[Congressional Record Volume 142, Number 16 (Tuesday, February 6, 1996)]
[Senate]
[Pages S920-S995]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______


             THE AGRICULTURAL MARKET TRANSITION ACT OF 1996

                                 ______


                        GRAMS AMENDMENT NO. 3316

  (Ordered to lie on the table.)
  Mr. GRAMS submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill (S. 1541) to 
extend, reform, and improve agricultural commodity, trade, 
conservation, and other programs, and for other purposes; as follows:

                                S. 1541

       Beginning on page 1-73, strike line 12 and all that follows 
     through page 1-75, line 7, and insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Termination of Milk Marketing Orders.--Section 8c of 
     the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended by striking subsection (5) and (18).
       (b) Prohibition of Subsequent Orders Regarding Milk.--
     Section 8c(2) of the Agricultural Adjustment Act (7 U.S.C. 
     608c(2)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (1) in paragraph (A), by striking ``Milk, fruits'' and 
     inserting ``Fruits''; and
       (2) in paragraph (B), by inserting ``milk,'' after 
     ``honey,''.
       (c) Conforming Amendments.--
       (1) Section 2(3) of the Agricultural Adjustment Act (7 
     U.S.C. 602(3)), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended by striking ``, 
     other than milk and its products,''.
       (2) Section 8c of the Agricultural Adjustment Act (7 U.S.C. 
     608c), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937, is amended--
       (A) in subsection (6), by striking ``, other than milk and 
     its products,'';
       (B) in subsection (7)(B), by striking ``(except for milk 
     and cream to be sold for consumption in fluid form)'';
       (C) in subsection (11)(B), by striking ``Except in the case 
     of milk and its products, orders'' and inserting ``Orders'';
       (D) in subsection (13)(A), by striking ``, except to a 
     retailer in his capacity as a retailer of milk and its 
     products''; and
       (E) in the first sentence of subsection (17), by striking 
     ``; Provided further,'' and all that follows through ``to 
     such order''.
       (3) Section 8d(2) of the Agricultural Adjustment Act (7 
     U.S.C. 608d(2)), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, is amended by 
     striking the second sentence.
       (4) Section 10(b)(2) of the Agricultural Adjustment Act (7 
     U.S.C. 610(b)(2)), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, is amended--
       (A) by striking clause (i);
       (B) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii) respectively; and
     
[[Page S921]]

       (C) in the first sentence of clause (i) (as so 
     redesignated), by striking ``other commodity'' and inserting 
     ``commodity''.
       (5) Section 11 of the Agricultural Adjustment Act (7 U.S.C. 
     611), reenacted with amendments by the Agricultural Marketing 
     Agreement Act of 1937, is amended by striking ``peanuts, and 
     milk, and its products,'' and inserting ``and peanuts,''.
       (6) Section 715 of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 1994 (Public Law 103-111, 107 Stat. 1079; 7 U.S.C. 608d 
     note), is amended by striking ``amended: Provided further,'' 
     and all that follows through ``handlers'' and inserting 
     ``amended''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on December 31, 1998.
                                 ______


                 BUMPERS (AND PRYOR) AMENDMENT NO. 3317

  (Ordered to lie on the table.)
  Mr. BUMPERS (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by them to amendment No. 3184 proposed by Mr. 
Leahy to the bill S. 1541, supra; as follows:

       At the appropriate place in the bill, add the following: 
     ``Notwithstanding any other provision of this Act, any 
     program authorized to be administered by the Secretary of 
     Agriculture on January 1, 1995, modified by this Act, shall 
     be deemed authorized under the same terms and conditions as 
     existed on January 1, 1995, until December 31, 1996, unless 
     other terms and conditions are subsequently established by 
     law.''
                                 ______


                    MURRAY AMENDMENTS NOS. 3318-3319

  (Ordered to lie on the table.)
  Mrs. MURRAY submitted two amendments intended to be proposed by her 
to amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; 
as follows:

                           Amendment No. 3318

       On page 1-21, line 17, strike ``$2.58'' and insert 
     ``$2.82''.
                                                                    ____


                           Amendment No. 3319

       Beginning on page 3-2, strike line 1 and all that follows 
     through page 3-5, line 23, and insert the following:

     ``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, 
     air, 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 the 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, 
     air, 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 and other 
     requirements under the Federal Water Pollution Control Act 
     (33 U.S.C. 1251 et seq.), the Clean Air Act (42 U.S.C. 7401 
     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, air, 
     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 in no longer affected by 
     significant soil, water, air, and related natural resource 
     impacts related to agricultural production activities.''.
                                 ______


                  WELLSTONE AMENDMENTS NOS. 3320-3323

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

                           Amendment No. 3320

       At the appropriate place insert the following:

     ``SEC.   . ADJUSTMENT TO LOAN RATE CAPS.

       ``(a) Attribution.--Notwithstanding any other provision of 
     this Act and notwithstanding the provisions of sections 1001 
     and 1001A of the Food Security Act of 1985 (7 U.S.C. 1308 and 
     1308-1) in the case of the 1996 through 2002 contract acres 
     of wheat, feed grains, upland cotton, rice, and oilseeds, the 
     Secretary shall attribute payments specified in section 1001 
     of that Act to persons who receive the payments directly, and 
     attribute payments received by entities to the individuals 
     who own such entities in proportion to their ownership 
     interest in the entity.''
       ``(b) Adjustments in Contract Accounts and Loan Rate 
     Caps.--For the crops after the Secretary has implemented 
     subsection (a), the Secretary shall--
       ``(1) notwithstanding the provisions of this title, reduce 
     the Contract Payment Account provided in section 103 for each 
     fiscal year by $140,000,000; and
       ``(2) increase the loan rate caps in section 104 as 
     follows:
       ``(A) $2.75 per bushel for wheat;
       ``(B) $2.00 per bushel for corn;
       ``(C) $0.54 per pound for upland cotton;
       ``(D) $6.60 per hundredweight for rice;
       ``(E) $5.10 per bushel for soybeans; and
       ``(F) $.10 per pound for sunflower seed, canola, rapeseed, 
     safflower, mustard seed, and flaxseed.''
                                                                    ____


                           Amendment No. 3321

       At the appropriate place insert the following:

     ``SEC.   . VALUE-ADDED PROCESSING AND MARKETING.

       ``(a) Attribution.--Notwithstanding any other provision of 
     this Act and notwithstanding the provisions of sections 1001 
     and 1001A of the Food Security Act of 1985 (7 U.S.C. 1308 and 
     1308-1) in the case of the 1996 through 2002 contracts acres 
     of wheat and feed grains, the Secretary shall attribute 
     payments specified in section 1001 of that Act to persons who 
     receive the payments directly, and attribute payments 
     received by entities to the individuals who own such entities 
     in proportion to their ownership interest in the entity.
       ``(b) Adjustments in Contract Accounts and Loan Guarantee 
     and Grant Authority.--For the crops after the Secretary has 
     implemented subsection (a), the Secretary shall--
       ``(1) notwithstanding the provisions of this title, reduce 
     the Contract Payment for what and feed grains provided in 
     section 103 for each fiscal year by the amount estimated by 
     the Secretary not paid to farmers as a result of subsection 
     (a); and
       ``(2) use such savings generated in paragraph (1) to carry 
     out a program to issue guarantee against the risk of 
     nonpayment arising out of loans taken out by small and 
     moderate-size agricultural producers in wheat and feed-grain 
     regions to finance the purchase of stock of membership 
     capital in cooperative associations engaged in value-added, 
     food or industrial-use processing of agricultural 
     commodities, and to issue grants to provide financial and 
     technical assistance for agricultural diversification, 
     marketing, processing and production strategies by small and 
     moderate-size farmers to add value to farm products and 
     increase self-employment opportunities.''
                                                                    ____


                           Amendment No. 3322

       Amend title I by adding to the end the following:
       
[[Page S922]]


     ``SEC. 112. ADJUSTMENT TO LOAN RATE CAPS.

       ``(a) Attribution.--Notwithstanding the provisions of 
     sections 1001 and 1001A of the Food Security Act of 1985 (7 
     U.S.C. 1308 and 1308-1) in the case of the 1996 through 2002 
     contract acres of wheat, feed grains, upland cotton, rice, 
     and oilseeds, the Secretary shall attribute payments 
     specified in section 1001 of that Act to persons who receive 
     the payments directly, and attribute payments received by 
     entities to the individuals who own such entities in 
     proportion to their ownership interest in the entity.
       ``(b) Adjustments in Contract Accounts and Loan Rate 
     Caps.--For the crops after the Secretary has implemented 
     subsection (a), the Secretary shall--
       ``(1) notwithstanding the provisions of this title, reduce 
     the Contract Payment Account provided in section 103 for each 
     fiscal year by $140,000,000; and
       ``(2) increase the loan rate caps in section 104 as 
     follows:
       ``(A) $2.75 per bushel for wheat;
       ``(B) $2.00 per bushel for corn;
       ``(C) $0.54 per pound for upland cotton;
       ``(D) $6.60 per hundredweight for rice;
       ``(E) $5.10 per bushel for soybeans; and
       ``(F) $.10 per bushel for sunflower seed, canola, rapeseed, 
     safflower, mustard seed, and flaxseed.''
                                                                    ____


                           Amendment No. 3323

       Amend title I by adding to the end the following:

     ``SEC. 112. VALUE-ADDED PROCESSING AND MARKETING.

       ``(a) Attribution.--Notwithstanding the provisions of 
     sections 1001 and 1001A of the Food Security Act of 1985 (7 
     U.S.C. 1308 and 1308-1) in the case of the 1996 through 2002 
     contract acres of wheat and feed grains, the Secretary shall 
     attribute payments specified in section 1001 of that Act to 
     persons who receive the payments directly, and attribute 
     payments received by entities to the individuals who own such 
     entities in proportion to their ownership interest in the 
     entity.
       ``(b) Adjustments in Contract Accounts and Loan Guarantee 
     and Grant Authority.--For the crops after the Secretary has 
     implemented subsection (a), the Secretary shall--
       ``(1) notwithstanding the provisions of this title, reduce 
     the Contract Payment for wheat and feed grains provided in 
     section 103 for each fiscal year by the amount estimated by 
     the Secretary not paid to farmers as a result of subsection 
     (a); and
       ``(2) use such savings generated in paragraph (1) to carry 
     out a program to issue guarantee against the risk of 
     nonpayment arising out of loans taken out by small and 
     moderate-size agricultural producers in wheat and feed-grain 
     regions to finance the purchase of stock or membership 
     capital in cooperative associations engaged in value-added, 
     food or industrial-use processing of agricultural 
     commodities, and to issue grants to provide financial and 
     technical assistance for agricultural diversification, 
     marketing, processing and production strategies by small and 
     moderate-size farmers to add value to farm products and 
     increase self-employment opportunities.''
                                 ______


                      FEINGOLD AMENDMENT NO. 3324

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       At the appropriate place insert the following:

     SEC.   . RURAL COMMUNITY TOURISM PROVISIONS.

       (a) Purpose.--The purpose of this section is to amend the 
     Consolidated Farm and Rural Development Act to require the 
     Secretary of Agriculture to clarify that tourist and other 
     recreational businesses located in rural communities are 
     eligible for loans under the Business and Industry (B&I) Loan 
     Guarantee Program.
       (b) Loans for Tourism in Rural Communities.--The first 
     sentence of section 310B(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1932(a)) is amended--
       (1) by striking ``and (3)'' and inserting ``(3)''; and
       ``(2) by inserting before the period at the end the 
     following: ``, and (4) promoting the planning, development, 
     or financing of tourist or recreational businesses located in 
     rural communities''.
                                 ______


                      FEINGOLD AMENDMENT NO. 3325

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted an amendment intended to be proposed by him to 
amendment No. 3247 submitted by Mr. Leahy to the bill S. 1541, supra; 
as follows:

       Strike the provision relating to the Northeast Interstate 
     Dairy Compact.
                                 ______


                        KOHL AMENDMENT NO. 3326

  (Ordered to lie on the table.)
  Mr. KOHL submitted an amendment intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to the bill S. 1541, supra; 
as follows:

       On page 2-64, lines 18 and 19, strike ``Australian Wheat 
     Board and Canadian Wheat Board'' and insert ``Australian 
     Wheat Board, Canadian Wheat Board, and New Zealand Dairy 
     Board''.
                                 ______


                 KOHL (AND FEINGOLD) AMENDMENT NO. 3327

  (Ordered to lie on the table.)
  Mr. KOHL (for himself and Mr. Feingold) submitted an amendment 
intended to be proposed by them to amendment No. 3184 proposed by Mr. 
Leahy to the bill S. 1541, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . DAIRY VOTING REFORM.

       Section 113(b) of the Dairy Production Stabilization Act of 
     1983 (7 U.S.C. 4504(b)) is amended--
       (1) by designating the first and second sentences as 
     paragraphs (1) and (2), respectively;
       (2) by designating the third through fifth sentences as 
     paragraph (3);
       (3) by designating the sixth sentence as paragraph (4);
       (4) by designating the seventh and eighth sentences as 
     paragraph (5);
       (5) by designating the ninth sentence as paragraph (6);
       (6) in paragraph (1) (as so designated), by striking ``and 
     appointment'';
       (7) by striking paragraph (2) (as so designated) and 
     inserting the following:
       ``(2)(A)(i) Subject to clause (ii), members of the Board 
     shall be milk producers nominated in accordance with 
     subparagraph (B) and elected by a vote of producers through a 
     process established by the Secretary.
       ``(ii) In carrying out clause (i), the Secretary shall not 
     permit an organization certified under section 114 to vote on 
     behalf of the members of the organization.
       ``(B) Nominations shall be submitted by organizations 
     certified under section 114, or, if the Secretary determines 
     that a substantial number of milk producers are not members 
     of, or the interests of the producers are not represented by, 
     a certified organization, from nominations submitted by the 
     producers in the manner authorized by the Secretary. In 
     submitting nominations, each certified organization shall 
     demonstrate to the satisfaction of the Secretary that the 
     milk producers who are members of the organization have been 
     fully consulted in the nomination process.'';
       (8) in the first sentence of paragraph (3) (as so 
     designated), by striking ``In making such appointments,'' and 
     inserting ``In establishing the process for the election of 
     members of the Board,''; and
       (9) in paragraph (4) (as so designated)--
       (A) by striking ``appointment'' and inserting ``election''; 
     and
       (B) by striking ``appointments'' and inserting 
     ``elections''.
                                 ______


                 KOHL (AND FEINGOLD) AMENDMENT NO. 3328

  (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:

     SEC.   . DAIRY VOTING REFORM.

       Section 113(b) of the Dairy Production Stabilization Act of 
     1983 (7 U.S.C. 4504(b)) is amended--
       (1) by designating the first and second sentences as 
     paragraphs (1) and (2), respectively;
       (2) by designating the third through fifth sentences as 
     paragraph (3);
       (3) by designating the sixth sentence as paragraph (4);
       (4) by designating the seventh and eighth sentences as 
     paragraph (5);
       (5) by designating the ninth sentence as paragraph (6);
       (6) in paragraph (1) (as so designated), by striking ``and 
     appointment'';
       (7) by striking paragraph (2) (as so designated) and 
     inserting the following:
       ``(2)(A)(i) Subject to clause (ii), members of the Board 
     shall be milk producers nominated in accordance with 
     subparagraph (B) and elected by a vote of producers through a 
     process established by the Secretary.
       ``(ii) In carrying out clause (i), the Secretary shall not 
     permit an organization certified under section 114 to vote on 
     behalf of the members of the organization.
       ``(B) Nominations shall be submitted by organizations 
     certified under section 114, of, if the Secretary determines 
     that a substantial number of milk producers are not members 
     of, or the interests of the producers are not represented by, 
     a certified organization, from nominations submitted by the 
     producers in the manner authorized by the Secretary. In 
     submitting nominations, each certified organization shall 
     demonstrate to the satisfaction of the Secretary that the 
     milk producers who are members of the organization have been 
     fully consulted in the nomination process.'';
       (8) in the first sentence of paragraph (3) (as so 
     designated), by striking ``In making such appointments,'' and 
     inserting ``In establishing the process for the election of 
     members of the Board,''; and
       (9) in paragraph (4) (as so designated)--
       (A) by striking ``appointment'' and inserting ``election''; 
     and
       (B) by striking ``appointments'' and inserting 
     ``elections''.
                                 ______

                                 
[[Page S923]]


                  KOHL (AND OTHERS) AMENDMENT NO. 3329

  (Ordered to lie on the table.)
  Mr. KOHL (for himself, Mr. Feingold, Mr. Wellstone, Mr. Grams, Mr. 
Pressler, and Mr. Lautenberg) submitted an amendment intended to be 
proposed by them to amendment No. 3247 submitted by Mr. Leahy to the 
bill S. 1541, supra; as follows:

       Strike section 108(f) of the amendment.
                                 ______


                  KOHL (AND OTHERS) AMENDMENT NO. 3330

  (Ordered to lie on the table.)
  Mr. KOHL (for himself, Mr. Feingold, Mr. Wellstone, Mr. Grams, Mr. 
Pressler, and Mr. Lautenberg) submitted an amendment intended to be 
proposed by them to amendment No. 3184 submitted by Mr. Leahy to the 
bill S. 1541, supra; as follows:

       Beginning on page 1-73, strike line 12 and all that follows 
     through page 1-75, line 7.
                                 ______


                 KOHL (AND FEINGOLD) AMENDMENT NO. 3331

  (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:

     ``Notwithstanding any other provision of this Act, the 
     following conditions shall apply to the reform of the Federal 
     milk marketing orders as conducted by the Secretary:

     ``SEC.   . CONSOLIDATION AND REFORM OF FEDERAL MILK MARKETING 
                   ORDERS.--

       ``(1) Amendment to Orders.--Within two years after the date 
     of enactment of this Act, 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--
       ``(A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders;
       ``(B) provide for multiple basing points for the pricing of 
     milk;
       ``(C) provide for the reduction by 50 percent of the price 
     difference between the highest and lowest price differentials 
     for Class I milk in effect at the time of enactment of this 
     Act; and
       ``(D) provide for the implementation of uniform multiple 
     component for milk used in manufactured dairy products.
       ``(2) Expedited Process.--The amendments required under 
     paragraph (1) shall be--
       ``(A) announced not later than (1) year following the date 
     of enactment of this Act; and
       ``(B) implemented not later than 2 years following the date 
     of enactment of this Act.
       ``(3) 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 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 this section, 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 
     this section have been fully implemented, then effective at 
     the end of that period--
       ``(i) the Secretary shall immediately cease all milk price 
     support activities under this Act;
       ``(ii) the Secretary shall immediately terminate all 
     Federal milk marketing orders under section c 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;
       ``(iii) 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
       ``(iv) 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.).''
                                 ______


                 KOHL (AND FEINGOLD) AMENDMENT NO. 3332

       (Ordered to lie on the table.)
  Mr. KOHL (for himself and Mr. Feingold) submitted an amendment 
intended to be proposed by them to amendment No. 3247 submitted by Mr. 
Leahy to the bill S. 1541, supra; as follows:

       Beginning of page 4 of the amendment, strike line 16 and 
     all that follows through page 5, line 14, and insert the 
     following:
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment to orders.--Within two years after the date 
     of enactment of this Act, 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 
     1037, to--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders;
       (B) provide for multiple basing points for the pricing of 
     milk;
       (C) provide for the reduction by 50 percent of the price 
     difference between the highest and lowest price differentials 
     for Class I milk in effect at the time of enactment of this 
     Act; and
       (D) provide for the implementation of uniform multiple 
     component for milk used in manufactured dairy products.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than (1) year following the date of 
     enactment of this Act; and
       (B) implemented not later 2 years following the date of 
     enactment of this Act.
       (3) 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 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 108(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 108(b) have been fully implemented, then effective at 
     the end of that period--
       (i) the Secretary shall immediately cease all price support 
     activities under section 108(a);
       (ii) the Secretary shall immediately terminate all Federal 
     milk marketing orders under section c 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;
       (iii) 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
       (iv) 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.).
                                 ______


                  KERREY (AND EXON) AMENDMENT NO. 3333

  (Ordered to lie on the table.)
  Mr. KERREY (for himself and Mr. Exon) submitted an amendment intended 
to be proposed by them to amendment No. 3184 proposed by Mr. Leahy to 
the bill S. 1541, supra; as follows:

       On page 3-46, strike lines 6 through 14 and insert the 
     following:

     SEC. 353. STATE TECHNICAL COMMITTEES.

       Subtitle G of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3861 et seq.) is amended to read as follows:

                ``Subtitle G--State Technical Committees

     ``SEC. 1261. ESTABLISHMENT.

       ``(a) In General.--The Secretary shall establish in each 
     State a State technical committee to assist the Secretary in 
     the technical considerations relating to implementation of 
     the conservation provisions under this title.
       ``(b) Coordination.--Each State technical committee shall 
     be coordinated by the State Conservationist of the Natural 
     Resources Conservation Service.
       ``(c) Composition.--Each technical committee shall be 
     composed of persons with relevant expertise that represent a 
     variety of disciplines in the soil, water, wetland, and 
     wildlife and social sciences, including representatives of--
     
[[Page S924]]

       ``(1) the Natural Resources Conservation Service;
       ``(2) the Farm Service Agency;
       ``(3) the Forest Service;
       ``(4) the Cooperative State Research, Education and 
     Extension Service;
       ``(5) the Office of Rural Economic and Community 
     Development;
       ``(6) the United States Fish and Wildlife Service;
       ``(7) the Environmental Protection Agency;
       ``(8) the United States Geological Service;
       ``(9) State departments and agencies that the Secretary 
     considers appropriate, including--
       ``(A) the State fish and wildlife agency;
       ``(B) the State forester or equivalent State official;
       ``(C) the State water resources agency;
       ``(D) the State department of agriculture; and
       ``(E) the State association of soil and water conservation 
     districts, or natural resources districts;
       ``(10) agricultural producers utilizing a range of 
     conservation farming systems and practices;
       ``(11) other nonprofit organizations with demonstrable 
     expertise;
       ``(12) persons knowledgeable about the economic and 
     environmental impact of conservation techniques and programs; 
     and
       ``(13) agribusiness.

     ``SEC. 1262. RESPONSIBILITIES.

       ``(a) In General.--
       ``(1) Meetings.--Each State technical committee shall meet 
     regularly to provide information, analysis, and 
     recommendations to the Secretary regarding implementation of 
     conservation provisions and programs.
       ``(2) Manner.--The information, analysis, and 
     recommendations shall be provided in a manner that will 
     assist the Department of Agriculture in determining 
     conservation priorities for the State and matters of fact, 
     technical merit, or scientific question.
       ``(3) Best information and judgment.--Information, 
     analysis, and recommendations shall be provided in writing 
     and shall reflect the best information and judgment of the 
     committee.
       ``(b) Other Duties.--Each State technical committee shall 
     provide assistance and offer recommendations with respect to 
     the technical aspects of--
       ``(1) wetland protection, restoration, and mitigation 
     requirements;
       ``(2) criteria to be used in evaluating bids for enrollment 
     of environmentally sensitive lands in the conservation 
     reserve program;
       ``(3) guidelines for haying or grazing and the control of 
     weeds to protect nesting wildlife on setaside acreage;
       ``(4) addressing common weed and pest problems and programs 
     to control weeds and pests found on acreage enrolled in the 
     conservation reserve program;
       ``(5) guidelines for planting perennial cover for water 
     quality and wildlife habitat improvement on set-aside lands;
       ``(6) criteria and guidelines to be used in evaluating 
     petitions by farmers to test conservation practices and 
     systems not currently covered in Field Office Technical 
     Guides;
       ``(7) identification, prioritization, and coordination of 
     Water Quality Incentives Program initiatives in the State; 
     and
       ``(8) other matters determined appropriate by the 
     Secretary.
       ``(c) Authority.--
       ``(1) No enforcement authority.--Each State technical 
     committee is advisory and shall have no implementation or 
     enforcement authority.
       ``(2) Consideration.--The Secretary shall give strong 
     consideration to the recommendations of State technical 
     committees in administering the program under this title, and 
     to any factual, technical, or scientific finding of a 
     committee.''.
                                 ______


                       KERREY AMENDMENT NO. 3334

  (Ordered to lie on the table.)
  Mr. KERREY submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       On page 3-62, after line 22, insert the following:

     SEC. 356. CONSERVATION ESCROW ACCOUNT.

       Subtitle E of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3841 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 1248. CONSERVATION ESCROW ACCOUNT.

       ``(a) Establishment.--The Secretary shall establish a 
     conservation escrow account.
       ``(b) Deposits Into Accounts.--Any program loans, payments, 
     or benefits forfeited by, or fines collected from, producers 
     under section 1211 or 1221 shall be placed in the 
     conservation escrow account.
       ``(c) Use of Funds.--Funds in the conservation escrow 
     account shall be used to provide technical and financial 
     assistance to individuals to implement natural resource 
     conservation practices.
       ``(d) Geographic Distribution.--The Secretary shall use 
     funds in the conservation escrow account for local areas in 
     proportion to the amount of funds forfeited by or collected 
     from producers in the local area.
       ``(e) Compliance Assistance.--To assist the producer in 
     complying with the applicable section referred to in 
     subsection (b) not later than 1 year after a determination of 
     noncompliance, a producer shall be eligible to receive 
     compliance assistance of up to 66 percent of any loan, 
     payment, benefit forfeited, or fines placed in the 
     conservation escrow account.''.
                                 ______


                       KERREY AMENDMENT NO. 3335

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

       On page 3-6, between lines 11 and 12, insert the following:
       (c) Repayment of Cost Sharing and Other Payments.--Section 
     1235(d)(1) of the Food Security Act of 1985 (16 U.S.C. 
     3835(d)(1)) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(C) in the case of a contract with respect to which 5 
     years or less of the contract term have elapsed, the owner or 
     operator agrees to repay all cost sharing, rental, and other 
     payments made by the Secretary under the contract and section 
     1234 and
       ``(D) in the case of a contract with respect to which more 
     than 5 years but less than 8 years of the contract term have 
     elapsed, the owner or operator agrees to repay all cost 
     sharing payments made by the Secretary under the contract and 
     section 1234(b).''.
                                 ______


                    HEFLIN AMENDMENTS NO. 3336-3345

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

                           Amendment No. 3336

       On page 1-66, after line 24, add the following:
       (6) Transfers of farm poundage quotas.--Section 358b(a) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1353b(a)) 
     is amended by adding at the end the following:
       ``(4) Transfers between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), in 
     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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.''.
                                                                    ____


                           Amendment No. 3337

       On page 1-27, strike lines 10 through 20 and insert the 
     following:
       (c) Term of Loan.--
       (1) In general.--Except as provided in paragraph (2)--
       (A) in the case of each loan commodity, 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; and
       (B) the Secretary may not extend the term of a marketing 
     assistance loan for any loan commodity.
       (2) Cotton.--
       (A) In general.--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.
       (B) Extension of loan period.--
       (i) In general.--Except as provided in clause (ii), a 
     marketing assistance loan for upland cotton or extra long 
     staple cotton shall, on request of the producer during the 
     10th month of the loan period for the cotton, be made 
     available for an additional term of 8 months.
       (ii) 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 exceeded 130 percent of the average price of the base 
     quality of upland cotton in the designated United States spot 
     markets for the preceding 36-month period.
                                                                    ____


                           Amendment No. 3338

       Strike section 106 and insert the following:

     SEC. 106. PEANUT PROGRAM.

       (a) Marketing Quotas.--
       (1) National poundage quotas and acreage allotments.--
       (A) In general.--The section heading of section 358-1 of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is 
     amended by striking ``1991 THROUGH 1997 CROPS OF''.
       (B) National poundage quotas.--
       (i) Establishment.--Section 358-1(a)(1) of the Act is 
     amended--

       (I) in the first sentence--

       (aa) by striking ``of the 1991 through 1997 marketing 
     years'' and inserting ``marketing year'';
       (bb) by striking ``, seed,''; and
       (cc) by striking the period at the end and inserting ``, 
     excluding seed. In making estimates under this paragraph for 
     a marketing year, the Secretary shall annually estimate and 
     take into account the quantity of peanuts and peanut products 
     to be imported into the United States for the marketing 
     year.''; and
     
[[Page S925]]


       (II) by striking the second sentence.

       (ii) Apportionment.--Section 358-1(a)(3) of the Act is 
     amended by striking ``1990'' and inserting ``1995''.
       (C) Farm poundage quota.--
       (i) Establishment.--Section 358-1(b)(1)(A) of the Act is 
     amended--

       (I) by striking ``of the 1991 through 1997 marketing 
     years'' and inserting ``marketing year''; and
       (II) in clause (i), by striking ``1990'' and inserting 
     ``1995''.

       (ii) Quantity.--Section 358-1(b)(1)(B) of the Act is 
     amended--

       (I) by striking ``of the 1991 through 1997 marketing 
     years'' and inserting ``marketing year''; and
       (II) by striking ``including--'' and all that follows 
     through ``(ii) any'' and inserting ``including any''.

       (iii) Adjustments.--Section 358-1(b)(2) of the Act is 
     amended--

       (I) in subparagraph (A)--

       (aa) by striking ``(B) and subject to subparagraph (D)'' 
     and inserting ``(C)''; and
       (bb) by striking ``of the 1991 through 1997 marketing 
     years'' and inserting ``marketing year'';

       (II) by striking subparagraph (B);
       (III) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively; and
       (IV) in subparagraph (B) (as so redesignated), by striking 
     ``of the 1991 through 1997 marketing years'' and inserting 
     ``marketing year''.

       (iv) Quota not produced.--Section 358-1(b)(3) of the Act is 
     amended--

       (I) in subparagraph (A), by striking ``of the 1991 through 
     1997 marketing years'' and inserting ``marketing year''; and
       (II) in subparagraph (B), by striking ``include--'' and all 
     that follows through ``(ii) any'' and inserting ``include 
     any''.

       (v) Quota considered produced.--Section 358-1(b)(4) of the 
     Act is amended--

       (I) in subparagraph (A), by inserting ``or'' after the 
     semicolon at the end; and
       (II) by striking subparagraphs (B) and (C) and inserting 
     the following:

       ``(B) the farm poundage quota for the farm was--
       ``(i) released voluntarily under paragraph (7); or
       ``(ii) 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.''.
       (vi) Allocation of quotas reduced or released.--Section 
     358-1(b)(6) of the Act is amended--

       (I) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C), the total quantity of the'' and inserting 
     ``subparagraph (B),'';
       (II) in subparagraph (B)--

       (aa) by striking ``Not more than 25 percent of the'' and 
     inserting ``The''; and
       (bb) by adding at the end the following: ``Any farm quota 
     pounds remaining after allocation to farms under this 
     subparagraph shall be allocated under subparagraph (A).''; 
     and

       (III) by striking subparagraph (C).

