[Congressional Record Volume 147, Number 150 (Friday, November 2, 2001)]
[Senate]
[Pages S11413-S11417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 1628. A bill to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; to the Committee on Agriculture, Nutrition, and Forestry.
  Mr. HARKIN. Madam President, today I am pleased to introduce the 
Agriculture, Conservation and Rural Enhancement Act of 2001. The 
legislation is a solid starting point for the next farm bill. This bill 
represents a comprehensive, balanced approached that protects farm 
income, promotes conservation, expands production of farm-based 
renewable energy and creates new economic opportunities in

[[Page S11414]]

rural communities. The bill is the right approach to farm policy in the 
21st Century because it builds on successful core farm programs and 
charts a new, conservation-oriented agriculture policy for the future.
  My legislation uses a four-pronged approach to make good on our 
commitments to American farmers and rural communities. These four 
components--promoting conservation, protecting and boosting farm 
income, expanding jobs and economic opportunities in rural communities 
and increasing renewable energy production--provide the solid 
foundation we need to help ensure our farm families and rural areas 
prosper.
  First, conservation is a cornerstone of the bill, including the 
creation of the Conservation Security Act, (CSA). This program provides 
flexible incentives for farmers to engage in new conservation practices 
on working agriculture land and rewards farmers who already employ 
them. In addition to CSA, the bill increases acreage for the 
Conservation Reserve Program and Wetlands Reserve Program. It also 
increases the funding for the Environmental Quality Incentives Program 
as well as the Wildlife Habitat Incentives Program. The bill also 
expands the farm land protection program, enacts a new grassland 
reserve program and permanently authorizes the Resource Conservation 
and Development program.
  While rewarding farmers for conservation practices that benefit all 
of society is an important way to meet our commitment to farmers, 
providing solid income protection is equally important. The bill will 
improve farm income by increasing loan rates for most commodities, 
setting a floor on those rates, continuing fixed direct payments and 
creating a new counter-cyclical income protection system.
  As all of my colleagues are aware, the farm bill must address the 
needs of others in addition to farmers and ranchers. This legislation 
will improve the quality of life for all of America's rural communities 
by creating jobs and economic growth in rural areas. The Rural 
Development title of this bill provides grants and loan programs to 
help create and expand businesses to provide jobs and assists 
communities by helping improve their community facilities. The title 
also expands grants for farmer-based groups, to help them add value to 
their production, helping to boost farm income and create jobs, it 
provides funding to expand broadband access for rural Americans, and 
provides grants to improve firefighter and first responder training.
  The fourth prong of the my approach is increasing renewable energy 
production. This proposal provides a full range of initiatives designed 
to help and encourage farmers and ranchers to develop renewable energy 
projects including wind, solar, biomass and geothermal sources. These 
projects will help boost farm and rural incomes, improve air quality 
and promote the nation's energy security.
  While the bill emphasizes a four-pronged approach, it is 
comprehensive in nature. The bill also includes important titles on 
nutrition, research, forestry, credit, competition, and trade that when 
taken together form a proposal that moves farm policy in the right 
direction in the 21st century.
  I hope the Senate will be able to move quickly on this legislation. I 
will continue to work with members of the Committee on Agriculture, 
Nutrition and Forestry in an open process to help meet our commitments 
to farm families and all members of rural communities.
  I ask unanimous consent to print in the Record a summary of the 
legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                               A Summary

