[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1541 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 330

104th CONGRESS

  2d Session

                                S. 1541

_______________________________________________________________________

                                 A BILL

     To extend, reform, and improve agricultural commodity, trade, 
       conservation, and other programs, and for other purposes.

_______________________________________________________________________

                            January 30, 1996

            Read the second time and placed on the calendar





                                                       Calendar No. 330
104th CONGRESS
  2d Session
                                S. 1541

     To extend, reform, and improve agricultural commodity, trade, 
       conservation, and other programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 26, 1996

 Mr. Lugar (for himself, Mr. Dole, Mr. Helms, Mr. Cochran, Mr. Craig, 
 Mr. Grassley, Mr. Pressler, Mr. Coverdell, Mr. Gorton, Mr. Gramm, Mr. 
    Warner, Mrs. Kassebaum, Mr. Mack, Mrs. Hutchison, and Mr. Lott) 
    introduced the following bill; which was read for the first time

                            January 30, 1996

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
     To extend, reform, and improve agricultural commodity, trade, 
       conservation, and other programs, 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 
Market Transition Act of 1996''.
    (b) Table of Contents.--The table of contents of this title is as 
follows:

Sec. 1. Short title; table of contents.
           Subtitle A--Agricultural Market Transition Program

Sec. 12. Definitions.
Sec. 13. Production flexibility contracts.
Sec. 14. Nonrecourse marketing assistance loans and loan deficiency 
                            payments.
Sec. 15. Payment limitations.
Sec. 16. Peanut program.
Sec. 17. Sugar program.
Sec. 18. Administration.
Sec. 19. Elimination of permanent price support authority.
Sec. 20. Effect of amendments.
                        Subtitle B--Conservation

Sec. 31. Conservation.
         Subtitle C--Agricultural Promotion and Export Programs

Sec. 41. Market promotion program.
Sec. 42. Export enhancement program.
                       Subtitle D--Miscellaneous

Sec. 51. Crop insurance.
Sec. 52. Collection and use of agricultural quarantine and inspection 
                            fees.
Sec. 53. Commodity Credit Corporation interest rate.

           Subtitle A--Agricultural Market Transition Program

SEC. 12. DEFINITIONS.

    In this subtitle:
            (1) Considered planted.--The term ``considered planted'' 
        means acreage that is considered planted under title V of the 
        Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect 
        prior to the amendment made by section 19(b)(2)).
            (2) Contract.--The term ``contract'' means a production 
        flexibility contract entered into under section 13.
            (3) Contract acreage.--The term ``contract acreage'' means 
        1 or more crop acreage bases established for contract 
        commodities under title V of the Agricultural Act of 1949 (as 
        in effect prior to the amendment made by section 19(b)(2)) that 
        would have been in effect for the 1996 crop (but for the 
        amendment made by section 19(b)(2)).
            (4) Contract commodity.--The term ``contract commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        and rice.
            (5) Contract payment.--The term ``contract payment'' means 
        a payment made under section 13 pursuant to a contract.
            (6) Corn.--The term ``corn'' means field corn.
            (7) Department.--The term ``Department'' means the United 
        States Department of Agriculture.
            (8) Farm program payment yield.--The term ``farm program 
        payment yield'' means the farm program payment yield 
        established for the 1995 crop of a contract commodity under 
        title V of the Agricultural Act of 1949 (as in effect prior to 
        the amendment made by section 19(b)(2)).
            (9) Loan commodity.--The term ``loan commodity'' means each 
        contract commodity, extra long staple cotton, and oilseeds.
            (10) Oilseed.--The term ``oilseed'' means a crop of 
        soybeans, sunflower seed, rapeseed, canola, safflower, 
        flaxseed, mustard seed, or, if designated by the Secretary, 
        other oilseeds.
            (11) Person.--The term ``person'' means an individual, 
        partnership, firm, joint-stock company, corporation, 
        association, trust, estate, or State agency.
            (12) Producer.--
                    (A) In general.--The term ``producer'' means a 
                person who, as owner, landlord, tenant, or 
                sharecropper, shares in the risk of producing a crop, 
                and is entitled to share in the crop available for 
                marketing from the farm, or would have shared had the 
                crop been produced.
                    (B) Hybrid seed.--The term ``producer'' includes a 
                person growing hybrid seed under contract. In 
                determining the interest of a grower of hybrid seed in 
                a crop, the Secretary shall not take into consideration 
                the existence of a hybrid seed contract.
            (13) Program.--The term ``program'' means the agricultural 
        market transition program established under this subtitle.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (15) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other territory or 
        possession of the United States.
            (16) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.

SEC. 13. PRODUCTION FLEXIBILITY CONTRACTS.

