[Congressional Record Volume 148, Number 105 (Monday, July 29, 2002)]
[Senate]
[Pages S7471-S7472]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Roberts, Mr. Conrad, Mr. Johnson, 
        and Mr. Brownback):
  S. 2814. A bill to amend the Farm Security and Rural Investment Act 
of 2002 to clarify the rates applicable to marketing assistance loans 
and loan deficiency payments for other oilseeds; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Mr. DORGAN. Mr. President, today, along with Senators Roberts, 
Conrad, Johnson and Brownback, I am introducing legislation to clarify 
Congressional intent regarding minor oilseed loan rates in the Farm 
Security and Rural Investment Act, FSRIA, of 2002.
  In early June, the United States Department of Agriculture 
incorrectly interpreted the intent of the new farm bill when the Farm 
Service Agency arbitrarily announced a wide range of minor oilseed loan 
rates. For some crops, the loan rate increased substantially, while for 
others, the rates plunged.
  Not once during the farm bill debate was there ever discussion of 
splitting apart minor oilseed loan rates. In fact, the minor oilseed 
industry and farmers alike anticipated a county-level increase in loan 
rates from $9.30 to $9.60/cwt. The announcement by the Farm Service 
Agency caught virtually everyone in the agriculture community by 
surprise.
  This legislation is intended to correct this misinterpretation of the 
new farm bill, and to prevent what will certainly be extreme acreage 
shifts among these crops in the coming years should these rates be 
allowed to stand. These acreage shifts will destroy segments of the 
minor oilseed industry that have been painstakingly developed over a 
number of years.
  For instance, already, users of the oil derived from oil sunflowers 
anticipate supply shortages next year and have indicated they may 
remove sunflower oil from their product mix. Conversely, incentives 
caused by the much higher confectionery sunflower loan rate could 
deluge USDA with massive loan forfeitures of low quality confectionery 
sunflowers if farmers simply grow for the loan rate rather than a 
quality crop that has a market.
  The legislation amends the new farm bill by simply--and redundantly--
listing each minor oilseed's loan rate separately. The legislation also 
reinstates the crambe and sesame seed loan rates that were eliminated 
by USDA.
  This legislation should not be needed. USDA could easily repeal the 
current announcement of minor oilseed loan rates in favor of rates 
consistent with this legislation and the new farm bill, as I and my 
colleagues have asked in recent letters on this issue.
  I request unanimous consent that the text of the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2814

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

     SECTION 1. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS FOR OTHER OILSEEDS.

       (a) Definition of Other Oilseed.--Section 1001(9) of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     7901(9)) is

[[Page S7472]]

     amended by inserting ``crambe, sesame seed,'' after ``mustard 
     seed,''.
       (b) Loan Rates for Nonrecourse Marketing Assistance 
     Loans.--Section 1202 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7932) is amended--
       (1) in subsection (a), by striking paragraph (10) and 
     inserting the following:
       ``(10) In the case of other oilseeds:
       ``(A) In the case of oil sunflower seed, confectionery 
     sunflower seed, and other types of sunflower seed, $.0960 per 
     pound, except that the Secretary shall establish a single 
     sunflower loan rate in each county for all seed described in 
     this subparagraph.
       ``(B) In the case of rapeseed, $.0960 per pound.
       ``(C) In the case of canola, $.0960 per pound.
       ``(D) In the case of safflower, $.0960 per pound.
       ``(E) In the case of flaxseed, $.0960 per pound.
       ``(F) In the case of mustard seed, $.0960 per pound.
       ``(G) In the case of crambe, $.0960 per pound.
       ``(H) In the case of sesame seed, $.0960 per pound.
       ``(I) In the case of another oilseed designated by the 
     Secretary, $.0960 per pound.''; and
       (2) in subsection (b), by striking paragraph (10) and 
     inserting the following:
       ``(10) In the case of other oilseeds:
       ``(A) In the case of oil sunflower seed, confectionery 
     sunflower seed, and other types of sunflower seed, $.0930 per 
     pound, except that the Secretary shall establish a single 
     sunflower loan rate in each county for all seed described in 
     this subparagraph.
       ``(B) In the case of rapeseed, $.0930 per pound.
       ``(C) In the case of canola, $.0930 per pound.
       ``(D) In the case of safflower, $.0930 per pound.
       ``(E) In the case of flaxseed, $.0930 per pound.
       ``(F) In the case of mustard seed, $.0930 per pound.
       ``(G) In the case of crambe, $.0930 per pound.
       ``(H) In the case of sesame seed, $.0930 per pound.
       ``(I) In the case of another oilseed designated by the 
     Secretary, $.0930 per pound.''.
       (c) Repayment of Loans.--Section 1204 of the Farm Security 
     and Rural Investment Act of 2002 (7 U.S.C. 7934) is amended--
       (1) in subsection (a), by striking ``and extra long staple 
     cotton'' and inserting ``extra long staple cotton, oil 
     sunflower seed, confectionery sunflower seed, or any other 
     type of sunflower seed'';
       (2) by redesignating subsection (f) as subsection (g); and
       (3) by inserting after subsection (e) the following:
       ``(f) Repayment Rates For Sunflower Seeds.--The Secretary 
     shall permit the producers on a farm to repay a marketing 
     assistance loan under section 1201 for oil sunflower seed, 
     confectionery sunflower seed, or any other type of sunflower 
     seed at a rate that is the lesser of--
       ``(1) the loan rate established for the commodity under 
     section 1202, plus interest (determined in accordance with 
     section 163 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7283)); or
       ``(2) the repayment rate established (on the basis of the 
     prevailing market price) for oil sunflower seed.''.
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