section, the Secretary shall use the
usual and customary channels, facilities, arrangements, and
practices of the trade and commerce.
``(5) Waiver of minimum tonnage requirements.--Nothing in
this subsection shall require the exercise of the waiver under
section 204(a)(3) of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite
for the release of eligible commodities under this subsection.
``(d) Transportation and Handling Costs.--
``(1) In general.--The cost of transportation and handling of
eligible commodities released from the reserve established
under this section shall be paid by the Commodity Credit
Corporation in accordance with section 406 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736).
``(2) Reimbursement.--
``(A) In general.--The Commodity Credit Corporation
shall be reimbursed for the costs incurred under
paragraph (1) from the funds made available to carry
out the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1691 et seq.)
``(B) Basis for reimbursement.--The reimbursement
shall be made on the basis of the lesser of the actual
cost incurred by the Commodity Credit Corporation less
any savings achieved as a result of decreased storage
and handling costs for the reserve.
``(C) Decreased storage and handling costs.--For
purposes of this subsection, `decreased storage and
handling costs' shall mean the total actual costs for
storage and handling incurred by the Commodity Credit
Corporation for the reserve established under title III
of the Agricultural Act of 1980 in fiscal year 1995
less the total actual costs for storage and handling
incurred by the Corporation for the reserve established
under this Act in the fiscal year for which the savings
are calculated.
``(e) Management of Reserve.--The Secretary shall provide for--
``(1) the management of eligible commodities in the reserve
as to location and quality of commodities needed to meet
emergency situations; and
``(2) the periodic rotation of eligible commodities in the
reserve to avoid spoilage and deterioration of such stocks.
``(f) Treatment of Reserve Under Other Law.--Eligible
commodities in the reserve established under this section shall not
be--
``(1) considered a part of the total domestic supply
(including carryover) for the purpose of administering the
Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1691 et seq.); and
``(2) subject to any quantitative limitation on exports that
may be imposed under section 7 of the Export Administration Act
of 1979 (50 U.S.C. App. 2406).'';
(6) in subsection (g)--
(A) by striking ``(g)(1) The'' and inserting the
following:
``(g) Use of Commodity Credit Corporation.--The'';
(B) by striking ``wheat'' and inserting ``an eligible
commodity''; and
(C) by striking paragraph (2);
(7) in subsection (h)--
(A) by striking ``(h) Any'' and inserting:
``(h) Finality of Determination.--Any''; and
(B) by striking ``President or the Secretary of
Agriculture'' and inserting ``Secretary''; and
(8) in subsection (i)--
(A) by striking ``(i) The'' and inserting:
``(i) Termination of Authority.--The'';
(B) by striking ``wheat'' each place it appears and
inserting ``eligible commodities''; and
(C) by striking ``1995'' each place it appears and
inserting ``2002''.
(d) Effective Date.--Section 303 of the Act (7 U.S.C. 1736-1
note) is amended by striking ``October 1, 1980'' and all that follows
through the end of the section and inserting ``on the date of enactment
of this Act.''.
(e) Conforming Amendment.--Section 208(d)(2) of the Agriculture
Trade Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)(2)) is
amended to read as follows:
``(2) Applicability of certain provisions.--Subsections
(b)(2), (c), (e), and (f) of section 302 of the Food Security
Commodity Reserve Act of 1995 shall apply to commodities in any
reserve established under paragraph (1), except that the
references to `eligible commodities' in the subsections shall
be deemed to be references to `agricultural commodities'.''.
SEC. 423. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1)'' and inserting
``(b)''; and
(ii) in the first sentence, by inserting
``intergovernmental organizations'' after
``cooperatives''; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ``203'' and inserting
``406'';
(3) in subsection (f)--
(A) in paragraph (1), by striking ``in the case of
the independent states of the former Soviet Union,'';
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ``in each of
fiscal years 1996 through 2002'' after ``may be used'';
and
(D) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (g), by striking ``1995'' and inserting
``2002'';
(5) in subsection (j), by striking ``shall'' and inserting
``may'';
(6) in subsection (k), by striking ``1995'' and inserting
``2002'';
(7) in subsection (l)(1)--
(A) by striking ``1991 through 1995'' and inserting
``1996 through 2002''; and
(B) by inserting ``, and to provide technical
assistance for monetization programs,'' after
``monitoring of food assistance programs''; and
(8) in subsection (m)--
(A) by striking ``with respect to the independent
states of the former Soviet Union'';
(B) by striking ``private voluntary organizations and
cooperatives'' each place it appears and inserting
``agricultural trade organizations, intergovernmental
organizations, private voluntary organizations, and
cooperatives''; and
(C) in paragraph (2), by striking ``in the
independent states''.
Subtitle C--Amendments to Agricultural Trade Act of 1978
SEC. 451. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) In General.--Section 103 of the Agricultural Trade Act of
1978 (7 U.S.C. 5603) is amended to read as follows:
``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
``(a) In General.--The Secretary shall develop a strategy for
implementing Federal agricultural export promotion programs that takes
into account the new market opportunities for agricultural products,
including opportunities that result from--
``(1) the North American Free Trade Agreement and the Uruguay
Round Agreements;
``(2) any accession to membership in the World Trade
Organization;
``(3) the continued economic growth in the Pacific Rim; and
``(4) other developments.
``(b) Purpose of Strategy.--The strategy developed under
subsection (a) shall encourage the maintenance, development, and
expansion of export markets for United States agricultural commodities
and related products, including high-value and value-added products.
``(c) Goals of Strategy.--The strategy developed under
subsection (a) shall have the following goals:
``(1) By September 30, 2002, increasing the value of annual
United States agricultural exports to $60,000,000,000.
``(2) By September 30, 2002, increasing the United States
share of world export trade in agricultural products
significantly above the average United States share from 1993
through 1995.
``(3) By September 30, 2002, increasing the United States
share of world trade in high-value agricultural products to 20
percent.
