[Congressional Record Volume 142, Number 13 (Wednesday, January 31, 1996)]
[Senate]
[Pages S589-S663]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______


             THE AGRICULTURAL MARKET TRANSITION ACT OF 1996

                                 ______


               GREGG (AND REID) AMENDMENTS NOS. 3123-3124

  (Ordered to lie on the table.)
  
[[Page S590]]

  Mr. GREGG (for himself and Mr. Reid) submitted two amendments 
intended to be proposed by them to the bill (S. 1541) to extend, 
reform, and improve agricultural commodity, trade, conservation, and 
other programs, and for other purposes; as follows:

                           Amendment No. 3123

       Strike section 17 relating to the sugar program.
                                                                    ____


                           Amendment No. 3124

       On page 43, strike lines 10 through 19.
       Strike section 17 relating to the sugar program and insert 
     the following:

     SEC. 17. ELIMINATION OF SUGAR PRICE SUPPORT AND PRODUCTION 
                   ADJUSTMENT PROGRAMS.

       (a) Acreage Allotments and Marketing Quotas.--Part VII of 
     subtitle B of title III of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1359aa et seq.) is repealed.
       (b) Sugar Loan Forfeitures.--Section 902 of the Food 
     Security Act of 1985 (7 U.S.C. 1446 note) is amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively.
       (c) Commodity Credit Corporation.--Section 5(a) of the 
     Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) 
     is amended by inserting after ``agricultural commodities'' 
     the following: ``(other than sugar)''.
       (d) Section 32.--The second sentence of the first paragraph 
     of section 32 of the Act entitled ``An Act to amend the 
     Agricultural Adjustment Act, and for other purposes'', 
     approved August 24, 1935 (7 U.S.C. 612c), is amended--
       (1) by inserting ``(other than sugar)'' after 
     ``commodities'' each place it appears; and
       (2) by inserting ``(other than sugar)'' after 
     ``commodities'' each place it appears.
       (e) Transition Provisions.--The amendments made by this 
     section shall not affect the liability of any person under 
     any provision of law as in effect before the application of 
     the amendments in accordance with subsection (f).
       (f) Application of Section.--This section and the 
     amendments made by this section shall apply beginning with 
     the 1996 crop of sugar beets and sugarcane.
                                 ______


                       DORGAN AMENDMENT NO. 3125

  (Ordered to lie on the table.)
  Mr. DORGAN submitted an amendment intended to be proposed by him to 
the bill S. 1541, supra; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Farm 
     Security Act of 1996''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--COMMODITY PROGRAMS

Sec. 101. Wheat, feed grain, and oilseed program.
Sec. 102. Upland cotton program.
Sec. 103. Rice program.
Sec. 104. Peanut program.
Sec. 105. Dairy program.
Sec. 106. Sugar program.
Sec. 107. Sheep industry transition program.
Sec. 108. Suspension of permanent price support authority.
Sec. 109. Extension of related price support provisions.
Sec. 110. Crop insurance administrative fee.
Sec. 111. Effective date.

                         TITLE II--CONSERVATION

Sec. 201. Conservation reserve program.
Sec. 202. Environmental quality incentives program.

                    TITLE III--NUTRITION ASSISTANCE

Sec. 301. Food stamp program.
Sec. 302. Commodity distribution program; commodity supplemental food 
              program.
Sec. 303. Emergency food assistance program.
Sec. 304. Soup kitchens program.
Sec. 305. National commodity processing.
                      TITLE I--COMMODITY PROGRAMS

     SEC. 101. WHEAT, FEED GRAIN, AND OILSEED PROGRAM.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Covered commodities.--The term `covered commodities' 
     means wheat, feed grains, and oilseeds.
       ``(2) Feed grains.--The term `feed grains' means corn, 
     grain sorghum, barley, oats, millet, rye, or as designated by 
     the Secretary, other feed grains.
       ``(3) Oilseeds.--The term `oilseeds' means soybeans, 
     sunflower seed, rapeseed, canola, safflower, flaxseed, 
     mustard seed, or as designated by the Secretary, other 
     oilseeds.
       ``(b) Adjustment Account.--
       ``(1) Definition of payment bushel of production.--In this 
     subsection, the term `payment bushel of production' means--
       ``(A) in the case of wheat, \7/10\ of a bushel;
       ``(B) in the case of corn, a bushel; and
       ``(C) in the case of other feed grains, a quantity 
     determined by the Secretary.
       ``(2) Establishment.--The Secretary shall establish an 
     Adjustment Account (referred to in this subsection as the 
     `Account') for making--
       ``(A) payments to producers of the 1996 through 2002 crops 
     of covered commodities who participate in the marketing loan 
     program established under subsection (c); and
       ``(B) payments to producers of the 1994 and 1995 crops of 
     covered commodities that are authorized, but not paid, under 
     sections 105B and 107B prior to the date of enactment of this 
     section.
       ``(3) Amount in account.--The Secretary shall transfer from 
     funds of the Commodity Credit Corporation into the Account--
       ``(A) $3,000,000,000 for fiscal year 1996; and
       ``(B) $3,900,000,000 for each of fiscal years 1997 through 
     2002;

     to remain available until expended.
       ``(4) Payments.--The Secretary shall use funds in the 
     Account to make payments to producers of wheat and feed 
     grains in accordance with this subsection.
       ``(5) Tier 1 support.--
       ``(A) In general.--The producers on a farm referred to in 
     paragraph (2) shall be entitled to a payment computed by 
     multiplying--
       ``(i) the payment quantity determined under subparagraph 
     (B); by
       ``(ii) the payment factor determined under subparagraph 
     (C).
       ``(B) Payment quantity.--
       ``(i) In general.--Subject to clause (ii), the payment 
     quantity for payments under subparagraph (A) shall be 
     determined by the Secretary based on--

       ``(I) 90 percent of the 5-year average of the quantity of 
     wheat and feed grains produced on the farm;
       ``(II) an adjustment to reflect any disaster or other 
     circumstance beyond the control of the producers that 
     adversely affected production of wheat or feed grains, as 
     determined by the Secretary; and
       ``(III) an adjustment for planting resource conservation 
     crops on the crop acreage base for covered commodities, and 
     adopting conserving uses, on the base not enrolled in the 
     environmental reserve program provided in paragraph (6).

       ``(ii) Limitations.--The quantity determined under clause 
     (i) for an individual, directly or indirectly, shall not 
     exceed 30,000 payment bushels of wheat or feed grains and may 
     be adjusted by the Secretary to reflect the availability of 
     funds.
       ``(C) Payment factor.--
       ``(i) Wheat.--The payment factor for wheat under 
     subparagraph (A) shall be equal to the difference between a 
     price established by the Secretary, of not to exceed $4.00 
     per bushel, and the greater of--

       ``(I) the marketing loan rate for the crop of wheat; or
       ``(II) the average domestic price for wheat for the crop 
     for the calendar year in which the crop is normally 
     harvested.

       ``(ii) Corn.--The payment factor for corn under 
     subparagraph (A) shall be equal to the difference between a 
     price established by the Secretary, of not to exceed $2.75 
     per bushel, and the greater of--

       ``(I) the marketing loan rate for the crop of corn; or
       ``(II) the average domestic price for corn for the crop for 
     the calendar year in which the crop is normally harvested;

       ``(iii) Other feed grains.--The payment factor for other 
     feed grains under subparagraph (A) shall be established by 
     the Secretary at such level as the Secretary determines is 
     fair and reasonable in relation to the payment factor for 
     corn.
       ``(D) Advance payment.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), the Secretary shall make available to producers on a 
     farm 50 percent of the projected payment under this 
     subsection at the time the producers agree to participate in 
     the program.
       ``(ii) 1995 payments.--In the case of producers on a farm 
     who were prevented from planting, or incurred a reduced yield 
     of 20 percent or more of, the 1995 crop due to weather or 
     related condition, the Secretary may settle claims for the 
     repayment by the producers on terms determined by the 
     Secretary to be fair and equitable, except that no claim 
     shall be reduced by more than $3,500.
       ``(iii) 1996 payments.--

       ``(I) In general.--In the case of 1996 crops, advanced 
     payments shall be made in accordance with the formula under 
     subclause (II).
       ``(II) Formula.--Payments authorized under this clause 
     shall be based on a rate equal to 50 percent of the average 
     deficiency payment rate for the 1990 through 1994 crops.
       ``(III) Nonrefundable.--Payments authorized under this 
     clause shall not be refundable.

       ``(6) Environmental reserve program.--
       ``(A) In general.--The Secretary may enter into 1 to 5 year 
     contracts with producers on a farm referred to in paragraph 
     (2) for the purposes of enrolling flexible acreage base for 
     conserving use purposes.
       ``(B) Limitation.--Flexible acreage base enrolled in the 
     environmental reserve program shall not be eligible for 
     benefits provided in paragraph (5)(B).
       ``(c) Marketing Loans.--
       ``(1) In general.--The Secretary shall make available to 
     producers on a farm marketing loans for each of the 1996 
     through 2002 crops of covered commodities produced on the 
     farm.
       ``(2) Eligibility.--
       ``(A) In general.--To be eligible for a loan under this 
     subsection, the producers on a farm may not plant covered 
     commodities on the farm in excess of the flexible acreage 
     base of the farm determined under section 502.
     
[[Page S591]]

       ``(B) Amount.--The Secretary shall provide marketing loans 
     for their normal production of covered commodities produced 
     on a farm.
       ``(3) Loan rate.--
       ``(A) In general.--Loans made under this subsection shall 
     be made at the rate of 90 percent of the average price for 
     the commodity for the previous 5 crop years, as determined by 
     the Secretary.
       ``(B) Adjustments.--For each of the 1996 through 2002 crops 
     of covered commodities, the Secretary may not adjust local 
     loan rates by a factor greater than 3 percent of the national 
     loan rate.
       ``(4) Repayment.--
       ``(A) Calculation.--Producers on a farm may repay loans 
     made under this subsection for a crop at a level that is the 
     lesser of--
       ``(i) the loan level determined for the crop; or
       ``(ii) the prevailing domestic market price for the 
     commodity (adjusted to location and quality), as determined 
     by the Secretary.
       ``(B) Prevailing domestic market price.--The Secretary 
     shall prescribe by regulation--
       ``(i) a formula to determine the prevailing domestic market 
     price for each covered commodity; and
       ``(ii) a mechanism by which the Secretary shall announce 
     periodically the prevailing domestic market prices 
     established under this subsection.
       ``(d) Loan Deficiency Payments.--
       ``(1) In general.--The Secretary may, for each of the 1996 
     through 2002 crops of covered commodities, make payments 
     (referred to in this subsection as `loan deficiency 
     payments') available to producers who, although eligible to 
     obtain a marketing loan under subsection (c), agree to forgo 
     obtaining the loan in return for payments under this 
     subsection.
       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan payment rate; by
       ``(B) the quantity of a covered commodity the producer is 
     eligible to place under loan but for which the producer 
     forgoes obtaining the loan in return for payments under this 
     subsection.
       ``(3) Loan payment rate.--
       ``(A) In general.--For the purposes of this subsection, the 
     loan payment rate shall be the amount by which--
       ``(i) the marketing loan rate determined for the crop under 
     subsection (c)(3); exceeds
       ``(ii) the level at which a loan may be repaid under 
     subsection (c)(4).
       ``(B) Date.--The date on which the calculation required 
     under subparagraph (A) for the producers on a farm shall be 
     determined by the producers, except that the date may not be 
     later than the earlier of--
       ``(i) the date the producers lost beneficial interest in 
     the crop; or
       ``(ii) the end of the marketing year for the crop.
       ``(4) Application.--Producers on a farm may apply for a 
     payment for a covered commodity under this subsection at any 
     time prior to the end of the marketing year for the 
     commodity.
       ``(e) Equitable Relief.--If the failure of a producer to 
     comply fully with the terms and conditions of programs 
     conducted under this section precludes the making of loans 
     and payments, the Secretary may, nevertheless, make the loans 
     and payments in such amounts as the Secretary determines are 
     equitable in relation to the seriousness of the failure.
       ``(f) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(g) Assignment of Payments.--The provisions of section 
     8(g) of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(g)) (relating to assignment of payments) shall 
     apply to payments under this section.
       ``(h) Tenants and Sharecroppers.--In carrying out this 
     section, the Secretary shall provide adequate safeguards to 
     protect the interest of tenants and sharecroppers.
       ``(i) Crops.--This section shall be effective only for the 
     1996 through 2002 crops of a covered commodity.''.
       (b) Flexible Acreage Base.--
       (1) Definitions.--Section 502 of the Agricultural Act of 
     1949 (7 U.S.C. 1462) is amended by striking paragraphs (2) 
     and (3) and inserting the following:
       ``(2) Feed grains.--The term `feed grains' means corn, 
     grain sorghum, barley, oats, millet, rye, or as designated by 
     the Secretary, other feed grains.
       ``(3) Go crops.--The term `GO crops' means wheat, feed 
     grains, and oilseeds.
       ``(4) Oilseeds.--The term `oilseed' means a crop of 
     soybeans, sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, or, if designated by the Secretary, 
     other oilseeds.
       ``(5) Program crop.--The term `program crop' means a GO 
     crop and a crop of upland cotton or rice.''.
       (2) Crop acreage bases.--Section 503(a) of the Act (7 
     U.S.C. 1463(a)) is amended by striking paragraph (1) and 
     inserting the following:
       ``(1) In general.--
       ``(A) Go crops.--The Secretary shall provide for the 
     establishment and maintenance of a single crop acreage base 
     for GO crops, including any GO crops produced under an 
     established practice of double cropping.
       ``(B) Cotton and rice.--The Secretary shall provide for the 
     establishment and maintenance of crop acreage bases for 
     cotton and rice crops, including any program crop produced 
     under an established practice of double cropping.''.

     SEC. 102. UPLAND COTTON PROGRAM.

       (a) Extension.--Section 103B of the Agricultural Act of 
     1949 (7 U.S.C. 1444-2) is amended--
       (1) in the section heading, by striking ``1997'' and 
     inserting ``2002'';
       (2) in subsections (a)(1), (b)(1), (c)(1), and (o), by 
     striking ``1997'' each place it appears and inserting 
     ``2002'';
       (3) in subsection (a)(5), by striking ``1998'' each place 
     it appears and inserting ``2002'';
       (4) in the heading of subsection (c)(1)(D)(v)(II), by 
     striking ``1997'' and inserting ``2002'';
       (5) in subsection (e)(1)(D), by striking ``the 1997 crop'' 
     and inserting ``each of the 1997 through 2002 crops''; and
       (6) in subsections (e)(3)(A) and (f)(1), by striking 
     ``1995'' each place it appears and inserting ``2002''.
       (b) Increase in Nonpayment Acres.--Section 103B(c)(1)(C) of 
     the Act is amended by striking ``85 percent'' and inserting 
     ``80 percent for each of the 1996 through 2002 crops''.
       (c) Advance Payment.--Section 103B(c)(1) of the Act is 
     amended by adding at the end the following:
       ``(F) Advance payment.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), the Secretary shall make available to producers on a 
     farm 50 percent of the projected payment under this 
     subsection at the time the producers agree to participate in 
     the program.
       ``(ii) 1995 payments.--In the case of producers on a farm 
     who were prevented from planting, or incurred a reduced yield 
     of 20 percent or more of, the 1995 crop due to weather or 
     related condition, the Secretary may settle claims for the 
     repayment by the producers on terms determined by the 
     Secretary to be fair and equitable, except that no claim 
     shall be reduced by more than $3,500.
       ``(iii) 1996 payments.--

       ``(I) In general.--In the case of 1996 crops, advanced 
     payments shall be made in accordance with the formula under 
     subclause (II).
       ``(II) Formula.--Payments authorized under this clause 
     shall be based on a rate equal to 50 percent of the average 
     deficiency payment rate for the 1990 through 1994 crops.
       ``(III) Nonrefundable.--Payments authorized under this 
     clause shall not be refundable.''.

     SEC. 103. RICE PROGRAM.

       (a) Extension.--Section 101B of the Agricultural Act of 
     1949 (7 U.S.C. 1441-2) is amended--
       (1) in the section heading, by striking ``1995'' and 
     inserting ``2002'';
       (2) in subsections (a)(1), (a)(3), (b)(1), (c)(1)(A), 
     (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n), by striking 
     ``1995'' each place it appears and inserting ``2002'';
       (3) in subsection (a)(5)(D)(i), by striking ``1996'' and 
     inserting ``2003''; and
       (4) in subsection (c)(1)--
       (A) in subparagraph (B)(ii)--
       (i) by striking ``and 1995'' and inserting ``through 
     2002''; and
       (ii) by striking ``and 1995'' and inserting ``through 
     2002''; and
       (B) in subparagraph (D)--
       (i) in clauses (i) and (v)(II), by striking ``1997'' each 
     place it appears and inserting ``2002''; and
       (ii) in the heading of clause (v)(II), by striking ``1997'' 
     and inserting ``2002''.
       (b) Increase in Nonpayment Acres.--Section 
     101B(c)(1)(C)(ii) of the Act is amended by striking ``85 
     percent'' and inserting ``80 percent for each of the 1998 
     through 2002 crops''.
       (c) Advance Payment.--Section 101B(c)(1) of the Act is 
     amended by adding at the end the following:
       ``(F) Advance payment.--
       ``(i) In general.--Except as provided in clauses (ii) and 
     (iii), the Secretary shall make available to producers on a 
     farm 50 percent of the projected payment under this 
     subsection at the time the producers agree to participate in 
     the program.
       ``(ii) 1995 payments.--In the case of producers on a farm 
     who were prevented from planting, or incurred a reduced yield 
     of 20 percent or more of, the 1995 crop due to weather or 
     related condition, the Secretary may settle claims for the 
     repayment by the producers on terms determined by the 
     Secretary to be fair and equitable, except that no claim 
     shall be reduced by more than $3,500.
       ``(iii) 1996 payments.--

       ``(I) In general.--In the case of 1996 crops, advanced 
     payments shall be made in accordance with the formula under 
     subclause (II).
       ``(II) Formula.--Payments authorized under this clause 
     shall be based on a rate equal to 50 percent of the average 
     deficiency payment rate for the 1990 through 1994 crops.
       ``(III) Nonrefundable.--Payments authorized under this 
     clause shall not be refundable.''.

     SEC. 104. PEANUT PROGRAM.

       (a) Extension.--
       (1) Agricultural act of 1949.--Section 108B of the 
     Agricultural Act of 1949 (7 U.S.C. 1445c-3) is amended--
       (A) in the section heading, by striking ``1997'' and 
     inserting ``2002'';
       (B) in subsection (a)(1), (b)(1), and (h), by striking 
     ``1997'' each place it appears and inserting ``2002''; and
       (C) in subsection (g)--
       (i) by striking ``1997'' in paragraphs (1) and 
     (2)(A)(ii)(II) and inserting ``2002''; and
     
[[Page S592]]

       (ii) by striking ``the 1997 crop'' each place it appears 
     and inserting ``each of the 1997 through 2002 crops''.
       (2) Agricultural adjustment act of 1938.--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 ``1997'' and 
     inserting ``2002''; and
       (ii) in subsections (a)(1), (b), and (f), by striking 
     ``1997'' each place it appears and inserting ``2002'';
       (B) in section 358b (7 U.S.C. 1358b)--
       (i) in the section heading, by striking ``1995'' and 
     inserting ``2002''; 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 ``1997'' and 
     inserting ``2002''; and
       (ii) in subsection (i), by striking ``1997'' and inserting 
     ``2002''.
       (b) Support Rates for Peanuts.--Section 108B(a)(2) of the 
     Agricultural Act of 1949 (7 U.S.C. 1445c-3(a)(2)) is 
     amended--
       (1) by striking ``(2) Support rates.--The'' and inserting 
     the following:
       ``(2) Support rates.--
       ``(A) 1991-1995 crops.--The''; and
       (2) by adding at the end the following:
       ``(B) 1996-2002 crops.--The national average quota support 
     rate for each of the 1996 through 2002 crops of quota peanuts 
     shall be $678 per ton.''.
       (c) Undermarketings.--
       (1) In general.--Section 358-1(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) is amended--
       (A) in paragraph (7), by adding at the end the following::
       ``(C) Transfer of additional peanuts.--Additional peanuts 
     on a farm from which the quota poundage was not harvested or 
     marketed may be transferred to the quota loan pool for 
     pricing purposes at the quota price on such basis as the 
     Secretary shall be regulation provide, except that the 
     poundage of the peanuts so transferred shall not exceed the 
     difference in the total quantity of peanuts meeting quality 
     requirements for domestic edible use, as determined by the 
     Secretary, marketed from the farm and the total farm poundage 
     quota.''; and
       (B) by striking paragraphs (8) and (9).
       (2) Conforming amendments.--Section 358b(a) of the Act (7 
     U.S.C. 1358b(a)) is amended--
       (A) in paragraph (1)(A), by striking ``undermarketings 
     and''; and
       (B) in paragraph (3), by striking ``(including any 
     applicable undermarketings)''.

     SEC. 105. DAIRY PROGRAM.

       (a) Price Support.--Section 204 of the Agricultural Act of 
     1949 (7 U.S.C. 1446e) is amended--
       (1) in the section heading, by striking ``1996'' and 
     inserting ``2002'';
       (2) in subsections (a), (b), (f), (g), and (k), by striking 
     ``1996'' each place it appears and inserting ``2002'';
       (3) in subsection (h)(2)(C), by striking ``and 1997'' and 
     inserting ``through 2002''.
       (b) Support Price for Butter and Powdered Milk.--Section 
     204(c)(3) of the Act is amended--
       (1) in subparagraph (A), by striking ``Subject to 
     subparagraph (B), the'' and inserting ``The'';
       (2) by striking subparagraph (B); and
       (3) by redesignating subparagraph (C) as subparagraph (B).
       (c) Support Rate.--Section 204(d) of the Act is amended--
       (1) by striking paragraphs (1) through (3);
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (1) and (2) respectively; and
       (3) in paragraph (1) (as so redesignated), by striking 
     ``$10.10'' and inserting ``$10.35''.

     SEC. 106. SUGAR PROGRAM.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Agreement on agriculture.--The term `Agreement on 
     Agriculture' means the Agreement on Agriculture resulting 
     from the Uruguay Round of Multilateral Trade Negotiations.
       ``(2) Major country.--The term `major country' includes--
       ``(A) a country that is allocated a share of the tariff 
     rate quota for imported sugars and syrups by the United 
     States Trade Representative pursuant to additional U.S. note 
     5 to chapter 17 of the Harmonized Tariff Schedule;
       ``(B) a country of the European Union; and
       ``(C) the People's Republic of China.
       ``(3) Market.--The term `market' means to sell or otherwise 
     dispose of in commerce in the United States (including, with 
     respect to any integrated processor and refiner, the movement 
     of raw cane sugar into the refining process) and delivery to 
     a buyer.
       ``(4) Total estimated disappearance.--The term `total 
     estimated disappearance' means the quantity of sugar, as 
     estimated by the Secretary, that will be consumed in the 
     United States during a fiscal year (other than sugar imported 
     for the production of polyhydric alcohol or to be refined and 
     reexported in refined form or in a sugar-containing product), 
     plus the quantity of sugar that would provide for adequate 
     carryover stocks.
       ``(b) Price Support.--The price of each of the 1996 through 
     2002 crops of sugar beets and sugarcane shall be supported in 
     accordance with this section.
       ``(c) Sugarcane.--Subject to subsection (e), the Secretary 
     shall support the price of domestically grown sugarcane 
     through loans at a support level of 18 cents per pound for 
     raw cane sugar.
       ``(d) Sugar Beets.--Subject to subsection (e), the 
     Secretary shall support the price of each crop of 
     domestically grown sugar beets through loans at the level 
     provided for refined beet sugar produced from the 1995 crop 
     of domestically grown sugar beets.
       ``(e) Adjustment in Support Level.--
       ``(1) Downward adjustment in support level.--
       ``(A) In general.--The Secretary shall decrease the support 
     price of domestically grown sugarcane and sugar beets from 
     the level determined for the preceding crop, as determined 
     under this section, if the quantity of negotiated reductions 
     in export and domestic subsidies of sugar that apply to the 
     European Union and other major countries in the aggregate 
     exceed the quantity of the reductions in the subsidies agreed 
     to under the Agreement of Agriculture.
       ``(B) Extent of reduction.--The Secretary shall not reduce 
     the level of price support under subparagraph (A) below a 
     level that provides an equal measure of support to the level 
     provided by the European Union or any other major country 
     through domestic and export subsidies that are subject to 
     reduction under the Agreement on Agriculture.
       ``(2) Increases in support level.--The Secretary may 
     increase the support level for each crop of domestically 
     grown sugarcane and sugar beets from the level determined for 
     the preceding crop based on such factors as the Secretary 
     determines appropriate, including changes (during the 2 crop 
     years immediately preceding the crop year for which the 
     determination is made) in the cost of sugar products, the 
     cost of domestic sugar production, the amount of any 
     applicable assessments, and other factors or circumstances 
     that may adversely affect domestic sugar production.
       ``(f) Loan Type; Processor Assurances.--
       ``(1) In general.--Subject to paragraph (2), the Secretary 
     shall carry out this section by making recourse loans to 
     sugar producers.
       ``(2) Modification.--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 that exceeds 
     the minimum level for the imports committed to by the United 
     States under the Agreement on Agriculture, the Secretary 
     shall carry out this section by making nonrecourse loans 
     available to sugar producers. Any recourse loan previously 
     made available by the Secretary and not repaid under this 
     section during the fiscal year shall be converted into a 
     nonrecourse loan.
       ``(3) Processor assurances.--To effectively support the 
     prices of sugar beets and sugarcane received by a producer, 
     the Secretary shall obtain from each processor that receives 
     a loan under this section such assurances as the Secretary 
     considers adequate that, if the Secretary is required under 
     paragraph (2) to make nonrecourse loans available, or convert 
     recourse loans into nonrecourse loans, each producer served 
     by the processor will receive the appropriate minimum payment 
     for sugar beets and sugarcane delivered by the producer, as 
     determined by the Secretary.
       ``(g) Announcements.--The Secretary shall announce the type 
     of loans available and the loan rates for beet and cane sugar 
     for any fiscal year under this section as far in advance as 
     is practicable.
       ``(h) Loan Term.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     subsection (i), a loan under this section during any fiscal 
     year shall be made available not earlier than the beginning 
     of the fiscal year and shall mature at the end of 3 months.
       ``(2) Extension.--The maturity of a loan under this section 
     may be extended for up to 2 additional 3-month periods, at 
     the option of the borrower, except that the maturity of a 
     loan may not be extended under this paragraph beyond the end 
     of the fiscal year.
       ``(i) Supplementary Loans.--Subject to subsection (e), the 
     Secretary shall make available to eligible processors price 
     support loans with respect to sugar processed from sugar 
     beets and sugarcane harvested in the last 3 months of a 
     fiscal year. The loans shall mature at the end of the fiscal 
     year. The processor may repledge the sugar as collateral for 
     a price support loan in the subsequent fiscal year, except 
     that the second loan shall--
       ``(1) be made at the loan rate in effect at the time the 
     second loan is made; and
       ``(2) mature in not more than 9 months, less the quantity 
     of time that the first loan was in effect.
       ``(j) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this section.
       ``(k) Marketing Assessments.--
       ``(1) In general.--Assessments shall be collected in 
     accordance with this subsection with respect to all sugar 
     marketed within the United States during the 1996 through 
     2002 fiscal years.
       ``(2) Beet sugar.--The first seller of beet sugar produced 
     from domestic sugar beets or domestic sugar beet molasses 
     shall remit to the Commodity Credit Corporation a 
     nonrefundable marketing assessment in an amount equal to 
     1.1894 percent of the loan level established under subsection 
     (d) per pound of sugar marketed.
     
[[Page S593]]

       ``(3) Cane sugar.--The first seller of raw cane sugar 
     produced from domestic sugarcane or domestic sugarcane 
     molasses shall remit to the Commodity Credit Corporation a 
     nonrefundable marketing assessment in an amount equal to 1.11 
     percent of the loan level established under subsection (c) 
     per pound of sugar marketed (including the transfer or 
     delivery of the sugar to a refinery for further processing or 
     marketing).
       ``(4) Collection.--
       ``(A) Timing.--Marketing assessments required under this 
     subsection shall be collected and remitted to the Commodity 
     Credit Corporation not later than 30 days after the date that 
     the sugar 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.
       ``(5) Penalties.--If any person fails to remit an 
     assessment required by this subsection or fails to comply 
     with such requirements for recordkeeping or otherwise fails 
     to comply with this subsection, the person shall be liable to 
     the Secretary for a civil penalty of not more than an amount 
     determined by multiplying--
       ``(A) the quantity of sugar involved in the violation; by
       ``(B) the loan level for the applicable crop of sugarcane 
     or sugar beets from which the sugar is produced.

     For the purposes of this paragraph, refined sugar shall be 
     treated as produced from sugar beets.
       ``(6) Enforcement.--The Secretary may enforce this 
     subsection in the courts of the United States.
       ``(l) 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) Duty of producers to report.--To efficiently and 
     effectively carry out the program under this section, the 
     Secretary may require a producer of sugarcane or sugar beets 
     to report, in the manner prescribed by the Secretary, the 
     producer's sugarcane or sugar beet yields and acres planted 
     to sugarcane or sugar beets, respectively.
       ``(3) Penalty.--Any person willfully failing or refusing to 
     furnish the information, or furnishing willfully any false 
     information, required under this subsection shall be subject 
     to a civil penalty of not more than $10,000 for each such 
     violation.
       ``(4) 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.
       ``(m) Sugar Estimates.--
       ``(1) Domestic requirement.--Before the beginning of each 
     fiscal year, the Secretary shall estimate the domestic sugar 
     requirement of the United States in an amount that is equal 
     to the total estimated disappearance, minus the quantity of 
     sugar that will be available from carry-in stocks.
       ``(2) Quarterly reestimates.--The Secretary shall make 
     quarterly reestimates of sugar consumption, stocks, 
     production, and imports for a fiscal year not later than the 
     beginning of each of the second through fourth quarters of 
     the fiscal year.
       ``(n) Crops.--This section shall be effective only for the 
     1996 through 2002 crops of sugar beets and sugarcane.''.
       (b) Marketing Quotas.--Part VII of subtitle B of title III 
     of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa 
     et seq.) is repealed.

     SEC. 107. SHEEP INDUSTRY TRANSITION PROGRAM.

       Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 208. SHEEP INDUSTRY TRANSITION PROGRAM.

       ``(a) Loss.--
       ``(1) In general.--The Secretary shall, on presentation of 
     warehouse receipts or other acceptable evidence of title as 
     determined by the Secretary, make available for each of the 
     1996 through 1999 marketing years recourse loans for wool at 
     a loan level, per pound, that is not less than the smaller 
     of--
       ``(A) the average price (weighted by market and month) of 
     the base quality of wool at average location in the United 
     States as quoted during the 5-marketing year period preceding 
     the year in which the loan level is announced, excluding the 
     year in which the average price was the highest and the year 
     in which the average price was the lowest in the period; or
       ``(B) 90 percent of the average price for wool projected 
     for the marketing year in which the loan level is announced, 
     as determined by the Secretary.
       ``(2) Adjustments to loan level.--
       ``(A) Limitation on decrease in loan level.--The loan level 
     for any marketing year determined under paragraph (1) may not 
     be reduced by more than 5 percent from the level determined 
     for the preceding marketing year, and may not be reduced 
     below 50 cents per pound.
       ``(B) Limitation on increase in loan level.--If for any 
     marketing year the average projected price determined under 
     paragraph (1)(B) is less than the average United States 
     market price determined under paragraph (1)(A), the Secretary 
     may increase the loan level to such level as the Secretary 
     may consider appropriate, not in excess of the average United 
     States market price determined under paragraph (1)(A).
       ``(C) Adjustment for quality.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), the Secretary may adjust the loan level of a loan made 
     under this section with respect to a quantity of wool to more 
     accurately reflect the quality of the wool, as determined by 
     the Secretary.
       ``(ii) Establishment of grading system.--To allow producers 
     to establish the quality of wool produced on a farm, the 
     Secretary shall establish a grading system for wool, based on 
     micron diameter of the fibers in the wool.
       ``(iii) Fees.--The Secretary may charge each person that 
     requests a grade for a quantity of wool a fee to offset the 
     costs of testing and establishing a grade for the wool.
       ``(iv) Testing facilities.--To the extent practicable, the 
     Secretary may certify State, local, or private facilities to 
     carry out the grading of wool for the purpose of carrying out 
     this subparagraph.
       ``(3) Announcement of loan level.--The loan level for any 
     marketing year of wool shall be determined and announced by 
     the Secretary not later than December 1 of the calendar year 
     preceding the marketing year for which the loan is to be 
     effective or, in the case of the 1996 marketing year, as soon 
     as is practicable after December 1, 1995.
       ``(4) Term of loan.--
       ``(A) In general.--Recourse loans provided for in this 
     section may be made for an initial term of 9 months from the 
     first day of the month in which the loan is made.
       ``(B) Extensions.--Except as provided in subparagraph (C), 
     recourse loans provided for in this section shall, on request 
     of the producer during the 9th month of the loan period for 
     the wool, be made available for an additional term of 8 
     months.
       ``(C) Limitation.--A request to extend the loan period 
     shall not be approved in any month in which the average price 
     of the base quality of wool, as determined by the Secretary, 
     in the designated markets for the preceding month exceeded 
     130 percent of the average price of the base quality of wool 
     in the designated United States markets for the preceding 36-
     month period
       ``(5) Marketing loan provisions.--If the Secretary 
     determines that the prevailing world market price for wool 
     (adjusted to United States quality and location) is below the 
     loan level determined under paragraphs (1) through (4), to 
     make United States wool competitive, the Secretary shall 
     permit a producer to repay a loan made for any marketing year 
     at the lesser of--
       ``(A) the loan level determined for the marketing year; or
       ``(B) the higher of--
       ``(i) the loan level determined for the marketing year 
     multiplied by 70 percent; or
       ``(ii) the prevailing world market price for wool (adjusted 
     to United States quality and location), as determined by the 
     Secretary.
       ``(6) Prevailing world market price.--
       ``(A) In general.--The Secretary shall prescribe by 
     regulation--
       ``(i) a formula to define the prevailing world market price 
     for wool (adjusted to United States quality and location); 
     and
       ``(ii) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for wool 
     (adjusted to United States quality and location).
       ``(B) Use.--The prevailing world market price for wool 
     (adjusted to United States quality and location) established 
     under this paragraph shall be used to carry out paragraph 
     (5).
       ``(C) Adjustment of prevailing world market price.--
       ``(i) In general.--The prevailing world market price for 
     wool (adjusted to United States quality and location) 
     established under this paragraph shall be further adjusted if 
     the adjusted prevailing world market price is less than 115 
     percent of the current marketing year loan level for the base 
     quality of wool, as determined by the Secretary.
       ``(ii) Further adjustment.--The adjusted prevailing world 
     market price shall be further adjusted on the basis of some 
     or all of the following data, as available:

       ``(I) The United States share of world exports.
       ``(II) The current level of wool export sales and wool 
     export shipments.
       ``(III) Other data determined by the Secretary to be 
     relevant in establishing an accurate prevailing world market 
     price for wool (adjusted to United States quality and 
     location).

       ``(D) Market price quotation.--The Secretary may establish 
     a system to monitor and make available on a weekly basis 
     information with respect to the most recent average domestic 
     and world market prices for wool.
       ``(7) Participation.--The Secretary may make loans 
     available under this subsection to producers, cooperatives, 
     or marketing pools.
       ``(b) Loan Deficiency Payments.--
       ``(1) In general.--The Secretary shall, for each of the 
     1996 through 1999 marketing years of wool, make payments 
     available to producers who, although eligible to obtain a 
     loan under subsection (a), agree to forgo obtaining the loan 
     in return for payments under this subsection.
     
[[Page S594]]

       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan payment rate; by
       ``(B) the quantity of wool the producer is eligible to 
     place under loan but for which the producer forgoes obtaining 
     the loan in return for payments under this subsection.
       ``(3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       ``(A) the loan level determined for the marketing year 
     under subsection (a); exceeds
       ``(B) the level at which a loan may be repaid under 
     subsection (a).
       ``(c) Deficiency Payments.--
       ``(1) In general.--The Secretary shall make available to 
     producers deficiency payments for each of the 1996 through 
     1999 marketing years of wool in an amount computed by 
     multiplying--
       ``(A) the payment rate; by
       ``(B) the payment quantity of wool for the marketing year.
       ``(2) Payment rate.--
       ``(A) In general.--The payment rate for wool shall be the 
     amount by which the established price for the marketing year 
     of wool exceeds the higher of--
       ``(i) the national average market price received by 
     producers during the marketing year, as determined by the 
     Secretary; or
       ``(ii) the loan level determined for the marketing year.
       ``(B) Minimum established price.--The established price for 
     wool shall not be less than $2.12 per pound on a grease wool 
     basis for each of the 1996 through 1999 marketing years.
       ``(3) Payment quantity.--Payment quantity of wool for a 
     marketing year shall be the number of pounds of wool produced 
     during the marketing year.
       ``(d) Equitable Relief.--
       ``(1) Loans and payments.--If the failure of a producer to 
     comply fully with the terms and conditions of the program 
     conducted under this section precludes the making of loans 
     and payments, the Secretary may, nevertheless, make the loans 
     and payments in such amounts as the Secretary determines are 
     equitable in relation to the seriousness of the failure. The 
     Secretary may consider whether the producer made a good faith 
     effort to comply fully with the terms and conditions of the 
     program in determining whether equitable relief is warranted 
     under this paragraph.
       ``(2) Deadlines and program requirements.--The Secretary 
     may authorize the county and State committees established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
     deadlines and other program requirements in cases in which 
     lateness or failure to meet such other requirements does not 
     affect adversely the operation of the program.
       ``(e) Regulations.--The Secretary may issue such 
     regulations as the Secretary determines necessary to carry 
     out this section.
       ``(f) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(g) Assignment of Payments.--The provisions of section 
     8(g) of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(g)) (relating to assignment of payments) shall 
     apply to payments under this section.
       ``(h) Sharing of Payments.--The Secretary shall provide for 
     the sharing of payments made under this section for any farm 
     among the producers on the farm on a fair and equitable 
     basis.
       ``(i) Tenants and Sharecroppers.--The Secretary shall 
     provide adequate safeguards to protect the interests of 
     tenants and sharecroppers.
       ``(j) Cross-Compliance.--
       ``(1) In general.--Compliance on a farm with the terms and 
     conditions of any other commodity program, or compliance with 
     marketing year acreage base requirements for any other 
     commodity, may not be required as a condition of eligibility 
     for loans or payments under this section.
       ``(2) Compliance on other farms.--The Secretary may not 
     require producers on a farm, as a condition of eligibility 
     for loans or payments under this section for the farm, to 
     comply with the terms and conditions of the wool program with 
     respect to any other farm operated by the producers.
       ``(k) Limitation on Outlays.--
       ``(1) In general.--The total amount of payments that may be 
     made available to all producers under this section may not 
     exceed--
       ``(A) $75,000,000, during any single marketing year; or
       ``(B) $200,000,000 in the aggregate for marketing years 
     1996 through 1999.
       ``(2) Proration of benefits.--To the extent that the total 
     amount of benefits for which producers are eligible under 
     this section exceeds the limitations in paragraph (1), funds 
     made available under this section shall be prorated among all 
     eligible producers.
       ``(3) Person limitation.--
       ``(A) Loans.--No person may realize gains or receive 
     payments under subsection (a) or (b) that exceed $75,000 
     during any marketing year.
       ``(B) Deficiency payments.--No person may receive payments 
     under subsection (c) that exceed $50,000 during any marketing 
     year.
       ``(l) Marketing years.--Notwithstanding any other provision 
     of law, this section shall be effective only for the 1996 
     through 1999 marketing years for wool.''.

     SEC. 108. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

       (a) Wheat.--
       (1) Nonapplicability of certificate requirements.--Sections 
     379d through 379j of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1379d-1379j) shall not be applicable to wheat 
     processors or exporters during the period June 1, 1995, 
     through May 31, 2003.
       (2) Suspension of land use, wheat marketing allocation, and 
     producer certificate provisions.--Sections 331 through 339, 
     379b, and 379c of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1331 through 1339, 1379b, and 1379c) shall not be 
     applicable to the 1996 through 2002 crops of wheat.
       (3) Suspension of certain quota provisions.--The joint 
     resolution entitled ``A joint resolution relating to corn and 
     wheat marketing quotas under the Agricultural Adjustment Act 
     of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 
     and 1340), shall not be applicable to the crops of wheat 
     planted for harvest in the calendar years 1996 through 2002.
       (4) Nonapplicability of section 107 of the agricultural act 
     of 1949.--Section 107 of the Agricultural Act of 1949 (7 
     U.S.C. 1445a) shall not be applicable to the 1996 through 
     2002 crops of wheat.
       (b) Feed Grains.--
       (1) Nonapplicability of section 105 of the agricultural act 
     of 1949.--Section 105 of the Agricultural Act of 1949 (7 
     U.S.C. 1444b) shall not be applicable to the 1996 through 
     2002 crops of feed grains.
       (2) Recourse loan program for silage.--Section 403 of the 
     Food Security Act of 1985 (7 U.S.C. 1444e-1) is amended by 
     striking ``1996'' and inserting ``2002''.
       (c) Oilseeds.--Section 201(a) of the Agricultural Act of 
     1949 (7 U.S.C. 1446(a)) is amended by striking ``oilseeds'' 
     and all that follows through ``determine),''.
       (d) Upland Cotton.--
       (1) Suspension of base acreage allotments, marketing 
     quotas, and related provisions.--Sections 342, 343, 344, 345, 
     346, and 377 of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1342-1346 and 1377) shall not be applicable to any of 
     the 1996 through 2002 crops of upland cotton.
       (2) Miscellaneous cotton provisions.--Section 103(a) of the 
     Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be 
     applicable to the 1996 through 2002 crops.
       (e) Peanuts.--
       (1) Suspension of marketing quotas and acreage 
     allotments.--The following provisions of the Agricultural 
     Adjustment Act of 1938 shall not be applicable to the 1996 
     through 2002 crops of peanuts:
       (A) Subsections (a) through (j) of section 358 (7 U.S.C. 
     1358).
       (B) Subsections (a) through (h) of section 358a (7 U.S.C. 
     1358a).
       (C) Subsections (a), (b), (d), and (e) of section 358d (7 
     U.S.C. 1359).
       (D) Part I of subtitle C of title III (7 U.S.C. 1361 et 
     seq.).
       (E) Section 371 (7 U.S.C. 1371).
       (2) Reports and records.--Effective only for the 1996 
     through 2002 crops of peanuts, the first sentence of section 
     373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1373(a)) is amended by inserting before ``all brokers and 
     dealers in peanuts'' the following: ``all producers engaged 
     in the production of peanuts,''.
       (3) Suspension of certain price support provisions.--
     Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) 
     shall not be applicable to the 1996 through 2002 crops of 
     peanuts.

     SEC. 109. EXTENSION OF RELATED PRICE SUPPORT PROVISIONS.

       (a) Deficiency and Land Diversion Payments.--Section 114 of 
     the Agricultural Act of 1949 (7 U.S.C. 1445j) is amended--
       (1) in subsections (a)(1) and (c), by striking ``1997'' 
     each place it appears and inserting ``2002''; and
       (2) in subsection (b), by striking ``1995'' and inserting 
     ``2002''.
       (b) Adjustment of Established Prices.--Section 402(b) of 
     the Agricultural Act of 1949 (7 U.S.C. 1422(b)) is amended by 
     striking ``1995'' and inserting ``2002''.
       (c) Adjustment of Support Prices.--Section 403(c) of the 
     Agricultural Act of 1949 (7 U.S.C. 1423(c)) is amended by 
     striking ``1995'' and inserting ``2002''.
       (d) Application of Terms in the Agricultural Act of 1949.--
     Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C. 
     1428(k)(3)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (e) Acreage Base and Yield System.--Title V of the 
     Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is amended--
       (1) in subsections (c)(3) and (h)(2)(A) of section 503 (7 
     U.S.C. 1463), by striking ``1997'' each place it appears and 
     inserting ``2002'';
       (2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C. 
     1465(b)), by striking ``1997'' each place it appears and 
     inserting ``2002''; and
       (3) in section 509 (7 U.S.C. 1469), by striking ``1997'' 
     and inserting ``2002''.
       (f) Payment Limitations.--Section 1001 of the Food Security 
     Act of 1985 (7 U.S.C. 1308) is amended by striking ``1997'' 
     each place it appears and inserting ``2002''.
       (g) Normally Planted Acreage.--Section 1001 of the Food and 
     Agriculture Act of 1977 (7 U.S.C. 1309) is amended by 
     striking ``1995'' each place it appears in subsections (a), 
     (b)(1), and (c) and inserting ``2002''.
       (h) Options Pilot Program.--The Options Pilot Program Act 
     of 1990 (subtitle E of title XI of Public Law 101-624; 104 
     Stat. 3518; 7 U.S.C. 1421 note) is amended--
     
[[Page S595]]

       (1) in subsections (a) and (b) of section 1153, by striking 
     ``1995'' each place it appears and inserting ``2002''; and
       (2) in section 1154(b)(1)(A), by striking ``1995'' each 
     place it appears and inserting ``2002''.
       (i) Food Security Wheat Reserve.--Section 302(i) of the 
     Food Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) 
     is amended by striking ``1995'' each place it appears and 
     inserting ``2002''.

     SEC. 110. CROP INSURANCE ADMINISTRATIVE FEE.

       Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 
     1508) is amended--
       (1) by striking paragraph (5); and
       (2) by redesignating paragraphs (6) through (10) as 
     paragraphs (5) through (9), respectively.

     SEC. 111. EFFECTIVE DATE.

       (a) In General.--Except as otherwise specifically provided 
     in this title, this title and the amendments made by this 
     title shall apply beginning with the 1996 crop of an 
     agricultural commodity.
       (b) Prior Crops.--Except as otherwise specifically provided 
     and notwithstanding any other provision of law, this title 
     and the amendments made by this title shall not affect the 
     authority of the Secretary of Agriculture to carry out a 
     price support, production adjustment, or payment program 
     for--
       (1) any of the 1991 through 1995 crops of an agricultural 
     commodity established under a provision of law as in effect 
     immediately before the enactment of this Act; or
       (2) the 1996 crop of an agricultural commodity established 
     under section 406(b) of the Agricultural Act of 1949 (7 
     U.S.C. 1426(b)).
                         TITLE II--CONSERVATION

     SEC. 201. CONSERVATION RESERVE PROGRAM.

       Section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) is amended by striking ``1995'' each place it appears 
     in subsections (a) and (d) and inserting ``2002''.

     SEC. 202. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

         ``CHAPTER 2--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

     ``SEC. 1238. DEFINITIONS.

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

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

       ``(a) Establishment.--
       ``(1) In general.--During the 1996 through 2006 fiscal 
     years, the Secretary shall enter into contracts with 
     operators to provide technical assistance, cost-sharing 
     payments, and incentive payments to operators, who enter into 
     contracts with the Secretary, through an environmental 
     quality incentives program in accordance with this chapter.
       ``(2) Consolidation of existing programs.--In establishing 
     the environmental quality incentives program authorized under 
     this chapter, the Secretary shall combine into a single 
     program the functions of--
       ``(A) the agricultural conservation program authorized by 
     sections 7 and 8 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590g and 590h);
       ``(B) the Great Plains conservation program established 
     under section 16(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590p(b));
       ``(C) the water quality incentives program established 
     under this chapter; and
       ``(D) the Colorado River Basin salinity control program 
     established under section 202(c) of the Colorado River Basin 
     Salinity Control Act (43 U.S.C. 1592(c)).
       ``(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) Contract effective date.--A contract between an 
     operator and the Secretary under this chapter shall become 
     effective on October 1st following the date the contract is 
     fully entered into.
       ``(c) Cost-Sharing and Incentive Payments.--
       ``(1) Cost-sharing payments.--
       ``(A) In general.--The Federal share of cost-sharing 
     payments to an operator proposing to implement 1 or more 
     structural practices shall not be more than 75 percent of the 
     projected cost of the practice, as determined by the 
     Secretary, taking into consideration any payment received by 
     the operator from a State or local government.
       ``(B) Limitation.--An operator of a large confined 
     livestock operation shall not be eligible for cost-sharing 
     payments to construct an animal waste management facility.
       ``(C) Other payments.--An operator shall not be eligible 
     for cost-sharing payments for structural practices on 
     eligible land under this chapter if the operator receives 
     cost-sharing payments or other benefits for the same land 
     under chapter 1 or 3.
       ``(2) Incentive payments.--The Secretary shall make 
     incentive payments in an amount and at a rate determined by 
     the Secretary to be necessary to encourage an operator to 
     perform 1 or more land management practices.
       ``(d) Technical Assistance.--
       ``(1) Funding.--The Secretary shall allocate funding under 
     this chapter for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided in a fiscal year. The 
     allocated amount may vary according to the type of expertise 
     required quantity of time involved, and other factors as 
     determined appropriate by the Secretary. Funding shall not 
     exceed the projected cost to the Secretary of the technical 
     assistance provided in a fiscal year.
       ``(2) Other authorities.--The receipt of technical 
     assistance under this chapter shall not affect the 
     eligibility of the operator to receive technical assistance 
     under other authorities of law available to the Secretary.
       ``(e) Funding.--The Secretary shall use to carry out this 
     chapter not less than--
       ``(1) $200,000,000 for fiscal year 1997; and
       ``(2) $250,000,000 for each of fiscal years 1998 through 
     2002.
       ``(f) Commodity Credit Corporation.--The Secretary may use 
     the funds, facilities, and authorities of the Commodity 
     Credit Corporation to carry out this subchapter.

     ``SEC. 1238B. CONSERVATION PRIORITY AREAS.

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

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

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

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

       ``(a) In General.--Prior to approving cost-share or 
     incentive payments authorized under this chapter, the 
     Secretary shall require the preparation and evaluation of an 
     environmental quality incentives program plan described in 
     subsection (b), unless the Secretary determines that such a 
     plan is not necessary to evaluate the application for the 
     payments.
       ``(b) Terms.--An environmental quality incentives program 
     plan shall include (as determined by the Secretary) a 
     description of relevant--
     
[[Page S596]]

       ``(1) farming or ranching practices on the farm;
       ``(2) characteristics of natural resources on the farm;
       ``(3) specific conservation and environmental objectives to 
     be achieved including those that will assist the operator in 
     complying with Federal and State environmental laws;
       ``(4) dates for, and sequences of, events for implementing 
     the practices for which payments will be received under this 
     chapter; and
       ``(5) information that will enable evaluation of the 
     effectiveness of the plan in achieving the conservation and 
     environmental objectives, and that will enable evaluation of 
     the degree to which the plan has been implemented.

     ``SEC. 1238E. LIMITATION ON PAYMENTS.

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

     SEC. 301. FOOD STAMP PROGRAM.

       (a) Employment and Training.--Section 16(h)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by 
     striking ``1995'' each place it appears and inserting 
     ``2002''.
       (b) Authorization of Pilot Projects.--The last sentence of 
     section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(A)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (c) Authorization for Appropriations.--The first sentence 
     of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2027(a)(1)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (d) Reauthorization of Puerto Rico Nutrition Assistance 
     Program.--The first sentence of section 19(a)(1)(A) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by 
     striking ``$974,000,000'' and all that follows through 
     ``fiscal year 1995'' and inserting ``$1,143,000,000 for each 
     of fiscal years 1995 and 1996, $1,182,000,000 for fiscal year 
     1997, $1,223,000,000 for fiscal year 1998, $1,266,000,000 for 
     fiscal year 1999, $1,310,000,000 for fiscal year 2000, 
     $1,357,000,000 for fiscal year 2001, and $1,404,000,000 for 
     fiscal year 2002''.

     SEC. 302. COMMODITY DISTRIBUTION PROGRAM; COMMODITY 
                   SUPPLEMENTAL FOOD PROGRAM.

       (a) Reauthorization.--The first sentence of section 4(a) of 
     the Agriculture and Consumer Protection Act of 1973 (Public 
     Law 93-86; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2002''.
       (b) Funding.--Section 5 of the Agriculture and Consumer 
     Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) 
     is amended--
       (1) in subsection (a)(2), by striking ``1995'' and 
     inserting ``2002''; and
       (2) in subsection (d)(2), by striking ``1995'' and 
     inserting ``2002''.

     SEC. 303. EMERGENCY FOOD ASSISTANCE PROGRAM.

       (a) Reauthorization.--The first sentence of section 
     204(a)(1) of the Emergency Food Assistance Act of 1983 
     (Public Law 98-8; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2002''.
       (b) Program Termination.--Section 212 of the Emergency Food 
     Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) 
     is amended by striking ``1995'' and inserting ``2002''.
       (c) Required Purchases of Commodities.--Section 214 of the 
     Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 
     U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002''; and
       (2) in subsection (e), by striking ``1995'' each place it 
     appears and inserting ``2002''.

     SEC. 304. SOUP KITCHENS PROGRAM.

       Section 110 of the Hunger Prevention Act of 1988 (Public 
     Law 100-435; 7 U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002''; and
       (2) in subsection (c)(2)--
       (A) in the paragraph heading, by striking ``1995'' and 
     inserting ``2002''; and
       (B) by striking ``1995'' each place it appears and 
     inserting ``2002''.

     SEC. 305. NATIONAL COMMODITY PROCESSING.

       The first sentence of section 1114(a)(2)(A) of the 
     Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is 
     amended by striking ``1995'' and inserting ``2002''.
                                 ______


                   MIKULSKI AMENDMENTS NOS. 3126-3127

  (Ordered to lie on the table.)
  Ms. MIKULSKI submitted two amendments intended to be proposed by her 
to the bill S. 1541, supra; as follows:

                           Amendment No. 3126

       At the appropriate place insert: ``Whenever the domestic 
     price of raw sugar exceeds 120% of the loan rate, then the 
     Secretary of Agriculture shall permit the importation of 
     additional raw cane sugar from exiting quota holders until he 
     determines that such conditions no longer prevail in the 
     market.''
                                                                    ____


                           Amendment No. 3127

       At the appropriate place insert: ``Whenever the domestic 
     price of raw sugar exceeds 120% of the loan rate, then the 
     Secretary of Agriculture shall permit the importation of 
     additional raw cane sugar from existing quota holders until 
     he determines that such conditions no longer prevail in the 
     market.''
                                 ______


                 BUMPERS (AND PRYOR) AMENDMENT NO. 3128

  (Ordered to lie on the table.)
  Mr. BUMPERS (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by them to the bill S. 1541, supra; as follows:

       At the appropriate place add the following: ``Any program 
     authorized to be administered by the Secretary of Agriculture 
     on January 1, 1995, shall be deemed authorized under the same 
     terms and conditions until December 31, 1996, unless other 
     terms and conditions are established by law.''
                                 ______


                 PRYOR (AND BUMPERS) AMENDMENT NO. 3129

  (Ordered to lie on the table.)
  Mr. PRYOR (for himself and Mr. Bumpers) submitted an amendment 
intended to be proposed by them to the bill S. 2541 supra; as follows:

       Strike all after the first word and insert in lieu thereof:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

                             TITLE I--WHEAT

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

                         TITLE II--FEED GRAINS

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

                           TITLE III--COTTON

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

                             TITLE IV--RICE

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

                           TITLE V--OILSEEDS

Sec. 501. Loans and payments for oilseeds for 1996 through 2002 
              marketing years.

                           TITLE VI--PEANUTS

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

                            TITLE VII--SUGAR

Sec. 701. Sugar price support.
Sec. 702. Marketing assessment bases for processors and refiners.
Sec. 703. Prevention of sugar loan forfeitures.

                TITLE VIII--GENERAL COMMODITY PROVISIONS

           Subtitle A--Amendments to Agricultural Act of 1949

Sec. 801. Deficiency and land diversion payments.
Sec. 802. Adjustment of established prices.
Sec. 803. Adjustment of support prices.
Sec. 804. Program option for 2003 and subsequent crops.
Sec. 805. Application of terms in the Agricultural Act of 1949.

[[Page S597]]

Sec. 806. Double cropping.
Sec. 807. Acreage base and yield system.

             Subtitle B--Miscellaneous Commodity Provisions

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

                   Subtitle C--Conforming Amendments

Sec. 821. Conforming amendments.

                        Subtitle D--Application

Sec. 831. Application.

     SEC. 2. FINDINGS, POLICY, AND PURPOSE.

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

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

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

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

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

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

       ``(a) Loans and Purchases.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall make available to producers 
     on a farm loans and purchases for each of the 1996 through 
     2002 crops of wheat produced on the farm at such level as the 
     Secretary determines will maintain the competitive 
     relationship of wheat to other grains in domestic and export 
     markets after taking into consideration the cost of producing 
     wheat, supply and demand conditions, and world prices for 
     wheat.
       ``(2) Minimum loan and purchase level.--Except as provided 
     in paragraph (3), the loan and purchase level determined 
     under paragraph (1) shall be not less than 85 percent of the 
     simple average price received by producers of wheat, as 
     determined by the Secretary, during the marketing years for 
     the immediately preceding 5 crops of wheat, excluding the 
     year in which the average price was the highest and the year 
     in which the average price was the lowest in the period, 
     except that the loan and purchase level for a crop determined 
     under this paragraph may not be reduced by more than 5 
     percent from the level determined for the preceding crop.
       ``(3) Marketing loans.--
       ``(A) In general.--The Secretary shall permit the producers 
     on a farm to repay a loan made under this subsection for a 
     crop at a level (except as provided in subparagraph (C)) that 
     is the lesser of--
       ``(i) the loan level determined for the crop; and
       ``(ii) the prevailing world market price for wheat 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       ``(B) Prevailing world market price.--The Secretary shall 
     prescribe by regulation--
       ``(i) a formula to determine the prevailing world market 
     price for wheat, adjusted to United States quality and 
     location; and
       ``(ii) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for wheat.
       ``(C) Alternative repayment rates.--For each of the 1996 
     through 2002 crops of wheat, if the world market price for 
     wheat (adjusted to United States quality and location), as 
     determined by the Secretary, is less than the loan level 
     determined for the crop, the Secretary may permit the 
     producers on a farm to repay a loan made under this 
     subsection for a crop at such level (not in excess of the 
     loan level determined for the crop) as the Secretary 
     determines will--
       ``(i) minimize potential loan forfeitures;
       ``(ii) minimize the accumulation of wheat stocks by the 
     Federal Government;
       ``(iii) minimize the cost incurred by the Federal 
     Government in storing wheat; and
       ``(iv) allow wheat produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       ``(4) Simple average price.--For purposes of this section, 
     the simple average price received by producers for the 
     immediately preceding marketing year shall be based on the 
     latest information available to the Secretary at the time of 
     the determination.
       ``(b) Loan Deficiency Payments.--
       ``(1) In general.--For each of the 1996 through 2002 crops 
     of wheat, the Secretary may make payments (referred to in 
     this section as `loan deficiency payments') available to 
     producers who, although eligible to obtain a loan or an 
     agreement for purchase under subsection (a), agree to forgo 
     obtaining the loan or agreement in return for payments under 
     this subsection.
       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan payment rate; and
       ``(B) the quantity of wheat the producers on a farm are 
     eligible to place under loan (or obtain a purchase agreement) 
     but for which the producers forgo obtaining the loan or 
     agreement in return for payments under this subsection.
       ``(3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       ``(A) the loan level determined for the crop under 
     subsection (a); exceeds
       ``(B) the level at which a loan may be repaid under 
     subsection (a).
       ``(c) Payments.--
       ``(1) Deficiency payments.--
       ``(A) In general.--The Secretary shall make available to 
     producers payments (referred to in this section as 
     `deficiency payments') for each of the 1996 through 2002 
     crops of wheat in an amount computed by multiplying--
       ``(i) the payment rate;
       ``(ii) the payment acres for the crop; and
       ``(iii) the farm program payment yield established for the 
     crop for the farm.
       ``(B) Payment rate.--
       ``(i) In general.--The payment rate for each of the 1996 
     through 2002 crops of wheat shall be the amount by which 
     the established price for the crop of wheat exceeds the 
     higher of--

       ``(I) the lesser of--

       ``(aa) the national weighted average market price received 
     by producers during the marketing year for the crop, as 
     determined by the Secretary; and
       ``(bb) the national weighted average market price received 
     by producers during the first 5 months of the marketing year 
     for the crop, as determined by the Secretary, plus 10 cents 
     per bushel; and

       ``(II) the loan level determined for the crop.

       ``(ii) Minimum established price.--The established price 
     for wheat shall not be less 

[[Page S598]]
     than $4.00 per bushel for each of the 1996 through 2002 crops.
       ``(C) Payment acres.--Payment acres for a crop shall be the 
     lesser of--
       ``(i) the number of acres planted to the crop for harvest 
     within the permitted acreage (as defined in subsection 
     (e)(2)(D)(ii)); or
       ``(ii) 75 percent of the crop acreage base for the crop for 
     the farm less the quantity of reduced acreage (as defined in 
     subsection (e)(2)(D)(ii)).
       ``(D) 0/85 program.--
       ``(i) In general.--If an acreage limitation program under 
     subsection (e)(2) is in effect for a crop of wheat and the 
     producers on a farm devote a portion of the maximum payment 
     acres of the farm for wheat as calculated under subparagraph 
     (C)(ii) equal to more than 15 percent (except as provided in 
     clause (vii)) of the wheat acreage of the farm for the crop 
     to conservation uses (except as provided in subparagraph 
     (E))--

       ``(I) the portion of the maximum payment acres of the farm 
     in excess of 15 percent (except as provided in clause (vii)) 
     of the acreage devoted to conservation uses (except as 
     provided in subparagraph (E)) shall be considered to be 
     planted to wheat for the purpose of determining the acreage 
     on the farm required to be devoted to conservation uses in 
     accordance with subsection (e)(2)(D); and
       ``(II) the producers shall be eligible for payments under 
     this paragraph with respect to the acreage.