     TITLE I--Commodity Programs
       The bill authorizes the Secretary to enter into contracts 
     with producers of wheat, corn, grain sorghum, barley, oats, 
     rice, soybeans, minor oilseeds, and upland cotton that 
     entitle producers to receive direct payments on eligible 
     cropland for the 2003 through 2006 fiscal years and counter-
     cyclical payments on eligible cropland for the 2002 through 
     2006 crop years. The bill establishes the direct payment rate 
     and a target revenue per crop acre for each of the covered 
     commodities. Producers will report their crop acreage and 
     yields during the base period of 1998 to 2001 to determine 
     updated base acres and payment yields.
       Nonrecourse loans are available for all covered commodities 
     plus extra long staple cotton, wool, mohair, honey, dry peas, 
     lentils and chickpeas. Loan rates are increased from current 
     levels for all covered commodities except oilseeds. The 
     soybean loan rate is decreased by 6 cents per bushel and the 
     loan rates for minor oilseeds are fixed at current rates. The 
     marketing loan provisions and loan deficiency payments of 
     current law are continued. The bill limits loan eligibility 
     across all loan commodities by establishing a maximum number 
     of units eligible for the loan.
       To be eligible for contract payments or loan benefits 
     producers must meet conservation compliance and wetlands 
     protection. Further, contract acreage must use the land for 
     an agricultural or conserving use and can be planted to any 
     crop except most fruits and vegetables.
       The bill extends the milk price support program at $9.90 
     per hundredweight through 2006. It eliminates the marketing 
     assessment on sugar and authorizes the Secretary to implement 
     allotments on domestic sugar production. The bill extends the 
     current peanut program.


                         title ii--Conservation

       The Conservation title provides a comprehensive, national 
     approach to voluntary conservation. For the first time, all 
     farmers and ranchers and livestock owners will have the full 
     range of options for employing conservation practices on 
     their lands in production and for lands taken out of 
     production. The title enhances the existing proven 
     conservation programs by increasing funding and including 
     important policy changes. Two new programs, a broad-based 
     incentive program for all land-based production and a 
     grasslands easement program, complete the array of 
     agricultural conservation programs.
       The centerpiece of the new conservation title is the 
     Conservation Security Act (CSA), a broad-based voluntary 
     locally-driven incentives program for conservation on working 
     land. Farmers receive payments for maintaining or adopting 
     conservation practices. Providing incentive payments to 
     farmers to maintain conservation practices ensures retaining 
     the important environmentally successful accomplishments 
     already occurring on farms and ranches. Using the CSA, 
     farmers and ranchers will have the tools to enhance wildlife 
     habitat and implement environmentally-sound practices on land 
     in production leading to improved water, air and soil quality 
     and increased wildlife populations.
       The bill also increases funding for current conservation 
     programs with a proven record of enhancing natural resources. 
     The bill increases acreage for the Conservation Reserve 
     Program (CRP) to 40 million acres from the current 36.4 
     million acre limit and reserves 4 million acres for the 
     Conservation Reserve Enhancement Program and lands enrolled 
     through the continuous program. The Secretary had the 
     discretion to enroll up to 3 million acres as permanent 
     easements. The lands removed from production and enrolled in 
     CRP have helped to create important habitat for wildlife, 
     improve water quality and reduce soil erosion.
       Through the bill, the up to 250,000 acres of valuable 
     wetlands may be enrolled annually in the Wetlands Reserve 
     Program (WRP) for a 10 year total of 2.5 million acres. WRP 
     has helped to restore over a million acres of wetlands which 
     provide critical wildlife habitat and improve water quality.
       Funding for the Environmental Quality Incentives Program 
     (EQIP) is increased up to $950 million a year, by the fourth 
     year of implementation. These funds includes a $100 million 
     annual fund for livestock operations to obtain loans for the 
     construction of livestock manure management facilities.
       Funding for the Wildlife Habitat Incentives Program ramps 
     up to $100 million annually. In addition to the current 
     provisions to provide cost-share assistance for restoration 
     of wildlife habitat, the Secretary will have the discretion 
     to enroll lands under long-term and permanent easements.
       The Agricultural Land Protection Program (formerly the 
     Farmland Protection Program) is expanded to include the 
     purchase of non-development easements on prairie and ranch 
     land. Over four years, the annual funding ramps to $250 
     million.
       A new grassland reserve program to purchase permanent and 
     long-term easements on up to 1 million acres of grass and 
     prairie lands is created.
       The bill further permanently authorizes the Resource 
     Conservation and Development program to encourage stronger 
     local-federal partnerships for increased conservation and 
     resource-based programs to enhance rural economies and 
     increases access and funding for technical assistance to help 
     farmers implement the conservation programs on agricultural 
     lands.
       Creates the first comprehensive, voluntary approach to 
     conservation incentive payments that provides income to 
     producers who adopt or maintain conservation practices on 
     working lands, including rewarding good actors and open to 
     crop and livestock producers for land-based practices.