    (a) Contracts Authorized.--
            (1) Offer and terms.--Beginning as soon as practicable 
        after the date of the enactment of this subtitle, the Secretary 
        shall offer to enter into a contract with an eligible owner or 
        operator described in paragraph (2) on a farm containing 
        eligible farmland. Under the terms of a contract, the owner or 
        operator shall agree, in exchange for annual contract payments, 
        to comply with--
                    (A) the conservation plan for the farm prepared in 
                accordance with section 1212 of the Food Security Act 
                of 1985 (16 U.S.C. 3812);
                    (B) wetland protection requirements applicable to 
                the farm under subtitle C of title XII of the Act (16 
                U.S.C. 3821 et seq.); and
                    (C) the planting flexibility requirements of 
                subsection (j).
            (2) Eligible owners and operators described.--The following 
        persons shall be considered to be an owner or operator eligible 
        to enter into a contract:
                    (A) An owner of eligible farmland who assumes all 
                of the risk of producing a crop.
                    (B) An owner of eligible farmland who shares in the 
                risk of producing a crop.
                    (C) An operator of eligible farmland with a share-
                rent lease of the eligible farmland, regardless of the 
                length of the lease, if the owner enters into the same 
                contract.
                    (D) An operator of eligible farmland who cash rents 
                the eligible farmland under a lease expiring on or 
                after September 30, 2002, in which case the consent of 
                the owner is not required.
                    (E) An operator of eligible farmland who cash rents 
                the eligible farmland under a lease expiring before 
                September 30, 2002, if the owner consents to the 
                contract.
                    (F) An owner of eligible farmland who cash rents 
                the eligible farmland and the lease term expires before 
                September 30, 2002, but only if the actual operator of 
                the farm declines to enter into a contract. In the case 
                of an owner covered by this subparagraph, contract 
                payments shall not begin under a contract until the 
                fiscal year following the fiscal year in which the 
                lease held by the nonparticipating operator expires.
                    (G) An owner or operator described in a preceding 
                subparagraph regardless of whether the owner or 
                operator purchased catastrophic risk protection for a 
                fall-planted 1996 crop under section 508(b) of the 
                Federal Crop Insurance Act (7 U.S.C. 1508(b)).
            (3) Tenants and sharecroppers.--In carrying out this 
        section, the Secretary shall provide adequate safeguards to 
        protect the interests of operators who are tenants and 
        sharecroppers.
    (b) Elements.--
            (1) Time for contracting.--
                    (A) Deadline.--Except as provided in subparagraph 
                (B), the Secretary may not enter into a contract after 
                April 15, 1996.
                    (B) Conservation reserve lands.--
                            (i) In general.--At the beginning of each 
                        fiscal year, the Secretary shall allow an 
                        eligible owner or operator on a farm covered by 
                        a conservation reserve contract entered into 
                        under section 1231 of the Food Security Act of 
                        1985 (16 U.S.C. 3831) that terminates after the 
                        date specified in subparagraph (A) to enter 
                        into or expand a production flexibility 
                        contract to cover the contract acreage of the 
                        farm that was subject to the former 
                        conservation reserve contract.
                            (ii) Amount.--Contract payments made for 
                        contract acreage under this subparagraph shall 
                        be made at the rate and amount applicable to 
                        the annual contract payment level for the 
                        applicable crop.
            (2) Duration of contract.--
                    (A) Beginning date.--A contract shall begin with--
                            (i) the 1996 crop of a contract commodity; 
                        or
                            (ii) in the case of acreage that was 
                        subject to a conservation reserve contract 
                        described in paragraph (1)(B), the date the 
                        production flexibility contract was entered 
                        into or expanded to cover the acreage.
                    (B) Ending date.--A contract shall extend through 
                the 2002 crop.
            (3) Estimation of contract payments.--At the time the 
        Secretary enters into a contract, the Secretary shall provide 
        an estimate of the minimum contract payments anticipated to be 
        made during at least the first fiscal year for which contract 
        payments will be made.
    (c) Eligible Farmland Described.--Land shall be considered to be 
farmland eligible for coverage under a contract only if the land has 
contract acreage attributable to the land and--
            (1) for at least 1 of the 1991 through 1995 crops, at least 
        a portion of the land was enrolled in the acreage reduction 
        program authorized for a crop of a contract commodity under 
        section 101B, 103B, 105B, or 107B of the Agricultural Act of 
        1949 (as in effect prior to the amendment made by section 
        19(b)(2)) or was considered planted;
            (2) was subject to a conservation reserve contract under 
        section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 
        whose term expired, or was voluntarily terminated, on or after 
        January 1, 1995; or
            (3) is released from coverage under a conservation reserve 
        contract by the Secretary during the period beginning on 
        January 1, 1995, and ending on the date specified in subsection 
        (b)(1)(A).
    (d) Time for Payment.--
            (1) In general.--An annual contract payment shall be made 
        not later than September 30 of each of fiscal years 1996 
        through 2002.
            (2) Advance payments.--
                    (A) Fiscal year 1996.--At the option of the owner 
                or operator, 50 percent of the contract payment for 
                fiscal year 1996 shall be made not later than June 15, 
                1996.
                    (B) Subsequent fiscal years.--At the option of the 
                owner or operator for fiscal year 1997 and each 
                subsequent fiscal year, 50 percent of the annual 
                contract payment shall be made on December 15.
    (e) Amounts Available for Contract Payments for Each Fiscal Year.--
            (1) In general.--The Secretary shall, to the maximum extent 
        practicable, expend on a fiscal year basis the following 
        amounts to satisfy the obligations of the Secretary under all 
        contracts:
                    (A) For fiscal year 1996, $5,570,000,000.
                    (B) For fiscal year 1997, $5,385,000,000.
                    (C) For fiscal year 1998, $5,800,000,000.
                    (D) For fiscal year 1999, $5,603,000,000.
                    (E) For fiscal year 2000, $5,130,000,000.
                    (F) For fiscal year 2001, $4,130,000,000.
                    (G) For fiscal year 2002, $4,008,000,000.
            (2) Allocation.--The amount made available for a fiscal 
        year under paragraph (1) shall be allocated as follows:
                    (A) For wheat, 26.26 percent.
                    (B) For corn, 46.22 percent.
                    (C) For grain sorghum, 5.11 percent.
                    (D) For barley, 2.16 percent.
                    (E) For oats, 0.15 percent.
                    (F) For upland cotton, 11.63 percent.
                    (G) For rice, 8.47 percent.
            (3) Adjustment.--The Secretary shall adjust the amounts 
        allocated for each contract commodity under paragraph (2) for a 
        particular fiscal year by--
                    (A) subtracting an amount equal to the amount, if 
                any, necessary to satisfy payment requirements under 
                sections 101B, 103B, 105B, and 107B of the Agricultural 
                Act of 1949 (as in effect prior to the amendment made 
                by section 19(b)(2)) for the 1994 and 1995 crops of the 
                commodity;
                    (B) adding an amount equal to the sum of all 
                repayments of deficiency payments received under 
                section 114(a)(2) of the Act (as so in effect) for the 
                commodity;
                    (C) to the maximum extent practicable, adding an 
                amount equal to the sum of all contract payments 
                withheld by the Secretary, at the request of an owner 
                or operator subject to a contract, as an offset against 
                repayments of deficiency payments otherwise required 
                under section 114(a)(2) of the Act (as so in effect) 
                for the commodity; and
                    (D) adding an amount equal to the sum of all 
                refunds of contract payments received during the 
                preceding fiscal year under subsection (h) for the 
                commodity.
    (f) Determination of Contract Payments.--
            (1) Individual payment quantity of contract commodities.--
        For each contract, the payment quantity of a contract commodity 
        for each fiscal year shall be equal to the product of--
                    (A) 85 percent of the contract acreage; and
                    (B) the farm program payment yield.
            (2) Annual payment quantity of contract commodities.--The 
        payment quantity of each contract commodity covered by all 
        contracts for each fiscal year shall equal the sum of the 
        amounts calculated under paragraph (1) for each individual 
        contract.
            (3) Annual payment rate.--The payment rate for a contract 
        commodity for each fiscal year shall be equal to--
                    (A) the amount made available under subsection (e) 
                for the contract commodity for the fiscal year; divided 
                by
                    (B) the amount determined under paragraph (2) for 
                the fiscal year.
            (4) Annual payment amount.--The amount to be paid under a 
        contract in effect for each fiscal year with respect to a 
        contract commodity shall be equal to the product of--
                    (A) the payment quantity determined under paragraph 
                (1) with respect to the contract; and
                    (B) the payment rate in effect under paragraph (3).
            (5) Assignment of contract payments.--The provisions of 
        section 8(g) of the Soil Conservation and Domestic Allotment 
        Act (16 U.S.C. 590h(g)) (relating to assignment of payments) 
        shall apply to contract payments under this subsection. The 
        owner or operator making the assignment, or the assignee, shall 
        provide the Secretary with notice, in such manner as the 
        Secretary may require in the contract, of any assignment made 
        under this paragraph.
            (6) Sharing of contract payments.--The Secretary shall 
        provide for the sharing of contract payments among the owners 
        and operators subject to the contract on a fair and equitable 
        basis.
    (g) Payment Limitation.--The total amount of contract payments made 
to a person under a contract during any fiscal year may not exceed the 
payment limitations established under sections 1001 through 1001C of 
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3).
    (h) Effect of Violation.--
            (1) Termination of contract.--Except as provided in 
        paragraph (2), if an owner or operator subject to a contract 
        violates the conservation plan for the farm containing eligible 
        farmland under the contract, wetland protection requirements 
        applicable to the farm, or the planting flexibility 
        requirements of subsection (j), the Secretary shall terminate 
        the contract with respect to the owner or operator on each farm 
        in which the owner or operator has an interest. On the 
        termination, the owner or operator shall forfeit all rights to 
        receive future contract payments on each farm in which the 
        owner or operator has an interest and shall refund to the 
        Secretary all contract payments received by the owner or 
        operator during the period of the violation, together with 
        interest on the contract payments as determined by the 
        Secretary.
            (2) Refund or adjustment.--If the Secretary determines that 
        a violation does not warrant termination of the contract under 
        paragraph (1), the Secretary may require the owner or operator 
        subject to the contract--
                    (A) to refund to the Secretary that part of the 
                contract payments received by the owner or operator 
                during the period of the violation, together with 
                interest on the contract payments as determined by the 
                Secretary; or
                    (B) to accept a reduction in the amount of future 
                contract payments that is proportionate to the severity 
                of the violation, as determined by the Secretary.
            (3) Foreclosure.--An owner or operator subject to a 
        contract may not be required to make repayments to the 
        Secretary of amounts received under the contract if the 
        contract acreage has been foreclosed on and the Secretary 
        determines that forgiving the repayments is appropriate in 
        order to provide fair and equitable treatment. This paragraph 
        shall not void the responsibilities of such an owner or 
        operator under the contract if the owner or operator continues 
        or resumes operation, or control, of the contract acreage. On 
        the resumption of operation or control over the contract 
        acreage by the owner or operator, the provisions of the 
        contract in effect on the date of the foreclosure shall apply.
            (4) Review.--A determination of the Secretary under this 
        subsection shall be considered to be an adverse decision for 
        purposes of the availability of administrative review of the 
        determination.
    (i) Transfer of Interest in Lands Subject to Contract.--
            (1) Effect of transfer.--Except as provided in paragraph 
        (2), the transfer by an owner or operator subject to a contract 
        of the right and interest of the owner or operator in the 
        contract acreage shall result in the termination of the 
        contract with respect to the acreage, effective on the date of 
        the transfer, unless the transferee of the acreage agrees with 
        the Secretary to assume all obligations of the contract. At the 
        request of the transferee, the Secretary may modify the 
        contract if the modifications are consistent with the 
        objectives of this section as determined by the Secretary.
            (2) Exception.--If an owner or operator who is entitled to 
        a contract payment dies, becomes incompetent, or is otherwise 
        unable to receive the contract payment, the Secretary shall 
        make the payment, in accordance with regulations prescribed by 
        the Secretary.
    (j) Planting Flexibility.--
            (1) Permitted crops.--Subject to paragraph (2), any 
        commodity or crop may be planted on contract acreage on a farm.
            (2) Limitations.--
                    (A) Haying and grazing.--
                            (i) Time limitations.--Haying and grazing 
                        on land exceeding 15 percent of the contract 
                        acreage on a farm as provided in clause (iii) 
                        shall be permitted, except during any 
                        consecutive 5-month period between April 1 and 
                        October 31 that is determined by the State 
                        committee established under section 8(b) of the 
                        Soil Conservation and Domestic Allotment Act 
                        (16 U.S.C. 590h(b)) for a State. In the case of 
                        a natural disaster, the Secretary may permit 
                        unlimited haying and grazing on the contract 
                        acreage of a farm.
                            (ii) Contract commodities.--A contract 
                        commodity may be hayed or grazed on contract 
                        acreage on a farm without limitation.
                            (iii) Haying and grazing limitation on 
                        portion of contract acreage.--Unlimited haying 
                        and grazing shall be permitted on not more than 
                        15 percent of the contract acreage on a farm.
                    (B) Alfalfa.--Alfalfa may be planted for harvest 
                without limitation on the contract acreage on a farm, 
                except that each contract acre that is planted for 
                harvest to alfalfa in excess of 15 percent of the total 
                contract acreage on a farm shall be ineligible for 
                contract payments.
                    (C) Fruits and vegetables.--
                            (i) In general.--The planting for harvest 
                        of fruits and vegetables shall be prohibited on 
                        contract acreage.
                            (ii) Unrestricted vegetables.--Lentils, 
                        mung beans, and dry peas may be planted without 
                        limitation on contract acreage.

SEC. 14. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
              PAYMENTS.

