[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1155 Introduced in Senate (IS)]


104th CONGRESS
  1st Session
                                S. 1155

 To extend and revise agricultural price support and related programs 
            for certain commodities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               August 10 (legislative day, July 10), 1995

  Mr. Cochran (for himself, Mr. Prior, Mr. Coverdell, Mr. Helms, Mr. 
 Warner, Mr. Craig, Mr. Nunn, Mr. Lott, Mr. Johnston, Mr. Breaux, Mr. 
    Thurmond, Mr. Mack, Mr. Inouye, Mr. Akaka, Mr. Bumpers, and Mr. 
  McConnell) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To extend and revise agricultural price support and related programs 
            for certain commodities, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Findings, policy, and purpose.
Sec. 3. Sense of Congress on ending the Federal deficit.
                             TITLE I--WHEAT

Sec. 101. Loans, payments, and acreage reduction programs for the 1996 
                            through 2002 crops of wheat.
Sec. 102. Nonapplicability of certificate requirements.
Sec. 103. Suspension of land use, wheat marketing allocation, and 
                            producer certificate provisions.
Sec. 104. Suspension of certain quota provisions.
Sec. 105. Nonapplicability of section 107 of the Agricultural Act of 
                            1949.
                         TITLE II--FEED GRAINS

Sec. 201. Loans, payments, and acreage reduction programs for the 1996 
                            through 2002 crops of feed grains.
Sec. 202. Nonapplicability of section 105 of the Agricultural Act of 
                            1949.
Sec. 203. Recourse loan program for silage.
                           TITLE III--COTTON

Sec. 301. Loans, payments, and acreage reduction programs for the 1996 
                            through 2002 crops of upland cotton.
Sec. 302. Extra long staple cotton program.
Sec. 303. Suspension of base acreage allotments, marketing quotas, and 
                            related provisions.
Sec. 304. Miscellaneous cotton provisions.
Sec. 305. Skiprow practices.
Sec. 306. Preliminary allotments for 2003 crop of upland cotton.
Sec. 307. Cottonseed and cottonseed oil.
Sec. 308. Cotton classification services.
                             TITLE IV--RICE

Sec. 401. Loans, payments, and acreage reduction programs for the 1996 
                            through 2002 crops of rice.
                           TITLE V--OILSEEDS

Sec. 501. Loans and payments for oilseeds for 1996 through 2002 
                            marketing years.
                           TITLE VI--PEANUTS

Sec. 601. Suspension of marketing quotas and acreage allotments.
Sec. 602. National poundage quotas and acreage allotments.
Sec. 603. Sale, lease, or transfer of farm poundage quota.
Sec. 604. Marketing penalties; disposition of additional peanuts.
Sec. 605. Experimental and research programs for peanuts.
Sec. 606. Price support program.
Sec. 607. Reports and records.
Sec. 608. Suspension of certain price support provisions.
Sec. 609. Regulations.
                            TITLE VII--SUGAR

Sec. 701. Sugar price support.
Sec. 702. Marketing assessment bases for processors and refiners.
Sec. 703. Prevention of sugar loan forfeitures.
                TITLE VIII--GENERAL COMMODITY PROVISIONS

           Subtitle A--Amendments to Agricultural Act of 1949

Sec. 801. Deficiency and land diversion payments.
Sec. 802. Adjustment of established prices.
Sec. 803. Adjustment of support prices.
Sec. 804. Program option for 2003 and subsequent crops.
Sec. 805. Application of terms in the Agricultural Act of 1949.
Sec. 806. Double cropping.
Sec. 807. Acreage base and yield system.
             Subtitle B--Miscellaneous Commodity Provisions

Sec. 811. Payment limitations.
Sec. 812. Normally planted acreage.
Sec. 813. Normal supply.
Sec. 814. Determinations of the Secretary.
Sec. 815. Options pilot program.
Sec. 816. National Agricultural Cost of Production Standards Review 
                            Board.
                   Subtitle C--Conforming Amendments

Sec. 821. Conforming amendments.
                        Subtitle D--Application

Sec. 831. Application.
SEC. 2. FINDINGS, POLICY, AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1)(A) a sound and prosperous economy in the United States 
        is dependent on American agriculture and related industries, 
        including producers, processors, handlers, manufacturers, 
        marketers, transporters, and the banking and credit industry;
            (B) American agriculture and related industries account for 
        over 21,000,000 jobs and approximately 16 percent, or over 
        $1,000,000,000,000, of the gross domestic product; and
            (C) because of the combined effort of American agriculture 
        and related industries, consumers in the
         United States enjoy a dependable supply of food and fiber at 
fair prices;
            (2)(A) the future of American agriculture is dependent on 
        the continued viability of the American agricultural producer, 
        the underpinning of the agricultural economy; and
            (B) agricultural producers must receive a fair return on 
        their productivity and investment in an industry characterized 
        by continued subsidized foreign competition and wide 
        fluctuations in production and prices due to weather and 
        related factors;
            (3)(A) one of the essential elements of a sound 
        agricultural economy is the ability of the United States to 
        compete in the world market;
            (B) agricultural exports are expected to reach nearly 
        $50,000,000,000 in 1995 and contribute about $20,000,000,000 to 
        the United States balance of trade; and
            (C) agricultural exports alone account for over 1,000,000 
        American jobs; and
            (4)(A) Commodity Credit Corporation outlays for farm 
        programs have declined from a high of approximately 
        $26,000,000,000 for fiscal year 1986 to less than 
        $9,000,000,000 for fiscal year 1995, a reduction of over 65 
        percent that is unique among the many mandatory spending 
        programs of the Federal Government; and
            (B) according to the Congressional Budget Office, farm 
        program outlays are projected to remain below the outlay level 
        for fiscal year 1995 for the next 5 years and continue to 
        decline by nearly 8 percent, even if no changes are made in 
        current law for existing farm programs.
    (b) Policy.--It is the policy of the United States that--
            (1) continued Federal Government support is necessary to 
        provide stability for American agricultural producers to--
                    (A) enable the producers to continue to provide 
                consumers with a steady and dependable supply of food 
                and fiber at fair prices;
                    (B) maintain the competitiveness of the United 
                States in the world market; and
                    (C) otherwise preserve the underpinnings of a sound 
                agricultural economy; and
            (2) to meet the objective of achieving a balanced budget 
        for the Federal Government in a manner consistent with 
        paragraph (1), reductions in farm program spending should be 
        made in a fair and equitable manner.
    (c) Purpose.--The purpose of this Act is to establish agricultural 
price support and production adjustment programs for the 1996 through 
2002 crop years that provide a structure for a sound agricultural 
economy in a manner consistent with subsection (b).

SEC. 3. SENSE OF CONGRESS ON ENDING THE FEDERAL DEFICIT.

    It is the sense of Congress that--
            (1) the continuation of significant Federal budgetary 
        deficits harms the economic well-being of the United States and 
        is detrimental to the development of sound, long-term 
        agricultural policy;
            (2) agricultural price support and production adjustment 
        programs are necessary for the continued economic health of 
        United States agriculture, which must compete in international 
        markets against subsidized foreign competition; and
            (3) agricultural price support and production adjustment 
        programs should be--
                    (A) implemented, to the maximum extent practicable, 
                in a manner that is consistent with the primary goal of 
                the concurrent resolution on the budget for fiscal year 
                1996 (H.Con.Res. 67, agreed to June 29, 1995) to end 
                Federal budget deficits; and
                    (B) modified, as necessary, to ensure that the 
                programs comply with applicable budget reconciliation 
                instructions in the concurrent resolution that are 
                designed to end Federal budget deficits, in a manner 
                consistent with section 306 of the concurrent 
                resolution.
                             TITLE I--WHEAT

SEC. 101. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1996 
              THROUGH 2002 CROPS OF WHEAT.

    Section 107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is 
amended to read as follows:

``SEC. 107B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 
              1996 THROUGH 2002 CROPS OF WHEAT.

    ``(a) Loans and Purchases.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary shall make available to producers on 
        a farm loans and purchases for each of the 1996 through 2002 
        crops of wheat produced on the farm at such level as the 
        Secretary determines will maintain the competitive relationship 
        of wheat to other grains in domestic and export markets after 
        taking into consideration the cost of producing wheat, supply 
        and demand conditions, and world prices for wheat.
            ``(2) Minimum loan and purchase level.--Except as provided 
        in paragraph (3), the loan and purchase level determined under 
        paragraph (1) shall be 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, except that the loan and 
        purchase level for a crop determined under this paragraph may 
        not be reduced by more than 5 percent from the level determined 
        for the preceding crop.
            ``(3) Marketing loans.--
                    ``(A) In general.--The Secretary shall permit the 
                producers on a farm to repay a loan made under this 
                subsection for a crop at a level (except as provided in 
                subparagraph (C)) that is the lesser of--
                            ``(i) the loan level determined for the 
                        crop; and
                            ``(ii) the prevailing world market price 
                        for wheat (adjusted to United States quality 
                        and location), as determined by the Secretary.
                    ``(B) Prevailing world market price.--The Secretary 
                shall prescribe by regulation--
                            ``(i) a formula to determine the prevailing 
                        world market price for wheat, adjusted to 
                        United States quality and location; and
                            ``(ii) a mechanism by which the Secretary 
                        shall announce periodically the prevailing 
                        world market price for wheat.
                    ``(C) Alternative repayment rates.--For each of the 
                1996 through 2002 crops of wheat, if the world market 
                price for wheat (adjusted to United States quality and 
                location), as determined by the Secretary, is less than 
                the loan level determined for the crop, the Secretary 
                may permit the producers on a farm to repay a loan made 
                under this subsection for a crop at such level (not in 
                excess of the loan level determined for the crop) as 
                the Secretary determines will--
                            ``(i) minimize potential loan forfeitures;
                            ``(ii) minimize the accumulation of wheat 
                        stocks by the Federal Government;
                            ``(iii) minimize the cost incurred by the 
                        Federal Government in storing wheat; and
                            ``(iv) allow wheat produced in the United 
                        States to be marketed freely and competitively, 
                        both domestically and internationally.
            ``(4) Simple average price.--For purposes of this section, 
        the simple average price received by producers for the 
        immediately preceding marketing year shall be based on the 
        latest information available to the Secretary at the time of 
        the determination.
    ``(b) Loan Deficiency Payments.--
            ``(1) In general.--For each of the 1996 through 2002 crops 
        of wheat, the Secretary may make payments (referred to in this 
        section as `loan deficiency payments') available to producers 
        who, although eligible to obtain a loan or an agreement for 
        purchase under subsection (a), agree to forgo obtaining the 
        loan or agreement in return for payments under this subsection.
            ``(2) Computation.--A payment under this subsection shall 
        be computed by multiplying--
                    ``(A) the loan payment rate; and
                    ``(B) the quantity of wheat the producers on a farm 
                are eligible to place under loan (or obtain a purchase 
                agreement) but for which the producers forgo obtaining 
                the loan or agreement 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 level determined for the crop under 
                subsection (a); exceeds
                    ``(B) the level at which a loan may be repaid under 
                subsection (a).
    ``(c) Payments.--
            ``(1) Deficiency payments.--
                    ``(A) In general.--The Secretary shall make 
                available to producers payments (referred to in this 
                section as `deficiency payments') for each of the 1996 
                through 2002 crops of wheat in an amount computed by 
                multiplying--
                            ``(i) the payment rate;
                            ``(ii) the payment acres for the crop; and
                            ``(iii) the farm program payment yield 
                        established for the crop for the farm.
                    ``(B) Payment rate.--
                            ``(i) In general.--The payment rate for 
                        each of the 1996 through 2002 crops of wheat 
                        shall be the amount by which the
                         established price for the crop of wheat 
exceeds the higher of--
                                    ``(I) the lesser of--
                                            ``(aa) the national 
                                        weighted average market price 
                                        received by producers during 
                                        the marketing year for the 
                                        crop, as determined by the 
                                        Secretary; and
                                            ``(bb) the national 
                                        weighted average market price 
                                        received by producers during 
                                        the first 5 months of the 
                                        marketing year for the crop, as 
                                        determined by the Secretary, 
                                        plus 10 cents per bushel; and
                                    ``(II) the loan level determined 
                                for the crop.
                            ``(ii) Minimum established price.--The 
                        established price for wheat shall not be less 
                        than $4.00 per bushel for each of the 1996 
                        through 2002 crops.
                    ``(C) Payment acres.--Payment acres for a crop 
                shall be the lesser of--
                            ``(i) the number of acres planted to the 
                        crop for harvest within the permitted acreage 
                        (as defined in subsection (e)(2)(D)(ii)); or
                            ``(ii) 75 percent of the crop acreage base 
                        for the crop for the farm less the quantity of 
                        reduced acreage (as defined in subsection 
                        (e)(2)(D)(ii)).
                    ``(D) 0/85 program.--
                            ``(i) In general.--If an acreage limitation 
                        program under subsection (e)(2) is in effect 
                        for a crop of wheat and the producers on a farm 
                        devote a portion of the maximum payment acres 
                        of the farm for wheat as calculated under 
                        subparagraph (C)(ii) equal to more than 15 
                        percent (except as provided in clause (vii)) of 
                        the wheat acreage of the farm for the crop to 
                        conservation uses (except as provided in 
                        subparagraph (E))--
                                    ``(I) the portion of the maximum 
                                payment acres of the farm in excess of 
                                15 percent (except as provided in 
                                clause (vii)) of the acreage devoted to 
                                conservation uses (except as provided 
                                in subparagraph (E)) shall be 
                                considered to be planted to wheat for 
                                the purpose of determining the acreage 
                                on the farm required to be devoted to 
                                conservation uses in accordance with 
                                subsection (e)(2)(D); and
                                    ``(II) the producers shall be 
                                eligible for payments under this 
                                paragraph with respect to the acreage.
                            ``(ii) Deficiency payments.--
                        Notwithstanding any other provision of this 
                        section, any producers on a farm who devote a 
                        portion of the maximum payment acres of the 
                        farm for wheat to conservation uses (or other 
                        uses as provided in subparagraph (E)) under 
                        this subparagraph shall receive deficiency 
                        payments on the acreage that is considered to 
                        be planted to wheat and eligible for payments 
                        under this subparagraph for the crop at a per-
                        bushel rate established by the Secretary, 
                        except that the rate may not be established at 
                        less than the projected deficiency payment rate 
                        for the crop, as determined by the Secretary. 
                        The projected payment rate for the crop shall 
                        be announced by the Secretary prior to the 
                        period during which wheat producers may agree 
                        to participate in the program for the crop.
                            ``(iii) Adverse effect on agribusiness and 
                        other interests.--The Secretary shall carry out 
                        this subparagraph in such a manner as to 
                        minimize the adverse effect on agribusiness and 
                        other agriculturally related economic interests 
                        within any county, State, or region. In 
                        carrying out this subparagraph, the Secretary 
                        may restrict the total quantity of wheat 
                        acreage that may be taken out of production 
                        under this subparagraph, taking into 
                        consideration the total quantity of acreage 
                        that has or will be removed from production 
                        under other price support, production 
                        adjustment, or conservation program activities. 
                        No restrictions on the quantity of acreage that 
                        may be taken out of production in accordance 
                        with this subparagraph in a crop year shall be 
                        imposed in the case of a county in which 
                        producers were eligible to receive disaster 
                        emergency loans under section 321 of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1961) as a result of a disaster that 
                        occurred during the crop year.
                            ``(iv) Crop acreage and payment yield.--The 
                        wheat crop acreage base and wheat farm program 
                        payment yield of the farm shall not be reduced 
                        because of the fact that a portion of the 
                        permitted acreage for wheat for the farm was 
                        devoted to conserving uses (except as provided 
                        in subparagraph (E)) under this subparagraph.
                            ``(v) Limitation.--Other than as provided 
                        in clauses (i) through (iv), payments may not 
                        be made under this paragraph for any crop on a 
                        greater acreage than the acreage actually 
                        planted to wheat.
                            ``(vi) Conservation use acreage under other 
                        programs.--Any acreage considered to be planted 
                        to wheat in accordance with clauses (i) and 
                        (iv) may not also be designated as conservation 
                        use acreage for the purpose of fulfilling any 
                        provision under any acreage limitation or land 
                        diversion program requiring that the producers 
                        devote a specified quantity of acreage to 
                        conservation uses.
                            ``(vii) Exceptions to 0/85.--In the case of 
                        each of the 1996 through 2002 crops of wheat, 
                        producers on a farm shall be eligible to 
                        receive deficiency payments as provided in 
                        clause (ii) if an acreage limitation program 
                        under subsection (e) is in effect for the crop 
                        and the producers--
                                    ``(I)(aa) have been determined by 
                                the Secretary (in accordance with 
                                section 503(c)) to be prevented from 
                                planting the crop, or to have incurred 
                                a reduced yield for the crop, because 
                                of a natural disaster; and
                                    ``(bb) elect to devote a portion of 
                                the maximum payment acres for wheat (as 
                                calculated under subparagraph (C)(ii)) 
                                equal to more than 8 percent of the 
                                wheat acreage to conservation uses; or
                                    ``(II) elect to devote a portion of 
                                the maximum payment acres for wheat (as 
                                calculated under subparagraph (C)(ii)) 
                                equal to more than 8 percent of the 
                                wheat acreage, to alternative crops as 
                                provided in subparagraph (E).
                    ``(E) Alternative crops.--
                            ``(i) Industrial and other crops.--The 
                        Secretary may permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any part of acreage otherwise required to be 
                        devoted to conservation uses as a condition of 
                        qualifying for payments under subparagraph (D) 
                        to be devoted to sweet sorghum, guar, castor 
                        beans, plantago ovato, triticale, rye, millet, 
                        mung beans, commodities for which no 
                        substantial domestic production or market 
                        exists but that could lead to industrial raw 
                        material being imported, or likely to be 
                        imported, into the United States, or 
                        commodities grown for experimental purposes 
                        (including kenaf and milkweed), subject to the 
                        following sentence. The Secretary may permit 
                        the acreage to be devoted to the production 
                        only if the Secretary determines that the 
                        production is--
                                    ``(I) not likely to increase the 
                                cost of the price support program; and
                                    ``(II) needed to provide an 
                                adequate supply of the commodity, or, 
                                in the case of a commodity for which no 
                                substantial domestic production or 
                                market exists but that could yield 
                                industrial raw materials, the 
                                production is needed to encourage 
                                domestic manufacture of the raw 
                                material and could lead to increased 
                                industrial use of the raw material to 
                                the long-term benefit of United States 
                                industry.
                            ``(ii) Oilseeds.--The Secretary shall 
                        permit, subject to such terms and conditions as 
                        the Secretary may prescribe, all or any part of 
                        acreage otherwise required to be devoted to 
                        conservation uses as a condition of qualifying 
                        for payments under subparagraph (D) to be 
                        devoted to sunflowers, rapeseed, canola, 
                        safflower, flaxseed, mustard seed, sesame, 
                        crambe, or other minor oilseeds designated by 
                        the Secretary (excluding soybeans). In carrying 
                        out this clause, the Secretary shall provide 
                        that, to receive payments under subparagraph 
                        (D), the producers shall agree to forgo 
                        eligibility to receive a loan under section 205 
                        for the crop of any such oilseed produced on 
                        the farm.
                            ``(iii) Double cropping.--The Secretary 
                        shall permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any portion of the acreage otherwise 
                        required to be devoted to conservation uses as 
                        a condition of qualifying for payments under 
                        subparagraph (D) that is devoted to an 
                        industrial, oilseed, or other crop pursuant to 
                        clause (i) or (ii) to be subsequently planted 
                        during the same crop year to any crop described 
                        in subparagraph (B), (C), or (D) of section 
                        504(b)(1). The planting of soybeans as the 
                        subsequently planted crop shall be limited to 
                        farms determined by the Secretary to have an 
                        established history of double cropping soybeans 
                        during at least 3 of the preceding 5 years. In 
                        carrying out this clause, the Secretary shall 
                        require producers to agree to forego 
                        eligibility to receive loans under this Act for 
                        the crop of the subsequently planted crop that 
                        is produced on a farm under this clause.
            ``(2) Crop insurance requirement.--As a condition of 
        eligibility for wheat loans, purchases, and payments, the 
        producers on a farm shall obtain catastrophic risk protection 
        insurance coverage in accordance with section 427.
    ``(d) Payment Yields.--The farm program payment yields for farms 
for each crop of wheat under this section shall be determined under 
title V.
    ``(e) Acreage Reduction Programs.--
            ``(1) In general.--
                    ``(A) Establishment.--Notwithstanding any other 
                provision of this Act, if the Secretary determines that 
                the total supply of wheat, in the absence of an acreage 
                limitation program, will be excessive taking into 
                account the need for an adequate carry-over to maintain 
                reasonable and stable supplies and prices and to meet a 
                national emergency, the Secretary may provide for any 
                crop of wheat an acreage limitation program as 
                described in paragraph (2).
                    ``(B) Agricultural resources conservation 
                program.--In making a determination under subparagraph 
                (A), the Secretary shall take into consideration the 
                number of acres placed in the agricultural resources 
                conservation program established under subtitle D of 
                title XII of the Food Security Act of 1985 (16 U.S.C. 
                3830 et seq.).
                    ``(C) Announcements.--If the Secretary elects to 
                implement an acreage limitation program for any crop 
                year, the Secretary shall announce the program not 
                later than the June 1 preceding the calendar year in 
                which the crop is harvested, except that in the case of 
                the 1996 crop, the Secretary shall announce the program 
                as soon as practicable after the date of enactment of 
                the Agricultural Competitiveness Act of 1995.
                    ``(D) Adjustments.--Not later than July 31 of the 
                year preceding the year in which the crop is harvested, 
                the Secretary may make adjustments in the program 
                announced under subparagraph (C) if the Secretary 
                determines that there has been a significant change in 
                the total supply of wheat since the program was first 
                announced.
                    ``(E) Compliance.--As a condition of eligibility 
                for loans, purchases, and payments for any such crop of 
                wheat, except as provided in subsections (f) and (g) 
                and section 504, the producers on a farm shall comply 
                with the terms and conditions of the acreage limitation 
                program and, if applicable, a land diversion program as 
                provided in paragraph (5).
                    ``(F) Acreage limitation programs.--If the 
                Secretary estimates for a marketing year for the crop 
                that the ratio of ending stocks of wheat to total 
                disappearance of wheat for the preceding marketing year 
                will be--
                            ``(i) more than 40 percent, the Secretary 
                        shall provide for an acreage limitation program 
                        (as described in paragraph (2)) under which the 
                        acreage planted to wheat for harvest on a farm 
                        is limited to the wheat crop acreage base for 
                        the farm for the crop reduced by not less than 
                        10 percent nor more than 20 percent; or
                            ``(ii) equal to or less than 40 percent, 
                        the Secretary may provide for such an acreage 
                        limitation program under which the acreage 
                        planted to wheat for harvest on a farm is 
                        limited to the wheat crop acreage base for the 
                        farm for the crop reduced by not more than 15 
                        percent.
                    ``(G) Definition of total disappearance.--In this 
                paragraph, the term `total disappearance' means all 
                wheat utilization, including total domestic, total 
                export, and total residual disappearance.
            ``(2) Acreage limitation program.--
                    ``(A) Percentage reductions.--Except as provided in 
                paragraph (3), if a wheat acreage limitation program is 
                announced under paragraph (1), the limitation shall be 
                achieved by applying a uniform percentage reduction 
                (from 0 to 20 percent) to the wheat crop acreage base 
                for the crop for each wheat-producing farm.
                    ``(B) Compliance.--Except as provided in subsection 
                (g) and section 504, producers who knowingly produce 
                wheat in excess of the permitted acreage for wheat for 
                the farm shall be ineligible for wheat loans, 
                purchases, and payments with respect to the farm.
                    ``(C) Crop acreage bases.--Wheat crop acreage bases 
                for each crop of wheat shall be determined under title 
                V.
                    ``(D) Acreage devoted to conservation uses.--
                            ``(i) In general.--A number of acres on the 
                        farm shall be devoted to conservation uses, in 
                        accordance with regulations issued by the 
                        Secretary.
                            ``(ii) Number.--The number shall be 
                        determined by multiplying the wheat crop 
                        acreage base by the percentage reduction 
                        required by the Secretary. The number of acres 
                        so determined is referred to in this section as 
                        `reduced acreage'. The remaining acreage is 
                        referred to in this section as `permitted 
                        acreage'.
                            ``(iii) Adjustment.--Permitted acreage may 
                        be adjusted by the Secretary as provided in 
                        paragraph (3) and in section 504.
                    ``(E) Individual farm program acreage.--Except as 
                otherwise provided in subsection (c), the individual 
                farm program acreage shall be the acreage planted on 
                the farm to wheat for harvest within the permitted 
                acreage for wheat for the farm as established under 
                this paragraph.
                    ``(F) Planting designated crops on reduced 
                acreage.--
                            ``(i) Definition of designated crop.--In 
                        this subparagraph, the term `designated crop' 
                        means a crop specified in section 504(b)(1), 
                        excluding any program crop as defined in 
                        section 502(3).
                            ``(ii) Planting designated crops.--Subject 
                        to clause (iii), the Secretary may permit 
                        producers on a farm to plant a designated crop 
                        on not more than \1/2\ of the reduced acreage 
                        on the farm.
                            ``(iii) Limitations.--If the producers on a 
                        farm elect to plant a designated crop on 
                        reduced acreage under this subparagraph--
                                    ``(I) the amount of the deficiency 
                                payment that the producers are 
                                otherwise eligible to receive under 
                                subsection (c) shall be reduced, for 
                                each acre (or portion of an acre) that 
                                is planted to the designated crop, by 
                                an
                                 amount equal to the deficiency payment 
that would be made with respect to a number of acres of the crop that 
the Secretary considers appropriate, except that if the producers on 
the farm are participating in a program established for more than 1 
program crop, the amount of the reduction shall be determined by 
prorating the reduction based on the acreage planted or considered 
planted on the farm to all of the program crops; and
                                    ``(II) the Secretary shall ensure 
                                that reductions in deficiency payments 
                                under subclause (I) are sufficient to 
                                ensure that this subparagraph will 
                                result in no additional cost to the 
                                Commodity Credit Corporation.
            ``(3) Targeted option payments.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, if the Secretary implements 
                an acreage limitation program with respect to any of 
                the 1996 through 2002 crops of wheat, the Secretary may 
                make available to producers on a farm adjustments in 
                the level of deficiency payments that would otherwise 
                be made available to the producers if the producers 
                exercise the payment options provided in this 
                paragraph.
                    ``(B) Payment options.--If the Secretary elects to 
                carry out this paragraph, the Secretary shall make the 
                payment options specified in subparagraphs (C) and (D) 
                available to producers who agree to make adjustments in 
                the quantity of acreage diverted from the production of 
                wheat under an acreage limitation program in accordance 
                with this paragraph.
                    ``(C) Increased acreage limitation option.--
                            ``(i) Increase in established price.--If 
                        the Secretary elects to carry out this 
                        paragraph, the producers on a farm shall be 
                        eligible to receive an increase in the 
                        established price for wheat in accordance with 
                        clause (ii) if the producers agree to an 
                        increase in the acreage limitation percentage 
                        to be applied to the wheat acreage base of the 
                        producers above the acreage limitation 
                        percentage announced by the Secretary.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who participate 
                        in the program under this paragraph, the 
                        Secretary shall increase the established price 
                        for wheat by an amount determined by the 
                        Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point increase in the acreage limitation 
                        percentage applied to the wheat acreage base of 
                        the producers.
                            ``(iii) Limitation.--The acreage limitation 
                        percentage to be applied to the wheat acreage 
                        base of the producers shall not be increased by 
                        more than 15 percentage points above the 
                        acreage limitation percentage announced by the 
                        Secretary for the crop or above 25 percent 
                        total for the crop.
                    ``(D) Decreased acreage limitation option.--
                            ``(i) Decrease in acreage limitation 
                        requirement.--If the Secretary elects to carry 
                        out this paragraph, the producers on a farm 
                        shall be eligible to decrease the acreage 
                        limitation percentage applicable to the wheat 
                        acreage base of the producers (as announced by 
                        the Secretary) if the producers agree to a 
                        decrease in the established price for wheat in 
                        accordance with clause (ii) for the purpose of 
                        calculating deficiency payments to be made 
                        available to the producers.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who choose the 
                        option established under this subparagraph, the 
                        Secretary shall decrease the established price 
                        for wheat by an amount to be determined by the 
                        Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point decrease in the acreage limitation 
                        percentage applied to the wheat acreage base of 
                        the producers.
                            ``(iii) Limitation.--The producers on a 
                        farm may not choose to decrease the acreage 
                        limitation percentage applicable to the wheat 
                        acreage base of the producers under this 
                        paragraph by more than \1/2\ of the announced 
                        acreage limitation percentage.
                    ``(E) Participation and production effects.--
                Notwithstanding any other provision of this paragraph, 
                the Secretary shall, to the extent practicable, ensure 
                that the program provided for in this paragraph does 
                not have a significant effect on participation in the 
                program established by this section or total production 
                and is offered in such a manner that the Secretary 
                determines will result in no additional budget outlays. 
                The Secretary shall provide an analysis of the 
                determination of the Secretary to the Committee on 
                Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate.
            ``(4) Administration.--
                    ``(A) Protection from weeds and erosion.--The 
                regulations issued by the Secretary under paragraph (2) 
                with respect to acreage required to be devoted to 
                conservation uses shall ensure protection of the 
                acreage from weeds and wind and water erosion.
                    ``(B) Conserving crops.--The Secretary may permit, 
                subject to such terms and conditions as the Secretary 
                may prescribe, all or any part of the acreage to be 
                devoted to sweet sorghum, guar, sesame, castor beans, 
                crambe, plantago ovato, triticale, rye, mung beans, 
                milkweed, or other commodity, if the Secretary 
                determines that the production is needed to provide an 
                adequate supply of the commodity, is not likely to 
                increase the cost of the price support program, and 
                will not affect farm income adversely.
                    ``(C) Haying and grazing.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), haying and grazing of reduced 
                        acreage and acreage diverted from production 
                        under a land diversion program established 
                        under this subsection shall be permitted, 
                        except during any consecutive 5-month period 
                        that is established by the State committee 
                        established under section 8(b) of the Soil 
                        Conservation and Domestic Allotment Act (16 
                        U.S.C. 590h(b)) for a State. The 5-month period 
                        shall be established during the period 
                        beginning April 1, and ending October 31, of a 
                        year.
                            ``(ii) Natural disasters.--In the case of a 
                        natural disaster, the Secretary may permit 
                        unlimited haying and grazing on the acreage. 
                        The Secretary may not exclude irrigated or 
                        irrigable acreage not planted to alfalfa when 
                        exercising the authority under this clause.
                    ``(D) Water storage uses.--
                            ``(i) In general.--The regulations issued 
                        by the Secretary under paragraph (2) with 
                        respect to acreage required to be devoted to 
                        conservation uses shall provide that land that 
                        has been converted to water storage uses shall 
                        be considered to be devoted to conservation 
                        uses if the land was devoted to wheat, feed 
                        grains, cotton, rice, or oilseeds in at least 3 
                        of the immediately preceding 5 crop years. The 
                        land shall be considered to be devoted to 
                        conservation uses for the period that the land 
                        remains in water storage uses, but not to 
                        exceed 5 crop years subsequent to the 
                        conversion of the land to water storage uses.
                            ``(ii) Limitations.--Land converted to 
                        water storage uses for the purposes of this 
                        subparagraph may not be devoted to any 
                        commercial use, including commercial fish 
                        production. The water stored on the land may 
                        not be ground water. The farm on which the land 
                        is located must have been irrigated with ground 
                        water during at least 1 of the preceding 5 crop 
                        years.
                    ``(E) Summer fallow.--In determining the quantity 
                of land to be devoted to conservation uses under an 
                acreage limitation program with respect to land that 
                has been farmed under summer fallow practices, as 
                defined by the Secretary, the Secretary shall consider 
                the effects of soil erosion and such other factors as 
                the Secretary considers appropriate.
            ``(5) Land diversion payments.--
                    ``(A) In general.--The Secretary may make land 
                diversion payments to producers of wheat, whether or 
                not an acreage limitation program for wheat is in 
                effect, if the Secretary determines that the land 
                diversion payments are necessary to assist in adjusting 
                the total national acreage of wheat to desirable goals. 
                The land diversion payments shall be made to producers 
                who, to the extent prescribed by the Secretary, devote 
                to approved conservation uses an acreage of cropland on 
                the farm in accordance with land diversion contracts 
                entered into by the Secretary with the producers.
                    ``(B) Amounts.--The amounts payable to producers 
                under land diversion contracts may be determined 
                through the submission of bids for the contracts by 
                producers in such manner as the Secretary may prescribe 
                or through such other means as the Secretary determines 
                appropriate. In determining the acceptability of 
                contract offers, the Secretary shall take into 
                consideration the extent of the diversion to be 
                undertaken by the producers and the productivity of the 
                acreage diverted.
                    ``(C) Limitation on diverted acreage.--The 
                Secretary shall limit the total acreage to be diverted 
                under agreements in any county or local community so as 
                not to affect adversely the economy of the county or 
                local community.
            ``(6) Conservation practices.--
                    ``(A) Wildlife food plots or habitat.--The reduced 
                acreage and additional diverted acreage may be devoted 
                to wildlife food plots or wildlife habitat in 
                conformity with standards established by the Secretary 
                in consultation with wildlife agencies. The Secretary 
                may pay an appropriate share of the cost of practices 
                designed to carry out this subparagraph.
                    ``(B) Soil and water conservation practices.--The 
                Secretary may pay an appropriate share of the cost of 
                approved soil and water conservation practices 
                (including practices that may be effective for a number 
                of years) established by the producers on a farm on 
                acreage required to be devoted to conservation uses or 
                on additional diverted acreage.
                    ``(C) Public accessibility.--The Secretary may 
                provide for an additional payment on the acreage in an 
                amount determined by the Secretary to be appropriate in 
                relation to the benefit to the general public if the 
                producers on a farm agree to permit, without other 
                compensation, access to all or such portion of the farm 
                as the Secretary may prescribe by the
                 general public, for hunting, trapping, fishing, and 
hiking, subject to applicable Federal and State regulations.
            ``(7) Participation agreements.--
                    ``(A) In general.--Producers on a farm desiring to 
                participate in the program conducted under this 
                subsection shall execute an agreement with the 
                Secretary providing for the participation with respect 
                to a crop year not later than such date as the 
                Secretary may prescribe.
                    ``(B) Modification or termination.--The Secretary 
                may, by mutual agreement with producers on a farm, 
                modify or terminate any such agreement if the Secretary 
                determines the action necessary because of an emergency 
                created by drought or other disaster or to prevent or 
                alleviate a shortage in the supply of agricultural 
                commodities. The Secretary may modify the agreement 
                under this subparagraph for the purpose of alleviating 
                a shortage in the supply of agricultural commodities 
                only if there has been a significant change in the 
                estimated stocks of the commodity since the Secretary 
                announced the final terms and conditions of the program 
                for the crop of wheat.
            ``(8) Special oats plantings.--In the case of a crop year 
        for which the Secretary determines that projected domestic 
        production of oats will not fulfill the projected domestic 
        demand for oats, notwithstanding paragraphs (1) through (7), 
        the Secretary--
                    ``(A) may provide that any reduced acreage may be 
                planted to oats for harvest;
                    ``(B) may make program benefits (including loans, 
                purchases, and payments) available under the annual 
                program for oats under section 105B available to 
                producers with respect to acreage planted to oats under 
                this paragraph; and
                    ``(C) shall not make program benefits other than 
                the benefits specified in subparagraph (B) available to 
                producers with respect to acreage planted to oats under 
                this paragraph.
    ``(f) Inventory Reduction Payments.--
            ``(1) In general.--The Secretary may make payments 
        available to producers on a farm who meet the requirements of 
        this subsection.
            ``(2) Form.--The payments may be made in the form of 
        marketing certificates.
            ``(3) Payments.--Payments under this subsection shall be 
        determined in the manner provided in subsection (b).
            ``(4) Eligibility.--The producers on a farm shall be 
        eligible to receive a payment under this subsection for a crop 
        if the producers--
                    ``(A) agree to forgo obtaining a loan or purchase 
                agreement under subsection (a);
                    ``(B) agree to forgo receiving payments under 
                subsection (c);
                    ``(C) do not plant wheat for harvest in excess of 
                the crop acreage base reduced by \1/2\ of any acreage 
                required to be diverted from production under 
                subsection (e); and
                    ``(D) otherwise comply with this section.
    ``(g) Pilot Voluntary Production Limitation Program.--
            ``(1) In general.--Effective for each of the 1996 through 
        2002 crops, if a wheat acreage limitation program or a land 
        diversion program is announced under subsection (e) for a crop, 
        the Secretary may carry out a pilot program in at least 15 
        counties in at least 2 States where producers express an 
        interest in participating in the pilot program. Under the pilot 
        program, the producers on a farm shall be considered to have 
        met the requirements of the acreage limitation or land 
        diversion program if the producers meet the requirements of the 
        voluntary production limitation program established under this 
        subsection.
            ``(2) Limitation on marketing.--To comply with the 
        voluntary production limitation program, the producers on a 
        farm must agree not to market, barter, donate, or use on the 
        farm (including use as feed for livestock) in a marketing year 
        a quantity of wheat in excess of the wheat production 
        limitation quantity for the farm for the marketing year.
            ``(3) Production limitation quantity.--For purposes of this 
        subsection, the wheat production limitation quantity for a farm 
        for a marketing year for a crop shall equal the product 
        obtained by multiplying--
                    ``(A) the acreage permitted to be planted to wheat 
                under the acreage reduction program or land diversion 
                program in effect for the crop for the farm; and
                    ``(B) the greater of--
                            ``(i) the farm program payment yield for 
                        the farm; and
                            ``(ii) the average of the yield per 
                        harvested acre for wheat for the farm for each 
                        of the 5 crop years immediately preceding the 
                        crop year during which the producers first 
                        participate in the program established under 
                        this subsection, excluding the crop years with 
                        the highest and lowest yield per harvested acre 
                        and any crop year in which the commodity was 
                        not planted on the farm.
            ``(4) Terms and conditions.--Producers on a farm who elect 
        to participate in the program established under this subsection 
        for a crop of wheat shall--
                    ``(A) enter into an agreement with the Secretary 
                providing that the producers shall comply with the 
                program for the crop;
                    ``(B) not plant program commodities for harvest in 
                a quantity in excess of the sum of the crop acreage 
                bases for the farm; and
                    ``(C) be considered to have complied with the terms 
                and conditions of the wheat acreage reduction program 
                or land diversion program for the crop, even though the 
                acreage planted to wheat on the farm exceeds the 
                permitted acreage provided under the acreage reduction 
                or land diversion program.
            ``(5) Excess production.--
                    ``(A) In general.--Any quantity of wheat produced 
                in a crop year on a farm in excess of the production 
                limitation quantity for the farm may be stored by the 
                producers for a period of not to exceed 5 marketing 
                years and may be used only in accordance with this 
                paragraph.
                    ``(B) Marketing in subsequent year.--
                            ``(i) Participants in program.--Producers 
                        on a farm who are participating in the program 
                        established under this subsection may market, 
                        barter, or use a quantity of the excess wheat 
                        referred to in subparagraph (A) equal to the 
                        difference between the production limitation 
                        quantity for the farm for the crop year 
                        subsequent to the crop year in which the excess 
                        wheat is produced less the quantity of wheat 
                        produced on the farm during the crop year.
                            ``(ii) Participants in acreage reduction 
                        program.--Producers on a farm who are 
                        participating in the program established under 
                        this subsection may market, barter, or use a 
                        quantity of the excess wheat referred to in 
                        subparagraph (A) in an amount that reflects the 
                        quantity of wheat that would be expected to be 
                        produced on acreage that the producers agree to 
                        devote to approved conservation uses (in excess 
                        of any acreage reduction or land diversion 
                        requirements) during a crop year, as determined 
                        by the Secretary.
            ``(6) Duties of secretary.--In carrying out the pilot 
        program established under this subsection, the Secretary--
                    ``(A) shall issue such regulations as are necessary 
                to carry out the program;
                    ``(B) may establish increased acreage reduction or 
                land diversion requirements with respect to producers 
                who have had excess wheat production in order to allow 
                the producers to market, barter, or use the production 
                in subsequent years;
                    ``(C) shall take appropriate measures designed to 
                prevent the circumvention of the program established 
                under this subsection, including the imposition of 
                penalties;
                    ``(D) may require producers who participate in the 
                program for a crop, but who fail to comply with the 
                terms and conditions of the program, to refund all or a 
                part of any deficiency payments received with respect 
                to the crop;
                    ``(E) may require the forfeiture to the Commodity 
                Credit Corporation of any wheat that is produced in 
                excess of the production limitation quantity and that 
                is not marketed, bartered, or used within 5 marketing 
                years; and
                    ``(F) shall ensure equitable treatment for 
                producers who participate in the pilot program if the 
                Secretary allows increases (based on actual production 
                levels) in the determination of farm program payment 
                yields for wheat for the farm.
            ``(7) Report.--
                    ``(A) In general.--The Comptroller General shall 
                prepare a report that evaluates the pilot program 
                carried out under this subsection.
                    ``(B) Submission.--The Comptroller General shall 
                submit a copy of the report required by subparagraph 
                (A) to the Committee on Agriculture of the House of 
                Representatives, the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate, and the 
                Secretary.
    ``(h) Equitable Relief.--
            ``(1) Loans, purchases, and payments.--If the failure of a 
        producer to comply fully with the terms and conditions of the 
        program conducted under this section precludes the making of 
        loans, purchases, and payments, the Secretary may, 
        notwithstanding the failure, make the loans, purchases, and 
        payments in such amounts as the Secretary determines are 
        equitable in relation to the seriousness of the failure. The 
        Secretary may consider whether the producer made a good faith 
        effort to comply fully with the terms and conditions of the 
        program in determining whether equitable relief is warranted 
        under this paragraph.
            ``(2) Deadlines and program requirements.--The Secretary 
        may authorize the county and State committees established under 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other 
        program requirements in cases in which lateness or failure to 
        meet the other requirements does not affect adversely the 
        operation of the program.
    ``(i) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this section.
    ``(j) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(k) Assignment of Payments.--Section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) shall apply 
to payments made under this section.
    ``(l) Sharing of Payments.--The Secretary shall provide for the 
sharing of payments made under this section for any farm among the 
producers on the farm on a fair and equitable basis.
    ``(m) Tenants and Sharecroppers.--In carrying out this section, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    ``(n) Cross-Compliance.--
            ``(1) In general.--Compliance on a farm with the terms and 
        conditions of any other commodity program, or compliance with 
        crop acreage base requirements for any other commodity, may not 
        be required as a condition of eligibility for loans, purchases, 
        or payments under this section.
            ``(2) Compliance on other farms.--The Secretary may not 
        require producers on a farm, as a condition of eligibility for 
        loans, purchases, or payments under this section for the farm, 
        to comply with the terms and conditions of the wheat program 
        with respect to any other farm operated by the producers.
    ``(o) Public Comment on Wheat Program.--
            ``(1) In general.--To ensure that producers and consumers 
        of wheat are provided with reasonable opportunity to comment on 
        the annual program determinations concerning the price support 
        and acreage reduction program for each of the 1997 through 2002 
        crops of wheat, the Secretary shall request public comment 
        regarding the wheat program in accordance with this subsection.
            ``(2) Options.--Not less than 60 days before the program is 
        announced for a crop of wheat under this section, the Secretary 
        shall propose for public comment various program options for 
        the crop of wheat.
            ``(3) Analyses.--Each option proposed by the Secretary 
        shall be accompanied by an analysis that includes the estimated 
        planted acreage, production, domestic and export use, ending 
        stocks, season average producer price, program participation 
        rate, and cost to the Federal Government that would likely 
        result from the option.
            ``(4) Estimates.--In announcing the program for a crop of 
        wheat under this section, the Secretary shall include an 
        estimate of the planted acreage, production, domestic and 
        export use, ending stocks, season average producer price, 
        program participation rate, and cost to the Federal Government 
        that is expected to result from the program as announced.
    ``(p) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
wheat.''.

