[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1256 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1256

 To provide marketing loans, loan deficiency payments, and a flexible 
acreage base for the 1996 through 2002 crops of wheat, feed grains, and 
oilseeds, to establish an environmental quality incentives program, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 18 (legislative day, September 5), 1995

   Mr. Daschle (for himself, Mr. Leahy, Mr. Kerrey, Mr. Harkin, Mr. 
Dorgan, Mr. Conrad, Mr. Wellstone, Mr. Exon, Mr. Baucus, and Mr. Ford) 
introduced the following bill; which was read twice and referred to the 
           Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To provide marketing loans, loan deficiency payments, and a flexible 
acreage base for the 1996 through 2002 crops of wheat, feed grains, and 
oilseeds, to establish an environmental quality incentives program, 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 ``Farm Security Act 
of 1995''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--COMMODITY PROGRAMS

Sec. 101. Findings.
Sec. 102. Marketing loans and loan deficiency payments for 1996 through 
                            2002 crops of wheat, feed grains, and 
                            oilseeds.
Sec. 103. Flexible acreage base for wheat, feed grains, and oilseeds.
Sec. 104. Payment limitations.
Sec. 105. Suspension of permanent price support authority.
Sec. 106. Extension of related price support provisions.
Sec. 107. Effective date.
                         TITLE II--CONSERVATION

Sec. 201. Environmental quality incentives program.

                      TITLE I--COMMODITY PROGRAMS

SEC. 101. FINDINGS.

    Congress finds that--
            (1) farm programs must provide income protection for 
        producers of agricultural commodities to provide the required 
        stability to ensure survival of farming for the future;
            (2) small- and medium-sized farms represent the backbone of 
        American agriculture and, as a result, farm program benefits 
        must be targeted to these operations to protect this valuable 
        economic resource;
            (3) to meet the needs of the growing world market, American 
        agriculture through the farm programs, must be given the 
        flexibility to adjust the types of crops;
            (4) current farm programs are an impediment to producers 
        who wish to change their production practices in response to 
        the market;
            (5) since 1985, farm programs have become too complex to be 
        effectively administered by the Secretary or understood by 
        producers; and
            (6) farm programs must be simple and targeted to be 
        effective.

SEC. 102. MARKETING LOANS AND LOAN DEFICIENCY PAYMENTS FOR 1996 THROUGH 
              2002 CROPS OF WHEAT, FEED GRAINS, AND OILSEEDS.

    Title I of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is 
amended by adding the end the following:

``SEC. 116. MARKETING LOANS AND LOAN DEFICIENCY PAYMENTS FOR 1996 
              THROUGH 2002 CROPS OF WHEAT, FEED GRAINS, AND OILSEEDS.

