[House Report 104-462]
[From the U.S. Government Publishing Office]
104th Congress Rept. 104-462
HOUSE OF REPRESENTATIVES
2d Session Part 1
_______________________________________________________________________
AGRICULTURAL MARKET TRANSITION ACT
_______________________________________________________________________
February 9, 1996.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Roberts, from the Committee on Agriculture, submitted the following
R E P O R T
together with
MINORITY, DISSENTING, ADDITIONAL, AND SUPPLEMENTAL VIEWS
[To accompany H.R. 2854]
[Including cost estimate of the Congressional Budget Office]
The Committee on Agriculture, to whom was referred the bill
(H.R. 2854) to modify the operation of certain agricultural
programs, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Agricultural Market
Transition Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM
Sec. 101. Purpose.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Elimination of permanent price support authority.
Sec. 110. Effect of amendments.
TITLE II--DAIRY
Subtitle A--Milk Price Support and Other Activities
Sec. 201. Milk price support program.
Sec. 202. Recourse loans for commercial processors of dairy products.
Sec. 203. Dairy export incentive program.
Sec. 204. Dairy promotion program.
Sec. 205. Fluid milk standards under milk marketing orders.
Sec. 206. Manufacturing allowance.
Sec. 207. Establishment of temporary Class I price and temporary Class
I equalization pools.
Sec. 208. Establishment of temporary Class IV price and temporary Class
IV equalization pool.
Sec. 209. Authority for establishment of standby pools.
Subtitle B--Reform of Federal Milk Marketing Orders
Sec. 221. Issuance or amendment of Federal milk marketing orders to
implement certain reforms.
Sec. 222. Reform process.
Sec. 223. Effect of failure to comply with reform process requirements.
TITLE III--CONSERVATION
Sec. 301. Conservation.
TITLE IV--AGRICULTURAL PROMOTION AND EXPORT PROGRAMS
Sec. 401. Market promotion program.
Sec. 402. Export enhancement program.
TITLE V--MISCELLANEOUS
Sec. 501. Crop insurance.
Sec. 502. Collection and use of agricultural quarantine and inspection
fees.
Sec. 503. Commodity Credit Corporation interest rate.
Sec. 504. Establishment of Office of Risk Management.
Sec. 505. Business Interruption Insurance Program.
Sec. 506. Continuation of options pilot program.
TITLE VI--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
Sec. 601. Establishment.
Sec. 602. Composition.
Sec. 603. Comprehensive review of past and future of production
agriculture.
Sec. 604. Reports.
Sec. 605. Powers.
Sec. 606. Commission procedures.
Sec. 607. Personnel matters.
Sec. 608. Termination of Commission.
TITLE VII--EXTENSION OF CERTAIN AUTHORITIES
Sec. 701. Extension of authority under Public Law 480.
Sec. 702. Extension of food for progress program.
TITLE I--AGRICULTURAL MARKET TRANSITION PROGRAM
SEC. 101. PURPOSE.
It is the purpose of this title--
(1) to authorize the use of binding production flexibility
contracts between the United States and agricultural producers
to support farming certainty and flexibility while ensuring
continued compliance with farm conservation compliance plans
and wetland protection requirements;
(2) to make nonrecourse marketing assistance loans and loan
deficiency available for certain crops;
(3) to improve the operation of farm programs for peanuts and
sugar; and
(4) to terminate price support authority under the
Agricultural Act of 1949.
SEC. 102. DEFINITIONS.
In this title:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in effect
prior to the amendment made by section 109(b)(2)).
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 103.
(3) Contract acreage.--The term ``contract acreage'' means 1
or more crop acreage bases established for contract commodities
under title V of the Agricultural Act of 1949 (as in effect
prior to the amendment made by section 109(b)(2)) that would
have been in effect for the 1996 crop (but for the amendment
made by section 109(b)(2)).
(4) Contract commodity.--The term ``contract commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
and rice.
(5) Contract payment.--The term ``contract payment'' means a
payment made under section 103 pursuant to a contract.
(6) Corn.--The term ``corn'' means field corn.
(7) Department.--The term ``Department'' means the United
States Department of Agriculture.
(8) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
title V of the Agricultural Act of 1949 (as in effect prior to
the amendment made by section 109(b)(2)).
(9) Loan commodity.--The term ``loan commodity'' means each
contract commodity, extra long staple cotton, and oilseeds.
(10) Oilseed.--The term ``oilseed'' means a crop of soybeans,
sunflower seed, rapeseed, canola, safflower, flaxseed, mustard
seed, or, if designated by the Secretary, other oilseeds.
(11) Person.--The term ``person'' means an individual,
partnership, firm, joint-stock company, corporation,
association, trust, estate, or State agency.
(12) Producer.--
(A) In general.--The term ``producer'' means a person
who, as owner, landlord, tenant, or sharecropper,
shares in the risk of producing a crop, and is entitled
to share in the crop available for marketing from the
farm, or would have shared had the crop been produced.
(B) Hybrid seed.--The term ``producer'' includes a
person growing hybrid seed under contract. In
determining the interest of a grower of hybrid seed in
a crop, the Secretary shall not take into consideration
the existence of a hybrid seed contract.
(13) Program.--The term ``program'' means the agricultural
market transition program established under this title.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(16) United states.--The term ``United States'', when used in
a geographical sense, means all of the States.
SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable after
the date of the enactment of this title, the Secretary shall
offer to enter into a contract with an eligible owner or
operator described in paragraph (2) on a farm containing
eligible farmland. Under the terms of a contract, the owner or
operator shall agree, in exchange for annual contract payments,
to comply with--
(A) the conservation plan for the farm prepared in
accordance with section 1212 of the Food Security Act
of 1985 (16 U.S.C. 3812);
(B) wetland protection requirements applicable to the
farm under subtitle C of title XII of the Act (16
U.S.C. 3821 et seq.); and
(C) the planting flexibility requirements of
subsection (j).
(2) Eligible owners and operators described.--The following
persons shall be considered to be an owner or operator eligible
to enter into a contract:
(A) An owner of eligible farmland who assumes all of
the risk of producing a crop.
(B) An owner of eligible farmland who shares in the
risk of producing a crop.
(C) An operator of eligible farmland with a share-
rent lease of the eligible farmland, regardless of the
length of the lease, if the owner enters into the same
contract.
(D) An operator of eligible farmland who cash rents
the eligible farmland under a lease expiring on or
after September 30, 2002, in which case the consent of
the owner is not required.
(E) An operator of eligible farmland who cash rents
the eligible farmland under a lease expiring before
September 30, 2002, if the owner consents to the
contract.
(F) An owner of eligible farmland who cash rents the
eligible farmland and the lease term expires before
September 30, 2002, but only if the actual operator of
the farm declines to enter into a contract. In the case
of an owner covered by this subparagraph, contract
payments shall not begin under a contract until the
fiscal year following the fiscal year in which the
lease held by the nonparticipating operator expires.
(G) An owner or operator described in any preceding
subparagraph of this paragraph regardless of whether
the owner or operator purchased catastrophic risk
protection for a fall-planted 1996 crop under section
508(b) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)).
(3) Tenants and sharecroppers.--In carrying out this section,
the Secretary shall provide adequate safeguards to protect the
interests of operators who are tenants and sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph
(B), the Secretary may not enter into a contract after
April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each
fiscal year, the Secretary shall allow an
eligible owner or operator on a farm covered by
a conservation reserve contract entered into
under section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) that terminates after the
date specified in subparagraph (A) to enter
into or expand a production flexibility
contract to cover the contract acreage of the
farm that was subject to the former
conservation reserve contract.
(ii) Amount.--Contract payments made for
contract acreage under this subparagraph shall
be made at the rate and amount applicable to
the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity; or
(ii) in the case of acreage that was subject
to a conservation reserve contract described in
paragraph (1)(B), the date the production
flexibility contract was entered into or
expanded to cover the acreage.
(B) Ending date.--A contract shall extend through the
2002 crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to be
made during at least the first fiscal year for which contract
payments will be made.
(c) Eligible Farmland Described.--Land shall be considered to be
farmland eligible for coverage under a contract only if the land has
contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least a
portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
whose term expired, or was voluntarily terminated, on or after
January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in subsection
(b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made not
later than September 30 of each of fiscal years 1996 through
2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
operator, 50 percent of the contract payment for fiscal
year 1996 shall be made not later than June 15, 1996.
(B) Subsequent fiscal years.--At the option of the
owner or operator for fiscal year 1997 and each
subsequent fiscal year, 50 percent of the annual
contract payment shall be made on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal Year.--
(1) In general.--The Secretary shall, to the maximum extent
practicable, expend on a fiscal year basis the following
amounts to satisfy the obligations of the Secretary under all
contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal year
under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for a
particular fiscal year by--
(A) adding an amount equal to the sum of all
repayments of deficiency payments received under
section 114(a)(2) of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section
109(b)(2)) for the commodity;
(B) to the maximum extent practicable, adding an
amount equal to the sum of all contract payments
withheld by the Secretary, at the request of an owner
or operator subject to a contract, as an offset against
repayments of deficiency payments otherwise required
under section 114(a)(2) of the Act (as so in effect)
for the commodity;
(C) adding an amount equal to the sum of all refunds
of contract payments received during the preceding
fiscal year under subsection (h) of this section for
the commodity; and
(D) subtracting an amount equal to the amount, if
any, necessary during that fiscal year to satisfy
payment requirements for the commodity under sections
103B, 105B, or 107B of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section
109(b)(2)) for the 1994 and 1995 crop years.
(4) Special adjustment to cover existing rice payment
requirements.--As soon as possible after the date of the
enactment of this Act, the Secretary shall determine the
amount, if any, necessary to satisfy remaining payment
requirements under section 101B of the Agricultural Act of 1949
(as in effect prior to the amendment made by section 109(b)(2))
for the 1994 and 1995 crops of rice. The total amount
determined under this paragraph shall be deducted, in equal
amounts each fiscal year, from the amount allocated for rice
under paragraph (2)(G) for fiscal years after the fiscal year
in which the final remaining payments are made for rice.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--For
each contract, the payment quantity of a contract commodity for
each fiscal year shall be equal to the product of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e)
for the contract commodity for the fiscal year; divided
by
(B) the amount determined under paragraph (2) for the
fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph
(1) with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--The provisions of
section 8(g) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(g)) (relating to assignment of payments)
shall apply to contract payments under this subsection. The
owner or operator making the assignment, or the assignee, shall
provide the Secretary with notice, in such manner as the
Secretary may require in the contract, of any assignment made
under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--The total amount of contract payments made
to a person under a contract during any fiscal year may not exceed the
payment limitations established under sections 1001 through 1001C of
the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3).
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in paragraph
(2), if an owner or operator subject to a contract violates the
conservation plan for the farm containing eligible farmland
under the contract, wetland protection requirements applicable
to the farm, or the planting flexibility requirements of
subsection (j), the Secretary shall terminate the contract with
respect to the owner or operator on each farm in which the
owner or operator has an interest. On the termination, the
owner or operator shall forfeit all rights to receive future
contract payments on each farm in which the owner or operator
has an interest and shall refund to the Secretary all contract
payments received by the owner or operator during the period of
the violation, together with interest on the contract payments
as determined by the Secretary.
(2) Refund or adjustment.--If the Secretary determines that a
violation does not warrant termination of the contract under
paragraph (1), the Secretary may require the owner or operator
subject to the contract--
(A) to refund to the Secretary that part of the
contract payments received by the owner or operator
during the period of the violation, together with
interest on the contract payments as determined by the
Secretary; or
(B) to accept a reduction in the amount of future
contract payments that is proportionate to the severity
of the violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a contract
may not be required to make repayments to the Secretary of
amounts received under the contract if the contract acreage has
been foreclosed on and the Secretary determines that forgiving
the repayments is appropriate in order to provide fair and
equitable treatment. This paragraph shall not void the
responsibilities of such an owner or operator under the
contract if the owner or operator continues or resumes
operation, or control, of the contract acreage. On the
resumption of operation or control over the contract acreage by
the owner or operator, the provisions of the contract in effect
on the date of the foreclosure shall apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph (2),
the transfer by an owner or operator subject to a contract of
the right and interest of the owner or operator in the contract
acreage shall result in the termination of the contract with
respect to the acreage, effective on the date of the transfer,
unless the transferee of the acreage agrees with the Secretary
to assume all obligations of the contract. At the request of
the transferee, the Secretary may modify the contract if the
modifications are consistent with the objectives of this
section as determined by the Secretary.
(2) Exception.--If an owner or operator who is entitled to a
contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed by
the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2), any commodity
or crop may be planted on contract acreage on a farm.
(2) Limitations.--
(A) Haying and grazing.--
(i) Time limitations.--Haying and grazing on
land exceeding 15 percent of the contract
acreage on a farm as provided in clause (iii)
shall be permitted, except during any
consecutive 5-month period between April 1 and
October 31 that is determined by the State
committee established under section 8(b) of the
Soil Conservation and Domestic Allotment Act (6
U.S.C. 590h(b)) for a State. In the case of a
natural disaster, the Secretary may permit
unlimited haying and grazing on the contract
acreage of a farm.
(ii) Contract commodities.--Contract acreage
planted to a contract commodity for harvest may
be hayed or grazed at any time without
limitation.
(iii) Haying and grazing limitation on
portion or contract acreage.--Unlimited haying
and grazing shall be permitted on not more than
15 percent of the contract acreage on a farm.
(B) Alfalfa.--Alfalfa may be grown on contract
acreage in excess of the acreage limitation in
subparagraph (A)(iii) and without regard to the time
limitation in subparagraph (A)(i), except that each
contract acre on a farm that is planted for harvest to
alfalfa in excess of 15 percent of the total contract
acreage on the farm shall be ineligible for contract
payments.
(C) Fruits and vegetables.--
(i) In general.--The planting for harvest of
fruits and vegetables shall be prohibited on
contract acreage, except in any region in which
there is a history of double-cropping, as
determined by the Secretary.
(ii) Unrestricted vegetables.--
Notwithstanding clause (i), lentils, mung
beans, and dry peas may be planted for harvest
without limitation on contract acreage.
SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY
PAYMENTS.
(a) Availability of Marketing Assistance Loans.--
(1) Nonrecourse loans available.--For each of the 1996
through 2002 crops of each loan commodity, the Secretary shall
make available to producers on a farm nonrecourse marketing
assistance loans for loan commodities produced on the farm. The
loans shall be made under terms and conditions that are
prescribed by the Secretary and at the loan rate established
under subsection (b) for the loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under paragraph (1):
(A) In the case of a marketing assistance loan for a
contract commodity, any production by a producer who
has entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for
extra long staple cotton and oilseeds, any production.
(3) Recourse loans for high moisture feed grains.--
(A) Recourse loans available.--For each of the 1996
through 2002 crops of corn and grain sorghum, the
Secretary shall make available recourse loans, as
determined by the Secretary, to producers on a farm
who--
(i) normally harvest all or a portion of
their crop of corn or grain sorghum in a high
moisture state;
(ii) present--
(I) certified scale tickets from an
inspected, certified commercial scale,
including licensed warehouses,
feedlots, feed mills, distilleries, or
other similar entities approved by the
Secretary, pursuant to regulations
issued by the Secretary; or
(II) present field or other physical
measurements of the standing or stored
crop in regions of the country, as
determined by the Secretary, that do
not have certified commercial scales
from which certified scale tickets may
be obtained within reasonable proximity
of harvest operation;
(iii) certify that they were the owners of
the feed grain at the time of delivery to, and
that the quantity to be placed under loan under
this paragraph was in fact harvested on the
farm and delivered to, a feedlot, feed mill, or
commercial or on-farm high-moisture storage
facility, or to such facilities maintained by
the users of corn and grain sorghum in a high
moisture state; and
(iv) comply with deadlines established by the
Secretary for harvesting the corn or grain
sorghum and submit applications for loans under
this paragraph within deadlines established by
the Secretary.
(B) Eligibility of acquired feed grains.--Loans under
this paragraph shall be made on a quantity of corn or
grain sorghum of the same crop acquired by the producer
equivalent to a quantity determined by multiplying--
(i) the acreage of the corn or grain sorghum
in a high moisture state harvested on the
producer's farm; by
(ii) the lower of the farm program payment
yield or the actual yield on a field, as
determined by the Secretary, that is similar to
the field from which the corn or grain sorghum
was obtained.
(C) High moisture state defined.--In this paragraph,
the term ``high moisture state'' means corn or grain
sorghum having a moisture content in excess of
Commodity Credit Corporation standards for marketing
assistance loans made by the Secretary under paragraph
(1).
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the loan
rate for a marketing assistance loan under subsection
(a)(1) for wheat shall be--
(i) not less than 85 percent of the simple
average price received by producers of wheat,
as determined by the Secretary, during the
marketing years for the immediately preceding 5
crops of wheat, excluding the year in which the
average price was the highest and the year in
which the average price was the lowest in the
period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of
ending stocks of wheat to total use for the marketing
year will be--
(i) equal to or greater than 30 percent, the
Secretary may reduce the loan rate for wheat
for the corresponding crop by an amount not to
exceed 10 percent in any year;
(ii) less than 30 percent but not less than
15 percent, the Secretary may reduce the loan
rate for wheat for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(iii) less than 15 percent, the Secretary may
not reduce the loan rate for wheat for the
corresponding crop.
(C) No effect on future years.--Any reduction in the
loan rate for wheat under subparagraph (B) shall not be
considered in determining the loan rate for wheat for
subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph (B),
the loan rate for a marketing assistance loan under
subsection (a)(1) for corn shall be--
(i) not less than 85 percent of the simple
average price received by producers of corn, as
determined by the Secretary, during the
marketing years for the immediately preceding 5
crops of corn, excluding the year in which the
average price was the highest and the year in
which the average price was the lowest in the
period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of
ending stocks of corn to total use for the marketing
year will be--
(i) equal to or greater than 25 percent, the
Secretary may reduce the loan rate for corn for
the corresponding crop by an amount not to
exceed 10 percent in any year;
(ii) less than 25 percent but not less than
12.5 percent, the Secretary may reduce the loan
rate for corn for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(iii) less than 12.5 percent the Secretary
may not reduce the loan rate for corn for the
corresponding crop.
(C) No effect on future years.--Any reduction in the
loan rate for corn under subparagraph (B) shall not be
considered in determining the loan rate for corn for
subsequent years.
(D) Other feed grains.--The loan rate for a marketing
assistance loan under subsection (a)(1) for grain
sorghum, barley, and oats, respectively, shall be
established at such level as the Secretary determines
is fair and reasonable in relation to the rate that
loans are made available for corn, taking into
consideration the feeding value of the commodity in
relation to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the loan
rate for a marketing assistance loan under subsection
(a)(1) for upland cotton shall be established by the
Secretary at such loan rate, per pound, as will reflect
for the base quality of upland cotton, as determined by
the Secretary, at average locations in the United
States a rate that is not less than the smaller of--
(i) 85 percent of the average price (weighted
by market and month) of the base quality of
cotton as quoted in the designated United
States spot markets during 3 years of the 5-
year period ending July 31 in the year in which
the loan rate is announced, excluding the year
in which the average price was the highest and
the year in which the average price was the
lowest in the period; or
(ii) 90 percent of the average, for the 15-
week period beginning July 1 of the year in
which the loan rate is announced, of the 5
lowest-priced growths of the growths quoted for
Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average
difference during the period April 15 through
October 15 of the year in which the loan is
announced between the average Northern European
price quotation of such quality of cotton and
the market quotations in the designated United
States spot markets for the base quality of
upland cotton), as determined by the Secretary.
(B) Limitations.--The loan rate for a marketing
assistance loan for upland cotton shall not be less
than $0.50 per pound or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a marketing
assistance loan under subsection (a)(1) for extra long staple
cotton shall be--
(A) not less than 85 percent of the simple average
price received by producers of extra long staple
cotton, as determined by the Secretary, during 3 years
of the 5 previous marketing years, excluding the year
in which the average price was the highest and the year
in which the average price was the lowest in the
period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
under subsection (a)(1) for rice shall be $6.50 per
hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing
assistance loan under subsection (a)(1) for soybeans
shall be $4.92 per bushel.