    (a) Availability of Nonrecourse Loans.--
            (1) Availability.--For each of the 1996 through 2002 crops 
        of each loan commodity, the Secretary shall make available to 
        producers on a farm nonrecourse marketing assistance loans for 
        loan commodities produced on the farm. The loans shall be made 
        under terms and conditions that are prescribed by the Secretary 
        and at the loan rate established under subsection (b) for the 
        loan commodity.
            (2) Eligible production.--The following production shall be 
        eligible for a marketing assistance loan under this section:
                    (A) In the case of a marketing assistance loan for 
                a contract commodity, any production by a producer who 
                has entered into a production flexibility contract.
                    (B) In the case of a marketing assistance loan for 
                extra long staple cotton and oilseeds, any production.
    (b) Loan Rates.--
            (1) Wheat.--
                    (A) Loan rate.--Subject to subparagraph (B), the 
                loan rate for a marketing assistance loan for wheat 
                shall be--
                            (i) not less than 85 percent of the simple 
                        average price received by producers of wheat, 
                        as determined by the Secretary, during the 
                        marketing years for the immediately preceding 5 
                        crops of wheat, excluding the year in which the 
                        average price was the highest and the year in 
                        which the average price was the lowest in the 
                        period; but
                            (ii) not more than $2.58 per bushel.
                    (B) Stocks to use ratio adjustment.--If the 
                Secretary estimates for any marketing year that the 
                ratio of ending stocks of wheat to total use for the 
                marketing year will be--
                            (i) equal to or greater than 30 percent, 
                        the Secretary may reduce the loan rate for 
                        wheat for the corresponding crop by an amount 
                        not to exceed 10 percent in any year;
                            (ii) less than 30 percent but not less than 
                        15 percent, the Secretary may reduce the loan 
                        rate for wheat for the corresponding crop by an 
                        amount not to exceed 5 percent in any year; or
                            (iii) less than 15 percent, the Secretary 
                        may not reduce the loan rate for wheat for the 
                        corresponding crop.
                    (C) No effect on future years.--Any reduction in 
                the loan rate for wheat under subparagraph (B) shall 
                not be considered in determining the loan rate for 
                wheat for subsequent years.
            (2) Feed grains.--
                    (A) Loan rate for corn.--Subject to subparagraph 
                (B), the loan rate for a marketing assistance loan for 
                corn shall be--
                            (i) not less than 85 percent of the simple 
                        average price received by producers of corn, as 
                        determined by the Secretary, during the 
                        marketing years for the immediately preceding 5 
                        crops of corn, excluding the year in which the 
                        average price was the highest and the year in 
                        which the average price was the lowest in the 
                        period; but
                            (ii) not more than $1.89 per bushel.
                    (B) Stocks to use ratio adjustment.--If the 
                Secretary estimates for any marketing year that the 
                ratio of ending stocks of corn to total use for the 
                marketing year will be--
                            (i) equal to or greater than 25 percent, 
                        the Secretary may reduce the loan rate for corn 
                        for the corresponding crop by an amount not to 
                        exceed 10 percent in any year;
                            (ii) less than 25 percent but not less than 
                        12.5 percent, the Secretary may reduce the loan 
                        rate for corn for the corresponding crop by an 
                        amount not to exceed 5 percent in any year; or
                            (iii) less than 12.5 percent the Secretary 
                        may not reduce the loan rate for corn for the 
                        corresponding crop.
                    (C) No effect on future years.--Any reduction in 
                the loan rate for corn under subparagraph (B) shall not 
                be considered in determining the loan rate for corn for 
                subsequent years.
                    (D) Other feed grains.--The loan rate for a 
                marketing assistance loan for grain sorghum, barley, 
                and oats, respectively, shall be established at such 
                level as the Secretary determines is fair and 
                reasonable in relation to the rate that loans are made 
                available for corn, taking into consideration the 
                feeding value of the commodity in relation to corn.
            (3) Upland cotton.--
                    (A) Loan rate.--Subject to subparagraph (B), the 
                loan rate for a marketing assistance loan for upland 
                cotton shall be established by the Secretary at such 
                loan rate, per pound, as will reflect for the base 
                quality of upland cotton, as determined by the 
                Secretary, at average locations in the United States a 
                rate that is not less than the smaller of--
                            (i) 85 percent of the average price 
                        (weighted by market and month) of the base 
                        quality of cotton as quoted in the designated 
                        United States spot markets during 3 years of 
                        the 5-year period ending July 31 in the year in 
                        which the loan rate is announced, excluding the 
                        year in which the average price was the highest 
                        and the year in which the average price was the 
                        lowest in the period; or
                            (ii) 90 percent of the average, for the 15-
                        week period beginning July 1 of the year in 
                        which the loan rate is announced, of the 5 
                        lowest-priced growths of the growths quoted for 
                        Middling 1\3/32\-inch cotton C.I.F. Northern 
                        Europe (adjusted downward by the average 
                        difference during the period April 15 through 
                        October 15 of the year in which the loan is 
                        announced between the average Northern European 
                        price quotation of such quality of cotton and 
                        the market quotations in the designated United 
                        States spot markets for the base quality of 
                        upland cotton), as determined by the Secretary.
                    (B) Limitations.--The loan rate for a marketing 
                assistance loan for upland cotton shall not be less 
                than $0.50 per pound or more than $0.5192 per pound.
            (4) Extra long staple cotton.--The loan rate for a 
        marketing assistance loan for extra long staple cotton shall 
        be--
                    (A) not less than 85 percent of the simple average 
                price received by producers of extra long staple 
                cotton, as determined by the Secretary, during 3 years 
                of the 5 previous marketing years, excluding the year 
                in which the average price was the highest and the year 
                in which the average price was the lowest in the 
                period; but
                    (B) not more than $0.7965 per pound.
            (5) Rice.--The loan rate for a marketing assistance loan 
        for rice shall be $6.50 per hundredweight.
            (6) Oilseeds.--
                    (A) Soybeans.--The loan rate for a marketing 
                assistance loan for soybeans shall be $4.92 per bushel.
                    (B) Sunflower seed, canola, rapeseed, safflower, 
                mustard seed, and flaxseed.--The loan rates for a 
                marketing assistance loan for sunflower seed, canola, 
                rapeseed, safflower, mustard seed, and flaxseed, 
                individually, shall be $0.087 per pound.
                    (C) Other oilseeds.--The loan rates for a marketing 
                assistance loan for other oilseeds shall be established 
                at such level as the Secretary determines is fair and 
                reasonable in relation to the loan rate available for 
                soybeans, except in no event shall the rate for the 
                oilseeds (other than cottonseed) be less than the rate 
                established for soybeans on a per-pound basis for the 
                same crop.
    (c) Term of Loan.--In the case of each loan commodity (other than 
upland cotton or extra long staple cotton), a marketing assistance loan 
under subsection (a) shall have a term of 9 months beginning on the 
first day of the first month after the month in which the loan is made. 
A marketing assistance loan for upland cotton or extra long staple 
cotton shall have a term of 10 months beginning on the first day of the 
first month after the month in which the loan is made. The Secretary 
may not extend the term of a marketing assistance loan for any loan 
commodity.
    (d) Repayment.--
            (1) Repayment rates for wheat and feed grains.--The 
        Secretary shall permit a producer to repay a marketing 
        assistance loan under subsection (a) for wheat, corn, grain 
        sorghum, barley, and oats at a level that the Secretary 
        determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodities by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodities; and
                    (D) allow the commodities produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally.
            (2) Repayment rates for upland cotton, oilseeds and rice.--
        The Secretary shall permit producers to repay a marketing 
        assistance loan under subsection (a) for upland cotton, 
        oilseeds and rice at a level that is the lesser of--
                    (A) the loan rate established for upland cotton, 
                oilseeds and rice, respectively, under subsection (b); 
                or
                    (B) the prevailing world market price for upland 
                cotton, oilseeds and rice, respectively (adjusted to 
                United States quality and location), as determined by 
                the Secretary.
            (3) Repayment rates for extra long staple cotton.--
        Repayment of a marketing assistance loan for extra long staple 
        cotton shall be at the loan rate established for the commodity 
        under subsection (b), plus interest (as determined by the 
        Secretary).
            (4) Prevailing world market price.--For purposes of 
        paragraph (2)(B) and subsection (f), the Secretary shall 
        prescribe by regulation--
                    (A) a formula to determine the prevailing world 
                market price for each loan commodity, adjusted to 
                United States quality and location; and
                    (B) a mechanism by which the Secretary shall 
                announce periodically the prevailing world market price 
                for each loan commodity.
            (5) Adjustment of prevailing world market price for upland 
        cotton.--
                    (A) In general.--During the period ending July 31, 
                2003, the prevailing world market price for upland 
                cotton (adjusted to United States quality and location) 
                established under paragraph (4) shall be further 
                adjusted if--
                            (i) the adjusted prevailing world market 
                        price is less than 115 percent of the loan rate 
                        for upland cotton established under subsection 
                        (b), as determined by the Secretary; and
                            (ii) the Friday through Thursday average 
                        price quotation for the lowest-priced United 
                        States growth as quoted for Middling (M) 1\3/
                        32\-inch cotton delivered C.I.F. Northern 
                        Europe is greater than the Friday through 
                        Thursday average price of the 5 lowest-priced 
                        growths of upland cotton, as quoted for 
                        Middling (M) 1\3/32\-inch cotton, delivered 
                        C.I.F. Northern Europe (referred to in this 
                        subsection as the ``Northern Europe price'').
                    (B) Further adjustment.--Except as provided in 
                subparagraph (C), the adjusted prevailing world market 
                price for upland cotton shall be further adjusted on 
                the basis of some or all of the following data, as 
                available:
                            (i) The United States share of world 
                        exports.
                            (ii) The current level of cotton export 
                        sales and cotton export shipments.
                            (iii) Other data determined by the 
                        Secretary to be relevant in establishing an 
                        accurate prevailing world market price for 
                        upland cotton (adjusted to United States 
                        quality and location).
                    (C) Limitation on further adjustment.--The 
                adjustment under subparagraph (B) may not exceed the 
                difference between--
                            (i) the Friday through Thursday average 
                        price for the lowest-priced United States 
                        growth as quoted for Middling 1\3/32\-inch 
                        cotton delivered C.I.F. Northern Europe; and
                            (ii) the Northern Europe price.
    (e) Loan Deficiency Payments.--
            (1) Availability.--Except as provided in paragraph (4), the 
        Secretary may make loan deficiency payments available to 
        producers who, although eligible to obtain a marketing 
        assistance loan under subsection (a) with respect to a loan 
        commodity, agree to forgo obtaining the loan for the commodity 
        in return for payments under this subsection.
            (2) Computation.--A loan deficiency payment under this 
        subsection shall be computed by multiplying--
                    (A) the loan payment rate determined under 
                paragraph (3) for the loan commodity; by
                    (B) the quantity of the loan commodity that the 
                producers on a farm are eligible to place under loan 
                but for which the producers forgo obtaining the loan in 
                return for payments under this subsection.
            (3) Loan payment rate.--For purposes of this subsection, 
        the loan payment rate shall be the amount by which--
                    (A) the loan rate established under subsection (b) 
                for the loan commodity; exceeds
                    (B) the rate at which a loan for the commodity may 
                be repaid under subsection (d).
            (4) Exception for extra long staple cotton.--This 
        subsection shall not apply with respect to extra long staple 
        cotton.
    (f) Special Marketing Loan Provisions for Upland Cotton.--
            (1) Cotton user marketing certificates.--
                    (A) Issuance.--Subject to subparagraph (D), during 
                the period ending July 31, 2003, the Secretary shall 
                issue marketing certificates or cash payments to 
                domestic users and exporters for documented purchases 
                by domestic users and sales for export by exporters 
                made in the week following a consecutive 4-week period 
                in which--
                            (i) the Friday through Thursday average 
                        price quotation for the lowest-priced United 
                        States growth, as quoted for Middling (M) 1\3/
                        32\-inch cotton, delivered C.I.F. Northern 
                        Europe exceeds the Northern Europe price by 
                        more than 1.25 cents per pound; and
                            (ii) the prevailing world market price for 
                        upland cotton (adjusted to United States 
                        quality and location) does not exceed 130 
                        percent of the loan rate for upland cotton 
                        established under subsection (b).
                    (B) Value of certificates or payments.--The value 
                of the marketing certificates or cash payments shall be 
                based on the amount of the difference (reduced by 1.25 
                cents per pound) in the prices during the 4th week of 
                the consecutive 4-week period multiplied by the 
                quantity of upland cotton included in the documented 
                sales.
                    (C) Administration of marketing certificates.--
                            (i) Redemption, marketing, or exchange.--
                        The Secretary shall establish procedures for 
                        redeeming marketing certificates for cash or 
                        marketing or exchange of the certificates for 
                        agricultural commodities owned by the Commodity 
                        Credit Corporation in such manner, and at such 
                        price levels, as the Secretary determines will 
                        best effectuate the purposes of cotton user 
                        marketing certificates. Any price restrictions 
                        that would otherwise apply to the disposition 
                        of agricultural commodities by the Commodity 
                        Credit Corporation shall not apply to the 
                        redemption of certificates under this 
                        paragraph.
                            (ii) Designation of commodities and 
                        products.--To the extent practicable, the 
                        Secretary shall permit owners of certificates 
                        to designate the commodities and products, 
                        including storage sites, 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), 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 with 
                        the date of the presentation of the certificate 
                        to the Commodity Credit Corporation.
                            (iii) Transfers.--Marketing certificates 
                        issued to domestic users and exporters of 
                        upland cotton may be transferred to other 
                        persons in accordance with regulations issued 
                        by the Secretary.
                    (D) Exception.--The Secretary shall not issue 
                marketing certificates or cash payments under 
                subparagraph (A) if, for the immediately preceding 
                consecutive 10-week period, the Friday through Thursday 
                average price quotation for the lowest priced United 
                States growth, as quoted for Middling (M) 1\3/32\-inch 
                cotton, delivered C.I.F. Northern Europe, adjusted for 
                the value of any certificate issued under this 
                paragraph, exceeds the Northern Europe price by more 
                than 1.25 cents per pound.
                    (E) Limitation on expenditures.--Total expenditures 
                under this paragraph shall not exceed $701,000,000 
                during fiscal years 1996 through 2002.
            (2) Special import quota.--
                    (A) Establishment.--The President shall carry out 
                an import quota program that provides that, during the 
                period ending July 31, 2003, whenever the Secretary 
                determines and announces that for any consecutive 10-
                week period, the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, 
                as quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered C.I.F. Northern Europe, adjusted for the 
                value of any certificates issued under paragraph (1), 
                exceeds the Northern Europe price by more than 1.25 
                cents per pound, there shall immediately be in effect a 
                special import quota.
                    (B) Quantity.--The quota shall be equal to 1 week's 
                consumption of upland cotton by domestic mills at the 
                seasonally adjusted average rate of the most recent 3 
                months for which data are available.
                    (C) Application.--The quota shall apply to upland 
                cotton purchased not later than 90 days after the date 
                of the Secretary's announcement under subparagraph (A) 
                and entered into the United States not later than 180 
                days after the date.
                    (D) Overlap.--A special quota period may be 
                established that overlaps any existing quota period if 
                required by subparagraph (A), except that a special 
                quota period may not be established under this 
                paragraph if a quota period has been established under 
                subsection (g).
                    (E) Preferential tariff treatment.--The quantity 
                under a special import quota shall be considered to be 
                an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (F) Definition.--In this paragraph, the term 
                ``special import quota'' means a quantity of imports 
                that is not subject to the over-quota tariff rate of a 
                tariff-rate quota.
    (g) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an import 
        quota program that provides that whenever the Secretary 
        determines and announces that the average price of the base 
        quality of upland cotton, as determined by the Secretary, in 
        the designated spot markets for a month exceeded 130 percent of 
        the average price of such quality of cotton in the markets for 
        the preceding 36 months, notwithstanding any other provision of 
        law, there shall immediately be in effect a limited global 
        import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent 3 months for which data are available.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12 months, the quantity of the quota next established 
                under this subsection shall be the smaller of 21 days 
                of domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to increase 
                the supply to 130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' means, 
                        using the latest official data of the Bureau of 
                        the Census, the Department of Agriculture, and 
                        the Department of the Treasury--
                                    (I) the carry-over of upland cotton 
                                at the beginning of the marketing year 
                                (adjusted to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the current 
                                crop; and
                                    (III) imports to the latest date 
                                available during the marketing year.
                            (ii) Demand.--The term ``demand'' means--
                                    (I) the average seasonally adjusted 
                                annual rate of domestic mill 
                                consumption in the most recent 3 months 
                                for which data are available; and
                                    (II) the larger of--
                                            (aa) average exports of 
                                        upland cotton during the 
                                        preceding 6 marketing years; or
                                            (bb) cumulative exports of 
                                        upland cotton plus outstanding 
                                        export sales for the marketing 
                                        year in which the quota is 
                                        established.
                            (iii) Limited global import quota.--The 
                        term ``limited global import quota'' means a 
                        quantity of imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may be 
                entered under the quota during the 90-day period 
                beginning on the date the quota is established by the 
                Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (f)(2).
    (h) Source of Loans.--
            (1) In general.--The Secretary shall provide the loans 
        authorized by this section and the Agricultural Adjustment Act 
        of 1938 (7 U.S.C. 1281 et seq.) through the Commodity Credit 
        Corporation and other means available to the Secretary.
            (2) Processors.--Whenever any loan or surplus removal 
        operation for any agricultural commodity is carried out through 
        purchases from or loans or payments to processors, the 
        Secretary shall, to the extent practicable, obtain from the 
        processors such assurances as the Secretary considers adequate 
        that the producers of the commodity have received or will 
        receive maximum benefits from the loan or surplus removal 
        operation.
    (i) Adjustments of Loans.--
            (1) In general.--The Secretary may make appropriate 
        adjustments in the loan levels for any commodity for 
        differences in grade, type, quality, location, and other 
        factors.
            (2) Loan level.--The adjustments shall, to the maximum 
        extent practicable, be made in such manner that the average 
        loan level for the commodity will, on the basis of the 
        anticipated incidence of the factors, be equal to the level of 
        support determined as provided in this section or the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).
    (j) Personal Liability of Producers for Deficiencies.--
            (1) In general.--Except as provided in paragraph (2), no 
        producer shall be personally liable for any deficiency arising 
        from the sale of the collateral securing any nonrecourse loan 
        made under this section or the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1281 et seq.) unless the loan was obtained 
        through a fraudulent representation by the producer.
            (2) Limitations.--Paragraph (1) shall not prevent the 
        Commodity Credit Corporation or the Secretary from requiring a 
        producer to assume liability for--
                    (A) a deficiency in the grade, quality, or quantity 
                of a commodity stored on a farm or delivered by the 
                producer;
                    (B) a failure to properly care for and preserve a 
                commodity; or
                    (C) a failure or refusal to deliver a commodity in 
                accordance with a program established under this 
                section or the Agricultural Adjustment Act of 1938.
            (3) Acquisition of collateral.--The Secretary may include 
        in a contract for a nonrecourse loan made under this section or 
        the Agricultural Adjustment Act of 1938 a provision that 
        permits the Commodity Credit Corporation, on and after the 
        maturity of the loan or any extension of the loan, to acquire 
        title to the unredeemed collateral without obligation to pay 
        for any market value that the collateral may have in excess of 
        the loan indebtedness.
            (4) Sugarcane and sugar beets.--A security interest 
        obtained by the Commodity Credit Corporation as a result of the 
        execution of a security agreement by the processor of sugarcane 
        or sugar beets shall be superior to all statutory and common 
        law liens on raw cane sugar and refined beet sugar in favor of 
        the producers of sugarcane and sugar beets and all prior 
        recorded and unrecorded liens on the crops of sugarcane and 
        sugar beets from which the sugar was derived.
    (k) Commodity Credit Corporation Sales Price Restrictions.--
            (1) In general.--The Commodity Credit Corporation may sell 
        any commodity owned or controlled by the Corporation at any 
        price that the Secretary determines will maximize returns to 
        the Corporation.
            (2) Nonapplication of sales price restrictions.--Paragraph 
        (1) shall not apply to--
                    (A) a sale for a new or byproduct use;
                    (B) a sale of peanuts or oilseeds for the 
                extraction of oil;
                    (C) a sale for seed or feed if the sale will not 
                substantially impair any loan program;
                    (D) a sale of a commodity that has substantially 
                deteriorated in quality or as to which there is a 
                danger of loss or waste through deterioration or 
                spoilage;
                    (E) a sale for the purpose of establishing a claim 
                arising out of a contract or against a person who has 
                committed fraud, misrepresentation, or other wrongful 
                act with respect to the commodity;
                    (F) a sale for export, as determined by the 
                Corporation; and
                    (G) a sale for other than a primary use.
            (3) Presidential disaster areas.--
                    (A) In general.--Notwithstanding paragraph (1), on 
                such terms and conditions as the Secretary may consider 
                in the public interest, the Corporation may make 
                available any commodity or product owned or controlled 
                by the Corporation for use in relieving distress--
                            (i) in any area in the United States 
                        (including the Virgin Islands) declared by the 
                        President to be an acute distress area because 
                        of unemployment or other economic cause, if the 
                        President finds that the use will not displace 
                        or interfere with normal marketing of 
                        agricultural commodities; and
                            (ii) in connection with any major disaster 
                        determined by the President to warrant 
                        assistance by the Federal Government under the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5121 et 
                        seq.).
                    (B) Costs.--Except on a reimbursable basis, the 
                Corporation shall not bear any costs in connection with 
                making a commodity available under subparagraph (A) 
                beyond the cost of the commodity to the Corporation 
                incurred in--
                            (i) the storage of the commodity; and
                            (ii) the handling and transportation costs 
                        in making delivery of the commodity to 
designated agencies at 1 or more central locations in each State or 
other area.
            (4) Efficient operations.--Paragraph (1) shall not apply to 
        the sale of a commodity the disposition of which is desirable 
        in the interest of the effective and efficient conduct of the 
        operations of the Corporation because of the small quantity of 
        the commodity involved, or because of the age, location, or 
        questionable continued storability of the commodity.