    ``(a) Definitions.--In this section:
            ``(1) Covered commodities.--The term `covered commodities' 
        means wheat, feed grains, and oilseeds.
            ``(2) Feed grains.--The term `feed grains' means corn, 
        grain sorghum, barley, oats, millet, rye, or as designated by 
        the Secretary, other feed grains.
            ``(3) Oilseeds.--The term `oilseeds' means soybeans, 
        sunflower seed, rapeseed, canola, safflower, flaxseed, mustard 
        seed, or as designated by the Secretary, other oilseeds.
            ``(4) Simple average price.--The term `simple average 
        price' means the average price received by producers for the 
        immediately preceding marketing year, based on the latest 
        information available to the Secretary at the time of the 
        determination.
    ``(b) Adjustment Account.--
            ``(1) Definition of payment bushel of production.--In this 
        subsection, the term `payment bushel of production' means--
                    ``(A) in the case of wheat, \7/10\ of a bushel;
                    ``(B) in the case of corn, a bushel; and
                    ``(C) in the case of other feed grains, a quantity 
                determined by the Secretary.
            ``(2) Establishment.--The Secretary shall establish an 
        Adjustment Account (referred to in this subsection as the 
        `Account') for making--
                    ``(A) payments to producers of the 1996 through 
                2002 crops of covered commodities who participate in 
                the marketing loan program established under subsection 
                (c); and
                    ``(B) payments to producers of the 1994 and 1995 
                crops of covered commodities that are authorized, but 
                not paid, under sections 105B and 107B prior to the 
                date of enactment of this section.
            ``(3) Amount in account.--The Secretary shall transfer from 
        funds of the Commodity Credit Corporation into the Account--
                    ``(A) $4,500,000,000 for fiscal year 1996; and
                    ``(B) $3,300,000,000 for each of fiscal years 1997 
                through 2002;
        to remain available until expended.
            ``(4) Payments.--The Secretary shall use funds in the 
        Account to make payments to producers of wheat and feed grains 
        in accordance with this subsection.
            ``(5) Tier 1 support.--
                    ``(A) In general.--The producers on a farm referred 
                to in paragraph (2) shall be entitled to a payment 
                computed by multiplying--
                            ``(i) the payment quantity determined under 
                        subparagraph (B); by
                            ``(ii) the payment factor determined under 
                        subparagraph (C).
                    ``(B) Payment quantity.--
                            ``(i) In general.--Subject to clause (ii), 
                        the payment quantity for payments under 
                        subparagraph (A) shall be determined by the 
                        Secretary based on--
                                    ``(I) 90 percent of the 5-year 
                                average of the quantity of wheat and 
                                feed grains produced on the farm;
                                    ``(II) an adjustment to reflect any 
                                disaster or other circumstance beyond 
                                the control of the producers that 
                                adversely affected production of wheat 
                                or feed grains, as determined by the 
                                Secretary; and
                                    ``(III) an adjustment for planting 
                                resource conservation crops on the crop 
                                acreage base for covered commodities, 
                                and adopting conserving uses, on the 
                                base not enrolled in the environmental 
                                reserve program provided in paragraph 
                                (6).
                            ``(ii) Limitations.--The quantity 
                        determined under clause (i) for an individual, 
                        directly or indirectly, shall not exceed 22,000 
                        payment bushels of wheat or feed grains and may 
                        be adjusted by the Secretary to reflect the 
                        availability of funds.
                    ``(C) Payment factor.--
                            ``(i) Wheat.--The payment factor for wheat 
                        under subparagraph (A) shall be equal to the 
                        difference between a price established by the 
                        Secretary, of not to exceed $4.00 per bushel, 
                        and the greater of--
                                    ``(I) the marketing loan rate for 
                                the crop of wheat; or
                                    ``(II) the average domestic price 
                                for wheat for the crop for the calendar 
                                year in which the crop is normally 
                                harvested.
                            ``(ii) Corn.--The payment factor for corn 
                        under subparagraph (A) shall be equal to the 
                        difference between a price established by the 
                        Secretary, of not to exceed $2.75 per bushel, 
                        and the greater of--
                                    ``(I) the marketing loan rate for 
                                the crop of corn; or
                                    ``(II) the average domestic price 
                                for corn for the crop for the calendar 
                                year in which the crop is normally 
                                harvested;
                            ``(iii) Other feed grains.--The payment 
                        factor for other feed grains under subparagraph 
                        (A) shall be established by the Secretary at 
                        such level as the Secretary determines is fair 
                        and reasonable in relation to the payment 
                        factor for corn.
                    ``(D) Advance payment.--The Secretary shall make 
                available to producers on a farm 50 percent of the 
                projected payment under this subsection at the time the 
                producers agree to participate in the program.
            ``(6) Environmental reserve program.--
                    ``(A) In general.--The Secretary may enter into 1 
                to 5 year contracts with producers on a farm referred 
                to in paragraph (2) for the purposes of enrolling 
                flexible acreage base for conserving use purposes.
                    ``(B) Limitation.--Flexible acreage base enrolled 
                in the environmental reserve program shall not be 
                eligible for benefits provided in paragraph (5)(B).
    ``(c) Marketing Loans.--
            ``(1) In general.--The Secretary shall make available to 
        producers on a farm marketing loans for each of the 1996 
        through 2002 crops of covered commodities produced on the farm.
            ``(2) Eligibility.--
                    ``(A) In general.--To be eligible for a loan under 
                this subsection, the producers on a farm may not plant 
                covered commodities on the farm in excess of the 