SEC. 102. NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS.

    Sections 379d through 379j of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1379d-1379j) shall not be applicable to wheat processors 
or exporters during the period June 1, 1996, through May 31, 2003.

SEC. 103. SUSPENSION OF LAND USE, WHEAT MARKETING ALLOCATION, AND 
              PRODUCER CERTIFICATE PROVISIONS.

    Sections 331 through 339, 379b, and 379c of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, and 1379c) 
shall not be applicable to the 1996 through 2002 crops of wheat.

SEC. 104. SUSPENSION OF CERTAIN QUOTA PROVISIONS.

    The joint resolution entitled ``A joint resolution relating to corn 
and wheat marketing quotas under the Agricultural Adjustment Act of 
1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 1340), 
shall not be applicable to the crops of wheat planted for harvest in 
the calendar years 1996 through 2002.

SEC. 105. NONAPPLICABILITY OF SECTION 107 OF THE AGRICULTURAL ACT OF 
              1949.

    Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall 
not be applicable to the 1996 through 2002 crops of wheat.
                         TITLE II--FEED GRAINS

SEC. 201. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1996 
              THROUGH 2002 CROPS OF FEED GRAINS.

    Section 105B of the Agricultural Act of 1949 (7 U.S.C. 1444f) is 
amended to read as follows:

``SEC. 105B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 
              1996 THROUGH 2002 CROPS OF FEED GRAINS.