                            TITLE III--Trade

       The trade title meets the objectives that Senator Lugar and 
     I agreed to last month--to help develop new export 
     opportunities abroad in commercial markets, and improve the 
     operation and capacity of U.S. food aid programs. The title 
     spends about $2.1 billion over the ten-year period, roughly 
     split between the commercial export programs and food aid 
     programs.

[[Page S11415]]

       While we have seen in recent years that export markets do 
     not serve as a reliable safety net, trade is and will 
     continue to be a key outlet for U.S. agricultural products. 
     Our export programs, such as the export credit programs and 
     the Market Access Program, which we expand and improve in 
     this bill, play an important role in our ability to compete 
     internationally. We also put additional resources into the 
     Cooperator program, which helps our agricultural groups 
     service customers in overseas markets.
       Over the last several decades, the United States has been 
     the world's leading donor in international food aid programs. 
     I firmly believe that our humanitarian activities throughout 
     the developing world must be an important component of our 
     long-term effort to combat terrorism.
       Toward that end, the bill establishes the International 
     Food for Education and Child Nutrition program for a four-
     year period. This proposal was introduced last year by George 
     McGovern and Bob Dole, our former colleagues who once sat in 
     this very chamber. It is based on the simple yet powerful 
     notion that a well-nourished child is more likely to learn, 
     and that the availability of food is more likely to bring 
     that child of a poor family into school in the first place, 
     and out of the factories, fields, and sweat shops of the 
     Third World. The UN's World Food Program estimates that there 
     are 300 million children worldwide in such a situation.
       The trade title provides more resources for the existing 
     Food for Progress program. It also reforms and streamlines 
     the operations of all food aid programs run by the U.S. 
     Department of Agriculture and the U.S. Agency for 
     International Development. These changes should allow the 
     private voluntary organizations who conduct these projects to 
     devote their energy to helping people on the ground rather 
     than to pushing papers through bureaucracies.