                flexible acreage base of the farm determined under 
                section 502.
                    ``(B) Amount.--The Secretary shall provide 
                marketing loans for their normal production of covered 
                commodities produced on a farm.
            ``(3) Loan rate.--Loans made under this subsection shall be 
        made at the rate of 95 percent of the average price for the 
        commodity for the previous 5 crop years, as determined by the 
        Secretary.
            ``(4) Repayment.--
                    ``(A) Calculation.--Producers on a farm may repay 
                loans made under this subsection for a crop at a level 
                that is the lesser of--
                            ``(i) the loan level determined for the 
                        crop; or
                            ``(ii) the prevailing domestic market price 
                        for the commodity (adjusted to location and 
                        quality), as determined by the Secretary.
                    ``(B) Prevailing domestic market price.--The 
                Secretary shall prescribe by regulation--
                            ``(i) a formula to determine the prevailing 
                        domestic market price for each covered 
                        commodity; and
                            ``(ii) a mechanism by which the Secretary 
                        shall announce periodically the prevailing 
                        domestic market prices established under this 
                        subsection.
    ``(d) Loan Deficiency Payments.--
            ``(1) In general.--The Secretary may, for each of the 1996 
        through 2002 crops of covered commodities, make payments 
        (referred to in this subsection as `loan deficiency payments') 
        available to producers who, although eligible to obtain a 
        marketing loan under subsection (c), 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; by
                    ``(B) the quantity of a covered commodity the 
                producer is eligible to place under loan but for which 
                the producer forgoes obtaining the loan in return for 
                payments under this subsection.
            ``(3) Loan payment rate.--
                    ``(A) In general.--For the purposes of this 
                subsection, the loan payment rate shall be the amount 
                by which--
                            ``(i) the marketing loan rate determined 
                        for the crop under subsection (c)(3); exceeds
                            ``(ii) the level at which a loan may be 
                        repaid under subsection (c)(4).
                    ``(B) Date.--The date on which the calculation 
                required under subparagraph (A) for the producers on a 
                farm shall be determined by the producers, except that 
                the date may not be later than the earlier of--
                            ``(i) the date the producers lost 
                        beneficial interest in the crop; or
                            ``(ii) the end of the marketing year for 
                        the crop.
            ``(4) Application.--Producers on a farm may apply for a 
        payment for a covered commodity under this subsection at any 
        time prior to the end of the marketing year for the commodity.
    ``(e) Program Cost Limitation.--
            ``(1) In general.--If the Secretary determines that the 
        costs of providing marketing loans and loan deficiency payments 
        for covered commodities under this section will exceed an 
        amount of $7,000,000,000 for the 1996 through 2002 fiscal 
        years, the Secretary shall carry out a program cost limitation 
        program to ensure that the cost of providing marketing loans 
        and loan deficiency payments do not exceed the amount.
            ``(2) Terms.--If the Secretary determines that a program 
        cost limitation program is required for a crop year, the 
        Secretary shall carry out for the crop year--
                    ``(A) a proportionate reduction in the number of 
                bushels that a producer may directly or indirectly 
                place under loan;
                    ``(B) a limitation on the number of bushels the 
                producers on a farm may directly or indirectly place 
                under loan;
                    ``(C) an acreage limitation program; or
                    ``(D) any combination of actions described in 
                subparagraphs (A), (B), and (C).
            ``(3) Limitation.--The program cost limitation program may 
        only be applied to a crop of a covered commodity for which the 
        domestic price is projected, by the Secretary, to be less than 
        the 5-year simple average price for the commodity.
            ``(4) Announcements.--If the Secretary elects to implement 
        a program cost limitation program for any crop year, the 
        Secretary shall make an announcement of the program not later 
        than--
                    ``(A) in the case of wheat, June 1 of the calendar 
                year preceding the year in which the crop is harvested; 
                and
                    ``(B) in the case of feed grains and oilseeds, 
                September 30 of the calendar year preceding the year in 
                which the crop is harvested.
    ``(f) Equitable Relief.--If the failure of a producer to comply 
fully with the terms and conditions of programs conducted under this 
section precludes the making of loans and payments, the Secretary may, 
nevertheless, make the loans and payments in such amounts as the 
Secretary determines are equitable in relation to the seriousness of 
the failure.
    ``(g) Commodity Credit Corporation.--The Secretary shall carry out 
the program authorized by this section through the Commodity Credit 
Corporation.
    ``(h) Assignment of Payments.--The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
(relating to assignment of payments) shall apply to payments under this 
section.
    ``(i) Tenants and Sharecroppers.--In carrying out this section, the 
Secretary shall provide adequate safeguards to protect the interest of 
tenants and sharecroppers.
    ``(j) Paperwork Reduction.--
            ``(1) In general.--The Secretary shall take all appropriate 
        steps to reduce, to the maximum extent practicable, the 
        paperwork and other administrative burdens related to 
        participation in programs authorized by this section.
            ``(2) Mail.--The Secretary shall establish a system by 
        which producers may agree to participate in a program, and 
        report acreage, under this section by mail.
            ``(3) Combined forms.--The Secretary shall provide 
        producers with a single form that contains all applicable terms 
        and conditions for the program.
            ``(4) Reduction of forms.--The Secretary shall only require 
        payment limitation information from producers who--
                    ``(A) are projected to receive, directly or 
                indirectly, limited benefits equal to at least 80 
                percent of the applicable limitation; or
                    ``(B) are suspected of violating, or have 
                previously violated, the payment limitation 
                requirements.
            ``(5) Electronic forms.--The Secretary shall allow 
        producers of the 1997 and subsequent crops to apply for 
        benefits under this section electronically.
    ``(k) Crops.--This section shall be effective only for the 1996 
through 2002 crops of a covered commodity.''.

