[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 1037-1044]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2845. Mr. McCONNELL proposed an amendment to amendment SA 2471 
submitted by Mr. Daschle and intended to be proposed to the bill (S. 
1731) 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; as 
follows:

       On page 128, after line 8, add the following:

     SEC. 1__. REDUCTION OF COMMODITY BENEFITS TO IMPROVE 
                   NUTRITION ASSISTANCE.

       (a) Income Protection Prices for Counter-Cyclical 
     Payments.--Section 114(c) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     111) is amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.4460 per bushel.
       ``(B) Corn, $2.3472 per bushel.
       ``(C) Grain sorghum, $2.3472 per bushel.
       ``(D) Barley, $2.1973 per bushel.
       ``(E) Oats, $1.5480 per bushel.
       ``(F) Upland cotton, $0.6793 per pound.
       ``(G) Rice, $9.2914 per hundredweight.
       ``(H) Soybeans, $5.7431 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.1049 per pound.''.
       (b) Loan Rates for Marketing Assistance Loans.--
       (1) In general.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     123(a)) is amended to read as follows:

     ``SEC. 132. LOAN RATES.

       ``The loan rate for a marketing assistance loan under 
     section 131 for a loan commodity shall be--
       ``(1) in the case of wheat, $2.9960 per bushel;
       ``(2) in the case of corn, $2.0772 per bushel;
       ``(3) in the case of grain sorghum, $2.0772 per bushel;

[[Page 1038]]

       ``(4) in the case of barley, $1.9973 per bushel;
       ``(5) in the case of oats, $1.4980 per bushel;
       ``(6) in the case of upland cotton, $0.5493 per pound;
       ``(7) in the case of extra long staple cotton, $0.7965 per 
     pound;
       ``(8) in the case of rice, $6.4914 per hundredweight;
       ``(9) in the case of soybeans, $5.1931 per bushel;
       ``(10) in the case of oilseeds (other than soybeans), 
     $0.0949 per pound;
       ``(11) in the case of graded wool, $1.00 per pound;
       ``(12) in the case of nongraded wool, $.40 per pound;
       ``(13) in the case of mohair, $2.00 per pound;
       ``(14) in the case of honey, $.60 per pound;
       ``(15) in the case of dry peas, $6.78 per hundredweight;
       ``(16) in the case of lentils, $12.79 per hundredweight;
       ``(17) in the case of large chickpeas, $17.44 per 
     hundredweight; and
       ``(18) in the case of small chickpeas, $8.10 per 
     hundredweight.''.
       (2) Adjustment of loans.--
       (A) In general.--The amendment made by section 123(b) is 
     repealed.
       (B) Applicability.--Section 162 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7282) shall be 
     applied and administered as if the amendment made by section 
     123(b) had not been enacted.
       (c) Food Stamp Program.--
       (1) Simplified resource eligibility limit.--Section 5(g)(1) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)(1)) is 
     amended by striking ``a member who is 60 years of age or 
     older'' and inserting ``an elderly or disabled member''.
       (2) Increase in benefits to households with children.--
     Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow a standard deduction for 
     each household that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of the income standard of eligibility 
     established under subsection (c)(1); but
       ``(ii) not less than the minimum deduction specified in 
     subparagraph (E).
       ``(B) Guam.--The Secretary shall allow a standard deduction 
     for each household in Guam that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2004;
       ``(ii) 8.5 percent for each of fiscal years 2005 through 
     2007;
       ``(iii) 9 percent for each of fiscal years 2008 through 
     2010; and
       ``(iv) 10 percent for each fiscal year thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.
       (3) Effectiveness of certain provisions.--Sections 413 and 
     165(c)(1) shall have no effect.
                                  ____

  SA 2846. Mr. ENZI proposed an amendment to amendment SA 2471 
submitted by Mr. Daschle and intended to be proposed to the bill (S. 
1731) 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; as 
follows:

       On page 337, strike line 11 and insert the following:

     SEC. 309. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE LAMB 
                   TO AFGHANISTAN.

       Title II of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1721 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 209. PILOT EMERGENCY RELIEF PROGRAM TO PROVIDE LIVE 
                   LAMB TO AFGHANISTAN.

       ``(a) In General.--The President may establish a pilot 
     emergency relief program under this title to provide live 
     lamb to Afghanistan on behalf of the people of the United 
     States.
       ``(b) Report.--Not later than January 1, 2004, the 
     Secretary shall submit to Congress a report that--
       ``(1)(A) evaluates the success of the program under 
     subsection (a); or
       ``(B) if the program has not succeeded or has not been 
     implemented, explains in detail why the program has not 
     succeeded or has not been implemented; and
       ``(2) discusses the feasibility and desirability of 
     providing assistance in the form of live animals.''.
                                  ____

  SA 2847. Mr. WELLSTONE proposed an amendment to amendment SA 2471 
submitted by Mr. Daschle and intended to be proposed to the bill (S. 
1731) 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; as 
follows:

