[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2854 Reported in House (RH)]

                                                 Union Calendar No. 223

104th CONGRESS

  2d Session

                               H. R. 2854

                  [Report No. 104-462, Parts I and II]

_______________________________________________________________________

                                 A BILL

       To modify the operation of certain agricultural programs.

_______________________________________________________________________

                            February 9, 1996

      Reported from the Committee on Agriculture with an amendment

                            February 9, 1996

   Referral to the Committee on Ways and Means extended for a period 
                 ending not later than February 9, 1996

                            February 9, 1996

 Committee on Ways and Means discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
                                                 Union Calendar No. 223
104th CONGRESS
  2d Session
                                H. R. 2854

                  [Report No. 104-462, Parts I and II]

       To modify the operation of certain agricultural programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1996

   Mr. Roberts (for himself, Mr. Emerson, Mr. Allard, Mr. Barrett of 
 Nebraska, Mr. Ewing, Mr. Combest, Mr. Boehner, Mr. Chambliss, and Mr. 
 Nethercutt) introduced the following bill; which was referred to the 
Committee on Agriculture, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                            February 9, 1996

 Additional sponsors: Mr. Tiahrt, Mr. Everett, Mr. Lewis of Kentucky, 
   Mr. Smith of Michigan, Mr. Chrysler, Mr. Ehlers, and Mr. Gunderson

                            February 9, 1996

      Reported from the Committee on Agriculture with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            February 9, 1996

   Referral to the Committee on Ways and Means extended for a period 
                 ending not later than February 9, 1996

                            February 9, 1996

 Committee on Ways and Means discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on January 
                                5, 1996]

_______________________________________________________________________

                                 A BILL


 
       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

          Subtitle A--Milk Price Support and Other Activities

Sec. 201. Milk price support program.
Sec. 202. Recourse loans for commercial processors of dairy products.
Sec. 203. Dairy export incentive program.
Sec. 204. Dairy promotion program.
Sec. 205. Fluid milk standards under milk marketing orders.
Sec. 206. Manufacturing allowance.
Sec. 207. Establishment of temporary Class I price and temporary Class 
                            I equalization pools.
Sec. 208. Establishment of temporary Class IV price and temporary Class 
                            IV equalization pool.
Sec. 209. Authority for establishment of standby pools.

          Subtitle B--Reform of Federal Milk Marketing Orders

Sec. 221. Issuance or amendment of Federal milk marketing orders to 
                            implement certain reforms.
Sec. 222. Reform process.
Sec. 223. Effect of failure to comply with reform process requirements.

                        TITLE III--CONSERVATION

Sec. 301. Conservation.

          TITLE IV--AGRICULTURAL PROMOTION AND EXPORT PROGRAMS

Sec. 401. Market promotion program.
Sec. 402. Export enhancement 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.

      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)).
            (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) Corn.--The term ``corn'' means field corn.
            (7) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (8) 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 
        title V of the Agricultural Act of 1949 (as in effect prior to 
        the amendment made by section 109(b)(2)).
            (9) Loan commodity.--The term ``loan commodity'' means each 
        contract commodity, extra long staple cotton, and oilseeds.
            (10) 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.
            (11) Person.--The term ``person'' means an individual, 
        partnership, firm, joint-stock company, corporation, 
        association, trust, estate, or State agency.
            (12) Producer.--
                    (A) In general.--The term ``producer'' means a 
                person who, as owner, landlord, tenant, or 
                sharecropper, shares in the risk of producing a crop, 
                and is entitled to share in the crop available for 
                marketing from the farm, or would have shared had the 
                crop been produced.
                    (B) Hybrid seed.--The term ``producer'' includes a 
                person growing hybrid seed under contract. In 
                determining the interest of a grower of hybrid seed in 
                a crop, the Secretary shall not take into consideration 
                the existence of a hybrid seed contract.
            (13) Program.--The term ``program'' means the agricultural 
        market transition program established under this title.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) 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.
            (16) 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 comply with--
                    (A) 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) 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) the planting flexibility requirements of 
                subsection (j).
            (2) Eligible owners and operators described.--The following 
        persons shall be considered to be an owner or operator 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 operators who are 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.--The total amount of contract payments made 
to a person under a contract during any fiscal year may not exceed the 
payment limitations established under sections 1001 through 1001C of 
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3).
    (h) Effect of Violation.--
            (1) Termination of contract.--Except as provided in 
        paragraph (2), if an owner or operator subject to a contract 
        violates the conservation plan for the farm containing eligible 
        farmland under the contract, wetland protection requirements 
        applicable to the farm, or the planting flexibility 
        requirements of subsection (j), 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.
            (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 on a farm that is planted for harvest to 
                alfalfa 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 411 
        of the Agricultural Adjustment Act of 1938.
            (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, \1/2\ 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) Marketing 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 at the end of the 1996 
                marketing year 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'';
                    (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 basic quota (the 
                farm quota exclusive of temporary quota transfers), 
                plus any poundage quota transferred to the farm under 
                this subsection, has been planted or considered planted 
                on the farm from which the quota is to be 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 of 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 or employee 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