SEC. 15. PAYMENT LIMITATIONS.

    (a) In General.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308) is amended by striking paragraphs (1) through (4) and 
inserting the following:
            ``(1) Limitation on payments under production flexibility 
        contracts.--The total amount of contract payments made under 
        section 13 of the Agricultural Market Transition Act to a 
        person under 1 or more production flexibility contracts during 
        any fiscal year may not exceed $40,000.
            ``(2) Limitation on marketing loan gains and loan 
        deficiency payments.--
                    ``(A) Limitation.--The total amount of payments 
                specified in subparagraph (B) that a person shall be 
                entitled to receive under section 14 of the 
                Agricultural Market Transition Act for contract 
                commodities and oilseeds during any crop year may not 
                exceed $75,000.
                    ``(B) Description of payments.--The payments 
                referred to in subparagraph (A) are the following:
                            ``(i) Any gain realized by a producer from 
                        repaying a marketing assistance loan for a crop 
                        of any loan commodity at a lower level than the 
                        original loan rate established for the 
                        commodity under section 14(b) of the Act.
                            ``(ii) Any loan deficiency payment received 
                        for a loan commodity under section 14(e) of the 
                        Act.''.
    (b) Conforming Amendments.--
            (1) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
        1308) (as amended by subsection (a)) is amended--
                    (A) by redesignating paragraphs (5), (6), and (7) 
                as paragraphs (3), (4), and (5), respectively; and
                    (B) in the second sentence of paragraph (3)(A) (as 
                so redesignated), by striking ``paragraphs (6) and 
                (7)'' and inserting ``paragraphs (4) and (5)''.
            (2) Section 1305(d) of the Agricultural Reconciliation Act 
        of 1987 (Public Law 100-203; 7 U.S.C. 1308 note) is amended by 
        striking ``paragraphs (5) through (7) of section 1001, as 
        amended by this subtitle,'' and inserting ``paragraphs (3) 
        through (5) of section 1001,''.
            (3) Section 1001A of the Food Security Act of 1985 (7 
        U.S.C. 1308-1(a)(1)) is amended--
                    (A) in the first sentence of subsection (a)(1)--
                            (i) by striking ``section 1001(5)(B)(i)'' 
                        and inserting ``section 1001(3)(B)(i)'';
                            (ii) by striking ``under the Agricultural 
                        Act of 1949 (7 U.S.C. 1421 et seq.)''; and
                            (iii) by striking ``section 
                        1001(5)(B)(i)(II)'' and inserting ``section 
                        1001(3)(B)(i)(II)''; and
                    (B) in subsection (b)--
                            (i) in paragraph (1)--
                                    (I) by striking ``under the 
                                Agricultural Act of 1949''; and
                                    (II) by striking ``section 
                                1001(5)(B)(i)'' and inserting ``section 
                                1001(3)(B)(i)''; and
                            (ii) in paragraph (2)(B), by striking 
                        ``section 1001(5)(B)(i)(II)'' and inserting 
                        ``section 1001(3)(B)(i)(II)''.
            (4) Section 1001C(a) of the Food Security Act of 1985 (7 
        U.S.C. 1308-3(a)) is amended--
                    (A) by striking ``For each of the 1991 through 1997 
                crops, any'' and inserting ``Any'';
                    (B) by striking ``price support program loans, 
                payments, or benefits made available under the 
                Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),'' and 
                inserting ``loans or payments made available under the 
                Agricultural Market Transition Act''; and
                    (C) by striking ``during the 1989 through 1997 crop 
                years''.