       (vii) Temporary quota allocation for seed.--Section 358-
     1(b) of the Act is amended by striking paragraph (8) and 
     inserting the following:
       ``(8) Temporary quota allocation for seed.--For each 
     marketing year and pursuant to regulation, the Secretary 
     shall make a temporary allocation of poundage quota, for that 
     marketing year only, to each producer of peanuts on a farm, 
     in addition to any farm poundage quota established under 
     paragraph (1), in a quantity equal to the pounds of seed 
     peanuts planted by the producer on the farm.''.
       (viii) Transfer of additional peanuts.--Section 358-1(b) of 
     the Act is amended by striking paragraph (9) and inserting 
     the following:
       ``(9) Transfer of additional peanuts.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     additional peanuts on a farm from which the quota poundage 
     was not harvested and marketed may be transferred to the 
     quota loan pool for pricing purposes on such basis as the 
     Secretary shall provide by regulation.
       ``(B) Limitations.--The poundage of peanuts transferred 
     under subparagraph (A) shall not exceed 25 percent of the 
     total farm poundage quota, excluding pounds transferred in 
     the fall.
       ``(C) Support rate.--Peanuts transferred under this 
     paragraph shall be supported at a rate of not less than 70 
     percent of the quota support rate for the marketing years 
     during which the transfers occur.''.
       (D) Crops.--Section 358-1(f) of the Act is amended by 
     striking ``1991 through 1997'' and inserting ``1996 through 
     2002''.
       (2) Sale, lease, or transfer of farm poundage quota.--
       (A) In general.--The section heading of section 358b of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b) is 
     amended by striking ``1991 THROUGH 1995 CROPS OF''.
       (B) Sale, lease, or transfer of farm poundage quota.--
     Section 358b(a) of the Act is amended--
       (i) by striking ``(including any applicable under 
     marketings)'' each place it appears;
       (ii) in paragraph (1)--

       (I) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively;
       (II) by inserting before subparagraph (B) (as so 
     redesignated) the following:

       ``(A) with the owner or operator of another farm located 
     within the same county or located in a different county 
     within the same State;'';

       (III) in subparagraph (B) (as so redesignated), by striking 
     ``undermarketings and''; and
       (IV) by adding at the end the following: ``Fall transfers 
     of quota pounds shall not affect the farm quota history for 
     the transferring or receiving farm and shall not result in a 
     reduction of the farm poundage quota on the transferring 
     farm.'';

       (iii) in paragraph (2)--

       (I) in the first sentence--

       (aa) by striking ``county or in a county contiguous to the 
     county in the same''; and
       (bb) by inserting before the period at the end the 
     following: ``, if both the transferring and the 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 transferred''; and

       (II) in the second sentence, by striking ``the transferred 
     quota is produced or considered produced on the receiving 
     farm'' and inserting ``sufficient acreage is planted on the 
     receiving farm to produce the quota pounds transferred''; and

       (iv) by adding at the end the following:
       ``(4) Transfers by sale in states with large quotas.--
       ``(A) In general.--In the case of a State for which the 
     poundage quota allocated to the State was 10,000 tons or 
     greater for the previous year, the owner, or operator with 
     permission of the owner, of a farm located in the State for 
     which a farm poundage quota has been established under 
     section 358-1 may sell all or any part of the farm poundage 
     quota to any other eligible owner or operator of a farm 
     within the same State.
       ``(B) Limitations.--
       ``(i) 1996.--During calendar year 1996, not more than 15 
     percent of the total poundage quota within a county as of 
     January 1, 1996, may be sold and transferred outside the 
     county under this paragraph.
       ``(ii) Subsequent years.--During calendar year 1997 and 
     each subsequent calendar year, not more than 5 percent of the 
     total poundage quota within a county as of January 1 of the 
     calendar year may be sold and transferred outside the county 
     under this paragraph.
       ``(iii) Aggregate limit.--Not more than an aggregate of 30 
     percent of the total poundage quota within a county may be 
     sold and transferred outside the county under this paragraph.
       ``(C) Subsequent lease or sale.--Quota poundage sold and 
     transferred under this paragraph may not be leased or sold to 
     another farm owner or operator within the same State for a 
     period of 5 years following the original transfer to the 
     farm.''.
       (C) Record.--Section 358b(b)(3) of the Act is amended by 
     striking ``committee of the county to which the transfer is 
     made and the committee determines'' and inserting 
     ``committees of the counties from and to which the transfer 
     is made and the committees determine''.
       (D) Crops.--Section 358b(c) of the Act is amended by 
     striking ``1991 through 1995'' and inserting ``1996 through 
     2002''.
       (3) Experimental and research programs.--Section 358c(d) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358c(d)) 
     is amended by striking ``1991 through 1995'' and inserting 
     ``1996 through 2002''.
       (4) Marketing penalties.--Section 358e of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359a) is amended--
       (A) in the section heading, by striking ``1991 THROUGH 1997 
     CROPS OF'';
       (B) in subsection (d)(6)(A), by inserting after ``If any 
     additional peanuts'' the following: ``or peanut products made 
     from additional peanuts''; and
       (C) in subsection (i), by striking ``1991 through 1997'' 
     and inserting ``1996 through 2002''.
       (b) Price Support Program for Peanuts.--
       (1) Quota peanuts.--
       (A) In general.--The Secretary shall make price support 
     available to producers through loans, purchases, and other 
     operations on quota peanuts.
       (B) Support rates.--The national average quota support rate 
     for each crop of quota peanuts shall be the national average 
     quota support rate for the immediately preceding crop, 
     adjusted to reflect any increase, 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 paragraph (7), except that 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.
       (C) Inspection, handling, or storage.--The levels of 
     support so announced shall not be reduced by any deductions 
     for inspection, handling, or storage.
       (D) Location and other factors.--The Secretary may make 
     adjustments for location of peanuts and such other factors as 
     are authorized by section 411 of the Agricultural Adjustment 
     Act of 1938.
       (E) Announcement.--The Secretary shall announce the level 
     of support for quota peanuts of each crop not later than 
     February 15 preceding the marketing year for the crop for 
     which the level of support is being determined.
     
[[Page S926]]

       (2) Additional peanuts.--
       (A) In general.--The Secretary shall make price support 
     available to producers through loans, purchases, or other 
     operations on additional peanuts at such levels 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, 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.
       (B) Announcement.--The Secretary shall announce the level 
     of support for additional peanuts of each crop not later than 
     February 15 preceding the marketing year for the crop for 
     which the level of support is being determined.
       (3) Area marketing associations.--
       (A) Warehouse storage loans.--
       (i) In general.--In carrying out subsections (a) and (b), 
     the Secretary shall make warehouse storage loans available in 
     each of the three 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.
       (ii) 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 section 358e of 
     the Agricultural Adjustment Act of 1938.
       (iii) Association costs.--Loans made to the association 
     under this paragraph shall include, in addition to the price 
     support value of the peanuts, such costs as the area 
     marketing association reasonably may incur in carrying out 
     its responsibilities, operations, and activities under this 
     section and section 358e of the Agricultural Adjustment Act 
     of 1938.
       (B) Pools for quota and additional peanuts.--
       (i) 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 
     physically produced outside the State of New Mexico shall not 
     be eligible for entry into or participation in the New Mexico 
     pools. Bright hull and dark hull Valencia peanuts shall be 
     considered as separate types for the purpose of establishing 
     the pools.
       (ii) 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 subclause (I).

       (4) Losses.--
       (A) Other producers in same pool.--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 attributable to the same 
     producer from the sale of additional peanuts for domestic and 
     edible use or export.
       (B) Quota peanuts placed under loan.--Net gains on 
     additional peanuts within an area (other than net gains on 
     additional peanuts in separate type pools established under 
     paragraph (3)(B)(i) 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 in the area, in such manner as the Secretary shall 
     by regulation prescribe.
       (C) Quota loan pools.--
       (i) 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)(9) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(9)).
       (ii) Use of marketing assessments.--The Secretary shall use 
     funds collected under paragraph (7) to offset further losses 
     in area quota pools. At the end of each year, the Secretary 
     shall transfer to the Treasury the funds collected under 
     paragraph (7) that the Secretary determines are not required 
     to cover losses in area quota pools.
       (iii) 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)(9) of the Agricultural Adjustment Act of 1938, shall 
     be offset by any gains or profits from pools in other 
     production areas (other than separate type pools established 
     under paragraph (3)(B)(i) for Valencia peanuts produced in 
     New Mexico) in such manner as the Secretary shall by 
     regulation prescribe.
       (iv) Increased assessments.--If actions taken under clauses 
     (i) through (iii) are not sufficient to cover losses in area 
     pools, the Secretary shall increase the marketing assessment 
     established under paragraph (7) by such amount as the 
     Secretary considers necessary to cover the losses. Amounts 
     collected under paragraph (7) as a result of the increased 
     assessment shall be retained by the Secretary to cover losses 
     in the pool.
       (5) 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.
       (6) Quality improvement.--
       (A) Price support peanuts.--With respect to peanuts under 
     price support loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts of a lesser risk of 
     deterioration;
       (ii) ensure that all Commodity Credit Corporation loan 
     stocks of peanuts sold for domestic edible use must be shown 
     to have been officially inspected by licensed Department of 
     Agriculture inspectors both as farmer stock and shelled or 
     cleaned in-shell peanuts;
       (iii) 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 Marketing Agreement 
     Act of 1937 (7 U.S.C. 601 et seq.)); and
       (iv) 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 shall be reflected 
     as an upward adjustment in the Department of Agriculture loan 
     schedule.
       (B) Exports and other peanuts.--
       (i) In general.--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, 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 that 
     importers of the peanuts fully comply with inspection, 
     handling, storage, and processing requirements implemented 
     under Marketing Agreement No. 146.
       (ii) Exported peanuts.--The Secretary shall ensure that 
     peanuts produced for the export market meet quality, 
     inspection, handling, storage, and processing requirements 
     under Marketing Agreement No. 146.
       (7) Marketing assessment.--
       (A) In general.--The Secretary shall provide, by 
     regulation, for a nonrefundable marketing assessment equal to 
     1.2 percent of the national average quota or additional 
     peanut support rate per pound, as applicable, on all peanuts 
     sold in the United States during each of the 1996 through 
     2002 marketing years.
       (B) Treatment of imported peanuts.--For the purposes of 
     determining the applicable assessment rate under this 
     section, imported peanuts shall be treated as additional 
     peanuts.
       (C) First purchasers.--
       (i) Definition of first purchaser.--In this clause, the 
     term `first purchaser' means a person acquiring peanuts from 
     a producer, or a person that imports peanuts, 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.
       (ii) Administration.--Except as provided in clause (iii) 
     and subparagraphs (D) and (E), the first purchaser shall--

       (I) collect from the producer a marketing assessment equal 
     to the quantity of peanuts acquired multiplied by .6 percent 
     of the applicable national average support rate;
       (II) pay, in addition to the amount collected under 
     subclause (I), a marketing assessment in an amount equal to 
     the quantity of peanuts acquired multiplied by .6 percent of 
     the applicable national average support rate; and
       (III) remit the amounts required under subclauses (I) and 
     (II) to the Commodity Credit Corporation in a manner 
     specified by the Secretary.

       (iii) Imported peanuts.--In the case of imported peanuts, 
     the first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (D) Other private marketings.--In the case of a private 
     marketing by a producer directly to a consumer through a 
     retail or 

[[Page S927]]
     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.
       (E) 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 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.
       (F) 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--
       (i) the quantity of peanuts involved in the violation; by
       (ii) the national average quota peanut price support level 
     for the applicable crop year.
       (G) Enforcement.--The Secretary may enforce this subsection 
     in the courts of the United States.
       (H) Use of funds.--Funds collected under this subsection 
     shall be used by the Secretary to offset the costs of 
     operating the peanut price support program.
       (8) Crops.--Except as provided in paragraph (7) and 
     notwithstanding any other provision of law, this section 
     shall be effective only for the 1996 through 2002 crops of 
     peanuts.
       (c) Administrative Provisions.--
       (1) 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,''.
       (2) Suspension of permanent program.--Section 371 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1371) shall not 
     be applicable to the 1996 through 2002 crops of peanuts.
       (3) Administration.--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--
       (A) in the first sentence, by striking ``30 per centum'' 
     and inserting ``30 percent (or, in the case of duties 
     collected with respect to an import that is subject to a 
     tariff-rate quota, 100 percent)''; and
       (B) in the second sentence--
       (i) by striking ``and (3)'' and inserting ``(3)''; and
       (ii) by inserting before the period at the end the 
     following: ``; and (4) offset the costs of operating a 
     program to provide price support for domestically produced 
     peanuts''.
       (d) Peanut Standards.--
       (1) Inspection; quality assurance.--
       (A) Initial entry.--The Secretary of Agriculture (referred 
     to in this title as the ``Secretary'') shall require all 
     peanuts and peanut products sold in the United States to be 
     initially placed in a bonded, licensed warehouse approved by 
     the Secretary for the purpose of inspection and grading by 
     the Secretary, the Commissioner of the Food and Drug 
     Administration, and the heads of other appropriate agencies 
     of the United States.
       (B) Preliminary inspection.--Peanuts and peanut products 
     shall be held in the warehouse until inspected by the 
     Secretary, the Commissioner of the Food and Drug 
     Administration, or the head of another appropriate agency of 
     the United States, for chemical residues, general 
     cleanliness, disease, size, aflatoxin, stripe virus, and 
     other harmful conditions, and an assurance of compliance with 
     all grade and quality standards specified 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).
       (C) Separation of lots.--All imported peanuts shall be 
     maintained separately from, and shall not be commingled with, 
     domestically produced peanuts in the warehouse.
       (D) Origin of peanut products.--
       (i) Labeling.--A peanut product shall be labeled with a 
     label that indicates the origin of the peanuts contained in 
     the product.
       (ii) Source.--No peanut product may contain both imported 
     and domestically produced peanuts.
       (iii) Imported peanut products.--The first seller of an 
     imported peanut product shall certify that the product is 
     made from raw peanuts that meet the same quality and grade 
     standards that apply to domestically produced peanuts.
       (E) Documentation.--No peanuts or peanut products may be 
     transferred, shipped, or otherwise released from a warehouse 
     described in subparagraph (A) unless accompanied by a United 
     States Government inspection certificate that certifies 
     compliance with this section.
       (2) Handling and storage.--
       (A) Temperature and humidity.--The Secretary shall require 
     all shelled peanuts sold in the United States to be 
     maintained at a temperature of not more than 37 degrees 
     Fahrenheit and a humidity range of 60 to 68 percent at all 
     times during handling and storage prior to sale and shipment.
       (B) Containers.--The peanuts shall be shipped in a 
     container that provides the maximum practicable protection 
     against moisture and insect infestation.
       (C) In-shell peanuts.--The Secretary shall require that all 
     in-shell peanuts be reduced to a moisture level not exceeding 
     10 percent immediately on being harvested and be stored in a 
     facility that will ensure quality maintenance and will 
     provide proper ventilation at all times prior to sale and 
     shipment.
       (3) Labeling.--The Secretary shall require that all peanuts 
     and peanut products sold in the United States contain 
     labeling that lists the country or countries in which the 
     peanuts, including all peanuts used to manufacture the peanut 
     products, were produced.
       (4) Inspection and testing.--
       (A) In general.--All peanuts and peanut products sold in 
     the United States shall be inspected and tested for grade and 
     quality.
       (B) Certification.--All peanuts or peanut products offered 
     for sale in, or imported into, the United States shall be 
     accompanied by a certification by the first seller or 
     importer that the peanuts or peanut products do not contain 
     residues of any pesticide not approved for use in, or 
     importation into, the United States.
       (5) Nutritional labeling.--The Secretary shall require all 
     peanuts and peanut products sold in the United States to 
     contain complete nutritional labeling information as required 
     under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 
     et seq.).
       (6) Peanut content.--
       (A) Offset against hts quantity.--The actual quantity of 
     peanuts, by weight, used to manufacture, and ultimately 
     contained in, peanut products imported into the United States 
     shall be accounted for and offset against the total quantity 
     of peanut imports allowed under the in-quota quantity of the 
     tariff-rate quota established for peanuts under the 
     Harmonized Tariff Schedule of the United States.
       (B) Verification.--The Secretary shall establish standards 
     and procedures for the purpose of verifying the actual peanut 
     content of peanut products imported into the United States.
       (7) Plant diseases.--The Secretary, in consultation with 
     the heads of other appropriate agencies of the United States, 
     shall ensure that all peanuts in the domestic edible market 
     are inspected and tested to ensure that they are free of all 
     plant diseases.
       (8) Administration.--
       (A) Fees.--The Secretary shall by regulation fix and 
     collect fees and charges to cover the costs of any inspection 
     or testing performed under this title.
       (B) Certification.--
       (i) In general.--The Secretary may require the first seller 
     of peanuts sold in the United States to certify that the 
     peanuts comply with this title.
       (ii) Fraud and false statements.--Section 1001 of title 18, 
     United States Code, shall apply to a certification made under 
     this title.
       (C) Standards and procedures.--In consultation with the 
     heads of other appropriate agencies of the United States, the 
     Secretary shall establish standards and procedures to provide 
     for the enforcement of, and ensure compliance with, this 
     title.
       (D) Failure to meet standards.--Peanuts or peanut products 
     that fail to meet standards established under this title 
     shall be returned to the seller and exported or crushed 
     pursuant to section 358e(d) of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359a(d)).
       (9) Change of venue.--In any case in which an area pool or 
     a marketing association brings, joins, or seeks to join a 
     civil action in a United States district court to enforce 
     this title, the district court may not transfer the action to 
     any other district or division over the objection of the pool 
     or marketing association.
                                                                    ____


                           Amendment No. 3339

       Strike the section relating to the peanut program and 
     insert the following:

     SEC. 106. PEANUT PROGRAM.

       (a) Price Support Program.--
       (1) Quota peanuts.--
       (A) 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.
       (B) Support rates.--
       (i) In general.--Subject to clause (ii), 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 paragraph (7).
       (ii) 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.
       (C) Inspection, handling, or storage.--The level of support 
     determined under subparagraph (B) shall not be reduced by any 
     deduction for inspection, handling, or storage.
       (D) Location and other factors.--The Secretary may make 
     adjustments for location of peanuts and such other factors as 
     are authorized by section 104(i). 
     
[[Page S928]]

       (E) 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.
       (2) Additional peanuts.--
       (A) 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.
       (B) 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.
       (3) Area marketing associations.--
       (A) Warehouse storage loans.--
       (i) In general.--In carrying out paragraphs (1) and (2), 
     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 subsection and 
     sections 358e of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359a).
       (ii) 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 subsection and sections 358e 
     of the Agricultural Adjustment Act of 1938.
       (iii) Association costs.--Loans made to an area marketing 
     association under this subparagraph 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 subsection and sections 358e of the 
     Agricultural Adjustment Act of 1938.
       (B) Pools for quota and additional peanuts.--
       (i) 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.
       (ii) 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 subclause (I).

       (4) Losses.--Notwithstanding any other provision of this 
     subsection:
       (A) 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 
     paragraph (3)(B)(i) 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.
       (B) Quota loan pools.--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.
       (5) 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 (as amended by subsection (c)).
       (6) Quality improvement.--
       (A) Price support peanuts.--With respect to peanuts under 
     price support loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts at a lesser risk of 
     deterioration;
       (ii) 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;
       (iii) 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
       (iv) ensure that any changes made in the price support 
     program as a result of this paragraph requiring additional 
     production or handling at the farm level are reflected as an 
     upward adjustment in the Department of Agriculture loan 
     schedule.
       (B) 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.
       (7) Marketing assessment.--
       (A) 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 
     paragraph 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 
     paragraph.
       (B) First purchasers.--
       (i) In general.--Except as provided under subparagraphs (C) 
     and (D), 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 
     subclause (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 subclauses (I) and 
     (II) to the Commodity Credit Corporation in a manner 
     specified by the Secretary.

       (ii) Definition.--In this paragraph, 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.
       (C) 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.
       (D) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a price support loan made under this 
     subsection, \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 
     subsection, the reduction in loan proceeds shall be treated 
     as having been paid to the producer.
       (E) Penalties.--If any person fails to collect or remit the 
     reduction required by this paragraph or fails to comply with 
     such requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this paragraph, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (i) the quantity of peanuts involved in the violation; by
       (ii) the national average quota peanut price support level 
     for the applicable crop year.
       (F) Enforcement.--The Secretary may enforce this paragraph 
     in the courts of the United States.
       (8) Crops.--Notwithstanding any other provision of law, 
     this subsection shall be effective only for the 1996 through 
     2002 crops of peanuts.
       (b) Suspension of Marketing Quotas and Acreage 
     Allotments.--Section 371 of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1371) shall not be applicable to the 1996 
     through 2002 crops of peanuts.
       (c) 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 

[[Page S929]]
     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 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 
     106(a)(3)(A) of the Agricultural Market Transition Act; 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 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.--
     
[[Page S930]]

       ``(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 the Agricultural 
     Market Transition Act:
       ``(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 301(b)(18), 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.''.
       (d) 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 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 

[[Page S931]]
     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.''.
       (e) 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 106 of the Agricultural 
     Market Transition Act and not redeemed by the producers;
       ``(ii) marketed through an area marketing association 
     designated pursuant to section 106(a)(3)(A) of the 
     Agricultural Market Transition Act; 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 301(b)(18), 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 106(a)(3)(A) of the Agricultural Market Transition 
     Act.
       ``(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 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 

[[Page S932]]
     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 104(k) of the 
     Agricultural Market Transition Act, 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 
     106(a)(3)(A) of the Agricultural Market Transition Act 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 paragraphs (1)(B) and (2)(A) of 
     section 106(a) of the Agricultural Market Transition Act, 
     include any additional marketing expenses required by law, 
     excluding the amount of any assessment required under section 
     106(a)(7) of the Agricultural Market Transition Act.
       ``(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.
       ``(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.''.
       (f) 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 

[[Page S933]]
     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.''.
       (g) 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,''.
       (h) Regulations.--The Secretary of Agriculture shall issue 
     such regulations as are necessary to carry out this section 
     and the amendments made by this section. 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.
                                                                    ____


                           Amendment No. 3340

       Strike the section relating to the peanut program and 
     insert the following:

     SEC. 106. PEANUT PROGRAM.

       (a) Price Support Program.--
       (1) Quota peanuts.--
       (A) 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.
       (B) Support rates.--
       (i) In general.--Subject to clause (ii), 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 paragraph (7).
       (ii) 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.
       (C) Inspection, handling, or storage.--The level of support 
     determined under subparagraph (B) shall not be reduced by any 
     deduction for inspection, handling, or storage.
       (D) Location and other factors.--The Secretary may make 
     adjustments for location of peanuts and such other factors as 
     are authorized by section 104(i).
       (E) 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.
       (2) Additional peanuts.--
       (A) 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.
       (B) 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.
       (3) Area marketing associations.--
       (A) Warehouse storage loans.--
       (i) In general.--In carrying out paragraphs (1) and (2), 
     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 subsection and 
     sections 358e of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359a).
       (ii) 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 subsection and sections 358e 
     of the Agricultural Adjustment Act of 1938.
       (iii) Association costs.--Loans made to an area marketing 
     association under this subparagraph 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 subsection and sections 358e of the 
     Agricultural Adjustment Act of 1938.
       (B) Pools for quota and additional peanuts.--
       (i) 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.
       (ii) 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 subclause (I).

       (4) Losses.--Losses in quota area pools shall be covered 
     using the following sources in the following order of 
     priority:
       (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 section 358-1(b)(2)(B)(v) of the Agricultural 
     Adjustment Act of 1938 (as amended by subsection (c)).
       (B) 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.
       (C) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (D) Use of marketing assessments.--The Secretary shall use 
     funds collected under paragraph (7) to offset further losses 
     in area quota pools. The Secretary shall transfer to the 
     Treasury those funds collected under paragraph (7) and 
     available for use under this subsection that the Secretary 
     determines are not required to cover losses in area quota 
     pools.
       (E) 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)(2)(B)(v) of the Agricultural Adjustment Act of 1938 (as 
     amended by subsection (c)), shall be offset by any gains or 
     profits from pools in other production areas (other than 
     separate type pools established under paragraph (3)(B)(i) for 
     Valencia peanuts produced in New Mexico) in such manner as 
     the Secretary shall by regulation prescribe.
       (F) 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 paragraph 
     (7) by such an amount as the Secretary considers necessary to 
     cover the losses. Amounts collected under paragraph (7) as a 
     result of the increased assessment shall be retained by the 
     Secretary to cover losses in that pool.
       (5) 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 (as amended by subsection (c)).
       (6) Quality improvement.--
       (A) Price support peanuts.--With respect to peanuts under 
     price support loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts at a lesser risk of 
     deterioration;
     
[[Page S934]]

       (ii) 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;
       (iii) 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
       (iv) ensure that any changes made in the price support 
     program as a result of this paragraph requiring additional 
     production or handling at the farm level are reflected as an 
     upward adjustment in the Department of Agriculture loan 
     schedule.
       (B) 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.
       (7) Marketing assessment.--
       (A) 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 
     paragraph 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 
     paragraph.
       (B) First purchasers.--
       (i) In general.--Except as provided under subparagraphs (C) 
     and (D), 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 
     subclause (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 subclauses (I) and 
     (II) to the Commodity Credit Corporation in a manner 
     specified by the Secretary.

       (ii) Imported peanuts.--In the case of imported peanuts, 
     the first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (iii) Definition.--In this paragraph, 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.
       (C) 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.
       (D) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a price support loan made under this 
     subsection, \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 
     subsection, the reduction in loan proceeds shall be treated 
     as having been paid to the producer.
       (E) Penalties.--If any person fails to collect or remit the 
     reduction required by this paragraph or fails to comply with 
     such requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this paragraph, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (i) the quantity of peanuts involved in the violation; by
       (ii) the national average quota peanut price support level 
     for the applicable crop year.
       (F) Enforcement.--The Secretary may enforce this paragraph 
     in the courts of the United States.
       (8) Crops.--Notwithstanding any other provision of law, 
     this subsection shall be effective only for the 1996 through 
     2002 crops of peanuts.
       (b) Suspension of Marketing Quotas and Acreage 
     Allotments.--Section 371 of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1371) shall not be applicable to the 1996 
     through 2002 crops of peanuts.
       (c) 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 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 
     106(a)(3)(A) of the Agricultural Market Transition Act; or
       ``(III) other increased costs.

       ``(v) Transfer of additional peanuts.--

       ``(I) In general.--Except as provided in subclause (II), 
     additional peanuts on a farm 

[[Page S935]]
     from which the quota poundage was not harvested and marketed may be 
     transferred to the quota loan pool for pricing purposes on 
     such basis as the Secretary shall provide by regulation.
       ``(II) Limitations.--The poundage of peanuts transferred 
     under subclause (I) shall not exceed 25 percent of the total 
     farm poundage quota, excluding pounds transferred in the 
     fall.
       ``(III) Support rate.--Peanuts transferred under this 
     clause shall be supported at a rate of 70 percent of the 
     quota support rate for the marketing years during which the 
     transfers occur.

       ``(vi) Use of quota and additional peanuts.--Nothing in 
     this subparagraph affects the requirements of section 
     358b(b).
       ``(vii) 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 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 the Agricultural 
     Market Transition Act:
       ``(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 301(b)(18), 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 

[[Page S936]]
     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.''.
       (d) 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 the receiving farm 
     to produce the quota pounds transferred.
       ``(3) Transfers within 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 between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), 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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.
       ``(5) 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.''.
       (e) 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 106 of the Agricultural 
     Market Transition Act and not redeemed by the producers;
       ``(ii) marketed through an area marketing association 
     designated pursuant to section 106(a)(3)(A) of the 
     Agricultural Market Transition Act; 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 

[[Page S937]]
     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 301(b)(18), 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 106(a)(3)(A) of the Agricultural Market Transition 
     Act.
       ``(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 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 

[[Page S938]]
     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 104(k) of the 
     Agricultural Market Transition Act, 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 
     106(a)(3)(A) of the Agricultural Market Transition Act 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 paragraphs (1)(B) and (2)(A) of 
     section 106(a) of the Agricultural Market Transition Act, 
     include any additional marketing expenses required by law, 
     excluding the amount of any assessment required under section 
     106(a)(7) of the Agricultural Market Transition Act.
       ``(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.
       ``(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.''.
       (f) 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.''.
       (g) 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,''.
       (h) Regulations.--The Secretary of Agriculture shall issue 
     such regulations as are necessary to carry out this section 
     and the amendments made by this section. 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.
                                                                    ____


                           Amendment No. 3341

       Strike the section relating to the peanut program and 
     insert the following:

     SEC. 106. PEANUT PROGRAM.

       (a) Price Support Program.--
       (1) Quota peanuts.--
       (A) 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.
       (B) Support rates.--
       (i) In general.--Subject to clause (ii), 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 paragraph (7).
       (ii) 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.
       (C) Inspection, handling, or storage.--The level of support 
     determined under subparagraph (B) shall not be reduced by any 
     deduction for inspection, handling, or storage.
       (D) Location and other factors.--The Secretary may make 
     adjustments for location of peanuts and such other factors as 
     are authorized by section 104(i).
       (E) 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.
       (2) Additional peanuts.--
       (A) 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 

[[Page S939]]
     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.
       (B) 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.
       (3) Area marketing associations.--
       (A) Warehouse storage loans.--
       (i) In general.--In carrying out paragraphs (1) and (2), 
     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 subsection and 
     sections 358e of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359a).
       (ii) 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 subsection and sections 358e 
     of the Agricultural Adjustment Act of 1938.
       (iii) Association costs.--Loans made to an area marketing 
     association under this subparagraph 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 subsection and sections 358e of the 
     Agricultural Adjustment Act of 1938.
       (B) Pools for quota and additional peanuts.--
       (i) 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.
       (ii) 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 subclause (I).