          Subtitle A--Milk Price Support and Other Activities

SEC. 201. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--To replace the milk price support program 
established under section 204 of the Agricultural Act of 1949 (7 U.S.C. 
1446e), which is repealed by section 109(b)(2)), the Secretary of 
Agriculture shall use the authority provided in this section to support 
the price of milk produced in the 48 contiguous States through the 
purchase of cheddar cheese produced from such milk. Until the first day 
of the first month beginning not less than 30 days after the date of 
the enactment of this Act, the Secretary also may support the price of 
milk under this section through the purchase of butter and nonfat dry 
milk produced from milk produced in the 48 contiguous States.
    (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, not less than $10.35.
            (2) During calendar year 1997, not less than $10.25.
            (3) During calendar year 1998, not less than $10.15.
            (4) During calendar year 1999, not less than $10.05.
            (5) During calendar year 2000, not less than $9.95.
            (6) During calendar years 2001 and 2002, not less than 
        $9.85.
    (c) Bid Prices.--The Commodity Credit Corporation support purchase 
prices under this section for cheddar cheese (and for butter and nonfat 
dry milk subject to subsection (a)) announced by the Corporation shall 
be the same for all of that milk product sold by persons offering to 
sell the product to the Corporation. The purchase prices shall be 
sufficient to enable plants of average efficiency to pay producers, on 
average, a price not less than the rate of price support for milk in 
effect during a 12-month period under this section.
    (d) Use of Commodity Credit Corporation.--The Secretary shall use 
the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this section.
    (e) Residual Authority for Refund of Budget Deficit Assessments.--
            (1) Application of subsection.--This subsection shall apply 
        with respect to the reductions made under subsection (h)(2) of 
        section 204 of the Agricultural Act of 1949, as in effect on 
        the day before the date of the enactment of this Act, in the 
        price of milk received by producers during calendar years 1995 
        and 1996.
            (2) Refund required.--The Secretary shall provide a refund 
        of the entire reduction made under such subsection (h)(2) in 
        the price of milk received by a producer during a calendar year 
        referred to in paragraph (1) if the producer provides evidence 
        that the producer did not increase marketings in that calendar 
        year when compared to the preceding calendar year.
            (3) Treatment of refunds.--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, 3821).
    (g) Transfer of Milk Products to Military and Veterans Hospitals.--
            (1) Transfer authorized.--As a means of increasing the 
        utilization of milk and milk products, upon the certification 
        by the Secretary of Veterans Affairs or by the Secretary of the 
        Army, acting for the military departments under the Single 
        Service Purchase Assignment for Subsistence of the Department 
        of Defense, that the usual quantities of milk products have 
        been purchased in the normal channels of trade, the Commodity 
        Credit Corporation shall make available--
                    (A) to the Secretary of Veterans Affairs at 
                warehouses where milk products are stored, such milk 
                products acquired under this section as the Secretary 
                of Veterans Affairs certifies are required in order to 
                provide milk products as a part of the ration in 
                hospitals under the jurisdiction of the Secretary of 
                Veterans Affairs; and
                    (B) to the Secretary of the Army, at warehouses 
                where milk products are stored, such milk products 
                acquired under this section as the Secretary of the 
                Army certifies can be utilized in order to provide 
                additional milk products as a part of the ration--
                            (i) of the Army, Navy, Air Force, or Coast 
                        Guard;
                            (ii) in hospitals under the jurisdiction of 
                        the Department of Defense; and
                            (iii) of cadets and midshipmen at, and 
                        other personnel assigned to, the United States 
                        Merchant Marine Academy.
            (2) Reports.--The Secretary of Veterans Affairs and the 
        Secretary of the Army shall report every six months to the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        and the Committee on Agriculture of the House of 
        Representatives and the Secretary of Agriculture the amount of 
        milk products used under this subsection.
            (3) Process.--The Secretary of Veterans Affairs and the 
        Secretary of the Army shall reimburse the Commodity Credit 
        Corporation for all costs associated in making milk products 
        available under this subsection.
            (4) Limitation.--The obligation of the Commodity Credit 
        Corporation to make milk products available pursuant to this 
        subsection shall be limited to milk products acquired by the 
        Corporation under this section and not disposed of under 
        provisions (1) and (2) of section 390B(a) of the Agricultural 
        Adjustment Act of 1938.
    (h) Period of Effectiveness.--Notwithstanding any other provision 
of law, this section shall be effective only during the period--
            (1) beginning on the date of the enactment of this Act; and
            (2) ending on December 31, 2002.

SEC. 202. RECOURSE LOANS FOR COMMERCIAL PROCESSORS OF DAIRY PRODUCTS.

    (a) Recourse Loans Available.--The Secretary of Agriculture shall 
make recourse loans available to commercial processors of eligible 
dairy products to assist such processors to manage inventories of 
eligible dairy products to assure a greater degree of price stability 
for the dairy industry during the year. Recourse loans may be made 
available under such reasonable terms and conditions as the Secretary 
may prescribe. The Secretary shall use the funds, facilities, and 
authorities of the Commodity Credit Corporation to carry out this 
section.
    (b) Amount of Loan.--The Secretary shall establish the amount of a 
loan for eligible dairy products, which shall reflect 90 percent of the 
reference price for that product. The rate of interest charged 
participants in this program shall not be less than the rate of 
interest charged the Commodity Credit Corporation by the United States 
Treasury.
    (c) Period of Loans.--A recourse loan made under this section may 
not extend beyond the end of the fiscal year during which the loan is 
made, except that the Secretary may extend the loan for an additional 
period not to exceed the end of the next fiscal year.
    (d) Definitions.--In this section:
            (1) The term ``eligible dairy products'' means cheddar 
        cheese, butter, and nonfat dry milk.
            (2) The term ``reference price'' means--
                    (A) for cheddar cheese, the average National (Green 
                Bay) Cheese Exchange price for 40 pound blocks of 
                cheddar cheese for the previous three months;
                    (B) for butter, the average Chicago Mercantile 
                Exchange price for Grade AA butter for the previous 
                three months; and
                    (C) for nonfat dry milk, the average Western States 
                Extra Grade and Grade A price for nonfat dry milk for 
                the previous three months.