SEC. 103. FLEXIBLE ACREAGE BASE FOR WHEAT, FEED GRAINS, AND OILSEEDS.

    (a) Definitions.--Section 502 of the Agricultural Act of 1949 (7 
U.S.C. 1462) is amended by striking paragraphs (2) and (3) and 
inserting the following:
            ``(2) Feed grains.--The term `feed grains' means corn, 
        grain sorghum, barley, oats, millet, rye, or as designated by 
        the Secretary, other feed grains.
            ``(3) Go crops.--The term `GO crops' means wheat, feed 
        grains, and oilseeds.
            ``(4) Oilseeds.--The term `oilseed' means a crop of 
        soybeans, sunflower seed, rapeseed, canola, safflower, 
        flaxseed, mustard seed, or, if designated by the Secretary, 
        other oilseeds.
            ``(5) Program crop.--The term `program crop' means a GO 
        crop and a crop of upland cotton or rice.''.
    (b) Crop Acreage Bases.--Section 503(a) of the Act (7 U.S.C. 
1463(a)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) In general.--
                    ``(A) Go crops.--The Secretary shall provide for 
                the establishment and maintenance of a single crop 
                acreage base for GO crops, including any GO crops 
                produced under an established practice of double 
                cropping.
                    ``(B) Cotton and rice.--The Secretary shall provide 
                for the establishment and maintenance of crop acreage 
                bases for cotton and rice crops, including any program 
                crop produced under an established practice of double 
                cropping.''.

SEC. 104. PAYMENT LIMITATIONS.

    (a) In General.--Title X of the Food Security Act of 1985 (7 C.F.R. 
1308) is amended--
            (1) by striking paragraph (1), by striking subparagraph (A) 
        and inserting the following:
                    ``(A) In general.--Subject to sections 1001A 
                through 1001C, for each of the 1996 and subsequent 
                crops, the total amount of deficiency payments, land 
                diversion payments, and payments specified in clauses 
                (iii) and (v) of paragraph (2)(B) that a person shall 
                be entitled to receive under 1 or more of the annual 
                programs established under the Agricultural Act of 1949 
                (7 U.S.C. 1421 et seq.) for wheat, feed grains, upland 
                cotton, extra long staple cotton, rice, and oilseeds 
                may not exceed $50,000.''; and
            (2) in paragraph (2)(B), by striking clause (vi) and 
        inserting the following:
            ``(iv) any adjustment payment provided for under section 
        116 of the Agricultural Act of 1949;''.
    (b) Removal of 3-Entity Rule; Direct Attribution.--Section 1001A of 
the Act (7 U.S.C. 1308-1) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Direct Attribution.--In the case of payments specified in 
paragraphs (1) and (2) of section 1001, the Secretary shall attribute--
            ``(1) payments received by an individual directly to the 
        individual; and
            ``(2) payments received by an entity to individuals who own 
        the entity in proportion to the ownership interest of the 
        individual in the entity.''.

SEC. 105. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Wheat.--
            (1) 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, 1995, through May 31, 
        2003.
            (2) 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.
            (3) 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.
            (4) 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.
    (b) Feed Grains.--
            (1) 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.
            (2) Recourse loan program for silage.--Section 403 of the 
        Food Security Act of 1985 (7 U.S.C. 1444e-1) is amended by 
        striking ``1996'' and inserting ``2002''.
    (c) Oilseeds.--Section 201(a) of the Agricultural Act of 1949 (7 
U.S.C. 1446(a)) is amended by striking ``oilseeds'' and all that 
follows through ``determine),''.

SEC. 106. EXTENSION OF RELATED PRICE SUPPORT PROVISIONS.