       (4) Losses.--Losses in quota area pools shall be covered 
     using the following sources in the following order of 
     priority:
       (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 section 358-1(b)(2)(B)(v) of the Agricultural 
     Adjustment Act of 1938 (as amended by subsection (c)).
       (B) 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.
       (C) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (D) Use of marketing assessments.--The Secretary shall use 
     funds collected under paragraph (7) to offset further losses 
     in area quota pools. The Secretary shall transfer to the 
     Treasury those funds collected under paragraph (7) and 
     available for use under this subsection that the Secretary 
     determines are not required to cover losses in area quota 
     pools.
       (E) 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)(2)(B)(v) of the Agricultural Adjustment Act of 1938 (as 
     amended by subsection (c)), shall be offset by any gains or 
     profits from pools in other production areas (other than 
     separate type pools established under paragraph (3)(B)(i) for 
     Valencia peanuts produced in New Mexico) in such manner as 
     the Secretary shall by regulation prescribe.
       (F) 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 paragraph 
     (7) by such an amount as the Secretary considers necessary to 
     cover the losses. Amounts collected under paragraph (7) as a 
     result of the increased assessment shall be retained by the 
     Secretary to cover losses in that pool.
       (5) 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 (as amended by subsection (c)).
       (6) Quality improvement.--
       (A) Price support peanuts.--With respect to peanuts under 
     price support loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts at a lesser risk of 
     deterioration;
       (ii) 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;
       (iii) 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
       (iv) ensure that any changes made in the price support 
     program as a result of this paragraph requiring additional 
     production or handling at the farm level are reflected as an 
     upward adjustment in the Department of Agriculture loan 
     schedule.
       (B) 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.
       (7) Marketing assessment.--
       (A) 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 
     paragraph 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 
     paragraph.
       (B) First purchasers.--
       (i) In general.--Except as provided under subparagraphs (C) 
     and (D), 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 
     subclause (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 subclauses (I) and 
     (II) to the Commodity Credit Corporation in a manner 
     specified by the Secretary.

       (ii) Imported peanuts.--In the case of imported peanuts, 
     the first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (iii) Definition.--In this paragraph, 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.
       (C) 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.
       (D) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a price support loan made under this 
     subsection, \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 
     subsection, the reduction in loan proceeds shall be treated 
     as having been paid to the producer.
     
[[Page S940]]

       (E) Penalties.--If any person fails to collect or remit the 
     reduction required by this paragraph or fails to comply with 
     such requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this paragraph, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (i) the quantity of peanuts involved in the violation; by
       (ii) the national average quota peanut price support level 
     for the applicable crop year.
       (F) Enforcement.--The Secretary may enforce this paragraph 
     in the courts of the United States.
       (8) Crops.--Notwithstanding any other provision of law, 
     this subsection shall be effective only for the 1996 through 
     2002 crops of peanuts.
       (b) Suspension of Marketing Quotas and Acreage 
     Allotments.--Section 371 of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1371) shall not be applicable to the 1996 
     through 2002 crops of peanuts.
       (c) 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 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 
     106(a)(3)(A) of the Agricultural Market Transition Act; or
       ``(III) other increased costs.

       ``(v) Transfer of additional peanuts.--

       ``(I) In general.--Except as provided in subclause (II), 
     additional peanuts on a farm from which the quota poundage 
     was not harvested and marketed may be transferred to the 
     quota loan pool for pricing purposes on such basis as the 
     Secretary shall provide by regulation.
       ``(II) Limitations.--The poundage of peanuts transferred 
     under subclause (I) shall not exceed 25 percent of the total 
     farm poundage quota, excluding pounds transferred in the 
     fall.
       ``(III) Support rate.--Peanuts transferred under this 
     clause shall be supported at a rate of 70 percent of the 
     quota support rate for the marketing years during which the 
     transfers occur.

       ``(vi) Use of quota and additional peanuts.--Nothing in 
     this subparagraph affects the requirements of section 
     358b(b).
       ``(vii) 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 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.
     
[[Page S941]]

       ``(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 the Agricultural 
     Market Transition Act:
       ``(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 301(b)(18), 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.''.
       (d) 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 the receiving farm 
     to produce the quota pounds transferred.
       ``(3) Transfers within 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 between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), 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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.
     
[[Page S942]]

       ``(5) 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.''.
       (e) 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 106 of the Agricultural 
     Market Transition Act and not redeemed by the producers;
       ``(ii) marketed through an area marketing association 
     designated pursuant to section 106(a)(3)(A) of the 
     Agricultural Market Transition Act; 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 301(b)(18), 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 106(a)(3)(A) of the Agricultural Market Transition 
     Act.
       ``(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 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.
     
[[Page S943]]

       ``(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 104(k) of the 
     Agricultural Market Transition Act, 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 
     106(a)(3)(A) of the Agricultural Market Transition Act 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 paragraphs (1)(B) and (2)(A) of 
     section 106(a) of the Agricultural Market Transition Act, 
     include any additional marketing expenses required by law, 
     excluding the amount of any assessment required under section 
     106(a)(7) of the Agricultural Market Transition Act.
       ``(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.
       ``(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 

[[Page S944]]
     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.''.
       (f) Peanut Standards.--
       (1) Inspection; quality assurance.--
       (A) Initial entry.--The Secretary shall require all peanuts 
     and peanut products sold in the United States to be initially 
     placed in a bonded, licensed warehouse approved by the 
     Secretary for the purpose of inspection and grading by the 
     Secretary, the Commissioner of the Food and Drug 
     Administration, and the heads of other appropriate agencies 
     of the United States.
       (B) Preliminary inspection.--Peanuts and peanut products 
     shall be held in the warehouse until inspected by the 
     Secretary, the Commissioner of the Food and Drug 
     Administration, or the head of another appropriate agency of 
     the United States, for chemical residues, general 
     cleanliness, disease, size, aflatoxin, stripe virus, and 
     other harmful conditions, and an assurance of compliance with 
     all grade and quality standards specified 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).
       (C) Separation of lots.--All imported peanuts shall be 
     maintained separately from, and shall not be commingled with, 
     domestically produced peanuts in the warehouse.
       (D) Origin of peanut products.--
       (i) Labeling.--A peanut product shall be labeled with a 
     label that indicates the origin of the peanuts contained in 
     the product.
       (ii) Source.--No peanut product may contain both imported 
     and domestically produced peanuts.
       (iii) Imported peanut products.--The first seller of an 
     imported peanut product shall certify that the product is 
     made from raw peanuts that meet the same quality and grade 
     standards that apply to domestically produced peanuts.
       (E) Documentation.--No peanuts or peanut products may be 
     transferred, shipped, or otherwise released from a warehouse 
     described in subparagraph (A) unless accompanied by a United 
     States Government inspection certificate that certifies 
     compliance with this paragraph.
       (2) Handling and storage.--
       (A) Temperature and humidity.--The Secretary shall require 
     all shelled peanuts sold in the United States to be 
     maintained at a temperature of not more than 37 degrees 
     Fahrenheit and a humidity range of 60 to 68 percent at all 
     times during handling and storage prior to sale and shipment.
       (B) Containers.--The peanuts shall be shipped in a 
     container that provides the maximum practicable protection 
     against moisture and insect infestation.
       (C) In-shell peanuts.--The Secretary shall require that all 
     in-shell peanuts be reduced to a moisture level not exceeding 
     10 percent immediately on being harvested and be stored in a 
     facility that will ensure quality maintenance and will 
     provide proper ventilation at all times prior to sale and 
     shipment.
       (3) Labeling.--The Secretary shall require that all peanuts 
     and peanut products sold in the United States contain 
     labeling that lists the country or countries in which the 
     peanuts, including all peanuts used to manufacture the peanut 
     products, were produced.
       (4) Inspection and testing.--
       (A) In general.--All peanuts and peanut products sold in 
     the United States shall be inspected and tested for grade and 
     quality.
       (B) Certification.--All peanuts or peanut products offered 
     for sale in, or imported into, the United States shall be 
     accompanied by a certification by the first seller or 
     importer that the peanuts or peanut products do not contain 
     residues of any pesticide not approved for use in, or 
     importation into, the United States.
       (5) Nutritional labeling.--The Secretary shall require all 
     peanuts and peanut products sold in the United States to 
     contain complete nutritional labeling information as required 
     under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 
     et seq.).
       (6) Peanut content.--
       (A) Offset against hts quantity.--The actual quantity of 
     peanuts, by weight, used to manufacture, and ultimately 
     contained in, peanut products imported into the United States 
     shall be accounted for and offset against the total quantity 
     of peanut imports allowed under the in-quota quantity of the 
     tariff-rate quota established for peanuts under the 
     Harmonized Tariff Schedule of the United States.
       (B) Verification.--The Secretary shall establish standards 
     and procedures for the purpose of verifying the actual peanut 
     content of peanut products imported into the United States.
       (7) Plant diseases.--The Secretary, in consultation with 
     the heads of other appropriate agencies of the United States, 
     shall ensure that all peanuts in the domestic edible market 
     are inspected and tested to ensure that they are free of all 
     plant diseases.
       (8) Administration.--
       (A) Fees.--The Secretary shall by regulation fix and 
     collect fees and charges to cover the costs of any inspection 
     or testing performed under this subsection.
       (B) Certification.--
       (i) In general.--The Secretary may require the first seller 
     of peanuts sold in the United States to certify that the 
     peanuts comply with this subsection.
       (ii) Fraud and false statements.--Section 1001 of title 18, 
     United States Code, shall apply to a certification made under 
     this subsection.
       (C) Standards and procedures.--In consultation with the 
     heads of other appropriate agencies of the United States, the 
     Secretary shall establish standards and procedures to provide 
     for the enforcement of, and ensure compliance with, this 
     subsection.
       (D) Failure to meet standards.--Peanuts or peanut products 
     that fail to meet standards established under this subsection 
     shall be returned to the seller and exported or crushed 
     pursuant to section 358e(d) of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359a(d)).
       (9) Change of venue.--In any case in which an area pool or 
     a marketing association brings, joins, or seeks to join a 
     civil action in a United States district court to enforce 
     this subsection, the district court may not transfer the 
     action to any other district or division over the objection 
     of the pool or marketing association.
       (g) 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.''.
       (h) 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,''.
       (i) Regulations.--The Secretary of Agriculture shall issue 
     such regulations as are necessary to carry out this section 
     and the amendments made by this section. 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.
                                                                    ____

                                  
[[Page S945]]


                           Amendment No. 3342

       Strike the section relating to the peanut program and 
     insert the following:

     SEC. 106. PEANUT PROGRAM.

       (a) Price Support Program.--
       (1) Quota peanuts.--
       (A) 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.
       (B) Support rates.--
       (i) In general.--Subject to clause (ii), 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 paragraph (7).
       (ii) 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.
       (C) Inspection, handling, or storage.--The level of support 
     determined under subparagraph (B) shall not be reduced by any 
     deduction for inspection, handling, or storage.
       (D) Location and other factors.--The Secretary may make 
     adjustments for location of peanuts and such other factors as 
     are authorized by section 104(i).
       (E) 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.
       (2) Additional peanuts.--
       (A) 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.
       (B) 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.
       (3) Area marketing associations.--
       (A) Warehouse storage loans.--
       (i) In general.--In carrying out paragraphs (1) and (2), 
     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 subsection and 
     sections 358e of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1359a).
       (ii) 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 subsection and sections 358e 
     of the Agricultural Adjustment Act of 1938.
       (iii) Association costs.--Loans made to an area marketing 
     association under this subparagraph 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 subsection and sections 358e of the 
     Agricultural Adjustment Act of 1938.
       (B) Pools for quota and additional peanuts.--
       (i) 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.
       (ii) 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 subclause (I).

       (4) Losses.--Losses in quota area pools shall be covered 
     using the following sources in the following order of 
     priority:
       (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 section 358-1(b)(2)(B)(v) of the Agricultural 
     Adjustment Act of 1938 (as amended by subsection (c)).
       (B) 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.
       (C) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (D) Use of marketing assessments.--The Secretary shall use 
     funds collected under paragraph (7) to offset further losses 
     in area quota pools. The Secretary shall transfer to the 
     Treasury those funds collected under paragraph (7) and 
     available for use under this subsection that the Secretary 
     determines are not required to cover losses in area quota 
     pools.
       (E) 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)(2)(B)(v) of the Agricultural Adjustment Act of 1938 (as 
     amended by subsection (c)), shall be offset by any gains or 
     profits from pools in other production areas (other than 
     separate type pools established under paragraph (3)(B)(i) for 
     Valencia peanuts produced in New Mexico) in such manner as 
     the Secretary shall by regulation prescribe.
       (F) 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 paragraph 
     (7) by such an amount as the Secretary considers necessary to 
     cover the losses. Amounts collected under paragraph (7) as a 
     result of the increased assessment shall be retained by the 
     Secretary to cover losses in that pool.
       (5) 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 (as amended by subsection (c)).
       (6) Quality improvement.--
       (A) Price support peanuts.--With respect to peanuts under 
     price support loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts at a lesser risk of 
     deterioration;
       (ii) 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;
       (iii) 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
       (iv) ensure that any changes made in the price support 
     program as a result of this paragraph requiring additional 
     production or handling at the farm level are reflected as an 
     upward adjustment in the Department of Agriculture loan 
     schedule.
       (B) 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.
       (7) Marketing assessment.--
       (A) 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 
     paragraph 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 
     paragraph.
       (B) First purchasers.--
     
[[Page S946]]

       (i) In general.--Except as provided under subparagraphs (C) 
     and (D), 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 
     subclause (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 subclauses (I) and 
     (II) to the Commodity Credit Corporation in a manner 
     specified by the Secretary.

       (ii) Imported peanuts.--In the case of imported peanuts, 
     the first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (iii) Definition.--In this paragraph, 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.
       (C) 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.
       (D) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a price support loan made under this 
     subsection, \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 
     subsection, the reduction in loan proceeds shall be treated 
     as having been paid to the producer.
       (E) Penalties.--If any person fails to collect or remit the 
     reduction required by this paragraph or fails to comply with 
     such requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this paragraph, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (i) the quantity of peanuts involved in the violation; by
       (ii) the national average quota peanut price support level 
     for the applicable crop year.
       (F) Enforcement.--The Secretary may enforce this paragraph 
     in the courts of the United States.
       (8) Crops.--Notwithstanding any other provision of law, 
     this subsection shall be effective only for the 1996 through 
     2002 crops of peanuts.
       (b) Suspension of Marketing Quotas and Acreage 
     Allotments.--Section 371 of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1371) shall not be applicable to the 1996 
     through 2002 crops of peanuts.
       (c) 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 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 
     106(a)(3)(A) of the Agricultural Market Transition Act; or
       ``(III) other increased costs.

       ``(v) Transfer of additional peanuts.--

       ``(I) In general.--Except as provided in subclause (II), 
     additional peanuts on a farm from which the quota poundage 
     was not harvested and marketed may be transferred to the 
     quota loan pool for pricing purposes on such basis as the 
     Secretary shall provide by regulation.
       ``(II) Limitations.--The poundage of peanuts transferred 
     under subclause (I) shall not exceed 25 percent of the total 
     farm poundage quota, excluding pounds transferred in the 
     fall.
       ``(III) Support rate.--Peanuts transferred under this 
     clause shall be supported at a rate of 70 percent of the 
     quota support rate for the marketing years during which the 
     transfers occur.

       ``(vi) Use of quota and additional peanuts.--Nothing in 
     this subparagraph affects the requirements of section 
     358b(b).
       ``(vii) 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 

[[Page S947]]
     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 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 the Agricultural 
     Market Transition Act:
       ``(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 301(b)(18), 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.''.
       (d) 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 

[[Page S948]]
     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 the receiving farm 
     to produce the quota pounds transferred.
       ``(3) Transfers within 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 between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), 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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.
       ``(5) 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.''.
       (e) 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 106 of the Agricultural 
     Market Transition Act and not redeemed by the producers;
       ``(ii) marketed through an area marketing association 
     designated pursuant to section 106(a)(3)(A) of the 
     Agricultural Market Transition Act; 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 301(b)(18), 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 

[[Page S949]]
     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 106(a)(3)(A) of the Agricultural Market Transition 
     Act.
       ``(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 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 104(k) of the 
     Agricultural Market Transition Act, 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.
     
[[Page S950]]

       ``(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 
     106(a)(3)(A) of the Agricultural Market Transition Act 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 paragraphs (1)(B) and (2)(A) of 
     section 106(a) of the Agricultural Market Transition Act, 
     include any additional marketing expenses required by law, 
     excluding the amount of any assessment required under section 
     106(a)(7) of the Agricultural Market Transition Act.
       ``(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.
       ``(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.''.
       (f) Peanut Standards.--
       (1) Labeling.--The Secretary shall require that all peanuts 
     and peanut products sold in the United States contain 
     labeling that lists the country or countries in which the 
     peanuts, including all peanuts used to manufacture the peanut 
     products, were produced.
       (2) Inspection and testing.--
       (A) In general.--All peanuts and peanut products sold in 
     the United States shall be inspected and tested for grade and 
     quality.
       (B) Certification.--All peanuts or peanut products offered 
     for sale in, or imported into, the United States shall be 
     accompanied by a certification by the first seller or 
     importer that the peanuts or peanut products do not contain 
     residues of any pesticide not approved for use in, or 
     importation into, the United States.
       (3) Peanut content.--
       (A) Offset against hts quantity.--The actual quantity of 
     peanuts, by weight, used to manufacture, and ultimately 
     contained in, peanut products imported into the United States 
     shall be accounted for and offset against the total quantity 
     of peanut imports allowed under the in-quota quantity of the 
     tariff-rate quota established for peanuts under the 
     Harmonized Tariff Schedule of the United States.
       (B) Verification.--The Secretary shall establish standards 
     and procedures for the purpose of verifying the actual peanut 
     content of peanut products imported into the United States.
       (4) Change of venue.--In any case in which an area pool or 
     a marketing association brings, joins, or seeks to join a 
     civil action in a United States district court to enforce 
     this subsection, the district court may not transfer the 
     action to any other district or division over the objection 
     of the pool or marketing association.
       (g) 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.''.
       (h) 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,''.
       (i) Regulations.--The Secretary of Agriculture shall issue 
     such regulations as are necessary to carry out this section 
     and the amendments made by this section. 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.
                                                                    ____


                           Amendment No. 3343

       Strike the section relating to the peanut program and 
     insert the following:

     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.--
       (A) Rates.--Subject to subparagraph (B), 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.
       (B) Limitation.--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 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 

[[Page S951]]
     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 peanuts.--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 sum of--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool; 
     and
       (II) an amount from all additional pool gains equal to any 
     loss on the disposition of all peanuts in the pool for quota 
     peanuts.

       (ii) Additional peanuts.--For additional peanuts, the 
     difference between--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool 
     for additional peanuts; and
       (II) any amount allocated to offset any loss on the pool 
     for quota 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) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (4) Use of marketing assessments.--The Secretary shall use 
     funds collected under subsection (g) 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.
       (5) 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 
     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.
       (6) 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. Amounts collected under 
     subsection (g) as a result of the increased assessment shall 
     be retained by the Secretary to cover losses in that pool.
       (e) Disapproval of Quotas.--Notwithstanding any other 
     provision of law, no loan for quota peanuts may be made 
     available by the Secretary for any crop of peanuts with 
     respect to which poundage quotas have been disapproved by 
     producers, as provided for in section 358-1(d) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
       (f) Quality Improvement.--
       (1) In general.--With respect to peanuts under loan, the 
     Secretary shall--
       (A) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts of a lesser risk of 
     deterioration;
       (B) ensure that all Commodity Credit Corporation 
     inventories of peanuts sold for domestic edible use must be 
     shown to have been officially inspected by licensed 
     Department inspectors both as farmer stock and shelled or 
     cleaned in-shell peanuts;
       (C) continue to endeavor to operate the peanut program so 
     as to improve the quality of domestic peanuts and ensure the 
     coordination of activities under the Peanut Administrative 
     Committee established under Marketing Agreement No. 146, 
     regulating the quality of domestically produced peanuts 
     (under the Agricultural Adjustment Act (7 U.S.C. 601 et 
     seq.), reenacted with amendments by the Agricultural 
     Marketing Agreement Act of 1937); and
       (D) ensure that any changes made in the peanut program as a 
     result of this subsection requiring additional production or 
     handling at the farm level shall be reflected as an upward 
     adjustment in the Department loan schedule.
       (2) Exports and other peanuts.--The Secretary shall require 
     that all peanuts in the domestic and export markets fully 
     comply with all quality standards under Marketing Agreement 
     No. 146.
       (g) Marketing Assessment.--
       (1) In general.--The Secretary shall provide for a 
     nonrefundable marketing assessment. The assessment shall be 
     made on a per pound basis in an amount equal to 1.1 percent 
     for each of the 1994 and 1995 crops, 1.15 percent for the 
     1996 crop, and 1.2 percent for each of the 1997 through 2002 
     crops, of the national average quota or additional peanut 
     loan rate for the applicable crop.
       (2) First purchasers.--
       (A) In general.--Except as provided under paragraphs (3) 
     and (4), the first purchaser of peanuts shall--
       (i) collect from the producer a marketing assessment equal 
     to the quantity of peanuts acquired multiplied by--

       (I) in the case of each of the 1994 and 1995 crops, .55 
     percent of the applicable national average loan rate;
       (II) in the case of the 1996 crop, .6 percent of the 
     applicable national average loan rate; and
       (III) in the case of each of the 1997 through 2002 crops, 
     .65 percent of the applicable national average loan rate;

       (ii) pay, in addition to the amount collected under clause 
     (i), a marketing assessment in an amount equal to the 
     quantity of peanuts acquired multiplied by .55 percent of the 
     applicable national average loan rate; and
       (iii) remit the amounts required under clauses (i) and (ii) 
     to the Commodity Credit Corporation in a manner specified by 
     the Secretary.
       (B) Definition of first purchaser.--In this subsection, the 
     term ``first purchaser'' means a person acquiring peanuts 
     from a producer except that in the case of peanuts forfeited 
     by a producer to the Commodity Credit Corporation, the term 
     means the person acquiring the peanuts from the Commodity 
     Credit Corporation.
       (3) Other private marketings.--In the case of a private 
     marketing by a producer directly to a consumer through a 
     retail or wholesale outlet or in the case of a marketing by 
     the producer outside of the continental United States, the 
     producer shall be responsible for the full amount of the 
     assessment and shall remit the assessment by such time as is 
     specified by the Secretary.
       (4) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a loan made under this section, \1/2\ of 
     the assessment shall be deducted from the proceeds of the 
     loan. The remainder of the assessment shall be paid by the 
     first purchaser of the peanuts. For purposes of computing net 
     gains on peanuts under this section, the reduction in loan 
     proceeds shall be treated as having been paid to the 
     producer.
       (5) Penalties.--If any person fails to collect or remit the 
     reduction required by this subsection or fails to comply with 
     the requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this subsection, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (A) the quantity of peanuts involved in the violation; by
       (B) the national average quota peanut rate for the 
     applicable crop year.
       (6) Enforcement.--The Secretary may enforce this subsection 
     in the courts of the United States.
       (h) Crops.--Subsections (a) through (f) shall be effective 
     only for the 1996 through 2002 crops of peanuts.
       (i) Marketing Quotas.--
       (1) In general.--Part VI of subtitle B of title III of the 
     Agricultural Adjustment Act of 1938 is amended--
       (A) in section 358-1 (7 U.S.C. 1358-1)--
       (i) in the section heading, by striking ``1991 through 1997 
     crops of'';
       (ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A), 
     (b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through 
     1997 marketing years'' each place it appears and inserting 
     ``marketing year'';
       (iii) in subsection (a)(3), by striking ``1990'' and 
     inserting ``1990, for the 1991 through 1995 

[[Page S952]]
     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 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.''.
                                                                    ____


                           Amendment No. 3344

       Strike the section relating to the peanut program and 
     insert the following:

     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 $678 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.--
       (A) Rates.--Subject to subparagraph (B), 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.
       (B) Limitation.--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 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 peanuts.--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 sum of--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool; 
     and
       (II) an amount from all additional pool gains equal to any 
     loss on the disposition of all peanuts in the pool for quota 
     peanuts.

       (ii) Additional peanuts.--For additional peanuts, the 
     difference between--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool 
     for additional peanuts; and
       (II) any amount allocated to offset any loss on the pool 
     for quota 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 

[[Page S953]]
     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) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (4) Use of marketing assessments.--The Secretary shall use 
     funds collected under subsection (g) 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.
       (5) 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 
     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.
       (6) 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. 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.--
       (A) Peanuts under loan.--With respect to peanuts under 
     loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts of a lesser risk of 
     deterioration;
       (ii) 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;
       (iii) 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
       (iv) 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.
       (B) 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.
       (2) Peanut standards.--
       (A) Inspection; quality assurance.--
       (i) Initial entry.--The Secretary shall require all peanuts 
     and peanut products sold in the United States to be initially 
     placed in a bonded, licensed warehouse approved by the 
     Secretary for the purpose of inspection and grading by the 
     Secretary, the Commissioner of the Food and Drug 
     Administration, and the heads of other appropriate agencies 
     of the United States.
       (ii) Preliminary inspection.--Peanuts and peanut products 
     shall be held in the warehouse until inspected by the 
     Secretary, the Commissioner of the Food and Drug 
     Administration, or the head of another appropriate agency of 
     the United States, for chemical residues, general 
     cleanliness, disease, size, aflatoxin, stripe virus, and 
     other harmful conditions, and an assurance of compliance with 
     all grade and quality standards specified 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).
       (iii) Separation of lots.--All imported peanuts shall be 
     maintained separately from, and shall not be commingled with, 
     domestically produced peanuts in the warehouse.
       (iv) Origin of peanut products.--

       (I) Labeling.--A peanut product shall be labeled with a 
     label that indicates the origin of the peanuts contained in 
     the product.
       (II) Source.--No peanut product may contain both imported 
     and domestically produced peanuts.
       (III) Imported peanut products.--The first seller of an 
     imported peanut product shall certify that the product is 
     made from raw peanuts that meet the same quality and grade 
     standards that apply to domestically produced peanuts.

       (v) Documentation.--No peanuts or peanut products may be 
     transferred, shipped, or otherwise released from a warehouse 
     described in clause (i) unless accompanied by a United States 
     Government inspection certificate that certifies compliance 
     with this subparagraph.
       (B) Handling and storage.--
       (i) Temperature and humidity.--The Secretary shall require 
     all shelled peanuts sold in the United States to be 
     maintained at a temperature of not more than 37 degrees 
     Fahrenheit and a humidity range of 60 to 68 percent at all 
     times during handling and storage prior to sale and shipment.
       (ii) Containers.--The peanuts shall be shipped in a 
     container that provides the maximum practicable protection 
     against moisture and insect infestation.
       (iii) In-shell peanuts.--The Secretary shall require that 
     all in-shell peanuts be reduced to a moisture level not 
     exceeding 10 percent immediately on being harvested and be 
     stored in a facility that will ensure quality maintenance and 
     will provide proper ventilation at all times prior to sale 
     and shipment.
       (C) Labeling.--The Secretary shall require that all peanuts 
     and peanut products sold in the United States contain 
     labeling that lists the country or countries in which the 
     peanuts, including all peanuts used to manufacture the peanut 
     products, were produced.
       (D) Inspection and testing.--
       (i) In general.--All peanuts and peanut products sold in 
     the United States shall be inspected and tested for grade and 
     quality.
       (ii) Certification.--All peanuts or peanut products offered 
     for sale in, or imported into, the United States shall be 
     accompanied by a certification by the first seller or 
     importer that the peanuts or peanut products do not contain 
     residues of any pesticide not approved for use in, or 
     importation into, the United States.
       (E) Nutritional labeling.--The Secretary shall require all 
     peanuts and peanut products sold in the United States to 
     contain complete nutritional labeling information as required 
     under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 
     et seq.).
       (F) Peanut content.--
       (i) Offset against hts quantity.--The actual quantity of 
     peanuts, by weight, used to manufacture, and ultimately 
     contained in, peanut products imported into the United States 
     shall be accounted for and offset against the total quantity 
     of peanut imports allowed under the in-quota quantity of the 
     tariff-rate quota established for peanuts under the 
     Harmonized Tariff Schedule of the United States.
       (ii) Verification.--The Secretary shall establish standards 
     and procedures for the purpose of verifying the actual peanut 
     content of peanut products imported into the United States.
       (G) Plant diseases.--The Secretary, in consultation with 
     the heads of other appropriate agencies of the United States, 
     shall ensure that all peanuts in the domestic edible market 
     are inspected and tested to ensure that they are free of all 
     plant diseases.
       (H) Administration.--
       (i) Fees.--The Secretary shall by regulation fix and 
     collect fees and charges to cover the costs of any inspection 
     or testing performed under this paragraph.
       (ii) Certification.--

       (I) In general.--The Secretary may require the first seller 
     of peanuts sold in the United States to certify that the 
     peanuts comply with this paragraph.
       (II) Fraud and false statements.--Section 1001 of title 18, 
     United States Code, shall apply to a certification made under 
     this paragraph.

       (iii) Standards and procedures.--In consultation with the 
     heads of other appropriate agencies of the United States, the 
     Secretary shall establish standards and procedures to provide 
     for the enforcement of, and ensure compliance with, this 
     paragraph.
       (iv) Failure to meet standards.--Peanuts or peanut products 
     that fail to meet standards established under this paragraph 
     shall be returned to the seller and exported or crushed 
     pursuant to section 358e(d) of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359a(d)).
       (I) Change of venue.--In any case in which an area pool or 
     a marketing association brings, joins, or seeks to join a 
     civil action in a United States district court to enforce 
     this paragraph, the district court may not transfer the 
     action to any other district or division over the objection 
     of the pool or marketing association.
       (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;
     
[[Page S954]]

       (II) in the case of the 1996 crop, .6 percent of the 
     applicable national average loan rate; and
       (III) in the case of each of the 1997 through 2002 crops, 
     .65 percent of the applicable national average loan rate;

       (ii) pay, in addition to the amount collected under clause 
     (i), a marketing assessment in an amount equal to the 
     quantity of peanuts acquired multiplied by .55 percent of the 
     applicable national average loan rate; and
       (iii) remit the amounts required under clauses (i) and (ii) 
     to the Commodity Credit Corporation in a manner specified by 
     the Secretary.
       (B) Imported peanuts.--In the case of imported peanuts, the 
     first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (C) 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 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.''.
       (6) Transfers of farm poundage quotas.--Section 358b(a) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b(a)) 
     is amended by adding at the end the following:
       ``(4) Transfers between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), 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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.''.
                                                                    ____


                           Amendment No. 3345

       Strike the section relating to the peanut program and 
     insert the following:

     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 $678 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.--
       (A) Rates.--Subject to subparagraph (B), 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.
       (B) Limitation.--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. 
     
[[Page S955]]

       (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 peanuts.--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 sum of--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool; 
     and
       (II) an amount from all additional pool gains equal to any 
     loss on the disposition of all peanuts in the pool for quota 
     peanuts.