SEC. 203. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Duration.--Subsection (a) of section 153 of the Food Security 
Act of 1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
inserting ``2002''.
    (b) Elements of Program.--Subsection (c) of such section 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 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 
        this Act (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.''.
    (c) Sole Discretion.--Subsection (b) of such section is amended by 
inserting ``sole'' before ``discretion''.
    (d) Market Development.--Subsection (e)(1) of such section 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.--Such section is further 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 this Act (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.''.

SEC. 204. DAIRY PROMOTION PROGRAM.

    (a) Expansion To Cover Dairy Products Imported Into the United 
States.--Section 110(b) of the Dairy Production Stabilization Act of 
1983 (7 U.S.C. 4501(b)) is amended by inserting after ``commercial 
use'' the following: ``and dairy products imported into the United 
States''.
    (b) Definitions.--
            (1) Milk.--Subsection (d) of section 111 of such Act (7 
        U.S.C. 4502) is amended by inserting before the semicolon the 
        following: ``or cow's milk imported into the United States in 
        the form of dairy products intended for consumption in the 
        United States''.
            (2) Dairy products.--Subsection (e) of such section is 
        amended by inserting before the semicolon the following: ``and 
        casein (except casein imported under sections 3501.90.20 
        (casein glue) and 3501.90.50 (other) of the Harmonized Tariff 
        Schedule)''.
            (3) Research.--Subsection (j) of such section is amended by 
        inserting before the semicolon the following: ``or to reduce 
        the costs associated with processing or marketing those 
        products''.
            (4) United states.--Subsection (l) of such section is 
        amended to read as follows:
            ``(l) the term `United States' means the several States and 
        the District of Columbia;''.
            (5) Importers and exporters.--Such section is further 
        amended--
                    (A) in subsection (k), by striking ``and'' at the 
                end of such subsection; and
                    (B) by adding at the end the following new 
                subsections:
            ``(m) the term `importer' means the first person to take 
        title to dairy products imported into the United States for 
        domestic consumption; and
            ``(n) the term `exporter' means any person who exports 
        dairy products from the United States.''.
    (c) Membership of Board.--Section 113(b) of such Act (7 U.S.C. 
4504(b)) is amended--
            (1) in the first sentence, by striking ``thirty-six 
        members'' and inserting ``38 members, including one 
        representative of importers and one representative of exporters 
        to be appointed by the Secretary'';
            (2) in the second sentence, by striking ``Members'' and 
        inserting ``The remaining members''; and
            (3) in the third sentence, by striking ``United States'' 
        and inserting ``United States, including Alaska and Hawaii''.
    (d) Assessment.--Section 113(g) of such Act (7 U.S.C. 4504(g)) is 
amended--
    (1) by inserting ``(1)'' after ``(g)''; and
    (2) by adding at the end the following new paragraph:
    ``(2) The order shall provide that each importer of dairy products 
intended for consumption in the United States shall remit to the Board, 
in the manner prescribed by the order, an assessment equal to 1.2 cents 
per pound of total milk solids contained in the imported dairy 
products, or 15 cents per hundredweight of milk contained in the 
imported dairy products, whichever is less. If an importer can 
establish that it is participating in active, ongoing qualified State 
or regional dairy product promotion or nutrition programs intended to 
increase the consumption of milk and dairy products, the importer shall 
receive credit in determining the assessment due from that importer for 
contributions to such programs of up to .8 cents per pound of total 
milk solids contained in the imported dairy products, or 10 cents per 
hundredweight of milk contained in the imported dairy products, 
whichever is less. The assessment collected under this paragraph shall 
be used for the purpose specified in paragraph (1).''.
    (e) Records.--Section 113(k) of such Act (7 U.S.C. 4504(k)) is 
amended in the first sentence by inserting after ``commercial use,'' 
the following: ``each importer of dairy products,''.
    (f) Termination or Suspension of Order.--Section 116(b) of such Act 
(7 U.S.C. 4507(b)) is amended--
            (1) by inserting ``and importers'' after ``producers'' each 
        place it appears;
            (2) by striking ``who, during a representative period (as 
        determined by the Secretary), have been engaged in the 
        production of milk for commercial use''; and
            (3) by adding at the end the following new sentences: ``A 
        producer shall be eligible to vote in the referendum if the 
        producer, during a representative period (as determined by the 
        Secretary), has been engaged in the production of milk for 
        commercial use. An importer shall be eligible to vote in the 
        referendum if the importer, during a representative period (as 
        determined by the Secretary), has been engaged in the 
        importation of dairy products into the United States intended 
        for consumption in the United States.''.
    (g) Promotion in International Markets.--Section 113(e) of such Act 
(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.''.
    (h) Implementation of Amendments.--
            (1) Implementation process.--To implement the amendments 
        made by this section, the Secretary of Agriculture shall issue 
        an amended dairy products promotion and research order under 
        section 112 of the Dairy Production Stabilization Act of 1983 
        (7 U.S.C. 4503) reflecting such amendments, and no other 
        changes, in the order in existence on the date of the enactment 
        of this Act.
            (2) Proposal of amended order.--Not later than 60 days 
        after the date of the enactment of this Act, the Secretary 
        shall publish a proposed dairy products promotion and research 
        order reflecting the amendments made by this section. The 
        Secretary shall provide notice and an opportunity for public 
        comment on the proposed order.
            (3) Issuance of amended order.--After notice and 
        opportunity for public comment are provided in accordance with 
        paragraph (2), the Secretary shall issue a final dairy products 
        promotion and research order, taking into consideration the 
        comments received and including in the order such provisions as 
        are necessary to ensure that the order is in conformity with 
        the amendments made by this section.
            (4) Effective date.--The final dairy products promotion and 
        research order shall be issued and become effective not later 
        than 120 days after publication of the proposed order.
    (i) Referendum on Amendments.--Not later than 36 months after the 
issuance of the dairy products promotion and research order reflecting 
the amendments made by this section, the Secretary of Agriculture shall 
conduct a referendum under section 115 of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4506) for the sole purpose of 
determining whether the requirements of such amendments shall be 
continued. The Secretary shall conduct the referendum among persons who 
have been producers or importers (as defined in section 111 of such Act 
(7 U.S.C. 4502)) during a representative period as determined by the 
Secretary. The requirements of such amendments shall be continued only 
if the Secretary determines that such requirements have been approved 
by not less than a majority of the persons voting in the referendum. If 
continuation of the amendments is not approved, the Secretary shall 
issue a new order, within six months after the announcement of the 
results of the referendum, that is identical to the order in effect on 
the date of the enactment of this Act. The new order shall become 
effective upon issuance and shall not be subject to referendum for 
approval.