    ``(a) Loans and Purchases.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary shall make available to producers on 
        a farm loans and purchases for each of the 1996 through 2002 
        crops of corn produced on the farm at such level as the 
        Secretary determines will encourage the exportation of feed 
        grains and not result in excessive total stocks of feed grains 
        after taking into consideration the cost of producing corn, 
        supply and demand conditions, and world prices for corn.
            ``(2) Minimum loan and purchase level.--Except as provided 
        in paragraphs (3) and (4), the loan and purchase level 
        determined under paragraph (1) shall be 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, 
        except that the loan and purchase level for a crop determined 
        under this paragraph may not be reduced by more than 5 percent 
        from the level determined for the preceding crop.
            ``(3) Adjustments to support level.--
                    ``(A) Stocks to use ratio.-- 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 and purchase 
                        level for corn for the crop corresponding to 
                        the marketing year 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 and purchase level for corn for the crop 
                        corresponding to the marketing year 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 and purchase 
                        level for corn for the crop corresponding to 
                        the marketing year.
                    ``(B) Report to congress.--
                            ``(i) In general.--If the Secretary adjusts 
                        the level of loans and purchases for corn under 
                        subparagraph (A), the Secretary shall submit to 
                        the Committee on Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of the 
                        Senate a report--
                                    ``(I) certifying the adjustment as 
                                necessary to prevent the accumulation 
                                of stocks and to retain market share; 
                                and
                                    ``(II) containing a description of 
                                the need for the adjustment.
                            ``(ii) Effective date of adjustment.--The 
                        adjustment shall become effective not earlier 
                        than 60 calendar days after the date of 
                        submission of the report to the Committees, 
                        except that in the case of the 1996 crop of 
                        feed grains, the adjustment shall become 
                        effective on the date of submission of the 
                        report.
                    ``(C) Competitive position.--Notwithstanding 
                subparagraph (A), if the Secretary determines, not 
                later than 60 days prior to the beginning of a 
                marketing year for a crop, that the effective loan rate 
                established for the crop will not maintain a 
                competitive market position for corn, the Secretary may 
                reduce the loan and purchase level for corn for the 
                marketing year by an amount, in addition to any 
                reduction under subparagraph (A), not to exceed 10 
                percent in any year.
                    ``(D) No effect on future years.--Any reduction in 
                the loan and purchase level for corn under this 
                paragraph shall not be considered in determining the 
                loan and purchase level for corn for subsequent years.
                    ``(E) Minimum loan rate.--Notwithstanding 
                subparagraph (A), the loan rate for corn shall not be 
                less than $1.76 per bushel, unless the rate would 
                exceed 80 percent of the 5-year average market price 
                determined under paragraph (2).
            ``(4) Marketing loans.--
                    ``(A) In general.--The Secretary shall permit the 
                producers on a farm to repay a loan made under this 
                subsection for a crop at a level (except as provided in 
                subparagraph (C)) that is the lesser of--
                            ``(i) the loan level determined for the 
                        crop;
                            ``(ii) the higher of--
                                    ``(I) 70 percent of the level; and
                                    ``(II) if the loan level for a crop 
                                was reduced under paragraph (3), 70 
                                percent of the loan level that would 
                                have been in effect but for the 
                                reduction under paragraph (3); and
                            ``(iii) the prevailing world market price 
                        for feed grains (adjusted to United States 
                        quality and location), as determined by the 
                        Secretary.
                    ``(B) Prevailing world market price.--The Secretary 
                shall prescribe by regulation--
                            ``(i) a formula to determine the prevailing 
                        world market price for feed grains, adjusted to 
                        United States quality and location; and
                            ``(ii) a mechanism by which the Secretary 
                        shall announce periodically the prevailing 
                        world market price for feed grains.
                    ``(C) Alternative repayment rates.--For each of the 
                1996 through 2002 crops of feed grains, if the world 
                market price for feed grains (adjusted to United States 
                quality and location), as determined by the Secretary, 
                is less than the loan level determined for the crop, 
                the Secretary may permit the producers on a farm to 
                repay a loan made under this subsection for a crop at 
                such level (not in excess of the loan level determined 
                for the crop) as the Secretary determines will--
                            ``(i) minimize potential loan forfeitures;
                            ``(ii) minimize the accumulation of feed 
                        grain stocks by the Federal Government;
                            ``(iii) minimize the cost incurred by the 
                        Federal Government in storing feed grains; and
                            ``(iv) allow feed grains produced in the 
                        United States to be marketed freely and 
                        competitively, both domestically and 
                        internationally.
            ``(5) Simple average price.--For purposes of this section, 
        the simple average price received by producers for the 
        immediately preceding marketing year shall be based on the 
        latest information available to the Secretary at the time of 
        the determination.
            ``(6) Other feed grains.--The Secretary shall make 
        available to producers loans and purchases for each of the 1996 
        through 2002 crops of grain sorghums, barley, oats, and rye, 
        respectively, produced on the farm at such level as the 
        Secretary determines is fair and reasonable in relation to the 
        level that loans and purchases are made available for corn, 
        taking into consideration the feeding value of the commodity in 
        relation to corn and other factors specified in section 401(b).
    ``(b) Loan Deficiency Payments.--
            ``(1) In general.--For each of the 1996 through 2002 crops 
        of feed grains, the Secretary may make payments (referred to in 
        this section as `loan deficiency payments') available to 
        producers who, although eligible to obtain a loan or an 
        agreement for purchase under subsection (a), agree to forgo 
        obtaining the loan or agreement in return for payments under 
        this subsection.
            ``(2) Computation.--A payment under this subsection shall 
        be computed by multiplying--
                    ``(A) the loan payment rate; and
                    ``(B) the quantity of feed grains the producers on 
                a farm are eligible to place under loan (or obtain a 
                purchase agreement) but for which the producers forgo 
                obtaining the loan or agreement 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 level determined for the crop under 
                subsection (a); exceeds
                    ``(B) the level at which a loan may be repaid under 
                subsection (a).
    ``(c) Payments.--
            ``(1) Deficiency payments.--
                    ``(A) In general.--The Secretary shall make 
                available to producers payments (referred to in this 
                section as `deficiency payments') for each of the 1996 
                through 2002 crops of corn, grain sorghums, oats, and 
                barley, in an amount computed by multiplying--
                            ``(i) the payment rate;
                            ``(ii) the payment acres for the crop; and
                            ``(iii) the farm program payment yield 
                        established for the crop for the farm.
                    ``(B) Payment rate.--
                            ``(i) In general.--The payment rate for 
                        each of the 1996 through 2002 crops of corn, 
                        grain sorghums, oats, and barley shall be the 
                        amount by which the established price for the 
                        respective crop of feed grains exceeds the 
                        higher of--
                                    ``(I) the lesser of--
                                            ``(aa) the national 
                                        weighted average market price 
                                        received by producers during 
                                        the marketing year for the 
                                        crop, as determined by the 
                                        Secretary; and
                                            ``(bb) the national 
                                        weighted average market price 
                                        received by producers during 
                                        the first 5 months of the 
                                        marketing year for the crop, as 
                                        determined by the Secretary, 
                                        plus 7 cents per bushel; and
                                    ``(II) the loan level determined 
                                for the crop, prior to any adjustment 
                                made under subsection (a)(3) for the 
                                marketing year for the respective crop 
                                of feed grains.
                            ``(ii) Minimum established prices.--
                                    ``(I) Corn.--The established price 
                                for corn shall not be less than $2.75 
                                per bushel for each of the 1996 through 
                                2002 crops of corn.
                                    ``(II) Oats.--The established price 
                                for oats shall be such price as the 
                                Secretary determines is fair and 
                                reasonable in relation to the 
                                established price for corn, but not 
                                less than $1.45 per bushel.
                                    ``(III) Grain sorghums.--The 
                                established price for each of the 1996 
                                through 2002 crops of grain sorghums 
                                shall not be less than $2.61 per 
                                bushel.
                                    ``(IV) Barley.--
                                            ``(aa) In general.--The 
                                        established price for barley 
                                        shall be such price as the 
                                        Secretary determines is fair 
                                        and reasonable in relation to 
                                        the established price for corn, 
                                        taking into consideration the 
                                        various feed and food uses for 
                                        barley. The established price 
                                        for barley shall not be less 
                                        than 85.8 percent of the 
                                        established price for corn.
                                            ``(bb) Barley 
                                        calculations.--The Secretary 
                                        shall, for purposes of 
                                        determining the payment rate 
                                        for barley under clauses (i) 
                                        and (ii) and subparagraph 
                                        (D)(ii), use the national 
                                        weighted average market price 
                                        received by producers of barley 
                                        sold primarily for feed 
                                        purposes.
                                            ``(cc) Advance payments.--
                                        In the case of the 1996 crop of 
                                        barley, the Secretary shall, 
                                        for purposes of determining any 
                                        advance deficiency payment made 
                                        to the producers of barley 
                                        under section 114, use the 
                                        national weighted average 
                                        market price received by 
                                        producers for all barley, as 
                                        determined by the Secretary.
                                            ``(dd) Equity.--In carrying 
                                        out this subsection, the 
                                        Secretary shall make available 
                                        to producers of the 1996 crop 
                                        of barley, notwithstanding the 
                                        method of calculation or the 
                                        amount of the advance 
                                        deficiency payment, the total 
                                        amount of payments as 
                                        calculated under item (bb).
                    ``(C) Payment acres.--Payment acres for a crop 
                shall be the lesser of--
                            ``(i) the number of acres planted to the 
                        crop for harvest within the permitted acreage 
                        (as defined in subsection (e)(2)(D)(ii)); or
                            ``(ii) 75 percent of the crop acreage base 
                        for the crop for the farm less the quantity of 
                        reduced acreage (as defined in subsection 
                        (e)(2)(D)(ii)).
                    ``(D) Emergency compensation.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (A) through (C), if the Secretary 
                        adjusts the level of loans and purchases for 
                        feed grains under subsection (a)(3), the 
                        Secretary shall provide emergency compensation 
                        to producers by increasing the deficiency 
                        payments for feed grains by such amount as the 
                        Secretary determines is necessary to provide 
                        the same total return to producers as if the 
                        adjustment in the level of loans and purchases 
                        had not been made.
                            ``(ii) Calculation.--In determining the 
                        payment rate, per bushel, for emergency 
                        compensation payments for a crop of feed grains 
                        under this subparagraph, the Secretary shall 
                        use the national weighted average market price, 
                        per bushel of feed grains, received by 
                        producers during the marketing year for the 
                        crop, as determined by the Secretary.
                    ``(E) 0/85 program.--
                            ``(i) In general.--If an acreage limitation 
                        program under subsection (e)(2) is in effect 
                        for a crop of feed grains and the producers on 
                        a farm devote a portion of the maximum payment 
                        acres of the farm for feed grains as calculated 
                        under subparagraph (C)(ii) equal to 15 percent 
                        (except as provided in clause (vii)) of the 
                        feed grain acreage of the farm for the crop to 
                        conservation uses (except as provided in 
                        subparagraph (F))--
                                    ``(I) the portion of the maximum 
                                payment acres of the farm in excess of 
                                15 percent (except as provided in 
                                clause (vii)) of the acreage devoted to 
                                conservation uses (except as provided 
                                in subparagraph (F)) shall be 
                                considered to be planted to feed grains 
                                for the purpose of determining the 
                                acreage on the farm required to be 
                                devoted to conservation uses in 
                                accordance with subsection (e)(2)(D); 
                                and
                                    ``(II) the producers shall be 
                                eligible for payments under this 
                                paragraph with respect to the acreage.
                            ``(ii) Deficiency payments.--
                        Notwithstanding any other provision of this 
                        section, any producers on a farm who devote a 
                        portion of the maximum payment acres of the 
                        farm for feed grains to conservation uses (or 
                        other uses as provided in subparagraph (F)) 
                        under this subparagraph shall receive 
                        deficiency payments on the acreage that is 
                        considered to be planted to feed grains and 
                        eligible for payments under this subparagraph 
                        for the crop at a per-bushel rate established 
                        by the Secretary, except that the rate may not 
                        be established at less than the projected 
                        deficiency payment rate for the crop, as 
                        determined by the Secretary. The projected 
                        payment rate for the crop shall be announced by 
                        the Secretary prior to the period during
                         which feed grain producers may agree to 
participate in the program for the crop.
                            ``(iii) Adverse effect on agribusiness and 
                        other interests.--The Secretary shall carry out 
                        this subparagraph in such a manner as to 
                        minimize the adverse effect on agribusiness and 
                        other agriculturally related economic interests 
                        within any county, State, or region. In 
                        carrying out this subparagraph, the Secretary 
                        may restrict the total quantity of feed grain 
                        acreage that may be taken out of production 
                        under this subparagraph, taking into 
                        consideration the total quantity of acreage 
                        that has or will be removed from production 
                        under other price support, production 
                        adjustment, or conservation program activities. 
                        No restrictions on the quantity of acreage that 
                        may be taken out of production in accordance 
                        with this subparagraph in a crop year shall be 
                        imposed in the case of a county in which 
                        producers were eligible to receive disaster 
                        emergency loans under section 321 of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1961) as a result of a disaster that 
                        occurred during the crop year.
                            ``(iv) Crop acreage and payment yield.--The 
                        feed grain crop acreage base and feed grain 
                        farm program payment yield of the farm shall 
                        not be reduced because of the fact that a 
                        portion of the permitted acreage for feed 
                        grains for the farm was devoted to conserving 
                        uses (except as provided in subparagraph (F)) 
                        under this subparagraph.
                            ``(v) Limitation.--Other than as provided 
                        in clauses (i) through (iv), payments may not 
                        be made under this paragraph for any crop on a 
                        greater acreage than the acreage actually 
                        planted to feed grains.
                            ``(vi) Conservation use acreage under other 
                        programs.--Any acreage considered to be planted 
                        to feed grains in accordance with clauses (i) 
                        and (iv) may not also be designated as 
                        conservation use acreage for the purpose of 
                        fulfilling any provision under any acreage 
                        limitation or land diversion program requiring 
                        that the producers devote a specified quantity 
                        of acreage to conservation uses.
                            ``(vii) Exceptions to 0/85.--In the case of 
                        each of the 1996 through 2002 crops of feed 
                        grains, producers on a farm shall be eligible 
                        to receive deficiency payments as provided in 
                        clause (ii) if an acreage limitation program 
                        under subsection (e) is in effect for the crop 
                        and the producers--
                                    ``(I)(aa) have been determined by 
                                the Secretary (in accordance with 
                                section 503(c)) to be prevented from 
                                planting the crop, or have incurred a 
                                reduced yield for the crop because of a 
                                natural disaster; and
                                    ``(bb) elect to devote a portion of 
                                the maximum payment acres for feed 
                                grains (as calculated under 
                                subparagraph (C)(ii)) equal to more 
                                than 8 percent of the feed grain 
                                acreage, to conservation uses; or
                                    ``(II) elect to devote a portion of 
                                the maximum payment acres for feed 
                                grains (as calculated under 
                                subparagraph (C)(ii)) equal to more 
                                than 8 percent of the feed grain 
                                acreage, to alternative crops as 
                                provided in subparagraph (F).
                    ``(F) Alternative crops.--
                            ``(i) Industrial and other crops.--The 
                        Secretary may permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any part of acreage otherwise required to be 
                        devoted to conservation uses as a condition of 
                        qualifying for payments under subparagraph (E) 
                        to be devoted to sweet sorghum, guar, castor 
                        beans, plantago ovato, triticale, rye, millet, 
                        mung beans, commodities for which no 
                        substantial domestic production or market 
                        exists but that could lead to industrial raw 
                        material being imported, or likely to be 
                        imported, into the United States, or 
                        commodities grown for experimental purposes 
                        (including kenaf and milkweed), subject to the 
                        following sentence. The Secretary may permit 
                        the acreage to be devoted to the production 
                        only if the Secretary determines that the 
                        production is--
                                    ``(I) not likely to increase the 
                                cost of the price support program; and
                                    ``(II) needed to provide an 
                                adequate supply of the commodity, or, 
                                in the case of a commodity for which no 
                                substantial domestic production or 
                                market exists but that could yield 
                                industrial raw materials, the 
                                production is needed to encourage 
                                domestic manufacture of the raw 
                                material and could lead to increased 
                                industrial use of the raw material to 
                                the long-term benefit of United States 
                                industry.
                            ``(ii) Oilseeds.--The Secretary shall 
                        permit, subject to such terms and conditions as 
                        the Secretary may prescribe, all or any part of 
                        acreage otherwise required to be devoted to 
                        conservation uses as a condition of qualifying 
                        for payments under subparagraph (E) to be 
                        devoted to sunflowers, rapeseed, canola, 
                        safflower, flaxseed, mustard seed, sesame, 
                        crambe, or other minor oilseeds designated by 
                        the Secretary (excluding soybeans). In carrying 
                        out this
                         clause, the Secretary shall provide that, to 
receive payments under subparagraph (E), the producers shall agree to 
forgo eligibility to receive a loan under section 205 for the crop of 
any such oilseed produced on the farm.
                            ``(iii) Double cropping.--The Secretary 
                        shall permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any portion of the acreage otherwise 
                        required to be devoted to conservation uses as 
                        a condition of qualifying for payments under 
                        subparagraph (E) that is devoted to an 
                        industrial, oilseed, or other crop pursuant to 
                        clause (i) or (ii) to be subsequently planted 
                        during the same crop year to any crop described 
                        in subparagraph (B), (C), or (D) of section 
                        504(b)(1). The planting of soybeans as the 
                        subsequently planted crop shall be limited to 
                        farms determined by the Secretary to have an 
                        established history of double cropping soybeans 
                        during at least 3 of the preceding 5 years. In 
                        carrying out this clause, the Secretary shall 
                        require producers to agree to forego 
                        eligibility to receive loans under this Act for 
                        the crop of the subsequently planted crop that 
                        is produced on a farm under this clause.
            ``(2) Crop insurance requirement.--As a condition of 
        eligibility for feed grain loans, purchases, and payments, the 
        producers on a farm shall obtain catastrophic risk protection 
        insurance coverage in accordance with section 427.
    ``(d) Payment Yields.--The farm program payment yields for farms 
for each crop of feed grains under this section shall be determined 
under title V.
    ``(e) Acreage Reduction Programs.--
            ``(1) In general.--
                    ``(A) Establishment.--Notwithstanding any other 
                provision of this Act, if the Secretary determines that 
                the total supply of corn, grain sorghum, barley, or 
                oats, in the absence of an acreage limitation program, 
                will be excessive taking into account the need for an 
                adequate carry-over to maintain reasonable and stable 
                supplies and prices and to meet a national emergency, 
                the Secretary may provide for any crop of corn, grain 
                sorghum, barley, or oats an acreage limitation program 
                as described in paragraph (2).
                    ``(B) Agricultural resources conservation 
                program.--In making a determination under subparagraph 
                (A), the Secretary shall take into consideration the 
                number of acres placed in the agricultural resources 
                conservation program established under subtitle D of 
                title XII of the Food Security Act of 1985 (16 U.S.C. 
                3830 et seq.).
                    ``(C) Announcements.--If the Secretary elects to 
                implement an acreage limitation program for any crop 
                year, the Secretary shall announce the program not 
                later than the September 30 preceding the calendar year 
                in which the crop is harvested, except that in the case 
                of the 1996 crop, the Secretary shall announce the 
                program as soon as practicable after the date of 
                enactment of the Food, Agriculture, Conservation, and 
                Trade Act of 1995.
                    ``(D) Adjustments.--Not later than November 15 of 
                the year preceding the year in which the crop is 
                harvested, the Secretary may make adjustments in the 
                program announced under subparagraph (C) if the 
                Secretary determines that there has been a significant 
                change in the total supply of feed grains since the 
                program was first announced.
                    ``(E) Compliance.--As a condition of eligibility 
                for loans, purchases, and payments for any such crop of 
                feed grains, except as provided in subsections (f) and 
                (g) and section 504, the producers on a farm shall 
                comply with the terms and conditions of the acreage 
                limitation program and, if applicable, a land diversion 
                program as provided in paragraph (5).
                    ``(F) Acreage limitation programs.--If the 
                Secretary estimates for a marketing year for the crop 
                that the ratio of ending stocks of corn to total 
                disappearance of corn for the preceding marketing year 
                will be--
                            ``(i) more than 25 percent, the Secretary 
                        shall provide for an acreage limitation program 
                        (as described in paragraph (2)) under which the 
                        acreage planted to corn for harvest on a farm 
                        is limited to the corn crop acreage base for 
                        the farm for the crop reduced by not less than 
                        10 percent nor more than 20 percent; or
                            ``(ii) equal to or less than 25 percent, 
                        the Secretary may provide for such an acreage 
                        limitation program under which the acreage 
                        planted to corn for harvest on a farm is 
                        limited to the corn crop acreage base for the 
                        farm for the crop reduced by not more than 12.5 
                        percent.
                    ``(G) Definition of total disappearance.--In this 
                paragraph, the term `total disappearance' means all 
                corn utilization, including total domestic, total 
                export, and total residual disappearance.
                    ``(H) Acreage limitation program for 1996 through 
                2002 crops of oats.--In the case of each of the 1996 
                through 2002 crops of oats, the Secretary shall provide 
                for an acreage limitation program (as described in 
                paragraph (2)) under which the acreage planted to oats 
                for harvest on a farm would be limited to the oat crop 
                acreage base for the farm for the crop reduced by not 
                more than 0 percent.
            ``(2) Acreage limitation program.--
                    ``(A) Percentage reductions.--Except as provided in 
                paragraph (3), if a feed grain acreage limitation 
                program is announced under
                 paragraph (1), the limitation shall be achieved by 
applying a uniform percentage reduction (from 0 to 20 percent) to the 
crop acreage base for corn, grain sorghum, barley, or oats, 
respectively, for each feed grain-producing farm.
                    ``(B) Compliance.--Except as provided in subsection 
                (g) and section 504, producers who knowingly produce a 
                feed grain in excess of the respective permitted 
                acreage for feed grains for the farm shall be 
                ineligible for feed grain loans, purchases, and 
                payments with respect to the farm.
                    ``(C) Crop acreage bases.--Feed grain crop acreage 
                bases for each crop of feed grains shall be determined 
                under title V.
                    ``(D) Acreage devoted to conservation uses.--
                            ``(i) In general.--A number of acres on the 
                        farm shall be devoted to conservation uses, in 
                        accordance with regulations issued by the 
                        Secretary.
                            ``(ii) Number.--The number shall be 
                        determined by multiplying the respective feed 
                        grain crop acreage base by the percentage 
                        reduction required by the Secretary. The number 
                        of acres so determined is referred to in this 
                        section as `reduced acreage'. The remaining 
                        acreage is referred to in this section as 
                        `permitted acreage'.
                            ``(iii) Adjustment.--Permitted acreage may 
                        be adjusted by the Secretary as provided in 
                        paragraph (3) and in section 504.
                    ``(E) Individual farm program acreage.--Except as 
                otherwise provided in subsection (c), the individual 
                farm program acreage shall be the acreage planted on 
                the farm to feed grains for harvest within the 
                permitted acreage for feed grains for the farm as 
                established under this paragraph.
                    ``(F) Planting designated crops on reduced 
                acreage.--
                            ``(i) Definition of designated crop.--In 
                        this subparagraph, the term `designated crop' 
                        means a crop specified in section 504(b)(1), 
                        excluding any program crop as defined in 
                        section 502(3).
                            ``(ii) Planting designated crops.--Subject 
                        to clause (iii), the Secretary may permit 
                        producers on a farm to plant a designated crop 
                        on not more than \1/2\ of the reduced acreage 
                        on the farm.
                            ``(iii) Limitations.--If the producers on a 
                        farm elect to plant a designated crop on 
                        reduced acreage under this subparagraph--
                                    ``(I) the amount of the deficiency 
                                payment that the producers are 
                                otherwise eligible to receive under 
                                subsection (c) shall be reduced, for 
                                each acre (or portion of an acre) that 
                                is planted to the designated crop, by 
                                an amount equal to the deficiency 
                                payment that would be made with respect 
                                to a number of acres of the crop that 
                                the Secretary considers appropriate, 
                                except that if the producers on the 
                                farm are participating in a program 
                                established for more than 1 program 
                                crop, the amount of the reduction shall 
                                be determined by prorating the 
                                reduction based on the acreage planted 
                                or considered planted on the farm to 
                                all of the program crops; and
                                    ``(II) the Secretary shall ensure 
                                that reductions in deficiency payments 
                                under subclause (I) are sufficient to 
                                ensure that this subparagraph will 
                                result in no additional cost to the 
                                Commodity Credit Corporation.
                    ``(G) Exception for malting barley.--The Secretary 
                may provide that no producer of malting barley shall be 
                required as a condition of eligibility for feed grain 
                loans, purchases, and payments to comply with any 
                acreage limitation under this paragraph if the producer 
                has previously produced a malting variety of barley for 
                harvest, plants barley only of an acceptable malting 
                variety for harvest, and meets such other conditions as 
                the Secretary may prescribe. The Secretary shall make 
                an annual determination of whether to exempt the 
                producers from compliance with any acreage limitation 
                under this paragraph and shall announce the 
                determination in the Federal Register.
                    ``(H) Corn and sorghum bases.--Notwithstanding any 
                other provision of this Act, with respect to each of 
                the 1996 through 2002 crops of corn and grain 
                sorghums--
                            ``(i) the Secretary shall combine the 
                        permitted acreages established under 
                        subparagraph (D) for a farm for a crop year for 
                        corn and grain sorghums;
                            ``(ii) for each crop year, the sum of the 
                        acreage planted and considered planted to corn 
                        and grain sorghum, as determined by the 
                        Secretary under this section and title V, shall 
                        be prorated to corn and grain sorghum based on 
                        the ratio of the crop acreage base for the 
                        individual crop of corn or grain sorghum, as 
                        applicable, to the sum of the crop acreage 
                        bases for corn and grain sorghum established 
                        for each crop year; and
                            ``(iii) for each crop year, the sum of the 
                        corn and grain sorghum payment acres, as 
                        determined under subsection (c), shall be 
                        prorated to corn and grain sorghum based on the 
                        ratio of the maximum payment acres for the 
                        individual crop of corn or grain sorghum, as 
                        applicable, to the sum of the maximum payment 
                        acres for corn and grain sorghum established 
                        for each crop year.
            ``(3) Targeted option payments.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, if the Secretary implements 
                an acreage limitation program with respect to any of 
                the 1996 through 2002 crops of feed grains, the 
                Secretary may make available to producers on a farm who 
                do not receive payments under subsection (c)(1)(E) for 
                the crop on the farm, adjustments in the level of 
                deficiency payments that would otherwise be made 
                available to the producers if the producers exercise 
                the payment options provided in this paragraph.
                    ``(B) Payment options.--If the Secretary elects to 
                carry out this paragraph, the Secretary shall make the 
                payment options specified in subparagraphs (C) and (D) 
                available to producers who agree to make adjustments in 
                the quantity of acreage diverted from the production of 
                feed grains under an acreage limitation program in 
                accordance with this paragraph.
                    ``(C) Increased acreage limitation option.--
                            ``(i) Increase in established price.--If 
                        the Secretary elects to carry out this 
                        paragraph, the producers on a farm shall be 
                        eligible to receive an increase in the 
                        established price for corn in accordance with 
                        clause (ii) if the producers agree to an 
                        increase in the acreage limitation percentage 
                        to be applied to the corn acreage base of the 
                        producers above the acreage limitation 
                        percentage announced by the Secretary.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who participate 
                        in the program under this paragraph, the 
                        Secretary shall increase the established price 
                        for corn by an amount determined by the 
                        Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point increase in the acreage limitation 
                        percentage applied to the corn acreage base of 
                        the producers.
                            ``(iii) Limitation.--The acreage limitation 
                        percentage to be applied to the corn acreage 
                        base of the producers shall not be increased by 
                        more than 10 percentage points above the 
                        acreage limitation percentage announced by the 
                        Secretary for the crop or above 20 percent 
                        total for the crop.
                    ``(D) Decreased acreage limitation option.--
                            ``(i) Decrease in acreage limitation 
                        requirement.--If the Secretary elects to carry 
                        out this paragraph, the producers on a farm 
                        shall be eligible to decrease the acreage 
                        limitation percentage applicable to the corn 
                        acreage base of the producers (as announced by 
                        the Secretary) if the producers agree to a 
                        decrease in the established price for corn in 
                        accordance with clause (ii) for the purpose of 
                        calculating deficiency payments to be made 
                        available to the producers.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who choose the 
                        option established under this subparagraph, the 
                        Secretary shall decrease the established price 
                        for corn by an amount to be determined by the 
                        Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point decrease in the acreage limitation 
                        percentage applied to the corn acreage base of 
                        the producers.
                            ``(iii) Limitation.--The producers on a 
                        farm may not choose to decrease the acreage 
                        limitation percentage applicable to the corn 
                        acreage base of the producers under this 
                        paragraph by more than \1/2\ of the announced 
                        acreage limitation percentage.
                    ``(E) Other feed grains.--The Secretary shall carry 
                out the program provided for by this paragraph for 
                other feed grains similar to the manner in which the 
                program is implemented for corn.
                    ``(F) Participation and production effects.--
                Notwithstanding any other provision of this paragraph, 
                the Secretary shall, to the extent practicable, ensure 
                that the program provided for in this paragraph does 
                not have a significant effect on participation in the 
                program established by this section or total production 
                and is offered in such a manner that
                 the Secretary determines will result in no additional 
budget outlays. The Secretary shall provide an analysis of the 
determination of the Secretary to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate.
            ``(4) Administration.--
                    ``(A) Protection from weeds and erosion.--The 
                regulations issued by the Secretary under paragraph (2) 
                with respect to acreage required to be devoted to 
                conservation uses shall ensure protection of the 
                acreage from weeds and wind and water erosion.
                    ``(B) Conserving crops.--The Secretary may permit, 
                subject to such terms and conditions as the Secretary 
                may prescribe, all or any part of the acreage to be 
                devoted to sweet sorghum, guar, sesame, castor beans, 
                crambe, plantago ovato, triticale, rye, mung beans, 
                milkweed, or other commodity, if the Secretary 
                determines that the production is needed to provide an 
                adequate supply of the commodity, is not likely to 
                increase the cost of the price support program, and 
                will not affect farm income adversely.
                    ``(C) Haying and grazing.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), haying and grazing of reduced 
                        acreage, acreage devoted to a conservation use 
                        under subsection (c)(1)(E), and acreage 
                        diverted from production under a land diversion 
                        program established under this subsection shall 
                        be permitted, except during any consecutive 5-
                        month period that is established by the State 
                        committee established under section 8(b) of the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590h(b)) for a State. The 5-month 
                        period shall be established during the period 
                        beginning April 1, and ending October 31, of a 
                        year.
                            ``(ii) Natural disasters.--In the case of a 
                        natural disaster, the Secretary may permit 
                        unlimited haying and grazing on the acreage. 
                        The Secretary may not exclude irrigated or 
                        irrigable acreage not planted to alfalfa when 
                        exercising the authority under this clause.
                    ``(D) Water storage uses.--
                            ``(i) In general.--The regulations issued 
                        by the Secretary under paragraph (2) with 
                        respect to acreage required to be devoted to 
                        conservation uses shall provide that land that 
                        has been converted to water storage uses shall 
                        be considered to be devoted to conservation 
                        uses if the land was devoted to wheat, feed 
                        grains, cotton, rice, or oilseeds in at least 3 
                        of the immediately preceding 5 crop years. The 
                        land shall be considered to be devoted to 
                        conservation uses for the period that the land 
                        remains in water storage uses, but not to 
                        exceed 5 crop years subsequent to the 
                        conversion of the land to water storage uses.
                            ``(ii) Limitations.--Land converted to 
                        water storage uses for the purposes of this 
                        subparagraph may not be devoted to any 
                        commercial use, including commercial fish 
                        production. The water stored on the land may 
                        not be ground water. The farm on which the land 
                        is located must have been irrigated with ground 
                        water during at least 1 of the preceding 5 crop 
                        years.
                    ``(E) Summer fallow.--In determining the quantity 
                of land to be devoted to conservation uses under an 
                acreage limitation program with respect to land that 
                has been farmed under summer fallow practices, as 
                defined by the Secretary, the Secretary shall consider 
                the effects of soil erosion and such other factors as 
                the Secretary considers appropriate.
            ``(5) Land diversion payments.--
                    ``(A) In general.--The Secretary may make land 
                diversion payments to producers of feed grains, whether 
                or not an acreage limitation program for feed grains is 
                in effect, if the Secretary determines that the land 
                diversion payments are necessary to assist in adjusting 
                the total national acreage of feed grains to desirable 
                goals. The land diversion payments shall be made to 
                producers who, to the extent prescribed by the 
                Secretary, devote to approved conservation uses an 
                acreage of cropland on the farm in accordance with land 
                diversion contracts entered into by the Secretary with 
                the producers.
                    ``(B) Amounts.--The amounts payable to producers 
                under land diversion contracts may be determined 
                through the submission of bids for the contracts by 
                producers in such manner as the Secretary may prescribe 
                or through such other means as the Secretary determines 
                appropriate. In determining the acceptability of 
                contract offers, the Secretary shall take into 
                consideration the extent of the diversion to be 
                undertaken by the producers and the productivity of the 
                acreage diverted.
                    ``(C) Limitation on diverted acreage.--The 
                Secretary shall limit the total acreage to be diverted 
                under agreements in any county or local community so as 
                not to affect adversely the economy of the county or 
                local community.
            ``(6) Conservation practices.--
                    ``(A) Wildlife food plots or habitat.--The reduced 
                acreage and additional diverted acreage may be devoted 
                to wildlife food plots or wildlife habitat in 
                conformity with standards established by the Secretary 
                in consultation with wildlife agencies. The Secretary 
                may pay an appropriate share of the cost of practices 
                designed to carry out this subparagraph.
                    ``(B) Soil and water conservation practices.--The 
                Secretary may pay an appropriate share of the cost of 
                approved soil and water conservation practices 
                (including practices that may be effective for a number 
                of years) established by the producers on a farm on 
                acreage required to be devoted to conservation uses or 
                on additional diverted acreage.
                    ``(C) Public accessibility.--The Secretary may 
                provide for an additional payment on the acreage in an 
                amount determined by the Secretary to be appropriate in 
                relation to the benefit to the general public if the 
                producers on a farm agree to permit, without other 
                compensation, access to all or such portion of the 
                farm, as the Secretary may prescribe by the general 
                public, for hunting, trapping, fishing, and hiking, 
                subject to applicable Federal and State regulations.
            ``(7) Participation agreements.--
                    ``(A) In general.--Producers on a farm desiring to 
                participate in the program conducted under this 
                subsection shall execute an agreement with the 
                Secretary providing for the participation with respect 
                to a crop year not later than such date as the 
                Secretary may prescribe.
                    ``(B) Modification or termination.--The Secretary 
                may, by mutual agreement with producers on a farm, 
                modify or terminate any such agreement if the Secretary 
                determines the action necessary because of an emergency 
                created by drought or other disaster or to prevent or 
                alleviate a shortage in the supply of agricultural 
                commodities. The Secretary may modify the agreement 
                under this subparagraph for the purpose of alleviating 
                a shortage in the supply of agricultural commodities 
                only if there has been a significant change in the 
                estimated stocks of the commodity since the Secretary 
                announced the final terms and conditions of the program 
                for the crop of feed grains.
            ``(8) Special oats plantings.--In the case of a crop year 
        for which the Secretary determines that projected domestic 
        production of oats will not fulfill the projected domestic 
        demand for oats, notwithstanding paragraphs (1) through (7), 
        the Secretary--
                    ``(A) may provide that any reduced acreage may be 
                planted to oats for harvest;
                    ``(B) may make program benefits (including loans, 
                purchases, and payments) available under the annual 
                program for oats under this section available to 
                producers with respect to acreage planted to oats under 
                this paragraph; and
                    ``(C) shall not make program benefits other than 
                the benefits specified in subparagraph (B) available to 
                producers with respect to acreage planted to oats under 
                this paragraph.
    ``(f) Inventory Reduction Payments.--
            ``(1) In general.--The Secretary may make payments 
        available to producers on a farm who meet the requirements of 
        this subsection.
            ``(2) Form.--The payments may be made in the form of 
        marketing certificates.
            ``(3) Payments.--Payments under this subsection shall be 
        determined in the same manner as provided in subsection (b).
            ``(4) Eligibility.--The producers on a farm shall be 
        eligible to receive a payment under this subsection for a crop 
        if the producers--
                    ``(A) agree to forgo obtaining a loan or purchase 
                agreement under subsection (a);
                    ``(B) agree to forgo receiving payments under 
                subsection (c);
                    ``(C) do not plant feed grains for harvest in 
                excess of the crop acreage base reduced by \1/2\ of any 
                acreage required to be diverted from production under 
                subsection (e); and
                    ``(D) otherwise comply with this section.
    ``(g) Pilot Voluntary Production Limitation Program.--
            ``(1) In general.--Effective for each of the 1996 through 
        2002 crops, if a feed grain acreage limitation program or a 
        land diversion program is announced under subsection (e) for a 
        crop, the Secretary may carry out a pilot program in at least 
        15 counties in at least 2 States where producers express an 
        interest in participating in the pilot program. Under the pilot 
        program, the producers on a farm shall be considered to have 
        met the requirements of the acreage limitation or land 
        diversion program if the producers meet the requirements of the 
        voluntary production limitation program established under this 
        subsection.
            ``(2) Limitation on marketing.--To comply with the 
        voluntary production limitation program, the producers on a 
        farm must agree not to market, barter, donate, or use on the 
        farm (including use as feed for livestock) in a marketing year 
        a quantity of feed grains in excess of the feed grain 
        production limitation quantity for the farm for the marketing 
        year.
            ``(3) Production limitation quantity.--For purposes of this 
        subsection, the production limitation quantity for a farm for a 
        marketing year for a crop shall equal the product obtained by 
        multiplying--
                    ``(A) the acreage permitted to be planted to feed 
                grains under the acreage reduction program or land 
                diversion program in effect for the crop for the farm; 
                and
                    ``(B) the greater of--
                            ``(i) the farm program payment yield for 
                        the farm; and
                            ``(ii) the average of the yield per 
                        harvested acre for feed grains for the farm for 
                        each of the 5 crop years immediately preceding 
                        the crop year during which the producers first 
                        participate in the program established under 
                        this subsection, excluding the crop years with 
                        the highest and lowest yield per harvested acre 
                        and any crop year
                         in which the commodity was not planted on the 
farm.
            ``(4) Terms and conditions.--Producers on a farm who elect 
        to participate in the program established under this subsection 
        for a crop of feed grains shall--
                    ``(A) enter into an agreement with the Secretary 
                providing that the producers shall comply with the 
                program for the crop;
                    ``(B) not plant program commodities for harvest in 
                a quantity in excess of the sum of the crop acreage 
                bases for the farm; and
                    ``(C) be considered to have complied with the terms 
                and conditions of the feed grain acreage reduction 
                program or land diversion program for the crop, even 
                though the acreage planted to feed grains on the farm 
                exceeds the permitted acreage provided under the 
                acreage reduction or land diversion program.
            ``(5) Excess production.--
                    ``(A) In general.--Any quantity of feed grains 
                produced in a crop year on a farm in excess of the 
                production limitation quantity for the farm may be 
                stored by the producers for a period of not to exceed 5 
                marketing years and may be used only in accordance with 
                this paragraph.
                    ``(B) Marketing in subsequent year.--
                            ``(i) Participants in program.--Producers 
                        on a farm who are participating in the program 
                        established under this subsection may market, 
                        barter, or use a quantity of the excess feed 
                        grains referred to in subparagraph (A) equal to 
                        the difference between the production 
                        limitation quantity for the farm for the crop 
                        year subsequent to the crop year in which the 
                        excess feed grains are produced less the 
                        quantity of feed grains produced on the farm 
                        during the crop year.
                            ``(ii) Participants in acreage reduction 
                        program.--Producers on a farm who are 
                        participating in the program established under 
                        this subsection may market, barter, or use a 
                        quantity of the excess feed grains referred to 
                        in subparagraph (A) in an amount that reflects 
                        the quantity of feed grains that would be 
                        expected to be produced on acreage that the 
                        producers agree to devote to approved 
                        conservation uses (in excess of any acreage 
                        reduction or land diversion requirements) 
                        during a crop year, as determined by the 
                        Secretary.
            ``(6) Duties of secretary.--In carrying out the pilot 
        program established under this subsection, the Secretary--
                    ``(A) shall issue such regulations as are necessary 
                to carry out the program;
                    ``(B) may establish increased acreage reduction or 
                land diversion requirements with respect to producers 
                who have had excess feed grain production in order to 
                allow the producers to market, barter, or use the 
                production in subsequent years;
                    ``(C) shall take appropriate measures designed to 
                prevent the circumvention of the program established 
                under this subsection, including the imposition of 
                penalties;
                    ``(D) may require producers who participate in the 
                program for a crop, but who fail to comply with the 
                terms and conditions of the program, to refund all or a 
                part of any deficiency payments received with respect 
                to the crop;
                    ``(E) may require the forfeiture to the Commodity 
                Credit Corporation of any feed grains that are produced 
                in excess of the production limitation quantity and 
                that are not marketed, bartered, or used within 5 
                marketing years; and
                    ``(F) shall ensure equitable treatment for 
                producers who participate in the pilot program if the 
                Secretary allows increases (based on actual production 
                levels) in the determination of farm program payment 
                yields for feed grains for the farm.
            ``(7) Report.--
                    ``(A) In general.--The Comptroller General shall 
                prepare a report that evaluates the pilot program 
                carried out under this subsection.
                    ``(B) Submission.--The Comptroller General shall 
                submit a copy of the report required by subparagraph 
                (A) to the Committee on Agriculture of the House of 
                Representatives, the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate, and the 
                Secretary.
    ``(h) Equitable Relief.--
            ``(1) Loans, purchases, and payments.--If the failure of a 
        producer to comply fully with the terms and conditions of the 
        program conducted under this section precludes the making of 
        loans, purchases, and payments, the Secretary may, 
        notwithstanding the failure, make the loans, purchases, and 
        payments in such amounts as the Secretary determines are 
        equitable in relation to the seriousness of the failure. The 
        Secretary may consider whether the producer made a good faith 
        effort to comply fully with the terms and conditions of the 
        program in determining whether equitable relief is warranted 
        under this paragraph.
            ``(2) Deadlines and program requirements.--The Secretary 
        may authorize the county and State committees established under 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other 
        program requirements in cases in which lateness or failure to 
        meet the other requirements does not affect adversely the 
        operation of the program.
    ``(i) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this section.
    ``(j) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(k) Assignment of Payments.--Section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) shall apply 
to payments made under this section.
    ``(l) Sharing of Payments.--The Secretary shall provide for the 
sharing of payments made under this section for any farm among the 
producers on the farm on a fair and equitable basis.
    ``(m) Tenants and Sharecroppers.--In carrying out this section, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    ``(n) Cross-Compliance.--
            ``(1) In general.--Compliance on a farm with the terms and 
        conditions of any other commodity program, or compliance with 
        crop acreage base requirements for any other commodity, may not 
        be required as a condition of eligibility for loans, purchases, 
        or payments under this section.
            ``(2) Compliance on other farms.--The Secretary may not 
        require producers on a farm, as a condition of eligibility for 
        loans, purchases, or payments under this section for the farm, 
        to comply with the terms and conditions of the feed grains 
        program with respect to any other farm operated by the 
        producers.
    ``(o) Public Comment on Feed Grains Program.--
            ``(1) In general.--To ensure that producers and consumers 
        of feed grains are provided with reasonable opportunity to 
        comment on the annual program determinations concerning the 
        price support and acreage reduction program for each of the 
        1997 through 2002 crops of feed grains, the Secretary shall 
        request public comment regarding the feed grains program in 
        accordance with this subsection.
            ``(2) Options.--Not less than 60 days before the program is 
        announced for a crop of feed grains under this section, the 
        Secretary shall propose for public comment various program 
        options for the crop of feed grains.
            ``(3) Analyses.--Each option proposed by the Secretary 
        shall be accompanied by an analysis that includes the estimated 
        planted acreage, production, domestic and export use, ending 
        stocks, season average producer price, program participation 
        rate, and cost to the Federal Government that would likely 
        result from the option.
            ``(4) Estimates.--In announcing the program for a crop of 
        feed grains under this section, the Secretary shall include an 
        estimate of the planted acreage, production, domestic and 
        export use, ending stocks, season average producer price, 
        program participation rate, and cost to the Federal Government 
        that is expected to result from the program as announced.
    ``(p) Malting Barley.--
            ``(1) Assessment required.--To help offset costs associated 
        with deficiency payments made available under this section to 
        producers of barley, the Secretary shall provide for an 
        assessment for each of the 1996 through 2002 crop years to be 
        levied on any producer of malting barley produced on a farm 
        that is enrolled for the crop year in the production adjustment 
        program under this section. The Secretary shall establish the 
        assessment at not more than 5 percent of the value of the 
        malting barley produced on program payment acres on the farm 
        during each of the 1996 through 2002 crop years. The production 
        per acre on which the assessment is based shall not be greater 
        than the farm program payment yield.
            ``(2) Value of malting barley.--The Secretary may establish 
        the value of the malting barley at the lesser of the State or 
        national weighted average market price received by producers of 
        malting barley for the first 5 months of the marketing year. In 
        calculating the State or national weighted average market 
        price, the Secretary may exclude the value of malting barley 
        that is contracted for sale by producers prior to planting.
            ``(3) Exception to assessment.--In a county where malting 
        barley is produced, participating barley producers may certify 
        to the Secretary prior to computation of final deficiency 
        payments that part or all of the production of the producer was 
        (or will be) sold or used for nonmalting purposes. The portion 
        certified as sold or used for nonmalting purposes shall not be 
        subject to the assessment. The Secretary may require producers 
        to provide to the Secretary such documentation as the Secretary 
        considers appropriate to carry out this paragraph.
    ``(q) Price Support for High-Moisture Feed Grains.--
            ``(1) Recourse loans.--Notwithstanding any other provision 
        of law, effective for each of the 1996 through 2002 crops of 
        feed grains, the Secretary (through the Commodity Credit 
        Corporation) shall make available recourse loans, as determined 
        by the Secretary, to producers on a farm who--
                    ``(A) normally harvest all or a portion of the crop 
                of feed grains of the producers with a moisture content 
                in excess of Commodity Credit Corporation standards for 
                loans made by the Secretary under paragraphs (1) and 
                (6) of subsection (a) (referred to in this section as 
                `high-moisture');
                    ``(B)(i) present 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 feed grain 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;
                    ``(C) certify that the producers were the owners of 
                the feed grain at the time of delivery to, and that the 
                quantity to be placed under loan was harvested on the 
                farm and delivered to, a feedlot, feed mill, or 
                commercial or on-farm high-moisture storage facility, 
                or to the facilities maintained by the users of the 
                high-moisture feed grain;
                    ``(D) comply with deadlines established by the 
                Secretary for harvesting the feed grain and submit 
                applications for loans within deadlines established by 
                the Secretary; and
                    ``(E) participate in an acreage limitation program 
                for the crop of feed grains established by the 
                Secretary.
            ``(2) Eligibility of acquired feed grains.--The loans shall 
        be made on a quantity of feed grains of the same crop acquired 
        by the producers on a farm equivalent to a quantity determined 
        by multiplying--
                    ``(A) the acreage of the feed grain in a high-
                moisture state harvested on the farm of the producer; 
                and
                    ``(B) 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 
                high-moisture feed grain was obtained.
    ``(r) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of feed 
grains.''.

SEC. 202. NONAPPLICABILITY OF SECTION 105 OF THE AGRICULTURAL ACT OF 
              1949.

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

SEC. 203. RECOURSE LOAN PROGRAM FOR SILAGE.

    Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-1) is 
amended by striking ``1996'' and inserting ``2002''.
                           TITLE III--COTTON

SEC. 301. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1996 
              THROUGH 2002 CROPS OF UPLAND COTTON.

    Section 103B of the Agricultural Act of 1949 (7 U.S.C. 1444-2) is 
amended to read as follows:

``SEC. 103B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 
              1996 THROUGH 2002 CROPS OF UPLAND COTTON.