(B) Sunflower seed, canola, rapeseed, safflower,
mustard seed, and flaxseed.--The loan rates for a
marketing assistance loan under subsection (a)(1) for
sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed, individually, shall be $0.087 per
pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan under subsection (a)(1) for other
oilseeds shall be established at such level as the
Secretary determines is fair and reasonable in relation
to the loan rate available for soybeans, except in no
event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for
soybeans on a per-pound basis for the same crop.
(c) Term of Loan.--In the case of each loan commodity (other than
upland cotton or extra long staple cotton), a marketing assistance loan
under subsection (a)(1) shall have a term of 9 months beginning on the
first day of the first month after the month in which the loan is made.
A marketing assistance loan for upland cotton or extra long staple
cotton shall have a term of 10 months beginning on the first day of the
first month after the month in which the loan is made. The Secretary
may not extend the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates generally.--The Secretary shall permit
producers to repay a marketing assistance loan under subsection
(a)(1) for a loan commodity (other than extra long staple
cotton) at a level that is the lesser of--
(A) the loan rate established for the commodity under
subsection (b); or
(B) the prevailing world market price for the
commodity (adjusted to United States quality and
location), as determined by the Secretary.
(2) Additional repayment rates for wheat, feed grains, and
oilseeds.--In the case of a marketing assistance loan under
subsection (a)(1) for wheat, corn, grain sorghum, barley, oats,
or oilseeds, the Secretary shall also permit a producer to
repay the loan at such level as the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity; and
(D) allow the commodity produced in the United States
to be marketed freely and competitively, both
domestically and internationally.
(3) Repayment rates for extra long staple cotton.--Repayment
of a marketing assistance loan for extra long staple cotton
shall be at the loan rate established for the commodity under
subsection (b), plus interest (as determined by the Secretary).
(4) Prevailing world market price.--For purposes of paragraph
(1) and subsection (f), the Secretary shall prescribe by
regulation--
(A) a formula to determine the prevailing world
market price for each loan commodity, adjusted to
United States quality and location; and
(B) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each
loan commodity.
(5) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31,
2003, the prevailing world market price for upland
cotton (adjusted to United States quality and location)
established under paragraph (4) shall be further
adjusted if--
(i) the adjusted prevailing world market
price is less than 115 percent of the loan rate
for upland cotton established under subsection
(b), as determined by the Secretary; and
(ii) the Friday through Thursday average
price quotation for the lowest-priced United
States growth as quoted for Middling (M) 1\3/
32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through
Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered
C.I.F. Northern Europe (referred to in this
subsection as the ``Northern Europe price'').
(B) Further adjustment.--Except as provided in
subparagraph (C), the adjusted prevailing world market
price for upland cotton shall be further adjusted on
the basis of some or all of the following data, as
available:
(i) The United States share of world exports.
(ii) The current level of cotton export sales
and cotton export shipments.
(iii) Other data determined by the Secretary
to be relevant in establishing an accurate
prevailing world market price for upland cotton
(adjusted to United States quality and
location).
(C) Limitation on further adjustment.--The adjustment
under subparagraph (B) may not exceed the difference
between--
(i) the Friday through Thursday average price
for the lowest-priced United States growth as
quoted for Middling 1\3/32\-inch cotton
delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a)(1) with respect to a loan
commodity, agree to forgo obtaining the loan for the commodity
in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under paragraph
(3) for the loan commodity; by
(B) the quantity of the loan commodity that the
producers on a farm are eligible to place under loan
but for which the producers forgo obtaining the loan in
return for payments under this subsection.
(3) Loan payment rate.--For purposes of this subsection, the
loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b)
for the loan commodity; exceeds
(B) the rate at which a loan for the commodity may be
repaid under subsection (d).
(4) Exception for extra long staple cotton.--This subsection
shall not apply with respect to extra long staple cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during
the period ending July 31, 2003, the Secretary shall
issue marketing certificates or cash payments to
domestic users and exporters for documented purchases
by domestic users and sales for export by exporters
made in the week following a consecutive 4-week period
in which--
(i) the Friday through Thursday average price
quotation for the lowest-priced United States
growth, as quoted for Middling (M) 1\3/32\-inch
cotton, delivered C.I.F. Northern Europe
exceeds the Northern Europe price by more than
1.25 cents per pound; and
(ii) the prevailing world market price for
upland cotton (adjusted to United States
quality and location) does not exceed 130
percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value of
the marketing certificates or cash payments shall be
based on the amount of the difference (reduced by 1.25
cents per pound) in the prices during the 4th week of
the consecutive 4-week period multiplied by the
quantity of upland cotton included in the documented
sales.
(C) Redemption, marketing, or exchange.--The
Secretary shall establish procedures to assist persons
receiving marketing certificates under this paragraph
in the redemption of certificates for cash, or in the
marketing or exchange of certificates for agricultural
commodities owned by the Commodity Credit Corporation,
in such manner and at such price levels as the
Secretary determines will best effectuate the purposes
of the marketing certificates. Any price restrictions
that may otherwise apply to the disposition of
agricultural commodities by the Commodity Credit
Corporation shall not apply to the redemption of
certificates under this paragraph.
(D) Exception.--The Secretary shall not issue
marketing certificates or cash payments under
subparagraph (A) if, for the immediately preceding
consecutive 10-week period, the Friday through Thursday
average price quotation for the lowest priced United
States growth, as quoted for Middling (M) 1\3/32\-inch
cotton, delivered C.I.F. Northern Europe, adjusted for
the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more
than 1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures
under this paragraph shall not exceed $701,000,000
during fiscal years 1996 through 2002.
(2) Special import quota.--
(A) Establishment.--The President shall carry out an
import quota program that provides that, during the
period ending July 31, 2003, whenever the Secretary
determines and announces that for any consecutive 10-
week period, the Friday through Thursday average price
quotation for the lowest-priced United States growth,
as quoted for Middling (M) 1\3/32\-inch cotton,
delivered C.I.F. Northern Europe, adjusted for the
value of any certificates issued under paragraph (1),
exceeds the Northern Europe price by more than 1.25
cents per pound, there shall immediately be in effect a
special import quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3
months for which data are available.
(C) Application.--The quota shall apply to upland
cotton purchased not later than 90 days after the date
of the Secretary's announcement under subparagraph (A)
and entered into the United States not later than 180
days after the date.
(D) Overlap.--A special quota period may be
established that overlaps any existing quota period if
required by subparagraph (A), except that a special
quota period may not be established under this
paragraph if a quota period has been established under
subsection (g).
(E) Preferential tariff treatment.--The quantity
under a special import quota shall be considered to be
an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(F) Definition.--In this paragraph, the term
``special import quota'' means a quantity of imports
that is not subject to the over-quota tariff rate of a
tariff-rate quota.
(g) Limited Global Import Quota for Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent of
the average price of such quality of cotton in the markets for
the preceding 36 months, notwithstanding any other provision of
law, there shall immediately be in effect a limited global
import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to increase
the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using
the latest official data of the Bureau of the
Census, the Department of Agriculture, and the
Department of the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current crop;
and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill
consumption in the most recent 3 months
for which data are available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding 6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The term
``limited global import quota'' means a
quantity of imports that is not subject to the
over-quota tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is established
under this subsection, cotton may be entered under the
quota during the 90-day period beginning on the date
the quota is established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(2).
(h) Source of Loans.--
(1) In general.--The Secretary shall provide the loans
authorized by this section and the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1281 et seq.) through the Commodity Credit
Corporation and other means available to the Secretary.
(2) Processors.--Whenever any loan or surplus removal
operation for any agricultural commodity is carried out through
purchases from or loans or payments to processors, the
Secretary shall, to the extent practicable, obtain from the
processors such assurances as the Secretary considers adequate
that the producers of the commodity have received or will
receive maximum benefits from the loan or surplus removal
operation.
(i) Adjustments of Loans.--
(1) In general.--The Secretary may make appropriate
adjustments in the loan levels for any commodity for
differences in grade, type, quality, location, and other
factors.
(2) Loan level.--The adjustments shall, to the maximum extent
practicable, be made in such manner that the average loan level
for the commodity will, on the basis of the anticipated
incidence of the factors, be equal to the level of support
determined as provided in this section or the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).
(j) Personal Liability of Producers for Deficiencies.--
(1) In general.--Except as provided in paragraph (2), no
producer shall be personally liable for any deficiency arising
from the sale of the collateral securing any nonrecourse loan
made under this section or the Agricultural Adjustment Act of
1938 (7 U.S.C. 1281 et seq.) unless the loan was obtained
through a fraudulent representation by the producer.
(2) Limitations.--Paragraph (1) shall not prevent the
Commodity Credit Corporation or the Secretary from requiring a
producer to assume liability for--
(A) a deficiency in the grade, quality, or quantity
of a commodity stored on a farm or delivered by the
producer;
(B) a failure to properly care for and preserve a
commodity; or
(C) a failure or refusal to deliver a commodity in
accordance with a program established under this
section or the Agricultural Adjustment Act of 1938.
(3) Acquisition of collateral.--The Secretary may include in
a contract for a nonrecourse loan made under this section or
the Agricultural Adjustment Act of 1938 a provision that
permits the Commodity Credit Corporation, on and after the
maturity of the loan, to acquire title to the unredeemed
collateral without obligation to pay for any market value that
the collateral may have in excess of the loan indebtedness.
(4) Sugarcane and sugar beets.--A security interest obtained
by the Commodity Credit Corporation as a result of the
execution of a security agreement by the processor of sugarcane
or sugar beets shall be superior to all statutory and common
law liens on raw cane sugar and refined beet sugar in favor of
the producers of sugarcane and sugar beets and all prior
recorded and unrecorded liens on the crops of sugarcane and
sugar beets from which the sugar was derived.
(k) Commodity Credit Corporation Sales Price Restrictions.--
(1) In general.--The Commodity Credit Corporation may sell
any commodity owned or controlled by the Corporation at any
price that the Secretary determines will maximize returns to
the Corporation.
(2) Nonapplication of sales price restrictions.--Paragraph
(1) shall not apply to--
(A) a sale for a new or byproduct use;
(B) a sale of peanuts or oilseeds for the extraction
of oil;
(C) a sale for seed or feed if the sale will not
substantially impair any loan program;
(D) a sale of a commodity that has substantially
deteriorated in quality or as to which there is a
danger of loss or waste through deterioration or
spoilage;
(E) a sale for the purpose of establishing a claim
arising out of a contract or against a person who has
committed fraud, misrepresentation, or other wrongful
act with respect to the commodity;
(F) a sale for export, as determined by the
Corporation; and
(G) a sale for other than a primary use.
(3) Presidential disaster areas.--
(A) In general.--Notwithstanding paragraph (1), on
such terms and conditions as the Secretary may consider
in the public interest, the Corporation may make
available any commodity or product owned or controlled
by the Corporation for use in relieving distress--
(i) in any area in the United States
(including the Virgin Islands) declared by the
President to be an acute distress area because
of unemployment or other economic cause, if the
President finds that the use will not displace
or interfere with normal marketing of
agricultural commodities; and
(ii) in connection with any major disaster
determined by the President to warrant
assistance by the Federal Government under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et
seq.).
(B) Costs.--Except on a reimbursable basis, the
Corporation shall not bear any costs in connection with
making a commodity available under subparagraph (A)
beyond the cost of the commodity to the Corporation
incurred in--
(i) the storage of the commodity; and
(ii) the handling and transportation costs in
making delivery of the commodity to designated
agencies at 1 or more central locations in each
State or other area.
(4) Efficient operations.--Paragraph (1) shall not apply to
the sale of a commodity the disposition of which is desirable
in the interest of the effective and efficient conduct of the
operations of the Corporation because of the small quantity of
the commodity involved, or because of the age, location, or
questionable continued storability of the commodity.
SEC. 105. PAYMENT LIMITATIONS.
(a) In General.--Section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) is amended by striking paragraphs (1) through (4) and
inserting the following:
``(1) Limitation on payments under production flexibility
contracts.--The total amount of contract payments made under
section 103 of the Agricultural Market Transition Act to a
person under 1 or more production flexibility contracts entered
into under the section during any fiscal year may not exceed
$40,000.
``(2) Limitation on marketing loan gains and loan deficiency
payments.--For each of the 1996 through 2002 crops of loan
commodities, the total amount of payments specified in
paragraph (3) that a person shall be entitled to receive under
section 104 of the Agricultural Market Transition Act for one
or more loan commodities may not exceed $75,000.
``(3) Description of payments subject to limitation.--The
payments referred to in paragraph (2) are the following:
``(A) Any gain realized by a producer from repaying a
marketing assistance loan for a crop of any loan
commodity at a lower level than the original loan rate
established for the loan commodity under section 104(b)
of the Agricultural Market Transition Act.
``(B) Any loan deficiency payment received for a loan
commodity under section 104(e) of the Act.
``(4) Definitions.--In this title, the terms `contract
payment' and `loan commodity' have the meaning given those
terms in section 102 of the Agricultural Market Transition
Act.''.
(b) Conforming Amendments.--
(1) Section 1001A of the Food Security Act of 1985 (7 U.S.C.
1308-1) is amended--
(A) in subsection (a)(1), by striking ``under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''; and
(B) in subsection (b)(1), by striking ``under the
Agricultural Act of 1949''.
(2) Section 1001C(a) of the Act (7 U.S.C. 1308-3(a)) is
amended--
(A) by striking ``For each of the 1991 through 1997
crops, any'' and inserting ``Any'';
(B) by striking ``production adjustment payments,
price support program loans, payments, or benefits made
available under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.),'' and inserting ``loans or payments made
available under title I of the Agricultural Market
Transition Act,''; and
(C) by striking ``during the 1989 through 1997 crop
years''.
SEC. 106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location of
peanuts and such other factors as are authorized by section 411
of the Agricultural Adjustment Act of 1938.
(5) Offers from handlers.--In the case of any producer who
had an offer available from a handler to purchase quota
peanuts, for delivery within the same county or a contiguous
county, at a price equal to or greater than the applicable
quota support rate, the Secretary shall reduce the support rate
by 5 percent for the peanuts that were subject to the offer.
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates as
the Secretary finds appropriate, taking into consideration the
demand for peanut oil and peanut meal, expected prices of other
vegetable oils and protein meals, and the demand for peanuts in
foreign markets.
(2) Announcement.--The Secretary shall announce the loan rate
for additional peanuts of each crop not later than February 15
preceding the marketing year for the crop for which the loan
rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and
(b), the Secretary shall make warehouse storage loans
available in each of the producing areas (described in
section 1446.95 of title 7 of the Code of Federal
Regulations (January 1, 1989)) to a designated area
marketing association of peanut producers that is
selected and approved by the Secretary and that is
operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse
storage loans available to any cooperative that is
engaged in operations or activities concerning peanuts
other than those operations and activities specified in
this section and section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) Administrative and supervisory activities.--An
area marketing association shall be used in
administrative and supervisory activities relating to
loans and marketing activities under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(C) Association costs.--Loans made to the association
under this paragraph shall include such costs as the
area marketing association reasonably may incur in
carrying out the responsibilities, operations, and
activities of the association under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) In general.--The Secretary shall require that
each area marketing association establish pools and
maintain complete and accurate records by area and
segregation for quota peanuts handled under loan and
for additional peanuts placed under loan, except that
separate pools shall be established for Valencia
peanuts produced in New Mexico. Bright hull and dark
hull Valencia peanuts shall be considered as separate
types for the purpose of establishing the pools.
(B) Net gains.--Net gains on peanuts in each pool,
unless otherwise approved by the Secretary, shall be
distributed only to producers who placed peanuts in the
pool and shall be distributed in proportion to the
value of the peanuts placed in the pool by each
producer. Net gains for peanuts in each pool shall
consist of the following:
(i) Quota peanuts.--For quota peanuts, the
net gains over and above the loan indebtedness
and other costs or losses incurred on peanuts
placed in the pool.
(ii) Additional peanuts.--For additional
peanuts, the net gains over and above the loan
indebtedness and other costs or losses incurred
on peanuts placed in the pool for additional
peanuts.
(d) Losses.--Losses in quota area pools shall be covered using the
following sources in the following order of priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of
any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an area
quota pool shall be offset by reducing the gain of any producer
in the pool by the amount of pool gains attributed to the same
producer from the sale of additional peanuts for domestic and
export edible use.
(3) Buy-back gains within area.--Further losses in an area
quota pool shall be offset by gains or profits attributable to
sales of additional peanuts in that area pursuant to the
provisions of section 358e(g)(1)(A) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a(g)(1)(A)).
(4) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds attributable
to handlers) to offset further losses in area quota pools. The
Secretary shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this
subsection that the Secretary determines are not required to
cover losses in area quota pools.
(5) Cross compliance.--Further losses in area quota pools,
other than losses incurred as a result of transfers from
additional loan pools to quota loan pools under section 358-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate type
pools established under subsection (c)(2)(A) for Valencia
peanuts produced in New Mexico) in such manner as the Secretary
shall by regulation prescribe. If losses in area quota pools
have not been entirely offset through use of the preceding
sentence, then further losses shall be offset by gains or
profits attributable to sales of additional peanuts in other
areas pursuant to section 358e(g)(1)(A) of such Act (7 U.S.C.
1359a(g)(1)(A)).
(6) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to cover
losses in an area quota pool, the Secretary shall increase the
marketing assessment established under subsection (g) by such
an amount as the Secretary considers necessary to cover the
losses. The increased assessment shall apply only to quota
peanuts covered by that pool. Amounts collected under
subsection (g) as a result of the increased assessment shall be
retained by the Secretary to cover losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other provision of
law, no loan for quota peanuts may be made available by the Secretary
for any crop of peanuts with respect to which poundage quotas have been
disapproved by producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater risk
of deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use
must be shown to have been officially inspected by
licensed Department inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut
program so as to improve the quality of domestic
peanuts and ensure the coordination of activities under
the Peanut Administrative Committee established under
Marketing Agreement No. 146, regulating the quality of
domestically produced peanuts (under the Agricultural
Adjustment Act (7 U.S.C. 601 et seq.), reenacted with
amendments by the Agricultural Marketing Agreement Act
of 1937); and
(D) ensure that any changes made in the peanut
program as a result of this subsection requiring
additional production or handling at the farm level
shall be reflected as an upward adjustment in the
Department loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement No.
146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent for
each of the 1994 and 1995 crops, 1.15 percent for the 1996
crop, and 1.2 percent for each of the 1997 through 2002 crops,
of the national average quota or additional peanut loan rate
for the applicable crop.
(2) First purchasers.--
(A) In general.--Except as provided under paragraphs
(3) and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing
assessment equal to the quantity of peanuts
acquired multiplied by--
(I) in the case of each of the 1994
and 1995 crops, .55 percent of the
applicable national average loan rate;
(II) in the case of the 1996 crop, .6
percent of the applicable national
average loan rate; and
(III) in the case of each of the 1997
through 2002 crops, .65 percent of the
applicable national average loan rate;
(ii) pay, in addition to the amount collected
under clause (i), a marketing assessment in an
amount equal to the quantity of peanuts
acquired multiplied by .55 percent of the
applicable national average loan rate; and
(iii) remit the amounts required under
clauses (i) and (ii) to the Commodity Credit
Corporation in a manner specified by the
Secretary.
