[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3754 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3754

To provide disaster assistance to agricultural producers for 2005 crop 
             and livestock losses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 13, 2005

 Mr. Pomeroy introduced the following bill; which was referred to the 
    Committee on Agriculture, and in addition to the Committees on 
     Resources and Small Business, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide disaster assistance to agricultural producers for 2005 crop 
             and livestock losses, 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 ``Emergency 
Agricultural Disaster Assistance Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                TITLE I--AGRICULTURAL PRODUCTION LOSSES

Sec. 101. Crop disaster assistance.
Sec. 102. Livestock assistance program.
Sec. 103. Conservation programs.
Sec. 104. Disaster relief for small business concerns damaged by 
                            drought.
Sec. 105. Assistance to fisheries for red tide outbreak in New England.
Sec. 106. Flooded crop and grazing land.
Sec. 107. Regulations.
TITLE II--NUTRITIONAL SUPPLEMENTAL ASSISTANCE AND AGRICULTURAL ECONOMIC 
                                STIMULUS

Sec. 201. Replenishment of Section 32.
Sec. 202. Extension of marketing loans.
Sec. 203. Supplemental economic loss payments.
Sec. 204. National dairy market loss payments.
                    TITLE III--EMERGENCY DESIGNATION

Sec. 301. Emergency designation.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Additional coverage.--The term ``additional coverage'' 
        has the meaning given the term in section 502(b)(1) of the 
        Federal Crop Insurance Act (7 U.S.C. 1502(b)(1)).
            (2) Insurable commodity.--The term ``insurable commodity'' 
        means an agricultural commodity (excluding livestock) for which 
        the producers on a farm are eligible to obtain a policy or plan 
        of insurance under the Federal Crop Insurance Act (7 U.S.C. 
        1501 et seq.).
            (3) Livestock.--The term ``livestock'' includes--
                    (A) cattle;
                    (B) bison;
                    (C) sheep;
                    (D) swine; and
                    (E) other livestock, as determined by the 
                Secretary.
            (4) Noninsurable commodity.--The term ``noninsurable 
        commodity'' means a crop for which the producers on a farm are 
        eligible to obtain assistance under section 196 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

                TITLE I--AGRICULTURAL PRODUCTION LOSSES

SEC. 101. CROP DISASTER ASSISTANCE.