       ``(ii) Deficiency payments.--Notwithstanding any other 
     provision of this section, any producers on a farm who devote 
     a portion of the maximum payment acres of the farm for wheat 
     to conservation uses (or other uses as provided in 
     subparagraph (E)) under this subparagraph shall receive 
     deficiency payments on the acreage that is considered to be 
     planted to wheat and eligible for payments under this 
     subparagraph for the crop at a per-bushel rate established by 
     the Secretary, except that the rate may not be established at 
     less than the projected deficiency payment rate for the crop, 
     as determined by the Secretary. The projected payment rate 
     for the crop shall be announced by the Secretary prior to the 
     period during which wheat producers may agree to participate 
     in the program for the crop.
       ``(iii) Adverse effect on agribusiness and other 
     interests.--The Secretary shall carry out this subparagraph 
     in such a manner as to minimize the adverse effect on 
     agribusiness and other agriculturally related economic 
     interests within any county, State, or region. In carrying 
     out this subparagraph, the Secretary may restrict the total 
     quantity of wheat acreage that may be taken out of production 
     under this subparagraph, taking into consideration the total 
     quantity of acreage that has or will be removed from 
     production under other price support, production adjustment, 
     or conservation program activities. No restrictions on the 
     quantity of acreage that may be taken out of production in 
     accordance with this subparagraph in a crop year shall be 
     imposed in the case of a county in which producers were 
     eligible to receive disaster emergency loans under section 
     321 of the Consolidated Farm and Rural Development Act (7 
     U.S.C. 1961) as a result of a disaster that occurred during 
     the crop year.
       ``(iv) Crop acreage and payment yield.--The wheat crop 
     acreage base and wheat farm program payment yield of the farm 
     shall not be reduced because of the fact that a portion of 
     the permitted acreage for wheat for the farm was devoted to 
     conserving uses (except as provided in subparagraph (E)) 
     under this subparagraph.
       ``(v) Limitation.--Other than as provided in clauses (i) 
     through (iv), payments may not be made under this paragraph 
     for any crop on a greater acreage than the acreage actually 
     planted to wheat.
       ``(vi) Conservation use acreage under other programs.--Any 
     acreage considered to be planted to wheat in accordance with 
     clauses (i) and (iv) may not also be designated as 
     conservation use acreage for the purpose of fulfilling any 
     provision under any acreage limitation or land diversion 
     program requiring that the producers devote a specified 
     quantity of acreage to conservation uses.
       ``(vii) Exceptions to 0/85.--In the case of each of the 
     1996 through 2002 crops of wheat, producers on a farm shall 
     be eligible to receive deficiency payments as provided in 
     clause (ii) if an acreage limitation program under subsection 
     (e) is in effect for the crop and the producers--

       ``(I)(aa) have been determined by the Secretary (in 
     accordance with section 503(c)) to be prevented from planting 
     the crop, or to have incurred a reduced yield for the crop, 
     because of a natural disaster; and
       ``(bb) elect to devote a portion of the maximum payment 
     acres for wheat (as calculated under subparagraph (C)(ii)) 
     equal to more than 8 percent of the wheat acreage to 
     conservation uses; or
       ``(II) elect to devote a portion of the maximum payment 
     acres for wheat (as calculated under subparagraph (C)(ii)) 
     equal to more than 8 percent of the wheat acreage, to 
     alternative crops as provided in subparagraph (E).

       ``(E) Alternative crops.--
       ``(i) Industrial and other crops.--The Secretary may 
     permit, subject to such terms and conditions as the Secretary 
     may prescribe, all or any part of acreage otherwise required 
     to be devoted to conservation uses as a condition of 
     qualifying for payments under subparagraph (D) to be devoted 
     to sweet sorghum, guar, castor beans, plantago ovato, 
     triticale, rye, millet, mung beans, commodities for which no 
     substantial domestic production or market exists but that 
     could lead to industrial raw material being imported, or 
     likely to be imported, into the United States, or commodities 
     grown for experimental purposes (including kenaf and 
     milkweed), subject to the following sentence. The Secretary 
     may permit the acreage to be devoted to the production only 
     if the Secretary determines that the production is--

       ``(I) not likely to increase the cost of the price support 
     program; and
       ``(II) needed to provide an adequate supply of the 
     commodity, or, in the case of a commodity for which no 
     substantial domestic production or market exists but that 
     could yield industrial raw materials, the production is 
     needed to encourage domestic manufacture of the raw material 
     and could lead to increased industrial use of the raw 
     material to the long-term benefit of United States industry.

       ``(ii) Oilseeds.--The Secretary shall permit, subject to 
     such terms and conditions as the Secretary may prescribe, all 
     or any part of acreage otherwise required to be devoted to 
     conservation uses as a condition of qualifying for payments 
     under subparagraph (D) to be devoted to sunflowers, rapeseed, 
     canola, safflower, flaxseed, mustard seed, sesame, crambe, or 
     other minor oilseeds designated by the Secretary (excluding 
     soybeans). In carrying out this clause, the Secretary shall 
     provide that, to receive payments under subparagraph (D), the 
     producers shall agree to forgo eligibility to receive a loan 
     under section 205 for the crop of any such oilseed produced 
     on the farm.
       ``(iii) Double cropping.--The Secretary shall permit, 
     subject to such terms and conditions as the Secretary may 
     prescribe, all or any portion of the acreage otherwise 
     required to be devoted to conservation uses as a condition of 
     qualifying for payments under subparagraph (D) that is 
     devoted to an industrial, oilseed, or other crop pursuant to 
     clause (i) or (ii) to be subsequently planted during the same 
     crop year to any crop described in subparagraph (B), (C), or 
     (D) of section 504(b)(1). The planting of soybeans as the 
     subsequently planted crop shall be limited to farms 
     determined by the Secretary to have an established history of 
     double cropping soybeans during at least 3 of the preceding 5 
     years. In carrying out this clause, the Secretary shall 
     require producers to agree to forego eligibility to receive 
     loans under this Act for the crop of the subsequently planted 
     crop that is produced on a farm under this clause.
       ``(2) Crop insurance requirement.--As a condition of 
     eligibility for wheat loans, purchases, and payments, the 
     producers on a farm shall obtain catastrophic risk protection 
     insurance coverage in accordance with section 427.
       ``(d) Payment Yields.--The farm program payment yields for 
     farms for each crop of wheat under this section shall be 
     determined under title V.
       ``(e) Acreage Reduction Programs.--
       ``(1) In general.--
       ``(A) Establishment.--Notwithstanding any other provision 
     of this Act, if the Secretary determines that the total 
     supply of wheat, in the absence of an acreage limitation 
     program, will be excessive taking into account the need for 
     an adequate carry-over to maintain reasonable and stable 
     supplies and prices and to meet a national emergency, the 
     Secretary may provide for any crop of wheat an acreage 
     limitation program as described in paragraph (2).
       ``(B) Agricultural resources conservation program.--In 
     making a determination under subparagraph (A), the Secretary 
     shall take into consideration the number of acres placed in 
     the agricultural resources conservation program established 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3830 et seq.).
       ``(C) Announcements.--If the Secretary elects to implement 
     an acreage limitation program for any crop year, the 
     Secretary shall announce the program not later than the June 
     1 preceding the calendar year in which the crop is harvested, 
     except that in the case of the 1996 crop, the Secretary shall 
     announce the program as soon as practicable after the date of 
     enactment of the Agricultural Competitiveness Act of 1995.
       ``(D) Adjustments.--Not later than July 31 of the year 
     preceding the year in which the crop is harvested, the 
     Secretary may make adjustments in the program announced under 
     subparagraph (C) if the Secretary determines that there has 
     been a significant change in the total supply of wheat since 
     the program was first announced.
       ``(E) Compliance.--As a condition of eligibility for loans, 
     purchases, and payments for any such crop of wheat, except as 
     provided in subsections (f) and (g) and section 504, the 
     producers on a farm shall comply with the terms and 
     conditions of the acreage limitation program and, if 
     applicable, a land diversion program as provided in paragraph 
     (5).
       ``(F) Acreage limitation programs.--If the Secretary 
     estimates for a marketing year for the crop that the ratio of 
     ending stocks of wheat to total disappearance of wheat for 
     the preceding marketing year will be--
       ``(i) more than 40 percent, the Secretary shall provide for 
     an acreage limitation program (as described in paragraph (2)) 
     under which the acreage planted to wheat for harvest on a 
     farm is limited to the wheat crop acreage base for the farm 
     for the crop reduced by not less than 10 percent nor more 
     than 20 percent; or 
     
[[Page S599]]

       ``(ii) equal to or less than 40 percent, the Secretary may 
     provide for such an acreage limitation program under which 
     the acreage planted to wheat for harvest on a farm is limited 
     to the wheat crop acreage base for the farm for the crop 
     reduced by not more than 15 percent.
       ``(G) Definition of total disappearance.--In this 
     paragraph, the term `total disappearance' means all wheat 
     utilization, including total domestic, total export, and 
     total residual disappearance.
       ``(2) Acreage limitation program.--
       ``(A) Percentage reductions.--Except as provided in 
     paragraph (3), if a wheat acreage limitation program is 
     announced under paragraph (1), the limitation shall be 
     achieved by applying a uniform percentage reduction (from 0 
     to 20 percent) to the wheat crop acreage base for the crop 
     for each wheat-producing farm.
       ``(B) Compliance.--Except as provided in subsection (g) and 
     section 504, producers who knowingly produce wheat in excess 
     of the permitted acreage for wheat for the farm shall be 
     ineligible for wheat loans, purchases, and payments with 
     respect to the farm.
       ``(C) Crop acreage bases.--Wheat crop acreage bases for 
     each crop of wheat shall be determined under title V.
       ``(D) Acreage devoted to conservation uses.--
       ``(i) In general.--A number of acres on the farm shall be 
     devoted to conservation uses, in accordance with regulations 
     issued by the Secretary.
       ``(ii) Number.--The number shall be determined by 
     multiplying the wheat crop acreage base by the percentage 
     reduction required by the Secretary. The number of acres so 
     determined is referred to in this section as `reduced 
     acreage'. The remaining acreage is referred to in this 
     section as `permitted acreage'.
       ``(iii) Adjustment.--Permitted acreage may be adjusted by 
     the Secretary as provided in paragraph (3) and in section 
     504.
       ``(E) Individual farm program acreage.--Except as otherwise 
     provided in subsection (c), the individual farm program 
     acreage shall be the acreage planted on the farm to wheat for 
     harvest within the permitted acreage for wheat for the farm 
     as established under this paragraph.
       ``(F) Planting designated crops on reduced acreage.--
       ``(i) Definition of designated crop.--In this subparagraph, 
     the term `designated crop' means a crop specified in section 
     504(b)(1), excluding any program crop as defined in section 
     502(3).
       ``(ii) Planting designated crops.--Subject to clause (iii), 
     the Secretary may permit producers on a farm to plant a 
     designated crop on not more than \1/2\ of the reduced acreage 
     on the farm.
       ``(iii) Limitations.--If the producers on a farm elect to 
     plant a designated crop on reduced acreage under this 
     subparagraph--

       ``(I) the amount of the deficiency payment that the 
     producers are otherwise eligible to receive under subsection 
     (c) shall be reduced, for each acre (or portion of an acre) 
     that is planted to the designated crop, by an amount equal to 
     the deficiency payment that would be made with respect to 
     a number of acres of the crop that the Secretary considers 
     appropriate, except that if the producers on the farm are 
     participating in a program established for more than 1 
     program crop, the amount of the reduction shall be 
     determined by prorating the reduction based on the acreage 
     planted or considered planted on the farm to all of the 
     program crops; and

       ``(II) the Secretary shall ensure that reductions in 
     deficiency payments under subclause (I) are sufficient to 
     ensure that this subparagraph will result in no additional 
     cost to the Commodity Credit Corporation.

       ``(3) Targeted option payments.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, if the Secretary implements an acreage 
     limitation program with respect to any of the 1996 through 
     2002 crops of wheat, the Secretary may make available to 
     producers on a farm adjustments in the level of deficiency 
     payments that would otherwise be made available to the 
     producers if the producers exercise the payment options 
     provided in this paragraph.
       ``(B) Payment options.--If the Secretary elects to carry 
     out this paragraph, the Secretary shall make the payment 
     options specified in subparagraphs (C) and (D) available to 
     producers who agree to make adjustments in the quantity of 
     acreage diverted from the production of wheat under an 
     acreage limitation program in accordance with this paragraph.
       ``(C) Increased acreage limitation option.--
       ``(i) Increase in established price.--If the Secretary 
     elects to carry out this paragraph, the producers on a farm 
     shall be eligible to receive an increase in the established 
     price for wheat in accordance with clause (ii) if the 
     producers agree to an increase in the acreage limitation 
     percentage to be applied to the wheat acreage base of the 
     producers above the acreage limitation percentage announced 
     by the Secretary.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who participate in the program under this 
     paragraph, the Secretary shall increase the established price 
     for wheat by an amount determined by the Secretary of not 
     less than 0.5 percent, nor more than 1 percent, for each 1 
     percentage point increase in the acreage limitation 
     percentage applied to the wheat acreage base of the 
     producers.
       ``(iii) Limitation.--The acreage limitation percentage to 
     be applied to the wheat acreage base of the producers shall 
     not be increased by more than 15 percentage points above the 
     acreage limitation percentage announced by the Secretary for 
     the crop or above 25 percent total for the crop.
       ``(D) Decreased acreage limitation option.--
       ``(i) Decrease in acreage limitation requirement.--If the 
     Secretary elects to carry out this paragraph, the producers 
     on a farm shall be eligible to decrease the acreage 
     limitation percentage applicable to the wheat acreage base of 
     the producers (as announced by the Secretary) if the 
     producers agree to a decrease in the established price for 
     wheat in accordance with clause (ii) for the purpose of 
     calculating deficiency payments to be made available to the 
     producers.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who choose the option established under this 
     subparagraph, the Secretary shall decrease the established 
     price for wheat by an amount to be determined by the 
     Secretary of not less than 0.5 percent, nor more than 1 
     percent, for each 1 percentage point decrease in the acreage 
     limitation percentage applied to the wheat acreage base of 
     the producers.
       ``(iii) Limitation.--The producers on a farm may not choose 
     to decrease the acreage limitation percentage applicable to 
     the wheat acreage base of the producers under this paragraph 
     by more than \1/2\ of the announced acreage limitation 
     percentage.
       ``(E) Participation and production effects.--
     Notwithstanding any other provision of this paragraph, the 
     Secretary shall, to the extent practicable, ensure that the 
     program provided for in this paragraph does not have a 
     significant effect on participation in the program 
     established by this section or total production and is 
     offered in such a manner that the Secretary determines will 
     result in no additional budget outlays. The Secretary shall 
     provide an analysis of the determination of the Secretary to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate.
       ``(4) Administration.--
       ``(A) Protection from weeds and erosion.--The regulations 
     issued by the Secretary under paragraph (2) with respect to 
     acreage required to be devoted to conservation uses shall 
     ensure protection of the acreage from weeds and wind and 
     water erosion.
       ``(B) Conserving crops.--The Secretary may permit, subject 
     to such terms and conditions as the Secretary may prescribe, 
     all or any part of the acreage to be devoted to sweet 
     sorghum, guar, sesame, castor beans, crambe, plantago ovato, 
     triticale, rye, mung beans, milkweed, or other commodity, if 
     the Secretary determines that the production is needed to 
     provide an adequate supply of the commodity, is not likely to 
     increase the cost of the price support program, and will not 
     affect farm income adversely.
       ``(C) Haying and grazing.--
       ``(i) In general.--Except as provided in clause (ii), 
     haying and grazing of reduced acreage and acreage diverted 
     from production under a land diversion program established 
     under this subsection shall be permitted, except during any 
     consecutive 5-month period that is established by the State 
     committee established under section 8(b) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) 
     for a State. The 5-month period shall be established during 
     the period beginning April 1, and ending October 31, of a 
     year.
       ``(ii) Natural disasters.--In the case of a natural 
     disaster, the Secretary may permit unlimited haying and 
     grazing on the acreage. The Secretary may not exclude 
     irrigated or irrigable acreage not planted to alfalfa when 
     exercising the authority under this clause.
       ``(D) Water storage uses.--
       ``(i) In general.--The regulations issued by the Secretary 
     under paragraph (2) with respect to acreage required to be 
     devoted to conservation uses shall provide that land that has 
     been converted to water storage uses shall be considered to 
     be devoted to conservation uses if the land was devoted to 
     wheat, feed grains, cotton, rice, or oilseeds in at least 3 
     of the immediately preceding 5 crop years. The land shall be 
     considered to be devoted to conservation uses for the period 
     that the land remains in water storage uses, but not to 
     exceed 5 crop years subsequent to the conversion of the land 
     to water storage uses.
       ``(ii) Limitations.--Land converted to water storage uses 
     for the purposes of this subparagraph may not be devoted to 
     any commercial use, including commercial fish production. The 
     water stored on the land may not be ground water. The farm on 
     which the land is located must have been irrigated with 
     ground water during at least 1 of the preceding 5 crop years.
       ``(E) Summer fallow.--In determining the quantity of land 
     to be devoted to conservation uses under an acreage 
     limitation program with respect to land that has been farmed 
     under summer fallow practices, as defined by the Secretary, 
     the Secretary shall consider the effects of soil erosion and 
     such other factors as the Secretary considers appropriate.
       ``(5) Land diversion payments.--
       ``(A) In general.--The Secretary may make land diversion 
     payments to producers 

[[Page S600]]
     of wheat, whether or not an acreage limitation program for wheat is in 
     effect, if the Secretary determines that the land diversion 
     payments are necessary to assist in adjusting the total 
     national acreage of wheat to desirable goals. The land 
     diversion payments shall be made to producers who, to the 
     extent prescribed by the Secretary, devote to approved 
     conservation uses an acreage of cropland on the farm in 
     accordance with land diversion contracts entered into by the 
     Secretary with the producers.
       ``(B) Amounts.--The amounts payable to producers under land 
     diversion contracts may be determined through the submission 
     of bids for the contracts by producers in such manner as the 
     Secretary may prescribe or through such other means as the 
     Secretary determines appropriate. In determining the 
     acceptability of contract offers, the Secretary shall take 
     into consideration the extent of the diversion to be 
     undertaken by the producers and the productivity of the 
     acreage diverted.
       ``(C) Limitation on diverted acreage.--The Secretary shall 
     limit the total acreage to be diverted under agreements in 
     any county or local community so as not to affect adversely 
     the economy of the county or local community.
       ``(6) Conservation practices.--
       ``(A) Wildlife food plots or habitat.--The reduced acreage 
     and additional diverted acreage may be devoted to wildlife 
     food plots or wildlife habitat in conformity with standards 
     established by the Secretary in consultation with wildlife 
     agencies. The Secretary may pay an appropriate share of the 
     cost of practices designed to carry out this subparagraph.
       ``(B) Soil and water conservation practices.--The Secretary 
     may pay an appropriate share of the cost of approved soil and 
     water conservation practices (including practices that may be 
     effective for a number of years) established by the producers 
     on a farm on acreage required to be devoted to conservation 
     uses or on additional diverted acreage.
       ``(C) Public accessibility.--The Secretary may provide for 
     an additional payment on the acreage in an amount determined 
     by the Secretary to be appropriate in relation to the benefit 
     to the general public if the producers on a farm agree to 
     permit, without other compensation, access to all or such 
     portion of the farm as the Secretary may prescribe by 
     the general public, for hunting, trapping, fishing, and 
     hiking, subject to applicable Federal and State 
     regulations.
       ``(7) Participation agreements.--
       ``(A) In general.--Producers on a farm desiring to 
     participate in the program conducted under this subsection 
     shall execute an agreement with the Secretary providing for 
     the participation with respect to a crop year not later than 
     such date as the Secretary may prescribe.
       ``(B) Modification or termination.--The Secretary may, by 
     mutual agreement with producers on a farm, modify or 
     terminate any such agreement if the Secretary determines the 
     action necessary because of an emergency created by drought 
     or other disaster or to prevent or alleviate a shortage in 
     the supply of agricultural commodities. The Secretary may 
     modify the agreement under this subparagraph for the purpose 
     of alleviating a shortage in the supply of agricultural 
     commodities only if there has been a significant change in 
     the estimated stocks of the commodity since the Secretary 
     announced the final terms and conditions of the program for 
     the crop of wheat.
       ``(8) Special oats plantings.--In the case of a crop year 
     for which the Secretary determines that projected domestic 
     production of oats will not fulfill the projected domestic 
     demand for oats, notwithstanding paragraphs (1) through (7), 
     the Secretary--
       ``(A) may provide that any reduced acreage may be planted 
     to oats for harvest;
       ``(B) may make program benefits (including loans, 
     purchases, and payments) available under the annual program 
     for oats under section 105B available to producers with 
     respect to acreage planted to oats under this paragraph; and
       ``(C) shall not make program benefits other than the 
     benefits specified in subparagraph (B) available to producers 
     with respect to acreage planted to oats under this paragraph.
       ``(f) Inventory Reduction Payments.--
       ``(1) In general.--The Secretary may make payments 
     available to producers on a farm who meet the requirements of 
     this subsection.
       ``(2) Form.--The payments may be made in the form of 
     marketing certificates.
       ``(3) Payments.--Payments under this subsection shall be 
     determined in the manner provided in subsection (b).
       ``(4) Eligibility.--The producers on a farm shall be 
     eligible to receive a payment under this subsection for a 
     crop if the producers--
       ``(A) agree to forgo obtaining a loan or purchase agreement 
     under subsection (a);
       ``(B) agree to forgo receiving payments under subsection 
     (c);
       ``(C) do not plant wheat for harvest in excess of the crop 
     acreage base reduced by \1/2\ of any acreage required to be 
     diverted from production under subsection (e); and
       ``(D) otherwise comply with this section.
       ``(g) Pilot Voluntary Production Limitation Program.--
       ``(1) In general.--Effective for each of the 1996 through 
     2002 crops, if a wheat acreage limitation program or a land 
     diversion program is announced under subsection (e) for a 
     crop, the Secretary may carry out a pilot program in at least 
     15 counties in at least 2 States where producers express an 
     interest in participating in the pilot program. Under the 
     pilot program, the producers on a farm shall be considered to 
     have met the requirements of the acreage limitation or land 
     diversion program if the producers meet the requirements of 
     the voluntary production limitation program established under 
     this subsection.
       ``(2) Limitation on marketing.--To comply with the 
     voluntary production limitation program, the producers on a 
     farm must agree not to market, barter, donate, or use on the 
     farm (including use as feed for livestock) in a marketing 
     year a quantity of wheat in excess of the wheat production 
     limitation quantity for the farm for the marketing year.
       ``(3) Production limitation quantity.--For purposes of this 
     subsection, the wheat production limitation quantity for a 
     farm for a marketing year for a crop shall equal the product 
     obtained by multiplying--
       ``(A) the acreage permitted to be planted to wheat under 
     the acreage reduction program or land diversion program in 
     effect for the crop for the farm; and
       ``(B) the greater of--
       ``(i) the farm program payment yield for the farm; and
       ``(ii) the average of the yield per harvested acre for 
     wheat for the farm for each of the 5 crop years immediately 
     preceding the crop year during which the producers first 
     participate in the program established under this subsection, 
     excluding the crop years with the highest and lowest yield 
     per harvested acre and any crop year in which the commodity 
     was not planted on the farm.
       ``(4) Terms and conditions.--Producers on a farm who elect 
     to participate in the program established under this 
     subsection for a crop of wheat shall--
       ``(A) enter into an agreement with the Secretary providing 
     that the producers shall comply with the program for the 
     crop;
       ``(B) not plant program commodities for harvest in a 
     quantity in excess of the sum of the crop acreage bases for 
     the farm; and
       ``(C) be considered to have complied with the terms and 
     conditions of the wheat acreage reduction program or land 
     diversion program for the crop, even though the acreage 
     planted to wheat on the farm exceeds the permitted acreage 
     provided under the acreage reduction or land diversion 
     program.
       ``(5) Excess production.--
       ``(A) In general.--Any quantity of wheat produced in a crop 
     year on a farm in excess of the production limitation 
     quantity for the farm may be stored by the producers for a 
     period of not to exceed 5 marketing years and may be used 
     only in accordance with this paragraph.
       ``(B) Marketing in subsequent year.--
       ``(i) Participants in program.--Producers on a farm who are 
     participating in the program established under this 
     subsection may market, barter, or use a quantity of the 
     excess wheat referred to in subparagraph (A) equal to the 
     difference between the production limitation quantity for the 
     farm for the crop year subsequent to the crop year in which 
     the excess wheat is produced less the quantity of wheat 
     produced on the farm during the crop year.
       ``(ii) Participants in acreage reduction program.--
     Producers on a farm who are participating in the program 
     established under this subsection may market, barter, or use 
     a quantity of the excess wheat referred to in subparagraph 
     (A) in an amount that reflects the quantity of wheat that 
     would be expected to be produced on acreage that the 
     producers agree to devote to approved conservation uses (in 
     excess of any acreage reduction or land diversion 
     requirements) during a crop year, as determined by the 
     Secretary.
       ``(6) Duties of secretary.--In carrying out the pilot 
     program established under this subsection, the Secretary--
       ``(A) shall issue such regulations as are necessary to 
     carry out the program;
       ``(B) may establish increased acreage reduction or land 
     diversion requirements with respect to producers who have had 
     excess wheat production in order to allow the producers to 
     market, barter, or use the production in subsequent years;
       ``(C) shall take appropriate measures designed to prevent 
     the circumvention of the program established under this 
     subsection, including the imposition of penalties;
       ``(D) may require producers who participate in the program 
     for a crop, but who fail to comply with the terms and 
     conditions of the program, to refund all or a part of any 
     deficiency payments received with respect to the crop;
       ``(E) may require the forfeiture to the Commodity Credit 
     Corporation of any wheat that is produced in excess of the 
     production limitation quantity and that is not marketed, 
     bartered, or used within 5 marketing years; and
       ``(F) shall ensure equitable treatment for producers who 
     participate in the pilot program if the Secretary allows 
     increases (based on actual production levels) in the 
     determination of farm program payment yields for wheat for 
     the farm.
       ``(7) Report.--
       ``(A) In general.--The Comptroller General shall prepare a 
     report that evaluates the pilot program carried out under 
     this subsection.
     
[[Page S601]]

       ``(B) Submission.--The Comptroller General shall submit a 
     copy of the report required by subparagraph (A) to the 
     Committee on Agriculture of the House of Representatives, the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, and the Secretary.
       ``(h) Equitable Relief.--
       ``(1) Loans, purchases, and payments.--If the failure of a 
     producer to comply fully with the terms and conditions of the 
     program conducted under this section precludes the making of 
     loans, purchases, and payments, the Secretary may, 
     notwithstanding the failure, make the loans, purchases, and 
     payments in such amounts as the Secretary determines are 
     equitable in relation to the seriousness of the failure. The 
     Secretary may consider whether the producer made a good faith 
     effort to comply fully with the terms and conditions of the 
     program in determining whether equitable relief is warranted 
     under this paragraph.
       ``(2) Deadlines and program requirements.--The Secretary 
     may authorize the county and State committees established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
     deadlines and other program requirements in cases in which 
     lateness or failure to meet the other requirements does not 
     affect adversely the operation of the program.
       ``(i) Regulations.--The Secretary may issue such 
     regulations as the Secretary determines necessary to carry 
     out this section.
       ``(j) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(k) Assignment of Payments.--Section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
     shall apply to payments made under this section.
       ``(l) Sharing of Payments.--The Secretary shall provide for 
     the sharing of payments made under this section for any farm 
     among the producers on the farm on a fair and equitable 
     basis.
       ``(m) Tenants and Sharecroppers.--In carrying out this 
     section, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(n) Cross-Compliance.--
       ``(1) In general.--Compliance on a farm with the terms and 
     conditions of any other commodity program, or compliance with 
     crop acreage base requirements for any other commodity, may 
     not be required as a condition of eligibility for loans, 
     purchases, or payments under this section.
       ``(2) Compliance on other farms.--The Secretary may not 
     require producers on a farm, as a condition of eligibility 
     for loans, purchases, or payments under this section for the 
     farm, to comply with the terms and conditions of the wheat 
     program with respect to any other farm operated by the 
     producers.
       ``(o) Public Comment on Wheat Program.--
       ``(1) In general.--To ensure that producers and consumers 
     of wheat are provided with reasonable opportunity to comment 
     on the annual program determinations concerning the price 
     support and acreage reduction program for each of the 1997 
     through 2002 crops of wheat, the Secretary shall request 
     public comment regarding the wheat program in accordance with 
     this subsection.
       ``(2) Options.--Not less than 60 days before the program is 
     announced for a crop of wheat under this section, the 
     Secretary shall propose for public comment various program 
     options for the crop of wheat.
       ``(3) Analyses.--Each option proposed by the Secretary 
     shall be accompanied by an analysis that includes the 
     estimated planted acreage, production, domestic and export 
     use, ending stocks, season average producer price, program 
     participation rate, and cost to the Federal Government that 
     would likely result from the option.
       ``(4) Estimates.--In announcing the program for a crop of 
     wheat under this section, the Secretary shall include an 
     estimate of the planted acreage, production, domestic and 
     export use, ending stocks, season average producer price, 
     program participation rate, and cost to the Federal 
     Government that is expected to result from the program as 
     announced.
       ``(p) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of wheat.''.

     SEC. 102. NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS.

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

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

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

     SEC. 104. SUSPENSION OF CERTAIN QUOTA PROVISIONS.

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

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

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

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

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

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

       ``(a) Loans and Purchases.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall make available to producers 
     on a farm loans and purchases for each of the 1996 through 
     2002 crops of corn produced on the farm at such level as the 
     Secretary determines will encourage the exportation of feed 
     grains and not result in excessive total stocks of feed 
     grains after taking into consideration the cost of producing 
     corn, supply and demand conditions, and world prices for 
     corn.
       ``(2) Minimum loan and purchase level.--Except as provided 
     in paragraphs (3) and (4), the loan and purchase level 
     determined under paragraph (1) shall be not less than 85 
     percent of the simple average price received by producers of 
     corn, as determined by the Secretary, during the marketing 
     years for the immediately preceding 5 crops of corn, 
     excluding the year in which the average price was the highest 
     and the year in which the average price was the lowest in the 
     period, except that the loan and purchase level for a crop 
     determined under this paragraph may not be reduced by more 
     than 5 percent from the level determined for the preceding 
     crop.
       ``(3) Adjustments to support level.--
       ``(A) Stocks to use ratio.-- If the Secretary estimates for 
     any marketing year that the ratio of ending stocks of corn to 
     total use for the marketing year will be--
       ``(i) equal to or greater than 25 percent, the Secretary 
     may reduce the loan and purchase level for corn for the crop 
     corresponding to the marketing year by an amount not to 
     exceed 10 percent in any year;
       ``(ii) less than 25 percent but not less than 12.5 percent, 
     the Secretary may reduce the loan and purchase level for corn 
     for the crop corresponding to the marketing year by an amount 
     not to exceed 5 percent in any year; or
       ``(iii) less than 12.5 percent the Secretary may not reduce 
     the loan and purchase level for corn for the crop 
     corresponding to the marketing year.
       ``(B) Report to congress.--
       ``(i) In general.--If the Secretary adjusts the level of 
     loans and purchases for corn under subparagraph (A), the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report--

       ``(I) certifying the adjustment as necessary to prevent the 
     accumulation of stocks and to retain market share; and
       ``(II) containing a description of the need for the 
     adjustment.

       ``(ii) Effective date of adjustment.--The adjustment shall 
     become effective not earlier than 60 calendar days after the 
     date of submission of the report to the Committees, except 
     that in the case of the 1996 crop of feed grains, the 
     adjustment shall become effective on the date of submission 
     of the report.
       ``(C) Competitive position.--Notwithstanding subparagraph 
     (A), if the Secretary determines, not later than 60 days 
     prior to the beginning of a marketing year for a crop, that 
     the effective loan rate established for the crop will not 
     maintain a competitive market position for corn, the 
     Secretary may reduce the loan and purchase level for corn for 
     the marketing year by an amount, in addition to any reduction 
     under subparagraph (A), not to exceed 10 percent in any year.
       ``(D) No effect on future years.--Any reduction in the loan 
     and purchase level for corn under this paragraph shall not be 
     considered in determining the loan and purchase level for 
     corn for subsequent years.
       ``(E) Minimum loan rate.--Notwithstanding subparagraph (A), 
     the loan rate for corn shall not be less than $1.76 per 
     bushel, unless the rate would exceed 80 percent of the 5-year 
     average market price determined under paragraph (2).
       ``(4) Marketing loans.--
       ``(A) In general.--The Secretary shall permit the producers 
     on a farm to repay a loan made under this subsection for a 
     crop at a level (except as provided in subparagraph (C)) that 
     is the lesser of--
       ``(i) the loan level determined for the crop;
       ``(ii) the higher of--

       ``(I) 70 percent of the level; and
       ``(II) if the loan level for a crop was reduced under 
     paragraph (3), 70 percent of the loan level that would have 
     been in effect but for the reduction under paragraph (3); and

       ``(iii) the prevailing world market price for feed grains 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       ``(B) Prevailing world market price.--The Secretary shall 
     prescribe by regulation--
       ``(i) a formula to determine the prevailing world market 
     price for feed grains, adjusted to United States quality and 
     location; and
     
[[Page S602]]

       ``(ii) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for feed 
     grains.
       ``(C) Alternative repayment rates.--For each of the 1996 
     through 2002 crops of feed grains, if the world market price 
     for feed grains (adjusted to United States quality and 
     location), as determined by the Secretary, is less than the 
     loan level determined for the crop, the Secretary may permit 
     the producers on a farm to repay a loan made under this 
     subsection for a crop at such level (not in excess of the 
     loan level determined for the crop) as the Secretary 
     determines will--
       ``(i) minimize potential loan forfeitures;
       ``(ii) minimize the accumulation of feed grain stocks by 
     the Federal Government;
       ``(iii) minimize the cost incurred by the Federal 
     Government in storing feed grains; and
       ``(iv) allow feed grains produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally.
       ``(5) Simple average price.--For purposes of this section, 
     the simple average price received by producers for the 
     immediately preceding marketing year shall be based on the 
     latest information available to the Secretary at the time of 
     the determination.
       ``(6) Other feed grains.--The Secretary shall make 
     available to producers loans and purchases for each of the 
     1996 through 2002 crops of grain sorghums, barley, oats, and 
     rye, respectively, produced on the farm at such level as the 
     Secretary determines is fair and reasonable in relation to 
     the level that loans and purchases are made available for 
     corn, taking into consideration the feeding value of the 
     commodity in relation to corn and other factors specified in 
     section 401(b).
       ``(b) Loan Deficiency Payments.--
       ``(1) In general.--For each of the 1996 through 2002 crops 
     of feed grains, the Secretary may make payments (referred to 
     in this section as `loan deficiency payments') available to 
     producers who, although eligible to obtain a loan or an 
     agreement for purchase under subsection (a), agree to forgo 
     obtaining the loan or agreement in return for payments under 
     this subsection.
       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan payment rate; and
       ``(B) the quantity of feed grains the producers on a farm 
     are eligible to place under loan (or obtain a purchase 
     agreement) but for which the producers forgo obtaining the 
     loan or agreement in return for payments under this 
     subsection.
       ``(3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       ``(A) the loan level determined for the crop under 
     subsection (a); exceeds
       ``(B) the level at which a loan may be repaid under 
     subsection (a).
       ``(c) Payments.--
       ``(1) Deficiency payments.--
       ``(A) In general.--The Secretary shall make available to 
     producers payments (referred to in this section as 
     `deficiency payments') for each of the 1996 through 2002 
     crops of corn, grain sorghums, oats, and barley, in an amount 
     computed by multiplying--
       ``(i) the payment rate;
       ``(ii) the payment acres for the crop; and
       ``(iii) the farm program payment yield established for the 
     crop for the farm.
       ``(B) Payment rate.--
       ``(i) In general.--The payment rate for each of the 1996 
     through 2002 crops of corn, grain sorghums, oats, and barley 
     shall be the amount by which the established price for the 
     respective crop of feed grains exceeds the higher of--

       ``(I) the lesser of--

       ``(aa) the national weighted average market price received 
     by producers during the marketing year for the crop, as 
     determined by the Secretary; and
       ``(bb) the national weighted average market price received 
     by producers during the first 5 months of the marketing year 
     for the crop, as determined by the Secretary, plus 7 cents 
     per bushel; and

       ``(II) the loan level determined for the crop, prior to any 
     adjustment made under subsection (a)(3) for the marketing 
     year for the respective crop of feed grains.

       ``(ii) Minimum established prices.--

       ``(I) Corn.--The established price for corn shall not be 
     less than $2.75 per bushel for each of the 1996 through 2002 
     crops of corn.
       ``(II) Oats.--The established price for oats shall be such 
     price as the Secretary determines is fair and reasonable in 
     relation to the established price for corn, but not less than 
     $1.45 per bushel.

       ``(III) Grain sorghums.--The established price for each of 
     the 1996 through 2002 crops of grain sorghums shall not be 
     less than $2.61 per bushel.
       ``(IV) Barley.--

       ``(aa) In general.--The established price for barley shall 
     be such price as the Secretary determines is fair and 
     reasonable in relation to the established price for corn, 
     taking into consideration the various feed and food uses for 
     barley. The established price for barley shall not be less 
     than 85.8 percent of the established price for corn.
       ``(bb) Barley calculations.--The Secretary shall, for 
     purposes of determining the payment rate for barley under 
     clauses (i) and (ii) and subparagraph (D)(ii), use the 
     national weighted average market price received by producers 
     of barley sold primarily for feed purposes.
       ``(cc) Advance payments.--In the case of the 1996 crop of 
     barley, the Secretary shall, for purposes of determining any 
     advance deficiency payment made to the producers of barley 
     under section 114, use the national weighted average market 
     price received by producers for all barley, as determined by 
     the Secretary.
       ``(dd) Equity.--In carrying out this subsection, the 
     Secretary shall make available to producers of the 1996 crop 
     of barley, notwithstanding the method of calculation or the 
     amount of the advance deficiency payment, the total amount of 
     payments as calculated under item (bb).
       ``(C) Payment acres.--Payment acres for a crop shall be the 
     lesser of--
       ``(i) the number of acres planted to the crop for harvest 
     within the permitted acreage (as defined in subsection 
     (e)(2)(D)(ii)); or
       ``(ii) 75 percent of the crop acreage base for the crop for 
     the farm less the quantity of reduced acreage (as defined in 
     subsection (e)(2)(D)(ii)).
       ``(D) Emergency compensation.--
       ``(i) In general.--Notwithstanding subparagraphs (A) 
     through (C), if the Secretary adjusts the level of loans and 
     purchases for feed grains under subsection (a)(3), the 
     Secretary shall provide emergency compensation to producers 
     by increasing the deficiency payments for feed grains by such 
     amount as the Secretary determines is necessary to provide 
     the same total return to producers as if the adjustment in 
     the level of loans and purchases had not been made.
       ``(ii) Calculation.--In determining the payment rate, per 
     bushel, for emergency compensation payments for a crop of 
     feed grains under this subparagraph, the Secretary shall use 
     the national weighted average market price, per bushel of 
     feed grains, received by producers during the marketing year 
     for the crop, as determined by the Secretary.
       ``(E) 0/85 program.--
       ``(i) In general.--If an acreage limitation program under 
     subsection (e)(2) is in effect for a crop of feed grains and 
     the producers on a farm devote a portion of the maximum 
     payment acres of the farm for feed grains as calculated under 
     subparagraph (C)(ii) equal to 15 percent (except as provided 
     in clause (vii)) of the feed grain acreage of the farm for 
     the crop to conservation uses (except as provided in 
     subparagraph (F))--

       ``(I) the portion of the maximum payment acres of the farm 
     in excess of 15 percent (except as provided in clause (vii)) 
     of the acreage devoted to conservation uses (except as 
     provided in subparagraph (F)) shall be considered to be 
     planted to feed grains for the purpose of determining the 
     acreage on the farm required to be devoted to conservation 
     uses in accordance with subsection (e)(2)(D); and
       ``(II) the producers shall be eligible for payments under 
     this paragraph with respect to the acreage.

       ``(ii) Deficiency payments.--Notwithstanding any other 
     provision of this section, any producers on a farm who devote 
     a portion of the maximum payment acres of the farm for feed 
     grains to conservation uses (or other uses as provided in 
     subparagraph (F)) under this subparagraph shall receive 
     deficiency payments on the acreage that is considered to be 
     planted to feed grains and eligible for payments under this 
     subparagraph for the crop at a per-bushel rate established by 
     the Secretary, except that the rate may not be established at 
     less than the projected deficiency payment rate for the crop, 
     as determined by the Secretary. The projected payment rate 
     for the crop shall be announced by the Secretary prior to the 
     period during which feed grain producers may agree to 
     participate in the program for the crop.
       ``(iii) Adverse effect on agribusiness and other 
     interests.--The Secretary shall carry out this subparagraph 
     in such a manner as to minimize the adverse effect on 
     agribusiness and other agriculturally related economic 
     interests within any county, State, or region. In carrying 
     out this subparagraph, the Secretary may restrict the total 
     quantity of feed grain acreage that may be taken out of 
     production under this subparagraph, taking into consideration 
     the total quantity of acreage that has or will be removed 
     from production under other price support, production 
     adjustment, or conservation program activities. No 
     restrictions on the quantity of acreage that may be taken out 
     of production in accordance with this subparagraph in a crop 
     year shall be imposed in the case of a county in which 
     producers were eligible to receive disaster emergency loans 
     under section 321 of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1961) as a result of a disaster 
     that occurred during the crop year.
       ``(iv) Crop acreage and payment yield.--The feed grain crop 
     acreage base and feed grain farm program payment yield of the 
     farm shall not be reduced because of the fact that a portion 
     of the permitted acreage for feed grains for the farm was 
     devoted to conserving uses (except as provided in 
     subparagraph (F)) under this subparagraph.
       ``(v) Limitation.--Other than as provided in clauses (i) 
     through (iv), payments may not be made under this paragraph 
     for any crop on a greater acreage than the acreage actually 
     planted to feed grains.
       ``(vi) Conservation use acreage under other programs.--Any 
     acreage considered to be planted to feed grains in accordance 
     with clauses (i) and (iv) may not also be designated as 
     conservation use acreage for the purpose of fulfilling any 
     provision under any acreage limitation or land diversion 
     program 

[[Page S603]]
     requiring that the producers devote a specified quantity of acreage to 
     conservation uses.
       ``(vii) Exceptions to 0/85.--In the case of each of the 
     1996 through 2002 crops of feed grains, producers on a farm 
     shall be eligible to receive deficiency payments as provided 
     in clause (ii) if an acreage limitation program under 
     subsection (e) is in effect for the crop and the producers--

       ``(I)(aa) have been determined by the Secretary (in 
     accordance with section 503(c)) to be prevented from planting 
     the crop, or have incurred a reduced yield for the crop 
     because of a natural disaster; and
       ``(bb) elect to devote a portion of the maximum payment 
     acres for feed grains (as calculated under subparagraph 
     (C)(ii)) equal to more than 8 percent of the feed grain 
     acreage, to conservation uses; or
       ``(II) elect to devote a portion of the maximum payment 
     acres for feed grains (as calculated under subparagraph 
     (C)(ii)) equal to more than 8 percent of the feed grain 
     acreage, to alternative crops as provided in subparagraph 
     (F).

       ``(F) Alternative crops.--
       ``(i) Industrial and other crops.--The Secretary may 
     permit, subject to such terms and conditions as the Secretary 
     may prescribe, all or any part of acreage otherwise required 
     to be devoted to conservation uses as a condition of 
     qualifying for payments under subparagraph (E) to be devoted 
     to sweet sorghum, guar, castor beans, plantago ovato, 
     triticale, rye, millet, mung beans, commodities for which no 
     substantial domestic production or market exists but that 
     could lead to industrial raw material being imported, or 
     likely to be imported, into the United States, or commodities 
     grown for experimental purposes (including kenaf and 
     milkweed), subject to the following sentence. The Secretary 
     may permit the acreage to be devoted to the production only 
     if the Secretary determines that the production is--

       ``(I) not likely to increase the cost of the price support 
     program; and
       ``(II) needed to provide an adequate supply of the 
     commodity, or, in the case of a commodity for which no 
     substantial domestic production or market exists but that 
     could yield industrial raw materials, the production is 
     needed to encourage domestic manufacture of the raw material 
     and could lead to increased industrial use of the raw 
     material to the long-term benefit of United States industry.

       ``(ii) Oilseeds.--The Secretary shall permit, subject to 
     such terms and conditions as the Secretary may prescribe, all 
     or any part of acreage otherwise required to be devoted to 
     conservation uses as a condition of qualifying for payments 
     under subparagraph (E) to be devoted to sunflowers, rapeseed, 
     canola, safflower, flaxseed, mustard seed, sesame, crambe, or 
     other minor oilseeds designated by the Secretary (excluding 
     soybeans). In carrying out this clause, the Secretary shall 
     provide that, to receive payments under subparagraph (E), 
     the producers shall agree to forgo eligibility to receive 
     a loan under section 205 for the crop of any such oilseed 
     produced on the farm.
       ``(iii) Double cropping.--The Secretary shall permit, 
     subject to such terms and conditions as the Secretary may 
     prescribe, all or any portion of the acreage otherwise 
     required to be devoted to conservation uses as a condition of 
     qualifying for payments under subparagraph (E) that is 
     devoted to an industrial, oilseed, or other crop pursuant to 
     clause (i) or (ii) to be subsequently planted during the same 
     crop year to any crop described in subparagraph (B), (C), or 
     (D) of section 504(b)(1). The planting of soybeans as the 
     subsequently planted crop shall be limited to farms 
     determined by the Secretary to have an established history of 
     double cropping soybeans during at least 3 of the preceding 5 
     years. In carrying out this clause, the Secretary shall 
     require producers to agree to forego eligibility to receive 
     loans under this Act for the crop of the subsequently planted 
     crop that is produced on a farm under this clause.
       ``(2) Crop insurance requirement.--As a condition of 
     eligibility for feed grain loans, purchases, and payments, 
     the producers on a farm shall obtain catastrophic risk 
     protection insurance coverage in accordance with section 427.
       ``(d) Payment Yields.--The farm program payment yields for 
     farms for each crop of feed grains under this section shall 
     be determined under title V.
       ``(e) Acreage Reduction Programs.--
       ``(1) In general.--
       ``(A) Establishment.--Notwithstanding any other provision 
     of this Act, if the Secretary determines that the total 
     supply of corn, grain sorghum, barley, or oats, in the 
     absence of an acreage limitation program, will be excessive 
     taking into account the need for an adequate carry-over to 
     maintain reasonable and stable supplies and prices and to 
     meet a national emergency, the Secretary may provide for any 
     crop of corn, grain sorghum, barley, or oats an acreage 
     limitation program as described in paragraph (2).
       ``(B) Agricultural resources conservation program.--In 
     making a determination under subparagraph (A), the Secretary 
     shall take into consideration the number of acres placed in 
     the agricultural resources conservation program established 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3830 et seq.).
       ``(C) Announcements.--If the Secretary elects to implement 
     an acreage limitation program for any crop year, the 
     Secretary shall announce the program not later than the 
     September 30 preceding the calendar year in which the crop is 
     harvested, except that in the case of the 1996 crop, the 
     Secretary shall announce the program as soon as practicable 
     after the date of enactment of the Food, Agriculture, 
     Conservation, and Trade Act of 1995.
       ``(D) Adjustments.--Not later than November 15 of the year 
     preceding the year in which the crop is harvested, the 
     Secretary may make adjustments in the program announced under 
     subparagraph (C) if the Secretary determines that there has 
     been a significant change in the total supply of feed grains 
     since the program was first announced.
       ``(E) Compliance.--As a condition of eligibility for loans, 
     purchases, and payments for any such crop of feed grains, 
     except as provided in subsections (f) and (g) and section 
     504, the producers on a farm shall comply with the terms and 
     conditions of the acreage limitation program and, if 
     applicable, a land diversion program as provided in paragraph 
     (5).
       ``(F) Acreage limitation programs.--If the Secretary 
     estimates for a marketing year for the crop that the ratio of 
     ending stocks of corn to total disappearance of corn for the 
     preceding marketing year will be--
       ``(i) more than 25 percent, the Secretary shall provide for 
     an acreage limitation program (as described in paragraph (2)) 
     under which the acreage planted to corn for harvest on a farm 
     is limited to the corn crop acreage base for the farm for the 
     crop reduced by not less than 10 percent nor more than 20 
     percent; or
       ``(ii) equal to or less than 25 percent, the Secretary may 
     provide for such an acreage limitation program under which 
     the acreage planted to corn for harvest on a farm is limited 
     to the corn crop acreage base for the farm for the crop 
     reduced by not more than 12.5 percent.
       ``(G) Definition of total disappearance.--In this 
     paragraph, the term `total disappearance' means all corn 
     utilization, including total domestic, total export, and 
     total residual disappearance.
       ``(H) Acreage limitation program for 1996 through 2002 
     crops of oats.--In the case of each of the 1996 through 2002 
     crops of oats, the Secretary shall provide for an acreage 
     limitation program (as described in paragraph (2)) under 
     which the acreage planted to oats for harvest on a farm would 
     be limited to the oat crop acreage base for the farm for the 
     crop reduced by not more than 0 percent.
       ``(2) Acreage limitation program.--
       ``(A) Percentage reductions.--Except as provided in 
     paragraph (3), if a feed grain acreage limitation program is 
     announced under paragraph (1), the limitation shall be 
     achieved by applying a uniform percentage reduction (from 
     0 to 20 percent) to the crop acreage base for corn, grain 
     sorghum, barley, or oats, respectively, for each feed 
     grain-producing farm.
       ``(B) Compliance.--Except as provided in subsection (g) and 
     section 504, producers who knowingly produce a feed grain in 
     excess of the respective permitted acreage for feed grains 
     for the farm shall be ineligible for feed grain loans, 
     purchases, and payments with respect to the farm.
       ``(C) Crop acreage bases.--Feed grain crop acreage bases 
     for each crop of feed grains shall be determined under title 
     V.
       ``(D) Acreage devoted to conservation uses.--
       ``(i) In general.--A number of acres on the farm shall be 
     devoted to conservation uses, in accordance with regulations 
     issued by the Secretary.
       ``(ii) Number.--The number shall be determined by 
     multiplying the respective feed grain crop acreage base by 
     the percentage reduction required by the Secretary. The 
     number of acres so determined is referred to in this section 
     as `reduced acreage'. The remaining acreage is referred to in 
     this section as `permitted acreage'.
       ``(iii) Adjustment.--Permitted acreage may be adjusted by 
     the Secretary as provided in paragraph (3) and in section 
     504.
       ``(E) Individual farm program acreage.--Except as otherwise 
     provided in subsection (c), the individual farm program 
     acreage shall be the acreage planted on the farm to feed 
     grains for harvest within the permitted acreage for feed 
     grains for the farm as established under this paragraph.
       ``(F) Planting designated crops on reduced acreage.--
       ``(i) Definition of designated crop.--In this subparagraph, 
     the term `designated crop' means a crop specified in section 
     504(b)(1), excluding any program crop as defined in section 
     502(3).
       ``(ii) Planting designated crops.--Subject to clause (iii), 
     the Secretary may permit producers on a farm to plant a 
     designated crop on not more than \1/2\ of the reduced acreage 
     on the farm.
       ``(iii) Limitations.--If the producers on a farm elect to 
     plant a designated crop on reduced acreage under this 
     subparagraph--

       ``(I) the amount of the deficiency payment that the 
     producers are otherwise eligible to receive under subsection 
     (c) shall be reduced, for each acre (or portion of an acre) 
     that is planted to the designated crop, by an amount equal to 
     the deficiency payment that would be made with respect to a 
     number of acres of the crop that the Secretary considers 
     appropriate, except that if the producers on the farm are 
     participating in a program established for more than 1 
     program crop, the amount of the reduction shall be determined 
     by prorating the reduction based 

[[Page S604]]
     on the acreage planted or considered planted on the farm to all of the 
     program crops; and
       ``(II) the Secretary shall ensure that reductions in 
     deficiency payments under subclause (I) are sufficient to 
     ensure that this subparagraph will result in no additional 
     cost to the Commodity Credit Corporation.

       ``(G) Exception for malting barley.--The Secretary may 
     provide that no producer of malting barley shall be required 
     as a condition of eligibility for feed grain loans, 
     purchases, and payments to comply with any acreage limitation 
     under this paragraph if the producer has previously produced 
     a malting variety of barley for harvest, plants barley only 
     of an acceptable malting variety for harvest, and meets such 
     other conditions as the Secretary may prescribe. The 
     Secretary shall make an annual determination of whether to 
     exempt the producers from compliance with any acreage 
     limitation under this paragraph and shall announce the 
     determination in the Federal Register.
       ``(H) Corn and sorghum bases.--Notwithstanding any other 
     provision of this Act, with respect to each of the 1996 
     through 2002 crops of corn and grain sorghums--
       ``(i) the Secretary shall combine the permitted acreages 
     established under subparagraph (D) for a farm for a crop year 
     for corn and grain sorghums;
       ``(ii) for each crop year, the sum of the acreage planted 
     and considered planted to corn and grain sorghum, as 
     determined by the Secretary under this section and title V, 
     shall be prorated to corn and grain sorghum based on the 
     ratio of the crop acreage base for the individual crop of 
     corn or grain sorghum, as applicable, to the sum of the crop 
     acreage bases for corn and grain sorghum established for each 
     crop year; and
       ``(iii) for each crop year, the sum of the corn and grain 
     sorghum payment acres, as determined under subsection (c), 
     shall be prorated to corn and grain sorghum based on the 
     ratio of the maximum payment acres for the individual crop of 
     corn or grain sorghum, as applicable, to the sum of the 
     maximum payment acres for corn and grain sorghum established 
     for each crop year.
       ``(3) Targeted option payments.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, if the Secretary implements an acreage 
     limitation program with respect to any of the 1996 through 
     2002 crops of feed grains, the Secretary may make available 
     to producers on a farm who do not receive payments under 
     subsection (c)(1)(E) for the crop on the farm, adjustments in 
     the level of deficiency payments that would otherwise be made 
     available to the producers if the producers exercise the 
     payment options provided in this paragraph.
       ``(B) Payment options.--If the Secretary elects to carry 
     out this paragraph, the Secretary shall make the payment 
     options specified in subparagraphs (C) and (D) available to 
     producers who agree to make adjustments in the quantity of 
     acreage diverted from the production of feed grains under an 
     acreage limitation program in accordance with this paragraph.
       ``(C) Increased acreage limitation option.--
       ``(i) Increase in established price.--If the Secretary 
     elects to carry out this paragraph, the producers on a farm 
     shall be eligible to receive an increase in the established 
     price for corn in accordance with clause (ii) if the 
     producers agree to an increase in the acreage limitation 
     percentage to be applied to the corn acreage base of the 
     producers above the acreage limitation percentage announced 
     by the Secretary.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who participate in the program under this 
     paragraph, the Secretary shall increase the established price 
     for corn by an amount determined by the Secretary of not less 
     than 0.5 percent, nor more than 1 percent, for each 1 
     percentage point increase in the acreage limitation 
     percentage applied to the corn acreage base of the producers.
       ``(iii) Limitation.--The acreage limitation percentage to 
     be applied to the corn acreage base of the producers shall 
     not be increased by more than 10 percentage points above the 
     acreage limitation percentage announced by the Secretary for 
     the crop or above 20 percent total for the crop.
       ``(D) Decreased acreage limitation option.--
       ``(i) Decrease in acreage limitation requirement.--If the 
     Secretary elects to carry out this paragraph, the producers 
     on a farm shall be eligible to decrease the acreage 
     limitation percentage applicable to the corn acreage base of 
     the producers (as announced by the Secretary) if the 
     producers agree to a decrease in the established price for 
     corn in accordance with clause (ii) for the purpose of 
     calculating deficiency payments to be made available to the 
     producers.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who choose the option established under this 
     subparagraph, the Secretary shall decrease the established 
     price for corn by an amount to be determined by the Secretary 
     of not less than 0.5 percent, nor more than 1 percent, for 
     each 1 percentage point decrease in the acreage limitation 
     percentage applied to the corn acreage base of the producers.
       ``(iii) Limitation.--The producers on a farm may not choose 
     to decrease the acreage limitation percentage applicable to 
     the corn acreage base of the producers under this paragraph 
     by more than \1/2\ of the announced acreage limitation 
     percentage.
       ``(E) Other feed grains.--The Secretary shall carry out the 
     program provided for by this paragraph for other feed grains 
     similar to the manner in which the program is implemented for 
     corn.
       ``(F) Participation and production effects.--
     Notwithstanding any other provision of this paragraph, the 
     Secretary shall, to the extent practicable, ensure that the 
     program provided for in this paragraph does not have a 
     significant effect on participation in the program 
     established by this section or total production and is 
     offered in such a manner that the Secretary determines will 
     result in no additional budget outlays. The Secretary 
     shall provide an analysis of the determination of the 
     Secretary to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate.
       ``(4) Administration.--
       ``(A) Protection from weeds and erosion.--The regulations 
     issued by the Secretary under paragraph (2) with respect to 
     acreage required to be devoted to conservation uses shall 
     ensure protection of the acreage from weeds and wind and 
     water erosion.
       ``(B) Conserving crops.--The Secretary may permit, subject 
     to such terms and conditions as the Secretary may prescribe, 
     all or any part of the acreage to be devoted to sweet 
     sorghum, guar, sesame, castor beans, crambe, plantago ovato, 
     triticale, rye, mung beans, milkweed, or other commodity, if 
     the Secretary determines that the production is needed to 
     provide an adequate supply of the commodity, is not likely to 
     increase the cost of the price support program, and will not 
     affect farm income adversely.
       ``(C) Haying and grazing.--
       ``(i) In general.--Except as provided in clause (ii), 
     haying and grazing of reduced acreage, acreage devoted to a 
     conservation use under subsection (c)(1)(E), and acreage 
     diverted from production under a land diversion program 
     established under this subsection shall be permitted, except 
     during any consecutive 5-month period that is established by 
     the State committee established under section 8(b) of the 
     Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590h(b)) for a State. The 5-month period shall be established 
     during the period beginning April 1, and ending October 31, 
     of a year.
       ``(ii) Natural disasters.--In the case of a natural 
     disaster, the Secretary may permit unlimited haying and 
     grazing on the acreage. The Secretary may not exclude 
     irrigated or irrigable acreage not planted to alfalfa when 
     exercising the authority under this clause.
       ``(D) Water storage uses.--
       ``(i) In general.--The regulations issued by the Secretary 
     under paragraph (2) with respect to acreage required to be 
     devoted to conservation uses shall provide that land that has 
     been converted to water storage uses shall be considered to 
     be devoted to conservation uses if the land was devoted to 
     wheat, feed grains, cotton, rice, or oilseeds in at least 3 
     of the immediately preceding 5 crop years. The land shall be 
     considered to be devoted to conservation uses for the period 
     that the land remains in water storage uses, but not to 
     exceed 5 crop years subsequent to the conversion of the land 
     to water storage uses.
       ``(ii) Limitations.--Land converted to water storage uses 
     for the purposes of this subparagraph may not be devoted to 
     any commercial use, including commercial fish production. The 
     water stored on the land may not be ground water. The farm on 
     which the land is located must have been irrigated with 
     ground water during at least 1 of the preceding 5 crop years.
       ``(E) Summer fallow.--In determining the quantity of land 
     to be devoted to conservation uses under an acreage 
     limitation program with respect to land that has been farmed 
     under summer fallow practices, as defined by the Secretary, 
     the Secretary shall consider the effects of soil erosion and 
     such other factors as the Secretary considers appropriate.
       ``(5) Land diversion payments.--
       ``(A) In general.--The Secretary may make land diversion 
     payments to producers of feed grains, whether or not an 
     acreage limitation program for feed grains is in effect, if 
     the Secretary determines that the land diversion payments are 
     necessary to assist in adjusting the total national acreage 
     of feed grains to desirable goals. The land diversion 
     payments shall be made to producers who, to the extent 
     prescribed by the Secretary, devote to approved conservation 
     uses an acreage of cropland on the farm in accordance with 
     land diversion contracts entered into by the Secretary with 
     the producers.
       ``(B) Amounts.--The amounts payable to producers under land 
     diversion contracts may be determined through the submission 
     of bids for the contracts by producers in such manner as the 
     Secretary may prescribe or through such other means as the 
     Secretary determines appropriate. In determining the 
     acceptability of contract offers, the Secretary shall take 
     into consideration the extent of the diversion to be 
     undertaken by the producers and the productivity of the 
     acreage diverted.
       ``(C) Limitation on diverted acreage.--The Secretary shall 
     limit the total acreage to be diverted under agreements in 
     any county or local community so as not to affect adversely 
     the economy of the county or local community.
       ``(6) Conservation practices.--
       ``(A) Wildlife food plots or habitat.--The reduced acreage 
     and additional diverted 

[[Page S605]]
     acreage may be devoted to wildlife food plots or wildlife habitat in 
     conformity with standards established by the Secretary in 
     consultation with wildlife agencies. The Secretary may pay an 
     appropriate share of the cost of practices designed to carry 
     out this subparagraph.
       ``(B) Soil and water conservation practices.--The Secretary 
     may pay an appropriate share of the cost of approved soil and 
     water conservation practices (including practices that may be 
     effective for a number of years) established by the producers 
     on a farm on acreage required to be devoted to conservation 
     uses or on additional diverted acreage.
       ``(C) Public accessibility.--The Secretary may provide for 
     an additional payment on the acreage in an amount determined 
     by the Secretary to be appropriate in relation to the benefit 
     to the general public if the producers on a farm agree to 
     permit, without other compensation, access to all or such 
     portion of the farm, as the Secretary may prescribe by the 
     general public, for hunting, trapping, fishing, and hiking, 
     subject to applicable Federal and State regulations.
       ``(7) Participation agreements.--
       ``(A) In general.--Producers on a farm desiring to 
     participate in the program conducted under this subsection 
     shall execute an agreement with the Secretary providing for 
     the participation with respect to a crop year not later than 
     such date as the Secretary may prescribe.
       ``(B) Modification or termination.--The Secretary may, by 
     mutual agreement with producers on a farm, modify or 
     terminate any such agreement if the Secretary determines the 
     action necessary because of an emergency created by drought 
     or other disaster or to prevent or alleviate a shortage in 
     the supply of agricultural commodities. The Secretary may 
     modify the agreement under this subparagraph for the purpose 
     of alleviating a shortage in the supply of agricultural 
     commodities only if there has been a significant change in 
     the estimated stocks of the commodity since the Secretary 
     announced the final terms and conditions of the program for 
     the crop of feed grains.
       ``(8) Special oats plantings.--In the case of a crop year 
     for which the Secretary determines that projected domestic 
     production of oats will not fulfill the projected domestic 
     demand for oats, notwithstanding paragraphs (1) through (7), 
     the Secretary--
       ``(A) may provide that any reduced acreage may be planted 
     to oats for harvest;
       ``(B) may make program benefits (including loans, 
     purchases, and payments) available under the annual program 
     for oats under this section available to producers with 
     respect to acreage planted to oats under this paragraph; and
       ``(C) shall not make program benefits other than the 
     benefits specified in subparagraph (B) available to producers 
     with respect to acreage planted to oats under this paragraph.
       ``(f) Inventory Reduction Payments.--
       ``(1) In general.--The Secretary may make payments 
     available to producers on a farm who meet the requirements of 
     this subsection.
       ``(2) Form.--The payments may be made in the form of 
     marketing certificates.
       ``(3) Payments.--Payments under this subsection shall be 
     determined in the same manner as provided in subsection (b).
       ``(4) Eligibility.--The producers on a farm shall be 
     eligible to receive a payment under this subsection for a 
     crop if the producers--
       ``(A) agree to forgo obtaining a loan or purchase agreement 
     under subsection (a);
       ``(B) agree to forgo receiving payments under subsection 
     (c);
       ``(C) do not plant feed grains for harvest in excess of the 
     crop acreage base reduced by \1/2\ of any acreage required to 
     be diverted from production under subsection (e); and
       ``(D) otherwise comply with this section.
       ``(g) Pilot Voluntary Production Limitation Program.--
       ``(1) In general.--Effective for each of the 1996 through 
     2002 crops, if a feed grain acreage limitation program or a 
     land diversion program is announced under subsection (e) for 
     a crop, the Secretary may carry out a pilot program in at 
     least 15 counties in at least 2 States where producers 
     express an interest in participating in the pilot program. 
     Under the pilot program, the producers on a farm shall be 
     considered to have met the requirements of the acreage 
     limitation or land diversion program if the producers meet 
     the requirements of the voluntary production limitation 
     program established under this subsection.
       ``(2) Limitation on marketing.--To comply with the 
     voluntary production limitation program, the producers on a 
     farm must agree not to market, barter, donate, or use on the 
     farm (including use as feed for livestock) in a marketing 
     year a quantity of feed grains in excess of the feed grain 
     production limitation quantity for the farm for the marketing 
     year.
       ``(3) Production limitation quantity.--For purposes of this 
     subsection, the production limitation quantity for a farm for 
     a marketing year for a crop shall equal the product obtained 
     by multiplying--
       ``(A) the acreage permitted to be planted to feed grains 
     under the acreage reduction program or land diversion program 
     in effect for the crop for the farm; and
       ``(B) the greater of--
       ``(i) the farm program payment yield for the farm; and
       ``(ii) the average of the yield per harvested acre for feed 
     grains for the farm for each of the 5 crop years immediately 
     preceding the crop year during which the producers first 
     participate in the program established under this subsection, 
     excluding the crop years with the highest and lowest yield 
     per harvested acre and any crop year in which the commodity 
     was not planted on the farm.
       ``(4) Terms and conditions.--Producers on a farm who elect 
     to participate in the program established under this 
     subsection for a crop of feed grains shall--
       ``(A) enter into an agreement with the Secretary providing 
     that the producers shall comply with the program for the 
     crop;
       ``(B) not plant program commodities for harvest in a 
     quantity in excess of the sum of the crop acreage bases for 
     the farm; and
       ``(C) be considered to have complied with the terms and 
     conditions of the feed grain acreage reduction program or 
     land diversion program for the crop, even though the acreage 
     planted to feed grains on the farm exceeds the permitted 
     acreage provided under the acreage reduction or land 
     diversion program.
       ``(5) Excess production.--
       ``(A) In general.--Any quantity of feed grains produced in 
     a crop year on a farm in excess of the production limitation 
     quantity for the farm may be stored by the producers for a 
     period of not to exceed 5 marketing years and may be used 
     only in accordance with this paragraph.
       ``(B) Marketing in subsequent year.--
       ``(i) Participants in program.--Producers on a farm who are 
     participating in the program established under this 
     subsection may market, barter, or use a quantity of the 
     excess feed grains referred to in subparagraph (A) equal to 
     the difference between the production limitation quantity for 
     the farm for the crop year subsequent to the crop year in 
     which the excess feed grains are produced less the quantity 
     of feed grains produced on the farm during the crop year.
       ``(ii) Participants in acreage reduction program.--
     Producers on a farm who are participating in the program 
     established under this subsection may market, barter, or use 
     a quantity of the excess feed grains referred to in 
     subparagraph (A) in an amount that reflects the quantity of 
     feed grains that would be expected to be produced on acreage 
     that the producers agree to devote to approved conservation 
     uses (in excess of any acreage reduction or land diversion 
     requirements) during a crop year, as determined by the 
     Secretary.
       ``(6) Duties of secretary.--In carrying out the pilot 
     program established under this subsection, the Secretary--
       ``(A) shall issue such regulations as are necessary to 
     carry out the program;
       ``(B) may establish increased acreage reduction or land 
     diversion requirements with respect to producers who have had 
     excess feed grain production in order to allow the producers 
     to market, barter, or use the production in subsequent years;
       ``(C) shall take appropriate measures designed to prevent 
     the circumvention of the program established under this 
     subsection, including the imposition of penalties;
       ``(D) may require producers who participate in the program 
     for a crop, but who fail to comply with the terms and 
     conditions of the program, to refund all or a part of any 
     deficiency payments received with respect to the crop;
       ``(E) may require the forfeiture to the Commodity Credit 
     Corporation of any feed grains that are produced in excess of 
     the production limitation quantity and that are not marketed, 
     bartered, or used within 5 marketing years; and
       ``(F) shall ensure equitable treatment for producers who 
     participate in the pilot program if the Secretary allows 
     increases (based on actual production levels) in the 
     determination of farm program payment yields for feed grains 
     for the farm.
       ``(7) Report.--
       ``(A) In general.--The Comptroller General shall prepare a 
     report that evaluates the pilot program carried out under 
     this subsection.
       ``(B) Submission.--The Comptroller General shall submit a 
     copy of the report required by subparagraph (A) to the 
     Committee on Agriculture of the House of Representatives, the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, and the Secretary.
       ``(h) Equitable Relief.--
       ``(1) Loans, purchases, and payments.--If the failure of a 
     producer to comply fully with the terms and conditions of the 
     program conducted under this section precludes the making of 
     loans, purchases, and payments, the Secretary may, 
     notwithstanding the failure, make the loans, purchases, and 
     payments in such amounts as the Secretary determines are 
     equitable in relation to the seriousness of the failure. The 
     Secretary may consider whether the producer made a good faith 
     effort to comply fully with the terms and conditions of the 
     program in determining whether equitable relief is warranted 
     under this paragraph.
       ``(2) Deadlines and program requirements.--The Secretary 
     may authorize the county and State committees established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
     deadlines and other program requirements in cases in which 
     lateness or failure to meet the other requirements does not 
     affect adversely the operation of the program. 
     