``(4) Ensuring that the value of United States exports of
agricultural products increases at a faster rate than the rate
of increase in the value of overall world export trade in
agricultural products.
``(5) Ensuring that the value of United States exports of
high-value agricultural products increases at a faster rate
than the rate of increase in overall world export trade in
high-value agricultural products.
``(6) Ensuring to the extent practicable that--
``(A) substantially all obligations undertaken in the
Uruguay Round Agreement on Agriculture that provide
significantly increased access for United States
agricultural commodities are implemented to the extent
required by the Uruguay Round Agreements; or
``(B) applicable United States trade laws are used to
secure United States rights under the Uruguay Round
Agreement on Agriculture.
``(d) Priority Markets.--
``(1) Identification of markets.--In developing the strategy
required under subsection (a), the Secretary shall identify as
priority markets--
``(A) those markets in which imports of agricultural
products show the greatest potential for increase by
September 30, 2002; and
``(B) those markets in which, with the assistance of
Federal export promotion programs, exports of United
States agricultural products show the greatest
potential for increase by September 30, 2002.
``(2) Identification of supporting offices.--The President
shall identify annually in the budget of the United States
Government submitted under section 1105 of title 31, United
States Code, each overseas office of the Foreign Agricultural
Service that provides assistance to United States exporters in
each of the priority markets identified under paragraph (1).
``(e) Report.--Not later than December 31, 2001, the Secretary
shall prepare and submit a report to Congress assessing progress in
meeting the goals established by subsection (c).
``(f) Failure To Meet Goals.--Notwithstanding any other law, if
the Secretary determines that more than 2 of the goals established by
subsection (c) are not met by September 30, 2002, the Secretary may not
carry out agricultural trade programs under the Agricultural Trade Act
of 1978 (7 U.S.C. 5601 et seq.) as of that date.
``(g) No Private Right of Action.--This section shall not
create any private right of action.''.
(b) Continuation of Funding.--
(1) In General.--If the Secretary of Agriculture makes a
determination under section 103(f) of the Agricultural Trade
Act of 1978 (as amended by subsection (a)), the Secretary shall
utilize funds of the Commodity Credit Corporation to promote
United States agricultural exports in a manner consistent with
the Commodity Credit Corporation Chapter Act (15 U.S.C. 714 et
seq.) and obligations pursuant to the Uruguay Round Agreements.
(2) Funding.--The amount of Commodity Credit Corporation
funds used to carry out paragraph (1) during a fiscal year
shall not exceed the total outlays for agricultural trade
programs under the Agricultural Trade Act of 1978 (7 U.S.C.
5601 et seq.) during fiscal year 2002.
(c) Elimination of Report.--
(1) In general.--Section 601 of the Agricultural Trade Act of
1978 ( 7 U.S.C. 5711) is repealed.
(2) Conforming amendment.--The last sentence of section 603
of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is
amendment by striking ``, in a consolidated report,'' and all
that follows through ``section 601'' and inserting `` or in a
consolidated report''.
SEC. 452. EXPORT CREDITS.
(a) Export Credit Guarantee Program.--Section 202 of the
Agricultural Trade Act of 1978 ( 7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--The'' and inserting
the following ``Guarantees.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Supplier credits.--In carrying out this section, the
Commodity credit Corporation may issue guarantees for the
repayment of credit made available for a period of not more
than 180 days by a United States exporter to a buyer in a
foreign country.'';
(2) in subsection (f)--
(A) by striking ``(f) Restrictions.--The'' and
inserting the following:
``(f) Restrictions.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Criteria for determination.--In making the
determination required under paragraph (1) with respect to
credit guarantees under subsection (b) for a country, the
Secretary may consider, in addition to financial,
macroeconomic, and monetary indicators--
``(A) whether an International Monetary Fund
standby agreement, Paris Club rescheduling plan, or
other economic restructuring plan is in place with
respect to the country;
``(B) the convertibility of the currency of the
country;
``(C) whether the country provides adequate legal
protection for foreign investments;
``(D) whether the country has viable financial
markets;
``(E) whether the country provides adequate legal
protection for the private property rights of citizens
of the country; and
``(F) any other factors that are relevant to the
ability of the country to service the debt of the
country.'';
(3) by striking subsection (h) and inserting the following:
``(h) United States Agricultural Components.--The Commodity
Credit Corporation shall finance or guarantee under this section only
United States agricultural commodities.'';
(4) in subsection (i)--
(A) by striking ``Institutions.--A financial'' and
inserting the following: ``Institutions.--
``(1) In general.--A financial'';
(B) by striking paragraph (1);
(C) by striking ``(2) is'' and inserting the
following:
``(A) is'';
(D) by striking ``(3) is'' and inserting the
following:
``(B) is''; and
(E) by adding at the end the following:
``(2) Third country banks.--The Commodity Credit
Corporation may guarantee under subsections (a) and (b) the
repayment of credit made available to finance an export sale
irrespective of whether the obligor is located in the country
to which the export sale is destined.''; and
(5) by striking subsection (k) and inserting the following:
``(k) Processed and High-Value Products.--
``(1) In general.--In issuing export credit guarantees
under this section, the Commodity Credit Corporation shall,
subject to paragraph (2), ensure that not less than 25 percent
for each of fiscal years 1996 and 1997, 30 percent for each of
fiscal years 1998 and 1999, and 35 percent of each of fiscal
years 2000, 2001, and 2002, of the total amount of credit
guarantees issued for a fiscal year is issued to promote the
export of processed or high-value agricultural products and
that the balance is issued to promote the export of bulk or raw
agricultural commodities.
``(2) Limitation.--The percentage requirement of paragraph
(1) shall apply for a fiscal year to the extent that a
reduction in the total amount of credit guarantees issued for
the fiscal year is not required to meet the percentage
requirement.''.