    (a) In General.--The Secretary shall use such sums as are necessary 
of funds of the Commodity Credit Corporation to make emergency 
financial assistance authorized under this section available to 
producers on a farm that have incurred qualifying losses described in 
subsection (c).
    (b) Administration.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall make assistance available under this section in 
        the same manner as provided under section 815 of the 
        Agriculture, Rural Development, Food and Drug Administration 
        and Related Agencies Appropriations Act, 2001 (Public Law 106-
        387; 114 Stat. 1549A-55), including using the same loss 
        thresholds for quantity and economic losses as were used in 
        administering that section, except that the loss threshold 
        shall be 25 percent instead of 35 percent and the payment rate 
        shall be 50 percent of the established price, instead of 65 
        percent.
            (2) Loss thresholds for quality losses.--In the case of a 
        payment for quality loss for a crop under subsection (c)(2), 
        the loss thresholds for quality loss for the crop shall be 
        determined under subsection (d).
    (c) Qualifying Losses.--Assistance under this section may be made 
available for losses due to damaging weather or any related condition 
(including losses due to crop diseases and insects and delayed harvest) 
associated with crops that are (as determined by the Secretary) any 
combination of (as determined by the producers on a farm)--
            (1) quantity losses for the 2005 crop;
            (2) quality losses for the 2005 crop; or
            (3) severe economic losses for the 2005 crop.
    (d) Quality Losses.--
            (1) In general.--Subject to paragraph (3), the amount of a 
        payment made to producers on a farm for a quality loss for a 
        crop under subsection (c)(2) shall be equal to the amount 
        obtained by multiplying--
                    (A) 75 percent of the payment quantity determined 
                under paragraph (2); by
                    (B) 50 percent of the payment rate determined under 
                paragraph (3).
            (2) Payment quantity.--For the purpose of paragraph (1)(A), 
        the payment quantity for quality losses for a crop of a 
        commodity on a farm shall equal the lesser of--
                    (A) the actual production of the crop of the 
                commodity on the farm; or
                    (B) the quantity of expected production of the crop 
                of the commodity on the farm, using the formula used by 
                the Secretary to determine quantity losses for the crop 
                of the commodity under subsection (c)(1).
            (3) Payment rate.--For the purpose of paragraph (1)(B) and 
        in accordance with paragraphs (5) and (6), the payment rate for 
        quality losses for a crop of a commodity on a farm shall be 
        equal to the difference between--
                    (A) the per unit market value that the units of the 
                crop affected by the quality loss would have had if the 
                crop had not suffered a quality loss; and
                    (B) the per unit market value of the units of the 
                crop affected by the quality loss.
            (4) Eligibility.--For producers on a farm to be eligible to 
        obtain a payment for a quality loss for a crop under subsection 
        (c)(2), the amount obtained by multiplying the per unit loss 
        determined under paragraph (1) by the number of units affected 
        by the quality loss shall be at least 25 percent of the value 
        that all affected production of the crop would have had if the 
        crop had not suffered a quality loss.
            (5) Marketing contracts.--In the case of any production of 
        a commodity that is sold pursuant to 1 or more marketing 
        contracts (regardless of whether the contract is entered into 
        by the producers on the farm before or after harvest) and for 
        which appropriate documentation exists, the quantity designated 
        in the contracts shall be eligible for quality loss assistance 
        based on the 1 or more prices specified in the contracts.
            (6) Other production.--For any additional production of a 
        commodity for which a marketing contract does not exist or for 
        which production continues to be owned and produced by the 
        producers on a farm, quality losses shall be based on the 