SEC. 16. PEANUT PROGRAM.

    (a) Quota Peanuts.--
            (1) Availability of loans.--The Secretary shall make 
        nonrecourse loans available to producers of quota peanuts.
            (2) Loan rate.--The national average quota loan rate for 
        quota peanuts shall be $610 per ton.
            (3) Inspection, handling, or storage.--The loan amount may 
        not be reduced by the Secretary by any deductions for 
        inspection, handling, or storage.
            (4) Location and other factors.--The Secretary may make 
        adjustments in the loan rate for quota peanuts for location of 
        peanuts and such other factors as are authorized by section 411 
        of the Agricultural Adjustment Act of 1938.
    (b) Additional Peanuts.--
            (1) In general.--The Secretary shall make nonrecourse loans 
        available to producers of additional peanuts at such rates as 
        the Secretary finds appropriate, taking into consideration the 
        demand for peanut oil and peanut meal, expected prices of other 
        vegetable oils and protein meals, and the demand for peanuts in 
        foreign markets.
            (2) Announcement.--The Secretary shall announce the loan 
        rate for additional peanuts of each crop not later than 
        February 15 preceding the marketing year for the crop for which 
        the loan rate is being determined.
    (c) Area Marketing Associations.--
            (1) Warehouse storage loans.--
                    (A) In general.--In carrying out subsections (a) 
                and (b), the Secretary shall make warehouse storage 
                loans available in each of the producing areas 
                (described in section 1446.95 of title 7 of the Code of 
                Federal Regulations (January 1, 1989)) to a designated 
                area marketing association of peanut producers that is 
                selected and approved by the Secretary and that is 
                operated primarily for the purpose of conducting the 
                loan activities. The Secretary may not make warehouse 
                storage loans available to any cooperative that is 
                engaged in operations or activities concerning peanuts 
                other than those operations and activities specified in 
                this section and section 358e of the Agricultural 
                Adjustment Act of 1938 (7 U.S.C. 1359a).
                    (B) Administrative and supervisory activities.--An 
                area marketing association shall be used in 
                administrative and supervisory activities relating to 
                loans and marketing activities under this section and 
                section 358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
                    (C) Association costs.--Loans made to the 
                association under this paragraph shall include such 
                costs as the area marketing association reasonably may 
                incur in carrying out the responsibilities, operations, 
                and activities of the association under this section 
                and section 358e of the Agricultural Adjustment Act of 
                1938 (7 U.S.C. 1359a).
            (2) Pools for quota and additional peanuts.--
                    (A) In general.--The Secretary shall require that 
                each area marketing association establish pools and 
                maintain complete and accurate records by area and 
                segregation for quota peanuts handled under loan and 
                for additional peanuts placed under loan, except that 
                separate pools shall be established for Valencia 
                peanuts produced in New Mexico. Bright hull and dark 
                hull Valencia peanuts shall be considered as separate 
                types for the purpose of establishing the pools.
                    (B) Net gains.--Net gains on peanuts in each pool, 
                unless otherwise approved by the Secretary, shall be 
                distributed only to producers who placed peanuts in the 
                pool and shall be distributed in proportion to the 
                value of the peanuts placed in the pool by each 
                producer. Net gains for peanuts in each pool shall 
                consist of the following:
                            (i) Quota peanuts.--For quota peanuts, the 
                        net gains over and above the loan indebtedness 
                        and other costs or losses incurred on peanuts 
                        placed in the pool.
                            (ii) Additional peanuts.--For additional 
                        peanuts, the net gains over and above the loan 
                        indebtedness and other costs or losses incurred 
                        on peanuts placed in the pool for additional 
                        peanuts.
    (d) Losses.--Losses in quota area pools shall be covered using the 
following sources in the following order of priority:
            (1) Transfers from additional loan pools.--The proceeds due 
        any producer from any pool shall be reduced by the amount of 
        any loss that is incurred with respect to peanuts transferred 
        from an additional loan pool to a quota loan pool by the 
        producer under section 358-1(b)(8) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
            (2) Other producers in same pool.--Further losses in an 
        area quota pool shall be offset by reducing the gain of any 
        producer in the pool by the amount of pool gains attributed to 
        the same producer from the sale of additional peanuts for 
        domestic and export edible use.
            (3) Use of marketing assessments.--The Secretary shall use 
        funds collected under subsection (g) (except funds attributable 
        to handlers) to offset further losses in area quota pools. The 
        Secretary shall transfer to the Treasury those funds collected 
        under subsection (g) and available for use under this 
        subsection that the Secretary determines are not required to 
        cover losses in area quota pools.
            (4) Cross compliance.--Further losses in area quota pools, 
        other than losses incurred as a result of transfers from 
        additional loan pools to quota loan pools under section 358-
        1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1358-1(b)(8)), shall be offset by any gains or profits from 
        quota pools in other production areas (other than separate type 
        pools established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) in such manner as the Secretary 
        shall by regulation prescribe.
            (5) Increased assessments.--If use of the authorities 
        provided in the preceding paragraphs is not sufficient to cover 
        losses in an area quota pool, the Secretary shall increase the 
marketing assessment established under subsection (g) by such an amount 
as the Secretary considers necessary to cover the losses. The increased 
assessment shall apply only to quota peanuts in the production area 
covered by the pool. Amounts collected under subsection (g) as a result 
of the increased assessment shall be retained by the Secretary to cover 
losses in that pool.
    (e) Disapproval of Quotas.--Notwithstanding any other provision of 
law, no loan for quota peanuts may be made available by the Secretary 
for any crop of peanuts with respect to which poundage quotas have been 
disapproved by producers, as provided for in section 358-1(d) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
    (f) Quality Improvement.--
            (1) In general.--With respect to peanuts under loan, the 
        Secretary shall--
                    (A) promote the crushing of peanuts at a greater 
                risk of deterioration before peanuts of a lesser risk 
                of deterioration;
                    (B) ensure that all Commodity Credit Corporation 
                inventories of peanuts sold for domestic edible use 
                must be shown to have been officially inspected by 
                licensed Department inspectors both as farmer stock and 
                shelled or cleaned in-shell peanuts;
                    (C) continue to endeavor to operate the peanut 
                program so as to improve the quality of domestic 
                peanuts and ensure the coordination of activities under 
                the Peanut Administrative Committee established under 
                Marketing Agreement No. 146, regulating the quality of 
                domestically produced peanuts (under the Agricultural 
                Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
                amendments by the Agricultural Marketing Agreement Act 
                of 1937); and
                    (D) ensure that any changes made in the peanut 
                program as a result of this subsection requiring 
                additional production or handling at the farm level 
                shall be reflected as an upward adjustment in the 
                Department loan schedule.
            (2) Exports and other peanuts.--The Secretary shall require 
        that all peanuts in the domestic and export markets fully 
        comply with all quality standards under Marketing Agreement No. 
        146.
    (g) Marketing Assessment.--
            (1) In general.--The Secretary shall provide for a 
        nonrefundable marketing assessment. The assessment shall be 
        made on a per pound basis in an amount equal to 1.1 percent for 
        each of the 1994 and 1995 crops, 1.15 percent for the 1996 
        crop, and 1.2 percent for each of the 1997 through 2002 crops, 
        of the national average quota or additional peanut loan rate 
        for the applicable crop.
            (2) First purchasers.--
                    (A) In general.--Except as provided under 
                paragraphs (3) and (4), the first purchaser of peanuts 
                shall--
                            (i) collect from the producer a marketing 
                        assessment equal to the quantity of peanuts 
                        acquired multiplied by--
                                    (I) in the case of each of the 1994 
                                and 1995 crops, .55 percent of the 
                                applicable national average loan rate;
                                    (II) in the case of the 1996 crop, 
                                .6 percent of the applicable national 
                                average loan rate; and
                                    (III) in the case of each of the 
                                1997 through 2002 crops, .65 percent of 
                                the applicable national average loan 
                                rate;
                            (ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the quantity 
                        of peanuts acquired multiplied by .55 percent 
                        of the applicable national average loan rate; 
                        and
                            (iii) remit the amounts required under 
                        clauses (i) and (ii) to the Commodity Credit 
                        Corporation in a manner specified by the 
                        Secretary.
                    (B) Definition of first purchaser.--In this 
                subsection, the term ``first purchaser'' means a person 
                acquiring peanuts from a producer except that in the 
                case of peanuts forfeited by a producer to the 
                Commodity Credit Corporation, the term means the person 
                acquiring the peanuts from the Commodity Credit 
                Corporation.
            (3) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            (4) Loan peanuts.--In the case of peanuts that are pledged 
        as collateral for a loan made under this section, \1/2\ of the 
        assessment shall be deducted from the proceeds of the loan. The 
        remainder of the assessment shall be paid by the first 
        purchaser of the peanuts. For purposes of computing net gains 
        on peanuts under this section, the reduction in loan proceeds 
        shall be treated as having been paid to the producer.
            (5) Penalties.--If any person fails to collect or remit the 
        reduction required by this subsection or fails to comply with 
        the requirements for recordkeeping or otherwise as are required 
        by the Secretary to carry out this subsection, the person shall 
        be liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of peanuts involved in the 
                violation; by
                    (B) the national average quota peanut rate for the 
                applicable crop year.
            (6) Enforcement.--The Secretary may enforce this subsection 
        in the courts of the United States.
    (h) Crops.--Subsections (a) through (f) shall be effective only for 
the 1996 through 2002 crops of peanuts.
    (i) Marketing Quotas.--
            (1) In general.--Part VI of subtitle B of title III of the 
        Agricultural Adjustment Act of 1938 is amended--
                    (A) in section 358-1 (7 U.S.C. 1358-1)--
                            (i) in the section heading, by striking 
                        ``1991 through 1997 crops of'';
                            (ii) in subsections (a)(1), (b)(1)(B), 
                        (b)(2)(A), (b)(2)(C), and (b)(3)(A), by 
                        striking ``of the 1991 through 1997 marketing 
                        years'' each place it appears and inserting 
                        ``marketing year'';
                            (iii) in subsection (a)(3), by striking 
                        ``1990'' and inserting ``1990, for the 1991 
                        through 1995 marketing years, and 1995, for the 
                        1996 through 2002 marketing years'';
                            (iv) in subsection (b)(1)(A)--
                                    (I) by striking ``each of the 1991 
                                through 1997 marketing years'' and 
                                inserting ``each marketing year''; and
                                    (II) in clause (i), by inserting 
                                before the semicolon the following: ``, 
                                in the case of the 1991 through 1995 
                                marketing years, and the 1995 marketing 
                                year, in the case of the 1996 through 
                                2002 marketing years''; and
                            (v) in subsection (f), by striking ``1997'' 
                        and inserting ``2002'';
                    (B) in section 358b (7 U.S.C. 1358b)--
                            (i) in the section heading, by striking 
                        ``1991 through 1995 crops of''; and
                            (ii) in subsection (c), by striking 
                        ``1995'' and inserting ``2002'';
                    (C) in section 358c(d) (7 U.S.C. 1358c(d)), by 
                striking ``1995'' and inserting ``2002''; and
                    (D) in section 358e (7 U.S.C. 1359a)--
                            (i) in the section heading, by striking 
                        ``for 1991 through 1997 crops of peanuts''; and
                            (ii) in subsection (i), by striking 
                        ``1997'' and inserting ``2002''.
            (2) Elimination of quota floor.--Section 358-1(a)(1) of the 
        Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second 
        sentence.
            (3) Temporary quota allocation.--Section 358-1 of the Act 
        (7 U.S.C. 1358-1) is amended--
                    (A) in subsection (a)(1), by striking ``domestic 
                edible, seed,'' and inserting ``domestic edible use'';
                    (B) in subsection (b)(2)--
                            (i) in subparagraph (A), by striking 
                        ``subparagraph (B) and subject to''; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) Temporary quota allocation.--
                            ``(i) Allocation related to seed peanuts.--
                        Temporary allocation of quota pounds for the 
                        marketing year only in which the crop is 
                        planted shall be made to producers for each of 
                        the 1996 through 2002 marketing years as 
                        provided in this subparagraph.
                            ``(ii) Quantity.--The temporary quota 
                        allocation shall be equal to the pounds of seed 
                        peanuts planted on the farm, as may be adjusted 
                        under regulations prescribed by the Secretary.
                            ``(iii) Additional quota.--The temporary 
                        allocation of quota pounds under this paragraph 
                        shall be in addition to the farm poundage quota 
                        otherwise established under this subsection and 
                        shall be credited, for the applicable marketing 
                        year only, in total to the producer of the 
                        peanuts on the farm in a manner prescribed by 
                        the Secretary.
                            ``(iv) Effect of other requirements.--
                        Nothing in this section alters or changes the 
                        requirements regarding the use of quota and 
                        additional peanuts established by section 
                        358e(b).''; and
                    (C) in subsection (e)(3), strike ``and seed and use 
                on a farm''.
            (4) Undermarketings.--Part VI of subtitle B of title III of 
        the Act is amended--
                    (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
                            (i) in paragraph (1)(B), by striking 
                        ``including--'' and clauses (i) and (ii) and 
                        inserting ``including any increases resulting 
                        from the allocation of quotas voluntarily 
                        released for 1 year under paragraph (7).'';
                            (ii) in paragraph (3)(B), by striking 
                        ``include--'' and clauses (i) and (ii) and 
                        inserting ``include any increase resulting from 
                        the allocation of quotas voluntarily released 
                        for 1 year under paragraph (7).''; and
                            (iii) by striking paragraphs (8) and (9); 
                        and
                    (B) in section 358b(a) (7 U.S.C. 1358b(a))--
                            (i) in paragraph (1), by striking 
                        ``(including any applicable under marketings)'' 
                        both places it appears;
                            (ii) in paragraph (1)(A), by striking ``of 
                        undermarketings and'';
                            (iii) in paragraph (2), by striking 
                        ``(including any applicable under 
                        marketings)''; and
                            (iv) in paragraph (3), by striking 
                        ``(including any applicable undermarketings)''.
            (5) Disaster transfers.--Section 358-1(b) of the Act (7 
        U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is 
        further amended by adding at the end the following:
            ``(8) Disaster transfers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), additional peanuts produced on a farm 
                from which the quota poundage was not harvested and 
                marketed because of drought, flood, or any other 
                natural disaster, or any other condition beyond the 
                control of the producer, may be transferred to the 
                quota loan pool for pricing purposes on such basis as 
                the Secretary shall by regulation provide.
                    ``(B) Limitation.--The poundage of peanuts 
                transferred under subparagraph (A) shall not exceed the 
                difference between--
                            ``(i) the total quantity of peanuts meeting 
                        quality requirements for domestic edible use, 
                        as determined by the Secretary, marketed from 
                        the farm; and
                            ``(ii) the total farm poundage quota, 
                        excluding quota pounds transferred to the farm 
                        in the fall.
                    ``(C) Support rate.--Peanuts transferred under this 
                paragraph shall be supported at not more than 70 
                percent of the quota support rate for the marketing 
                years in which the transfers occur. The transfers for a 
                farm shall not exceed 25 percent of the total farm 
                quota pounds, excluding pounds transferred in the 
                fall.''.