    ``(a) Loans.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary shall, on presentation of warehouse 
        receipts or other acceptable evidence of title, as determined 
        by the Secretary, reflecting accrued storage charges of not 
        more than 60 days, make available for each of the 1996 through 
        2002 crops of upland cotton to producers on a farm nonrecourse 
        loans for upland cotton produced on the farm for a term of 10 
        months from the first day of the month in which the loan is 
        made at such loan level, per pound, as will reflect for the 
        base quality of upland cotton, as determined by the Secretary, 
        at an average location in the United States a level that is not 
        less than the lesser of--
                    ``(A) 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 of 
                the year in which the loan level 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
                    ``(B) 90 percent of the average price, for the 15-
                week period beginning July 1 of the year in which the 
                loan level 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 the 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.
            ``(2) Adjustments to loan level.--
                    ``(A) Limitation on decrease in loan level.--The 
                loan level for any crop determined under paragraph (1) 
                may not be reduced by more than 5 percent from the 
                level determined for the preceding crop, and may not be 
                reduced below 50 cents per pound.
                    ``(B) Limitation on increase in loan level.--If for 
                any crop the average Northern European price determined 
                under paragraph (1)(B) is less than the average United 
                States spot market price determined under paragraph 
                (1)(A), the Secretary may increase the loan level to 
                such level as the Secretary may consider appropriate, 
                not in excess of the average United States spot market 
                price determined under paragraph (1)(A).
            ``(3) Announcement of loan level.--The loan level for any 
        crop of upland cotton shall be determined and announced by the 
        Secretary not later than November 1 of the calendar year 
        preceding the marketing year for which the loan is to be 
        effective or, in the case of the 1996 crop, as soon as 
        practicable after the date of enactment of the Agricultural 
        Competitiveness Act of 1995. The loan level for a crop shall 
        not be changed after announcement.
            ``(4) Extension of loan period.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), nonrecourse loans provided for in 
                this section shall, on request of the producers on a 
                farm during the 10th month of the loan period for the 
                cotton, be made available for an additional term of 8 
                months.
                    ``(B) Limitation.--A request to extend the loan 
                period shall not be approved in any month in which the 
                average price of the base quality of upland cotton, as 
                determined by the Secretary, in the designated spot 
                markets for the preceding month exceeds 130 percent of 
                the average price of the base quality of cotton in the 
                designated United States spot markets for the preceding 
                36-month period.
            ``(5) Marketing loans.--
                    ``(A) In general.--If the Secretary determines that 
                the prevailing world market price for upland cotton 
                (adjusted to United States quality and location) is 
                below the loan level determined under paragraphs (1) 
                through (4), to make United States upland cotton 
                competitive in world markets, the Secretary shall 
                permit the producers on a farm to repay a loan made for 
                any crop at--
                            ``(i) a level that is the lesser of--
                                    ``(I) the loan level determined for 
                                the crop; and
                                    ``(II) the greater of--
                                            ``(aa) 70 percent of the 
                                        loan level determined for the 
                                        crop; and
                                            ``(bb) the prevailing world 
                                        market price for upland cotton 
                                        (adjusted to United States 
                                        quality and location), as 
                                        determined by the Secretary; or
                            ``(ii) such other level (not in excess of 
                        the loan level determined for the crop nor less 
                        than 70 percent of the loan level) that the 
                        Secretary determines will--
                                    ``(I) minimize potential loan 
                                forfeitures;
                                    ``(II) minimize the accumulation of 
                                upland cotton stocks by the Federal 
                                Government;
                                    ``(III) minimize the cost incurred 
                                by the Federal Government in storing 
                                upland cotton; and
                                    ``(IV) allow upland cotton produced 
                                in the United States to be marketed 
                                freely and competitively, both 
                                domestically and internationally.
                    ``(B) First handler marketing certificates.--
                            ``(i) In general.--During the period 
                        beginning August 1, 1996, and ending July 31, 
                        2003, if a program carried out under 
                        subparagraph (A) or subsection (b) fails to 
                        make United States upland cotton fully 
                        competitive in world markets and the prevailing 
                        world market price of upland cotton (adjusted 
                        to United States quality and location), as 
                        determined by the Secretary, is below the 
                        current loan repayment rate for upland cotton 
                        determined under subparagraph (A), to make 
                        United States upland cotton competitive in 
                        world markets and to maintain and expand 
                        domestic consumption and exports of upland 
                        cotton produced in the United States, the 
                        Secretary shall provide for the issuance of 
                        marketing certificates or cash payments in 
                        accordance with this subparagraph.
                            ``(ii) Payments.--The Commodity Credit 
                        Corporation, under such regulations as the 
                        Secretary may prescribe, shall make payments, 
                        through the issuance of marketing certificates 
                        or cash payments, to first handlers of cotton 
                        (who shall be persons regularly engaged in 
                        buying or selling upland cotton) who have 
                        entered into an agreement with the Commodity 
                        Credit Corporation to participate in the 
                        program established under this subparagraph. 
                        The payments shall be made in such monetary 
                        amounts and subject to such terms and 
                        conditions as the Secretary determines will 
                        make upland cotton produced in the United 
                        States available at competitive prices, 
                        consistent with the purposes of this 
                        subparagraph.
                            ``(iii) Value.--The value of each 
                        certificate or cash payment issued under clause 
                        (ii) shall be based on the difference between--
                                    ``(I) the loan repayment rate for 
                                upland cotton; and
                                    ``(II) the prevailing world market 
                                price of upland cotton (adjusted to 
                                United States quality and location), as 
                                determined by the Secretary.
                            ``(iv) Redemption, marketing, or 
                        exchange.--The Commodity Credit Corporation, 
                        under regulations prescribed by the Secretary, 
                        may assist any person receiving marketing 
                        certificates under this subparagraph in the 
                        redemption of the certificates for cash, or 
                        marketing or exchange of the certificates for 
                        agricultural commodities or products owned by 
                        the Commodity Credit Corporation, at such 
                        times, in such manner, and at such price levels 
                        as the Secretary determines will best 
                        effectuate the purposes of the program 
                        established under this subparagraph. 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 
                        subparagraph.
                            ``(v) Designation of commodities and 
                        products; charges.--Insofar as practicable, the 
                        Secretary shall permit owners of certificates 
                        to designate the commodities and the products 
                        of the commodities, including storage sites of 
                        the commodities and products, that the owners 
                        would prefer to receive in exchange for 
                        certificates. If any certificate is not 
                        presented for redemption, marketing, or 
                        exchange within a reasonable number of days 
                        after the issuance of the certificate (as 
                        determined by the Secretary), the reasonable 
                        costs of storage and other carrying charges, as 
                        determined by the Secretary, shall be deducted 
                        from the value of the certificate for the 
                        period beginning after the reasonable number of 
                        days and ending on the date of the presentation 
                        of the certificate to the Commodity Credit 
                        Corporation.
                            ``(vi) Displacement.--The Secretary shall 
                        take such measures as may be necessary to 
                        prevent the marketing or exchange of 
                        agricultural commodities and products for 
                        certificates under this subsection from 
                        adversely affecting the income of producers of 
                        the commodities or products.
                            ``(vii) Transfers.--Under regulations 
                        prescribed by the Secretary, certificates 
                        issued to cotton handlers under this 
                        subparagraph may be transferred to other 
                        handlers and persons approved by the Secretary.
                    ``(C) Prevailing world market price.--
                            ``(i) In general.--The Secretary shall 
                        prescribe by regulation--
                                    ``(I) a formula to determine the 
                                prevailing world market price for 
                                upland cotton (adjusted to United 
                                States quality and location); and
                                    ``(II) a mechanism by which the 
                                Secretary shall announce periodically 
                                the prevailing world market price for 
                                upland cotton (adjusted to United 
                                States quality and location).
                            ``(ii) Use.--The prevailing world market 
                        price for upland cotton (adjusted to United 
                        States quality and location) established under 
                        this subparagraph shall be
                         used under subparagraphs (A), (B), and (E).
                    ``(D) Adjustment of prevailing world market 
                price.--
                            ``(i) In general.--During the period 
                        beginning August 1, 1996, and ending July 31, 
                        2003, the prevailing world market price for 
                        upland cotton (adjusted to United States 
                        quality and location) established under 
                        subparagraph (C) shall be further adjusted if--
                                    ``(I) the adjusted prevailing world 
                                market price is less than 115 percent 
                                of the current crop year loan level for 
                                the base quality of upland cotton, as 
                                determined by the Secretary; and
                                    ``(II) 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 is greater than 
                                the Friday through Thursday average 
                                price of the 5 lowest-priced growths of 
                                upland cotton, as quoted for Middling 
                                1\3/32\-inch cotton, delivered C.I.F. 
                                Northern Europe (referred to in this 
                                subsection as the `Northern Europe 
                                price').
                            ``(ii) Further adjustment.--Except as 
                        provided in clause (iii), the adjusted 
                        prevailing world market price 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).
                            ``(iii) Limitation on further adjustment.--
                        The adjustment under clause (ii) 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) Cotton user marketing certificates.--
                            ``(i) Issuance.--Subject to clause (iv), 
                        during the period beginning August 1, 1996, and 
                        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 for the lowest-priced 
                                United States growth, as quoted for 
                                Middling 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), 
                                established under subparagraph (C), 
                                does not exceed 130 percent of the 
                                current crop year loan level for the 
                                base quality of upland cotton, as 
                                determined by the Secretary.
                            ``(ii) Value.--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.
                            ``(iii) Administration.--Clauses (iv) 
                        through (vii) of subparagraph (B) shall apply 
                        to marketing certificates issued under this 
                        subparagraph. Any such certificates may be 
                        transferred to other persons in accordance with 
                        regulations issued by the Secretary.
                            ``(iv) Exception.--The Secretary shall not 
                        issue marketing certificates or cash payments 
                        under clause (i) if, for the immediately 
                        preceding consecutive 10-week period, 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, adjusted for the value 
                        of any certificate issued under this 
                        subparagraph, exceeds the Northern Europe price 
                        by more than 1.25 cents per pound.
                    ``(F) Special import quota.--
                            ``(i) In general.--The President shall 
                        carry out an import quota program that shall 
                        provide that, during the period beginning 
                        August 1996 and ending July 31, 2003, whenever 
                        the Secretary determines and announces that for 
                        any consecutive 10-week period, 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, adjusted for the value of any 
                        certificates issued under subparagraph (E), 
                        exceeds the Northern Europe price by more than 
                        1.25 cents per pound, there shall immediately 
                        be in effect a special import quota.
                            ``(ii) Quantity.--The quota shall be equal 
                        to the consumption of upland cotton for 1 week 
                        by domestic mills at the seasonally adjusted 
                        average rate of the most recent 3 months for 
                        which data are available.
                            ``(iii) Application.--The quota shall apply 
                        to upland cotton purchased not later than 90 
                        days after the date of the announcement of the 
                        Secretary under clause (i) and entered into the 
                        United States not later than 180 days after the 
                        date.
                            ``(iv) Overlap.--A special quota period may 
                        be established that overlaps any existing quota 
                        period if required by clause (i), except that a 
                        special quota period may not be established 
                        under this paragraph if a quota period has been 
                        established under subsection (n).
                            ``(v) 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 of the 
                                United States (19 U.S.C. 1202 note).
                            ``(vi) Definition.--In this subparagraph, 
                        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.
            ``(6) Recourse loans for seed cotton.--To encourage and 
        assist producers in the orderly ginning and marketing of 
        production of upland cotton by the producers, the Secretary 
        shall make recourse loans available to the producers on seed 
        cotton in accordance with authority vested in the Secretary 
        under the Commodity Credit Corporation Charter Act (15 U.S.C. 
        714 et seq.).
    ``(b) Loan Deficiency Payments.--
            ``(1) In general.--For each of the 1996 through 2002 crops 
        of upland cotton, the Secretary shall make payments (referred 
        to in this section as `loan deficiency payments') available to 
        producers who, although eligible to obtain a loan under 
        subsection (a), agree to forgo obtaining the loan in return for 
        payments under this subsection.
            ``(2) Computation.--A payment under this subsection shall 
        be computed by multiplying--
                    ``(A) the loan payment rate; and
                    ``(B) the quantity of upland cotton 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 level determined for the crop under 
                subsection (a); exceeds
                    ``(B) the level at which a loan may be repaid under 
                subsection (a).
            ``(4) Marketing certificates.--The Secretary may make up to 
        \1/2\ the amount of a payment under this subsection available 
        in the form of marketing certificates, subject to the terms and 
        conditions provided in subsection (a)(5)(B).
    ``(c) Payments.--
            ``(1) Deficiency payments.--
                    ``(A) In general.--The Secretary shall make 
                available to producers payments (referred to in this 
                section as `deficiency payments') for each of the 1996 
                through 2002 crops of upland cotton in an amount 
                computed by multiplying--
                            ``(i) the payment rate;
                            ``(ii) the payment acres for the crop; and
                            ``(iii) the farm program payment yield 
                        established for the crop for the farm.
                    ``(B) Payment rate.--
                            ``(i) In general.--The payment rate for 
                        upland cotton shall be the amount by which the 
                        established price for the crop of upland cotton 
                        exceeds the greater of--
                                    ``(I) the national average market 
                                price received by producers during the 
                                calendar year that includes the first 5 
                                months of the marketing year for the 
                                crop, as determined by the Secretary; 
                                and
                                    ``(II) the loan level determined 
                                for the crop.
                            ``(ii) Minimum established price.--The 
                        established price for upland cotton shall be 
                        not less than $0.729 per pound for each of the 
                        1996 through 2002 crops.
                    ``(C) Payment acres.--Payment acres for a crop 
                shall be the lesser of--
                            ``(i) the number of acres planted to the 
                        crop for harvest within the permitted acreage 
                        (as defined in subsection (e)(2)(D)(ii)); or
                            ``(ii) 75 percent of the crop acreage base 
                        for the crop for the farm less the quantity of 
                        reduced acreage (as defined in subsection 
                        (e)(2)(D)(ii)).
                    ``(D) 50/85 program.--
                            ``(i) In general.--If an acreage limitation 
                        program under subsection (e)(2) is in effect 
                        for a crop of upland cotton and the producers 
                        on a farm devote a portion of the maximum 
                        payment acres of the farm for upland cotton as 
                        calculated under subparagraph (C)(ii) equal to 
                        more than
                         15 percent (except as provided in clause (v)) 
of the upland cotton acreage of the farm for the crop to conservation 
uses (except as provided in subparagraph (E))--
                                    ``(I) the portion of the maximum 
                                payment acres in excess of 15 percent 
                                (except as provided in clause (v)) of 
                                the acreage devoted to conservation 
                                uses (except as provided in 
                                subparagraph (E)) shall be considered 
                                to be planted to upland cotton for the 
                                purpose of determining the acreage on 
                                the farm required to be devoted to 
                                conservation uses in accordance with 
                                subsection (e)(2)(D); and
                                    ``(II) the producers shall be 
                                eligible for payments under this 
                                paragraph with respect to the acreage, 
                                subject to the compliance of the 
                                producers with clause (ii).
                            ``(ii) Minimum planting requirement.--To be 
                        eligible for payments under clause (i), except 
                        as provided in clauses (iv) and (v), the 
                        producers on a farm must actually plant upland 
                        cotton for harvest on at least 50 percent of 
                        the maximum payment acres for cotton for the 
                        farm.
                            ``(iii) Deficiency payments.--
                        Notwithstanding any other provision of this 
                        section, any producers on a farm who devote a 
                        portion of the maximum payment acres of the 
                        farm for upland cotton to conservation uses (or 
                        other uses as provided in subparagraph (E)) 
                        under this subparagraph shall receive 
                        deficiency payments on the acreage that is 
                        considered to be planted to upland cotton and 
                        eligible for payments under this subparagraph 
                        for the crop at a per-pound rate established by 
                        the Secretary, except that the rate may not be 
                        established at less than the projected 
                        deficiency payment rate for the crop, as 
                        determined by the Secretary. The projected 
                        payment rate for the crop shall be announced by 
                        the Secretary prior to the period during which 
                        upland cotton producers may agree to 
                        participate in the program for the crop.
                            ``(iv) Quarantines.--If a State or local 
                        agency has imposed in an area of a State or 
                        county a quarantine on the planting of upland 
                        cotton for harvest on farms in the area, the 
                        State committee established under section 8(b) 
                        of the Soil Conservation and Domestic Allotment 
                        Act (16 U.S.C. 590h(b)) may recommend to the 
                        Secretary that payments be made under this 
                        paragraph, without regard to the requirement 
                        imposed under clause (ii), to producers in the 
                        area who were required to forgo the planting of 
                        upland cotton for harvest on acreage to 
                        alleviate or eliminate the condition requiring 
                        the quarantine. If the Secretary determines 
                        that the condition exists, the Secretary may 
                        make payments under this paragraph to the 
                        producers. To be eligible for payments under 
                        this clause, the producers must devote the 
                        acreage to conservation uses (except as 
                        provided in subparagraph (E)).
                            ``(v) Prevented planting and reduced 
                        yields.--In the case of each of the 1996 
                        through 2002 crops of upland cotton, producers 
                        on a farm shall be eligible to receive 
                        deficiency payments as provided in clause (iii) 
                        without regard to clause (ii) if an acreage 
                        limitation program under subsection (e) is in 
                        effect for the crop and the producers--
                                    ``(I)(aa) have been determined by 
                                the Secretary (in accordance with 
                                section 503(c)) to be prevented from 
                                planting the crop, or have incurred a 
                                reduced yield for the crop because of a 
                                natural disaster; and
                                    ``(bb) elect to devote a portion of 
                                the maximum payment acres for upland 
                                cotton (as calculated under 
                                subparagraph (C)(ii)) equal to more 
                                than 8 percent of the upland cotton 
                                acreage, to conservation uses; or
                                    ``(II) elect to devote a portion of 
                                the maximum payment acres for upland 
                                cotton (as calculated under 
                                subparagraph (C)(ii)) equal to more 
                                than 8 percent of the upland cotton 
                                acreage, to alternative crops as 
                                provided in subparagraph (E).
                            ``(vi) Crop acreage and payment yield.--The 
                        upland cotton crop acreage base and upland 
                        cotton farm program payment yield of the farm 
                        shall not be reduced because of the fact that a 
                        portion of the permitted acreage for upland 
                        cotton for the farm was devoted to conserving 
                        uses (except as provided in subparagraph (E)) 
                        under this subparagraph.
                            ``(vii) Limitation.--Other than as provided 
                        in clauses (i) through (vi), payments may not 
                        be made under this paragraph for any crop on a 
                        greater acreage than the acreage actually 
                        planted to upland cotton.
                            ``(viii) Conservation use acreage under 
                        other programs.--Any acreage considered to be 
                        planted to upland cotton in accordance with 
                        clauses (i) and (vi) may not also be designated 
                        as conservation use acreage for the purpose of 
                        fulfilling any provisions under any acreage 
                        limitation or land diversion program requiring 
                        that the producers devote a specified quantity 
                        of acreage to conservation uses.
                            ``(ix) Black-eyed peas for donation.--The 
                        Secretary may permit, under such terms and 
                        conditions as will ensure
                         optimum producer participation, all or any 
part of the acreage required to be devoted to conservation uses as a 
condition for qualifying for payments under this subparagraph to be 
devoted to the production of black-eyed peas if--
                                    ``(I) the producers on a farm agree 
                                to donate the harvested peas from the 
                                acreage to a food bank, food pantry, or 
                                soup kitchen (as defined in paragraphs 
                                (3), (4), and (7) of section 110(b) of 
                                the Hunger Prevention Act of 1988 
                                (Public Law 100-435; 7 U.S.C. 612c 
                                note)) that is approved by the 
                                Secretary; and
                                    ``(II) the Secretary finds that the 
                                action will not result in the 
                                disruption of normal channels of trade.
                    ``(E) Alternative crops.--
                            ``(i) Industrial and other crops.--The 
                        Secretary may permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any part of acreage otherwise required to be 
                        devoted to conservation uses as a condition of 
                        qualifying for payments under subparagraph (D) 
                        to be devoted to sweet sorghum, guar, castor 
                        beans, plantago ovato, triticale, rye, millet, 
                        mung beans, commodities for which no 
                        substantial domestic production or market 
                        exists but that could yield industrial raw 
                        material being imported, or likely to be 
                        imported, into the United States, or 
                        commodities grown for experimental purposes 
                        (including kenaf and milkweed), subject to the 
                        following sentence. The Secretary may permit 
                        the acreage to be devoted to the production 
                        only if the Secretary determines that the 
                        production is--
                                    ``(I) not likely to increase the 
                                cost of the price support program; and
                                    ``(II) needed to provide an 
                                adequate supply of the commodity, or, 
                                in the case of a commodity for which no 
                                substantial domestic production or 
                                market exists but that could yield 
                                industrial raw materials, the 
                                production is needed to encourage 
                                domestic manufacture of the raw 
                                material and could lead to increased 
                                industrial use of the raw material to 
                                the long-term benefit of United States 
                                industry.
                            ``(ii) Sesame and crambe.--The Secretary 
                        shall permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any part of acreage otherwise required to be 
                        devoted to conservation uses as a condition of 
                        qualifying for payments under subparagraph (D) 
                        to be devoted to sesame or crambe. In carrying 
                        out this clause, if the Secretary determines 
                        that sesame or crambe are considered oilseeds 
                        under section 205, the Secretary shall provide 
                        that, to receive payments under subparagraph 
                        (D), the producers shall agree to forgo 
                        eligibility to receive a loan under section 205 
                        for the crop of sesame or crambe produced on 
                        the farm.
            ``(2) Crop insurance requirement.--As a condition of 
        eligibility for upland cotton loans, purchases, and payments, 
        the producers on a farm shall obtain catastrophic risk 
        protection insurance coverage in accordance with section 427.
    ``(d) Payment Yields.--The farm program payment yields for farms 
for each crop of upland cotton under this section shall be determined 
under title V.
    ``(e) Acreage Reduction Programs.--
            ``(1) In general.--
                    ``(A) Establishment.--Notwithstanding any other 
                provision of this Act, if the Secretary determines that 
                the total supply of upland cotton, in the absence of an 
                acreage limitation program, will be excessive taking 
                into account the need for an adequate carry-over to 
                maintain reasonable and stable supplies and prices and 
                to meet a national emergency, the Secretary may provide 
                for any crop of upland cotton an acreage limitation 
                program as described in paragraph (2).
                    ``(B) Agricultural resources conservation 
                program.--In making a determination under subparagraph 
                (A), the Secretary shall take into consideration the 
                number of acres placed in the agricultural resources 
                conservation program established under subtitle D of 
                title XII of the Food Security Act of 1985 (16 U.S.C. 
                3830 et seq.).
                    ``(C) Announcements.--
                            ``(i) Preliminary announcement.--If the 
                        Secretary elects to implement an acreage 
                        limitation program for any crop year, the 
                        Secretary shall make a preliminary announcement 
                        of any such program not later than November 1 
                        of the calendar year preceding the year in 
                        which the crop is harvested, except that in the 
                        case of the 1996 crop, the Secretary shall 
                        announce the program as soon as practicable 
                        after the date of enactment of the Agricultural 
                        Competitiveness Act of 1995. The announcement 
                        shall include, among other information 
                        determined necessary by the Secretary, an 
                        announcement of the uniform percentage 
                        reduction in the upland cotton crop acreage 
                        base described in paragraph (2)(A).
                            ``(ii) Final announcement.--Not later than 
                        January 1 of the calendar year in which the 
                        crop is harvested, the Secretary shall make a 
                        final announcement of the program. The 
                        announcement shall include, among other 
                        information determined necessary by the 
                        Secretary, an announcement of the uniform 
                        percentage reduction in the upland cotton crop 
                        described in paragraph (2)(A).
                            ``(iii) Optional programs in early planting 
                        areas.--The Secretary shall allow producers in 
                        early planting areas to elect to participate in 
                        the program on the terms of the acreage 
                        limitation program--
                                    ``(I) first announced for the crop 
                                under clause (i); or
                                    ``(II) as subsequently revised 
                                under clause (ii);
                        if the Secretary determines that the producers 
                        may be unfairly disadvantaged by the revision.
                    ``(D) Desired carry-over.--The Secretary shall 
                carry out an acreage limitation program described in 
                paragraph (2) for a crop of upland cotton in a manner 
                that will result in a ratio of carry-over to total 
                disappearance of 29\1/2\ percent for the 1996 crop and 
                29 percent for each of the 1997 through 2002 crops, 
                based on the most recent projection of the Secretary of 
                carry-over and total disappearance at the time of 
                announcement of the acreage limitation program. In this 
                subparagraph, the term `total disappearance' means all 
                upland cotton utilization, including total domestic, 
                total export, and total residual disappearance.
            ``(2) Acreage limitation program.--
                    ``(A) Uniform percentage reduction.--Except as 
                provided in paragraph (3), if an upland cotton acreage 
                limitation program is announced under paragraph (1), 
                the limitation shall be achieved by applying a uniform 
                percentage reduction (from 0 to 25 percent) to the 
                upland cotton crop acreage base for the crop for each 
                upland cotton-producing farm.
                    ``(B) Compliance.--Except as provided in section 
                504, producers who knowingly produce upland cotton in 
                excess of the permitted acreage for upland cotton for 
                the farm, as established in accordance with 
                subparagraph (A), shall be ineligible for upland cotton 
                loans and payments with respect to the farm.
                    ``(C) Crop acreage bases.--Upland cotton crop 
                acreage bases for each crop of upland cotton shall be 
                determined under title V.
                    ``(D) Acreage devoted to conservation uses.--
                            ``(i) In general.--A number of acres on the 
                        farm shall be devoted to conservation uses, in 
                        accordance with regulations issued by the 
                        Secretary.
                            ``(ii) Number.--The number shall be 
                        determined by multiplying the upland cotton 
                        crop acreage base by the percentage reduction 
                        required by the Secretary. The number of acres 
                        so determined is referred to in this section as 
                        `reduced acreage'. The remaining acreage is 
                        referred to in this section as `permitted 
                        acreage'.
                            ``(iii) Adjustment.--Permitted acreage may 
                        be adjusted by the Secretary as provided in 
                        paragraph (3) and in section 504.
                    ``(E) Individual farm program acreage.--Except as 
                otherwise provided in subsection (c), the individual 
                farm program acreage shall be the acreage planted on 
                the farm to upland cotton for harvest within the 
                permitted acreage for upland cotton for the farm as 
                established under this paragraph.
                    ``(F) Planting designated crops on reduced 
                acreage.--
                            ``(i) Definition of designated crop.--In 
                        this subparagraph, the term `designated crop' 
                        means a crop described in section 504(b)(1), 
                        excluding any program crop as defined in 
                        section 502(3).
                            ``(ii) Planting designated crops.--Subject 
                        to clause (iii), the Secretary may permit 
                        producers on a farm to plant a designated crop 
                        on not more than \1/2\ of the reduced acreage 
                        on the farm.
                            ``(iii) Limitations.--If the producers on a 
                        farm elect to plant a designated crop on 
                        reduced acreage under this subparagraph--
                                    ``(I) the amount of the deficiency 
                                payment that the producers are 
                                otherwise eligible to receive under 
                                subsection (c) shall be reduced, for 
                                each acre (or portion of an acre) that 
                                is planted to the designated crop, by 
                                an amount equal to the deficiency 
                                payment that would be made with respect 
                                to a number of acres of the crop that 
                                the Secretary considers appropriate, 
                                except that if the producers on the 
                                farm are participating in a program 
                                established for more than 1 program 
                                crop, the amount of the reduction shall 
                                be determined by prorating the 
                                reduction based on the acreage planted 
                                or considered planted on the farm to 
                                all of the program crops; and
                                    ``(II) the Secretary shall ensure 
                                that reductions in deficiency payments 
                                under subclause (I) are sufficient to 
                                ensure that this subparagraph will 
                                result in no additional cost to the 
                                Commodity Credit Corporation.
                    ``(G) Black-eyed peas for donation.--The Secretary 
                may permit, under such terms and conditions as will 
                ensure optimum producer participation, producers on a 
                farm to plant black-eyed peas on not more than \1/2\ of 
                the reduced acreage on the farm if--
                            ``(i) the producers agree to donate the 
                        harvested peas from the acreage to a food bank, 
                        food pantry, or soup kitchen (as defined in 
                        paragraphs (3), (4), and (7) of section 110(b) 
                        of the Hunger Prevention Act of 1988 (Public 
                        Law 100-435; 7 U.S.C. 612c note)) that is 
                        approved by the Secretary; and
                            ``(ii) the Secretary finds that the action 
                        will not result in the disruption of normal 
                        channels of trade.
            ``(3) Targeted option payments.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, if the Secretary implements 
                an acreage limitation program with respect to any of 
                the 1996 through 2002 crops of upland cotton, the 
                Secretary may make available to producers on a farm who 
                do not receive payments under subsection (c)(1)(D) for 
                the crop on the farm, adjustments in the level of 
                deficiency payments that would otherwise be made 
                available to the producers if the producers exercise 
                the payment options provided in this paragraph.
                    ``(B) Payment options.--If the Secretary elects to 
                carry out this paragraph, the Secretary shall make the 
                payment options specified in subparagraphs (C) and (D) 
                available to producers who agree to make adjustments in 
                the quantity of acreage diverted from the production of 
                upland cotton under an acreage limitation program in 
                accordance with this paragraph.
                    ``(C) Increased acreage limitation option.--
                            ``(i) Increase in established price.--If 
                        the Secretary elects to carry out this 
                        paragraph, the producers on a farm shall be 
                        eligible to receive an increase in the 
                        established price for upland cotton in 
                        accordance with clause (ii) if the producers 
                        agree to an increase in the acreage limitation 
                        percentage to be applied to the upland cotton 
                        acreage base of the producers above the acreage 
                        limitation percentage announced by the 
                        Secretary.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who participate 
                        in the program under this paragraph, the 
                        Secretary shall increase the established price 
                        for upland cotton by an amount determined by 
                        the Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point increase in the acreage limitation 
                        percentage applied to the upland cotton acreage 
                        base of the producers.
                            ``(iii) Limitation.--The acreage limitation 
                        percentage to be applied to the upland cotton 
                        acreage base of the producers shall be 
                        increased by not more than 10 percentage points 
                        above the acreage limitation percentage 
                        announced by the Secretary for the crop or 
                        above 25 percent total for the crop.
                            ``(iv) Adjustment for underplantings.--In 
                        determining the increased acreage limitation 
                        percentage that is applied to the upland cotton 
                        base of the producers on a farm under this 
                        paragraph, the Secretary shall exclude an 
                        amount of acreage equal to the average 
                        difference between the permitted acreage for 
                        upland cotton for the farm of the producers and 
                        the acreage actually planted (including acreage 
                        devoted to conserving uses under subsection 
                        (c)(1)(D)) to upland cotton for harvest during 
                        the previous 2 years.
                    ``(D) Decreased acreage limitation option.--
                            ``(i) Decrease in acreage limitation 
                        requirement.--If the Secretary elects to carry 
                        out this paragraph, the producers on a farm 
                        shall be eligible to decrease the acreage 
                        limitation percentage applicable to the upland 
                        cotton acreage base of the producers (as 
                        announced by the Secretary) if the producers 
                        agree to a decrease in the established price 
                        for upland cotton in accordance with clause 
                        (ii) for the purpose of calculating deficiency 
                        payments to be made available to the producers.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who choose the 
                        option established under this subparagraph, the 
                        Secretary shall decrease the established price 
                        for upland cotton by an amount to be determined 
                        by the Secretary of not less than 0.5 percent, 
                        nor more than 1 percent, for each 1 percentage 
                        point decrease in the acreage limitation 
                        percentage applied to the upland cotton acreage 
                        base of the producers.
                            ``(iii) Limitation.--The producers on a 
                        farm may not choose to decrease the acreage 
                        limitation percentage applicable to the upland 
                        cotton acreage base of the producers under this 
                        paragraph by more than \1/2\ of the announced 
                        acreage limitation percentage.
                    ``(E) Participation and production effects.--
                Notwithstanding any other provision of this paragraph, 
                the Secretary shall, to the extent practicable, ensure 
                that the program provided for in this paragraph does 
                not have a significant effect on participation in the 
                program established by this section or total production 
                and shall be offered in such a manner that the 
                Secretary determines will result in no additional 
                budget outlays. The Secretary shall provide an analysis 
                of the determination of the Secretary to the Committee 
                on Agriculture of the House of Representatives and the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate.
            ``(4) Administration.--
                    ``(A) Protection from weeds and erosion.--The 
                regulations issued by the Secretary under paragraph (2) 
                with respect to acreage required to be devoted to 
                conservation uses shall ensure protection of the 
                acreage from weeds and wind and water erosion.
                    ``(B) Conserving crops.--The Secretary may permit, 
                subject to such terms and conditions as the Secretary 
                may prescribe, all or any part of the acreage to be 
                devoted to sweet sorghum, guar, sesame, castor beans, 
                crambe, plantago ovato, triticale, rye, mung beans, 
                milkweed, or other commodity, if the Secretary 
                determines that the production is needed to provide an 
                adequate supply of the commodities, is not likely to 
                increase the cost of the price support program, and 
                will not affect farm income adversely.
                    ``(C) Haying and grazing.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), haying and grazing of reduced 
                        acreage, acreage devoted to a conservation use 
                        under subsection (c)(1)(D), and acreage 
                        diverted from production under a land diversion 
                        program established under this subsection shall 
                        be permitted, except during any consecutive 5-
                        month period that is established by the State 
                        committee established under section 8(b) of the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590h(b)) for a State. The 5-month 
                        period shall be established during the period 
                        beginning April 1, and ending October 31, of a 
                        year.
                            ``(ii) Natural disasters.--In the case of a 
                        natural disaster, the Secretary may permit 
                        unlimited haying and grazing on the acreage. 
                        The Secretary may not exclude irrigated or 
                        irrigable acreage not planted to alfalfa when 
                        exercising the authority under this clause.
                    ``(D) Water storage uses.--
                            ``(i) In general.--The regulations issued 
                        by the Secretary under paragraph (2) with 
                        respect to acreage required to be devoted to 
                        conservation uses shall provide that land that 
                        has been converted to water storage uses shall 
                        be considered to be devoted to conservation 
                        uses if the land was devoted to wheat, feed 
                        grains, cotton, rice, or oilseeds in at least 3 
                        of the immediately preceding 5 crop years. The 
                        land shall be
                         considered to be devoted to conservation uses 
for the period that the land remains in water storage uses, but not to 
exceed 5 crop years subsequent to the conversion of the land to water 
storage uses.
                            ``(ii) Limitations.--Land converted to 
                        water storage uses for the purposes of this 
                        subparagraph may not be devoted to any 
                        commercial use, including commercial fish 
                        production. The water stored on the land may 
                        not be ground water. The farm on which the land 
                        is located must have been irrigated with ground 
                        water during at least 1 of the preceding 5 crop 
                        years.
            ``(5) Land diversion program.--
                    ``(A) Payments.--
                            ``(i) In general.--The Secretary may make 
                        land diversion payments to producers of upland 
                        cotton, whether or not an acreage limitation 
                        program for upland cotton is in effect, if the 
                        Secretary determines that the land diversion 
                        payments are necessary to assist in adjusting 
                        the total national acreage of upland cotton to 
                        desirable goals. The land diversion payments 
                        shall be made to producers who, to the extent 
                        prescribed by the Secretary, devote to approved 
                        conservation uses an acreage of cropland on the 
                        farm in accordance with land diversion 
                        contracts entered into by the Secretary with 
                        the producers.
                            ``(ii) Excess carry-over.--If, at the time 
                        of final announcement of the acreage limitation 
                        program established under this subsection, the 
                        Secretary projects that the ratio of carry-over 
                        to total disappearance of upland cotton for the 
                        crop year is equal to or greater than 40 
                        percent, the Secretary shall offer a paid land 
                        diversion program to producers of upland 
                        cotton. Payments to producers under the program 
                        shall be determined by multiplying--
                                    ``(I) the payment rate, of not less 
                                than 35 cents per pound of cotton, 
                                established by the Secretary;
                                    ``(II) the program payment yield 
                                established for the crop for the farm; 
                                and
                                    ``(III) the number of permitted 
                                acreage for upland cotton for the farm 
                                diverted on the farm.
                    ``(B) Bids for contracts.--The amounts payable to 
                producers under land diversion contracts may be 
                determined through the submission of bids for the 
                contracts by producers in such manner as the Secretary 
                may prescribe or through such other means as the 
                Secretary determines appropriate. In determining the 
                acceptability of contract offers, the Secretary shall 
                take into consideration the extent of the diversion to 
                be undertaken by the producers and the productivity of 
                the acreage diverted.
                    ``(C) Limitations on diverted acreage.--
                            ``(i) Maximum acreage per farm, county, or 
                        community.--The Secretary shall limit the total 
                        acreage to be diverted under this paragraph--
                                    ``(I) to not more than 15 percent 
                                of the upland cotton crop acreage base 
                                for a farm; and
                                    ``(II) under agreements in any 
                                county or local community so as not to 
                                affect adversely the economy of the 
                                county or local community.
                            ``(ii) Lower participation levels.--The 
                        Secretary may allow producers to participate in 
                        a land diversion program under this paragraph 
                        at a level lower than the maximum level 
                        announced by the Secretary, at the option of 
                        the producer, if the Secretary determines that 
                        the lower level will increase participation in 
                        the program.
            ``(6) Conservation practices.--
                    ``(A) Wildlife food plots or habitat.--The reduced 
                acreage and additional diverted acreage may be devoted 
                to wildlife food plots or wildlife habitat in 
                conformity with standards established by the Secretary 
                in consultation with wildlife agencies. The Secretary 
                may pay an appropriate share of the cost of practices 
                designed to carry out this subparagraph.
                    ``(B) Public access.--The Secretary may provide for 
                an additional payment on the acreage in an amount 
                determined by the Secretary
                 to be appropriate in relation to the benefit to the 
general public if the producers on a farm agree to permit, without 
other compensation, access to all or such portion of the farm, as the 
Secretary may prescribe, by the general public, for hunting, trapping, 
fishing, and hiking, subject to applicable Federal and State 
regulations.
            ``(7) Participation agreements.--
                    ``(A) In general.--Producers on a farm desiring to 
                participate in the program conducted under this 
                subsection shall execute an agreement with the 
                Secretary providing for the participation not later 
                than such date as the Secretary may prescribe.
                    ``(B) Modification or termination.--The Secretary 
                may, by mutual agreement with producers on a farm, 
                modify or terminate any such agreement if the Secretary 
                determines the action necessary because of an emergency 
                created by drought or other disaster or to prevent or 
                alleviate a shortage in the supply of agricultural 
                commodities. The Secretary may modify the agreement 
                under this subparagraph for the purpose of alleviating 
                a shortage in the supply of agricultural commodities 
                only if there has been a significant change in the 
                estimated stocks of the commodity since the Secretary 
                announced the final terms and conditions of the program 
                for the crop of upland cotton.
    ``(f) Inventory Reduction Payments.--
            ``(1) In general.--For each of the 1996 through 2002 crops 
        of upland cotton, the Secretary may make payments available to 
        producers on a farm who meet the requirements of this 
        subsection.
            ``(2) Form.--The payments may be made in the form of 
        marketing certificates.
            ``(3) Payments.--
                    ``(A) In general.--Payments under this subsection 
                shall be determined in the same manner as provided in 
                subsection (b).
                    ``(B) Quantity of cotton made available.--The 
                quantity of upland cotton to be made available to the 
                producers on a farm under this subsection shall be 
                equal in value to the payments so determined under this 
                subsection.
            ``(4) Eligibility.--The producers on a farm shall be 
        eligible to receive a payment under this subsection for a crop 
        if the producers--
                    ``(A) agree to forgo obtaining a loan under 
                subsection (a);
                    ``(B) agree to forgo receiving payments under 
                subsection (c);
                    ``(C) do not plant upland cotton for harvest in 
                excess of the crop acreage base reduced by \1/2\ of any 
                acreage required to be diverted from production under 
                subsection (e); and
                    ``(D) otherwise comply with this section.
    ``(g) Equitable Relief.--
            ``(1) Loans and payments.--If the failure of a producer to 
        comply fully with the terms and conditions of the program 
        conducted under this section precludes the making of loans and 
        payments, the Secretary may, notwithstanding the failure, make 
        the loans and payments in such amounts as the Secretary 
        determines are equitable in relation to the seriousness of the 
        failure. The Secretary may consider whether the producer made a 
        good faith effort to comply fully with the terms and conditions 
        of the program in determining whether equitable relief is 
        warranted under this paragraph.
            ``(2) Deadlines and program requirements.--The Secretary 
        may authorize the county and State committees established under 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other 
        program requirements in cases in which lateness or failure to 
        meet the other requirements does not affect adversely the 
        operation of the program.
    ``(h) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this section.
    ``(i) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(j) Assignment of Payments.--Section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) shall apply 
to payments made under this section.
    ``(k) Sharing of Payments.--The Secretary shall provide for the 
sharing of payments made under this section for any farm among the 
producers on the farm on a fair and equitable basis.
    ``(l) Tenants and Sharecroppers.--In carrying out this section, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    ``(m) Cross-Compliance.--
            ``(1) In general.--Compliance on a farm with the terms and 
        conditions of any other commodity program, or compliance with 
        crop acreage base requirements for any other commodity, may not 
        be required as a condition of eligibility for loans or payments 
        under this section.
            ``(2) Compliance on other farms.--The Secretary may not 
        require producers on a farm, as a condition of eligibility for 
        loans or payments under this section for the farm, to comply 
        with the terms and conditions of the upland cotton program with 
        respect to any other farm operated by the producers.
    ``(n) Limited Global Import Quota.--
            ``(1) Definitions.--In this subsection:
                    ``(A) 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; plus
                            ``(ii) the larger of--
                                    ``(I) average exports of upland 
                                cotton during the preceding 6 marketing 
                                years; or
                                    ``(II) cumulative exports of upland 
                                cotton plus outstanding export sales 
                                for the marketing year in which the 
                                quota is established.
                    ``(B) 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.
                    ``(C) 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.
            ``(2) Quota.--The President shall carry out an import quota 
        program that shall provide 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 the 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 as set forth in 
                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 of the United States 
                        (19 U.S.C. 1202 note).
            ``(3) Quota entry period.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), 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.
                    ``(B) No overlap.--Notwithstanding paragraphs (1) 
                and (2), a quota period may not be established that 
                overlaps an existing quota period or a special quota 
                period established under subsection (a)(5)(F).
    ``(o) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
upland cotton.''.

SEC. 302. EXTRA LONG STAPLE COTTON PROGRAM.