[[Page S606]]

       ``(i) Regulations.--The Secretary may issue such 
     regulations as the Secretary determines necessary to carry 
     out this section.
       ``(j) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(k) Assignment of Payments.--Section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
     shall apply to payments made under this section.
       ``(l) Sharing of Payments.--The Secretary shall provide for 
     the sharing of payments made under this section for any farm 
     among the producers on the farm on a fair and equitable 
     basis.
       ``(m) Tenants and Sharecroppers.--In carrying out this 
     section, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(n) Cross-Compliance.--
       ``(1) In general.--Compliance on a farm with the terms and 
     conditions of any other commodity program, or compliance with 
     crop acreage base requirements for any other commodity, may 
     not be required as a condition of eligibility for loans, 
     purchases, or payments under this section.
       ``(2) Compliance on other farms.--The Secretary may not 
     require producers on a farm, as a condition of eligibility 
     for loans, purchases, or payments under this section for the 
     farm, to comply with the terms and conditions of the feed 
     grains program with respect to any other farm operated by the 
     producers.
       ``(o) Public Comment on Feed Grains Program.--
       ``(1) In general.--To ensure that producers and consumers 
     of feed grains are provided with reasonable opportunity to 
     comment on the annual program determinations concerning the 
     price support and acreage reduction program for each of the 
     1997 through 2002 crops of feed grains, the Secretary shall 
     request public comment regarding the feed grains program in 
     accordance with this subsection.
       ``(2) Options.--Not less than 60 days before the program is 
     announced for a crop of feed grains under this section, the 
     Secretary shall propose for public comment various program 
     options for the crop of feed grains.
       ``(3) Analyses.--Each option proposed by the Secretary 
     shall be accompanied by an analysis that includes the 
     estimated planted acreage, production, domestic and export 
     use, ending stocks, season average producer price, program 
     participation rate, and cost to the Federal Government that 
     would likely result from the option.
       ``(4) Estimates.--In announcing the program for a crop of 
     feed grains under this section, the Secretary shall include 
     an estimate of the planted acreage, production, domestic and 
     export use, ending stocks, season average producer price, 
     program participation rate, and cost to the Federal 
     Government that is expected to result from the program as 
     announced.
       ``(p) Malting Barley.--
       ``(1) Assessment required.--To help offset costs associated 
     with deficiency payments made available under this section to 
     producers of barley, the Secretary shall provide for an 
     assessment for each of the 1996 through 2002 crop years to be 
     levied on any producer of malting barley produced on a farm 
     that is enrolled for the crop year in the production 
     adjustment program under this section. The Secretary shall 
     establish the assessment at not more than 5 percent of the 
     value of the malting barley produced on program payment acres 
     on the farm during each of the 1996 through 2002 crop years. 
     The production per acre on which the assessment is based 
     shall not be greater than the farm program payment yield.
       ``(2) Value of malting barley.--The Secretary may establish 
     the value of the malting barley at the lesser of the State or 
     national weighted average market price received by producers 
     of malting barley for the first 5 months of the marketing 
     year. In calculating the State or national weighted average 
     market price, the Secretary may exclude the value of malting 
     barley that is contracted for sale by producers prior to 
     planting.
       ``(3) Exception to assessment.--In a county where malting 
     barley is produced, participating barley producers may 
     certify to the Secretary prior to computation of final 
     deficiency payments that part or all of the production of the 
     producer was (or will be) sold or used for nonmalting 
     purposes. The portion certified as sold or used for 
     nonmalting purposes shall not be subject to the assessment. 
     The Secretary may require producers to provide to the 
     Secretary such documentation as the Secretary considers 
     appropriate to carry out this paragraph.
       ``(q) Price Support for High-Moisture Feed Grains.--
       ``(1) Recourse loans.--Notwithstanding any other provision 
     of law, effective for each of the 1996 through 2002 crops of 
     feed grains, the Secretary (through the Commodity Credit 
     Corporation) shall make available recourse loans, as 
     determined by the Secretary, to producers on a farm who--
       ``(A) normally harvest all or a portion of the crop of feed 
     grains of the producers with a moisture content in excess of 
     Commodity Credit Corporation standards for loans made by the 
     Secretary under paragraphs (1) and (6) of subsection (a) 
     (referred to in this section as `high-moisture');
       ``(B)(i) present certified scale tickets from an inspected, 
     certified commercial scale, including licensed warehouses, 
     feedlots, feed mills, distilleries, or other similar entities 
     approved by the Secretary, pursuant to regulations issued by 
     the Secretary; or
       ``(ii) present field or other physical measurements of the 
     standing or stored feed grain crop in regions of the country, 
     as determined by the Secretary, that do not have certified 
     commercial scales from which certified scale tickets may be 
     obtained within reasonable proximity of harvest operation;
       ``(C) certify that the producers were the owners of the 
     feed grain at the time of delivery to, and that the quantity 
     to be placed under loan was harvested on the farm and 
     delivered to, a feedlot, feed mill, or commercial or on-farm 
     high-moisture storage facility, or to the facilities 
     maintained by the users of the high-moisture feed grain;
       ``(D) comply with deadlines established by the Secretary 
     for harvesting the feed grain and submit applications for 
     loans within deadlines established by the Secretary; and
       ``(E) participate in an acreage limitation program for the 
     crop of feed grains established by the Secretary.
       ``(2) Eligibility of acquired feed grains.--The loans shall 
     be made on a quantity of feed grains of the same crop 
     acquired by the producers on a farm equivalent to a quantity 
     determined by multiplying--
       ``(A) the acreage of the feed grain in a high-moisture 
     state harvested on the farm of the producer; and
       ``(B) the lower of the farm program payment yield or the 
     actual yield on a field, as determined by the Secretary, that 
     is similar to the field from which the high-moisture feed 
     grain was obtained.
       ``(r) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of feed grains.''.

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

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

     SEC. 203. RECOURSE LOAN PROGRAM FOR SILAGE.

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

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

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

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

       ``(a) Loans.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall, on presentation of warehouse 
     receipts or other acceptable evidence of title, as determined 
     by the Secretary, reflecting accrued storage charges of not 
     more than 60 days, make available for each of the 1996 
     through 2002 crops of upland cotton to producers on a farm 
     nonrecourse loans for upland cotton produced on the farm for 
     a term of 10 months from the first day of the month in which 
     the loan is made at such loan level, per pound, as will 
     reflect for the base quality of upland cotton, as determined 
     by the Secretary, at an average location in the United States 
     a level that is not less than the lesser of--
       ``(A) 85 percent of the average price (weighted by market 
     and month) of the base quality of cotton as quoted in the 
     designated United States spot markets during 3 years of the 
     5-year period ending July 31 of the year in which the loan 
     level is announced, excluding the year in which the average 
     price was the highest and the year in which the average price 
     was the lowest in the period; or
       ``(B) 90 percent of the average price, for the 15-week 
     period beginning July 1 of the year in which the loan level 
     is announced, of the 5 lowest-priced growths of the growths 
     quoted for Middling 1\3/32\-inch cotton C.I.F. Northern 
     Europe (adjusted downward by the average difference during 
     the period April 15 through October 15 of the year in which 
     the loan is announced between the average Northern European 
     price quotation of the quality of cotton and the market 
     quotations in the designated United States spot markets for 
     the base quality of upland cotton), as determined by the 
     Secretary.
       ``(2) Adjustments to loan level.--
       ``(A) Limitation on decrease in loan level.--The loan level 
     for any crop determined under paragraph (1) may not be 
     reduced by more than 5 percent from the level determined for 
     the preceding crop, and may not be reduced below 50 cents per 
     pound.
       ``(B) Limitation on increase in loan level.--If for any 
     crop the average Northern European price determined under 
     paragraph (1)(B) is less than the average United States spot 
     market price determined under paragraph (1)(A), the Secretary 
     may increase the loan level to such level as the Secretary 
     may consider appropriate, not in excess of the average United 
     States spot market price determined under paragraph (1)(A).
       ``(3) Announcement of loan level.--The loan level for any 
     crop of upland cotton shall be determined and announced by 
     the Secretary not later than November 1 of the calendar year 
     preceding the marketing year for which the loan is to be 
     effective or, in the case of the 1996 crop, as soon as 
     practicable after the date of enactment of the Agricultural 
     Competitiveness Act of 1995. The loan 

[[Page S607]]
     level for a crop shall not be changed after announcement.
       ``(4) Extension of loan period.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     nonrecourse loans provided for in this section shall, on 
     request of the producers on a farm during the 10th month of 
     the loan period for the cotton, be made available for an 
     additional term of 8 months.
       ``(B) Limitation.--A request to extend the loan period 
     shall not be approved in any month in which the average price 
     of the base quality of upland cotton, as determined by the 
     Secretary, in the designated spot markets for the preceding 
     month exceeds 130 percent of the average price of the base 
     quality of cotton in the designated United States spot 
     markets for the preceding 36-month period.
       ``(5) Marketing loans.--
       ``(A) In general.--If the Secretary determines that the 
     prevailing world market price for upland cotton (adjusted to 
     United States quality and location) is below the loan level 
     determined under paragraphs (1) through (4), to make United 
     States upland cotton competitive in world markets, the 
     Secretary shall permit the producers on a farm to repay a 
     loan made for any crop at--
       ``(i) a level that is the lesser of--

       ``(I) the loan level determined for the crop; and
       ``(II) the greater of--

       ``(aa) 70 percent of the loan level determined for the 
     crop; and
       ``(bb) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location), as 
     determined by the Secretary; or
       ``(ii) such other level (not in excess of the loan level 
     determined for the crop nor less than 70 percent of the loan 
     level) that the Secretary determines will--

       ``(I) minimize potential loan forfeitures;
       ``(II) minimize the accumulation of upland cotton stocks by 
     the Federal Government;
       ``(III) minimize the cost incurred by the Federal 
     Government in storing upland cotton; and

       ``(IV) allow upland cotton produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally.

       ``(B) First handler marketing certificates.--
       ``(i) In general.--During the period beginning August 1, 
     1996, and ending July 31, 2003, if a program carried out 
     under subparagraph (A) or subsection (b) fails to make United 
     States upland cotton fully competitive in world markets and 
     the prevailing world market price of upland cotton (adjusted 
     to United States quality and location), as determined by the 
     Secretary, is below the current loan repayment rate for 
     upland cotton determined under subparagraph (A), to make 
     United States upland cotton competitive in world markets and 
     to maintain and expand domestic consumption and exports of 
     upland cotton produced in the United States, the Secretary 
     shall provide for the issuance of marketing certificates or 
     cash payments in accordance with this subparagraph.
       ``(ii) Payments.--The Commodity Credit Corporation, under 
     such regulations as the Secretary may prescribe, shall make 
     payments, through the issuance of marketing certificates or 
     cash payments, to first handlers of cotton (who shall be 
     persons regularly engaged in buying or selling upland cotton) 
     who have entered into an agreement with the Commodity Credit 
     Corporation to participate in the program established under 
     this subparagraph. The payments shall be made in such 
     monetary amounts and subject to such terms and conditions as 
     the Secretary determines will make upland cotton produced in 
     the United States available at competitive prices, consistent 
     with the purposes of this subparagraph.
       ``(iii) Value.--The value of each certificate or cash 
     payment issued under clause (ii) shall be based on the 
     difference between--

       ``(I) the loan repayment rate for upland cotton; and
       ``(II) the prevailing world market price of upland cotton 
     (adjusted to United States quality and location), as 
     determined by the Secretary.

       ``(iv) Redemption, marketing, or exchange.--The Commodity 
     Credit Corporation, under regulations prescribed by the 
     Secretary, may assist any person receiving marketing 
     certificates under this subparagraph in the redemption of the 
     certificates for cash, or marketing or exchange of the 
     certificates for agricultural commodities or products owned 
     by the Commodity Credit Corporation, at such times, in such 
     manner, and at such price levels as the Secretary determines 
     will best effectuate the purposes of the program established 
     under this subparagraph. Any price restrictions that may 
     otherwise apply to the disposition of agricultural 
     commodities by the Commodity Credit Corporation shall not 
     apply to the redemption of certificates under this 
     subparagraph.
       ``(v) Designation of commodities and products; charges.--
     Insofar as practicable, the Secretary shall permit owners of 
     certificates to designate the commodities and the products of 
     the commodities, including storage sites of the commodities 
     and products, that the owners would prefer to receive in 
     exchange for certificates. If any certificate is not 
     presented for redemption, marketing, or exchange within a 
     reasonable number of days after the issuance of the 
     certificate (as determined by the Secretary), the reasonable 
     costs of storage and other carrying charges, as determined by 
     the Secretary, shall be deducted from the value of the 
     certificate for the period beginning after the reasonable 
     number of days and ending on the date of the presentation of 
     the certificate to the Commodity Credit Corporation.
       ``(vi) Displacement.--The Secretary shall take such 
     measures as may be necessary to prevent the marketing or 
     exchange of agricultural commodities and products for 
     certificates under this subsection from adversely affecting 
     the income of producers of the commodities or products.
       ``(vii) Transfers.--Under regulations prescribed by the 
     Secretary, certificates issued to cotton handlers under this 
     subparagraph may be transferred to other handlers and persons 
     approved by the Secretary.
       ``(C) Prevailing world market price.--
       ``(i) In general.--The Secretary shall prescribe by 
     regulation--

       ``(I) a formula to determine the prevailing world market 
     price for upland cotton (adjusted to United States quality 
     and location); and
       ``(II) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for upland 
     cotton (adjusted to United States quality and location).

       ``(ii) Use.--The prevailing world market price for upland 
     cotton (adjusted to United States quality and location) 
     established under this subparagraph shall be used under 
     subparagraphs (A), (B), and (E).
       ``(D) Adjustment of prevailing world market price.--
       ``(i) In general.--During the period beginning August 1, 
     1996, and ending July 31, 2003, the prevailing world market 
     price for upland cotton (adjusted to United States quality 
     and location) established under subparagraph (C) shall be 
     further adjusted if--

       ``(I) the adjusted prevailing world market price is less 
     than 115 percent of the current crop year loan level for the 
     base quality of upland cotton, as determined by the 
     Secretary; and
       ``(II) the Friday through Thursday average price for the 
     lowest-priced United States growth as quoted for Middling 
     1\3/32\-inch cotton delivered C.I.F. Northern Europe is 
     greater than the Friday through Thursday average price of the 
     5 lowest-priced growths of upland cotton, as quoted for 
     Middling 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe (referred to in this subsection as the `Northern 
     Europe price').

       ``(ii) Further adjustment.--Except as provided in clause 
     (iii), the adjusted prevailing world market price shall be 
     further adjusted on the basis of some or all of the following 
     data, as available:

       ``(I) The United States share of world exports.
       ``(II) The current level of cotton export sales and cotton 
     export shipments.
       ``(III) Other data determined by the Secretary to be 
     relevant in establishing an accurate prevailing world market 
     price for upland cotton (adjusted to United States quality 
     and location).

       ``(iii) Limitation on further adjustment.--The adjustment 
     under clause (ii) may not exceed the difference between--

       ``(I) the Friday through Thursday average price for the 
     lowest-priced United States growth as quoted for Middling 
     1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
       ``(II) the Northern Europe price.

       ``(E) Cotton user marketing certificates.--
       ``(i) Issuance.--Subject to clause (iv), during the period 
     beginning August 1, 1996, and ending July 31, 2003, the 
     Secretary shall issue marketing certificates or cash payments 
     to domestic users and exporters for documented purchases by 
     domestic users and sales for export by exporters made in the 
     week following a consecutive 4-week period in which--

       ``(I) the Friday through Thursday average price for the 
     lowest-priced United States growth, as quoted for Middling 
     1\3/32\-inch cotton delivered C.I.F. Northern Europe exceeds 
     the Northern Europe price by more than 1.25 cents per pound; 
     and
       ``(II) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location), established 
     under subparagraph (C), does not exceed 130 percent of the 
     current crop year loan level for the base quality of upland 
     cotton, as determined by the Secretary.

       ``(ii) Value.--The value of the marketing certificates or 
     cash payments shall be based on the amount of the difference 
     (reduced by 1.25 cents per pound) in the prices during the 
     4th week of the consecutive 4-week period multiplied by the 
     quantity of upland cotton included in the documented sales.
       ``(iii) Administration.--Clauses (iv) through (vii) of 
     subparagraph (B) shall apply to marketing certificates issued 
     under this subparagraph. Any such certificates may be 
     transferred to other persons in accordance with regulations 
     issued by the Secretary.
       ``(iv) Exception.--The Secretary shall not issue marketing 
     certificates or cash payments under clause (i) if, for the 
     immediately preceding consecutive 10-week period, the Friday 
     through Thursday average price for the lowest priced United 
     States growth, as quoted for Middling 1\3/32\-inch cotton, 
     delivered C.I.F. Northern Europe, adjusted for the value of 
     any certificate issued under this subparagraph, exceeds the 
     Northern Europe price by more than 1.25 cents per pound.
       ``(F) Special import quota.--
     
[[Page S608]]

       ``(i) In general.--The President shall carry out an import 
     quota program that shall provide that, during the period 
     beginning August 1996 and ending July 31, 2003, whenever the 
     Secretary determines and announces that for any consecutive 
     10-week period, the Friday through Thursday average price for 
     the lowest-priced United States growth, as quoted for 
     Middling 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe, adjusted for the value of any certificates issued 
     under subparagraph (E), exceeds the Northern Europe price by 
     more than 1.25 cents per pound, there shall immediately be in 
     effect a special import quota.
       ``(ii) Quantity.--The quota shall be equal to the 
     consumption of upland cotton for 1 week by domestic mills at 
     the seasonally adjusted average rate of the most recent 3 
     months for which data are available.
       ``(iii) Application.--The quota shall apply to upland 
     cotton purchased not later than 90 days after the date of the 
     announcement of the Secretary under clause (i) and entered 
     into the United States not later than 180 days after the 
     date.
       ``(iv) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by clause 
     (i), except that a special quota period may not be 
     established under this paragraph if a quota period has been 
     established under subsection (n).
       ``(v) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--

       ``(I) section 213(d) of the Caribbean Basin Economic 
     Recovery Act (19 U.S.C. 2703(d));
       ``(II) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       ``(III) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       ``(IV) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule of the United States (19 U.S.C. 1202 note).

       ``(vi) Definition.--In this subparagraph, the term `special 
     import quota' means a quantity of imports that is not subject 
     to the over-quota tariff rate of a tariff-rate quota.
       ``(6) Recourse loans for seed cotton.--To encourage and 
     assist producers in the orderly ginning and marketing of 
     production of upland cotton by the producers, the Secretary 
     shall make recourse loans available to the producers on seed 
     cotton in accordance with authority vested in the Secretary 
     under the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714 et seq.).
       ``(b) Loan Deficiency Payments.--
       ``(1) In general.--For each of the 1996 through 2002 crops 
     of upland cotton, the Secretary shall make payments (referred 
     to in this section as `loan deficiency payments') available 
     to producers who, although eligible to obtain a loan under 
     subsection (a), agree to forgo obtaining the loan in return 
     for payments under this subsection.
       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan payment rate; and
       ``(B) the quantity of upland cotton the producers on a farm 
     are eligible to place under loan but for which the producers 
     forgo obtaining the loan in return for payments under this 
     subsection.
       ``(3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       ``(A) the loan level determined for the crop under 
     subsection (a); exceeds
       ``(B) the level at which a loan may be repaid under 
     subsection (a).
       ``(4) Marketing certificates.--The Secretary may make up to 
     \1/2\ the amount of a payment under this subsection available 
     in the form of marketing certificates, subject to the terms 
     and conditions provided in subsection (a)(5)(B).
       ``(c) Payments.--
       ``(1) Deficiency payments.--
       ``(A) In general.--The Secretary shall make available to 
     producers payments (referred to in this section as 
     `deficiency payments') for each of the 1996 through 2002 
     crops of upland cotton in an amount computed by multiplying--
       ``(i) the payment rate;
       ``(ii) the payment acres for the crop; and
       ``(iii) the farm program payment yield established for the 
     crop for the farm.
       ``(B) Payment rate.--
       ``(i) In general.--The payment rate for upland cotton shall 
     be the amount by which the established price for the crop of 
     upland cotton exceeds the greater of--

       ``(I) the national average market price received by 
     producers during the calendar year that includes the first 5 
     months of the marketing year for the crop, as determined by 
     the Secretary; and
       ``(II) the loan level determined for the crop.

       ``(ii) Minimum established price.--The established price 
     for upland cotton shall be not less than $0.729 per pound for 
     each of the 1996 through 2002 crops.
       ``(C) Payment acres.--Payment acres for a crop shall be the 
     lesser of--
       ``(i) the number of acres planted to the crop for harvest 
     within the permitted acreage (as defined in subsection 
     (e)(2)(D)(ii)); or
       ``(ii) 75 percent of the crop acreage base for the crop for 
     the farm less the quantity of reduced acreage (as defined in 
     subsection (e)(2)(D)(ii)).
       ``(D) 50/85 program.--
       ``(i) In general.--If an acreage limitation program under 
     subsection (e)(2) is in effect for a crop of upland cotton 
     and the producers on a farm devote a portion of the maximum 
     payment acres of the farm for upland cotton as calculated 
     under subparagraph (C)(ii) equal to more than 15 percent 
     (except as provided in clause (v)) of the upland cotton 
     acreage of the farm for the crop to conservation uses 
     (except as provided in subparagraph (E))--

       ``(I) the portion of the maximum payment acres in excess of 
     15 percent (except as provided in clause (v)) of the acreage 
     devoted to conservation uses (except as provided in 
     subparagraph (E)) shall be considered to be planted to upland 
     cotton for the purpose of determining the acreage on the farm 
     required to be devoted to conservation uses in accordance 
     with subsection (e)(2)(D); and
       ``(II) the producers shall be eligible for payments under 
     this paragraph with respect to the acreage, subject to the 
     compliance of the producers with clause (ii).

       ``(ii) Minimum planting requirement.--To be eligible for 
     payments under clause (i), except as provided in clauses (iv) 
     and (v), the producers on a farm must actually plant upland 
     cotton for harvest on at least 50 percent of the maximum 
     payment acres for cotton for the farm.
       ``(iii) Deficiency payments.--Notwithstanding any other 
     provision of this section, any producers on a farm who devote 
     a portion of the maximum payment acres of the farm for upland 
     cotton to conservation uses (or other uses as provided in 
     subparagraph (E)) under this subparagraph shall receive 
     deficiency payments on the acreage that is considered to be 
     planted to upland cotton and eligible for payments under this 
     subparagraph for the crop at a per-pound rate established by 
     the Secretary, except that the rate may not be established at 
     less than the projected deficiency payment rate for the crop, 
     as determined by the Secretary. The projected payment rate 
     for the crop shall be announced by the Secretary prior to the 
     period during which upland cotton producers may agree to 
     participate in the program for the crop.
       ``(iv) Quarantines.--If a State or local agency has imposed 
     in an area of a State or county a quarantine on the planting 
     of upland cotton for harvest on farms in the area, the State 
     committee established under section 8(b) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) 
     may recommend to the Secretary that payments be made under 
     this paragraph, without regard to the requirement imposed 
     under clause (ii), to producers in the area who were required 
     to forgo the planting of upland cotton for harvest on acreage 
     to alleviate or eliminate the condition requiring the 
     quarantine. If the Secretary determines that the condition 
     exists, the Secretary may make payments under this paragraph 
     to the producers. To be eligible for payments under this 
     clause, the producers must devote the acreage to conservation 
     uses (except as provided in subparagraph (E)).
       ``(v) Prevented planting and reduced yields.--In the case 
     of each of the 1996 through 2002 crops of upland cotton, 
     producers on a farm shall be eligible to receive deficiency 
     payments as provided in clause (iii) without regard to clause 
     (ii) if an acreage limitation program under subsection (e) is 
     in effect for the crop and the producers--

       ``(I)(aa) have been determined by the Secretary (in 
     accordance with section 503(c)) to be prevented from planting 
     the crop, or have incurred a reduced yield for the crop 
     because of a natural disaster; and
       ``(bb) elect to devote a portion of the maximum payment 
     acres for upland cotton (as calculated under subparagraph 
     (C)(ii)) equal to more than 8 percent of the upland cotton 
     acreage, to conservation uses; or
       ``(II) elect to devote a portion of the maximum payment 
     acres for upland cotton (as calculated under subparagraph 
     (C)(ii)) equal to more than 8 percent of the upland cotton 
     acreage, to alternative crops as provided in subparagraph 
     (E).

       ``(vi) Crop acreage and payment yield.--The upland cotton 
     crop acreage base and upland cotton farm program payment 
     yield of the farm shall not be reduced because of the fact 
     that a portion of the permitted acreage for upland cotton for 
     the farm was devoted to conserving uses (except as provided 
     in subparagraph (E)) under this subparagraph.
       ``(vii) Limitation.--Other than as provided in clauses (i) 
     through (vi), payments may not be made under this paragraph 
     for any crop on a greater acreage than the acreage actually 
     planted to upland cotton.
       ``(viii) Conservation use acreage under other programs.--
     Any acreage considered to be planted to upland cotton in 
     accordance with clauses (i) and (vi) may not also be 
     designated as conservation use acreage for the purpose of 
     fulfilling any provisions under any acreage limitation or 
     land diversion program requiring that the producers devote a 
     specified quantity of acreage to conservation uses.
       ``(ix) Black-eyed peas for donation.--The Secretary may 
     permit, under such terms and conditions as will 
     ensure optimum producer participation, all or any part of 
     the acreage required to be devoted to conservation uses as 
     a condition for qualifying for payments under this 
     subparagraph to be devoted to the production of black-eyed 
     peas if--

       ``(I) the producers on a farm agree to donate the harvested 
     peas from the acreage to a food bank, food pantry, or soup 
     kitchen (as defined in paragraphs (3), (4), and (7) of 
     section 110(b) of the Hunger Prevention Act of 1988 (Public 
     Law 100-435; 7 U.S.C. 612c note)) that is approved by the 
     Secretary; and
     
[[Page S609]]

       ``(II) the Secretary finds that the action will not result 
     in the disruption of normal channels of trade.

       ``(E) Alternative crops.--
       ``(i) Industrial and other crops.--The Secretary may 
     permit, subject to such terms and conditions as the Secretary 
     may prescribe, all or any part of acreage otherwise required 
     to be devoted to conservation uses as a condition of 
     qualifying for payments under subparagraph (D) to be devoted 
     to sweet sorghum, guar, castor beans, plantago ovato, 
     triticale, rye, millet, mung beans, commodities for which no 
     substantial domestic production or market exists but that 
     could yield industrial raw material being imported, or likely 
     to be imported, into the United States, or commodities grown 
     for experimental purposes (including kenaf and milkweed), 
     subject to the following sentence. The Secretary may permit 
     the acreage to be devoted to the production only if the 
     Secretary determines that the production is--

       ``(I) not likely to increase the cost of the price support 
     program; and
       ``(II) needed to provide an adequate supply of the 
     commodity, or, in the case of a commodity for which no 
     substantial domestic production or market exists but that 
     could yield industrial raw materials, the production is 
     needed to encourage domestic manufacture of the raw material 
     and could lead to increased industrial use of the raw 
     material to the long-term benefit of United States industry.

       ``(ii) Sesame and crambe.--The Secretary shall permit, 
     subject to such terms and conditions as the Secretary may 
     prescribe, all or any part of acreage otherwise required to 
     be devoted to conservation uses as a condition of qualifying 
     for payments under subparagraph (D) to be devoted to sesame 
     or crambe. In carrying out this clause, if the Secretary 
     determines that sesame or crambe are considered oilseeds 
     under section 205, the Secretary shall provide that, to 
     receive payments under subparagraph (D), the producers shall 
     agree to forgo eligibility to receive a loan under section 
     205 for the crop of sesame or crambe produced on the farm.
       ``(2) Crop insurance requirement.--As a condition of 
     eligibility for upland cotton loans, purchases, and payments, 
     the producers on a farm shall obtain catastrophic risk 
     protection insurance coverage in accordance with section 427.
       ``(d) Payment Yields.--The farm program payment yields for 
     farms for each crop of upland cotton under this section shall 
     be determined under title V.
       ``(e) Acreage Reduction Programs.--
       ``(1) In general.--
       ``(A) Establishment.--Notwithstanding any other provision 
     of this Act, if the Secretary determines that the total 
     supply of upland cotton, in the absence of an acreage 
     limitation program, will be excessive taking into account the 
     need for an adequate carry-over to maintain reasonable and 
     stable supplies and prices and to meet a national emergency, 
     the Secretary may provide for any crop of upland cotton an 
     acreage limitation program as described in paragraph (2).
       ``(B) Agricultural resources conservation program.--In 
     making a determination under subparagraph (A), the Secretary 
     shall take into consideration the number of acres placed in 
     the agricultural resources conservation program established 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3830 et seq.).
       ``(C) Announcements.--
       ``(i) Preliminary announcement.--If the Secretary elects to 
     implement an acreage limitation program for any crop year, 
     the Secretary shall make a preliminary announcement of any 
     such program not later than November 1 of the calendar year 
     preceding the year in which the crop is harvested, except 
     that in the case of the 1996 crop, the Secretary shall 
     announce the program as soon as practicable after the date of 
     enactment of the Agricultural Competitiveness Act of 1995. 
     The announcement shall include, among other information 
     determined necessary by the Secretary, an announcement of the 
     uniform percentage reduction in the upland cotton crop 
     acreage base described in paragraph (2)(A).
       ``(ii) Final announcement.--Not later than January 1 of the 
     calendar year in which the crop is harvested, the Secretary 
     shall make a final announcement of the program. The 
     announcement shall include, among other information 
     determined necessary by the Secretary, an announcement of the 
     uniform percentage reduction in the upland cotton crop 
     described in paragraph (2)(A).
       ``(iii) Optional programs in early planting areas.--The 
     Secretary shall allow producers in early planting areas to 
     elect to participate in the program on the terms of the 
     acreage limitation program--

       ``(I) first announced for the crop under clause (i); or
       ``(II) as subsequently revised under clause (ii);

     if the Secretary determines that the producers may be 
     unfairly disadvantaged by the revision.
       ``(D) Desired carry-over.--The Secretary shall carry out an 
     acreage limitation program described in paragraph (2) for a 
     crop of upland cotton in a manner that will result in a ratio 
     of carry-over to total disappearance of 29\1/2\ percent for 
     the 1996 crop and 29 percent for each of the 1997 through 
     2002 crops, based on the most recent projection of the 
     Secretary of carry-over and total disappearance at the time 
     of announcement of the acreage limitation program. In this 
     subparagraph, the term `total disappearance' means all upland 
     cotton utilization, including total domestic, total export, 
     and total residual disappearance.
       ``(2) Acreage limitation program.--
       ``(A) Uniform percentage reduction.--Except as provided in 
     paragraph (3), if an upland cotton acreage limitation program 
     is announced under paragraph (1), the limitation shall be 
     achieved by applying a uniform percentage reduction (from 0 
     to 25 percent) to the upland cotton crop acreage base for the 
     crop for each upland cotton-producing farm.
       ``(B) Compliance.--Except as provided in section 504, 
     producers who knowingly produce upland cotton in excess of 
     the permitted acreage for upland cotton for the farm, as 
     established in accordance with subparagraph (A), shall be 
     ineligible for upland cotton loans and payments with respect 
     to the farm.
       ``(C) Crop acreage bases.--Upland cotton crop acreage bases 
     for each crop of upland cotton shall be determined under 
     title V.
       ``(D) Acreage devoted to conservation uses.--
       ``(i) In general.--A number of acres on the farm shall be 
     devoted to conservation uses, in accordance with regulations 
     issued by the Secretary.
       ``(ii) Number.--The number shall be determined by 
     multiplying the upland cotton crop acreage base by the 
     percentage reduction required by the Secretary. The number of 
     acres so determined is referred to in this section as 
     `reduced acreage'. The remaining acreage is referred to in 
     this section as `permitted acreage'.
       ``(iii) Adjustment.--Permitted acreage may be adjusted by 
     the Secretary as provided in paragraph (3) and in section 
     504.
       ``(E) Individual farm program acreage.--Except as otherwise 
     provided in subsection (c), the individual farm program 
     acreage shall be the acreage planted on the farm to upland 
     cotton for harvest within the permitted acreage for upland 
     cotton for the farm as established under this paragraph.
       ``(F) Planting designated crops on reduced acreage.--
       ``(i) Definition of designated crop.--In this subparagraph, 
     the term `designated crop' means a crop described in section 
     504(b)(1), excluding any program crop as defined in section 
     502(3).
       ``(ii) Planting designated crops.--Subject to clause (iii), 
     the Secretary may permit producers on a farm to plant a 
     designated crop on not more than \1/2\ of the reduced acreage 
     on the farm.
       ``(iii) Limitations.--If the producers on a farm elect to 
     plant a designated crop on reduced acreage under this 
     subparagraph--

       ``(I) the amount of the deficiency payment that the 
     producers are otherwise eligible to receive under subsection 
     (c) shall be reduced, for each acre (or portion of an acre) 
     that is planted to the designated crop, by an amount equal to 
     the deficiency payment that would be made with respect to a 
     number of acres of the crop that the Secretary considers 
     appropriate, except that if the producers on the farm are 
     participating in a program established for more than 1 
     program crop, the amount of the reduction shall be determined 
     by prorating the reduction based on the acreage planted or 
     considered planted on the farm to all of the program crops; 
     and
       ``(II) the Secretary shall ensure that reductions in 
     deficiency payments under subclause (I) are sufficient to 
     ensure that this subparagraph will result in no additional 
     cost to the Commodity Credit Corporation.

       ``(G) Black-eyed peas for donation.--The Secretary may 
     permit, under such terms and conditions as will ensure 
     optimum producer participation, producers on a farm to plant 
     black-eyed peas on not more than \1/2\ of the reduced acreage 
     on the farm if--
       ``(i) the producers agree to donate the harvested peas from 
     the acreage to a food bank, food pantry, or soup kitchen (as 
     defined in paragraphs (3), (4), and (7) of section 110(b) of 
     the Hunger Prevention Act of 1988 (Public Law 100-435; 7 
     U.S.C. 612c note)) that is approved by the Secretary; and
       ``(ii) the Secretary finds that the action will not result 
     in the disruption of normal channels of trade.
       ``(3) Targeted option payments.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, if the Secretary implements an acreage 
     limitation program with respect to any of the 1996 through 
     2002 crops of upland cotton, the Secretary may make available 
     to producers on a farm who do not receive payments under 
     subsection (c)(1)(D) for the crop on the farm, adjustments in 
     the level of deficiency payments that would otherwise be made 
     available to the producers if the producers exercise the 
     payment options provided in this paragraph.
       ``(B) Payment options.--If the Secretary elects to carry 
     out this paragraph, the Secretary shall make the payment 
     options specified in subparagraphs (C) and (D) available to 
     producers who agree to make adjustments in the quantity of 
     acreage diverted from the production of upland cotton under 
     an acreage limitation program in accordance with this 
     paragraph.
       ``(C) Increased acreage limitation option.--
       ``(i) Increase in established price.--If the Secretary 
     elects to carry out this paragraph, the producers on a farm 
     shall be eligible to receive an increase in the established 
     price for upland cotton in accordance with clause (ii) if the 
     producers agree to an increase in 

[[Page S610]]
     the acreage limitation percentage to be applied to the upland cotton 
     acreage base of the producers above the acreage limitation 
     percentage announced by the Secretary.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who participate in the program under this 
     paragraph, the Secretary shall increase the established price 
     for upland cotton by an amount determined by the Secretary of 
     not less than 0.5 percent, nor more than 1 percent, for each 
     1 percentage point increase in the acreage limitation 
     percentage applied to the upland cotton acreage base of the 
     producers.
       ``(iii) Limitation.--The acreage limitation percentage to 
     be applied to the upland cotton acreage base of the producers 
     shall be increased by not more than 10 percentage points 
     above the acreage limitation percentage announced by the 
     Secretary for the crop or above 25 percent total for the 
     crop.
       ``(iv) Adjustment for underplantings.--In determining the 
     increased acreage limitation percentage that is applied to 
     the upland cotton base of the producers on a farm under this 
     paragraph, the Secretary shall exclude an amount of acreage 
     equal to the average difference between the permitted acreage 
     for upland cotton for the farm of the producers and the 
     acreage actually planted (including acreage devoted to 
     conserving uses under subsection (c)(1)(D)) to upland cotton 
     for harvest during the previous 2 years.
       ``(D) Decreased acreage limitation option.--
       ``(i) Decrease in acreage limitation requirement.--If the 
     Secretary elects to carry out this paragraph, the producers 
     on a farm shall be eligible to decrease the acreage 
     limitation percentage applicable to the upland cotton acreage 
     base of the producers (as announced by the Secretary) if the 
     producers agree to a decrease in the established price for 
     upland cotton in accordance with clause (ii) for the purpose 
     of calculating deficiency payments to be made available to 
     the producers.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who choose the option established under this 
     subparagraph, the Secretary shall decrease the established 
     price for upland cotton by an amount to be determined by the 
     Secretary of not less than 0.5 percent, nor more than 1 
     percent, for each 1 percentage point decrease in the acreage 
     limitation percentage applied to the upland cotton acreage 
     base of the producers.
       ``(iii) Limitation.--The producers on a farm may not choose 
     to decrease the acreage limitation percentage applicable to 
     the upland cotton acreage base of the producers under this 
     paragraph by more than \1/2\ of the announced acreage 
     limitation percentage.
       ``(E) Participation and production effects.--
     Notwithstanding any other provision of this paragraph, the 
     Secretary shall, to the extent practicable, ensure that the 
     program provided for in this paragraph does not have a 
     significant effect on participation in the program 
     established by this section or total production and shall be 
     offered in such a manner that the Secretary determines will 
     result in no additional budget outlays. The Secretary shall 
     provide an analysis of the determination of the Secretary to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate.
       ``(4) Administration.--
       ``(A) Protection from weeds and erosion.--The regulations 
     issued by the Secretary under paragraph (2) with respect to 
     acreage required to be devoted to conservation uses shall 
     ensure protection of the acreage from weeds and wind and 
     water erosion.
       ``(B) Conserving crops.--The Secretary may permit, subject 
     to such terms and conditions as the Secretary may prescribe, 
     all or any part of the acreage to be devoted to sweet 
     sorghum, guar, sesame, castor beans, crambe, plantago ovato, 
     triticale, rye, mung beans, milkweed, or other commodity, if 
     the Secretary determines that the production is needed to 
     provide an adequate supply of the commodities, is not likely 
     to increase the cost of the price support program, and will 
     not affect farm income adversely.
       ``(C) Haying and grazing.--
       ``(i) In general.--Except as provided in clause (ii), 
     haying and grazing of reduced acreage, acreage devoted to a 
     conservation use under subsection (c)(1)(D), and acreage 
     diverted from production under a land diversion program 
     established under this subsection shall be permitted, except 
     during any consecutive 5-month period that is established by 
     the State committee established under section 8(b) of the 
     Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590h(b)) for a State. The 5-month period shall be established 
     during the period beginning April 1, and ending October 31, 
     of a year.
       ``(ii) Natural disasters.--In the case of a natural 
     disaster, the Secretary may permit unlimited haying and 
     grazing on the acreage. The Secretary may not exclude 
     irrigated or irrigable acreage not planted to alfalfa when 
     exercising the authority under this clause.
       ``(D) Water storage uses.--
       ``(i) In general.--The regulations issued by the Secretary 
     under paragraph (2) with respect to acreage required to be 
     devoted to conservation uses shall provide that land that has 
     been converted to water storage uses shall be considered to 
     be devoted to conservation uses if the land was devoted to 
     wheat, feed grains, cotton, rice, or oilseeds in at least 3 
     of the immediately preceding 5 crop years. The land shall 
     be considered to be devoted to conservation uses for the 
     period that the land remains in water storage uses, but 
     not to exceed 5 crop years subsequent to the conversion of 
     the land to water storage uses.
       ``(ii) Limitations.--Land converted to water storage uses 
     for the purposes of this subparagraph may not be devoted to 
     any commercial use, including commercial fish production. The 
     water stored on the land may not be ground water. The farm on 
     which the land is located must have been irrigated with 
     ground water during at least 1 of the preceding 5 crop years.
       ``(5) Land diversion program.--
       ``(A) Payments.--
       ``(i) In general.--The Secretary may make land diversion 
     payments to producers of upland cotton, whether or not an 
     acreage limitation program for upland cotton is in effect, if 
     the Secretary determines that the land diversion payments are 
     necessary to assist in adjusting the total national acreage 
     of upland cotton to desirable goals. The land diversion 
     payments shall be made to producers who, to the extent 
     prescribed by the Secretary, devote to approved conservation 
     uses an acreage of cropland on the farm in accordance with 
     land diversion contracts entered into by the Secretary with 
     the producers.
       ``(ii) Excess carry-over.--If, at the time of final 
     announcement of the acreage limitation program established 
     under this subsection, the Secretary projects that the ratio 
     of carry-over to total disappearance of upland cotton for the 
     crop year is equal to or greater than 40 percent, the 
     Secretary shall offer a paid land diversion program to 
     producers of upland cotton. Payments to producers under the 
     program shall be determined by multiplying--

       ``(I) the payment rate, of not less than 35 cents per pound 
     of cotton, established by the Secretary;
       ``(II) the program payment yield established for the crop 
     for the farm; and
       ``(III) the number of permitted acreage for upland cotton 
     for the farm diverted on the farm.

       ``(B) Bids for contracts.--The amounts payable to producers 
     under land diversion contracts may be determined through the 
     submission of bids for the contracts by producers in such 
     manner as the Secretary may prescribe or through such other 
     means as the Secretary determines appropriate. In determining 
     the acceptability of contract offers, the Secretary shall 
     take into consideration the extent of the diversion to be 
     undertaken by the producers and the productivity of the 
     acreage diverted.
       ``(C) Limitations on diverted acreage.--
       ``(i) Maximum acreage per farm, county, or community.--The 
     Secretary shall limit the total acreage to be diverted under 
     this paragraph--

       ``(I) to not more than 15 percent of the upland cotton crop 
     acreage base for a farm; and
       ``(II) under agreements in any county or local community so 
     as not to affect adversely the economy of the county or local 
     community.

       ``(ii) Lower participation levels.--The Secretary may allow 
     producers to participate in a land diversion program under 
     this paragraph at a level lower than the maximum level 
     announced by the Secretary, at the option of the producer, if 
     the Secretary determines that the lower level will increase 
     participation in the program.
       ``(6) Conservation practices.--
       ``(A) Wildlife food plots or habitat.--The reduced acreage 
     and additional diverted acreage may be devoted to wildlife 
     food plots or wildlife habitat in conformity with standards 
     established by the Secretary in consultation with wildlife 
     agencies. The Secretary may pay an appropriate share of the 
     cost of practices designed to carry out this subparagraph.
       ``(B) Public access.--The Secretary may provide for an 
     additional payment on the acreage in an amount determined by 
     the Secretary to be appropriate in relation to the benefit to 
     the general public if the producers on a farm agree to 
     permit, without other compensation, access to all or such 
     portion of the farm, as the Secretary may prescribe, by 
     the general public, for hunting, trapping, fishing, and 
     hiking, subject to applicable Federal and State 
     regulations.
       ``(7) Participation agreements.--
       ``(A) In general.--Producers on a farm desiring to 
     participate in the program conducted under this subsection 
     shall execute an agreement with the Secretary providing for 
     the participation not later than such date as the Secretary 
     may prescribe.
       ``(B) Modification or termination.--The Secretary may, by 
     mutual agreement with producers on a farm, modify or 
     terminate any such agreement if the Secretary determines the 
     action necessary because of an emergency created by drought 
     or other disaster or to prevent or alleviate a shortage in 
     the supply of agricultural commodities. The Secretary may 
     modify the agreement under this subparagraph for the purpose 
     of alleviating a shortage in the supply of agricultural 
     commodities only if there has been a significant change in 
     the estimated stocks of the commodity since the Secretary 
     announced the final terms and conditions of the program for 
     the crop of upland cotton.
       ``(f) Inventory Reduction Payments.--
     
[[Page S611]]

       ``(1) In general.--For each of the 1996 through 2002 crops 
     of upland cotton, the Secretary may make payments available 
     to producers on a farm who meet the requirements of this 
     subsection.
       ``(2) Form.--The payments may be made in the form of 
     marketing certificates.
       ``(3) Payments.--
       ``(A) In general.--Payments under this subsection shall be 
     determined in the same manner as provided in subsection (b).
       ``(B) Quantity of cotton made available.--The quantity of 
     upland cotton to be made available to the producers on a farm 
     under this subsection shall be equal in value to the payments 
     so determined under this subsection.
       ``(4) Eligibility.--The producers on a farm shall be 
     eligible to receive a payment under this subsection for a 
     crop if the producers--
       ``(A) agree to forgo obtaining a loan under subsection (a);
       ``(B) agree to forgo receiving payments under subsection 
     (c);
       ``(C) do not plant upland cotton for harvest in excess of 
     the crop acreage base reduced by \1/2\ of any acreage 
     required to be diverted from production under subsection (e); 
     and
       ``(D) otherwise comply with this section.
       ``(g) Equitable Relief.--
       ``(1) Loans and payments.--If the failure of a producer to 
     comply fully with the terms and conditions of the program 
     conducted under this section precludes the making of loans 
     and payments, the Secretary may, notwithstanding the failure, 
     make the loans and payments in such amounts as the Secretary 
     determines are equitable in relation to the seriousness of 
     the failure. The Secretary may consider whether the producer 
     made a good faith effort to comply fully with the terms and 
     conditions of the program in determining whether equitable 
     relief is warranted under this paragraph.
       ``(2) Deadlines and program requirements.--The Secretary 
     may authorize the county and State committees established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
     deadlines and other program requirements in cases in which 
     lateness or failure to meet the other requirements does not 
     affect adversely the operation of the program.
       ``(h) Regulations.--The Secretary may issue such 
     regulations as the Secretary determines necessary to carry 
     out this section.
       ``(i) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(j) Assignment of Payments.--Section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
     shall apply to payments made under this section.
       ``(k) Sharing of Payments.--The Secretary shall provide for 
     the sharing of payments made under this section for any farm 
     among the producers on the farm on a fair and equitable 
     basis.
       ``(l) Tenants and Sharecroppers.--In carrying out this 
     section, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(m) Cross-Compliance.--
       ``(1) In general.--Compliance on a farm with the terms and 
     conditions of any other commodity program, or compliance with 
     crop acreage base requirements for any other commodity, may 
     not be required as a condition of eligibility for loans or 
     payments under this section.
       ``(2) Compliance on other farms.--The Secretary may not 
     require producers on a farm, as a condition of eligibility 
     for loans or payments under this section for the farm, to 
     comply with the terms and conditions of the upland cotton 
     program with respect to any other farm operated by the 
     producers.
       ``(n) Limited Global Import Quota.--
       ``(1) Definitions.--In this subsection:
       ``(A) Demand.--The term `demand' means--
       ``(i) the average seasonally adjusted annual rate of 
     domestic mill consumption in the most recent 3 months for 
     which data are available; plus
       ``(ii) the larger of--

       ``(I) average exports of upland cotton during the preceding 
     6 marketing years; or

       ``(II) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.

       ``(B) Limited global import quota.--The term `limited 
     global import quota' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       ``(C) Supply.--The term `supply' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--
       ``(i) the carry-over of upland cotton at the beginning of 
     the marketing year (adjusted to 480-pound bales) in which the 
     quota is established;
       ``(ii) production of the current crop; and
       ``(iii) imports to the latest date available during the 
     marketing year.
       ``(2) Quota.--The President shall carry out an import quota 
     program that shall provide that whenever the Secretary 
     determines and announces that the average price of the base 
     quality of upland cotton, as determined by the Secretary, in 
     the designated spot markets for a month exceeded 130 percent 
     of the average price of the quality of cotton in the markets 
     for the preceding 36 months, notwithstanding any other 
     provision of law, there shall immediately be in effect a 
     limited global import quota subject to the following 
     conditions:
       ``(A) Quantity.--The quantity of the quota shall be equal 
     to 21 days of domestic mill consumption of upland cotton at 
     the seasonally adjusted average rate of the most recent 3 
     months for which data are available.
       ``(B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated as set forth in subparagraph (A) or 
     the quantity required to increase the supply to 130 percent 
     of the demand.
       ``(C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       ``(i) section 213(d) of the Caribbean Basin Economic 
     Recovery Act (19 U.S.C. 2703(d));
       ``(ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       ``(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       ``(iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule of the United States (19 U.S.C. 1202 note).
       ``(3) Quota entry period.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     when a quota is established under this subsection, cotton may 
     be entered under the quota during the 90-day period beginning 
     on the date the quota is established by the Secretary.
       ``(B) No overlap.--Notwithstanding paragraphs (1) and (2), 
     a quota period may not be established that overlaps an 
     existing quota period or a special quota period established 
     under subsection (a)(5)(F).
       ``(o) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of upland cotton.''.

     SEC. 302. EXTRA LONG STAPLE COTTON PROGRAM.

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

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

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

     SEC. 304. MISCELLANEOUS COTTON PROVISIONS.

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

     SEC. 305. SKIPROW PRACTICES.

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

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

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

     SEC. 307. COTTONSEED AND COTTONSEED OIL.

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

     SEC. 308. COTTON CLASSIFICATION SERVICES.

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

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

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

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

       ``(a) Loans and Purchases.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the Secretary shall make available to producers 
     on a farm nonrecourse loans and purchases for each of the 
     1996 through 2002 crops of rice produced on the farm at a 
     level that is not less than the greater of--
       ``(A) 85 percent of the simple average price received by 
     producers, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     rice, excluding the year in which the average price was the 
     highest and the year in which the average price was the 
     lowest in the period; or
       ``(B) $6.50 per hundredweight.
       ``(2) Maximum reduction.--The loan level for any crop of 
     rice determined under paragraph (1) may not be reduced by 
     more than 5 percent from the level determined for the 
     preceding crop.
       ``(3) Announcement of loan level and established price.--
     The loan and purchase level and the established price for 
     each of the 1996 through 2002 crops of rice shall be 
     announced not later than January 31 of each calendar year for 
     the crop harvested in the calendar year or, in the case of 
     the 1996 crop, as soon as practicable after the date of 
     enactment of the Farm Commodities Act of 1995.
     
[[Page S612]]

       ``(4) Term.--A loan made under this subsection shall have a 
     term of not more than 9 months beginning after the month in 
     which the application for the loan is made.
       ``(5) Marketing loans.--
       ``(A) In general.--To ensure that a competitive market 
     position is maintained for rice, the Secretary shall permit 
     the producers on a farm to repay a loan made under paragraph 
     (1) for a crop at a level that is the lesser of--
       ``(i) the loan level determined for the crop; or
       ``(ii) the greater of--

       ``(I) 70 percent of the loan level determined for the crop; 
     or
       ``(II) the prevailing world market price for rice, as 
     determined by the Secretary.

       ``(B) Prevailing world market price.--The Secretary shall 
     prescribe by regulation--
       ``(i) a formula to determine the prevailing world market 
     price for rice that does not take into account any price for 
     the sale of rice produced in the United States; and
       ``(ii) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for rice.
       ``(C) Producer purchase of marketing certificates.--
       ``(i) In general.--As a condition of permitting the 
     producers on a farm to repay a loan as provided in 
     subparagraph (A), the Secretary may require the producers to 
     purchase marketing certificates equal in value to an amount 
     that does not exceed \1/2\ the difference, as determined by 
     the Secretary, between the amount of the loan obtained by the 
     producers and the amount of the loan repayment.
       ``(ii) Redemption for rice or cash.--The certificates shall 
     be redeemable for agricultural commodities owned by the 
     Commodity Credit Corporation valued at the prevailing market 
     price, as determined by the Secretary, or for cash, under 
     such terms and conditions as the Secretary may prescribe.
       ``(iii) Redemption, marketing, or exchange.--The Commodity 
     Credit Corporation, under regulations prescribed by the 
     Secretary, shall assist any person receiving marketing 
     certificates under this subparagraph in the redemption or 
     marketing or exchange of the certificates at such times, in 
     such manner, and at such price levels as the Secretary 
     determines will best effectuate the purposes of the program 
     established under this section.
       ``(iv) Charges.--If any such certificate is not presented 
     for redemption or marketing within a reasonable number of 
     days after issuance, as determined by the Secretary, 
     reasonable costs of storage and other carrying charges, as 
     determined by the Secretary, shall be deducted from the value 
     of the certificate for the period beginning after the 
     reasonable number of days and ending on the date of the 
     presentation of the certificate to the Commodity Credit 
     Corporation.
       ``(v) Designation of commodities and products.--Insofar as 
     practicable, the Secretary shall permit owners of 
     certificates to designate the commodities and the products of 
     commodities, including storage sites of the commodities and 
     products, that the owners would prefer to receive in exchange 
     for certificates.
       ``(vi) Sales price restrictions.--Notwithstanding any other 
     provision of law, any price restrictions that may otherwise 
     apply to the disposition of agricultural commodities by the 
     Commodity Credit Corporation shall not apply to the 
     redemption of certificates under this subparagraph.
       ``(vii) Displacement.--The Secretary shall take such 
     measures as may be necessary to prevent the marketing or 
     exchange of agricultural commodities and the products of the 
     commodities for certificates under this subparagraph from 
     adversely affecting the income of producers of the 
     commodities or products.
       ``(viii) Transfers.--Under regulations prescribed by the 
     Secretary, certificates issued under this subparagraph may be 
     transferred to other persons approved by the Secretary.
       ``(D) Certificates to maintain competitiveness.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, whenever, during the period beginning August 1, 1996, 
     and ending July 31, 2003, the prevailing world market price 
     for a class of rice (adjusted to United States quality and 
     location), as determined by the Secretary, is below the 
     current loan repayment rate for that class of rice, to make 
     United States rice competitive in world markets and to 
     maintain and expand exports of rice produced in the United 
     States, the Commodity Credit Corporation shall make payments, 
     through the issuance of marketing certificates, to persons 
     who have entered into an agreement with the Commodity Credit 
     Corporation to participate in the program established under 
     this subparagraph. The payments shall be made in such 
     monetary amounts and subject to such terms and conditions as 
     the Secretary determines will make rice produced in the 
     United States available at competitive prices consistent with 
     the purposes of this subparagraph.
       ``(ii) Value.--The value of each certificate issued under 
     this subparagraph shall be based on the difference between--

       ``(I) the loan repayment rate for the class of rice; and
       ``(II) the prevailing world market price for the class of 
     rice, as determined by the Secretary.

       ``(iii) Terms and conditions of certificates.--Marketing 
     certificates issued under this subparagraph shall be subject 
     to the same terms and conditions as certificates issued under 
     subparagraph (C).
       ``(6) Simple average price.--For purposes of this section, 
     the simple average price received by producers for the 
     immediately preceding marketing year shall be based on the 
     latest information available to the Secretary at the time of 
     the determination.
       ``(b) Loan Deficiency Payments.--
       ``(1) In general.--The Secretary shall, for each of the 
     1996 through 2002 crops of rice, make payments (referred to 
     in this section as `loan deficiency payments') available to 
     producers who, although eligible to obtain a loan or an 
     agreement for purchase under subsection (a), agree to forgo 
     obtaining the loan or agreement in return for payments under 
     this subsection.
       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan payment rate; and
       ``(B) the quantity of rice that the producers are eligible 
     to place under loan (or obtain a purchase agreement) but for 
     which the producers forgo obtaining the loan or agreement in 
     return for payments under this subsection.
       ``(3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       ``(A) the loan level determined for the crop under 
     subsection (a); exceeds
       ``(B) the level at which a loan may be repaid under 
     subsection (a).
       ``(4) Marketing certificates.--The Secretary may make up to 
     \1/2\ the amount of a payment under this subsection available 
     in the form of marketing certificates, subject to the terms 
     and conditions provided in subsection (a)(5)(C).
       ``(c) Payments.--
       ``(1) Deficiency payments.--
       ``(A) In general.--The Secretary shall make available to 
     producers payments (referred to in this section as 
     `deficiency payments') for each of the 1996 through 2002 
     crops of rice in an amount computed by multiplying--
       ``(i) the payment rate;
       ``(ii) the payment acres for the crop; and
       ``(iii) the farm program payment yield established for the 
     crop for the farm.
       ``(B) Payment rate.--
       ``(i) In general.--The payment rate for each of the 1996 
     through 2002 crops of rice shall be the amount by which the 
     established price for the crop of rice exceeds the greater 
     of--

       ``(I) the lesser of--

       ``(aa) the national average market price received by 
     producers during the calendar year that contains the first 5 
     months of the marketing year for the crop, as determined by 
     the Secretary; or
       ``(bb) the national average market price received by 
     producers during the first 5 months of the marketing year for 
     the crop, as determined by the Secretary, plus an appropriate 
     amount that is fair and equitable in relation to wheat and 
     feed grains (as determined by the Secretary); or

       ``(II) the loan level determined for the crop.

       ``(ii) Minimum established price.--The established price 
     for rice shall not be less than $10.71 per hundredweight for 
     each of the 1996 through 2002 crops.
       ``(C) Payment acres.--Payment acres for a crop shall be the 
     lesser of--
       ``(i) the number of acres planted to the crop for harvest 
     within the permitted acreage (as defined in subsection 
     (e)(2)(D)(ii)); or
       ``(ii) 75 percent of the crop acreage base for the crop for 
     the farm less the quantity of reduced acreage (as defined in 
     subsection (e)(2)(D)(ii)).
       ``(D) 50/85 program.--
       ``(i) In general.--If an acreage limitation program under 
     subsection (e)(2) is in effect for a crop of rice and the 
     producers on a farm devote a portion of the maximum payment 
     acres of the farm for rice as calculated under subparagraph 
     (C)(ii) equal to more than 15 percent (except as provided in 
     clause (v)(II)) of the rice acreage of the farm for the crop 
     to conservation uses (except as provided in subparagraph 
     (E))--

       ``(I) the portion of the maximum payment acres of the farm 
     in excess of 15 percent (except as provided in clause 
     (v)(II)) of the acreage devoted to conservation uses (except 
     as provided in subparagraph (E)) shall be considered to be 
     planted to rice for the purpose of determining the acreage on 
     the farm required to be devoted to conservation uses in 
     accordance with subsection (e)(2)(D); and
       ``(II) the producers shall be eligible for payments under 
     this paragraph with respect to the acreage, subject to the 
     compliance of the producers with clause (ii).

