[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 338

104th CONGRESS

  2d Session

                               H. R. 2854

_______________________________________________________________________

                                 AN ACT

       To modify the operation of certain agricultural programs.

_______________________________________________________________________

            February 29 (legislative day, February 28), 1996

            Received; read twice and placed on the calendar
                                                       Calendar No. 338
104th CONGRESS
  2d Session
                                H. R. 2854


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            February 29 (legislative day, February 28), 1996

            Received; read twice and placed on the calendar

_______________________________________________________________________

                                 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:

                                                ROBIN H. CARLE,

                                                                 Clerk.

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