(B) Definition of first purchaser.--In this
subsection, the term ``first purchaser'' means a person
acquiring peanuts from a producer except that in the
case of peanuts forfeited by a producer to the
Commodity Credit Corporation, the term means the person
acquiring the peanuts from the Commodity Credit
Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a retail
or wholesale outlet or in the case of a marketing by the
producer outside of the continental United States, the producer
shall be responsible for the full amount of the assessment and
shall remit the assessment by such time as is specified by the
Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged as
collateral for a loan made under this section, \1/2\ of the
assessment shall be deducted from the proceeds of the loan. The
remainder of the assessment shall be paid by the first
purchaser of the peanuts. For purposes of computing net gains
on peanuts under this section, the reduction in loan proceeds
shall be treated as having been paid to the producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are required
by the Secretary to carry out this subsection, the person shall
be liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of peanuts involved in the
violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective only for
the 1996 through 2002 crops of peanuts.
(i) Marketing Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking
``1991 through 1997 crops of'';
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by
striking ``of the 1991 through 1997 marketing
years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking
``1990'' and inserting ``1990, for the 1991
through 1995 marketing years, and 1995, for the
1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991
through 1997 marketing years'' and
inserting ``each marketing year''; and
(II) in clause (i), by inserting
before the semicolon the following: ``,
in the case of the 1991 through 1995
marketing years, and the 1995 marketing
year, in the case of the 1996 through
2002 marketing years''; and
(v) in subsection (f), by striking ``1997''
and inserting ``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking
``1991 through 1995 crops of''; and
(ii) in subsection (c), by striking ``1995''
and inserting ``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by
striking ``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking
``for 1991 through 1997 crops of
peanuts''; and
(ii) in subsection (i), by striking ``1997''
and inserting ``2002''.
(2) Eligibility for farm poundage quota.--
(A) Certain farms ineligible.--Section 358-1(b)(1) of
the Act (7 U.S.C. 1358-1(b)(1)) is amended by adding at
the end the following:
``(D) Certain farms ineligible to hold quota.--
Effective beginning with the 1997 marketing year, the
Secretary shall no longer establish farm poundage
quotas under subparagraph (A) for farms--
``(i) owned or controlled by municipalities,
airport authorities, schools, colleges,
refuges, and other public entities (not
including universities for research purposes);
or
``(ii) owned or controlled by a person who is
not a producer and resides in another State.''.
(B) Allocation of quota to other farms.--Section 358-
1(b)(2) of the Act (7 U.S.C. 1358-1(b)(2)) is amended
by adding at the end the following:
``(E) Transfer of quota from ineligible farms.--Any
farm poundage quota held at the end of the 1996
marketing year by a farm described in paragraph (1)(D)
shall be allocated to other farms in the same State on
such basis as the Secretary may by regulation
prescribe.''.
(3) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(4) Temporary quota allocation.--Section 358-1 of the Act (7
U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic
edible, seed,'' and inserting ``domestic edible use'';
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking
``subparagraph (B) and subject to''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--
Temporary allocation of quota pounds for the
marketing year only in which the crop is
planted shall be made to producers for each of
the 1996 through 2002 marketing years as
provided in this subparagraph.
``(ii) Quantity.--The temporary quota
allocation shall be equal to the pounds of seed
peanuts planted on the farm, as may be adjusted
under regulations prescribed by the Secretary.
``(iii) Additional quota.--The temporary
allocation of quota pounds under this paragraph
shall be in addition to the farm poundage quota
otherwise established under this subsection and
shall be credited, for the applicable marketing
year only, in total to the producer of the
peanuts on the farm in a manner prescribed by
the Secretary.
``(iv) Effect of other requirements.--Nothing
in this section alters or changes the
requirements regarding the use of quota and
additional peanuts established by section
358e(b).''; and
(C) in subsection (e)(3), strike ``and seed and use
on a farm''.
(5) Spring and fall transfers within a state.--Section
358b(a)(1) of the Act (7 U.S.C. 1358b(a)(1)) is amended--
(A) by striking ``, conditions, or limitations'' in
the matter preceding the subparagraphs and inserting
``and conditions'';
(B) by striking ``any such lease'' in the matter
preceding the subparagraphs and inserting ``any such
sale or lease''; and
(C) by striking ``in the fall or after the normal
planting season--'' and subparagraphs (A) and (B) and
inserting the following: ``in the spring (or before the
normal planting season) or in the fall (or after the
normal planting season) with the owner or operator of a
farm located within any county in the same State. In
the case of a fall transfer or a transfer after the
normal planting season, the transfer may be made only
if not less than 90 percent of the basic quota (the
farm quota exclusive of temporary quota transfers),
plus any poundage quota transferred to the farm under
this subsection, has been planted or considered planted
on the farm from which the quota is to be leased.''.
(6) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking
``including--'' and clauses (i) and (ii) and
inserting ``including any increases resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking
``include--'' and clauses (i) and (ii) and
inserting ``include any increase resulting from
the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking
``(including any applicable under marketings)''
both places it appears;
(ii) in paragraph (2), by striking
``(including any applicable under
marketings)''; and
(iii) in paragraph (3), by striking
``(including any applicable undermarketings)''.
(7) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragraph (6)(A)(iii), is
further amended by adding at the end the following:
``(8) Disaster transfers.--
``(A) In general.--Except as provided in subparagraph
(B), additional peanuts produced on a farm from which
the quota poundage was not harvested and marketed
because of drought, flood, or any other natural
disaster, or any other condition beyond the control of
the producer, may be transferred to the quota loan pool
for pricing purposes on such basis as the Secretary
shall by regulation provide.
``(B) Limitation.--The poundage of peanuts
transferred under subparagraph (A) shall not exceed the
difference between--
``(i) the total quantity of peanuts meeting
quality requirements for domestic edible use,
as determined by the Secretary, marketed from
the farm; and
``(ii) the total farm poundage quota,
excluding quota pounds transferred to the farm
in the fall.
``(C) Support rate.--Peanuts transferred under this
paragraph shall be supported at 70 percent of the quota
support rate for the marketing years in which the
transfers occur. The transfers for a farm shall not
exceed 25 percent of the total farm quota pounds,
excluding pounds transferred in the fall.''.
SEC. 107. SUGAR PROGRAM.
(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to 18 cents
per pound for raw cane sugar.
(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate equal to 22.9
cents per pound for refined beet sugar.
(c) Reduction in Loan Rates.--
(1) Reduction required.--The Secretary shall reduce the loan
rate specified in subsection (a) for domestically grown
sugarcane and subsection (b) for domestically grown sugar beets
if the Secretary determines that negotiated reductions in
export subsidies and domestic subsidies provided for sugar of
the European Union and other major sugar growing, producing,
and exporting countries in the aggregate exceed the commitments
made as part of the Agreement on Agriculture.
(2) Extent of reduction.--The Secretary shall not reduce the
loan rate under subsection (a) or (b) below a rate that
provides an equal measure of support to that provided by the
European Union and other major sugar growing, producing, and
exporting countries, based on an examination of both domestic
and export subsidies subject to reduction in the Agreement on
Agriculture.
(3) Announcement of reduction.--The Secretary shall announce
any loan rate reduction to be made under this subsection as far
in advance as is practicable.
(4) Major sugar countries defined.--For purposes of this
subsection, the term ``major sugar growing, producing, and
exporting countries'' means--
(A) the countries of the European Union; and
(B) the ten foreign countries not covered by
subparagraph (A) that the Secretary determines produce
the greatest amount of sugar.
(5) Agreement on agriculture defined.--For purposes of this
subsection, the term ``Agreement on Agriculture'' means the
Agreement on Agriculture referred to in section 101(d)(2) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).
(d) Term of Loans.--
(1) In general.--Loans under this section during any fiscal
year shall be made available not earlier than the beginning of
the fiscal year and shall mature at the earlier of--
(A) the end of 9 months; or
(B) the end of the fiscal year.
(2) Supplemental loans.--In the case of loans made under this
section in the last 3 months of a fiscal year, the processor
may repledge the sugar as collateral for a second loan in the
subsequent fiscal year, except that the second loan shall--
(A) be made at the loan rate in effect at the time
the second loan is made; and
(B) mature in 9 months less the quantity of time that
the first loan was in effect.
(e) Loan Type; Processor Assurances.--
(1) Recourse loans.--Subject to paragraph (2), the Secretary
shall carry out this section through the use of recourse loans.
(2) Nonrecourse loans.--During any fiscal year in which the
tariff rate quota for imports of sugar into the United States
is established at, or is increased to, a level in excess of
1,500,000 short tons raw value, the Secretary shall carry out
this section by making available nonrecourse loans. Any
recourse loan previously made available by the Secretary under
this section during the fiscal year shall be changed by the
Secretary into a nonrecourse loan.
(3) Processor assurances.--If the Secretary is required under
paragraph (2) to make nonrecourse loans available during a
fiscal year or to change recourse loans into nonrecourse loans,
the Secretary shall obtain from each processor that receives a
loan under this section such assurances as the Secretary
considers adequate to ensure that the processor will provide
payments to producers that are proportional to the value of the
loan received by the processor for sugar beets and sugarcane
delivered by producers served by the processor. The Secretary
may establish appropriate minimum payments for purposes of this
paragraph.
(f) Marketing Assessment.--
(1) Sugarcane.--Effective for marketings of raw cane sugar
during the 1996 through 2003 fiscal years, the first processor
of sugarcane shall remit to the Commodity Credit Corporation a
nonrefundable marketing assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1 percent of the loan rate established under
subsection (a) per pound of raw cane sugar, processed
by the processor from domestically produced sugarcane
or sugarcane molasses, that has been marketed
(including the transfer or delivery of the sugar to a
refinery for further processing or marketing); and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.375 percent of the loan rate
established under subsection (a) per pound of raw cane
sugar, processed by the processor from domestically
produced sugarcane or sugarcane molasses, that has been
marketed (including the transfer or delivery of the
sugar to a refinery for further processing or
marketing).
(2) Sugar beets.--Effective for marketings of beet sugar
during the 1996 through 2003 fiscal years, the first processor
of sugar beets shall remit to the Commodity Credit Corporation
a nonrefundable marketing assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1794 percent of the loan rate established under
subsection (a) per pound of beet sugar, processed by
the processor from domestically produced sugar beets or
sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.47425 percent of the loan
rate established under subsection (a) per pound of beet
sugar, processed by the processor from domestically
produced sugar beets or sugar beet molasses, that has
been marketed.
(3) Collection.--
(A) Timing.--A marketing assessment required under
this subsection shall be collected on a monthly basis
and shall be remitted to the Commodity Credit
Corporation not later than 30 days after the end of
each month. Any cane sugar or beet sugar processed
during a fiscal year that has not been marketed by
September 30 of the year shall be subject to assessment
on that date. The sugar shall not be subject to a
second assessment at the time that it is marketed.
(B) Manner.--Subject to subparagraph (A), marketing
assessments shall be collected under this subsection in
the manner prescribed by the Secretary and shall be
nonrefundable.
(4) Penalties.--If any person fails to remit the assessment
required by this subsection or fails to comply with such
requirements for recordkeeping or otherwise as are required by
the Secretary to carry out this subsection, the person shall be
liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of cane sugar or beet sugar involved
in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) Enforcement.--The Secretary may enforce this subsection
in a court of the United States.
(g) Forfeiture Penalty.--
(1) In general.--A penalty shall be assessed on the
forfeiture of any sugar pledged as collateral for a nonrecourse
loan under this section.
(2) Cane sugar.--The penalty for cane sugar shall be 1 cent
per pound.
(3) Beet sugar.--The penalty for beet sugar shall bear the
same relation to the penalty for cane sugar as the marketing
assessment for sugar beets bears to the marketing assessment
for sugarcane.
(4) Effect of forfeiture.--Any payments owed producers by a
processor that forfeits of any sugar pledged as collateral for
a nonrecourse loan shall be reduced in proportion to the loan
forfeiture penalty incurred by the processor.
(h) Information Reporting.--
(1) Duty of processors and refiners to report.--A sugarcane
processor, cane sugar refiner, and sugar beet processor shall
furnish the Secretary, on a monthly basis, such information as
the Secretary may require to administer sugar programs,
including the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution, and stock
levels of sugar.
(2) Penalty.--Any person willfully failing or refusing to
furnish the information, or furnishing willfully any false
information, shall be subject to a civil penalty of not more
than $10,000 for each such violation.
(3) Monthly reports.--Taking into consideration the
information received under paragraph (1), the Secretary shall
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
(i) Marketing Allotments.--Part VII of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is
repealed.
(j) Crops.--This section (other than subsection (i)) shall be
effective only for the 1996 through 2002 crops of sugar beets and
sugarcane.
SEC. 108. ADMINISTRATION.
(a) Commodity Credit Corporation.--
(1) Use of corporation.--The Secretary shall carry out this
title through the Commodity Credit Corporation.
(2) Prohibition on salaries and expenses.--Notwithstanding
any other provision of law, no funds of the Corporation shall
be used for any salary or expense of any officer or employee of
the Department of Agriculture.
(b) Determinations by Secretary.--A determination made by the
Secretary under this title or the Agricultural Adjustment Act of 1938
(7 U.S.C. 1281 et seq.) shall be final and conclusive.
(c) Regulations.--The Secretary may issue such regulations as the
Secretary determines necessary to carry out this title.
SEC. 109. ELIMINATION OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--The Agricultural Adjustment
Act of 1938 is amended--
(1) in title III--
(A) in subtitle B--
(i) by striking parts II through V (7 U.S.C.
1326-1351); and
(ii) in part VI--
(I) by moving subsection (c) of
section 358d (7 U.S.C. 1358d(c)) to
appear after section 301(b)(17) (7
U.S.C. 1301(b)(17)), redesignating the
subsection as paragraph (18), and
moving the margin of the paragraph 2
ems to the right; and
(II) by striking sections 358, 358a,
and 358d (7 U.S.C. 1358, 1358a, and
1359); and
(B) by striking subtitle D (7 U.S.C. 1379a-1379j);
and
(2) by striking title IV (7 U.S.C. 1401-1407).
(b) Agricultural Act of 1949.--
(1) Transfer of certain sections.--The Agricultural Act of
1949 is amended--
(A) by transferring sections 106, 106A, and 106B (7
U.S.C. 1445, 1445-1, 1445-2) to appear after section
314A of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1314-1) and redesignating the transferred
sections as sections 315, 315A, and 315B, respectively;
(B) by transferring section 111 (7 U.S.C. 1445f) to
appear after section 304 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1304) and redesignating the
transferred section as section 305; and
(C) by transferring sections 404 and 416 (7 U.S.C.
1424 and 1431) to appear after section 390 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1390) and
redesignating the transferred sections as sections 390A
and 390B, respectively.
(2) Repeal.--The Agricultural Act of 1949 (7 U.S.C. 1421 et
seq.) (as amended by paragraph (1)) is repealed.
(c) Conforming Amendments.--
(1) Section 361 of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1361) is amended by striking ``, corn, wheat, cotton,
peanuts, and rice, established''.
(2) Section 371 of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1371) is amended--
(A) in the first sentence of subsection (a), by
striking ``cotton, rice, peanuts, or''; and
(B) in the first sentence of subsection (b), by
striking ``cotton, rice, peanuts or''.
SEC. 110. EFFECT OF AMENDMENTS.
(a) Effect on Prior Crops.--Except as otherwise specifically provided
and notwithstanding any other provision of law, this title and the
amendments made by this title shall not affect the authority of the
Secretary to carry out a price support or production adjustment program
for any of the 1991 through 1995 crops of an agricultural commodity
established under a provision of law in effect immediately before the
date of the enactment of this Act.
(b) Liability.--A provision of this title or an amendment made by
this title shall not affect the liability of any person under any
provision of law as in effect before the date of the enactment of this
Act.
TITLE II--DAIRY
Subtitle A--Milk Price Support and Other Activities
SEC. 201. MILK PRICE SUPPORT PROGRAM.
(a) Support Activities.--To replace the milk price support program
established under section 204 of the Agricultural Act of 1949 (7 U.S.C.
1446e), which is repealed by section 109(b)(2)), the Secretary of
Agriculture shall use the authority provided in this section to support
the price of milk produced in the 48 contiguous States through the
purchase of cheddar cheese produced from such milk. Until the first day
of the first month beginning not less than 30 days after the date of
the enactment of this Act, the Secretary also may support the price of
milk under this section through the purchase of butter and nonfat dry
milk produced from milk produced in the 48 contiguous States.
(b) Rate.--The price of milk shall be supported at the following
rates per hundredweight for milk containing 3.67 percent butterfat:
(1) During calendar year 1996, not less than $10.35.
(2) During calendar year 1997, not less than $10.25.
(3) During calendar year 1998, not less than $10.15.
(4) During calendar year 1999, not less than $10.05.
(5) During calendar year 2000, not less than $9.95.
(6) During calendar years 2001 and 2002, not less than $9.85.
(c) Bid Prices.--The Commodity Credit Corporation support purchase
prices under this section for cheddar cheese (and for butter and nonfat
dry milk subject to subsection (a)) announced by the Corporation shall
be the same for all of that milk product sold by persons offering to
sell the product to the Corporation. The purchase prices shall be
sufficient to enable plants of average efficiency to pay producers, on
average, a price not less than the rate of price support for milk in
effect during a 12-month period under this section.
(d) Use of Commodity Credit Corporation.--The Secretary shall use the
funds, facilities, and authorities of the Commodity Credit Corporation
to carry out this section.
(e) Residual Authority for Refund of Budget Deficit Assessments.--
(1) Application of subsection.--This subsection shall apply
with respect to the reductions made under subsection (h)(2) of
section 204 of the Agricultural Act of 1949, as in effect on
the day before the date of the enactment of this Act, in the
price of milk received by producers during calendar years 1995
and 1996.
(2) Refund required.--The Secretary shall provide a refund of
the entire reduction made under such subsection (h)(2) in the
price of milk received by a producer during a calendar year
referred to in paragraph (1) if the producer provides evidence
that the producer did not increase marketings in that calendar
year when compared to the preceding calendar year.
(3) Treatment of refunds.--A refund under this subsection
shall not be considered as any type of price support or payment
for purposes of sections 1211 and 1221 of the Food Security Act
of 1985 (16 U.S.C. 3811, 3821).
(g) Transfer of Milk Products to Military and Veterans Hospitals.--
(1) Transfer authorized.--As a means of increasing the
utilization of milk and milk products, upon the certification
by the Secretary of Veterans Affairs or by the Secretary of the
Army, acting for the military departments under the Single
Service Purchase Assignment for Subsistence of the Department
of Defense, that the usual quantities of milk products have
been purchased in the normal channels of trade, the Commodity
Credit Corporation shall make available--
(A) to the Secretary of Veterans Affairs at
warehouses where milk products are stored, such milk
products acquired under this section as the Secretary
of Veterans Affairs certifies are required in order to
provide milk products as a part of the ration in
hospitals under the jurisdiction of the Secretary of
Veterans Affairs; and
(B) to the Secretary of the Army, at warehouses where
milk products are stored, such milk products acquired
under this section as the Secretary of the Army
certifies can be utilized in order to provide
additional milk products as a part of the ration--
(i) of the Army, Navy, Air Force, or Coast
Guard;
(ii) in hospitals under the jurisdiction of
the Department of Defense; and
(iii) of cadets and midshipmen at, and other
personnel assigned to, the United States
Merchant Marine Academy.
(2) Reports.--The Secretary of Veterans Affairs and the
Secretary of the Army shall report every six months to the
Committee on Agriculture, Nutrition, and Forestry of the Senate
and the Committee on Agriculture of the House of
Representatives and the Secretary of Agriculture the amount of
milk products used under this subsection.
(3) Process.--The Secretary of Veterans Affairs and the
Secretary of the Army shall reimburse the Commodity Credit
Corporation for all costs associated in making milk products
available under this subsection.
(4) Limitation.--The obligation of the Commodity Credit
Corporation to make milk products available pursuant to this
subsection shall be limited to milk products acquired by the
Corporation under this section and not disposed of under
provisions (1) and (2) of section 390B(a) of the Agricultural
Adjustment Act of 1938.