SEC. 17. SUGAR PROGRAM.

    (a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to 18 cents 
per pound for raw cane sugar.
    (b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to 22.9 
cents per pound for refined beet sugar.
    (c) Term of Loans.--
            (1) In general.--Loans under this section during any fiscal 
        year shall be made available not earlier than the beginning of 
        the fiscal year and shall mature at the earlier of--
                    (A) the end of 9 months; or
                    (B) the end of the fiscal year.
            (2) Supplemental loans.--In the case of loans made under 
        this section in the last 3 months of a fiscal year, the 
        processor may repledge the sugar as collateral for a second 
        loan in the subsequent fiscal year, except that the second loan 
        shall--
                    (A) be made at the loan rate in effect at the time 
                the second loan is made; and
                    (B) mature in 9 months less the quantity of time 
                that the first loan was in effect.
    (d) Loan Type; Processor Assurances.--
            (1) Recourse loans.--Subject to paragraph (2), the 
        Secretary shall carry out this section through the use of 
        recourse loans.
            (2) Nonrecourse loans.--During any fiscal year in which the 
        tariff rate quota for imports of sugar into the United States 
        is established at, or is increased to, a level in excess of 
        1,500,000 short tons raw value, the Secretary shall carry out 
        this section by making available nonrecourse loans. Any 
        recourse loan previously made available by the Secretary under 
        this section during the fiscal year shall be changed by the 
        Secretary into a nonrecourse loan.
            (3) Processor assurances.--If the Secretary is required 
        under paragraph (2) to make nonrecourse loans available during 
        a fiscal year or to change recourse loans into nonrecourse 
        loans, the Secretary shall obtain from each processor that 
        receives a loan under this section such assurances as the 
        Secretary considers adequate to ensure that the processor will 
        provide payments to producers that are proportional to the 
        value of the loan received by the processor for sugar beets and 
        sugarcane delivered by producers served by the processor. The 
        Secretary may establish appropriate minimum payments for 
        purposes of this paragraph.
    (e) Marketing Assessment.--
            (1) Sugarcane.--Effective for marketings of raw cane sugar 
        during the 1996 through 2003 fiscal years, the first processor 
        of sugarcane shall remit to the Commodity Credit Corporation a 
        nonrefundable marketing assessment in an amount equal to--
                    (A) in the case of marketings during fiscal year 
                1996, 1.1 percent of the loan rate established under 
                subsection (a) per pound of raw cane sugar, processed 
                by the processor from domestically produced sugarcane 
                or sugarcane molasses, that has been marketed 
                (including the transfer or delivery of the sugar to a 
                refinery for further processing or marketing); and
                    (B) in the case of marketings during each of fiscal 
                years 1997 through 2003, 1.375 percent of the loan rate 
                established under subsection (a) per pound of raw cane 
                sugar, processed by the processor from domestically 
                produced sugarcane or sugarcane molasses, that has been 
                marketed (including the transfer or delivery of the 
                sugar to a refinery for further processing or 
                marketing).
            (2) Sugar beets.--Effective for marketings of beet sugar 
        during the 1996 through 2003 fiscal years, the first processor 
        of sugar beets shall remit to the Commodity Credit Corporation 
        a nonrefundable marketing assessment in an amount equal to--
                    (A) in the case of marketings during fiscal year 
                1996, 1.1794 percent of the loan rate established under 
                subsection (a) per pound of beet sugar, processed by 
                the processor from domestically produced sugar beets or 
                sugar beet molasses, that has been marketed; and
                    (B) in the case of marketings during each of fiscal 
                years 1997 through 2003, 1.47425 percent of the loan 
                rate established under subsection (a) per pound of beet 
                sugar, processed by the processor from domestically 
                produced sugar beets or sugar beet molasses, that has 
                been marketed.
            (3) Collection.--
                    (A) Timing.--A marketing assessment required under 
                this subsection shall be collected on a monthly basis 
                and shall be remitted to the Commodity Credit 
                Corporation not later than 30 days after the end of 
                each month. Any cane sugar or beet sugar processed 
                during a fiscal year that has not been marketed by 
                September 30 of the year shall be subject to assessment 
                on that date. The sugar shall not be subject to a 
                second assessment at the time that it is marketed.
                    (B) Manner.--Subject to subparagraph (A), marketing 
                assessments shall be collected under this subsection in 
                the manner prescribed by the Secretary and shall be 
                nonrefundable.
            (4) Penalties.--If any person fails to remit the assessment 
        required by this subsection or fails to comply with such 
        requirements for recordkeeping or otherwise as are required by 
        the Secretary to carry out this subsection, the person shall be 
        liable to the Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of cane sugar or beet sugar 
                involved in the violation; by
                    (B) the loan rate for the applicable crop of 
                sugarcane or sugar beets.
            (5) Enforcement.--The Secretary may enforce this subsection 
        in a court of the United States.
    (f) Forfeiture Penalty.--
            (1) In general.--A penalty shall be assessed on the 
        forfeiture of any sugar pledged as collateral for a nonrecourse 
        loan under this section.
            (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
        per pound.
            (3) Beet sugar.--The penalty for beet sugar shall bear the 
        same relation to the penalty for cane sugar as the marketing 
        assessment for sugar beets bears to the marketing assessment 
        for sugarcane.
            (4) Effect of forfeiture.--Any payments owed producers by a 
        processor that forfeits of any sugar pledged as collateral for 
        a nonrecourse loan shall be reduced in proportion to the loan 
        forfeiture penalty incurred by the processor.
    (g) Information Reporting.--
            (1) Duty of processors and refiners to report.--A sugarcane 
        processor, cane sugar refiner, and sugar beet processor shall 
        furnish the Secretary, on a monthly basis, such information as 
        the Secretary may require to administer sugar programs, 
        including the quantity of purchases of sugarcane, sugar beets, 
        and sugar, and production, importation, distribution, and stock 
        levels of sugar.
            (2) Penalty.--Any person willfully failing or refusing to 
        furnish the information, or furnishing willfully any false 
        information, shall be subject to a civil penalty of not more 
        than $10,000 for each such violation.
            (3) Monthly reports.--Taking into consideration the 
        information received under paragraph (1), the Secretary shall 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    (h) Marketing Allotments.--Part VII of subtitle B of title III of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is 
repealed.
    (i) Crops.--This section (other than subsection (h)) shall be 
effective only for the 1996 through 2002 crops of sugar beets and 
sugarcane.