       (ii) Additional peanuts.--For additional peanuts, the 
     difference between--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool 
     for additional peanuts; and
       (II) any amount allocated to offset any loss on the pool 
     for quota 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) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (4) Use of marketing assessments.--The Secretary shall use 
     funds collected under subsection (g) 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.
       (5) 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 
     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.
       (6) 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. 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.--
       (A) Peanuts under loan.--With respect to peanuts under 
     loan, the Secretary shall--
       (i) promote the crushing of peanuts at a greater risk of 
     deterioration before peanuts of a lesser risk of 
     deterioration;
       (ii) 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;
       (iii) 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
       (iv) 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.
       (B) 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.
       (2) Peanut standards.--
       (A) Labeling.--The Secretary shall require that all peanuts 
     and peanut products sold in the United States contain 
     labeling that lists the country or countries in which the 
     peanuts, including all peanuts used to manufacture the peanut 
     products, were produced.
       (B) Inspection and testing.--
       (i) In general.--All peanuts and peanut products sold in 
     the United States shall be inspected and tested for grade and 
     quality.
       (ii) Certification.--All peanuts or peanut products offered 
     for sale in, or imported into, the United States shall be 
     accompanied by a certification by the first seller or 
     importer that the peanuts or peanut products do not contain 
     residues of any pesticide not approved for use in, or 
     importation into, the United States.
       (C) Peanut content.--
       (i) Offset against hts quantity.--The actual quantity of 
     peanuts, by weight, used to manufacture, and ultimately 
     contained in, peanut products imported into the United States 
     shall be accounted for and offset against the total quantity 
     of peanut imports allowed under the in-quota quantity of the 
     tariff-rate quota established for peanuts under the 
     Harmonized Tariff Schedule of the United States.
       (ii) Verification.--The Secretary shall establish standards 
     and procedures for the purpose of verifying the actual peanut 
     content of peanut products imported into the United States.
       (D) Change of venue.--In any case in which an area pool or 
     a marketing association brings, joins, or seeks to join a 
     civil action in a United States district court to enforce 
     this paragraph, the district court may not transfer the 
     action to any other district or division over the objection 
     of the pool or marketing association.
       (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 S956]]

       (iii) remit the amounts required under clauses (i) and (ii) 
     to the Commodity Credit Corporation in a manner specified by 
     the Secretary.
       (B) Imported peanuts.--In the case of imported peanuts, the 
     first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (C) 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 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.''.
       (6) Transfers of farm poundage quotas.--Section 358b(a) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b(a)) 
     is amended by adding at the end the following:
       ``(4) Transfers between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), 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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.''.
                                 ______


                       DASCHLE AMENDMENT NO. 3346

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

       Title V is amended by adding at the end the following:

     ``SEC. 507 FUND FOR RURAL AMERICA.

       ``(a) In General.--The Secretary shall create an account 
     called the Fund for Rural America for the purposes of 
     providing funds of activities described in subsection (c).
       ``(b) Commodity Credit Corporation.--In each of the 1996 
     through 1998 fiscal years, the Secretary shall transfer into 
     the Fund for Rural America (hereafter referred to as the 
     ``Account'')--
       ``(1) $50,000,000 for the 1996 fiscal year;
       ``(2) $100,000,000 for the 1997 fiscal year; and
       ``(3) $150,000,000 for the 1998 fiscal year.
       ``(c) Purposes.--Except as provided in subsection (d), the 
     Secretary shall provide not more than one-third of the funds 
     from the Account for activities described in paragraph (2).
       ``(1) Rural development activities.--The Secretary may use 
     the funds in the Account for the following rural development 
     activities authorized in:
       ``(A) The Housing Act of 1949 for--
       ``(i) direct loans to low income borrowers pursuant to 
     section 502;
       ``(ii) loans for financial assistance for housing for 
     domestic farm laborers pursuant to section 514;
       ``(iii) financial assistance for housing of domestic farm 
     labor pursuant to section 516;
       ``(iv) grants and contracts for mutual and self help 
     housing pursuant to section 523(b)(1)(A); and
       ``(v) grants for Rural Housing Preservation pursuant to 
     section 533;
       ``(B) The Food Security Act of 1985 for loans to 
     intermediary borrowers under the Rural Development Loan Fund;
       ``(C) Consolidated Farm and Rural Development Act for--
       ``(i) grants for Rural Business Enterprises pursuant to 
     section 310B(c) and (j);
     
[[Page S957]]

       ``(ii) direct loans, loan guarantees and grants for water 
     and waste water projects pursuant to section 306; and
       ``(iii) down payments assistance to farmers, section 310E;
       ``(D) grants for outreach to socially disadvantaged farmers 
     and ranchers pursuant to section 2501 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     2279); and
       ``(E) grants pursuant to section 204(6) of the Agricultural 
     Marketing Act of 1946.
       ``(2) Research.--
       ``(A) In General.--The Secretary may use the funds in the 
     Account for research grants to increase the competitiveness 
     and farm profitability, protect and enhance natural 
     resources, increase economic opportunities in farming and 
     rural communities and expand locally owned value added 
     processing and marketing operations.
       ``(B) Eligible grantee.--The Secretary may make a grant 
     under this paragraph to--
       ``(i) a college or university;
       ``(ii) a State agricultural experiment station;
       ``(iii) a State Cooperative Extension Service;
       ``(iv) a research institution or organization;
       ``(v) a private organization or person; or
       ``(vi) a Federal agency.
       ``(C) Use of grant.--
       ``(i) In general.--A grant made under this paragraph may be 
     used by a grantee for 1 or more of the following uses:
       ``(I) research, ranging from discovery to principles of 
     application;
       ``(II) extension and related private-sector activities; and
       ``(III) education.
       ``(ii) Limitation.--No grant shall be made for any project, 
     determined by the Secretary, to be eligible for funding under 
     research and commodity promotion programs administered by the 
     Department.
       ``(D) Administration.--
       ``(i) Priority.--In administering this paragraph, the 
     Secretary shall--
       ``(I) establish priorities for allocating grants, based on 
     needs and opportunities of the food and agriculture system in 
     the United States related to the goals of the paragraph;
       ``(II) seek and accept proposals for grants;
       ``(III) determine the relevance and merit of proposals 
     through a system of peer and stakeholder review; and
       ``(IV) award grants on the basis of merit, quality, and 
     relevance to advancing the national research and extension 
     purposes.
       ``(ii) Competitive awarding.--A grant under this paragraph 
     shall be awarded on a competitive basis.
       ``(iii) Terms.--A grant under this paragraph shall have a 
     term that does not exceed 5 years.
       ``(iv) Matching funds.--As a condition of receipts under 
     this paragraph, the Secretary shall require the funding of 
     the grant with equal matching funds from a non-Federal source 
     if the grant is--
       ``(I) for applied research that is commodity-specific; and
       ``(II) not of national scope.
       ``(v) Administrative costs.--
       ``(I) In general.--The Secretary may use not more than 4 
     percent of the funds made available under this paragraph for 
     administrative costs incurred by the Secretary in carrying 
     out this paragraph.
       ``(II) Limitation.--Funds made available under this 
     paragraph shall not be used--
       ``(aa) for the construction of a new building or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building (including site grading and improvement and 
     architect fees); or
       ``(bb) in excess of ten percent of the annual allocation 
     for commodity-specific projects not of the national scope.
       ``(d) Limitations.--No funds from the Fund for Rural 
     America may be used for an activity specified in subsection 
     (c) if the current level of appropriations for the activity 
     is less than 90 percent of the 1996 fiscal year 
     appropriations for the activity adjusted for inflation.''
                                 ______


                       DASCHLE AMENDMENT NO. 3347

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

       Section 314 is amended by striking ``(ii) 10,000 beef 
     cattle'' and all that follows through ``swine,'' and 
     inserting the following:
       ``(ii) 1,000 beef cattle;
       ``(iii) 30,000 laying hens or broilers (if the facility has 
     continuous overflow watering);
       ``(iv) 100,000 laying hens or broilers (if the facility has 
     a liquid manure system);
       ``(v) 2,500 swine;''.
                                 ______


                   DASCHLE AMENDMENTS NOS. 3348-3349

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

                           Amendment No. 3348

       (a) Section 103(a)(3) is amended by adding at the end the 
     following:
       ``In the case of a landlord and tenant that both share in 
     risk of production of the crops on the farm, the Secretary 
     shall ensure that the contract payments authorized by this 
     section are divided in manner consistent with the interests 
     the landlord and tenant have in the crops on the farm.
       (b) Section 104 is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A) by--
       (I) striking ``shall be-(i)'' and inserting ``shall be 
     not''; and
       (II) striking (ii);
       (ii) by striking subparaphs (B) and (C);
       (B) in paragraph (2)--
       (i) in subparagraph (A) by--
       (I) striking ``shall be- (i)'' and inserting ``shall be 
     not''; and
       (II) striking (ii);
       (ii) by striking subparagraphs (B) and (C);
       (C) in paragraph (3) b striking subparagraph (B);
       (D) in paragraph (4)(A) by--
       (i) striking ``shall be- (i)'' and inserting ``shall be 
     not''; and
       (ii) striking (ii);
       (E) by striking paragraph (6) and inserting the following:
       ``(6) Oilseeds.--
       ``(A) Soybeans.--The loan rate for a marketing assistance 
     loan for soybeans, shall be--
       ``(i) not less than 85 percent of the simple average price 
     received by producers of soybeans, 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
       ``(ii) not less than $4.92 or more than $5.26 per bushel.
       ``(B) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flax seed.--The loan rate for a marketing 
     assistance loan for each of sunflower seed, canola, rapseed, 
     safflower, mustard seed, and flaxseed, shall be--
       ``(i) not less than 85 percent of the simple average price 
     received by producers of sunflower seed, 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
       (ii) not less than $0.087 or more than $0.093 per pound.
       (C) Other oilseeds.--The loan rates for 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.''
       (2) in subsection (c) by striking the last sentence and 
     inserting the following:
       ``The Secretary may extend the term of a marketing 
     assistance loan for upland cotton for a period not to exceed 
     8 months.
       (c) Commodity Credit Corporation.--
       (1) Section 109 is amended by striking subsection (a)(2).
       (2) Title V is amended by striking section 505.
       (d) Permanent Law for Rice and The Farmer Owned Reserve.--
     Section 110 is amended--
       (1) in subsection (b)(1)--
       (i) in subparagraph (B)--
       (I) by inserting ``101B, 110,'' after ``sections''; and
       (II) by striking ``and 307'' and inserting ``307, 308, and 
     309''; and
       (ii) by adding to end the following:
       (D) by transfering Title VI (7 U.S.C. 1421 note et seq.) to 
     appear after section 309 of the Agricultural Adjustment Act 
     of 1938 (7 U.S.C. 1309) and redesignating the transferred 
     title as section 310.
       (2) in subsection (c) by adding at the end the following:
       (3) Section 305 (as redesignated) is amended in subsection 
     (n) by striking ``only for the 1991 through 1995 crops of 
     rice'' and inserting ``2003 and subsequent crops of rice and 
     in the same manner as the 1995 crop of rice.''.
                                                                    ____


                           Amendment No. 3349

       Strike all after the enacting clause and insert the 
     following:

     SEC. 101. SHORT TITLE.

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

     SEC. 102. AUTHORITY FOR 1996 AGRICULTURAL PROGRAMS.

       (A) In General.--Notwithstanding any other provisions 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 Agriculture 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.
       (b) Flexibility.--Amend section 504 of the Agricultural Act 
     of 1949 (7 U.S.C. 1464) by--
       (1) Striking subsections (c), (d), and (e) and inserting 
     the following:
       ``(c) Non-Payment Acres.--In the case of the 1996 crops, 
     any crop or conserving crop specified in subsection (b)(1) 
     may be planted on the acres of a crop acreage base that is 
     not eligible for payment under this Act.
       ``(d) Loan Eligibility.--In the case of the 1996 crops, 
     producers on a farm with crop 

[[Page S958]]
     acreage base may plant any program crop on the crop acreage base and 
     shall be eligible to receive purchases, loans, and the 
     deficiency payments for the program crop.''
       (c) 1996 Crop Advanced Deficiency Payments.--
       (1) In general.--The Secretary shall issue nonrefundable 
     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.
       (2) Formula.--The advanced deficiency payment rate for 
     wheat, feed grains, upland cotton, and rice shall be 40 
     percent of the average deficiency payments for the 1990 
     through 1994 crops.

     SEC. 104. MISCELLANEOUS PROVISIONS.

       (a) Fund for Rural America.--
       (1) In general.--The Secretary shall create an account 
     called the Fund for Rural America for the purposes of 
     providing funds for activities described in paragraph (3).
       (2) Commodity credit corporation.--In each of the 1996 
     through 1998 fiscal years, the Secretary shall transfer into 
     the Fund for Rural America (hereafter referred to as the 
     ``Account'')--
       (A) $50,000,000 for the 1996 fiscal year;
       (B) $100,000,000 for the 1997 fiscal year; and
       (C) $150,000,000 for the 1998 fiscal year.
       (3) Purposes.--Except as provided in paragraph (4), the 
     Secretary shall provide not more than one-third of the funds 
     from the Account for activities described in subparagraph 
     (B).
       (A) Rural development activities.--The Secretary may use 
     the funds in the Account for the following rural development 
     activities authorized in:
       (i) The Housing Act of 1949 for--
       (I) direct loans to low income borrowers pursuant to 
     section 502;
       (II) loans for financial assistance for housing for 
     domestic farm laborers pursuant to section 514;
       (III) financial assistance for housing of domestic farm 
     labor pursuant to section 516;
       (IV) grants and contracts for mutual and self help housing 
     pursuant to section 523(b)(1)(A); and
       (V) grants for Rural Housing Preservation pursuant to 
     section 533;
       (ii) The Food Security Act of 1985 for loans to 
     intermediary borrowers under the Rural Development Loan Fund;
       (iii) Consolidated Farm and Rural Development Act for--
       (I) grants for Rural Enterprises pursuant to section 310B 
     (c) and (j);
       (II) direct loans, loan guarantees and grants for water and 
     waste water projects pursuant to section 306; and
       (III) down payments assistance to farmers, section 310E; 
     and
       (iv) grants for outreach to socially disadvantaged farmers 
     and ranchers pursuant to section 2501 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     2279); and
       (v) grants pursuant to section 204(6) of the Agricultural 
     Marketing Act of 1946.
       (B) Research.--
       (i) In general.--The Secretary may use the funds in the 
     Account for research grants to increase the competitiveness 
     and farm profitability, protect and enhance natural 
     resources, increase economic opportunities in farming and 
     rural communities and expand locally owned value added 
     processing and marketing operations.
       (ii) Eligible grantee.--The Secretary may make a grant 
     under this paragraph to--
       (I) a college or university;
       (II) a State agricultural experiment station;
       (III) a State Cooperative Extension Service;
       (IV) a research institution or organization;
       (V) a private organization or person; or
       (VI) a Federal agency.
       (iii) Use of grant.--
       (I) In general.--A grant made under this paragraph may be 
     used by a grantee for 1 or more of the following uses:
       (aa) research, ranging from discovery to principles of 
     application;
       (bb) extension and related private-sector activities; and
       (cc) education.
       (II) Limitation.--No grant shall be made for any project, 
     determined by the Secretary, to be eligible for funding under 
     research and commodity promotion programs administered by the 
     Department.
       (iv) Administration.--
       (I) Priority.--In administering this paragraph, the 
     Secretary shall--
       (aa) establish priorities for allocating grants, based on 
     needs and opportunities of the food and agriculture system in 
     the United States related to the goals of the paragraph;
       (bb) seek and accept proposals for grants;
       (cc) determine the relevance and merit of proposals through 
     a system of peer and stakeholder review; and
       (dd) award grants on the basis of merit, quality, and 
     relevance to advancing the national research and extension 
     purposes.
       (II) Competitive awarding.--A grant under this paragraph 
     shall be awarded on a competitive basis.
       (III) Terms.--A grant under this paragraph shall have a 
     term that does not exceed 5 years.
       (IV) Matching funds.--As a condition of receipts under this 
     paragraph, the Secretary shall require the funding of the 
     grant with equal matching funds from a non-Federal source if 
     the grant is--
       (aa) for applied research that is commodity-specific; and
       (cc) not of national scope.
       (V) Administrative costs.--
       (aa) In general.--The Secretary may use not more than 4 
     percent of the funds made available under this paragraph for 
     administrative costs incurred by the Secretary in carrying 
     out this paragraph.
       (bb) Limitation.--Funds made available under this paragraph 
     shall not be used--
       (AA) for the construction of a new building or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building (including site grading and improvement and 
     architect fees); or
       (BB) in excess of ten percent of the annual allocation for 
     commodity-specific projects not of the national scope.
       (4) Limitations.--No funds from the Fund for Rural America 
     may be used for an activity specified in subsection (c) if 
     the current level of appropriations for the activity is less 
     than 90 percent of the 1996 fiscal year appropriations for 
     the activity adjusted for inflation.
                                 ______


               GRASSLEY (AND COCHRAN) AMENDMENT NO. 3350

  (Ordered to lie on the table.)
  Mr. GRASSLEY (for himself and Mr. Cochran) submitted an amendment 
intended to be proposed by them to amendment No. 3184 proposed by Mr. 
Leahy to the bill S. 1541, supra; as follows:

       Strike sections 103 through 107 and insert the following:

     SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

       (a) Contracts Authorized.--
       (1) Offer and terms.--Beginning as soon as practicable 
     after the date of enactment of this Act, 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 

[[Page S959]]
     flexibility contract was entered into or expanded to cover the acreage.
       (B) Ending date.--A contract shall extend through the 2002 
     crop.
       (3) Estimation of contract payments.--At the time the 
     Secretary enters into a contract, the Secretary shall provide 
     an estimate of the minimum contract payments anticipated to 
     be made during at least the first fiscal year for which 
     contract payments will be made.
       (c) Eligible Farmland Described.--Land shall be considered 
     to be farmland eligible for coverage under a contract only if 
     the land has contract acreage attributable to the land and--
       (1) for at least 1 of the 1991 through 1995 crops, at least 
     a portion of the land was enrolled in the acreage reduction 
     program authorized for a crop of a contract commodity under 
     section 101B, 103B, 105B, or 107B of the Agricultural Act of 
     1949 (as in effect prior to the amendment made by section 
     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.
     
[[Page S960]]

       (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.
       (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;
     
[[Page S961]]

       (C) minimize the cost incurred by the Federal Government in 
     storing the commodities; and
       (D) allow the commodities produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally.
       (2) Repayment rates for upland cotton, oilseeds, and 
     rice.--The Secretary shall permit producers to repay a 
     marketing assistance loan under subsection (a) for upland 
     cotton, oilseeds, and rice at a level that is the lesser of--
       (A) the loan rate established for upland cotton, oilseeds, 
     and rice, respectively, under subsection (b); or
       (B) the prevailing world market price for upland cotton, 
     oilseeds, and rice, respectively (adjusted to United States 
     quality and location), as determined by the Secretary.
       (3) Repayment rates for extra long staple cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under subsection (b), plus interest (as determined 
     by the Secretary).
       (4) Prevailing world market price.--For purposes of 
     paragraph (2)(B) and subsection (f), the Secretary shall 
     prescribe by regulation--
       (A) a formula to determine the prevailing world market 
     price for each loan commodity, adjusted to United States 
     quality and location; and
       (B) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for each loan 
     commodity.
       (5) Adjustment of prevailing world market price for upland 
     cotton.--
       (A) In general.--During the period ending July 31, 2003, 
     the prevailing world market price for upland cotton (adjusted 
     to United States quality and location) established under 
     paragraph (4) shall be further adjusted if--
       (i) the adjusted prevailing world market price is less than 
     115 percent of the loan rate for upland cotton established 
     under subsection (b), as determined by the Secretary; and
       (ii) the Friday through Thursday average price quotation 
     for the lowest-priced United States growth as quoted for 
     Middling (M) 1\3/32\-inch cotton delivered C.I.F. Northern 
     Europe is greater than the Friday through Thursday average 
     price of the 5 lowest-priced growths of upland cotton, as 
     quoted for Middling (M) 1\3/32\-inch cotton, delivered C.I.F. 
     Northern Europe (referred to in this subsection as the 
     ``Northern Europe price'').
       (B) Further adjustment.--Except as provided in subparagraph 
     (C), the adjusted prevailing world market price for upland 
     cotton shall be further adjusted on the basis of some or all 
     of the following data, as available:
       (i) The United States share of world exports.
       (ii) The current level of cotton export sales and cotton 
     export shipments.
       (iii) Other data determined by the Secretary to be relevant 
     in establishing an accurate prevailing world market price for 
     upland cotton (adjusted to United States quality and 
     location).
       (C) Limitation on further adjustment.--The adjustment under 
     subparagraph (B) may not exceed the difference between--
       (i) the Friday through Thursday average price for the 
     lowest-priced United States growth as quoted for Middling 
     1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
       (ii) the Northern Europe price.
       (e) Loan Deficiency Payments.--
       (1) Availability.--Except as provided in paragraph (4), the 
     Secretary may make loan deficiency payments available to 
     producers who, although eligible to obtain a marketing 
     assistance loan under subsection (a) with respect to a loan 
     commodity, agree to forgo obtaining the loan for the 
     commodity in return for payments under this subsection.
       (2) Computation.--A loan deficiency payment under this 
     subsection shall be computed by multiplying--
       (A) the loan payment rate determined under paragraph (3) 
     for the loan commodity; by
       (B) the quantity of the loan commodity that the producers 
     on a farm are eligible to place under loan but for which the 
     producers forgo obtaining the loan in return for payments 
     under this subsection.
       (3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       (A) the loan rate established under subsection (b) for the 
     loan commodity; exceeds
       (B) the rate at which a loan for the commodity may be 
     repaid under subsection (d).
       (4) Exception for extra long staple cotton.--This 
     subsection shall not apply with respect to extra long staple 
     cotton.
       (f) Special Marketing Loan Provisions for Upland Cotton.--
       (1) Cotton user marketing certificates.--
       (A) Issuance.--Subject to subparagraph (D), during the 
     period ending July 31, 2003, the Secretary shall issue 
     marketing certificates or cash payments to domestic users and 
     exporters for documented purchases by domestic users and 
     sales for export by exporters made in the week following a 
     consecutive 4-week period in which--
       (i) the Friday through Thursday average price quotation for 
     the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe exceeds the Northern Europe price by more than 1.25 
     cents per pound; and
       (ii) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location) does not 
     exceed 130 percent of the loan rate for upland cotton 
     established under subsection (b).
       (B) Value of certificates or payments.--The value of the 
     marketing certificates or cash payments shall be based on the 
     amount of the difference (reduced by 1.25 cents per pound) in 
     the prices during the 4th week of the consecutive 4-week 
     period multiplied by the quantity of upland cotton included 
     in the documented sales.
       (C) Administration of marketing certificates.--
       (i) Redemption, marketing, or exchange.--The Secretary 
     shall establish procedures for redeeming marketing 
     certificates for cash or marketing or exchange of the 
     certificates for agricultural commodities owned by the 
     Commodity Credit Corporation in such manner, and at such 
     price levels, as the Secretary determines will best 
     effectuate the purposes of cotton user marketing 
     certificates. Any price restrictions that would otherwise 
     apply to the disposition of agricultural commodities by the 
     Commodity Credit Corporation shall not apply to the 
     redemption of certificates under this paragraph.
       (ii) Designation of commodities and products.--To the 
     extent practicable, the Secretary shall permit owners of 
     certificates to designate the commodities and products, 
     including storage sites, the owners would prefer to receive 
     in exchange for certificates. If any certificate is not 
     presented for redemption, marketing, or exchange within a 
     reasonable number of days after the issuance of the 
     certificate (as determined by the Secretary), reasonable 
     costs of storage and other carrying charges, as determined by 
     the Secretary, shall be deducted from the value of the 
     certificate for the period beginning after the reasonable 
     number of days and ending with the date of the presentation 
     of the certificate to the Commodity Credit Corporation.
       (iii) Transfers.--Marketing certificates issued to domestic 
     users and exporters of upland cotton may be transferred to 
     other persons in accordance with regulations issued by the 
     Secretary.
       (D) Exception.--The Secretary shall not issue marketing 
     certificates or cash payments under subparagraph (A) if, for 
     the immediately preceding consecutive 10-week period, the 
     Friday through Thursday average price quotation for the 
     lowest priced United States growth, as quoted for Middling 
     (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
     adjusted for the value of any certificate issued under this 
     paragraph, exceeds the Northern Europe price by more than 
     1.25 cents per pound.
       (E) Limitation on expenditures.--Total expenditures under 
     this paragraph shall not exceed $701,000,000 during fiscal 
     years 1996 through 2002.
       (2) Special import quota.--
       (A) Establishment.--The President shall carry out an import 
     quota program that provides that, during the period ending 
     July 31, 2003, whenever the Secretary determines and 
     announces that for any consecutive 10-week period, the Friday 
     through Thursday average price quotation for the lowest-
     priced United States growth, as quoted for Middling (M) 1\3/
     32\-inch cotton, delivered C.I.F. Northern Europe, adjusted 
     for the value of any certificates issued under paragraph (1), 
     exceeds the Northern Europe price by more than 1.25 cents per 
     pound, there shall immediately be in effect a special import 
     quota.
       (B) Quantity.--The quota shall be equal to 1 week's 
     consumption of upland cotton by domestic mills at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (C) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under subparagraph (A) and entered 
     into the United States not later than 180 days after the 
     date.
       (D) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     subparagraph (A), except that a special quota period may not 
     be established under this paragraph if a quota period has 
     been established under subsection (g).
       (E) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (F) Definition.--In this paragraph, the term ``special 
     import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (g) Limited Global Import Quota for Upland Cotton.--
       (1) In general.--The President shall carry out an import 
     quota program that provides that whenever the Secretary 
     determines and announces that the average price of the base 
     quality of upland cotton, as determined by the Secretary, in 
     the designated spot markets for a month exceeded 130 percent 
     of the average price of such quality of cotton in the markets 
     for the preceding 36 months, notwithstanding any other 
     provision of law, there shall immediately be in effect a 
     limited global import quota subject to the following 
     conditions:
     
[[Page S962]]

       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Definitions.--In this subsection:
       (i) Supply.--The term ``supply'' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--

       (I) the carry-over of upland cotton at the beginning of the 
     marketing year (adjusted to 480-pound bales) in which the 
     quota is established;
       (II) production of the current crop; and
       (III) imports to the latest date available during the 
     marketing year.

       (ii) Demand.--The term ``demand'' means--

       (I) the average seasonally adjusted annual rate of domestic 
     mill consumption in the most recent 3 months for which data 
     are available; and
       (II) the larger of--

       (aa) average exports of upland cotton during the preceding 
     6 marketing years; or
       (bb) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.
       (iii) Limited global import quota.--The term ``limited 
     global import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (E) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (2) No overlap.--Notwithstanding paragraph (1), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (f)(2).
       (h) Source of Loans.--
       (1) In general.--The Secretary shall provide the loans 
     authorized by this section and the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1281 et seq.) through the Commodity 
     Credit Corporation and other means available to the 
     Secretary.
       (2) Processors.--Whenever any loan or surplus removal 
     operation for any agricultural commodity is carried out 
     through purchases from or loans or payments to processors, 
     the Secretary shall, to the extent practicable, obtain from 
     the processors such assurances as the Secretary considers 
     adequate that the producers of the commodity have received or 
     will receive maximum benefits from the loan or surplus 
     removal operation.
       (i) Adjustments of Loans.--
       (1) In general.--The Secretary may make appropriate 
     adjustments in the loan levels for any commodity for 
     differences in grade, type, quality, location, and other 
     factors.
       (2) Loan level.--The adjustments shall, to the maximum 
     extent practicable, be made in such manner that the average 
     loan level for the commodity will, on the basis of the 
     anticipated incidence of the factors, be equal to the level 
     of support determined as provided in this section or the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).
       (j) Personal Liability of Producers for Deficiencies.--
       (1) In general.--Except as provided in paragraph (2), no 
     producer shall be personally liable for any deficiency 
     arising from the sale of the collateral securing any 
     nonrecourse loan made under this section or the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) unless the 
     loan was obtained through a fraudulent representation by the 
     producer.
       (2) Limitations.--Paragraph (1) shall not prevent the 
     Commodity Credit Corporation or the Secretary from requiring 
     a producer to assume liability for--
       (A) a deficiency in the grade, quality, or quantity of a 
     commodity stored on a farm or delivered by the producer;
       (B) a failure to properly care for and preserve a 
     commodity; or
       (C) a failure or refusal to deliver a commodity in 
     accordance with a program established under this section or 
     the Agricultural Adjustment Act of 1938.
       (3) Acquisition of collateral.--The Secretary may include 
     in a contract for a nonrecourse loan made under this section 
     or the Agricultural Adjustment Act of 1938 a provision that 
     permits the Commodity Credit Corporation, on and after the 
     maturity of the loan or any extension of the loan, to acquire 
     title to the unredeemed collateral without obligation to pay 
     for any market value that the collateral may have in excess 
     of the loan indebtedness.
       (4) Sugarcane and sugar beets.--A security interest 
     obtained by the Commodity Credit Corporation as a result of 
     the execution of a security agreement by the processor of 
     sugarcane or sugar beets shall be superior to all statutory 
     and common law liens on raw cane sugar and refined beet sugar 
     in favor of the producers of sugarcane and sugar beets and 
     all prior recorded and unrecorded liens on the crops of 
     sugarcane and sugar beets from which the sugar was derived.
       (k) Commodity Credit Corporation Sales Price 
     Restrictions.--
       (1) In general.--The Commodity Credit Corporation may sell 
     any commodity owned or controlled by the Corporation at any 
     price that the Secretary determines will maximize returns to 
     the Corporation.
       (2) Nonapplication of sales price restrictions.--Paragraph 
     (1) shall not apply to--
       (A) a sale for a new or byproduct use;
       (B) a sale of peanuts or oilseeds for the extraction of 
     oil;
       (C) a sale for seed or feed if the sale will not 
     substantially impair any loan program;
       (D) a sale of a commodity that has substantially 
     deteriorated in quality or as to which there is a danger of 
     loss or waste through deterioration or spoilage;
       (E) a sale for the purpose of establishing a claim arising 
     out of a contract or against a person who has committed 
     fraud, misrepresentation, or other wrongful act with respect 
     to the commodity;
       (F) a sale for export, as determined by the Corporation; 
     and
       (G) a sale for other than a primary use.
       (3) Presidential disaster areas.--
       (A) In general.--Notwithstanding paragraph (1), on such 
     terms and conditions as the Secretary may consider in the 
     public interest, the Corporation may make available any 
     commodity or product owned or controlled by the Corporation 
     for use in relieving distress--
       (i) in any area in the United States (including the Virgin 
     Islands) declared by the President to be an acute distress 
     area because of unemployment or other economic cause, if the 
     President finds that the use will not displace or interfere 
     with normal marketing of agricultural commodities; and
       (ii) in connection with any major disaster determined by 
     the President to warrant assistance by the Federal Government 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       (B) Costs.--Except on a reimbursable basis, the Corporation 
     shall not bear any costs in connection with making a 
     commodity available under subparagraph (A) beyond the cost of 
     the commodity to the Corporation incurred in--
       (i) the storage of the commodity; and
       (ii) the handling and transportation costs in making 
     delivery of the commodity to designated agencies at 1 or more 
     central locations in each State or other area.
       (4) Efficient operations.--Paragraph (1) shall not apply to 
     the sale of a commodity the disposition of which is desirable 
     in the interest of the effective and efficient conduct of the 
     operations of the Corporation because of the small quantity 
     of the commodity involved, or because of the age, location, 
     or questionable continued storability of the commodity.