    Section 103(h)(16) of the Agricultural Act of 1949 (7 U.S.C. 
1444(h)(16)) is amended by striking ``1996'' and inserting ``2003''.

SEC. 303. SUSPENSION OF BASE ACREAGE ALLOTMENTS, MARKETING QUOTAS, AND 
              RELATED PROVISIONS.

    Sections 342, 343, 344, 345, 346, and 377 of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall not be 
applicable to any of the 1996 through 2002 crops of upland cotton.

SEC. 304. MISCELLANEOUS COTTON PROVISIONS.

    Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) 
shall not be applicable to the 1996 through 2002 crops.

SEC. 305. SKIPROW PRACTICES.

    The third sentence of section 374(a) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1374(a)) is amended--
            (1) by striking ``1995'' each place it appears and 
        inserting ``2002''; and
            (2) by striking ``1991'' each place it appears and 
        inserting ``1996''.

SEC. 306. PRELIMINARY ALLOTMENTS FOR 2003 CROP OF UPLAND COTTON.

    Notwithstanding any other provision of law, the permanent State, 
county, and farm base acreage allotments for the 1977 crop of upland 
cotton, adjusted for any underplantings in 1977 and reconstituted as 
provided in section 379 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1379), shall be the preliminary allotments for the 2003 crop.

SEC. 307. COTTONSEED AND COTTONSEED OIL.

    Section 203(b) of the Agricultural Act of 1949 (7 U.S.C. 1446d(b)) 
is amended by striking ``1995'' and inserting ``2002''.

SEC. 308. COTTON CLASSIFICATION SERVICES.

    The first sentence of section 3a of the Act of March 3, 1927 
(commonly known as the ``Cotton Statistics and Estimates Act'') 
(chapter 337; 7 U.S.C. 473a), is amended by striking ``1996'' and 
inserting ``2002''.
                             TITLE IV--RICE

SEC. 401. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1996 
              THROUGH 2002 CROPS OF RICE.

    Section 101B of the Agricultural Act of 1949 (7 U.S.C. 1441-2) is 
amended to read as follows:

``SEC. 101B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 
              1996 THROUGH 2002 CROPS OF RICE.

    ``(a) Loans and Purchases.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the Secretary shall make available to producers on 
        a farm nonrecourse loans and purchases for each of the 1996 
        through 2002 crops of rice produced on the farm at a level that 
        is not less than the greater of--
                    ``(A) 85 percent of the simple average price 
                received by producers, as determined by the Secretary, 
                during the marketing years for the immediately 
                preceding 5 crops of rice, 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
                    ``(B) $6.50 per hundredweight.
            ``(2) Maximum reduction.--The loan level for any crop of 
        rice determined under paragraph (1) may not be reduced by more 
        than 5 percent from the level determined for the preceding 
        crop.
            ``(3) Announcement of loan level and established price.--
        The loan and purchase level and the established price for each 
        of the 1996 through 2002 crops of rice shall be announced not 
        later than January 31 of each calendar year for the crop 
        harvested in the calendar year or, in the case of the 1996 
        crop, as soon as practicable after the date of enactment of the 
        Farm Commodities Act of 1995.
            ``(4) Term.--A loan made under this subsection shall have a 
        term of not more than 9 months beginning after the month in 
        which the application for the loan is made.
            ``(5) Marketing loans.--
                    ``(A) In general.--To ensure that a competitive 
                market position is maintained for rice, the Secretary 
                shall permit the producers on a farm to repay a loan 
                made under paragraph (1) for a crop at a level that is 
                the lesser of--
                            ``(i) the loan level determined for the 
                        crop; or
                            ``(ii) the greater of--
                                    ``(I) 70 percent of the loan level 
                                determined for the crop; or
                                    ``(II) the prevailing world market 
                                price for rice, as determined by the 
                                Secretary.
                    ``(B) Prevailing world market price.--The Secretary 
                shall prescribe by regulation--
                            ``(i) a formula to determine the prevailing 
                        world market price for rice that does not take 
                        into account any price for the sale of rice 
                        produced in the United States; and
                            ``(ii) a mechanism by which the Secretary 
                        shall announce periodically the prevailing 
                        world market price for rice.
                    ``(C) Producer purchase of marketing 
                certificates.--
                            ``(i) In general.--As a condition of 
                        permitting the producers on a farm to repay a 
                        loan as provided in subparagraph (A), the 
                        Secretary may require the producers to purchase 
                        marketing certificates equal in value to an 
                        amount that does not exceed \1/2\ the 
                        difference, as determined by the Secretary, 
                        between the amount of the loan obtained by the 
                        producers and the amount of the loan repayment.
                            ``(ii) Redemption for rice or cash.--The 
                        certificates shall be redeemable for 
                        agricultural commodities owned by the Commodity 
                        Credit Corporation valued at the prevailing 
                        market price, as determined by the Secretary, 
                        or for cash, under such terms and conditions as 
                        the Secretary may prescribe.
                            ``(iii) Redemption, marketing, or 
                        exchange.--The Commodity Credit Corporation, 
                        under regulations prescribed by the Secretary, 
                        shall assist any person receiving marketing 
                        certificates under this subparagraph in the 
                        redemption or marketing or exchange of the 
                        certificates at such times, in such manner, and 
                        at such price levels as the Secretary 
                        determines will best effectuate the purposes of 
                        the program established under this section.
                            ``(iv) Charges.--If any such certificate is 
                        not presented for redemption or marketing 
                        within a reasonable number of days after 
                        issuance, as determined by the Secretary, 
                        reasonable costs of storage and other carrying 
                        charges, as determined by the Secretary, shall 
                        be deducted from the value of the certificate 
                        for the period beginning after the reasonable 
                        number of days and ending on the date of the 
                        presentation of the certificate to the 
                        Commodity Credit Corporation.
                            ``(v) Designation of commodities and 
                        products.--Insofar as practicable, the 
                        Secretary shall permit owners of certificates 
                        to designate the commodities and the products 
                        of commodities, including storage sites of the 
                        commodities and products, that the owners would 
                        prefer to receive in exchange for certificates.
                            ``(vi) Sales price restrictions.--
                        Notwithstanding any other provision of law, 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 subparagraph.
                            ``(vii) Displacement.--The Secretary shall 
                        take such measures as may be necessary to 
                        prevent the marketing or exchange of 
                        agricultural commodities and the products of 
                        the commodities for certificates under this 
                        subparagraph from adversely affecting the 
                        income of producers of the commodities or 
                        products.
                            ``(viii) Transfers.--Under regulations 
                        prescribed by the Secretary, certificates 
                        issued under this subparagraph may be 
                        transferred to other persons approved by the 
                        Secretary.
                    ``(D) Certificates to maintain competitiveness.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, whenever, during the 
                        period beginning August 1, 1996, and ending 
                        July 31, 2003, the prevailing world market 
                        price for a class of rice (adjusted to United 
                        States quality and location), as determined by 
                        the Secretary, is below the current loan 
                        repayment rate for that class of rice, to make 
                        United States rice competitive in world markets 
                        and to maintain and expand exports of rice 
                        produced in the United States, the Commodity 
                        Credit Corporation shall make payments, through 
                        the issuance of marketing certificates, to 
                        persons who have entered into an agreement with 
                        the Commodity Credit Corporation to participate 
                        in the program established under this 
                        subparagraph. The payments shall be made in 
                        such monetary amounts and subject to such terms 
                        and conditions as the Secretary determines will 
                        make rice produced in the United States 
                        available at competitive prices consistent with 
                        the purposes of this subparagraph.
                            ``(ii) Value.--The value of each 
                        certificate issued under this subparagraph 
                        shall be based on the difference between--
                                    ``(I) the loan repayment rate for 
                                the class of rice; and
                                    ``(II) the prevailing world market 
                                price for the class of rice, as 
                                determined by the Secretary.
                            ``(iii) Terms and conditions of 
                        certificates.--Marketing certificates issued 
                        under this subparagraph shall be subject to the 
                        same terms and conditions as certificates 
                        issued under subparagraph (C).
            ``(6) Simple average price.--For purposes of this section, 
        the simple average price received by producers for the 
        immediately preceding marketing year shall be based on the 
        latest information available to the Secretary at the time of 
        the determination.
    ``(b) Loan Deficiency Payments.--
            ``(1) In general.--The Secretary shall, for each of the 
        1996 through 2002 crops of rice, make payments (referred to in 
        this section as `loan deficiency payments') available to 
        producers who, although eligible to obtain a loan or an 
        agreement for purchase under subsection (a), agree to forgo 
        obtaining the loan or agreement in return for payments under 
        this subsection.
            ``(2) Computation.--A payment under this subsection shall 
        be computed by multiplying--
                    ``(A) the loan payment rate; and
                    ``(B) the quantity of rice that the producers are 
                eligible to place under loan (or obtain a purchase 
                agreement) but for which the producers forgo obtaining 
                the loan or agreement 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 level determined for the crop under 
                subsection (a); exceeds
                    ``(B) the level at which a loan may be repaid under 
                subsection (a).
            ``(4) Marketing certificates.--The Secretary may make up to 
        \1/2\ the amount of a payment under this subsection available 
        in the form of marketing certificates, subject to the terms and 
        conditions provided in subsection (a)(5)(C).
    ``(c) Payments.--
            ``(1) Deficiency payments.--
                    ``(A) In general.--The Secretary shall make 
                available to producers payments (referred to in this 
                section as `deficiency payments') for each of the 1996 
                through 2002 crops of rice in an amount computed by 
                multiplying--
                            ``(i) the payment rate;
                            ``(ii) the payment acres for the crop; and
                            ``(iii) the farm program payment yield 
                        established for the crop for the farm.
                    ``(B) Payment rate.--
                            ``(i) In general.--The payment rate for 
                        each of the 1996 through 2002 crops of rice 
                        shall be the amount by which the established 
                        price for the crop of rice exceeds the greater 
                        of--
                                    ``(I) the lesser of--
                                            ``(aa) the national average 
                                        market price received by 
                                        producers during the calendar 
                                        year that contains the first 5 
                                        months of the marketing year 
                                        for the crop, as determined by 
                                        the Secretary; or
                                            ``(bb) the national average 
                                        market price received by 
                                        producers during the first 5 
                                        months of the marketing year 
                                        for the crop, as determined by 
                                        the Secretary, plus an 
                                        appropriate amount that is fair 
                                        and equitable in relation to 
                                        wheat and feed grains (as 
                                        determined by the Secretary); 
                                        or
                                    ``(II) the loan level determined 
                                for the crop.
                            ``(ii) Minimum established price.--The 
                        established price for rice shall not be less 
                        than $10.71 per hundredweight for each of the 
                        1996 through 2002 crops.
                    ``(C) Payment acres.--Payment acres for a crop 
                shall be the lesser of--
                            ``(i) the number of acres planted to the 
                        crop for harvest within the permitted acreage 
                        (as defined in subsection (e)(2)(D)(ii)); or
                            ``(ii) 75 percent of the crop acreage base 
                        for the crop for the farm less the quantity of 
                        reduced acreage (as defined in subsection 
                        (e)(2)(D)(ii)).
                    ``(D) 50/85 program.--
                            ``(i) In general.--If an acreage limitation 
                        program under subsection (e)(2) is in effect 
                        for a crop of rice and the producers on a farm 
                        devote a portion of the maximum payment acres 
                        of the farm for rice as calculated under 
                        subparagraph (C)(ii) equal to more than 15 
                        percent (except as provided in clause (v)(II)) 
                        of the rice acreage of the farm for the crop to 
                        conservation uses (except as provided in 
                        subparagraph (E))--
                                    ``(I) the portion of the maximum 
                                payment acres of the farm in excess of 
                                15 percent (except as provided in 
                                clause (v)(II)) of the acreage devoted 
                                to conservation uses (except as 
                                provided in subparagraph (E)) shall be 
                                considered to be planted to rice for 
                                the purpose of determining the acreage 
                                on the farm required to be devoted to 
                                conservation uses in accordance with 
                                subsection (e)(2)(D); and
                                    ``(II) the producers shall be 
                                eligible for payments under this 
                                paragraph with respect to the acreage, 
                                subject to the compliance of the 
                                producers with clause (ii).
                            ``(ii) Minimum planting requirement.--To be 
                        eligible for payments under clause (i), except 
                        as provided in clauses (iv) and (v), the 
                        producers on a farm shall actually plant rice 
                        for harvest on at least 50 percent of the 
                        maximum payment acres for rice for the farm.
                            ``(iii) Deficiency payments.--
                        Notwithstanding any other provision of this 
                        section, any producers on a farm who devote a 
                        portion of the maximum payment acres of the 
                        farm for rice to conservation uses (or other 
                        uses as provided in subparagraph (E)) under 
                        this subparagraph shall receive deficiency 
                        payments on the acreage that is considered to 
                        be planted to rice and eligible for payments 
                        under this subparagraph for the crop at a per-
                        hundredweight rate established by the 
                        Secretary, except that the rate may not be 
                        established at less than the projected 
                        deficiency payment rate for the crop, as 
                        determined by the Secretary. The projected 
                        deficiency payment rate for the crop shall be 
                        announced by the Secretary prior to the period 
                        during which rice producers may agree to 
                        participate in the program for the crop.
                            ``(iv) Quarantines.--If a State or local 
                        agency has imposed in an area of a State or 
                        county a quarantine on the planting of rice for 
                        harvest on farms in the area, the State 
                        committee established under section 8(b) of the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590h(b)) may recommend to the 
                        Secretary that payments be made under this 
                        paragraph, without regard to the requirement 
                        imposed under clause (ii), to producers in the 
                        area who were required to forgo the planting of 
                        rice for harvest on acreage to alleviate or 
                        eliminate the condition requiring the 
                        quarantine. If the Secretary determines that 
                        the condition exists, the Secretary may make 
                        payments under this paragraph to the producers. 
                        To be eligible for payments under this clause, 
                        the producers must devote the acreage to 
                        conservation uses (except as provided in 
                        subparagraph (E)).
                            ``(v) Prevented planting and reduced 
                        yields.--In the case of each of the 1996 
                        through 2002 crops of rice, producers on a farm 
                        shall be eligible to receive deficiency 
                        payments as provided in clause (iii) without 
                        regard to clause (ii) if an acreage limitation 
                        program under subsection (e) is in effect for 
                        the crop and the producers--
                                    ``(I)(aa) have been determined by 
                                the Secretary (in accordance with 
                                section 503(c)) to be prevented from 
                                planting the crop, or have incurred a 
                                reduced yield for the crop because of a 
                                natural disaster; and
                                    ``(bb) elect to devote a portion of 
                                the maximum payment acres for rice (as 
                                calculated under subparagraph (C)(ii)) 
                                equal to more than 8 percent of the 
                                rice acreage, to conservation uses; or
                                    ``(II) elect to devote a portion of 
                                the maximum payment acres for rice (as 
                                calculated under subparagraph (C)(ii)) 
                                equal to more than 8 percent of the 
                                rice acreage, to alternative crops as 
                                provided in subparagraph (E).
                            ``(vi) Crop acreage and payment yield.--The 
                        rice crop acreage base and rice farm program 
                        payment yield of the farm shall not be reduced 
                        because of the fact that a portion of the 
                        permitted acreage for rice for the farm was 
                        devoted to conserving uses (except as provided 
                        in subparagraph (E)) under this subparagraph.
                            ``(vii) Limitation.--Other than as provided 
                        in clauses (i) through (vi), payments may not 
                        be made under this paragraph for any crop on a 
                        greater acreage than the acreage actually 
                        planted to rice.
                            ``(viii) Conservation use acreage under 
                        other programs.--Any acreage considered to be 
                        planted to rice in accordance with clauses (i) 
                        and (vi) may not also be designated as 
                        conservation use acreage for the purpose of 
                        fulfilling any provision under any acreage 
                        limitation or land diversion program requiring 
                        that the producers devote a specified quantity 
                        of acreage to conservation uses.
                    ``(E) Alternative crops.--
                            ``(i) Industrial and other crops.--The 
                        Secretary may permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any part of acreage otherwise required to be 
                        devoted to conservation uses as a condition of 
                        qualifying for payments under subparagraph (D) 
                        to be devoted to sweet sorghum, guar, castor 
                        beans, plantago ovato, triticale, rye, millet, 
                        mung beans, commodities for which no 
                        substantial domestic production or market 
                        exists but that could yield industrial raw 
                        material being imported, or likely to be 
                        imported, into the United States, or 
                        commodities grown for experimental purposes 
                        (including kenaf and milkweed), subject to the 
                        following sentence. The Secretary may permit 
                        the acreage to be devoted to the production 
                        only if the Secretary determines that the 
                        production is--
                                    ``(I) not likely to increase the 
                                cost of the price support program; and
                                    ``(II) needed to provide an 
                                adequate supply of the commodity, or, 
                                in the case of a commodity for which no 
                                substantial domestic production or 
                                market exists but that could yield 
                                industrial raw materials, the 
                                production is needed to encourage 
                                domestic manufacture of the raw 
                                material and could lead to increased 
                                industrial use of the raw material to 
                                the long-term benefit of United States 
                                industry.
                            ``(ii) Sesame and crambe.--The Secretary 
                        shall permit, subject to such terms and 
                        conditions as the Secretary may prescribe, all 
                        or any part of acreage otherwise required to be 
                        devoted to conservation uses as a condition of 
                        qualifying for payments under subparagraph (D) 
                        to be devoted to sesame or crambe. In carrying 
                        out this clause, if the Secretary determines 
                        that sesame or crambe are considered oilseeds 
                        under section 205, the Secretary shall provide 
                        that, in order to receive payments under 
                        subparagraph (D), the producers shall agree to 
                        forgo eligibility to receive a loan under 
                        section 205 for the crop of sesame or crambe 
                        produced on the farm.
            ``(2) Crop insurance requirement.--As a condition of 
        eligibility for rice loans, purchases, and payments, the 
        producers on a farm shall obtain catastrophic risk protection 
        insurance coverage in accordance with section 427.
    ``(d) Payment Yields.--The farm program payment yields for farms 
for each crop of rice under this section shall be determined under 
title V.
    ``(e) Acreage Reduction Programs.--
            ``(1) In general.--
                    ``(A) Establishment.--Notwithstanding any other 
                provision of this Act, if the Secretary determines that 
                the total supply of rice, in the absence of an acreage 
                limitation program, will be excessive taking into 
                account the need for an adequate carry-over to maintain 
                reasonable and stable supplies and prices and to meet a 
                national emergency, the Secretary may provide for any 
                crop of rice an acreage limitation program as described 
                in paragraph (2).
                    ``(B) Agricultural resources conservation 
                program.--In making a determination under subparagraph 
                (A), the Secretary shall take into consideration the 
                number of acres placed in the agricultural resources 
                conservation program established under subtitle D of 
                title XII of the Food Security Act of 1985 (16 U.S.C. 
                3830 et seq.).
                    ``(C) Announcements.--
                            ``(i) Preliminary announcement.--If the 
                        Secretary elects to implement an acreage 
                        limitation program for any crop year, the 
                        Secretary shall make a preliminary announcement 
                        of any such program not later than December 1 
                        of the calendar year preceding the year in 
                        which the crop is harvested (or, for the 1996 
                        crop, as soon as practicable after the date of 
                        enactment of the Farm Commodities Act of 1995). 
                        The preliminary announcement shall include, 
                        among other information determined necessary by 
                        the Secretary, an announcement of the uniform 
                        percentage reduction in the rice crop acreage 
                        base described in paragraph (2)(A).
                            ``(ii) Final announcement.--Not later than 
                        January 31 of the calendar year in which the 
                        crop is harvested, the Secretary shall make a 
                        final announcement of the program. The 
                        announcement shall include, among other 
                        information determined necessary by the 
                        Secretary, an announcement of the uniform 
                        percentage reduction in the rice crop acreage 
                        base described in paragraph (2)(A).
                    ``(D) Carry-over.--The Secretary shall carry out an 
                acreage limitation program described in paragraph (2) 
                for a crop of rice in a manner that will result in 
                carry-over stocks equal to 16.5 to 20 percent of the 
                simple average of the total disappearance of rice for 
                each of the 3 marketing years preceding the year for 
                which the announcement is made. In this subparagraph, 
                the term `total disappearance' means all rice 
                utilization, including total domestic, total export, 
                and total residual disappearance.
            ``(2) Acreage limitation program.--
                    ``(A) Percentage reductions.--Except as provided in 
                paragraph (3), if a rice acreage limitation program is 
                announced under paragraph (1), the limitation shall be 
                achieved by applying a uniform percentage reduction 
                (from 0 to 35 percent) to the rice crop acreage base 
                for the crop for each rice-producing farm.
                    ``(B) Compliance.--Except as provided in section 
                504, producers on a farm who knowingly produce rice in 
                excess of the permitted acreage for rice for the farm, 
                as established in accordance with subparagraph (A), 
                shall be ineligible for rice loans, purchases, and 
                payments with respect to the farm.
                    ``(C) Crop acreage bases.--Rice crop acreage bases 
                for each crop of rice shall be determined under title 
                V.
                    ``(D) Acreage devoted to conservation uses.--
                            ``(i) In general.--A number of acres on the 
                        farm shall be devoted to conservation uses, in 
                        accordance with regulations issued by the 
                        Secretary.
                            ``(ii) Number.--The number shall be 
                        determined by multiplying the rice crop acreage 
                        base by the percentage reduction required by 
                        the Secretary. The number of acres so 
                        determined is referred to in this section as 
                        `reduced acreage'. The remaining acreage is 
                        referred to in this section as `permitted 
                        acreage'.
                            ``(iii) Adjustment.--Permitted acreage may 
                        be adjusted by the Secretary as provided in 
                        paragraph (3) and in section 504.
                    ``(E) Individual farm program acreage.--Except as 
                otherwise provided in subsection (c), the individual 
                farm program acreage shall be the acreage planted on 
                the farm to rice for harvest within the permitted 
                acreage for rice for the farm as established under this 
                paragraph.
                    ``(F) Planting designated crops on reduced 
                acreage.--
                            ``(i) Definition of designated crop.--In 
                        this subparagraph, the term `designated crop' 
                        means a crop described in section 504(b)(1), 
                        excluding any program crop as defined in 
                        section 502(3).
                            ``(ii) Planting designated crops.--Subject 
                        to clause (iii), the Secretary may permit 
                        producers on a farm to plant a designated crop 
                        on not more than \1/2\ of the reduced acreage 
                        on the farm.
                            ``(iii) Limitations.--If the producers on a 
                        farm elect to plant a designated crop on 
                        reduced acreage under this subparagraph--
                                    ``(I) the amount of the deficiency 
                                payment that the producers are 
                                otherwise eligible to receive under 
                                subsection (c) shall be reduced, for 
                                each acre (or portion of an acre) that 
                                is planted to the designated crop, by 
                                an amount equal to the deficiency 
                                payment that would be made with respect 
                                to a number of acres of the crop that 
                                the Secretary considers appropriate, 
                                except that if the producers on the 
                                farm are participating in a program 
                                established for more than 1 program 
                                crop, the amount of the reduction shall 
                                be determined by prorating the 
                                reduction based on the acreage planted 
                                or considered planted on the farm to 
                                all of the program crops; and
                                    ``(II) the Secretary shall ensure 
                                that reductions in deficiency payments 
                                under subclause (I) are sufficient to 
                                ensure that this subparagraph will 
                                result in no additional cost to the 
                                Commodity Credit Corporation.
            ``(3) Targeted option payments.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, if the Secretary
                 implements an acreage limitation program with respect 
to any of the 1996 through 2002 crops of rice and announces an acreage 
limitation percentage of 20 percent or less, the Secretary may make 
available to producers on a farm who do not receive payments under 
subsection (c)(1)(D) for the crop on the farm, adjustments in the level 
of deficiency payments that would otherwise be made available to the 
producers if the producers exercise the payment options provided in 
this paragraph.
                    ``(B) Payment options.--If the Secretary elects to 
                carry out this paragraph, the Secretary shall make the 
                payment options specified in subparagraphs (C) and (D) 
                available to producers who agree to make adjustments in 
                the quantity of acreage diverted from the production of 
                rice under an acreage limitation program in accordance 
                with this paragraph.
                    ``(C) Increased acreage limitation option.--
                            ``(i) Increase in established price.--If 
                        the Secretary elects to carry out this 
                        paragraph, the producers on a farm shall be 
                        eligible to receive an increase in the 
                        established price for rice in accordance with 
                        clause (ii) if the producers agree to an 
                        increase in the acreage limitation percentage 
                        to be applied to the rice acreage base of the 
                        producers above the acreage limitation 
                        percentage announced by the Secretary.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who participate 
                        in the program under this paragraph, the 
                        Secretary shall increase the established price 
                        for rice by an amount determined by the 
                        Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point increase in the acreage limitation 
                        percentage applied to the rice acreage base of 
                        the producers.
                            ``(iii) Limitation.--The acreage limitation 
                        percentage to be applied to the rice acreage 
                        base of the producers shall be increased by not 
                        more than 5 percentage points above the acreage 
                        limitation percentage announced by the 
                        Secretary.
                            ``(iv) Adjustment for under- plantings.--In 
                        determining the increased acreage limitation 
                        percentage that is applied to the rice acreage 
                        base of the producers under this paragraph, the 
                        Secretary shall exclude an amount of acreage 
                        equal to the average difference between the 
                        permitted acreage for rice for the farm of the 
                        producers and the acreage actually planted 
                        (including acreage devoted to conserving uses 
                        under subsection (c)(1)(D)) to rice for harvest 
                        during the previous 2 years.
                    ``(D) Decreased acreage limitation option.--
                            ``(i) Decrease in acreage limitation 
                        requirement.--If the Secretary elects to carry 
                        out this paragraph, the producers on a farm 
                        shall be eligible to decrease the acreage 
                        limitation percentage applicable to the rice 
                        acreage base of the producers (as announced by 
                        the Secretary) if the producers agree to a 
                        decrease in the established price for rice in 
                        accordance with clause (ii) for the purpose of 
                        calculating deficiency payments to be made 
                        available to the producers.
                            ``(ii) Method of calculation.--For the 
                        purposes of calculating deficiency payments to 
                        be made available to producers who choose the 
                        option established under this subparagraph, the 
                        Secretary shall decrease the established price 
                        for rice by an amount to be determined by the 
                        Secretary of not less than 0.5 percent, nor 
                        more than 1 percent, for each 1 percentage 
                        point decrease in the acreage limitation 
                        percentage applied to the rice acreage base of 
                        the producers.
                            ``(iii) Limitation.--The producers on a 
                        farm may not choose to decrease the acreage 
                        limitation percentage applicable to the rice 
                        acreage base of the producers under this 
                        paragraph by more than \1/2\ of the announced 
                        acreage limitation percentage.
                    ``(E) Participation and production effects.--
                Notwithstanding any other provision of this paragraph, 
                the Secretary shall, to the extent practicable, ensure 
                that the program
                 provided for in this paragraph does not have a 
significant effect on participation on the program established under 
this section or total production and shall be offered in such a manner 
that the Secretary determines will result in no additional budget 
outlays. The Secretary shall provide an analysis of the determination 
of the Secretary to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate.
            ``(4) Administration.--
                    ``(A) Protection from weeds and erosion.--The 
                regulations issued by the Secretary under paragraph (2) 
                with respect to acreage required to be devoted to 
                conservation uses shall ensure protection of the 
                acreage from weeds and wind and water erosion.
                    ``(B) Conserving crops.--The Secretary may permit, 
                subject to such terms and conditions as the Secretary 
                may prescribe, all or any part of the acreage to be 
                devoted to sweet sorghum, guar, sesame, castor beans, 
                crambe, plantago ovato, triticale, rye, mung beans, 
                milkweed, or other commodity, if the Secretary 
                determines that the production is needed to provide an 
                adequate supply of the commodities, is not likely to 
                increase the cost of the price support program, and 
                will not affect farm income adversely.
                    ``(C) Haying and grazing.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), haying and grazing of reduced 
                        acreage, acreage devoted to a conservation use 
                        under subsection (c)(1)(D), and acreage 
                        diverted from production under a land diversion 
                        program established under this subsection shall 
                        be permitted, except during any consecutive 5-
                        month period that is established by the State 
                        committee established under section 8(b) of the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590h(b)) for a State. The 5-month 
                        period shall be established during the period 
                        beginning April 1, and ending October 31, of a 
                        year.
                            ``(ii) Natural disasters.--In the case of a 
                        natural disaster, the Secretary may permit 
                        unlimited haying and grazing on the acreage. 
                        The Secretary may not exclude irrigated or 
                        irrigable acreage not planted to alfalfa when 
                        exercising the authority under this clause.
                    ``(D) Water storage uses.--
                            ``(i) In general.--The regulations issued 
                        by the Secretary under paragraph (2) with 
                        respect to acreage required to be devoted to 
                        conservation uses shall provide that land that 
                        has been converted to water storage uses shall 
                        be considered to be devoted to conservation 
                        uses if the land was devoted to wheat, feed 
                        grains, cotton, rice, or oilseeds in at least 3 
                        of the immediately preceding 5 crop years. The 
                        land shall be considered to be devoted to 
                        conservation uses for the period that the land 
                        remains in water storage uses, but not to 
                        exceed 5 crop years subsequent to the 
                        conversion of the land to water storage uses.
                            ``(ii) Limitations.--Land converted to 
                        water storage uses for the purposes of this 
                        subparagraph may not be devoted to any 
                        commercial use, including commercial fish 
                        production. The water stored on the land may 
                        not be ground water. The farm on which the land 
                        is located must have been irrigated with ground 
                        water during at least 1 of the preceding 5 crop 
                        years.
            ``(5) Land diversion program.--
                    ``(A) In general.--The Secretary may make land 
                diversion payments to producers of rice, whether or not 
                an acreage limitation program for rice is in effect, if 
                the Secretary determines that the land diversion 
                payments are necessary to assist in adjusting the total 
                national acreage of rice to desirable goals. The land 
                diversion payments shall be made to producers who, to 
                the extent prescribed by the Secretary, devote to 
                approved conservation uses an acreage of cropland on 
                the farm in accordance with land diversion contracts 
                entered into by the Secretary with the producers.
                    ``(B) Amounts.--The amounts payable to producers 
                under land diversion contracts may be determined 
                through the submission of bids for the contracts by 
                producers in such manner as the Secretary may prescribe 
                or through such other means as the Secretary determines 
                appropriate. In determining the acceptability of 
                contract offers, the Secretary shall take into 
                consideration the extent of the diversion to be 
                undertaken by the producers and the productivity of the 
                acreage diverted.
                    ``(C) Limitation on diverted acreage.--The 
                Secretary shall limit the total acreage to be diverted 
                under agreements in any county or local community so as 
                not to affect adversely the economy of the county or 
                local community.
            ``(6) Conservation practices.--
                    ``(A) Wildlife food plots or habitat.--The reduced 
                acreage and additional diverted acreage may be devoted 
                to wildlife food plots or wildlife habitat in 
                conformity with standards established by the Secretary 
                in consultation with wildlife agencies. The Secretary 
                may pay an appropriate share of the cost of practices 
                designed to carry out this subparagraph.
                    ``(B) Public access.--The Secretary may provide for 
                an additional payment on the acreage in an amount 
                determined by the Secretary to be appropriate in 
                relation to the benefit to the general public if the 
                producers on a farm agree to permit, without other 
                compensation,
                 access to all or such portion of the farm as the 
Secretary may prescribe by the general public, for hunting, trapping, 
fishing, and hiking, subject to applicable Federal and State 
regulations.
            ``(7) Participation agreements.--
                    ``(A) In general.--Producers on a farm desiring to 
                participate in the program conducted under this 
                subsection shall execute an agreement with the 
                Secretary providing for the participation not later 
                than such date as the Secretary may prescribe.
                    ``(B) Modification or termination.--The Secretary 
                may, by mutual agreement with producers on a farm, 
                modify or terminate any such agreement if the Secretary 
                determines the action necessary because of an emergency 
                created by drought or other disaster or to prevent or 
                alleviate a shortage in the supply of agricultural 
                commodities. The Secretary may modify the agreement 
                under this subparagraph for the purpose of alleviating 
                a shortage in the supply of agricultural commodities 
                only if there has been a significant change in the 
                estimated stocks of the commodity since the Secretary 
                announced the final terms and conditions of the program 
                for the crop of rice.
    ``(f) Inventory Reduction Payments.--
            ``(1) In general.--For each of the 1996 through 2002 crops 
        of rice, the Secretary may make payments available to producers 
        on a farm who meet the requirements of this subsection.
            ``(2) Form.--The payments may be made in the form of 
        marketing certificates.
            ``(3) Payments.--
                    ``(A) In general.--Payments under this subsection 
                shall be determined in the same manner as provided in 
                subsection (b).
                    ``(B) Quantity of rice made available.--The 
                quantity of rice to be made available to the producers 
                on a farm under this subsection shall be equal in value 
                to the payments so determined under this subsection.
            ``(4) Eligibility.--The producers on a farm shall be 
        eligible to receive a payment under this subsection for a crop 
        if the producers--
                    ``(A) agree to forgo obtaining a loan or purchase 
                agreement under subsection (a);
                    ``(B) agree to forgo receiving payments under 
                subsection (c);
                    ``(C) do not plant rice for harvest in excess of 
                the crop acreage base reduced by \1/2\ of any acreage 
                required to be diverted from production under 
                subsection (e); and
                    ``(D) otherwise comply with this section.
    ``(g) Equitable Relief.--
            ``(1) Loans, purchases, and payments.--If the failure of a 
        producer to comply fully with the terms and conditions of the 
        program conducted under this section precludes the making of 
        loans, purchases, and payments, the Secretary may, 
        notwithstanding the failure, make the loans, purchases, and 
        payments in such amounts as the Secretary determines are 
        equitable in relation to the seriousness of the failure. The 
        Secretary may consider whether the producer made a good faith 
        effort to comply fully with the terms and conditions of the 
        program in determining whether equitable relief is warranted 
        under this paragraph.
            ``(2) Deadlines and program requirements.--The Secretary 
        may authorize the county and State committees established under 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other 
        program requirements in cases in which lateness or failure to 
        meet the other requirements does not affect adversely the 
        operation of the program.
    ``(h) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this section.
    ``(i) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(j) Assignment of Payments.--Section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) shall apply 
to payments made under this section.
    ``(k) Sharing of Payments.--The Secretary shall provide for the 
sharing of payments made under this section for any farm among the 
producers on the farm on a fair and equitable basis.
    ``(l) Tenants and Sharecroppers.--In carrying out this section, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    ``(m) Cross-Compliance.--
            ``(1) In general.--Compliance on a farm with the terms and 
        conditions of any other commodity program, or compliance with 
        crop acreage base requirements for any other commodity, may not 
        be required as a condition of eligibility for loans, purchases, 
        or payments under this section.
            ``(2) Compliance on other farms.--The Secretary may not 
        require producers on a farm, as a condition of eligibility for 
        loans, purchases, or payments under this section for the farm, 
        to comply with the terms and conditions of the rice program 
        with respect to any other farm operated by the producers.
    ``(n) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
rice.''.
                           TITLE V--OILSEEDS

SEC. 501. LOANS AND PAYMENTS FOR OILSEEDS FOR 1996 THROUGH 2002 
              MARKETING YEARS.

