[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 217 Introduced in House (IH)]

  1st Session
                                H. R. 217

   To authorize the provision of economic assistance to certain hog 
   producers in response to current disastrously low prices for hogs.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1999

  Mr. Nussle (for himself, Mr. Leach, and Mr. Latham) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
   To authorize the provision of economic assistance to certain hog 
   producers in response to current disastrously low prices for hogs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. NONRECOURSE MARKETING ASSISTANCE LOANS FOR CERTAIN HOG 
              PRODUCERS.

    (a) Nonrecourse Loans Authorized.--
            (1) In general.--In order to assist hog producers described 
        in paragraph (2) to market their hogs in an orderly manner 
        during a period of disastrously low prices, from October 1, 
        1998, to September 30, 1999, the Secretary of Agriculture may 
        make available to such producers nonrecourse marketing 
        assistance loans for hogs produced by such producers. The loans 
        shall be made under terms and conditions prescribed by the 
        Secretary and at the loan rate determined under subsection (b).
            (2) Eligible hog producers.--To be eligible for a loan 
        under this section, a producer shall market not more than 5,000 
        hogs during the period specified in paragraph (1).
    (b) Loan Rate.--The loan rate of a marketing assistance loan under 
this section shall be--
            (1) 85 percent of the average price for live hogs during 
        the preceding five-calendar 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
            (2) not more than $30 per hundredweight.
    (c) Term of Loan.--A marketing assistance loan under this section 
shall have a term of nine 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 the loan.
    (d) Repayment Rates.--The Secretary shall permit a producer to 
repay a marketing assistance loan under this section at a rate that is 
the lesser of--
            (1) the loan rate established under subsection (b), plus 
        interest (as determined by the Secretary); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity; and
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally.
    (e) Availability of Loan Deficiency Payments.--
            (1) In general.--The Secretary may make loan deficiency 
        payments available to producers who, although eligible to 
        obtain a marketing assistance loan under this section, agree to 
        forgo obtaining the loan 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); 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) 
                and in effect; exceeds
                    (B) the rate at which a loan for the commodity may 
                be repaid under subsection (d).
    (f) Payment Limitation.--The total gain that a person may receive 
under this section from the repayment of a marketing assistance loan 
under this section or the receipt of loan deficiency payments under 
subsection (e) may not exceed $75,000.
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