SEC. 205. FLUID MILK STANDARDS UNDER MILK MARKETING ORDERS.

    (a) Nature of Standards.--Each marketing order issued with respect 
to milk and its products under section 8c of the Agricultural 
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, shall contain terms and 
conditions to provide that all dispositions of fluid milk products 
containing milk of the highest use classification covered by such 
orders shall comply with the following requirements:
            (1) In the case of milk marketed as whole milk, not less 
        than 12.05 percent total milk solids consisting of not less 
        than 8.8 percent milk solids not fat and not less than 3.25 
        percent milk fat.
            (2) In the case of milk marketed as 2 percent (or lowfat) 
        milk, not less than 12 percent total milk solids consisting of 
        not less than 10 percent milk solids not fat and not less than 
        2 percent milk fat.
            (3) In the case of milk marketed as 1 percent (or light) 
        milk, not less than 12 percent total milk solids consisting of 
        not less than 11 percent milk solids not fat and not less than 
        1 percent milk fat.
            (4) In the case of milk marketed as skim (or nonfat) milk, 
        not less than 9 percent total milk solids consisting of not 
        less than 9 percent milk solids not fat and not more than .25 
        percent milk fat.
    (b) Violations.--A violation of the requirements specified in 
subsection (a) shall be subject to the penalties provided in section 
8c(14) of the Agricultural Adjustment Act (7 U.S.C. 608c(14)), 
reenacted with amendments by the Agricultural Marketing Agreement Act 
of 1937.
    (c) Effective Date.--The requirements imposed by this section shall 
apply to fluid milk marketed on and after the first day of the first 
month beginning not less than 30 days after the date of the enactment 
of this Act.

SEC. 206. MANUFACTURING ALLOWANCE.

    (a) Maximum Allowances Established.--No State shall provide for a 
manufacturing allowance for the processing of milk in excess of--
            (1) in the case of milk manufactured into butter, butter 
        oil, nonfat dry milk, or whole dry milk--
                    (A) $1.65 per hundredweight of milk, for milk 
                marketed during the 2-year period beginning on the 
                effective date of this section; and
                    (B) such allowance per hundredweight of milk as the 
                Secretary of Agriculture may establish under section 
                221(b)(3), for milk marketed after the end of such 
                period; and
            (2) in the case of milk manufactured into cheese and whey--
                    (A) $1.80 per hundredweight of milk, for milk 
                marketed during the 2-year period beginning on the 
                effective date of this section; and
                    (B) such allowance per hundredweight of milk as the 
                Secretary may establish under section 221(b)(3), for 
                milk marketed after the end of such period.
    (b) Yields.--In converting the weight of milk to dairy products 
during the two-year period beginning on the effective date of this 
section, the Secretary shall use the following yields with respect to a 
hundred pounds of milk:
            (1) Butter: 4.2 pounds.
            (2) Nonfat dry milk: 8.613 pounds.
            (3) 40 pound block cheddar cheese: 10.169 pounds.
            (4) Whey cream butter: .27 pounds.
    (c) Sources of Product Price Values.--In determining the 
manufacturing allowance applicable in a State during the 2-year period 
beginning on the effective date of this section, the Secretary shall 
use the following sources for product price values:
            (1) For butter, Chicago Mercantile Exchange Grade AA 
        butter.
            (2) For nonfat dry milk, California Manufacturing Plants 
        Extra Grade and Grade A nonfat dry milk.
            (3) For cheese, National (Green Bay) Cheese Exchange 40 
        pound block cheddar cheese.
            (4) For whey cream butter, Chicago Mercantile Exchange 
        Grade B butter.
    (d) Manufacturing Allowance Defined.--In this section, the term 
``manufacturing allowance'' means--
            (1) the amount by which the product price value of butter 
        and nonfat dry milk manufactured from a hundred pounds of milk 
        containing 3.5 pounds of milk fat and 8.7 pounds of milk solids 
        not fat exceeds the class price for the milk used to produce 
        those products; or
            (2) an amount by which the product price value of cheese 
        and whey manufactured from a hundred pounds of milk containing 
        3.6 pounds of milk fat and 8.7 pounds of milk solids not fat 
        exceeds the class price for the milk used to produce those 
        products.
    (e) Effect of Violation.--If the Secretary determines that a State 
has in effect a manufacturing allowance that exceeds the manufacturing 
allowance authorized in subsection (a), the Secretary shall suspend, 
until such time as the State complies with such subsection--
            (1) purchases under section 201 of cheddar cheese produced 
        in that State; and
            (2) disbursements from the Class IV equalization pool under 
        section 208 to milk marketing orders operating in that State 
        with respect to milk produced in that State.
    (f) Conforming Suspension and Repeal.--
            (1) Suspension and repeal.--During the 2-year period 
        beginning on the effective date of this section, the 
        requirements of section 102 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 1446e-1) shall 
        not apply. Effective on the first day after the end of such 
period, such section is repealed.
            (2) Exception.--Notwithstanding paragraph (1), in the event 
        that an injunction or other order of a court prohibits or 
        impairs the implementation of this section or the activities of 
        the Secretary under this section, the Secretary shall use the 
        authorities provided by section 102 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 1446e-1) until 
        such time as the injunction or other court order is lifted.
    (g) Effective Date; Implementation.--This section shall take effect 
on the first day of the first month beginning not less than 30 days 
after the date of the enactment of this Act. After such effective date, 
the Secretary may exercise the authority provided to the Secretary 
under this section without regard to the issuance of regulations 
intended to carry out this section.