     SEC. 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-- 
     
[[Page S963]]

       (A) in the first sentence of subsection (a)(1)--
       (i) by striking ``section 1001(5)(B)(i)'' and inserting 
     ``section 1001(3)(B)(i)'';
       (ii) by striking ``under the Agricultural Act of 1949 (7 
     U.S.C. 1421 et seq.)''; and
       (iii) by striking ``section 1001(5)(B)(i)(II)'' and 
     inserting ``section 1001(3)(B)(i)(II)''; and
       (B) in subsection (b)--
       (i) in paragraph (1)--

       (I) by striking ``under the Agricultural Act of 1949''; and
       (II) by striking ``section 1001(5)(B)(i)'' and inserting 
     ``section 1001(3)(B)(i)''; and

       (ii) in paragraph (2)(B), by striking ``section 
     1001(5)(B)(i)(II)'' and inserting ``section 
     1001(3)(B)(i)(II)''.
       (4) Section 1001C(a) of the Food Security Act of 1985 (7 
     U.S.C. 1308-3(a)) is amended--
       (A) by striking ``For each of the 1991 through 1997 crops, 
     any'' and inserting ``Any'';
       (B) by striking ``price support program loans, payments, or 
     benefits made available under the Agricultural Act of 1949 (7 
     U.S.C. 1421 et seq.),'' and inserting ``loans or payments 
     made available under the Agricultural Market Transition 
     Act''; and
       (C) by striking ``during the 1989 through 1997 crop 
     years''.

     SEC. 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 peanuts.--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 

[[Page S964]]
     peanuts acquired multiplied by .55 percent of the applicable national 
     average loan rate; and
       (iii) remit the amounts required under clauses (i) and (ii) 
     to the Commodity Credit Corporation in a manner specified by 
     the Secretary.
       (B) Definition of first purchaser.--In this subsection, the 
     term ``first purchaser'' means a person acquiring peanuts 
     from a producer except that in the case of peanuts forfeited 
     by a producer to the Commodity Credit Corporation, the term 
     means the person acquiring the peanuts from the Commodity 
     Credit Corporation.
       (3) Other private marketings.--In the case of a private 
     marketing by a producer directly to a consumer through a 
     retail or wholesale outlet or in the case of a marketing by 
     the producer outside of the continental United States, the 
     producer shall be responsible for the full amount of the 
     assessment and shall remit the assessment by such time as is 
     specified by the Secretary.
       (4) Loan peanuts.--In the case of peanuts that are pledged 
     as collateral for a loan made under this section, \1/2\ of 
     the assessment shall be deducted from the proceeds of the 
     loan. The remainder of the assessment shall be paid by the 
     first purchaser of the peanuts. For purposes of computing net 
     gains on peanuts under this section, the reduction in loan 
     proceeds shall be treated as having been paid to the 
     producer.
       (5) Penalties.--If any person fails to collect or remit the 
     reduction required by this subsection or fails to comply with 
     the requirements for recordkeeping or otherwise as are 
     required by the Secretary to carry out this subsection, the 
     person shall be liable to the Secretary for a civil penalty 
     up to an amount determined by multiplying--
       (A) the quantity of peanuts involved in the violation; by
       (B) the national average quota peanut rate for the 
     applicable crop year.
       (6) Enforcement.--The Secretary may enforce this subsection 
     in the courts of the United States.
       (h) Crops.--Subsections (a) through (f) shall be effective 
     only for the 1996 through 2002 crops of peanuts.
       (i) Marketing Quotas.--
       (1) In general.--Part VI of subtitle B of title III of the 
     Agricultural Adjustment Act of 1938 is amended--
       (A) in section 358-1 (7 U.S.C. 1358-1)--
       (i) in the section heading, by striking ``1991 THROUGH 1997 
     CROPS OF'';
       (ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A), 
     (b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through 
     1997 marketing years'' each place it appears and inserting 
     ``marketing year'';
       (iii) in subsection (a)(3), by striking ``1990'' and 
     inserting ``1990, for the 1991 through 1995 marketing years, 
     and 1995, for the 1996 through 2002 marketing years'';
       (iv) in subsection (b)(1)(A)--

       (I) by striking ``each of the 1991 through 1997 marketing 
     years'' and inserting ``each marketing year''; and
       (II) in clause (i), by inserting before the semicolon the 
     following: ``, in the case of the 1991 through 1995 marketing 
     years, and the 1995 marketing year, in the case of the 1996 
     through 2002 marketing years''; and

       (v) in subsection (f), by striking ``1997'' and inserting 
     ``2002'';
       (B) in section 358b (7 U.S.C. 1358b)--
       (i) in the section heading, by striking ``1991 THROUGH 1995 
     CROPS OF''; and
       (ii) in subsection (c), by striking ``1995'' and inserting 
     ``2002'';
       (C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking 
     ``1995'' and inserting ``2002''; and
       (D) in section 358e (7 U.S.C. 1359a)--
       (i) in the section heading, by striking ``FOR 1991 THROUGH 
     1997 CROPS OF PEANUTS''; and
       (ii) in subsection (i), by striking ``1997'' and inserting 
     ``2002''.
       (2) Elimination of quota floor.--Section 358-1(a)(1) of the 
     Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second 
     sentence.
       (3) Temporary quota allocation.--Section 358-1 of the Act 
     (7 U.S.C. 1358-1) is amended--
       (A) in subsection (a)(1), by striking ``domestic edible, 
     seed,'' and inserting ``domestic edible use'';
       (B) in subsection (b)(2)--
       (i) in subparagraph (A), by striking ``subparagraph (B) and 
     subject to''; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Temporary quota allocation.--
       ``(i) Allocation related to seed peanuts.--Temporary 
     allocation of quota pounds for the marketing year only in 
     which the crop is planted shall be made to producers for each 
     of the 1996 through 2002 marketing years as provided in this 
     subparagraph.
       ``(ii) Quantity.--The temporary quota allocation shall be 
     equal to the pounds of seed peanuts planted on the farm, as 
     may be adjusted under regulations prescribed by the 
     Secretary.
       ``(iii) Additional quota.--The temporary allocation of 
     quota pounds under this paragraph shall be in addition to the 
     farm poundage quota otherwise established under this 
     subsection and shall be credited, for the applicable 
     marketing year only, in total to the producer of the peanuts 
     on the farm in a manner prescribed by the Secretary.
       ``(iv) Effect of other requirements.--Nothing in this 
     section alters or changes the requirements regarding the use 
     of quota and additional peanuts established by section 
     358e(b).''; and
       (C) in subsection (e)(3), strike ``and seed and use on a 
     farm''.
       (4) Undermarketings.--Part VI of subtitle B of title III of 
     the Act is amended--
       (A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
       (i) in paragraph (1)(B), by striking ``including--'' and 
     clauses (i) and (ii) and inserting ``including any increases 
     resulting from the allocation of quotas voluntarily released 
     for 1 year under paragraph (7).'';
       (ii) in paragraph (3)(B), by striking ``include--'' and 
     clauses (i) and (ii) and inserting ``include any increase 
     resulting from the allocation of quotas voluntarily released 
     for 1 year under paragraph (7).''; and
       (iii) by striking paragraphs (8) and (9); and
       (B) in section 358b(a) (7 U.S.C. 1358b(a))--
       (i) in paragraph (1), by striking ``(including any 
     applicable under marketings)'' both places it appears;
       (ii) in paragraph (1)(A), by striking ``of undermarketings 
     and'';
       (iii) in paragraph (2), by striking ``(including any 
     applicable under marketings)''; and
       (iv) in paragraph (3), by striking ``(including any 
     applicable undermarketings)''.
       (5) Disaster transfers.--Section 358-1(b) of the Act (7 
     U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(iii), is 
     further amended by adding at the end the following:
       ``(8) Disaster transfers.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     additional peanuts produced on a farm from which the quota 
     poundage was not harvested and marketed because of drought, 
     flood, or any other natural disaster, or any other condition 
     beyond the control of the producer, may be transferred to the 
     quota loan pool for pricing purposes on such basis as the 
     Secretary shall by regulation provide.
       ``(B) Limitation.--The poundage of peanuts transferred 
     under subparagraph (A) shall not exceed the difference 
     between--
       ``(i) the total quantity of peanuts meeting quality 
     requirements for domestic edible use, as determined by the 
     Secretary, marketed from the farm; and
       ``(ii) the total farm poundage quota, excluding quota 
     pounds transferred to the farm in the fall.
       ``(C) Support rate.--Peanuts transferred under this 
     paragraph shall be supported at not more than 70 percent of 
     the quota support rate for the marketing years in which the 
     transfers occur. The transfers for a farm shall not exceed 25 
     percent of the total farm quota pounds, excluding pounds 
     transferred in the fall.''.

     SEC. 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
     
[[Page S965]]

       (B) in the case of marketings during each of fiscal years 
     1997 through 2003, 1.375 percent of the loan rate established 
     under subsection (a) per pound of raw cane sugar, processed 
     by the processor from domestically produced sugarcane or 
     sugarcane molasses, that has been marketed (including the 
     transfer or delivery of the sugar to a refinery for further 
     processing or marketing).
       (2) Sugar beets.--Effective for marketings of beet sugar 
     during the 1996 through 2003 fiscal years, the first 
     processor of sugar beets shall remit to the Commodity Credit 
     Corporation a nonrefundable marketing assessment in an amount 
     equal to--
       (A) in the case of marketings during fiscal year 1996, 
     1.1794 percent of the loan rate established under subsection 
     (a) per pound of beet sugar, processed by the processor from 
     domestically produced sugar beets or sugar beet molasses, 
     that has been marketed; and
       (B) in the case of marketings during each of fiscal years 
     1997 through 2003, 1.47425 percent of the loan rate 
     established under subsection (a) per pound of beet sugar, 
     processed by the processor from domestically produced sugar 
     beets or sugar beet molasses, that has been marketed.
       (3) Collection.--
       (A) Timing.--A marketing assessment required under this 
     subsection shall be collected on a monthly basis and shall be 
     remitted to the Commodity Credit Corporation not later than 
     30 days after the end of each month. Any cane sugar or beet 
     sugar processed during a fiscal year that has not been 
     marketed by September 30 of the year shall be subject to 
     assessment on that date. The sugar shall not be subject to a 
     second assessment at the time that it is marketed.
       (B) Manner.--Subject to subparagraph (A), marketing 
     assessments shall be collected under this subsection in the 
     manner prescribed by the Secretary and shall be 
     nonrefundable.
       (4) Penalties.--If any person fails to remit the assessment 
     required by this subsection or fails to comply with such 
     requirements for recordkeeping or otherwise as are required 
     by the Secretary to carry out this subsection, the person 
     shall be liable to the Secretary for a civil penalty up to an 
     amount determined by multiplying--
       (A) the quantity of cane sugar or beet sugar involved in 
     the violation; by
       (B) the loan rate for the applicable crop of sugarcane or 
     sugar beets.
       (5) Enforcement.--The Secretary may enforce this subsection 
     in a court of the United States.
       (f) Forfeiture Penalty.--
       (1) In general.--A penalty shall be assessed on the 
     forfeiture of any sugar pledged as collateral for a 
     nonrecourse loan under this section.
       (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
     per pound.
       (3) Beet sugar.--The penalty for beet sugar shall bear the 
     same relation to the penalty for cane sugar as the marketing 
     assessment for sugar beets bears to the marketing assessment 
     for sugarcane.
       (4) Effect of forfeiture.--Any payments owed producers by a 
     processor that forfeits of any sugar pledged as collateral 
     for a nonrecourse loan shall be reduced in proportion to the 
     loan forfeiture penalty incurred by the processor.
       (g) Information Reporting.--
       (1) Duty of processors and refiners to report.--A sugarcane 
     processor, cane sugar refiner, and sugar beet processor shall 
     furnish the Secretary, on a monthly basis, such information 
     as the Secretary may require to administer sugar programs, 
     including the quantity of purchases of sugarcane, sugar 
     beets, and sugar, and production, importation, distribution, 
     and stock levels of sugar.
       (2) Penalty.--Any person willfully failing or refusing to 
     furnish the information, or furnishing willfully any false 
     information, shall be subject to a civil penalty of not more 
     than $10,000 for each such violation.
       (3) Monthly reports.--Taking into consideration the 
     information received under paragraph (1), the Secretary shall 
     publish on a monthly basis composite data on production, 
     imports, distribution, and stock levels of sugar.
       (h) Marketing Allotments.--Part VII of subtitle B of title 
     III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1359aa et seq.) is repealed.
       (i) Crops.--This section (other than subsection (h)) shall 
     be effective only for the 1996 through 2002 crops of sugar 
     beets and sugarcane.
                                 ______


                       COCHRAN AMENDMENT NO. 3351

  (Ordered to lie on the table.)
  Mr. COCHRAN submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       At the end of subtitle E of Title III add the following:

     SEC.  . WILDLIFE HABITAT INCENTIVES PROGRAM.

       The Secretary of Agriculture, in consultation with the 
     State Technical Committee, shall establish a program within 
     the Natural Resources Conservation Service to be known as the 
     Wildlife Habitat Incentives Program. The program shall make 
     cost-share payments to landowners to develop upland wildlife, 
     wetland wildlife, threatened and endangered species, 
     fisheries, and other types of wildlife habitat approved by 
     the Secretary. To carry out this section, $10,000,000 for 
     each of the fiscal years 1996 through 2002, shall be made 
     available from the program authorized by subchapter B of 
     Chapter 1 of Subtitle D of title XII of the Food Security Act 
     of 1985.
                                 ______


                    CONRAD AMENDMENTS NOS. 3352-3353

  (Ordered to lie on the table.)
  Mr. CONRAD submitted two amendments intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to amendment No. 3184 
proposed by Mr. Leahy to the bill S. 1541, supra; as follows:

                           Amendment No. 3352

       On page 4-45, strike lines 9 through 13 and insert the 
     following:
       ``The Secretary may not reschedule or reamortize a loan for 
     a borrower under this title who has not requested 
     consideration under section 331D(e) unless the borrower--
       ``(1) after paying all family living an operating expenses, 
     excluding interest, can pay a portion, as determined by the 
     Secretary, of the interest due on the loan;
       ``(2) has disposed of all normal income security; and
       ``(3) has satisfied any liens.
                                                                    ____


                           Amendment No. 3353

       On page 4-29, strike lines 21 and 22 and insert the 
     following:
       (i) by striking ``exceed 15 percent'' and all that follows 
     through ``Code'' and inserting the following: ``exceed--
       ``(i) 25 percent of the median acreage of the farms or 
     ranches, as the case may be, in the county in which the farm 
     or ranch operations of the applicant are located, as reported 
     in the most recent census of agriculture taken under section 
     142 of title 13, United States Code; and
       ``(ii) 40 percent of the national average acreage of the 
     farms or ranches, as the case may be, engaged in the type of 
     commodity or livestock operation in which the farmer or 
     rancher is engaged, as determined by the Secretary''; and
                                 ______


                       CONRAD AMENDMENT NO. 3354

  (Ordered to lie on the table.)
  Mr. CONRAD submitted an amendment intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to the bill S. 1541, supra; 
as follows:

       In Section 381E(c)(3) of Sec. 561, Rural Community 
     Advancement Program, of Title V--Rural Development, strike 
     the following: ``; and
       ``(D) grants to broadcasting systems provided under section 
     310B(f)''.
                                 ______


                       CONRAD AMENDMENT NO. 3355

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

       Title I is amended by--
       (1) striking ``2002'' each place it appears and inserting 
     ``1998'';
       (2) striking ``2003'' each place it appears and inserting 
     ``1999'';
       (3) in section 103 striking subsections (d) through (f) and 
     inserting the following:
       ``(e) Contract Payments.--
       ``(1) In general.--The Secretary shall provide advanced and 
     final payments to owners and operators in accordance with the 
     this subsection.
       ``(2) Advanced payments.--
       ``(A) In general.--An owner or operator shall receive an 
     advanced payment by June 15 for the 1996 fiscal year and 
     December 15 for the 1997 and 1998 fiscal years which 
     represents the product of--
       ``(i) the applicable payment rate described in subparagraph 
     (B);
       ``(ii) the farm program payment yield; and
       ``(iii) 85 percent of the contract acreage.
       ``(B) Payment rate.--The payment rate shall be--
       ``(i) for corn, $.16 per bushel;
       ``(ii) for grain sorghum, $.19 per bushel;
       ``(iii) for barley, $.12 per bushel;
       ``(iv) for oats, $.02 per bushel;
       ``(v) for wheat, $.27 per bushel;
       ``(vi) for rice, $1.14 per hundredweight; and
       ``(vii) for upland cotton, $.032 per pound.
       ``(3) Final payment.--
       ``(A) In general.--The Secretary shall make a final payment 
     which represents the county rate described in subparagraph 
     (B) multiplied by lessor of--
       ``(i) 85 percent of the contract acreage; or
       ``(ii) contract acreage planted to the contract commodity
       ``(B) County rate.--The county rate is the difference 
     between the target county revenue described in clause (i) and 
     the current county revenue described in clause (ii).
       ``(i) Target county revenue.--The target county revenue 
     shall equal to the product of--
       ``(I) the five year average county yield for the contract 
     commodity, excluding the year in which the average yield was 
     the highest and the lowest; and
       ``(II) the established price for the commodity for the 1995 
     crop.
       ``(ii) Current county revenue.--The current county revenue 
     shall equal the product of--
       ``(I) the average price for the contract commodity for the 
     first five months of the marketing year; and
     
[[Page S966]]

       ``(II) the county average yield for the contract commodity.
       ``(iii) Limitation.--The final payment shall be reduced by 
     the advanced payment, but in no case shall the final payment 
     be less than zero.''
       (4) in section 104(b) by striking paragraphs (1)(A)(ii), 
     (2)(A)(ii), (3)(B), and (4)(B).
                                 ______


                 CONRAD (AND HEFLIN) AMENDMENT NO. 3356

  (Ordered to lie on the table.)
  Mr. CONRAD (for himself and Mr. Heflin) submitted an amendment 
intended to be proposed by him to amendment No. 3252 submitted by Mr. 
Lugar to the bill S. 1541, supra; as follows:

       Beginning on page 5-86, strike line 11 and all that follows 
     through page 5-87, line 11, and insert the following:
       ``(3) Rural business and cooperative development.--The 
     rural business and cooperative development category shall 
     include funds made available for--
       ``(A) rural business opportunity grants provided under 
     section 306(a)(11)(A);
       ``(B) business and industry guaranteed loans provided under 
     section 310B(a)(1); and
       ``(C) rural business enterprise grants and rural 
     educational network grants provided under section 310B(c).
       ``(d) Other Programs.--Subject to subsection (e), in 
     addition to any other appropriated amounts, the Secretary may 
     transfer amounts allocated for a State for any of the 3 
     function categories for a fiscal year under subsection (c) 
     to--
       ``(1) mutual and self-help housing grants provided under 
     section 523 of the Housing Act of 1949 (42 U.S.C. 1490c);
       ``(2) rural rental housing loans for existing housing 
     provided under section 515 of the Housing Act of 1949 (42 
     U.S.C. 1485);
       ``(3) rural cooperative development grants provided under 
     section 310B(e); and
       ``(4) grants to broadcasting systems provided under section 
     310B(f).
                                 ______


                 CONRAD (AND HEFLIN) AMENDMENT NO. 3357

  (Ordered to lie on the table.)
  Mr. CONRAD (for himself and Mr. Heflin) submitted an amendment 
intended to be proposed by him to an amendment submitted by Mr. Lugar 
to an amendment submitted by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       On page 4-28, strike line 16 and insert the following: 
     (U.S.C. 488 et seq.)
       ``(IV) Limitations on liquidations.--In the case of a 
     default by a borrower on a loan made or guaranteed under this 
     title involving a security interest in tribal allotted or 
     trust land, the Secretary shall only pursue liquidation after 
     offering to transfer the land to an eligible tribal member, 
     the tribe, or the Secretary of the Interior. If the Secretary 
     subsequently proceeds to liquidate the loan, the Secretary 
     shall not transfer or otherwise dispose of or alienate the 
     land except to 1 of the persons described in the preceding 
     sentence. The Secretary shall not be required to make any 
     payment in lieu of taxes on property held under this 
     subclause.'';
                                 ______


                       CONRAD AMENDMENT NO. 3358

  (Ordered to lie on the table.)
  Mr. CONRAD submitted an amendment intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to the bill S. 1541, supra; 
as follows:

       In Section 547(e)(3) of Subtitle B--Amendments to the 
     Consolidated Farm and Rural Development Act of Title V--Rural 
     Development of Amendment #3252 submitted by Senator Lugar, 
     strike ``, and rural businesses''.
                                 ______


                    LEVIN AMENDMENTS NOS. 3359-3361

  (Ordered to lie on the table.)
  Mr. LEVIN submitted three amendments intended to be proposed by him 
to amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; 
as follows:

                           Amendment No. 3359

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

     SEC.  . ELIGIBILITY AND ADMINISTRATIVE REQUIREMENTS OF THE 
                   MARKET PROMOTION PROGRAM.

       Section 203 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5623) is amended by adding at the end the following:
       ``(h) Eligibility and Administrative Requirements.--As a 
     criterion of eligibility for participation in the market 
     promotion program, the Secretary may not require--
       ``(1) a commodity organization to establish or support a 
     full-time administrative office in Washington, D.C., or 
     elsewhere; or
       ``(2) an organization of producers of a type of a commodity 
     to contribute a portion of matching market promotion program 
     expenditures of an organization representing producers of the 
     entire commodity.''.
                                                                    ____


                           Amendment No. 3360

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

     SEC.  . BIOLOGICAL-CONTROL ORGANISMS.

       (a) Guide.--The Administrator of the Environmental 
     Protection Agency and the Secretary of Agriculture shall 
     jointly develop and publish a guide to risk criteria, data 
     requirements, and oversight procedures that apply to 
     importation, movement, introduction, testing, and 
     registration or release of biological-control organisms or 
     products.
       (b) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Administrator and the Secretary 
     shall make recommendations to Congress based on the guide for 
     changing the law to improve the process of registration or 
     release and the oversight of biological-control organisms and 
     products.
                                                                    ____


                           Amendment No. 3361

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

     SEC.   . GREAT LAKES SOIL EROSION AND SEDIMENT CONTROL 
                   PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish a Great Lakes Soil Erosion and Sediment Control 
     Program.
       (b) Grants.--Under the Program, the Natural Resources 
     Conservation Service, in consultation with the Great Lakes 
     Commission (established under Article IV of the Great Lakes 
     Compact of which Congress granted consent in the Act of July 
     24, 1968, Public Law 90-419) shall provide grants to persons 
     to demonstrate innovative approaches to controlling and 
     reducing the loss of soil in the Great Lakes Basin.
       (c) Authorization.--There is authorized to be appropriated 
     to carry out this section a total of $5,000,000 for fiscal 
     years 1996 through 2001.
                                 ______


                    HARKIN AMENDMENTS NOS. 3362-3363

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

                           Amendment No. 3362

       Strike section 505 and insert the following:

     ``SEC. 505. EXPORT ENHANCEMENT PROGRAM.

       ``Notwithstanding section 203, the Commodity Credit 
     Corporation shall make available to carry out the program 
     established under the Agricultural Trade Act of 1978 (7 
     U.S.C. 5651(e)(1)) not more than:
       ``(A) $312,857,144 for fiscal year 1996;
       ``(B) $312,857,144 for fiscal year 1997;
       ``(C) $462,857,144 for fiscal year 1998;
       ``(D) $512,857,144 for fiscal year 1999;
       ``(E) $541,857,144 for fiscal year 2000;
       ``(F) $440,857,144 for fiscal year 2001; and
       ``(G) $440,857,144 for fiscal year 2002.''
                                                                    ____


                           Amendment No. 3363

       On page 5-10, strike line 8 and all that follows through 
     line 15.
                                 ______


                       HARKIN AMENDMENT NO. 3364

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

       Section 104(b) is amended by adding at the end the 
     following:
       ``(7) Local loan rates.--The Secretary may not reduce the 
     loan rate for a crop in a county by an amount in excess of 3 
     percent of the national loan rate.
                                 ______


                    HARKIN AMENDMENTS NOS. 3365-3366

  (Ordered to lie on the table.)
  Mr. HARKIN submitted two amendments intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

                           Amendment No. 3365

       On page 1-17, line 21, after ``15 percent'', insert the 
     following: ``(or in the case of a producer participating in 
     the Integrated Farm Management Program Option established 
     under section 1451 of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5822), which is authorized to 
     be carried out through the end of calendar year 2002, 30 
     percent)''.
                                                                    ____


                           Amendment No. 3366

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

     SEC. 3  . INTEGRATED FARM MANAGEMENT PROGRAM OPTION.

       Section 1451 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5822) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) Resource-conserving crop.--The term `resource-
     conserving crop' means--
       ``(i)(I) any legume, grass, brassica cover crop or forage, 
     or alternative crop; and
       ``(II) any interseeded or relay-planted combination of a 
     crop described in subclause (I);
       ``(ii) any interseeded or relay-planted combination of a 
     crop described in subclause (I) and a small grain; and
       ``(iii) such other crops as the Secretary may designate.''; 
     and
     (B) in paragraph (2)--
       (i) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Legume.--The term `legume' means any legume grown for 
     use as a forage, green 

[[Page S967]]
     manure, or biomass feedstock, but not including any pulse crop from 
     which seeds are harvested and sold for a purpose other than 
     use as seed for planting.'';
       (ii) in subparagraph (D), by striking ``grown in arid and 
     semiarid regions''; and
       (iii) by adding at the end the following:
       ``(E) Special conservation practice.--The term `special 
     conservation practice' means establishment of--
       ``(i) a field border, contour grass strip, grass waterway, 
     filterstrip, grass windbreak, buffer area, wildlife habitat 
     planting, or habitat planting for beneficial organisms that 
     aid in the control of pests; and
       ``(ii) such other practices as the Secretary may 
     designate.'';
       (2) in subsection (d), by striking ``1995'' and inserting 
     ``2002'';
       (3) in subsection (f)--
       (A) in paragraph (2), by inserting ``or special 
     conservation practice'' and ``rotation''; and
       (B) in paragraph (3), by inserting ``or special 
     conservation practice'' after ``rotation''; and (4) in 
     subsection (h)--
       (A) in paragraph (5)(A), by striking ``such acreage'' each 
     place it appears and inserting ``any such acreage in excess 
     of 30 percent of the crop acreage bases enrolled in the 
     program''; and
       (B) by striking paragraph (7).
                                 ______


                       HARKIN AMENDMENT NO. 3367

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

       Section 314 is amended by striking ``(ii) 10,000 beef 
     cattle'' and all that follows through ``lambs;'' and 
     inserting the following:
       ``(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.''
                                 ______


                    HARKIN AMENDMENTS NOS. 3368-3372

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

                           Amendment No. 3368

       On page 1-26, strike line 16 and all that follows through 
     line 25 and insert the following:
       (6) Oilseeds.--
       (A) Soybeans.--The loan rate for a marketing assistance 
     loan for soybeans shall be--
       Not less than 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.
       (B) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 
     loan for sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed shall be--
       Not less than 90 percent of the simple average price 
     received by producers of sunflower seed, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of sunflower seed, 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. 3369

       On page 1-26, strike line 16 and all that follows through 
     line 25 and insert the following:
       (6) Oilseeds.--
       (A) Soybeans.--The loan rate for a marketing assistance 
     loan for soybeans shall be--
       Not less than 85 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.
       (B) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 
     loan for sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed shall be--
       Not less than 85 percent of the simple average price 
     received by producers of sunflower seed, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of sunflower seed, 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. 3370

       Beginning on page 1-21, strike line 5 and all that follows 
     through page 1-26, line 25, and insert the following:
       (1) Wheat.--
       (A) Loan rate.--Subject to subparagraph (B), the loan rate 
     for a marketing assistance loan for wheat shall be not less 
     than 90 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.
       (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 
     not less than 90 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.
       (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--
       Not less than 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.
       (B) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 


[[Page S968]]
     loan for sunflower seed, canola, rapeseed, safflower, mustard seed, and 
     flaxseed shall be--
       Not less than 90 percent of the simple average price 
     received by producers of sunflower seed, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of sunflower seed, 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. 3371

       Beginning on page 1-21, strike line 5 and all that follows 
     through page 1-23, line 3, and insert the following:
       (1) Wheat.--
       (A) Loan rate.--Subject to subparagraph (B), the loan rate 
     for a marketing assistance loan for wheat 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.
       (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 
     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.
                                                                    ____


                           Amendment No. 3372

       At the appropriate place insert the following new section:

     SEC.   . RESEARCH PROGRAM FOR DESIGNING FOODS TO IMPROVE 
                   HUMAN NUTRITION.

       Section 1427 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3177) is 
     amended to read as follows:

     ``SEC. 1427. RESEARCH PROGRAM FOR DESIGNING FOODS TO IMPROVE 
                   HUMAN NUTRITION.

       ``(a) Authority of Secretary.--
       ``(1) In general.--The Secretary may establish, and award 
     grants for projects for, coordinated interdisciplinary 
     research into--
       ``(A) food selection and consumption;
       ``(B) the nutritional composition and nutrient utilization 
     of foods; and
       ``(C) designing and developing new foods for improving 
     human nutrition and health.
       ``(2) Emphasis of research.--In administering human 
     nutrition research projects under this section, the Secretary 
     shall give specific emphasis to--
       ``(A) designing and developing new foods, and improving 
     food production and processing, to improve the nutritional 
     quality of the food supply with considerations for consumer 
     preferences and economic factors;
       ``(B) identifying the food components and other factors in 
     agricultural commodities and food products that affect 
     nutrient bioavailability, nutrient utilization and health 
     maintenance;
       ``(C) evaluating nutrient utilization and function to 
     determine which nutrients should be emphasized in designing 
     new foods and making food selection recommendations; and
       ``(D) identifying the determinants of food selection and 
     consumption and developing educational strategies for 
     improving food selection and consumption patterns.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for fiscal years 1996 through 2002.''.
                                 ______


                       HARKIN AMENDMENT NO. 3373

  (Ordered to lie on the table.)
  Mr. HARKIN submitted an amendment intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to amendment No. 3184 
proposed by Mr. Leahy to the bill S. 1541, supra; as follows:

       At the appropriate place insert the following new section:

     SEC.   . AMERICA'S AGRICULTURAL HERITAGE PARTNERSHIP.