(b) Funding Levels.--Section 211(b) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5641(b)) is amended--
(1) by striking paragraph (2);
(2) by redesignating subparagraph (B) of paragraph (1) as
paragraph (2) and indenting the margin of paragraph (2) (as so
redesignated) so as to align with the margin of paragraph (1);
and
(3) by striking paragraph (1) and inserting the following:
``(1) Export credit guarantees.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996
through 2002 not less than $5,500,000,000 in credit guarantees
under subsections (a) and (b) of section 202.''.
(c) Definitions.--Section 102(7) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5602(7)) is amended by striking subparagraphs (A)
and (B) and inserting the following:
``(A) an agricultural commodity or product entirely
produced in the United States; or
``(B) a product of an agricultural commodity--
``(i) 90 percent or more of the
agricultural components of which by weight,
excluding packaging and added water, is
entirely produced in the United States; and
``(ii) that the Secretary determines to be
a United States high value agricultural
product.''.
(d) Regulations.--Not later than 180 days after the effective
date of this title, the Secretary of agriculture shall issue
regulations to carry out the amendments made by this section.
SEC. 453. EXPORT PROGRAM AND FOOD ASSISTANCE TRANSFER AUTHORITY.
The Secretary of Agriculture shall fully utilize and
aggressively implement the full range of agricultural export programs
authorized in this Act and any other Act, in any combination, to help
United States agriculture maintain and expand export markets, promote
United States agricultural commodity and product exports, counter
subsidized foreign competition, and capitalize on potential new market
opportunities. Consistent with United States obligations under GATT, if
the Secretary determines that funds available under 1 or more export
subsidy programs cannot be fully or effectively utilized for such
programs, the Secretary may utilize such funds for other authorized
agricultural export and food assistance programs to achieve the above
objectives and to further enhance the overall global competitiveness of
United States agriculture. Funds so utilized shall be in addition to
funds which may otherwise be authorized or appropriated for such other
agricultural export programs.
SEC. 454. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C.
5662(a)) is amended by striking subsection (a) and inserting the
following:
``(a) Arrival Certification.--With respect to a commodity
provided, or for which financing or a credit guarantee or other
assistance is made available, under a program authorized in section
201, 202, or 301, the Commodity Credit Corporation shall require the
exporter of the commodity to maintain records of an official or
customary commercial nature or other documents as the Secretary may
require, and shall allow representatives of the Commodity Credit
Corporation access to the records or documents as needed, to verify the
arrival of the commodity in the country that was the intended
destination of the commodity.''.
SEC. 455. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C.
5664) is repealed.
SEC. 456. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C.
5693) is amended to read as follows:
``SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICULTURAL SERVICE.
``The Service shall assist the Secretary in carrying out the
agricultural trade policy and international cooperation policy of the
United States by--
``(1) acquiring information pertaining to agricultural trade;
``(2) carrying out market promotion and development
activities;
``(3) providing agricultural technical assistance and
training; and
``(4) carrying out the programs authorized under this Act,
the Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.), and other Acts.''.
SEC. 457. REPORTS.
The first sentence of section 603 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5713) is amended by striking ``The'' and inserting
``Subject to section 217 of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6917), the''.
Subtitle D--Miscellaneous
SEC. 471. REPORTING REQUIREMENTS RELATING TO TOBACCO.
Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C.
509) is repealed.
SEC. 472. TRIGGERED EXPORT ENHANCEMENT.
(a) Readjustment of Support Levels.--Section 1302 of the
Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C.
1421 note) is repealed.
(b) Triggered Marketing Loans and Export Enhancement.--Section
4301 of the Omnibus Trade and Competitiveness Act of 1988 (Public Law
100-418; 7 U.S.C. 1446 note) is repealed.
(c) Effective Date.--The amendments made by this section shall
be effective beginning with the 1996 crops of wheat, feed grains,
upland cotton, and rice.
SEC. 473. DISPOSITION OF COMMODITIES TO PREVENT WASTE.
Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is
amended--
(1) in subsection (b)--
(A) in paragraph (1), by inserting after the first
sentence the following: ``The Secretary may use funds
of the Commodity Credit Corporation to cover
administrative expenses of the programs.'';
(B) in paragraph (7)(D)(iv), by striking ``one year
of acquisition'' and all that follows and inserting the
following: ``a reasonable length of time, as determined
by the Secretary, except that the Secretary may permit
the use of proceeds in a country other than the country
of origin--
``(I) as necessary to expedite the transportation of
commodities and products furnished under this
subsection; or
``(II) if the proceeds are generated in a currency
generally accepted in the other country.'';
(C) in paragraph (8), by striking subparagraph (C);
and
(D) by striking paragraphs (10), (11), and (12); and
(2) by striking subsection (c).
SEC. 474. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) In General.--Section 1517 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
(b) Conforming Amendment.--Subsection (e)(3) of the Food for
Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking
``section 106'' and inserting ``section 103''.
SEC. 475. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.
Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736m) is repealed.
SEC. 476. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.
Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p)
is amended--
(1) by striking subsection (a); and
(2) in subsection (b)--
(A) by striking ``(b)''; and
(B) by striking paragraphs (1) through (4) and
inserting the following:
``(1) be the premier supplier of agricultural and food
products to world markets and expand exports of high value
products;
``(2) support the principle of free trade and the promotion
of fair trade in agricultural commodities and products;
``(3) cooperate fully in all efforts to negotiate with
foreign countries further reductions in tariff and nontariff
barriers to trade, including sanitary and phytosanitary
measures and trade-distorting subsidies;
``(4) aggressively counter unfair foreign trade practices as
a means of encouraging fairer trade;''.
SEC. 477. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q)
is repealed.
SEC. 478. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r)
is amended to read as follows:
``SEC. 1123. TRADE NEGOTIATIONS POLICY.