        average local market discounts for reduced quality, as 
        determined by the appropriate State committee of the Farm 
        Service Agency.
            (7) Quality adjustments and discounts.--The appropriate 
        State committee of the Farm Service Agency shall identify the 
        appropriate quality adjustment and discount factors to be 
        considered in carrying out this subsection, including the 
        average local discount or loans made by the Farm Service Agency 
        or crop insurance coverage under the Federal Crop Insurance Act 
        (7 U.S.C. 1501 et seq.).
            (8) Eligible production.--The Secretary shall carry out 
        this subsection in a fair and equitable manner for all eligible 
        production, including the production of fruits and vegetables, 
        other specialty crops, and field crops.
    (e) Eligibility for Assistance.--
            (1) In general.--Except as provided in paragraph (2), the 
        producers on a farm shall not be eligible for assistance under 
        this section with respect to losses to an insurable commodity 
        or noninsurable commodity if the producers on the farm--
                    (A) in the case of an insurable commodity, did not 
                obtain a policy or plan of insurance for the insurable 
                commodity under the Federal Crop Insurance Act (7 
                U.S.C. 1501 et seq.) for the crop incurring the losses;
                    (B) in the case of a noninsurable commodity, did 
                not file the required paperwork, and pay the 
                administrative fee by the applicable State filing 
                deadline, for the noninsurable commodity under section 
                196 of the Federal Agriculture Improvement and Reform 
                Act of 1996 (7 U.S.C. 7333) for the crop incurring the 
                losses;
                    (C) had average adjusted gross income (as defined 
                by section 1001D(a) of the Food Security Act of 1985 (7 
                U.S.C. 1308-3a(a)), of greater than $2,500,000 in 2004; 
                or
                    (D) were not in compliance with highly erodible 
                land conservation and wetland conservation provisions.
            (2) Contract waiver.--The Secretary may waive paragraph (1) 
        with respect to the producers on a farm if the producers enter 
        into a contract with the Secretary under which the producers 
        agree--
                    (A) in the case of an insurable commodity, to 
                obtain a policy or plan of insurance under the Federal 
                Crop Insurance Act (7 U.S.C. 1501 et seq.) providing 
                additional coverage for the insurable commodity for 
                each of the next 2 crops, at a coverage level this 
                provides--
                            (i) not less than 65 percent of the actual 
                        production history for the crop produced on the 
                        farm; and
                            (ii) 100 percent of the expected market 
                        price or a comparable coverage (as determined 
                        by the Federal Crop Insurance Corporation); and
                    (B) in the case of a noninsurable commodity, to 
                file the required paperwork and pay the administrative 
                fee by the applicable State filing deadline, for the 
                noninsurable commodity for each of the next 2 crops 
                under section 196 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 7333).
            (3) Effect of violation.--In the event of the violation of 
        a contract under paragraph (2) by a producer, the producer 
        shall reimburse the Secretary for the full amount of the 
        assistance provided to the producer under this section.
    (f) Timing.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall make payments to producers on a farm for a crop under 
        this section not later than 60 days after the date the 
        producers on the farm submit to the Secretary a completed 
        application for the payments.
            (2) Interest.--If the Secretary does not make payments to 
        the producers on a farm by the date described in paragraph (1), 
        the Secretary shall pay to the producers on a farm interest on 
        the payments at a rate equal to the current (as of the sign-up 
        deadline established by the Secretary) market yield on 
        outstanding, marketable obligations of the United States with 
        maturities of 30 years.