(h) Period of Effectiveness.--Notwithstanding any other provision of
law, this section shall be effective only during the period
(1) beginning on the date of the enactment of this Act; and
(2) ending on December 31, 2002.
SEC. 202. RECOURSE LOANS FOR COMMERCIAL PROCESSORS OF DAIRY PRODUCTS.
(a) Recourse Loans Available.--The Secretary of Agriculture shall
make recourse loans available to commercial processors of eligible
dairy products to assist such processors to manage inventories of
eligible dairy products to assure a greater degree of price stability
for the dairy industry during the year. Recourse loans may be made
available under such reasonable terms and conditions as the Secretary
may prescribe. The Secretary shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to carry out this
section.
(b) Amount of Loan.--The Secretary shall establish the amount of a
loan for eligible dairy products, which shall reflect 90 percent of the
reference price for that product. The rate of interest charged
participants in this program shall not be less than the rate of
interest charged the Commodity Credit Corporation by the United States
Treasury.
(c) Period of Loans.--A recourse loan made under this section may not
extend beyond the end of the fiscal year during which the loan is made,
except that the Secretary may extend the loan for an additional period
not to exceed the end of the next fiscal year.
(d) Definitions.--In this section:
(1) The term ``eligible dairy products'' means cheddar
cheese, butter, and nonfat dry milk.
(2) The term ``reference price'' means--
(A) for cheddar cheese, the average National (Green
Bay) Cheese Exchange price for 40 pound blocks of
cheddar cheese for the previous three months;
(B) for butter, the average Chicago Mercantile
Exchange price for Grade AA butter for the previous
three months; and
(C) for nonfat dry milk, the average Western States
Extra Grade and Grade A price for nonfat dry milk for
the previous three months.
SEC. 203. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Duration.--Subsection (a) of section 153 of the Food Security Act
of 1985 (15 U.S.C. 713a-14) is amended by striking ``2001'' and
inserting ``2002''.
(b) Elements of Program.--Subsection (c) of such section is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraphs:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States as a
member of the World Trade Organization are exported under the
program each year (minus the volume sold under section 1163 of
this Act (7 U.S.C. 1731 note) during that year), except to the
extent that the export of such a volume under the program
would, in the judgment of the Secretary, exceed the limitations
on the value set forth in subsection (f); and
``(4) payments may be made under the program for exports to
any destination in the world for the purpose of market
development, except a destination in a country with respect to
which shipments from the United States are otherwise restricted
by law.''.
(c) Sole Discretion.--Subsection (b) of such section is amended by
inserting ``sole'' before ``discretion''.
(d) Market Development.--Subsection (e)(1) of such section is
amended--
(1) by striking ``and'' and inserting ``the''; and
(2) by inserting before the period the following: ``, and any
additional amount that may be required to assist in the
development of world markets for United States dairy
products''.
(e) Maximum Allowable Amounts.--Such section is further amended by
adding at the end the following:
``(f) Required Funding.--The Commodity Credit Corporation shall in
each year use money and commodities for the program under this section
in the maximum amount consistent with the obligations of the United
States as a member of the World Trade Organization, minus the amount
expended under section 1163 of this Act (7 U.S.C. 1731 note) during
that year. However, the Commodity Credit Corporation may not exceed the
limitations specified in subsection (c)(3) on the volume of allowable
dairy product exports.''.
SEC. 204. DAIRY PROMOTION PROGRAM.
(a) Expansion to Cover Dairy Products Imported into the United
States.--Section 110(b) of the Dairy Production Stabilization Act of
1983 (7 U.S.C. 4501(b)) is amended by inserting after ``commercial
use'' the following: ``and dairy products imported into the United
States''.
(b) Definitions.--
(1) Milk.--Subsection (d) of section 111 of such Act (7
U.S.C. 4502) is amended by inserting before the semicolon the
following: ``or cow's milk imported into the United States in
the form of dairy products intended for consumption in the
United States''.
(2) Dairy products.--Subsection (e) of such section is
amended by inserting before the semicolon the following: ``and
casein (except casein imported under sections 3501.90.20
(casein glue) and 3501.90.50 (other) of the Harmonized Tariff
Schedule)''.
(3) Research.--Subsection (j) of such section is amended by
inserting before the semicolon the following: ``or to reduce
the costs associated with processing or marketing those
products''.
(4) United states.--Subsection (l) of such section is amended
to read as follows:
``(l) the term `United States' means the several States and
the District of Columbia;''.
(5) Importers and exporters.--Such section is further
amended--
(A) in subsection (k), by striking ``and'' at the end
of such subsection; and
(B) by adding at the end the following new
subsections:
``(m) the term `importer' means the first person to take
title to dairy products imported into the United States for
domestic consumption; and
``(n) the term `exporter' means any person who exports dairy
products from the United States.''.
(c) Membership of Board.--Section 113(b) of such Act (7 U.S.C.
4504(b)) is amended--
(1) in the first sentence, by striking ``thirty-six members''
and inserting ``38 members, including one representative of
importers and one representative of exporters to be appointed
by the Secretary'';
(2) in the second sentence, by striking ``Members'' and
inserting ``The remaining members''; and
(3) in the third sentence, by striking ``United States'' and
inserting ``United States, including Alaska and Hawaii''.
(d) Assessment.--Section 113(g) of such Act (7 U.S.C. 4504(g)) is
amended--
(1) by inserting ``(1)'' after ``(g)''; and
(2) by adding at the end the following new paragraph:
``(2) The order shall provide that each importer of dairy products
intended for consumption in the United States shall remit to the Board,
in the manner prescribed by the order, an assessment equal to 1.2 cents
per pound of total milk solids contained in the imported dairy
products, or 15 cents per hundredweight of milk contained in the
imported dairy products, whichever is less. If an importer can
establish that it is participating in active, ongoing qualified State
or regional dairy product promotion or nutrition programs intended to
increase the consumption of milk and dairy products, the importer shall
receive credit in determining the assessment due from that importer for
contributions to such programs of up to .8 cents per pound of total
milk solids contained in the imported dairy products, or 10 cents per
hundredweight of milk contained in the imported dairy products,
whichever is less. The assessment collected under this paragraph shall
be used for the purpose specified in paragraph (1).''.
(e) Records.--Section 113(k) of such Act (7 U.S.C. 4504(k)) is
amended in the first sentence by inserting after ``commercial use,''
the following: ``each importer of dairy products,''.
(f) Termination or Suspension of Order.--Section 116(b) of such Act
(7 U.S.C. 4507(b)) is amended--
(1) by inserting ``and importers'' after ``producers'' each
place it appears;
(2) by striking ``who, during a representative period (as
determined by the Secretary), have been engaged in the
production of milk for commercial use''; and
(3) by adding at the end the following new sentences: ``A
producer shall be eligible to vote in the referendum if the
producer, during a representative period (as determined by the
Secretary), has been engaged in the production of milk for
commercial use. An importer shall be eligible to vote in the
referendum if the importer, during a representative period (as
determined by the Secretary), has been engaged in the
importation of dairy products into the United States intended
for consumption in the United States.''.
(g) Promotion in international markets.--Section 113(e) of such Act
(7 U.S.C. 4504(e)) is amended by adding at the end the following new
sentence: ``For each of the fiscal years 1996 through 2000, the Board's
budget shall provide for the expenditure of not less than 10 percent of
the anticipated revenues available to the Board to develop
international markets for, and to promote within such markets, the
consumption of dairy products produced in the United States from milk
produced in the United States.''.
(h) Implementation of Amendments.--
(1) Implementation process.--To implement the amendments made
by this section, the Secretary of Agriculture shall issue an
amended dairy products promotion and research order under
section 112 of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4503) reflecting such amendments, and no other
changes, in the order in existence on the date of the enactment
of this Act.
(2) Proposal of amended order.--Not later than 60 days after
the date of the enactment of this Act, the Secretary shall
publish a proposed dairy products promotion and research order
reflecting the amendments made by this section. The Secretary
shall provide notice and an opportunity for public comment on
the proposed order.
(3) Issuance of amended order.--After notice and opportunity
for public comment are provided in accordance with paragraph
(2), the Secretary shall issue a final dairy products promotion
and research order, taking into consideration the comments
received and including in the order such provisions as are
necessary to ensure that the order is in conformity with the
amendments made by this section.
(3) Issuance of amended order.--After notice and opportunity
for public comment are provided in accordance with paragraph
(2), the Secretary shall issue a final dairy products promotion
and research order, taking into consideration the comments
received and including in the order such provisions as are
necessary to ensure that the order is in conformity with the
amendments made by this section.
(4) Effective date.--The final dairy products promotion and
research order shall be issued and become effective not later
than 120 days after publication of the proposed order.
(i) Referendum on Amendments.--Not later than 36 months after the
issuance of the dairy products promotion and research order reflecting
the amendments made by this section, the Secretary of Agriculture shall
conduct a referendum under section 115 of the Dairy Production
Stabilization Act of 1983 (7 U.S.C. 4506) for the sole purpose of
determining whether the requirements of such amendments shall be
continued. The Secretary shall conduct the referendum among persons who
have been producers or importers (as defined in section 111 of such Act
(7 U.S.C. 4502)) during a representative period as determined by the
Secretary. The requirements of such amendments shall be continued only
if the Secretary determines that such requirements have been approved
by not less than a majority of the persons voting in the referendum. If
continuation of the amendments is not approved, the Secretary shall
issue a new order, within six months after the announcement of the
results of the referendum, that is identical to the order in effect on
the date of the enactment of this Act. The new order shall become
effective upon issuance and shall not be subject to referendum for
approval.
SEC. 205. FLUID MILK STANDARDS UNDER MILK MARKETING ORDERS.
(a) Nature of Standards.--Each marketing order issued with respect to
milk and its products under section 8c of the Agricultural Adjustment
Act (7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, shall contain terms and conditions to
provide that all dispositions of fluid milk products containing milk of
the highest use classification covered by such orders shall comply with
the following requirements:
(1) In the case of milk marketed as whole milk, not less than
12.05 percent total milk solids consisting of not less than 8.8
percent milk solids not fat and not less than 3.25 percent milk
fat.
(2) In the case of milk marketed as 2 percent (or lowfat)
milk, not less than 12 percent total milk solids consisting of
not less than 10 percent milk solids not fat and not less than
2 percent milk fat.
(3) In the case of milk marketed as 1 percent (or light)
milk, not less than 12 percent total milk solids consisting of
not less than 11 percent milk solids not fat and not less than
1 percent milk fat.
(4) In the case of milk marketed as skim (or nonfat) milk,
not less than 9 percent total milk solids consisting of not
less than 9 percent milk solids not fat and not more than .25
percent milk fat.
(b) Violations.--A violation of the requirements specified in
subsection (a) shall be subject to the penalties provided in section
8c(14) of the Agricultural Adjustment Act (7 U.S.C. 608c(14)),
reenacted with amendments by the Agricultural Marketing Agreement Act
of 1937.
(c) Effective Date.--The requirements imposed by this section shall
apply to fluid milk marketed on and after the first day of the first
month beginning not less than 30 days after the date of the enactment
of this Act.
SEC. 206. MANUFACTURING ALLOWANCE.
(a) Maximum Allowances Established.--No State shall provide for a
manufacturing allowance for the processing of milk in excess of--
(1) in the case of milk manufactured into butter, butter oil,
nonfat dry milk, or whole dry milk--
(A) $1.65 per hundredweight of milk, for milk
marketed during the 2-year period beginning on the
effective date of this section; and
(B) such allowance per hundredweight of milk as the
Secretary of Agriculture may establish under section
221(b)(3), for milk marketed after the end of such
period; and
(2) in the case of milk manufactured into cheese and whey--
(A) $1.80 per hundredweight of milk, for milk
marketed during the 2-year period beginning on the
effective date of this section; and
(B) such allowance per hundredweight of milk as the
Secretary may establish under section 221(b)(3), for
milk marketed after the end of such period.
(b) Yields.--In converting the weight of milk to dairy products
during the two-year period beginning on the effective date of this
section, the Secretary shall use the following yields with respect to a
hundred pounds of milk:
(1) Butter: 4.2 pounds.
(2) Nonfat dry milk: 8.613 pounds.
(3) 40 pound block cheddar cheese: 10.169 pounds.
(4) Whey cream butter: .27 pounds.
(c) Sources of Product Price Values.--In determining the
manufacturing allowance applicable in a State during the 2-year period
beginning on the effective date of this section, the Secretary shall
use the following sources for product price values:
(1) For butter, Chicago Mercantile Exchange Grade AA butter.
(2) For nonfat dry milk, California Manufacturing Plants
Extra Grade and Grade A nonfat dry milk.
(3) For cheese, National (Green Bay) Cheese Exchange 40 pound
block cheddar cheese.
(4) For whey cream butter, Chicago Mercantile Exchange Grade
B butter.
(d) Manufacturing Allowance Defined.--In this section, the term
``manufacturing allowance'' means--
(1) the amount by which the product price value of butter and
nonfat dry milk manufactured from a hundred pounds of milk
containing 3.5 pounds of milk fat and 8.7 pounds of milk solids
not fat exceeds the class price for the milk used to produce
those products; or
(2) an amount by which the product price value of cheese and
whey manufactured from a hundred pounds of milk containing 3.6
pounds of milk fat and 8.7 pounds of milk solids not fat
exceeds the class price for the milk used to produce those
products.
(e) Effect of Violation.--If the Secretary determines that a State
has in effect a manufacturing allowance that exceeds the manufacturing
allowance authorized in subsection (a), the Secretary shall suspend,
until such time as the State complies with such subsection--
(1) purchases under section 201 of cheddar cheese produced in
that State; and
(2) disbursements from the Class IV equalization pool under
section 208 to milk marketing orders operating in that State
with respect to milk produced in that State.
(f) Conforming Suspension and Repeal.--
(1) Suspension and repeal.--During the 2-year period
beginning on the effective date of this section, the
requirements of section 102 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1446e-1) shall
not apply. Effective on the first day after the end of such
period, such section is repealed.
(2) Exception.--Notwithstanding paragraph (1), in the event
that an injunction or other order of a court prohibits or
impairs the implementation of this section or the activities of
the Secretary under this section, the Secretary shall use the
authorities provided by section 102 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1446e-1) until
such time as the injunction or other court order is lifted.
(g) Effective Date; Implementation.--This section shall take effect
on the first day of the first month beginning not less than 30 days
after the date of the enactment of this Act. After such effective date,
the Secretary may exercise the authority provided to the Secretary
under this section without regard to the issuance of regulations
intended to carry out this section.
SEC. 207. ESTABLISHMENT OF TEMPORARY CLASS I PRICE AND TEMPORARY CLASS
I EQUALIZATION POOLS.
(a) Temporary Pricing for Milk of the Highest Use Classification
(Class I Milk).--
(1) Establishment of minimum price.--During the 2-year period
beginning on the effective date of this section, the minimum
price for milk of the highest use classification marketed under
a marketing order issued under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937, shall not be
less than the sum of--
(A) $12.87 per hundredweight; and
(B) the aggregate adjustment in effect under clauses
(1) and (2) of the second sentence of paragraph (5)(A)
of such section on December 31, 1995, for milk of the
highest use classification in that order.
(2) Addition to minimum price.--If the basic formula price
for milk exceeds $12.87 per hundredweight in any month during
the 2-year period beginning on the effective date of this
section, the positive difference between the basic formula
price and $12.87 shall be added to the price for milk of the
highest use classification marketed under a marketing order
issued under such section 8c in the second month following the
month in which the difference occurred.
(3) Effect on other use classifications.--This subsection
shall not affect the calculation of the basic formula price
used to determine the price for milk of use classifications
other than the highest use classification.
(b) Class I Equalization Pools.--
(1) Collections.--During the 2-year period beginning on the
effective date of this section, the Secretary of Agriculture
shall collect, on a monthly basis, from each marketing order
issued with respect to milk and its products under section 8c
of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement Act of
1937, and from the comparable milk marketing order issued by
the State of California, an amount equal to the product of--
(A) $0.80 per hundredweight; and
(B) the total hundredweights of all milk of the
highest use classification marketed under the order for
the month.
(2) Disbursements.--The Secretary shall pay, on a monthly
basis, to each marketing order referred to in paragraph (1) an
amount equal to the product of--
(A) the total collection under paragraph (1) for the
month; and
(B) the ratio of the total hundredweights of all milk
marketed for the month under that order to all milk
marketed for the month under all such orders.
(3) Effect on blend prices.--Producer blend prices under a
milk marketing order shall be adjusted to account for
collections made under paragraph (1) and disbursements made
under paragraph (2).
(c) Enforcement.--
(1) In general.--Amounts for which a milk marketing order are
responsible under subsection (b) shall be determined on a
monthly basis and shall be collected and remitted to the
Secretary in the manner prescribed by the Secretary.
(2) Penalties.--If any person fails to remit the amount
required in subsection (b) or fails to comply with such
requirements for recordkeeping or otherwise as are required by
the Secretary to carry out this section, the person shall be
liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of milk involved in the violation;
by
(B) the support rate for milk in effect at the time
of the violation under section 201.
(3) Enforcement.--The Secretary may enforce this section in
the courts of the United States.
(d) Conforming Repeal.--Section 8c(5)(A) of the Agricultural
Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, is amended by striking
out the sentence beginning ``Throughout the 2-year period'' and all
that follows through the end of the subparagraph.
(e) Effective Date.--Except as provided in subsection (f), this
section shall take effect on the first day of the first month beginning
not less than 30 days after the date of the enactment of this Act.
(f) Implementation.--Not later than the effective date of this
section, the Secretary shall amend Federal milk marketing orders issued
under section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Agreement Act
of 1937, to effectuate the requirements of this section. The amendments
shall not be--
(1) subject to a referendum under subsection (17) or (19) of
such section among milk producers to determine whether issuance
of such order is approved or favored by milk producers;
(2) preconditioned on the existence of a marketing agreement
among handlers under subsection (8) of such section and section
8b of such Act (7 U.S.C. 608b);
(3) subject to rulemaking under title 5, United States Code;
or
(4) subject to review or approval by other executive
agencies.
SEC. 208. ESTABLISHMENT OF TEMPORARY CLASS IV PRICE AND TEMPORARY CLASS
IV EQUALIZATION POOL.
(a) Temporary Classification of Class IV Milk.--
(1) Classification.--For purposes of classifying milk in
accordance with the form in which or the purpose for which it
is used, the Secretary of Agriculture shall designate all milk
marketed in the 48 contiguous States of the United States and
used to produce butter, butter oil, nonfat dry milk, or dry
whole milk as Class IV milk. The Secretary may include other
products of milk, except cheese, within the Class IV
classification if the Secretary determines that inclusion of
the product would be fair and equitable.
(2) Use of classification.--Each marketing order issued with
respect to milk and its products under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937,
and each comparable State milk marketing order, shall use the
classification required by paragraph (1) in lieu of any other
classification, such as Class III-A milk, to properly classify
milk used to produce butter, butter oil, nonfat dry milk, or
dry whole milk.
(b) Establishment of Class IV Pool.--The Secretary shall establish a
Class IV pool for the purpose of making collections and disbursements
related to milk classified as Class IV milk under subsection (a). The
Class IV pool shall apply to milk covered by a milk marketing order
referred to in subsection (a) and unregulated milk.
(c) Establishment of Monthly Class IV Price.--For the purpose of
determining whether the Secretary will make collections and
disbursements under the Class IV equalization pool, the Secretary shall
establish, on a monthly basis, a price for dairy products manufactured
from Class IV milk on a 3.5 percent butterfat basis. In determining
that price, the Secretary shall calculate the amount equal to--
(1) the sum of--
(A) the product of the Western States Extra Grade and
Grade A price per pound for nonfat dry milk and 8.613;
and
(B) the product of the Chicago Mercantile Exchange
Grade AA price per pound for butter and 4.2; less
(2) a manufacturing allowance equal to $1.65 per
hundredweight of milk.