``(a) Findings.--Congress finds that--
``(1) on a level playing field, United States producers are
the most competitive suppliers of agricultural products in the
world;
``(2) exports of United States agricultural products will
account for $54,000,000,000 in 1995, contributing a net
$24,000,000,000 to the merchandise trade balance of the United
States and supporting approximately 1,000,000 jobs;
``(3) increased agricultural exports are critical to the
future of the farm, rural, and overall United States economy,
but the opportunities for increased agricultural exports are
limited by the unfair subsidies of the competitors of the
United States, and a variety of tariff and nontariff barriers
to highly competitive United States agricultural products;
``(4) international negotiations can play a key role in
breaking down barriers to United States agricultural exports;
``(5) the Uruguay Round Agreement on Agriculture made
significant progress in the attainment of increased market
access opportunities for United States exports of agricultural
products, for the first time--
``(A) restraining foreign trade-distorting domestic
support and export subsidy programs; and
``(B) developing common rules for the application of
sanitary and phytosanitary restrictions;
that should result in increased exports of United States
agricultural products, jobs, and income growth in the United
States;
``(6) the Uruguay Round Agreement on Agriculture did not
succeed in completely eliminating trade distorting domestic
support and export subsidies by--
``(A) allowing the European Union to continue
unreasonable levels of spending on export subsidies;
and
``(B) failing to discipline monopolistic state
trading entities, such as the Canadian Wheat Board,
that use nontransparent and discriminatory pricing as a
hidden de facto export subsidy;
``(7) during the period 1996 through 2002, there will be
several opportunities for the United States to negotiate fairer
trade in agricultural products, including further negotiations
under the World Trade Organization, and steps toward possible
free trade agreements of the Americas and Asian-Pacific
Economic Cooperation (APEC); and
``(8) the United States should aggressively use these
opportunities to achieve more open and fair opportunities for
trade in agricultural products.
``(b) Goals of the United States in Agricultural Trade
Negotiations.--The objectives of the United States with respect to
future negotiations on agriculture trade include--
``(1) increasing opportunities for United States exports of
agricultural products by eliminating tariff and nontariff
barriers to trade;
``(2) leveling the playing field for United States producers
of agricultural products by limiting per unit domestic
production supports to levels that are no greater than those
available in the United States;
``(3) ending the practice of export dumping by eliminating
all trade distorting export subsidies and disciplining state
trading entities so that they do not (except in cases of bona
fide food aid) sell in foreign markets at below domestic market
prices nor their full costs of acquiring and delivering
agricultural products to the foreign markets; and
``(4) encouraging government policies that avoid price-
depressing surpluses.''.
SEC. 479. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Public Law 99-
198; 99 Stat. 1499) is repealed.
SEC. 480. AGRICULTURAL AID AND TRADE MISSIONS.
(a) In General.--The Agricultural Aid and Trade Missions Act (7
U.S.C. 1736bb et seq.) is repealed.
(b) Conforming Amendment.--Section 7 of Public Law 100-277 (7
U.S.C. 1736bb note) is repealed.
SEC. 481. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C.
1748(b)(1)(B)) is amended by striking ``including fruits, vegetables,
legumes, popcorn, and ducks''.
SEC. 482. WORLD LIVESTOCK MARKET PRICE INFORMATION.
Section 1545 of the Food, Agriculture, Conservation, and Trade
Act of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.
SEC. 483. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C.
1851 and 1857) are repealed.
SEC. 484. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is
repealed.
SEC. 485. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging Eurasian
Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7
U.S.C. 5621 note) is amended by striking subsection (d).
SEC. 486. EMERGING MARKETS.
(a) Promotion of Agricultural Exports to Emerging Markets.--
(1) Emerging markets.--Section 1542 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 7
U.S.C. 5622 note) is amended--
(A) in the section heading, by striking ``EMERGING
DEMOCRACIES'' and inserting ``EMERGING MARKETS'';
(B) by striking ``emerging democracies'' each place
it appears in subsections (b), (d), and (e) and
inserting ``emerging markets'';
(C) by striking ``emerging democracy'' each place it
appears in subsection (c) and inserting ``emerging
market''; and
(D) by striking subsection (f) and inserting the
following:
``(f) Emerging Market.--In this section and section 1543, the
term `emerging market' means any country that the Secretary
determines--
``(1) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors of the
economy of the country; and
``(2) has the potential to provide a viable and significant
market for United States agricultural commodities or products
of United States agricultural commodities.''.
(2) Funding.--Section 1542 of the Food, Agriculture,
Conservation, and Trade Act of 1990 is amended by striking
subsection (a) and inserting the following:
``(a) Funding.--The Commodity Credit Corporation shall make
available for fiscal years 1996 through 2002 not less than
$1,000,000,000 of direct credits or export credit guarantees for
exports to emerging markets under section 201 or 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in addition to
the amounts acquired or authorized under section 211 of the Act (7
U.S.C. 5641) for the program.''.