       Beginning on page 217, strike line 12 and all that follows 
     through page 235, line 6 and insert the following:
       (iii) Requirement.--A comprehensive nutrient management 
     plan shall meet all Federal, State, and local water quality 
     and public health goals and regulations, and in the case of a 
     large confined livestock operation (as defined by the 
     Secretary), shall include all necessary and essential land 
     treatment practices and determined by the Secretary.
       (3) Eligible land.--The term ``eligible land'' means 
     agriculture land (including cropland, grassland, rangeland, 
     pasture, private nonindustrial forest land and other land on 
     which crops or livestock are produced), including 
     agricultural land that the Secretary determines poses a 
     serious threat to soil, water, or related resources by reason 
     of the soil types, terrain, climatic, soil, topographic, 
     flood, or saline characteristics, or other factors or natural 
     hazards.
       (4) Innovative technology.--The term ``innovative 
     technology'' means a new conservation technology that, as 
     determined by the Secretary--
       (A) maximizes environmental benefits;
       (B) complements agricultural production; and
       (C) may be adopted in a practical manner.
       (5) Land management practice.--The term ``land management 
     practice'' means a site-specific nutrient or manure 
     management, integrated pest management, irrigation 
     management, tillage or residue management, grazing 
     management, air quality management, or other land management 
     practice carried out on eligible land that the Secretary 
     determines is needed to protect from degradation, in the most 
     cost-effective manner, water, soil, or related resource.
       (6) Livestock.--The term ``livestock'' means dairy cattle, 
     beef cattle, laying hens, broilers, turkeys, swine, sheep, 
     and other such animals as are determined by the Secretary.
       (7) Managed grazing.--The term ``managed grazing'' means 
     the application of 1 or more practices that involve the 
     frequent rotation of animals on grazing land to--
       (A) enhance plant health;
       (B) limit soil erosion;
       (C) protect ground and surface water quality; or
       (D) benefit wildlife.
       (8) Maximize environmental benefits per dollar expended.--
       (A) In general.--The term ``maximize environmental benefits 
     per dollar expended'' means to maximize environmental 
     benefits to the extent the Secretary determines is 
     practicable and appropriate, taking into account the amount 
     of funding made available to carry out this chapter.
       (B) Limitation.--The term ''maximize environmental benefits 
     per dollar expended'' does not require the Secretary--
       (i) to require the adoption of the least cost practice or 
     technical assistance; or
       (ii) to require the development of a plan under section 
     1240E as part of an application for payments or technical 
     assistance.
       (9) Practice.--The term ``practice'' means 1 or more 
     structural practices, land management practices, and 
     comprehensive nutrient management planning practices.
       (10) Producer.--
       (A) In general.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper that--
       (i) shares in the risk of producing any crop or livestock; 
     and
       (ii) is entitled to share in the crop or livestock 
     available for marketing from a farm (or would have shared had 
     the crop or livestock been produced).
       (B) Hybrid seed growers.--In determining whether a grower 
     of hybrid seed is producer, the Secretary shall not take into 
     consideration the existence of hybrid seed contract.
       (11) Program.--The term ``program'' means the environmental 
     quality incentives program comprised of sections 1240 through 
     1240J.
       (12) Structural practice.--The term ``structural practice'' 
     means--
       (A) the establishment on eligible land of a site-specific 
     animal waste management facility, terrace, grassed waterway, 
     contour grass strip, filterstrip, tailwater pit, permanent 
     wildlife habitat, constructed wetland, or

[[Page 1039]]

     other structural practice that the Secretary determines is 
     needed to protect, in the most cost effective manner, water, 
     soil, or related resources from degradation; and
       (B) the capping of abandoned wells on eligible land.

     SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL 
                   QUALITY INCENTIVES PROGRAM.