    Section 205 of the Agricultural Act of 1949 (7 U.S.C. 1446f) is 
amended to read as follows:

``SEC. 205. LOANS AND PAYMENTS FOR OILSEEDS FOR 1996 THROUGH 2002 
              MARKETING YEARS.

    ``(a) Definition of Oilseeds.--In this section, the term `oilseeds' 
means soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, 
mustard seed, and such other oilseeds as the Secretary may determine.
    ``(b) Loans and Purchases.--The Secretary shall make available to 
producers on a farm loans and purchases for each of the 1996 through 
2002 crops of oilseeds produced on the farm at such level as the 
Secretary determines will maintain the competitiveness of oilseeds with 
other crops and will not result in excessive total stocks of oilseeds, 
taking into consideration the cost of producing oilseeds, supply and 
demand conditions, and world prices for oilseeds.
    ``(c) Loan and Purchase Level.--
            ``(1) Soybeans.--Except as provided in paragraph (4), the 
        loan and purchase level for each of the 1996 through 2002 crops 
        of soybeans shall be not less than the greater of--
                    ``(A) 85 percent of the simple average price 
                received by producers, as determined by the Secretary, 
                during the marketing years for the immediately 
                preceding 5 crops of soybeans, 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
                    ``(B) $5.50 per bushel.
            ``(2) Sunflower seed, canola, rapeseed, and flaxseed.--
        Except as provided in paragraph (4), the loan and purchase 
        level for each of the 1996 through 2002 crops of sunflower 
        seed, canola, rapeseed, and flaxseed shall be not less than the 
        greater of--
                    ``(A) 85 percent of the simple average price 
                received by producers, as determined by the Secretary, 
                during the marketing years for the immediately 
                preceding 5 crops of sunflower seed, canola, rapeseed, 
                and flaxseed, respectively, 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
                    ``(B) $9.75 per hundredweight.
            ``(3) Other oilseeds.--Except as provided in paragraph (4), 
        the loan and purchase level for each of the 1996 through 2002 
        crops of oilseeds not covered by paragraph (1) or (2) shall be 
        established at such level as the Secretary determines is fair 
        and reasonable in relation to the loan and purchase level 
        available for soybeans, except that the loan and purchase level 
        for cottonseed may not be established at a level that is less 
        than the level established for soybeans on a per-pound basis 
        for the same crop year.
            ``(4) Adjustment.--If the Secretary determines for any 
        marketing year that the loan and purchase level established 
        under this subsection will result in outlays in the form of 
        loan deficiency payments to producers of an oilseed, the 
        Secretary shall reduce the loan and purchase level for a crop 
        of the oilseed for the marketing year to a level at which, as 
        determined by the Secretary, payments will not be made, except 
        that the level may not be less than--
                    ``(A) in the case of soybeans, $5.00 per bushel; 
                and
                    ``(B) in the case of sunflower seed, canola, 
                rapeseed, and flaxseed, $8.90 per hundredweight.
            ``(5) Report.--If the Secretary adjusts the level of loans 
        and purchases for an oilseed under paragraph (4), the Secretary 
        shall submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate a report--
                    ``(A) certifying that the adjustment is necessary 
                to reduce outlays in the form of loan deficiency 
                payments; and
                    ``(B) containing a description of the production, 
                stocks, and price circumstances under which the 
                adjustment is needed.
            ``(6) Future crop years.--Any reduction in the loan and 
        purchase level for a crop of an oilseed under paragraph (4) 
        shall not be considered in determining the loan and purchase 
        level for a future crop of the oilseed.
    ``(d) Marketing Loans.--
            ``(1) In general.--The Secretary shall permit a producer to 
        repay a loan made under this section for a crop--
                    ``(A) at a level that is the lesser of--
                            ``(i) the loan and purchase level 
                        determined for the crop; and
                            ``(ii) the prevailing world market price 
                        for the applicable oilseed (adjusted to
                         United States quality and location), as 
determined by the Secretary; or
                    ``(B) such other level (not in excess of the loan 
                and purchase level determined for the crop) that the 
                Secretary determines will--
                            ``(i) minimize potential loan forfeitures;
                            ``(ii) minimize the accumulation of oilseed 
                        stocks by the Federal Government;
                            ``(iii) minimize the cost incurred by the 
                        Federal Government in storing oilseeds; and
                            ``(iv) allow oilseeds produced in the 
                        United States to be marketed freely and 
                        competitively, both domestically and 
                        internationally.
            ``(2) Prevailing world market price.--The Secretary shall 
        prescribe by regulation--
                    ``(A) a formula for determining the prevailing 
                world market price for oilseeds (adjusted to United 
                States quality and location); and
                    ``(B) a mechanism by which the Secretary shall 
                announce periodically the prevailing world market price 
                for oilseeds (adjusted to United States quality and 
                location).
    ``(e) Loan Deficiency Payment.--
            ``(1) In general.--For each of the 1996 through 2002 crops 
        of oilseeds, the Secretary shall make payments available to 
        producers who, although eligible to obtain a loan or purchase 
        under subsection (b), agree to forgo obtaining the loan and 
        purchase in return for payments under this subsection.
            ``(2) Computation.--A payment under this subsection shall 
        be computed by multiplying--
                    ``(A) the loan and purchase payment rate; by
                    ``(B) the quantity of oilseeds the producer is 
                eligible to place under loan but for which the producer 
                forgoes obtaining the loan and purchase in return for 
                payments under this subsection.
            ``(3) Loan and purchase payment rate.--For purposes of this 
        subsection, the loan and purchase payment rate shall be the 
        amount by which--
                    ``(A) the loan and purchase level determined for 
                the crop under subsection (c); exceeds
                    ``(B) the level at which a loan may be repaid under 
                subsection (d).
            ``(4) Marketing certificates.--
                    ``(A) In general.--The Secretary may make payments 
                under this section available in the form of 
                certificates redeemable for any agricultural commodity 
                owned by the Commodity Credit Corporation.
                    ``(B) Minimal oilseed stocks.--The Secretary shall 
                make certificates available under subparagraph (A) in 
                such a manner as to minimize the accumulation of 
                oilseed stocks.
    ``(f) Marketing Year.--For purposes of this section, the marketing 
year for--
            ``(1) soybeans shall be the 1-year period beginning on 
        September 1 and ending on August 31; and
            ``(2) other oilseeds shall be prescribed by the Secretary 
        by regulation.
    ``(g) Announcements.--The Secretary shall make an announcement of 
the loan and purchase level for the crop not later than 15 days prior 
to the beginning of the marketing year for the crop.
    ``(h) Loan Maturity.--A loan made for a crop of oilseeds under this 
section shall mature on the last day of the 9th month following the 
month in which the application for the loan is made, except that the 
loan may not mature later than the last day of the fiscal year in which 
the application is made.
    ``(i) Other Terms and Conditions.--Notwithstanding any other 
provision of law--
            ``(1) the Secretary shall not require participation in any 
        production adjustment program for oilseeds or any other 
        commodity as a condition of eligibility for price support for 
        oilseeds;
            ``(2) the Secretary may not authorize payments to producers 
        to cover the cost of storing oilseeds; and
            ``(3) oilseeds may not be considered an eligible commodity 
        for any reserve program.
    ``(j) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this section.
    ``(k) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(l) Assignment of Payments.--Section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) shall apply 
to payments under this section.
    ``(m) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
oilseeds.''.
                           TITLE VI--PEANUTS

SEC. 601. SUSPENSION OF MARKETING QUOTAS AND ACREAGE ALLOTMENTS.

    The following provisions of the Agricultural Adjustment Act of 1938 
shall not be applicable to the 1996 through 2002 crops of peanuts:
            (1) Subsections (a) through (j) of section 358 (7 U.S.C. 
        1358).
            (2) Subsections (a) through (h) of section 358a (7 U.S.C. 
        1358a).
            (3) Subsections (a), (b), (d), and (e) of section 358d (7 
        U.S.C. 1359).
            (4) Part I of subtitle C of title III (7 U.S.C. 1361 et 
        seq.).
            (5) Section 371 (7 U.S.C. 1371).

SEC. 602. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS.

    Section 358-1 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1358-1) is amended to read as follows:

``SEC. 358-1. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS FOR 1996 
              THROUGH 2002 CROPS OF PEANUTS.

    ``(a) National Poundage Quotas.--
            ``(1) Establishment.--The national poundage quota for 
        peanuts for each of the 1996 through 2002 marketing years shall 
        be established by the Secretary at a level that is equal to the 
        quantity of peanuts (in tons) that the Secretary estimates will 
        be devoted in each such marketing year to domestic edible and 
        related uses, excluding seed. The Secretary shall include in 
        the annual estimate of domestic edible and related uses, the 
        estimated quantity of peanuts and peanut products to be 
        imported into the United States for the marketing year for 
        which the quota is being established.
            ``(2) Announcement.--The national poundage quota for a 
        marketing year shall be announced by the Secretary not later 
        than the December 15 preceding the marketing year.
            ``(3) Apportionment among states.--The national poundage 
        quota established under paragraph (1) shall be apportioned 
        among the States so that the poundage quota allocated to each 
        State is equal to the percentage of the national poundage quota 
        allocated to farms in the State for 1995.
    ``(b) Farm Poundage Quotas.--
            ``(1) In general.--
                    ``(A) Establishment.--A farm poundage quota for 
                each of the 1996 through 2002 marketing years shall be 
                established--
                            ``(i) for each farm that had a farm 
                        poundage quota for peanuts for the 1995 
                        marketing year;
                            ``(ii) if the poundage quota apportioned to 
                        a State under subsection (a)(3) for any such 
                        marketing year is larger than the quota for the 
                        immediately preceding marketing year, for each 
                        other farm on which peanuts were produced for 
                        marketing in at least 2 of the 3 immediately 
                        preceding crop years, as determined by the 
                        Secretary; and
                            ``(iii) as approved and determined by the 
                        Secretary under section 358c, for each farm on 
                        which peanuts are produced in connection with 
                        experimental and research programs.
                    ``(B) Quantity.--
                            ``(i) In general.--The farm poundage quota 
                        for each of the 1996 through 2002 marketing 
                        years for each farm described in subparagraph 
                        (A)(i) shall be the same as the farm poundage 
                        quota for the farm for the immediately 
                        preceding marketing year, as adjusted under 
                        paragraph (2), but not including any increases 
                        resulting from the allocation of quotas 
                        voluntarily released for 1 year under paragraph 
                        (7).
                            ``(ii) Increased quota.--The farm poundage 
                        quota, if any, for each of the 1996 through 
                        2002 marketing years for each farm described in 
                        subparagraph (A)(ii) shall be equal to the 
                        quantity of peanuts allocated to the farm for 
                        the year under paragraph (2).
                    ``(C) Transfers.--For purposes of this subsection, 
                if the farm poundage quota, or any part of the quota, 
                is permanently transferred in accordance with section 
                358a or 358b, the receiving farm shall be considered as 
                possessing the farm poundage quota (or portion of the 
                quota) of the transferring farm for all subsequent 
                marketing years.
            ``(2) Adjustments.--
                    ``(A) Allocation of increased quota generally.--
                Subject to subparagraphs (B) and (D), if the poundage 
                quota apportioned to a State under subsection (a)(3) 
                for any of the 1996 through 2002 marketing years is 
                increased over the poundage quota apportioned to farms 
                in the State for the immediately preceding marketing 
                year, the increase shall be allocated proportionately, 
                based on farm production history for peanuts for the 3 
                immediately preceding years, among--
                            ``(i) all farms in the State for which a 
                        farm poundage quota was established for the 
                        marketing year immediately preceding the 
                        marketing year for which the allocation is 
                        being made; and
                            ``(ii) all other farms in the State on 
                        which peanuts were produced in at least 2 of 
                        the 3 immediately preceding crop years, as 
                        determined by the Secretary.
                    ``(B) Temporary quota allocation.--
                            ``(i) In general.--Subject to clause (iv), 
                        temporary allocation of a poundage quota for 
                        the marketing year in which a crop of peanuts 
                        is planted shall be made to producers for each 
                        of the 1996 through 2002 marketing years in 
                        accordance with this subparagraph.
                            ``(ii) Quantity.--The temporary quota 
                        allocation shall be equal to the quantity of 
                        seed peanuts (in pounds) planted on a farm, as 
                        determined in accordance with regulations 
                        issued by the Secretary.
                            ``(iii) Allocation.--The allocation of 
                        quota pounds to producers under this 
                        subparagraph shall be performed in such a 
                        manner as will not result in a net decrease in 
                        quota pounds on a farm in excess of 3 percent, 
                        after the temporary seed quota is added, from 
                        the basic farm quota for the 1995 marketing 
                        year. A decrease shall occur only once, shall 
                        be applicable only to the 1996 marketing year.
                            ``(iv) No increased costs.--The Secretary 
                        may carry out this subparagraph only if this 
                        subparagraph does not result in--
                                    ``(I) an increased cost to the 
                                Commodity Credit Corporation through 
                                displacement of quota peanuts by 
                                additional peanuts in the domestic 
                                market;
                                    ``(II) an increased loss in a loan 
                                pool of an area marketing association 
                                designated pursuant to section
                                 108B(c)(1) of the Agricultural Act of 
1949 (7 U.S.C. 1445c-3(c)(1)); or
                                    ``(III) other increased costs.
                            ``(v) Use of quota and additional 
                        peanuts.--Nothing in this subparagraph affects 
                        the requirements of section 358b(b).
                            ``(vi) Additional allocation.--The 
                        temporary allocation of quota pounds under this 
                        subparagraph shall be in addition to the farm 
                        poundage quota established under this 
                        subsection and shall be credited to the 
                        producers of the peanuts on the farm in 
                        accordance with regulations issued by the 
                        Secretary.
                    ``(C) Decrease.--If the poundage quota apportioned 
                to a State under subsection (a)(3) for any of the 1996 
                through 2002 marketing years is decreased from the 
                poundage quota apportioned to farms in the State under 
                subsection (a)(3) for the immediately preceding 
                marketing year, the decrease shall be allocated among 
                all the farms in the State for which a farm poundage 
                quota was established for the marketing year 
                immediately preceding the marketing year for which the 
                allocation is being made.
                    ``(D) Special rule on tenant's share of increased 
                quota.--Subject to terms and conditions prescribed by 
                the Secretary, on farms that were leased to a tenant 
                for peanut production, the tenant shall share equally 
                with the owner of the farm in the percentage of the 
                quota made available under subparagraph (A) and 
                otherwise allocated to the farm as the result of the 
                production of the tenant on the farm of additional 
                peanuts. Not later than April 1 of each year or as soon 
                as practicable during the year, the share of the tenant 
                of any such quota shall be allocated to a farm within 
                the county owned by the tenant or sold by the tenant to 
                the owner of any farm within the county and permanently 
                transferred to the farm. Any quota not so disposed of 
                as provided in this subparagraph shall be allocated to 
                other quota farms in the State under paragraph (6) as 
                part of the quota reduced from farms in the State due 
                to the failure to produce the quota.
            ``(3) Quota not produced.--
                    ``(A) In general.--Insofar as practicable and on 
                such fair and equitable basis as the Secretary may by 
                regulation prescribe, the farm poundage quota 
                established for a farm for any of the 1996 through 2002 
                marketing years shall be reduced to the extent that the 
                Secretary determines that the farm poundage quota 
                established for the farm for any 2 of the 3 marketing 
                years preceding the marketing year for which the 
                determination is being made was not produced, or 
                considered produced, on the farm.
                    ``(B) Exclusions.--For the purposes of this 
                paragraph, the farm poundage quota for any such 
                preceding marketing year shall not include any increase 
                resulting from the allocation of quotas voluntarily 
                released for 1 year under paragraph (7).
            ``(4) Quota considered produced.--
                    ``(A) In general.--For purposes of this subsection, 
                subject to subparagraph (B), the farm poundage quota 
                shall be considered produced on a farm if--
                            ``(i) the farm poundage quota was not 
                        produced on the farm because of drought, flood, 
                        or any other natural disaster, or any other 
                        condition beyond the control of the producer, 
                        as determined by the Secretary;
                            ``(ii) the farm poundage quota for the farm 
                        was released voluntarily under paragraph (7) 
                        for only 1 of the 3 marketing years immediately 
                        preceding the marketing year for which the 
                        determination is being made; or
                            ``(iii) the farm poundage quota was leased 
                        to another owner or operator of a farm within 
                        the same county for transfer to the farm for 
                        only 1 of the 3 marketing years immediately 
                        preceding the marketing year for which the 
                        determination is being made.
                    ``(B) Marketing years.--For purposes of clauses 
                (ii) and (iii) of subparagraph (A)--
                            ``(i) the farm poundage quota leased or 
                        transferred shall be considered produced for 
                        only 1 of the 3 marketing years immediately 
                        preceding the marketing year for which the 
                        determination is being made; and
                            ``(ii) the farm shall not be considered to 
                        have produced for more than 1 marketing year 
                        out of the 3 immediately preceding marketing 
                        years.
            ``(5) Quota permanently released.--Notwithstanding any 
        other provision of law--
                    ``(A) the farm poundage quota established for a 
                farm under this subsection, or any part of the quota, 
                may be permanently released by the owner of the farm, 
                or the operator with the permission of the owner; and
                    ``(B) the poundage quota for the farm for which the 
                quota is released shall be adjusted downward to reflect 
                the quota that is released.
            ``(6) Allocation of quotas reduced or released.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the total quantity of the farm 
                poundage quotas reduced or voluntarily released from 
                farms in a State for any marketing year under 
                paragraphs (3) and (5) shall be allocated, as the 
                Secretary may by regulation prescribe, to other farms 
                in the State on which peanuts were produced in at least 
                2 of the 3 crop years immediately preceding the year 
                for which the allocation is being made.
                    ``(B) Set-aside for farms with no quota.--The total 
                amount of farm poundage quota to be allocated in the 
                State under subparagraph (A) shall be allocated to 
                farms in the State for which no farm poundage quota was 
                established for the crop of the immediately preceding 
                year. The allocation to any such farm shall not exceed 
                the average farm production of peanuts for the 3 
                immediately preceding years during which peanuts were 
                produced on the farm. Any farm poundage quota remaining 
                after allocation to farms under this subparagraph shall 
                be allocated to farms in the State on which poundage 
                quotas were established for the crop of the immediately 
                preceding year.
            ``(7) Quota temporarily released.--
                    ``(A) In general.--The farm poundage quota, or any 
                portion of the quota, established for a farm for a 
                marketing year may be voluntarily released to the 
                Secretary to the extent that the quota, or any part of 
                the quota, will not be produced on the farm for the 
                marketing year. Any farm poundage quota so released in 
                a State shall be allocated to other farms in the State 
                on such basis as the Secretary may by regulation 
                prescribe.
                    ``(B) Effective period.--Except as otherwise 
                provided in this section, any adjustment in the farm 
                poundage quota for a farm under subparagraph (A) shall 
                be effective only for the marketing year for which the 
                adjustment is made and shall not be taken into 
                consideration in establishing a farm poundage quota for 
                the farm from which the quota was released for any 
                subsequent marketing year.
    ``(c) Farm Yields.--
            ``(1) In general.--For each farm for which a farm poundage 
        quota is established under subsection (b), and when necessary 
        for purposes of this Act, a farm yield of peanuts shall be 
        determined for each such farm.
            ``(2) Quantity.--The yield shall be equal to the average of 
        the actual yield per acre on the farm for each of the 3 crop 
        years in which yields were highest on the farm during the 5-
        year period consisting of the 1973 through 1977 crop years.
            ``(3) Appraised yields.--If peanuts were not produced on 
        the farm in at least 3 years during the 5-year period or there 
        was a substantial change in the operation of the farm during 
        the period (including a change in operator, lessee who is an 
        operator, or irrigation practices), the Secretary shall have a 
        yield appraised for the farm. The appraised yield shall be that 
        quantity determined to be fair and reasonable on the basis of 
        yields established for similar farms that are located in the 
        area of the farm and on which peanuts were produced, taking 
        into consideration land, labor, and equipment available for the 
        production of peanuts, crop rotation practices, soil and water, 
        and other relevant factors.
    ``(d) Referendum Respecting Poundage Quotas.--
            ``(1) In general.--Not later than December 15 of each 
        calendar year, the Secretary shall conduct a referendum of 
        producers engaged in the production of quota peanuts in the 
        calendar year in which the referendum is held to determine 
        whether the producers are in favor of or opposed to poundage 
        quotas with respect to the crops of peanuts produced in the 5 
        calendar years immediately following the year in which the 
        referendum is held, except that, if at least \2/3\ of the 
        producers voting in any referendum vote in favor of poundage 
        quotas, no referendum shall be held with respect to quotas for 
        the remaining years of the 5-calendar year period.
            ``(2) Proclamation.--The Secretary shall proclaim the 
        result of the referendum within 30 days after the date on which 
        the referendum is held.
            ``(3) Vote against quotas.--If more than \1/3\ of the 
        producers voting in the referendum vote against poundage 
        quotas, the Secretary shall proclaim that poundage quotas will 
        not be in effect with respect to the crop of peanuts produced 
        in the calendar year immediately following the calendar year in 
        which the referendum is held.
    ``(e) Definitions.--In this part and title I of the Agricultural 
Act of 1949 (7 U.S.C. 1441 et seq.):
            ``(1) Additional peanuts.--The term `additional peanuts' 
        means, for any marketing year--
                    ``(A) any peanuts that are marketed from a farm for 
                which a farm poundage quota has been established and 
                that are in excess of the marketings of quota peanuts 
                from the farm for the year; and
                    ``(B) all peanuts marketed from a farm for which no 
                farm poundage quota has been established in accordance 
                with subsection (b).
            ``(2) Crush.--The term `crush' means the processing of 
        peanuts to extract oil for food uses and meal for feed uses, or 
        the processing of peanuts by crushing or otherwise when 
        authorized by the Secretary.
            ``(3) Domestic edible use.--The term `domestic edible use' 
        means use for milling to produce domestic food peanuts (other 
        than a use described in paragraph (2)) and seed and use on a 
        farm, except that the Secretary may exempt from this paragraph 
        seeds of peanuts that are used to produce peanuts excluded 
        under section 358d(c), are unique strains, and are not 
        commercially available.
            ``(4) Quota peanuts.--The term `quota peanuts' means, for 
        any marketing year, any peanuts produced on a farm having a 
        farm poundage quota, as determined under subsection (b), that--
                    ``(A) are eligible for domestic edible use as 
                determined by the Secretary;
                    ``(B) are marketed or considered marketed from a 
                farm; and
                    ``(C) do not exceed the farm poundage quota of the 
                farm for the year.
    ``(f) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.

SEC. 603. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA.

    Section 358b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1358b) is amended to read as follows:

``SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA FOR 1996 
              THROUGH 2000 CROPS OF PEANUTS.

    ``(a) In General.--
            ``(1) Authority.--
                    ``(A) In general.--Subject to such terms, 
                conditions, or limitations as the Secretary may 
                prescribe, the owner, or operator with the permission 
                of the owner, of any farm for which a farm poundage 
                quota has been established under this Act may sell or 
                lease all or any part of the poundage quota to any 
                other owner or operator of a farm within the same 
                county for transfer to the farm, except that any such 
                lease of poundage quota may be entered into in the fall 
                or after the normal planting season--
                            ``(i) if not less than 90 percent of the 
                        basic quota (consisting of the farm quota and 
                        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; and
                            ``(ii) under such terms and conditions as 
                        the Secretary may by regulation prescribe.
                    ``(B) Fall transfers.--
                            ``(i) No transfer authorization.--In the 
                        case of a fall transfer or a transfer after the 
                        normal planting season by a cash lessee, the 
                        landowner shall not be required to sign the 
                        transfer authorization.
                            ``(ii) Time limitation.--A fall transfer or 
                        a transfer after the normal planting season may 
                        be made not later than 72 hours after the 
                        peanuts that are the subject of the transfer 
                        are inspected and graded.
                            ``(iii) Lessees.--In the case of a fall 
                        transfer, poundage quota from a farm may be 
                        leased to an owner or operator of another farm 
                        within the same county or to an owner or 
                        operator of another farm in any other county 
                        within the State.
                            ``(iv) Effect of transfer.--A fall transfer 
                        of poundage quota shall not affect the farm 
                        quota history for the transferring or receiving 
                        farm and shall not result in the reduction of 
                        the farm poundage quota on the transferring 
                        farm.
            ``(2) Transfers to other self-owned farms.--The owner or 
        operator of a farm may transfer all or any part of the farm 
        poundage quota for the farm to any other farm owned or 
        controlled by the owner or operator that is in the same State 
        and that had a farm poundage quota for the crop of the 
        preceding year, if both the transferring and receiving farms 
        were under the control of the owner or operator for at least 3 
        crop years prior to the crop year in which the farm poundage 
        quota is to be transferred. Any farm poundage quota transferred 
        under this paragraph shall not result in any reduction in the 
        farm poundage quota for the transferring farm if sufficient 
        acreage is planted on the receiving farm to produce the quota 
        pounds transferred.
            ``(3) Transfers in states with small quotas.--In the case 
        of any State for which the poundage quota allocated to the 
        State was less than 10,000 tons for the crop of the preceding 
        year, all or any part of a farm poundage quota may be 
        transferred by sale or lease or otherwise from a farm in 1 
        county to a farm in another county in the same State.
            ``(4) Transfers by sale in states having quotas of 10,000 
        tons or more.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph and such terms and conditions as the 
                Secretary may prescribe, the owner, or operator with 
                the permission of the owner, of any farm for which a 
                farm quota has been established under this Act in a 
                State having a poundage quota of 10,000 tons or more 
                may sell poundage quota to any other eligible owner or 
                operator of a farm within the same State.
                    ``(B) Limitations based on total poundage quota.--
                            ``(i) 1996 marketing year.--Not more than 
                        15 percent of the total poundage quota within a 
                        county as of January 1, 1996, may be sold and 
                        transferred under this paragraph during the 
                        1996 marketing year.
                            ``(ii) 1997-2002 marketing years.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), not more 
                                than 5 percent of the quota pounds 
                                remaining in a county as of January 1, 
                                1997, and each January 1 thereafter 
                                through January 1, 2002, may be sold 
                                and transferred under this paragraph 
                                during the applicable marketing year.
                                    ``(II) Carryover.--Any eligible 
                                quota that is not sold or transferred 
                                under clause (i) shall be eligible for 
                                sale or transfer under subclause (I).
                    ``(C) County limitation.--Not more than 40 percent 
                of the total poundage quota within a county may be sold 
                and transferred under this paragraph.
                    ``(D) Subsequent leases or sales.--Quota pounds 
                sold and transferred to a farm under this paragraph may 
                not be leased or sold by the farm to another owner or 
                operator of a
                 farm within the same State for a period of 5 years 
following the date of the original transfer to the farm.
                    ``(E) Application.--This paragraph shall not apply 
                to a sale within the same county or to any sale, lease, 
                or transfer described in paragraph (1).
    ``(b) Conditions.--Transfers (including transfer by sale or lease) 
of farm poundage quotas under this section shall be subject to all of 
the following conditions:
            ``(1) Lienholders.--No transfer of the farm poundage quota 
        from a farm subject to a mortgage or other lien shall be 
        permitted unless the transfer is agreed to by the lienholders.
            ``(2) Tillable cropland.--No transfer of the farm poundage 
        quota shall be permitted if the county committee established 
        under section 8(b) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h(b)) determines that the receiving 
        farm does not have adequate tillable cropland to produce the 
        farm poundage quota.
            ``(3) Record.--No transfer of the farm poundage quota shall 
        be effective until a record of the transfer is filed with the 
        county committee of each county to, and from, which the 
        transfer is made and each committee determines that the 
        transfer complies with this section.
            ``(4) Other terms.--The Secretary may establish by 
        regulation other terms and conditions.
    ``(c) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2000 crops of 
peanuts.''.

SEC. 604. MARKETING PENALTIES; DISPOSITION OF ADDITIONAL PEANUTS.

    Section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359a) is amended to read as follows:

``SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS 
              FOR 1996 THROUGH 2002 CROPS OF PEANUTS.