(3) Agricultural fellowship program.--Section 1542 of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended--
(A) in subsection (b), by striking the last sentence
and inserting the following: ``The Commodity Credit
Corporation shall give priority under this subsection
to--
``(A) projects that encourage the privatization of
the agricultural sector or that benefit private farms
or cooperatives in emerging markets; and
``(B) projects for which nongovernmental persons
agree to assume a relatively larger share of the
costs.''; and
(B) in subsection(d)--
(i) in the matter preceding paragraph (1), by
striking ``the Soviet Union'' and inserting
``emerging markets'';
(ii) in paragraph (1)--
(I) in subparagraph (A)(i)--
(aa) by striking ``1995'' and
inserting ``2002''; and
(bb) by striking ``those
systems, and identify'' and
inserting ``the systems,
including potential reductions
in trade barriers, and identify
and carry out'';
(II) in subparagraph (B), by striking
``shall'' and inserting ``may'';
(III) in subparagraph (D), by
inserting ``(including the
establishment of extension services)''
after ``technical assistance'';
(IV) by striking subparagraph (F);
(V) by redesignating subparagraphs
(G)(H), and (I) as subparagraphs (F),
(G), and (H), respectively; and
(VI) in subparagraph (H) (as
redesignated by subclause (V)), by
striking ``$10,000,000'' and inserting
``$20,000,000'';
(iii) in paragraph (2)--
(I) by striking ``the Soviet Union''
each place it appears and inserting
``emerging markets'';
(II) in subparagraph (A), by striking
``a free market food production and
distribution system'' and inserting
``free market food production and
distribution systems'';
(III) in subparagraph (B)--
(aa) in clause (i), by
striking ``Government'' and
inserting ``governments'';
(bb) in clause (iii)(II), by
striking ``and'' at the end;
(cc) in clause (iii)(III), by
striking the period at the end
and inserting ``; and''; and
(dd) by adding at the end of
clause (iii) the following:
``(IV) to provide for the exchange of
administrators and faculty members from
agricultural and other institutions to
strengthen and revise educational
programs in agricultural economics,
agribusiness, and agrarian law, to
support change towards a free market
economy in emerging markets.'';
(IV) by striking subparagraph (D);
and
by redesignating subparagraph (E) as
subparagraph (D); and
(iv) by striking paragraph (3).
(4) United states agricultural commodity.--Subsections (b)
and (c) of section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 are amended by striking ``section
101(6)'' each place it appears and inserting ``section
102(7)''.
(5) Report.--The first sentence of section 1542(e)(2) of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended by striking ``Not'' and inserting ``Subject to section
217 of the Department of Agriculture Reorganization Act of 1994
(7 U.S.C. 6917), not''.
(b) Agricultural Fellowship Program for Middle Income
Countries, Emerging Democracies, and Emerging Markets.--Section 1543 of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C.
3293) is amended--
(1) in the section heading, by striking ``MIDDLE INCOME
COUNTRIES AND EMERGING DEMOCRACIES'' and inserting ``MIDDLE
INCOME COUNTRIES, EMERGING DEMOCRACIES, AND EMERGING MARKETS'';
(2) in subsection (b), by adding at the end the following:
``(5) Emerging market.--Any emerging market, as defined in
section 1542(f).''; and
(3) in subsection (c)(1), by striking ``food needs'' and
inserting ``food and fiber needs''.
(c) Conforming Amendments.--
(1) Section 501 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737 is amended--
(A) in subsection (a), by striking ``emerging
democracies'' and inserting ``emerging markets''; and
(B) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) Emerging market.--The term `emerging market' means any
country that the Secretary determines--
(A) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business
sectors of the economy of the country; and
``(B) has the potential to provide a viable and
significant market for United States agricultural
commodities or products of United States agricultural
commodities.''.
(2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act of
1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking
``emerging democracies'' and inserting ``emerging markets''.
(3) Section 202(d)(3)(B) of the Agricultural Trade Act of
1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ``emerging
democracies'' and inserting ``emerging markets''.
SEC. 487. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.
Part III of subtitle A of title IV of the Uruguay Round
Agreements Act (Public Law 103-465; 108 Stat. 4964) is amended by
adding at the end the following:
``SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND
AGREEMENTS
``Not later than September 30 of fiscal year, the Secretary of
Agriculture shall determine whether the obligations undertaken by
foreign countries under the Uruguay Round Agreement on Agriculture are
being fully implemented. If the Secretary of Agriculture determines
that any foreign country, by not implementing the obligations of the
country, is significantly constraining an opportunity for United States
agricultural exports, the Secretary shall--
``(1) submit to the United States Trade Representative a
recommendation as to whether the President should take action
under any provision of law; and
``(2) transmit a copy of the recommendation to the Committee
on Agriculture, the Committee on International Relations, and
the Committee on Ways and Means, of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry, and the Committee on Finance, of the Senate.''.
SEC. 488. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON
CREDIT GUARANTEES.
It is the sense of Congress that--
(1) in negotiations to establish multilateral disciplines on
agricultural export credits and credit guarantees, the United
States should not agree to any arrangement that is incompatible
with the provisions of United States law that authorize
agricultural export credits and credit guarantees;
(2) in the negotiations (which are held under the auspices of
the Organization for Economic Cooperation and Development), the
United States should not reach any agreement that fails to
impose disciplines on the practices of foreign government
trading entities such as the Australian Wheat Board and
Canadian Wheat Board; and
(3) the disciplines should include greater openness in the
operations of the entities as long as the entities are
subsidized by the foreign government or have monopolies for
exports of a commodity that are sanctioned by the foreign
government.
SEC. 489. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is
amended by adding at the end the following:
``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM
``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.
``In this title, the term `eligible trade organization' means a
United States trade organization that--
``(1) promotes the export of 1 or more United States
agricultural commodities or products; and
``(2) does not have a business interest in or receive
remuneration from specific sales of agricultural commodities or
products.
``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
``(a) In General.--The Secretary shall establish and, in
cooperation with eligible trade organizations, carry out a foreign
market development cooperator program to maintain and develop foreign
markets for United States agricultural commodities and products.
``(b) Administration.--Funds made available to carry out this
title shall be used only to provide--
``(1) cost-share assistance to an eligible trade organization
under a contract or agreement with the organization; and
``(2) assistance for other costs that are necessary or
appropriate to carry out the foreign market development
cooperator program, including contingent liabilities that are
not otherwise funded.
``SEC. 703. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title such sums as may be necessary for each of fiscal years 1996
through 2002.''.
Subtitle E--Dairy Exports
SEC. 491. DAIRY EXPORT INCENTIVE PROGRAM
(a) In General.--Section 153(c) of the Food Security Act of
1985 (15 U.S.C. 713a-14(c)) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting '';''; and
(3) by adding at the end the following new paragraphs:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States as a
member of the World Trade Organization are exported under the
program each year (minus the volume sold under section 1163 of
the Food Security Act of 1985 (7 U.S.C. 1731 note) during that
year), except to the extent that the export of such a volume
under the program would, in the judgment of the Secretary,
exceed the limitations on the value set forth in subsection
(f); and
``(4) payments may be made under the program for exports to
any destination in the world for the purpose of market
development, except a destination in a country with respect to
which shipments from the United States are otherwise restricted
by law.''.