                          TITLE IV--Nutrition

       Title IV includes nutrition provisions. Representing the 
     largest of the Federal nutrition programs and up for 
     reauthorization in 2002, the Food Stamp Program is the 
     primary focus of the title. The program mainly assists 
     children (50%), older Americans (10%), and Americans with 
     disabilities (10%). Most of the other participants are 
     individuals in working families. The Food Stamp Program is 
     essential to transition from welfare to work. However, data 
     show that reforms to the program are needed. These include 
     simplifying the program, ensuring a more smooth transition 
     from welfare to work, reforming the quality control system 
     used to evaluate a state's performance, improving outreach 
     efforts to make sure that people who qualify for the program 
     are able to participate, and extending benefits to certain 
     groups made ineligible by welfare reform. Between 1994-98 the 
     number of people who were eligible for the program but did 
     not participate increased by 12 percentage points, while the 
     reliance in emergency feeding sites like soup kitchens and 
     food pantries increased dramatically.
       Some of the provisions that aim to simplify the Food Stamp 
     Program include: allowing the states to conform Food Stamp 
     income rules with those in TANF cash assistance or Medicaid 
     and resource rules with those of TANF; simplifying the way in 
     which housing costs are calculated; encouraging the states to 
     adopt standard deductions, including ones for utility 
     allowances and for people who live in certain group living 
     arrangements; amending the procedure for determining earned 
     income; extending semi-annual reporting to all households, 
     and not just those who have earnings; better conforming to 
     recertification rules in Medicaid, SSI, and SCHIP by allowing 
     periodic redetermination.
       Provisions that will help participants to more successfully 
     transition from welfare to work include: an increase in the 
     standard deduction to adjust for family size and will provide 
     larger families with additional benefits and increasing the 
     length of time that a household can receive transitional 
     benefits when they stop receiving TANF cash assistance. The 
     title also includes provisions that help us to reach out to 
     other people with needs. For example, the bill prohibits 
     cutting off benefits for participants, like the elderly, who 
     tend to be eligible for a small amount of benefits and may 
     want to save them up for up to 6 months before using them. It 
     also allows able-bodied adults without dependents to 
     participate in the Food Stamp Program for 6 out of 24 months, 
     rather than the current 3 out of 36 months, to give them more 
     time to successfully find employment but the bill 
     also eliminates the provision that 80% of all education 
     and training funds made available through the program be 
     made available for this population only. Pilot programs to 
     improve on outreach and access are also included in the 
     bill.
       The quality control system used to assess the states' 
     performance is revamped to be less punitive. The bill does 
     institute new sanction procedures and rewards based on low 
     error rates, compliance with a number of deadlines, and a 
     state's enrollment of working families. Other provisions in 
     the Food Stamp subtitle include expanding the definition of 
     food products to include vitamin-mineral supplements, 
     eliminating federal cost-neutrality rules for Electronic 
     Benefits Transfer (EBT) systems, and several administrative 
     provisions.
       The Personal Responsibility and Work Opportunity Act of 
     1996 eliminated the ability of most legal aliens to 
     participate in the Food Stamp Programs. Over time, a number 
     of bills have restored some of these benefits to some 
     children, older adults, and disabled adults who were in the 
     United States prior to August 22, 1996. This bill 
     concentrates on particularly vulnerable groups by restoring 
     benefits to all legal alien children and the disabled. It 
     also removes a 7 year cap on the ability of refugees/asylees 
     to participate in the program. Finally, it reduces, from 40 
     to 16 quarters, the length of time that individuals have to 
     work in this country before they are eligible to participate 
     in the Food Stamp Program.
       The title also reauthorizes a number of programs like the 
     Food Distribution on Indian Reservations, the Commodity 
     Supplemental Food Program, the Community Food Projects, it 
     consolidates the American Samoa block grant and the Puerto 
     Rico Nutrition Assistance Programs and reauthorizes them, and 
     it reauthorizes and increases the funding by $40 million per 
     year, for the Emergency Food Assistance Program. A 
     Congressional Hunger Fellowship is established, a pilot 
     program through which some schoolchildren will receive free 
     fruits and vegetables is conducted. A separate title includes 
     funding for the Senior Farmers' Market Program as well as for 
     additional commodities for the School Lunch Program.