    (a) Supplemental Set-Aside and Acreage Limitation Authority.--
Section 113 of the Agricultural Act of 1949 (7 U.S.C. 1445h) is amended 
by striking ``1995'' and inserting ``2002''.
    (b) Deficiency and Land Diversion Payments.--Section 114 of the 
Agricultural Act of 1949 (7 U.S.C. 1445j) is amended--
            (1) in subsections (a)(1) and (c), by striking ``1997'' 
        each place it appears and inserting ``2002''; and
            (2) in subsection (b), by striking ``1995'' and inserting 
        ``2002'';
    (c) 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''.
    (d) 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''.
    (e) Program Option for 2003 and Subsequent Crops.--Section 406(b) 
of the Agricultural Act of 1949 (7 U.S.C. 1426(b)) is amended--
            (1) by striking ``1995'' each place it appears and 
        inserting ``2002'';
            (2) by striking ``1996'' each place it appears and 
        inserting ``2003''; and
            (3) in paragraph (4), by striking ``November 28, 1990'' and 
        inserting ``the date of enactment of the Farm Security Act of 
        1995''.
    (f) 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''.
    (g) Acreage Base and Yield System.--Title V of the Agricultural Act 
of 1949 (7 U.S.C. 1461 et seq.) is amended--
            (1) in subsections (c)(3) and (h)(2)(A) of section 503 (7 
        U.S.C. 1463), by striking ``1997'' each place it appears and 
        inserting ``2002'';
            (2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C. 
        1465(b)), by striking ``1997'' each place it appears and 
        inserting ``2002''; and
            (3) in section 509 (7 U.S.C. 1469), by striking ``1997'' 
        and inserting ``2002''.
    (h) Payment Limitations.--
            (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
        1308) is amended by striking ``1991 through 1997'' each place 
        it appears in paragraphs (1)(B) and (2)(A) and inserting ``1996 
        and subsequent''.
            (2) Section 1001C(a) of the Act (7 U.S.C. 1308-3a(a)) is 
        amended by striking ``1991 through 1997'' each place it appears 
        and inserting ``1996 and subsequent''.
    (i) 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''.
    (j) Normal Supply.--Section 1019 of the Food Security Act of 1985 
(7 U.S.C. 1310a) is amended by striking ``1995'' and inserting 
``2002''.
    (k) 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''.
    (l) Food Security Wheat Reserve.--Section 302(i) of the Food 
Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) is amended by 
striking ``1995'' each place it appears and inserting ``2002''.
    (m) National Agricultural Cost of Production Standards Review 
Board.--Section 1014 of the Agriculture and Food Act of 1981 (7 U.S.C. 
4110) is amended by striking ``1995'' and inserting ``2002''.

SEC. 107. EFFECTIVE DATE.

    (a) In General.--Except as otherwise specifically provided in this 
title, this title and the amendments made by this title 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 title and the 
amendments made by this title 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 106(e)).

                         TITLE II--CONSERVATION

SEC. 201. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) In General.--Chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended to read as 
follows:

         ``CHAPTER 2--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``SEC. 1238. DEFINITIONS.

    ``In this chapter:
            ``(1) Land management practice.--The term `land management 
        practice' means nutrient or manure management, integrated pest 
        management, irrigation management, tillage or residue 
        management, grazing management, or another land management 
        practice the Secretary determines is needed to protect soil, 
        water, or related resources in the most cost efficient manner.
            ``(2) Large confined livestock operation.--The term `large 
        confined livestock operation' means a farm or ranch that--
                    ``(A) is a confined animal feeding operation; and
                    ``(B) has more than--
                            ``(i) 700 mature dairy cattle;
                            ``(ii) 1,000 beef cattle;
                            ``(iii) 30,000 laying hens or broilers (if 
                        the facility has continuous overflow watering);
                            ``(iv) 100,000 laying hens or broilers (if 
                        the facility has a liquid manure system);
                            ``(v) 55,000 turkeys;
                            ``(vi) 2,500 swine; or
                            ``(vii) 10,000 sheep or lambs.
            ``(3) Livestock.--The term `livestock' means mature dairy 
        cows, beef cattle, laying hens, broilers, turkeys, swine, 
        sheep, or lambs.
            ``(4) Operator.--The term `operator' means a person who is 
        engaged in crop or livestock production (as defined by the 
        Secretary).
            ``(5) Structural practice.--The term `structural practice' 
        means the establishment of an animal waste management facility, 
        terrace, grassed waterway, contour grass strip, filterstrip, 
        permanent wildlife habitat, or another structural practice that 
        the Secretary determines is needed to protect soil, water, or 
        related resources in the most cost effective manner.