(b) Sole Discretion.--Section 153(b) of the Food Security Act
of 1985 (15 U.S.C. 713a-14(b)) is amended by inserting ``sole'' before
``discretion''.
(c) Market Development.--Section 153(e)(1) of the Food
Security Act of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--
(1) by striking ``and'' and inserting ``the''; and
(2) by inserting before the period the following: '', and
any additional amount that may be required to assist in the
development of world markets for United States dairy
products''.
(d) Maximum Allowable Amounts.--Section 153 of the Food
Security Act of 1985 (15 U.S.C. 713a-14) is amended by adding at the
end the following:
``(f) Required Funding.--The Commodity Credit Corporation
shall in each year use money and commodities for the program under this
section in the maximum amount consistent with the obligations of the
United States as a member of the World Trade Organization, minus the
amount expended under section 1163 of the Food Security Act of 1985 (7
U.S.C. 1731 note) during that year. However, the Commodity Credit
Corporation may not exceed the limitations specified in subsection
(c)(3) on the volume of allowable dairy product exports.''.
(e) Conforming Amendment.--Section 153(a) of the Food
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking
``2001'' and inserting ``2002''.
SEC. 492. AUTHORITY TO ASSIST IN ESTABLISHMENT AND MAINTENANCE OF
EXPORT TRADING COMPANY.
The Secretary of Agriculture shall, consistent with the
obligations of the United States as a member of the World Trade
Organization, provide such advice and assistance to the United States
dairy industry as may be necessary to enable that industry to establish
and maintain an export trading company under the Export Trading Company
Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating
the international market development for and exportation of dairy
products produced in the United States.
SEC. 493. STANDBY AUTHORITY TO INDICATE ENTITY BEST SUITED TO PROVIDE
INTERNATIONAL MARKET DEVELOPMENT AND EXPORT SERVICES.
(a) Indication of Entity Best Suited to Assist International
Market Development for and Export of United States Dairy Products.--
If--
(1) the United States dairy industry has not established an
export trading company under the Export Trading Company Act of
1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating
the international market development for an exportation of
dairy products produced in the United States on or before June
30, 1996; or
(2) the quantity of exports of United States dairy products
during the 12-month period preceding July 1, 1997 does not
exceed the quantity of exports of United States dairy products
during the 12-month period preceding July 1, 1996 by 1.5
billion pounds (milk equivalent, total solids basis);
the Secretary of Agriculture is directed to indicate which entity
autonomous of the Government of the United States is best suited to
facilitate the international market development for and exportation of
United States dairy products.
(b) Funding of Export Activities.--The Secretary shall assist
the entity in identifying sources of funding for the activities
specified in subsection (a) from within the diary industry and
elsewhere.
(c) Application of Section.--This section shall apply only
during the period beginning on July 1, 1997 and ending on September 30,
2000.
SEC. 494. STUDY AND REPORT REGARDING POTENTIAL IMPACT OF URUGUAY ROUND
ON PRICES, INCOME AND GOVERNMENT PURCHASES.
(a) Study.--The Secretary of Agriculture shall conduct a
study, on a variety by variety of cheese basis, to determine the
potential impact on milk prices in the United States, dairy producer
income, and Federal dairy program costs, of the allocation of
additional cheese granted access to the United States as a result of
the obligations of the United States as a member of the world Trade
Organization.
(b) Report.--Not later than June 30, 1997, the Secretary
shall report to the Committees on Agriculture of the Senate and the
House of Representatives the results of the study conducted under this
section.
(c) Rule of Construction.--Any limitation imposed by Act of
Congress on the conduct or completion of studies or reports to Congress
shall not apply to the study and report required under this section
unless such limitation explicitly references this section in doing so.
SEC. 495. PROMOTION OF UNITED STATES DAIRY PRODUCTS IN INTERNATIONAL
MARKETS THROUGH DAIRY PROMOTION PROGRAM.
Section 113(e) of the Dairy Production Stabilization Act of
1983 (7 U.S.C. 4504(e)) is amended by adding at the end the following
new sentence: ``For each of the fiscal years 1996 through 2000, the
Board's budget shall provide for the expenditure of not less than 10
percent of the anticipated revenues available to the Board to develop
international markets for, and to promote within such markets, the
consumption of dairy products produced in the United States from milk
produced in the United States.''.
TITLE V--MISCELLANEOUS
SEC. 501. CROP INSURANCE.
(a) Catastrophic Risk Protection.--Section 508(b) of the Federal
Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
(1) in paragraph (4), by adding at the end the following:
``(C) Delivery of coverage.--
``(i) In general.--In full consultation
with approved insurance providers, the
Secretary may continue to offer catastrophic
risk protection in a State (or a portion of a
State) through local offices of the Department
if the Secretary determines that there is an
insufficient number of approved insurance
providers operating in the State or portion to
adequately provide catastrophic risk protection
coverage to producers.
``(ii) Coverage by approved insurance
providers.--To the extent that catastrophic
risk protection coverage by approved insurance
providers is sufficiently available in a State
as determined by the Secretary, only approved
insurance providers may provide the coverage in
the State.
``(iii) Current policies.--Subject to
clause (ii), all catastrophic risk protection
policies written by local offices of the
Department shall be transferred to the approved
insurance provider for performance of all
sales, service, and loss adjustment functions.