(d) Operation of Class IV Equalization Pool.--
(1) Application of subsection.--This subsection shall apply
in any month in which the support price for milk under section
201, adjusted to 3.5 percent butterfat, exceeds the Class IV
price established under subsection (c).
(2) Collection.--In any month in which the Class IV
equalization pool is in operation under paragraph (1), each
milk marketing order referred to in subsection (a) and each
handler of unregulated milk shall pay into the Class IV
equalization pool an amount equal to the product of--
(A) the total hundredweights of Class IV milk used to
manufacture dairy products during that month under all
such orders and by all such handlers;
(B) 50 percent of the amount by which the support
price for milk under section 201, adjusted to 3.5
percent butterfat, exceeded the Class IV price
determined under subsection (c) for that month; and
(C) the ratio of the total hundredweights of all milk
marketed during that month under that order or by that
handler to the total hundredweights of all milk
marketed for that month under all such orders and by
all such handlers.
(3) Disbursements.--In any month in which the Class IV
equalization pool is in operation under paragraph (1), each
milk marketing order referred to in subsection (a) in which
products were manufactured from Class IV milk during that month
and each handler of unregulated milk that manufactured products
from Class IV milk during that month shall receive from the
Class IV equalization pool an amount equal to the product of--
(A) the total collection under paragraph (2) for the
month; and
(B) the ratio of the total hundredweights of Class IV
milk manufactured into dairy products during that month
under that order or by that handler to the total
hundredweights of Class IV milk manufactured into dairy
products during that month under all such orders and by
all such handlers.
(4) Effect on blend prices.--Producer blend prices under a
milk marketing order referred to in subsection (a) shall be
adjusted to account for collections under paragraph (2) and
disbursements under paragraph (3).
(e) Enforcement.--
(1) In general.--Amounts for which a milk marketing order or
handler are responsible under subsection (b) shall be
determined on a monthly basis and shall be collected and
remitted to the Secretary in the manner prescribed by the
Secretary.
(2) Penalties.--If any person fails to remit the amount
required in subsection (c) or fails to comply with such
requirements for recordkeeping or otherwise as are required by
the Secretary to carry out this section, the person shall be
liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of milk involved in the violation;
by
(B) the support rate for milk in effect at the time
of the violation under section 201.
(3) Enforcement.--The Secretary may enforce this section in
the courts of the United States.
(f) Effective Date.--Except as provided in subsection (g), this
section shall--
(1) take effect on the first day of the first month beginning
not less than 30 days after the date of the enactment of this
Act; and
(2) apply during the 2-year period beginning on such
effective date.
(g) Implementation.--Not later than the start of the effective date
of this section, the Secretary shall amend Federal milk marketing
orders issued under section 8c of the Agricultural Adjustment Act (7
U.S.C. 608c), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, to effectuate the requirements of this section.
The amendments shall not be--
(1) subject a referendum under subsection (17) or (19) of
such section among milk producers to determine whether issuance
of such order is approved or favored by milk producers;
(2) preconditioned on the existence of a marketing agreement
among handlers under subsection (8) of such section and section
8b of such Act (7 U.S.C. 608b);
(3) subject to rulemaking under title 5, United States Code;
or
(4) subject to review or approval by other executive
agencies.
SEC. 209. AUTHORITY FOR ESTABLISHMENT OF STANDBY POOLS.
(a) Authority to Establish.--As soon as possible after the effective
date of this section, the Secretary of Agriculture shall publish in the
Federal Register an invitation for interested persons to submit
proposals for the establishment within Federal milk marketing orders
issued under section 8c of the Agricultural Adjustment Act (7 U.S.C.
608c), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, of standby pools to facilitate the movement of
milk over long distances during periods of shortage through the sharing
of proceeds from sales of milk of the highest use classification due to
producers under the order with producers shipping to plants regulated
by another order to provide a reserve supply of milk in the other
market.
(b) Approval or Termination of Participation in Standby Pool.--Order
provisions under this section shall not become effective in any
marketing order unless such provisions are approved by producers in the
manner provided for the approval of marketing orders under section 8c
of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, but
separately from other order provisions. Standby pool provisions
approved under this section in an order may be disapproved separately
by producers or terminated separately by the Secretary under section
8c(16)(B) of such Act. Such disapproval or termination shall not be
considered to be a disapproval or termination of the other terms of
that order.
(c) Effective Date.--This section shall take effect on the first day
of the first month beginning not less than 30 days after the date of
the enactment of this Act.
Subtitle B--Reform of Federal Milk Marketing Orders
SEC. 221. ISSUANCE OR AMENDMENT OF FEDERAL MILK MARKETING ORDERS TO
IMPLEMENT CERTAIN REFORMS.
(a) Issuance of Amended Orders.--Subject to the time limits specified
in section 222, the Secretary of Agriculture shall issue new or amended
marketing orders with respect to milk and its products under section 8c
of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937, to
effectuate the requirements of subsection (b). The orders shall take
effect on the date the orders are issued and shall supersede all other
marketing orders and any other statutes, rules, and regulations that
are applicable to the pricing and marketing of milk and its products in
effect immediately before that date, whether under the authority of
section 8c of such Act or a State or local law.
(b) Reform Requirements.--The Secretary shall reform the Federal milk
marketing order system under subsection (a) to accomplish the following
purposes:
(1) Consolidation of Federal milk marketing orders into not
less than 8 nor more than 13 orders, which shall also include
those areas of the 48 contiguous States not covered by a
Federal milk marketing order on the date of the enactment of
this Act. One of the new Federal milk marketing orders shall
only cover the State of California. A new or amended order
shall have the right to blend order receipts to address unique
issues to that order such as a preexisting State quota system.
(2) Implementation of uniform multiple component pricing for
milk used in manufactured dairy products.
(3) Establishment of class prices for milk used to produce
cheese, nonfat dry milk, and butter based on national product
prices, less a manufacturing allowance. The resulting prices
shall not vary regionally, except to reflect variances in
transportation and reasonable operating costs, if any, of
efficient processing plants in different geographical areas.
(c) Status of Producer Handlers.--In amending Federal milk marketing
orders under this section, the Secretary shall ensure that the legal
status of producer handlers of milk under the Agricultural Adjustment
Act (7 U.S.C. 601 et seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937, shall be the same after
the amendments made by this section take effect as it was before the
effective date of the amendments.
SEC. 222. REFORM PROCESS.
(a) Process.--In preparation for the issuance of the new or amended
Federal milk marketing orders required under section 221, the Secretary
of Agriculture shall comply with the following expedited procedural
requirements:
(1) Not later than 165 days after the date of the enactment
of this Act, the Secretary shall issue proposed amendments or
new milk marketing orders to effectuate the reform requirements
specified in such section.
(2) The Secretary shall provide for a 75-day comment period
on the proposed amendments or orders issued under paragraph
(1).
(3) Not later than 120 days after the end of the comment
period provided under paragraph (2), the Secretary shall
publish in the Federal Register a final administrative decision
regarding the issuance or amendment of Federal milk marketing
orders to effectuate the reform requirements specified in such
section.
(b) Referendum and Marketing Agreement.--After the issuance of the
new or amended Federal milk marketing orders under section 221, the
Secretary may conduct a referendum in the manner provided in section
8c(16)(B) of the Agricultural Adjustment Act (7 U.S.C. 608c(16)(B)),
reenacted with amendments by the Agricultural Marketing Agreement Act
of 1937, with respect to each order to determine whether milk producers
subject to the order favor the termination of the order.
(c) Application of Administrative Procedures Act.--The issuance of
the new or amended Federal milk marketing orders required under section
221 shall not be subject to rulemaking under title 5, United States
Code.
(d) Review and Approval.--The action of the Secretary under section
221 shall not be subject to review or approval by any other executive
agency.
SEC. 223. EFFECT OF FAILURE TO COMPLY WITH REFORM PROCESS REQUIREMENTS.
(a) Failure to Timely Issue or Amend Orders.--If, before the end of
the 1-year period beginning on the date of the enactment of this Act,
the Secretary of Agriculture does not issue new or amended Federal milk
marketing orders under section 8c of the Agricultural Adjustment Act (7
U.S.C. 608c), reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, to effectuate the requirements of section
221(b), then the Secretary may not assess or collect assessments from
milk producers or handlers under such section 8c for marketing order
administration and services provided under such section after the end
of that period. The Secretary may not reduce the level of services
provided under such section on account of the prohibition against
assessments, but shall rather cover the cost of marketing order
administration and services through funds available for the
Agricultural Marketing Service of the Department of Agriculture.
(b) Failure to Timely Implement Orders.--Unless the Secretary
certifies to Congress before the end of the 2-year period beginning on
the date of the enactment of this Act that all of the Federal marketing
order reforms required by section 221(b) have been fully implemented,
then, effective at the end of that period--
(1) the Secretary shall immediately cease all price support
activities under section 201;
(2) the Secretary shall immediately terminate all Federal
milk marketing orders under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Agreement Act of 1937, and may not
issue any further order under such Act with respect to milk;
(3) the Commodity Credit Corporation shall immediately cease
to operate the dairy export incentive program under section 153
of the Food Security Act of 1985 (15 U.S.C. 713a-14);
(4) the Secretary and the National Processor Advertising and
Promotion Board shall immediately cease all activities under
the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6401 et seq.);
and
(5) the Secretary and the National Dairy Promotion and
Research Board shall immediately cease all activities under the
Dairy Production Stabilization Act of 1983 (7 U.S.C. 4501 et
seq.).
(c) Effect of Court Order.--The actions authorized by this section
are intended to ensure the timely publication and implementation of new
and amended Federal milk marketing orders under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with amendments
by the Agricultural Marketing Agreement Act of 1937. In the event that
the Secretary is enjoined or otherwise restrained by a court order from
publishing or implementing the reform requirements specified by section
221, the length of time for which that injunction or other restraining
order is effective shall be added to the time limitations specified in
subsections (a) and (b) thereby extending those time limitations by a
period of time equal to the period of time for which the injunction or
other restraining order is effective.
TITLE III--CONSERVATION
SEC. 301. CONSERVATION.
(a) Funding.--Subtitle E of title XII of the Food Security Act of
1985 (16 U.S.C. 3841 et seq.) is amended to read as follows:
``Subtitle E--Funding
``SEC. 1241. FUNDING.
``(a) Mandatory Expenses.--For each of fiscal years 1996 through
2002, the Secretary shall use the funds of the Commodity Credit
Corporation to carry out the programs authorized by--
``(1) subchapter B of chapter 1 of subtitle D (including
contracts extended by the Secretary pursuant to section 1437 of
the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 16 U.S.C. 3831 note));
``(2) subchapter C of chapter 1 of subtitle D; and
``(3) chapter 4 of subtitle D.
``(b) Livestock Environmental Assistance Program.--For each of fiscal
years 1996 through 2002, $100,000,000 of the funds of the Commodity
Credit Corporation shall be available for providing technical
assistance, cost-sharing payments, and incentive payments for practices
relating to livestock production under the livestock environmental
assistance program under chapter 4 of subtitle D.''.
(b) Livestock Environmental Assistance Program.--Subtitle D of title
XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is
amended by adding at the end the following:
``CHAPTER 4--LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM
``SEC. 1240. DEFINITIONS.
``In this chapter:
``(1) Land management practice.--The term `land management
practice' means a site-specific nutrient or manure management,
irrigation management, tillage or residue management, grazing
management, or other land management practice that the
Secretary determines is needed to protect, in the most cost
effective manner, water, soil, or related resources from
degradation due to livestock production.
``(2) Large confined livestock operation.--The term `large
confined livestock operation' means an operation that--
``(A) is a confined animal feeding operation; and
``(B) has more than--
``(i) 55 mature dairy cattle;
``(ii) 10,000 beef cattle;
``(iii) 30,000 laying hens or broilers (if
the facility has continuous overflow watering);
``(iv) 100,000 laying hens or broilers (if
the facility has a liquid manure system);
``(v) 55,000 turkeys;
``(vi) 15,000 swine; or
``(vii) 10,000 sheep or lambs.
``(3) Livestock.--The term `livestock' means dairy cows, beef
cattle, laying hens, broilers, turkeys, swine, sheep, lambs,
and such other animals as determined by the Secretary.
``(4) Operator.--The term `operator' means a person who is
engaged in livestock production (as defined by the Secretary).
``(5) Structural practice.--The term `structural practice'
means the establishment of an animal waste management facility,
terrace, grassed waterway, contour grass strip, filterstrip, or
other structural practice that the Secretary determines is
needed to protect, in the most cost effective manner, water,
soil, or related resources from degradation due to livestock
production.
``SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF LIVESTOCK
ENVIRONMENTAL ASSISTANCE PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 fiscal years,
the Secretary shall provide technical assistance, cost-sharing
payments, and incentive payments to operators who enter into
contracts with the Secretary, through a livestock environmental
assistance program.
``(2) Eligible practices.--
``(A) Structural practices.--An operator who
implements a structural practice shall be eligible for
technical assistance or cost-sharing payments, or both.
``(B) Land management practices.--An operator who
performs a land management practice shall be eligible
for technical assistance or incentive payments, or
both.
``(3) Eligible land.--Assistance under this chapter may be
provided with respect to land that is used for livestock
production and on which a serious threat to water, soil, or
related resources exists, as determined by the Secretary, by
reason of the soil types, terrain, climatic, soil, topographic,
flood, or saline characteristics, or other factors or natural
hazards.
``(4) Selection criteria.--In providing technical assistance,
cost-sharing payments, and incentive payments to operators in a
region, watershed, or conservation priority area in which an
agricultural operation is located, the Secretary shall
consider--
``(A) the significance of the water, soil, and
related natural resource problems; and
``(B) the maximization of environmental benefits per
dollar expended.
``(b) Application and Term.--
``(1) In general.--A contract between an operator and the
Secretary under this chapter may--
``(A) apply to 1 or more structural practices or 1 or
more land management practices, or both; and
``(B) have a term of not less than 5, nor more than
10 years, as determined appropriate by the Secretary,
depending on the practice or practices that are the
basis of the contract.
``(2) Duties of operators and secretary.--To receive cost-
sharing or incentive payments, or technical assistance,
participating operators shall comply with all terms and
conditions of the contract and a plan, as established by the
Secretary.
``(c) Structural Practices.--
``(1) Competitive offer.--The Secretary shall administer a
competitive offer system for operators proposing to receive
cost-sharing payments in exchange for the implementation of 1
or more structural practices by the operator. The competitive
offer system shall consist of--
``(A) the submission of a competitive offer by the
operator in such manner as the Secretary may prescribe;
and
``(B) evaluation of the offer in light of the
selection criteria established under subsection (a)(4)
and the projected cost of the proposal, as determined
by the Secretary.
``(2) Concurrence of owner.--If the operator 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 operator shall obtain the concurrence of the
owner of the land with respect to the offer.
``(d) Land Management Practices.--The Secretary shall establish an
application and evaluation process for awarding technical assistance or
incentive payments, or both, to an operator in exchange for the
performance of 1 or more land management practices by the operator.
``(e) Cost-Sharing, Incentive Payments, and Technical Assistance.--
``(1) Cost-sharing payments.--
``(A) In general.--The Federal share of cost-sharing
payments to an operator proposing to implement 1 or
more structural practices shall not be greater than 75
percent of the projected cost of each practice, as
determined by the Secretary, taking into consideration
any payment received by the operator from a State or
local government.
``(B) Limitation.--An operator of a large confined
livestock operation shall not be eligible for cost-
sharing payments to construct an animal waste
management facility.
``(C) Other payments.--An operator shall not be
eligible for cost-sharing payments for structural
practices on eligible land under this chapter if the
operator receives cost-sharing payments or other
benefits for the same land under chapter 1, 2, or 3.
``(2) Incentive payments.--The Secretary shall make incentive
payments in an amount and at a rate determined by the Secretary
to be necessary to encourage an operator to perform 1 or more
land management practices.
``(3) Technical assistance.--
``(A) Funding.--The Secretary shall allocate funding
under this chapter for the provision of technical
assistance according to the purpose and projected cost
for which the technical assistance is provided for a
fiscal year. The allocated amount may vary according to
the type of expertise required, quantity of time
involved, and other factors as determined appropriate
by the Secretary. Funding shall not exceed the
projected cost to the Secretary of the technical
assistance provided for a fiscal year.
``(B) Other authorities.--The receipt of technical
assistance under this chapter shall not affect the
eligibility of the operator to receive technical
assistance under other authorities of law available to
the Secretary.
``(f) Limitation on Payments.--
``(1) In general.--The total amount of cost-sharing and
incentive payments paid to a person under this chapter may not
exceed--
``(A) $10,000 for any fiscal year; or
``(B) $50,000 for any multiyear contract.
``(2) Regulations.--The Secretary shall issue regulations
that are consistent with section 1001 for the purpose of--
``(A) defining the term `person' as used in paragraph
(1); and
``(B) prescribing such rules as the Secretary
determines necessary to ensure a fair and reasonable
application of the limitations established under this
subsection.
``(g) Regulations.--Not later than 180 days after the effective date
of this subsection, the Secretary shall issue regulations to implement
the livestock environmental assistance program established under this
chapter.''.
(c) Conforming Program Changes.--
(1) Wetlands reserve program.--
(A) In general.--Section 1237 of the Food Security
Act of 1985 (16 U.S.C. 3837) is amended--
(i) in subsection (b)(2)--
(I) by striking ``not less'' and
inserting ``not more''; and
(II) by striking ``2000'' and
inserting ``2002''; and
(ii) in subsection (c), by striking ``2000''
and inserting ``2002''.
(B) Length of easement.--Section 1237A(e) of the Food
Security Act of 1985 (16 U.S.C. 3837a(e)) is amended by
striking paragraph (2) and inserting the following:
``(2) shall be for 15 years, but in no case shall be a
permanent easement.''.
(2) Conservation reserve program.--Section 1231(d) of the
Food Security Act of 1985 (16 U.S.C. 3831(d)) is amended by
striking ``total of'' and all that follows through the period
at the end of the subsection and inserting ``total of
36,400,000 acres.''. Section 725 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 332), is
amended by striking the proviso relating to enrollment of new
acres in 1997.
TITLE IV--AGRICULTURAL PROMOTION AND EXPORT PROGRAMS
SEC. 401. MARKET PROMOTION PROGRAM.
Effective as of October 1, 1995, section 211(c)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--
(1) by striking ``and'' after ``1991 through 1993,''; and
(2) by striking ``through 1997,'' and inserting ``through
1995, and not more than $100,000,000 for each of fiscal years
1996 through 2002,''.
SEC. 402. EXPORT ENHANCEMENT PROGRAM.
Effective as of October 1, 1995, section 301(e)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amended to read
as follows:
``(1) In general.--The Commodity Credit Corporation shall
make available to carry out the program established under this
section not more than--
``(A) $350,000,000 for fiscal year 1996;
``(B) $350,000,000 for fiscal year 1997;
``(C) $500,000,000 for fiscal year 1998;
``(D) $550,000,000 for fiscal year 1999;
``(E) $579,000,000 for fiscal year 2000;
``(F) $478,000,000 for fiscal year 2001; and
``(G) $478,000,000 for fiscal year 2002.''.
TITLE V--MISCELLANEOUS
SEC. 501. CROP INSURANCE.
(a) Catastrophic Risk Protection.--Section 508(b) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)) is amended--
(1) in paragraph (4), by adding at the end the following:
``(C) Delivery of coverage.--
``(i) In general.--In full consultation with
approved insurance providers, the Secretary may
continue to offer catastrophic risk protection
in a State (or a portion of a State) through
local offices of the Department if the
Secretary determines that there is an
insufficient number of approved insurance
providers operating in the State or portion to
adequately provide catastrophic risk protection
coverage to producers.
``(ii) Coverage by approved insurance
providers.--To the extent that catastrophic
risk protection coverage by approved insurance
providers is sufficiently available in a State
as determined by the Secretary, only approved
insurance providers may provide the coverage in
the State.