       (a) Establishment.--
       (1) In general.--During each of the 2002 through 2006 
     fiscal years, the Secretary shall provide technical 
     assistance, cost-share payments, and incentive payments to 
     producers that enter into contracts with the Secretary under 
     the program.
       (2) Eligible practices.--
       (A) Structural practices.--A producer that implements a 
     structural practice shall be eligible for any combination of 
     technical assistance, cost-share payments, and education.
       (B) Lands management practices.--A producer that performs a 
     land management practice shall be eligible for any 
     combination of technical assistance, incentive payments, and 
     education.
       (C) Comprehensive nutrient management planning.--A producer 
     that develops a comprehensive nutrient management plan shall 
     be eligible for any combination of technical assistance, 
     incentive payments, and education.
       (3) Education.--The Secretary may provide conservation 
     education at national, State, and local levels consistent 
     with the purposes of the program to--
       (A) any producer that is eligible for assistance under the 
     program; or
       (B) any producer that is engaged in the production of an 
     agricultural commodity.
       (b) Application and Term.--With respect to practices 
     implemented under this program--
       (1) a contract between a producer and the Secretary may--
       (A) apply to 1 or more structural practices, land 
     management practices, and comprehensive nutrient management 
     planning practices; and
       (B) have a term of not less than 3, or more than 10 years, 
     as determined appropriate by the Secretary, depending on the 
     practice or practices that are the basis of the contract;
       (2) a producer may not enter into more than 1 contract for 
     structural practices involving livestock nutrient management 
     during the period of fiscal years 2002 through 2006; and
       (3) a producer that has an interest in more than 1 large 
     confined livestock operation, as defined by the Secretary, 
     may not enter into more than 1 contract for cost-share 
     payments for a storage or treatment facility, or associated 
     waste transport or transfer device, to manage manure, process 
     wastewater, or other animal waste generated by the large 
     confined livestock feeding operation.
       (c) Application and Evaluation.--
       (1) In general.--The Secretary shall establish an 
     application and evaluation process for awarding technical 
     assistance, cost share payments and incentive payments to a 
     producer in exchange for the performance of 1 or more 
     practices that maximize environmental benefits per dollar 
     expended.
       (2) Comparable environmental value.--
       (A) In general.--The Secretary shall establish a process 
     for selecting applications for technical assistance, cost 
     share payments, and incentive payments in any case in which 
     there are numerous applications for assistance for practices 
     that would provide substantially the same level of 
     environmental benefits.
       (B) Criteria.--The process under subparagraph (A) shall be 
     based on--
       (i) a reasonable estimate of the projected cost of the 
     proposals described in the applications; and
       (ii) the priorities established under the program, and 
     other factors, that maximize environmental benefits per 
     dollar expended.
       (3) Consent of owner.--If the producer making an offer to 
     implement a structural practice is a tenant of the land 
     involved in agricultural production, for the offer to be 
     acceptable, the producer shall obtain the consent of the 
     owner of the land with respect to the offer.
       (4) Bidding down.--If the Secretary determines that the 
     environmental values of 2 or more applications for technical 
     assistance, cost-share payments, or incentive payments are 
     comparable, the Secretary shall not assign a higher priority 
     to the application only because it would present the least 
     cost to the program established under the program.
       (d) Cost-Share Payments.--
       (1) In general.--Except as provided in paragraph (2), the 
     cost-share payments provided to a producer proposing to 
     implement 1 or more practices under the program shall be not 
     more than 75 percent of the cost of the practice, as 
     determined by the Secretary.
       (2) Exceptions.--
       (A) Limited resource and beginning farmers.--The Secretary 
     may increase the amount provided to a producer under 
     paragraph (1) to not more than 90 percent if the producer is 
     a limited resource or beginning farmer or rancher, as 
     determined by the Secretary.
       (B) Cost-share assistance from other sources.--Except as 
     provided in paragraph (3), any cost-share payments received 
     by a producer from a State or private organization or person 
     for the implementation of 1 or more practices on eligible 
     land of the producer shall be in addition to the payments 
     provided to the producer under paragraph (1).
       (3) Other payments.--A producer shall not be eligible for 
     cost-share payments for practices on eligible land under the 
     program if the producer receives cost-share payments or other 
     benefits for the same practice on the same land under chapter 
     1 and the program.
       (e) Incentive Payments.--The Secretary shall make incentive 
     payments in an amount and at a rate determined by the 
     Secretary to be necessary to encourage a producer to perform 
     1 or more practices.
       (f) Technical Assistance.--
       (1) In general.--The Secretary shall allocate funding under 
     the program for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided for a fiscal year.
       (2) Amount.--The allocated amount may vary according to--
       (A) the type of expertise required;
       (B) the quantity of time involved; and
       (C) other factors as determined appropriate by the 
     Secretary.
       (3) Limitation.--Funding for technical assistance under the 
     program shall not exceed the projected cost to the Secretary 
     of the technical assistance provided for a fiscal year.
       (4) Other authorities.--The receipt of technical assistance 
     under the program shall not affect the eligibility of the 
     producer to receive technical assistance under other 
     authorities of law available to the Secretary.
       (5) Incentive payments for technical assistance.--
       (A) In general.--A producer that is eligible to receive 
     technical assistance for a practice involving the development 
     of a comprehensive nutrient management plan may obtain an 
     incentive payment that can be used to obtain technical 
     assistance associated with the development of any component 
     of the comprehensive nutrient management plan.
       (B) Purpose.--The purpose of the payment shall be to 
     provide a producer the option of obtaining technical 
     assistance for developing any component of a comprehensive 
     nutrient management plan from a certified provider.
       (C) Payment.--The incentive payment shall be--
       (i) in addition to cost-share or incentive payments that a 
     producer would otherwise receive for structural practices and 
     land management practices;
       (ii) used only to procure technical assistance from a 
     certified provider that is necessary to develop any component 
     of a comprehensive nutrient management plan; and
       (iii) in an amount determined appropriate by the Secretary, 
     taking into account--
       (I) the extent and complexity of the technical assistance 
     provided;
       (II) the costs that the Secretary would have incurred in 
     providing the technical assistance; and
       (III) the costs incurred by the private provider in 
     providing the technical assistance.
       (D) Eligible practices.--The Secretary may determine, on a 
     case by case basis, whether the development of a 
     comprehensive nutrient management plan is eligible for an 
     incentive payment under this paragraph.
       (E) Certification by secretary.--
       (i) In general.--Only persons that have been certified by 
     the Secretary under section 1244(f)(3) shall be eligible to 
     provide technical assistance under this subsection.
       (ii) Quality assurance.--The Secretary shall ensure that 
     certified providers are capable of providing technical 
     assistance regarding comprehensive nutrient management in a 
     manner that meets the specifications and guidelines of the 
     Secretary and that meets the needs of producers under the 
     program.
       (F) Advance payment.--On the determination of the Secretary 
     that the proposed comprehensive nutrient management of a 
     producer is eligible for an incentive payment, the producer 
     may receive a partial advance of the incentive payment in 
     order to procure the services of a certified provider.
       (G) Final payment.--The final installment of the incentive 
     payment shall be payable to a producer on presentation to the 
     Secretary of documentation that is satisfactory to the 
     Secretary and that demonstrates--
       (i) completion of the technical assistance; and
       (ii) the actual cost of the technical assistance.
       (g) Modification or Termination of Contracts.--
       (1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with a 
     producer under this chapter if--
       (A) the producer agrees to the modification or termination; 
     and
       (B) the Secretary determines that the modification or 
     termination is in the public interest.
       (2) Involuntary termination.--The Secretary may terminate a 
     contract under this chapter if the Secretary determines that 
     the producer violated the contract.

     SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

       (a) In General.--In evaluating applications for technical 
     assistance, cost-share

[[Page 1040]]

     payments, and incentive payments, the Secretary shall accord 
     a higher priority to assistance and payments that--
       (1) maximize environmental benefits per dollar expended; 
     and
       (2)(A) address national conservation priorities, 
     including--
       (i) meeting Federal, State, and local environmental 
     purposes focused on protecting air and water quality, 
     including assistance to production systems and practices that 
     avoid subjecting an operation to Federal, State, or local 
     environmental regulatory systems;
       (ii) applications from livestock producers using managed 
     grazing systems and other pasture and forage based systems;
       (iii) comprehensive nutrient management;
       (iv) water quality, particularly in impaired watersheds;
       (v) soil erosion;
       (vi) air quality; or
       (vii) pesticide and herbicide management or reduction;
       (B) are provided in conservation priority areas established 
     under section 1230(c);
       (C) are provided in special projects under section 
     1243(f)(4) with respect to which State or local governments 
     have provided, or will provide, financial or technical 
     assistance to producers for the same conservation or 
     environmental purposes; or
       (D) an innovative technology in connection with a 
     structural practice or land management practice.

     SEC. 1240D. DUTIES OF PRODUCERS.

       (a) To receive technical assistance, cost-share payments, 
     or incentive payments under the program, a producer shall 
     agree--
       (1) to implement an environmental quality incentives 
     program plan that describes conservation and environmental 
     purposes to be achieved through 1 or more practices that are 
     approved by the Secretary;
       (2) not to conduct any practices on the farm or ranch that 
     would tend to defeat the purposes of the program;
       (3) on the violation of a term or condition of the contract 
     at any time the producer has control of the land--
       (A) if the Secretary determines that the violation warrants 
     termination of the contract--
       (i) to forfeit all rights to receive payments under the 
     contract; and
       (ii) to refund to the Secretary all or a portion of the 
     payments received by the owner or operator under the 
     contract, including any interest on the payments, as 
     determined by the Secretary; or
       (B) if the Secretary determines that the violation does not 
     warrant termination of the contract, to refund to the 
     Secretary, or accept adjustments to, the payments provided to 
     the owner or operator, as the Secretary determines to be 
     appropriate;
       (4) on the transfer of the right and interest of the 
     producer in land subject to the contract, unless the 
     transferee of the right and interest agrees with the 
     Secretary to assume all obligations of the contract, to 
     refund all cost-share payments and incentive payments 
     received under the program, as determined by the Secretary;
       (5) to supply information as required by the Secretary to 
     determine compliance with the program plan and requirements 
     of the program;
       (6) to comply with such additional provisions as the 
     Secretary determines are necessary to carry out the program 
     plan; and
       (7) to submit a list of all confined livestock feeding 
     operations wholly or partially owned or operated by the 
     applicant.

     SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

       (A) In General.--To be eligible to receive technical 
     assistance, cost-share payments, or incentive payments under 
     the program, a producer of a livestock or agricultural 
     operation shall submit to the Secretary for approval a plan 
     of operations that specifies practices covered under the 
     program, and is based on such terms and conditions, as the 
     Secretary considers necessary to carry out the program, 
     including a description of the practices to be implemented 
     and the purposes to be met by the implementation of the plan, 
     and in the case of confined livestock feeding operations, 
     development and implementation of a comprehensive nutrient 
     management plan, and in the case of confined livestock 
     feeding operations, development and implementation of a 
     comprehensive nutrient management plan.
       (b) Avoidance of Duplication.--The Secretary shall, to the 
     maximum extent practicable, eliminate duplication of planning 
     activities under the program and comparable conservation 
     programs.

     SEC. 1240F. DUTIES OF THE SECRETARY.

       (a) To the extent appropriate, the Secretary shall assist a 
     producer in achieving the conservation and environmental 
     goals of a program plan by--
       (1) providing technical assistance in developing and 
     implementing the plan;
       (2) providing technical assistance, cost-share payments, or 
     incentive payments for developing and implementing 1 or more 
     practices, as appropriate;
       (3) providing the producer with information, education, and 
     training to aid in implementation of the plan; and
       (4) encouraging the producer to obtain technical 
     assistance, cost-share payments, or grants from other 
     Federal, State, local, or private sources.

     SEC. 1240G. LIMITATION ON PAYMENTS.

       (a) In General.--Subject to subsection (b), the total 
     amount of cost-share and incentive payments paid to a 
     producer under this chapter shall not exceed--
       (1) $30,000 for any fiscal year, regardless of whether the 
     producer has more than 1 contract under this chapter for the 
     fiscal year;
       (2) $90,000 for a contract with a term of 3 years;
       (3) $120,000 for a contract with a term of 4 years; or
       (4) $150,000 for a contract with a term of more than 4 
     years.
       (b) Attribution.--An individual or entity shall not 
     receive, directly or indirectly, total payments from a single 
     or multiple contracts this chapter that exceed $30,000 for 
     any fiscal year.
       (c) Exception to Annual Limit.--The Secretary may exceed 
     the limitation on the annual amount of a payment to a 
     producer under subsection (a)(1) if the Secretary determines 
     that a larger payment is--
       (1) essential to accomplish the land management practice or 
     structural practice for which the payment is made to the 
     producer; and
       (2) consistent with the maximization of environmental 
     benefits per dollar expended and the purposes of this 
     chapter.
       (d) Verification.--The Secretary shall identify individuals 
     and entities that are eligible for a payment under the 
     program using social security numbers and taxpayer 
     identification numbers, respectively.

     
                                  ____
  SA 2848. Mr. LUGAR (for Mr. Gramm) proposed an amendment to amendment 
SA 2471 submitted by Mr. Daschle and intended to be proposed to the 
bill (S. 1731) 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; as 
follows:

       At the appropriate place insert the following:
       (1) Title XII of H.R. 5426 of the 106th Congress, as 
     introduced on October 6, 2000 and as enacted by Public Law 
     106-387 is hereby repealed.
                                  ____

  SA 2849. Mr. LUGAR (for Mr. Gramm) proposed an amendment to amendment 
SA 2471 submitted by Mr. Daschle and intended to be proposed to the 
bill (S. 1731) 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; as 
follows;

       At the appropriate place insert the following:
       Section 1205 of the Hass Avocado Promotion, Research, and 
     Information Act (contained in H.R. 5426 of the 106th 
     Congress, as introduced on October 6, 2000 and as enacted by 
     Public Law 106-387) is amended--
       (1) in paragraph (b)(2) by striking subparagraph (A) and 
     inserting in lieu thereof:
       ``(A) In general.--The order shall provide that the 
     Secretary shall appoint the members of the Board, and any 
     alternates, from among domestic producers and importers of 
     Hass avocados subject to assessments under the order to 
     reflect the proportion of domestic production and imports 
     supplying the United States market, which shall be based on 
     the Secretary's determination of the average volume of 
     domestic production of Hass avocados proportionate to the 
     average volume of imports of Hass avocados in the United 
     States over the previous three years.
       (2) in paragraph (b)(2)(B) by striking ``under subparagraph 
     (A)(iii) on the basis of the amount of assessments collected 
     from producers and importers over the immediately preceding 
     three-year period'' and inserting ``under subparagraph (A)''.
       (3) in paragraph (h)(1)(C)(iii) by striking everything in 
     the first sentence following ``by the importer'' and 
     inserting in lieu thereof ``to the respective importers 
     association, or if there is no such association to the Board, 
     within such time period after the retail sale of such 
     avocados in the United States (not to exceed 60 days after 
     the end of the month in which the sale took place) as is 
     specified for domestically produced avocados.''; and
       (4) in paragraph (9) by inserting at the end the following:
       ``(D) All importers of avocados from a country associated 
     with an importers association based on country-of-origin 
     activities shall be required to be members of such importers 
     association, and membership in such importers association 
     shall be open to any foreign avocado exporter or grower who 
     elects to voluntarily join.''
                                  ____

  SA 2850. Mr. LUGAR (for Mr. Kyl (for himself, Mr. Nickles, and Mr. 
Hutchinson)) proposed an amendment to amendment SA 2471 submitted by 
Mr. Daschle and intended to be proposed to the bill (S. 1731) to 
strengthen

[[Page 1041]]

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; as follows;

       At the appropriate place insert the following:

     SEC.  . SENSE OF THE SENATE ON PERMANENT REPEAL OF ESTATE 
                   TAXES.