Any fees in connection with such policies that
are not yet collected at the time of the
transfer shall be payable to the approved
insurance providers assuming the policies.'';
and
(2) in paragraph (7), by striking subparagraph (A) and
inserting the following:
``(A) In general.--Effective for the spring-planted
1996 and subsequent crops, to be eligible for any
payment or loan under title I of the Agricultural
Market Transition Act or the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1281 et seq.), for the
conservation reserve program, or for any benefit
described in section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f), a person
shall--
``(i) obtain at least the catastrophic
level of insurance for each crop of economic
significance in which the person has an
interest; or
``(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connection
with the crop.''.
(b) Coverage of Seed Crops.--Section 519(a)(2)(B) of the Act (7
U.S.C. 1519(a)(2)(B)) is amended by inserting ``seed crops,'' after
``turfgrass sod,''.
SEC. 502. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION
FEES.
Subsection (a) of section 2509 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read
as follows:
``(a) Quarantine and Inspection Fees.--
``(1) Fees authorized.--The Secretary of Agriculture may
prescribe and collect fees sufficient--
``(A) to cover the cost of providing agricultural
quarantine and inspection services in connection with
the arrival at a port in the customs territory of the
United States, or the preclearance or preinspection at
a site outside the customs territory of the United
States, of an international passenger, commercial
vessel, commercial aircraft, commercial truck, or
railroad car;
``(B) to cover the cost of administering this
subsection; and
``(C) through fiscal year 2002, to maintain a
reasonable balance in the Agricultural Quarantine
Inspection User Fee Account established under paragraph
(5).
``(2) Limitation.--In setting the fees under paragraph (1),
the Secretary shall ensure that the amount of the fees are
commensurate with the costs of agricultural quarantine and
inspection services with respect to the class of persons or
entities paying the fees. The costs of the services with
respect to passengers as a class includes the costs of related
inspections of the aircraft or other vehicle.
``(3) Status of fees.--Fees collected under this subsection
by any person on behalf of the Secretary are held in trust for
the United States and shall be remitted to the Secretary in
such manner and at such times as the Secretary may prescribe.
``(4) Late payment penalties.--If a person subject to a fee
under this subsection fails to pay the fee when due, the
Secretary shall assess a late payment penalty, and the overdue
fees shall accrue interest, as required by section 3717 of
title 31, United States Code.
``(5) Agricultural quarantine inspection user fee
account.--
``(A) Establishment.--There is established in the
Treasury of the United States a no-year fund, to be
known as the `Agricultural Quarantine Inspection User
Fee Account', which shall contain all of the fees
collected under this subsection and late payment
penalties and interest charges collected under
paragraph (4) through fiscal year 2002.
``(B) Use of account.--For each of the fiscal years
1996 through 2002, funds in the Agricultural Quarantine
Inspection User Fee Account shall be available, in such
amounts as are provided in advance in appropriations
Acts, to cover the costs associated with the provision
of agricultural quarantine and inspection services and
the administration of this subsection. Amounts made
available under this subparagraph shall be available
until expended.
``(C) Excess fees.--Fees and other amounts
collected under this subsection in any of the fiscal
years 1996 through 2002 in excess of $100,000,000 shall
be available for the purposes specified in subparagraph
(B) until expended, without further appropriation.
``(6) Use of amounts collected after fiscal year 2002.--
After September 30, 2002, the unobligated balance in the
Agricultural Quarantine Inspection User Fee Account and fees
and other amounts collected under this subsection shall be
credited to the Department of Agriculture accounts that incur
the costs associated with the provision of agricultural
quarantine and inspection services and the administration of
this subsection. The fees and other amounts shall remain
available to the Secretary until expended without fiscal year
limitation.
``(7) Staff years.--The number of full-time equivalent
positions in the Department of Agriculture attributable to the
provision of agricultural quarantine and inspection services
and the administration of this subsection shall not be counted
toward the limitation on the total number of full-time
equivalent positions in all agencies specified in section 5(b)
of the Federal Workforce Restructuring Act of 1994 (Public Law
103-226; 5 U.S.C. 3101 note) or other limitation on the total
number of full-time equivalent positions.''.
SEC. 503. COMMODITY CREDIT CORPORATION INTEREST RATE.
Notwithstanding any other provision of law, the monthly Commodity
Credit Corporation interest rate applicable to loans provided for
agricultural commodities by the Corporation shall be 100 basis points
greater than the rate determined under the applicable interest rate
formula in effect on October 1, 1995.
SEC. 504. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.
(a) Establishment.--The Department of Agriculture Reorganization
Act of 1994 is amended by inserting after section 226 (7 U.S.C. 6932)
the following new section:
``SEC. 226A. OFFICE OF RISK MANAGEMENT.
``(a) Establishment.--Subject to subsection (e), the Secretary
shall establish and maintain in the Department an independent Office of
Risk Management.
``(b) Functions of the Office of Risk Management.--The Office of
Risk Management shall have jurisdiction over the following functions:
``(1) Supervision of the Federal Crop Insurance
Corporation.
``(2) Administration and oversight of all aspects,
including delivery through local offices of the Department, of
all programs authorized under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).
``(3) Any pilot or other programs involving revenue
insurance, risk management savings accounts, or the use of the
futures market to manage risk and support farm income that may
be established under the Federal Crop Insurance Act or other
law.
``(4) Such other functions as the Secretary considers
appropriate.
``(c) Administrator.--
``(1) The Office of Risk Management shall be headed by an
Administrator who shall be appointed by the Secretary.
``(2) The Administrator of the Office of Risk Management
shall also serve as Manager of the Federal Crop Insurance
Corporation.
``(d) Resources.--
``(1) Functional coordination.--Certain functions of the
Office of Risk Management, such as human resources, public
affairs, and legislative affairs, may be provided by a
consolidation of such functions under the Under Secretary of
Agriculture for Farm and Foreign Agricultural Services.
``(2) Minimum provisions.--Notwithstanding paragraph (1) or
any other provision of law or order of the Secretary, the
Secretary shall provide the Office of Risk Management with
human and capital resources sufficient for the Office to carry
out its functions in a timely and efficient manner.''.