``(iii) Current policies.--Subject to clause
(ii), all catastrophic risk protection policies
written by local offices of the Department
shall be transferred (including all fees
collected for the crop year in which the
approved insurance provider will assume the
policies) to the approved insurance provider
for performance of all sales, service, and loss
adjustment functions.''; and
(2) in paragraph (7), by striking subparagraph (A) and
inserting the following:
``(A) In general.--Effective for the spring-planted
1996 and subsequent crops, to be eligible for any
payment or loan under title I of the Agricultural
Market Transition Act or the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1281 et seq.), for the
conservation reserve program, or for any benefit
described in section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f), a person
shall--
``(i) obtain at least the catastrophic level
of insurance for each crop of economic
significance in which the person has an
interest; or
``(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connection
with the crop.''.
(b) Coverage of Seed Crops.--Section 519(a)(2)(B) of the Act (7
U.S.C. 1519(a)(2)(B)) is amended by inserting ``seed crops,'' after
``turfgrass sod,''.
SEC. 502. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION
FEES.
Subsection (a) of section 2509 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is amended to read
as follows:
``(a) Quarantine and Inspection Fees.--
``(1) Fees authorized.--The Secretary of Agriculture may
prescribe and collect fees sufficient--
``(A) to cover the cost of providing agricultural
quarantine and inspection services in connection with
the arrival at a port in the customs territory of the
United States, or the preclearance or preinspection at
a site outside the customs territory of the United
States, of an international passenger, commercial
vessel, commercial aircraft, commercial truck, or
railroad car;
``(B) to cover the cost of administering this
subsection; and
``(C) through fiscal year 2002, to maintain a
reasonable balance in the Agricultural Quarantine
Inspection User Fee Account established under paragraph
(5).
``(2) Limitation.--In setting the fees under paragraph (1),
the Secretary shall ensure that the amount of the fees are
commensurate with the costs of agricultural quarantine and
inspection services with respect to the class of persons or
entities paying the fees. The costs of the services with
respect to passengers as a class includes the costs of related
inspections of the aircraft or other vehicle.
``(3) Status of fees.--Fees collected under this subsection
by any person on behalf of the Secretary are held in trust for
the United States and shall be remitted to the Secretary in
such manner and at such times as the Secretary may prescribe.
``(4) Late payment penalties.--If a person subject to a fee
under this subsection fails to pay the fee when due, the
Secretary shall assess a late payment penalty, and the overdue
fees shall accrue interest, as required by section 3717 of
title 31, United States Code.
``(5) Agricultural quarantine inspection user fee account.--
``(A) Establishment.--There is established in the
Treasury of the United States a no-year fund, to be
known as the `Agricultural Quarantine Inspection User
Fee Account', which shall contain all of the fees
collected under this subsection and late payment
penalties and interest charges collected under
paragraph (4) through fiscal year 2002.
``(B) Use of account.--For each of the fiscal years
1996 through 2002, funds in the Agricultural Quarantine
Inspection User Fee Account shall be available, in such
amounts as are provided in advance in appropriations
Acts, to cover the costs associated with the provision
of agricultural quarantine and inspection services and
the administration of this subsection. Amounts made
available under this subparagraph shall be available
until expended.
``(C) Excess fees.--Fees and other amounts collected
under this subsection in any of the fiscal years 1996
through 2002 in excess of $100,000,000 shall be
available for the purposes specified in subparagraph
(B) until expended, without further appropriation.
``(6) Use of amounts collected after fiscal year 2002.--After
September 30, 2002, the unobligated balance in the Agricultural
Quarantine Inspection User Fee Account and fees and other
amounts collected under this subsection shall be credited to
the Department of Agriculture accounts that incur the costs
associated with the provision of agricultural quarantine and
inspection services and the administration of this subsection.
The fees and other amounts shall remain available to the
Secretary until expended without fiscal year limitation.
``(7) Staff years.--The number of full-time equivalent
positions in the Department of Agriculture attributable to the
provision of agricultural quarantine and inspection services
and the administration of this subsection shall not be counted
toward the limitation on the total number of full-time
equivalent positions in all agencies specified in section 5(b)
of the Federal Workforce Restructuring Act of 1994 (Public Law
103-226; 5 U.S.C. 3101 note) or other limitation on the total
number of full-time equivalent positions.''.
SEC. 503. COMMODITY CREDIT CORPORATION INTEREST RATE.
Notwithstanding any other provision of law, the monthly Commodity
Credit Corporation interest rate applicable to loans provided for
agricultural commodities by the Corporation shall be 100 basis points
greater than the rate determined under the applicable interest rate
formula in effect on October 1, 1995.
SEC. 504. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.
(a) Establishment.--The Department of Agriculture Reorganization Act
of 1994 is amended by inserting after section 226 (7 U.S.C. 6932) the
following new section:
``SEC. 226A. OFFICE OF RISK MANAGEMENT.
``(a) Establishment.--Subject to subsection (e), the Secretary shall
establish and maintain in the Department an independent Office of Risk
Management.
``(b) Functions of the Office of Risk Management.--The Office of Risk
Management shall have jurisdiction over the following functions:
``(1) Supervision of the Federal Crop Insurance Corporation.
``(2) Administration and oversight of all aspects, including
delivery through local offices of the Department, of all
programs authorized under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).
``(3) Any pilot or other programs involving revenue
insurance, risk management savings accounts, or the use of the
futures market to manage risk and support farm income that may
be established under the Federal Crop Insurance Act or other
law.
``(4) Such other functions as the Secretary considers
appropriate.
``(c) Administrator.--
``(1) The Office of Risk Management shall be headed by an
Administrator who shall be appointed by the Secretary.
``(2) The Administrator of the Office of Risk Management
shall also serve as Manager of the Federal Crop Insurance
Corporation.
``(d) Resources.--
``(1) Functional coordination.--Certain functions of the
Office of Risk Management, such as human resources, public
affairs, and legislative affairs, may be provided by a
consolidation of such functions under the Under Secretary of
Agriculture for Farm and Foreign Agricultural Services.
``(2) Minimum provisions.--Notwithstanding paragraph (1) or
any other provision of law or order of the Secretary, the
Secretary shall provide the Office of Risk Management with
human and capital resources sufficient for the Office to carry
out its functions in a timely and efficient manner.''.
(b) Fiscal Year 1996 Funding.--Not less than $88,500,000 of the
appropriation provided for the salaries and expenses of the
Consolidated Farm Services Agency in the Agricultural, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1996 shall be available for the salaries and
expenses of the Office of Risk Management established under subsection
(a).
(c) Conforming Amendment.--Section 226(b) of the Act (7 U.S.C.
6932(b)) is amended by striking paragraph (2).
SEC. 505. BUSINESS INTERRUPTION INSURANCE PROGRAM.
(a) Establishment of Program.--Not later than December 31, 1996, the
Secretary of Agriculture shall implement a program (to be known as the
``Business Interruption Insurance Program''), under which the producer
of a contract commodity could elect to obtain revenue insurance
coverage to ensure that the producer receives an indemnity payment if
the producer suffers a loss of revenue. The nature and extent of the
program and the manner of determining the amount of an indemnity
payment shall be established by the Secretary.
(b) Report on Progress and Proposed Expansion.--Not later than
January 1, 1998, the Secretary shall submit to the Commission on 21st
Century Production Agriculture the data and results of the program
through October 1, 1997. In addition, the Secretary shall submit
information and recommendations to the Commission with respect to the
program that will serve as the basis for the Secretary to offer revenue
insurance to agricultural producers, at one or more levels of coverage,
that--
(1) is in addition to, or in lieu of, catastrophic and higher
levels of crop insurance;
(2) is offered through reinsurance arrangements with private
insurance companies;
(3) is actuarially sound; and
(4) requires the payment of premiums and administrative fees
by participating producers.
(c) Contract Commodity Defined.--In this section, the term ``contract
commodity'' means a crop of wheat, corn, grain sorghum, oats, barley,
upland cotton, or rice.
SEC. 506. CONTINUATION OF OPTIONS PILOT PROGRAM.
During the 1996 through 2002 crop years, the Secretary of Agriculture
may continue to conduct the options pilot program authorized by the
Options Pilot Program Act of 1990 (subtitle E of title XI of Public Law
101-624; 104 Stat. 3518; 7 U.S.C. 1421 note). To the extent that the
Secretary decides to continue the options pilot program, the Secretary
shall modify the terms and conditions of the pilot program to reflect
the changes to law made by this Act.
TITLE VI--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE
SEC. 601. ESTABLISHMENT.
There is hereby established a commission to be known as the
``Commission on 21st Century Production Agriculture'' (in this title
referred to as the ``Commission'').
SEC. 602. COMPOSITION.
(a) Membership and Appointment.--The Commission shall be composed of
11 members, appointed as follows:
(1) Three members shall be appointed by the President.
(2) Four members shall be appointed by the Chairman of the
Committee on Agriculture of the House of Representatives in
consultation with the ranking minority member of the Committee.
(3) Four members shall be appointed by the Chairman of the
Committee on Agriculture, Nutrition, and Forestry of the Senate
in consultation with the ranking minority member of the
Committee.
(b) Qualifications.--At least one of the members appointed under each
of the paragraphs (1), (2), and (3) of subsection (a) shall be an
individual who is primarily involved in production agriculture. All
other members of the Commission shall be appointed from among
individuals having knowledge and experience in agricultural production,
marketing, finance, or trade.
(c) Term of Members; Vacancies.--Members of the Commission shall be
appointed for the life of the Commission. A vacancy on the Commission
shall not affect its powers, but shall be filled in the same manner as
the original appointment was made.
(d) Time for Appointment; First Meeting.--The members of the
Commission shall be appointed not later than October 1, 1997. The
Commission shall convene its first meeting to carry out its duties
under this Act 30 days after six members of the Commission have been
appointed.
(e) Chairman.--The chairman of the Commission shall be designated
jointly by the Chairman of the Committee on Agriculture of the House of
Representatives and the Chairman of the Committee on Agriculture,
Nutrition, and Forestry of the Senate from among the members of the
Commission.
SEC. 603. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION
AGRICULTURE.
(a) Initial Review.--The Commission shall conduct a comprehensive
review of changes in the condition of production agriculture in the
United States since the date of the enactment of this Act and the
extent to which such changes are the result of the amendments made by
this Act. The review shall include the following:
(1) An assessment of the initial success of production
flexibility contracts under section 103 in supporting the
economic viability of farming in the United States.
(2) An assessment of the food security situation in the
United States in the areas of trade, consumer prices,
international competitiveness of United States production
agriculture, food supplies, and humanitarian relief.
(3) An assessment of the changes in farmland values and
agricultural producer incomes since the date of the enactment
of this Act.
(4) An assessment of the extent to which regulatory relief
for agricultural producers has been enacted and implemented,
including the application of cost/benefit principles in the
issuance of agricultural regulations.
(5) An assessment of the extent to which tax relief for
agricultural producers has been enacted in the form of capital
gains tax reductions, estate tax exemptions, and mechanisms to
average tax loads over high and low income years.
(6) An assessment of the effect of any Government
interference in agricultural export markets, such as the
imposition of trade embargoes, and the degree of implementation
and success of international trade agreements.
(7) An assessment of the likely affect of the sale, lease, or
transfer of farm poundage quota for peanuts across State lines.
(b) Subsequent Review.--The Commission shall conduct a comprehensive
review of the future of production agriculture in the United States and
the appropriate role of the Federal Government in support of production
agriculture. The review shall include the following:
(1) An assessment of changes in the condition of production
agriculture in the United States since the initial review
conducted under subsection (a).
(2) Identification of the appropriate future relationship of
the Federal Government with production agriculture after 2002.
(3) An assessment of the personnel and infrastructure
requirements of the Department of Agriculture necessary to
support the future relationship of the Federal Government with
production agriculture.
(c) Recommendations.--In carrying out the subsequent review under
subsection (b), the Commission shall develop specific recommendations
for legislation to achieve the appropriate future relationship of the
Federal Government with production agriculture identified under
subsection (a)(2).
SEC. 604. REPORTS.
(a) Report on Initial Review.--Not later than June 1, 1998, the
Commission shall submit to the President, the Committee on Agriculture
of the House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report containing the results
of the initial review conducted under section 603(a).
(b) Report on Subsequent Review.--Not later than January 1, 2001, the
Commission shall submit to the President and the congressional
committees specified in subsection (a) a report containing the results
of the subsequent review conducted under section 603(b).
SEC. 605. POWERS.
(a) Hearings.--The Commission may, for the purpose of carrying out
this Act, conduct such hearings, sit and act at such times, take such
testimony, and receive such evidence, as the Commission considers
appropriate.
(b) Assistance From Other Agencies.--The Commission may secure
directly from any department or agency of the Federal Government such
information as may be necessary for the Commission to carry out its
duties under this Act. Upon request of the chairman of the Commission,
the head of the department or agency shall, to the extent permitted by
law, furnish such information to the Commission.
(c) Mail.--The Commission may use the United States mails in the same
manner and under the same conditions as the departments and agencies of
the Federal Government.
(d) Assistance From Secretary.--The Secretary of Agriculture shall
provide to the Commission appropriate office space and such reasonable
administrative and support services as the Commission may request.
SEC. 606. COMMISSION PROCEDURES.
(a) Meetings.--The Commission shall meet on a regular basis (as
determined by the chairman) and at the call of the chairman or a
majority of its members.
(b) Quorum.--A majority of the members of the Commission shall
constitute a quorum for the transaction of business.
SEC. 607. PERSONNEL MATTERS.
(a) Compensation.--Each member of the Commission shall serve without
compensation, but shall be allowed travel expenses including per diem
in lieu of subsistence, as authorized by section 5703 of title 5,
United States Code, when engaged in the performance of Commission
duties.
(b) Staff.--The Commission shall appoint a staff director, who shall
be paid at a rate not to exceed the maximum rate of basic pay under
section 5376 of title 5, United States Code, and such professional and
clerical personnel as may be reasonable and necessary to enable the
Commission to carry out its duties under this Act without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title, or any other
provision of law, relating to the number, classification, and General
Schedule rates. No employee appointed under this subsection (other than
the staff director) may be compensated at a rate to exceed the maximum
rate applicable to level GS-15 of the General Schedule.
(c) Detailed Personnel.--Upon request of the chairman of the
Commission, the head of any department or agency of the Federal
Government is authorized to detail, without reimbursement, any
personnel of such department or agency to the Commission to assist the
Commission in carrying out its duties under this section. The detail of
any such personnel may not result in the interruption or loss of civil
service status or privilege of such personnel.
SEC. 608. TERMINATION OF COMMISSION.
The Commission shall terminate upon submission of the final report
required by section 604.
TITLE VII--EXTENSION OF CERTAIN AUTHORITIES
SEC. 701. EXTENSION OF AUTHORITY UNDER PUBLIC LAW 480.
Section 408 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736b) is amended by striking ``1995'' and inserting
``1996''.
SEC. 702. EXTENSION OF FOOD FOR PROGRESS PROGRAM.
Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o), also
known as the Food for Progress Act of 1985, is amended--
(1) in subsection (k), by striking ``1995'' and inserting
``1996''; and
(2) in subsection (l), by striking ``1995'' and inserting
``1996''.
Brief Explanation
H.R. 2854, the ``Agricultural Market Transition Act'', as
amended in Committee, will substantially reduce projected
agriculture spending for farm commodity programs over the
period, fiscal years 1996 through 2002.
It is substantially similar to title I of H.R. 2491, that
was cited as the ``Agricultural Reconciliation Act of 1995''.
This bill is designed to reform U.S. agricultural policy to
perhaps the greatest extent since the 1930's. The bill also
substantially conforms to the reconciliation instructions as
they relate to farm programs as directed to the Committee on
Agriculture in House Concurrent Resolution 67, the Current
Resolution on the Budget--Fiscal Year 1996. The provisions in
the bill recognize the realities of a post-GATT and NAFTA world
trade environment within which U.S. farmers and producers must
compete as we approach the 21st Century.
Purpose and Need
title i--agricultural market transition program
Summary
The reforms accomplished by H.R. 2854 will help transition
U.S. agricultural producers into a new era of a market-oriented
Federal farm policy while simultaneously providing fixed,
declining payments over seven years in order to minimize the
economic distortions resulting from the change away from the
New Deal Era Federal farm programs. These reforms in Federal
farm program policy in this title also have substantial
savings. It is understood that the December 1995 baseline was
used by the Congressional Budget Office in preparing the
estimates for this bill, including the savings that could be
achieved from Federal farm programs over the fiscal years 1996
through 2002; however, that estimate was not available at the
time this report was being prepared and the estimate itself,
while substantial, appears elsewhere in this report as noted in
the table of contents.
Background
Since the last time Federal commodity programs were
addressed in a farm bill (1990) or in a reconciliation bill
(1993), major changes in world trade policy, domestic budget
policy, and commodity producer opinion require a
reconsideration of Federal commodity policy.
For the last ten years, congressional farm policy actions
have been driven by budget reductions. The 1995 debate over
Federal farm programs has re-affirmed the Federal budget as the
driving force for agricultural program policy. Modifications
made to the original farm programs since their inception have
revolved around two main goals: further restricting supply in
order to alleviate the overproduction which the programs
encourage; and decreasing Federal expenditures by limiting the
amount of production which is covered by Federal subsidies.
These two factors have combined in a way which has made current
Federal commodity programs less effective, both as a means of
increasing farm income and as a means to manage production,
with each successive modification. There have been several
recent situations where producers, who received an advance
deficiency payment based on U.S.D.A. estimated low prices, have
had a poor harvest and were required to repay the advance
because the nation-wide effect of the poor harvest was to drive
up the market price of the commodity beyond the point at which
current programs make a payment. This has placed many producers
in a difficult position. Even though prices were high, their
income is down because they have no crop to market and the
government assistance they had previously received must be paid
back.
Government outlays under current programs are the highest
when prices are lowest (and hence when harvests are the best).
This has had the effect of encouraging production based on
potential government benefits, not on market prices. This
incentive, when combined with the government's authority to
idle acreage (which is the only means that current programs
contain for limiting budget outlays) results in a situation in
which producers have an incentive to produce the maximum amount
of commodities while the government restricts the acres that
can be planted, thereby encouraging the over-use of fertilizers
and pesticides in order to get the most production from the
acres the government is allowing the farmer to plant that year.
This environmentally-questionable incentives created by current
programs have also resulted in Congress authorizing greater and
greater bureaucratic controls on producers over the last ten
years in order to minimize environmental damage by requiring
conservation compliance plans, compliance with wetlands
protection provisions, and compliance with many other land-use
statutes. It would be hard to imagine a program which creates
more inconsistent incentives than the existing commodity
programs.
The new majority in the 104th Congress is committed to
balancing the budget. With the passage of the first Budget
Resolution in June, the House Committee on Agriculture, despite
having cut over $50 billion in budget authority in recent
years, was directed in H. Con. Res. 67, the FY 1996 Budget
Resolution to achieve $13.4 billion in savings from Federal
farm programs over the next seven fiscal years. Admittedly,
reducing Federal spending by that amount will impact farmers.
However, some economists predict that a balanced budget will
lead to a 1.5 percent reduction in interest rates. Agriculture
is a major user of credit, with over $140 billion borrowed in
short and long term debt, and would benefit from such a result.
If interest rates decline by 1.5 percent, a balanced budget
could lead to an interest rate savings for U.S. agricultural
producers exceeding $15 billion over the next 7 years.
Following 19 hearings on Federal farm program policy by the
Subcommittee on General Farm Commodities and the full Committee
on Agriculture, the call from throughout the United States was
clear: agricultural producers wanted more planting flexibility,
more certainty with respect to Federal assistance, and less
Federal regulatory burden. The combination of these factors led
to the following conclusions: (1) the U.S. production
agriculture industry needed to become more market-oriented,
both domestically and internationally; (2) the industry could
not become more market-oriented with a continued Federal
involvement that simply extended the current supply-management
policies of the past; and (3) the required budget cuts would
not provide adequate funding levels to allow the existing
Federal programs to function properly in a post-GATT and NAFTA
world-oriented market.