``SEC. 1238A. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 fiscal 
        years, the Secretary shall provide technical assistance, cost-
        sharing payments, and incentive payments to operators, who 
        enter into contracts with the Secretary, through an 
        environmental quality incentives program in accordance with 
        this chapter.
            ``(2) Consolidation of existing programs.--In establishing 
        the environmental quality incentives program authorized under 
        this chapter, the Secretary shall combine into a single program 
        the functions of--
                    ``(A) the agricultural conservation program 
                authorized by sections 7 and 8 of the Soil Conservation 
                and Domestic Allotment Act (16 U.S.C. 590g and 590h) 
                (as in effect before the amendments made by section 
                201(b)(1) of the Farm Security Act of 1995);
                    ``(B) the Great Plains conservation program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590p(b)) (as in effect before the amendment made by 
                section 201(b)(2) of the Farm Security Act of 1995);
                    ``(C) the water quality incentives program 
                established under this chapter (as in effect before 
                amendment made by section 201(a) of the Farm Security 
                Act of 1995); and
                    ``(D) the Colorado River Basin salinity control 
                program established under section 202(c) of the 
                Colorado River Basin Salinity Control Act (43 U.S.C. 
                1592(c)) (as in effect before the amendment made by 
                section 201(b)(3) of the Farm Security Act of 1995).
    ``(b) Application and Term.--A contract between an operator and the 
Secretary under this chapter may--
            ``(1) apply to 1 or more structural practices or 1 or more 
        land management practices, or both; and
            ``(2) have a term of not less than 5, nor more than 10, 
        years, as determined appropriate by the Secretary, depending on 
        the practice or practices that are the basis of the contract.
    ``(c) Cost-Sharing and Incentive Payments.--
            ``(1) Cost-sharing payments.--
                    ``(A) In general.--The Federal share of cost-
                sharing payments to an operator proposing to implement 
                1 or more structural practices shall not be more than 
                75 percent of the projected cost of the practice, as 
                determined by the Secretary, taking into consideration 
                any payment received by the operator from a State or 
                local government.
                    ``(B) Limitation.--An operator of a large confined 
                livestock operation shall not be eligible for cost-
                sharing payments to construct an animal waste 
                management facility.
                    ``(C) Other payments.--An operator shall not be 
                eligible for cost-sharing payments for structural 
                practices on eligible land under this chapter if the 
                operator receives cost-sharing payments or other 
                benefits for the same land under chapter 1 or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate determined by the 
        Secretary to be necessary to encourage an operator to perform 1 
        or more land management practices.
    ``(d) Technical Assistance.--
            ``(1) Funding.--The Secretary shall allocate funding under 
        this chapter for the provision of technical assistance 
        according to the purpose and projected cost for which the 
        technical assistance is provided in a fiscal year. The 
        allocated amount may vary according to the type of expertise 
        required quantity of time involved, and other factors as 
        determined appropriate by the Secretary. Funding shall not 
        exceed the projected cost to the Secretary of the technical 
        assistance provided in a fiscal year.
            ``(2) Other authorities.--The receipt of technical 
        assistance under this chapter shall not affect the eligibility 
        of the operator to receive technical assistance under other 
        authorities of law available to the Secretary.
            ``(3) Non-federal assistance.--
                    ``(A) In general.--The Secretary may request the 
                services of a State water quality agency, State fish 
                and wildlife agency, State forestry agency, or any 
                other governmental or private resource considered 
                appropriate to assist in providing the technical 
                assistance necessary for the development and 
                implementation of a structural practice or land 
                management practice.
                    ``(B) Limitation on liability.--No person shall be 
                permitted to bring or pursue any claim or action 
                against any official or entity based on or resulting 
                from any technical assistance provided to an operator 
                under this chapter to assist in complying with a 
                Federal or State environmental law.
    ``(e) Funding.--The Secretary shall use to carry out this chapter 
not less than--
            ``(1) $150,000,000 for fiscal year 1996;
            ``(2) $200,000,000 for fiscal year 1997; and
            ``(3) $250,000,000 for each of fiscal years 1998 through 
        2002.
    ``(f) Commodity Credit Corporation.--The Secretary may use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out this subchapter.

``SEC. 1238B. CONSERVATION PRIORITY AREAS.

    ``(a) In General.--The Secretary shall designate watersheds or 
regions of special environmental sensitivity, including the Chesapeake 
Bay region (located in Pennsylvania, Maryland, and Virginia), the Great 
Lakes region, the Long Island Sound region, prairie pothole region 
(located in North Dakota, South Dakota, and Minnesota) and other areas 
the Secretary considers appropriate, as conservation priority areas 
that are eligible for enhanced assistance through the programs 
established under this chapter and chapter 1.
    ``(b) Applicability.--A designation shall be made under this 
section if an application is made by a State agency and agricultural 
practices within the watershed or region pose a significant threat to 
soil, water, and related natural resources, as determined by the 
Secretary.

``SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.

    ``(a) Regional Priorities.--The Secretary shall provide technical 
assistance, cost-sharing payments, and incentive payments to operators 
in a region, watershed, or conservation priority area under this 
chapter based on the significance of soil, water, and related natural 
resources problems in the region, watershed, or area, and the 
structural practices or land management practices that best address the 
problems, as determined by the Secretary.
    ``(b) Maximization of Environmental Benefits.--
            ``(1) In general.--In providing technical assistance, cost-
        sharing payments, and incentive payments to operators in 
        regions, watersheds, or conservation priority areas under this 
        chapter, the Secretary shall accord a higher priority to 
        assistance and payments that maximize environmental benefits 
        per dollar expended.
            ``(2) State or local contributions.--The Secretary shall 
        accord a higher priority to operators whose agricultural 
        operations are located within watersheds, regions, or 
        conservation priority areas in which State or local governments 
        have provided, or will provide, financial or technical 
        assistance to the operators for the same conservation or 
        environmental purposes.