(b) Fiscal Year 1996 Funding.--From funds appropriated for the
salaries and expenses of the Consolidated Farm Service Agency in the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1996 (Public Law 104-37), the
Secretary of Agriculture may use such sums as necessary for the
salaries and expenses of the Office of Risk Management established
under subsection (a).
(c) Conforming Amendment.--Section 226(b) of the Act (7 U.S.C.
6932(b)) is amended by striking paragraph (2).
SEC. 505. BUSINESS INTERRUPTION INSURANCE PROGRAM.
(a) Establishment of Program.--Not later than December 31, 1996,
the Secretary of Agriculture shall implement a program (to be known as
the ``Business Interruption Insurance Program''), under which the
producer of a contract commodity could elect to obtain revenue
insurance coverage to ensure that the producer receives an indemnity
payment if the producer suffers a loss of revenue. The nature and
extent of the program and the manner of determining the amount of an
indemnity payment shall be established by the Secretary.
(b) Report on Progress and Proposed Expansion.--Not later than
January 1, 1998, the Secretary shall submit to the Commission on 21st
Century Production Agriculture the data and results of the program
through October 1, 1997. In addition, the Secretary shall submit
information and recommendations to the Commission with respect to the
program that will serve as the basis for the Secretary to offer revenue
insurance to agricultural producers, at one or more levels of coverage,
that--
(1) is in addition to, or in lieu of, catastrophic and
higher levels of crop insurance;
(2) is offered through reinsurance arrangements with
private insurance companies;
(3) is actuarially sound; and
(4) requires the payment of premiums and administrative
fees by participating producers.
(c) Contract Commodity Defined.--In this section, the term
``contract commodity'' means a crop of wheat, corn, grain sorghum,
oats, barley, upland cotton, or rice.
SEC. 506. CONTINUATION OF OPTIONS PILOT PROGRAM.
During the 1996 through 2002 crop years, the Secretary of
Agriculture may continue to conduct the options pilot program
authorized by 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). To
the extent that the Secretary decides to continue the options pilot
program, the Secretary shall modify the terms and conditions of the
pilot program to reflect the changes to law made by this Act.
SEC. 507. EVERGLADES AGRICULTURAL AREA.
(a) In General.--On July 1, 1996, out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury
shall provide $210,000,000 to the Secretary of the Interior to carry
out this section.
(b) Entitlement.--The Secretary of the Interior--
(1) shall accept the funds made available under subsection
(a):
(2) shall be entitled to receive the funds; and
(3) shall use the funds to conduct restoration activities in
the Everglades ecosystem, which may include acquiring private
acreage in the Everglades Agricultural Area including
approximately 52,000 acres that is commonly known as the
``Talisman tract''.
(c) Transferring Funds.--The Secretary of the Interior may
transfer funds to the Army Corps of Engineers, the State of Florida, or
the South Florida Water Management District to carry out subsection
(b)(3).
(d) Deadline.--Not later than December 31, 1999, the Secretary
of the Interior shall utilize the funds for restoration activities
referred to in subsection (b)(3).
SEC. 508. SENSE OF CONGRESS REGARDING PURCHASE OF AMERICAN-MADE
EQUIPMENT AND PRODUCTS; REQUIREMENT REGARDING NOTICE.
(a) Purchase of American-made Equipment and Products.--In the case
of any equipment or products that may be authorized to be purchased
with financial assistance provided under this Act or amendments made by
this Act, it is the sense of the Congress that persons receiving such
assistance should, in expending the assistance, purchase only American-
made equipment and products.
(b) Notice to Recipients of Assistance.--In providing financial
assistance under this Act or amentments made by this Act, the Secretary
of Agriculture shall provide to each recipient of the assistance a
notice describing the statement made in subsection (a) by the Congress.
TITLE VI--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
SEC. 601. ESTABLISHMENT.
There is hereby established a commission to be known as the
``Commission on 21st Century Production Agriculture'' (in this title
referred to as the ``Commission'').
SEC. 602. COMPOSITION.
(a) Membership and 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.--At least one of the members appointed under
each of the paragraphs (1), (2), and (3) of subsection (a) shall be an
individual who is primarily involved in production agriculture. All
other members of the Commission shall be appointed from among
individuals 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 Act 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. 603. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION
AGRICULTURE.
(a) Initial Review.--The Commission shall conduct a comprehensive
review of changes in the condition of production agriculture in the
United States since the date of the enactment of this Act and the
extent to which such changes are the result of the amendments made by
this Act. The review shall include the following:
(1) An assessment of the initial success of production
flexibility contracts under section 103 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 farmland 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.
(7) An assessment of the likely affect of the sale, lease,
or transfer of farm poundage quota for peanuts across State
lines.
(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 personnel 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. 604. REPORTS.
(a) Report on Initial Review.--Not later than June 1, 1998, 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 603(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 603(b).
SEC. 605. POWERS.
(a) Hearings.--The Commission may, for the purpose of carrying out
this Act, 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 as may be necessary for the Commission to carry out its
duties under this Act. 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. 606. 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. 607. 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 Act 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 GS-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. 608. TERMINATION OF COMMISSION.
The Commission shall terminate upon submission of the final report
required by section 604.
TITLE VII--EXTENSION OF CERTAIN AUTHORITIES
SEC. 701. EXTENSION OF AUTHORITY UNDER PUBLIC LAW 480.
Section 408 of the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1736b) is amended by striking ``1995'' and
inserting ``1996''.
SEC. 702. EXTENSION OF FOOD FOR PROGRESS PROGRAM.
Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o),
also known as the Food for Progress Act of 1985, is amended--
(1) in subsection (k), by striking ``1995'' and inserting
``1996''; and
(2) in subsection (l), by striking ``1995'' and inserting
``1996''.
Passed the House of Representatives February 29, 1996.
Attest:
Clerk.