Rationale
Analyzing the above-mentioned conclusions in conjunction
with a review of the current Federal commodity price support
and production adjustment programs resulted in several
observations about agricultural policy.
First, current Federal farm programs are based on the 60
year old New Deal principle of utilizing supply management in
order to raise commodity prices and farm income. When the
Federal farm programs were first created, the government relied
on a system of quotas and allotments to control supply.
However, over the last 20 years the primary justification for
the programs has been that producers receive Federal assistance
in return for setting aside (idling). That assistance was
largely in the form of deficiency payments to compensate
producers for market prices or loan levels that fell below a
Congressionally mandated target price for their production.
Additionally, when Federal commodity programs were set up,
world markets were not a major factor in determining
agricultural policy. This approach, while perhaps appropriate
in the 1930's, ignores the realities of a post-GATT and NAFTA
world.
Second, current programs no longer achieve their original
goals and have collapsed as an effective way to deliver
assistance to producers. Worldwide agricultural competition
usurps foreign markets when the United States reduces
production. With respect to wheat, for example, world demand,
when combined with the United States' supply control approach
of idling acreage (including acreage idled under the
Conservation Reserve Program), has tightened U.S. supplies so
much that there have been no set-asides for five years and
there are not expected to be any in the foreseeable future,
which eliminates the supply management policy justification for
the present policy.
Third, preserving the current Federal farm program
structure with Budget Committee instructions that require
substantial spending cuts will leave producers with an
ineffective and counter-productive agricultural policy. The
resulting system would be an emasculated remnant of an out-of-
date 1930's-era program which no longer serves the people it
was originally intended to benefit. While further modifications
of current Federal commodity programs may accomplish required
budget savings, ten years of budget cuts has changed the
fundamental nature of farm programs to the extent they have
inhibited farm production and producer earning potential.
Good policy for the future
Retaining the present policy would be a mistake when other
methods can achieve the goals of providing U.S. producers with
increased planting flexibility and less regulatory burden while
at the same time allowing for greater earnings from the
marketplace and reducing the budgetary exposure to the Federal
Government.
The changes in Federal agricultural policy reflected in
H.R. 2854 are good policy for the future of production
agriculture in the United States. The most severe critics of
current farm programs, including the New York Times, the
Washington Post, the Economist, and a host of regional
newspapers, have hailed the concept incorporated in this bill
as the most significant reform in agricultural policy since the
New Deal in the 1930's. Congressional critics that have urged
reform of the farm programs have also indicated that the
approach in this bill embodies the type of reform necessary to
transition agriculture into a market-oriented industry. Nearly
every agricultural economist who has commented on the substance
of what this bill does has supported its concept of structure,
its probable effect on producers, and the agricultural sector.
Commodity program reforms
Title I of this bill replaces the commodity price support
and production adjustment programs of the 1970's through 1990's
with a seven-year production flexibility contract payment for
eligible owners and operators and a nonrecourse marketing
assistance loan program for eligible producers. Contract
participants will receive seven annual market transition
payments in exchange for maintaining compliance with their
respective conservation plans and applicable wetlands
protection provisions. Producers utilizing the marketing
assistance loan will get the benefit of a nonrecourse loan at
harvest time so that they will not have to sell commodities at
a time when market prices are historically low in order to
maintain a positive cash flow. Additionally, contract payments
are limited to $40,000 limitation under the three-entity rule
as contained in amended provisions of section 1001 through
1001C of the Food Security Act of 1985. In addition a $75,000
limitation is provided for marketing loan gains and loan
deficiency payments using the standards of the three entity
rule. The Secretary is also directed to implement adequate
safeguards to protect the interests of operators who are
tenants and sharecroppers.
From a GATT perspective, the termination of the commodity
price support programs will make U.S. commodities immediately
more competitive on the world market by removing the distorting
effect that current programs have maintained. This is
significant because, at the current time, world commodity
supplies are relatively tight and estimates indicate that, at
best, this situation will remain for quite some time.
With respect to domestic farm policy, H.R. 2854
accomplishes several goals. First, it accomplishes a large
amount of deregulation by freeing farmers up to farm for the
market and not the government program. By removing government
production controls on land use, the bill effectively
eliminates the number one complaint of producers about the
programs: bureaucratic red tape and government interference.
Complaints about endless waits at the county office should end.
Hassles over field sizes and whether the right crop was planted
to the correct amount of acres should be a thing of the past.
People concerned about the environment will be pleased that the
government no longer forces the planting of surplus crops and
monoculture agriculture. Producers who want to introduce a
rotation on their farm for agronomic reasons should be free to
do so within the restrictions in current programs.
Secondly, H.R. 2854 provides U.S. producers with a
guaranteed payment for the next seven years, because it
establishes a contract between the Federal government and the
producer. When compared to the alternative of further modifying
existing programs, it results in the optimum producer net
income over the next seven years and protects the producer from
further budget cuts should there be further budget
reconciliation bills in the future. The guarantee of a fixed
(albeit declining) payment for seven years will provide the
predictability that producers have wanted and will provide
certainty to lenders as a basis for extending credit to
production agriculture. The current situation in which prices
are above the target price as a result of poor crops (producers
do not get a payment or are forced to repay advanced payments),
and therefore have less income should be corrected under H.R.
2854. Without a crop to market, producers cannot benefit from
the higher prices, and instead of getting help when they need
it most, the current system cuts off their deficiency payments
and demands that they repay advance deficiency payments.
This bill insures that whatever government financial
assistance is available will be delivered, regardless of the
circumstances, because the producer signs a contract with the
Federal Government for the next seven years. Just as producers
will need to look to the market for planting and marketing
signals, H.R. 2854 will require producers to manage their
finances to compensate for price swings. It may be true that
when prices are high, producers will receive a full market
transition payment under this legislation, but it is equally
true that if prices decline, farmers will receive no more than
the fixed market transition payment. That means the individual
producer must manage all income, both market and government, to
account for weather and price fluctuations.
Third, this measure also encourages market orientation.
Producers can plant or idle all their acres at their
discretion, with a significant reduction in the restrictions on
what can be planted. Producers will have to make commodity
planting decisions in response to commodity markets instead of
decisions based on deficiency payment rates and crop acreage
bases. Decoupling Federal payments from production (a process
which began in 1985 when payment yields were frozen) would end
any pressure from the government in choosing crops to plant.
Under H.R. 2854, all production incentives should come from the
marketplace and not government programs. Additionally, as long
as producers maintain compliance with their applicable
conservation plans, they are free to choose to plant no crop at
all, which will benefit soil and water quality in marginal
areas, as well as benefiting wildlife.
Fourth, H.R. 2854 recognizes that the benefits from current
programs have, to some extent, been incorporated into the value
of agricultural land. By abolishing the link between production
and benefits, but doing so in a manner which provides a seven-
year transition period, the economic distortions caused by
existing programs can be removed in a manner that causes the
least amount of disruption and harm to rural America. For that
reason the production flexibility contract payment has been
aptly named as a market transition payment.
Peanuts and sugar
The Committee also commenced hearings and received
testimony from over 100 witnesses in the areas of the United
States where peanuts and sugar beets, sugar cane, and corn are
grown, as well as in Washington, D.C., to discuss reform of the
peanut and sugar programs. The outcomes of these hearings led
the Committee to outline reform criteria with the goal of
revising the current peanut and sugar programs to make them
more market-oriented and operate at no cost to the Federal
Government, while still providing a safety net for producers.
These reforms are contained in sections 106 and 107 of Title I.
Peanuts
According to the United States Department of Agriculture
(USDA), net peanut government program expenditures for fiscal
year 1995 are estimated to be $85.6 million. USDA projects an
annual cost of $76 million per year for fiscal years 1996-2000
if current program provisions were retained. The changes in
section 106 would eliminate the costs of the program through
the elimination of the national poundage quota and
undermarketing provisions which would allow additional peanuts
to receive the quota price support rate. This will allow the
Secretary to set the national poundage quota at a level that
satisfies the estimated domestic consumption and prevent
additional peanuts from entering quota pools at the higher
quota support rate. Additional provisions allow the Secretary
of Agriculture to increase the marketing assessment as needed
to assure that the peanut program is not costly to the
government.
With respect to price support, section 106 would freeze the
support loan rate for quota peanuts at $610 per ton for the
1996 through 2002 crops. This is a reduction from the current
loan rate of $678 per ton, and is approximately commensurate to
a price support level based on current cost of production.
Current law provides that the price support level may only
increase based on cost of production, up to 5% over the support
rate for the preceding year. If the previous years' quota price
support rates were allowed to increase or decrease 5% per year,
today's price support level would be approximately $608.64.
Among other changes, section 106 would also instruct the
Secretary to decrease the quota support rate by 5 percent to
any producer who receives an offer at quota price or higher
from a commercial buyer and the government but opts to sell to
the government. This provision is intended to provide an
incentive to producers to sell peanuts to the market rather
than to the government.
Section 106 would also prioritize the method of covering
losses in area quota pools. Losses would first be covered by
offsetting proceeds due any producer with losses incurred by
the transfer of additional peanuts to a quota loan pool under
section 358-1(b)(8) of the Agricultural Adjustment Act of 1938,
then by offsetting individual producer gains and losses, then
by buy-back gains within an area, then by use of the marketing
assessment attributable to the producer, then with area cross
compliance provisions (including buy-back gains in other
areas). The Secretary of Agriculture would also be given the
authority to increase the marketing assessment on growers in a
pool to cover any further losses, with a provision directing
any unused assessment funds to be returned to the Treasury.
With respect to the sale, lease, and transfer of quota,
several changes are made. Currently, quota can only be sold or
leased to another owner or operator in the fall or after the
normal planting season within the same county. Section 106
would allow full sale, lease or transfer of quota to any county
within a State either in the spring or fall, while maintaining
the fall transfer required of at least 90 percent of a farm's
quota having been planted during the previous growing season. A
temporary quota allocation, equal to a producer's seed use, is
also provided, while seed use is no longer part of the
Secretary's national poundage quota estimate. Disaster transfer
provisions are modified to limit disaster transfers to no more
than 25% of a farm's quota, at 70% of the quota support rate.
The Committee also proposes a review of the feasibility of
quota transfer of across state lines under the purview of the
Commission on 21st Century Production Agriculture.
In addition, the Committee's recommendation would tighten
the eligibility of those who own quota by mandating that,
beginning with the 1997 marketing year, public entities and
non-resident quota holders who are not producers are no longer
eligible to own quota. Any quota held by such entities at the
end of the 1996 marketing year would be reallocated within each
State.
Sugar
Modifications to the sugar program in section 107 would
increase revenue to the Treasury through an increased marketing
assessment from 1.1% in 1996 to 1.375% in 1997 through 2003 of
the loan rate for raw cane sugar and from 1.1794% to 1.47425%
of the loan rate for beet sugar. Provisions in current law
mandating that the program operate at no net cost to the
Treasury would be maintained, and a forfeiture penalty of
1 cents/lb would be imposed on any processor who forfeits sugar
to the government.
Sugar beet and sugar cane loan rates are frozen at
18 cents/lb for raw cane sugar and 22.9 cents/lb for refined
beet sugar. However, loan rates are required to be reduced if
the Secretary determines that negotiated reductions in export
subsidies and domestic subsidies provided for sugar of the
European Union and other major sugar growing countries in the
aggregate exceed the commitments made as part of the Uruguay
Round Agreement.
With respect to marketing allotments, the Committee's
recommendation would allow full and unrestrained production of
sugar in the United States through elimination of marketing
allotments.
The Committee also proposes a consistent increase of
imports through the establishment of a loan modification
threshold which is triggered when tariff rate quota imports
exceed 1,500,000 short tons raw value. Under this provision,
recourse loans to processors are made available up to the
threshold level and would be converted into nonrecourse loans
if imports rise above the threshold level.
Title II--Dairy
Summary
Subtitle II reforms Federal dairy policy in three stages.
First, there are legislative reforms which are implemented
immediately: (1) the dairy price support program is altered by
removing butter and nonfat dry milk from support; (2) the
budget assessment on producers is eliminated, (3) a recourse
loan program for processors of cheddar cheese, butter, and
nonfat dry milk is established; (4) the Dairy Export Incentive
Program (DEIP) is reauthorized through September 30, 2002, and
fully funded to the limits permitted by the Uruguay Round of
the GATT; and (5) the producer assessment for promotion under
the Dairy Production Stabilization Act of 1983 is extended to
imported products.
Secondly, administrative reform of the Federal milk
marketing order program will occur at the end of two years. In
the upcoming two years, the Secretary will: (1) consolidate
Federal orders and other milk producing areas in the
continental 48 states into not less than 8 nor more than 13
orders; (2) implement uniform multiple component pricing for
milk used to produce manufactured dairy products; and (3)
establish class prices for milk used to produce cheese nonfat
dry milk, and butter based on national product prices less a
make allowance (which shall not vary regionally except to
reflect variances in transportation and reasonable operating
costs, if any, of efficient processing plants in different
geographic areas).
Thirdly, there are temporary changes in Federal dairy
programs that will occur during the two-year transition period
between the date of enactment of the Act and the implementation
date of the administrative reforms: (1) a maximum manufacturing
allowance which a state may provide for milk used to
manufacture certain dairy products during that two-year period
is set; (2) a floor is placed on the minimum price for Class I
(fluid) milk and a Class I equalization pool is set up to more
equitably share Class I revenues nationally during the two-year
transition period; and (3) a Class IV price is created for milk
used to produce butter, butter oil, nonfat dry milk, and whole
milk, and a Class IV equalization pool is created to equitably
share among all producers 50 percent of any negative difference
between the support price for milk used to produce cheese and
the Class IV price.
The combined impact of these changes saves $454 million, or
approximately 21%, of spending on Federal dairy programs
projected by CBO over the next seven fiscal years.
Background
Since the last time Federal dairy programs were addressed
in a farm bill (1990) or in reconciliation (1993), major
changes in world trade policy, domestic budget policy, and
dairy producer opinion require us to reconsider Federal dairy
policy.
Every Federal dairy program was created subsequent to
Section 22 and premised upon the ability of Section 22 to stop
foreign dairy products at our border. As of July 1, 1995,
Section 22 was limited in its applicability by the
implementation legislation for the Uruguay Round of the GATT.
With the passage of the First Budget Resolution in June,
the House Agriculture Committee was required to achieve $13.4
billion in savings on Federal farm programs over the next seven
fiscal years. As a commodity, dairy needed to come up with
between $400 and $500 million of that amount.
Following ten hearings on dairy issues by the Subcommittee
on Livestock, Dairy and Poultry, including field hearings in
California, Florida, Minnesota, New York, and Wisconsin, the
mandate from dairy farmers to end budget reconciliation
assessments immediately became overwhelming. The elimination of
assessments would decrease funding available for Federal dairy
programs by approximately $250 million annually.
The combination of these events led to the following
conclusions: (1) the U.S. dairy industry needed to become more
market-oriented, domestically and internationally; (2) the
industry could not become more market-oriented without a level
playing field at home; (3) the industry needed tools to become,
and remain, competitive in the world market; and (4) there was
inadequate funding to retain and maintain existing Federal
dairy programs.
A review of Federal dairy programs (i.e., dairy price
supports, Federal milk marketing orders, and the Dairy Export
Incentive Program (DEIP)) produce the following conclusions.
First, since the support price was decreased to $10.10/cwt
in the 1990 Farm Bill, the dairy price support program has been
largely inactive. For example, in the last 12 months, the
Commodity Credit Corporation (CCC) has not purchased any cheese
and only purchased 26 million pounds of butter and 27 million
pounds of nonfat dry milk. By contrast, a decade ago the CCC
purchased 293 million pounds of butter, 591 million pounds of
cheese, and 827 million pounds of nonfat dry milk during the
same 12 months period. At the end of 1995, we had no butter, no
cheese, and only 14 million pounds of nonfat dry milk in
government storage.
Secondly, existing Federal milk marketing orders act as an
impediment to a level playing field domestically. The U.S.
dairy industry cannot hope to be competitive in the world
market if our domestic marketing system produces competitive
advantages and disadvantages at home unrelated to market
indicators and other economic conditions. The Congressional
Budget Office projects that Class I differentials, fixed by
statute in 1985, will add an average of $134 million annually
to the cost of the dairy price support program in the next five
fiscal years by creating artificial incentives to produce milk
in regions with sufficient Class I supplies of milk. Studies of
Federal milk marketing orders by the General Accounting Office
in 1988 and 1995 have produced similar conclusions.
Thirdly, the inactivity of the dairy price support program
and the low levels of government-stored dairy products are
directly related to the success of the DEIP program. Dairy
economists across the nation uniformly agree that the DEIP
program has added between $.50/cwt to $1.00/cwt to producer
prices in each of the last five years.
Rationale
With these conclusions in mind, the following changes in
Federal dairy policy are accomplished in this legislation which
have a cumulative reconciliation savings of $454 million
estimated by the Congressional Budget Office.
Subtitle A of Title II extends the price support program of
milk by authorizing the Secretary to continue removing excess
cheddar cheese from the commercial market through December 31,
2002 in section 201. However, the authority of the Secretary to
support the price of milk through purchases of excess butter
and nonfat dry milk is eliminated.
From a GATT perspective, removing butter and nonfat dry
milk from support will make those commodities immediately
competitive on the world market. This is significant because,
by the end of the decade, 17 percent of the world market for
nonfat dry milk and 31 percent of the world market for butter
will have opened up due to reductions in subsidized exports
under the Uruguay Round.
Removing butter and nonfat dry milk from support and
reducing the support price for milk used to produce cheese from
its current level of $10.35/hundredweight of $9.85/
hundredweight in the year 2001 permits the immediate
elimination of the budget assessment on producers (currently at
10 cents/hundredweight).
The recourse loan program created under section 202 will
allow processors of cheddar cheese, butter and nonfat dry milk
to place their product under a recourse loan with the CCC at 90
percent of the average market value for that product during the
previous three months. Loans will be at CCC interest rates and
will come due at the end of the fiscal year (September 30), but
can be extended into the upcoming fiscal year.
Section 203 further enables the United States to become,
and remain, a player in the world dairy market of the 21st
Century. The DEIP program is reauthorized through September 30,
2002 and fully funded to the limits permitted under the Uruguay
Round in each fiscal year.
Section 204 also assists the industry in becoming more
market-oriented by requiring that at least 10 percent of the
budget of the National Dairy Promotion and Research Board be
allocated to international market development annually, and by
extending the producer promotion assessment under the Dairy
Production Stabilization Act of 1983 to imported dairy
products, thereby enhancing available funding for the Board's
promotion activities.
Subtitle B of Title II requires the Secretary of
Agriculture to implement significant reforms in Federal milk
marketing orders within two years including the consolidation
of existing Federal orders and areas currently outside of
Federal orders into not less than 8 nor more than 13 orders
(with California as a separate order within that system and
with each order authorized to blend order proceeds as necessary
to address issues unique to that order such as pre-existing
state quota programs), uniform component pricing for milk used
to produce manufactured dairy products, and class prices for
milk used to produce cheese, nonfat dry milk, and butter based
on national product prices less a make allowance (which shall
not vary regionally except to reflect variances in
transportation and reasonable operating costs, if any, of
efficient processing plants in difference geographic areas).
Expedited comprehensive administrative reform under
sections 221 and 222 will assure a level playing field
domestically among producers at the end of two years and will
further insure that the dairy industry will respond to market
signals rather than decade-old fixed differentials which
provide artificial incentives to produce milk in some areas of
the country.
In the interim two years, sections 206, 207 and 208 will
also provide greater equity between producers and processors in
different regions of the country by setting a reasonable
maximum state manufacturing allowance, creating a minimum price
floor for Class I milk and sharing $.80/hundredweight of Class
I proceeds nationally, and establishing a Class IV price for
butter, butter oil, nonfat dry milk, and whole dry milk and
sharing among all producers 50 percent of any negative
difference between the support price for milk used to produce
cheese and that Class IV price.