                            TITLE V--Credit

       The credit title reauthorizes all USDA farm direct and 
     guaranteed loan programs and increases the loan authorization 
     levels: $3.75 billion for each fiscal year; with $750 million 
     for direct loans annually--$200 million for farm ownership 
     (FO) loans and $550 million for farm operating (OL) loans; 
     and $3 billion for guaranteed loans--$1 billion for FO loans 
     and $2 billion for OL loans.
       The main emphasis of the title is to make credit more 
     accessible to beginning farmers and ranchers. Among other 
     things, the title broadens the eligibility for direct 
     ownership loans to those who have participated in the 
     business operations of a farm operation for at least three 
     years, as opposed to being the sole manager of the 
     operation. The title provides the Secretary the authority 
     to refinance ``bridge loans'' made by a commercial lender 
     to a beginning farmer or rancher who has been approved for 
     a USDA farm ownership loan but is awaiting funding. The 
     title increases the limit on direct farm ownership debt 
     for a beginning farmer or rancher from $200,000 to 
     $250,000 and indexes the amount to inflation. The title 
     provides that as part of the down payment program for 
     beginning farmers and ranchers, USDA shall finance 40 
     percent of the loan (current law is 30 percent) and 
     provide a repayment term of 20 years (current law is 10 
     years). The title directs the Secretary to create a pilot 
     program in which the Secretary will guarantee loans made 
     by a private seller of a farm or ranch to a qualified 
     beginning farmer on a contract land sale basis. The title 
     provides that beginning farmers and ranchers receive an 
     additional 1 percent interest rate subsidy (capped at 4 
     percent) over non-beginning farmers (capped at 3 percent) 
     who participate in the program and increases the maximum 
     amount of funds for this program to $750 million and 
     provides that 25 percent of the program's subsidized funds 
     are reserved for assisting beginning farmers and ranchers 
     until April 1 of each fiscal year.
       The title also makes other changes to provisions of the 
     Consolidate Farm and Rural Development Act to improve the 
     USDA farm lending programs. Among other things, the title 
     allows the Secretary to waive term limits for a farmer or 
     rancher, one time only, for a period of two years. The title 
     allows the Secretary to waive term limitations for Native 
     American farm operations on tribal lands if she determines 
     that commercial credit is not generally available for such 
     operations. The title expands USDA's authority to allow the 
     interest rate on a direct loan that is being rewritten to be 
     the rate in effect on the date that a borrower applies for 
     servicing. The title reduces paperwork requirements by 
     raising the low documentation loan amount for a guaranteed 
     loan from $50,000 to $100,000. The title makes permanent the 
     interest rate reduction program. The title provides that the 
     Secretary work with the State Conservationists to consider 
     selling or granting easements on inventory land for the 
     purpose of farmland preservation. The title also provides 
     those who owe recapture amounts on shared appreciation 
     agreements or those who have amortized the recapture amounts, 
     the option of providing farmland protection and conservation 
     use easements on their land in return for forgiveness of the 
     recapture amount.
       Finally, the title amends the authorities provided to 
     Farmer Mac and the Farm Credit System. The title increases 
     the number of Farmer MAC Board of Directors from 15 to 17 and 
     provides that the chairperson of the board will be elected by 
     the board. The title provides the Farm Credit System 
     authority to finance agriculturally related equipment and 
     goods overseas irrespective of whether these goods will be 
     used on the farm in the importing country. The title provides 
     the Farm Credit System Insurance Corporation the ability to 
     recognize the lower risk associated with the certain 
     guaranteed loans and to adjust premiums charged to the Farm 
     Credit System accordingly. The title also eliminates 
     certain ``territorial concurrence'' requirements on Farm 
     Credit System lenders so that the lenders can participate 
     in syndicated or ``participation'' loans in other

[[Page S11416]]

     Farm Credit System geographic territories without seeking 
     the permission of the Farm Credit System lender in that 
     territory.


                      title vi--rural development

       The Rural Development Title focuses on need to improve the 
     ability of rural businesses to acquire capital, particularly 
     equity capital. It provides considerable assistance to help 
     communities develop and economic development strategies and 
     it provides for improved facilities, particularly to make 
     broadband access far more available in Rural America. I am 
     particularly pleased to include a provision to provide for 
     training for fire fighters and first responders.
       The limited availability of equity capital is a significant 
     obstacle to business development and growth in rural 
     communities. The Rural Development Title addresses this 
     problem by establishing two new programs to spur equity 
     investment in rural America. First, the National Rural 
     Cooperative and Business Equity Fund provides up to $150 
     million in federal funds, to be matched by funds from private 
     investors. The Secretary of Agriculture will guarantee 50% of 
     the investments by private investors up to a total guarantee 
     of $300 million. The Fund will make equity and semi-equity 
     investments in a variety of rural businesses, with a 
     significant share of those being smaller enterprises.
       Second, the Rural Business Investment Program is modeled on 
     the Small Business Administration's Small Business Investment 
     Program. It creates Rural Business Investment Companies. It 
     also provides grants for technical assistance.
       Both new equity investment programs are based on business 
     development programs administered by SBA, which have been 
     successful in spurring economic growth but have not 
     adequately addressed the needs of rural communities. Both new 
     programs make use of SBA expertise by requiring the Secretary 
     of Agriculture to work with SBA to administer the programs.
       The Rural Development Title expands eligibility for Value-
     Added Agricultural Market Development Grants and provides $75 
     million a year in funds from the Commodity Credit Corporation 
     to carry out the grant program. It also creates a 5% reserve 
     within the program for certified organic agricultural 
     products. It broadens the business and industry loan 
     guarantee program. It funds a new microloan program to assist 
     rural entrepreneurs in starting new businesses with small 
     loans and continuing technical assistance. It establishes 
     a simplified ``low documentation'' application process for 
     certain rural development loan and grant programs to 
     reduce administrative burdens for participants. It insures 
     continued funding for the Rural Economic Development Loan 
     and Grant Program, which provides loans and grants to 
     Rural Electric Cooperatives, through fees on guarantees of 
     RUS qualified bonds. It authorizes grants to 
     multigovernmental organizations to provide assistance to 
     local governments.
       This Title also promotes improvements in rural 
     infrastructure and emergency response capabilities by: 
     providing $100 million a year in funding for loans and grants 
     to improve access to broadband in rural areas, and $75 
     million over the life of the bill to improve access to local 
     television in rural areas; providing full funding to 
     eliminate the backlog in pending applications for certain 
     rural development loan and grants; creating a Rural Endowment 
     Program that provides initial planning and development grants 
     to rural areas that develop long-range, comprehensive 
     community development strategies to improve infrastructure 
     and promote economic development; reserving funds within the 
     community facilities program for day care and senior care 
     facilities; authorizing grants to regional development 
     organizations; and providing $30 million a year in funding 
     for training of firefighters and emergency medical personnel.