SEC. 102. LIVESTOCK ASSISTANCE PROGRAM.

    (a) Emergency Financial Assistance.--The Secretary shall use such 
sums as are necessary of funds of the Commodity Credit Corporation to 
make and administer payments for livestock losses to producers for 2005 
losses in a county that has received an emergency designation by the 
President or the Secretary during calendar year 2005, of which an 
amount determined by the Secretary shall be made available for the 
American Indian livestock program under section 806 of the Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 (Public Law 106-387; 114 Stat. 1549A-51).
    (b) Administration.--The Secretary shall make assistance available 
under this section in the same manner as provided under section 806 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 
Stat. 1549A-51).
    (c) Mitigation.--In determining the eligibility for or amount of 
payments for which a producer is eligible under the livestock 
assistance program, the Secretary shall not penalize a producer that 
takes actions (recognizing disaster conditions) that reduce the average 
number of livestock the producer owned for grazing during the 
production year for which assistance is being provided.
    (d) Interest on Prior Payments.--
            (1) In general.--Payments that were due to a producer under 
        section 101(b) of the Emergency Supplemental Appropriations for 
        Hurricane Disasters Assistance Act, 2005 (Public Law 108-324; 
        118 Stat. 1234) but not paid by the Secretary as of August 28, 
        2005, shall earn interest at a rate equal to the current (as of 
        August 28, 2005) market yield on outstanding, marketable 
        obligations of the United States with maturities of 30 years.
            (2) Funding.--Interest payable under paragraph (1) shall be 
        carried out using only funds made available for travel 
        expenses, or salaries and expenses of Presidential appointees, 
        of the Department of Agriculture.
    (e) Livestock Indemnity Payments.--
            (1) In general.--The Secretary shall use such sums as are 
        necessary of funds of the Commodity Credit Corporation to make 
        livestock indemnity payments to producers on farms that have 
        incurred livestock losses during calendar year 2005 due to a 
        disaster, as determined by the Secretary, including losses due 
        to hurricanes, floods, and anthrax.
            (2) Payment rates.--The payment rate for indemnity payments 
        made to producers on a farm under paragraph (1) shall be equal 
        to--
                    (A)(i) in the case of a cow, steer, or bull that 
                weighs 500 pounds or more on the date of death of the 
                cow, steer, or bull, $400 per head; and
                    (ii) in the case of a cow, steer, or bull that 
                weighs less than 500 pounds on the date of death of the 
                cow, steer, or bull, $250 per head; and
                    (B) in the case of other types of livestock, a rate 
                determined by the Secretary based on documentation 
                provided by the producers on a farm, including a death 
                certificate or other certification provided by a 
                licensed veterinarian.

SEC. 103. CONSERVATION PROGRAMS.

    (a) Emergency Conservation Program.--The Secretary shall use an 
additional $100,000,000 of the funds of the Commodity Credit 
Corporation to provide assistance under the emergency conservation 
program established under title IV of the Agricultural Credit Act of 
1978 (16 U.S.C. 2201 et seq.).
    (b) Emergency Watershed Protection Program.--The Secretary shall 
use an additional $250,000,000 of the funds of the Commodity Credit 
Corporation to provide assistance under the emergency watershed 
protection program established under section 403 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2203).

SEC. 104. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED BY 
              DROUGHT.