       (a) Findings.--
       (1) The Economic Growth and Tax Relief Reconciliation Act 
     of 2001 provided substantial relief from federal estate and 
     gift taxes beginning this year and repealed the federal 
     estate tax for one year beginning on January 1, 2010, and
       (2) The Economic Growth and Tax Relief Reconciliation Act 
     of 2001 contains a ``sunset'' provision that reinstates the 
     federal estate tax at its 2001 level beginning on January 1, 
     2011;
       (b) Sense of the Senate.--Therefore, it is the Sense of the 
     Senate that the repeal of the estate tax should be made 
     permanent by eliminating the sunset provision's applicability 
     to the estate tax.
                                  ____

  SA 2851. Mr. LUGAR (for Mr. Domenici) proposed an amendment to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) 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; as follows:

       Strike section 132 and insert the following:

     SEC. 132. NATIONAL DAIRY PROGRAM.

       The Federal Agriculture Improvement and Reform Act of 1996 
     (as amended by section 772(b) of Public Law 107-76) is 
     amended by inserting after section 141 (7 U.S.C. 7251) the 
     following:

     ``SEC. 142. NATIONAL DAIRY PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Dairy farm.--
       ``(A) In general.--The term `dairy farm' means a dairy farm 
     that is--
       ``(i) located within the United States;
       ``(ii) permitted under a license issued by State or local 
     agency or the Secretary--

       ``(I) to market milk for human consumption; or
       ``(II) to process milk into products for human consumption; 
     and

       ``(iii) operated by producers that commercially market milk 
     during the payment period.
       ``(B) Exclusion.--The term `dairy farm' does not include a 
     farm that is operated by a successor to a producer.
       ``(2) Eligible production.--The term `eligible production' 
     means the quantity of milk that is produced and marketed on a 
     dairy farm.
       ``(3) Payment period.--The term `payment period' means--
       ``(A) the period beginning on December 1, 2001, and ending 
     on September 30, 2002; and
       ``(B) each of fiscal years 2003 through 2005.
       ``(4) Producer.--The term `producer' means the individual 
     or entity that is the holder of the license described in 
     paragraph (1)(A)(ii) for the dairy farm.
       ``(b) Program.--The Secretary shall make payments to 
     producers.
       ``(c) Amount.--Subject to subsection (h), payments to 
     producers on a dairy farm under this section shall be 
     calculated by multiplying--
       ``(1) the eligible production during the payment period; by
       ``(2) the payment rate.
       ``(d) Payment Rate.--
       ``(1) In general.--Subject to paragraph (2), the payment 
     rate for a payment under this subsection shall be equal to 
     $0.315 per hundredweight.
       ``(2) Adjustment.--The Secretary may adjust the payment 
     rate under paragraph (1) with respect to the last fiscal year 
     of the payment period if the Secretary determines that there 
     are insufficient funds made available under subsection (h) to 
     carry out this section for that fiscal year.
       ``(e) Application for Payment.--To be eligible for a 
     payment for a payment period under this section, the 
     producers on a dairy farm shall submit an application to the 
     Secretary in such manner as is prescribed by the Secretary.
       ``(f) Timing of Payments.--Payments under this section 
     shall be made on an annual basis.
       ``(g) Adjustments.--The Secretary may provide for the 
     adjustment of eligible production of a dairy farm under this 
     section if the production of milk on the dairy farm has been 
     adversely affected by (as determined by the Secretary)--
       ``(1) damaging weather or a related condition;
       ``(2) a criminal act of a person other than the producers 
     on the dairy farm; or
       ``(3) any other act or event beyond the control of the 
     producers on the dairy farm.
       ``(h) Funding.--The Secretary shall use not more than 
     $2,000,000,000 of funds of the Commodity Credit Corporation 
     to carry out this section.''.
                                  ____

  SA 2852. Mr. HARKIN (for Mr. Kerry (for himself and Ms. Snowe)) 
proposed an amendment to amendment SA 2471 submitted by Mr. Daschle and 
intended to be proposed to the bill (S. 1731) 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; as follows:

       At the appropriate place, insert the following:

     SEC.  . COMMERCIAL FISHERIES FAILURE.

       (a) In General.--In addition to amounts appropriated or 
     otherwise made available by this Act, there are appropriated 
     to the Department of Agriculture $10,000,000 for fiscal year 
     2002, which shall be transferred to the Commodity Credit 
     Corporation to provide, in consultation with the Secretary of 
     Commerce, emergency disaster assistance for the commercial 
     fishery failure under section 308(b)(1) of the 
     Interjurisdictional Fisheries Act of 1986 (16 U.S.C. 
     4107(b)(1)) with respect to Northeast multispecies fisheries.
       (b) Program Requirements.--Amounts made available under 
     this section shall be used to support a voluntary fishing 
     capacity reduction program in the Northeast multispecies 
     fishery that--
       (1) is certified by the Secretary of Commerce to be 
     consistent with section 312(b) of the Magnuson-Stevens 
     Fishery Conservation and Management Act (16 U.S.C. 1861a(b)); 
     and
       (2) permanently revokes multispecies limited access fishing 
     permits so as to obtain the maximum sustained reduction in 
     fishing capacity at the least cost and in the minimum period 
     of time and to prevent the replacement of fishing capacity 
     removed by the program.
       (c) Application of Interim Final Rule.--The program shall 
     be carried out in accordance with the Interim Final Rule 
     under part 648 of title 50, Code of Federal Regulations, or 
     any corresponding regulation or rule promulgated thereunder.
       (d) Sunset.--The authority provided by subsection (a) shall 
     terminate 1 year after the date of enactment of this Act and 
     no amount may be made available under this section 
     thereafter.
                                  ____

  SA 2853. Mr. HARKIN proposed an amendment to amendment SA 2471 
submitted by Mr. Daschle and intended to be proposed to the bill (S. 
1731) 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; as 
follows:

       At the appropriate place, add the following:
       Amend Section 602 by adding after the word ``concern'' at 
     the end of subsection 384I(c)(3)(C) the words ``and not more 
     than 10 percent of the investments shall be made in an area 
     containing a city of over 100,000 in the last decennial 
     Census and the Census Bureau defined urbanized area 
     containing or adjacent to that city''.
                                  ____

  SA 2854. Mr. LUGAR (for Mr. McConnell) proposed an amendment to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) 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; as follows:

       On page 984, line 2, strike the period at the end and 
     insert a period and the following:

     SEC. 10__. BEAR PROTECTION.