                          title vii--research

       The Research Title extends existing research authorizations 
     until 2006. Examples of these programs include: grants and 
     fellowships for food and agricultural sciences education, 
     education grants programs for Hispanic-serving institutions, 
     funding for policy research centers, and research equipment 
     grants. The special authorization for biosecurity planning 
     and response is amended to create a special account for 
     appropriations for agricultural research, education, and 
     extension activities for biosecurity planning and response. 
     Under this section funds may be used under any authority 
     available to the Secretary in order to reduce the 
     vulnerability of the United States food and agricultural 
     system to chemical or biological attack.
       The Research Title increases funding for the Initiative for 
     Future Food and Agriculture Systems. This program directs 
     research funding to agriculture priority areas through a 
     competitive grant system.
       The Research Title creates a new program for Rural Research 
     funded at $15 million a year. The program authorizes a fund 
     for rural policy research on topics such as: rural 
     sociology, effects of demographic change, needs of groups 
     of rural citizens, rural community development, rural 
     infrastructure, rural business development, rural 
     education and extension programs, and rural health. These 
     programs will help discover the policy tools necessary to 
     create a solid foundation within rural communities which 
     will sustain long-term growth.
       The Research Title creates a new program for beginning 
     farmers and ranchers at a level of $15 million a year. The 
     program will provide competitive grants to support new and 
     established local and regional training, education, outreach, 
     and technical assistance initiatives aimed at beginning 
     farmers or ranchers. Among other advantages, this program 
     will allow new farmers or ranchers to acquire 
     entrepreneurial, financial, and other business skills; 
     conservation assistance; risk management education; 
     innovative farm and ranch transfer strategies; and basic 
     livestock and crop farming practices. In addition, 25 percent 
     of the funds are set aside to be used to support programs and 
     services that address the needs of limited resource and 
     socially disadvantaged beginning farmers or ranchers.


                          TITLE VIII--Forestry

       Federal forestry assistance for non-federal landowners has 
     been a part of US Department of Agriculture programs for more 
     than a century. We continue the Department's longstanding 
     commitment to provide important forestry assistance to 
     private landowners in the forestry title of the farm bill.
       With over nine million non-industrial private forest 
     landowners owning over 330 million acres nationwide, their 
     ability to have access to technical, financial, and 
     educational assistance from government sources will largely 
     determine the quality of those forests and associated public 
     benefits such as clean water and watersheds, wildlife 
     preservation, recreational resources, soil quality, reduced 
     erosion, and forest health and productivity.
       There are several new programs to address a wide array of 
     private forest land issues. The sustainable forest management 
     program will provide cost-share assistance to non-industrial 
     private forest landowners around the country. The program is 
     administered by the Secretary, acting through the State 
     foresters, and in coordination with the State stewardship 
     committees. The program affords states flexibility to address 
     a variety of multiple resource objectives, including soil, 
     air and water quality, soil erosion, agroforestry, fish and 
     wildlife habitat, the control of invasive species, forest 
     health and productivity and the threat of forest 
     fragmentation and catastrophic wildfire.
       There is also a new program to assist in the development of 
     sustainable forestry cooperatives at least 50% farmer or 
     rancher owned. The program will create new income streams for 
     farmers or ranchers by allowing them to pool their limited 
     forest resources, and sell value added forest products.
       Other important initiatives include a community and private 
     land fire assistance program to focus federal efforts in 
     firefighting at the Federal, State and local levels and a 
     watershed forestry assistance program to prevent water 
     quality degradation, and address watershed issues on non-
     federal forest land.


