[Congressional Record Volume 148, Number 133 (Thursday, October 10, 2002)]
[Senate]
[Pages S10370-S10371]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DORGAN (for himself, Mr. Roberts, Mr. Conrad, Mr. Crapo, 
        Mr. Craig, Mr. Burns, Mr. Johnson, Mr. Allard, Mr. Brownback, 
        and Mr. Campbell):
  S. 3094. 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, dry peas, lentils, and 
small chickpeas; to the Committee on Agriculture, Nutrition, and 
Forestry.

[[Page S10371]]

  Mr. DORGAN. Mr. President, today along with Senators Roberts, Conrad, 
Crapo, Craig, Burns, Johnson, Allard, Brownback, and Campbell I am 
introducing legislation to clarify Congressional intent regarding minor 
oilseed and pulse crop loan rates in the Farm Security and Rural 
Investment Act, FSRIA, of 2002. This is a redraft of legislation 
introduced last July.
  In 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 minor oilseed crops, the loan rate increased substantially, 
while for others, the rates plunged. A few months later, in early 
September, the Farm Service Agency continued to err when it announced 
the loan rates for dry peas, lentils and small chickpeas that 
completely ignored the instructions laid down by the Statement of 
Managers that accompanied the conference report of the new farm bill.
  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 and pulse crop 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 crop after the stated loan rate. The 
legislation reinstates the cramby and sesame seed loan rates that were 
eliminated by USDA. The legislation also puts into bill language the 
instructions that were spelled out in the Statement of Managers 
regarding a single loan rate for all sunflowers and the quality grades 
for the loan rates for dry peas, lentils and small chickpeas.
  This legislation should not be needed. USDA could easily repeal the 
current announcement of minor oilseed and pulse crop loan rates in 
favor of rates consistent with this legislation and the new farm bill, 
as I and my colleagues have asked in recent meetings and 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. 3094

       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, DRY PEAS, LENTILS, 
                   AND SMALL CHICKPEAS.

       (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 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, $.0960 per pound for 
     each of the following kinds of oilseeds:
       ``(A) Sunflower seed.
       ``(B) Rapeseed.
       ``(C) Canola.
       ``(D) Safflower.
       ``(E) Flaxseed.
       ``(F) Mustard seed.
       ``(G) Crambe.
       ``(H) Sesame seed.
       ``(I) Other oilseeds designated by the Secretary.'';
       (2) in subsection (b), by striking paragraph (10) and 
     inserting the following:
       ``(10) In the case of other oilseeds, $.0930 per pound for 
     each of the following kinds of oilseeds:
       ``(A) Sunflower seed.
       ``(B) Rapeseed.
       ``(C) Canola.
       ``(D) Safflower.
       ``(E) Flaxseed.
       ``(F) Mustard seed.
       ``(G) Crambe.
       ``(H) Sesame seed.
       ``(I) Other oilseeds designated by the Secretary.'';
       (3) by adding at the end the following:
       ``(c) Single County Loan Rate for Other Oilseeds.--The 
     Secretary shall establish a single loan rate in each county 
     for each kind of other oilseeds described in subsections 
     (a)(10) and (b)(10).
       ``(d) Quality Grades for Dry Peas, Lentils, and Small 
     Chickpeas.--The loan rate for dry peas, lentils, and small 
     chickpeas shall be based on--
       ``(1) in the case of dry peas, United States feed peas;
       ``(2) in the case of lentils, United States number 3 
     lentils; and
       ``(3) in the case of small chickpeas, United States number 
     3 small chickpeas that drop below a 20/64 screen.''.
       (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, and 
     confectionery and each other kind of sunflower seed (other 
     than oil sunflower seed)'';
       (2) by redesignating subsection (f) as subsection (h); and
       (3) by inserting after subsection (e) the following:
       ``(f) Repayment Rates For Confectionery and Other Kinds of 
     Sunflower Seeds.--The Secretary shall permit the producers on 
     a farm to repay a marketing assistance loan under section 
     1201 for confectionery and each other kind of sunflower seed 
     (other than oil 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 for oil sunflower 
     seed.
       ``(g) Quality Grades for Dry Peas, Lentils, and Small 
     Chickpeas.--The loan repayment rate for dry peas, lentils, 
     and small chickpeas shall be based on the quality grades for 
     the applicable commodity specified in section 1202(d).''.
       (d) Effective Date.--This section and the amendments made 
     by this section take effect as if included in the provisions 
     of the Farm Security and Rural Investment Act of 2002 (Public 
     Law 107-171) to which this section and the amendments relate.
                                 ______