``SEC. 1238D. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

    ``(a) In General.--Prior to approving cost-share or incentive 
payments authorized under this chapter, the Secretary shall require the 
preparation and evaluation of an environmental quality incentives 
program plan described in subsection (b), unless the Secretary 
determines that such a plan is not necessary to evaluate the 
application for the payments.
    ``(b) Terms.--An environmental quality incentives program plan 
shall include (as determined by the Secretary) a description of 
relevant--
            ``(1) farming or ranching practices on the farm;
            ``(2) characteristics of natural resources on the farm;
            ``(3) specific conservation and environmental objectives to 
        be achieved including those that will assist the operator in 
        complying with Federal and State environmental laws;
            ``(4) dates for, and sequences of, events for implementing 
        the practices for which payments will be received under this 
        chapter; and
            ``(5) information that will enable evaluation of the 
        effectiveness of the plan in achieving the conservation and 
        environmental objectives, and that will enable evaluation of 
        the degree to which the plan has been implemented.

``SEC. 1238E. LIMITATION ON PAYMENTS.

    ``(a) Payments.--The total amount of cost-share and incentive 
payments paid to a person under this chapter may not exceed--
            ``(1) $10,000 for any fiscal year; or
            ``(2) $50,000 for any multiyear contract.
    ``(b) Regulations.--The Secretary shall issue regulations that are 
consistent with section 1001 for the purpose of--
            ``(1) defining the term `person' as used in subsection (a); 
        and
            ``(2) prescribing such rules as the Secretary determines 
        necessary to ensure a fair and reasonable application of the 
        limitations contained in subsection (a).

``SEC. 1238F. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY 
              INCENTIVES PROGRAM.