    (a) Drought Disaster Authority.--
            (1) Definition of disaster.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``(1)'' before ``For the 
                purposes''; and
                    (B) by adding at the end the following:
    ``(B) For purposes of section 7(b)(2), the term `disaster' 
includes--
            ``(i) drought; and
            ``(ii) below average water levels in the Great Lakes, or on 
        any body of water in the United States that supports commerce 
        by small business concerns.''.
            (2) Drought disaster relief authority.--Section 7(b)(2) of 
        the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
                    (A) by inserting ``(including drought), with 
                respect to both farm-related and non-farm-related small 
                business concerns,'' before ``if the Administration''; 
                and
                    (B) in subparagraph (B), by striking ``the 
                Consolidated Farmers Home Administration Act of 1961 (7 
                U.S.C. 1961)'' and inserting the following: ``section 
                321 of the Consolidated Farm and Rural Development Act 
                (7 U.S.C. 1961), in which case, assistance under this 
                paragraph may be provided to farm-related and non-farm-
                related small business concerns, subject to the other 
                applicable requirements of this paragraph''.
    (b) Limitation on Loans.--From funds otherwise appropriated for 
loans under section 7(b) of the Small Business Act (15 U.S.C. 636(b)), 
not more than $9,000,000 may be used during each of fiscal years 2005 
through 2008, to provide drought disaster loans to non-farm-related 
small business concerns in accordance with this section and the 
amendments made by this section.
    (c) Prompt Response to Disaster Requests.--Section 7(b)(2)(D) of 
the Small Business Act (15 U.S.C. 636(b)(2)(D)) is amended in the 
second sentence by striking ``Upon receipt of such certification, the 
Administration may'' and inserting ``Not later than 30 days after the 
date of receipt of such certification by a Governor of a State, the 
Administration shall respond in writing to that Governor on its 
determination and the reasons therefore, and may''.
    (d) Rulemaking.--Not later than 45 days after the date of enactment 
of this Act, the Administrator of the Small Business Administration 
shall promulgate final rules to carry out this section and the 
amendments made by this section.

SEC. 105. ASSISTANCE TO FISHERIES FOR RED TIDE OUTBREAK IN NEW ENGLAND.

    (a) In General.--Out of any funds in the Treasury not otherwise 
appropriated, the Secretary of the Treasury shall transfer to the 
Secretary of Commerce to provide assistance to fisheries suffering due 
to the red tide outbreak in New England--
            (1) on October 1, 2005, $15,000,000; and
            (2) on October 1, 2006, $10,000,000.
    (b) Receipt and Acceptance.--The Secretary of Commerce shall be 
entitled to receive, shall accept, and shall use to carry out this 
section the funds transferred under subsection (a), without further 
appropriation.
    (c) Availability of Funds.--Funds transferred under subsection (a) 
shall remain available until expended.

SEC. 106. FLOODED CROP AND GRAZING LAND.

    (a) In General.--The Secretary shall compensate eligible owners of 
flooded crop and grazing land in--
            (1) the Devils Lake basin; and
            (2) the McHugh, Lake Laretta, and Rose Lake closed drainage 
        areas of the State of North Dakota.
    (b) Eligibility.--
            (1) In general.--To be eligible to receive compensation 
        under this section, an owner shall own land described in 
        subsection (a) that, during the 2 crop years preceding receipt 
        of compensation, was rendered incapable of use for the 
        production of an agricultural commodity or for grazing purposes 
        (in a manner consistent with the historical use of the land) as 
        the result of flooding, as determined by the Secretary.
            (2) Inclusions.--Land described in paragraph (1) shall 
        include--
                    (A) land that has been flooded;
                    (B) land that has been rendered inaccessible due to 
                flooding; and
                    (C) a reasonable buffer strip adjoining the flooded 
                land, as determined by the Secretary.
            (3) Administration.--The Secretary may establish--
                    (A) reasonable minimum acreage levels for 
                individual parcels of land for which owners may receive 
                compensation under this section; and
                    (B) the location and area of adjoining flooded land 
                for which owners may receive compensation under this 
                section.
    (c) Sign-Up.--The Secretary shall establish a sign-up program for 
eligible owners to apply for compensation from the Secretary under this 
section.
    (d) Compensation Payments.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        rate of an annual compensation payment under this section shall 
        be equal to 90 percent of the average annual per acre rental 
        payment rate (at the time of entry into the contract) for 
        comparable crop or grazing land that has not been flooded and 
        remains in production in the county where the flooded land is 
        located, as determined by the Secretary.
            (2) Reduction.--An annual compensation payment under this 
        section shall be reduced by the amount of any conservation 
        program rental payments or Federal agricultural commodity 
        program payments received by the owner for the land during any 
        crop year for which compensation is received under this 
        section.
            (3) Exclusion.--During any year in which an owner receives 
        compensation for flooded land under this section, the owner 
        shall not be eligible to participate in or receive benefits for 
        the flooded land under--
                    (A) the Federal crop insurance program established 
                under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
                seq.);
                    (B) the noninsured crop assistance program 
                established under section 196 of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7333); or
                    (C) any Federal agricultural crop disaster 
                assistance program.
    (e) Relationship to Agricultural Commodity Programs.--The 
Secretary, by regulation, shall provide for the preservation of 
cropland base, allotment history, and payment yields applicable to land 
described in subsection (a) that was rendered incapable of use for the 
production of an agricultural commodity or for grazing purposes as the 
result of flooding.
    (f) Use of Land.--
            (1) In general.--An owner that receives compensation under 
        this section for flooded land shall take such actions as are 
        necessary to not degrade any wildlife habitat on the land that 
        has naturally developed as a result of the flooding.
            (2) Recreational activities.--To encourage owners that 
        receive compensation for flooded land to allow public access to 
        and use of the land for recreational activities, as determined 
        by the Secretary, the Secretary may--
                    (A) offer an eligible owner additional 
                compensation; and
                    (B) provide compensation for additional acreage 
                under this section.
    (g) Funding.--
            (1) In general.--The Secretary shall use $15,000,000 of 
        funds of the Commodity Credit Corporation to carry out this 
        section.
            (2) Pro-rated payments.--In a case in which the amount made 
        available under paragraph (1) for a fiscal year is insufficient 
        to compensate all eligible owners under this section, the 
        Secretary shall pro-rate payments for that fiscal year on a per 
        acre basis.