       ``(ii) Minimum planting requirement.--To be eligible for 
     payments under clause (i), except as provided in clauses (iv) 
     and (v), the producers on a farm shall actually plant rice 
     for harvest on at least 50 percent of the maximum payment 
     acres for rice for the farm.
       ``(iii) Deficiency payments.--Notwithstanding any other 
     provision of this section, any producers on a farm who devote 
     a portion of the maximum payment acres of the farm for rice 
     to conservation uses (or other uses as provided in 
     subparagraph (E)) under this subparagraph shall receive 
     deficiency payments on the acreage that is considered to be 
     planted to rice and eligible for payments under this 
     subparagraph for the crop at a per-hundredweight rate 
     established by the Secretary, except that the rate may not 

[[Page S613]]
     be established at less than the projected deficiency payment rate for 
     the crop, as determined by the Secretary. The projected 
     deficiency payment rate for the crop shall be announced by 
     the Secretary prior to the period during which rice producers 
     may agree to participate in the program for the crop.
       ``(iv) Quarantines.--If a State or local agency has imposed 
     in an area of a State or county a quarantine on the planting 
     of rice for harvest on farms in the area, the State committee 
     established under section 8(b) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590h(b)) may recommend to 
     the Secretary that payments be made under this paragraph, 
     without regard to the requirement imposed under clause (ii), 
     to producers in the area who were required to forgo the 
     planting of rice for harvest on acreage to alleviate or 
     eliminate the condition requiring the quarantine. If the 
     Secretary determines that the condition exists, the Secretary 
     may make payments under this paragraph to the producers. To 
     be eligible for payments under this clause, the producers 
     must devote the acreage to conservation uses (except as 
     provided in subparagraph (E)).
       ``(v) Prevented planting and reduced yields.--In the case 
     of each of the 1996 through 2002 crops of rice, producers on 
     a farm shall be eligible to receive deficiency payments as 
     provided in clause (iii) without regard to clause (ii) if an 
     acreage limitation program under subsection (e) is in effect 
     for the crop and the producers--

       ``(I)(aa) have been determined by the Secretary (in 
     accordance with section 503(c)) to be prevented from planting 
     the crop, or have incurred a reduced yield for the crop 
     because of a natural disaster; and
       ``(bb) elect to devote a portion of the maximum payment 
     acres for rice (as calculated under subparagraph (C)(ii)) 
     equal to more than 8 percent of the rice acreage, to 
     conservation uses; or
       ``(II) elect to devote a portion of the maximum payment 
     acres for rice (as calculated under subparagraph (C)(ii)) 
     equal to more than 8 percent of the rice acreage, to 
     alternative crops as provided in subparagraph (E).

       ``(vi) Crop acreage and payment yield.--The rice crop 
     acreage base and rice farm program payment yield of the farm 
     shall not be reduced because of the fact that a portion of 
     the permitted acreage for rice for the farm was devoted to 
     conserving uses (except as provided in subparagraph (E)) 
     under this subparagraph.
       ``(vii) Limitation.--Other than as provided in clauses (i) 
     through (vi), payments may not be made under this paragraph 
     for any crop on a greater acreage than the acreage actually 
     planted to rice.
       ``(viii) Conservation use acreage under other programs.--
     Any acreage considered to be planted to rice in accordance 
     with clauses (i) and (vi) may not also be designated as 
     conservation use acreage for the purpose of fulfilling any 
     provision under any acreage limitation or land diversion 
     program requiring that the producers devote a specified 
     quantity of acreage to conservation uses.
       ``(E) Alternative crops.--
       ``(i) Industrial and other crops.--The Secretary may 
     permit, subject to such terms and conditions as the Secretary 
     may prescribe, all or any part of acreage otherwise required 
     to be devoted to conservation uses as a condition of 
     qualifying for payments under subparagraph (D) to be devoted 
     to sweet sorghum, guar, castor beans, plantago ovato, 
     triticale, rye, millet, mung beans, commodities for which no 
     substantial domestic production or market exists but that 
     could yield industrial raw material being imported, or likely 
     to be imported, into the United States, or commodities grown 
     for experimental purposes (including kenaf and milkweed), 
     subject to the following sentence. The Secretary may permit 
     the acreage to be devoted to the production only if the 
     Secretary determines that the production is--

       ``(I) not likely to increase the cost of the price support 
     program; and
       ``(II) needed to provide an adequate supply of the 
     commodity, or, in the case of a commodity for which no 
     substantial domestic production or market exists but that 
     could yield industrial raw materials, the production is 
     needed to encourage domestic manufacture of the raw material 
     and could lead to increased industrial use of the raw 
     material to the long-term benefit of United States industry.

       ``(ii) Sesame and crambe.--The Secretary shall permit, 
     subject to such terms and conditions as the Secretary may 
     prescribe, all or any part of acreage otherwise required to 
     be devoted to conservation uses as a condition of qualifying 
     for payments under subparagraph (D) to be devoted to sesame 
     or crambe. In carrying out this clause, if the Secretary 
     determines that sesame or crambe are considered oilseeds 
     under section 205, the Secretary shall provide that, in order 
     to receive payments under subparagraph (D), the producers 
     shall agree to forgo eligibility to receive a loan under 
     section 205 for the crop of sesame or crambe produced on the 
     farm.
       ``(2) Crop insurance requirement.--As a condition of 
     eligibility for rice loans, purchases, and payments, the 
     producers on a farm shall obtain catastrophic risk protection 
     insurance coverage in accordance with section 427.
       ``(d) Payment Yields.--The farm program payment yields for 
     farms for each crop of rice under this section shall be 
     determined under title V.
       ``(e) Acreage Reduction Programs.--
       ``(1) In general.--
       ``(A) Establishment.--Notwithstanding any other provision 
     of this Act, if the Secretary determines that the total 
     supply of rice, in the absence of an acreage limitation 
     program, will be excessive taking into account the need for 
     an adequate carry-over to maintain reasonable and stable 
     supplies and prices and to meet a national emergency, the 
     Secretary may provide for any crop of rice an acreage 
     limitation program as described in paragraph (2).
       ``(B) Agricultural resources conservation program.--In 
     making a determination under subparagraph (A), the Secretary 
     shall take into consideration the number of acres placed in 
     the agricultural resources conservation program established 
     under subtitle D of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3830 et seq.).
       ``(C) Announcements.--
       ``(i) Preliminary announcement.--If the Secretary elects to 
     implement an acreage limitation program for any crop year, 
     the Secretary shall make a preliminary announcement of any 
     such program not later than December 1 of the calendar year 
     preceding the year in which the crop is harvested (or, for 
     the 1996 crop, as soon as practicable after the date of 
     enactment of the Farm Commodities Act of 1995). The 
     preliminary announcement shall include, among other 
     information determined necessary by the Secretary, an 
     announcement of the uniform percentage reduction in the rice 
     crop acreage base described in paragraph (2)(A).
       ``(ii) Final announcement.--Not later than January 31 of 
     the calendar year in which the crop is harvested, the 
     Secretary shall make a final announcement of the program. The 
     announcement shall include, among other information 
     determined necessary by the Secretary, an announcement of the 
     uniform percentage reduction in the rice crop acreage base 
     described in paragraph (2)(A).
       ``(D) Carry-over.--The Secretary shall carry out an acreage 
     limitation program described in paragraph (2) for a crop of 
     rice in a manner that will result in carry-over stocks equal 
     to 16.5 to 20 percent of the simple average of the total 
     disappearance of rice for each of the 3 marketing years 
     preceding the year for which the announcement is made. In 
     this subparagraph, the term `total disappearance' means all 
     rice utilization, including total domestic, total export, and 
     total residual disappearance.
       ``(2) Acreage limitation program.--
       ``(A) Percentage reductions.--Except as provided in 
     paragraph (3), if a rice acreage limitation program is 
     announced under paragraph (1), the limitation shall be 
     achieved by applying a uniform percentage reduction (from 0 
     to 35 percent) to the rice crop acreage base for the crop for 
     each rice-producing farm.
       ``(B) Compliance.--Except as provided in section 504, 
     producers on a farm who knowingly produce rice in excess of 
     the permitted acreage for rice for the farm, as established 
     in accordance with subparagraph (A), shall be ineligible for 
     rice loans, purchases, and payments with respect to the farm.
       ``(C) Crop acreage bases.--Rice crop acreage bases for each 
     crop of rice shall be determined under title V.
       ``(D) Acreage devoted to conservation uses.--
       ``(i) In general.--A number of acres on the farm shall be 
     devoted to conservation uses, in accordance with regulations 
     issued by the Secretary.
       ``(ii) Number.--The number shall be determined by 
     multiplying the rice crop acreage base by the percentage 
     reduction required by the Secretary. The number of acres so 
     determined is referred to in this section as `reduced 
     acreage'. The remaining acreage is referred to in this 
     section as `permitted acreage'.
       ``(iii) Adjustment.--Permitted acreage may be adjusted by 
     the Secretary as provided in paragraph (3) and in section 
     504.
       ``(E) Individual farm program acreage.--Except as otherwise 
     provided in subsection (c), the individual farm program 
     acreage shall be the acreage planted on the farm to rice for 
     harvest within the permitted acreage for rice for the farm as 
     established under this paragraph.
       ``(F) Planting designated crops on reduced acreage.--
       ``(i) Definition of designated crop.--In this subparagraph, 
     the term `designated crop' means a crop described in section 
     504(b)(1), excluding any program crop as defined in section 
     502(3).
       ``(ii) Planting designated crops.--Subject to clause (iii), 
     the Secretary may permit producers on a farm to plant a 
     designated crop on not more than \1/2\ of the reduced acreage 
     on the farm.
       ``(iii) Limitations.--If the producers on a farm elect to 
     plant a designated crop on reduced acreage under this 
     subparagraph--

       ``(I) the amount of the deficiency payment that the 
     producers are otherwise eligible to receive under subsection 
     (c) shall be reduced, for each acre (or portion of an acre) 
     that is planted to the designated crop, by an amount equal to 
     the deficiency payment that would be made with respect to a 
     number of acres of the crop that the Secretary considers 
     appropriate, except that if the producers on the farm are 
     participating in a program established for more than 1 
     program crop, the amount of the reduction shall be determined 
     by prorating the reduction based on the acreage planted or 
     considered planted on the farm to all of the program crops; 
     and
     
[[Page S614]]

       ``(II) the Secretary shall ensure that reductions in 
     deficiency payments under subclause (I) are sufficient to 
     ensure that this subparagraph will result in no additional 
     cost to the Commodity Credit Corporation.

       ``(3) Targeted option payments.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, if the Secretary implements an acreage 
     limitation program with respect to any of the 1996 through 
     2002 crops of rice and announces an acreage limitation 
     percentage of 20 percent or less, the Secretary may make 
     available to producers on a farm who do not receive 
     payments under subsection (c)(1)(D) for the crop on the 
     farm, adjustments in the level of deficiency payments that 
     would otherwise be made available to the producers if the 
     producers exercise the payment options provided in this 
     paragraph.
       ``(B) Payment options.--If the Secretary elects to carry 
     out this paragraph, the Secretary shall make the payment 
     options specified in subparagraphs (C) and (D) available to 
     producers who agree to make adjustments in the quantity of 
     acreage diverted from the production of rice under an acreage 
     limitation program in accordance with this paragraph.
       ``(C) Increased acreage limitation option.--
       ``(i) Increase in established price.--If the Secretary 
     elects to carry out this paragraph, the producers on a farm 
     shall be eligible to receive an increase in the established 
     price for rice in accordance with clause (ii) if the 
     producers agree to an increase in the acreage limitation 
     percentage to be applied to the rice acreage base of the 
     producers above the acreage limitation percentage announced 
     by the Secretary.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who participate in the program under this 
     paragraph, the Secretary shall increase the established price 
     for rice by an amount determined by the Secretary of not less 
     than 0.5 percent, nor more than 1 percent, for each 1 
     percentage point increase in the acreage limitation 
     percentage applied to the rice acreage base of the producers.
       ``(iii) Limitation.--The acreage limitation percentage to 
     be applied to the rice acreage base of the producers shall be 
     increased by not more than 5 percentage points above the 
     acreage limitation percentage announced by the Secretary.
       ``(iv) Adjustment for under- plantings.--In determining the 
     increased acreage limitation percentage that is applied to 
     the rice acreage base of the producers under this paragraph, 
     the Secretary shall exclude an amount of acreage equal to the 
     average difference between the permitted acreage for rice for 
     the farm of the producers and the acreage actually planted 
     (including acreage devoted to conserving uses under 
     subsection (c)(1)(D)) to rice for harvest during the previous 
     2 years.
       ``(D) Decreased acreage limitation option.--
       ``(i) Decrease in acreage limitation requirement.--If the 
     Secretary elects to carry out this paragraph, the producers 
     on a farm shall be eligible to decrease the acreage 
     limitation percentage applicable to the rice acreage base of 
     the producers (as announced by the Secretary) if the 
     producers agree to a decrease in the established price for 
     rice in accordance with clause (ii) for the purpose of 
     calculating deficiency payments to be made available to the 
     producers.
       ``(ii) Method of calculation.--For the purposes of 
     calculating deficiency payments to be made available to 
     producers who choose the option established under this 
     subparagraph, the Secretary shall decrease the established 
     price for rice by an amount to be determined by the Secretary 
     of not less than 0.5 percent, nor more than 1 percent, for 
     each 1 percentage point decrease in the acreage limitation 
     percentage applied to the rice acreage base of the producers.
       ``(iii) Limitation.--The producers on a farm may not choose 
     to decrease the acreage limitation percentage applicable to 
     the rice acreage base of the producers under this paragraph 
     by more than \1/2\ of the announced acreage limitation 
     percentage.
       ``(E) Participation and production effects.--
     Notwithstanding any other provision of this paragraph, the 
     Secretary shall, to the extent practicable, ensure that the 
     program provided for in this paragraph does not have a 
     significant effect on participation on the program 
     established under this section or total production and 
     shall be offered in such a manner that the Secretary 
     determines will result in no additional budget outlays. 
     The Secretary shall provide an analysis of the 
     determination of the Secretary to the Committee on 
     Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       ``(4) Administration.--
       ``(A) Protection from weeds and erosion.--The regulations 
     issued by the Secretary under paragraph (2) with respect to 
     acreage required to be devoted to conservation uses shall 
     ensure protection of the acreage from weeds and wind and 
     water erosion.
       ``(B) Conserving crops.--The Secretary may permit, subject 
     to such terms and conditions as the Secretary may prescribe, 
     all or any part of the acreage to be devoted to sweet 
     sorghum, guar, sesame, castor beans, crambe, plantago ovato, 
     triticale, rye, mung beans, milkweed, or other commodity, if 
     the Secretary determines that the production is needed to 
     provide an adequate supply of the commodities, is not likely 
     to increase the cost of the price support program, and will 
     not affect farm income adversely.
       ``(C) Haying and grazing.--
       ``(i) In general.--Except as provided in clause (ii), 
     haying and grazing of reduced acreage, acreage devoted to a 
     conservation use under subsection (c)(1)(D), and acreage 
     diverted from production under a land diversion program 
     established under this subsection shall be permitted, except 
     during any consecutive 5-month period that is established by 
     the State committee established under section 8(b) of the 
     Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590h(b)) for a State. The 5-month period shall be established 
     during the period beginning April 1, and ending October 31, 
     of a year.
       ``(ii) Natural disasters.--In the case of a natural 
     disaster, the Secretary may permit unlimited haying and 
     grazing on the acreage. The Secretary may not exclude 
     irrigated or irrigable acreage not planted to alfalfa when 
     exercising the authority under this clause.
       ``(D) Water storage uses.--
       ``(i) In general.--The regulations issued by the Secretary 
     under paragraph (2) with respect to acreage required to be 
     devoted to conservation uses shall provide that land that has 
     been converted to water storage uses shall be considered to 
     be devoted to conservation uses if the land was devoted to 
     wheat, feed grains, cotton, rice, or oilseeds in at least 3 
     of the immediately preceding 5 crop years. The land shall be 
     considered to be devoted to conservation uses for the period 
     that the land remains in water storage uses, but not to 
     exceed 5 crop years subsequent to the conversion of the land 
     to water storage uses.
       ``(ii) Limitations.--Land converted to water storage uses 
     for the purposes of this subparagraph may not be devoted to 
     any commercial use, including commercial fish production. The 
     water stored on the land may not be ground water. The farm on 
     which the land is located must have been irrigated with 
     ground water during at least 1 of the preceding 5 crop years.
       ``(5) Land diversion program.--
       ``(A) In general.--The Secretary may make land diversion 
     payments to producers of rice, whether or not an acreage 
     limitation program for rice is in effect, if the Secretary 
     determines that the land diversion payments are necessary to 
     assist in adjusting the total national acreage of rice to 
     desirable goals. The land diversion payments shall be made to 
     producers who, to the extent prescribed by the Secretary, 
     devote to approved conservation uses an acreage of cropland 
     on the farm in accordance with land diversion contracts 
     entered into by the Secretary with the producers.
       ``(B) Amounts.--The amounts payable to producers under land 
     diversion contracts may be determined through the submission 
     of bids for the contracts by producers in such manner as the 
     Secretary may prescribe or through such other means as the 
     Secretary determines appropriate. In determining the 
     acceptability of contract offers, the Secretary shall take 
     into consideration the extent of the diversion to be 
     undertaken by the producers and the productivity of the 
     acreage diverted.
       ``(C) Limitation on diverted acreage.--The Secretary shall 
     limit the total acreage to be diverted under agreements in 
     any county or local community so as not to affect adversely 
     the economy of the county or local community.
       ``(6) Conservation practices.--
       ``(A) Wildlife food plots or habitat.--The reduced acreage 
     and additional diverted acreage may be devoted to wildlife 
     food plots or wildlife habitat in conformity with standards 
     established by the Secretary in consultation with wildlife 
     agencies. The Secretary may pay an appropriate share of the 
     cost of practices designed to carry out this subparagraph.
       ``(B) Public access.--The Secretary may provide for an 
     additional payment on the acreage in an amount determined by 
     the Secretary to be appropriate in relation to the benefit to 
     the general public if the producers on a farm agree to 
     permit, without other compensation, access to all or such 
     portion of the farm as the Secretary may prescribe by the 
     general public, for hunting, trapping, fishing, and 
     hiking, subject to applicable Federal and State 
     regulations.
       ``(7) Participation agreements.--
       ``(A) In general.--Producers on a farm desiring to 
     participate in the program conducted under this subsection 
     shall execute an agreement with the Secretary providing for 
     the participation not later than such date as the Secretary 
     may prescribe.
       ``(B) Modification or termination.--The Secretary may, by 
     mutual agreement with producers on a farm, modify or 
     terminate any such agreement if the Secretary determines the 
     action necessary because of an emergency created by drought 
     or other disaster or to prevent or alleviate a shortage in 
     the supply of agricultural commodities. The Secretary may 
     modify the agreement under this subparagraph for the purpose 
     of alleviating a shortage in the supply of agricultural 
     commodities only if there has been a significant change in 
     the estimated stocks of the commodity since the Secretary 
     announced the final terms and conditions of the program for 
     the crop of rice.
       ``(f) Inventory Reduction Payments.--
       ``(1) In general.--For each of the 1996 through 2002 crops 
     of rice, the Secretary may make payments available to 
     producers on a 

[[Page S615]]
     farm who meet the requirements of this subsection.
       ``(2) Form.--The payments may be made in the form of 
     marketing certificates.
       ``(3) Payments.--
       ``(A) In general.--Payments under this subsection shall be 
     determined in the same manner as provided in subsection (b).
       ``(B) Quantity of rice made available.--The quantity of 
     rice to be made available to the producers on a farm under 
     this subsection shall be equal in value to the payments so 
     determined under this subsection.
       ``(4) Eligibility.--The producers on a farm shall be 
     eligible to receive a payment under this subsection for a 
     crop if the producers--
       ``(A) agree to forgo obtaining a loan or purchase agreement 
     under subsection (a);
       ``(B) agree to forgo receiving payments under subsection 
     (c);
       ``(C) do not plant rice for harvest in excess of the crop 
     acreage base reduced by \1/2\ of any acreage required to be 
     diverted from production under subsection (e); and
       ``(D) otherwise comply with this section.
       ``(g) Equitable Relief.--
       ``(1) Loans, purchases, and payments.--If the failure of a 
     producer to comply fully with the terms and conditions of the 
     program conducted under this section precludes the making of 
     loans, purchases, and payments, the Secretary may, 
     notwithstanding the failure, make the loans, purchases, and 
     payments in such amounts as the Secretary determines are 
     equitable in relation to the seriousness of the failure. The 
     Secretary may consider whether the producer made a good faith 
     effort to comply fully with the terms and conditions of the 
     program in determining whether equitable relief is warranted 
     under this paragraph.
       ``(2) Deadlines and program requirements.--The Secretary 
     may authorize the county and State committees established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
     deadlines and other program requirements in cases in which 
     lateness or failure to meet the other requirements does not 
     affect adversely the operation of the program.
       ``(h) Regulations.--The Secretary may issue such 
     regulations as the Secretary determines necessary to carry 
     out this section.
       ``(i) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(j) Assignment of Payments.--Section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
     shall apply to payments made under this section.
       ``(k) Sharing of Payments.--The Secretary shall provide for 
     the sharing of payments made under this section for any farm 
     among the producers on the farm on a fair and equitable 
     basis.
       ``(l) Tenants and Sharecroppers.--In carrying out this 
     section, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       ``(m) Cross-Compliance.--
       ``(1) In general.--Compliance on a farm with the terms and 
     conditions of any other commodity program, or compliance with 
     crop acreage base requirements for any other commodity, may 
     not be required as a condition of eligibility for loans, 
     purchases, or payments under this section.
       ``(2) Compliance on other farms.--The Secretary may not 
     require producers on a farm, as a condition of eligibility 
     for loans, purchases, or payments under this section for the 
     farm, to comply with the terms and conditions of the rice 
     program with respect to any other farm operated by the 
     producers.
       ``(n) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of rice.''.
                           TITLE V--OILSEEDS

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

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

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

       ``(a) Definition of Oilseeds.--In this section, the term 
     `oilseeds' means soybeans, sunflower seed, canola, rapeseed, 
     safflower, flaxseed, mustard seed, and such other oilseeds as 
     the Secretary may determine.
       ``(b) Loans and Purchases.--The Secretary shall make 
     available to producers on a farm loans and purchases for each 
     of the 1996 through 2002 crops of oilseeds produced on the 
     farm at such level as the Secretary determines will maintain 
     the competitiveness of oilseeds with other crops and will not 
     result in excessive total stocks of oilseeds, taking into 
     consideration the cost of producing oilseeds, supply and 
     demand conditions, and world prices for oilseeds.
       ``(c) Loan and Purchase Level.--
       ``(1) Soybeans.--Except as provided in paragraph (4), the 
     loan and purchase level for each of the 1996 through 2002 
     crops of soybeans shall be not less than the greater of--
       ``(A) 85 percent of the simple average price received by 
     producers, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     soybeans, excluding the year in which the average price was 
     the highest and the year in which the average price was the 
     lowest in the period; or
       ``(B) $5.50 per bushel.
       ``(2) Sunflower seed, canola, rapeseed, and flaxseed.--
     Except as provided in paragraph (4), the loan and purchase 
     level for each of the 1996 through 2002 crops of sunflower 
     seed, canola, rapeseed, and flaxseed shall be not less than 
     the greater of--
       ``(A) 85 percent of the simple average price received by 
     producers, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     sunflower seed, canola, rapeseed, and flaxseed, respectively, 
     excluding the year in which the average price was the highest 
     and the year in which the average price was the lowest in the 
     period; or
       ``(B) $9.75 per hundredweight.
       ``(3) Other oilseeds.--Except as provided in paragraph (4), 
     the loan and purchase level for each of the 1996 through 2002 
     crops of oilseeds not covered by paragraph (1) or (2) shall 
     be established at such level as the Secretary determines is 
     fair and reasonable in relation to the loan and purchase 
     level available for soybeans, except that the loan and 
     purchase level for cottonseed may not be established at a 
     level that is less than the level established for soybeans on 
     a per-pound basis for the same crop year.
       ``(4) Adjustment.--If the Secretary determines for any 
     marketing year that the loan and purchase level established 
     under this subsection will result in outlays in the form of 
     loan deficiency payments to producers of an oilseed, the 
     Secretary shall reduce the loan and purchase level for a crop 
     of the oilseed for the marketing year to a level at which, as 
     determined by the Secretary, payments will not be made, 
     except that the level may not be less than--
       ``(A) in the case of soybeans, $5.00 per bushel; and
       ``(B) in the case of sunflower seed, canola, rapeseed, and 
     flaxseed, $8.90 per hundredweight.
       ``(5) Report.--If the Secretary adjusts the level of loans 
     and purchases for an oilseed under paragraph (4), the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report--
       ``(A) certifying that the adjustment is necessary to reduce 
     outlays in the form of loan deficiency payments; and
       ``(B) containing a description of the production, stocks, 
     and price circumstances under which the adjustment is needed.
       ``(6) Future crop years.--Any reduction in the loan and 
     purchase level for a crop of an oilseed under paragraph (4) 
     shall not be considered in determining the loan and purchase 
     level for a future crop of the oilseed.
       ``(d) Marketing Loans.--
       ``(1) In general.--The Secretary shall permit a producer to 
     repay a loan made under this section for a crop--
       ``(A) at a level that is the lesser of--
       ``(i) the loan and purchase level determined for the crop; 
     and
       ``(ii) the prevailing world market price for the applicable 
     oilseed (adjusted to United States quality and location), as 
     determined by the Secretary; or
       ``(B) such other level (not in excess of the loan and 
     purchase level determined for the crop) that the Secretary 
     determines will--
       ``(i) minimize potential loan forfeitures;
       ``(ii) minimize the accumulation of oilseed stocks by the 
     Federal Government;
       ``(iii) minimize the cost incurred by the Federal 
     Government in storing oilseeds; and
       ``(iv) allow oilseeds produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       ``(2) Prevailing world market price.--The Secretary shall 
     prescribe by regulation--
       ``(A) a formula for determining the prevailing world market 
     price for oilseeds (adjusted to United States quality and 
     location); and
       ``(B) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for oilseeds 
     (adjusted to United States quality and location).
       ``(e) Loan Deficiency Payment.--
       ``(1) In general.--For each of the 1996 through 2002 crops 
     of oilseeds, the Secretary shall make payments available to 
     producers who, although eligible to obtain a loan or purchase 
     under subsection (b), agree to forgo obtaining the loan and 
     purchase in return for payments under this subsection.
       ``(2) Computation.--A payment under this subsection shall 
     be computed by multiplying--
       ``(A) the loan and purchase payment rate; by
       ``(B) the quantity of oilseeds the producer is eligible to 
     place under loan but for which the producer forgoes obtaining 
     the loan and purchase in return for payments under this 
     subsection.
       ``(3) Loan and purchase payment rate.--For purposes of this 
     subsection, the loan and purchase payment rate shall be the 
     amount by which--
       ``(A) the loan and purchase level determined for the crop 
     under subsection (c); exceeds
       ``(B) the level at which a loan may be repaid under 
     subsection (d).
       ``(4) Marketing certificates.--
       ``(A) In general.--The Secretary may make payments under 
     this section available in the form of certificates redeemable 
     for any agricultural commodity owned by the Commodity Credit 
     Corporation.
       ``(B) Minimal oilseed stocks.--The Secretary shall make 
     certificates available under subparagraph (A) in such a 
     manner as to minimize the accumulation of oilseed stocks.
       ``(f) Marketing Year.--For purposes of this section, the 
     marketing year for--
     
[[Page S616]]

       ``(1) soybeans shall be the 1-year period beginning on 
     September 1 and ending on August 31; and
       ``(2) other oilseeds shall be prescribed by the Secretary 
     by regulation.
       ``(g) Announcements.--The Secretary shall make an 
     announcement of the loan and purchase level for the crop not 
     later than 15 days prior to the beginning of the marketing 
     year for the crop.
       ``(h) Loan Maturity.--A loan made for a crop of oilseeds 
     under this section shall mature on the last day of the 9th 
     month following the month in which the application for the 
     loan is made, except that the loan may not mature later than 
     the last day of the fiscal year in which the application is 
     made.
       ``(i) Other Terms and Conditions.--Notwithstanding any 
     other provision of law--
       ``(1) the Secretary shall not require participation in any 
     production adjustment program for oilseeds or any other 
     commodity as a condition of eligibility for price support for 
     oilseeds;
       ``(2) the Secretary may not authorize payments to producers 
     to cover the cost of storing oilseeds; and
       ``(3) oilseeds may not be considered an eligible commodity 
     for any reserve program.
       ``(j) Regulations.--The Secretary may issue such 
     regulations as the Secretary determines necessary to carry 
     out this section.
       ``(k) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(l) Assignment of Payments.--Section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) 
     shall apply to payments under this section.
       ``(m) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of oilseeds.''.
                           TITLE VI--PEANUTS

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

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

     SEC. 602. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS.

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

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

       ``(a) National Poundage Quotas.--
       ``(1) Establishment.--The national poundage quota for 
     peanuts for each of the 1996 through 2002 marketing years 
     shall be established by the Secretary at a level that is 
     equal to the quantity of peanuts (in tons) that the Secretary 
     estimates will be devoted in each such marketing year to 
     domestic edible and related uses, excluding seed. The 
     Secretary shall include in the annual estimate of domestic 
     edible and related uses, the estimated quantity of peanuts 
     and peanut products to be imported into the United States for 
     the marketing year for which the quota is being established.
       ``(2) Announcement.--The national poundage quota for a 
     marketing year shall be announced by the Secretary not later 
     than the December 15 preceding the marketing year.
       ``(3) Apportionment among states.--The national poundage 
     quota established under paragraph (1) shall be apportioned 
     among the States so that the poundage quota allocated to each 
     State is equal to the percentage of the national poundage 
     quota allocated to farms in the State for 1995.
       ``(b) Farm Poundage Quotas.--
       ``(1) In general.--
       ``(A) Establishment.--A farm poundage quota for each of the 
     1996 through 2002 marketing years shall be established--
       ``(i) for each farm that had a farm poundage quota for 
     peanuts for the 1995 marketing year;
       ``(ii) if the poundage quota apportioned to a State under 
     subsection (a)(3) for any such marketing year is larger than 
     the quota for the immediately preceding marketing year, for 
     each other farm on which peanuts were produced for marketing 
     in at least 2 of the 3 immediately preceding crop years, as 
     determined by the Secretary; and
       ``(iii) as approved and determined by the Secretary under 
     section 358c, for each farm on which peanuts are produced in 
     connection with experimental and research programs.
       ``(B) Quantity.--
       ``(i) In general.--The farm poundage quota for each of the 
     1996 through 2002 marketing years for each farm described in 
     subparagraph (A)(i) shall be the same as the farm poundage 
     quota for the farm for the immediately preceding marketing 
     year, as adjusted under paragraph (2), but not including any 
     increases resulting from the allocation of quotas voluntarily 
     released for 1 year under paragraph (7).
       ``(ii) Increased quota.--The farm poundage quota, if any, 
     for each of the 1996 through 2002 marketing years for each 
     farm described in subparagraph (A)(ii) shall be equal to the 
     quantity of peanuts allocated to the farm for the year under 
     paragraph (2).
       ``(C) Transfers.--For purposes of this subsection, if the 
     farm poundage quota, or any part of the quota, is permanently 
     transferred in accordance with section 358a or 358b, the 
     receiving farm shall be considered as possessing the farm 
     poundage quota (or portion of the quota) of the transferring 
     farm for all subsequent marketing years.
       ``(2) Adjustments.--
       ``(A) Allocation of increased quota generally.--Subject to 
     subparagraphs (B) and (D), if the poundage quota apportioned 
     to a State under subsection (a)(3) for any of the 1996 
     through 2002 marketing years is increased over the poundage 
     quota apportioned to farms in the State for the immediately 
     preceding marketing year, the increase shall be allocated 
     proportionately, based on farm production history for peanuts 
     for the 3 immediately preceding years, among--
       ``(i) all farms in the State for which a farm poundage 
     quota was established for the marketing year immediately 
     preceding the marketing year for which the allocation is 
     being made; and
       ``(ii) all other farms in the State on which peanuts were 
     produced in at least 2 of the 3 immediately preceding crop 
     years, as determined by the Secretary.
       ``(B) Temporary quota allocation.--
       ``(i) In general.--Subject to clause (iv), temporary 
     allocation of a poundage quota for the marketing year in 
     which a crop of peanuts is planted shall be made to producers 
     for each of the 1996 through 2002 marketing years in 
     accordance with this subparagraph.
       ``(ii) Quantity.--The temporary quota allocation shall be 
     equal to the quantity of seed peanuts (in pounds) planted on 
     a farm, as determined in accordance with regulations issued 
     by the Secretary.
       ``(iii) Allocation.--The allocation of quota pounds to 
     producers under this subparagraph shall be performed in such 
     a manner as will not result in a net decrease in quota pounds 
     on a farm in excess of 3 percent, after the temporary seed 
     quota is added, from the basic farm quota for the 1995 
     marketing year. A decrease shall occur only once, shall be 
     applicable only to the 1996 marketing year.
       ``(iv) No increased costs.--The Secretary may carry out 
     this subparagraph only if this subparagraph does not result 
     in--

       ``(I) an increased cost to the Commodity Credit Corporation 
     through displacement of quota peanuts by additional peanuts 
     in the domestic market;
       ``(II) an increased loss in a loan pool of an area 
     marketing association designated pursuant to 
     section 108B(c)(1) of the Agricultural Act of 1949 (7 
     U.S.C. 1445c-3(c)(1)); or

       ``(III) other increased costs.

       ``(v) Use of quota and additional peanuts.--Nothing in this 
     subparagraph affects the requirements of section 358b(b).
       ``(vi) Additional allocation.--The temporary allocation of 
     quota pounds under this subparagraph shall be in addition to 
     the farm poundage quota established under this subsection and 
     shall be credited to the producers of the peanuts on the farm 
     in accordance with regulations issued by the Secretary.
       ``(C) Decrease.--If the poundage quota apportioned to a 
     State under subsection (a)(3) for any of the 1996 through 
     2002 marketing years is decreased from the poundage quota 
     apportioned to farms in the State under subsection (a)(3) for 
     the immediately preceding marketing year, the decrease shall 
     be allocated among all the farms in the State for which a 
     farm poundage quota was established for the marketing year 
     immediately preceding the marketing year for which the 
     allocation is being made.
       ``(D) Special rule on tenant's share of increased quota.--
     Subject to terms and conditions prescribed by the Secretary, 
     on farms that were leased to a tenant for peanut production, 
     the tenant shall share equally with the owner of the farm in 
     the percentage of the quota made available under subparagraph 
     (A) and otherwise allocated to the farm as the result of the 
     production of the tenant on the farm of additional peanuts. 
     Not later than April 1 of each year or as soon as practicable 
     during the year, the share of the tenant of any such quota 
     shall be allocated to a farm within the county owned by the 
     tenant or sold by the tenant to the owner of any farm within 
     the county and permanently transferred to the farm. Any quota 
     not so disposed of as provided in this subparagraph shall be 
     allocated to other quota farms in the State under paragraph 
     (6) as part of the quota reduced from farms in the State due 
     to the failure to produce the quota.
       ``(3) Quota not produced.--
       ``(A) In general.--Insofar as practicable and on such fair 
     and equitable basis as the Secretary may by regulation 
     prescribe, the farm poundage quota established for a farm for 
     any of the 1996 through 2002 marketing years shall be reduced 
     to the extent that the Secretary determines that the farm 
     poundage quota established for the farm for any 2 of the 3 
     marketing years preceding the marketing year for which the 
     determination is being made was not produced, or considered 
     produced, on the farm.
       ``(B) Exclusions.--For the purposes of this paragraph, the 
     farm poundage quota for any such preceding marketing year 
     shall not include any increase resulting from the allocation 
     of quotas voluntarily released for 1 year under paragraph 
     (7).
       ``(4) Quota considered produced.--
       ``(A) In general.--For purposes of this subsection, subject 
     to subparagraph (B), the 

[[Page S617]]
     farm poundage quota shall be considered produced on a farm if--
       ``(i) the farm poundage quota was not produced on the farm 
     because of drought, flood, or any other natural disaster, or 
     any other condition beyond the control of the producer, as 
     determined by the Secretary;
       ``(ii) the farm poundage quota for the farm was released 
     voluntarily under paragraph (7) for only 1 of the 3 marketing 
     years immediately preceding the marketing year for which the 
     determination is being made; or
       ``(iii) the farm poundage quota was leased to another owner 
     or operator of a farm within the same county for transfer to 
     the farm for only 1 of the 3 marketing years immediately 
     preceding the marketing year for which the determination is 
     being made.
       ``(B) Marketing years.--For purposes of clauses (ii) and 
     (iii) of subparagraph (A)--
       ``(i) the farm poundage quota leased or transferred shall 
     be considered produced for only 1 of the 3 marketing years 
     immediately preceding the marketing year for which the 
     determination is being made; and
       ``(ii) the farm shall not be considered to have produced 
     for more than 1 marketing year out of the 3 immediately 
     preceding marketing years.
       ``(5) Quota permanently released.--Notwithstanding any 
     other provision of law--
       ``(A) the farm poundage quota established for a farm under 
     this subsection, or any part of the quota, may be permanently 
     released by the owner of the farm, or the operator with the 
     permission of the owner; and
       ``(B) the poundage quota for the farm for which the quota 
     is released shall be adjusted downward to reflect the quota 
     that is released.
       ``(6) Allocation of quotas reduced or released.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the total quantity of the farm poundage quotas reduced or 
     voluntarily released from farms in a State for any marketing 
     year under paragraphs (3) and (5) shall be allocated, as the 
     Secretary may by regulation prescribe, to other farms in the 
     State on which peanuts were produced in at least 2 of the 3 
     crop years immediately preceding the year for which the 
     allocation is being made.
       ``(B) Set-aside for farms with no quota.--The total amount 
     of farm poundage quota to be allocated in the State under 
     subparagraph (A) shall be allocated to farms in the State for 
     which no farm poundage quota was established for the crop of 
     the immediately preceding year. The allocation to any such 
     farm shall not exceed the average farm production of peanuts 
     for the 3 immediately preceding years during which peanuts 
     were produced on the farm. Any farm poundage quota remaining 
     after allocation to farms under this subparagraph shall be 
     allocated to farms in the State on which poundage quotas were 
     established for the crop of the immediately preceding year.
       ``(7) Quota temporarily released.--
       ``(A) In general.--The farm poundage quota, or any portion 
     of the quota, established for a farm for a marketing year may 
     be voluntarily released to the Secretary to the extent that 
     the quota, or any part of the quota, will not be produced on 
     the farm for the marketing year. Any farm poundage quota so 
     released in a State shall be allocated to other farms in the 
     State on such basis as the Secretary may by regulation 
     prescribe.
       ``(B) Effective period.--Except as otherwise provided in 
     this section, any adjustment in the farm poundage quota for a 
     farm under subparagraph (A) shall be effective only for the 
     marketing year for which the adjustment is made and shall not 
     be taken into consideration in establishing a farm poundage 
     quota for the farm from which the quota was released for any 
     subsequent marketing year.
       ``(c) Farm Yields.--
       ``(1) In general.--For each farm for which a farm poundage 
     quota is established under subsection (b), and when necessary 
     for purposes of this Act, a farm yield of peanuts shall be 
     determined for each such farm.
       ``(2) Quantity.--The yield shall be equal to the average of 
     the actual yield per acre on the farm for each of the 3 crop 
     years in which yields were highest on the farm during the 5-
     year period consisting of the 1973 through 1977 crop years.
       ``(3) Appraised yields.--If peanuts were not produced on 
     the farm in at least 3 years during the 5-year period or 
     there was a substantial change in the operation of the farm 
     during the period (including a change in operator, lessee who 
     is an operator, or irrigation practices), the Secretary shall 
     have a yield appraised for the farm. The appraised yield 
     shall be that quantity determined to be fair and reasonable 
     on the basis of yields established for similar farms that are 
     located in the area of the farm and on which peanuts were 
     produced, taking into consideration land, labor, and 
     equipment available for the production of peanuts, crop 
     rotation practices, soil and water, and other relevant 
     factors.
       ``(d) Referendum Respecting Poundage Quotas.--
       ``(1) In general.--Not later than December 15 of each 
     calendar year, the Secretary shall conduct a referendum of 
     producers engaged in the production of quota peanuts in the 
     calendar year in which the referendum is held to determine 
     whether the producers are in favor of or opposed to poundage 
     quotas with respect to the crops of peanuts produced in the 5 
     calendar years immediately following the year in which the 
     referendum is held, except that, if at least \2/3\ of the 
     producers voting in any referendum vote in favor of poundage 
     quotas, no referendum shall be held with respect to quotas 
     for the remaining years of the 5-calendar year period.
       ``(2) Proclamation.--The Secretary shall proclaim the 
     result of the referendum within 30 days after the date on 
     which the referendum is held.
       ``(3) Vote against quotas.--If more than \1/3\ of the 
     producers voting in the referendum vote against poundage 
     quotas, the Secretary shall proclaim that poundage quotas 
     will not be in effect with respect to the crop of peanuts 
     produced in the calendar year immediately following the 
     calendar year in which the referendum is held.
       ``(e) Definitions.--In this part and title I of the 
     Agricultural Act of 1949 (7 U.S.C. 1441 et seq.):
       ``(1) Additional peanuts.--The term `additional peanuts' 
     means, for any marketing year--
       ``(A) any peanuts that are marketed from a farm for which a 
     farm poundage quota has been established and that are in 
     excess of the marketings of quota peanuts from the farm for 
     the year; and
       ``(B) all peanuts marketed from a farm for which no farm 
     poundage quota has been established in accordance with 
     subsection (b).
       ``(2) Crush.--The term `crush' means the processing of 
     peanuts to extract oil for food uses and meal for feed uses, 
     or the processing of peanuts by crushing or otherwise when 
     authorized by the Secretary.
       ``(3) Domestic edible use.--The term `domestic edible use' 
     means use for milling to produce domestic food peanuts (other 
     than a use described in paragraph (2)) and seed and use on a 
     farm, except that the Secretary may exempt from this 
     paragraph seeds of peanuts that are used to produce peanuts 
     excluded under section 358d(c), are unique strains, and are 
     not commercially available.
       ``(4) Quota peanuts.--The term `quota peanuts' means, for 
     any marketing year, any peanuts produced on a farm having a 
     farm poundage quota, as determined under subsection (b), 
     that--
       ``(A) are eligible for domestic edible use as determined by 
     the Secretary;
       ``(B) are marketed or considered marketed from a farm; and
       ``(C) do not exceed the farm poundage quota of the farm for 
     the year.
       ``(f) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of peanuts.''.

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

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

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

       ``(a) In General.--
       ``(1) Authority.--
       ``(A) In general.--Subject to such terms, conditions, or 
     limitations as the Secretary may prescribe, the owner, or 
     operator with the permission of the owner, of any farm for 
     which a farm poundage quota has been established under this 
     Act may sell or lease all or any part of the poundage quota 
     to any other owner or operator of a farm within the same 
     county for transfer to the farm, except that any such lease 
     of poundage quota may be entered into in the fall or after 
     the normal planting season--
       ``(i) if not less than 90 percent of the basic quota 
     (consisting of the farm quota and temporary quota transfers), 
     plus any poundage quota transferred to the farm under this 
     subsection, has been planted or considered planted on the 
     farm from which the quota is to be leased; and
       ``(ii) under such terms and conditions as the Secretary may 
     by regulation prescribe.
       ``(B) Fall transfers.--
       ``(i) No transfer authorization.--In the case of a fall 
     transfer or a transfer after the normal planting season by a 
     cash lessee, the landowner shall not be required to sign the 
     transfer authorization.
       ``(ii) Time limitation.--A fall transfer or a transfer 
     after the normal planting season may be made not later than 
     72 hours after the peanuts that are the subject of the 
     transfer are inspected and graded.
       ``(iii) Lessees.--In the case of a fall transfer, poundage 
     quota from a farm may be leased to an owner or operator of 
     another farm within the same county or to an owner or 
     operator of another farm in any other county within the 
     State.
       ``(iv) Effect of transfer.--A fall transfer of poundage 
     quota shall not affect the farm quota history for the 
     transferring or receiving farm and shall not result in the 
     reduction of the farm poundage quota on the transferring 
     farm.
       ``(2) Transfers to other self-owned farms.--The owner or 
     operator of a farm may transfer all or any part of the farm 
     poundage quota for the farm to any other farm owned or 
     controlled by the owner or operator that is in the same State 
     and that had a farm poundage quota for the crop of the 
     preceding year, if both the transferring and receiving farms 
     were under the control of the owner or operator for at least 
     3 crop years prior to the crop year in which the farm 
     poundage quota is to be transferred. Any farm poundage quota 
     transferred under this paragraph shall not result in any 
     reduction in the farm poundage quota for the transferring 
     farm if sufficient acreage is planted on 

[[Page S618]]
     the receiving farm to produce the quota pounds transferred.
       ``(3) Transfers in states with small quotas.--In the case 
     of any State for which the poundage quota allocated to the 
     State was less than 10,000 tons for the crop of the preceding 
     year, all or any part of a farm poundage quota may be 
     transferred by sale or lease or otherwise from a farm in 1 
     county to a farm in another county in the same State.
       ``(4) Transfers by sale in states having quotas of 10,000 
     tons or more.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph and such terms and conditions as the Secretary may 
     prescribe, the owner, or operator with the permission of the 
     owner, of any farm for which a farm quota has been 
     established under this Act in a State having a poundage quota 
     of 10,000 tons or more may sell poundage quota to any other 
     eligible owner or operator of a farm within the same State.
       ``(B) Limitations based on total poundage quota.--
       ``(i) 1996 marketing year.--Not more than 15 percent of the 
     total poundage quota within a county as of January 1, 1996, 
     may be sold and transferred under this paragraph during the 
     1996 marketing year.
       ``(ii) 1997-2002 marketing years.--

       ``(I) In general.--Except as provided in subclause (II), 
     not more than 5 percent of the quota pounds remaining in a 
     county as of January 1, 1997, and each January 1 thereafter 
     through January 1, 2002, may be sold and transferred under 
     this paragraph during the applicable marketing year.
       ``(II) Carryover.--Any eligible quota that is not sold or 
     transferred under clause (i) shall be eligible for sale or 
     transfer under subclause (I).

       ``(C) County limitation.--Not more than 40 percent of the 
     total poundage quota within a county may be sold and 
     transferred under this paragraph.
       ``(D) Subsequent leases or sales.--Quota pounds sold and 
     transferred to a farm under this paragraph may not be leased 
     or sold by the farm to another owner or operator of a farm 
     within the same State for a period of 5 years following 
     the date of the original transfer to the farm.
       ``(E) Application.--This paragraph shall not apply to a 
     sale within the same county or to any sale, lease, or 
     transfer described in paragraph (1).
       ``(b) Conditions.--Transfers (including transfer by sale or 
     lease) of farm poundage quotas under this section shall be 
     subject to all of the following conditions:
       ``(1) Lienholders.--No transfer of the farm poundage quota 
     from a farm subject to a mortgage or other lien shall be 
     permitted unless the transfer is agreed to by the 
     lienholders.
       ``(2) Tillable cropland.--No transfer of the farm poundage 
     quota shall be permitted if the county committee established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) determines that the 
     receiving farm does not have adequate tillable cropland to 
     produce the farm poundage quota.
       ``(3) Record.--No transfer of the farm poundage quota shall 
     be effective until a record of the transfer is filed with the 
     county committee of each county to, and from, which the 
     transfer is made and each committee determines that the 
     transfer complies with this section.
       ``(4) Other terms.--The Secretary may establish by 
     regulation other terms and conditions.
       ``(c) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2000 crops of peanuts.''.

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

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

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

       ``(a) Marketing Penalties.--
       ``(1) In general.--
       ``(A) Marketing peanuts in excess of quota.--The marketing 
     of any peanuts for domestic edible use in excess of the farm 
     poundage quota for the farm on which the peanuts are produced 
     shall be subject to a penalty at a rate equal to 140 percent 
     of the support price for quota peanuts for the marketing year 
     in which the marketing occurs. The penalty shall not apply to 
     the marketing of breeder or Foundation seed peanuts grown and 
     marketed by a publicly owned agricultural experiment station 
     (including a State operated seed organization) under such 
     regulations as the Secretary may prescribe.
       ``(B) Marketing year.--For purposes of this section, the 
     marketing year for peanuts shall be the 12-month period 
     beginning August 1 and ending July 31.
       ``(C) Marketing additional peanuts.--The marketing of any 
     additional peanuts from a farm shall be subject to the same 
     penalty as the penalty prescribed in subparagraph (A) unless 
     the peanuts, in accordance with regulations established by 
     the Secretary, are--
       ``(i) placed under loan at the additional loan rate in 
     effect for the peanuts under section 108B of the Agricultural 
     Act of 1949 (7 U.S.C. 1445c-3) and not redeemed by the 
     producers;
       ``(ii) marketed through an area marketing association 
     designated pursuant to section 108B(c)(1) of the Agricultural 
     Act of 1949; or
       ``(iii) marketed under contracts between handlers and 
     producers pursuant to subsection (f).
       ``(2) Payer.--The penalty shall be paid by the person who 
     buys or otherwise acquires the peanuts from the producer or, 
     if the peanuts are marketed by the producer through an agent, 
     the penalty shall be paid by the agent. The person or agent 
     may deduct an amount equivalent to the penalty from the price 
     paid to the producer.
       ``(3) Failure to collect.--If the person required to 
     collect the penalty fails to collect the penalty, the person 
     and all persons entitled to share in the peanuts marketed 
     from the farm or the proceeds of the marketing shall be 
     jointly and severally liable with the persons who failed to 
     collect the penalty for the amount of the penalty.
       ``(4) Application of quota.--Peanuts produced in a calendar 
     year in which farm poundage quotas are in effect for the 
     marketing year beginning in the calendar year shall be 
     subject to the quotas even though the peanuts are marketed 
     prior to the date on which the marketing year begins.
       ``(5) False information.--If any producer falsely 
     identifies, fails to accurately certify planted acres, or 
     fails to account for the disposition of any peanuts produced 
     on the planted acres, a quantity of peanuts equal to the 
     greater of the average or actual yield of the farm, as 
     determined by the Secretary, multiplied by the number of 
     planted acres, shall be deemed to have been marketed in 
     violation of permissible uses of quota and additional 
     peanuts. Any penalty payable under this paragraph shall be 
     paid and remitted by the producer.
       ``(6) Unintentional violations.--The Secretary shall 
     authorize, under such regulations as the Secretary shall 
     issue, the county committees established under section 8(b) 
     of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(b)) to waive or reduce marketing penalties 
     provided for under this subsection in cases with respect to 
     which the committees determine that the violations that were 
     the basis of the penalties were unintentional or without 
     knowledge on the part of the parties concerned.
       ``(7) De minimis violations.--An error in weight that does 
     not exceed \1/10\ of 1 percent in the case of any 1 marketing 
     document shall not be considered to be a marketing violation 
     except in a case of fraud or conspiracy.
       ``(b) Use of Quota and Additional Peanuts.--
       ``(1) Quota peanuts.--Only quota peanuts may be retained 
     for use as seed or for other uses on a farm. When peanuts are 
     so retained, the retention shall be considered as marketings 
     of quota peanuts, except that the Secretary may exempt from 
     consideration as marketings of quota peanuts seeds of peanuts 
     for the quantity involved that are used to produce peanuts 
     excluded under section 358d(c), are unique strains, and are 
     not commercially available.
       ``(2) Additional peanuts.--Additional peanuts shall not be 
     retained for use on a farm and shall not be marketed for 
     domestic edible use, except as provided in subsection (g).
       ``(3) Seed.--Except as provided in paragraph (1), seed for 
     planting of any peanut acreage in the United States shall be 
     obtained solely from quota peanuts marketed or considered 
     marketed for domestic edible use.
       ``(c) Marketing Peanuts With Excess Quantity, Grade, or 
     Quality.--On a finding by the Secretary that the peanuts 
     marketed from any crop for domestic edible use by a handler 
     are larger in quantity or higher in grade or quality than the 
     peanuts that could reasonably be produced from the quantity 
     of peanuts having the grade, kernel content, and quality of 
     the quota peanuts acquired by the handler from the crop for 
     the marketing year, the handler shall be subject to a penalty 
     equal to 140 percent of the loan level for quota peanuts on 
     the quantity of peanuts that the Secretary determines are in 
     excess of the quantity, grade, or quality of the peanuts that 
     could reasonably have been produced from the peanuts so 
     acquired.
       ``(d) Handling and Disposal of Additional Peanuts.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall require that the handling and disposal of 
     additional peanuts be supervised by agents of the Secretary 
     or by area marketing associations designated pursuant to 
     section 108B(c)(1) of the Agricultural Act of 1949 (7 U.S.C. 
     1445c-3(c)(1)).
       ``(2) Nonsupervision of handlers.--
       ``(A) In general.--Supervision of the handling and disposal 
     of additional peanuts by a handler shall not be required 
     under paragraph (1) if the handler agrees in writing, prior 
     to any handling or disposal of the peanuts, to comply with 
     regulations that the Secretary shall issue.
       ``(B) Regulations.--The regulations issued by the Secretary 
     under subparagraph (A) shall include the following 
     provisions:
       ``(i) Types of exported or crushed peanuts.--Handlers of 
     shelled or milled peanuts may export or crush peanuts 
     classified by type in each of the following quantities:

       ``(I) Sound split kernel peanuts.--Sound split kernel 
     peanuts purchased by the handler as additional peanuts to 
     which, under price support loan schedules, a mandated 
     deduction with respect to the price paid to the producer of 
     the peanuts would be applied due to the percentage of the 
     sound splits.
       ``(II) Sound mature kernel peanuts.--Sound mature kernel 
     peanuts (which term includes sound split kernel peanuts and 
     sound whole kernel peanuts) in an amount 

[[Page S619]]
     equal to the poundage of the peanuts purchased by the handler as 
     additional peanuts, less the total poundage of sound split 
     kernel peanuts described in subclause (I).
       ``(III) Remainder.--The remaining quantity of total kernel 
     content of peanuts purchased by the handler as additional 
     peanuts.

       ``(ii) Documentation.--Handlers shall ensure that any 
     additional peanuts exported or crushed are evidenced by 
     onboard bills of lading or other appropriate documentation as 
     may be required by the Secretary, or both.
       ``(iii) Loss of peanuts.--If a handler suffers a loss of 
     peanuts as a result of fire, flood, or any other condition 
     beyond the control of the handler, the portion of the loss 
     allocated to contracted additional peanuts shall not be 
     greater than the portion of the total peanut purchases of the 
     handler for the year attributable to contracted additional 
     peanuts purchased for export or crushing by the handler 
     during the year.
       ``(iv) Shrinkage allowance.--

       ``(I) In general.--The obligation of a handler to export or 
     crush peanuts in quantities described in this subparagraph 
     shall be reduced by a shrinkage allowance, to be determined 
     by the Secretary, to reflect actual dollar value shrinkage 
     experienced by handlers in commercial operations, except that 
     the allowance shall not be less than 4 percent, except as 
     provided in subclause (II).
       ``(II) Common industry practices.--The Secretary may 
     provide a lower shrinkage allowance for a handler who fails 
     to comply with restrictions on the use of peanuts, as may be 
     specified by the Commodity Credit Corporation, to take into 
     account common industry practices.

       ``(3) Adequate finances and facilities.--A handler shall 
     submit to the Secretary adequate financial guarantees, as 
     well as evidence of adequate facilities and assets, with 
     respect to the facilities under the control and operation of 
     the handler, to ensure the compliance of the handler with the 
     obligation to export peanuts.
       ``(4) Commingling of like peanuts.--Quota and additional 
     peanuts of like type and segregation or quality may, under 
     regulations issued by the Secretary, be commingled and 
     exchanged on a dollar value basis to facilitate warehousing, 
     handling, and marketing.
       ``(5) Penalty.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the failure by a handler to comply with regulations issued by 
     the Secretary governing the disposition and handling of 
     additional peanuts shall subject the handler to a penalty at 
     a rate equal to 140 percent of the loan level for quota 
     peanuts on the quantity of peanuts involved in the violation.
       ``(B) Nondelivery.--A handler shall not be subject to a 
     penalty for failure to export additional peanuts if the 
     peanuts were not delivered to the handler.
       ``(6) Reentry of exported peanuts.--
       ``(A) Penalty.--If any additional peanuts or peanut 
     products exported by a handler are reentered into the United 
     States in commercial quantities as determined by the 
     Secretary, the importer of the peanuts and peanut products 
     shall be subject to a penalty at a rate equal to 140 percent 
     of the loan level for quota peanuts on the quantity of 
     peanuts reentered.
       ``(B) Records.--Each person, firm, or handler who imports 
     peanuts into the United States shall maintain such records 
     and documents as are required by the Secretary to ensure 
     compliance with this subsection.
       ``(e) Special Export Credits.--
       ``(1) In general.--The Secretary shall, with due regard for 
     the integrity of the peanut program, promulgate regulations 
     that will permit any handler of peanuts who manufactures 
     peanut products from domestic edible peanuts to export the 
     products and receive credit for the fulfillment of export 
     obligations for the peanut content of the products against 
     which export credit the handler may subsequently apply, up to 
     the amount of the credit, equivalent quantities of additional 
     peanuts of the same type acquired by the handler and used in 
     the domestic edible market. The peanuts so acquired for the 
     domestic edible market as provided in this subsection shall 
     be of the same crop year as the peanuts used in the 
     manufacture of the products so exported.
       ``(2) Certification.--Under the regulations, the Secretary 
     shall require all handlers who are peanut product 
     manufacturers to submit annual certifications of peanut 
     product content on a product-by-product basis. Any changes in 
     peanut product formulas as affecting peanut content shall be 
     recorded within 90 days after the changes. The Secretary 
     shall conduct an annual review of the certifications. The 
     Secretary shall pursue all available remedies with respect to 
     persons who fail to comply with this paragraph.
       ``(3) Records.--The Secretary shall require handlers who 
     are peanut product manufacturers to maintain and provide such 
     documents as are necessary to ensure compliance with this 
     subsection and to maintain the integrity of the peanut 
     program.
       ``(f) Contracts for Purchase of Additional Peanuts.--
       ``(1) In general.--A handler may, under such regulations as 
     the Secretary may issue, contract with a producer for the 
     purchase of additional peanuts for crushing or export, or 
     both.
       ``(2) Submission to secretary.--
       ``(A) Contract deadline.--Any such contract shall be 
     completed and submitted to the Secretary (or if designated by 
     the Secretary, the area marketing association) for approval 
     not later than September 15 of the year in which the crop is 
     produced.
       ``(B) Extension of deadline.--The Secretary may extend the 
     deadline under subparagraph (A) by up to 15 days in response 
     to damaging weather or related condition (as defined in 
     section 112 of the Disaster Assistance Act of 1989 (Public 
     Law 101-82; 7 U.S.C. 1421 note)). The Secretary shall 
     announce the extension not later than September 5 of the year 
     in which the crop is produced.
       ``(3) Form.--The contract shall be executed on a form 
     prescribed by the Secretary. The form shall require such 
     information as the Secretary determines appropriate to ensure 
     the proper handling of the additional peanuts, including the 
     identity of the contracting parties, poundage and category of 
     the peanuts, the disclosure of any liens, and the intended 
     disposition of the peanuts.
       ``(4) Information for handling and processing additional 
     peanuts.--Notwithstanding any other provision of this 
     section, any person wishing to handle and process additional 
     peanuts as a handler shall submit to the Secretary (or if 
     designated by the Secretary, the area marketing association), 
     such information as may be required under subsection (d) by 
     such date as is prescribed by the Secretary so as to permit 
     final action to be taken on the application by July 1 of each 
     marketing year.
       ``(5) Terms.--Each such contract shall contain the final 
     price to be paid by the handler for the peanuts involved and 
     a specific prohibition against the disposition of the peanuts 
     for domestic edible or seed use.
       ``(6) Suspension of restrictions on imported peanuts.--
     Notwithstanding any other provision of this Act, if the 
     President issues a proclamation under section 404(b) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3601(b)) expanding 
     the quantity of peanuts subject to the in-quota rate of duty 
     under a tariff-rate quota, or under section 22 of the 
     Agricultural Adjustment Act (7 U.S.C. 624), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, temporarily suspending restrictions on the importation 
     of peanuts, the Secretary shall, subject to such terms and 
     conditions as the Secretary may prescribe, permit a handler, 
     with the written consent of the producer, to purchase 
     additional peanuts from any producer who contracted with the 
     handler and to offer the peanuts for sale for domestic edible 
     use.
       ``(g) Marketing of Peanuts Owned or Controlled by the 
     Commodity Credit Corporation.--
       ``(1) In general.--Subject to section 407 of the 
     Agricultural Act of 1949 (7 U.S.C. 1427), any peanuts owned 
     or controlled by the Commodity Credit Corporation may be made 
     available for domestic edible use, in accordance with 
     regulations issued by the Secretary, so long as doing so does 
     not result in substantially increased cost to the Commodity 
     Credit Corporation. Additional peanuts received under loan 
     shall be offered for sale for domestic edible use at prices 
     that are not less than the prices that are required to cover 
     all costs incurred with respect to the peanuts for such items 
     as inspection, warehousing, shrinkage, and other expenses, 
     plus--
       ``(A) not less than 100 percent of the loan value of quota 
     peanuts if the additional peanuts are sold and paid for 
     during the harvest season on delivery by and with the written 
     consent of the producer;
       ``(B) not less than 105 percent of the loan value of quota 
     peanuts if the additional peanuts are sold after delivery by 
     the producer but not later than December 31 of the marketing 
     year; or
       ``(C) not less than 107 percent of the loan value of quota 
     peanuts if the additional peanuts are sold later than 
     December 31 of the marketing year.
       ``(2) Acceptance of bids by area marketing associations.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     for the period from the date additional peanuts are delivered 
     for loan to March 1 of the calendar year following the year 
     in which the additional peanuts were harvested, the area 
     marketing association designated pursuant to section 
     108B(c)(1) of the Agricultural Act of 1949 (7 U.S.C. 1445c-
     3(c)(1)) shall have sole authority to accept or reject lot 
     list bids when the sales price, as determined under this 
     subsection, equals or exceeds the minimum price at which the 
     Commodity Credit Corporation may sell the stocks of 
     additional peanuts of the Corporation.
       ``(B) Modification.--The area marketing association and the 
     Commodity Credit Corporation may agree to modify the 
     authority granted by subparagraph (A) to facilitate the 
     orderly marketing of additional peanuts.
       ``(3) Producer marketing and expenses.--Notwithstanding any 
     other provision of this Act, the Secretary shall, in any 
     determination required under subsections (a)(2) and (b)(1) of 
     section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-
     3), include any additional marketing expenses required by 
     law, excluding the amount of any assessment required under 
     section 108B(g) of the Agricultural Act of 1949 (7 U.S.C. 
     1445c-3(g)).
       ``(h) Administration.--
       ``(1) Interest.--The person liable for payment or 
     collection of any penalty provided for in this section shall 
     be liable also for interest on the penalty at a rate per 
     annum equal to the rate per annum of interest that was 
     charged the Commodity Credit Corporation by the Treasury of 
     the United States on the date the penalty became due.
     