                            TITLE IX--Energy

       Today we face major national problems of low farm income, 
     energy shortages and price spikes, and environmental problems 
     of air pollution and global warming. Renewable energy from 
     farms will play a major role in solving all three problems. 
     Moreover, renewable energy and energy efficiency programs 
     will enhance the nation's energy security, reduce our 
     dependence on foreign oil supplies, and promote rural 
     economic development across the country.
       The federal government has a major role to play in the 
     transformation to reliance on domestic farm and rural based 
     alternative energy. The energy title establishes several new 
     programs providing incentives to farmers, ranchers and rural 
     small businesses to develop renewable energy and biomass 
     energy supplies on their lands and to increase energy 
     efficiency.
       A competitive grant program is established to have eligible 
     entities provide farmers, ranchers, and rural small 
     businesses energy audits which will provide cost-effective 
     recommendations for energy savings and to examine the 
     potential for renewable energy development.
       A complementary grant and loan program is also established 
     so that farmers, ranchers, and rural small businesses can 
     purchase renewable energy systems and make energy efficiency 
     improvements. Energy savings of 30% or more can often be 
     achieved through implementing energy audit recommendations, 
     and renewable energy systems, such as wind turbines, 
     photovoltaic systems and methane digesters can significantly 
     reduce energy costs and help clean up the environment.
       The title includes a federal agency biobased products 
     purchasing requirement if they are comparable in price, 
     performance, and availability to traditional products. In 
     addition, the Agriculture Department will develop a labeling 
     program for biobased products based on the successful Energy 
     Star program for energy efficiency. This initiative will 
     stimulate the demand for biobased products, such as soybeans, 
     corn, and other commodities and at the same time provide 
     environmental benefits.
       A competitive grant program is also established to support 
     the commercialization of new and emerging technologies for 
     the conversion of biomass into petroleum substitutes. Just as 
     we refine petroleum into gasoline, diesel, propane, and other 
     products, we can refine agricultural wastes into ethanol, 
     plastics, hydrogen fuel, and perhaps products not yet 
     invented.
       A new research and development program to promote 
     understanding of carbon sequestration in agriculture and 
     forestry is also a

[[Page S11417]]

     part of the title. It includes plans to establish benchmarks 
     and best measurement techniques, and includes funding for 
     demonstration projects for monitoring carbon sequestration. 
     This will allow farmers and others to better understand how 
     to store dangerous greenhouse gases, perhaps earning extra 
     income to provide this public benefit.