    ``(a) Interim Administration.--
            ``(1) In general.--During the period beginning on the date 
        of enactment of the Farm Security Act of 1995 and ending on the 
        later of the dates specified in paragraph (2), to ensure that 
        technical assistance, cost-sharing payments, and incentive 
        payments continue to be administered in an orderly manner until 
        such time as assistance can be provided through regulations 
        issued to implement the environmental quality incentives 
        program established under this chapter, the Secretary shall 
        continue to provide technical assistance, cost-sharing 
        payments, and incentive payments under the terms and condition 
        of the agricultural conservation program, the Great Plains 
        conservation program, the water quality incentives program, and 
        the Colorado River Basin salinity control program, to the 
        extent that the terms and conditions of the programs are 
        consistent with the environmental quality incentives programs.
            ``(2) Expiration of authority.--The authority of the 
        Secretary to carry out paragraph (1) shall terminate on the 
        later of--
                    ``(A) the date that is 180 days after the date of 
                enactment of the Farm Security Act of 1995; or
                    ``(B) March 31, 1996.
    ``(b) Permanent Administration.--Effective beginning on the later 
of the dates specified in subsection (a)(2), the Secretary shall 
provide technical assistance, cost-sharing payments, and incentive 
payments for practices related to crop and livestock production in 
accordance with regulations issued to carry out the environmental 
quality incentives program.''.
    (b) Conforming Amendments.--
            (1) Agricultural conservation program.--
                    (A) Elimination.--
                            (i) Section 8 of the Soil Conservation and 
                        Domestic Allotment Act (16 U.S.C. 590h) is 
                        amended--
                                    (I) in subsection (b)--
                                            (aa) by striking paragraphs 
                                        (1) through (4) and inserting 
                                        the following:
            ``(1) Environmental quality incentives program.--The 
        Secretary shall provide technical assistance, cost share 
        payments, and incentive payments to operators through the 
        environmental quality incentives program in accordance with 
        chapter 2 of subtitle D of the Food Security Act of 1985 (16 
        U.S.C. 3838 et seq.).''; and
                                            (bb) by striking paragraphs 
                                        (6) through (8); and
                                    (II) by striking subsections (d), 
                                (e), and (f).
                            (ii) The first sentence of section 11 of 
                        the Soil Conservation and Domestic Allotment 
                        Act (16 U.S.C. 590k) is amended by striking `` 
                        performance: Provided further,'' and all that 
                        follows through ``or other law'' and inserting 
                        ``performance''.
                            (iii) Section 14 of the Act (16 U.S.C. 
                        590n) is amended--
                                    (I) in the first sentence, by 
                                striking ``or 8''; and
                                    (II) by striking the second 
                                sentence.
                            (iv) Section 15 of the Act (16 U.S.C. 590o) 
                        is amended--
                                    (I) in the first undesignated 
                                paragraph--
                                            (aa) in the first sentence, 
                                        by striking ``sections 7 and 
                                        8'' and inserting ``section 
                                        7''; and
                                            (bb) by striking the third 
                                        sentence ; and
                                    (II) by striking the second 
                                undesignated paragraph.
                    (B) Conforming amendments.--
                            (i) Paragraph (1) of the last proviso of 
                        the matter under the heading ``conservation 
                        reserve program'' under the heading ``Soil Bank 
                        Programs'' of title I of the Department of 
                        Agriculture and Farm Credit Administration 
                        Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 
                        1831a) is amended by striking ``Agricultural 
                        Conservation Program'' and inserting 
                        ``environmental quality incentives program 
                        established under chapter 2 of subtitle D of 
                        the Food Security Act of 1985 (16 U.S.C. 3838 
                        et seq.)''.
                            (ii) Section 4 of the Cooperative Forestry 
                        Assistance Act of 1978 (16 U.S.C. 2103) is 
                        amended by striking ``as added by the 
                        Agriculture and Consumer Protection Act of 
                        1973'' each place it appears in subsections (d) 
                        and (i) and inserting ``as in effect before the 
                        amendment is made by section 6(a)(1)(F) of the 
                        Agricultural Resources Conservation Act of 
                        1995''.
                            (iii) Section 226(b)(4) of the Department 
                        of Agriculture Reorganization Act of 1994 (7 
                        U.S.C. 6932(b)(4)) is amended by striking ``and 
                        the agricultural conservation program under the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590g et seq.)''.
                            (iv) Section 246(b)(8) of the Department of 
                        Agriculture Reorganization Act of 1994 (7 
                        U.S.C. 6962(b)(8)) is amended by striking ``and 
                        the agricultural conservation program under the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590g et seq.)''.
                            (v) Section 1271(c)(3)(C) of the Food, 
                        Agriculture, Conservation, and Trade Act of 
                        1990 (16 U.S.C. 2106a(c)(3)(C)) is amended by 
                        striking ``Agricultural Conservation Program 
                        established under section 16(b) of the Soil 
                        Conservation and Domestic Allotment Act (16 
                        U.S.C. 590h, 590l, or 590p)'' and inserting 
                        ``environmental quality incentives program 
                        established under chapter 2 of subtitle D of 
                        the Food Security Act of 1985 (16 U.S.C. 3838 
                        et seq.)''.
                            (vi) Section 126(a)(5) of the Internal 
                        Revenue Code of 1986 is amended to read as 
                        follows:
            ``(5) The environmental quality incentives program 
        established under chapter 2 of subtitle D of the Food Security 
        Act of 1985 (16 U.S.C. 3838 et seq.).''
                            (vii) Section 304(a) of the Lake Champlain 
                        Special Designation Act of 1990 (Public Law 
                        101-596; 33 U.S.C. 1270 note) is amended--
                                    (I) in the subsection heading, by 
                                striking ``Special Project Area Under 
                                the Agricultural Conservation Program'' 
                                and inserting ``A Priority Area Under 
                                the Environmental Quality Incentives 
                                Program''; and
                                    (II) in paragraph (1), by striking 
                                ``special project area under the 
                                Agricultural Conservation Program 
                                established under section 8(b) of the 
                                Soil Conservation and Domestic 
                                Allotment Act (16 U.S.C. 590h(b))'' and 
                                inserting ``priority area under the 
                                environmental quality incentives 
                                program established under chapter 2 of 
                                subtitle D of the Food Security Act of 
                                1985 (16 U.S.C. 3838 et seq.)''.
                            (viii) Section 6 of the Department of 
                        Agriculture Organic Act of 1956 (70 Stat. 1033) 
                        is amended by striking subsection (b).
            (2) Great plains conservation program.--
                    (A) Elimination.--Section 16 of the Soil 
                Conservation and Domestic Allotment Act (16 U.S.C. 
                590p) is repealed.
                    (B) Conforming amendments.--
                            (i) The Agricultural Adjustment Act of 1938 
                        is amended by striking ``Great Plains program'' 
                        each place it appears in sections 344(f)(8) and 
                        377 (7 U.S.C. 1344(f)(8) and 1377) and 
                        inserting ``environmental quality incentives 
                        program established under chapter 2 of subtitle 
                        D of the Food Security Act of 1985 (16 U.S.C. 
                        3838 et seq.)''.
                            (ii) Section 246(b) of the Department of 
                        Agriculture Reorganization Act of 1994 (7 
                        U.S.C. 6962(b)) is amended by striking 
                        paragraph (2).
                            (iii) Section 126(a) of the Internal 
                        Revenue Code of 1986 is amended--
                                    (I) by striking paragraph (6); and
                                    (II) by redesignating paragraphs 
                                (7) through (10) as paragraphs (6) 
                                through (9), respectively.
            (3) Colorado river basin salinity control program.--
                    (A) Elimination.--Section 202 of the Colorado River 
                Basin Salinity Control Act (43 U.S.C. 1592) is amended 
                by striking subsection (c).
                    (B) Conforming amendment.--Section 246(b) of the 
                Department of Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6962(b)) is amended by striking paragraph (6).
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