SEC. 107. REGULATIONS.

    (a) In General.--The Secretary may promulgate such regulations as 
are necessary to implement this Act and the amendments made by this 
Act.
    (b) Procedure.--The promulgation of the regulations and 
administration of this Act and the amendments made by this Act shall be 
made without regard to--
            (1) the notice and comment provisions of section 553 of 
        title 5, United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture 
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
        notices of proposed rulemaking and public participation in 
        rulemaking; and
            (3) chapter 35 of title 44, United States Code (commonly 
        known as the ``Paperwork Reduction Act'').
    (c) Congressional Review of Agency Rulemaking.--In carrying out 
this section, the Secretary shall use the authority provided under 
section 808 of title 5, United States Code.

TITLE II--NUTRITIONAL SUPPLEMENTAL ASSISTANCE AND AGRICULTURAL ECONOMIC 
                                STIMULUS

SEC. 201. REPLENISHMENT OF SECTION 32.

    (a) Definition of Specialty Crop.--In this section:
            (1) In general.--The term ``specialty crop'' means any 
        agricultural crop.
            (2) Exception.--The term ``specialty crop'' does not 
        include--
                    (A) wheat;
                    (B) field grains;
                    (C) oilseeds;
                    (D) cotton;
                    (E) rice;
                    (F) peanuts; or
                    (G) tobacco.
    (b) Base State Grants.--
            (1) In general.--The Secretary shall use $25,500,000 of 
        funds of the Commodity Credit Corporation to make grants to the 
        several States and the Commonwealth of Puerto Rico to be used 
        to support activities that promote agriculture.
            (2) Amounts.--The amount of the grants shall be--
                    (A) $500,000 to each of the several States; and
                    (B) $250,000 to each of the Commonwealth of Puerto 
                Rico and the District of Columbia.
    (c) Grants for Value of Production.--The Secretary shall use 
$66,700,000 of funds of the Commodity Credit Corporation to make a 
grant to each of the several States, as follows:
            (1) California, $31,660,000.
            (2) Florida, $8,430,000.
            (3) Washington, $4,805,000.
            (4) Idaho, $1,835,000.
            (5) Arizona, $1,715,000.
            (6) Michigan, $1,625,000.
            (7) Oregon, $1,610,000.
            (8) Georgia, $1,365,000.
            (9) Texas, $1,330,000.
            (10) New York, $1,330,000.
            (11) Wisconsin, $1,285,000.
            (12) North Carolina, $770,000.
            (13) Colorado, $755,000.
            (14) North Dakota, $690,000.
            (15) Minnesota, $660,000.
            (16) Hawaii, $575,000.
            (17) New Jersey, $550,000.
            (18) Pennsylvania, $490,000.
            (19) New Mexico, $450,000.
            (20) Maine, $440,000.
            (21) Ohio, $400,000.
            (22) Indiana, $330,000.
            (23) Nebraska, $320,000.
            (24) Massachusetts, $320,000.
            (25) Virginia, $310,000.
            (26) Maryland, $250,000.
            (27) Louisiana, $230,000.
            (28) South Carolina, $220,000.
            (29) Tennessee, $200,000.
            (30) Illinois, $200,000.
            (31) Oklahoma, $195,000.
            (32) Alabama, $150,000.
            (33) Delaware, $145,000.
            (34) Mississippi, $125,000.
            (35) Kansas, $105,000.
            (36) Arkansas, $105,000.
            (37) Missouri, $105,000.
            (38) Connecticut, $90,000.
            (39) Utah, $70,000.
            (40) Montana, $70,000.
            (41) New Hampshire, $60,000.
            (42) Nevada, $60,000.
            (43) Vermont, $60,000.
            (44) Iowa, $50,000.
            (45) West Virginia, $45,000.
            (46) Wyoming, $35,000.
            (47) Kentucky, $30,000.
            (48) South Dakota, $20,000.
            (49) Rhode Island, $20,000.
            (50) Alaska, $10,000.
    (d) Special Crop Priority.--As a condition on the receipt of a 
grant under this section, a State shall agree to give priority to the 
support of specialty crops in the use of the grant funds.
    (e) Additional Grants.--
            (1) In general.--The Secretary shall use $175,000,000 of 
        funds of the Commodity Credit Corporation to make additional 
        grants in accordance with paragraph (2) to--
                    (A) the States of Alabama, Florida, Louisiana, 
                Mississippi, and Tennessee; and
                    (B) any other State that is housing evacuees or 
                suffering damage from Hurricane Katrina or a related 
                condition.
            (2) Purpose of grants.--A grant provided under paragraph 
        (1) shall--
                    (A) be in an amount determined by the Secretary; 
                and
                    (B) be used in accordance with paragraph (3) to 
                support activities that promote agriculture.
            (3) Use of funds.--A State may use funds from a grant 
        awarded under this subsection--
                    (A) to supplement State food bank programs or other 
                nutrition assistance programs;
                    (B) to promote the purchase, sale, or consumption 
                of agricultural products;
                    (C) to provide economic assistance to agricultural 
                producers, giving a priority to the support of 
                specialty crops; or
                    (D) for other purposes as determined by the 
                Secretary.

SEC. 202. EXTENSION OF MARKETING LOANS.

    (a) In General.--Notwithstanding section 1203(b) of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7933(b)), the 
Secretary shall extend the date of settlement of any marketing 
assistance loan made available under subtitle B of that Act (7 U.S.C. 
7931 et seq.) for a period of not less than 180 days after the date on 
which the loan reaches maturity.
    (b) Storage Payments.--During the period of an extension under 
subsection (a), the Secretary shall make storage payments for any 
commodity affected by the marketing assistance loan for which the 
extension was granted.

SEC. 203. SUPPLEMENTAL ECONOMIC LOSS PAYMENTS.

    The Secretary shall make a supplemental economic loss payment to 
any producer on a farm that received a payment or loan for crop year 
2005 under title I of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7901 et seq.) at a rate equal to the product obtained by 
multiplying--
            (1) 20 percent of the direct payment rate in effect for the 
        program crop of the farmer;
            (2) the program crop base of the farmer; and
            (3) the program payment yield for each program crop of the 
        farmer.

SEC. 204. NATIONAL DAIRY MARKET LOSS PAYMENTS.

    (a) In General.--Section 1502 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7982) is amended by striking ``2005'' 
each place it appears in subsections (f) and (g)(1) and inserting 
``2006''.
    (b) Period of Effectiveness.--Notwithstanding section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
907), the amendment made by subsection (a) shall be effective only 
during the period beginning on the first day of the first month 
beginning after the date of enactment of this Act and ending September 
30, 2006.

                    TITLE III--EMERGENCY DESIGNATION

SEC. 301. EMERGENCY DESIGNATION.

     The amounts provided under this Act are designated as an emergency 
requirement pursuant to section 402 of H. Con. Res. 95 (109th 
Congress).
                                 <all>