SEC. 18. ADMINISTRATION.

    (a) Commodity Credit Corporation.--
            (1) Use of corporation.--The Secretary shall carry out this 
        subtitle through the Commodity Credit Corporation.
            (2) Salaries and expenses.--No funds of the Corporation 
        shall be used for any salary or expense of any officer or 
        employee of the Department of Agriculture.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this subtitle or the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1281 et seq.) shall be final and conclusive.
    (c) Regulations.--The Secretary may issue such regulations as the 
Secretary determines necessary to carry out this subtitle.

SEC. 19. ELIMINATION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--The Agricultural 
Adjustment Act of 1938 is amended--
            (1) in title III--
                    (A) in subtitle B--
                            (i) by striking parts II through V (7 
                        U.S.C. 1326-1351); and
                            (ii) in part VI--
                                    (I) by moving subsection (c) of 
                                section 358d (7 U.S.C. 1358d(c)) to 
                                appear after section 301(b)(17) (7 
                                U.S.C. 1301(b)(17)) and redesignating 
                                the subsection as paragraph (18); and
                                    (II) by striking sections 358, 
                                358a, and 358d (7 U.S.C. 1358, 1358a, 
                                and 1359); and
                    (B) by striking subtitle D (7 U.S.C. 1379a-1379j); 
                and
            (2) by striking title IV (7 U.S.C. 1401-1407).
    (b) Agricultural Act of 1949.--
            (1) Transfer of certain sections.--The Agricultural Act of 
        1949 is amended--
                    (A) by transferring sections 106, 106A, and 106B (7 
                U.S.C. 1445, 1445-1, 1445-2) to appear after section 
                314A of the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1314-1) and redesignating the transferred 
                sections as sections 315, 315A, and 315B, respectively;
                    (B) by transferring sections 111, 201(c), and 204 
                (7 U.S.C. 1445f, 1446(c), 1446e) to appear after 
                section 304 of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1304) and redesignating the transferred 
                sections as sections 305, 306, and 307, respectively; 
                and
                    (C) by transferring sections 404 and 416 (7 U.S.C. 
                1424 and 1431) to appear after section 390 of the 
                Agricultural Adjustment Act of 1938 (7 U.S.C. 1390) and 
                redesignating the transferred sections as sections 390A 
                and 390B, respectively.
            (2) Repeal.--The Agricultural Act of 1949 (7 U.S.C. 1421 et 
        seq.) (as amended by paragraph (1)) is repealed.
    (c) Conforming Amendments.--
            (1) Section 306 of the Agricultural Adjustment Act of 1938 
        (as transferred and redesignated by subsection (b)(1)(B)) is 
        amended by striking ``204'' and inserting ``307''.
            (2) Section 361 of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1361) is amended by striking ``, corn, wheat, cotton, 
        peanuts, and rice, established''.

SEC. 20. EFFECT OF AMENDMENTS.

    (a) Effect on Prior Crops.--Except as otherwise specifically 
provided and notwithstanding any other provision of law, this subtitle 
and the amendments made by this subtitle shall not affect the authority 
of the Secretary to carry out a price support or production adjustment 
program for any of the 1991 through 1995 crops of an agricultural 
commodity established under a provision of law in effect immediately 
before the date of the enactment of this Act.
    (b) Liability.--A provision of this subtitle or an amendment made 
by this subtitle shall not affect the liability of any person under any 
provision of law as in effect before the date of the enactment of this 
Act.

                        Subtitle B--Conservation

SEC. 31. CONSERVATION.

    (a) Funding.--Subtitle E of title XII of the Food Security Act of 
1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:

                         ``Subtitle E--Funding

``SEC. 1241. FUNDING.

    ``(a) Mandatory Expenses.--For each of fiscal years 1996 through 
2002, the Secretary shall use the funds of the Commodity Credit 
Corporation to carry out the programs authorized by--
            ``(1) subchapter B of chapter 1 of subtitle D (including 
        contracts extended by the Secretary pursuant to section 1437 of 
        the Food, Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 16 U.S.C. 3831 note));
            ``(2) subchapter C of chapter 1 of subtitle D; and
            ``(3) chapter 4 of subtitle D.
    ``(b) Livestock Environmental Assistance Program.--For each of 
fiscal years 1996 through 2002, $100,000,000 of the funds of the 
Commodity Credit Corporation shall be available for providing technical 
assistance, cost-sharing payments, and incentive payments for practices 
relating to livestock production under the livestock environmental 
assistance program under chapter 4 of subtitle D.''.
    (b) Livestock Environmental Assistance Program.--To carry out the 
programs funded under the amendment made by subsection (a), subtitle D 
of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) 
is amended by adding at the end the following:

        ``CHAPTER 4--LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM

``SEC. 1240. DEFINITIONS.

    ``In this chapter:
            ``(1) Land management practice.--The term `land management 
        practice' means a site-specific nutrient or manure management, 
        irrigation management, tillage or residue management, grazing 
        management, or other land management practice that the 
        Secretary determines is needed to protect, in the most cost 
        effective manner, water, soil, or related resources from 
        degradation due to livestock production.
            ``(2) Large confined livestock operation.--The term `large 
        confined livestock operation' means an operation that--
                    ``(A) is a confined animal feeding operation; and
                    ``(B) has more than--
                            ``(i) 700 mature dairy cattle;
                            ``(ii) 10,000 beef cattle;
                            ``(iii) 30,000 laying hens or broilers (if 
                        the facility has continuous overflow watering);
                            ``(iv) 100,000 laying hens or broilers (if 
                        the facility has a liquid manure system);
                            ``(v) 55,000 turkeys;
                            ``(vi) 15,000 swine; or
                            ``(vii) 10,000 sheep or lambs.
            ``(3) Livestock.--The term `livestock' means dairy cows, 
        beef cattle, laying hens, broilers, turkeys, swine, sheep, 
        lambs, and such other animals as determined by the Secretary.
            ``(4) Operator.--The term `operator' means a person who is 
        engaged in livestock production (as defined by the Secretary).
            ``(5) Structural practice.--The term `structural practice' 
        means the establishment of an animal waste management facility, 
        terrace, grassed waterway, contour grass strip, filterstrip, or 
        other structural practice that the Secretary determines is 
        needed to protect, in the most cost effective manner, water, 
        soil, or related resources from degradation due to livestock 
        production.

``SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF LIVESTOCK 
              ENVIRONMENTAL ASSISTANCE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 fiscal 
        years, the Secretary shall provide technical assistance, cost-
        sharing payments, and incentive payments to operators who enter 
        into contracts with the Secretary, through a livestock 
        environmental assistance program.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--An operator who 
                implements a structural practice shall be eligible for 
                technical assistance or cost-sharing payments, or both.
                    ``(B) Land management practices.--An operator who 
                performs a land management practice shall be eligible 
                for technical assistance or incentive payments, or 
                both.
            ``(3) Eligible land.--Assistance under this chapter may be 
        provided with respect to land that is used for livestock 
        production and on which a serious threat to water, soil, or 
        related resources exists, as determined by the Secretary, by 
        reason of the soil types, terrain, climatic, soil, topographic, 
        flood, or saline characteristics, or other factors or natural 
        hazards.
            ``(4) Selection criteria.--In providing technical 
        assistance, cost-sharing payments, and incentive payments to 
        operators in a region, watershed, or conservation priority area 
        in which an agricultural operation is located, the Secretary 
        shall consider--
                    ``(A) the significance of the water, soil, and 
                related natural resource problems; and
                    ``(B) the maximization of environmental benefits 
                per dollar expended.
    ``(b) Application and Term.--
            ``(1) In general.--A contract between an operator and the 
        Secretary under this chapter may--
                    ``(A) apply to 1 or more structural practices or 1 
                or more land management practices, or both; and
                    ``(B) have a term of not less than 5, nor more than 
                10, years, as determined appropriate by the Secretary, 
                depending on the practice or practices that are the 
                basis of the contract.
            ``(2) Duties of operators and secretary.--To receive cost-
        sharing or incentive payments, or technical assistance, 
        participating operators shall comply with all terms and 
        conditions of the contract and a plan, as established by the 
        Secretary.
    ``(c) Structural Practices.--
            ``(1) Competitive offer.--The Secretary shall administer a 
        competitive offer system for operators proposing to receive 
        cost-sharing payments in exchange for the implementation of 1 
        or more structural practices by the operator. The competitive 
        offer system shall consist of--
                    ``(A) the submission of a competitive offer by the 
                operator in such manner as the Secretary may prescribe; 
                and
                    ``(B) evaluation of the offer in light of the 
                selection criteria established under subsection (a)(4) 
                and the projected cost of the proposal, as determined 
                by the Secretary.
            ``(2) Concurrence of owner.--If the operator making an 
        offer to implement a structural practice is a tenant of the 
        land involved in agricultural production, for the offer to be 
        acceptable, the operator shall obtain the concurrence of the 
        owner of the land with respect to the offer.
    ``(d) Land Management Practices.--The Secretary shall establish an 
application and evaluation process for awarding technical assistance or 
incentive payments, or both, to an operator in exchange for the 
performance of 1 or more land management practices by the operator.
    ``(e) Cost-Sharing, Incentive Payments, and Technical Assistance.--
            ``(1) Cost-sharing payments.--
                    ``(A) In general.--The Federal share of cost-
                sharing payments to an operator proposing to implement 
                1 or more structural practices shall not be greater 
                than 75 percent of the projected cost of each practice, 
                as determined by the Secretary, taking into 
                consideration any payment received by the operator from 
                a State or local government.
                    ``(B) Limitation.--An operator of a large confined 
                livestock operation shall not be eligible for cost-
                sharing payments to construct an animal waste 
                management facility.
                    ``(C) Other payments.--An operator shall not be 
                eligible for cost-sharing payments for structural 
                practices on eligible land under this chapter if the 
                operator receives cost-sharing payments or other 
                benefits for the same land under chapter 1, 2, or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate determined by the 
        Secretary to be necessary to encourage an operator to perform 1 
        or more land management practices.
            ``(3) Technical assistance.--
                    ``(A) Funding.--The Secretary shall allocate 
                funding under this chapter for the provision of 
                technical assistance according to the purpose and 
                projected cost for which the technical assistance is 
                provided for a fiscal year. The allocated amount may 
                vary according to the type of expertise required, 
                quantity of time involved, and other factors as 
                determined appropriate by the Secretary. Funding shall 
                not exceed the projected cost to the Secretary of the 
                technical assistance provided for a fiscal year.
                    ``(B) Other authorities.--The receipt of technical 
                assistance under this chapter shall not affect the 
                eligibility of the operator to receive technical 
                assistance under other authorities of law available to 
                the Secretary.
    ``(f) Limitation on Payments.--
            ``(1) In general.--The total amount of cost-sharing and 
        incentive payments paid to a person under this chapter may not 
        exceed--
                    ``(A) $10,000 for any fiscal year; or
                    ``(B) $50,000 for any multiyear contract.
            ``(2) Regulations.--The Secretary shall issue regulations 
        that are consistent with section 1001 for the purpose of--
                    ``(A) defining the term `person' as used in 
                paragraph (1); and
                    ``(B) prescribing such rules as the Secretary 
                determines necessary to ensure a fair and reasonable 
                application of the limitations established under this 
                subsection.
    ``(g) Regulations.--Not later than 180 days after the effective 
date of this subsection, the Secretary shall issue regulations to 
implement the livestock environmental assistance program established 
under this chapter.''.
    (c) Conforming Amendments.--
            (1) Commodity credit corporation charter act.--Section 5(g) 
        of the Commodity Credit Corporation Charter Act (15 U.S.C. 
        714c(g)) is amended to read as follows:
    ``(g) Carry out conservation functions and programs.''.
            (2) Wetlands reserve program.--
                    (A) In general.--Section 1237 of the Food Security 
                Act of 1985 (16 U.S.C. 3837) is amended--
                            (i) in subsection (b)(2)--
                                    (I) by striking ``not less'' and 
                                inserting ``not more''; and
                                    (II) by striking ``2000'' and 
                                inserting ``2002''; and
                            (ii) in subsection (c), by striking 
                        ``2000'' and inserting ``2002''.
                    (B) Length of easement.--Section 1237A(e) of the 
                Food Security Act of 1985 (16 U.S.C. 3837a(e)) is 
                amended by striking paragraph (2) and inserting the 
                following:
            ``(2) shall be for 15 years, but in no case shall be a 
        permanent easement.''.
            (3) Conservation reserve program.--
                    (A) In general.--Section 1231(d) of the Food 
                Security Act of 1985 (16 U.S.C. 3831(d)) is amended by 
                striking ``total of'' and all that follows through the 
                period at the end of the subsection and inserting 
                ``total of 36,400,000 acres.''.
                    (B) Optional contract termination by producers.--
                Section 1235 of the Food Security Act of 1985 (16 
                U.S.C. 3835) is amended by adding at the end the 
                following:
    ``(e) Termination by Owner or Operator.--
            ``(1) Notice of termination.--An owner or operator of land 
        subject to a contract entered into under this subchapter may 
        terminate the contract by submitting to the Secretary written 
        notice of the intention of the owner or operator to terminate 
        the contract.
            ``(2) Effective date.--The contract termination shall take 
        effect 60 days after the date on which the owner or operator 
        submits the written notice under paragraph (1).
            ``(3) Prorated rental payment.--If a contract entered into 
        under this subchapter is terminated under this subsection 
        before the end of the fiscal year for which a rental payment is 
        due, the Secretary shall provide a prorated rental payment 
        covering the portion of the fiscal year during which the 
        contract was in effect.
            ``(4) Renewed enrollment.--The termination of a contract 
        entered into under this subchapter shall not affect the ability 
        of the owner or operator who requested the termination to 
        submit a subsequent bid to enroll the land that was subject to 
        the contract into the conservation reserve.
            ``(5) Conservation requirements.--If land that was subject 
        to a contract is returned to production of an agricultural 
        commodity, the conservation requirements under subtitles B and 
        C shall apply to the use of the land to the extent that the 
        requirements are similar to those requirements imposed on other 
        similar lands in the area, except that the requirements may not 
        be more onerous than the requirements imposed on other lands.
            ``(6) Repayment of cost share.--A person who terminates a 
        contract entered into under this subchapter within less than 3 
        years after entering into the contract shall reimburse the 
        Secretary for any cost share assistance provided under the 
        contract.''.
                    (C) Limitation.--Notwithstanding any other 
                provision of law, no new acres shall be enrolled in the 
                conservation reserve program established under 
                subchapter B of chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 
                in calendar year 1997.