       (a) Short Title.--This section may be cited as the ``Bear 
     Protection Act of 2002''.
       (b) Findings.--Congress finds that--
       (1) all 8 extant species of bear--Asian black bear, brown 
     bear, polar bear, American black bear, spectacled bear, giant 
     panda, sun bear, and sloth bear--are listed on Appendix I or 
     II of the Convention on International Trade in Endangered 
     Species of Wild Fauna and Flora (27 UST 1087; TIAS 8249);
       (2)(A) Article XIV of CITES provides that Parties to CITES 
     may adopt stricter domestic measures regarding the conditions 
     for trade, taking, possession, or transport of species listed 
     on Appendix I or II; and
       (B) the Parties to CITES adopted a resolution in 1997 
     (Conf. 10.8) urging the Parties to take immediate action to 
     demonstrably reduce the illegal trade in bear parts;
       (3)(A) thousands of bears in Asia are cruelly confined in 
     small cages to be milked for their bile; and
       (B) the wild Asian bear population has declined 
     significantly in recent years as a result of habitat loss and 
     poaching due to a

[[Page 1042]]

     strong demand for bear viscera used in traditional medicines 
     and cosmetics;
       (4) Federal and State undercover operations have revealed 
     that American bears have been poached for their viscera;
       (5) while most American black bear populations are 
     generally stable or increasing, commercial trade could 
     stimulate poaching and threaten certain populations if the 
     demand for bear viscera increases; and
       (6) prohibitions against the importation into the United 
     States and exportation from the United States, as well as 
     prohibitions against the interstate trade, of bear viscera 
     and products containing, or labeled or advertised as 
     containing, bear viscera will assist in ensuring that the 
     United States does not contribute to the decline of any bear 
     population as a result of the commercial trade in bear 
     viscera.
       (c) Purpose.--The purpose of this section is to ensure the 
     long-term viability of the world's 8 bear species by--
       (1) prohibiting interstate and international trade in bear 
     viscera and products containing, or labeled or advertised as 
     containing, bear viscera;
       (2) encouraging bilateral and multilateral efforts to 
     eliminate such trade; and
       (3) ensuring that adequate Federal legislation exists with 
     respect to domestic trade in bear viscera and products 
     containing, or labeled or advertised as containing, bear 
     viscera.
       (d) Definitions.--In this section:
       (1) Bear viscera.--The term ``bear viscera'' means the body 
     fluids or internal organs, including the gallbladder and its 
     contents but not including the blood or brains, of a species 
     of bear.
       (2) CITES.--The term ``CITES'' means the Convention on 
     International Trade in Endangered Species of Wild Fauna and 
     Flora (27 UST 1087; TIAS 8249).
       (3) Import.--The term ``import'' means to land on, bring 
     into, or introduce into any place subject to the jurisdiction 
     of the United States, regardless of whether the landing, 
     bringing, or introduction constitutes an importation within 
     the meaning of the customs laws of the United States.
       (4) Person.--The term ``person'' means--
       (A) an individual, corporation, partnership, trust, 
     association, or other private entity;
       (B) an officer, employee, agent, department, or 
     instrumentality of--
       (i) the Federal Government;
       (ii) any State or political subdivision of a State; or
       (iii) any foreign government; and
       (C) any other entity subject to the jurisdiction of the 
     United States.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (6) State.--The term ``State'' means a State, the District 
     of Columbia, the Commonwealth of Puerto Rico, the Virgin 
     Islands, Guam, the Commonwealth of the Northern Mariana 
     Islands, American Samoa, and any other territory, 
     commonwealth, or possession of the United States.
       (7) Transport.--The term ``transport'' means to move, 
     convey, carry, or ship by any means, or to deliver or receive 
     for the purpose of movement, conveyance, carriage, or 
     shipment.
       (e) Prohibited Acts.--
       (1) In general.--Except as provided in paragraph (2), a 
     person shall not--
       (A) import into, or export from, the United States bear 
     viscera or any product, item, or substance containing, or 
     labeled or advertised as containing, bear viscera; or
       (B) sell or barter, offer to sell or barter, purchase, 
     possess, transport, deliver, or receive, in interstate or 
     foreign commerce, bear viscera or any product, item, or 
     substance containing, or labeled or advertised as containing, 
     bear viscera.
       (2) Exception for wildlife law enforcement purposes.--A 
     person described in subsection (d)(4)(B) may import into, or 
     export from, the United States, or transport between States, 
     bear viscera or any product, item, or substance containing, 
     or labeled or advertised as containing, bear viscera if the 
     importation, exportation, or transportation--
       (A) is solely for the purpose of enforcing laws relating to 
     the protection of wildlife; and
       (B) is authorized by a valid permit issued under Appendix I 
     or II of CITES, in any case in which such a permit is 
     required under CITES.
       (f) Penalties and Enforcement.--
       (1) Criminal penalties.--A person that knowingly violates 
     subsection (e) shall be fined under title 18, United States 
     Code, imprisoned not more than 1 year, or both.
       (2) Civil penalties.--
       (A) Amount.--A person that knowingly violates subsection 
     (e) may be assessed a civil penalty by the Secretary of not 
     more than $25,000 for each violation.
       (B) Manner of assessment and collection.--A civil penalty 
     under this paragraph shall be assessed, and may be collected, 
     in the manner in which a civil penalty under the Endangered 
     Species Act of 1973 may be assessed and collected under 
     section 11(a) of that Act (16 U.S.C. 1540(a)).
       (3) Seizure and forfeiture.--Any bear viscera or any 
     product, item, or substance imported, exported, sold, 
     bartered, attempted to be imported, exported, sold, or 
     bartered, offered for sale or barter, purchased, possessed, 
     transported, delivered, or received in violation of this 
     subsection (including any regulation issued under this 
     subsection) shall be seized and forfeited to the United 
     States.
       (4) Regulations.--After consultation with the Secretary of 
     the Treasury and the United States Trade Representative, the 
     Secretary shall issue such regulations as are necessary to 
     carry out this subsection.
       (5) Enforcement.--The Secretary, the Secretary of the 
     Treasury, and the Secretary of the department in which the 
     Coast Guard is operating shall enforce this subsection in the 
     manner in which the Secretaries carry out enforcement 
     activities under section 11(e) of the Endangered Species Act 
     of 1973 (16 U.S.C. 1540(e)).
       (6) Use of penalty amounts.--Amounts received as penalties, 
     fines, or forfeiture of property under this subsection shall 
     be used in accordance with section 6(d) of the Lacey Act 
     Amendments of 1981 (16 U.S.C. 3375(d)).
       (g) Discussions Concerning Bear Conservation and the Bear 
     Parts Trade.--In order to seek to establish coordinated 
     efforts with other countries to protect bears, the Secretary 
     shall continue discussions concerning trade in bear viscera 
     with--
       (1) the appropriate representatives of Parties to CITES; 
     and
       (2) the appropriate representatives of countries that are 
     not parties to CITES and that are determined by the Secretary 
     and the United States Trade Representative to be the leading 
     importers, exporters, or consumers of bear viscera.
       (h) Certain Rights Not Affected.--Except as provided in 
     subsection (e), nothing in this section affects--
       (1) the regulation by any State of the bear population of 
     the State; or
       (2) any hunting of bears that is lawful under applicable 
     State law (including regulations).
                                  ____