    ``(a) Marketing Penalties.--
            ``(1) In general.--
                    ``(A) Marketing peanuts in excess of quota.--The 
                marketing of any peanuts for domestic edible use in 
                excess of the farm poundage quota for the farm on which 
                the peanuts are produced shall be subject to a penalty 
                at a rate equal to 140 percent of the support price for 
                quota peanuts for the marketing year in which the 
                marketing occurs. The penalty shall not apply to the 
                marketing of breeder or Foundation seed peanuts grown 
                and marketed by a publicly owned agricultural 
                experiment station (including a State operated seed 
                organization) under such regulations as the Secretary 
                may prescribe.
                    ``(B) Marketing year.--For purposes of this 
                section, the marketing year for peanuts shall be the 
                12-month period beginning August 1 and ending July 31.
                    ``(C) Marketing additional peanuts.--The marketing 
                of any additional peanuts from a farm shall be subject 
                to the same penalty as the penalty prescribed in 
                subparagraph (A) unless the peanuts, in accordance with 
                regulations established by the Secretary, are--
                            ``(i) placed under loan at the additional 
                        loan rate in effect for the peanuts under 
                        section 108B of the Agricultural Act of 1949 (7 
                        U.S.C. 1445c-3) and not redeemed by the 
                        producers;
                            ``(ii) marketed through an area marketing 
                        association designated pursuant to section 
                        108B(c)(1) of the Agricultural Act of 1949; or
                            ``(iii) marketed under contracts between 
                        handlers and producers pursuant to subsection 
                        (f).
            ``(2) Payer.--The penalty shall be paid by the person who 
        buys or otherwise acquires the peanuts from the producer or, if 
        the peanuts are marketed by the producer through an agent, the 
        penalty shall be paid by the agent. The person or agent may 
        deduct an amount equivalent to the penalty from the price paid 
        to the producer.
            ``(3) Failure to collect.--If the person required to 
        collect the penalty fails to collect the penalty, the person 
        and all persons entitled to share in the peanuts marketed from 
        the farm or the proceeds of the marketing shall be jointly and 
        severally liable with the persons who failed to collect the 
        penalty for the amount of the penalty.
            ``(4) Application of quota.--Peanuts produced in a calendar 
        year in which farm poundage quotas are in effect for the 
        marketing year beginning in the calendar year shall be subject 
        to the quotas even though the peanuts are marketed prior to the 
        date on which the marketing year begins.
            ``(5) False information.--If any producer falsely 
        identifies, fails to accurately certify planted acres, or fails 
        to account for the disposition of any peanuts produced on the 
        planted acres, a quantity of peanuts equal to the greater of 
        the average or actual yield of the farm, as determined by the 
        Secretary, multiplied by the number of planted acres, shall be 
        deemed to have been marketed in violation of permissible uses 
        of quota and additional peanuts. Any penalty payable under this 
        paragraph shall be paid and remitted by the producer.
            ``(6) Unintentional violations.--The Secretary shall 
        authorize, under such regulations as the Secretary shall issue, 
        the county committees established under section 8(b) of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)) to waive or reduce marketing penalties provided for 
        under this subsection in cases with respect to which the 
        committees determine that the violations that were the basis of 
        the penalties were unintentional or without knowledge on the 
        part of the parties concerned.
            ``(7) De minimis violations.--An error in weight that does 
        not exceed \1/10\ of 1 percent in the case of any 1 marketing 
        document shall not be considered to be a marketing violation 
        except in a case of fraud or conspiracy.
    ``(b) Use of Quota and Additional Peanuts.--
            ``(1) Quota peanuts.--Only quota peanuts may be retained 
        for use as seed or for other uses on a farm. When peanuts are 
        so retained, the retention shall be considered as marketings of 
        quota peanuts, except that the Secretary may exempt from 
        consideration as marketings of quota peanuts seeds of peanuts 
        for the quantity involved that are used to produce peanuts 
        excluded under section 358d(c), are unique strains, and are not 
        commercially available.
            ``(2) Additional peanuts.--Additional peanuts shall not be 
        retained for use on a farm and shall not be marketed for 
        domestic edible use, except as provided in subsection (g).
            ``(3) Seed.--Except as provided in paragraph (1), seed for 
        planting of any peanut acreage in the United States shall be 
        obtained solely from quota peanuts marketed or considered 
        marketed for domestic edible use.
    ``(c) Marketing Peanuts With Excess Quantity, Grade, or Quality.--
On a finding by the Secretary that the peanuts marketed from any crop 
for domestic edible use by a handler are larger in quantity or higher 
in grade or quality than the peanuts that could reasonably be produced 
from the quantity of peanuts having the grade, kernel content, and 
quality of the quota peanuts acquired by the handler from the crop for 
the marketing year, the handler shall be subject to a penalty equal to 
140 percent of the loan level for quota peanuts on the quantity of 
peanuts that the Secretary determines are in excess of the quantity, 
grade, or quality of the peanuts that could reasonably have been 
produced from the peanuts so acquired.
    ``(d) Handling and Disposal of Additional Peanuts.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require that the handling and disposal of 
        additional peanuts be supervised by agents of the Secretary or 
        by area marketing associations designated pursuant to section 
        108B(c)(1) of the Agricultural Act of 1949 (7 U.S.C. 1445c-
        3(c)(1)).
            ``(2) Nonsupervision of handlers.--
                    ``(A) In general.--Supervision of the handling and 
                disposal of additional peanuts by a handler shall not 
                be required under paragraph (1) if the handler agrees 
                in writing, prior to any handling or disposal of the 
                peanuts, to comply with regulations that the Secretary 
                shall issue.
                    ``(B) Regulations.--The regulations issued by the 
                Secretary under subparagraph (A) shall include the 
                following provisions:
                            ``(i) Types of exported or crushed 
                        peanuts.--Handlers of shelled or milled peanuts 
                        may export or crush peanuts classified by type 
                        in each of the following quantities:
                                    ``(I) Sound split kernel peanuts.--
                                Sound split kernel peanuts purchased by 
                                the handler as additional peanuts to 
                                which, under price support loan 
                                schedules, a mandated deduction with 
                                respect to the price paid to the 
                                producer of the peanuts would be 
                                applied due to the percentage of the 
                                sound splits.
                                    ``(II) Sound mature kernel 
                                peanuts.--Sound mature kernel peanuts 
                                (which term includes sound split kernel 
                                peanuts and sound whole kernel peanuts) 
                                in an amount equal to the poundage of 
                                the peanuts purchased by the handler as 
                                additional peanuts, less the total 
                                poundage of sound split kernel peanuts 
                                described in subclause (I).
                                    ``(III) Remainder.--The remaining 
                                quantity of total kernel content of 
                                peanuts purchased by the handler as 
                                additional peanuts.
                            ``(ii) Documentation.--Handlers shall 
                        ensure that any additional peanuts exported or 
                        crushed are evidenced by onboard bills of 
                        lading or other appropriate documentation as 
                        may be required by the Secretary, or both.
                            ``(iii) Loss of peanuts.--If a handler 
                        suffers a loss of peanuts as a result of fire, 
                        flood, or any other condition beyond the 
                        control of the handler, the portion of the loss 
                        allocated to contracted additional peanuts 
                        shall not be greater than the portion of the 
                        total peanut purchases of the handler for the 
                        year attributable to contracted additional 
                        peanuts purchased for export or crushing by the 
                        handler during the year.
                            ``(iv) Shrinkage allowance.--
                                    ``(I) In general.--The obligation 
                                of a handler to export or crush peanuts 
                                in quantities described in this 
                                subparagraph shall be reduced by a 
                                shrinkage allowance, to be determined 
                                by the Secretary, to reflect actual 
                                dollar value shrinkage experienced by 
                                handlers in commercial operations, 
                                except that the allowance shall not be 
                                less than 4 percent, except as provided 
                                in subclause (II).
                                    ``(II) Common industry practices.--
                                The Secretary may provide a lower 
                                shrinkage allowance for a handler who 
                                fails to comply with restrictions on 
                                the use of peanuts, as may be specified 
                                by the Commodity Credit Corporation, to 
                                take into account common industry 
                                practices.
            ``(3) Adequate finances and facilities.--A handler shall 
        submit to the Secretary adequate financial guarantees, as well 
        as evidence of adequate facilities and assets, with respect to 
        the facilities under the control and operation of the handler, 
        to ensure the compliance of the handler with the obligation to 
        export peanuts.
            ``(4) Commingling of like peanuts.--Quota and additional 
        peanuts of like type and segregation or quality may, under 
        regulations issued by the Secretary, be commingled and 
        exchanged on a dollar value basis to facilitate warehousing, 
        handling, and marketing.
            ``(5) Penalty.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the failure by a handler to comply 
                with regulations issued by the Secretary governing the 
                disposition and handling of additional peanuts shall 
                subject the handler to a penalty at a rate equal to 140 
                percent of the loan level for quota peanuts on the 
                quantity of peanuts involved in the violation.
                    ``(B) Nondelivery.--A handler shall not be subject 
                to a penalty for failure to export additional peanuts 
                if the peanuts were not delivered to the handler.
            ``(6) Reentry of exported peanuts.--
                    ``(A) Penalty.--If any additional peanuts or peanut 
                products exported by a handler are reentered into the 
                United States in commercial quantities as determined by 
                the Secretary, the importer of the peanuts and peanut 
                products shall be subject to a penalty at a rate equal 
                to 140 percent of the loan level for quota peanuts on 
                the quantity of peanuts reentered.
                    ``(B) Records.--Each person, firm, or handler who 
                imports peanuts into the United States shall maintain 
                such records and documents as are required by the 
                Secretary to ensure compliance with this subsection.
    ``(e) Special Export Credits.--
            ``(1) In general.--The Secretary shall, with due regard for 
        the integrity of the peanut program, promulgate regulations 
        that will permit any handler of peanuts who manufactures peanut 
        products from domestic edible peanuts to export the products 
        and receive credit for the fulfillment of export obligations 
        for the peanut content of the products against which export 
        credit the handler may subsequently apply, up to the amount of 
        the credit, equivalent quantities of additional peanuts of the 
        same type acquired by the handler and used in the domestic 
        edible market. The peanuts so acquired for the domestic edible 
        market as provided in this subsection shall be of the same crop 
        year as the peanuts used in the manufacture of the products so 
        exported.
            ``(2) Certification.--Under the regulations, the Secretary 
        shall require all handlers who are peanut product manufacturers 
        to submit annual certifications of peanut product content on a 
        product-by-product basis. Any changes in peanut product 
        formulas as affecting peanut content shall be recorded within 
        90 days after the changes. The Secretary shall conduct an 
        annual review of the certifications. The Secretary shall pursue 
        all available remedies with respect to persons who fail to 
        comply with this paragraph.
            ``(3) Records.--The Secretary shall require handlers who 
        are peanut product manufacturers to maintain and provide such 
        documents as are necessary to ensure compliance with this 
        subsection and to maintain the integrity of the peanut program.
    ``(f) Contracts for Purchase of Additional Peanuts.--
            ``(1) In general.--A handler may, under such regulations as 
        the Secretary may issue, contract with a producer for the 
        purchase of additional peanuts for crushing or export, or both.
            ``(2) Submission to secretary.--
                    ``(A) Contract deadline.--Any such contract shall 
                be completed and submitted to the Secretary (or if 
                designated by the Secretary, the area marketing 
                association) for approval not later than September 15 
                of the year in which the crop is produced.
                    ``(B) Extension of deadline.--The Secretary may 
                extend the deadline under subparagraph (A) by up to 15 
                days in response to damaging weather or related 
                condition (as defined in section 112 of the Disaster 
                Assistance Act of 1989 (Public Law 101-82; 7 U.S.C. 
                1421 note)). The Secretary shall announce the extension 
                not later than September 5 of the year in which the 
                crop is produced.
            ``(3) Form.--The contract shall be executed on a form 
        prescribed by the Secretary. The form shall require such 
        information as the Secretary determines appropriate to ensure 
        the proper handling of the additional peanuts, including the 
        identity of the contracting parties, poundage and category of 
        the peanuts, the disclosure of any liens, and the intended 
        disposition of the peanuts.
            ``(4) Information for handling and processing additional 
        peanuts.--Notwithstanding any other provision of this section, 
        any person wishing to handle and process additional peanuts as 
        a handler shall submit to the Secretary (or if designated by 
        the Secretary, the area marketing association), such 
        information as may be required under subsection (d) by such 
        date as is prescribed by the Secretary so as to permit final 
        action to be taken on the application by July 1 of each 
        marketing year.
            ``(5) Terms.--Each such contract shall contain the final 
        price to be paid by the handler for the peanuts involved and a 
        specific prohibition against the disposition of the peanuts for 
        domestic edible or seed use.
            ``(6) Suspension of restrictions on imported peanuts.--
        Notwithstanding any other provision of this Act, if the 
        President issues a proclamation under section 404(b) of the 
        Uruguay Round Agreements Act (19 U.S.C. 3601(b)) expanding the 
        quantity of peanuts subject to the in-quota rate of duty under 
        a tariff-rate quota, or under section 22 of the Agricultural 
        Adjustment Act (7 U.S.C. 624), reenacted with amendments by the 
        Agricultural Marketing Agreement Act of 1937, temporarily 
        suspending restrictions on the importation of peanuts, the 
        Secretary shall, subject to such terms and conditions as the 
        Secretary may prescribe, permit a handler, with the written 
        consent of the producer, to purchase additional peanuts from 
        any producer who contracted with the handler and to offer the 
        peanuts for sale for domestic edible use.
    ``(g) Marketing of Peanuts Owned or Controlled by the Commodity 
Credit Corporation.--
            ``(1) In general.--Subject to section 407 of the 
        Agricultural Act of 1949 (7 U.S.C. 1427), any peanuts owned or 
        controlled by the Commodity Credit Corporation may be made 
        available for domestic edible use, in accordance with 
        regulations issued by the Secretary, so long as doing so does 
        not result in substantially increased cost to the Commodity 
        Credit Corporation. Additional peanuts received under loan 
        shall be offered for sale for domestic edible use at prices 
        that are not less than the prices that are required to cover 
        all costs incurred with respect to the peanuts for such items 
        as inspection, warehousing, shrinkage, and other expenses, 
        plus--
                    ``(A) not less than 100 percent of the loan value 
                of quota peanuts if the additional peanuts are sold and 
                paid for during the harvest season on delivery by and 
                with the written consent of the producer;
                    ``(B) not less than 105 percent of the loan value 
                of quota peanuts if the additional peanuts are sold 
                after delivery by the producer but not later than 
                December 31 of the marketing year; or
                    ``(C) not less than 107 percent of the loan value 
                of quota peanuts if the additional peanuts are sold 
                later than December 31 of the marketing year.
            ``(2) Acceptance of bids by area marketing associations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for the period from the date 
                additional peanuts are delivered for loan to March 1 of 
                the calendar year following the year in which the 
                additional peanuts were harvested, the area marketing 
                association designated pursuant to section 108B(c)(1) 
                of the Agricultural Act of 1949 (7 U.S.C. 1445c-
                3(c)(1)) shall have sole authority to accept or reject 
                lot list bids when the sales price, as determined under 
                this subsection, equals or exceeds the minimum price at 
                which the Commodity Credit Corporation may sell the 
                stocks of additional peanuts of the Corporation.
                    ``(B) Modification.--The area marketing association 
                and the Commodity Credit Corporation may agree to 
                modify the authority granted by subparagraph (A) to 
                facilitate the orderly marketing of additional peanuts.
            ``(3) Producer marketing and expenses.--Notwithstanding any 
        other provision of this Act, the Secretary shall, in any 
        determination required under subsections (a)(2) and (b)(1) of 
        section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-
        3), include any additional marketing expenses required by law, 
        excluding the amount of any assessment required under section 
        108B(g) of the Agricultural Act of 1949 (7 U.S.C. 1445c-3(g)).
    ``(h) Administration.--
            ``(1) Interest.--The person liable for payment or 
        collection of any penalty provided for in this section shall be 
        liable also for interest on the penalty at a rate per annum 
        equal to the rate per annum of interest that was charged the 
        Commodity Credit Corporation by the Treasury of the United 
        States on the date the penalty became due.
            ``(2) De minimis quantity.--This section shall not apply to 
        peanuts produced on any farm on which the acreage harvested for 
        peanuts is 1 acre or less if the producers who share in the 
        peanuts produced on the farm do not share in the peanuts 
        produced on any other farm.
            ``(3) Liens.--Until the amount of the penalty provided by 
        this section is paid, a lien on the crop of peanuts with 
        respect to which the penalty is incurred, and on any subsequent 
        crop of peanuts subject to farm poundage quotas in which the 
        person liable for payment of the penalty has an interest, shall 
        be in effect in favor of the United States.
            ``(4) Penalties.--
                    ``(A) Procedures.--Notwithstanding any other 
                provision of law, the liability for and the amount of 
                any penalty assessed under this section shall be 
                determined in accordance with such procedures as the 
                Secretary may by regulation prescribe. The facts 
                constituting the basis for determining the liability 
                for or amount of any penalty assessed under this 
                section, when officially determined in conformity with 
                the applicable regulations prescribed by the Secretary, 
                shall be final and conclusive and shall not be 
                reviewable by any other officer or agency of the 
                Federal Government.
                    ``(B) Judicial review.--Nothing in this section 
                prohibits any court of competent jurisdiction from 
                reviewing any determination made by the Secretary with 
                respect to whether the determination was made in 
                conformity with applicable law.
                    ``(C) Civil penalties.--All penalties imposed under 
                this section shall for all purposes be considered civil 
                penalties.
            ``(5) Reduction of penalties.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and notwithstanding any other 
                provision of law, the Secretary may reduce the amount 
                of any penalty assessed against handlers under this 
                section by any appropriate amount, including, in an 
                appropriate case, eliminating the penalty entirely, if 
                the Secretary finds that the violation on which the 
                penalty is based was minor or inadvertent, and that the 
                reduction of the penalty will not impair the operation 
                of the peanut program.
                    ``(B) Failure to export contracted additional 
                peanuts.--The amount of any penalty imposed on a 
                handler under this section that resulted from the 
                failure to export or crush contracted additional 
                peanuts shall not be reduced by the Secretary.
    ``(i) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.

SEC. 605. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.

    Section 358c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1358c) is amended to read as follows:

``SEC. 358c. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
the Secretary may permit a portion of the poundage quota for peanuts 
apportioned to any State to be allocated from the quota reserve of the 
State to land-grant institutions identified in the Act of May 8, 1914 
(38 Stat. 372, chapter 79; 7 U.S.C. 341 et seq.), and colleges eligible 
to receive funds under the Act of August 30, 1890 (26 Stat. 419, 
chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee Institute and, 
as appropriate, the Agricultural Research Service of the Department of 
Agriculture to be used for experimental and research purposes.
    ``(b) Quantity.--The quantity of the quota allocated to an 
institution under this section shall not exceed the quantity of the 
quota held by each such institution during the 1985 crop year, except 
that the total quantity allocated to all institutions in a State shall 
not exceed \1/10\ of 1 percent of the basic quota of the State.
    ``(c) Limitation.--The director of the agricultural experiment 
station for a State shall be required to ensure, to the extent 
practicable, that farm operators in the State do not produce quota 
peanuts under subsection (a) in excess of the quantity needed for 
experimental and research purposes.
    ``(d) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.

SEC. 606. PRICE SUPPORT PROGRAM.

    Section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-3) is 
amended to read as follows:

``SEC. 108B. PRICE SUPPORT PROGRAM FOR 1996 THROUGH 2002 CROPS OF 
              PEANUTS.

    ``(a) Quota Peanuts.--
            ``(1) In general.--The Secretary shall make price support 
        available to producers through loans, purchases, and other 
        operations on quota peanuts for each of the 1996 through 2002 
        crops.
            ``(2) Support rates.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                national average quota support rate for each of the 
                1996 through 2002 crops of quota peanuts shall be the 
                national average quota support rate for the immediately 
                preceding crop, adjusted to reflect any increase or 
                decrease, during the calendar year immediately 
                preceding the marketing year for the crop for which a 
                level of support is being determined, in the national 
                average cost of peanut production, excluding any change 
                in the cost of land and the cost of any assessments 
                required under subsection (g).
                    ``(B) Maximum rate.--In no event shall the national 
                average quota support rate for any such crop be 
                increased or decreased by more than 5 percent of the 
                national average quota support rate for the preceding 
                crop.
            ``(3) Inspection, handling, or storage.--The level of 
        support determined under paragraph (2) shall not be reduced by 
        any deduction for inspection, handling, or storage.
            ``(4) Location and other factors.--The Secretary may make 
        adjustments for location of peanuts and such other factors as 
        are authorized by section 403.
            ``(5) Announcement.--The Secretary shall announce the level 
        of support for quota peanuts of each crop not later than the 
        February 15 preceding the marketing year for the crop for which 
        the level of support is being determined.
    ``(b) Additional Peanuts.--
            ``(1) In general.--The Secretary shall make price support 
        available to producers through loans, purchases, or other 
        operations on additional peanuts for each of the 1996 through 
        2002 crops at such levels as the Secretary considers 
        appropriate, taking into consideration the demand for peanut 
        oil and peanut meal, expected prices of other vegetable oils 
        and protein meals, and the demand for peanuts in foreign 
        markets, except that the Secretary shall set the support rate 
        on additional peanuts at a level estimated by the Secretary to 
        ensure that there are no losses to the Commodity Credit 
        Corporation on the sale or disposal of the peanuts.
            ``(2) Announcement.--The Secretary shall announce the level 
        of support for additional peanuts of each crop not later than 
        the February 15 preceding the marketing year for the crop for 
        which the level of support is being determined.
    ``(c) Area Marketing Associations.--
            ``(1) Warehouse storage loans.--
                    ``(A) In general.--In carrying out subsections (a) 
                and (b), the Secretary shall make warehouse storage 
                loans available in each of the 3 producing areas 
                described in section 1446.95 of title 7, Code of 
                Federal Regulations (as of January 1, 1989), to a 
                designated area marketing association of peanut 
                producers that is selected and approved by the 
                Secretary and that is operated primarily for the 
                purpose of conducting the loan activities. The 
                Secretary may not make warehouse storage loans 
                available to any cooperative that is engaged in 
                operations or activities concerning peanuts other than 
                those operations and activities specified in this 
                section and sections 358d and 358e of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1359 and 1359a).
                    ``(B) Administrative and supervisory activities.--
                The area marketing associations shall be used in 
                administrative and supervisory activities relating to 
                price support and marketing activities under this 
                section and sections 358d and 358e of the Agricultural 
                Adjustment Act of 1938.
                    ``(C) Association costs.--Loans made to an area 
                marketing association under this paragraph shall 
                include, in addition to the price support value of the 
                peanuts, such costs as the association reasonably may 
                incur in carrying out the responsibilities, operations, 
                and activities of the association under this section 
                and sections 358d and 358e of the Agricultural 
                Adjustment Act of 1938.
            ``(2) Pools for quota and additional peanuts.--
                    ``(A) In general.--The Secretary shall require that 
                each area marketing association establish pools and 
                maintain complete and accurate records by area and 
                segregation for quota peanuts handled under loan and 
                for additional peanuts placed under loan, except that 
                separate pools shall be established for Valencia 
                peanuts produced in New Mexico. Peanuts produced 
                outside New Mexico shall not be eligible for entry into 
                or participation in the separate pools 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 plus an amount 
                        from all additional pool gains equal to any 
                        loss on disposition of all peanuts in the pool 
                        for quota peanuts.
                            ``(ii) Additional peanuts.--For additional 
                        peanuts, the net gains over and above the loan 
                        indebtedness and other costs or losses incurred 
                        on peanuts placed in the pool for additional 
                        peanuts less any amount allocated to offset any 
                        loss on the
                         pool for quota peanuts as provided in clause 
(i).
    ``(d) Losses.--Notwithstanding any other provision of this section:
            ``(1) Quota peanuts placed under loan.--Any distribution of 
        net gains on additional peanuts (other than net gains on 
        additional peanuts in separate type pools established under 
        subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) shall be first reduced to the extent of any loss by the 
        Commodity Credit Corporation on quota peanuts placed under 
        loan.
            ``(2) Quota loan pools.--
                    ``(A) Transfers from additional loan pools.--The 
                proceeds due any producer from any pool shall be 
                reduced by the amount of any loss that is incurred with 
                respect to peanuts transferred from an additional loan 
                pool to a quota loan pool by the producer under section 
                358-1(b)(8) of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1358-1(b)(8)).
                    ``(B) Other losses.--Losses in area quota pools 
                shall be offset by reducing the gain of any producer in 
                the pool by the amount of pool gains attributed to the 
                producer from the sale of additional peanuts for 
                domestic and export edible use.
    ``(e) Disapproval of Quotas.--Notwithstanding any other provision 
of law, no price support may be made available by the Secretary for any 
crop of peanuts with respect to which poundage quotas have been 
disapproved by producers, as provided for in section 358-1(d) of the 
Agricultural Adjustment Act of 1938.
    ``(f) Quality Improvement.--
            ``(1) Price support peanuts.--With respect to peanuts under 
        price support loan, the Secretary shall--
                    ``(A) promote the crushing of peanuts at a greater 
                risk of deterioration before peanuts at a lesser risk 
                of deterioration;
                    ``(B) ensure that all Commodity Credit Corporation 
                loan stocks of peanuts sold for domestic edible use are 
                shown to have been officially inspected by licensed 
                Department of Agriculture inspectors both as farmer 
                stock and shelled or cleaned in-shell peanuts;
                    ``(C) continue to endeavor to operate the peanut 
                price support program so as to improve the quality of 
                domestic peanuts and ensure the coordination of 
                activities under the Peanut Administrative Committee 
                established under Marketing Agreement No. 146, 
                regulating the quality of domestically produced peanuts 
                (under the Agricultural 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 price 
                support program as a result of this subsection 
                requiring additional production or handling at the farm 
                level are reflected as an upward adjustment in the 
                Department of Agriculture loan schedule.
            ``(2) Exports and other peanuts.--The Secretary shall 
        require that all peanuts, including peanuts imported into the 
        United States, meet all United States quality standards under 
        Marketing Agreement No. 146 and that importers of the peanuts 
        fully comply with inspection, handling, storage, and processing 
        requirements implemented under Marketing Agreement No. 146. The 
        Secretary shall ensure that peanuts produced for the export 
        market meet quality, inspection, handling, storage, and 
        processing requirements under Marketing Agreement No. 146.
    ``(g) Marketing Assessment.--
            ``(1) In general.--The Secretary shall provide, by 
        regulation, for a nonrefundable marketing assessment applicable 
        to each of the 1996 through 2002 crops of peanuts. The 
        assessment shall be made in accordance with this subsection and 
        shall be on a per pound basis in an amount equal to 1.2 percent 
        of the national average quota or additional peanut support rate 
        per pound, as applicable, for the applicable crop. No peanuts 
        shall be assessed more than 1.2 percent of the applicable 
        support rate under this subsection.
            ``(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 .65 percent of the 
                        applicable national average support rate;
                            ``(ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the quantity 
                        of peanuts acquired multiplied by .55 percent 
                        of the applicable national average support 
                        rate; and
                            ``(iii) remit the amounts required under 
                        clauses (i) and (ii) to the Commodity Credit 
                        Corporation in a manner specified by the 
                        Secretary.
                    ``(B) Definition.--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 price support 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 the 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 such requirements for recordkeeping or otherwise as are 
        required by the Secretary to carry out this subsection, the 
        person shall be liable to the Secretary for a civil penalty up 
        to an amount determined by multiplying--
                    ``(A) the quantity of peanuts involved in the 
                violation; by
                    ``(B) the national average quota peanut price 
                support level for the applicable crop year.
            ``(6) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    ``(h) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.

SEC. 607. REPORTS AND RECORDS.

    Effective only for the 1996 through 2002 crops of peanuts, the 
first sentence of section 373(a) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1373(a)) is amended by inserting before ``all brokers 
and dealers in peanuts'' the following: ``all producers engaged in the 
production of peanuts,''.

SEC. 608. SUSPENSION OF CERTAIN PRICE SUPPORT PROVISIONS.

    Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall 
not be applicable to the 1996 through 2002 crops of peanuts.

SEC. 609. REGULATIONS.

    The Secretary of Agriculture shall issue such regulations as are 
necessary to carry out this title and the amendments made by this 
title. In issuing the regulations, the Secretary shall--
            (1) comply with subchapter II of chapter 5 of title 5, 
        United States Code;
            (2) provide public notice through the Federal Register of 
        any such proposed regulations; and
            (3) allow adequate time for written public comment prior to 
        the formulation and issuance of any final regulations.
                            TITLE VII--SUGAR

SEC. 701. SUGAR PRICE SUPPORT.

    Section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) is 
amended to read as follows:

``SEC. 206. SUGAR PRICE SUPPORT FOR 1996 THROUGH 2002 CROPS.

    ``(a) In General.--The price of each of the 1996 through 2002 crops 
of sugar beets and sugarcane, respectively, shall be supported in 
accordance with this section.
    ``(b) Sugarcane.--The Secretary shall support the price of 
domestically grown sugarcane through nonrecourse loans at 18 cents per 
pound for raw cane sugar.
    ``(c) Sugar Beets.--The Secretary shall support the price of 
domestically grown sugar beets through nonrecourse loans at the basic 
loan rate level established by the Secretary for the 1994 crop of sugar 
beets.
    ``(d) Adjustment in Support Price.--The Secretary may increase the 
support price for each of the 1997 through 2002 crops of domestically 
grown sugarcane and sugar beets from the price determined for the 
preceding crop based on such factors as the Secretary determines 
appropriate, including changes (during the 2 crop years immediately 
preceding the crop year for which the determination is made) in the 
cost of sugar products, the cost of domestic sugar production, and 
other circumstances that may adversely affect domestic sugar 
production.
    ``(e) Announcements.--The Secretary shall announce the basic loan 
rates for cane sugar and beet sugar to be applicable during any fiscal 
year under this section as far in advance of the beginning of the 
fiscal year as is practicable consistent with this section.
    ``(f) Term.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        subsection (g), loans under this section during any fiscal year 
        shall be made available not earlier than the beginning of the 
        fiscal year and shall mature at the end of 3 months.
            ``(2) Extension.--At the option of the borrower, on 
        furnishing written notice to the Commodity Credit Corporation, 
        the maturity of a loan may be extended for 2 additional 3-month 
        periods, except that the maturity may not be extended beyond 
        the end of the fiscal year subsequent to the fiscal year in 
        which the loan is made.
    ``(g) Supplementary Nonrecourse Loans.--
            ``(1) In general.--The Secretary shall make available to 
        eligible processors price support loans with respect to sugar 
        processed from sugarcane and sugar beets harvested in the last 
        3 months of a fiscal year.
            ``(2) Term.--Except as provided in paragraph (4), a loan 
        made under paragraph (1) shall mature at the end of the fiscal 
        year.
            ``(3) Repledging sugar.--The processor may repledge the 
        sugar as collateral for a price support 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 3 months.
            ``(4) Extension.--At the option of the borrower, on 
        furnishing written notice to the Commodity Credit Corporation, 
        the maturity of a loan may be extended for 2 additional 3-month 
        periods, except that the total term of the loan may not be 
        greater than 9 months.
    ``(h) Use of Commodity Credit Corporation.--The Secretary shall use 
the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this section.
    ``(i) Marketing Assessment.--
            ``(1) Tier 1 assessment.--
                    ``(A) Sugarcane.--Effective only for marketings of 
                raw cane sugar during fiscal years 1997 through 2003, 
                the first processor of sugarcane shall remit to the 
                Commodity Credit Corporation a nonrefundable marketing 
                assessment in an amount equal to 1.1 percent of the 
                loan level established under subsection (b) per pound 
                of raw cane sugar (but not more than .198 cents 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). The assessment shall be 
                payable on marketings within the base of the processor, 
                as established by the Secretary under section 359b of 
                the Agricultural Adjustment Act of 1938 (7 U.S.C. 
                1359bb).
                    ``(B) Sugar beets.--
                            ``(i) In general.--Effective only for 
                        marketings of beet sugar during fiscal years 
                        1997 through 2003, the first processor of sugar 
                        beets shall remit to the Commodity Credit 
                        Corporation a nonrefundable marketing 
                        assessment in an amount equal to 1.1794 percent 
                        of the loan level established under subsection 
                        (b) per pound of beet sugar (but not more than 
                        .2123 cents per pound of beet sugar), processed 
                        by the processor from domestically produced 
                        sugar beets or sugar beet molasses, that has 
                        been marketed.
                            ``(ii) Base.--The assessment shall be 
                        payable on marketings within the base of the 
                        processor, as established by the Secretary 
                        under section 359b of the Agricultural 
                        Adjustment Act of 1938 (7 U.S.C. 1359bb).
                    ``(C) Imported sugar.--Effective only for fiscal 
                years 1997 through 2003--
                            ``(i) each holder of a certificate of quota 
                        eligibility for raw cane sugar imported into 
                        the United States shall remit to the Commodity 
                        Credit Corporation a nonrefundable marketing 
                        assessment in the amount specified in 
                        subparagraph (A) per pound of raw cane sugar; 
                        and
                            ``(ii) each holder of a certificate of 
                        quota eligibility for refined sugar (beet or 
                        cane) imported into the United States shall
                         remit to the Commodity Credit Corporation a 
nonrefundable marketing assessment in the amount specified in 
subparagraph (B) per pound of refined sugar.
                    ``(D) Exempt marketings.--No marketing assessment 
                shall be required to be paid under this paragraph with 
                respect to marketings of sugar to enable another 
                processor or refiner to fill the marketing assessment 
                base of the processor or refiner or to facilitate the 
                exportation of the sugar.
            ``(2) Tier 2 assessment.--
                    ``(A) In general.--Effective for marketings of raw 
                cane sugar or beet sugar during fiscal year 1997, the 
                first processor of sugarcane or sugar beets, or the 
                refiner of cane sugar, shall remit to the Commodity 
                Credit Corporation a nonrefundable marketing assessment 
                in an amount equal to 100 percent of the loan level 
                established under subsection (b) or (c) per pound of 
                raw cane sugar or beet sugar, respectively, marketed in 
                excess of the base of the processor or refiner, as 
                established by the Secretary under section 359b of the 
                Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb).
                    ``(B) Reduction.--The assessment rate shall be 
                reduced to 97 percent of the loan level for marketings 
                for fiscal year 1998, 94 percent for fiscal year 1999, 
                91 percent for fiscal year 2000, and 88 percent for 
                each of fiscal years 2001, 2002, and 2003.
            ``(3) Collection.--
                    ``(A) Timing.--Marketing assessments 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 the 
                month in which the sugar is marketed or imported.
                    ``(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 such other requirements 
        as are specified 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 support level for the applicable crop of 
                sugarcane or sugar beets.
            ``(5) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    ``(j) Assurance of Supply of Raw Cane Sugar.--
            ``(1) In general.--Subject to paragraphs (2) and (3), if, 
        during a period of 7 consecutive market days, the price for raw 
        cane sugar for the nearest future contract month, as reported 
        by the New York Coffee, Sugar, and Cocoa Exchange, the No. 14 
        price, averages more than 128 percent of the loan rate 
        established under subsection (b) for raw cane sugar, within 3 
        market days, the Secretary shall take all actions authorized by 
        law to increase the supply of raw cane sugar, in increments of 
        not less than 50,000 tons, to a level that is sufficient to 
        reduce the average price for raw cane sugar to not more than 
        128 percent of the loan rate.
            ``(2) Actions.--
                    ``(A) Marketing assessment bases.--In carrying out 
                paragraph (1), before taking any other action, the 
                Secretary shall increase the marketing assessment bases 
                for processors of raw cane sugar established under 
                sections 359c and 359d of the Agricultural Adjustment 
                Act of 1938 (7 U.S.C. 1359cc and 1359dd) to the extent 
                necessary to increase the supply of domestically-
                produced raw cane sugar to the maximum extent 
                available.
                    ``(B) Other actions.--If the Secretary determines 
                that further action is necessary to increase the supply 
                of raw cane sugar under this subsection, the Secretary 
                shall take the action.
            ``(3) Beet sugar.--The Secretary shall not take an action 
        under this subsection if, during the 7-day period referred to 
        in paragraph (1), the average bulk, FOB factory net price for 
        refined beet sugar reported by all sellers is more than 128 
        percent of the average price for raw cane sugar for the nearest 
        future contract month.
            ``(4) Refiner base.--Any action taken under this subsection 
        shall not affect the base for any refiner established by the 
        Secretary under sections 359c and 359d of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359cc and 1359dd).
    ``(k) Crops.--Except as provided in subsection (i), this section 
shall be effective only for the 1996 through 2002 crops of sugar beets 
and sugarcane.''.

SEC. 702. MARKETING ASSESSMENT BASES FOR PROCESSORS AND REFINERS.

    Effective October 1, 1996, part VII of subtitle B of title III of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is 
amended to read as follows:

   ``PART VII--MARKETING ASSESSMENT BASES FOR PROCESSORS AND REFINERS

``SEC. 359a. INFORMATION REPORTING.

    ``(a) Duty of Processors, Refiners, and Manufacturers To Report.--
            ``(1) Processors and refiners.--All sugarcane processors, 
        cane sugar refiners, and sugar beet processors shall provide 
        the Secretary 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) Manufacturers of crystalline fructose.--All 
        manufacturers of crystalline fructose from corn (referred to in 
        this part as `crystalline fructose') shall provide the 
        Secretary such information as the Secretary may require with 
        respect to the distribution of crystalline fructose by the 
        manufacturer.
    ``(b) Duty of Producers To Report.--The Secretary may require a 
producer of sugarcane or sugar beets to report, in the manner 
prescribed by the Secretary, the sugarcane or sugar beet yields of the 
producer and acres planted to sugarcane or sugar beets, respectively.
    ``(c) Penalty.--Any person willfully failing or refusing to provide 
the information required under this section, or providing willfully any 
false information, shall be subject to a civil penalty of not more than 
$10,000 for each such violation.
    ``(d) Monthly Reports.--Taking into consideration the information 
received under subsection (a), the Secretary shall publish on a monthly 
basis composite data on production, imports, distribution, and stock 
levels of sugar and composite data on distributions of crystalline 
fructose.

``SEC. 359b. ESTABLISHMENT OF MARKETING ASSESSMENT BASES.

    ``(a) In General.--Before the beginning of each of fiscal years 
1997 through 2003, the Secretary shall establish, for the fiscal year, 
marketing assessment bases for processors of sugar processed from 
domestically produced sugarcane and sugar beets and for cane sugar 
refiners, based on the estimate of the Secretary of sugar consumption 
in the United States for the fiscal year.
    ``(b) Products.--The Secretary may include in the marketing 
assessment bases established under subsection (a) only sugar products 
that contain at least 50 percent sucrose or crystalline fructose for 
human consumption, derived from sugarcane, sugar beets, molasses, or 
sugar.

``SEC. 359c. CALCULATION OF MARKETING ASSESSMENT BASES.