[[Page S620]]

       ``(2) De minimis quantity.--This section shall not apply to 
     peanuts produced on any farm on which the acreage harvested 
     for peanuts is 1 acre or less if the producers who share in 
     the peanuts produced on the farm do not share in the peanuts 
     produced on any other farm.
       ``(3) Liens.--Until the amount of the penalty provided by 
     this section is paid, a lien on the crop of peanuts with 
     respect to which the penalty is incurred, and on any 
     subsequent crop of peanuts subject to farm poundage quotas in 
     which the person liable for payment of the penalty has an 
     interest, shall be in effect in favor of the United States.
       ``(4) Penalties.--
       ``(A) Procedures.--Notwithstanding any other provision of 
     law, the liability for and the amount of any penalty assessed 
     under this section shall be determined in accordance with 
     such procedures as the Secretary may by regulation prescribe. 
     The facts constituting the basis for determining the 
     liability for or amount of any penalty assessed under this 
     section, when officially determined in conformity with the 
     applicable regulations prescribed by the Secretary, shall be 
     final and conclusive and shall not be reviewable by any other 
     officer or agency of the Federal Government.
       ``(B) Judicial review.--Nothing in this section prohibits 
     any court of competent jurisdiction from reviewing any 
     determination made by the Secretary with respect to whether 
     the determination was made in conformity with applicable law.
       ``(C) Civil penalties.--All penalties imposed under this 
     section shall for all purposes be considered civil penalties.
       ``(5) Reduction of penalties.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and notwithstanding any other provision of law, the Secretary 
     may reduce the amount of any penalty assessed against 
     handlers under this section by any appropriate amount, 
     including, in an appropriate case, eliminating the penalty 
     entirely, if the Secretary finds that the violation on which 
     the penalty is based was minor or inadvertent, and that the 
     reduction of the penalty will not impair the operation of the 
     peanut program.
       ``(B) Failure to export contracted additional peanuts.--The 
     amount of any penalty imposed on a handler under this section 
     that resulted from the failure to export or crush contracted 
     additional peanuts shall not be reduced by the Secretary.
       ``(i) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of peanuts.''.

     SEC. 605. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.

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

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

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

     SEC. 606. PRICE SUPPORT PROGRAM.

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

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

       ``(a) Quota Peanuts.--
       ``(1) In general.--The Secretary shall make price support 
     available to producers through loans, purchases, and other 
     operations on quota peanuts for each of the 1996 through 2002 
     crops.
       ``(2) Support rates.--
       ``(A) In general.--Subject to subparagraph (B), the 
     national average quota support rate for each of the 1996 
     through 2002 crops of quota peanuts shall be the national 
     average quota support rate for the immediately preceding 
     crop, adjusted to reflect any increase or decrease, during 
     the calendar year immediately preceding the marketing year 
     for the crop for which a level of support is being 
     determined, in the national average cost of peanut 
     production, excluding any change in the cost of land and the 
     cost of any assessments required under subsection (g).
       ``(B) Maximum rate.--In no event shall the national average 
     quota support rate for any such crop be increased or 
     decreased by more than 5 percent of the national average 
     quota support rate for the preceding crop.
       ``(3) Inspection, handling, or storage.--The level of 
     support determined under paragraph (2) shall not be reduced 
     by any deduction for inspection, handling, or storage.
       ``(4) Location and other factors.--The Secretary may make 
     adjustments for location of peanuts and such other factors as 
     are authorized by section 403.
       ``(5) Announcement.--The Secretary shall announce the level 
     of support for quota peanuts of each crop not later than the 
     February 15 preceding the marketing year for the crop for 
     which the level of support is being determined.
       ``(b) Additional Peanuts.--
       ``(1) In general.--The Secretary shall make price support 
     available to producers through loans, purchases, or other 
     operations on additional peanuts for each of the 1996 through 
     2002 crops at such levels as the Secretary considers 
     appropriate, taking into consideration the demand for peanut 
     oil and peanut meal, expected prices of other vegetable oils 
     and protein meals, and the demand for peanuts in foreign 
     markets, except that the Secretary shall set the support rate 
     on additional peanuts at a level estimated by the Secretary 
     to ensure that there are no losses to the Commodity Credit 
     Corporation on the sale or disposal of the peanuts.
       ``(2) Announcement.--The Secretary shall announce the level 
     of support for additional peanuts of each crop not later than 
     the February 15 preceding the marketing year for the crop for 
     which the level of support is being determined.
       ``(c) Area Marketing Associations.--
       ``(1) Warehouse storage loans.--
       ``(A) In general.--In carrying out subsections (a) and (b), 
     the Secretary shall make warehouse storage loans available in 
     each of the 3 producing areas described in section 1446.95 of 
     title 7, Code of Federal Regulations (as of January 1, 1989), 
     to a designated area marketing association of peanut 
     producers that is selected and approved by the Secretary and 
     that is operated primarily for the purpose of conducting the 
     loan activities. The Secretary may not make warehouse storage 
     loans available to any cooperative that is engaged in 
     operations or activities concerning peanuts other than those 
     operations and activities specified in this section and 
     sections 358d and 358e of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1359 and 1359a).
       ``(B) Administrative and supervisory activities.--The area 
     marketing associations shall be used in administrative and 
     supervisory activities relating to price support and 
     marketing activities under this section and sections 358d and 
     358e of the Agricultural Adjustment Act of 1938.
       ``(C) Association costs.--Loans made to an area marketing 
     association under this paragraph shall include, in addition 
     to the price support value of the peanuts, such costs as the 
     association reasonably may incur in carrying out the 
     responsibilities, operations, and activities of the 
     association under this section and sections 358d and 358e of 
     the Agricultural Adjustment Act of 1938.
       ``(2) Pools for quota and additional peanuts.--
       ``(A) In general.--The Secretary shall require that each 
     area marketing association establish pools and maintain 
     complete and accurate records by area and segregation for 
     quota peanuts handled under loan and for additional peanuts 
     placed under loan, except that separate pools shall be 
     established for Valencia peanuts produced in New Mexico. 
     Peanuts produced outside New Mexico shall not be eligible for 
     entry into or participation in the separate pools established 
     for Valencia peanuts produced in New Mexico. Bright hull and 
     dark hull Valencia peanuts shall be considered as separate 
     types for the purpose of establishing the pools.
       ``(B) Net gains.--Net gains on peanuts in each pool, unless 
     otherwise approved by the Secretary, shall be distributed 
     only to producers who placed peanuts in the pool and shall be 
     distributed in proportion to the value of the peanuts placed 
     in the pool by each producer. Net gains for peanuts in each 
     pool shall consist of the following:
       ``(i) Quota peanuts.--For quota peanuts, the net gains over 
     and above the loan indebtedness and other costs or losses 
     incurred on peanuts placed in the pool plus an amount from 
     all additional pool gains equal to any loss on disposition of 
     all peanuts in the pool for quota peanuts.
       ``(ii) Additional peanuts.--For additional peanuts, the net 
     gains over and above the loan indebtedness and other costs or 
     losses incurred on peanuts placed in the pool for additional 
     peanuts less any amount allocated to offset any loss on 
     the pool for quota peanuts as provided in clause (i).
       ``(d) Losses.--Notwithstanding any other provision of this 
     section:
       ``(1) Quota peanuts placed under loan.--Any distribution of 
     net gains on additional peanuts (other than net gains on 
     additional peanuts in separate type pools established under 
     subsection (c)(2)(A) for Valencia peanuts produced in New 
     Mexico) shall be first reduced to the extent of any loss by 
     the Commodity Credit Corporation on quota peanuts placed 
     under loan.
       ``(2) Quota loan pools.--
       ``(A) Transfers from additional loan pools.--The proceeds 
     due any producer from any pool shall be reduced by the amount 
     of any loss that is incurred with respect to peanuts 
     transferred from an additional loan pool to a quota loan pool 
     by the producer under 

[[Page S621]]
     section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1358-1(b)(8)).
       ``(B) Other losses.--Losses in area quota pools shall be 
     offset by reducing the gain of any producer in the pool by 
     the amount of pool gains attributed to the producer from the 
     sale of additional peanuts for domestic and export edible 
     use.
       ``(e) Disapproval of Quotas.--Notwithstanding any other 
     provision of law, no price support may be made available by 
     the Secretary for any crop of peanuts with respect to which 
     poundage quotas have been disapproved by producers, as 
     provided for in section 358-1(d) of the Agricultural 
     Adjustment Act of 1938.
       ``(f) Quality Improvement.--
       ``(1) Price support peanuts.--With respect to peanuts under 
     price support loan, the Secretary shall--
       ``(A) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts at a lesser risk of 
     deterioration;
       ``(B) ensure that all Commodity Credit Corporation loan 
     stocks of peanuts sold for domestic edible use are shown to 
     have been officially inspected by licensed Department of 
     Agriculture inspectors both as farmer stock and shelled or 
     cleaned in-shell peanuts;
       ``(C) continue to endeavor to operate the peanut price 
     support program so as to improve the quality of domestic 
     peanuts and ensure the coordination of activities under the 
     Peanut Administrative Committee established under Marketing 
     Agreement No. 146, regulating the quality of domestically 
     produced peanuts (under the Agricultural Adjustment Act (7 
     U.S.C. 601 et seq.), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937); and
       ``(D) ensure that any changes made in the price support 
     program as a result of this subsection requiring additional 
     production or handling at the farm level are reflected as an 
     upward adjustment in the Department of Agriculture loan 
     schedule.
       ``(2) Exports and other peanuts.--The Secretary shall 
     require that all peanuts, including peanuts imported into the 
     United States, meet all United States quality standards under 
     Marketing Agreement No. 146 and that importers of the peanuts 
     fully comply with inspection, handling, storage, and 
     processing requirements implemented under Marketing Agreement 
     No. 146. The Secretary shall ensure that peanuts produced for 
     the export market meet quality, inspection, handling, 
     storage, and processing requirements under Marketing 
     Agreement No. 146.
       ``(g) Marketing Assessment.--
       ``(1) In general.--The Secretary shall provide, by 
     regulation, for a nonrefundable marketing assessment 
     applicable to each of the 1996 through 2002 crops of peanuts. 
     The assessment shall be made in accordance with this 
     subsection and shall be on a per pound basis in an amount 
     equal to 1.2 percent of the national average quota or 
     additional peanut support rate per pound, as applicable, for 
     the applicable crop. No peanuts shall be assessed more than 
     1.2 percent of the applicable support rate under this 
     subsection.
       ``(2) First purchasers.--
       ``(A) In general.--Except as provided under paragraphs (3) 
     and (4), the first purchaser of peanuts shall--
       ``(i) collect from the producer a marketing assessment 
     equal to the quantity of peanuts acquired multiplied by .65 
     percent of the applicable national average support rate;
       ``(ii) pay, in addition to the amount collected under 
     clause (i), a marketing assessment in an amount equal to the 
     quantity of peanuts acquired multiplied by .55 percent of the 
     applicable national average support rate; and
       ``(iii) remit the amounts required under clauses (i) and 
     (ii) to the Commodity Credit Corporation in a manner 
     specified by the Secretary.
       ``(B) Definition.--In this subsection, the term `first 
     purchaser' means a person acquiring peanuts from a producer, 
     except that in the case of peanuts forfeited by a producer to 
     the Commodity Credit Corporation, the term means the person 
     acquiring the peanuts from the Commodity Credit Corporation.
       ``(3) Other private marketings.--In the case of a private 
     marketing by a producer directly to a consumer through a 
     retail or wholesale outlet or in the case of a marketing by 
     the producer outside of the continental United States, the 
     producer shall be responsible for the full amount of the 
     assessment and shall remit the assessment by such time as is 
     specified by the Secretary.
       ``(4) Loan peanuts.--In the case of peanuts that are 
     pledged as collateral for a price support loan made under 
     this section, \1/2\ of the assessment shall be deducted from 
     the proceeds of the loan. The remainder of the assessment 
     shall be paid by the first purchaser of the peanuts. For the 
     purposes of computing net gains on peanuts under this 
     section, the reduction in loan proceeds shall be treated as 
     having been paid to the producer.
       ``(5) Penalties.--If any person fails to collect or remit 
     the reduction required by this subsection or fails to comply 
     with such requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this subsection, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       ``(A) the quantity of peanuts involved in the violation; by
       ``(B) the national average quota peanut price support level 
     for the applicable crop year.
       ``(6) Enforcement.--The Secretary may enforce this 
     subsection in the courts of the United States.
       ``(h) Crops.--Notwithstanding any other provision of law, 
     this section shall be effective only for the 1996 through 
     2002 crops of peanuts.''.

     SEC. 607. REPORTS AND RECORDS.

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

     SEC. 608. SUSPENSION OF CERTAIN PRICE SUPPORT PROVISIONS.

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

     SEC. 609. REGULATIONS.

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

     SEC. 701. SUGAR PRICE SUPPORT.

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

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

       ``(a) In General.--The price of each of the 1996 through 
     2002 crops of sugar beets and sugarcane, respectively, shall 
     be supported in accordance with this section.
       ``(b) Sugarcane.--The Secretary shall support the price of 
     domestically grown sugarcane through nonrecourse loans at 18 
     cents per pound for raw cane sugar.
       ``(c) Sugar Beets.--The Secretary shall support the price 
     of domestically grown sugar beets through nonrecourse loans 
     at the basic loan rate level established by the Secretary for 
     the 1994 crop of sugar beets.
       ``(d) Adjustment in Support Price.--The Secretary may 
     increase the support price for each of the 1997 through 2002 
     crops of domestically grown sugarcane and sugar beets from 
     the price determined for the preceding crop based on such 
     factors as the Secretary determines appropriate, including 
     changes (during the 2 crop years immediately preceding the 
     crop year for which the determination is made) in the cost of 
     sugar products, the cost of domestic sugar production, and 
     other circumstances that may adversely affect domestic sugar 
     production.
       ``(e) Announcements.--The Secretary shall announce the 
     basic loan rates for cane sugar and beet sugar to be 
     applicable during any fiscal year under this section as far 
     in advance of the beginning of the fiscal year as is 
     practicable consistent with this section.
       ``(f) Term.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     subsection (g), loans under this section during any fiscal 
     year shall be made available not earlier than the beginning 
     of the fiscal year and shall mature at the end of 3 months.
       ``(2) Extension.--At the option of the borrower, on 
     furnishing written notice to the Commodity Credit 
     Corporation, the maturity of a loan may be extended for 2 
     additional 3-month periods, except that the maturity may not 
     be extended beyond the end of the fiscal year subsequent to 
     the fiscal year in which the loan is made.
       ``(g) Supplementary Nonrecourse Loans.--
       ``(1) In general.--The Secretary shall make available to 
     eligible processors price support loans with respect to sugar 
     processed from sugarcane and sugar beets harvested in the 
     last 3 months of a fiscal year.
       ``(2) Term.--Except as provided in paragraph (4), a loan 
     made under paragraph (1) shall mature at the end of the 
     fiscal year.
       ``(3) Repledging sugar.--The processor may repledge the 
     sugar as collateral for a price support loan in the 
     subsequent fiscal year, except that the second loan shall--
       ``(A) be made at the loan rate in effect at the time the 
     second loan is made; and
       ``(B) mature in 3 months.
       ``(4) Extension.--At the option of the borrower, on 
     furnishing written notice to the Commodity Credit 
     Corporation, the maturity of a loan may be extended for 2 
     additional 3-month periods, except that the total term of the 
     loan may not be greater than 9 months.
       ``(h) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this section.
       ``(i) Marketing Assessment.--
       ``(1) Tier 1 assessment.--
       ``(A) Sugarcane.--Effective only for marketings of raw cane 
     sugar during fiscal years 1997 through 2003, the first 
     processor of sugarcane shall remit to the Commodity Credit 
     Corporation a nonrefundable marketing assessment in an amount 
     equal to 1.1 percent of the loan level established under 
     subsection (b) per pound of raw cane sugar (but not more than 
     .198 cents per pound of raw cane sugar) processed by the 
     processor from domestically produced sugarcane or sugarcane 
     molasses that has been marketed (including the transfer or 
     delivery of the sugar to a refinery for further processing or 
     marketing). The assessment shall be payable on 

[[Page S622]]
     marketings within the base of the processor, as established by the 
     Secretary under section 359b of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359bb).
       ``(B) Sugar beets.--
       ``(i) In general.--Effective only for marketings of beet 
     sugar during fiscal years 1997 through 2003, the first 
     processor of sugar beets shall remit to the Commodity Credit 
     Corporation a nonrefundable marketing assessment in an amount 
     equal to 1.1794 percent of the loan level established under 
     subsection (b) per pound of beet sugar (but not more than 
     .2123 cents per pound of beet sugar), processed by the 
     processor from domestically produced sugar beets or sugar 
     beet molasses, that has been marketed.
       ``(ii) Base.--The assessment shall be payable on marketings 
     within the base of the processor, as established by the 
     Secretary under section 359b of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359bb).
       ``(C) Imported sugar.--Effective only for fiscal years 1997 
     through 2003--
       ``(i) each holder of a certificate of quota eligibility for 
     raw cane sugar imported into the United States shall remit to 
     the Commodity Credit Corporation a nonrefundable marketing 
     assessment in the amount specified in subparagraph (A) per 
     pound of raw cane sugar; and
       ``(ii) each holder of a certificate of quota eligibility 
     for refined sugar (beet or cane) imported into the United 
     States shall remit to the Commodity Credit Corporation a 
     nonrefundable marketing assessment in the amount specified 
     in subparagraph (B) per pound of refined sugar.
       ``(D) Exempt marketings.--No marketing assessment shall be 
     required to be paid under this paragraph with respect to 
     marketings of sugar to enable another processor or refiner to 
     fill the marketing assessment base of the processor or 
     refiner or to facilitate the exportation of the sugar.
       ``(2) Tier 2 assessment.--
       ``(A) In general.--Effective for marketings of raw cane 
     sugar or beet sugar during fiscal year 1997, the first 
     processor of sugarcane or sugar beets, or the refiner of cane 
     sugar, shall remit to the Commodity Credit Corporation a 
     nonrefundable marketing assessment in an amount equal to 100 
     percent of the loan level established under subsection (b) or 
     (c) per pound of raw cane sugar or beet sugar, respectively, 
     marketed in excess of the base of the processor or refiner, 
     as established by the Secretary under section 359b of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb).
       ``(B) Reduction.--The assessment rate shall be reduced to 
     97 percent of the loan level for marketings for fiscal year 
     1998, 94 percent for fiscal year 1999, 91 percent for fiscal 
     year 2000, and 88 percent for each of fiscal years 2001, 
     2002, and 2003.
       ``(3) Collection.--
       ``(A) Timing.--Marketing assessments required under this 
     subsection shall be collected on a monthly basis and shall be 
     remitted to the Commodity Credit Corporation not later than 
     30 days after the end of the month in which the sugar is 
     marketed or imported.
       ``(B) Manner.--Subject to subparagraph (A), marketing 
     assessments shall be collected under this subsection in the 
     manner prescribed by the Secretary and shall be 
     nonrefundable.
       ``(4) Penalties.--If any person fails to remit the 
     assessment required by this subsection or fails to comply 
     with such requirements for recordkeeping or such other 
     requirements as are specified by the Secretary to carry out 
     this subsection, the person shall be liable to the Secretary 
     for a civil penalty up to an amount determined by 
     multiplying--
       ``(A) the quantity of cane sugar or beet sugar involved in 
     the violation; by
       ``(B) the support level for the applicable crop of 
     sugarcane or sugar beets.
       ``(5) Enforcement.--The Secretary may enforce this 
     subsection in the courts of the United States.
       ``(j) Assurance of Supply of Raw Cane Sugar.--
       ``(1) In general.--Subject to paragraphs (2) and (3), if, 
     during a period of 7 consecutive market days, the price for 
     raw cane sugar for the nearest future contract month, as 
     reported by the New York Coffee, Sugar, and Cocoa Exchange, 
     the No. 14 price, averages more than 128 percent of the loan 
     rate established under subsection (b) for raw cane sugar, 
     within 3 market days, the Secretary shall take all actions 
     authorized by law to increase the supply of raw cane sugar, 
     in increments of not less than 50,000 tons, to a level that 
     is sufficient to reduce the average price for raw cane sugar 
     to not more than 128 percent of the loan rate.
       ``(2) Actions.--
       ``(A) Marketing assessment bases.--In carrying out 
     paragraph (1), before taking any other action, the Secretary 
     shall increase the marketing assessment bases for processors 
     of raw cane sugar established under sections 359c and 359d of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc and 
     1359dd) to the extent necessary to increase the supply of 
     domestically-produced raw cane sugar to the maximum extent 
     available.
       ``(B) Other actions.--If the Secretary determines that 
     further action is necessary to increase the supply of raw 
     cane sugar under this subsection, the Secretary shall take 
     the action.
       ``(3) Beet sugar.--The Secretary shall not take an action 
     under this subsection if, during the 7-day period referred to 
     in paragraph (1), the average bulk, FOB factory net price for 
     refined beet sugar reported by all sellers is more than 128 
     percent of the average price for raw cane sugar for the 
     nearest future contract month.
       ``(4) Refiner base.--Any action taken under this subsection 
     shall not affect the base for any refiner established by the 
     Secretary under sections 359c and 359d of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359cc and 1359dd).
       ``(k) Crops.--Except as provided in subsection (i), this 
     section shall be effective only for the 1996 through 2002 
     crops of sugar beets and sugarcane.''.

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

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

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

     ``SEC. 359a. INFORMATION REPORTING.

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

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

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

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

       ``(a) In General.--The Secretary shall establish marketing 
     assessment bases for sugar for each of fiscal years 1997 
     through 2003 in accordance with this section.
       ``(b) Overall Base.--
       ``(1) In general.--The Secretary shall establish the 
     overall base to be distributed for a fiscal year (referred to 
     in this part as the `overall base') on the basis of the 
     estimate of the Secretary of sugar consumption for the fiscal 
     year.
       ``(2) Adjustment.--The Secretary shall adjust the overall 
     base, to the maximum extent practicable, to prevent the 
     accumulation of sugar acquired by the Commodity Credit 
     Corporation.
       ``(c) Establishment of Base.--The overall base for each 
     fiscal year shall be distributed among sugar derived from 
     sugar beets and sugar derived from sugarcane in the following 
     proportions:
       ``(1) Sugar derived from sugar beets--47 percent.
       ``(2) Sugar derived from sugarcane, including raw cane 
     sugar imported from foreign countries for consumption in the 
     United States--53 percent.
       ``(d) Distribution of Base.--
       ``(1) Sugar beets.--The base for sugar derived from sugar 
     beets for a fiscal year shall be a quantity equal to the 
     product obtained by multiplying--
       ``(A) the overall base quantity for the fiscal year; by
       ``(B) the percentage referred to in subsection (c)(1).
       ``(2) Sugarcane.--The base for raw sugar derived from 
     sugarcane for a fiscal year shall be the quantity obtained by 
     subtracting--
       ``(A) 1,257,000 short tons, raw value; from
       ``(B) the quantity equal to the product obtained by 
     multiplying--
       ``(i) the overall base quantity for the fiscal year; by
       ``(ii) the percentage referred to in subsection (c)(2).
       ``(3) Refined cane sugar.--The base for refined cane sugar 
     shall be a quantity equal to the product obtained by 
     multiplying--
     
[[Page S623]]

       ``(A) the overall base quantity for the fiscal year; by
       ``(B) the percentage referred to in subsection (c)(2).
       ``(e) State Sugarcane Base.--The base for sugar derived 
     from sugarcane shall be further distributed, among the 5 
     States in the United States in which sugarcane is produced, 
     in a fair and equitable manner on the basis of past 
     marketings of sugar (considering the average marketings of 
     sugar processed from sugarcane in the 2 highest years of 
     production from each State from the 1990 through 1994 crops), 
     processing capacity, and the ability of processors to market 
     the sugar covered under the bases.
       ``(f) Adjustment of Marketing Assessment Bases.--
       ``(1) In general.--The Secretary shall adjust marketing 
     assessment bases established under subsections (a) through 
     (d) in accordance with this subsection.
       ``(2) Adjustment based on price.--If the weighted average 
     bulk, FOB factory or refinery net price (including the price 
     of representative consumer and industrial products, adjusted 
     to a bulk basis) reported by all sellers of refined sugar for 
     any week is--
       ``(A) more than 111 percent of the average bulk, FOB 
     factory price for refined beet sugar during fiscal years 1990 
     through 1994 (as reported in Appendix Table 11 of 
     Agricultural Economic Report No. 711 of the Economic Research 
     Service), the Secretary may increase the marketing assessment 
     bases of cane sugar refiners and sugar beet processors 
     established under subsections (a) through (d); or
       ``(B) less than 104 percent of the price referred to in 
     subparagraph (A), the Secretary shall decrease--
       ``(i) the marketing assessment bases of cane sugar refiners 
     and sugar beet processors established under subsections (a) 
     through (d); and
       ``(ii) the marketing assessment bases of cane sugar 
     processors established under this section;

     to the extent necessary to maintain the minimum access level 
     for imports of sugar set forth in Additional Note 5 to 
     Chapter 17 of the Harmonized Tariff Schedule of the United 
     States.
       ``(3) Distribution to processors.--In the case of any 
     increase or decrease in assessment bases, the share of each 
     processor of an assessment base under section 359d, and each 
     proportionate share established under section 359f(b), shall 
     be increased or decreased by the same percentage that the 
     assessment base is increased or decreased.
       ``(4) Reductions.--If an assessment base for a fiscal year 
     is required to be reduced during the fiscal year under this 
     subsection and the quantity of sugar marketed, including 
     sugar pledged as collateral for a price support loan under 
     section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) 
     and acquired by the Commodity Credit Corporation, for the 
     fiscal year at the time of the reduction by any individual 
     processor covered by the assessment base exceeds the reduced 
     assessment base of the processor, the assessment base next 
     established for the processor shall be reduced by the 
     quantity of the excess sugar marketed.
       ``(g) Filling Sugarcane and Sugar Beet Assessment Bases.--
       ``(1) Cane sugar.--Each marketing assessment base for cane 
     sugar established under this section may be filled only with 
     sugar processed from domestically grown sugarcane or imported 
     raw cane sugar.
       ``(2) Beet sugar.--Each marketing assessment base for beet 
     sugar established under this section may be filled only with 
     sugar processed from domestically grown sugar beets.

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

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

     ``SEC. 359e. REASSIGNMENT OF DEFICITS.

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

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

       ``(a) Processor Assurances.--During each of fiscal years 
     1997 through 2003, the Secretary shall obtain from the 
     processors such assurances as the Secretary considers 
     adequate that the assessment base will be shared among 
     producers served by the processor in a fair and equitable 
     manner that adequately reflects the production histories of 
     producers. Any dispute between a processor and a producer, or 
     group of producers, with respect to the sharing of the base 
     of the processor shall be resolved through arbitration by the 
     Secretary on the request of either party.
       ``(b) Proportionate Shares of Certain State Bases.--
       ``(1) In general.--
       ``(A) States affected.--In any case in which a State share 
     of an assessment base is established under section 359c(e) 
     and there are in excess of 250 producers in the State (other 
     than Puerto Rico), the Secretary shall make a determination 
     under subparagraph (B).
       ``(B) Determination.--The Secretary shall determine, for 
     each State base described in subparagraph (A), whether the 
     production of sugarcane, in the absence of proportionate 
     shares, will be greater than the quantity needed to enable 
     processors to fill the assessment base and provide a normal 
     carryover inventory.
       ``(2) Establishment of proportionate shares.--If the 
     Secretary determines under paragraph (1) that the quantity of 
     sugar processed from all crops by all processors covered by a 
     State base for a fiscal year will be in excess of the 
     quantity needed to enable processors to fill the base for the 
     fiscal year and provide a normal carryover inventory of 
     sugar, the Secretary shall establish a proportionate share 
     for each sugarcane producing farm that limits the acreage of 
     sugarcane 

[[Page S624]]
     that may be harvested on the farm for sugar or seed during the fiscal 
     year the base is in effect as provided in this subsection. 
     Each such proportionate share shall be subject to adjustment 
     under paragraph (7) and section 359g(c).
       ``(3) Method of determining proportionate shares.--For 
     purposes of determining proportionate shares for any crop of 
     sugarcane:
       ``(A) Establishment of state's per-acre yield.--The 
     Secretary shall establish the State's per-acre yield goal for 
     a crop at a level (not less than the average per-acre yield 
     in the State for the preceding 5 years, as determined by the 
     Secretary) that will ensure an adequate net return per pound 
     to sugarcane produced in the State, taking into consideration 
     any available production research data that the Secretary 
     considers relevant.
       ``(B) Adjustment of per-acre yield goal.--The Secretary 
     shall adjust the per-acre yield goal by the average recovery 
     rate of sugar produced from sugarcane by processors in the 
     State.
       ``(C) State acreage base.--The Secretary shall convert the 
     State base for the fiscal year involved into a State acreage 
     base for the crop by dividing the State base by the per-acre 
     yield goal for the State, as established under subparagraph 
     (A) and as further adjusted under subparagraph (B).
       ``(D) Uniform reduction percentage.--The Secretary shall 
     establish a uniform reduction percentage for the crop by 
     dividing the State acreage base, as determined for the crop 
     under subparagraph (C), by the sum of all adjusted acreage 
     bases in the State, as determined by the Secretary.
       ``(E) Proportionate share of farm of sugarcane acreage.--
     The uniform reduction percentage for the crop, as determined 
     under subparagraph (D), shall be applied to the acreage base 
     for each sugarcane-producing farm in the State to determine 
     the proportionate share of the farm of sugarcane acreage that 
     may be harvested for sugar or seed.
       ``(4) Acreage base.--For purposes of this subsection, the 
     acreage base for each sugarcane-producing farm shall be 
     determined by the Secretary, as follows:
       ``(A) In general.--The acreage base for any farm shall be 
     the number of acres that is equal to the average of the 
     acreage planted and considered planted for harvest for sugar 
     or seed on the farm in each of the 5 crop years preceding the 
     fiscal year the proportionate share will be in effect.
       ``(B) Disasters.--Acreage planted to sugarcane that 
     producers on a farm were unable to harvest to sugarcane for 
     sugar or seed because of drought, flood, other natural 
     disaster, or other condition beyond the control of the 
     producers may be considered as harvested for the production 
     of sugar or seed for purposes of this paragraph.
       ``(5) Violation.--
       ``(A) In general.--If proportionate shares are in effect in 
     a State for a crop of sugarcane, producers on a farm shall 
     not knowingly harvest, or allow to be harvested, for sugar or 
     seed an acreage of sugarcane in excess of the proportionate 
     share of the farm for the fiscal year, or otherwise violate 
     proportionate share regulations issued by the Secretary under 
     section 359h(a).
       ``(B) Determination of violation.--No producer shall be 
     considered to have violated subparagraph (A) unless the 
     processor of the sugarcane harvested by the producer from 
     acreage in excess of the proportionate share of the farm 
     markets a quantity of sugar that exceeds the allocation of 
     the processor for a fiscal year.
       ``(C) Civil penalty.--Any producer on a farm who violates 
     subparagraph (A) by knowingly harvesting, or allowing to be 
     harvested, an acreage of sugarcane in excess of the 
     proportionate share of the farm shall be liable to the 
     Commodity Credit Corporation for a civil penalty equal to 
     1\1/2\ times the United States market value of the quantity 
     of sugar that is marketed by the processor of the sugarcane 
     in excess of the allocation of the processor for the fiscal 
     year. The Secretary shall prorate penalties imposed under 
     this subparagraph in a fair and equitable manner among all 
     the producers of sugarcane harvested from excess acreage that 
     is acquired by the processor.
       ``(6) Waiver.--Notwithstanding paragraph (5), the Secretary 
     may authorize the county and State committees established 
     under section 8(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
     deadlines and other proportionate share requirements in cases 
     in which lateness or failure to meet the other requirements 
     does not affect adversely the operation of proportionate 
     shares.
       ``(7) Adjustments.--If the Secretary determines that, 
     because of a natural disaster or other condition beyond the 
     control of producers that adversely affects a crop of 
     sugarcane subject to proportionate shares, the quantity of 
     sugarcane produced by producers subject to the proportionate 
     shares will not be sufficient to enable processors in the 
     State to meet the cane sugar base of the State and provide a 
     normal carryover inventory of sugar, the Secretary may 
     uniformly allow producers to harvest a quantity of sugarcane 
     in excess of the proportionate share of the producers, or 
     suspend proportionate shares entirely, as necessary to enable 
     processors to meet the State base and provide a normal 
     carryover inventory of sugar.

     ``SEC. 359g. SPECIAL RULES.

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

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

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

     ``SEC 359i. APPEALS.

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

     ``SEC. 359j. ADMINISTRATION.

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

[[Page S625]]
     purposes of this part, the terms `United States' and `State' mean the 
     50 States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.''.

     SEC. 703. PREVENTION OF SUGAR LOAN FORFEITURES.

       Section 902(c)(2)(A) of the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1446g note) is amended by 
     striking ``1995'' and inserting ``2002''.
                TITLE VIII--GENERAL COMMODITY PROVISIONS
           Subtitle A--Amendments to Agricultural Act of 1949

     SEC. 801. DEFICIENCY AND LAND DIVERSION PAYMENTS.

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

     SEC. 802. ADJUSTMENT OF ESTABLISHED PRICES.

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

     SEC. 803. ADJUSTMENT OF SUPPORT PRICES.

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

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

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

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

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

     SEC. 806. DOUBLE CROPPING.

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

     ``SEC. 428. DOUBLE CROPPING.

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

     SEC. 807. ACREAGE BASE AND YIELD SYSTEM.

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

[[Page S626]]
     program that would otherwise be implemented in accordance with sections 
     101B, 103B, 105B, and 107B during a crop year for the 
     crop.''.
       (c) Farm Program Payment Yields.--Section 505(b) of the Act 
     (7 U.S.C. 1465(b)) is amended--
       (1) in subsection (b)--
       (A) in paragraphs (1) and (2), by striking ``1997'' each 
     place it appears and inserting ``2002''; and
       (B) in paragraph (3), by striking ``1981 through 1985 crop 
     years (or, as appropriate, the 1986 through 1990 crop 
     years)'' and inserting ``applicable crop years, as determined 
     by the Secretary''; and
       (2) in subsection (c)(2)--
       (A) by inserting ``(if applicable)'' after the ``1986 crop 
     year''; and
       (B) by inserting ``(as applicable)'' after ``subsequent 
     crop years''.
       (d) Crops.--Section 509 of the Act (7 U.S.C. 1469) is 
     amended by striking ``1997'' and inserting ``2002''.
             Subtitle B--Miscellaneous Commodity Provisions

     SEC. 811. PAYMENT LIMITATIONS.

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

     SEC. 812. NORMALLY PLANTED ACREAGE.

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

     SEC. 813. NORMAL SUPPLY.

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

     SEC. 814. DETERMINATIONS OF THE SECRETARY.

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

     SEC. 815. OPTIONS PILOT PROGRAM.

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

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

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

     SEC. 821. CONFORMING AMENDMENTS.

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

     SEC. 831. APPLICATION.

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


                     KOHL AMENDMENTS NOS. 3130-3133

  (Ordered to lie on the table.)
  Mr. KOHL submitted four amendments intended to be proposed by him to 
the bill S. 1541, supra; as follows:

                           Amendment No. 3130

       At the appropriate place, insert the following new section:

     SEC.  . NATIONAL MILK MARKETING ORDER.

       (a) In General.--Paragraphs (A) and (B) of section 8c(5) of 
     the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, are amended to read as follows:
       ``(A) Definitions.--In this subsection:
       ``(i) Class i milk.--The term `class I milk' means grade A 
     milk that is used to produce a fluid milk product.
       ``(ii) Class ii milk.--The term `class II milk' means grade 
     A milk that is used to produce a milk product other than a 
     product produced from class I milk or class III milk.
       ``(iii) Class iii milk.--The term `class III milk' means 
     grade A milk that is used to produce butter, nonfat dry milk, 
     or hard cheese.
       ``(iv) National order.--The term `national order' means the 
     order described in paragraph (B).
       ``(B) Classification and minimum prices for milk.--
       ``(i) In general.--Classifying, and establishing minimum 
     prices, for class I milk, class II milk, and class III milk 
     in accordance with a national order issued under this section 
     that applies to all handlers of the milk produced in the 48 
     contiguous States and the products of the milk.
       ``(ii) Uniform price differential.--The Secretary shall 
     establish 1 uniform price differential for milk of the 
     highest use classification. The price shall be equal to $1.60 
     per hundredweight.
       ``(iii) Phase out of minimum price for class iii milk.--Not 
     later than December 31, 1995, the Secretary shall phase out 
     the minimum price for class IIIA milk. Until the Secretary 
     phases out the minimum price for class IIIA milk, the 
     Secretary shall require reclassification of class IIIA milk 
     as class III milk if the fat and powder used in the milk is 
     used in higher value dairy products.''.
       (b) Conforming Amendments.--Section 8c(5) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended--
       (1) in paragraph (C)--
       (A) by striking ``paragraphs (A) and (B) of this subsection 
     (5)'' and inserting ``Paragraph (B)''; and
       (B) by striking ``paragraph (A) hereof'' and inserting 
     ``paragraph (B)'';
       (2) in the proviso of paragraph (F), by striking 
     ``paragraph (A) of this subsection (5)'' and inserting 
     ``paragraph (B)'';
       (3) in paragraph (J), by striking ``paragraph (A)'' and 
     inserting ``paragraph (B)''; and
       (4) by striking paragraph (L).
                                                                    ____


                           Amendment No. 3131

       On page 72, between lines 8 and 9, insert the following:

     SEC.   . NATIONAL MILK MARKETING ORDER.

       (a) In General.--Paragraphs (A) and (B) of section 8c(5) of 
     the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, are amended to read as follows:
       ``(A) Definitions.--In this subsection:
       ``(i) Class i milk.--The term `class I milk' means grade A 
     milk that is used to produce a fluid milk product.
       ``(ii) Class ii milk.--The term `class II milk' means 
     grade. A milk that is used to produce a milk product other 
     than a product produced from class I milk or class III milk.
       ``(iii) Class iii milk.--The term `class III milk' means 
     grade A milk that is used to produce butter, nonfat dry milk, 
     or hard cheese.
       ``(iv) National order.--The term `national order' means the 
     order described in paragraph (B).
       ``(B) Classification and minimum prices for milk.--
       ``(i) In general.--Classifying and establishing minimum 
     prices, for class I milk, class II milk, and class III milk 
     in accordance with a national order issued under this section 
     that applies to all handlers of the milk produced in the 48 
     contiguous States and the products of the milk.
       ``(ii) Uniform price differential.--The Secretary shall 
     establish 1 uniform price differential for milk of the 
     highest use classification. The price shall be equal to $1.60 
     per hundredweight.
       ``(iii) Phase out of minimum price for class iii milk.--Not 
     later than December 31, 1995, the Secretary shall phase out 
     the minimum price for class IIIA milk. Until the Secretary 
     phases out the minimum price for class IIIA milk, the 
     Secretary shall require reclassification of class IIIA milk 
     as class III milk if the fat and powder used in the milk is 
     used in higher value dairy products.''.
       (b) Conforming Amendments.--Section 8c(5) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended--
       (1) in paragraph (C)--
       (A) by striking ``paragraphs (A) and (B) of this subsection 
     (5)'' and inserting ``paragraph (B)''; and
       (B) by striking ``paragraph (A) hereof'' and inserting 
     ``paragraph (B)'';
       (2) in the proviso of paragraph (F), by striking 
     ``paragraph (A) of this subsection (5)'' and inserting 
     ``paragraph (B)'';
       (3) in paragraph (J), by striking ``paragraph (A)'' and 
     inserting ``paragraph (B)''; and
       (4) by striking paragraph (L).
                                                                    ____


                           Amendment No. 3132

       At the appropriate place, add the following new section:

     SEC.  . UPGRADE PAYMENT.

       Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(5)), reenacted with 

[[Page S627]]
     amendments by the Agricultural Marketing Agreement Act of 1937, is 
     amended by adding at the end the following:
       ``(M) Upgrade payment.--A handler that uses a product of 
     Class IV milk to manufacture a product of Class II milk or a 
     product of class III milk shall be responsible to pay into 
     the Class IV milk national equalization pool an upgrade 
     payment equal to the product of--
       ``(i) the difference between--
       ``(I) the milk reference price for the class of milk of 
     final use; and
       ``(II) the Class IV milk reference price during the month 
     in which the final manufactured product is produced; and
       ``(ii) the quantity of milk equivalent (measured in 
     hundredweights) contained in the product of Class IV milk 
     used to produce the Class II milk product or the Class III 
     milk product.''.
                                                                    ____


                           Amendment No. 3133

       On page 72, between lines 8 and 9, insert the following:

     SEC.   . UPGRADE PAYMENT.

       Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(5)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended by adding at the 
     end the following:
       ``(M) Upgrade payment.--A handler that uses a product of 
     Class IV milk to manufacture a product of Class II milk or a 
     product of Class III milk shall be responsible to pay into 
     the Class IV milk national equalization pool an upgrade 
     payment equal to the product of--
       ``(i) the difference between--
       ``(I) the milk reference price for the class of milk of 
     final use; and
       ``(II) the Class IV milk reference price during the month 
     in which the final manufactured product is produced; and
       ``(ii) the quantity of milk equivalent (measured in 
     hundredweights) contained in the product of Class IV milk 
     used to produce the Class II milk product or the Class III 
     milk product.''.
                                 ______


                 KOHL (AND FEINGOLD) AMENDMENT NO. 3134

  (Ordered to lie on the table.)
  Mr. KOHL (for himself and Mr. Feingold) submitted an amendment 
intended to be proposed by them to the bill, S. 1541, supra; as 
follows:

       At the appropriate place insert the following:

                           TITLE ____--DAIRY
          Subtitle A--Milk Price Support and Other Activities

     SEC. ____01. MILK PRICE SUPPORT PROGRAM.

       (a) Support Activities.--To replace the milk price support 
     program established under section 204 of the Agricultural Act 
     of 1949 (7 U.S.C. 1446e), which is repealed by section 
     19(b)(2)), the Secretary of Agriculture shall use the 
     authority provided in this section to support the price of 
     milk produced in the 48 contiguous States through the 
     purchase of cheddar cheese produced from such milk. Until the 
     first day of the first month beginning not less than 30 days 
     after the date of the enactment of this Act, the Secretary 
     also may support the price of milk under this section through 
     the purchase of butter and nonfat dry milk produced from milk 
     produced in the 48 contiguous States.
       (b) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (1) During calendar year 1996, not less than $10.35.
       (2) During calendar year 1997, not less than $10.25.
       (3) During calendar year 1998, not less than $10.15.
       (4) During calendar year 1999, not less than $10.05.
       (5) During calendar year 2000, not less than $9.95.
       (6) During calendar years 2001 and 2002, not less than 
     $9.85.
       (c) Bid Prices.--The Commodity Credit Corporation support 
     purchase prices under this section for cheddar cheese (and 
     for butter and nonfat dry milk subject to subsection (a)) 
     announced by the Corporation shall be the same for all of 
     that milk product sold by persons offering to sell the 
     product to the Corporation. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price not less than the rate of 
     price support for milk in effect during a 12-month period 
     under this section.
       (d) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this section.
       (e) Residual Authority for Refund of Budget Deficit 
     Assessments.--
       (1) Application of subsection.--This subsection shall apply 
     with respect to the reductions made under subsection (h)(2) 
     of section 204 of the Agricultural Act of 1949, as in effect 
     on the day before the date of the enactment of this Act, in 
     the price of milk received by producers during calendar years 
     1995 and 1996.
       (2) Refund required.--The Secretary shall provide a refund 
     of the entire reduction made under such subsection (h)(2) in 
     the price of milk received by a producer during a calendar 
     year referred to in paragraph (1) if the producer provides 
     evidence that the producer did not increase marketings in 
     that calendar year when compared to the preceding calendar 
     year.
       (3) Treatment of refunds.--A refund under this subsection 
     shall not be considered as any type of price support or 
     payment for purposes of sections 1211 and 1221 of the Food 
     Security Act of 1985 (16 U.S.C. 3811, 3821).
       (g) Transfer of Milk Products to Military and Veterans 
     Hospitals.--
       (1) Transfer authorized.--As a means of increasing the 
     utilization of milk and milk products, upon the certification 
     by the Secretary of Veterans Affairs or by the Secretary of 
     the Army, acting for the military departments under the 
     Single Service Purchase Assignment for Subsistence of the 
     Department of Defense, that the usual quantities of milk 
     products have been purchased in the normal channels of trade, 
     the Commodity Credit Corporation shall make available--
       (A) to the Secretary of Veterans Affairs at warehouses 
     where milk products are stored, such milk products acquired 
     under this section as the Secretary of Veterans Affairs 
     certifies are required in order to provide milk products as a 
     part of the ration in hospitals under the jurisdiction of the 
     Secretary of Veterans Affairs; and
       (B) to the Secretary of the Army, at warehouses where milk 
     products are stored, such milk products acquired under this 
     section as the Secretary of the Army certifies can be 
     utilized in order to provide additional milk products as a 
     part of the ration--
       (i) of the Army, Navy, Air Force, or Coast Guard;
       (ii) in hospitals under the jurisdiction of the Department 
     of Defense; and
       (iii) of cadets and midshipmen at, and other personnel 
     assigned to, the United States Merchant Marine Academy.
       (2) Reports.--The Secretary of Veterans Affairs and the 
     Secretary of the Army shall report every six months to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Agriculture of the House of 
     Representatives and the Secretary of Agriculture the amount 
     of milk products used under this subsection.
       (3) Process.--The Secretary of Veterans Affairs and the 
     Secretary of the Army shall reimburse the Commodity Credit 
     Corporation for all costs associated in making milk products 
     available under this subsection.
       (4) Limitation.--The obligation of the Commodity Credit 
     Corporation to make milk products available pursuant to this 
     subsection shall be limited to milk products acquired by the 
     Corporation under this section and not disposed of under 
     provisions (1) and (2) of section 390B(a) of the Agricultural 
     Adjustment Act of 1938.
       (h) Period of Effectiveness.--Notwithstanding any other 
     provision of law, this section shall be effective only during 
     the period
       (1) beginning on the date of the enactment of this Act; and
       (2) ending on December 31, 2002.

     SEC. ____02. RECOURSE LOANS FOR COMMERCIAL PROCESSORS OF 
                   DAIRY PRODUCTS.

       (a) Recourse Loans Available.--The Secretary of Agriculture 
     shall make recourse loans available to commercial processors 
     of eligible dairy products to assist such processors to 
     manage inventories of eligible dairy products to assure a 
     greater degree of price stability for the dairy industry 
     during the year. Recourse loans may be made available under 
     such reasonable terms and conditions as the Secretary may 
     prescribe. The Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     this section.
       (b) Amount of Loan.--The Secretary shall establish the 
     amount of a loan for eligible dairy products, which shall 
     reflect 90 percent of the reference price for that product. 
     The rate of interest charged participants in this program 
     shall not be less than the rate of interest charged the 
     Commodity Credit Corporation by the United States Treasury.
       (c) Period of Loans.--A recourse loan made under this 
     section may not extend beyond the end of the fiscal year 
     during which the loan is made, except that the Secretary may 
     extend the loan for an additional period not to exceed the 
     end of the next fiscal year.
       (d) Definitions.--In this section:
       (1) The term ``eligible dairy products'' means cheddar 
     cheese, butter, and nonfat dry milk.
       (2) The term ``reference price'' means--
       (A) for cheddar cheese, the average National (Green Bay) 
     Cheese Exchange price for 40 pound blocks of cheddar cheese 
     for the previous three months;
       (B) for butter, the average Chicago Mercantile Exchange 
     price for Grade AA butter for the previous three months; and
       (C) for nonfat dry milk, the average Western States Extra 
     Grade and Grade A price for nonfat dry milk for the previous 
     three months.

     SEC. ____03. DAIRY EXPORT INCENTIVE PROGRAM.

       (a) Duration.--Subsection (a) of section 153 of the Food 
     Security Act of 1985 (15 U.S.C. 713a-14) is amended by 
     striking ``2001'' and inserting ``2002''.
       (b) Elements of Program.--Subsection (c) of such section is 
     amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraphs:
       ``(3) the maximum volume of dairy product exports allowable 
     consistent with the obligations of the United States as a 
     member of 

[[Page S628]]
     the World Trade Organization are exported under the program each year 
     (minus the volume sold under section 1163 of this Act (7 
     U.S.C. 1731 note) during that year), except to the extent 
     that the export of such a volume under the program would, in 
     the judgment of the Secretary, exceed the limitations on the 
     value set forth in subsection (f); and
       ``(4) payments may be made under the program for exports to 
     any destination in the world for the purpose of market 
     development, except a destination in a country with respect 
     to which shipments from the United States are otherwise 
     restricted by law.''.
       (c) Sole Discretion.--Subsection (b) of such section is 
     amended by inserting ``sole'' before ``discretion''.
       (d) Market Development.--Subsection (e)(1) of such section 
     is amended--
       (1) by striking ``and'' and inserting ``the''; and
       (2) by inserting before the period the following: ``, and 
     any additional amount that may be required to assist in the 
     development of world markets for United States dairy 
     products''.
       (e) Maximum Allowable Amounts.--Such section is further 
     amended by adding at the end the following:
       ``(f) Required Funding.--The Commodity Credit Corporation 
     shall in each year use money and commodities for the program 
     under this section in the maximum amount consistent with the 
     obligations of the United States as a member of the World 
     Trade Organization, minus the amount expended under section 
     1163 of this Act (7 U.S.C. 1731 note) during that year. 
     However, the Commodity Credit Corporation may not exceed the 
     limitations specified in subsection (c)(3) on the volume of 
     allowable dairy product exports.''.

     SEC. ____04. DAIRY PROMOTION PROGRAM.

       (a) Expansion to Cover Dairy Products Imported into the 
     United States.--Section 110(b) of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended by 
     inserting after ``commercial use'' the following: ``and dairy 
     products imported into the United States''.
       (b) Definitions.--
       (1) Milk.--Subsection (d) of section 111 of such Act (7 
     U.S.C. 4502) is amended by inserting before the semicolon the 
     following: ``or cow's milk imported into the United States in 
     the form of dairy products intended for consumption in the 
     United States''.
       (2) Dairy products.--Subsection (e) of such section is 
     amended by inserting before the semicolon the following: 
     ``and casein (except casein imported under sections 
     3501.90.20 (casein glue) and 3501.90.50 (other) of the 
     Harmonized Tariff Schedule)''.
       (3) Research.--Subsection (j) of such section is amended by 
     inserting before the semicolon the following: ``or to reduce 
     the costs associated with processing or marketing those 
     products''.
       (4) United states.--Subsection (l) of such section is 
     amended to read as follows:
       ``(l) the term `United States' means the several States and 
     the District of Columbia;''.
       (5) Importers and exporters.--Such section is further 
     amended--
       (A) in subsection (k), by striking ``and'' at the end of 
     such subsection; and
       (B) by adding at the end the following new subsections:
       ``(m) the term `importer' means the first person to take 
     title to dairy products imported into the United States for 
     domestic consumption; and
       ``(n) the term `exporter' means any person who exports 
     dairy products from the United States.''.
       (c) Membership of Board.--Section 113(b) of such Act (7 
     U.S.C. 4504(b)) is amended--
       (1) in the first sentence, by striking ``thirty-six 
     members'' and inserting ``38 members, including one 
     representative of importers and one representative of 
     exporters to be appointed by the Secretary'';
       (2) in the second sentence, by striking ``Members'' and 
     inserting ``The remaining members''; and
       (3) in the third sentence, by striking ``United States'' 
     and inserting ``United States, including Alaska and Hawaii''.
       (d) Assessment.--Section 113(g) of such Act (7 U.S.C. 
     4504(g)) is amended--
       (1) by inserting ``(1)'' after ``(g)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The order shall provide that each importer of dairy 
     products intended for consumption in the United States shall 
     remit to the Board, in the manner prescribed by the order, an 
     assessment equal to 1.2 cents per pound of total milk solids 
     contained in the imported dairy products, or 15 cents per 
     hundredweight of milk contained in the imported dairy 
     products, whichever is less. If an importer can establish 
     that it is participating in active, ongoing qualified State 
     or regional dairy product promotion or nutrition programs 
     intended to increase the consumption of milk and dairy 
     products, the importer shall receive credit in determining 
     the assessment due from that importer for contributions to 
     such programs of up to .8 cents per pound of total milk 
     solids contained in the imported dairy products, or 10 cents 
     per hundredweight of milk contained in the imported dairy 
     products, whichever is less. The assessment collected under 
     this paragraph shall be used for the purpose specified in 
     paragraph (1).''.
       (e) Records.--Section 113(k) of such Act (7 U.S.C. 4504(k)) 
     is amended in the first sentence by inserting after 
     ``commercial use,'' the following: ``each importer of dairy 
     products,''.
       (f) Termination or Suspension of Order.--Section 116(b) of 
     such Act (7 U.S.C. 4507(b)) is amended--
       (1) by inserting ``and importers'' after ``producers'' each 
     place it appears;
       (2) by striking ``who, during a representative period (as 
     determined by the Secretary), have been engaged in the 
     production of milk for commercial use''; and
       (3) by adding at the end the following new sentences: ``A 
     producer shall be eligible to vote in the referendum if the 
     producer, during a representative period (as determined by 
     the Secretary), has been engaged in the production of milk 
     for commercial use. An importer shall be eligible to vote in 
     the referendum if the importer, during a representative 
     period (as determined by the Secretary), has been engaged in 
     the importation of dairy products into the United States 
     intended for consumption in the United States.''.
       (g) Promotion in international markets.--Section 113(e) of 
     such Act (7 U.S.C. 4504(e)) is amended by adding at the end 
     the following new sentence: ``For each of the fiscal years 
     1996 through 2000, the Board's budget shall provide for the 
     expenditure of not less than 10 percent of the anticipated 
     revenues available to the Board to develop international 
     markets for, and to promote within such markets, the 
     consumption of dairy products produced in the United States 
     from milk produced in the United States.''.
       (h) Implementation of Amendments.--
       (1) Implementation process.--To implement the amendments 
     made by this section, the Secretary of Agriculture shall 
     issue an amended dairy products promotion and research order 
     under section 112 of the Dairy Production Stabilization Act 
     of 1983 (7 U.S.C. 4503) reflecting such amendments, and no 
     other changes, in the order in existence on the date of the 
     enactment of this Act.
       (2) Proposal of amended order.--Not later than 60 days 
     after the date of the enactment of this Act, the Secretary 
     shall publish a proposed dairy products promotion and 
     research order reflecting the amendments made by this 
     section. The Secretary shall provide notice and an 
     opportunity for public comment on the proposed order.
       (3) Issuance of amended order.--After notice and 
     opportunity for public comment are provided in accordance 
     with paragraph (2), the Secretary shall issue a final dairy 
     products promotion and research order, taking into 
     consideration the comments received and including in the 
     order such provisions as are necessary to ensure that the 
     order is in conformity with the amendments made by this 
     section.
       (4) Effective date.--The final dairy products promotion and 
     research order shall be issued and become effective not later 
     than 120 days after publication of the proposed order.
       (i) Referendum on Amendments.--Not later than 36 months 
     after the issuance of the dairy products promotion and 
     research order reflecting the amendments made by this 
     section, the Secretary of Agriculture shall conduct a 
     referendum under section 115 of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4506) for the sole 
     purpose of determining whether the requirements of such 
     amendments shall be continued. The Secretary shall conduct 
     the referendum among persons who have been producers or 
     importers (as defined in section 111 of such Act (7 U.S.C. 
     4502)) during a representative period as determined by the 
     Secretary. The requirements of such amendments shall be 
     continued only if the Secretary determines that such 
     requirements have been approved by not less than a majority 
     of the persons voting in the referendum. If continuation of 
     the amendments is not approved, the Secretary shall issue a 
     new order, within six months after the announcement of the 
     results of the referendum, that is identical to the order in 
     effect on the date of the enactment of this Act. The new 
     order shall become effective upon issuance and shall not be 
     subject to referendum for approval.

     SEC. ____05. FLUID MILK STANDARDS UNDER MILK MARKETING 
                   ORDERS.

       (a) Nature of Standards.--Each marketing order issued with 
     respect to milk and its products under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, shall contain terms and conditions to provide that all 
     dispositions of fluid milk products containing milk of the 
     highest use classification covered by such orders shall 
     comply with the following requirements:
       (1) In the case of milk marketed as whole milk, not less 
     than 12.05 percent total milk solids consisting of not less 
     than 8.8 percent milk solids not fat and not less than 3.25 
     percent milk fat.
       (2) In the case of milk marketed as 2 percent (or lowfat) 
     milk, not less than 12 percent total milk solids consisting 
     of not less than 10 percent milk solids not fat and not less 
     than 2 percent milk fat.
       (3) In the case of milk marketed as 1 percent (or light) 
     milk, not less than 12 percent total milk solids consisting 
     of not less than 11 percent milk solids not fat and not less 
     than 1 percent milk fat.
       (4) In the case of milk marketed as skim (or nonfat) milk, 
     not less than 9 percent total milk solids consisting of not 
     less than 9 percent milk solids not fat and not more than .25 
     percent milk fat.
       (b) Violations.--A violation of the requirements specified 
     in subsection (a) shall be subject to the penalties provided 
     in section 8c(14) of the Agricultural Adjustment Act (7 

[[Page S629]]
     U.S.C. 608c(14)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937.
       (c) Effective Date.--The requirements imposed by this 
     section shall apply to fluid milk marketed on and after the 
     first day of the first month beginning not less than 30 days 
     after the date of the enactment of this Act.
       (d) Effect of Enactment.--The requirements imposed by this 
     section shall supersede any conflicting requirements 
     regarding fluid milk imposed pursuant to the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).

     SEC. ____06. MANUFACTURING ALLOWANCE.

       (a) Maximum Allowances Established.--No State shall provide 
     for a manufacturing allowance for the processing of milk in 
     excess of--
       (1) in the case of milk manufactured into butter, butter 
     oil, nonfat dry milk, or whole dry milk--
       (A) $1.65 per hundredweight of milk, for milk marketed 
     during the 2-year period beginning on the effective date of 
     this section; and
       (B) such allowance per hundredweight of milk as the 
     Secretary of Agriculture may establish under section 
     ____21(b)(3), for milk marketed after the end of such period; 
     and
       (2) in the case of milk manufactured into cheese and whey--
       (A) $1.80 per hundredweight of milk, for milk marketed 
     during the 2-year period beginning on the effective date of 
     this section; and
       (B) such allowance per hundredweight of milk as the 
     Secretary may establish under section ____21(b)(3), for milk 
     marketed after the end of such period.
       (b) Yields.--In converting the weight of milk to dairy 
     products during the two-year period beginning on the 
     effective date of this section, the Secretary shall use the 
     following yields with respect to a hundred pounds of milk:
       (1) Butter: 4.2 pounds.
       (2) Nonfat dry milk: 8.613 pounds.
       (3) 40 pound block cheddar cheese: 10.169 pounds.
       (4) Whey cream butter: .27 pounds.
       (c) Sources of Product Price Values.--In determining the 
     manufacturing allowance applicable in a State during the 2-
     year period beginning on the effective date of this section, 
     the Secretary shall use the following sources for product 
     price values:
       (1) For butter, Chicago Mercantile Exchange Grade AA 
     butter.
       (2) For nonfat dry milk, California Manufacturing Plants 
     Extra Grade and Grade A nonfat dry milk.
       (3) For cheese, National (Green Bay) Cheese Exchange 40 
     pound block cheddar cheese.
       (4) For whey cream butter, Chicago Mercantile Exchange 
     Grade B butter.
       (d) Manufacturing Allowance Defined.--In this section, the 
     term ``manufacturing allowance'' means--
       (1) the amount by which the product price value of butter 
     and nonfat dry milk manufactured from a hundred pounds of 
     milk containing 3.5 pounds of milk fat and 8.7 pounds of milk 
     solids not fat exceeds the class price for the milk used to 
     produce those products; or
       (2) an amount by which the product price value of cheese 
     and whey manufactured from a hundred pounds of milk 
     containing 3.6 pounds of milk fat and 8.7 pounds of milk 
     solids not fat exceeds the class price for the milk used to 
     produce those products.
       (e) Effect of Violation.--If the Secretary determines that 
     a State has in effect a manufacturing allowance that exceeds 
     the manufacturing allowance authorized in subsection (a), the 
     Secretary shall suspend, until such time as the State 
     complies with such subsection--
       (1) purchases under section ____01 of cheddar cheese 
     produced in that State; and
       (2) disbursements from the Class IV equalization pool under 
     section ____08 to milk marketing orders operating in that 
     State with respect to milk produced in that State.
       (f) Conforming Suspension and Repeal.--
       (1) Suspension and repeal.--During the 2-year period 
     beginning on the effective date of this section, the 
     requirements of section 102 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 1446e-1) shall 
     not apply. Effective on the first day after the end of such 
     period, such section is repealed.
       (2) Exception.--Notwithstanding paragraph (1), in the event 
     that an injunction or other order of a court prohibits or 
     impairs the implementation of this section or the activities 
     of the Secretary under this section, the Secretary shall use 
     the authorities provided by section 102 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1446e-1) until such time as the injunction or other court 
     order is lifted.
       (g) Effective Date; Implementation.--This section shall 
     take effect on the first day of the first month beginning not 
     less than 30 days after the date of the enactment of this 
     Act. After such effective date, the Secretary may exercise 
     the authority provided to the Secretary under this section 
     without regard to the issuance of regulations intended to 
     carry out this section.

     SEC. ____07. ESTABLISHMENT OF TEMPORARY CLASS I PRICE AND 
                   TEMPORARY CLASS I EQUALIZATION POOLS.

       (a) Temporary Pricing for Milk of the Highest Use 
     Classification (Class I Milk).--
       (1) Establishment of minimum price.--During the 2-year 
     period beginning on the effective date of this section, the 
     minimum price for milk of the highest use classification 
     marketed under a marketing order issued under section 8c of 
     the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, shall not be less than the sum of--
       (A) $12.87 per hundredweight; and
       (B) the aggregate adjustment in effect under clauses (1) 
     and (2) of the second sentence of paragraph (5)(A) of such 
     section on December 31, 1995, for milk of the highest use 
     classification in that order.
       (2) Addition to minimum price.--If the basic formula price 
     for milk exceeds $12.87 per hundredweight in any month during 
     the 2-year period beginning on the effective date of this 
     section, the positive difference between the basic formula 
     price and $12.87 shall be added to the price for milk of the 
     highest use classification marketed under a marketing order 
     issued under such section 8c in the second month following 
     the month in which the difference occurred.
       (3) Effect on other use classifications.--This subsection 
     shall not affect the calculation of the basic formula price 
     used to determine the price for milk of use classifications 
     other than the highest use classification.
       (b) Class I Equalization Pools.--
       (1) Collections.--During the 2-year period beginning on the 
     effective date of this section, the Secretary of Agriculture 
     shall collect, on a monthly basis, from each marketing order 
     issued with respect to milk and its products under section 8c 
     of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, and from the comparable milk marketing order issued 
     by the State of California, an amount equal to the product 
     of--
       (A) $0.80 per hundredweight; and
       (B) the total hundredweights of all milk of the highest use 
     classification marketed under the order for the month.
       (2) Disbursements.--The Secretary shall pay, on a monthly 
     basis, to each marketing order referred to in paragraph (1) 
     an amount equal to the product of--
       (A) the total collection under paragraph (1) for the month; 
     and
       (B) the ratio of the total hundredweights of all milk 
     marketed for the month under that order to all milk marketed 
     for the month under all such orders.
       (3) Effect on blend prices.--Producer blend prices under a 
     milk marketing order shall be adjusted to account for 
     collections made under paragraph (1) and disbursements made 
     under paragraph (2).
       (c) Enforcement.--
       (1) In general.--Amounts for which a milk marketing order 
     are responsible under subsection (b) shall be determined on a 
     monthly basis and shall be collected and remitted to the 
     Secretary in the manner prescribed by the Secretary.
       (2) Penalties.--If any person fails to remit the amount 
     required in subsection (b) or fails to comply with such 
     requirements for recordkeeping or otherwise as are required 
     by the Secretary to carry out this section, the person shall 
     be liable to the Secretary for a civil penalty up to an 
     amount determined by multiplying--
       (A) the quantity of milk involved in the violation; by
       (B) the support rate for milk in effect at the time of the 
     violation under section ____01.
       (3) Enforcement.--The Secretary may enforce this section in 
     the courts of the United States.
       (d) Conforming Repeal.--Section 8c(5)(A) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended by striking out the sentence beginning 
     ``Throughout the 2-year period'' and all that follows through 
     the end of the subparagraph.
       (e) Effective Date.--Except as provided in subsection (f), 
     this section shall take effect on the first day of the first 
     month beginning not less than 30 days after the date of the 
     enactment of this Act.
       (f) Implementation.--Not later than the effective date of 
     this section, the Secretary shall amend Federal milk 
     marketing orders issued under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, to 
     effectuate the requirements of this section. The amendments 
     shall not be--
       (1) subject to a referendum under subsection (17) or (19) 
     of such section among milk producers to determine whether 
     issuance of such order is approved or favored by milk 
     producers;
       (2) preconditioned on the existence of a marketing 
     agreement among handlers under subsection (8) of such section 
     and section 8b of such Act (7 U.S.C. 608b);
       (3) subject to rulemaking under title 5, United States 
     Code; or
       (4) subject to review or approval by other executive 
     agencies.