  SA 2855. Mr. LUGAR (for Mr. Kyl) proposed an amendment to amendment 
SA 2471 submitted by Mr. Daschle and intended to be proposed to the 
bill (S. 1731) 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; as 
follows:

       On page 8, line 19, insert the following:
       ``(12) Implementation.--In carrying out the program, the 
     Secretary shall--
       ``(A) ensure, to the maximum extent practicable, that the 
     program does not undermine the implementation of any law in 
     effect as of the date of enactment of this chapter that 
     concerns the transfer or acquisition of water or water rights 
     on a permanent basis;
       ``(B) implement the program in accordance with the purposes 
     of such laws described in subparagraph (A) as are applicable; 
     and
       ``(C) comply with--
       ``(i) all interstate compacts, court decrees, and Federal 
     or State laws (including regulations) that may affect water 
     or water rights; and
       ``(ii) all procedural and substantive State water law.''
       On page 8, line 19, strike ``(12)'' and insert ``(13)''.
       On page 9, line 16, strike ``(13) and insert ``(14)''.
       On page 17, line 20, insert the following:
       ``(1) In general.--Nothing in this section--
       On page 17, line 21, strike ``(1)'' and insert ``(A)''.
       On page 17, line 22, strike ``(2)'' and insert ``(B)''.
       On page 18, line 1, strike ``(3)'' and insert ``(C)''.
       On page 18, line 5, strike ``(4)'' and insert ``(D)''.
       On page 18, line 7, insert the following:
       ``(2) Implementation.--In carrying out the program, the 
     Secretary shall--
       ``(A) ensure, to the maximum extent practicable, that the 
     program does not undermine the implementation of any law in 
     effect as of the date of enactment of this chapter that 
     concerns the transfer or acquisition of water or water rights 
     on a permanent basis;
       ``(B) implement the program in accordance with the purposes 
     of such laws described in subparagraph (A) as are applicable; 
     and
       ``(C) comply with--
       ``(i) all interstate compacts, court decrees, and Federal 
     or State laws (including regulations) that may affect water 
     or water rights; and
       ``(ii) all procedural and substantive State water law.''
                                  ____

  SA 2856. Mr. HARKIN proposed an amendment to amendment SA 2845 
submitted by Mr. McConnell and intended to be proposed to the amendment 
SA 2471 proposed by Mr. Daschle to the bill (S. 1731) 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

[[Page 1043]]

abundant food and fiber, and for other purposes; as follows:

       Strike all after the first word and insert the following:

     SEC. 1__. REDUCTION OF COMMODITY BENEFITS TO ESTABLISH A 
                   PILOT PROGRAM FOR FARM COUNTERCYLICAL SAVINGS 
                   ACCOUNTS.

       (a) Income Protection Prices for Counter-Cyclical 
     Payments.--Section 114(c) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     111) is amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.4460 per bushel.
       ``(B) Corn, $2.3472 per bushel.
       ``(C) Grain sorghum, $2.3472 per bushel.
       ``(D) Barley, $2.1973 per bushel.
       ``(E) Oats, $1.5480 per bushel.
       ``(F) Upland cotton, $0.6793 per pound.
       ``(G) Rice, $9.2914 per hundredweight.
       ``(H) Soybeans, $5.7431 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.1049 per pound.''.
       (b) Loan Rates for Marketing Assistance Loans.--
       (1) In general.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     123(a)) is amended to read as follows:

     ``SEC. 132. LOAN RATES.

       ``The loan rate for a marketing assistance loan under 
     section 131 for a loan commodity shall be--
       ``(1) in the case of wheat, $2.9960 per bushel;
       ``(2) in the case of corn, $2.0772 per bushel;
       ``(3) in the case of grain sorghum, $2.0772 per bushel;
       ``(4) in the case of barley, $1.9973 per bushel;
       ``(5) in the case of oats, $1.4980 per bushel;
       ``(6) in the case of upland cotton, $0.5493 per pound;
       ``(7) in the case of extra long staple cotton, $0.7965 per 
     pound;
       ``(8) in the case of rice, $6.4914 per hundredweight;
       ``(9) in the case of soybeans, $5.1931 per bushel;
       ``(10) in the case of oilseeds (other than soybeans), 
     $0.0949 per pound;
       ``(11) in the case of graded wool, $1.00 per pound;
       ``(12) in the case of nongraded wool, $.40 per pound;
       ``(13) in the case of mohair, $2.00 per pound;
       ``(14) in the case of honey, $.60 per pound;
       ``(15) in the case of dry peas, $6.78 per hundredweight;
       ``(16) in the case of lentils, $12.79 per hundredweight;
       ``(17) in the case of large chickpeas, $17.44 per 
     hundredweight; and
       ``(18) in the case of small chickpeas, $8.10 per 
     hundredweight.''.
       (2) Adjustment of loans.--
       (A) In general.--The amendment made by section 123(b) is 
     repealed.
       (B) Applicability.--Section 162 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7282) shall be 
     applied and administered as if the amendment made by section 
     123(b) had not been enacted.