SEC. 207. ESTABLISHMENT OF TEMPORARY CLASS I PRICE AND TEMPORARY CLASS 
              I EQUALIZATION POOLS.

    (a) Temporary Pricing for Milk of the Highest Use Classification 
(Class I Milk).--
            (1) Establishment of minimum price.--During the 2-year 
        period beginning on the effective date of this section, the 
        minimum price for milk of the highest use classification 
        marketed under a marketing order 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, 
        shall not be less than the sum of--
                    (A) $12.87 per hundredweight; and
                    (B) the aggregate adjustment in effect under 
                clauses (1) and (2) of the second sentence of paragraph 
                (5)(A) of such section on December 31, 1995, for milk 
                of the highest use classification in that order.
            (2) Addition to minimum price.--If the basic formula price 
        for milk exceeds $12.87 per hundredweight in any month during 
        the 2-year period beginning on the effective date of this 
        section, the positive difference between the basic formula 
        price and $12.87 shall be added to the price for milk of the 
        highest use classification marketed under a marketing order 
        issued under such section 8c in the second month following the 
        month in which the difference occurred.
            (3) Effect on other use classifications.--This subsection 
        shall not affect the calculation of the basic formula price 
        used to determine the price for milk of use classifications 
        other than the highest use classification.
    (b) Class I Equalization Pools.--
            (1) Collections.--During the 2-year period beginning on the 
        effective date of this section, the Secretary of Agriculture 
        shall collect, on a monthly basis, from each marketing order 
        issued with respect to milk and its products under section 8c 
        of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
        with amendments by the Agricultural Marketing Agreement Act of 
        1937, and from the comparable milk marketing order issued by 
        the State of California, an amount equal to the product of--
                    (A) $0.80 per hundredweight; and
                    (B) the total hundredweights of all milk of the 
                highest use classification marketed under the order for 
                the month.
            (2) Disbursements.--The Secretary shall pay, on a monthly 
        basis, to each marketing order referred to in paragraph (1) an 
        amount equal to the product of--
                    (A) the total collection under paragraph (1) for 
                the month; and
                    (B) the ratio of the total hundredweights of all 
                milk marketed for the month under that order to all 
                milk marketed for the month under all such orders.
            (3) Effect on blend prices.--Producer blend prices under a 
        milk marketing order shall be adjusted to account for 
        collections made under paragraph (1) and disbursements made 
        under paragraph (2).
    (c) Enforcement.--
            (1) In general.--Amounts for which a milk marketing order 
        are responsible under subsection (b) shall be determined on a 
        monthly basis and shall be collected and remitted to the 
        Secretary in the manner prescribed by the Secretary.
            (2) Penalties.--If any person fails to remit the amount 
        required in subsection (b) or fails to comply with such 
        requirements for recordkeeping or otherwise as are required by 
        the Secretary to carry out this section, the person shall be 
        liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of milk involved in the violation; 
                by
                    (B) the support rate for milk in effect at the time 
                of the violation under section 201.
            (3) Enforcement.--The Secretary may enforce this section in 
        the courts of the United States.
    (d) Conforming Repeal.--Section 8c(5)(A) of the Agricultural 
Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended by striking 
out the sentence beginning ``Throughout the 2-year period'' and all 
that follows through the end of the subparagraph.
    (e) Effective Date.--Except as provided in subsection (f), this 
section shall take effect on the first day of the first month beginning 
not less than 30 days after the date of the enactment of this Act.
    (f) Implementation.--Not later than the effective date of this 
section, 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 effectuate the requirements of this section. The amendments 
shall not be--
            (1) subject to a referendum under subsection (17) or (19) 
        of such section among milk producers to determine whether 
        issuance of such order is approved or favored by milk 
        producers;
            (2) preconditioned on the existence of a marketing 
        agreement among handlers under subsection (8) of such section 
        and section 8b of such Act (7 U.S.C. 608b);
            (3) subject to rulemaking under title 5, United States 
        Code; or
            (4) subject to review or approval by other executive 
        agencies.

SEC. 208. ESTABLISHMENT OF TEMPORARY CLASS IV PRICE AND TEMPORARY CLASS 
              IV EQUALIZATION POOL.