     SEC. ____08. ESTABLISHMENT OF TEMPORARY CLASS IV PRICE AND 
                   TEMPORARY CLASS IV EQUALIZATION POOL.

       (a) Temporary Classification of Class IV Milk.--
       (1) Classification.--For purposes of classifying milk in 
     accordance with the form in which or the purpose for which it 
     is used, the Secretary of Agriculture shall designate all 
     milk marketed in the 48 contiguous States of the United 
     States and used to 

[[Page S630]]
     produce butter, butter oil, nonfat dry milk, or dry whole milk as Class 
     IV milk. The Secretary may include other products of milk, 
     except cheese, within the Class IV classification if the 
     Secretary determines that inclusion of the product would be 
     fair and equitable.
       (2) Use of classification.--Each marketing order issued 
     with respect to milk and its products under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, and each comparable State milk marketing order, shall 
     use the classification required by paragraph (1) in lieu of 
     any other classification, such as Class III-A milk, to 
     properly classify milk used to produce butter, butter oil, 
     nonfat dry milk, or dry whole milk.
       (b) Establishment of Class IV Pool.--The Secretary shall 
     establish a Class IV pool for the purpose of making 
     collections and disbursements related to milk classified as 
     Class IV milk under subsection (a). The Class IV pool shall 
     apply to milk covered by a milk marketing order referred to 
     in subsection (a) and unregulated milk.
       (c) Establishment of Monthly Class IV Price.--For the 
     purpose of determining whether the Secretary will make 
     collections and disbursements under the Class IV equalization 
     pool, the Secretary shall establish, on a monthly basis, a 
     price for dairy products manufactured from Class IV milk on a 
     3.5 percent butterfat basis. In determining that price, the 
     Secretary shall calculate the amount equal to--
       (1) the sum of--
       (A) the product of the Western States Extra Grade and Grade 
     A price per pound for nonfat dry milk and 8.613; and
       (B) the product of the Chicago Mercantile Exchange Grade AA 
     price per pound for butter and 4.2; less
       (2) a manufacturing allowance equal to $1.65 per 
     hundredweight of milk.
       (d) Operation of Class IV Equalization Pool.--
       (1) Application of subsection.--This subsection shall apply 
     in any month in which the support price for milk under 
     section ____01, adjusted to 3.5 percent butterfat, exceeds 
     the Class IV price established under subsection (c).
       (2) Collection.--In any month in which the Class IV 
     equalization pool is in operation under paragraph (1), each 
     milk marketing order referred to in subsection (a) and each 
     handler of unregulated milk shall pay into the Class IV 
     equalization pool an amount equal to the product of--
       (A) the total hundredweights of Class IV milk used to 
     manufacture dairy products during that month under all such 
     orders and by all such handlers;
       (B) 50 percent of the amount by which the support price for 
     milk under section ____01, adjusted to 3.5 percent butterfat, 
     exceeded the Class IV price determined under subsection (c) 
     for that month; and
       (C) the ratio of the total hundredweights of all milk 
     marketed during that month under that order or by that 
     handler to the total hundredweights of all milk marketed for 
     that month under all such orders and by all such handlers.
       (3) Disbursements.--In any month in which the Class IV 
     equalization pool is in operation under paragraph (1), each 
     milk marketing order referred to in subsection (a) in which 
     products were manufactured from Class IV milk during that 
     month and each handler of unregulated milk that manufactured 
     products from Class IV milk during that month shall receive 
     from the Class IV equalization pool an amount equal to the 
     product of--
       (A) the total collection under paragraph (2) for the month; 
     and
       (B) the ratio of the total hundredweights of Class IV milk 
     manufactured into dairy products during that month under that 
     order or by that handler to the total hundredweights of Class 
     IV milk manufactured into dairy products during that month 
     under all such orders and by all such handlers.
       (4) Effect on blend prices.--Producer blend prices under a 
     milk marketing order referred to in subsection (a) shall be 
     adjusted to account for collections under paragraph (2) and 
     disbursements under paragraph (3).
       (e) Enforcement.--
       (1) In general.--Amounts for which a milk marketing order 
     or handler are responsible under subsection (b) shall be 
     determined on a monthly basis and shall be collected and 
     remitted to the Secretary in the manner prescribed by the 
     Secretary.
       (2) Penalties.--If any person fails to remit the amount 
     required in subsection (c) or fails to comply with such 
     requirements for recordkeeping or otherwise as are required 
     by the Secretary to carry out this section, the person shall 
     be liable to the Secretary for a civil penalty up to an 
     amount determined by multiplying--
       (A) the quantity of milk involved in the violation; by
       (B) the support rate for milk in effect at the time of the 
     violation under section ____01.
       (3) Enforcement.--The Secretary may enforce this section in 
     the courts of the United States.
       (f) Effective Date.--Except as provided in subsection (g), 
     this section shall--
       (1) take effect on the first day of the first month 
     beginning not less than 30 days after the date of the 
     enactment of this Act; and
       (2) apply during the 2-year period beginning on such 
     effective date.
       (g) Implementation.--Not later than the start of the 
     effective date of this section, the Secretary shall amend 
     Federal milk marketing orders issued under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, to effectuate the requirements of this section. The 
     amendments shall not be--
       (1) subject a referendum under subsection (17) or (19) of 
     such section among milk producers to determine whether 
     issuance of such order is approved or favored by milk 
     producers;
       (2) preconditioned on the existence of a marketing 
     agreement among handlers under subsection (8) of such section 
     and section 8b of such Act (7 U.S.C. 608b);
       (3) subject to rulemaking under title 5, United States 
     Code; or
       (4) subject to review or approval by other executive 
     agencies.

     SEC. ____09. AUTHORITY FOR ESTABLISHMENT OF STANDBY POOLS.

       (a) Authority to Establish.--As soon as possible after the 
     effective date of this section, the Secretary of Agriculture 
     shall publish in the Federal Register an invitation for 
     interested persons to submit proposals for the establishment 
     within Federal milk marketing orders issued under section 8c 
     of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, of standby pools to facilitate the movement of milk 
     over long distances during periods of shortage through the 
     sharing of proceeds from sales of milk of the highest use 
     classification due to producers under the order with 
     producers shipping to plants regulated by another order to 
     provide a reserve supply of milk in the other market.
       (b) Approval or Termination of Participation in Standby 
     Pool.--Order provisions under this section shall not become 
     effective in any marketing order unless such provisions are 
     approved by producers in the manner provided for the approval 
     of marketing orders under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, but 
     separately from other order provisions. Standby pool 
     provisions approved under this section in an order may be 
     disapproved separately by producers or terminated separately 
     by the Secretary under section 8c(16)(B) of such Act. Such 
     disapproval or termination shall not be considered to be a 
     disapproval or termination of the other terms of that order.
       (c) Effective Date.--This section shall take effect on the 
     first day of the first month beginning not less than 30 days 
     after the date of the enactment of this Act.
          Subtitle B--Reform of Federal Milk Marketing Orders

     SEC. ____21. ISSUANCE OR AMENDMENT OF FEDERAL MILK MARKETING 
                   ORDERS TO IMPLEMENT CERTAIN REFORMS.

       (a) Issuance of Amended Orders.--Subject to the time limits 
     specified in section ____22, the Secretary of Agriculture 
     shall issue new or amended marketing orders with respect to 
     milk and its products under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, to 
     effectuate the requirements of subsection (b). The orders 
     shall take effect on the date the orders are issued and shall 
     supersede all other marketing orders and any other statutes, 
     rules, and regulations that are applicable to the pricing and 
     marketing of milk and its products in effect immediately 
     before that date, whether under the authority of section 8c 
     of such Act or a State or local law.
       (b) Reform Requirements.--The Secretary shall reform the 
     Federal milk marketing order system under subsection (a) to 
     accomplish the following purposes:
       (1) Consolidation of Federal milk marketing orders into not 
     less than 8 nor more than 13 orders, which shall also include 
     those areas of the 48 contiguous States not covered by a 
     Federal milk marketing order on the date of the enactment of 
     this Act. One of the new Federal milk marketing orders shall 
     only cover the State of California. A new or amended order 
     shall have the right to blend order receipts to address 
     unique issues to that order such as a preexisting State quota 
     system.
       (2) Implementation of uniform multiple component pricing 
     for milk used in manufactured dairy products.
       (3) Establishment of class prices for milk used to produce 
     cheese, nonfat dry milk, and butter based on national product 
     prices, less a manufacturing allowance. The resulting prices 
     shall not vary regionally, except to reflect variances in 
     transportation and reasonable operating costs, if any, of 
     efficient processing plants in different geographical areas.
       (c) Status of Producer Handlers.--In amending Federal milk 
     marketing orders under this section, the Secretary shall 
     ensure that the legal status of producer handlers of milk 
     under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
     reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, shall be the same after the amendments 
     made by this section take effect as it was before the 
     effective date of the amendments.

     SEC. ____22. REFORM PROCESS.

       (a) Process.--In preparation for the issuance of the new or 
     amended Federal milk marketing orders required under section 
     ____21, the Secretary of Agriculture shall comply with the 
     following expedited procedural requirements:
     
[[Page S631]]

       (1) Not later than 165 days after the date of the enactment 
     of this Act, the Secretary shall issue proposed amendments or 
     new milk marketing orders to effectuate the reform 
     requirements specified in such section .
       (2) The Secretary shall provide for a 75-day comment period 
     on the proposed amendments or orders issued under paragraph 
     (1).
       (3) Not later than 120 days after the end of the comment 
     period provided under paragraph (2), the Secretary shall 
     publish in the Federal Register a final administrative 
     decision regarding the issuance or amendment of Federal milk 
     marketing orders to effectuate the reform requirements 
     specified in such section.
       (b) Referendum and Marketing Agreement.--After the issuance 
     of the new or amended Federal milk marketing orders under 
     section ____21, the Secretary may conduct a referendum in the 
     manner provided in section 8c(16)(B) of the Agricultural 
     Adjustment Act (7 U.S.C. 608c(16)(B)), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, with respect to each order to determine whether milk 
     producers subject to the order favor the termination of the 
     order.
       (c) Application of Administrative Procedures Act.--The 
     issuance of the new or amended Federal milk marketing orders 
     required under section ____21 shall not be subject to 
     rulemaking under title 5, United States Code.
       (d) Review and Approval.--The action of the Secretary under 
     section ____21 shall not be subject to review or approval by 
     any other executive agency.

     SEC. ____23. EFFECT OF FAILURE TO COMPLY WITH REFORM PROCESS 
                   REQUIREMENTS.

       (a) Failure to Timely Issue or Amend Orders.--If, before 
     the end of the 1-year period beginning on the date of the 
     enactment of this Act, the Secretary of Agriculture does not 
     issue new or amended Federal milk marketing orders under 
     section 8c of the Agricultural Adjustment Act (7 U.S.C. 
     608c), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, to effectuate the 
     requirements of section ____21(b), then the Secretary may not 
     assess or collect assessments from milk producers or handlers 
     under such section 8c for marketing order administration and 
     services provided under such section after the end of that 
     period. The Secretary may not reduce the level of services 
     provided under such section on account of the prohibition 
     against assessments, but shall rather cover the cost of 
     marketing order administration and services through funds 
     available for the Agricultural Marketing Service of the 
     Department of Agriculture.
       (b) Failure to Timely Implement Orders.--Unless the 
     Secretary certifies to Congress before the end of the 2-year 
     period beginning on the date of the enactment of this Act 
     that all of the Federal marketing order reforms required by 
     section ____21(b) have been fully implemented, then, 
     effective at the end of that period--
       (1) the Secretary shall immediately cease all price support 
     activities under section ____01;
       (2) the Secretary shall immediately terminate all Federal 
     milk marketing orders under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, and may not 
     issue any further order under such Act with respect to milk;
       (3) the Commodity Credit Corporation shall immediately 
     cease to operate the dairy export incentive program under 
     section 153 of the Food Security Act of 1985 (15 U.S.C. 713a-
     14);
       (4) the Secretary and the National Processor Advertising 
     and Promotion Board shall immediately cease all activities 
     under the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401 et 
     seq.); and
       (5) the Secretary and the National Dairy Promotion and 
     Research Board shall immediately cease all activities under 
     the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 
     et seq.).
                                 ______


                    CONRAD AMENDMENTS NOS. 3135-3144

  (Ordered to lie on the table.)
  Mr. CONRAD submitted 10 amendments intended to be proposed by him to 
the bill S. 1541, supra; as follows:

                           Amendment No. 3135

       At the appropriate place in the title relating to 
     conservation, insert the following:

     SEC.  . WATER BANK PROGRAM.

       Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
     3830) is amended by adding at the end the following:
       ``(d) Water Bank Program.--For purposes of this Act, 
     acreage enrolled, prior to the date of enactment of this 
     subsection, in the water bank program authorized by the Water 
     Bank Act (16 U.S.C. 1301 et seq.) shall be considered to have 
     been enrolled in the conservation reserve program on the date 
     the acreage was enrolled in the water bank program.''.
                                                                    ____


                           Amendment No. 3136

       At the end of the title relating to conservation, add the 
     following:

     SEC.  . FLOOD WATER RETENTION PILOT PROJECTS.

       Section 16 of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590p) is amended by adding at the end the 
     following:
       ``(l) Flood Water Retention Pilot Projects.--
       ``(1) In general.--In cooperation with States, the 
     Secretary shall carry out at least 1 but not more than 2 
     pilot projects to create and restore natural water retention 
     areas to control storm water and snow melt runoff within 
     closed drainage systems.
       ``(2) Practices.--To carry out paragraph (1), the Secretary 
     shall provide cost-sharing and technical assistance for the 
     establishment of nonstructural landscape management 
     practices, including agricultural tillage practices and 
     restoration, enhancement, and creation of wetland 
     characteristics.
       ``(3) Funding.--
       ``(A) Limitation.--The funding used by the Secretary to 
     carry out this subsection shall not exceed $10,000,000 per 
     project.
       ``(B) Use of the commodity credit corporation.--The 
     Secretary shall use the funds, facilities, and authorities of 
     the Commodity Credit Corporation to carry out this 
     subsection.
       ``(4) Additional pilot projects.--
       ``(A) Evaluation.--Not later than 2 years after a pilot 
     project is implemented, the Secretary shall evaluate the 
     extent to which the project has reduced or may reduce Federal 
     outlays for emergency spending and unplanned infrastructure 
     maintenance by an amount that exceeds the Federal cost of the 
     project.
       ``(B) Additional projects.--If the Secretary determines 
     that pilot projects carried out under this subsection have 
     reduced or may reduce Federal outlays as described in 
     subparagraph (A), the Secretary may carry out, in accordance 
     with this subsection, pilot projects in addition to the 
     projects authorized under paragraph (1).''.
                                                                    ____


                           Amendment No. 3137

       At the appropriate place in the title relating to 
     conservation, insert the following:

     SEC.   . ELIGIBLE LANDS UNDER CONSERVATION RESERVE PROGRAM.

       Section 1231(b)(4) of the Food Security Act of 1985 (16 
     U.S.C. 3831(b)(4)) is amended--
       (1) in subparagraph (C), by striking ``or'' at the end;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(E) if the Secretary determines that the lands will be 
     used to store water for flood control in a closed basin.''.
                                                                    ____


                           Amendment No. 3138

       At the appropriate place in the title relating to 
     conservation, insert the following:

     SEC.   . ABANDONMENT OF CONVERTED WETLANDS.

       Section 1222 of the Food Security Act of 1985 (16 U.S.C. 
     3822) is amended by adding at the end the following:
       ``(k) Abandonment of Converted Wetlands.--The Secretary 
     shall not determine that a prior converted or cropped wetland 
     is abandoned, and therefore that the wetland is subject to 
     section 404 of the Federal Water Pollution Control Act (33 
     U.S.C. 1344) or this subtitle, on the basis that a producer 
     has not planted an agricultural crop on the prior converted 
     or cropped wetland after the date of enactment of this 
     subsection.''.
                                                                    ____


                           Amendment No. 3139

       At the appropriate place in the title relating to 
     conservation, insert the following:

     SEC.   . EASEMENT PRIORITY.

       Section 1237C of the Food Security Act of 1985 (16 U.S.C. 
     3837c) is amended by striking subsection (d) and inserting 
     the following:
       ``(d) Easement Priority.--In carrying out this subchapter, 
     the Secretary shall--
       ``(1) take into consideration costs and future agricultural 
     and food needs; and
       ``(2) give priority to--
       ``(A) restoration on acres that will provide the greatest 
     wetlands functions and values and cost effectiveness for the 
     wetlands functions and values achieved; and
       ``(B) in consultation with the Secretary of the Interior, 
     restoring wetlands based on the value of the acres for 
     protecting and enhancing habitat for migratory birds and 
     other wildlife.''.
                                                                    ____


                           Amendment No. 3140

       At the appropriate place in the title relating to 
     conservation, insert the following:

     SEC.  . WETLANDS RESERVE PROGRAM RESTORATION COST-SHARE.

       Section 1237 of the Food Security Act of 1985 (16 U.S.C. 
     3837) is amended by adding at the end the following:
       ``(h) Restoration Cost-Share.--
       ``(1) In general.--The Secretary may use up to 20 percent 
     of the funds made available under this subchapter to carry 
     out projects through cooperative agreements with landowners, 
     in lieu of the purchase of an easement.
       ``(2) Terms.--An agreement under paragraph (1) shall--
       ``(A) be for a term of not less than 10 years and not more 
     than 30 years;
       ``(B) make available at no cost to the Secretary the land 
     on which restoration is to occur; and
       ``(C) provide for a restoration cost-share payment to the 
     landowner in an amount that does not exceed 75 percent of the 
     eligible costs.
       ``(3) Partnership arrangements.--The Secretary may enter 
     into a partnership arrangement with a public or private 
     entity to carry out a project under this subsection, 
     including an agreement to share financial, technical, 
     management, or other resources.''.
     
[[Page S632]]


                           Amendment No. 3141

       On page 85, strike lines 19 through 24 and insert the 
     following:
       (A) In general.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended--
       (i) in subsection (a), by striking ``1995'' and inserting 
     ``2002''; and
       (ii) by striking subsection (d) and inserting the 
     following:
       ``(d) Maximum Enrollment.--
       ``(1) In general.--Not more than 36,520,000 acres 
     (including acreage subject to 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) and the Water Bank Act (16 U.S.C. 1301 et 
     seq.)) may be enrolled in the conservation reserve during the 
     1996 through 2002 calendar years.
       ``(2) Funding.--Funding for the conservation reserve 
     program shall be sufficient to enroll the maximum number of 
     acres specified in paragraph (1) during the 1996 through 2002 
     calendar years.
       ``(3) Exception.--Notwithstanding paragraphs (1) and (2), 
     the Secretary may enroll fewer than the maximum number of 
     acres specified in paragraph (1) if the Secretary makes a 
     formal determination that the national environmental and 
     conservation objectives of the conservation reserve program 
     can be achieved by enrolling fewer acres.''.
                                                                    ____


                           Amendment No. 3142

       On page 87, strike lines 19 through 25.
                                                                    ____


                           Amendment No. 3143

     SEC. 101. SHORT TITLE.

       This Act may be cited as the ``Agricultural Extension Act 
     of 1995''.

     SEC. 102. AUTHORITY FOR 1996 AND 1997 AGRICULTURAL PROGRAMS.

       (a) In General.--Notwithstanding any other provision of law 
     except as provided in this Act and the amendments made by 
     this Act, the provisions of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1281 et seq.), the Agricultural Act of 1949 
     (7 U.S.C. 1421 et seq.), the Food Security Act of 1985 
     (Public Law 99-198), and the Food, Agriculture, Conservation 
     and Trade Act of 1990 (Public Law 101-624) and each program 
     that was authorized or reauthorized by any of the Acts, that 
     were applicable on September 30, 1995, shall be applicable 
     for 1996 and 1997.
       (b) Flexibility.--Amend section 504 of the Agricultural Act 
     of 1949 (7 U.S.C. 1464) by striking subsections (c), (d), and 
     (e) and inserting the following:
       ``(c) Non-Payment Acres.--In the case of the 1996 and 1997 
     crops, any crop or conserving crop listed in subsection 
     (b)(1) may be planted on the acres of a crop acreage base not 
     eligible for payment under this Act.
       ``(d) Loan Eligibility.--In the case of the 1996 and 1997 
     crops, producers on a farm with crop acreage base may plant 
     any program crop on the crop acreage base and shall be 
     eligible to receive purchases, loans, and loan deficiency 
     payments for the program crop.''.
       (c) Findley Adjustment.--Amend the Agricultural Act of 1949 
     (7 U.S.C. 1421 et seq.)--
       (1) in section 105B(a)(3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D).
       (2) in section 107B(a)(3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D).
       (d) 1997 Crop Payments--
       (1) Revenue payments.--
       (A) In General.--In the case of the 1997 crops of wheat, 
     feed grain, upland cotton, and rice in addition to payments 
     authorized in subsection (a), the Secretary shall issue 
     payments to producers who participate in price support 
     programs authorized by subsection (a) in accordance with the 
     formula described in subparagraph (B).
       (B) Formula.--In accordance with subparagraph (A), the 
     Secretary shall provide a payment per acre equal to the 
     amount in which the Average Revenue for the producer's farm, 
     described in clause (i) exceeds the Producers' Revenue 
     described in clause (ii) for each of the producer's payment 
     acres.
       (i) Average revenue.--For the purposes of this 
     subparagraph, ``average revenue'' means the five year Olympic 
     average price for the county for the program multiplied by 
     the producer's program payment yield for the farm.
       (ii) Producer's revenue.--For the purposes of this 
     paragraph, the term ``producer's revenue'' means the per acre 
     revenue received for production from:
       (I) Commodity Credit Corporation (CCC) deficiency payments;
       (II) revenue from sales of the program crop in excess of 
     any CCC price support loans received;
       (III) crop insurance indemnity payments;
       (IV) CCC price support loans; and
       (V) CCC loan deficiency payments.
       (2) Guaranteed advanced payments for the 1997 crops.--In 
     the case of 1997 crops of wheat, feed grains, upland cotton, 
     and rice, the Secretary shall provide to producers who 
     participate in programs authorized by subsection (a) a 
     nonrefundable advanced deficiency payment subject to 
     paragraph (3) which shall equal the greater of--
       (A) the advanced deficiency payment authorized by 
     subsection (a); or
       (B) the payment authorized in section 103(c)(1).
       (3) Limitation.--In calculating deficiency payments in 
     accordance with programs authorized in subsection (a), the 
     Secretary shall deduct any payments received by the producer 
     under paragraph (2) from the producer's deficiency payments.
       (e) Acreage Reduction Programs.--In the case of price 
     support programs authorized by subsection (a) for the 1996 
     and 1997 crops of wheat, feed grains, upland cotton, and 
     rice, the Secretary shall set the acreage reduction level to 
     be zero.

     SEC. 103. SPECIAL FUNDS FOR DEFICIENCY PAYMENTS, AND 
                   CONSERVATION AND RURAL AMERICA.

       (a) Account.--Notwithstanding any other provision of law, 
     the Commodity Credit Corporation shall transfer $     into a 
     Deficiency Payment, Account (hereafter referred as 
     ``Deficiency Account'') which shall remain available until 
     expended for the purposes specified in this subsection and $  
        into a Conservation and Fund for Rural America Account 
     (hereafter referred as ``Conservation and Rural America 
     Account'') which shall remain available until expended.
       (b) Deficiency Account.--
       (1) Funds from the Deficiency Account shall be used for the 
     following purposes:
       (A) Advanced deficiency payments for 1996 crops of wheat, 
     feed grain, upland cotton, and rice authorized by paragraph 
     (2); and
       (B) Any deficiency payments authorized by the Agricultural 
     Act of 1949 (7 U.S.C. 1421 et seq.) for 1995 crops of wheat, 
     feed grains, upland cotton, and rice issued after date of 
     enactment of this Act.
       (1) Payments.--
       (A) 1996--Crop advanced deficiency payments.--
       (i) In general.--The Secretary shall issue nonfundable 
     advanced deficiency payments for the 1996 crops of wheat, 
     feed grains, upland cotton, and rice to producers who 
     participate in price support programs authorized in section 
     102 from the Account in accordance with the formula specified 
     in clause (ii).
       (ii) Formula.--The advanced deficiency payment rate for 
     wheat, feed grains, upland cotton, and rice shall be the 
     greater of--
       (I) the 1995 advanced payment rate for the crop; or
       (II) the 1996 advanced payment rate for the crop determined 
     in accordance with section 102.
       (c) Conservation and Rural America Account.--
       (1) In general.--Funds the Conservation and Rural America 
     Account may be used to conduct programs as follows:
       (A) Conservation programs.--The Secretary may conduct the 
     Environmental Quality Incentive Program described in section 
     1201 of S. 1357 (as passed by the Senate on October 27, 
     1995); and
       (B) Fund for rural america.--Notwithstanding any other 
     provision of law, the Secretary may transfer funds from the 
     Fund for Rural America to--
       (i) rural development programs authorized by the 
     Consolidated Farm and Rural Development Act; and
       (ii) research programs authorized or reauthorized by Title 
     XVI of the Food, Agriculture, Conservation, and Trade Act of 
     1990 (Public Law 101-624) or by section 102 of this Act.
                                                                    ____


                           Amendment No. 3144

       Strike all after the first word and insert:

     SEC. 101 SHORT TITLE.

       This Act may be cited as the ``Agricultural Extension Act 
     of 1995''.

     SEC. 102. AUTHORITY FOR 1996 AND 1997 AGRICULTURAL PROGRAMS.

       (a) In General.--Notwithstanding any other provision of law 
     except as provided in this Act and the amendments made by 
     this Act, the provisions of the Agricultural Adjustment of 
     1938 (7 U.S.C. 1281 et seq.), the Agricultural Act of 1949 (7 
     U.S.C. 1421 et seq.), the Food Security Act of 1985 (Public 
     Law 99-198), and the Food, Agriculture, Conservation and 
     Trade Act of 1990 (Public Law 101-624) and each program that 
     was authorized or reauthorized by any of the Acts, that were 
     applicable on September 30, 1995, shall be applicable for 
     1996 and 1997.
       (b) Flexibility.--Amend section 504 of the Agricultural Act 
     of 1949 (7 U.S.C. 1464) by striking subsections (c), (d), and 
     (e) and inserting the following:
       ``(c) Non-Payment Acres.--In the case of the 1996 and 1997 
     crops, any crop or conserving crop listed in subsection 
     (b)(1) may be planted on the acres of a crop acreage base not 
     eligible for payment under this Act.
       ``(d) Loan Eligibility.--In the case of the 1996 and 1997 
     crops, producers on a farm with crop acreage base may plant 
     any program crop on the crop acreage base and shall be 
     eligible to receive purchases, loans, and loan deficiency 
     payments for the program crop.''.
       (c) Findley Adjustment.--Amend the Agricultural Act of 1949 
     (7 U.S.C. 1421 et seq.)--
       (1) in section 105B(a)(3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D).
       (2) in section 107B(a)(3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D).
       (d) 1997 Crop Payments.--
       (1) Revenue payments.--
       (A) In general.--In the case of the 1997 crops of wheat, 
     feed grain, upland cotton, and rice in addition to payments 
     authorized in subsection (a), the Secretary shall issue 
     payments to producers who participate in price support 
     programs authorized by subsection (a) in accordance with the 
     formula described in subparagraph (B).
       (B) Formula.--In accordance with subparagraph (A), the 
     Secretary shall provide a payment per acre equal to the 
     amount in which 

[[Page S633]]
     the Average Revenue for the producer's farm, described in clause (i) 
     exceeds the Producers' Revenue described in clause (ii) for 
     each of the producer's payment acres.
       (i) Average revenue.--For the purposes of this 
     subparagraph, ``average revenue'' means the five year Olympic 
     average price for the county for the program multiplied by 
     the producer's program payment yield for the farm.
       (ii) Producer's revenue.--For the purposes of this 
     paragraph, the term ``producer's revenue'' means the per acre 
     revenue received for production from:
       (I) Commodity Credit Corporation (CCC) deficiency payments;
       (II) revenue from sales of the program crop in excess of 
     any CCC price support loans received;
       (III) crop insurance indemnity payments;
       (IV) CCC price support loans; and
       (V) CCC loan deficiency payments.
       (2) Guaranteed advanced payments for the 1997 crops.--In 
     the case of 1997 crops of wheat, feed grains, upland cotton, 
     and rice, the Secretary shall provide to producers who 
     participate in programs authorized by subsection (a) a 
     nonrefundable advanced deficiency payment subject to 
     paragraph (3) which shall equal the greater of--
       (A) the advanced deficiency payment authorized by 
     subsection (a); or
       (B) the payment authorized in section 103(c)(1).
       (3) Limitation.--In calculating deficiency payments in 
     accordance with programs authorized in subsection (a), the 
     Secretary shall deduct any payments received by the producer 
     under paragraph (2) from the producer's deficiency payments.
       (e) Acreage Reduction Programs.--In the case of price 
     support programs authorized by subsection (a) for the 1996 
     and 1997 crops of wheat, feed grains, upland cotton, and 
     rice, the Secretary shall set the acreage reduction level to 
     be zero.

     SEC. 103. SPECIAL FUNDS FOR DEFICIENCY PAYMENTS, AND 
                   CONSERVATION AND RURAL AMERICA.

       (a) Account.--Notwithstanding any other provision of law, 
     the Commodity Credit Corp shall transfer $     into a 
     Deficiency Payment Account (hereafter referred to as 
     ``Deficiency Account'') which shall remain available until 
     expended for the purposes specified in this subsection and $  
        into a Conservation and Fund for Rural America Account 
     (hereafter referred to as ``Conservation and Rural America 
     Account'') which shall remain available until expended.
       (b) Deficiency Account.--
       (1) Funds from the Deficiency Account shall be used for the 
     following purposes:
       (A) Advanced deficiency payments for 1996 crops of wheat, 
     feed grain, upland cotton, and rice authorized by paragraph 
     (2); and
       (B) Any deficiency payments authorized by the Agricultural 
     Act of 1949 (7 U.S.C. 1421 et seq.) for 1995 crops of wheat, 
     feed grains, upland cotton, and rice issued after date of 
     enactment of this Act.
       (2) Payments.--
       (A) 1996 Crop advanced deficiency payments.--
       (i) In general.--The Secretary shall issue nonfundable 
     advanced deficiency payments for the 1996 crops of wheat, 
     feed grains, upland cotton, and rice to producers who 
     participate in price support programs authorized in section 
     102 from the Account in accordance with the formula specified 
     in clause (ii).
       (ii) Formula.--The advanced deficiency payment rate for 
     wheat, feed grains, upland cotton, and rice shall be the 
     greater of--
       (I) the 1995 advanced payment rate for the crop; or
       (II) the 1996 advanced payment rate for the crop determined 
     in accordance with section 102.
       (c) Conservation and Rural America Account.--
       (1) In general.--Funds the Conservation and Rural America 
     Account may be used to conduct programs as follows:
       (A) Conservation programs.--The Secretary may conduct the 
     Environmental Quality Incentive Program described in section 
     1201 of S. 1357 (as passed by the Senate on October 27, 
     1995); and
       (B) Fund for rural america.--Notwithstanding any other 
     provision of law, the Secretary may transfer funds from the 
     Fund for Rural America to--
       (i) rural development programs authorized by the 
     Consolidated Farm and Rural Development Act; and
       (ii) research programs authorized or reauthorized by title 
     XVI of the Food, Agriculture, Conservation, and Trade Act of 
     1990 (Public Law 101-624) or by section 102 of this Act.
                                 ______


                        KOHL AMENDMENT NO. 3145

  (Ordered to lie on the table.)
  Mr. Kohl submitted an amendment intended to be proposed by him to the 
bill S. 1541, supra; as follows:

       On page 74, strike lines 5 through 24 and insert the 
     following:
       (B) by transferring sections 111 and 201(c) (7 U.S.C. 1445f 
     and 1446(c)) 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 and 306, 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 ``section 204'' and inserting ``section 
     ______01 of the Agricultural Market Transition Act of 1996''.
                           TITLE ____--DAIRY
          Subtitle A--Milk Price Support and Other Activities

     SEC. ____01. MILK PRICE SUPPORT PROGRAM.

       (a) Support Activities.--To replace the milk price support 
     program established under section 204 of the Agricultural Act 
     of 1949 (7 U.S.C. 1446e), which is repealed by section 
     19(b)(2)), the Secretary of Agriculture shall use the 
     authority provided in this section to support the price of 
     milk produced in the 48 contiguous States through the 
     purchase of cheddar cheese produced from such milk. Until the 
     first day of the first month beginning not less than 30 days 
     after the date of the enactment of this Act, the Secretary 
     also may support the price of milk under this section through 
     the purchase of butter and nonfat dry milk produced from milk 
     produced in the 48 contiguous States.
       (b) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (1) During calendar year 1996, not less than $10.35.
       (2) During calendar year 1997, not less than $10.25.
       (3) During calendar year 1998, not less than $10.15.
       (4) During calendar year 1999, not less than $10.05.
       (5) During calendar year 2000, not less than $9.95.
       (6) During calendar years 2001 and 2002, not less than 
     $9.85.
       (c) Bid Prices.--The Commodity Credit Corporation support 
     purchase prices under this section for cheddar cheese (and 
     for butter and nonfat dry milk subject to subsection (a)) 
     announced by the Corporation shall be the same for all of 
     that milk product sold by persons offering to sell the 
     product to the Corporation. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price not less than the rate of 
     price support for milk in effect during a 12-month period 
     under this section.
       (d) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity Credit Corporation to carry out this section.
       (e) Residual Authority for Refund of Budget Deficit 
     Assessments.--
       (1) Application of subsection.--This subsection shall apply 
     with respect to the reductions made under subsection (h)(2) 
     of section 204 of the Agricultural Act of 1949, as in effect 
     on the day before the date of the enactment of this Act, in 
     the price of milk received by producers during calendar years 
     1995 and 1996.
       (2) Refund required.--The Secretary shall provide a refund 
     of the entire reduction made under such subsection (h)(2) in 
     the price of milk received by a producer during a calendar 
     year referred to in paragraph (1) if the producer provides 
     evidence that the producer did not increase marketings in 
     that calendar year when compared to the preceding calendar 
     year.
       (3) Treatment of refunds.--A refund under this subsection 
     shall not be considered as any type of price support or 
     payment for purposes of sections 1211 and 1221 of the Food 
     Security Act of 1985 (16 U.S.C. 3811, 3821).
       (g) Transfer of Milk Products to Military and Veterans 
     Hospitals.--
       (1) Transfer authorized.--As a means of increasing the 
     utilization of milk and milk products, upon the certification 
     by the Secretary of Veterans Affairs or by the Secretary of 
     the Army, acting for the military departments under the 
     Single Service Purchase Assignment for Subsistence of the 
     Department of Defense, that the usual quantities of milk 
     products have been purchased in the normal channels of trade, 
     the Commodity Credit Corporation shall make available--
       (A) to the Secretary of Veterans Affairs at warehouses 
     where milk products are stored, such milk products acquired 
     under this section as the Secretary of Veterans Affairs 
     certifies are required in order to provide milk products as a 
     part of the ration in hospitals under the jurisdiction of the 
     Secretary of Veterans Affairs; and
       (B) to the Secretary of the Army, at warehouses where milk 
     products are stored, such milk products acquired under this 
     section as the Secretary of the Army certifies can be 
     utilized in order to provide additional milk products as a 
     part of the ration--
       (i) of the Army, Navy, Air Force, or Coast Guard;
       (ii) in hospitals under the jurisdiction of the Department 
     of Defense; and
       (iii) of cadets and midshipmen at, and other personnel 
     assigned to, the United States Merchant Marine Academy.
       (2) Reports.--The Secretary of Veterans Affairs and the 
     Secretary of the Army shall report every six months to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Agriculture of the House of 
     Representatives and the Secretary of Agriculture the amount 
     of milk products used under this subsection.
       (3) Process.--The Secretary of Veterans Affairs and the 
     Secretary of the Army shall 

[[Page S634]]
     reimburse the Commodity Credit Corporation for all costs associated in 
     making milk products available under this subsection.
       (4) Limitation.--The obligation of the Commodity Credit 
     Corporation to make milk products available pursuant to this 
     subsection shall be limited to milk products acquired by the 
     Corporation under this section and not disposed of under 
     provisions (1) and (2) of section 390B(a) of the Agricultural 
     Adjustment Act of 1938.
       (h) Period of Effectiveness.--Notwithstanding any other 
     provision of law, this section shall be effective only during 
     the period
       (1) beginning on the date of the enactment of this Act; and
       (2) ending on December 31, 2002.

     SEC. ____02. RECOURSE LOANS FOR COMMERCIAL PROCESSORS OF 
                   DAIRY PRODUCTS.

       (a) Recourse Loans Available.--The Secretary of Agriculture 
     shall make recourse loans available to commercial processors 
     of eligible dairy products to assist such processors to 
     manage inventories of eligible dairy products to assure a 
     greater degree of price stability for the dairy industry 
     during the year. Recourse loans may be made available under 
     such reasonable terms and conditions as the Secretary may 
     prescribe. The Secretary shall use the funds, facilities, and 
     authorities of the Commodity Credit Corporation to carry out 
     this section.
       (b) Amount of Loan.--The Secretary shall establish the 
     amount of a loan for eligible dairy products, which shall 
     reflect 90 percent of the reference price for that product. 
     The rate of interest charged participants in this program 
     shall not be less than the rate of interest charged the 
     Commodity Credit Corporation by the United States Treasury.
       (c) Period of Loans.--A recourse loan made under this 
     section may not extend beyond the end of the fiscal year 
     during which the loan is made, except that the Secretary may 
     extend the loan for an additional period not to exceed the 
     end of the next fiscal year.
       (d) Definitions.--In this section:
       (1) The term ``eligible dairy products'' means cheddar 
     cheese, butter, and nonfat dry milk.
       (2) The term ``reference price'' means--
       (A) for cheddar cheese, the average National (Green Bay) 
     Cheese Exchange price for 40 pound blocks of cheddar cheese 
     for the previous three months;
       (B) for butter, the average Chicago Mercantile Exchange 
     price for Grade AA butter for the previous three months; and
       (C) for nonfat dry milk, the average Western States Extra 
     Grade and Grade A price for nonfat dry milk for the previous 
     three months.

     SEC. ____03. DAIRY EXPORT INCENTIVE PROGRAM.

       (a) Duration.--Subsection (a) of section 153 of the Food 
     Security Act of 1985 (15 U.S.C. 713a-14) is amended by 
     striking ``2001'' and inserting ``2002''.
       (b) Elements of Program.--Subsection (c) of such section is 
     amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraphs:
       ``(3) the maximum volume of dairy product exports allowable 
     consistent with the obligations of the United States as a 
     member of the World Trade Organization are exported under the 
     program each year (minus the volume sold under section 1163 
     of this Act (7 U.S.C. 1731 note) during that year), except to 
     the extent that the export of such a volume under the program 
     would, in the judgment of the Secretary, exceed the 
     limitations on the value set forth in subsection (f); and
       ``(4) payments may be made under the program for exports to 
     any destination in the world for the purpose of market 
     development, except a destination in a country with respect 
     to which shipments from the United States are otherwise 
     restricted by law.''.
       (c) Sole Discretion.--Subsection (b) of such section is 
     amended by inserting ``sole'' before ``discretion''.
       (d) Market Development.--Subsection (e)(1) of such section 
     is amended--
       (1) by striking ``and'' and inserting ``the''; and
       (2) by inserting before the period the following: ``, and 
     any additional amount that may be required to assist in the 
     development of world markets for United States dairy 
     products''.
       (e) Maximum Allowable Amounts.--Such section is further 
     amended by adding at the end the following:
       ``(f) Required Funding.--The Commodity Credit Corporation 
     shall in each year use money and commodities for the program 
     under this section in the maximum amount consistent with the 
     obligations of the United States as a member of the World 
     Trade Organization, minus the amount expended under section 
     1163 of this Act (7 U.S.C. 1731 note) during that year. 
     However, the Commodity Credit Corporation may not exceed the 
     limitations specified in subsection (c)(3) on the volume of 
     allowable dairy product exports.''.

     SEC. ____04. DAIRY PROMOTION PROGRAM.

       (a) Expansion to Cover Dairy Products Imported into the 
     United States.--Section 110(b) of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4501(b)) is amended by 
     inserting after ``commercial use'' the following: ``and dairy 
     products imported into the United States''.
       (b) Definitions.--
       (1) Milk.--Subsection (d) of section 111 of such Act (7 
     U.S.C. 4502) is amended by inserting before the semicolon the 
     following: ``or cow's milk imported into the United States in 
     the form of dairy products intended for consumption in the 
     United States''.
       (2) Dairy products.--Subsection (e) of such section is 
     amended by inserting before the semicolon the following: 
     ``and casein (except casein imported under sections 
     3501.90.20 (casein glue) and 3501.90.50 (other) of the 
     Harmonized Tariff Schedule)''.
       (3) Research.--Subsection (j) of such section is amended by 
     inserting before the semicolon the following: ``or to reduce 
     the costs associated with processing or marketing those 
     products''.
       (4) United states.--Subsection (l) of such section is 
     amended to read as follows:
       ``(l) the term `United States' means the several States and 
     the District of Columbia;''.
       (5) Importers and exporters.--Such section is further 
     amended--
       (A) in subsection (k), by striking ``and'' at the end of 
     such subsection; and
       (B) by adding at the end the following new subsections:
       ``(m) the term `importer' means the first person to take 
     title to dairy products imported into the United States for 
     domestic consumption; and
       ``(n) the term `exporter' means any person who exports 
     dairy products from the United States.''.
       (c) Membership of Board.--Section 113(b) of such Act (7 
     U.S.C. 4504(b)) is amended--
       (1) in the first sentence, by striking ``thirty-six 
     members'' and inserting ``38 members, including one 
     representative of importers and one representative of 
     exporters to be appointed by the Secretary'';
       (2) in the second sentence, by striking ``Members'' and 
     inserting ``The remaining members''; and
       (3) in the third sentence, by striking ``United States'' 
     and inserting ``United States, including Alaska and Hawaii''.
       (d) Assessment.--Section 113(g) of such Act (7 U.S.C. 
     4504(g)) is amended--
       (1) by inserting ``(1)'' after ``(g)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The order shall provide that each importer of dairy 
     products intended for consumption in the United States shall 
     remit to the Board, in the manner prescribed by the order, an 
     assessment equal to 1.2 cents per pound of total milk solids 
     contained in the imported dairy products, or 15 cents per 
     hundredweight of milk contained in the imported dairy 
     products, whichever is less. If an importer can establish 
     that it is participating in active, ongoing qualified State 
     or regional dairy product promotion or nutrition programs 
     intended to increase the consumption of milk and dairy 
     products, the importer shall receive credit in determining 
     the assessment due from that importer for contributions to 
     such programs of up to .8 cents per pound of total milk 
     solids contained in the imported dairy products, or 10 cents 
     per hundredweight of milk contained in the imported dairy 
     products, whichever is less. The assessment collected under 
     this paragraph shall be used for the purpose specified in 
     paragraph (1).''.
       (e) Records.--Section 113(k) of such Act (7 U.S.C. 4504(k)) 
     is amended in the first sentence by inserting after 
     ``commercial use,'' the following: ``each importer of dairy 
     products,''.
       (f) Termination or Suspension of Order.--Section 116(b) of 
     such Act (7 U.S.C. 4507(b)) is amended--
       (1) by inserting ``and importers'' after ``producers'' each 
     place it appears;
       (2) by striking ``who, during a representative period (as 
     determined by the Secretary), have been engaged in the 
     production of milk for commercial use''; and
       (3) by adding at the end the following new sentences: ``A 
     producer shall be eligible to vote in the referendum if the 
     producer, during a representative period (as determined by 
     the Secretary), has been engaged in the production of milk 
     for commercial use. An importer shall be eligible to vote in 
     the referendum if the importer, during a representative 
     period (as determined by the Secretary), has been engaged in 
     the importation of dairy products into the United States 
     intended for consumption in the United States.''.
       (g) Promotion in international markets.--Section 113(e) of 
     such Act (7 U.S.C. 4504(e)) is amended by adding at the end 
     the following new sentence: ``For each of the fiscal years 
     1996 through 2000, the Board's budget shall provide for the 
     expenditure of not less than 10 percent of the anticipated 
     revenues available to the Board to develop international 
     markets for, and to promote within such markets, the 
     consumption of dairy products produced in the United States 
     from milk produced in the United States.''.
       (h) Implementation of Amendments.--
       (1) Implementation process.--To implement the amendments 
     made by this section, the Secretary of Agriculture shall 
     issue an amended dairy products promotion and research order 
     under section 112 of the Dairy Production Stabilization Act 
     of 1983 (7 U.S.C. 4503) reflecting such amendments, and no 
     other changes, in the order in existence on the date of the 
     enactment of this Act.
       (2) Proposal of amended order.--Not later than 60 days 
     after the date of the enactment of this Act, the Secretary 
     shall publish a proposed dairy products promotion and 
     research order reflecting the amendments made by this 
     section. The Secretary shall provide notice and an 
     opportunity for public comment on the proposed order.
     
[[Page S635]]

       (3) Issuance of amended order.--After notice and 
     opportunity for public comment are provided in accordance 
     with paragraph (2), the Secretary shall issue a final dairy 
     products promotion and research order, taking into 
     consideration the comments received and including in the 
     order such provisions as are necessary to ensure that the 
     order is in conformity with the amendments made by this 
     section.
       (4) Effective date.--The final dairy products promotion and 
     research order shall be issued and become effective not later 
     than 120 days after publication of the proposed order.
       (i) Referendum on Amendments.--Not later than 36 months 
     after the issuance of the dairy products promotion and 
     research order reflecting the amendments made by this 
     section, the Secretary of Agriculture shall conduct a 
     referendum under section 115 of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4506) for the sole 
     purpose of determining whether the requirements of such 
     amendments shall be continued. The Secretary shall conduct 
     the referendum among persons who have been producers or 
     importers (as defined in section 111 of such Act (7 U.S.C. 
     4502)) during a representative period as determined by the 
     Secretary. The requirements of such amendments shall be 
     continued only if the Secretary determines that such 
     requirements have been approved by not less than a majority 
     of the persons voting in the referendum. If continuation of 
     the amendments is not approved, the Secretary shall issue a 
     new order, within six months after the announcement of the 
     results of the referendum, that is identical to the order in 
     effect on the date of the enactment of this Act. The new 
     order shall become effective upon issuance and shall not be 
     subject to referendum for approval.

     SEC. ____05. FLUID MILK STANDARDS UNDER MILK MARKETING 
                   ORDERS.

       (a) Nature of Standards.--Each marketing order issued with 
     respect to milk and its products under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, shall contain terms and conditions to provide that all 
     dispositions of fluid milk products containing milk of the 
     highest use classification covered by such orders shall 
     comply with the following requirements:
       (1) In the case of milk marketed as whole milk, not less 
     than 12.05 percent total milk solids consisting of not less 
     than 8.8 percent milk solids not fat and not less than 3.25 
     percent milk fat.
       (2) In the case of milk marketed as 2 percent (or lowfat) 
     milk, not less than 12 percent total milk solids consisting 
     of not less than 10 percent milk solids not fat and not less 
     than 2 percent milk fat.
       (3) In the case of milk marketed as 1 percent (or light) 
     milk, not less than 12 percent total milk solids consisting 
     of not less than 11 percent milk solids not fat and not less 
     than 1 percent milk fat.
       (4) In the case of milk marketed as skim (or nonfat) milk, 
     not less than 9 percent total milk solids consisting of not 
     less than 9 percent milk solids not fat and not more than .25 
     percent milk fat.
       (b) Violations.--A violation of the requirements specified 
     in subsection (a) shall be subject to the penalties provided 
     in section 8c(14) of the Agricultural Adjustment Act (7 
     U.S.C. 608c(14)), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937.
       (c) Effective Date.--The requirements imposed by this 
     section shall apply to fluid milk marketed on and after the 
     first day of the first month beginning not less than 30 days 
     after the date of the enactment of this Act.
       (d) Effect of Enactment.--The requirements imposed by this 
     section shall supersede any conflicting requirements 
     regarding fluid milk imposed pursuant to the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 301 et seq.).

     SEC. ____06. MANUFACTURING ALLOWANCE.

       (a) Maximum Allowances Established.--No State shall provide 
     for a manufacturing allowance for the processing of milk in 
     excess of--
       (1) in the case of milk manufactured into butter, butter 
     oil, nonfat dry milk, or whole dry milk--
       (A) $1.65 per hundredweight of milk, for milk marketed 
     during the 2-year period beginning on the effective date of 
     this section; and
       (B) such allowance per hundredweight of milk as the 
     Secretary of Agriculture may establish under section 
     ____21(b)(3), for milk marketed after the end of such period; 
     and
       (2) in the case of milk manufactured into cheese and whey--
       (A) $1.80 per hundredweight of milk, for milk marketed 
     during the 2-year period beginning on the effective date of 
     this section; and
       (B) such allowance per hundredweight of milk as the 
     Secretary may establish under section ____21(b)(3), for milk 
     marketed after the end of such period.
       (b) Yields.--In converting the weight of milk to dairy 
     products during the two-year period beginning on the 
     effective date of this section, the Secretary shall use the 
     following yields with respect to a hundred pounds of milk:
       (1) Butter: 4.2 pounds.
       (2) Nonfat dry milk: 8.613 pounds.
       (3) 40 pound block cheddar cheese: 10.169 pounds.
       (4) Whey cream butter: .27 pounds.
       (c) Sources of Product Price Values.--In determining the 
     manufacturing allowance applicable in a State during the 2-
     year period beginning on the effective date of this section, 
     the Secretary shall use the following sources for product 
     price values:
       (1) For butter, Chicago Mercantile Exchange Grade AA 
     butter.
       (2) For nonfat dry milk, California Manufacturing Plants 
     Extra Grade and Grade A nonfat dry milk.
       (3) For cheese, National (Green Bay) Cheese Exchange 40 
     pound block cheddar cheese.
       (4) For whey cream butter, Chicago Mercantile Exchange 
     Grade B butter.
       (d) Manufacturing Allowance Defined.--In this section, the 
     term ``manufacturing allowance'' means--
       (1) the amount by which the product price value of butter 
     and nonfat dry milk manufactured from a hundred pounds of 
     milk containing 3.5 pounds of milk fat and 8.7 pounds of milk 
     solids not fat exceeds the class price for the milk used to 
     produce those products; or
       (2) an amount by which the product price value of cheese 
     and whey manufactured from a hundred pounds of milk 
     containing 3.6 pounds of milk fat and 8.7 pounds of milk 
     solids not fat exceeds the class price for the milk used to 
     produce those products.
       (e) Effect of Violation.--If the Secretary determines that 
     a State has in effect a manufacturing allowance that exceeds 
     the manufacturing allowance authorized in subsection (a), the 
     Secretary shall suspend, until such time as the State 
     complies with such subsection--
       (1) purchases under section ____01 of cheddar cheese 
     produced in that State; and
       (2) disbursements from the Class IV equalization pool under 
     section ____08 to milk marketing orders operating in that 
     State with respect to milk produced in that State.
       (f) Conforming Suspension and Repeal.--
       (1) Suspension and repeal.--During the 2-year period 
     beginning on the effective date of this section, the 
     requirements of section 102 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 1446e-1) shall 
     not apply. Effective on the first day after the end of such 
     period, such section is repealed.
       (2) Exception.--Notwithstanding paragraph (1), in the event 
     that an injunction or other order of a court prohibits or 
     impairs the implementation of this section or the activities 
     of the Secretary under this section, the Secretary shall use 
     the authorities provided by section 102 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1446e-1) until such time as the injunction or other court 
     order is lifted.
       (g) Effective Date; Implementation.--This section shall 
     take effect on the first day of the first month beginning not 
     less than 30 days after the date of the enactment of this 
     Act. After such effective date, the Secretary may exercise 
     the authority provided to the Secretary under this section 
     without regard to the issuance of regulations intended to 
     carry out this section.

     SEC. ____07. ESTABLISHMENT OF TEMPORARY CLASS I PRICE AND 
                   TEMPORARY CLASS I EQUALIZATION POOLS.

       (a) Temporary Pricing for Milk of the Highest Use 
     Classification (Class I Milk).--
       (1) Establishment of minimum price.--During the 2-year 
     period beginning on the effective date of this section, the 
     minimum price for milk of the highest use classification 
     marketed under a marketing order issued under section 8c of 
     the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, shall not be less than the sum of--
       (A) $12.87 per hundredweight; and
       (B) the aggregate adjustment in effect under clauses (1) 
     and (2) of the second sentence of paragraph (5)(A) of such 
     section on December 31, 1995, for milk of the highest use 
     classification in that order.
       (2) Addition to minimum price.--If the basic formula price 
     for milk exceeds $12.87 per hundredweight in any month during 
     the 2-year period beginning on the effective date of this 
     section, the positive difference between the basic formula 
     price and $12.87 shall be added to the price for milk of the 
     highest use classification marketed under a marketing order 
     issued under such section 8c in the second month following 
     the month in which the difference occurred.
       (3) Effect on other use classifications.--This subsection 
     shall not affect the calculation of the basic formula price 
     used to determine the price for milk of use classifications 
     other than the highest use classification.
       (b) Class I Equalization Pools.--
       (1) Collections.--During the 2-year period beginning on the 
     effective date of this section, the Secretary of Agriculture 
     shall collect, on a monthly basis, from each marketing order 
     issued with respect to milk and its products under section 8c 
     of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, and from the comparable milk marketing order issued 
     by the State of California, an amount equal to the product 
     of--
       (A) $0.80 per hundredweight; and
       (B) the total hundredweights of all milk of the highest use 
     classification marketed under the order for the month.
       (2) Disbursements.--The Secretary shall pay, on a monthly 
     basis, to each marketing order referred to in paragraph (1) 
     an amount equal to the product of--
       (A) the total collection under paragraph (1) for the month; 
     and
     
[[Page S636]]

       (B) the ratio of the total hundredweights of all milk 
     marketed for the month under that order to all milk marketed 
     for the month under all such orders.
       (3) Effect on blend prices.--Producer blend prices under a 
     milk marketing order shall be adjusted to account for 
     collections made under paragraph (1) and disbursements made 
     under paragraph (2).
       (c) Enforcement.--
       (1) In general.--Amounts for which a milk marketing order 
     are responsible under subsection (b) shall be determined on a 
     monthly basis and shall be collected and remitted to the 
     Secretary in the manner prescribed by the Secretary.
       (2) Penalties.--If any person fails to remit the amount 
     required in subsection (b) or fails to comply with such 
     requirements for recordkeeping or otherwise as are required 
     by the Secretary to carry out this section, the person shall 
     be liable to the Secretary for a civil penalty up to an 
     amount determined by multiplying--
       (A) the quantity of milk involved in the violation; by
       (B) the support rate for milk in effect at the time of the 
     violation under section ____01.
       (3) Enforcement.--The Secretary may enforce this section in 
     the courts of the United States.
       (d) Conforming Repeal.--Section 8c(5)(A) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended by striking out the sentence beginning 
     ``Throughout the 2-year period'' and all that follows through 
     the end of the subparagraph.
       (e) Effective Date.--Except as provided in subsection (f), 
     this section shall take effect on the first day of the first 
     month beginning not less than 30 days after the date of the 
     enactment of this Act.
       (f) Implementation.--Not later than the effective date of 
     this section, the Secretary shall amend Federal milk 
     marketing orders issued under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, to 
     effectuate the requirements of this section. The amendments 
     shall not be--
       (1) subject to a referendum under subsection (17) or (19) 
     of such section among milk producers to determine whether 
     issuance of such order is approved or favored by milk 
     producers;
       (2) preconditioned on the existence of a marketing 
     agreement among handlers under subsection (8) of such section 
     and section 8b of such Act (7 U.S.C. 608b);
       (3) subject to rulemaking under title 5, United States 
     Code; or
       (4) subject to review or approval by other executive 
     agencies.

     SEC. ____08. ESTABLISHMENT OF TEMPORARY CLASS IV PRICE AND 
                   TEMPORARY CLASS IV EQUALIZATION POOL.

       (a) Temporary Classification of Class IV Milk.--
       (1) Classification.--For purposes of classifying milk in 
     accordance with the form in which or the purpose for which it 
     is used, the Secretary of Agriculture shall designate all 
     milk marketed in the 48 contiguous States of the United 
     States and used to produce butter, butter oil, nonfat dry 
     milk, or dry whole milk as Class IV milk. The Secretary may 
     include other products of milk, except cheese, within the 
     Class IV classification if the Secretary determines that 
     inclusion of the product would be fair and equitable.
       (2) Use of classification.--Each marketing order issued 
     with respect to milk and its products under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, and each comparable State milk marketing order, shall 
     use the classification required by paragraph (1) in lieu of 
     any other classification, such as Class III-A milk, to 
     properly classify milk used to produce butter, butter oil, 
     nonfat dry milk, or dry whole milk.
       (b) Establishment of Class IV Pool.--The Secretary shall 
     establish a Class IV pool for the purpose of making 
     collections and disbursements related to milk classified as 
     Class IV milk under subsection (a). The Class IV pool shall 
     apply to milk covered by a milk marketing order referred to 
     in subsection (a) and unregulated milk.
       (c) Establishment of Monthly Class IV Price.--For the 
     purpose of determining whether the Secretary will make 
     collections and disbursements under the Class IV equalization 
     pool, the Secretary shall establish, on a monthly basis, a 
     price for dairy products manufactured from Class IV milk on a 
     3.5 percent butterfat basis. In determining that price, the 
     Secretary shall calculate the amount equal to--
       (1) the sum of--
       (A) the product of the Western States Extra Grade and Grade 
     A price per pound for nonfat dry milk and 8.613; and
       (B) the product of the Chicago Mercantile Exchange Grade AA 
     price per pound for butter and 4.2; less
       (2) a manufacturing allowance equal to $1.65 per 
     hundredweight of milk.
       (d) Operation of Class IV Equalization Pool.--
       (1) Application of subsection.--This subsection shall apply 
     in any month in which the support price for milk under 
     section ____01, adjusted to 3.5 percent butterfat, exceeds 
     the Class IV price established under subsection (c).
       (2) Collection.--In any month in which the Class IV 
     equalization pool is in operation under paragraph (1), each 
     milk marketing order referred to in subsection (a) and each 
     handler of unregulated milk shall pay into the Class IV 
     equalization pool an amount equal to the product of--
       (A) the total hundredweights of Class IV milk used to 
     manufacture dairy products during that month under all such 
     orders and by all such handlers;
       (B) 50 percent of the amount by which the support price for 
     milk under section ____01, adjusted to 3.5 percent butterfat, 
     exceeded the Class IV price determined under subsection (c) 
     for that month; and
       (C) the ratio of the total hundredweights of all milk 
     marketed during that month under that order or by that 
     handler to the total hundredweights of all milk marketed for 
     that month under all such orders and by all such handlers.
       (3) Disbursements.--In any month in which the Class IV 
     equalization pool is in operation under paragraph (1), each 
     milk marketing order referred to in subsection (a) in which 
     products were manufactured from Class IV milk during that 
     month and each handler of unregulated milk that manufactured 
     products from Class IV milk during that month shall receive 
     from the Class IV equalization pool an amount equal to the 
     product of--
       (A) the total collection under paragraph (2) for the month; 
     and
       (B) the ratio of the total hundredweights of Class IV milk 
     manufactured into dairy products during that month under that 
     order or by that handler to the total hundredweights of Class 
     IV milk manufactured into dairy products during that month 
     under all such orders and by all such handlers.
       (4) Effect on blend prices.--Producer blend prices under a 
     milk marketing order referred to in subsection (a) shall be 
     adjusted to account for collections under paragraph (2) and 
     disbursements under paragraph (3).
       (e) Enforcement.--
       (1) In general.--Amounts for which a milk marketing order 
     or handler are responsible under subsection (b) shall be 
     determined on a monthly basis and shall be collected and 
     remitted to the Secretary in the manner prescribed by the 
     Secretary.
       (2) Penalties.--If any person fails to remit the amount 
     required in subsection (c) or fails to comply with such 
     requirements for recordkeeping or otherwise as are required 
     by the Secretary to carry out this section, the person shall 
     be liable to the Secretary for a civil penalty up to an 
     amount determined by multiplying--
       (A) the quantity of milk involved in the violation; by
       (B) the support rate for milk in effect at the time of the 
     violation under section ____01.
       (3) Enforcement.--The Secretary may enforce this section in 
     the courts of the United States.
       (f) Effective Date.--Except as provided in subsection (g), 
     this section shall--
       (1) take effect on the first day of the first month 
     beginning not less than 30 days after the date of the 
     enactment of this Act; and
       (2) apply during the 2-year period beginning on such 
     effective date.
       (g) Implementation.--Not later than the start of the 
     effective date of this section, the Secretary shall amend 
     Federal milk marketing orders issued under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, to effectuate the requirements of this section. The 
     amendments shall not be--
       (1) subject a referendum under subsection (17) or (19) of 
     such section among milk producers to determine whether 
     issuance of such order is approved or favored by milk 
     producers;
       (2) preconditioned on the existence of a marketing 
     agreement among handlers under subsection (8) of such section 
     and section 8b of such Act (7 U.S.C. 608b);
       (3) subject to rulemaking under title 5, United States 
     Code; or
       (4) subject to review or approval by other executive 
     agencies.

     SEC. ____09. AUTHORITY FOR ESTABLISHMENT OF STANDBY POOLS.