    ``(a) In General.--The Secretary shall establish marketing 
assessment bases for sugar for each of fiscal years 1997 through 2003 
in accordance with this section.
    ``(b) Overall Base.--
            ``(1) In general.--The Secretary shall establish the 
        overall base to be distributed for a fiscal year (referred to 
        in this part as the `overall base') on the basis of the 
        estimate of the Secretary of sugar consumption for the fiscal 
        year.
            ``(2) Adjustment.--The Secretary shall adjust the overall 
        base, to the maximum extent practicable, to prevent the 
        accumulation of sugar acquired by the Commodity Credit 
        Corporation.
    ``(c) Establishment of Base.--The overall base for each fiscal year 
shall be distributed among sugar derived from sugar beets and sugar 
derived from sugarcane in the following proportions:
            ``(1) Sugar derived from sugar beets--47 percent.
            ``(2) Sugar derived from sugarcane, including raw cane 
        sugar imported from foreign countries for consumption in the 
        United States--53 percent.
    ``(d) Distribution of Base.--
            ``(1) Sugar beets.--The base for sugar derived from sugar 
        beets for a fiscal year shall be a quantity equal to the 
        product obtained by multiplying--
                    ``(A) the overall base quantity for the fiscal 
                year; by
                    ``(B) the percentage referred to in subsection 
                (c)(1).
            ``(2) Sugarcane.--The base for raw sugar derived from 
        sugarcane for a fiscal year shall be the quantity obtained by 
        subtracting--
                    ``(A) 1,257,000 short tons, raw value; from
                    ``(B) the quantity equal to the product obtained by 
                multiplying--
                            ``(i) the overall base quantity for the 
                        fiscal year; by
                            ``(ii) the percentage referred to in 
                        subsection (c)(2).
            ``(3) Refined cane sugar.--The base for refined cane sugar 
        shall be a quantity equal to the product obtained by 
        multiplying--
                    ``(A) the overall base quantity for the fiscal 
                year; by
                    ``(B) the percentage referred to in subsection 
                (c)(2).
    ``(e) State Sugarcane Base.--The base for sugar derived from 
sugarcane shall be further distributed, among the 5 States in the 
United States in which sugarcane is produced, in a fair and equitable 
manner on the basis of past marketings of sugar (considering the 
average marketings of sugar processed from sugarcane in the 2 highest 
years of production from each State from the 1990 through 1994 crops), 
processing capacity, and the ability of processors to market the sugar 
covered under the bases.
    ``(f) Adjustment of Marketing Assessment Bases.--
            ``(1) In general.--The Secretary shall adjust marketing 
        assessment bases established under subsections (a) through (d) 
        in accordance with this subsection.
            ``(2) Adjustment based on price.--If the weighted average 
        bulk, FOB factory or refinery net price (including the price of 
        representative consumer and industrial products, adjusted to a 
        bulk basis) reported by all sellers of refined sugar for any 
        week is--
                    ``(A) more than 111 percent of the average bulk, 
                FOB factory price for refined beet sugar during fiscal 
                years 1990 through 1994 (as reported in Appendix Table 
                11 of Agricultural Economic Report No. 711 of the 
                Economic Research Service), the Secretary may increase 
                the marketing assessment bases of cane sugar refiners 
                and sugar beet processors established under subsections 
                (a) through (d); or
                    ``(B) less than 104 percent of the price referred 
                to in subparagraph (A), the Secretary shall decrease--
                            ``(i) the marketing assessment bases of 
                        cane sugar refiners and sugar beet processors 
                        established under subsections (a) through (d); 
                        and
                            ``(ii) the marketing assessment bases of 
                        cane sugar processors established under this 
                        section;
                to the extent necessary to maintain the minimum access 
                level for imports of sugar set forth in Additional Note 
                5 to Chapter 17 of the Harmonized Tariff Schedule of 
                the United States.
            ``(3) Distribution to processors.--In the case of any 
        increase or decrease in assessment bases, the share of each 
        processor of an assessment base under section 359d, and each 
        proportionate share established under section 359f(b), shall be 
        increased or decreased by the same percentage that the 
        assessment base is increased or decreased.
            ``(4) Reductions.--If an assessment base for a fiscal year 
        is required to be reduced during the fiscal year under this 
        subsection and the quantity of sugar marketed, including sugar 
        pledged as collateral for a price support loan under section 
        206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) and 
        acquired by the Commodity Credit Corporation, for the fiscal 
        year at the time of the reduction by any individual processor 
        covered by the assessment base exceeds the reduced assessment 
        base of the processor, the assessment base next established for 
        the processor shall be reduced by the quantity of the excess 
        sugar marketed.
    ``(g) Filling Sugarcane and Sugar Beet Assessment Bases.--
            ``(1) Cane sugar.--Each marketing assessment base for cane 
        sugar established under this section may be filled only with 
        sugar processed from domestically grown sugarcane or imported 
        raw cane sugar.
            ``(2) Beet sugar.--Each marketing assessment base for beet 
        sugar established under this section may be filled only with 
        sugar processed from domestically grown sugar beets.

``SEC. 359d. DISTRIBUTION OF MARKETING ASSESSMENT BASES.

    ``(a) Distribution to Processors and Refiners.--
            ``(1) In general.--Subject to the other provisions of this 
        subsection, during each of fiscal years 1997 through 2003, the 
        Secretary shall distribute each assessment base among the 
        processors or cane sugar refiners covered by the base in a 
        fair, efficient, and equitable manner, as determined by the 
        Secretary.
            ``(2) After fiscal year 1997.--Except as necessary to 
        provide for new beet sugar processors or refiners of cane sugar 
        under paragraph (5), the Secretary shall distribute any 
        increase or decrease in the assessment bases for processors of 
        beet sugar or refiners of cane sugar for fiscal years after 
        fiscal year 1997 in proportion to the shares of the beet sugar 
        processors or refiners of cane sugar for fiscal year 1997.
            ``(3) Cane sugar assessment base.--In distributing the cane 
        sugar assessment base among processors, the Secretary shall 
        take into consideration processing capacity, past marketings of 
        sugar, and the ability of each processor to market sugar 
        covered by the portion of the base distributed.
            ``(4) Sugar beet assessment base.--In distributing the 
        sugar beet assessment base among processors of sugar beets, the 
        Secretary shall assign processor bases in accordance with the 
        highest quantity of each processor of sugar produced in any 
        year from sugar beets produced from the 1990 through 1994 
        crops.
            ``(5) New processors and refiners.--In making distributions 
        under this subsection, the Secretary shall make reasonable 
        provision for new processors and refiners.
    ``(b) Filling Cane Sugar Assessment Bases.--Except as otherwise 
provided in section 359e, a State cane
 sugar assessment base established under section 359c(e) for a fiscal 
year may be filled only with sugar processed from sugarcane grown in 
the State covered by the assessment base.

``SEC. 359e. REASSIGNMENT OF DEFICITS.

    ``(a) Estimates of Deficits.--The Secretary shall, in a timely 
manner, determine whether, in view of then current inventories of 
sugar, the estimated production of sugar and expected marketings, and 
other pertinent factors--
            ``(1) any processor of sugarcane will be unable to market 
        the sugar covered by the portion of the State cane sugar 
        assessment base distributed to the processor;
            ``(2) any processor of sugar beets will be unable to market 
        sugar covered by the portion of the beet sugar assessment base 
        distributed to the processor; and
            ``(3) any cane sugar refiner will be unable to market sugar 
        covered by the portion of the refined cane sugar assessment 
        base distributed to the refiner.
    ``(b) Reassignment of Deficits.--
            ``(1) Cane sugar.--If the Secretary determines that any 
        sugarcane processor who has received a share of a State cane 
        sugar base will be unable to market the share of the processor 
        of the allotment of the State for the fiscal year--
                    ``(A) the Secretary first shall reassign the 
                estimated quantity of the deficit to the bases of other 
                processors within the State, depending on the capacity 
                of each other processor to fill the portion of the 
                deficit to be assigned to the processor and taking into 
                account the interests of producers served by the 
                processors;
                    ``(B) if after the reassignments the deficit cannot 
                be completely eliminated, the Secretary shall reassign 
                the estimated quantity of the deficit proportionately 
                to the bases for other cane sugar States, depending on 
                the capacity of each other State to fill the portion of 
                the deficit to be assigned to the State, with the 
                reassigned quantity to each State to be distributed 
                among processors in the State in proportion to the 
                bases of the processors; and
                    ``(C) if after the reassignments, the deficit 
                cannot be completely eliminated, the Secretary shall 
                reassign the remainder to imports.
            ``(2) Beet sugar.--If the Secretary determines that a sugar 
        beet processor who has received a share of the beet sugar 
        assessment base will be unable to market the share--
                    ``(A) the Secretary first shall reassign the 
                estimated quantity of the deficit to the bases for 
                other sugar beet processors, depending on the capacity 
                of each other processor to fill the portion of the 
                deficit to be assigned to the processor and taking into 
                account the interests of producers served by the 
                processors; and
                    ``(B) if after the reassignments, the deficit 
                cannot be completely eliminated, the Secretary shall 
                reassign the remainder to imports.
            ``(3) Refined cane sugar.--If the Secretary determines that 
        a cane sugar refiner who has received a share of the refined 
        cane sugar assessment base will be unable to market the share, 
        the Secretary shall promptly reassign the estimated quantity of 
        the deficit to the bases of other refiners, as the Secretary 
        considers appropriate.
            ``(4) Corresponding increase.--The base of each processor 
        or refiner receiving a reassigned quantity of an assessment 
        base under this subsection for a fiscal year shall be increased 
        to reflect the reassignment. The Secretary shall, subject to 
        conditions specified by regulation, provide that marketings in 
        the next fiscal year of deficits reassigned in the last quarter 
        of any fiscal year shall not count against the base of the 
        processor or refiner for the next fiscal year.

``SEC. 359f. PROVISIONS APPLICABLE TO PRODUCERS.

    ``(a) Processor Assurances.--During each of fiscal years 1997 
through 2003, the Secretary shall obtain from the processors such 
assurances as the Secretary considers adequate that the assessment base 
will be shared among producers served by the processor in a fair and 
equitable manner that adequately reflects the production histories of 
producers. Any dispute between a processor and a producer, or group of 
producers, with respect to the sharing of the base of the processor 
shall be resolved through arbitration by the Secretary on the request 
of either party.
    ``(b) Proportionate Shares of Certain State Bases.--
            ``(1) In general.--
                    ``(A) States affected.--In any case in which a 
                State share of an assessment base is established under 
                section 359c(e) and there are in excess of 250 
                producers in the State (other than Puerto Rico), the 
                Secretary shall make a determination under subparagraph 
                (B).
                    ``(B) Determination.--The Secretary shall 
                determine, for each State base described in 
                subparagraph (A), whether the production of sugarcane, 
                in the absence of proportionate shares, will be greater 
                than the quantity needed to enable processors to fill 
                the assessment base and provide a normal carryover 
                inventory.
            ``(2) Establishment of proportionate shares.--If the 
        Secretary determines under paragraph (1) that the quantity of 
        sugar processed from all crops by all processors covered by a 
        State base for a fiscal year will be in excess of the quantity 
        needed to enable processors to fill the base for the fiscal 
        year and provide a normal carryover inventory of sugar, the 
        Secretary shall establish a proportionate share for each 
        sugarcane producing farm that limits the acreage of sugarcane 
        that may be harvested on the farm for sugar or seed during the 
        fiscal year the base is in effect as provided in this 
        subsection. Each such proportionate share shall be subject to 
        adjustment under paragraph (7) and section 359g(c).
            ``(3) Method of determining proportionate shares.--For 
        purposes of determining proportionate shares for any crop of 
        sugarcane:
                    ``(A) Establishment of state's per-acre yield.--The 
                Secretary shall establish the State's per-acre yield 
                goal for a crop at a level (not less than the average 
                per-acre yield in the State for the preceding 5 years, 
                as determined by the Secretary) that will ensure an 
                adequate net return per pound to sugarcane produced in 
                the State, taking into consideration any available 
                production research data that the Secretary considers 
                relevant.
                    ``(B) Adjustment of per-acre yield goal.--The 
                Secretary shall adjust the per-acre yield goal by the 
                average recovery rate of sugar produced from sugarcane 
                by processors in the State.
                    ``(C) State acreage base.--The Secretary shall 
                convert the State base for the fiscal year involved 
                into a State acreage base for the crop by dividing the 
                State base by the per-acre yield goal for the State, as 
                established under subparagraph (A) and as further 
                adjusted under subparagraph (B).
                    ``(D) Uniform reduction percentage.--The Secretary 
                shall establish a uniform reduction percentage for the 
                crop by dividing the State acreage base, as determined 
                for the crop under subparagraph (C), by the sum of all 
                adjusted acreage bases in the State, as determined by 
                the Secretary.
                    ``(E) Proportionate share of farm of sugarcane 
                acreage.--The uniform reduction percentage for the 
                crop, as determined under subparagraph (D), shall be 
                applied to the acreage base for each sugarcane-
                producing farm in the State to determine the 
                proportionate share of the farm of sugarcane acreage 
                that may be harvested for sugar or seed.
            ``(4) Acreage base.--For purposes of this subsection, the 
        acreage base for each sugarcane-producing farm shall be 
        determined by the Secretary, as follows:
                    ``(A) In general.--The acreage base for any farm 
                shall be the number of acres that is equal to the 
                average of the acreage planted and considered planted 
                for harvest for sugar or seed on the farm in each of 
                the 5 crop years preceding the fiscal year the 
                proportionate share will be in effect.
                    ``(B) Disasters.--Acreage planted to sugarcane that 
                producers on a farm were unable to harvest to sugarcane 
                for sugar or seed because of drought, flood, other 
                natural disaster, or other condition beyond the control 
                of the producers may be considered as harvested for the 
                production of sugar or seed for purposes of this 
                paragraph.
            ``(5) Violation.--
                    ``(A) In general.--If proportionate shares are in 
                effect in a State for a crop of sugarcane, producers on 
                a farm shall not knowingly harvest, or allow to be 
                harvested, for sugar or seed an acreage of sugarcane in 
                excess of the proportionate share of the farm for the 
                fiscal year, or otherwise violate proportionate share 
                regulations issued by the Secretary under section 
                359h(a).
                    ``(B) Determination of violation.--No producer 
                shall be considered to have violated subparagraph (A) 
                unless the processor of the sugarcane harvested by the 
                producer from acreage in excess of the proportionate 
                share of the farm markets a quantity of sugar that 
                exceeds the allocation of the processor for a fiscal 
                year.
                    ``(C) Civil penalty.--Any producer on a farm who 
                violates subparagraph (A) by knowingly harvesting, or 
                allowing to be harvested, an acreage of sugarcane in 
                excess of the proportionate share of the farm shall be 
                liable to the Commodity Credit Corporation for a civil 
                penalty equal to 1\1/2\ times the United States market 
                value of the quantity of sugar that is marketed by the 
                processor of the sugarcane in excess of the allocation 
                of the processor for the fiscal year. The Secretary 
                shall prorate penalties imposed under this subparagraph 
                in a fair and equitable manner among all the producers 
                of sugarcane harvested from excess acreage that is 
                acquired by the processor.
            ``(6) Waiver.--Notwithstanding paragraph (5), the Secretary 
        may authorize the county and State committees established under 
        section 8(b) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other 
        proportionate share requirements in cases in which lateness or 
        failure to meet the other requirements does not affect 
        adversely the operation of proportionate shares.
            ``(7) Adjustments.--If the Secretary determines that, 
        because of a natural disaster or other condition beyond the 
        control of producers that adversely affects a crop of sugarcane 
        subject to proportionate shares, the quantity of sugarcane 
        produced by producers subject to the proportionate shares will 
        not be sufficient to enable processors in the State to meet the 
        cane sugar base of the State and provide a normal carryover 
        inventory of sugar, the Secretary may uniformly allow producers 
        to harvest a quantity of sugarcane in excess of the 
        proportionate share of the producers, or suspend proportionate 
        shares entirely, as necessary to enable processors to meet the 
        State base and provide a normal carryover inventory of sugar.

``SEC. 359g. SPECIAL RULES.

    ``(a) Transfer of Acreage Base History.--For the purpose of 
establishing proportionate shares for sugarcane farms under section 
359f, the Secretary, on application of any producer, with the written 
consent of all owners of a farm, may transfer the acreage base history 
of the farm to any other parcels of land of the applicant.
    ``(b) Preservation of Acreage Base History.--If for reasons beyond 
the control of a producer on a farm, the producer is unable to harvest 
an acreage of sugarcane for sugar or seed with respect to all or a 
portion of the proportionate share established for the farm under 
section 359f, the Secretary, on the application of the producer and
 with the written consent of all owners of the farm, may preserve for a 
period of not more than 3 consecutive years the acreage base history of 
the farm to the extent of the proportionate share involved. The 
Secretary may permit the proportionate share to be redistributed to 
other farms, except that no acreage base history for purposes of 
establishing acreage bases shall accrue to the other farms by virtue of 
the redistribution of the proportionate share.
    ``(c) Revisions of Distributions and Proportionate Shares.--The 
Secretary, after such notice as the Secretary by regulation may 
prescribe, may revise or amend any distribution of a marketing 
assessment base under section 359d, or any proportionate share 
established for a farm under section 359f, on the same basis as the 
initial distribution or proportionate share was required to be 
established.

``SEC. 359h. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S 
              DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED STATES 
              ATTORNEYS.

    ``(a) Regulations.--The Secretary or the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as are 
necessary to carry out this part.
    ``(b) Publication in Federal Register.--Each determination issued 
by the Secretary to establish or adjust a marketing assessment base 
under this part shall be promptly published in the Federal Register and 
shall be accompanied by a statement of the reasons for the 
determination.
    ``(c) Violation.--Any person knowingly violating any regulation of 
the Secretary issued under subsection (a) shall be subject to a civil 
penalty of not more than $5,000 for each violation.
    ``(d) Jurisdiction of Courts; United States Attorneys.--
            ``(1) Jurisdiction of courts.--A district court of the 
        United States shall have jurisdiction specifically to enforce, 
        and to prevent and restrain any person from violating, this 
        part or any regulation issued under this part.
            ``(2) United states attorneys.--On request of the 
        Secretary, a United States attorney, in the district of the 
        attorney, shall institute a proceeding to enforce the remedies 
        and to collect the penalties provided for in this part. The 
        Secretary may elect not to refer to a United States attorney 
        any violation of this part or a regulation if the Secretary 
        determines that the administration and enforcement of this part 
        would be adequately served by written notice or warning to any 
        person committing the violation.
    ``(e) Nonexclusivity of Remedies.--The remedies and penalties 
provided for in this part shall be in addition to, and not exclusive 
of, any remedies or penalties existing at law or in equity.

``SEC 359i. APPEALS.

    ``(a) In General.--An appeal may be taken to the Secretary from any 
decision under section 359d establishing allocations of marketing 
assessment bases, or under section 359f, by any person adversely 
affected by reason of any such decision.
    ``(b) Procedure.--
            ``(1) Notice of appeal.--Any appeal from such a decision 
        shall be taken by filing with the Secretary, not later than 20 
        days after the decision is effective, notice in writing of the 
        appeal and a statement of the reasons for the appeal. Unless a 
        later date is specified by the Secretary as part of the 
        decision of the Secretary, the decision shall be considered to 
        be effective as of the date on which announcement of the 
        decision is made. The Secretary shall deliver a copy of any 
        notice of appeal to each person shown by the records of the 
        Secretary to be adversely affected by reason of the decision 
        appealed. After delivery of notice, the Secretary shall at all 
        times permit any such person to inspect and make copies of the 
        statement of the reasons of the appellant for the appeal and 
        shall on application permit the person to intervene in the 
        appeal.
            ``(2) Hearing.--The Secretary shall provide each appellant 
        an opportunity for a hearing before an administrative law judge 
        in accordance with sections 554 and 556 of title 5, United 
        States Code. The expenses for conducting the hearing shall be 
        reimbursed by the Commodity Credit Corporation.

``SEC. 359j. ADMINISTRATION.

    ``(a) Use of Certain Agencies.--In carrying out this part, the 
Secretary may use the services of local committees of sugarcane or 
sugar beet producers or sugarcane or sugar beet processors, State and 
county committees established under section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), and 
departments and agencies of the United States Government.
    ``(b) Use of Commodity Credit Corporation.--The Secretary shall use 
the services, facilities, funds, and authorities of the Commodity 
Credit Corporation to carry out sections 359a through 359i.
    ``(c) Definitions of United States and State.--Notwithstanding 
section 301, for purposes of this part, the terms `United States' and 
`State' mean the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.''.

SEC. 703. PREVENTION OF SUGAR LOAN FORFEITURES.

    Section 902(c)(2)(A) of the Food Security Act of 1985 (Public Law 
99-198; 7 U.S.C. 1446g note) is amended by striking ``1995'' and 
inserting ``2002''.
                TITLE VIII--GENERAL COMMODITY PROVISIONS

           Subtitle A--Amendments to Agricultural Act of 1949

SEC. 801. DEFICIENCY AND LAND DIVERSION PAYMENTS.

    Section 114 of the Agricultural Act of 1949 (7 U.S.C. 1445j) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``1997'' and 
                inserting ``2002''; and
                    (B) in paragraph (2)(F), by striking clause (iii) 
                and inserting the following:
                            ``(iii) 50 percent of the projected payment 
                        rate;'';
            (2) in subsection (b), by striking ``1995'' and inserting 
        ``2002''; and
            (3) in subsection (c), by striking ``1997'' and inserting 
        ``2002''.

SEC. 802. ADJUSTMENT OF ESTABLISHED PRICES.

    Section 402(b) of the Agricultural Act of 1949 (7 U.S.C. 1422(b)) 
is amended by striking ``1995'' and inserting ``2002''.

SEC. 803. ADJUSTMENT OF SUPPORT PRICES.

    Section 403(c) of the Agricultural Act of 1949 (7 U.S.C. 1423(c)) 
is amended by striking ``1995'' and inserting ``2002''.

SEC. 804. PROGRAM OPTION FOR 2003 AND SUBSEQUENT CROPS.

    Section 406 of the Agricultural Act of 1949 (7 U.S.C. 1426) is 
amended by striking subsection (b) and inserting the following:
    ``(b) Program Option for 2003 and Subsequent Crops.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Secretary may offer an option to producers of each of 
        the 2003 and subsequent crops of wheat, feed grains, upland 
        cotton, extra long staple cotton, rice, sugar, peanuts, and 
        oilseeds to participate in commodity price support, production 
        adjustment, and payment programs as provided in this 
        subsection.
            ``(2) Terms and conditions.--The Secretary may offer the 
        programs based on such terms and conditions as are provided 
        producers of the commodities for the 2002 crop year in 
        accordance with this Act, as determined by the Secretary. Any 
        established price or loan and purchase level made available in 
        accordance with this subsection shall be established at the 
        same level as the level established for the 2002 crop year or 
        using the same terms and conditions as are provided for the 
        commodity for the 2002 crop year.
            ``(3) Final announcements.--The Secretary may offer each of 
        the programs provided for by this subsection if the Secretary 
        has not made final announcement of the terms of the commodity 
        price support, production adjustment, or payment programs for 
        the 2003 crops of the commodities referred to in paragraph (1) 
        on or before November 1, 2002.
            ``(4) Commodity credit corporation.--The Secretary may use 
        the funds, facilities and authorities of the Commodity Credit 
        Corporation to carry out this subsection.''.

SEC. 805. APPLICATION OF TERMS IN THE AGRICULTURAL ACT OF 1949.

    Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C. 
1428(k)(3)) is amended by striking ``1995'' and inserting ``2002''.

SEC. 806. DOUBLE CROPPING.

    Title IV of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is 
amended by adding at the end the following:

``SEC. 428. DOUBLE CROPPING.

    ``(a) Waiver of Conservation Use Requirements.--Effective for each 
of the 1996 through 2002 crops of wheat, feed grains, cotton, and rice, 
the requirements of sections 107B(e), 105B(e), 103B(e), 103(h)(5), and 
101B(e) concerning acreage that must be devoted to conservation uses 
and administration of the conserving use acres shall not be applicable 
to the producers of a program crop (as defined in section 502(3)) on a 
farm as of the normal harvest date for the program crop, as determined 
by the Secretary, if, under an established practice of double cropping, 
the producers of the program crop on the farm plant for harvest in the 
same calendar year in which the program crop is harvested a crop that 
is not a program crop.
    ``(b) Regulations.--The Secretary shall issue such regulations as 
are necessary to carry out this section.''.

SEC. 807. ACREAGE BASE AND YIELD SYSTEM.

    (a) Crop Acreage Bases.--Section 503 of the Agricultural Act of 
1949 (7 U.S.C. 1463) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2) and inserting the 
                following:
            ``(2) Limitation.--The sum of the crop acreage bases and 
        historical soybean acreage on the farm may not exceed the 
        cropland on the farm, except to the extent there is an 
        established practice of double cropping on the farm.''; and
                    (B) by adding at the end the following:
            ``(4) Historical soybean acreage.--
                    ``(A) In general.--The Secretary shall provide for 
                the establishment and maintenance of a historical 
                soybean acreage for each farm.
                    ``(B) Quantity.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the historical soybean acreage for 
                        a farm for a crop year shall be equal to the 
                        average of the acreage planted to soybeans for 
                        harvest on the farm in each of the previous 5 
                        crop years.
                            ``(ii) Exception.--In determining the 
                        historical soybean acreage for a farm for a 
                        crop year, the Secretary shall exclude from the 
                        acreage any soybean plantings that were 
                        considered planted to a program crop or are 
                        planted for harvest on a crop acreage base in 
                        accordance with section 504.'';
            (2) in subsection (b), by striking paragraph (2) and 
        inserting the following:
            ``(2) Cotton and rice.--In the case of upland cotton and 
        rice, the crop acreage base for a crop for
         a crop year shall be equal to the average of the acreage 
planted and considered planted to the crop for harvest on the farm in 
each of the 3 crop years preceding the crop year.'';
            (3) in subsection (c)--
                    (A) in paragraph (3), by striking ``1997'' and 
                inserting ``2002'';
                    (B) in paragraph (7), by striking ``and'' at the 
                end;
                    (C) in paragraph (8), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(9) any acreage on the farm that is planted in accordance 
        with subsection (i).''; and
            (4) by striking subsection (h) and inserting the following:
    ``(h) Adjustment of Bases.--The county committee, in accordance 
with regulations prescribed by the Secretary, may adjust any crop 
acreage base for any program crop for any farm if the crop acreage base 
for the crop on the farm would otherwise be adversely affected by a 
condition or occurrence beyond the control of the producer.
    ``(i) Special Exemption for Crop Management Purposes.--
            ``(1) Planting not-for-harvest in excess of permitted 
        acreage.--Notwithstanding any other provision of this Act, the 
        Secretary may provide that producers of a program crop on a 
        farm who are participating in the production adjustment program 
        for the program crop under this Act may plant the program crop 
        in a quantity that exceeds the permitted acreage for the crop 
        without losing the eligibility of the producers for loans, 
        purchases, or payments with respect to the crop under this Act 
        if the acreage planted to the program crop on the farm in 
        excess of the permitted acreage--
                    ``(A) is planted as part of a crop management plan 
                that is designed to maintain the important role of 
                plant varieties that possess genetic qualities aimed at 
                reducing the dependence of agriculture on crop 
                protection materials to suppress weeds, diseases, and 
                insects;
                    ``(B) does not exceed 10 percent of the crop 
                acreage base of the farm for the program crop;
                    ``(C) is not planted to a crop that is harvested; 
                and
                    ``(D) is not planted to a variety of the program 
                crop that possesses transgenic characteristics.
            ``(2) Optional minimum acreage for genetically improved 
        transgenic variety.--The Secretary may require producers on a 
        farm, to be eligible to plant in excess of the permitted 
        acreage of the producers under this subsection, to plant not 
        less than 90 percent of the permitted acreage of the producers 
        on the farm to a genetically improved transgenic variety of the 
        program crop.
            ``(3) Additional authority.--Any authority to plant a 
        program crop in excess of the permitted acreage for the crop 
        under this subsection shall be in addition to the authority 
        provided under subsection (d), (e), and (f).''.
    (b) Planting Flexibility.--Section 504 of the Act (7 U.S.C. 1464) 
is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Limitation on Acreage.--The quantity of the crop acreage base 
that may be planted to a commodity, other than the specific program 
crop, under this section may not exceed 100 percent of the crop acreage 
base.'';
            (2) in subsection (d)--
                    (A) by striking ``Notwithstanding'' and inserting 
                ``Except as provided in subsection (f) and 
                notwithstanding''; and
                    (B) in paragraph (1), by striking ``25 percent'' 
                and inserting ``100 percent'';
            (3) in subsection (e)(2)(A), by striking ``25 percent'' and 
        inserting ``100 percent''; and
            (4) by adding at the end the following:
    ``(f) Two-Way Flexibility.--
            ``(1) Planting on historical soybean acreage.--
        Notwithstanding any other provision of this Act, producers of a 
        program crop on a farm who are participating in the production 
        adjustment program for the program crop under this Act shall be 
        allowed to plant the program crop in a quantity that exceeds 
        the permitted acreage for the crop without losing the 
        eligibility of the producers for loans, purchases, or payments 
        with respect to the crop under this Act if the acreage planted 
        to the program crop on the farm in excess of the permitted 
        acreage does not exceed 25 percent of the historical soybean 
        acreage on the farm for the crop.
            ``(2) Additional flexibility.--Any authority to plant a 
        program crop in excess of the permitted acreage for the crop 
        under this subsection shall be in addition to authority 
        provided under subsection (d).
            ``(3) Limitation.--The Secretary may limit the application 
        of this subsection with respect to a program crop if the 
        Secretary determines the limitation to be necessary to prevent 
        an increase in the acreage limitation program that would 
        otherwise be implemented in accordance with sections 101B, 
        103B, 105B, and 107B during a crop year for the crop.''.
    (c) Farm Program Payment Yields.--Section 505(b) of the Act (7 
U.S.C. 1465(b)) is amended--
            (1) in subsection (b)--
                    (A) in paragraphs (1) and (2), by striking ``1997'' 
                each place it appears and inserting ``2002''; and
                    (B) in paragraph (3), by striking ``1981 through 
                1985 crop years (or, as appropriate, the 1986 through 
                1990 crop years)'' and inserting ``applicable crop 
                years, as determined by the Secretary''; and
            (2) in subsection (c)(2)--
                    (A) by inserting ``(if applicable)'' after the 
                ``1986 crop year''; and
                    (B) by inserting ``(as applicable)'' after 
                ``subsequent crop years''.
    (d) Crops.--Section 509 of the Act (7 U.S.C. 1469) is amended by 
striking ``1997'' and inserting ``2002''.

             Subtitle B--Miscellaneous Commodity Provisions

SEC. 811. PAYMENT LIMITATIONS.

    Title X of the Food Security Act of 1985 (Public Law 99-198; 99 
Stat. 1444) is amended--
            (1) in paragraphs (1)(A), (1)(B), and (2)(A) of section 
        1001 (7 U.S.C. 1308), by striking ``1997'' each place it 
        appears and inserting ``2002''; and
            (2) in section 1001C(a) (7 U.S.C. 1308-3(a)), by striking 
        ``1997'' each place it appears and inserting ``2002''.

SEC. 812. NORMALLY PLANTED ACREAGE.

    Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 
1309) is amended by striking ``1995'' each place it appears in 
subsections (a), (b)(1), and (c) and inserting ``2002''.

SEC. 813. NORMAL SUPPLY.

    Section 1019 of the Food Security Act of 1985 (7 U.S.C. 1310a) is 
amended by striking ``1995'' and inserting ``2002''.

SEC. 814. DETERMINATIONS OF THE SECRETARY.

    Section 1017(b) of the Food Security Act of 1985 (Public Law 99-
198; 7 U.S.C. 1385 note) is amended by striking ``1995'' and inserting 
``2002''.

SEC. 815. OPTIONS PILOT PROGRAM.

    The Options Pilot Program Act of 1990 (subtitle E of title XI of 
Public Law 101-624; 104 Stat. 3518; 7 U.S.C. 1421 note) is amended--
            (1) in subsections (a) and (b) of section 1153, by striking 
        ``1995'' each place it appears and inserting ``2002''; and
            (2) in section 1154(b)(1)(A), by striking ``1995'' each 
        place it appears and inserting ``2002''.

SEC. 816. NATIONAL AGRICULTURAL COST OF PRODUCTION STANDARDS REVIEW 
              BOARD.

    Section 1014 of the Agriculture and Food Act of 1981 (7 U.S.C. 
4110) is amended by striking ``1995'' and inserting ``2002''.

                   Subtitle C--Conforming Amendments

SEC. 821. CONFORMING AMENDMENTS.

    (a) Section 1001(2)(B) of the Food Security Act of 1985 (7 U.S.C. 
1308(2)(B)) is amended by striking clause (iv) and inserting the 
following:
            ``(iv) any deficiency payment received for a crop of feed 
        grains under section 105B(c)(1) of the Agricultural Act of 1949 
        as the result of a reduction of the loan level for the crop 
        under section 105B(a)(3) of the Act;''.
    (b) Section 1001(c) of the Food and Agriculture Act of 1977 (7 
U.S.C. 1309(c)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) the crop acreage base for the farm established under 
        section 503 of the Agricultural Act of 1949 (7 U.S.C. 1463).''.
    (c) Section 114(c) of the Agricultural Act of 1949 (7 U.S.C. 
1445j(c)) is amended by striking ``section 107B(c)(1)(B)(ii), 107B(p), 
or 105B(c)(1)(B)(ii)'' and inserting ``section 107B(c)(1)(B) or 
105B(c)(1)(B)''.

                        Subtitle D--Application

SEC. 831. APPLICATION.

    (a) Crops.--Except as otherwise specifically provided this Act, 
this Act and the amendments made by this Act shall apply beginning with 
the 1996 crop of an agricultural commodity.
    (b) Prior Crops.--Except as otherwise specifically provided and 
notwithstanding any other provision of law, this Act and the amendments 
made by this Act shall not affect the authority of the Secretary of 
Agriculture to carry out a price support, production adjustment, or 
payment program for--
            (1) any of the 1991 through 1995 crops of an agricultural 
        commodity established under a provision of law as in effect 
        immediately before the enactment of this Act; or
            (2) the 1996 crop of an agricultural commodity established 
        under section 406(b) of the Agricultural Act of 1949 (as in 
        effect immediately before the effective date of the amendment 
        made by section 804).
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