     SEC. 1__. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS 
                   ACCOUNTS.

       Subtitle B of title I of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7211 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 119. PILOT PROGRAM FOR FARM COUNTER-CYCLICAL SAVINGS 
                   ACCOUNTS.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross revenue.--The term `adjusted gross 
     revenue' means the adjusted gross income for all agricultural 
     enterprises of a producer in a year, excluding revenue earned 
     from nonagricultural sources, as determined by the 
     Secretary--
       ``(A) by taking into account gross receipts from the sale 
     of crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       ``(B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including 
     any marketing loan gains described in section 1001(3)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(3)(A));
       ``(C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       ``(D) as represented on--
       ``(i) a schedule F of the Federal income tax returns of the 
     producer; or
       ``(ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       ``(2) Agricultural enterprise.--The term `agricultural 
     enterprise' means the production and marketing of all 
     agricultural commodities (including livestock but excluding 
     tobacco) on a farm or ranch.
       ``(3) Average adjusted gross revenue.--The term `average 
     adjusted gross revenue' means--
       ``(A) the average of the adjusted gross revenue of a 
     producer for each of the preceding 5 taxable years; or
       ``(B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       ``(4) Producer.--The term `producer' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       ``(A) shares in the risk of producing, or provides a 
     material contribution in producing, an agricultural commodity 
     for the applicable year;
       ``(B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       ``(C)(i) during each of the preceding 5 taxable years, has 
     filed--
       ``(I) a schedule F of the Federal income tax returns; or
       ``(II) a comparable tax form related to the agricultural 
     enterprises of the individual or entity, as approved by the 
     Secretary; or
       ``(ii) is a beginning farmer or rancher or other producer 
     that does not have adjusted gross revenue for each of the 
     preceding 5 taxable years, as determined by the Secretary; 
     and
       ``(D)(i) has earned at least $50,000 in average adjusted 
     gross revenue over the preceding 5 taxable years;
       ``(ii) is a limited resource farmer or rancher, as 
     determined by the Secretary; or
       ``(iii) in the case of a beginning farmer or rancher or 
     other producer that does not have average adjusted gross 
     revenue for the preceding 5 taxable years, has at least 
     $50,000 in estimated income from all agricultural enterprises 
     for the applicable year, as determined by the Secretary.
       ``(b) Establishment.--For each of fiscal years 2003 through 
     2006, the Secretary shall establish a pilot program in 10 
     States (as determined by the Secretary) under which a 
     producer may establish a farm counter-cyclical savings 
     account in the name of the producer in a bank or financial 
     institution selected by the producer and approved by the 
     Secretary.
       ``(c) Content of Account.--A farm counter-cyclical savings 
     account shall consist of--
       ``(1) contributions of the producer; and
       ``(2) matching contributions of the Secretary.
       ``(d) Producer Contributions.--A producer may deposit such 
     amounts in the account of the producer as the producer 
     considers appropriate.
       ``(e) Matching Contributions.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the Secretary shall provide a matching contribution on the 
     amount deposited by the producer into the account.
       ``(2) Amount.--Subject to paragraph (3), the amount of a 
     matching contribution that the Secretary shall provide under 
     paragraph (1) shall be equal to 2 percent of the average 
     adjusted gross revenue of the producer.
       ``(3) Maximum contributions for individual producer.--The 
     amount of matching contributions that may be provided by the 
     Secretary for an individual producer under this subsection 
     shall not exceed $5,000 for any applicable fiscal year.
       ``(4) Maximum contributions for all producers in a State.--
     The total amount of matching contributions that may be 
     provided by the Secretary for all producers under this 
     program shall not exceed $70,000,000 for fiscal year 2003, 
     $100,000,000 for fiscal year 2004, $140,000,000 for fiscal 
     year 2005, and $200,000,000 for fiscal year 2006.
       ``(5) Date for matching contributions.--The Secretary shall 
     provide the matching contributions required for a producer 
     under paragraph (1) as of the date that a majority of the 
     covered commodities grown by the producer are harvested.
       ``(f) Interest.--Funds deposited into the account may earn 
     interest at the commercial rates provided by the bank or 
     financial institution in which the Account is established.
       ``(g) Use.--Funds credited to the account--
       ``(1) shall be available for withdrawal by a producer, in 
     accordance with subsection (h); and
       ``(2) may be used for purposes determined by the producer.
       ``(h) Withdrawal.--
       ``(1) In general.--Subject to paragraph (2), in any year, a 
     producer may withdraw funds from the account in an amount 
     that is equal to--
       ``(A) 90 percent of average adjusted gross revenue of the 
     producer for the previous 5 years; minus
       ``(B) the adjusted gross revenue of the producer in that 
     year.
       ``(2) Retirement.--A producer that ceases to be actively 
     engaged in farming, as determined by the Secretary--
       ``(A) may withdraw the full balance from, and close, the 
     account; and
       ``(B) may not establish another account.
       ``(i) Administration.--The Secretary shall administer this 
     section through the Farm Service Agency and local, county, 
     and area offices of the Department of Agriculture.''.
                                  ____

  SA 2857. Mr. REID (for Mr. Conrad) proposed an amendment to amendment 
SA 2471 submitted by Mr. Daschle and intended to be proposed to the 
bill (S. 1731) to strengthen the safety net for

[[Page 1044]]

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; as follows:

       At the appropriate place insert the following:
       Since both political parties have pledged not to misuse 
     Social Security surplus funds by spending them for other 
     purposes; and
       Since under the Administration's fiscal year 2003 budget, 
     the federal government is projected to spend the Social 
     Security surplus for other purposes in each of the next 10 
     years;
       Since permanent extension of the inheritance tax repeal 
     would cost, according to the Administration's estimate, 
     approximately $104 billion over the next 10 years, all of 
     which would further reduce the Social Security surplus;
       Therefore it is the Sense of the Senate that no Social 
     Security surplus funds should be used to pay to make 
     currently scheduled tax cuts permanent or for wasteful 
     spending.

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