       (a) Authority to Establish.--As soon as possible after the 
     effective date of this section, the Secretary of Agriculture 
     shall publish in the Federal Register an invitation for 
     interested persons to submit proposals for the establishment 
     within Federal milk marketing orders issued under section 8c 
     of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, of standby pools to facilitate the movement of milk 
     over long distances during periods of shortage through the 
     sharing of proceeds from sales of milk of the highest use 
     classification due to producers under the order with 
     producers shipping to plants regulated by another order to 
     provide a reserve supply of milk in the other market.
       (b) Approval or Termination of Participation in Standby 
     Pool.--Order provisions under this section shall not become 
     effective in any marketing order unless such provisions are 
     approved by producers in the manner provided for the approval 
     of marketing orders under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, but 
     separately from other order provisions. Standby pool 
     provisions approved under this section in an 

[[Page S637]]
     order may be disapproved separately by producers or terminated 
     separately by the Secretary under section 8c(16)(B) of such 
     Act. Such disapproval or termination shall not be considered 
     to be a disapproval or termination of the other terms of that 
     order.
       (c) Effective Date.--This section shall take effect on the 
     first day of the first month beginning not less than 30 days 
     after the date of the enactment of this Act.
          Subtitle B--Reform of Federal Milk Marketing Orders

     SEC. ____21. ISSUANCE OR AMENDMENT OF FEDERAL MILK MARKETING 
                   ORDERS TO IMPLEMENT CERTAIN REFORMS.

       (a) Issuance of Amended Orders.--Subject to the time limits 
     specified in section ____22, the Secretary of Agriculture 
     shall issue new or amended marketing orders with respect to 
     milk and its products under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, to 
     effectuate the requirements of subsection (b). The orders 
     shall take effect on the date the orders are issued and shall 
     supersede all other marketing orders and any other statutes, 
     rules, and regulations that are applicable to the pricing and 
     marketing of milk and its products in effect immediately 
     before that date, whether under the authority of section 8c 
     of such Act or a State or local law.
       (b) Reform Requirements.--The Secretary shall reform the 
     Federal milk marketing order system under subsection (a) to 
     accomplish the following purposes:
       (1) Consolidation of Federal milk marketing orders into not 
     less than 8 nor more than 13 orders, which shall also include 
     those areas of the 48 contiguous States not covered by a 
     Federal milk marketing order on the date of the enactment of 
     this Act. One of the new Federal milk marketing orders shall 
     only cover the State of California. A new or amended order 
     shall have the right to blend order receipts to address 
     unique issues to that order such as a preexisting State quota 
     system.
       (2) Implementation of uniform multiple component pricing 
     for milk used in manufactured dairy products.
       (3) Establishment of class prices for milk used to produce 
     cheese, nonfat dry milk, and butter based on national product 
     prices, less a manufacturing allowance. The resulting prices 
     shall not vary regionally, except to reflect variances in 
     transportation and reasonable operating costs, if any, of 
     efficient processing plants in different geographical areas.
       (c) Status of Producer Handlers.--In amending Federal milk 
     marketing orders under this section, the Secretary shall 
     ensure that the legal status of producer handlers of milk 
     under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
     reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, shall be the same after the amendments 
     made by this section take effect as it was before the 
     effective date of the amendments.

     SEC. ____22. REFORM PROCESS.

       (a) Process.--In preparation for the issuance of the new or 
     amended Federal milk marketing orders required under section 
     ____21, the Secretary of Agriculture shall comply with the 
     following expedited procedural requirements:
       (1) Not later than 165 days after the date of the enactment 
     of this Act, the Secretary shall issue proposed amendments or 
     new milk marketing orders to effectuate the reform 
     requirements specified in such section .
       (2) The Secretary shall provide for a 75-day comment period 
     on the proposed amendments or orders issued under paragraph 
     (1).
       (3) Not later than 120 days after the end of the comment 
     period provided under paragraph (2), the Secretary shall 
     publish in the Federal Register a final administrative 
     decision regarding the issuance or amendment of Federal milk 
     marketing orders to effectuate the reform requirements 
     specified in such section.
       (b) Referendum and Marketing Agreement.--After the issuance 
     of the new or amended Federal milk marketing orders under 
     section ____21, the Secretary may conduct a referendum in the 
     manner provided in section 8c(16)(B) of the Agricultural 
     Adjustment Act (7 U.S.C. 608c(16)(B)), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937, with respect to each order to determine whether milk 
     producers subject to the order favor the termination of the 
     order.
       (c) Application of Administrative Procedures Act.--The 
     issuance of the new or amended Federal milk marketing orders 
     required under section ____21 shall not be subject to 
     rulemaking under title 5, United States Code.
       (d) Review and Approval.--The action of the Secretary under 
     section ____21 shall not be subject to review or approval by 
     any other executive agency.

     SEC. ____23. EFFECT OF FAILURE TO COMPLY WITH REFORM PROCESS 
                   REQUIREMENTS.

       (a) Failure to Timely Issue or Amend Orders.--If, before 
     the end of the 1-year period beginning on the date of the 
     enactment of this Act, the Secretary of Agriculture does not 
     issue new or amended Federal milk marketing orders under 
     section 8c of the Agricultural Adjustment Act (7 U.S.C. 
     608c), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, to effectuate the 
     requirements of section ____21(b), then the Secretary may not 
     assess or collect assessments from milk producers or handlers 
     under such section 8c for marketing order administration and 
     services provided under such section after the end of that 
     period. The Secretary may not reduce the level of services 
     provided under such section on account of the prohibition 
     against assessments, but shall rather cover the cost of 
     marketing order administration and services through funds 
     available for the Agricultural Marketing Service of the 
     Department of Agriculture.
       (b) Failure to Timely Implement Orders.--Unless the 
     Secretary certifies to Congress before the end of the 2-year 
     period beginning on the date of the enactment of this Act 
     that all of the Federal marketing order reforms required by 
     section ____21(b) have been fully implemented, then, 
     effective at the end of that period--
       (1) the Secretary shall immediately cease all price support 
     activities under section ____01;
       (2) the Secretary shall immediately terminate all Federal 
     milk marketing orders under section 8c of the Agricultural 
     Adjustment Act (7 U.S.C. 608c), reenacted with amendments by 
     the Agricultural Marketing Agreement Act of 1937, and may not 
     issue any further order under such Act with respect to milk;
       (3) the Commodity Credit Corporation shall immediately 
     cease to operate the dairy export incentive program under 
     section 153 of the Food Security Act of 1985 (15 U.S.C. 713a-
     14);
       (4) the Secretary and the National Processor Advertising 
     and Promotion Board shall immediately cease all activities 
     under the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401 et 
     seq.); and
       (5) the Secretary and the National Dairy Promotion and 
     Research Board shall immediately cease all activities under 
     the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 
     et seq.).
                                 ______


                   MOYNIHAN AMENDMENTS NOS. 3146-3147

  (Ordered to lie on the table.)
  Mr. MOYNIHAN submitted two amendments intended to be proposed by him 
to the bill S. 1541, supra; as follows:

                           Amendment No. 3146

       At the appropriate place insert the following: ``Whenever 
     the domestic price of raw sugar exceeds 115 percent of the 
     loan rate, then the Secretary of Agriculture shall permit the 
     importation of additional raw cane sugar from existing quota 
     holders until he determines that such conditions no longer 
     prevail in the market.''
                                                                    ____


                           Amendment No. 3147

       At the appropriate place insert the following: ``Whenever 
     the domestic price of raw sugar exceeds 115 percent of the 
     loan rate, then the Secretary of Agriculture shall permit the 
     importation of additional raw cane sugar from existing quota 
     holders until he determines that such conditions no longer 
     prevail in the market.''
                                 ______


                      WELLSTONE AMENDMENT NO. 3148

  (Ordered to lie on the table.)
  Mr. WELLSTONE submitted an amendment intended to be proposed by him 
to the bill S. 1541, supra; as follows:

     SEC. 2. PAYMENT LIMITATION.

       Section 15(b)(3) is amended by striking (A) and inserting 
     the following:
       ``(A) by striking ``(a) Prevention of Creation of 
     Entities'' and all that follows through ``(b) Payments 
     Limited to Active Farmers.--''
                                 ______


                    BRYAN AMENDMENTS NOS. 3149-3152

  (Ordered to lie on the table.)
  Mr. BRYAN submitted four amendments intended to be proposed by him to 
the bill S. 1541, supra; as follows:

                           Amendment No. 3149

       On page 88, line 10, strike ``$100,000,000'' and insert 
     ``$2,000,000''.
                                                                    ____


                           Amendment No. 3150

       On page 88, line 10, strike ``$100,000,000'' and insert 
     ``$70,000,000''.
                                                                    ____


                           Amendment No. 3151

       Strike the section 17 beginning on page 65, line 21 through 
     page 72, line 8.
                                                                    ____


                           Amendment No. 3152

       Strike the section 16 beginning on page 49, line 13 through 
     page 65, line 20.
                                 ______


                  BROWN (AND REID) AMENDMENT NO. 3153

  (Ordered to lie on the table.)
  Mr. BROWN (for himself and Mr. Reid) submitted an amendment intended 
to be proposed by them to the bill S. 1541, supra; as follows:

       At the appropriate place, insert the following:
       (a) None of the funds appropriated or made available to the 
     Federal Drug Administration shall be used to operate the 
     Board of Tea Experts and related activities.
       (b) The Tea Importation Act (21 U.S.C. 41 et seq.) is 
     repealed.
                                 ______


                    BROWN AMENDMENTS NOS. 3154-3158

  (Ordered to lie on the table.) 
  
[[Page S638]]

  Mr. BROWN submitted five amendments intended to be proposed by him to 
the bill S. 1541, supra; as follows:

                           Aendment No. 3154

       In subsection (g) of the section relating to peanuts--
       (1) in paragraph (2)(A), strike ``paragraphs (3) and (4)'' 
     and insert ``paragraphs (4) and (5)'';
       (2) redesignate paragraphs (3), (4), (5), and (6) as 
     paragraphs (4), (5), (6), and (7), respectively; and
       (3) insert after paragraph (2) the following:
       (3) Additional marketing assessment to cover expenses of 
     the secretary.--In addition to the marketing assessment 
     required under the other provisions of his subsection, the 
     Secretary shall charge producers a marketing assessment 
     applicable to each crop of peanuts to cover the costs of the 
     salaries of the employees, and the expenses, of the 
     Consolidated Farm Service Agency in carrying out the program 
     established under this section.
                                                                    ____


                           Amendment No. 3155

       At the appropriate place in title I, insert the following:

     SEC.   . ADDITIONAL TOBACCO MARKETING ASSESSMENT TO COVER 
                   EXPENSES OF THE SECRETARY.

       Section 315(g) of the Agricultural Adjustment Act of 1938 
     (as transferred and redesignated by section 19(b)(1)(A)) is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following:
       ``(2) Additional marketing assessment to cover expenses of 
     the secretary.--In addition to the marketing assessment 
     required under paragraph (1), the Secretary shall charge 
     producers, purchasers, and importers of tobacco a marketing 
     assessment applicable to each crop of tobacco to cover the 
     costs of the salaries of the employees, and the expenses, of 
     the Consolidated Farm Service Agency in carrying out the 
     program under this section.''.
                                                                    ____


                           Amendment No. 3156

       At the appropriate place, insert the following:

     SEC.   . AGRICULTURAL PAYMENTS.

       (a) None of the funds authorized under this Act shall be 
     used to make any payments described in this Act to 
     individuals with an annual net taxable income of more than 
     $120,000 or corporations with an annual net taxable income of 
     more than $5,000,000.
       (b) Certification.--
       (1) Individuals.--The Secretary of Agriculture shall 
     certify to the appropriate committees of the Congress that no 
     individuals receiving payments under this Act had an annual 
     net taxable income greater than $120,000 in the previous tax 
     year.
       (2) Corporations.--The Secretary of Agriculture shall 
     certify to the appropriate committees of the Congress that no 
     corporations receiving payments under this Act had an annual 
     net taxable income greater than $5,000,000 in the previous 
     tax year.
       (c) Subsection (a) and (b) shall not apply to any existing 
     subsidy contracts.
                                                                    ____


                           Amendment No. 3157

       At the appropriate place, insert:

     SEC.   . PEANUT PROGRAM.

       (a) In General.--Each year the Secretary of Agriculture 
     shall calculate the costs, including expenses and salaries of 
     the employees, to the Consolidated Farm Services Agency in 
     order to administer the peanut program.
       (b) Assessment.--The Secretary, based on these findings, 
     shall raise the current marketing assessment to a level 
     sufficient to cover all costs of the peanut program.
                                                                    ____


                           Amendment No. 3158

       At the appropriate place, insert the following:

     SEC.   . TOBACCO PROGRAM.

       (a) In General.--Each year the Secretary of Agriculture 
     shall calculate the costs, including expenses and salaries of 
     the employees, to the Consolidated Farm Services Agency in 
     order to administer the tobacco program.
       (b) Assessment.--The Secretary, based on these findings, 
     shall raise the current marketing assessment to a level 
     sufficient to cover all costs of the tobacco program. The 
     cost of the tobacco program shall not be offset by any 
     revenues raised through tariffs imposed under the Uruguay 
     Round Agreements Act (Public Law 103-465) on imports of 
     tobacco or tobacco products into the United States.
                                 ______


                      FEINGOLD AMENDMENT NO. 3159

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted an amendment intended to be proposed by them 
to the bill S. 1541, supra; as follows:

       On page 95, after line 10, add the following:

     SEC. 7. COMPETITIVE MATCHING GRANT PROGRAM FOR APPLIED 
                   RESEARCH.

       (a) Purpose.--The purpose of this section is to convert the 
     current special grants program administered by the Secretary 
     under subsection (c) of the Competitive, Special, and 
     Facilities Research Grant Act (7 U.S.C. 4501(c)) into a 
     competitive matching grant program for applied research in 
     coordination with the research priorities outlined in section 
     1402 of the National Agricultural Research Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3101).
       (b) Title Changes.--The Competitive, Special, and 
     Facilities Research Grant Act (7 U.S.C. 450i) is amended--
       (1) In the section heading, by striking ``, Special, and 
     Facilities'' after ``Competitive'';
       (2) In subsection (a)(2), by striking ``, Special, and 
     Facilities'' after ``Competitive''; and
       (3) In the heading of subsection (b) by striking 
     ``Competitive'' and inserting ``National research 
     initiative''.
       (c) Competitive Grant Program for Applied Research.--
     Section 2(c) (7 U.S.C. 450i(c) is amended--
       (1) In the heading, by striking ``Special Grants'' and 
     inserting ``Competitive Grants for Applied Research'';
       (2) In paragraph (1) by striking ``grants,'' and all that 
     follows, including subparagraphs (A) and (B), and inserting 
     ``competitive grants for applied research in the research 
     priority areas identified in section 1402 of National 
     Agricultural Research, Extension and Teaching Policy Act of 
     1977.'';
       (3) In paragraph (3), by striking all that follows 
     ``Matching Funds.--'' and inserting ``The Secretary may 
     establish such matching requirements for grants made pursuant 
     to this section as the Secretary deems appropriate. Such 
     matching requirements established by the Secretary may be met 
     with unreimbursed indirect costs and in-kind contributions, 
     except that the Secretary may include and evaluation 
     preference for projects for which the applicant proposes 
     funds for the direct costs of the project to meet the 
     required match.''; and
       (4) In paragraph (4), by striking all text after ``(4)'' 
     and inserting ``Eligible Institutions.--For purposes of this 
     subsection, ``eligible institutions'' means State 
     agricultural experiment stations, land-grant colleges and 
     universities, research foundations established by land-grant 
     colleges and universities, colleges and universities 
     receiving funds under the Act of October 10, 1962 (16 U.S.C. 
     582a, et seq.), and accredited schools or colleges of 
     veterinary medicine.''.
                                 ______


                      WELLSTONE AMENDMENT NO. 3160

  (Ordered to lie on the table.)
  Mr. WELLSTONE submitted an amendment intended to be proposed by them 
to the bill S. 1541, supra; as follows:

       On page 11 strike all beginning on line 3 through the end 
     of page 48 and insert the following:
       (A) For fiscal year 1996, $5,430,000,000.
       (B) For fiscal year 1997, $5,245,000,000.
       (C) For fiscal year 1998, $5,660,000,000.
       (D) For fiscal year 1999, $5,463,000,000.
       (E) For fiscal year 2000, $4,990,000,000.
       (F) For fiscal year 2001, $3,990,000,000.
       (G) For fiscal year 2002, $3,868,000,000.
       (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.
     
[[Page S639]]

       (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 $3.25 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 $2.25 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 

[[Page S640]]
     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 $0.60 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 $7.00 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 

[[Page S641]]
     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 

[[Page S642]]
     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) by striking ``(a) Prevention of Creation of 
     Entities'' and all that follows through ``(b) Payments 
     Limited to Active Farmers.''.
                                 ______


                  REID (AND BROWN) AMENDMENT NO. 3161

  (Ordered to lie on the table.)
  Mr. REID (for himself and Mr. Brown) submitted an amendment intended 
to be proposed by them to the bill S. 1541, supra; as follows:

       At the appropriate place in the bill insert the following:

     SEC.   . TEA IMPORTATION.

       (A) Prohibition of Funding.--None of the funds appropriated 
     or made available to the Food and Drug Administration shall 
     be used to operate the Board of Tea Experts and related 
     activities.
       (b) Repeal of the Tea Importation Act.--The Act entitled 
     ``An Act To prevent the importation of impure and unwholesome 
     tea'', approved March 2, 1897 (commonly known as the Tea 
     Importation Act; 21 U.S.C. 41 et seq.), is repealed.
       (c) Effective Date.--This section shall take effect on the 
     date of enactment of this Act.
                                 ______


                  FEINGOLD AMENDMENTS NOS. 3162--3166

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted five amendments intended to be proposed by him 
to the bill S. 1541, supra; as follows:

                           Amendment No. 3162

       At the appropriate place in the miscellaneous title, insert 
     the following:
          Subtitle ____--Agricultural Promotion Accountability

     SEC. ____1. SHORT TITLE.

       This subtitle may be cited as the ``Agricultural Promotion 
     Accountability Act of 1996''.

     SEC. ____2. PURPOSE.

       The purpose of this subtitle is to make agricultural 
     promotion boards and councils more responsive to producers 
     whose mandatory assessments support the activities of such 
     boards and councils, to improve the representation and 
     participation of such producers on such boards and councils, 
     to ensure the independence of such boards and councils, to 
     ensure the appropriate use of promotion funds, and to prevent 
     legislatively authorized agricultural promotion and research 
     boards from using mandatory assessments to directly or 
     indirectly influence legislation or governmental action or 
     policy.

     SEC. ____3. DEFINITIONS.

       In this subtitle:
       (1) Influencing legislation or governmental action or 
     policy.--The term ``influencing legislation or governmental 
     action or policy'' includes--
       (A) establishing, administering, contributing to, or paying 
     the expenses of a political party campaign, political action 
     committee, or other organization established for the purpose 
     of influencing the outcome of an election;
       (B) attempting to influence--
       (i) the outcome of any Federal, State or local election, 
     referendum, initiative, or similar procedure through a cash 
     contribution, in-kind contribution, endorsement, publicity or 
     public relations activity or similar activity;
       (ii) the introduction, modification, or enactment of any 
     Federal or State legislation or signature or veto of any 
     enrolled Federal or State legislation, including through--

       (I) communication with any member or employee of a 
     legislative body or agency or with any governmental official 
     or employee who may participate in the formulation of the 
     legislation, including engaging State or local officials in 
     similar activity (not including a communication to an 
     appropriate government official in response to a written 
     request by the official for factual, scientific, or technical 
     information relating to the conduct, implementation, or 
     results of promotion, research, consumer information and 
     education, industry information, or producer information 
     activities under a promotion program);
       (II) planning, preparing, funding, or distributing any 
     publicity or propaganda to affect the opinion of the general 
     public or a segment of the public in connection with a 
     pending legislative matter; or
       (III) urging members of the general public or any segment 
     of the general public to contribute to, or participate in, 
     any mass demonstration, march, rally, fund-raising drive, 
     lobbying campaign, letter-writing campaign, or telephone 
     campaign in connection with a pending legislative matter;

       (C) carrying out a legislative liaison activity, including 
     attendance at a legislative session or committee hearing to 
     gather information regarding legislation or to analyze the 
     effect of legislation, if the activity is carried on in 
     support of, or in knowing preparation for, an effort to 
     influence legislation or government action or policy;
       (D) carrying out an opinion survey of the general public or 
     a segment of the public, general research, or information 
     gathering, if carried out in support of, or in knowing 
     preparation for, an effort to influence legislation or 
     government action or policy; or
       (E) attempting to influence any agency action or agency 
     proceeding, as the terms are defined in section 551 of title 
     5, United States Code, through--
       (i) communication with any government official or employee 
     who may participate in the action or proceeding (not 
     including a communication to an appropriate government 
     official in response to a written request by the official for 
     factual, scientific, or technical information relating to the 
     conduct, implementation, or results of promotion, research, 
     consumer information or education, or industry information of 
     producer information activities under a promotion program);
       (ii) planning, preparing, funding, or distributing any 
     publicity or propaganda to affect the opinions of the general 
     public or any segment of the general public in connection 
     with the action or proceeding; or
       (iii) urging members of the general public or any segment 
     of the general public to contribute to, or participate in, 
     any mass demonstration, march, rally, fundraising drive, 
     lobbying campaign, letter-writing campaign, or telephone 
     campaign in connection with the action or proceeding.
       (2) Promotion program.--The term ``promotion program'' 
     means--
       (A) the cotton research and promotion program established 
     under the Cotton Research and Promotion Act (7 U.S.C. 2101 et 
     seq.);
       (B) the potato research, development, advertising, and 
     promotion program established under the Potato Research and 
     Promotion Act (7 U.S.C. 2611 et seq.);
       (C) the egg research, consumer and producer education, and 
     promotion program established under the Egg Research and 
     Consumer Information Act (7 U.S.C. 2701 et seq.);
       (D) the beef promotion and research program established 
     under the Beef Research and Information Act (7 U.S.C. 2901 et 
     seq.);
       (E) the wheat research and nutrition education program 
     established under the Wheat 

[[Page S643]]
     and Wheat Foods Research and Nutrition Education Act (7 U.S.C. 3401 et 
     seq.);
       (F) the dairy promotion program established under the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.);
       (G) the honey research, promotion, and consumer education 
     program established under the Honey Research, Promotion, and 
     Consumer Information Act (7 U.S.C. 4601 et seq.);
       (H) the pork promotion, research, and consumer information 
     program established under the Pork Promotion, Research, and 
     Consumer Information Act (7 U.S.C. 4801 et seq.);
       (I) the watermelon research, development, advertising, and 
     promotion program established under the Watermelon Research 
     and Promotion Act (7 U.S.C. 4901 et seq.);
       (J) the pecan promotion, research, industry information, 
     and consumer information program established under the Pecan 
     Promotion and Research Act of 1990 (7 U.S.C. 6001 et seq.);
       (K) the mushroom promotion, research, and consumer and 
     industry information program established under the Mushroom 
     Promotion, Research, and Consumer Information Act of 1990 (7 
     U.S.C. 6101 et seq.);
       (L) the lime research, promotion, and consumer information 
     program established under the Lime Research, Promotion, and 
     Consumer Information Act of 1990 (7 U.S.C. 6201 et seq.);
       (M) the soybean promotion, research, consumer information, 
     and industry information program established under the 
     Soybean Promotion, Research, and Consumer Information Act (7 
     U.S.C. 6301 et seq.);
       (N) the fluid milk advertising and promotion program 
     established under the Fluid Milk Promotion Act of 1990 (7 
     U.S.C. 6401 et seq.);
       (O) the flowers and greens promotion, consumer information, 
     and related research program established under the Fresh Cut 
     Flowers and Fresh Cut Greens Promotion and Information Act of 
     1993 (7 U.S.C. 6801 et seq.);
       (P) the sheep promotion, research, consumer information, 
     education, and industry information program established under 
     the Sheep Promotion, Research, and Information Act of 1994 (7 
     U.S.C. 7101 et seq.); and
       (Q) any other coordinated program of promotion, research, 
     industry information, and consumer information that is funded 
     by mandatory assessments on producers and designed to 
     maintain and expand markets and uses for an agricultural 
     commodity, as determined by the Secretary.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. ____4. INFLUENCING LEGISLATION OR GOVERNMENTAL ACTION OR 
                   POLICY.

       (a) In General.--A board or council established by a 
     promotion program may not use any funds collected by the 
     board or council for the purpose of directly or indirectly 
     influencing legislation or governmental action or policy, 
     except for the development and recommendation of amendments 
     to the promotion program to the Secretary.
       (b) Conforming Amendments.--
       (1) Cotton.--Section 7(h) of the Cotton Research and 
     Promotion Act (7 U.S.C. 2106(h)) is amended by striking 
     ``influencing governmental policy or action'' and inserting 
     ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996)''.
       (2) Potatoes.--Section 308(f)(3) of the Potato Research and 
     Promotion Act (7 U.S.C. 2617(f)(3)) is amended by striking 
     ``influencing governmental policy or action'' and inserting 
     ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996)''.
       (3) Eggs.--Section 8(h) of the Egg Research and Consumer 
     Information Act (7 U.S.C. 2707) is amended by striking 
     ``influencing governmental policy or action'' and inserting 
     ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996)''.
       (4) Beef.--Section 5(10) of the Beef Research and 
     Information Act (7 U.S.C. 2904(10)) is amended--
       (A) by striking ``influencing governmental action or 
     policy'' and inserting ``directly or indirectly influencing 
     legislation or governmental action or policy (as defined in 
     section ____3(1) of the Agricultural Promotion Accountability 
     Act of 1996)''; and
       (B) by inserting ``to the Secretary'' before the period at 
     the end.
       (5) Wheat.--Section 1706(i) of the Wheat and Wheat Foods 
     Research and Nutrition Education Act (7 U.S.C. 3405(i)) is 
     amended by striking ``influencing governmental policy or 
     action'' and inserting ``directly or indirectly influencing 
     legislation or governmental action or policy (as defined in 
     section ____3(1) of the Agricultural Promotion Accountability 
     Act of 1996)''.
       (6) Dairy.--Section 113(j) of the Dairy Production 
     Stabilization Act of 1983 (7 U.S.C. 4504(j)) is amended by 
     striking ``influencing governmental policy or action'' and 
     inserting ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996),''.
       (7) Honey.--Section 7(h) of the Honey Research, Promotion, 
     and Consumer Information Act (7 U.S.C. 4606(h)) is amended by 
     striking ``influencing governmental policy or action'' and 
     inserting ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996)''.
       (8) Pork.--Section 1620(e) of the Pork Promotion, Research, 
     and Consumer Information Act (7 U.S.C. 4809(e)) is amended by 
     striking ``influencing legislation'' and all that follows 
     through the period at the end and inserting the following: 
     ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996), 
     except to recommend amendments to the order to the 
     Secretary.''.
       (9) Watermelons.--Section 1647(g)(3) of the Watermelon 
     Research and Promotion Act (7 U.S.C. 4906(g)(3)) is amended 
     by striking ``influencing governmental policy or action'' and 
     inserting ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996)''.
       (10) Pecans.--Section 1910(g)(1) of the Pecan Promotion and 
     Research Act of 1990 (7 U.S.C. 6005(g)(1)) is amended--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``to,'' and inserting ``for the purpose 
     of,''; and
       (ii) by striking ``to--'' and inserting ``for the purpose 
     of--'';
       (B) in paragraph (1), by striking ``influence legislation 
     or governmental action'' and inserting ``directly or 
     indirectly influencing legislation or governmental action or 
     policy (as defined in section ____3(1) of the Agricultural 
     Promotion Accountability Act of 1996)'';
       (C) in paragraph (2), by striking ``engage'' and inserting 
     ``engaging''; and
       (D) in paragraph (3), by striking ``engage'' and inserting 
     ``engaging''.
       (11) Mushrooms.--Section 1925(h) of the Mushroom Promotion, 
     Research, and Consumer Information Act of 1990 (7 U.S.C. 
     6104(h)) is amended by striking ``influencing legislation or 
     governmental action or policy'' and inserting ``directly or 
     indirectly influencing legislation or governmental action or 
     policy (as defined in section ____3(1) of the Agricultural 
     Promotion Accountability Act of 1996)''.
       (12) Limes.--Section 1955(g) of the Lime Research, 
     Promotion, and Consumer Information Act of 1990 (7 U.S.C. 
     6204(g)) is amended by striking ``influencing legislation or 
     governmental policy or action'' and inserting ``directly or 
     indirectly influencing legislation or governmental action or 
     policy (as defined in section ____3(1) of the Agricultural 
     Promotion Accountability Act of 1996)''.
       (13) Soybeans.--Section 1969(p) of the Soybean Promotion, 
     Research, and Consumer Information Act (7 U.S.C. 6304(p) is 
     amended--
       (A) in paragraph (1), by striking ``influencing legislation 
     or governmental action or policy'' and inserting ``directly 
     or indirectly influencing legislation or governmental action 
     or policy (as defined in section ____3(1) of the Agricultural 
     Promotion Accountability Act of 1996)''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``to the Secretary'' 
     before the semicolon; and
       (ii) in subparagraph (B), by inserting ``, in response to a 
     request made by the officials,'' after ``officials''.
       (14) Milk.--Section 1999H(j)(1) of the Fluid Milk Promotion 
     Act of 1990 (7 U.S.C. 6407(j)(1)) is amended by striking 
     ``influencing legislation or governmental action or policy'' 
     and inserting ``directly or indirectly influencing 
     legislation or governmental action or policy (as defined in 
     section ____3(1) of the Agricultural Promotion Accountability 
     Act of 1996)''.
       (15) Flowers and greens.--Section 5(i) of the Fresh Cut 
     Flowers and Fresh Cut Greens Promotion and Information Act of 
     1993 (7 U.S.C. 6804(i)) is amended by striking ``influencing 
     legislation or government action or policy'' and inserting 
     ``directly or indirectly influencing legislation or 
     governmental action or policy (as defined in section ____3(1) 
     of the Agricultural Promotion Accountability Act of 1996)''.
       (16) Sheep.--Section 5(l)(1) of the Sheep Promotion, 
     Research, and Information Act of 1994 (7 U.S.C. 7104(l)(1)) 
     is amended by striking ``influencing legislation or 
     government action or policy'' and inserting ``directly or 
     indirectly influencing legislation or governmental action or 
     policy (as defined in section ____3(1) of the Agricultural 
     Promotion Accountability Act of 1996)''.

     SEC. ____5. PROMOTING THE IMAGE OF AN INDUSTRY PROHIBITED.

       (a) In General.--A board or council established by a 
     promotion program may not use any funds collected by the 
     board or council for the purpose of enhancing the image of an 
     industry, except that the board or council may promote the 
     image of a product with the express intent of stimulating 
     demand for and sales of an agricultural product in the 
     marketplace.
       (b) Conforming Amendments.--
       (1) Beef.--Section 3(9) of the Beef Research and 
     Information Act (7 U.S.C. 2902(9)) is amended by striking ``, 
     increased efficiency'' and all that follows through 
     ``industry'' and inserting ``and increased efficiency''.
       (2) Pecans.--Section 1907(12) of the Pecan Promotion and 
     Research Act of 1990 (7 U.S.C. 6002(12)) is amended by 
     striking ``, increased efficiency'' and all that follows 
     through ``industry'' and inserting ``and increased 
     efficiency''.
       (3) Mushrooms.--Section 1923(7) of the Mushroom Promotion, 
     Research, and 

[[Page S644]]
     Consumer Information Act of 1990 (7 U.S.C. 6103(7)) is amended by 
     striking ``, increased efficiency'' and all that follows 
     through ``industry'' and inserting ``and increased 
     efficiency''.
       (4) Soybeans.--Section 1967(7) of the Soybean Promotion, 
     Research, and Consumer Information Act (7 U.S.C. 6302(7)) is 
     amended by striking ``, and activities'' and all that follows 
     through ``industry''.

     SEC. ____6. LIMITATIONS ON CONTRACTING.

       (a) Permitted Contracts or Agreements.--Notwithstanding any 
     other provision of law, a board or council established by a 
     promotion program shall not be limited to contracting with, 
     or entering into an agreement with, an established national 
     nonprofit industry-governed organization.
       (b) Competitive Bidding.--It is the policy of Congress that 
     boards and councils should, to the extent practicable, use 
     competitive bidding in the awarding of contracts and grants 
     for activities authorized under a promotion program.
       (c) Independence of Boards and Councils.--
       (1) Applications and recommendations not binding.--
     Notwithstanding any other provision of law, a board or 
     council established by a promotion program shall not be bound 
     by a proposed application for a board or council contract or 
     a recommendation or advice of a potential contractor or a 
     national nonprofit industry-governed organization on the use 
     of board or council receipts.
       (2) Interlocking boards or membership.--Notwithstanding any 
     other provision of law, no person shall be eligible to be a 
     member of any board or council established by a promotion 
     program (including operating and nominating committees) if 
     the person serves in any decision making capacity, such as 
     that of a member of the board of directors, executive 
     committee, or other committee, for an entity that enters into 
     a contract or other agreement with the board or council.
       (3) Requirements for contracting.--A contractor or grantee 
     of a board or council may not use funds collected through 
     mandatory assessments under a promotion program to fund any 
     staff (including expenses or other activities of the staff) 
     who, in part, engage in 1 or more activities to influence 
     legislation or governmental action or policy.
       (d) Producer Approval of Relationships With Boards or 
     Councils.--
       (1) In general.--Except as provided in paragraph (2) and 
     notwithstanding any other provision of law, the entering into 
     of a permanent cooperative arrangement or the establishment 
     of a joint committee (including an arrangement that is 
     advisory in nature) by a board or council established by a 
     promotion program with a national nonprofit industry-governed 
     organization shall require the prior approval of at least \2/
     3\ of the eligible producers under the promotion program.
       (2) Exception.--Paragraph (1) shall not apply to a 
     cooperative arrangement or joint committee--
       (A) that was established prior to January 1, 1995; or
       (B) that includes representatives or participation from all 
     producer-, processor-, or handler-governed national nonprofit 
     organizations (including general farm organizations) that 
     represent any but an insignificant number of producers, 
     processors, or handlers paying assessments under the 
     promotion program to the board or council, as determined by 
     the Secretary.
       (3) Permanent cooperative arrangement.--In this subsection, 
     the term ``permanent cooperative arrangement'' means a formal 
     or informal, written or unwritten agreement or understanding 
     establishing a relationship, a liaison, a sole source 
     contract, or an operational mechanism under which a board or 
     council shares staff, facilities, or other resources or 
     carries out coordinated activities with any entity on a more 
     or less permanent and exclusive basis.
       (e) Fungibility of Board or Council Funds.--
       (1) In general.--The Inspector General of the Department of 
     Agriculture shall conduct an annual review of contractual 
     arrangements between each board or council established by a 
     promotion program and any entity or association that engages 
     in activities to influence legislation or governmental action 
     or policy and receives a significant amount of funding from 
     the board or council as determined by the Secretary.
       (2) Scope of review.--A review under paragraph (1) shall 
     examine whether any funds collected by the board or council 
     are used to directly or indirectly fund or subsidize an 
     entity or association that engages in influencing legislation 
     or governmental action or policy.
       (3) Report.--The Secretary shall submit a report on the 
     findings of any review under this subsection and make 
     recommendations for any actions that should be taken as a 
     result of the findings to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate.

     SEC. ____7. PERIODIC REFERENDA.

       (a) In General.--Notwithstanding any other provision of 
     law, not less than 4 nor more than 6 years after the date of 
     enactment of this Act or the date on which the Secretary 
     determines the results of the most recent referendum for a 
     promotion program, whichever is earlier, and not less than 
     once every 5 years thereafter, the Secretary shall conduct a 
     referendum to determine whether to approve or terminate the 
     order under the promotion program and whether refunds should 
     be made under the order.
       (b) Procedure.--The referendum under subsection (a) shall 
     be conducted using the same eligibility and other procedures 
     as the referendum used to approve the original order under 
     the promotion program, except that, notwithstanding any other 
     provision of law, no greater than a simple majority of 
     eligible producers shall be required to approve the making of 
     refunds to producers.
       (c) Termination.--
       (1) In general.--If the percentage of persons voting to 
     approve the order does not equal or exceed the percentage of 
     persons necessary to approve the continuation of the original 
     order under the promotion program, the Secretary shall 
     terminate the order.
       (2) Time of termination.--The Secretary shall terminate the 
     order at the end of the marketing year during which the 
     referendum is conducted.
       (d) Refunds.--If the making of refunds is approved in a 
     referendum under subsection (a), the Secretary shall 
     establish a procedure for making the refunds not later than 
     180 days after the date of the referendum.
       (e) Cooperative Association.--Notwithstanding subsection 
     (b), a cooperative association may not vote on behalf of the 
     members of the association in a referendum conducted under 
     this section.
       (f) Inactive Promotion Programs.--The Secretary shall not 
     conduct a referendum of a promotion program under this 
     section if the Secretary determines that the promotion 
     program is not active.
                                                                    ____


                           Amendment No. 3163

       At the appropriate place in the bill, insert the following:

     SEC. ____. DAIRY PROMOTION PROGRAM IMPROVEMENT.

       (a) Funding of Dairy Promotion and Research Program.--
       (1) Declaration of policy.--The first sentence of section 
     110(b) of the Dairy Production Stabilization Act of 1983 (7 
     U.S.C. 4501(b)) is amended--
       (A) by inserting after ``commercial use'' the following: 
     ``and on imported dairy products''; and
       (B) by striking ``products produced in'' and inserting 
     ``products produced in or imported into''.
       (2) Definitions.--Section 111 of the Act (7 U.S.C. 4502) is 
     amended--
       (A) in subsection (k), by striking ``and'' at the end;
       (B) in subsection (l), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following new subsections:
       ``(m) the term `imported dairy product' means--
       ``(1) any dairy product, including milk and cream and fresh 
     and dried dairy products;
       ``(2) butter and butterfat mixtures;
       ``(3) cheese;
       ``(4) casein and mixtures; and
       ``(5) other dairy products;
     that are imported into the United States; and
       ``(n) the term `importer' means a person that imports an 
     imported dairy product into the United States.''.
       (2) Funding.--
       (A) Representation on board.--Section 113(b) of the Act (7 
     U.S.C. 4504(b)) is amended--
       (i) by designating the first through ninth sentences as 
     paragraphs (1) through (5) and paragraphs (7) through (10), 
     respectively;
       (ii) in paragraph (1) (as so designated), by striking 
     ``thirty-six'' and inserting ``38'';
       (iii) in paragraph (2) (as so designated), by striking 
     ``Members'' and inserting ``Of the members of the Board, 36 
     members''; and
       (iv) by inserting after paragraph (5) (as so designated) 
     the following new paragraph:
       ``(6) Of the members of the Board, 2 members shall be 
     representatives of importers of imported dairy products. The 
     importer representatives shall be appointed by the Secretary 
     from nominations submitted by importers under such procedures 
     as the Secretary determines to be appropriate.''.
       (B) Assessment.--Section 113(g) of the Act is amended--
       (i) by designating the first through fifth sentences as 
     paragraphs (1) through (5), respectively; and
       (ii) by adding at the end the following new paragraph:
       ``(6)(A) The order shall provide that each importer of 
     imported dairy products shall pay an assessment to the Board 
     in the manner prescribed by the order.
       ``(B) The rate of assessment on imported dairy products 
     shall be determined in the same manner as the rate of 
     assessment per hundredweight or the equivalent of milk.
       ``(C) For the purpose of determining the assessment on 
     imports under subparagraph (B), the value to be placed on 
     imported dairy products shall be established by the Secretary 
     in a fair and equitable manner.''.
       (C) Records.--The first sentence of section 113(k) of the 
     Act is amended by striking ``person receiving'' and inserting 
     ``importer of imported dairy products, each person 
     receiving''.
       (D) Referendum.--Section 116 of the Act (7 U.S.C. 4507) is 
     amended by adding at the end the following new subsection:
       ``(d)(1) On the request of a representative group 
     comprising 10 percent or more of the number of producers 
     subject to the order, the Secretary shall--
       ``(A) conduct a referendum to determine whether the 
     producers favor suspension of the application of the 
     amendments made by section 2 of the Dairy Promotion Program 
     Improvement Act of 1995; and
     
[[Page S645]]

       ``(B) suspend the application of the amendments until the 
     results of the referendum are known.
       ``(2) The Secretary shall continue the suspension of the 
     application of the amendments made by section 2 only if the 
     Secretary determines that suspension of the application of 
     the amendments is favored by a majority of the producers 
     voting in the referendum who, during a representative period 
     (as determined by the Secretary), have been engaged in the 
     production of milk for commercial use.''.
       (b) Periodic Referenda.--Section 115(a) of the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4506(a)) is 
     amended--
       (1) in the first sentence, by striking ``Within the sixty-
     day period immediately preceding September 30, 1985'' and 
     inserting ``Every 5 years''; and
       (2) in the second sentence, by striking ``six months'' and 
     inserting ``3 months''.
       (c) Prohibition on Bloc Voting.--Section 117 of the Dairy 
     Production Stabilization Act of 1983 (7 U.S.C. 4508) is 
     amended--
       (1) in the first sentence, by striking ``Secretary shall'' 
     and inserting ``Secretary shall not''; and
       (2) by striking the second through fifth sentences.
                                                                    ____


                           Amendment No. 3164

       On page 72, between lines 8 and 9, insert the following:

     SEC.   . LOCATION ADJUSTMENTS FOR MINIMUM PRICES FOR CLASS I 
                   MILK.

       Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(5)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (1) in paragraph (A)--
       (A) in clause (3) of the second sentence, by inserting 
     after ``the locations'' the following: ``within a marketing 
     area subject to the order''; and
       (B) by striking the last 2 sentences and inserting the 
     following: ``Notwithstanding paragraph (18) or any other 
     provision of law, when fixing minimum prices for milk of the 
     highest use classification in a marketing area subject to an 
     order under this subsection, the Secretary may not, directly 
     or indirectly, base the prices on the distance from, or all 
     or part of the costs incurred to transport milk to or from, 
     any location that is not within the marketing area subject to 
     the order, unless milk from the location constitutes at least 
     50 percent of the total supply of milk of the highest use 
     classification in the marketing area. The Secretary shall 
     report to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate on the criteria that are used as 
     the basis for the minimum prices referred to in the preceding 
     sentence, including a certification that the minimum prices 
     are made in accordance with the preceding sentence.''; and
       (2) in paragraph (B)(c), by inserting after ``the 
     locations'' the following: ``within a marketing area subject 
     to the order''.
                                                                    ____


                           Amendment No. 3165

       On page 72, between lines 8 and 9, insert the following:

     SEC.   . MILK MANUFACTURING MARKETING ADJUSTMENT.

       Subsections (a) and (b) of section 102 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     1446e-1) are amended to read as follows:
       ``(a) Definitions.--In this section:
       ``(1) Federal make allowance.--The term `Federal make 
     allowance' means the allowance for the processing of milk 
     that is permitted under a Federal program to establish a 
     Grade A price for manufacturing butter, nonfat dry milk, or 
     cheese.
       ``(2) Person.--The term `person' includes a cooperative.
       ``(3) State make allowance.--The term `State make 
     allowance' means the allowance for the processing of milk 
     that is permitted by a State for manufacturing butter, nonfat 
     dry milk, or cheese.
       ``(b) Milk Manufacturing Marketing Adjustment.--
     Notwithstanding any other provision of law, if a person 
     collects a State make allowance that is higher than the 
     Federal make allowance and the milk or product of milk that 
     is subject to the allowance is purchased by the Commodity 
     Credit Corporation, regardless of the point of sale, the 
     Corporation shall reduce the support purchase price for the 
     milk and each product of the milk by an amount that is equal 
     to the difference between the State make allowance and the 
     Federal make allowance for the milk and product, as 
     determined by the Secretary of Agriculture.''.
                                                                    ____


                           Amendment No. 3166

       On page 95, after line 10, add the following:

     SEC.   . SPECIAL RESEARCH GRANTS PROGRAM.

       (a) In General.--Section 2(c)(2) of the Competitive, 
     Special, and Facilities Research Grant Act (7 U.S.C. 
     450i(c)(2)) is amended--
       (1) in subparagraph (A), by striking ``or'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(C) unless the project to receive the grant has been 
     subject to a competitive selection process and a scientific 
     peer review evaluation by qualified scientists in the Federal 
     Government, colleges and universities, State agricultural 
     experiment stations, and the private sector.''.
       (b) Application.--The amendments made by subsection (a) 
     shall apply only in the case of a project that has not been 
     specifically authorized, or for which no funds have been made 
     available, as of the date of enactment of this Act.
                                 ______


                    HARKIN AMENDMENTS NOS. 3167-3169

  (Ordered to lie on the table.)
  Mr. HARKIN submitted three amendments intended to be proposed by him 
to the bill S. 1541, supra; as follows:

                           Amendment No. 3167

       On page 20, strike lines 15 and 16 and insert the 
     following: ``loan for wheat shall not be less than 90 percent 
     of the''.
       On page 20, strike lines 23 and 24 and insert the 
     following: ``age price was the lowest in the period.''
       On page 22, strike lines 3 and 4 and insert the following: 
     ``ing assistance loan for corn shall not be less than 90 
     percent of the''.
       On page 22, strike lines 11 and 12 and insert the 
     following: ``price was the lowest in the period.''
       On page 25, strike lines 24 and 25 and insert the 
     following: ``keting assistance loan for soybeans shall be--
       ``(i) 90 percent of the simple average price received by 
     producers of soybeans, as determined by the Secretary, during 
     the marketing years for the immediately preceding 5 crops of 
     soybeans, excluding the year in which the average price was 
     the highest and the year in which the average price was the 
     lowest in the period; but
       ``(ii) not less than $4.92 per bushel.''
       On page 26, strike line 6 and insert the following: 
     ``individually, shall be--
       ``(i) 90 percent of the simple average price received by 
     producers of each such oilseed, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of the oilseed, 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 less than $0.087 per pound.''
                                                                    ____


                           Amendment No. 3168

       On page 74, strike lines 5 through 10 and insert the 
     following:
       (B) by transferring sections 110, 111, 201(c), and 204 (7 
     U.S.C. 1445e, 1445f, 1446(c), and 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, 307, and 308, respectively; and
       On page 74, strike lines 21 through 24 and insert the 
     following:
       (1) Section 307 of the Agricultural Adjustment Act of 1938 
     (as transferred and redesignated by subsection (b)(1)(B)) is 
     amended by striking ``204'' and inserting ``308''.
                                                                    ____


                           Amendment No. 3169

       Strike the section relating to the Commodity Credit 
     Corporation interest rate.
                                 ______


                    KERREY AMENDMENTS NOS. 3170-3175

  Mr. KERREY submitted six amendments intended to be proposed by him to 
the bill (S. 1541), supra; as follows:

                           Amendment No. 3170

       On page 22, line 1, strike ``subject to subparagraph 
     (B),''.
                                                                    ____


                           Amendment No. 3171

       On page 20, line 13, strike ``subject to subparagraph 
     (B),''.
                                                                    ____


                           Amendment No. 3172

       On page 20, line 23, strike ``; but'' through page 21, line 
     23, and insert in lieu thereof ``.''.
                                                                    ____


                           Amendment No. 3173

       On page 22, line 12, strike ``; but'' through page 23, line 
     10, and insert in lieu thereof ``.''.
                                                                    ____


                           Amendment No. 3174

       On page 25, line 23 strike line 23 through page 26, line 6, 
     and insert in lieu thereof, ``The loan rate for a marketing 
     assistance loan for soybeans shall be not less than 85 
     percent of the simple coverage price received by producers of 
     soybeans, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     saybearns, 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.''
       ``B. Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rates for a marketing 
     assistance loan for a sunflower seed, canola, rapeseed, 
     safflowers, mustard seed, and flaxseed, individually, shall 
     be not less than 85 percent of the simple average price 
     received by producers of such crops, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of such crops, 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.''
                                                                    ____


                           Amendment No. 3175

       On page 73, strike all of section 19.
                                 ______


                       KERREY amendment no. 3176

  (Ordered to lie on the table.)
  Mr. KERREY submitted an amendment intended to be proposed by him to 
the bill S. 1541, supra; as follows:


[[Page S646]]

       On page 77, line 18, strike ``means an operation that--'' 
     through page 78 line 9, and insert in lieu thereof, ``shall 
     be determined by each State's State Technical Committee, 
     which shall consider local conditions in its determination.''
                                 ______


                    KERREY AMENDMENTS NOS. 3177-3181

  (Ordered to lie on the table.)
  Mr. KERREY submitted five amendments intended to be proposed by him 
to the bill S. 1541, supra; as follows:

                           Amendment No. 3177

       On page 91, between line 11 and 12, insert the following:
       (c) Reconfiguration of Board of Directors.--Section 505 of 
     the Federal Crop Insurance Act (7 U.S.C. 1505) is amended to 
     read as follows:

     ``SEC. 505. BOARD OF DIRECTORS.

       ``(a) Authority.--The management of the Corporation shall 
     be vested in a Board of Directors subject to the general 
     supervision of the Secretary.
       ``(b) Membership.--
       ``(1) In general.--The Board shall be appointed by the 
     Secretary and shall consist of the Manager of the 
     Corporation, the Under Secretary of Agriculture responsible 
     for the Federal crop insurance program, one person who is an 
     officer or employee of an approved insurance provider, one 
     person who is a licensed crop insurance agent, one person 
     experienced in the reinsurance business who is not otherwise 
     employed by the Federal Government, and four active producers 
     who are not otherwise employed by the Federal Government. The 
     Secretary may not be a member of the Board.
       ``(2) Producer members.--In appointing the four active 
     producers who are not otherwise employed by the Federal 
     Government, the Secretary shall ensure that three such 
     members are policyholders and are from different geographic 
     areas of the United States, in order that diverse 
     agricultural interests in the United States are at all times 
     represented on the Board. The Secretary shall ensure that the 
     fourth active producer, who may also be a policyholder, 
     receives a significant portion of crop income from crops 
     covered by the noninsured crop disaster assistance program 
     established under section 519.
       ``(c) Terms of Office.--
       ``(1) Terms of usda employees.--The Manager of the 
     Corporation and the Under Secretary of Agriculture 
     responsible for the Federal crop insurance program shall hold 
     office at the pleasure of the Secretary.
       ``(2) Terms of other members.--Other than the Manager of 
     the Corporation and the Under Secretary of Agriculture 
     responsible for the Federal crop insurance program, the 
     members of the Board shall be appointed by the Secretary for 
     a term of 3 years. However, in the initial appointment of 
     such members, the Secretary shall appoint two members for one 
     year, two members for two years, and two members for three 
     years in order to provide greater continuity to the Board.
       ``(3) Succession.--A member of the Board appointed under 
     paragraph (2) may serve after the expiration of the term of 
     office of such member until the successor for such member has 
     taken office.
       ``(d) Quorum.--Five of the members in office shall 
     constitute a quorum for the transaction of the business of 
     the Board.
       ``(e) Impairment of Powers.--The powers of the Board to 
     execute the functions of the Corporation shall be impaired at 
     any time there are not six members of the Board in office.
       ``(f) Compensation.--
       ``(1) Employees of the department.--The Directors of the 
     Corporation who are employed in the Department shall receive 
     no additional compensation for their services as such 
     Directors but may be allowed necessary traveling and 
     subsistence expenses when engaged in business of the 
     Corporation, outside of the District of Columbia.
       ``(2) Non-employees of the federal government.--The 
     Directors of the Corporation who are not employed by the 
     Federal Government shall be paid such compensation for their 
     services as Directors as the Secretary shall determine, but 
     such compensation shall not exceed the daily equivalent of 
     the rate prescribed for positions at level V of the Executive 
     Schedule under section 5316 of Title 5, United States Code, 
     when actually employed. Such members may also receive actual 
     necessary traveling and subsistence expenses, or a per diem 
     allowance in lieu of subsistence expenses, as authorized by 
     section 5703 of such title for persons in Government service 
     employed intermittently, when on the business of the 
     Corporation away from their homes or regular places of 
     business.
       ``(g) Chief Executive Officer.--The Manager of the 
     Corporation shall be its chief executive officer, with such 
     power and authority as may be conferred by the Board. The 
     Manager shall be appointed by, and hold office at the 
     pleasure of, the Secretary.''.
                                                                    ____


                           Amendment No. 3178

       On page 91, between lines 11 and 12, insert the following:
       (c) Establishment of the Office of Risk Management.--
       (1) Establishment.--The Department of Agriculture 
     Reorganization Act of 1994 is amended by inserting after 
     section 226 (7 U.S.C. 6932) the following new section:

     ``SEC. 226A. OFFICE OF RISK MANAGEMENT.

       ``(a) Establishment.--The Secretary shall establish and 
     maintain in the Department an independent Office of Risk 
     Management.
     or
       ``(a) Establishment.--Nothing in this Act shall change the 
     status of the Federal Crop Insurance Corporation, an agency 
     created under the Federal Crop Insurance Act (7 U.S.C. 1503), 
     as an agency within the Department. The administration of the 
     agency shall be carried out by an independent Office of Risk 
     Management that is separate and independent of the 
     Consolidated Farm Services Agency and of equal or higher 
     ranking than that agency within the Department.
       ``(b) Functions of the Office of Risk Management.--The 
     Office of Risk Management shall have jurisdiction over the 
     following functions:
       ``(1) Supervision of the Federal Crop Insurance 
     Corporation.
       ``(2) Administration and oversight of all aspects, 
     including delivery through local offices of the Department, 
     of all programs authorized under the Federal Crop Insurance 
     Act (7 U.S.C. 1501 et seq.).
       ``(3) Any pilot or other programs involving revenue 
     insurance, risk management savings account, or the use of the 
     futures market to manage risk and support farm income that 
     may be established under the Federal Crop Insurance Act or 
     other law.
       ``(4) Such other functions as the Secretary considers 
     appropriate.
       ``(c) Manager.--The Manager of the Federal Crop Insurance 
     Corporation shall serve as head of the Office of Risk 
     Management but not in any other capacity.
       ``(d) Resources.--
       ``(1) Functional coordination.--Certain functions of the 
     Office of Risk Management such as human resources, public 
     affairs, and legislative affairs may be provided by a 
     consolidation of such functions under the Under Secretary of 
     Agriculture responsible for the crop insurance program.
       ``(2) Minimum provisions.--Notwithstanding paragraph (1) or 
     any other provision of law or order of the Secretary, the 
     Secretary shall provide the Office of Risk Management with 
     human and capital resources sufficient for it to carry out 
     its functions in a timely and efficient manner.
       ``(3) Fiscal year 1996 funding.--Not less than $88,500,000 
     of the appropriation provided for the salaries and expenses 
     of the Consolidated Farm Services Agency in the Agricultural, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1996 shall be provided to the 
     Office of Risk Management for the salaries and expenses of 
     the Office.''.
       (2) Conforming amendment.--Section 226(b) of such Act (7 
     U.S.C. 6932(b)) is amended by striking paragraph (2).
                                                                    ____


                           Amendment No. 3179

       On page 85, strike lines 12 through line 17.
                                                                    ____


                           Amendment No. 3180

       On page 87, strike lines 19 through line 25.
                                                                    ____


                           Amendment No. 3181

       On page 95, strike lines 3 through line 10.
                                 ______


                        KERRY AMENDMENT NO. 3182

  (Ordered to lie on the table.)
  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill S. 1541, supra; as follows:

       On page 88, strike all after ``$100,000,000'' on line 10 
     through ``2002,''.'' on line 11 and insert in lieu thereof 
     the following: ``$1,000,000 for each of fiscal years 1996 
     through 2002, and notwithstanding any other provision of law 
     or this Act, $90,000,000 shall be placed in a separate fund 
     in each of fiscal years 1996 through 2002 which fund is to be 
     administered by the Secretary of Agriculture, and from which 
     fund the Secretary is authorized to make grants to the states 
     and to non-profit organizations for the purpose of 
     alleviating the hunger of women, infants, and children which 
     exceeds the ability of government programs to alleviate 
     because of funding limitations imposed by this Act or any 
     other law on the federal programs intended to accomplish that 
     objective.''
                                 ______


                        KERRY AMENDMENT NO. 3183

  (Ordered to lie on the table.)
  Mr. KERRY submitted an amendment intended to be proposed by him to 
the bill S. 1541, supra; as follows:

       On page 88, strike ``$100,000,000'' on line 10 and insert 
     in lieu thereof ``$500,000''.
                                 ______


                 LEAHY (AND OTHERS AMENDMENT NO.) 3184

  Mr. CRAIG (for Mr. Leahy, for himself, Mr. Lugar, Mr. Breaux, Mr. 
Dole, Mr. Johnston, Mr. Cochran, Mr. Graham, Mr. Grassley, Mr. 
Jeffords, and Mr. McConnell, proposed an amendment to the bill S. 1541, 
supra; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agricultural Reform and Improvement Act of 1996''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

[[Page S647]]


            TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency 
              payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Consent to Northeast Interstate Dairy Compact.
Sec. 109. Administration.
Sec. 110. Elimination of permanent price support authority.
Sec. 111. Effect of amendments.

                      TITLE II--AGRICULTURAL TRADE

Sec. 201. Public Law 480.
Sec. 202. Market promotion program.
Sec. 203. Export enhancement program.
Sec. 204. Food for progress.
Sec. 205. Emerging democracies.

                        TITLE III--CONSERVATION

                        Subtitle A--Definitions

Sec. 301. Definitions.

     Subtitle B--Environmental Conservation Acreage Reserve Program

Sec. 311. Environmental conservation acreage reserve program.
Sec. 312. Conservation reserve program.
Sec. 313. Wetlands reserve program.
Sec. 314. Environmental quality incentives program.

                    Subtitle C--Conservation Funding

Sec. 321. Conservation funding.

     Subtitle D--National Natural Resources Conservation Foundation

Sec. 331. Short title.
Sec. 332. Definitions.
Sec. 333. National Natural Resources Conservation Foundation.
Sec. 334. Composition and operation.
Sec. 335. Officers and employees.
Sec. 336. Corporate powers and obligations of the Foundation.
Sec. 337. Administrative services and support.
Sec. 338. Audits and petition of Attorney General for equitable relief.
Sec. 339. Release from liability.
Sec. 340. Authorization of appropriations.

                       Subtitle E--Miscellaneous

Sec. 351. Flood risk reduction.
Sec. 352. Forestry.
Sec. 353. State technical committees.
Sec. 354. Conservation of private grazing land.
Sec. 355. Conforming amendments.

                     TITLE IV--NUTRITION ASSISTANCE

Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food 
              program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchens program.
Sec. 405. National commodity processing.

                         TITLE V--MISCELLANEOUS

Sec. 501. Fund for dairy producers to pay for nutrient management.
Sec. 502. Crop insurance.
Sec. 503. Revenue insurance.
Sec. 504. Collection and use of agricultural quarantine and inspection 
              fees.
Sec. 505. Commodity Credit Corporation interest rate.
Sec. 506. Everglades Agricultural Area.
            TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Agricultural Market 
     Transition Act''.

     SEC. 102. DEFINITIONS.

       In this title:
       (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 110(b)(2)).
       (2) Contract.--The term ``contract'' means a production 
     flexibility contract entered into under section 103.
       (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 110(b)(2)) 
     that would have been in effect for the 1996 crop (but for the 
     amendment made by section 110(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 103 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 110(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 title.
       (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. 103. PRODUCTION FLEXIBILITY CONTRACTS.

       (a) Contracts Authorized.--
       (1) Offer and terms.--Beginning as soon as practicable 
     after the date of the enactment of this title, 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.
     
[[Page S648]]

       (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 
     110(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 
     103B, 105B, and 107B of the Agricultural Act of 1949 (as in 
     effect prior to the amendment made by section 110(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 
     Agricultural Act of 1949 (as in effect prior to the amendment 
     made by section 110(b)(2)) 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.
       (4) Additional rice allocation.--In addition to the 
     allocations provided under paragraphs (1), (2), and (3), the 
     amounts made available for rice contract payments shall be 
     increased by $17,000,000,000 for each of fiscal years 1997 
     through 2002.
       (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 

[[Page S649]]
     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.
       (k) Conservation Farm Option.--
       (1) In general.--The Secretary shall offer eligible owners 
     and operators with contract acreage under this title on a 
     farm who also have entered into a conservation reserve 
     program contract under subchapter B of chapter 1 of subtitle 
     D of title XII of the Food Security Act of 1985 (7 U.S.C. 
     3831 et seq.), the option of entering into a conservation 
     farm option contract for a period of 10 years, as an 
     alternative to the market transition payment contract.
       (2) Terms.--Under the conservation farm option contract--
       (A) the Secretary shall provide eligible owners and 
     operators with payments that reflect the Secretary's estimate 
     of the payments and benefits the eligible owner or operator 
     is expected to receive during the 10-year period under--
       (i) conservation cost-share programs administered by the 
     Secretary;
       (ii) conservation reserve program rental and cost-share 
     payments;
       (iii) market transition payments; and
       (iv) loan programs for contract commodities, oilseeds, and 
     extra long staple cotton; and
       (B) the eligible owner and operator shall--
       (i) forego eligibility to participate in the conservation 
     reserve program, conservation cost-share program payments, 
     and market transition contracts; and
       (ii) comply with a conservation plan for the farm approved 
     by the Secretary that is consistent with the State 
     conservation farm option plan established under paragraph 
     (3).
       (3) State conservation farm option plan.--In consultation 
     with the State Technical Committee established under section 
     1261 of the Food Security Act of 1985 (16 U.S.C. 3801), the 
     Secretary shall establish a plan for each State that is 
     designed to--
       (A) protect wildlife habitat;
       (B) improve water quality; and
       (C) reduce soil erosion.

     SEC. 104. 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 

[[Page S650]]
     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.
     
[[Page S651]]

       (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. 105. 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 103 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 104 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 104(b) of the Act.
       ``(ii) Any loan deficiency payment received for a loan 
     commodity under section 104(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
     
[[Page S652]]

       (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. 106. 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.
       (B) Eligibility to participate.--
       (i) In general.--Except as provided in clause (ii), in the 
     case of the 1996 and subsequent crops, Valencia peanuts not 
     physically produced in the State of New Mexico shall not be 
     eligible to participate in the pools of the State.
       (ii) Exception.--A resident of the State of New Mexico may 
     enter Valencia peanuts that are produced outside of the State 
     into the pools of the State in a quantity that is not greater 
     than the 1995 crop of the resident.
       (C) Types of peantus.--Bright hull and dark hull Valencia 
     peanuts shall be considered as separate types for the purpose 
     of establishing the pools.
       (D) 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
   


[[Page S653]]

       (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. 107. 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 

[[Page S654]]
     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. 108. CONSENT TO NORTHEAST INTERSTATE DAIRY COMPACT.