         Subtitle C--Agricultural Promotion and Export Programs

SEC. 41. MARKET PROMOTION PROGRAM.

    Effective October 1, 1995, section 211(c)(1) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--
            (1) by striking ``and'' after ``1991 through 1993,''; and
            (2) by striking ``through 1997,'' and inserting ``through 
        1995, and not more than $100,000,000 for each of fiscal years 
        1996 through 2002,''.

SEC. 42. EXPORT ENHANCEMENT PROGRAM.

    Effective October 1, 1995, section 301(e)(1) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended to read as follows:
            ``(1) In general.--The Commodity Credit Corporation shall 
        make available to carry out the program established under this 
        section not more than--
                    ``(A) $350,000,000 for fiscal year 1996;
                    ``(B) $350,000,000 for fiscal year 1997;
                    ``(C) $500,000,000 for fiscal year 1998;
                    ``(D) $550,000,000 for fiscal year 1999;
                    ``(E) $579,000,000 for fiscal year 2000;
                    ``(F) $478,000,000 for fiscal year 2001; and
                    ``(G) $478,000,000 for fiscal year 2002.''.

                       Subtitle D--Miscellaneous

SEC. 51. CROP INSURANCE.

    (a) Catastrophic Risk Protection.--Section 508(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(b)) is amended--
            (1) in paragraph (4), by adding at the end the following:
                    ``(C) Delivery of coverage.--
                            ``(i) In general.--In full consultation 
                        with approved insurance providers, the 
                        Secretary may continue to offer catastrophic 
                        risk protection in a State (or a portion of a 
                        State) through local offices of the Department 
                        if the Secretary determines that there is an 
                        insufficient number of approved insurance 
                        providers operating in the State or portion to 
                        adequately provide catastrophic risk protection 
                        coverage to producers.
                            ``(ii) Coverage by approved insurance 
                        providers.--To the extent that catastrophic 
                        risk protection coverage by approved insurance 
                        providers is sufficiently available in a State 
                        as determined by the Secretary, only approved 
                        insurance providers may provide the coverage in 
                        the State.
                            ``(iii) Current policies.--Subject to 
                        clause (ii), all catastrophic risk protection 
                        policies written by local offices of the 
                        Department shall be transferred (including all 
                        fees collected for the crop year in which the 
                        approved insurance provider will assume the 
                        policies) to the approved insurance provider 
                        for performance of all sales, service, and loss 
                        adjustment functions.''; and
            (2) in paragraph (7), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--Effective for the spring-planted 
                1996 and subsequent crops, to be eligible for any 
                payment or loan under the Agricultural Market 
                Transition Act, the conservation reserve program, or 
                any benefit described in section 371 of the 
                Consolidated Farm and Rural Development Act (7 U.S.C. 
                2008f), a person shall--
                            ``(i) obtain at least the catastrophic 
                        level of insurance for each crop of economic 
                        significance in which the person has an 
                        interest; or
                            ``(ii) provide a written waiver to the 
                        Secretary that waives any eligibility for 
                        emergency crop loss assistance in connection 
                        with the crop.''.
    (b) Coverage of Seed Crops.--Section 519(a)(2)(B) of the Act (7 
U.S.C. 1519(a)(2)(B)) is amended by inserting ``seed crops,'' after 
``turfgrass sod,''.

SEC. 52. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION 
              FEES.

    Subsection (a) of section 2509 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read 
as follows:
    ``(a) Quarantine and Inspection Fees.--
            ``(1) Fees authorized.--The Secretary of Agriculture may 
        prescribe and collect fees sufficient--
                    ``(A) to cover the cost of providing agricultural 
                quarantine and inspection services in connection with 
                the arrival at a port in the customs territory of the 
                United States, or the preclearance or preinspection at 
                a site outside the customs territory of the United 
                States, of an international passenger, commercial 
                vessel, commercial aircraft, commercial truck, or 
                railroad car;
                    ``(B) to cover the cost of administering this 
                subsection; and
                    ``(C) through fiscal year 2002, to maintain a 
                reasonable balance in the Agricultural Quarantine 
                Inspection User Fee Account established under paragraph 
                (5).
            ``(2) Limitation.--In setting the fees under paragraph (1), 
        the Secretary shall ensure that the amount of the fees are 
        commensurate with the costs of agricultural quarantine and 
        inspection services with respect to the class of persons or 
        entities paying the fees. The costs of the services with 
        respect to passengers as a class includes the costs of related 
        inspections of the aircraft or other vehicle.
            ``(3) Status of fees.--Fees collected under this subsection 
        by any person on behalf of the Secretary are held in trust for 
        the United States and shall be remitted to the Secretary in 
        such manner and at such times as the Secretary may prescribe.
            ``(4) Late payment penalties.--If a person subject to a fee 
        under this subsection fails to pay the fee when due, the 
        Secretary shall assess a late payment penalty, and the overdue 
        fees shall accrue interest, as required by section 3717 of 
        title 31, United States Code.
            ``(5) Agricultural quarantine inspection user fee 
        account.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a no-year fund, to be 
                known as the `Agricultural Quarantine Inspection User 
                Fee Account', which shall contain all of the fees 
                collected under this subsection and late payment 
                penalties and interest charges collected under 
                paragraph (4) through fiscal year 2002.
                    ``(B) Use of account.--For each of the fiscal years 
                1996 through 2002, funds in the Agricultural Quarantine 
                Inspection User Fee Account shall be available, in such 
                amounts as are provided in advance in appropriations 
                Acts, to cover the costs associated with the provision 
                of agricultural quarantine and inspection services and 
                the administration of this subsection. Amounts made 
                available under this subparagraph shall be available 
                until expended.
                    ``(C) Excess fees.--Fees and other amounts 
                collected under this subsection in any of the fiscal 
                years 1996 through 2002 in excess of $100,000,000 shall 
                be available for the purposes specified in subparagraph 
                (B) until expended, without further appropriation.
            ``(6) Use of amounts collected after fiscal year 2002.--
        After September 30, 2002, the unobligated balance in the 
        Agricultural Quarantine Inspection User Fee Account and fees 
        and other amounts collected under this subsection shall be 
        credited to the Department of Agriculture accounts that incur 
        the costs associated with the provision of agricultural 
        quarantine and inspection services and the administration of 
        this subsection. The fees and other amounts shall remain 
        available to the Secretary until expended without fiscal year 
        limitation.
            ``(7) Staff years.--The number of full-time equivalent 
        positions in the Department of Agriculture attributable to the 
        provision of agricultural quarantine and inspection services 
        and the administration of this subsection shall not be counted 
        toward the limitation on the total number of full-time 
        equivalent positions in all agencies specified in section 5(b) 
        of the Federal Workforce Restructuring Act of 1994 (Public Law 
        103-226; 5 U.S.C. 3101 note) or other limitation on the total 
        number of full-time equivalent positions.''.

SEC. 53. COMMODITY CREDIT CORPORATION INTEREST RATE.

    Notwithstanding any other provision of law, the monthly Commodity 
Credit Corporation interest rate applicable to loans provided for 
agricultural commodities by the Corporation shall be 100 basis points 
greater than the rate determined under the applicable interest rate 
formula in effect on October 1, 1995.
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