       (a) Findings and Purpose.--
       The Congress finds that--
       (1) the city of Waterloo, Iowa, and northeast Iowa of the 
     State possess many important elements of the nationally 
     significant story of American agriculture, including Native 
     American agriculture, agricultural mechanization, seed 
     hybridization, farm cooperative movements, rural 
     electrification, farm-to-market systems, rural to urban 
     migration, veterinary practice, food processing and 
     preservation, national farm organizations, international 
     hunger relief, and the development of national and 
     international agribusiness;
       (2) these resources offer outstanding and unique 
     opportunities to acknowledge and appreciate the development 
     of American agriculture;
       (3) the National Park Service has determined that the story 
     of American agriculture is nationally significant, that 
     northeast Iowa is an ideal place to tell that story, and that 
     this story could be divided into 4 principal topics for 
     interpretation in northeast Iowa: the Amazing Science of 
     Agriculture, Agriculture as a Way of Life, Organizing for 
     Survival, and Crops from Field to Table;
       (4) the responsibility for interpreting, retaining, 
     enhancing, and promoting the resources, values, and amenities 
     of Waterloo, Iowa and northeast Iowa resides with volunteer 
     associations, private businesses, political subdivisions of 
     the State, and the State of Iowa; and
       (5) despite the efforts by volunteer associations, private 
     businesses, political subdivisions of the State, and the 
     State of Iowa, the cultural and historical resources of the 
     area have not realized full potential and may be lost without 
     some assistance from the Federal Government.
       (b) Purposes.--The purposes of this Act are--
       (1) to interpret, retain, enhance, and promote the unique 
     and significant contributions to national and international 
     agriculture of certain natural, historic, and cultural 
     resources within Waterloo, Iowa, and northeast Iowa;
       (2) to provide a partnership management framework to assist 
     volunteer associations, private businesses, political 
     subdivisions of the State, and the State of Iowa in 
     developing and implementing Management Plan policies and 
     programs that will assist in the interpretation, retention, 
     enhancement, and promotion of the cultural, natural, and 
     recreational resources of northeast Iowa;
       (3) to allow for local, State, and Federal contributions 
     through limited grants and technical assistance to create 
     America's Agricultural Heritage Partnership through 
     cooperative agreements among volunteer associations, private 
     businesses, political subdivisions of the State, the State of 
     Iowa, and residents of the area; and
       (4) to provide for an economically self-sustaining 
     Partnership for the educational and inspirational benefit of 
     current and future generations concerning the story of 
     American agriculture.
       (c) Definitions.
       As used in this Act:
       (1) Partnership.--The term ``Partnership'' means the 
     America's Agricultural Heritage Partnership as established by 
     section 3(a).
       (2) Management entity.--The term ``management entity'' 
     means the management entity as established by section 4(a).
       (3) Political subdivision.--The term ``political 
     subdivision'' means a political subdivision of the State of 
     Iowa, any part of which is located in or adjacent to the area 
     in which the Partnership's Activities occur, including a 
     county, city, or town.
       (4) State.--The term ``State'' means the State of Iowa.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (6) Partnership management plan.--The term ``Partnership 
     Management Plan'' means the plan as established in section 
     5(a).
       (7) Activities.--The term ``activities'' means the 
     activities limited in section 3(b).
       (d) Establishment of the America's Agricultural Heritage 
     Partnership.
       (1) Establishment.--To carry out this Act, there is 
     established in the State of Iowa the America's Agricultural 
     Heritage Partnership upon publication by the Secretary in the 
     Federal Register of notice that a Partnership Management Plan 
     has been approved by the Secretary.
       (2) Activities.--The Partnership's activities shall be 
     limited to the counties of northeast Iowa that are generally 
     depicted in ``Alternatives #2 and #3'' described in the 1995 
     National Park Service ``Special Resource Study, Cedar Valley, 
     Iowa.''.
       (3) Participation.--Nothing in this Act shall require any 
     resident located in the area in which the Partnership's 
     activities occur to participate in or be associated with the 
     Partnership or the Partnership's activities.
       (4) Affiliations.--Nothing in this Act shall prohibit 
     future affiliations or designations of the Partnership or 
     Partnership Management Entity.
       (5) Grants, Technical Assistance, and Cooperative 
     Agreements.--
       (A) Grants and technical assistance.--The Secretary may 
     make grants and provide technical assistance to America's 
     Agricultural Heritage Partnership to assist it in carrying 
     out its purposes.
       (B) Cooperative agreements.--The Secretary is authorized to 
     enter into cooperative agreements with private entities, the 
     State of Iowa, or any political subdivision thereof, and 
     other Federal entities, to further the purposes of this Act, 
     the Partnership, or the Partnership Management Entity.
       (e) Establishment of the America's Agricultural Heritage 
     Partnership Management Entity.
       (1) Establishment.--There is established a management 
     entity for the Partnership 

[[Page S969]]
     based on the ``Management Option #5'' outlined in the 1995 National 
     Park Service ``Special Resource Study, Cedar Valley, Iowa'' 
     and subject to the approval of the Secretary.
       (2) Partnership management plan.--The Partnership 
     management entity shall be established in the Partnership 
     Management Plan as established in section 5(a).
       (3) Composition.--The membership of the management entity 
     may include persons affiliated with the following entities: 
     the American Association of Museums, American Farm Bureau, 
     National Farmers Union, American Farmland Trust, Effigy 
     Mounds National Monument and Herbert Hoover National Historic 
     Site, Iowa Department of Agriculture and Land Stewardship, 
     Iowa Department of Corrections, Iowa Department of 
     Cultural Affairs, Iowa Department of Economic Development, 
     National Trust for Historic Preservation, Smithsonian 
     Institution, the State Historic Preservation Office of the 
     State of Iowa, United States Department of Agriculture, 
     United States Department of Transportation and the 
     America's Agricultural/Industrial Heritage Landscape, Inc.
       (f) Partnership Management Plan.--
       (1) Preparation of partnership management plan.--A 
     Partnership Management Plan shall be submitted to the 
     Secretary for approval no later than one year after the date 
     of the enactment of this Act.
       (2) Assistance.--The Secretary may provide technical 
     assistance in the preparation of the Partnership Management 
     Plan.
       (g) Land Use Regulation and Private Property Protection.--
       (1) Regulation.--Nothing in this Act shall be construed to 
     modify, enlarge, or diminish any authority of Federal, State, 
     and local governments to regulate any use of privately owned 
     land than that provided by current law or regulation.
       (2) Land use.--Nothing in this Act shall be construed to 
     grant the powers of zoning, land use or condemnation to the 
     Partnership Management Entity, the Secretary or any other 
     Federal, State, or local government entity.
       (h) Authorization.--
       (1) In general.--There is authorized to be appropriated not 
     more than $400,000 annually for grants and technical 
     assistance under sections 3(e)(1) and 5(b).
       (2) Percent of cost.--Federal funding under sections 
     3(e)(1) and 5(b) shall not exceed 50 percent of the total 
     cost of the grant or technical assistance provided under such 
     section.
                                 ______


                       HARKIN AMENDMENT NO. 3374

  (Ordered to lie on the table.)
  Mr. HARKIN submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy 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. Suspension of permanent price support authority.
Sec. 108. Extension of related price support provisions.
Sec. 109. Crop insurance administrative fee.
Sec. 110. 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.--The Secretary shall make available 
     to producers on a farm 50 percent of the projected payment 
     under this subsection at the time the producers agree to 
     participate in the program.
       ``(6) Environmental reserve program.--
       ``(A) In general.--The Secretary may enter into 1 to 5 year 
     contracts with producers on a farm referred to in paragraph 
     (2) for the purposes of enrolling flexible acreage base for 
     conserving use purposes.
       ``(B) Limitation.--Flexible acreage base enrolled in the 
     environmental reserve program shall not be eligible for 
     benefits provided in paragraph (5)(B).
       ``(c) Marketing Loans.--
       ``(1) In general.--The Secretary shall make available to 
     producers on a farm marketing loans for each of the 1996 
     through 2002 crops of covered commodities produced on the 
     farm.
       ``(2) Eligibility.--
       ``(A) In general.--To be eligible for a loan under this 
     subsection, the producers on a farm may not plant covered 
     commodities on the farm in excess of the flexible acreage 
     base of the farm determined under section 502.
       ``(B) Amount.--The Secretary shall provide marketing loans 
     for their normal production of covered commodities produced 
     on a farm.
       ``(3) Loan rate.--
       ``(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.--
     
[[Page S970]]

       ``(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.--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.''.

     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.--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.''.

     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
       (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)''.
     
[[Page S971]]


     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''; and
       (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.
       ``(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, 

[[Page S972]]
     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. 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. 108. 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--
       (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. 109. 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. 110. 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 

[[Page S973]]
     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--
       ``(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''.
     
[[Page S974]]


     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''.
                                 ______


                        leahy amendment no. 3375

  (Ordered to lie on the table.)
  Mr. LEAHY submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       Title V is amended by adding at the end the following:

     ``SEC 507 FUND FOR RURAL AMERICA.

       ``(a) In General.--The Secretary shall create an account 
     called the Fund for Rural America for the purposes of 
     providing funds for activities described in subsection (c).
       ``(b) Commodity Credit Corporation.--In each of the 1996 
     through 1998 fiscal years, the Secretary shall transfer into 
     the Fund for Rural America (hereafter referred to as the 
     ``Account'')--
       ``(1) $50,000,000 for the 1996 fiscal year;
       ``(2) $100,000,000 for the 1997 fiscal year; and
       ``(3) $150,000,000 for the 1998 fiscal year.
       ``(c) Purposes.--Except as provided in subsection (d), the 
     Secretary shall provide not more than one-third of the funds 
     from the Account for activities described in paragraph (2).
       ``(1) Rural Development Activities.--The Secretary may use 
     the funds in the Account for the following rural development 
     activities authorized in:
       ``(A) The Housing Act of 1949 for--
       ``(i) direct loans to low income borrowers pursuant to 
     section 502;
       ``(ii) loans for financial assistance for housing for 
     domestic farm laborers pursuant to section 514;
       ``(iii) financial assistance for housing of domestic farm 
     labor pursuant to section 516;
       ``(iv) grants and contracts for mutual and self help 
     housing pursuant to section 523(b)(1)(A); and
       ``(v) grants for Rural housing preservation pursuant to 
     section 533;
       ``(B) The Food Security Act of 1985 for loans to 
     intermediary borrowers, under the Rural Development Loan 
     Fund;
       ``(C) Consolidated Farm and Rural Development Act for--
       ``(i) grants for Rural Business Enterprises pursuant to 
     section 310B (c) and (j);
       ``(ii) direct loans, loan guarantees and grants for water 
     and waste water projects pursuant to section 306; and
       ``(iii) down payments assistance to farmers, section 310E;
       ``(D) grants for outreach to socially disadvantaged farmers 
     and ranchers pursuant to section 2501 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     2279); and
       ``(E) grants pursuant to section 204(6) of the Agricultural 
     Marketing Act of 1946.
       ``(2) Research.--
       ``(A) In General.--The Secretary may use the funds in the 
     Account for research grants to increase the competitiveness 
     and farm profitability, protect and enhance natural 
     resources, increase economic opportunities in farming and 
     rural communities and expand locally owned value added 
     processing and marketing operations.
       ``(B) Eligible Grantee.--The Secretary may make a grant 
     under this paragraph to--
       ``(i) a college or university;
       ``(ii) a State agricultural experiment station;
       ``(iii) a State Cooperative Extension Service;
       ``(iv) a research institution or organization;
       ``(v) a private organization or person; or
       ``(iv) A Federal agency.
       ``(C) Use of Grant.--
       ``(i) In general.--A grant made under this paragraph may be 
     used by a grantee for 1 or more of the following uses:
       ``(I) research, ranging from discover to principles of 
     application;
       ``(II) extension and related private-sector activities; and
       ``(III) education.
       ``(ii) Limitation.--No grant shall be made for any project, 
     determined by the Secretary, to be eligible for funding under 
     research and commodity promotion programs administered by the 
     Department.
       ``(D) Administration.--
       ``(i) Priority.--In administering this paragraph, the 
     Secretary shall--
       ``(I) establish priorities for allocating grants, based on 
     needs and opportunities of the food and agriculture system in 
     the United States related to the goals of the paragraph.
       ``(II) seek and accept proposals for grants;
       ``(III) determine the relevance and merit of proposals 
     through a system of peer and stakeholder review; and
       ``(IV) award grants on the basis of merit, quality, and 
     relevance to advancing the national research and extension 
     purposes.
       ``(ii) Competitive awarding.--A grant under this paragraph 
     shall be awarded on a competitive basis.
       ``(iii) Terms.--A grant under this paragraph shall have a 
     term that does not exceed 5 years.
       ``(iv) Matching funds.--As a condition of receipts under 
     this paragraph, the Secretary shall require the funding of 
     the grant with equal matching funds from a non-Federal source 
     if the grant is--
       ``(I) for applied research that is commodity-specific; and
       ``(II) not of national scope.
       ``(v) Administrative costs.--
       ``(I) In general.--The Secretary may use not more than 4 
     percent of the funds made available under this paragraph for 
     administrative costs incurred by the Secretary in carrying 
     out this paragraph.
       ``(II) Limitation.--Funds made available under this 
     paragraph shall not be used--
       ``(aa) for the construction of a new building or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building (including site grading and improvement and 
     architect fees); or
       ``(bb) in excess of ten percent of the annual allocation 
     for commodity-specific projects not of the national scope.
       ``(d) Limitations.--No funds from the Fund for Rural 
     America may be used for an activity specified in subsection 
     (c) if the current level of appropriations for the activity 
     is less than 90 percent of the 1996 fiscal year 
     appropriations for the activity adjusted for inflation.''
                                 ______


                      FEINGOLD AMENDMENT NO. 3376

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

       At the appropriate place 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.''
                                 ______


                 BUMPERS (AND PRYOR) AMENDMENT NO. 3377

  (Ordered to lie on the table.)
  Mr. BUMPERS (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by them to amendment No. 3184 proposed by Mr. 
Leahy to the bill S. 1541, supra; as follows:

       At the appropriate place in the bill, add the following: 
     ``Any funds deemed as mandatory spending for programs 
     authorized by this Act that previously were, or substantially 
     were, deemed discretionary shall not become available for 
     obligation as mandatory spending in any fiscal year in which 
     the discretionary allocation to the relevant appropriations 
     subcommittees of the House of Representatives and the Senate 
     are at levels lower than those of the previous fiscal year.''
                                 ______


                      HATFIELD AMENDMENT NO. 3378

  (Ordered to lie on the table.)
  Mr. HATFIELD submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       At the appropriate place, insert the following:

     SEC.  . ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

       Section 310B(j) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(j)) is amended by striking 
     ``Systems.--The'' and inserting the following: ``Systems.--
       ``(1) Definition of statewide.--In this subsection, the 
     term `statewide' means having a coverage area of not less 
     than 90 percent of the population of a State and 80 percent 
     of the rural land area of the State (as determined by the 
     Secretary).
       ``(2) Grants.--The''.
                                 ______


                       HARKIN AMENDMENT NO. 3379

  (Ordered to lie on the table.) 
  
[[Page S975]]

  Mr. HARKIN submitted an amendment intended to be proposed by him to 
the bill S. 1541, supra; as follows:

       Section 105(b)(3) is amended by striking (A) and inserting 
     the following:
       ``(A) by striking subsection (a) and inserting the 
     following:
       ``(a) Direct Attribution.--The Secretary shall attribute 
     payments specified in section 1001 to persons who receive the 
     payments directly and attribute payments received by entities 
     to the individuals who own such entities in proportion to 
     their ownership interest in the entity.''
                                 ______


                       HEFLIN AMENDMENT NO. 3380

  (Ordered to lie on the table.)
  Mr. HEFLIN submitted an amendment intended to be proposed by him to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       Strike the section relating to the peanut program and 
     insert the following:

     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 $678 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.--
       (A) Rates.--Subject to subparagraph (B), 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.
       (B) Limitation.--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 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 peanuts.--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 sum of--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool; 
     and
       (II) an amount from all additional pool gains equal to any 
     loss on the disposition of all peanuts in the pool for quota 
     peanuts.

       (ii) Additional peanuts.--For additional peanuts, the 
     difference between--

       (I) the net gains over and above the loan indebtedness and 
     other costs or losses incurred on peanuts placed in the pool 
     for additional peanuts; and
       (II) any amount allocated to offset any loss on the pool 
     for quota 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) Additional peanut gains.--Further losses in an area 
     quota pool shall be offset by gains or profits attributable 
     to sales of additional peanuts in that area for domestic 
     edible and other uses.
       (4) Use of marketing assessments.--The Secretary shall use 
     funds collected under subsection (g) 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.
       (5) 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 
     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.
       (6) 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. 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--
     
[[Page S976]]

       (i) collect from the producer a marketing assessment equal 
     to the quantity of peanuts acquired multiplied by--

       (I) in the case of each of the 1994 and 1995 crops, .55 
     percent of the applicable national average loan rate;
       (II) in the case of the 1996 crop, .6 percent of the 
     applicable national average loan rate; and
       (III) in the case of each of the 1997 through 2002 crops, 
     .65 percent of the applicable national average loan rate;

       (ii) pay, in addition to the amount collected under clause 
     (i), a marketing assessment in an amount equal to the 
     quantity of peanuts acquired multiplied by .55 percent of the 
     applicable national average loan rate; and
       (iii) remit the amounts required under clauses (i) and (ii) 
     to the Commodity Credit Corporation in a manner specified by 
     the Secretary.
       (B) Imported peanuts.--In the case of imported peanuts, the 
     first purchaser shall pay to the Commodity Credit 
     Corporation, in a manner specified by the Secretary, a 
     marketing assessment in an amount equal to the quantity of 
     peanuts acquired multiplied by 1.2 percent of the national 
     average support rate for additional peanuts.
       (C) 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 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.''.
       (6) Transfers of farm poundage quotas.--Section 358b(a) of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b(a)) 
     is amended by adding at the end the following:
       ``(4) Transfers between states having quotas of less than 
     10,000 tons.--Notwithstanding paragraphs (1) through (3), 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 up 
     to 1,000 tons may be transferred by sale or lease from a farm 
     in 1 such State to a farm in another such State.''.
                                 ______


                      FEINGOLD AMENDMENT NO. 3381

  (Ordered to lie on the table.)
  Mr. HATFIELD submitted an amendment intended to be proposed by him to 
amendment No. 3247 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       Strike section(e) and in lieu thereof 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 

[[Page S977]]
     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.''.
                                 ______


                 BUMPERS (AND PRYOR) AMENDMENT NO. 3382

  (Ordered to lie on the table.)
  Mr. BUMPERS (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by them to amendment No. 3184 proposed by Mr. 
Leahy to the bill S. 1541, supra; as follows:

       At the appropriate place in the bill, add the following: 
     ``Any producer of a crop of rice in 1996 shall have the 
     option of operating under the terms and conditions of either 
     a program announced by the Secretary or any program 
     administered under the authorities of legislation enacted 
     subsequent to the announcement.
                                 ______


                   D'AMATO AMENDMENTS NOS. 3383-3388

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

                           Amendment No. 3383

       At the appropriate place, insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.35.
       (B) During calendar year 1997, $10.25.
       (C) During calendar year 1998, $10.15.
       (D) During calendar year 1999, $10.05.
       (E) During calendar year 2000, $9.95.
       (F) During calendar year 2001, $9.85.
       (G) During calendar year 2002, $9.75.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3384

       At the appropriate place, insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.30.
       (B) During calendar year 1997, $10.20.
       (C) During calendar year 1998, $10.10.
       (D) During calendar year 1999, $10.00.
       (E) During calendar year 2000, $9.90.
       (F) During calendar year 2001, $9.80.
       (G) During calendar year 2002, $9.70.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
     
[[Page S978]]

       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3385

       At the appropriate place, insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.25.
       (B) During calendar year 1997, $10.15.
       (C) During calendar year 1998, $10.05.
       (D) During calendar year 1999, $9.95.
       (E) During calendar year 2000, $9.85.
       (F) During calendar year 2001, $9.75.
       (G) During calendar year 2002, $9.65.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
     
[[Page S979]]

       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3386

       At the appropriate place, insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.20.
       (B) During calendar year 1997, $10.10.
       (C) During calendar year 1998, $10.00.
       (D) During calendar year 1999, $9.90.
       (E) During calendar year 2000, $9.80.
       (F) During calendar year 2001, $9.70.
       (G) During calendar year 2002, $9.60.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3387

       At the appropriate place, insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the 

[[Page S980]]
     Secretary of Agriculture (referred to in this section as the 
     ``Secretary'') shall support the price of milk produced in 
     the 48 contiguous States through the purchase of cheese, 
     butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.15.
       (B) During calendar year 1997, $10.05.
       (C) During calendar year 1998, $9.95.
       (D) During calendar year 1999, $9.85.
       (E) During calendar year 2000, $9.75.
       (F) During calendar year 2001, $9.65.
       (G) During calendar year 2002, $9.55.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3388

       At the appropriate place, insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.10.
       (B) During calendar year 1997, $10.00.
       (C) During calendar year 1998, $9.90.
       (D) During calendar year 1999, $9.80.
       (E) During calendar year 2000, $9.70.
       (F) During calendar year 2001, $9.60.
       (G) During calendar year 2002, $9.50.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment 

[[Page S981]]
     of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                 ______


                   D'AMATO AMENDMENTS NOS. 3389-3394

  (Ordered to lie on the table.)
  Mr. D'AMATO submitted six amendments intended to be proposed by him 
to amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; 
as follows:

                           Amendment No. 3389

       On page 1-73, strike lines 12 through 14 and insert the 
     following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.35.
       (B) During calendar year 1997, $10.25.
       (C) During calendar year 1998, $10.15.
       (D) During calendar year 1999, $10.05.
       (E) During calendar year 2000, $9.95.
       (F) During calendar year 2001, $9.85.
       (G) During calendar year 2002, $9.75.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
     
[[Page S982]]

       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy

                           Amendment No. 3390

       On page 1-73, strike lines 12 through 14 and insert the 
     following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.30.
       (B) During calendar year 1997, $10.20.
       (C) During calendar year 1998, $10.10.
       (D) During calendar year 1999, $10.00.
       (E) During calendar year 2000, $9.90.
       (F) During calendar year 2001, $9.80.
       (G) During calendar year 2002, $9.70.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3391

       On page 1-73, strike lines 12 through 14 and insert the 
     following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.25.
       (B) During calendar year 1997, $10.15.
       (C) During calendar year 1998, $10.05.
       (D) During calendar year 1999, $9.95.
       (E) During calendar year 2000, $9.85.
       (F) During calendar year 2001, $9.75.
       (G) During calendar year 2002, $9.65.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary 

[[Page S983]]
     shall notify the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3392

       On page 1-73, strike lines 12 through 14 and insert the 
     following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.20.
       (B) During calendar year 1997, $10.10
       (C) During calendar year 1998, $10.00.
       (D) During calendar year 1999, $9.90.
       (E) During calendar year 2000, $9.80.
       (F) During calendar year 2001, $9.70.
       (G) During calendar year 2002, $9.60.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) the maximum volume of dairy product exports allowable 
     consistent with the obligations of the United States as a 
     member of 

[[Page S984]]
     the World Trade Organization is exported under the program each year 
     (minus the volume sold under section 1163 of the Food 
     Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3393

       On page 1-73, strike lines 12 through 14 and insert the 
     following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.15.
       (B) During calendar year 1997, $10.05.
       (C) During calendar year 1998, $9.95.
       (D) During calendar year 1999, $9.85.
       (E) During calendar year 2000, $9.75.
       (F) During calendar year 2001, $9.65.
       (G) During calendar year 2002, $9.55.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                                                    ____


                           Amendment No. 3394

       On page 1-73, strike lines 12 through 14 and insert the 
     following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of the enactment of this Act and ending December 31, 
     2002, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
     
[[Page S985]]

       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.10.
       (B) During calendar year 1997, $10.00.
       (C) During calendar year 1998, $9.90.
       (D) During calendar year 1999, $9.80.
       (E) During calendar year 2000, $9.70.
       (F) During calendar year 2001, $9.60.
       (G) During calendar year 2002, $9.50.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this Act, in the price of milk received 
     by a producer during calendar year 1995 or 1996, if the 
     producer provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of the 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Consent to Northeast Interstate Dairy Compact.--
     Congress consents to the Northeast Interstate Dairy
                                 ______


                    LUGAR AMENDMENTS NOS. 3395-3397

  (Ordered to lie on the table.)
  Mr. LUGAR submitted three amendments intended to be proposed by him 
to amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; 
as follows:

                           Amendment No. 3395

       On page 5-1, strike lines 2 through 4 and insert the 
     following:

     SEC. 501. MILK PROGRAMS.

       (a) Federal Milk Marketing Orders.--Section 101(b) of the 
     Agriculture and Food Act of 1981 (Public Law 97-98; 7 U.S.C. 
     608c) is amended by striking ``1996'' and inserting ``2002''.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of the enactment of this Act, the Secretary of 
     Agriculture (referred to in this section as 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
     
[[Page S986]]

       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Effect on Fluid Milk Standards in the State of 
     California.--Nothing in this Act or any other provision of 
     law prohibits or otherwise limits the applicability of 
     requirements under any law (including any regulation) of the 
     State of California regarding the percentage of milk solids 
     or solids not fat in fluid milk products marketed in the 
     State of California.
       (e) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.
       (f) Fund for Dairy Producers To Pay for Nutrient 
     Management.--Section 8(c)(5) of the Agricultural Adjustment 
     Act (7
                                                                    ____


                           Amendment No. 3396

       On page 1-77, line 10, after ``respectively'', insert the 
     following: ``, and by amendment section 307 (as so 
     transferred and redesignated) to read as follows:

     ``SEC. 307. MILK PROGRAM.

       ``(a) Support Activities.--During the period beginning on 
     the date of the enactment of this section and ending December 
     31, 2002, the Secretary shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       ``(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, $10.10.
       ``(2) During calendar year 1997, $10.05.
       ``(3) During calendar year 1998, $9.95.
       ``(4) During calendar year 1999, $9.85.
       ``(5) During calendar year 2000, $9.75.
       ``(6) During calendar year 2001, $9.65.
       ``(7) During calendar year 2002, $9.55.
       ``(c) Bid Prices.--The support purchase prices under this 
     section for each of the products of milk (butter, cheese, and 
     nonfat dry milk) announced by the Secretary shall be the same 
     for all of that product sold by persons offering to sell the 
     product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under subsection (b).
       ``(d) Special Rule for Butter and Nonfat Dry Milk.--
       ``(1) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       ``(2) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more the twice in each calendar year.
       ``(e) Refunds of 1995 and 1996 Assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of the enactment of this section, in the price of milk 
     received by a producer during calendar year 1995 or 1996, if 
     the producer provides evidence that the producer did not 
     increase marketing in calendar year 1995 or 1996 when 
     compared to calendar year 1994 or 1995, respectively. 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 and 3821).
       ``(f) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.
       ``(g) Period of Effectiveness.--This section shall be 
     effective only during the period beginning on the date of the 
     enactment of this section and ending on December 31, 2002.''.
                                                                    ____


                           Amendment No. 3397

       On page 6-19, strike lines 1 through 16 and insert the 
     following:

     ``SEC. 609. GRANTS FOR RESEARCH ON THE PRODUCTION AND 
                   MARKETING OF ALCOHOLS AND INDUSTRIAL 
                   HYDROCARBONS FROM AGRICULTURAL COMMODITIES AND 
                   FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``1995'' and inserting ``2002''.
                                 ______


                    MOSELEY-BRAUN AMENDMENT NO. 3398

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

       On page 1-26, strike lines 16 through 25 and insert the 
     following:
       (6) Oilseeds.--
       (A) Soybeans.--The loan rate for a marketing assistance 
     loan for soybeans shall be--
       (i) not less than 85 percent of the simple average price 
     received by producers of soybeans, as determined by the 
     Secretary, during the marketing years for the immediately 
     proceeding 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 or more than $5.26 per bushel.
       (B) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 
     loan for sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed, individually, shall be--
       (i) not less than 85 percent of the simple average price 
     received by producers of sunflower seed, individually, as 
     determined by the Secretary, during the marketing years for 
     the immediately preceding 5 crops of sunflower seed, 
     individually, 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 or more than $0.093 per pound.
                                 ______


                       NICKLES AMENDMENT NO. 3399

  (Ordered to lie on the table.)
  Mr. NICKLES submitted an amendment intended to be proposed by them to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; as 
follows:

       On page 1-17, strike lines 14 through 17 and insert the 
     following:
       (ii) Contract commodities.--Contract acreage planted to a 
     contract commodity during the crop year may be hayed or 
     grazed without limitation.
                                 ______


                        BROWN AMENDMENT NO. 3400

  (Ordered to lie on the table.)
  Mr. BROWN submitted an amendment intended to be proposed by them to 
amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra, as 
follows:

       On page 1-4S. strike line 3 and insert the following: 
     104(e) of the Act.
       ``(3) Limitation on maximum income.--
       ``(A) In general.--None of the funds made available 
     pursuant to this
       Act may be used to make any payment described in paragraph 
     (1) and (2) to--
       ``(i) an individual with an annual net taxable income of 
     more than $250,000; or
       ``(ii) any other person with an annual net taxable income 
     of more than $5,000,000.
       ``(B) Certification.--The Secretary of Agriculture shall 
     annually certify to the Committee on Agriculture of the House 
     of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate that no person 
     receiving a payment referred to in subparagraph (A) had, in 
     the previous tax year of the person, an annual net taxable 
     income greater than the amount specified in subparagraph (A) 
     with respect to the person.''.
                                 ______


                        BROWN AMENDMENT NO. 3401

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

       At the appropriate place, insert the following:

     SEC.  CLARIFICATION ON EFFECT OF RESOURCE PLANNING ON 
                   ALLOCATION OR USE OF WATER.