       Congress consents to the Northeast Interstate Dairy Compact 
     entered into among the States of Vermont, New Hampshire, 
     Maine, Connecticut, Rhode Island, and Massachusetts as 
     specified in section 1(b) of Senate Joint Resolution 28 of 
     the 104th Congress, as placed on the calendar of the Senate, 
     subject to the following conditions:
       (1) Compensation of ccc.--Before the end of each fiscal 
     year that a Compact price regulation is in effect, the 
     Compact Commission shall compensate the Commodity Credit 
     Corporation for the cost of any purchases of milk and milk 
     products by the Corporation that result from projected fluid 
     milk production for the fiscal year within the Compact region 
     in excess of the national average rate of purchases of milk 
     and milk products by the Corporation.
       (2) Milk market order administrator.--By agreement among 
     the States and the Secretary, the Administrator shall provide 
     technical assistance to the Compact Commission, and be 
     reimbursed for the assistance, with respect to the applicable 
     milk marketing order issued under section 8c(5) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937.
       (3) Limitation of manufacturing price regulation.--The 
     Compact Commission may not regulate Class II, Class III, or 
     Class III-A milk used for manufacturing purposes or any other 
     milk, other than Class I, or fluid milk, as defined by a 
     Federal milk marketing order issued under section 8c of the 
     Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 
     amendments by the Agricultural Marketing Act of 1937, unless 
     both Houses of Congress have first consented to and approved 
     the authority by a law enacted after the date of enactment of 
     this Act.
       (4) Termination and renewal.--The consent for the Compact--
       (A) shall terminate on the date that is 5 years after the 
     date of enactment of this Act, subject to subparagraph (B); 
     and
       (B) may be renewed by Congress, without prior re-
     ratification by the States' legislatures.

     SEC. 109. ADMINISTRATION.

       (a) Commodity Credit Corporation.--
       (1) Use of corporation.--The Secretary shall carry out this 
     title 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 title 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 
     title.

     SEC. 110. 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), and 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. 111. EFFECT OF AMENDMENTS.

       (a) Effect on Prior Crops.--Except as otherwise 
     specifically provided and notwithstanding any other provision 
     of law, this title and the amendments made by this title 
     shall not affect the authority of the Secretary 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 title or an amendment 
     made by this title 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.
                      TITLE II--AGRICULTURAL TRADE

     SEC. 201. PUBLIC LAW 480.

       (a) General Levels of Assistance.--Section 204(a) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1724(a)) is amended--
       (1) in paragraph (1)(E), by striking ``for fiscal year 
     1995'' and inserting ``for each of fiscal years 1995 and 
     1996''; and
       (2) in paragraph (2)(E), by striking ``for fiscal year 
     1995'' and inserting ``for each of fiscal years 1995 and 
     1996''.
       (b) Food Aid Consultative Group.--Section 205(f) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1725(f)) is amended by striking ``1995'' and inserting 
     ``1996''.
       (c) Authority To Enter Into Agreements.--Section 408 of the 
     Agricultural 

[[Page S655]]
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is 
     amended by striking ``1995'' and inserting ``1996''.
       (d) Farmer-to-Farmer Program.--Section 501(c) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1737(c)) is amended by striking ``1995'' and inserting 
     ``1996''.

     SEC. 202. 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. 203. 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.''.

     SEC. 204. FOOD FOR PROGRESS.

       Section 1110 of the Food Security Act of 1985 (7 U.S.C. 
     1736o) is amended by striking ``1995'' each place it appears 
     in subsections (g), (k), and (l)(1) and inserting ``1996''.

     SEC. 205. EMERGING DEMOCRACIES.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 note) is 
     amended--
       (1) in subsection (a), by striking ``1995'' and inserting 
     ``1996''; and
       (2) in subsection (d)(1)(A)(i), by striking ``1995'' and 
     inserting ``1996''.
                        TITLE III--CONSERVATION
                        Subtitle A--Definitions

     SEC. 301. DEFINITIONS.

       Section 1201(a) of the Food Security Act of 1985 (16 U.S.C. 
     3801(a)) is amended--
       (1) by redesignating paragraphs (3) through (16) as 
     paragraphs (4) through (17), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) Conservation system.--The term `conservation system' 
     means the conservation measures and practices that are 
     approved for application by a producer to a highly erodible 
     field and that provide for cost effective and practical 
     erosion reduction on the field based on local resource 
     conditions and standards contained in the Natural Resources 
     Conservation Service field office technical guide.''.
     Subtitle B--Environmental Conservation Acreage Reserve Program

     SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

       Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
     3830) is amended to read as follows:

     ``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE 
                   PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--During the 1996 through 2002 calendar 
     years, the Secretary shall establish an environmental 
     conservation acreage reserve program (referred to in this 
     section as `ECARP') to be implemented through contracts and 
     the acquisition of easements to assist owners and operators 
     of farms and ranches to conserve and enhance soil, water, and 
     related natural resources, including grazing land, wetland, 
     and wildlife habitat.
       ``(2) Means.--The Secretary shall carry out the ECARP by--
       ``(A) providing for the long-term protection of 
     environmentally sensitive land; and
       ``(B) providing technical and financial assistance to 
     farmers and ranchers to--
       ``(i) improve the management and operation of the farms and 
     ranches; and
       ``(ii) reconcile productivity and profitability with 
     protection and enhancement of the environment.
       ``(3) Programs.--The ECARP shall consist of--
       ``(A) the conservation reserve program established under 
     subchapter B;
       ``(B) the wetlands reserve program established under 
     subchapter C; and
       ``(C) the environmental quality incentives program 
     established under chapter 4.
       ``(b) Administration.--
       ``(1) In general.--In carrying out the ECARP, the Secretary 
     shall enter into contracts with owners and operators and 
     acquire interests in land through easements from owners, as 
     provided in this chapter and chapter 4.
       ``(2) Prior enrollments.--Acreage enrolled in the 
     conservation reserve or wetlands reserve program prior to the 
     effective date of this paragraph shall be considered to be 
     placed into the ECARP.
       ``(c) Conservation Priority Areas.--
       ``(1) Designation.--
       ``(A) In general.--The Secretary shall designate watersheds 
     or regions of special environmental sensitivity, including 
     the Chesapeake Bay Region (consisting of Pennsylvania, 
     Maryland, and Virginia), the Great Lakes Region, and the Long 
     Island Sound Region, as conservation priority areas that are 
     eligible for enhanced assistance through the programs 
     established under this chapter and chapter 4.
       ``(B) Application.--A designation shall be made under this 
     paragraph if agricultural practices on land within the 
     watershed or region pose a significant threat to soil, water, 
     and related natural resources, as determined by the 
     Secretary, and an application is made by--
       ``(i) a State agency in consultation with the State 
     technical committee established under section 1261; or
       ``(ii) State agencies from several States that agree to 
     form an interstate conservation priority area.
       ``(C) Assistance.--The Secretary shall designate a 
     watershed or region of special environmental sensitivity as a 
     conservation priority area to assist, to the maximum extent 
     practicable, agricultural producers within the watershed or 
     region to comply with nonpoint source pollution requirements 
     under the Federal Water Pollution Control Act (33 U.S.C. 1251 
     et seq.) and other Federal and State environmental laws.
       ``(2) Applicability.--The Secretary shall designate a 
     watershed or region of special environmental sensitivity as a 
     conservation priority area in a manner that conforms, to the 
     maximum extent practicable, to the functions and purposes of 
     the conservation reserve, wetlands reserve, and environmental 
     quality incentives programs, as applicable, if participation 
     in the program or programs is likely to result in the 
     resolution or amelioration of significant soil, water, and 
     related natural resource problems related to agricultural 
     production activities within the watershed or region.
       ``(3) Termination.--A conservation priority area 
     designation shall terminate on the date that is 5 years after 
     the date of the designation, except that the Secretary may--
       ``(A) redesignate the area as a conservation priority area; 
     or
       ``(B) withdraw the designation of a watershed or region if 
     the Secretary determines the area is no longer affected by 
     significant soil,water, and related natural resource impacts 
     related to agricultural production activities.''.

     SEC. 312. CONSERVATION RESERVE PROGRAM.

       (a) In General.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended--
       (1) by striking ``1995'' each place it appears and 
     inserting ``2002''; and
       (2) in subsection (d), by striking ``38,000,000'' and 
     inserting ``36,400,000''.
       (b) Duties of Owners and Operators.--Section 1232(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
     striking ``1995'' and inserting ``2002''.

     SEC. 313. WETLANDS RESERVE PROGRAM.

       (a) Purposes.--Section 1237(a) of the Food Security Act of 
     1985 (16 U.S.C. 3837(a)) is amended by striking ``to assist 
     owners of eligible lands in restoring and protecting 
     wetlands'' and inserting ``to protect wetlands for purposes 
     of enhancing water quality and providing wildlife benefits 
     while recognizing landowner rights''.
       (b) Enrollment.--Section 1237 of the Food Security Act of 
     1985 (16 U.S.C. 3837) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) Minimum Enrollment.--The Secretary shall enroll into 
     the wetlands reserve program--
       ``(1) during the 1996 through 2002 calendar years, a total 
     of not more than 975,000 acres; and
       ``(2) beginning with offers accepted by the Secretary 
     during calendar year 1997, to the maximum extent practicable, 
     \1/3\ of the acres in permanent easements, \1/3\ of the acres 
     in 30-year easements, and \1/3\ of the acres in restoration 
     cost-share agreements.''.
       (c) Eligibility.--Section 1237(c) of the Food Security Act 
     of 1985 (16 U.S.C. 3837(c)) is amended--
       (1) by striking ``2000'' and inserting ``2002'';
       (2) by inserting ``the land maximizes wildlife benefits and 
     wetland values and functions and'' after ``determines that'';
       (3) in paragraph (1)--
       (A) by striking ``December 23, 1985'' and inserting 
     ``January 1, 1996''; and
       (B) by striking ``and'' at the end;
       (4) by redesignating paragraph (2) as paragraph (3);
       (5) by inserting after paragraph (1) the following:
       ``(2) enrollment of the land meets water quality goals 
     through--
       ``(A) creation of tailwater pits or settlement ponds; or
       ``(B) enrollment of land that was enrolled (on the day 
     before the effective date of this subparagraph) in the water 
     bank program established under the Water Bank Act (16 U.S.C. 
     1301 et seq.) at a rate not to exceed the rates in effect 
     under the program;'';
       (6) in paragraph (3) (as so redesignated), by striking the 
     period at the end and inserting ``; and''; and
       (7) by adding at the end the following:
       ``(4) enrollment of the land maintains or improves wildlife 
     habitat.''.
       (d) Other Eligible Lands.--Section 1237(d) (16 U.S.C. 
     3837(d)) is amended by inserting after ``subsection (c)'' the 
     following ``, land that maximizes wildlife benefits and that 
     is''.
       (e) Easements.--Section 1237A of the Food Security Act of 
     1985 (16 U.S.C. 3837a) is amended--
       (1) in the section heading, by inserting before the period 
     at the end the following: ``and agreements'';
       (2) by striking subsection (c) and inserting the following:
       ``(c) Restoration Plans.--The development of a restoration 
     plan, including any 

[[Page S656]]
     compatible use, under this section shall be made through the local 
     Natural Resources Conservation Service representative, in 
     consultation with the State technical committee.'';
       (3) in subsection (f), by striking the third sentence and 
     inserting the following: ``Compensation may be provided in 
     not less than 5, nor more than 30, annual payments of equal 
     or unequal size, as agreed to by the owner and the 
     Secretary.''; and
       (4) by adding at the end the following:
       ``(h) Cost Share Agreements.--The Secretary may enroll land 
     into the wetland reserve through agreements that require the 
     landowner to restore wetlands on the land, if the agreement 
     does not provide the Secretary with an easement.''.
       (f) Cost Share and Technical Assistance.--Section 1237C of 
     the Food Security Act of 1985 (16 U.S.C. 3837c) is amended by 
     striking subsection (b) and inserting the following:
       ``(b) Cost Share and Technical Assistance.--In the case of 
     an easement entered into during the 1996 through 2002 
     calendar years, in making cost share payments under 
     subsection (a)(1), the Secretary shall--
       ``(1) in the case of a permanent easement, pay the owner an 
     amount that is not less than 75 percent, but not more than 
     100 percent, of the eligible costs;
       ``(2) in the case of a 30-year easement or a cost-share 
     agreement, pay the owner an amount that is not less than 50 
     percent, but not more than 75 percent, of the eligible costs; 
     and
       ``(3) provide owners technical assistance to assist 
     landowners in complying with the terms of easements and 
     agreements.''.

     SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       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--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

     ``SEC. 1238. FINDINGS AND PURPOSES.

       ``(a) Findings.--Congress finds that--
       ``(1) farmers and ranchers cumulatively manage more than 
     \1/2\ of the private lands in the continental United States;
       ``(2) because of the predominance of agriculture, the soil, 
     water, and related natural resources of the United States 
     cannot be protected without cooperative relationships between 
     the Federal Government and farmers and ranchers;
       ``(3) farmers and ranchers have made tremendous progress in 
     protecting the environment and the agricultural resource base 
     of the United States over the past decade because of not only 
     Federal Government programs but also their spirit of 
     stewardship and the adoption of effective technologies;
       ``(4) it is in the interest of the entire United States 
     that farmers and ranchers continue to strive to preserve soil 
     resources and make more efforts to protect water quality and 
     wildlife habitat, and address other broad environmental 
     concerns;
       ``(5) environmental strategies that stress the prudent 
     management of resources, as opposed to idling land, will 
     permit the maximum economic opportunities for farmers and 
     ranchers in the future;
       ``(6) unnecessary bureaucratic and paperwork barriers 
     associated with existing agricultural conservation assistance 
     programs decrease the potential effectiveness of the 
     programs; and
       ``(7) the recent trend of Federal spending on agricultural 
     conservation programs suggests that assistance to farmers and 
     ranchers in future years will, absent changes in policy, 
     dwindle to perilously low levels.
       ``(b) Purposes.--The purposes of the environmental quality 
     incentives program established by this chapter are to--
       ``(1) combine into a single program the functions of--
       ``(A) the agricultural conservation program authorized by 
     sections 7 and 8 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590g and 590h) (as in effect before 
     the amendments made by section 355(a)(1) of the Agricultural 
     Reform and Improvement Act of 1996);
       ``(B) the Great Plains conservation program established 
     under section 16(b) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590p(b)) (as in effect before the 
     amendment made by section 355(b)(1) of the Agricultural 
     Reform and Improvement Act of 1996); and
       ``(C) the water quality incentives program established 
     under chapter 2 (as in effect before the amendment made by 
     section 355(k) of the Agricultural Reform and Improvement Act 
     of 1996); and
       ``(D) the Colorado River Basin salinity control program 
     established under section 202(c) of the Colorado River Basin 
     Salinity Control Act (43 U.S.C. 1592(c)) (as in effect before 
     the amendment made by section 355(c)(1) of the Agricultural 
     Reform and Improvement Act of 1996); and
       ``(2) carry out the single program in a manner that 
     maximizes environmental benefits per dollar expended, and 
     that provides--
       ``(A) flexible technical and financial assistance to 
     farmers and ranchers that face the most serious threats to 
     soil, water, and related natural resources, including grazing 
     lands, wetlands, and wildlife habitat;
       ``(B) assistance to farmers and ranchers in complying with 
     this title and Federal and State environmental laws, and to 
     encourage environmental enhancement;
       ``(C) assistance to farmers and ranchers in making 
     beneficial, cost-effective changes to cropping systems, 
     grazing management, manure, nutrient, pest, or irrigation 
     management, land uses, or other measures needed to conserve 
     and improve soil, water, and related natural resources; and
       ``(D) for the consolidation and simplification of the 
     conservation planning process to reduce administrative 
     burdens on the owners and operators of farms and ranches.

     ``SEC. 1238A. DEFINITIONS.

       ``In this chapter:
       ``(1) Land management practice.--The term `land management 
     practice' means nutrient or manure management, integrated 
     pest management, irrigation management, tillage or residue 
     management, grazing management, or another land management 
     practice the Secretary determines is needed to protect soil, 
     water, or related resources in the most cost effective 
     manner.
       ``(2) Large confined livestock operation.--The term `large 
     confined livestock operation' means a farm or ranch that--
       ``(A) is a confined animal feeding operation; and
       ``(B) has more than--
       ``(i) 700 mature dairy cattle;
       ``(ii) 10,000 beef cattle;
       ``(iii) 150,000 laying hens or broilers;
       ``(iv) 55,000 turkeys;
       ``(v) 15,000 swine; or
       ``(vi) 10,000 sheep or lambs.
       ``(3) Livestock.--The term `livestock' means mature dairy 
     cows, beef cattle, laying hens, broilers, turkeys, swine, 
     sheep, or lambs.
       ``(4) Operator.--The term `operator' means a person who is 
     engaged in crop or livestock production (as defined by the 
     Secretary).
       ``(5) Structural practice.--The term `structural practice' 
     means the establishment of an animal waste management 
     facility, terrace, grassed waterway, contour grass strip, 
     filterstrip, permanent wildlife habitat, or another 
     structural practice that the Secretary determines is needed 
     to protect soil, water, or related resources in the most cost 
     effective manner.

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

       ``(a) Establishment.--
       ``(1) In general.--During the 1996 through 2002 fiscal 
     years, the Secretary shall provide technical assistance, 
     cost-sharing payments, and incentive payments to operators, 
     who enter into contracts with the Secretary, through an 
     environmental quality incentives program in accordance with 
     this chapter.
       ``(2) 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.
       ``(b) Application and Term.--A contract between an operator 
     and the Secretary under this chapter may--
       ``(1) apply to 1 or more structural practices or 1 or more 
     land management practices, or both; and
       ``(2) have a term of not less than 5, nor more than 10, 
     years, as determined appropriate by the Secretary, depending 
     on the practice or practices that are the basis of the 
     contract.
       ``(c) 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 priorities 
     established in section 1238C 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 and Incentive Payments.--
       ``(1) Cost-sharing payments.--
       ``(A) In general.--The Federal share of cost-sharing 
     payments to an operator proposing to implement 1 or more 
     structural practices shall not be less than 75 percent of the 
     projected cost of the practice, as determined by the 
     Secretary, taking into consideration any payment received by 
     the operator from a State or local government.
       ``(B) Limitation.--An operator of a large confined 
     livestock operation shall not be eligible for cost-sharing 
     payments to construct an animal waste management facility.
       ``(C) Other payments.--An operator shall not be eligible 
     for cost-sharing payments for structural practices on 
     eligible land under this chapter if the operator receives 
     cost-sharing payments or other benefits for the same land 
     under chapter 1 or 3.
     
[[Page S657]]

       ``(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.
       ``(f) Technical Assistance.--
       ``(1) Funding.--The Secretary shall allocate funding under 
     this chapter for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided in a fiscal year. The 
     allocated amount may vary according to the type of expertise 
     required, quantity of time involved, and other factors as 
     determined appropriate by the Secretary. Funding shall not 
     exceed the projected cost to the Secretary of the technical 
     assistance provided in a fiscal year.
       ``(2) Other authorities.--The receipt of technical 
     assistance under this chapter shall not affect the 
     eligibility of the operator to receive technical assistance 
     under other authorities of law available to the Secretary.
       ``(g) Modification or Termination of Contracts.--
       ``(1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with an 
     operator under this chapter if--
       ``(A) the operator agrees to the modification or 
     termination; and
       ``(B) the Secretary determines that the modification or 
     termination is in the public interest.
       ``(2) Involuntary termination.--The Secretary may terminate 
     a contract under this chapter if the Secretary determines 
     that the operator violated the contract.
       ``(h) Non-Federal Assistance.--
       ``(1) In general.--The Secretary may request the services 
     of a State water quality agency, State fish and wildlife 
     agency, State forestry agency, or any other governmental or 
     private resource considered appropriate to assist in 
     providing the technical assistance necessary for the 
     development and implementation of a structural practice or 
     land management practice.
       ``(2) Limitation on liability.--No person shall be 
     permitted to bring or pursue any claim or action against any 
     official or entity based on or resulting from any technical 
     assistance provided to an operator under this chapter to 
     assist in complying with a Federal or State environmental 
     law.

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

       ``(a) Regional Priorities.--The Secretary shall provide 
     technical assistance, cost-sharing payments, and incentive 
     payments to operators in a region, watershed, or conservation 
     priority area under this chapter based on the significance of 
     the soil, water, and related natural resource problems in the 
     region, watershed, or area, and the structural practices or 
     land management practices that best address the problems, as 
     determined by the Secretary.
       ``(b) Maximization of Environmental Benefits.--
       ``(1) In general.--In providing technical assistance, cost-
     sharing payments, and incentive payments to operators in 
     regions, watersheds, or conservation priority areas under 
     this chapter, the Secretary shall accord a higher priority to 
     assistance and payments that maximize environmental benefits 
     per dollar expended.
       ``(2) National and regional priority.--The prioritization 
     shall be done nationally as well as within the conservation 
     priority area, region, or watershed in which an agricultural 
     operation is located.
       ``(3) Criteria.--To carry out this subsection, the 
     Secretary shall establish criteria for implementing 
     structural practices and land management practices that best 
     achieve conservation goals for a region, watershed, or 
     conservation priority area, as determined by the Secretary.
       ``(c) State or Local Contributions.--The Secretary shall 
     accord a higher priority to operators whose agricultural 
     operations are located within watersheds, regions, or 
     conservation priority areas in which State or local 
     governments have provided, or will provide, financial or 
     technical assistance to the operators for the same 
     conservation or environmental purposes.
       ``(d) Priority Lands.--The Secretary shall accord a higher 
     priority to structural practices or land management practices 
     on lands on which agricultural production has been determined 
     to contribute to, or create, the potential for failure to 
     meet applicable water quality standards or other 
     environmental objectives of a Federal or State law.

     ``SEC. 1238D. DUTIES OF OPERATORS.

       ``To receive technical assistance, cost-sharing payments, 
     or incentives payments under this chapter, an operator shall 
     agree--
       ``(1) to implement an environmental quality incentives 
     program plan that describes conservation and environmental 
     goals to be achieved through a structural practice or land 
     management practice, or both, that is approved by the 
     Secretary;
       ``(2) not to conduct any practices on the farm or ranch 
     that would tend to defeat the purposes of this chapter;
       ``(3) on the violation of a term or condition of the 
     contract at any time the operator has control of the land, to 
     refund any cost-sharing or incentive payment received with 
     interest, and forfeit any future payments under this chapter, 
     as determined by the Secretary;
       ``(4) on the transfer of the right and interest of the 
     operator in land subject to the contract, unless the 
     transferee of the right and interest agrees with the 
     Secretary to assume all obligations of the contract, to 
     refund all cost-sharing payments and incentive payments 
     received under this chapter, as determined by the Secretary;
       ``(5) to supply information as required by the Secretary to 
     determine compliance with the environmental quality 
     incentives program plan and requirements of the program; and
       ``(6) to comply with such additional provisions as the 
     Secretary determines are necessary to carry out the 
     environmental quality incentives program plan.

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

       ``An environmental quality incentives program plan shall 
     include (as determined by the Secretary)--
       ``(1) a description of the prevailing farm or ranch 
     enterprises, cropping patterns, grazing management, cultural 
     practices, or other information that may be relevant to 
     conserving and enhancing soil, water, and related natural 
     resources;
       ``(2) a description of relevant farm or ranch resources, 
     including soil characteristics, rangeland types and 
     condition, proximity to water bodies, wildlife habitat, or 
     other relevant characteristics of the farm or ranch related 
     to the conservation and environmental objectives set forth in 
     the plan;
       ``(3) a description of specific conservation and 
     environmental objectives to be achieved;
       ``(4) to the extent practicable, specific, quantitative 
     goals for achieving the conservation and environmental 
     objectives;
       ``(5) a description of 1 or more structural practices or 1 
     or more land management practices, or both, to be implemented 
     to achieve the conservation and environmental objectives;
       ``(6) a description of the timing and sequence for 
     implementing the structural practices or land management 
     practices, or both, that will assist the operator in 
     complying with Federal and State environmental laws; and
       ``(7) information that will enable evaluation of the 
     effectiveness of the plan in achieving the conservation and 
     environmental objectives, and that will enable evaluation of 
     the degree to which the plan has been implemented.

     ``SEC. 1238F. DUTIES OF THE SECRETARY.

       ``To the extent appropriate, the Secretary shall assist an 
     operator in achieving the conservation and environmental 
     goals of an environmental quality incentives program plan 
     by--
       ``(1) providing an eligibility assessment of the farming or 
     ranching operation of the operator as a basis for developing 
     the plan;
       ``(2) providing technical assistance in developing and 
     implementing the plan;
       ``(3) providing technical assistance, cost-sharing 
     payments, or incentive payments for developing and 
     implementing 1 or more structural practices or 1 or more land 
     management practices, as appropriate;
       ``(4) providing the operator with information, education, 
     and training to aid in implementation of the plan; and
       ``(5) encouraging the operator to obtain technical 
     assistance, cost-sharing payments, or grants from other 
     Federal, State, local, or private sources.

     ``SEC. 1238G. ELIGIBLE LANDS.

       ``Agricultural land on which a structural practice or land 
     management practice, or both, shall be eligible for technical 
     assistance, cost-sharing payments, or incentive payments 
     under this chapter include--
       ``(1) agricultural land (including cropland, rangeland, 
     pasture, and other land on which crops or livestock are 
     produced) that the Secretary determines poses a serious 
     threat to soil, water, or related resources by reason of the 
     soil types, terrain, climatic, soil, topographic, flood, or 
     saline characteristics, or other factors or natural hazards;
       ``(2) an area that is considered to be critical 
     agricultural land on which either crop or livestock 
     production is carried out, as identified in a plan submitted 
     by the State under section 319 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1329) as having priority problems that 
     result from an agricultural nonpoint source of pollution;
       ``(3) an area recommended by a State lead agency for 
     protection of soil, water, and related resources, as 
     designated by a Governor of a State; and
       ``(4) land that is not located within a designated or 
     approved area, but that if permitted to continue to be 
     operated under existing management practices, would defeat 
     the purpose of the environmental quality incentives program, 
     as determined by the Secretary.

     ``SEC. 1238H. LIMITATIONS ON PAYMENTS.

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

     SEC. 321. CONSERVATION FUNDING.

       (a) In General.--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:
     
[[Page S658]]

                         ``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) Environmental Quality Incentives Program.--
       ``(1) In general.--For each of fiscal years 1996 through 
     2002, $200,000,000 of the funds of the Commodity Credit 
     Corporation shall be available for providing technical 
     assistance, cost-sharing payments, and incentive payments 
     under the environmental quality incentives program under 
     chapter 4 of subtitle D.
       ``(2) Livestock production.--For each of fiscal years 1996 
     through 2002, 50 percent of the funding available for 
     technical assistance, cost-sharing payments, and incentive 
     payments under the environmental quality incentives program 
     shall be targeted at practices relating to livestock 
     production.
       ``(c) Advance Appropriations to CCC.--The Secretary may use 
     the funds of the Commodity Credit Corporation to carry out 
     chapter 3 of subtitle D, except that the Secretary may not 
     use the funds of the Corporation unless the Corporation has 
     received funds to cover the expenditures from appropriations 
     made available to carry out chapter 3 of subtitle D.

     ``SEC. 1242. ADMINISTRATION.

       ``(a) Plans.--The Secretary shall, to the extent 
     practicable, avoid duplication in--
       ``(1) the conservation plans required for--
       ``(A) highly erodible land conservation under subtitle B;
       ``(B) the conservation reserve program established under 
     subchapter B of chapter 1 of subtitle D; and
       ``(C) the wetlands reserve program established under 
     subchapter C of chapter 1 of subtitle D; and
       ``(2) the environmental quality incentives program 
     established under chapter 4 of subtitle D.
       ``(b) Acreage Limitation.--
       ``(1) In general.--The Secretary shall not enroll more than 
     25 percent of the cropland in any county in the programs 
     administered under the conservation reserve and wetlands 
     reserve programs established under subchapters B and C, 
     respectively, of chapter 1 of subtitle D. Not more than 10 
     percent of the cropland in a county may be subject to an 
     easement acquired under the subchapters.
       ``(2) Exception.--The Secretary may exceed the limitations 
     in paragraph (1) if the Secretary determines that--
       ``(A) the action would not adversely affect the local 
     economy of a county; and
       ``(B) operators in the county are having difficulties 
     complying with conservation plans implemented under section 
     1212.
       ``(3) Shelterbelts and windbreaks.--The limitations 
     established under this subsection shall not apply to cropland 
     that is subject to an easement under chapter 1 or 3 of 
     subtitle D that is used for the establishment of shelterbelts 
     and windbreaks.
       ``(c) Tenant Protection.--Except for a person who is a 
     tenant on land that is subject to a conservation reserve 
     contract that has been extended by the Secretary, the 
     Secretary shall provide adequate safeguards to protect the 
     interests of tenants and sharecroppers, including provision 
     for sharing, on a fair and equitable basis, in payments under 
     the programs established under subtitles B through D.
       ``(d) Regulations.--Not later than 90 days after the 
     effective date of this subsection, the Secretary shall issue 
     regulations to implement the conservation reserve and 
     wetlands reserve programs established under chapter 1 of 
     subtitle D.''.
     Subtitle D--National Natural Resources Conservation Foundation

     SEC. 331. SHORT TITLE.

       This subtitle may be cited as the ``National Natural 
     Resources Conservation Foundation Act''.

     SEC. 332. DEFINITIONS.

       In this subtitle (unless the context otherwise requires):
       (1) Board.--The term ``Board'' means the Board of Trustees 
     established under section 334.
       (2) Department.--The term ``Department'' means the United 
     States Department of Agriculture.
       (3) Foundation.--The term ``Foundation'' means the National 
     Natural Resources Conservation Foundation established by 
     section 333(a).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

       (a) Establishment.--A National Natural Resources 
     Conservation Foundation is established as a charitable and 
     nonprofit corporation for charitable, scientific, and 
     educational purposes specified in subsection (b). The 
     Foundation is not an agency or instrumentality of the United 
     States.
       (b) Purposes.--The purposes of the Foundation are to--
       (1) promote innovative solutions to the problems associated 
     with the conservation of natural resources on private lands, 
     particularly with respect to agriculture and soil and water 
     conservation;
       (2) promote voluntary partnerships between government and 
     private interests in the conservation of natural resources;
       (3) conduct research and undertake educational activities, 
     conduct and support demonstration projects, and make grants 
     to State and local agencies and nonprofit organizations;
       (4) provide such other leadership and support as may be 
     necessary to address conservation challenges, such as the 
     prevention of excessive soil erosion, enhancement of soil and 
     water quality, and the protection of wetlands, wildlife 
     habitat, and strategically important farmland subject to 
     urban conversion and fragmentation;
       (5) encourage, accept, and administer private gifts of 
     money and real and personal property for the benefit of, or 
     in connection with, the conservation and related activities 
     and services of the Department, particularly the Natural 
     Resources Conservation Service;
       (6) undertake, conduct, and encourage educational, 
     technical, and other assistance, and other activities, that 
     support the conservation and related programs administered by 
     the Department (other than activities carried out on National 
     Forest System lands), particularly the Natural Resources 
     Conservation Service, except that the Foundation may not 
     enforce or administer a regulation of the Department; and
       (7) raise private funds to promote the purposes of the 
     Foundation.
       (c) Limitations and Conflicts of Interests.--
       (1) Political activities.--The Foundation shall not 
     participate or intervene in a political campaign on behalf of 
     any candidate for public office.
       (2) Conflicts of interest.--No director, officer, or 
     employee of the Foundation shall participate, directly or 
     indirectly, in the consideration or determination of any 
     question before the Foundation affecting--
       (A) the financial interests of the director, officer, or 
     employee; or
       (B) the interests of any corporation, partnership, entity, 
     organization, or other person in which the director, officer, 
     or employee--
       (i) is an officer, director, or trustee; or
       (ii) has any direct or indirect financial interest.
       (3) Legislation or government action or policy.--No funds 
     of the Foundation may be used in any manner for the purpose 
     of influencing legislation or government action or policy.
       (4) Litigation.--No funds of the Foundation may be used to 
     bring or join an action against the United States or any 
     State.

     SEC. 334. COMPOSITION AND OPERATION.

       (a) Composition.--The Foundation shall be administered by a 
     Board of Trustees that shall consist of 9 voting members, 
     each of whom shall be a United States citizen and not a 
     Federal officer. The Board shall be composed of--
       (1) individuals with expertise in agricultural conservation 
     policy matters;
       (2) a representative of private sector organizations with a 
     demonstrable interest in natural resources conservation;
       (3) a representative of statewide conservation 
     organizations;
       (4) a representative of soil and water conservation 
     districts;
       (5) a representative of organizations outside the Federal 
     Government that are dedicated to natural resources 
     conservation education; and
       (6) a farmer or rancher.
       (b) Nongovernmental Employees.--Service as a member of the 
     Board shall not constitute employment by, or the holding of, 
     an office of the United States for the purposes of any 
     Federal law.
       (c) Membership.--
       (1) Initial members.--The Secretary shall appoint 9 persons 
     who meet the criteria established under subsection (a) as the 
     initial members of the Board and designate 1 of the members 
     as the initial chairperson for a 2-year term.
       (2) Terms of office.--
       (A) In general.--A member of the Board shall serve for a 
     term of 3 years, except that the members appointed to the 
     initial Board shall serve, proportionately, for terms of 1, 
     2, and 3 years, as determined by the Secretary.
       (B) Limitation on terms.--No individual may serve more than 
     2 consecutive 3-year terms as a member.
       (3) Subsequent members.--The initial members of the Board 
     shall adopt procedures in the constitution of the Foundation 
     for the nomination and selection of subsequent members of the 
     Board. The procedures shall require that each member, at a 
     minimum, meets the criteria established under subsection (a) 
     and shall provide for the selection of an individual, who is 
     not a Federal officer or a member of the Board.
       (d) Chairperson.--After the appointment of an initial 
     chairperson under subsection (c)(1), each succeeding 
     chairperson of the Board shall be elected by the members of 
     the Board for a 2-year term.
       (e) Vacancies.--A vacancy on the Board shall be filled by 
     the Board not later than 60 days after the occurrence of the 
     vacancy.
       (f) Compensation.--A member of the Board shall receive no 
     compensation from the Foundation for the service of the 
     member on the Board.
       (g) Travel Expenses.--While away from the home or regular 
     place of business of a member of the Board in the performance 
     of services for the Board, the member shall be 

[[Page S659]]
     allowed travel expenses paid by the Foundation, including per diem in 
     lieu of subsistence, at the same rate as a person employed 
     intermittently in the Government service would be allowed 
     under section 5703 of title 5, United States Code.

     SEC. 335. OFFICERS AND EMPLOYEES.

       (a) In General.--The Board may--
       (1) appoint, hire, and discharge the officers and employees 
     of the Foundation, other than the appointment of the initial 
     Executive Director of the Foundation;
       (2) adopt a constitution and bylaws for the Foundation that 
     are consistent with the purposes of the Foundation and this 
     subtitle; and
       (3) undertake any other activities that may be necessary to 
     carry out this subtitle.
       (b) Officers and Employees.--
       (1) Appointment and hiring.--An officer or employee of the 
     Foundation--
       (A) shall not, by virtue of the appointment or employment 
     of the officer or employee, be considered a Federal employee 
     for any purpose, including the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service, except that such an individual may participate in 
     the Federal employee retirement system as if the individual 
     were a Federal employee; and
       (B) may not be paid by the Foundation a salary in excess of 
     $125,000 per year.
       (2) Executive director.--
       (A) Initial director.--The Secretary shall appoint an 
     individual to serve as the initial Executive Director of the 
     Foundation who shall serve, at the direction of the Board, as 
     the chief operating officer of the Foundation.
       (B) Subsequent directors.--The Board shall appoint each 
     subsequent Executive Director of the Foundation who shall 
     serve, at the direction of the Board, as the chief operating 
     officer of the Foundation.
       (C) Qualifications.--The Executive Director shall be 
     knowledgeable and experienced in matters relating to natural 
     resources conservation.

     SEC. 336. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

       (a) In General.--The Foundation--
       (1) may conduct business throughout the United States and 
     the territories and possessions of the United States; and
       (2) shall at all times maintain a designated agent who is 
     authorized to accept service of process for the Foundation, 
     so that the serving of notice to, or service of process on, 
     the agent, or mailed to the business address of the agent, 
     shall be considered as service on or notice to the 
     Foundation.
       (b) Seal.--The Foundation shall have an official seal 
     selected by the Board that shall be judicially noticed.
       (c) Powers.--To carry out the purposes of the Foundation 
     under section 333(b), the Foundation shall have, in addition 
     to the powers otherwise provided under this subtitle, the 
     usual powers of a corporation, including the power--
       (1) to accept, receive, solicit, hold, administer, and use 
     any gift, devise, or bequest, either absolutely or in trust, 
     of real or personal property or any income from, or other 
     interest in, the gift, devise, or bequest;
       (2) to acquire by purchase or exchange any real or personal 
     property or interest in property, except that funds provided 
     under section 310 may not be used to purchase an interest in 
     real property;
       (3) unless otherwise required by instrument of transfer, to 
     sell, donate, lease, invest, reinvest, retain, or otherwise 
     dispose of any property or income from property;
       (4) to borrow money from private sources and issue bonds, 
     debentures, or other debt instruments, subject to section 
     339, except that the aggregate amount of the borrowing and 
     debt instruments outstanding at any time may not exceed 
     $1,000,000;
       (5) to sue and be sued, and complain and defend itself, in 
     any court of competent jurisdiction, except that a member of 
     the Board shall not be personally liable for an action in the 
     performance of services for the Board, except for gross 
     negligence;
       (6) to enter into a contract or other agreement with an 
     agency of State or local government, educational institution, 
     or other private organization or person and to make such 
     payments as may be necessary to carry out the functions of 
     the Foundation; and
       (7) to do any and all acts that are necessary to carry out 
     the purposes of the Foundation.
       (d) Interest in Property.--
       (1) In general.--The Foundation may acquire, hold, and 
     dispose of lands, waters, or other interests in real property 
     by donation, gift, devise, purchase, or exchange.
       (2) Interests in real property.--For purposes of this 
     subtitle, an interest in real property shall be treated, 
     among other things, as including an easement or other right 
     for the preservation, conservation, protection, or 
     enhancement of agricultural, natural, scenic, historic, 
     scientific, educational, inspirational, or recreational 
     resources.
       (3) Gifts.--A gift, devise, or bequest may be accepted by 
     the Foundation even though the gift, devise, or bequest is 
     encumbered, restricted, or subject to a beneficial interest 
     of a private person if any current or future interest in the 
     gift, devise, or bequest is for the benefit of the 
     Foundation.

     SEC. 337. ADMINISTRATIVE SERVICES AND SUPPORT.

       For each of fiscal years 1996 through 1998, the Secretary 
     may provide, without reimbursement, personnel, facilities, 
     and other administrative services of the Department to the 
     Foundation.

     SEC. 338. AUDITS AND PETITION OF ATTORNEY GENERAL FOR 
                   EQUITABLE RELIEF.

       (a) Audits.--
       (1) In general.--The accounts of the Foundation shall be 
     audited in accordance with Public Law 88-504 (36 U.S.C. 1101 
     et seq.), including an audit of lobbying and litigation 
     activities carried out by the Foundation.
       (2) Conforming amendment.--The first section of Public Law 
     88-504 (36 U.S.C. 1101) is amended by adding at the end the 
     following:
       ``(77) The National Natural Resources Conservation 
     Foundation.''.
       (b) Relief with Respect to Certain Foundation Acts or 
     Failure to Act.--The Attorney General may petition in the 
     United States District Court for the District of Columbia for 
     such equitable relief as may be necessary or appropriate, if 
     the Foundation--
       (1) engages in, or threatens to engage in, any act, 
     practice, or policy that is inconsistent with this subtitle; 
     or
       (2) refuses, fails, neglects, or threatens to refuse, fail, 
     or neglect, to discharge the obligations of the Foundation 
     under this subtitle.

     SEC. 339. RELEASE FROM LIABILITY.

       (a) In General.--The United States shall not be liable for 
     any debt, default, act, or omission of the Foundation. The 
     full faith and credit of the United States shall not extend 
     to the Foundation.
       (b) Statement.--An obligation issued by the Foundation, and 
     a document offering an obligation, shall include a prominent 
     statement that the obligation is not directly or indirectly 
     guaranteed, in whole or in part, by the United States (or an 
     agency or instrumentality of the United States).

     SEC. 340. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Department 
     to be made available to the Foundation $1,000,000 for each of 
     fiscal years 1997 through 1999 to initially establish and 
     carry out activities of the Foundation.
                       Subtitle E--Miscellaneous

     SEC. 351. FLOOD RISK REDUCTION.

       (a) In General.--During fiscal years 1996 through 2002, the 
     Secretary of Agriculture (referred to in this section as the 
     ``Secretary'') may enter into a contract with contract 
     acreage under title I on a farm with land that is frequently 
     flooded.
       (b) Duties of Producers.--Under the terms of the contract, 
     with respect to acres that are subject to the contract, the 
     producer must agree to--
       (1) the termination of any contract acreage;
       (2) forgo loans for contract commodities, oilseeds, and 
     extra long staple cotton;
       (3) not apply for crop insurance issued or reinsured by the 
     Secretary;
       (4) comply with applicable wetlands and high erodible land 
     conservation compliance requirements established under title 
     XII of the Food Security Act of 1985 (16 U.S.C. 3801 et 
     seq.);
       (5) not apply for any conservation program payments from 
     the Secretary;
       (6) not apply for disaster program benefits provided by the 
     Secretary; and
       (7) refund the payments, with interest, issued under the 
     flood risk reduction contract to the Secretary, if the 
     producer violates the terms of the contract or if the 
     producer transfers the property to another person who 
     violates the contract.
       (c) Duties of Secretary.--In return for a flood risk 
     reduction contract entered into by a producer under this 
     section, the Secretary shall agree to pay the producer for 
     the 1996 through 2002 crops not more than 95 percent of the 
     projected contract payments under title I, and not more than 
     95 percent of the projected payments and subsidies from the 
     Federal Crop Insurance Corporation.
       (d) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.

     SEC. 352. FORESTRY.

       (a) Forestry Incentives Program.--Section 4 of the 
     Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103) 
     is amended by striking subsection (k).
       (b) Office of International Forestry.--Section 2405 of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 6704) is amended by adding at the end the following:
       ``(d) Authorization of Appropriations.--There are 
     authorized each fiscal year such sums as are necessary to 
     carry out this section.''.

     SEC. 353. STATE TECHNICAL COMMITTEES.

       Section 1261(c) of the Food Security Act of 1985 (16 U.S.C. 
     3861(c)) is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(9) agricultural producers.''.

     SEC. 354. CONSERVATION OF PRIVATE GRAZING LAND.

       (a) Findings.--Congress finds that--
       (1) privately owned grazing land constitutes nearly \1/2\ 
     of the non-Federal land of the United States and is basic to 
     the environmental, social, and economic stability of rural 
     communities;
       (2) privately owned grazing land contains a complex set of 
     interactions among soil, water, air, plants, and animals;
       (3) grazing land constitutes the single largest watershed 
     cover type in the United States and contributes significantly 
     to the 

[[Page S660]]
     quality and quantity of water available for all of the many uses of the 
     land;
       (4) private grazing land constitutes the most extensive 
     wildlife habitat in the United States;
       (5) private grazing land can provide opportunities for 
     improved nutrient management from land application of animal 
     manures and other by-product nutrient resources;
       (6) owners and managers of private grazing land need to 
     continue to recognize conservation problems when the problems 
     arise and receive sound technical assistance to improve or 
     conserve grazing land resources to meet ecological and 
     economic demands;
       (7) new science and technology must continually be made 
     available in a practical manner so owners and managers of 
     private grazing land may make informed decisions concerning 
     vital grazing land resources;
       (8) agencies of the Department of Agriculture with private 
     grazing land responsibilities are the agencies that have the 
     expertise and experience to provide technical assistance, 
     education, and research to owners and managers of private 
     grazing land for the long-term productivity and ecological 
     health of grazing land;
       (9) although competing demands on private grazing land 
     resources are greater than ever before, assistance to private 
     owners and managers of private grazing land is currently 
     limited and does not meet the demand and basic need for 
     adequately sustaining or enhancing the private grazing lands 
     resources; and
       (10) privately owned grazing land can be enhanced to 
     provide many benefits to all Americans through voluntary 
     cooperation among owners and managers of the land, local 
     conservation districts, and the agencies of the Department of 
     Agriculture responsible for providing assistance to owners 
     and managers of land and to conservation districts.
       (b) Purpose.--It is the purpose of this section to 
     authorize the Secretary of Agriculture to provide a 
     coordinated technical, educational, and related assistance 
     program to conserve and enhance private grazing land 
     resources and provide related benefits to all citizens of the 
     United States by--
       (1) establishing a coordinated and cooperative Federal, 
     State, and local grazing conservation program for management 
     of private grazing land;
       (2) strengthening technical, educational, and related 
     assistance programs that provide assistance to owners and 
     managers of private grazing land;
       (3) conserving and improving wildlife habitat on private 
     grazing land;
       (4) conserving and improving fish habitat and aquatic 
     systems through grazing land conservation treatment;
       (5) protecting and improving water quality;
       (6) improving the dependability and consistency of water 
     supplies;
       (7) identifying and managing weed, noxious weed, and brush 
     encroachment problems on private grazing land; and
       (8) integrating conservation planning and management 
     decisions by owners and managers of private grazing land, on 
     a voluntary basis.
       (c) Definitions.--In this section:
       (1) Private grazing land.--The term ``private grazing 
     land'' means privately owned, State-owned, tribally-owned, 
     and any other non-federally owned rangeland, pastureland, 
     grazed forest land, and hay land.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Natural Resources 
     Conservation Service.
       (d) Private Grazing Land Conservation Assistance.--
       (1) Assistance to grazing landowners and others.--Subject 
     to the availability of appropriations, the Secretary shall 
     establish a voluntary program to provide technical, 
     educational, and related assistance to owners and managers of 
     private grazing land and public agencies, through local 
     conservation districts, to enable the landowners, managers, 
     and public agencies to voluntarily carry out activities that 
     are consistent with this section, including--
       (A) maintaining and improving private grazing land and the 
     multiple values and uses that depend on private grazing land;
       (B) implementing grazing land management technologies;
       (C) managing resources on private grazing land, including--
       (i) planning, managing, and treating private grazing land 
     resources;
       (ii) ensuring the long-term sustainability of private 
     grazing land resources;
       (iii) harvesting, processing, and marketing private grazing 
     land resources; and
       (iv) identifying and managing weed, noxious weed, and brush 
     encroachment problems;
       (D) protecting and improving the quality and quantity of 
     water yields from private grazing land;
       (E) maintaining and improving wildlife and fish habitat on 
     private grazing land;
       (F) enhancing recreational opportunities on private grazing 
     land;
       (G) maintaining and improving the aesthetic character of 
     private grazing lands; and
       (H) identifying the opportunities and encouraging the 
     diversification of private grazing land enterprises.
       (2) Program elements.--
       (A) Funding.--The program under paragraph (1) shall be 
     funded through a specific line-item in the annual 
     appropriations for the Natural Resources Conservation 
     Service.
       (B) Technical assistance and education.--Personnel of the 
     Department of Agriculture trained in pasture and range 
     management shall be made available under the program to 
     deliver and coordinate technical assistance and education to 
     owners and managers of private grazing land, at the request 
     of the owners and managers.
       (e) Grazing Technical Assistance Self-Help.--
       (1) Findings.--Congress finds that--
       (A) there is a severe lack of technical assistance for 
     grazing producers;
       (B) the Federal budget precludes any significant expansion, 
     and may force a reduction of, current levels of technical 
     support; and
       (C) farmers and ranchers have a history of cooperatively 
     working together to address common needs in the promotion of 
     their products and in the drainage of wet areas through 
     drainage districts.
       (2) Establishment of grazing demonstration.--The Secretary 
     may establish 2 grazing management demonstration districts at 
     the recommendation of the Grazing Lands Conservation 
     Initiative Steering Committee.
       (3) Procedure.--
       (A) Proposal.--Within a reasonable time after the 
     submission of a request of an organization of farmers or 
     ranchers engaged in grazing, the Secretary shall propose that 
     a grazing management district be established.
       (B) Funding.--The terms and conditions of the funding and 
     operation of the grazing management district shall be 
     proposed by the producers.
       (C) Approval.--The Secretary shall approve the proposal if 
     the Secretary determines that the proposal--
       (i) is reasonable;
       (ii) will promote sound grazing practices; and
       (iii) contains provisions similar to the provisions 
     contained in the promotion orders in effect on the effective 
     date of this section.
       (D) Area included.--The area proposed to be included in a 
     grazing management district shall be determined by the 
     Secretary on the basis of a petition by farmers or ranchers.
       (E) Authorization.--The Secretary may use authority under 
     the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
     reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, to operate, on a demonstration basis, 
     a grazing management district.
       (F) Activities.--The activities of a grazing management 
     district shall be scientifically sound activities, as 
     determined by the Secretary in consultation with a technical 
     advisory committee composed of ranchers, farmers, and 
     technical experts.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $20,000,000 for fiscal year 1996;
       (2) $40,000,000 for fiscal year 1997; and
       (3) $60,000,000 for fiscal year 1998 and each subsequent 
     fiscal year.

     SEC. 355. CONFORMING AMENDMENTS.

       (a) Agricultural Conservation Program.--
       (1) Elimination.--
       (A) Section 8 of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h) is amended--
       (i) in subsection (b)--

       (I) by striking paragraphs (1) through (4) and inserting 
     the following:

       ``(1) Environmental quality incentives program.--The 
     Secretary shall provide technical assistance, cost share 
     payments, and incentive payments to operators through the 
     environmental quality incentives program in accordance with 
     chapter 2 of subtitle D of the Food Security Act of 1985 (16 
     U.S.C. 3838 et seq.).''; and

       (II) by striking paragraphs (6) through (8); and

       (ii) by striking subsections (d), (e), and (f).
       (B) The first sentence of section 11 of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590k) is 
     amended by striking ``performance: Provided further,'' and 
     all that follows through ``or other law'' and inserting 
     ``performance''.
       (C) Section 14 of the Act (16 U.S.C. 590n) is amended--
       (i) in the first sentence, by striking ``or 8''; and
       (ii) by striking the second sentence.
       (D) Section 15 of the Act (16 U.S.C. 590o) is amended--
       (i) in the first undesignated paragraph--

       (I) in the first sentence, by striking ``sections 7 and 8'' 
     and inserting ``section 7''; and
       (II) by striking the third sentence; and

       (ii) by striking the second undesignated paragraph.
       (2) Conforming amendments.--
       (A) Paragraph (1) of the last proviso of the matter under 
     the heading ``conservation reserve program'' under the 
     heading ``Soil Bank Programs'' of title I of the Department 
     of Agriculture and Farm Credit Administration Appropriation 
     Act, 1959 (72 Stat. 195; 7 U.S.C. 1831a) is amended by 
     striking ``Agricultural Conservation Program'' and inserting 
     ``environmental quality incentives program established under 
     chapter 2 of subtitle D of the Food Security Act of 1985 (16 
     U.S.C. 3838 et seq.)''.
       (B) Section 4 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103) is amended by striking ``as added by 
     the Agriculture and Consumer Protection Act of 1973'' each 
     place it appears in subsections (d) and (i) and inserting 
     ``as in effect before the amendment made by section 355(a)(1) 
     of the Agricultural Reform and Improvement Act of 1996''.
     
[[Page S661]]

       (C) Section 226(b)(4) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6932(b)(4)) is amended 
     by striking ``and the agricultural conservation program under 
     the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590g et seq.)''.
       (D) Section 246(b)(8) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6962(b)(8)) is amended 
     by striking ``and the agricultural conservation program under 
     the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
     590g et seq.)''.
       (E) Section 1271(c)(3)(C) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (16 U.S.C. 
     2106a(c)(3)(C)) is amended by striking ``Agricultural 
     Conservation Program established under section 16(b) of the 
     Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h, 
     590l, or 590p)'' and inserting ``environmental quality 
     incentives program established under chapter 2 of subtitle D 
     of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.)''.
       (F) Section 126(a)(5) of the Internal Revenue Code of 1986 
     is amended to read as follows:
       ``(5) The environmental quality incentives program 
     established under chapter 2 of subtitle D of the Food 
     Security Act of 1985 (16 U.S.C. 3838 et seq.).''.
       (G) Section 304(a) of the Lake Champlain Special 
     Designation Act of 1990 (Public Law 101-596; 33 U.S.C. 1270 
     note) is amended--
       (i) in the subsection heading, by striking ``Special 
     Project Area Under the Agricultural Conservation Program'' 
     and inserting ``A Priority Area Under the Environmental 
     Quality Incentives Program''; and
       (ii) in paragraph (1), by striking ``special project area 
     under the Agricultural Conservation Program established under 
     section 8(b) of the Soil Conservation and Domestic Allotment 
     Act (16 U.S.C. 590h(b))'' and inserting ``priority area under 
     the environmental quality incentives program established 
     under chapter 2 of subtitle D of the Food Security Act of 
     1985 (16 U.S.C. 3838 et seq.)''.
       (H) Section 6 of the Department of Agriculture Organic Act 
     of 1956 (70 Stat. 1033) is amended by striking subsection 
     (b).
       (b) Great Plains Conservation Program.--
       (1) Elimination.--Section 16 of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590p) is repealed.
       (2) Conforming amendments.--
       (A) The Agricultural Adjustment Act of 1938 is amended by 
     striking ``Great Plains program'' each place it appears in 
     sections 344(f)(8) and 377 (7 U.S.C. 1344(f)(8) and 1377) and 
     inserting ``environmental quality incentives program 
     established under chapter 2 of subtitle D of the Food 
     Security Act of 1985 (16 U.S.C. 3838 et seq.)''.
       (B) Section 246(b) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended by 
     striking paragraph (2).
       (C) Section 126(a) of the Internal Revenue Code of 1986 is 
     amended--
       (i) by striking paragraph (6); and
       (ii) by redesignating paragraphs (7) through (10) as 
     paragraphs (6) through (9), respectively.
       (c) Colorado River Basin Salinity Control Program.--
       (1) Elimination.--Section 202 of the Colorado River Basin 
     Salinity Control Act (43 U.S.C. 1592) is amended by striking 
     subsection (c).
       (2) Conforming amendment.--Section 246(b) of the Department 
     of Agriculture Reorganization Act of 1994 (7 U.S.C. 6962(b)) 
     is amended by striking paragraph (6).
       (d) Rural Environmental Conservation Program.--
       (1) Elimination.--Title X of the Agricultural Act of 1970 
     (16 U.S.C. 1501 et seq.) is repealed.
       (2) Conforming amendments.--Section 246(b) of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6962(b)) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) through (8) as 
     paragraphs (1) through (7), respectively.
       (e) Other Conservation Provisions.--Subtitle F of title XII 
     of the Food Security Act of 1985 (16 U.S.C. 2005a and 2101 
     note) is repealed.
       (f) 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.''.
       (g) Resource Conservation.--
       (1) Elimination.--Subtitles A, B, D, E, F, G, and J of 
     title XV of the Agriculture and Food Act of 1981 (95 Stat. 
     1328; 16 U.S.C. 3401 et seq.) are repealed.
       (2) Conforming amendment.--Section 739 of the Agriculture, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1982 (7 U.S.C. 2272a), is 
     repealed.
       (h) Environmental Easement Program.--Section 1239(a) of the 
     Food Security Act of 1985 (16 U.S.C. 3839(a)) is amended by 
     striking ``1991 through 1995'' and inserting ``1996 through 
     2002''.
       (i) Resource Conservation and Development Program.--Section 
     1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 3461) 
     is amended by striking ``1991 through 1995'' and inserting 
     ``1996 through 2002''.
       (j) Technical Amendment.--The first sentence of the matter 
     under the heading ``Commodity Credit Corporation'' of Public 
     Law 99-263 (100 Stat. 59; 16 U.S.C. 3841 note) is amended by 
     striking ``: Provided further,'' and all that follows through 
     ``Acts''.
       (k) Agricultural Water Quality Incentives Program.--Chapter 
     2 of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3838 et seq.) is repealed.
                     TITLE IV--NUTRITION ASSISTANCE

     SEC. 401. FOOD STAMP PROGRAM.

       (a) Employment and Training.--Section 16(h)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by 
     striking ``1995'' each place it appears and inserting 
     ``2002''.
       (b) Authorization of Pilot Projects.--The last sentence of 
     section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(A)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (c) Outreach Demonstration Projects.--The first sentence of 
     section 17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(j)(1)(A)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (d) Authorization for Appropriations.--The first sentence 
     of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2027(a)(1)) is amended by striking ``1995'' and inserting 
     ``2002''.
       (e) Reauthorization of Puerto Rico Nutrition Assistance 
     Program.--The first sentence of section 19(a)(1)(A) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by 
     striking ``$974,000,000'' and all that follows through 
     ``fiscal year 1995'' and inserting ``$1,143,000,000 for 
     fiscal year 1996, $1,174,000,000 for fiscal year 1997, 
     $1,204,000,000 for fiscal year 1998, $1,236,000,000 for 
     fiscal year 1999, $1,268,000,000 for fiscal year 2000, 
     $1,301,000,000 for fiscal year 2001, and $1,335,000,000 for 
     fiscal year 2002''.
       (f) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.) is amended by adding at the end the following:

     ``SEC. 24. TERRITORY OF AMERICAN SAMOA.

       ``From amounts made available to carry out this Act, the 
     Secretary may pay to the Territory of American Samoa not more 
     than $5,300,000 for each of fiscal years 1996 through 2002 to 
     finance 100 percent of the expenditures for the fiscal year 
     for a nutrition assistance program extended under section 
     601(c) of Public Law 96-597 (48 U.S.C. 1469d(c)).''.

     SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY 
                   SUPPLEMENTAL FOOD PROGRAM.

       (a) Reauthorization.--The first sentence of section 4(a) of 
     the Agriculture and Consumer Protection Act of 1973 (Public 
     Law 93-86; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2002''.
       (b) Funding.--Section 5 of the Agriculture and Consumer 
     Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) 
     is amended--
       (1) in subsection (a)(2), by striking ``1995'' and 
     inserting ``2002''; and
       (2) in subsection (d)(2), by striking ``1995'' and 
     inserting ``2002''.

     SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

       (a) Reauthorization.--The first sentence of section 
     204(a)(1) of the Emergency Food Assistance Act of 1983 
     (Public Law 98-8; 7 U.S.C. 612c note) is amended by striking 
     ``1995'' and inserting ``2002''.
       (b) Program Termination.--Section 212 of the Emergency Food 
     Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) 
     is amended by striking ``1995'' and inserting ``2002''.
       (c) Required Purchases of Commodities.--Section 214 of the 
     Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 
     U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002''; and
       (2) in subsection (e), by striking ``1995'' each place it 
     appears and inserting ``2002''.

     SEC. 404. SOUP KITCHENS PROGRAM.

       Section 110 of the Hunger Prevention Act of 1988 (Public 
     Law 100-435; 7 U.S.C. 612c note) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``1995'' and inserting ``2002''; and
       (2) in subsection (c)(2)--
       (A) in the paragraph heading, by striking ``1995'' and 
     inserting ``2002''; and
       (B) by striking ``1995'' each place it appears and 
     inserting ``2002''.

     SEC. 405. NATIONAL COMMODITY PROCESSING.

       The first sentence of section 1114(a)(2)(A) of the 
     Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is 
     amended by striking ``1995'' and inserting ``2002''.
                         TITLE V--MISCELLANEOUS

     SEC. 501. FUND FOR DAIRY PRODUCERS TO PAY FOR NUTRIENT 
                   MANAGEMENT.

       Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(5)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (1) in paragraph (A), by adding at the end the following: 
     ``The minimum price for milk of the highest classification in 
     any order (other than an order amended under paragraph (M)) 
     may not be higher than the minimum price required under this 
     paragraph.''; and
       (2) by adding at the end the following:
       ``(M) Safe harbor.--
       ``(i) In general.--Providing that each order may be amended 
     such that not more than $.10 per hundredweight of milk of the 
     highest use classification may be added to the minimum 
     applicable price to be set aside in a fund called the `Safe 
     Harbor Fund Account' (referred to in this paragraph as the 
     `Account').
       ``(ii) Administration.--
     
[[Page S662]]


       ``(I) Market administrator.--The Account shall be 
     administered by the Market Administrator.
       ``(II) Use of funds.--A determination regarding the use of 
     the funds in the Account shall be made by the Safe Harbor 
     Committee established under clause (iii).

       ``(iii) Safe harbor committee.--The Secretary shall 
     establish a Safe Harbor Committee consisting of 7 milk 
     producers appointed by the Secretary who supply milk to 
     handlers regulated under a Federal milk marketing order.
       ``(iv) Use of funds.--

       ``(I) Applications.--To be eligible to use amounts in the 
     fund, a milk producer who supplies milk to handlers regulated 
     under a Federal milk marketing order shall submit an 
     application to the Safe Harbor Committee.
       ``(II) Approval.--The Safe Harbor Committee may approve 
     only applications that fund conservation practices approved 
     by the Secretary that control the off-migration of nutrients 
     from the farm.
       ``(III) State water quality priorities.--In approving 
     applications, the Safe Harbor Committee shall take into 
     account, to the extent practicable, the applicable State 
     water quality priorities.''.

     SEC. 502. 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 or the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1301 et seq.), 
     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. 503. REVENUE INSURANCE.

       Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(h)) is amended by adding at the end the following:
       ``(9) Revenue insurance pilot program.--
       ``(A) In general.--Not later than December 31, 1996, the 
     Secretary shall carry out a pilot program in a limited number 
     of counties, as determined by the Secretary, for crop years 
     1997, 1998, 1999, and 2000, under which a producer of corn, 
     wheat, or soybeans may elect to receive insurance against 
     loss of revenue, as determined by the Secretary.
       ``(B) Administration.--Revenue insurance under this 
     paragraph shall--
       ``(i) be offered through reinsurance arrangements with 
     private insurance companies;
       ``(ii) offer at least a minimum level of coverage that is 
     an alternative to catastrophic crop insurance;
       ``(iii) be actuarily sound; and
       ``(iv) require the payment of premiums and administrative 
     fees by an insured producer.''.

     SEC. 504. 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. 505. 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.

     SEC. 506. EVERGLADES AGRICULTURAL AREA.

       (a) In General.--On July 1, 1996, out of any funds in the 
     Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall provide $200,000,000 to the Secretary of the 
     Interior to carry out this section.
       (b) Entitlement.--The Secretary of the Interior--
       (1) shall accept the funds made available under subsection 
     (a);
       (2) shall be entitled to receive the funds; and
       (3) shall use the funds to conduct restoration activities 
     in the Everglades ecosystem, which may include acquiring the 
     remaining private acreage in Townships 46, 47, and 48 of the 
     Everglades Agricultural Area of approximately 52,000 acres 
     that is commonly known as the ``Talisman tract''.
       (c) Deadline.--The Secretary of the Interior shall acquire 
     acreage referred to in subsection (b)(3) not later than 
     December 31, 1998.
       (d) Eminent Domain.--If necessary, the Secretary of the 
     Interior may use the power of eminent domain to carry out 
     this section.
                                 d_____


                       NICKLES AMENDMENT NO. 3185

  (Ordered to lie on the table.)
  Mr. NICKLES submitted an amendment intended to be proposed by him to 
the bill S. 1541, supra; as follows:

       Section 13(j)(2)(ii), and insert in lieu thereof the 
     following:
       (ii) Contract commodities.--Contract acreage planted to 
     contract commodities may be hayed or grazed at any time 
     without limitation.
     
[[Page S663]]


                           NOTICE OF HEARING


                 COMMITTEE ON RULES AND ADMINISTRATION

  Mr. WARNER. Mr. President, I wish to announce that the Committee on 
Rules and Administration will meet in SR-301, Russell Senate Office 
Building, on Thursday, February 1, 1996, at 9:30 a.m., to receive 
testimony on campaign finance reform.
  For further information concerning this hearing, please contact Ed 
Edens of the committee staff on 224-6684.

                          ____________________