    (a) Temporary Classification of Class IV Milk.--
            (1) Classification.--For purposes of classifying milk in 
        accordance with the form in which or the purpose for which it 
        is used, the Secretary of Agriculture shall designate all milk 
        marketed in the 48 contiguous States of the United States and 
        used to produce butter, butter oil, nonfat dry milk, or dry 
        whole milk as Class IV milk. The Secretary may include other 
        products of milk, except cheese, within the Class IV 
        classification if the Secretary determines that inclusion of 
        the product would be fair and equitable.
            (2) Use of classification.--Each marketing order issued 
        with respect to milk and its products under section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937, 
        and each comparable State milk marketing order, shall use the 
        classification required by paragraph (1) in lieu of any other 
        classification, such as Class III-A milk, to properly classify 
        milk used to produce butter, butter oil, nonfat dry milk, or 
        dry whole milk.
    (b) Establishment of Class IV Pool.--The Secretary shall establish 
a Class IV pool for the purpose of making collections and disbursements 
related to milk classified as Class IV milk under subsection (a). The 
Class IV pool shall apply to milk covered by a milk marketing order 
referred to in subsection (a) and unregulated milk.
    (c) Establishment of Monthly Class IV Price.--For the purpose of 
determining whether the Secretary will make collections and 
disbursements under the Class IV equalization pool, the Secretary shall 
establish, on a monthly basis, a price for dairy products manufactured 
from Class IV milk on a 3.5 percent butterfat basis. In determining 
that price, the Secretary shall calculate the amount equal to--
            (1) the sum of--
                    (A) the product of the Western States Extra Grade 
                and Grade A price per pound for nonfat dry milk and 
                8.613; and
                    (B) the product of the Chicago Mercantile Exchange 
                Grade AA price per pound for butter and 4.2; less
            (2) a manufacturing allowance equal to $1.65 per 
        hundredweight of milk.
    (d) Operation of Class IV Equalization Pool.--
            (1) Application of subsection.--This subsection shall apply 
        in any month in which the support price for milk under section 
        201, adjusted to 3.5 percent butterfat, exceeds the Class IV 
        price established under subsection (c).
            (2) Collection.--In any month in which the Class IV 
        equalization pool is in operation under paragraph (1), each 
        milk marketing order referred to in subsection (a) and each 
        handler of unregulated milk shall pay into the Class IV 
        equalization pool an amount equal to the product of--
                    (A) the total hundredweights of Class IV milk used 
                to manufacture dairy products during that month under 
                all such orders and by all such handlers;
                    (B) 50 percent of the amount by which the support 
                price for milk under section 201, adjusted to 3.5 
                percent butterfat, exceeded the Class IV price 
                determined under subsection (c) for that month; and
                    (C) the ratio of the total hundredweights of all 
                milk marketed during that month under that order or by 
                that handler to the total hundredweights of all milk 
                marketed for that month under all such orders and by 
                all such handlers.
            (3) Disbursements.--In any month in which the Class IV 
        equalization pool is in operation under paragraph (1), each 
        milk marketing order referred to in subsection (a) in which 
        products were manufactured from Class IV milk during that month 
        and each handler of unregulated milk that manufactured products 
        from Class IV milk during that month shall receive from the 
        Class IV equalization pool an amount equal to the product of--
                    (A) the total collection under paragraph (2) for 
                the month; and
                    (B) the ratio of the total hundredweights of Class 
                IV milk manufactured into dairy products during that 
                month under that order or by that handler to the total 
                hundredweights of Class IV milk manufactured into dairy 
                products during that month under all such orders and by 
                all such handlers.
            (4) Effect on blend prices.--Producer blend prices under a 
        milk marketing order referred to in subsection (a) shall be 
        adjusted to account for collections under paragraph (2) and 
        disbursements under paragraph (3).
    (e) Enforcement.--
            (1) In general.--Amounts for which a milk marketing order 
        or handler are responsible under subsection (b) shall be 
        determined on a monthly basis and shall be collected and 
        remitted to the Secretary in the manner prescribed by the 
        Secretary.
            (2) Penalties.--If any person fails to remit the amount 
        required in subsection (c) or fails to comply with such 
        requirements for recordkeeping or otherwise as are required by 
        the Secretary to carry out this section, the person shall be 
        liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of milk involved in the violation; 
                by
                    (B) the support rate for milk in effect at the time 
                of the violation under section 201.
            (3) Enforcement.--The Secretary may enforce this section in 
        the courts of the United States.
    (f) Effective Date.--Except as provided in subsection (g), this 
section shall--
            (1) take effect on the first day of the first month 
        beginning not less than 30 days after the date of the enactment 
        of this Act; and
            (2) apply during the 2-year period beginning on such 
        effective date.
    (g) Implementation.--Not later than the start of the effective date 
of this section, 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 effectuate the requirements of this section. 
The amendments shall not be--
            (1) subject to referendum under subsection (17) or (19) of 
        such section among milk producers to determine whether issuance 
        of such order is approved or favored by milk producers;
            (2) preconditioned on the existence of a marketing 
        agreement among handlers under subsection (8) of such section 
        and section 8b of such Act (7 U.S.C. 608b);
            (3) subject to rulemaking under title 5, United States 
        Code; or
            (4) subject to review or approval by other executive 
        agencies.

SEC. 209. AUTHORITY FOR ESTABLISHMENT OF STANDBY POOLS.