       (a) National Forest System Resource Planning.--Section 6 of 
     the Forest and Rangeland Renewable Resources Planning Act of 
     1974 (16 U.S.C. 1604) is amended by adding at the end the 
     following new subsection:
       ``(n) Limitation on Authority.--Nothing in this section 
     shall be construed to supersede, abrogate or otherwise impair 
     any right or authority of a State to allocate quantities of 
     water (including boundary waters). Nothing in this section 
     shall be implemented, enforced, or construed to allow any 
     officer or agency of the United States to utilize directly or 
     indirectly the authorities established under this section to 
     impose any requirement not imposed by the State which would 
     supersede, abrogate, or otherwise impair rights to the use of 
     water resources allocated under State law, interstate water 
     compact, or Supreme Court decree, or held by the United 
     States for use by a State, its political subdivisions, or its 
     citizens. No water rights arise in the United States or any 
     other person under the provisions of this Act.''.
       (b) Land Use Planning Under Bureau of Land Management 
     Authorities.--Section 202 of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1712) is amended by adding 
     at the end the following new subsection:
       ``(g) Limitation on Authority.--Nothing in this section 
     shall be construed to supersede, 

[[Page S987]]
     abrogate, or otherwise impair any right or authority of a State to 
     allocate quantities of water (including boundary waters). 
     Nothing in this section shall be implemented, enforced, or 
     construed to allow any officer or agency of the United States 
     to utilize directly or indirectly the authorities established 
     under this section to impose any requirement not imposed by 
     the State which would supersede, abrogate, or otherwise 
     impair rights to the use of water resources allocated under 
     State law, interstate water compact, or Supreme Court decree, 
     or held by the United States for use by a State, its 
     political subdivisions, or its citizens. No water rights 
     arise in the United States or any other person under the 
     provisions of this Act.''.
       (c) Authorization to Grant Rights-of-Way.--Section 501 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1761) is amended--
       (1) in subsection (c)(1)--
       (A) by striking subparagraph (B);
       (B) in subparagraph (D), by striking ``originally 
     constructed'';
       (C) in subparagraph (G), by striking ``1996'' and inserting 
     ``1998''; and
       (D) by redesignating subparagraphs (C) through (G) as 
     subparagraphs (B) through (F), respectively;
       (2) in subsection (c)(3)(A), by striking the second and 
     third sentence; and
       (3) by adding at the end the following new subsection:
       ``(e) Effect on Valid Existing Rights.--Notwithstanding any 
     provision of this section, no Federal agency may require, as 
     a condition of, or in connection with, the granting, 
     issuance, or renewal of a right-of-way under this section, a 
     restriction or limitation on the operation, use, repair, or 
     replacement of an existing water supply facility which is 
     located on or above National Forest lands or the exercise and 
     use of existing water rights, if such condition would reduce 
     the quantity of water which would otherwise be made available 
     for use by the owner of such facility or water rights, or 
     cause an increase in the cost of the water supply provided 
     from such facility.''.
                                 ______


                   SANTORUM AMENDMENTS NOS. 3402-3404

  (Ordered to lie on the table.)
  Mr. SANTORUM submitted three amendments intended to be proposed by 
him to amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, 
supra; as follows:

                           Amendment No. 3402

       Beginning on page 1-73, strike line 12 and all that follows 
     through page 1-78, line 4, and insert the following:

     SEC. 108. MILK PROGRAM.

       (a) Milk Price Support Program.--
       (1) Support activities.--During the period beginning on the 
     date of enactment of this Act and ending December 31, 2002, 
     the Secretary shall support the price of milk produced in the 
     48 contiguous States through the purchase of cheese, butter, 
     and nonfat dry milk produced from the milk.
       (2) Rate.--The price of milk shall be supported at the 
     following rates per hundredweight for milk containing 3.67 
     percent butterfat:
       (A) During calendar year 1996, $10.10.
       (B) During calendar year 1997, $10.00.
       (C) During calendar year 1998, $9.90.
       (D) During calendar year 1999, $9.80.
       (E) During calendar year 2000, $9.70.
       (F) During calendar year 2001, $9.60.
       (G) During calendar year 2002, $9.50.
       (3) Bid prices.--The support purchase prices under this 
     subsection for each of the products of milk (butter, cheese, 
     and nonfat dry milk) announced by the Secretary shall be the 
     same for all of that product sold by persons offering to sell 
     the product to the Secretary. The purchase prices shall be 
     sufficient to enable plants of average efficiency to pay 
     producers, on average, a price that is not less than the rate 
     of price support for milk in effect under paragraph (2).
       (4) Special rule for butter and nonfat dry milk.--
       (A) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. The Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (B) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (5) Refunds of 1995 and 1996 assessments.--The Secretary 
     shall provide for a refund of the entire reduction required 
     under section 204(h)(2) of the Agricultural Act of 1949 (7 
     U.S.C. 1446e(h)(2)), as in effect on the day before the date 
     of enactment of this Act, in the price of milk received by a 
     producer during calendar year 1995 or 1996, if the producer 
     provides evidence that the producer did not increase 
     marketings in calendar year 1995 or 1996 when compared to 
     calendar year 1994. A refund under this paragraph 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 and 3821).
       (6) Commodity credit corporation.--The Secretary shall 
     carry out the program authorized by this subsection through 
     the Commodity Credit Corporation.
       (7) Period of effectiveness.--This subsection shall be 
     effective only during the period beginning on the date of 
     enactment of this Act and ending on December 31, 2002.
       (b) Consolidation and Reform of Federal Milk Marketing 
     Orders.--
       (1) Amendment of orders.--As soon as practicable after the 
     date of enactment of this Act, 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--
       (A) limit the number of Federal milk marketing orders to 
     between 10 and 14 orders; and
       (B) provide for multiple basing points for the pricing of 
     milk.
       (2) Expedited process.--The amendments required under 
     paragraph (1) shall be--
       (A) announced not later than December 31, 1998; and
       (B) implemented not later than December 31, 2000.
       (3) Funding.--Effective beginning January 1, 2001, the 
     Secretary shall not use any funds to administer more than 14 
     Federal milk marketing orders.
       (c) Dairy Export Incentive Program.--
       (1) Duration.--Section 153(a) of the Food Security Act of 
     1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and 
     inserting ``2002''.
       (2) Sole discretion.--Section 153(b) of the Food Security 
     Act of 1985 is amended by inserting ``sole'' before 
     ``discretion''.
       (3) Elements of program.--Section 153(c) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(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 is exported under the 
     program each year (minus the volume sold under section 1163 
     of the Food Security Act of 1985 (Public Law 99-198; 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.''.
       (4) Market development.--Section 153(e)(1) of the Food 
     Security Act of 1985 is amended--
       (A) by striking ``and'' and inserting ``the''; and
       (B) 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''.
       (5) Maximum allowable amounts.--Section 153 of the Food 
     Security Act of 1985 is amended by adding at the end the 
     following:
       ``(f) Required Funding.--
       ``(1) In general.--Except as provided in paragraph (2), 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 the Food Security Act of 1985 
     (Public Law 99-198; 7 U.S.C. 1731 note) during that year.
       ``(2) Volume limitations.--The Commodity Credit Corporation 
     may not exceed the limitations specified in subsection (c)(3) 
     on the volume of allowable dairy product exports.''.
       (d) Repeal of Milk Manufacturing Marketing Adjustment.--
     Section 102 of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 1446e-1) is repealed.

     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 

[[Page S988]]
     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 section 111 (7 U.S.C. 1445f) to appear 
     after section 304 of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1304) and redesignating the transferred section as 
     section 305; 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 Amendment.--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''.
                                                                    ____


                           Amendment No. 3402

       Amend Section 106, Peanut Program, by striking paragraph 
     (2) in subsection (A), Quota Peanuts, and inserting the 
     following:
       (2) Support rates.--The national average quota support rate 
     for each of the 1996 through 2002 crops of quota peanuts 
     shall not be not more than $550 per ton.
                                                                    ____


                           Amendment No. 3404

       Amend Section 106, Peanut Program, by striking paragraph 
     (2) in subsection (A), Quota Peanuts, and inserting the 
     following:
       (2) Support rates.--The national average quota support rate 
     for each of the 1996 through 1997 crops of quota peanuts 
     shall not be more than $600 per ton. The national average 
     quota support rate for each of the 1998 through 2002 crops 
     shall be not more than $550 per ton.
                                 ______


                      SANTORUM AMENDMENT NO. 3405

  (Ordered to lie on the table.)
  Mr. SANTORUM submitted an amendment intended to be proposed by him to 
amendment No. 3225 submitted by him to amendment No. 3184 proposed by 
Mr. Leahy to the bill S. 1541, supra; as follows:

       Amend Section 106, Peanut Program, by:
       (a) Striking paragraph (2) in subsection (a), Quota 
     Peanuts, and inserting the following:
       (2) Support rates.--
       (A) Maximum levels.--The national average quota support 
     rate for each of the 1996 through 2000 crops of quota peanuts 
     shall not be more than $610 per ton for the 1996 crop, $542 
     per ton for the 1997 crop, $509 per ton for the 1998 crop, 
     $485 per ton for the 1999 crop, and $475 for the 2000 crop.
       (B) Disbursement.--The Secretary shall initially disburse 
     only 90 percent of the price support loan level required 
     under this paragraph to producers for the 1996 and 1997 
     crops, and 85 percent for the 1998 through 2000 crops and 
     provide for the disbursement to producers at maturity of any 
     balances due the producers on the loans that may remain to be 
     settled at maturity. The remainder of the loans for each crop 
     shall be applied to offset losses in pools under subsection 
     (d), if the losses exist, and shall be paid to producers only 
     after the losses are offset.
       (C) Non-recourse loans.--Notwithstanding any other 
     provision of this Act, for the 2001 and 2002 crops of 
     peanuts, the quota is eliminated and the Secretary shall 
     offer to all peanut producers non-recourse loans at a level 
     not to exceed 70 percent of the estimated market price 
     anticipated for each crop.
       (D) Market price.--In estimating the market price for the 
     2001 and 2002 crops of peanuts, the Secretary shall consider 
     the export prices of additional peanuts during the last 5 
     crop years for which price support was available for 
     additional peanuts and prices for peanuts in overseas 
     markets, but shall not base the non-recourse loan levels for 
     2001-2002 on quota or additional support rates established 
     under this Act.
                                 ______


                     KEMPTHORNE AMENDMENT NO. 3406

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

       In the January 31, 1996 draft, In Section 1238E. 
     Environmental Quality Incentives Program Plan.
       At page 3-25 after line 8 and before line 9 insert the 
     following paragraph so that beginning at line 9 the bill 
     reads:
       (8) Notwithstanding any provision of law, the Secretary 
     shall ensure that the process of writing, developing, and 
     assisting in the implementation of plans required in the 
     programs established under this title be open to individuals 
     in agribusiness including but not limited to agricultural 
     producers, representative from agricultural cooperatives, 
     agricultural input retail dealers, and certified crop 
     advisers. This open plan development process shall be 
     included in but not limited to programs and plans established 
     under this title and any other Department program using 
     incentive, technical assistance, cost-share pilot project 
     programs that require plans.
                                 ______


                  GRAHAM (AND MACK) AMENDMENT NO. 3407

  (Ordered to lie on the table.)
  Mr. GRAHAM (for himself and Mr. Mack) submitted an amendment intended 
to be proposed by them to amendment No. 3184 proposed by Mr. Leahy to 
the bill S. 1541, supra; as follows:

       On page 510, strike lines 17 through 24, and on page 511, 
     strike lines 1 through the end, and insert in lieu thereof 
     the following:

     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 subsection.
       (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 
     private acreage in the Everglades Agricultural Area including 
     approximately 52,000 acres that is commonly known as the 
     ``Talisman Tract''.
       (c) Nothing in this subsection precludes the Secretary of 
     the Interior from transferring funds to the U.S. Army Corps 
     of Engineers or the State of Florida or the South Florida 
     Water Management District to carry out subsection (b)(3).
       (d) Deadline.--The Secretary of the Interior shall utilize 
     these funds for restoration activities referred to in 
     subsection (b)(3) not later than December 31, 1999.
                                 ______


                       DASCHLE AMENDMENT NO. 3408

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

       (a) Section 312 is amended by adding at the end the 
     following:
       ``(c) Water Bank Acres.--Section 1231(b) is amended by 
     adding at the end the following:
       ``(6) land that was enrolled as of the date of enactment of 
     the `Agricultural Reform and Improvement Act of 1996' 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.''
       (b) Section 313 is amended by--
       (1) striking subsection (a);
       (2) in subsection (b) by striking ``not more than 975,000'' 
     and inserting ``not less than 975,000'';
       (3) striking ``(c) Eligibility.--'' and all that follows 
     through ``under the program.'';
       (4) in subsection (e) by striking paragraph (2);
                                 ______


                       BAUCUS AMENDMENT NO. 3409

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

       At the appropriate place in the bill insert the following:
       Notwithstanding the provisions of the Federal Crop 
     Insurance Act, the Secretary shall ensure that crop insurance 
     is made available to producers so that protection at the 75 
     percent level of coverage shall be available at the rate for 
     which coverage at the 65 percent level is available on the 
     date prior to the date of enactment.
                                 ______


                       BAUCUS AMENDMENT NO. 3410

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

       After section 857, insert the following:

     SEC. 858. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.

       Section 7 of the Federal Meat Inspection Act (21 U.S.C. 
     607) is amended by adding at the end the following:
       ``(f) Lamb and Mutton.--
       ``(1) Standards.--The Secretary shall establish standards 
     for the labeling of sheep carcasses, parts of carcasses, 
     meat, and meat food products as `lamb' or `mutton'.
       ``(2) Method.--The standards under paragraph (1) shall be 
     based on the use of the break or spool joint method to 
     differentiate lamb from mutton by the degree of calcification 
     of bone to reflect maturity.''.
                                 ______


                       HARKIN AMENDMENT NO. 3411

  (Ordered to lie on the table.)
  
[[Page S989]]

  Mr. BAUCUS (for Mr. Harkin) submitted an amendment intended to be 
proposed by him to an amendment submitted by Mr. Craig to the bill S. 
1541, supra; as follows:

       Amend Section 110 by adding the following at the end:

(d) Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments

       Notwithstanding the provisions of section 104, in the case 
     of the 1996 and subsequent crops of wheat, feed grains, and 
     oilseeds the Secretary shall provide marketing loans to 
     producers of such crops.
       (1) Availability of Nonrecourse Loans.--
       (A) Availability.--For each of the 1996 and subsequent 
     crops, the Secretary shall make available to producers on a 
     farm nonrecourse marketing assistance loans for wheat, feed 
     grains, and oilseeds produced on the farm. The loans shall be 
     made under the terms and conditions that are prescribed by 
     the Secretary and at the loan rate established under 
     subsection (2) for the commodity.
       (2) Loan Rates.--
       (A) Wheat.--
       (i) Loan rate.--The loan rate for wheat shall be--
       (I) not less than 90 percent of the simple average price 
     received by producers of wheat, as determined by the 
     Secretary, during the marketing years for the immediately 
     five 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.
       (B) Feed Grains.--
       (i) Loan rate.--The loan rate for a marketing assistance 
     loan for corn shall be--
       (I) not less than 90 percent of the simple average price 
     received by producers of corn as determined by the Secretary, 
     during the marketing years for the immediately five 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.
       (II) Other feed grains.--The loan 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 commodity in relation to 
     corn.
       (C) Oilseeds.--
       (i) Soybeans.--The loan rate for a marketing assistance 
     loan for soybeans shall be not less than 90 percent of the 
     simply 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.
       (ii) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rates for marketing assistance 
     loans for sunflower seed, canola, rapeseed, safflower, 
     mustard seed, and flaxseed shall be not less than 90 percent 
     of the simple average price received by producers of 
     sunflower seed, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     sunflower seed, 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.
       (3) Term of Loan.--In the case of wheat and feed grains, 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.
       (4) Repayment.--
       (A) 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--
       (i) minimize potential loan forfeitures;
       (ii) minimize the accumulation of stocks of the commodities 
     by the Federal Government;
       (iii) minimize the costs incurred by the Federal Government 
     in storing the commodities; and
       (iv) allow the commodities produced in the United States to 
     be marketed freely and competitively, both domestically and 
     internationally.
       (5) Loan deficiency payments.--
       (A) Availability.--The Secretary may make loan deficiency 
     payments available to producers who, although ineligible to 
     obtain a marketing assistance loan under subsection (a) with 
     respect to a loan commodity, agree to forego obtaining the 
     loan for the commodity in return for payments under this 
     subsection.
       (B) Computation.--A loan deficiency payment shall be 
     computed by multiplying--
       (i) the loan payment rate under paragraph (3) for the loan 
     commodity; by
       (ii) the quantity of the loan commodity that the producers 
     on a farm are eligible to place under loan but for which the 
     producers forego obtaining the loan in return for payments 
     under this subsection.
       (C) Loan Payment Rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--
       (i) the loan rate established under subsection (2) for the 
     loan commodity exceeds
       (ii) the rate at which a loan for the commodity may be 
     repaid under subsection (d).
       (6) Source of loans.--
       (A) 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.
       (B) Processors.--Whenever any loan or surplus removal 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 the 
     maximum benefit from the loan or surplus removal operation.
       (7) Adjustments of loans.--
       (A) In general.--The Secretary may make appropriate 
     adjustments in the loan levels for differences in grade, 
     type, quality, location, and other factors.
       (B) 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.).
       (8) Personal liability of producers for deficiencies.--
       (A) 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.
       (B) Limitations.--Paragraph (1) shall not prevent the 
     Commodity Credit Corporation or the Secretary from requiring 
     the producer to assume liability for--
       (i) a deficiency in the grade, quality, or quantity of a 
     commodity stored on a farm or delivered by the producer;
       (ii) a failure to properly care for and preserve a 
     commodity; or
       (iii) a failure or refusal to deliver a commodity in 
     accordance with a program established under this section or 
     the Agricultural Adjustment Act of 1938.
       (C) 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.
                                 ______


                  GRAHAM (AND MACK) AMENDMENT NO. 3412

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

       At the end of the section relating to crop insurance, 
     insert the following:
       (c) Definition of Natural Disaster.--Section 502 of the 
     Federal Crop Insurance Act (7 U.S.C. 1502) is amended--
       (1) by redesignating paragraphs (7) and (8) as paragraphs 
     (8) and (9), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) Natural disaster.--The term `natural disaster' 
     includes extensive crop destruction caused by insects or 
     disease.''.
       (d) Crop Insurance for Specialty Crops.--Section 508(a)(6) 
     of the Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is 
     amended by adding at the end the following:
       ``(D) Addition of specialty crops.--Not later than 1 year 
     after the date of enactment of this subparagraph, the 
     Corporation shall issue regulations to expand crop insurance 
     coverage under this title to include any species, animal or 
     plant, that is reared or grown for sale using and or water 
     culture.''.
       (e) Marketing Windows.--Section 508(j) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the 
     end the following:
       ``(4) Marketing windows.--The corporation shall consider 
     marketing windows in determining whether it is feasible to 
     require planting during a crop year.''.
                                 ______


                    HARKIN AMENDMENT NOS. 3413-3414

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

                           Amendment No. 3413

       (1) Section 110(b) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2) Repeal.--The Agricultural Act of 1949 (7 U.S.C. 1421 
     et seq.) (as amended by paragraph (1)) is repealed except for 
     section 110.''
                                                                    ____


                           Amemdment No. 3414

       (1) Section 110(b) is amended by striking paragraph (2) and 
     inserting the following:
       ``(2) Repeal--
       ``(A) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) 
     (as amended by paragraph (1)) is repealed except for section 
     110.
       ``(B) Notwithstanding the provisions of the Agricultural 
     Trade Act of 1978 and section 203 the Commodity Credit 
     Corporation shall make available to carry out the export 
     enhancement program not more than the following:
       ``(i) $338,428,572 for fiscal year 1996;
       ``(ii) $338,428,572 for fiscal year 1997;
       
[[Page S990]]

       ``(iii) $488,428,572 for fiscal year 1998;
       ``(iv) $538,428,572 for fiscal year 1999;
       ``(v) $567,428,572 for fiscal year 2000;
       ``(vi) $466,428,572 for fiscal year 2001; and
       ``(vii) $466,428,572 for fiscal year 2002.''
                                 ______


                       DASCHLE AMENDMENT NO. 3415

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

       Title I is amended by--
       (1) striking ``2002'' each place it appears and inserting 
     ``1998'';
       (2) striking ``2003'' each place it appears and inserting 
     ``1999'';
       (3) in section 103 striking subsections (d) through (f) and 
     inserting the following:
       ``(e) Contract Payments.--
       ``(1) In general.--The Secretary shall provide advanced and 
     final payments to owners and operators in accordance with 
     this subsection.
       ``(2) Advanced payments.--
       ``(A) In general.--An owner or operator shall receive an 
     advanced payment by June 15 for the 1996 fiscal year and 
     December 15 for the 1997 and 1998 fiscal years which 
     represents the product of--
       ``(i) the applicable payment rate described in subparagraph 
     (B);
       ``(ii) the farm program payment yield; and
       ``(iii) 85 percent of the contract acreage.
       ``(B) Payment rate.--The payment rate shall be--
       ``(i) for corn, $.16 per bushel;
       ``(ii) for grain sorghum, $.19 per bushel;
       ``(iii) for barley, $.12 per bushel;
       ``(iv) for oats, $.02 per bushel;
       ``(v) for wheat, $.27 per bushel;
       ``(vi) for rice, $1.14 per hundredweight; and
       ``(vii) for upland cotton, $.032 per pound.
       ``(3) Final payment.--
       ``(A) In general.--The Secretary shall make a final payment 
     which represents the county rate described in subparagraph 
     (B) multiplied by lessor of--
       ``(i) 85 percent of the contract acreage; or
       ``(ii) contract acreage planted to the contract commodity.
       ``(B) County rate.--The county rate is the difference 
     between the target county revenue described in clause (i) and 
     the current county revenue described in clause (ii).
       ``(i) Target county revenue.--The target county revenue 
     shall equal to the product of--
       ``(I) the five year average county yield for the contract 
     commodity, excluding the year in which the average yield was 
     the highest and the lowest; and
       ``(II) the established price for the commodity for the 1995 
     crop.
       ``(ii) Current county revenue.--The current county revenue 
     shall equal the product of--
       ``(I) the average price for the contract commodity for the 
     first five months of the marketing year; and
       ``(II) the county average yield for the contract commodity.
       ``(iii) Limitation.--The final payment shall be reduced by 
     the advanced payment, but in no case shall the final payment 
     be less than zero.''
       (4) in section 104(b) by striking paragraphs (1)(A)(ii), 
     (2)(A)(ii), (3)(B), and (4)(B).
                                 ______


                      McCONNELL AMENDMENT NO. 3416

  (Ordered to lie on the table.)
  Mr. McCONNELL submitted an amendment intended to be proposed by him 
to the amendment No. 3184 proposed by Mr. Leahy to the bill (S. 1541), 
supra; as follows:

       At the appropriate place, insert the following:

     SEC. ____. COMMERCIAL TRANSPORTATION OF EQUINE FOR SLAUGHTER.

       (a) Findings.--Congress finds that, to ensure that equine 
     sold for slaughter are provided humane treatment and care, it 
     is essential to regulate the transportation, care, handling, 
     and treatment of equine by any person engaged in the 
     commercial transportation of equine for slaughter.
       (b) Definitions.--In this section:
       (1) Commerce.--The term ``commerce'' means trade, traffic, 
     transportation, or other commerce by a person--
       (A) between any State, territory, or possession of the 
     United States, or the District of Columbia, and any place 
     outside thereof;
       (B) between points within the same State, territory, or 
     possession of the United States, or the District of Columbia, 
     but through any place outside thereof; or
       (C) within any territory or possession of the United States 
     or the District of Columbia.
       (2) Department.--The term ``Department'' means the United 
     States Department of Agriculture.
       (3) Equine.--The term ``equine'' means any member of the 
     Equidae family.
       (4) Equine for slaughter.--The term ``equine for 
     slaughter'' means any equine that is transported, or intended 
     to be transported, by vehicle to a slaughter facility or 
     intermediate handler from a sale, auction, or intermediate 
     handler by a person engaged in the business of transporting 
     equines for slaughter.
       (5) Foal.--The term ``foal'' means a equine that is not 
     more than 6 months of age.
       (6) Intermediate handler.--The term ``intermediate 
     handler'' means any person regularly engaged in the business 
     of receiving custody of equines for slaughter in connection 
     with the transport of the equines to a slaughter facility, 
     including a stockyard, feedlot, or assembly point.
       (7) Person.--The term ``person'' means any individual, 
     partnership, firm, company, corporation, or association that 
     regularly transports equines for slaughter in commerce, 
     except that the term shall not include an individual or other 
     entity that does not transport equines for slaughter on a 
     regular basis as part of a commercial enterprise.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (9) Vehicle.--The term ``vehicle'' means any machine, 
     truck, tractor, trailer, or semitrailer, or any combination 
     thereof, propelled or drawn by mechanical power and used on a 
     highway in the commercial transportation of equines for 
     slaughter.
       (10) Stallion.--The term ``stallion'' means any uncastrated 
     male equine that is 1 year of age or older.
       (c) Standards for Humane Commercial Transportation of 
     Equines for Slaughter.--
       (1) In general.--Subject to the availability of 
     appropriations, not later than 1 year after the date of 
     enactment of this section, the Secretary shall issue, by 
     regulation, standards for the humane commercial 
     transportation by vehicle of equines for slaughter.
       (2) Prohibition.--no person engaged in the regular business 
     of transporting equines by vehicle for slaughter as part of a 
     commercial enterprise shall transport in commerce, to a 
     slaughter facility or intermediate handler, a equine for 
     slaughter except in accordance with the standards and this 
     section.
       (3) Minimum requirements.--The standards shall include 
     minimum requirements for the humane handling, care, 
     treatment, and equipment necessary to ensure the safe and 
     humane transportation of equines for slaughter. The standards 
     shall require, at a minimum, that--
       (A) no equine for slaughter shall be transported for more 
     than 24 hours without being unloaded from the vehicle and 
     allowed to rest for at least 8 consecutive hours and given 
     access to adequate quantities of wholesome food and potable 
     water;
       (B) a vehicle shall provide adequate headroom for a equine 
     for slaughter with a minimum of at least 6 feet, 6 inches of 
     headroom from the roof and beams or other structural members 
     overhead to floor underfoot, except that a vehicle 
     transporting 6 equines or less shall provide a minimum of at 
     least 6 feet of headroom from the roof and beams or other 
     structural members overhead to floor underfoot if none of the 
     equines are over 16 hands;
       (C) the interior of a vehicle shall--
       (i) be free of protrusions, sharp edges, and harmful 
     objects;
       (ii) have ramps and floors that are adequately covered with 
     a nonskid nonmetallic surface; and
       (iii) be maintained in a sanitary condition;
       (D) a vehicle shall--
       (i) provide adequate ventilation and shelter from extremes 
     of weather and temperature for all equine;
       (ii) be of appropriate size, height, and interior design 
     for the number of equine being carried to prevent 
     overcrowding; and
       (iii) be equipped with doors and ramps of sufficient size 
     and location to provide for safe loading and unloading, 
     including unloading during emergencies;
       (E)(i) equines shall be positioned in the vehicle by size; 
     and
       (ii) stallions shall be segregated from other equines;
       (F)(i) all equines for slaughter must be fit to travel as 
     determined by an accredited veterinarian, who shall prepare a 
     certificate of inspection, prior to loading for transport, 
     that--
       (I) states that the equines were inspected and satisfied 
     the requirements of subparagraph (B);
       (II) includes a clear description of each equine; and
       (III) is valid for 7 days;
       (ii) no equine shall be transported to slaughter if the 
     equine is found to be--
       (I) suffering from a broken or dislocated limb;
       (II) unable to bear weight on all 4 limbs;
       (III) blind in both eyes; or
       (IV) obviously suffering from severe illness, injury, 
     lameness, or physical debilitation that would make the equine 
     unable to withstand the stress of transportation;
       (iii) no foal may be transported for slaughter;
       (iv) no mare in foal that exhibits signs of impending 
     parturition may be transported for slaughter; and
       (v) no equine for slaughter shall be accepted by a 
     slaughter facility unless the equine is--
       (I) inspected on arrival by an employee of the slaughter 
     facility or an employee of the Department; and
       (II) accompanied by a certificate of inspection issued by 
     an accredited veterinarian, not more than 7 days before the 
     delivery, stating that the veterinarian inspected the equine 
     on a specified date.
       (d) Records.--
       (1) In general.--A person engaged in the business of 
     transporting equines for slaughter shall establish and 
     maintain such records, make such reports, and provide such 
     information as the Secretary may, by regulation, require for 
     the purposes of carrying out, or determining compliance with, 
     this section.
     