                          TITLE X--COMPETITION

       The Competition Title amends the Agricultural Fair 
     Practices Act of 1967, the Packers and Stockyards Act of 
     1921, and the Agricultural Marketing Act of 1946.
       The Competition Title includes a subtitle that makes a 
     number of amendments to the Agricultural Fair Practices Act 
     (AFPA) to address unfair and deceptive practices in 
     agricultural commerce. The subtitle establishes the Office of 
     Special Counsel for Competition Matters within the USDA to 
     investigate, prosecute, and promulgate regulations under the 
     AFPA and any other Act the Secretary deems appropriate. The 
     subtitle requires covered persons with annual sales of over 
     $100,000,000 to annually file with the Secretary a report 
     that describes strategic alliances, ownership, joint 
     ventures, subsidiaries, brand names, and interlocking boards 
     of directors in other covered persons. The subtitle defines 
     ``covered persons'' to include a dealer, handler, contractor, 
     processor, or commission merchant of agricultural commodities 
     with sales of over $10,000,000 per year. The subtitle 
     prohibits unfair and deceptive practices on the part of 
     covered persons in the marketing, purchasing, and contracting 
     of agricultural commodities. The subtitle prohibits covered 
     persons from engaging in specific practices in bargaining 
     with producers and producer associations, such as 
     restraining, coercing, retaliating against, or refusing to 
     deal with any producer who exercises his or her right to join 
     and participate in a producer association. The subtitle 
     provides minimum standards in agricultural 
     contracting, including: a requirement to act in good faith 
     in the performance and enforcement of agricultural 
     contracts, and a requirement to include a cover sheet that 
     discloses provisions of the contract including, among 
     other things, duration, factors in payment, renewal and 
     renegotiation standards, and responsibility for 
     environmental liability. The subtitle provides 
     requirements specific to production contracting, 
     including: the right to cancel a production contract 
     within three business days after the date at which the 
     production contract is executed; allowing contract 
     producers to file production contract liens and to receive 
     a security interest in the agricultural commodity or other 
     property of the covered person as allowed in the 
     applicable State law provisions based on Article 9 of the 
     Uniform Commercial Code; requiring the contract producer 
     who made at least a $100,000 investment because of the 
     production contract receive at least 90 days for the 
     contract producer to cure an alleged breach before the 
     covered person terminates the contract, and prohibiting a 
     contractor from requiring additional investments during 
     the term of the contract unless the additional investments 
     are offset by additional consideration and the contract 
     producer agrees in writing that there is an acceptable and 
     satisfactory consideration. The subtitle provides that any 
     aggrieved person may seek injunctions for acts or 
     practices prohibited by the Act; allows any person injured 
     in the business or property of the person by reason of any 
     violation of this Act may sue for a violation to recover 
     damages and recover an additional penalty of up to $1000 
     per violation. The court allows the court to provide 
     reasonable attorney's fees to the prevailing party, and 
     sets the statute of limitation at two years. The subtitle 
     provides that when the Secretary has reasonable cause to 
     believe that any covered person has engaged in any act or 
     practice that violates the Act, she may bring a civil 
     action in the U.S. district court to request preventative 
     relief. The subtitle provides that a producer of an 
     agricultural product or service may execute, as a clause 
     in an agricultural contract, an assignment of dues or fees 
     to an association of producers authorized by contract and 
     requires the covered person to deduct the portion from the 
     contract and make a payment to the producer association on 
     behalf of the producer.
       The Title amends the Packers and Stockyards Act to provide 
     the Secretary with jurisdiction over live poultry dealers who 
     deal in all types of poultry, not just poultry for slaughter 
     and provide the Secretary the authority to bring 
     administrative actions against live poultry dealers. The 
     title also allows the Secretary to seek outside counsel in 
     the enforcement of the Packers and Stockyards Act.
       The Title includes a subtitle to amend the Agricultural 
     Marketing Act of 1946 to require that retailers notify 
     consumers at the final point of sale of the country of origin 
     for beef, pork, lamb, ground beef, ground pork, ground lamb, 
     perishable agricultural commodities, and whole farm-raised 
     fish. The subtitle provides that the Secretary may require 
     that any person that prepares, stores, handles, or 
     distributes a covered commodity for retail sale maintain a 
     verifiable recordkeeping audit trail that will permit the 
     Secretary to ensure compliance with regulations promulgated 
     by the Secretary. The subtitle provides that section 253 of 
     the Agricultural Marketing Act of 1946 shall be the 
     enforcement provision of the subtitle.
       The Title also requires the Secretary to conduct a 
     referendum among persons covered by an order in effect under 
     a commodity promotion law to determine whether the persons 
     favor the termination of the order at least once every five 
     years. The referenda would be conducted in accord with the 
     terms and conditions of the applicable order and commodity 
     promotion law consistent with this section. The title allows 
     eligible persons to vote in a referendum by mail ballot or by 
     such other method, instead of in-person voting, prescribed by 
     the Secretary as will reduce the burden on voters and ensure 
     the integrity of the referendum.
       The Title also amends the Perishable Agricultural 
     Commodities Act to allow the Secretary to initiate 
     investigations of alleged violations of PACA.
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