    (a) Authority To Establish.--As soon as possible after the 
effective date of this section, the Secretary of Agriculture shall 
publish in the Federal Register an invitation for interested persons to 
submit proposals for the establishment within 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, of standby pools to facilitate the movement of 
milk over long distances during periods of shortage through the sharing 
of proceeds from sales of milk of the highest use classification due to 
producers under the order with producers shipping to plants regulated 
by another order to provide a reserve supply of milk in the other 
market.
    (b) Approval or Termination of Participation in Standby Pool.--
Order provisions under this section shall not become effective in any 
marketing order unless such provisions are approved by producers in the 
manner provided for the approval of marketing orders under section 8c 
of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, but 
separately from other order provisions. Standby pool provisions 
approved under this section in an order may be disapproved separately 
by producers or terminated separately by the Secretary under section 
8c(16)(B) of such Act. Such disapproval or termination shall not be 
considered to be a disapproval or termination of the other terms of 
that order.
    (c) Effective Date.--This section shall take effect on the first 
day of the first month beginning not less than 30 days after the date 
of the enactment of this Act.

          Subtitle B--Reform of Federal Milk Marketing Orders

SEC. 221. ISSUANCE OR AMENDMENT OF FEDERAL MILK MARKETING ORDERS TO 
              IMPLEMENT CERTAIN REFORMS.

    (a) Issuance of Amended Orders.--Subject to the time limits 
specified in section 222, the Secretary of Agriculture shall issue new 
or amended marketing orders with respect to milk and its products 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 effectuate the requirements of subsection (b). The orders 
shall take effect on the date the orders are issued and shall supersede 
all other marketing orders and any other statutes, rules, and 
regulations that are applicable to the pricing and marketing of milk 
and its products in effect immediately before that date, whether under 
the authority of section 8c of such Act or a State or local law.
    (b) Reform Requirements.--The Secretary shall reform the Federal 
milk marketing order system under subsection (a) to accomplish the 
following purposes:
            (1) Consolidation of Federal milk marketing orders into not 
        less than 8 nor more than 13 orders, which shall also include 
        those areas of the 48 contiguous States not covered by a 
        Federal milk marketing order on the date of the enactment of 
        this Act. One of the new Federal milk marketing orders shall 
        only cover the State of California. A new or amended order 
        shall have the right to blend order receipts to address unique 
        issues to that order such as a preexisting State quota system.
            (2) Implementation of uniform multiple component pricing 
        for milk used in manufactured dairy products.
            (3) Establishment of class prices for milk used to produce 
        cheese, nonfat dry milk, and butter based on national product 
        prices, less a manufacturing allowance. The resulting prices 
        shall not vary regionally, except to reflect variances in 
        transportation and reasonable operating costs, if any, of 
        efficient processing plants in different geographical areas.
    (c) Status of Producer Handlers.--In amending Federal milk 
marketing orders under this section, the Secretary shall ensure that 
the legal status of producer handlers of milk under the Agricultural 
Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, shall be the same after 
the amendments made by this section take effect as it was before the 
effective date of the amendments.

SEC. 222. REFORM PROCESS.

    (a) Process.--In preparation for the issuance of the new or amended 
Federal milk marketing orders required under section 221, the Secretary 
of Agriculture shall comply with the following expedited procedural 
requirements:
            (1) Not later than 165 days after the date of the enactment 
        of this Act, the Secretary shall issue proposed amendments or 
        new milk marketing orders to effectuate the reform requirements 
        specified in such section.
            (2) The Secretary shall provide for a 75-day comment period 
        on the proposed amendments or orders issued under paragraph 
        (1).
            (3) Not later than 120 days after the end of the comment 
        period provided under paragraph (2), the Secretary shall 
        publish in the Federal Register a final administrative decision 
        regarding the issuance or amendment of Federal milk marketing 
        orders to effectuate the reform requirements specified in such 
        section.
    (b) Referendum and Marketing Agreement.--After the issuance of the 
new or amended Federal milk marketing orders under section 221, the 
Secretary may conduct a referendum in the manner provided in section 
8c(16)(B) of the Agricultural Adjustment Act (7 U.S.C. 608c(16)(B)), 
reenacted with amendments by the Agricultural Marketing Agreement Act 
of 1937, with respect to each order to determine whether milk producers 
subject to the order favor the termination of the order.
    (c) Application of Administrative Procedures Act.--The issuance of 
the new or amended Federal milk marketing orders required under section 
221 shall not be subject to rulemaking under title 5, United States 
Code.
    (d) Review and Approval.--The action of the Secretary under section 
221 shall not be subject to review or approval by any other executive 
agency.

SEC. 223. EFFECT OF FAILURE TO COMPLY WITH REFORM PROCESS REQUIREMENTS.

    (a) Failure To Timely Issue or Amend Orders.--If, before the end of 
the 1-year period beginning on the date of the enactment of this Act, 
the Secretary of Agriculture does not issue new or amended Federal milk 
marketing orders 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 effectuate the requirements of section 
221(b), then the Secretary may not assess or collect assessments from 
milk producers or handlers under such section 8c for marketing order 
administration and services provided under such section after the end 
of that period. The Secretary may not reduce the level of services 
provided under such section on account of the prohibition against 
assessments, but shall rather cover the cost of marketing order 
administration and services through funds available for the 
Agricultural Marketing Service of the Department of Agriculture.
    (b) Failure To Timely Implement Orders.--Unless the Secretary 
certifies to Congress before the end of the 2-year period beginning on 
the date of the enactment of this Act that all of the Federal marketing 
order reforms required by section 221(b) have been fully implemented, 
then, effective at the end of that period--
            (1) the Secretary shall immediately cease all price support 
        activities under section 201;
            (2) the Secretary shall immediately terminate all Federal 
        milk marketing orders under section 8c of the Agricultural 
        Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
        the Agricultural Marketing Agreement Act of 1937, and may not 
        issue any further order under such Act with respect to milk;
            (3) the Commodity Credit Corporation shall immediately 
        cease to operate the dairy export incentive program under 
        section 153 of the Food Security Act of 1985 (15 U.S.C. 713a-
        14);
            (4) the Secretary and the National Processor Advertising 
        and Promotion Board shall immediately cease all activities 
        under the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401 et 
        seq.); and
            (5) the Secretary and the National Dairy Promotion and 
        Research Board shall immediately cease all activities under the 
        Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et 
        seq.).
    (c) Effect of Court Order.--The actions authorized by this section 
are intended to ensure the timely publication and implementation of new 
and amended Federal milk marketing orders under section 8c of the 
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments 
by the Agricultural Marketing Agreement Act of 1937. In the event that 
the Secretary is enjoined or otherwise restrained by a court order from 
publishing or implementing the reform requirements specified by section 
221, the length of time for which that injunction or other restraining 
order is effective shall be added to the time limitations specified in 
subsections (a) and (b) thereby extending those time limitations by a 
period of time equal to the period of time for which the injunction or 
other restraining order is effective.