[[Page S991]]

       (2) Minimum requirements.--The records shall include, at a 
     minimum--
       (A) the veterinary certificate of inspection;
       (B) the names and addresses of current owners and 
     consignors, if applicable, of the equines at the time of sale 
     or consignment to slaughter; and
       (C) the bill of sale or other documentation of sale for 
     each equine.
       (3) Availability.--The records shall--
       (A) accompany the equine during transport to slaughter;
       (B) be retained by any person engaged in the business of 
     transporting equine for slaughter for a reasonable period of 
     time, as determined by the secretary, except that the 
     veterinary certificate of inspection shall be surrendered at 
     the slaughter facility to an employee or designee of the 
     department and kept by the department for a reasonable period 
     of time, as determined by the secretary; and
       (C) on request of an officer or employee of the department, 
     be made available at all reasonable times for inspection and 
     copying by the officer or employee.
       (e) Agents.--
       (1) In general.--For purposes of this section, the act, 
     omission, or failure of an individual acting for or employed 
     by a person engaged in the business of transporting equines 
     for slaughter, within the scope of the employment or office 
     of the individual, shall be considered the act, omission, or 
     failure of the person engaging in the commercial 
     transportation of equines for slaughter as well as of the 
     individual.
       (2) Assistance.--if a equine suffers a substantial injury 
     or illness while being transported for slaughter on a 
     vehicle, the driver of the vehicle shall seek prompt 
     assistance from a licensed veterinarian.
       (f) Cooperative Agreements.--The Secretary is authorized to 
     cooperate with States, political subdivisions of States, 
     State agencies (including State departments of agriculture 
     and State law enforcement agencies), and foreign governments 
     to carry out and enforce this section (including regulations 
     issued under this section).
       (g) Investigations and Inspections.--
       (1) In general.--The Secretary is authorized to conduct 
     such investigations or inspections as the Secretary considers 
     necessary to enforce this section (including any regulation 
     issued under this section).
       (2) Access.--for the purposes of conducting an 
     investigation or inspection under paragraph (1), the 
     secretary shall, at all reasonable times, have access to--
       (A) the place of business of any person engaged in the 
     business of transporting equines for slaughter;
       (B) the facilities and vehicles used to transport the 
     equines; and
       (C) records required to be maintained under subsection (d).
       (3) Assistance to or destruction of equines.--The Secretary 
     shall issue such regulations as the Secretary considers 
     necessary to permit employees or agents of the Department 
     to--
       (A) provide assistance to any equine that is covered by 
     this section (including any regulation issued under this 
     section); or
       (B) destroy, in a humane manner, any such equine found to 
     be suffering.
       (h) Interference With Enforcement.--
       (1) In general.--Subject to paragraph (2), a person who 
     forcibly assaults, resists, opposes, impedes, intimidates, or 
     interferes with any person while engaged in or on account of 
     the performance of an official duty of the person under this 
     section shall be fined not more than $5,000 or imprisoned not 
     more than 3 years, or both.
       (2) Weapons.--If the person uses a deadly or dangerous 
     weapon in connection with an action described in paragraph 
     (1), the person shall be fined not more than $10,000 or 
     imprisoned not more than 10 years, or both.
       (i) Jurisdiction of Courts.--Except as provided in 
     subsection (j)(1)(E), a district court of the United States 
     in any appropriate judicial district under section 1391 of 
     title 28, United States Code, shall have jurisdiction to 
     specifically enforce this section, to prevent and restrain a 
     violation of this section, and to otherwise enforce this 
     section.
       (j) Civil and Criminal Penalties.--
       (1) Civil penalties.--
       (A) In general.--A person who violates this section 
     (including a regulation or standard issued under this 
     section) shall be assessed a civil penalty by the Secretary 
     of not more than $2,000 for each violation.
       (B) Separate offenses.--Each equine transported in 
     violation of this section shall constitute a separate 
     offense. Each violation and each day during which a violation 
     continues shall constitute a separate offense.
       (C) Hearings.--No penalty shall be assessed under this 
     paragraph unless the person who is alleged to have violated 
     this section is given notice and opportunity for a hearing 
     with respect to an alleged violation.
       (D) Final order.--An order of the Secretary assessing a 
     penalty under this paragraph shall be final and conclusive 
     unless the aggrieved person files an appeal from the order 
     pursuant to subparagraph (E).
       (E) Appeals.--Not later than 30 days after entry of a final 
     order of the Secretary issued pursuant to this paragraph, a 
     person aggrieved by the order may seek review of the order in 
     the appropriate United States Court of Appeals. The Court 
     shall have exclusive jurisdiction to enjoin, set aside, 
     suspend (in whole or in part), or to determine the validity 
     of the order.
       (F) Nonpayment of penalty.--On a failure to pay the penalty 
     assessed by a final order under this subsection, the 
     Secretary shall request the Attorney General to institute a 
     civil action in a district court of the United States or 
     other United States court for any district in which the 
     person is found, resides, or transacts business, to collect 
     the penalty. The court shall have jurisdiction to hear and 
     decide the action.
       (2) Criminal penalties.--
       (A) First offense.--Subject to subparagraph (B), a person 
     who knowingly violates this section (or a regulation or 
     standard issued under this section) shall, on conviction of 
     the violation, be subject to imprisonment for not more than 1 
     year or a fine of not more than $2,000, or both.
       (B) Subsequent offenses.--On conviction of a second or 
     subsequent offense described in subparagraph (A), a person 
     shall be subject to imprisonment for not more than 3 years or 
     to a fine of not more than $5,000, or both.
       (k) Payments for Temporary or Medical Assistance for 
     Equines Due to Violations.--From sums received as penalties, 
     fines, or forfeitures of property for any violation of this 
     section (including a regulation issued under this section), 
     the Secretary shall pay the reasonable and necessary costs 
     incurred by any person in providing temporary care or medical 
     assistance for any equine that needs the care or assistance 
     due to a violation of this section.
       (l) Relationship to State Law.--Nothing in this section 
     prevents a State from enacting and enforcing any law 
     (including a regulation) that is not inconsistent with this 
     section or that is more restrictive than this section.
       (m) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated 
     for each fiscal year such sums as are necessary to carry out 
     this section.
       (2) Limitation.--No provision of this section shall be 
     effective, or be enforced against any person, during a fiscal 
     year unless funds to carry out this section have been 
     appropriated for the fiscal year.
                                 ______


                      McCONNELL AMENDMENT NO. 3417

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

       At the appropriate place, insert the following:

     SEC.   . TOBACCO ADMINISTRATIVE EXPENSES.

       Notwithstanding any other provision of law, tobacco 
     marketing assessments required to be collected for budget 
     deficit reduction purposes shall be used first to offset any 
     administrative expenses that are incurred in carrying out the 
     tobacco price support and production adjustment program to 
     the extent that the costs are not otherwise subject to 
     reimbursement under other assessments specific to tobacco.
                                 ______


                      McCONNELL AMENDMENT NO. 3418

  (Ordered to lie on the table.)
  Mr. McCONNELL submitted an amendment intended to be proposed by him 
to the amendment No. 3184 proposed by Mr. Leahy to the bill (S. 1541), 
supra; as follows:

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

     SEC.   . NUTRITIONAL SUPPLEMENTS.

       (a) Findings.--Congress finds that--
       (1) the dietary patterns of Americans do not result in 
     nutrient intakes that fully meet Recommended Dietary 
     Allowances (RDAs) of vitamins and minerals;
       (2) children in low-income families and the elderly often 
     fail to achieve adequate nutrient intakes from diet alone;
       (3) pregnant women have particularly high nutrient needs, 
     which they often fail to meet through dietary means alone;
       (4)(A) many scientific studies have shown that nutritional 
     supplements that contain folic acid (a B vitamin) can prevent 
     as many as 60 to 80 percent of neural tube birth defects;
       (B) the Public Health Service, in September 1992, 
     recommended that all women of childbearing age in the United 
     States who are capable of becoming pregnant should consume 
     0.4 mg of folic acid per day for the purpose of reducing 
     their risk of having a pregnancy affected with spina bifida 
     or other neural tube birth defects; and
       (C) the Food and Drug Administration has also approved a 
     health claim for folic acid to reduce the risk of neural tube 
     birth defects;
       (5) infants who fail to receive adequate intakes of iron 
     may be somewhat impaired in their mental and behavioral 
     development; and
       (6) a massive volume of credible scientific evidence 
     strongly suggests that increasing intake of specific 
     nutrients over an extended period of time may be helpful in 
     protecting against diseases or conditions such as 
     osteoporosis, cataracts, cancer, and heart disease.
       (b) Amendment of the Food Stamp Act of 1977.--Section 
     3(g)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2012(g)(1)) 
     is amended by striking ``or food product'' and inserting ``, 
     food product, or nutritional supplement of a vitamin, 
     mineral, or a vitamin and a mineral''.
                                 ______


                      McCONNELL AMENDMENT NO. 3419

  (Ordered to lie on the table.)
  
[[Page S992]]

  Mr. McCONNELL submitted an amendment intended to be proposed by him 
to amendment No. 3184 proposed by Mr. Leahy to the bill S. 1541, supra; 
as follows:

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

     SEC.   . DISQUALIFICATION OF A STORE OR CONCERN.

       Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is 
     amended--
       (1) by striking the section heading;
       (2) by striking ``Sec. 12. (a) Any'' and inserting the 
     following:

     ``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF 
                   RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

       ``(a) Disqualification.--
       ``(1) In general.--An'';
       (3) by adding at the end of subsection (a) the following:
       ``(2) Employing certain persons.--A retail food store or 
     wholesale food concern shall be disqualified from 
     participation in the food stamp program if the store or 
     concern knowingly employs a person who has been found by the 
     Secretary, or a Federal, State, or local court, to have, 
     within the preceding 3-year period--
       ``(A) engaged in the trading of a firearm, ammunition, an 
     explosive, or a controlled substance (as defined in section 
     102 of the Controlled Substances Act (21 U.S.C. 802)) for a 
     coupon; or
       ``(B) committed any act that constitutes a violation of 
     this Act or a State law relating to using, presenting, 
     transferring, acquiring, receiving, or possessing a coupon, 
     authorization card, or access device.''; and
       (4) in subsection (b)(3)(B), by striking ``neither the 
     ownership nor management of the store or food concern was 
     aware'' and inserting ``the ownership of the store or food 
     concern was not aware''.
                                 ______


             BREAUX (AND JOHNSTON) AMENDMENT NOS. 3420-3421

  (Ordered to lie on the table.)
  Mr. BREAUX (for himself and Mr. Johnston) submitted two amendments to 
be proposed by them to the amendment No. 3184 proposed by Mr. Leahy to 
the bill (S. 1541), supra, as follows:

                           Amendment No. 3420

       In the pending amendment:
       Strike language 103(a)(3) after ``interests of'' and add 
     ``tenants and sharecroppers.''
       Strike language in 103(F)(6) after ``owners and operators'' 
     and add ``and other producers on the farm actively engaged in 
     farming subject to the contract on a fair and equitable basis 
     taking into consideration historical relationships and common 
     practices within a region.''
                                                                    ____


                           Amendment No. 3421

       Amend section 104 by adding at the end the following:
       (l) Program on Termination of Market Transition Program.--
       (1) Notwithstanding any other provision of this Act or any 
     other provision of law, upon termination of the authority of 
     this Act to carry out a market transition program, the 
     Secretary shall carry out a program for each succeeding 
     annual crop of an agricultural commodity upon the same terms 
     and conditions as provided under the law in effect 
     immediately before the date of enactment of this Act for the 
     1995 crop of such commodity.
       (2) The Secretary may use the fund, authorities, and 
     facilities of the Commodity Credit Corporation to carry out 
     this subsection.
                                 ______


                BREAUX (AND JOHNSTON) AMENDMENT NO. 3422

  (Ordered to lie on the table.)
  Mr. BREAUX (for himself and Mr. Johnson) submitted an amendment 
intended to be proposed by them to the amendment No. 3205 proposed by 
Mr. Moynihan (and Mikulski) to the bill (S. 1541), supra; as follows:

       Strike all after the enacting clause and insert the 
     following:
       ``In administering the sugar program, the Secretary shall 
     use all authorities available to him, as is necessary, to 
     ensure the economic viability of all segments of the domestic 
     sugar industry, including sugar cane growers and processors, 
     sugar beet growers and processor and cane sugar refiners''.
                                 ______


                     CONRAD AMENDMENT NO. 3423-3426

  (Ordered to lie on the table.)
  Mr. CONRAD submitted four amendments intended to be proposed by him 
to the amendment No. 3184 proposed by Mr. Leahy to the bill (S. 1541), 
supra; as follows:

                           Amendment No. 3423

       On page 3-62, after line 22, insert the following:

     SEC. 356. ABANDONMENT OF CONVERTED WETLANDS.

       Section 1222(b)(2) of the Food Security Act of 1985 (16 
     U.S.C. 3822(b)(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) a wetland that has been restored or enhanced after 
     the date of enactment of this subparagraph, if--
       ``(i) technical determinations of the prior site conditions 
     and the restoration or enhancement action have been 
     adequately documented in a plan approved by the Secretary 
     prior to implementation;
       ``(ii) the conversion of the restored or enhanced wetland 
     results in a level of wetland functions and values at least 
     equivalent to the functions and values present at the site 
     prior to the restoration or enhancement; and
       ``(iii) the conversion action proposed by the private 
     landowner is approved by the Secretary prior to 
     implementation.''.

                           Amendment No. 3424

       Beginning on page 1-21, strike line 5 and all that follows 
     through page 1-24, line 10, and insert the following:
       (1) Wheat.--The loan rate for a marketing assistance loan 
     for wheat 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.
       (2) Feed grains.--
       (A) Loan rate for corn.--The loan rate for a marketing 
     assistance loan for corn shall not be 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.
       (B) 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.
                                                                    ____


                           Amendment No. 3425

       Beginning on page 1-21, strike line 5 and all that follows 
     through page 1-23, line 3, and insert the following:
       (1) Wheat.--The loan rate for a marketing assistance loan 
     for wheat 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.
       (2) Feed grains.--
       (A) Loan rate for corn.--Subject to subparagraph (B), the 
     loan rate for a marketing assistance loan for corn shall not 
     be 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.

                           Amendment No. 3426

       On page 3-62, after line 22, insert the following:

     SEC. 356. WETLAND CONSERVATION EXEMPTION.

       Section 1222(b)(1) of the Food Security Act of 1985 (16 
     U.S.C. 3822(b)(1)) is amended--
       (1) in subparagraph (C), by striking ``or'' at the end; and
       (2) by adding at the end the following:
       ``(E) converted wetland, if--
       ``(i) the extent of the conversion is limited to the return 
     of conditions that will be at least equivalent to the wetland 
     functions and values that existed prior to implementation of 
     the wetland restoration, enhancement, or creation action;
       ``(ii) technical determinations of the prior site 
     conditions and the restoration, enhancement, or creation 
     action have been adequately documented in a plan approved by 
     the Natural Resources Conservation Service prior to 
     implementation; and
       ``(iii) the conversion action proposed by the private 
     landowner is approved by the National Resources Conservation 
     Service prior to implementation; or''.
                                 ______


                       CONRAD AMENDMENT NO. 3427

  (Ordered to lie on the table.)
  Mr. CONRAD submitted an amendment intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to amendment No. 3184 
proposed by Mr. Leahy to the bill S. 1541, supra; as follows:

       Beginning on page 3-6, strike line 1 and all that follows 
     through page 3-8, line 6, and insert the following:

     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'';
       (2) in subsection (b)--
       (A) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (B) by adding at the end the following:
       ``(5) land that is enrolled in the water bank program 
     established under the Water Bank Act (16 U.S.C. 1301 et 
     seq.), except that--
     
[[Page S993]]

       ``(A) the payment rates for the land shall not exceed the 
     payment rates in effect under the water bank program;
       ``(B) regulations issued under the water bank program shall 
     apply to the land; and
       ``(C) new contracts and extensions of contracts with 
     respect to the land shall enroll land in a manner that--
       ``(i) maximizes environmental benefits per dollar expended; 
     and
       ``(ii) contributes to flood control and protects and 
     enhances wetland functions and values.''; and
       (3) 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).
                                 ______


                 BUMPERS (AND PRYOR) AMENDMENT NO. 3428

  (Ordered to lie on the table.)
  Mr. BUMPERS (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by them to amendment No. 3184 proposed by Mr. 
Leahy 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.
                                 ______


                       DASCHLE AMENDMENT NO. 3415

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

       Title I is amended by--
       (1) striking ``2002'' each place it appears and inserting 
     ``1998'';
       (2) striking ``2003'' each place it appears and inserting 
     ``1999'';
       (3) in section 103 striking subsections (d) through (f) and 
     inserting the following:
       ``(e) Contract Payments.--
       ``(1) In general.--The Secretary shall provide advanced and 
     final payments to owners and operators in accordance with 
     this subsection.
       ``(2) Advanced payments.--
       ``(A) In general.--An owner or operator shall receive an 
     advanced payment by June 15 for the 1996 fiscal year and 
     December 15 for the 1997 and 1998 fiscal years which 
     represents the product of--
       ``(i) the applicable payment rate described in subparagraph 
     (B);
       ``(ii) the farm program payment yield; and
       ``(iii) 85 percent of the contract acreage.
       ``(B) Payment rate.--The payment rate shall be--
       ``(i) for corn, $.16 per bushel;
       ``(ii) for grain sorghum, $.19 per bushel;
       ``(iii) for barley, $.12 per bushel;
       ``(iv) for oats, $.02 per bushel;
       ``(v) for wheat, $.27 per bushel;
       ``(vi) for rice, $1.14 per hundredweight; and
       ``(vii) for upland cotton, $.032 per pound.
       ``(3) Final payment.--
       ``(A) In general.--The Secretary shall make a final payment 
     which represents the county rate described in subparagraph 
     (B) multiplied by lessor of--
       ``(i) 85 percent of the contract average; or
       ``(ii) contract acreage planted to the contract commodity.
       ``(B) County rate.--The county rate is the difference 
     between the target county revenue described in clause (i) and 
     the current county revenue described in clause (ii).
       ``(i) Target county revenue.--The target county revenue 
     shall equal to the product of--
       ``(I) the five year average county yield for the contract 
     commodity, excluding the year in which the average yield was 
     the highest and the lowest; and
       ``(II) the established price for the commodity for the 1995 
     crop.
       ``(ii) Current county revenue.--The current county revenue 
     shall equal the product of--
       ``(I) the average price for the contract commodity for the 
     first five months of the marketing year; and
       ``(II) the county average yield for the contract commodity.
       ``(iii) Limitation.--The final payment shall be reduced by 
     the advanced payment, but in no case shall the final payment 
     be less than zero.''
       (4) in section 104(b) by striking paragraphs (1)(A)(ii), 
     (2)(A)(ii), (3)(B), and (4)(B).
                                 ______


                  LOTT (AND OTHERS) AMENDMENT NO. 3429

  (Ordered to lie on the table.)
  Mr. LOTT (for himself, Mr. Burns, Mr. Cochran, Mr. Craig, Mr. 
Faircloth, Mr. Hatch, Mr. Inhofe, Mr. Kyl, Mr. Mack, Mr. Murkowski, Mr. 
Shelby, Mr. Breaux, Mr. Johnston, Mr. Kempthorne, Mrs. Hutchison, and 
Mr. Pressler) submitted an amendment intended to be proposed by them to 
the bill (S. 1541), supra; as follows:

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

     SEC. 3____. PHASING-IN OF AMENDMENTS OF AND REVISIONS TO LAND 
                   AND RESOURCE MANAGEMENT PLANS.

       (a) In General.--Section 6 of the Forest and Rangeland 
     Renewable Resources Planning Act of 1974 (16 U.S.C. 1604) is 
     amended by adding at the end the following:
       ``(n) Phasing-in of Changes to Land and Resource Management 
     Plans.--
       ``(1) In general.--When the Secretary amends or revises a 
     land or resource management plan with the purpose of 
     increasing the population of a species in a unit of the 
     National Forest System or in any area within a unit, the 
     Secretary shall, to the greatest extent practicable and 
     except when there is an imminent risk to public health, phase 
     in the amendment or revision over an appropriate period of 
     time determined on the basis of the considerations described 
     in paragraph (2).
       ``(2) Considerations.--The considerations referred to in 
     paragraph (1) are--
       ``(A) the social and economic consequences to local 
     communities of any new policy contained in an amendment or 
     revision;
       ``(B) the length of time needed to achieve the population 
     increase that is the objective of the amendment or revision;
       ``(C) the cost of implementation of the amendment or 
     revision; and
       ``(D) the financial resources available for implementation 
     of the amendment or revision.''.
       (b) Application of Amendment.--The amendment made by 
     subsection (a) shall apply to any amendment of or revision to 
     a land or resource management plan described in the amendment 
     that is proposed on or after the date of enactment of this 
     Act or that has been proposed but not finally adopted prior 
     to the date of enactment.
                                 ______


                       DASCHLE AMENDMENT NO. 3430

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

       (a) Title I is amended by--
       (1) striking ``2002'' each place it appears and inserting 
     ``1998'';
       (2) striking ``2003'' each place it appears and inserting 
     ``1999'';
       (3) in section 103 striking subsections (d) through (f) and 
     inserting the following:
       ``(e) Contract Payments.--
       ``(1) In general.--The Secretary shall provide advanced and 
     final payments to owners and operators in accordance with 
     this subsection.
       ``(2) Advanced payments.--
       (A) In general.--An owner or operator shall receive an 
     advanced payment by June 15 for the 1996 fiscal year and 
     December 15 for the 1997 and 1998 fiscal years which 
     represents the product of--
       ``(i) the applicable payment rate described in subparagraph 
     (B);
       ``(ii) the farm program payment yield; and
       ``(iii) 85 percent of the contract acreage.
       ``(B) Payment rate.--The payment rate shall be--
       ``(i) for corn, $.16 per bushel;
       ``(ii) for grain sorghum, $.19 per bushel;
       ``(iii) for barley, $.12 per bushel;
       ``(iv) for oats, $.02 per bushel;
       ``(v) for wheat, $.27 per bushel;
       ``(vi) for rice, $1.14 per hundredweight; and
       ``(vii) for upland cotton, $.032 per pound.
       ``(e) Final payment.--
       ``(A) In general.--The Secretary shall make a final payment 
     which represents the county rate described in subparagraph 
     (B) multiplied by 85 percent of the contract acreage.
       ``(B) County rate.--The county rate is the difference 
     between the target county revenue described in clause (i) and 
     the current county revenue described in clause (ii).
       ``(i) Target county revenue.--The target county revenue 
     shall equal to the product of--
       ``(I) the five year average county yield for the contract 
     commodity, excluding the year in which the average yield was 
     the highest and the lowest; and 
     
[[Page S994]]

       ``(II) the established price for the commodity for the 1995 
     crop.
       ``(ii) Current county revenue.--The current county revenue 
     shall equal the product of--
       ``(I) the average price for the contract commodity for the 
     first five months of the marketing year; and
       ``(II) the county average yield for the contract commodity.
       ``(iii) Limitation.--The final payment shall be reduced by 
     the advanced payment, but in no case shall the final payment 
     be less than zero.''
       (4) in section 104(b) by striking paragraphs (1)(A)(ii), 
     (2)(A)(ii), (3)(B), and (4)(B).
       (b) Title V is amended by adding at the end the following:

     ``SEC. 507 FUND FOR RURAL AMERICA.

       ``(a) In General.--The Secretary shall create an account 
     called the Fund for Rural America for the purposes of 
     providing funds for activities described in subsection (c).
       ``(b) Commodity Credit Corporation.--In each of the 1996 
     through 1998 fiscal years, the Secretary shall transfer into 
     the Fund for Rural America (hereafter referred to as the 
     ``Account'')--
       ``(1) $50,000,000 for the 1996 fiscal year;
       ``(2) $100,000,000 for the 1997 fiscal year; and
       ``(3) $150,000,000 for the 1998 fiscal year.
       ``(c) Purposes.--Except as provided in subsection (d), the 
     Secretary shall provide not more than one-third of the funds 
     from the Account for activities described in paragraph (2).
       ``(1) Rural development activities.--The Secretary may use 
     the funds in the Account for the following rural development 
     activities authorized in:
       ``(A) The Housing Act of 1949 for--
       ``(i) direct loans to low income borrowers pursuant to 
     section 502;
       ``(ii) loans for financial assistance for housing for 
     domestic farm laborers pursuant to section 514;
       ``(iii) financial assistance for housing of domestic farm 
     labor pursuant to section 516;
       ``(iv) grants and contracts for mutual and self help 
     housing pursuant to section 523(b)(1)(A); and
       ``(v) grants for Rural Housing Preservation pursuant to 
     section 533;
       ``(B) The Food Security Act of 1985 for loans to 
     intermediary borrowers under the Rural Development Loan Fund;
       ``(C) Consolidated Farm and Rural Development Act for--
       ``(i) grants for Rural Business Enterprises pursuant to 
     section 310B(c) and (j);
       ``(ii) direct loans, loan guarantees and grants for water 
     and waste water projects pursuant to section 306; and
       ``(iii) down payments assistance to farmers, section 310E;
       ``(D) grants for outreach to socially disadvantaged farmers 
     and ranchers pursuant to section 2501 of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     2279); and
       ``(E) grants pursuant to section 204(6) of the Agricultural 
     Marketing Act of 1946.
       ``(2) Research.--
       ``(A) In general.--The Secretary may use the funds in the 
     Account for research grants to increase the competitiveness 
     and farm profitability, protect and enhance natural 
     resources, increase economic opportunities in farming and 
     rural communities and expand locally owned value added 
     processing and marketing operations.
       ``(B) Eligible grantee.--The Secretary may make a grant 
     under this paragraph to--
       ``(i) a college or university;
       ``(ii) a State agricultural experiment station;
       ``(iii) a State Cooperative Extension Service;
       ``(iv) a research institution or organization;
       ``(v) a private organization or person; or
       ``(vi) a Federal agency.
       ``(C) Use of grant.--
       ``(i) In general.--A grant made under this paragraph may be 
     used by a grantee for 1 or more of the following uses:
       ``(I) research, ranging from discovery to principles of 
     application;
       ``(II) extension and related private-sector activities; and
       ``(III) education.
       ``(ii) Limitation.--No grant shall be made for any project, 
     determined by the Secretary, to be eligible for funding under 
     research and commodity promotion programs administered by the 
     Department.
       ``(D) Administration.--
       ``(i) Priority.--In administering this paragraph, the 
     Secretary shall--
       ``(I) establish priorities for allocating grants, based on 
     needs and opportunities of the food and agriculture system in 
     the United States related to the goals of the paragraph;
       ``(II) seek and accept proposals for grants;
       ``(III) determine the relevance and merit of proposals 
     through a system of peer and stakeholder review; and
       ``(IV) award grants on the basis of merit, quality, 
     and relevance to advancing the national research and 
     extension purposes.
       ``(ii) Competitive awarding.--A grant under this paragraph 
     shall be awarded on a competitive basis.
       ``(iii) Terms.--A grant under this paragraph shall have a 
     term that does not exceed 5 years.
       ``(iv) Matching funds.--As a condition of receipts under 
     this paragraph, the Secretary shall require the funding of 
     the grant with equal matching funds from a non-Federal source 
     if the grant is--
       ``(I) for applied research that is commodity-specific; and
       ``(II) not of national scope.
       ``(v) Administrative costs.--
       ``(I) In general.--The Secretary may use not more than 4 
     percent of the funds made available under this paragraph for 
     administrative costs incurred by the Secretary in carrying 
     out this paragraph.
       ``(II) Limitation.--Funds made available under this 
     paragraph shall not be used--
       ``(aa) for the construction of a new building or the 
     acquisition, expansion, remodeling, or alteration of an 
     existing building (including site grading and improvement and 
     architect fees); or
       ``(bb) in excess of ten percent of the annual allocation 
     for commodity-specific projects not of the national scope.
       ``(d) Limitations.--No funds from the Fund for Rural 
     America may be used for an activity specified in subsection 
     (c) if the current level of appropriations for the activity 
     is less than 90 percent of the 1996 fiscal year 
     appropriations for the activity adjusted for inflation.''
                                 ______


                        SIMON AMENDMENT NO. 3431

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

       At the appropriate place insert the following:
       ``Of funds otherwise available to the Commodity Credit 
     Corporation, not less than $120,000,000 shall be made 
     available for basic and applied research designed to promote 
     soybean production.''
                                 ______


                        LEAHY AMENDMENT NO. 3432

  (Ordered to lie on the table.)
  Mr. LEAHY submitted an amendment intended to be proposed by him to 
the amendment No. 3252 proposed by him to the bill (S. 1541), supra; as 
follows:

       In section 561 at the appropriate place, insert the 
     following paragraph.
       (4) loans to intermediary lenders pursuant to the Rural 
     Development Loan Fund (42 USC 9812 (a)).
                                 ______


                        GRAMS AMENDMENT NO. 3433

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

       At the appropriate place add the following:
       ``It is the Sense of the Senate that prior to the 
     consideration of any health care portability legislation the 
     Congress and the President must ensure the solvency of the 
     Medicare Trust Funds.''
                                 ______


             BUMPERS (AND PRYOR) AMENDMENTS NOS. 3434-3437

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

                           Amendment No. 3434

       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 subsequently 
     established by law.''
                                                                    ____


                          Amendment No.  3435

       Strike all after the first word and insert the following:
       ``Any other provision of this Act, any program authorized 
     to be administered by the Secretary of Agriculture on 
     January, 1995, modified by this Act, shall be deemed 
     authorized under the same terms and conditions as existed on 
     January 1, 1995, until December 31, 1996, unless other terms 
     and conditions are subsequently established by law.''
                                                                    ____


                           Amendment No. 3436

       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, 1997, unless other terms and conditions are subsequently 
     established by law.''

                           Amendment No. 3437

       Strike all after the first word and insert the following.
       ``Any other provision of this Act, any program authorized 
     to be administered by the Secretary of Agriculture on January 
     1, 1995, modified by this Act, shall be deemed authorized 
     under the same terms and conditions as existed on January 1, 
     1995, until December 31, 1997, unless other terms and 
     conditions are subsequently established by law.''
                                 ______


                      McCONNELL AMENDMENT NO. 3438

  (Ordered to lie on the table.)
  Mr. McCONNELL submitted an amendment intended to be proposed by him 
to the amendment No. 3184 proposed by Mr. Leahy to the bill (S. 1541), 
supra, as follows:


[[Page S995]]

       At the appropriate place, insert the following:

     SEC. . FLUID MILK PROMOTION PROGRAM EXTENSION.

       Section 19990(a) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 6614(a)) is amended by 
     striking ``1996'' and inserting ``2002''
                                 ______


                        GRAMS AMENDMENT NO. 3439

  (Ordered to lie on the table.)
  Mr. GRAMS submitted an amendment intended to be proposed by him to 
the amendment No. 3184 proposed by Mr. Leahy to the bill (S. 1541), 
supra; as follows:

       Beginning on page 1-73, strike line 12 and all that follows 
     through page 1-75, line 7.
                                 ______


                     CONRAD AMENDMENT NO. 3440-3441

  (Ordered to lie on the table.)
  Mr. CONRAD submitted two amendments intended to be proposed by him to 
amendment No. 3252 submitted by Mr. Lugar to amendment No. 3184 
proposed by Mr. Leahy to the bill S. 1541, supra; as follows:

                           Amendment No. 3440

       On page 4-45, strike lines 9 through 13 and insert the 
     following:
       ``The Secretary may not reschedule or reamortize a loan for 
     a borrower under this title who has not requested 
     consideration under section 331D(e) unless the borrower--
       ``(1) after paying all family living and operating 
     expenses, excluding interest, can pay a portion, as 
     determined by the Secretary, of the interest due on the loan; 
     and
       ``(2) has disposed of all normal income security.
                                                                    ____


                           Amendment No. 3441

       On page 4-29, strike lines 21 and 22 and insert the 
     following:
       (i) by striking ``exceed 15 percent'' and all that follows 
     through ``Code'' and inserting the following: ``exceed--
       ``(i) 25 percent of the median acreage of the farms or 
     ranches, as the case may be, in the county in which the farm 
     or ranch operations of the applicant are located, as reported 
     in the most recent census of agriculture taken under section 
     142 of title 13, United States Code.
                                 ______


                 KOHL (AND OTHERS) AMENDMENT NO. 3442.

  Mr. WELLSTONE (for Mr. Kohl for himself, Mr. Feingold, Mr. Wellstone, 
Mr. Pressler, Mr. Lautenberg. Mr. Grams, Mr. Hatch) proposed an 
amendment to amendment No. 3184 proposed by Mr. Leahy to the bill s. 
1541, supra; as follows:

       Beginning on page 1-73, strike line 12 and all that follows 
     through page 1-75, line 7.

                          ____________________