                        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) Livestock Environmental Assistance Program.--For each of 
fiscal years 1996 through 2002, $100,000,000 of the funds of the 
Commodity Credit Corporation shall be available for providing technical 
assistance, cost-sharing payments, and incentive payments for practices 
relating to livestock production under the livestock environmental 
assistance program under chapter 4 of subtitle D.''.
    (b) Livestock Environmental Assistance 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--LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM

``SEC. 1240. DEFINITIONS.

    ``In this chapter:
            ``(1) Land management practice.--The term `land management 
        practice' means a site-specific nutrient or manure 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 due to livestock production.
            ``(2) Large confined livestock operation.--The term `large 
        confined livestock operation' means an operation that--
                    ``(A) is a confined animal feeding operation; and
                    ``(B) has more than--
                            ``(i) 55 mature dairy cattle;
                            ``(ii) 10,000 beef cattle;
                            ``(iii) 30,000 laying hens or broilers (if 
                        the facility has continuous overflow watering);
                            ``(iv) 100,000 laying hens or broilers (if 
                        the facility has a liquid manure system);
                            ``(v) 55,000 turkeys;
                            ``(vi) 15,000 swine; or
                            ``(vii) 10,000 sheep or lambs.
            ``(3) Livestock.--The term `livestock' means dairy cows, 
        beef cattle, laying hens, broilers, turkeys, swine, sheep, 
        lambs, and such other animals as determined by the Secretary.
            ``(4) Operator.--The term `operator' means a person who is 
        engaged in livestock production (as defined by the Secretary).
            ``(5) Structural practice.--The term `structural practice' 
        means the establishment of an animal waste management facility, 
        terrace, grassed waterway, contour grass strip, filterstrip, 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 due to livestock 
        production.

``SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF LIVESTOCK 
              ENVIRONMENTAL ASSISTANCE 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 operators who enter 
        into contracts with the Secretary, through a livestock 
        environmental assistance program.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--An operator who 
                implements a structural practice shall be eligible for 
                technical assistance or cost-sharing payments, or both.
                    ``(B) Land management practices.--An operator 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 
        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 
        operators in a region, watershed, or conservation priority area 
        in which an agricultural operation is located, 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 an operator 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 operators and secretary.--To receive cost-
        sharing or incentive payments, or technical assistance, 
        participating operators 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 operators proposing to receive 
        cost-sharing payments in exchange for the implementation of 1 
        or more structural practices by the operator. The competitive 
        offer system shall consist of--
                    ``(A) the submission of a competitive offer by the 
                operator 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.
            ``(2) Concurrence of owner.--If the operator 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 operator 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 an operator in exchange for the 
performance of 1 or more land management practices by the operator.
    ``(e) Cost-Sharing, Incentive Payments, and Technical Assistance.--
            ``(1) Cost-sharing payments.--
                    ``(A) In general.--The Federal share of cost-
                sharing payments to an operator 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 operator from 
                a State or local government.
                    ``(B) Limitation.--An operator of a large confined 
                livestock operation shall not be eligible for cost-
                sharing payments to construct an animal waste 
                management facility.
                    ``(C) Other payments.--An operator shall not be 
                eligible for cost-sharing payments for structural 
                practices on eligible land under this chapter if the 
                operator 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 an operator 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 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 operator to receive technical 
                assistance under other authorities of law available to 
                the Secretary.
    ``(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) 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 livestock environmental assistance program established 
under this chapter.''.
    (c) Conforming Program Changes.--
            (1) Wetlands reserve program.--
                    (A) In general.--Section 1237 of the Food Security 
                Act of 1985 (16 U.S.C. 3837) is amended--
                            (i) in subsection (b)(2)--
                                    (I) by striking ``not less'' and 
                                inserting ``not more''; and
                                    (II) by striking ``2000'' and 
                                inserting ``2002''; and
                            (ii) in subsection (c), by striking 
                        ``2000'' and inserting ``2002''.
                    (B) Length of easement.--Section 1237A(e) of the 
                Food Security Act of 1985 (16 U.S.C. 3837a(e)) is 
                amended by striking paragraph (2) and inserting the 
                following:
            ``(2) shall be for 15 years, but in no case shall be a 
        permanent easement.''.
            (2) Conservation reserve program.--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.''. 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

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.

    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.''.

                         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 (including all 
                        fees collected for the crop year in which the 
                        approved insurance provider will assume the 
                        policies) to the approved insurance provider 
                        for performance of all sales, service, and loss 
                        adjustment functions.''; 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.--Not less than $88,500,000 of the 
appropriation provided for the salaries and expenses of the 
Consolidated Farm Services Agency in the Agricultural, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1996 shall be available 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.

      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''.
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