During this time, net income to producers in all regions of
the country is projected to increase as a result of the
foregoing changes in Federal dairy policy, thereby
accomplishing all three goals of a modern Federal dairy
policy--international competitiveness, a level domestic playing
field, and enhanced producer income.
Title III--Conservation
The changes in title III are designed to improve and add to
the existing conservation programs that have been successful in
the past, while addressing pressing problems facing
agricultural producers today.
Title III creates a new program, the Livestock
Environmental Assistance Program (LEAP). LEAP has been added to
title XII of the Food Security Act of 1985, to assist farmers,
ranchers, dairy and livestock producers in dealing with the
many environmental challenges with respect to soil and water
quality that they face, largely because of other Federal
mandates such as the Clean Water Act. The program is
established to help eligible producers improve environmental
problems such as water quality by providing technical and cost-
share assistance in implementing structural and management
practices to protect water, soil and related resources from the
degradation associated with livestock production. The program
is authorized at $100 million annually through 2002.
Title III modifies the Wetlands Reserve Program (WRP) by
replacing permanent easement authority with 15-year easement
authority. This change saves $384 million by lowering the costs
of acquiring easements, yet it will not affect the future
success of this program because of the overall changes in both
the Federal involvement in agriculture and the public attitude
toward wetlands today. The previous incentive to get drain or
fill of wetlands, both by the Army Corps of Engineers and the
U.S. Department of Agriculture, is simply not present today.
Also, the entire country now realizes that wetlands serve a
vital purpose in supporting wildlife and improving water
quality. The WRP will continue to allow USDA to provide
incentives to help people return acreage into wetlands.
Title III also modifies the Conservation Reserve Program
(CRP) by permanently capping overall enrollment at 36.4 million
acres. As of the date of enactment, the Committee will ratify
four years of Appropriations Committee policy by capping the
CRP at the current acreage of 36.4 million acres.
The Committee strongly supports maintaining a strong and
viable CRP that maximizes, to the extent practicable, the
ability of producers to utilize the program to protect
environmentally sensitive lands, conserve natural resources,
and make rational farm or land management decisions.
title iv--agricultural promotion and export programs
Marketing Promotion Programs
The Agricultural Trade Act of 1978 provides that a minimum
of $200 million for fiscal years 1991 through 1993 and $110
million for fiscal years 1994 through 1997 of CCC funds or
commodities be made available to carry out the Marketing
Promotion Programs. Section 401 of this bill provides that not
more than $100 million of CCC funds or commodities could be
made available to carry out the Marketing Promotion Programs
for fiscal years 1996 through 2002.
Export Enhancement Program
Section 301 of the Agricultural Trade Act of 1978 provides
that a minimum of $500 million in Commodity Credit Corporation
funds or commodities be made available each of fiscal years
1991 through 2001 to carry out the Export Enhancement Program.
Section 402 of this bill provides that the Commodity Credit
Corporation shall provide not more than $350 million in fiscal
years 1996 and 1997, $500 million in fiscal year 1998, $550
million in fiscal year 1999, $579 million in fiscal year 2000,
and $478 million in fiscal years 2001 and 2002 to carry out the
Export Enhancement Program.
Title V--Miscellaneous
The Federal Crop Insurance reform Act of 1994 (Reform Act),
contained in Title I of P.L. 103-354, made significant changes
in the multi-peril crop insurance (MPCI) program as well as
ending, for all practical purposes, ad hoc Federal assistance
to farmers for crop failures. Two controversial and complex
provisions of the new law have caused consternation and
irritation among agricultural producers, and that, in turn, has
made MPCI a less attractive product for many farmers.
A principal provisions of the Reform Act required any
agricultural producer who is a farm commodity program or
Conservation Reserve Program participant or who is receiving a
loan or loan guarantee through the U.S. Department of
Agriculture (USDA) to purchase a MPCI policy to insure against
at least a catastrophic crop loss (CAT), i.e., for a crop loss
of 50 percent loss in yield, on an individual or area yield
basis. To obtain CAT coverage, producers pay an administrative
fee for each crop produced in a county. Because of USDA's
implementation of the Reform Act, each landlord who receives a
program payment (shared tenancy) is required to pay the $50
fee. This link between farm program participation and crop
insurance caused a great deal of confusion and irritation among
producers because of the inequities in USDA implementation. For
example, an owner-operator growing only wheat on a section of
land in a single county could purchase CAT coverage for a
single $50 fee, while multiple owners with a tenant farming in
more than one county were required to pay multiple fees.
One particularly egregious case that came to light involved
nine different landlords and their tenants who farmed three
different crops in three counties. Each of the owners was
required to pay three fees for each crop in each of the three
counties, resulting a substantial amount of dollars in fees for
insurance on a minimal number of acres.
A second provision that caused undue confusion involved the
delivery system implemented by the Consolidated Farm Service
Agency (CFSA) within USDA. Because each agricultural producer
could be required to purchase at least the CAT insurance
policy, Congress allowed CFSA local offices to sell CAT
coverage in those areas of the country where private insurance
agents were not available or not readily available. As
implemented, however, CFSA became an instant competitor with
insurance agents around the country. Because the new MPCI
program was late in clearing Congress and even later in getting
into the field, local CFSA personnel obviously were confused
during the initial start-up of the new program. This confusion
was spread throughout farm country during this past spring and
harmed a program that already was disliked and unused by a
majority of producers in almost every part of the country.
It also has come to the Committee's attention that the
assistant administrator for risk management who is the FCIC
manager and responsible for its day-to-day operations also has
become totally absorbed by CFSA administrators to the extent
that risk management and crop insurance are being run as if
they were just another farm program, in other words, not in an
actuarially-sound manner. Under any policy scenario, Federal
farm price and income support programs are in transition,
making it vitally important that our agricultural producers
have sound risk management programs they can use the price and
yield protection and marketing assistance without undue USDA
intervention. Creating an independent agency and then subsuming
the congressional policy objective of providing new risk
management techniques, including MPCI offered generally through
a private delivery system, within the scope of traditional, 50-
year old New Deal policies does not make sense. Congress
clearly set new policy and structural changes at the new CFSA,
and thus far, CFSA has ignored many of those policy objectives.
Amendments included in title V of H.R. 2854 change both the
mandatory link of MPCI and USDA farm and credit programs so
that producers not wanting to purchase CAT coverage could do so
by waiving the right to any possible crop disaster assistance
for the crop year in which CAT coverage had been offered by the
FCIC but not purchased by the producer. This saves $180 million
over the seven-year period.
Additional amendments provide for a totally private
delivery system in areas determined by the secretary to be
adequately served by private insurance providers.
Other amendments included in the budgetary provisions
establish a fully independent Office of Risk Management with an
administrator who will manage the FCIC as well as assume other
risk management responsibilities enumerated by the amendments.
The Secretary of Agriculture is directed to (shall) appoint the
Administrator of the Office of Risk Management.
Within the next year, the Secretary is directed to
establish a business interruption insurance program that will
allow producers to utilize a revenue-insurance based approach
to risk management in lieu of, or in addition to, crop
insurance.
Title V would also give the Secretary discretion to
continue to operate the Options Pilot Program, which was
established by the Food, Agriculture, Conservation, and Trade
Act of 1990 (the 1990 Act). By giving the Secretary authority
to modify the program in order to reflect changes to the
commodity programs made by this bill, USDA will continue to
have the ability to offer farmers, on a pilot basis, the use of
futures markets an another tool in managing risk.
Finally, Title V amends section 2509 of the 1900 Act to fix
a problem with the Agricultural Quarantine Inspection (AQI)
user fee account. The 1990 Act authorized user fees for AQI
inspection activities, including inspections of aircraft,
vessels, trucks, railcars, and airline passenger baggage
arriving in the U.S. from foreign countries. When this
authority was originally proposed by USDA's Animal and Plant
Health Inspection Service (APHIS), the method of collection,
which was specified in the draft legislation, would have
allowed airlines to collect the fees through the passenger
ticketing process, with the fees being deposited into a
dedicated U.S. Treasury account from which USDA would be
reimbursed on a quarterly basis. This method would have been
consistent with the collection processes of the U.S. Customs
Service and the Immigration and Naturalization Service and
would not have subjected the fees to the appropriation process.
However, as passed, expenditure of the fees is subject to the
appropriation process. This was done apparently because the
Congressional Budget Office would not credit budget savings
that are achieved through the assessment of user fees are
subject to appropriation, so that the Agriculture Committee
could ensure that the savings would be reflected in their
budget process.
Unfortunately, this method of collection and disbursement
has created some problems. The process of requesting quarterly
disbursements from the treasury is cumbersome, and the request
for disbursement does not guarantee that the funds will be
provided. An additional problem is the fact that the AQI
program remains subject to staff-year limitations, even though
passengers and airlines are now paying for the service. Staff
year ceilings are set by the Office of Management and Budget,
and because this process is separate from the budget process,
the staff ceilings are not always consistent with the budget.
This means that, in any given year, there may be adequate
funding but inadequate staff levels, or adequate staff levels
but inadequate funding.
The amendment to the AQI program in title V would correct
these problems. First through fiscal year 2002, APHIS would be
able to access fees collected beyond the appropriated amount
after the yearly appropriation bills are passed. Second,
beginning in fiscal year 2003, the AQI user fee account truly
becomes a user fee account, not subject to any appropriation.
Finally, the staff-year limitation problem would also be
remedied by exempting APHIS staff years used for AQI activities
from the Federal Workforce Restructuring Act of 1994. These
changes will ensure that the AQI program will function as a
user fee program is supposed to function, and that APHIS will
have the ability to have the necessary number of employees
engaged in AQI activities.
title vi--commission on 21st century production agriculture
The changes in Federal farm policy made in the preceding
subtitles are a dramatic departure from current farm commodity
programs. Many of those involved in production agriculture from
the farmer to the economist, to rural lenders, and especially
to those with an economic interest in current programs, are
concerned that a change of the magnitude described in the
preceding titles coupled with less Federal subsidy dollars will
adversely affect not only the U.S. agricultural industry, but
also rural America. While the dramatic changes proposed for the
Federal Government's involvement in agriculture as prescribed
by H.R. 2854, are in fact a recognition of the changing rural
and urban landscape of America, an examination of the changes
wrought by these policy changes and what farm policies are
needed for the 21st Century farm sector is in order.
When the present Federal programs for agriculture were
adopted, the nation was in the darkest depths of the Great
Depression of the 1930's. Not everyone believed the Federal
Government should get involved in agriculture. Indeed, the
original Agricultural Adjustment Act of 1933 was declared
unconstitutional by the Supreme Court. But a consensus was
reached and the United States Government embarked upon a course
of substantial involvement in agriculture. The present programs
were claimed to be created out of political and economic
necessity, because the nation was largely rural and the
majority of the population lived on farms or rural areas.
In the intervening 60 years, the United States has been
transformed into a largely urban society with less than 2
million citizens on farms. There is evidence that Federal farm
programs may have eased the transition from a rural society to
an urban society. While the U.S. is now largely an urban
population, nearly 20 percent of the Gross National Product can
be attributed to agriculture if the entire sector is
considered, i.e., from the farm to the manufacturing,
distribution, and input infrastructure involved in modern
agriculture's miracle of productivity.
The United States is blessed with a very valuable asset:
fertile land, with adequate moisture, growing season, and
dedicated users of such land that make it the envy of the
world. The challenge for the United States as we enter the 21st
Century is how do we wisely use our very valuable natural
resource: agriculture. The present system of agricultural price
supports and supply control programs have come under increasing
attack by economists, environmentalists, and farmers as being
inadequate for modern agriculture. The Agricultural Market
Transition Act is meant to be a transition policy for U.S.
agriculture. but a transition to what?
Over the 7 years of the transition contract, the Congress
hopes a national debate can take place as to what should be the
Federal involvement in production agriculture in the 21st
Century. Should it be a system of direct price supports found
in the present system? Should it be some type of income support
mechanism that provides some means of income or revenue
protection given the nature of production agriculture, which is
subject to the vagaries of weather, pestilence, and geo-
political market disruptions. Should the Federal involvement in
production agriculture be limited to only foreign market
development and research that enhances U.S. agriculture's
relative competitive position? Or can many of the goals
necessary to have a healthy food and fiber sector be
accomplished through Federal tax policy?
To stimulate substantial debate and provide answers to
these questions, title VI establishes a Commission on 21st
Century Production Agriculture, which is designed to give
future Congresses and Presidents and others information and
feedback to gauge the effectiveness of the changes made by this
legislation, and also to recommend further appropriate Federal
policy and involvement in production agriculture. The
Commission is to conduct a ``look-back'' (how successful is
Agricultural Market Transition Act) and a ``look-to-the-
future'' that recommends new or different policies for 21st
Century agriculture.
This commission, comprised of 11 members to be appointed by
the President and the Chairmen of the House and Senate
Agriculture Committees in consultation with their Ranking
Minority Members, will conduct a comprehensive review of
changes in the condition of the agricultural sector, taking
into account land values, regulatory and taxation burdens,
export markets, and progress under international trade
agreements. The Commission will also make an assessment of
changes in production agriculture, identify the appropriate
future relationship between the Federal Government and
production agriculture after 2002, and assess the future
personnel and administrative needs of USDA. Not later than June
1, 1998, the Commission is to report its interim findings with
respect to its comprehensive review of the condition of the
agricultural sector. Not later than January 1, 2001, the
commission shall submit its final report concerning its
assessments and determinations regarding the future role of the
Federal Government in farm policy.
title vii--extension of certain authorities
Provisions of the Agricultural Trade Development and
Assistance Act of 1954, incorporating the Food for Peace
program, and the Food for Progress Act of 1985, that authorize
the U.S. Department of Agriculture (USDA) and the Agency for
International Development (AID) to enter into new agreements
with other governments, private voluntary organizations, and
international organizations to finance and provide food
assistance expired in 1995. Title VII of the bill extends this
authority through 1996.
Both USDA and AID will have the authority through 1996 to
enter into agreements under the Food for Peace and Food for
Progress programs to provide assistance under Title I of the
Food for Peace program, Title II (non-emergency) of the Food
for Peace program, operational support for private voluntary
organizations and cooperatives, Title III of the Food for Peace
program, the Farmer-to-Farmer program, and the Food for
Progress program. Authority to enter into agreements under
Title II (emergency) of the Food for Peace program was not
affected, since the Act includes adequate authority to provide
emergency assistance through the Food for Peace program.
Section-by-Section Analysis
Section 1--Short title; table of contents
The ``AGRICULTURAL MARKET TRANSITION ACT''
title 1--agricultural market transition program
Section 101. Purpose
The main purpose of this title is to authorize the use or
binding production flexibility contracts between the United
States and agricultural producers to support farming certainty
and flexibility while ensuring continued compliance with farm
conservation compliance plans and wetland protection
requirements.
Section 102. Definitions
This section contains definitions of terms used throughout
Title I. ``Contract commodity'' includes wheat, corn, grain
sorghum, barley, oats, upland cotton, and rice; ``contract
acreage'' means one or more crop acreage bases established
under title V of the Agricultural Act of 1949 that would have
been in effect for the 1996 crop; and ``loan commodity'' means
each contract commodity plus extra long staple cotton and
oilseeds.
Section 103. Production flexibility contracts
Section 103(a), in paragraph (1), authorizes the Secretary
to enter into 7-year production flexibility contracts between
1996 and 2002 with eligible owners and operators on a farm
containing eligible farmland. In exchange for annual payments
under the contract, the owner or operator must agree to comply
with the applicable conservation plan for the farm, the wetland
protection requirements of title XII of the Food Security Act
of 1985, and the planting flexibility requirements of
subsection (j).
Section 103(a), in paragraph (2), describes eligible owners
and operators, that include:
(A) an owner who assumes all risk of producing a
crop;
(B) an owner who shares in the risk of producing a
crop;
(C) an operator with a share-rent lease regardless of
the length of such lease if the owner also enters into
the contract;
(D) an operator with a cash rent lease that expires
on or after September 30, 2002, in which case the
consent of the owner is not required;
(E) an operator with a cash rent lease that expires
before September 30, 2002, and the owner consents to
the contract;
(F) an owner with a cash rent lease, but only if the
operator declines to enter into a contract, in which
case payments under the contract will not begin until
the fiscal year following the year in which the lease
expires; and
(G) an owner or operator described in (A) through (F)
regardless of whether the owner or operator purchased
catastrophic risk protection for a fall-planted 1996
crop under section 508(b) of the Federal Crop Insurance
Act.
Section 103(a), in paragraph (3), instructs the Secretary
to provide adequate safeguards to protect the interests of
operators who are tenants and sharecroppers.
Section 103(b), in paragraph (1), provides that the
deadline for entering into a contract is April 15, 1996, except
that owners and operators on farms which contain acreage
enrolled in the Conservation Reserve Program (``CRP'') may
enter into a contract upon the expiration of the CRP contract.
Section 103(b), in paragraph (2), provides that the
contracts shall begin with the 1996 crop year and extend
through the 2002 crop year.
Section 103(b), in paragraph (3), provides that, at the
time a contract is signed, the Secretary shall estimate the
anticipated payments that will be made under the contract for
at least the first fiscal year.
Section 103(c) describes eligible farmland, which is land
that contains a crop acreage base, at least of portion of which
was enrolled in the acreage reduction programs authorized for a
crop of rice, upland cotton, feed grains, or wheat and which
has served as the basis for deficiency payments in at least one
of the 1991 through 1995 crop years. With respect to contracts
for acreage enrolled in the CRP, such contract acreage must
have crop acreage base attributable to it.
Section 103(d) establishes the payment dates under the
contracts as September 30 of each of the fiscal years 1996
through 2002, and provides that an owner or operator may opt to
receive half of each annual payment on December 15 of each
fiscal year 1997-2002. For the 1996 fiscal year, an owner or
operator may elect to receive half of the payment not later
than June 15.
Section 103(e), in paragraph (1), establishes spending
limits of:
(A) $5,570,000,000 for FY 1996;
(B) $5,385,000,000 for FY 1997;
(C) $5,800,000,000 for FY 1998;
(D) $5,603,000,000 for FY 1999;
(E) $5,130,000,000 for FY 2000;
(F) $4,130,000,000 for FY 2001; and
(G) $4,008,000,000 for FY 2002.
Section 103(e), in paragraph (2), allocates the fiscal year
amounts among the contract commodities as follows:
(A) Wheat, 26.26 percent;
(B) corn, 46.22 percent;
(C) grain sorghum, 5.11 percent;
(D) barley, 2.16 percent;
(E) oats, 0.15 percent;
(F) upland cotton, 11.63 percent; and
(G) rice, 8.47 percent.
Section 103(e), in paragraph (3), directs the Secretary to
adjust the amounts allocated in paragraph (2) for a particular
fiscal year by:
(A) adding producer repayments of deficiency payments
received during that fiscal year under section
114(a)(2) of the Agricultural Act of 1949 (as then in
effect);
(B) adding contract payments withheld at the request
of producers, during the preceding fiscal year as an
offset against repayments of deficiency payments
otherwise required under section 114(a)(2) of the
Agricultural Act of 1949 (as then in effect);
(C) adding contract payments which are refunded
during the preceding fiscal year under section 103(h)
(of this Act) for the commodity; and
(D) subtract an amount equal to the amount, if any,
necessary during that fiscal year to satisfy payment
requirements for the commodity under section 103B,
105B, or 107B of the Agricultural Act of 1949 (as then
in effect prior to the amendment made by section
109(b)(2)) for the 1994 and 1995 crop years.
Section 103(e), in paragraph (4), provides for an
additional adjustment to the amounts allocated for each
contract commodity in order to cover any final payments
required under sections 101B of the Agricultural Act of 1949
(as then in effect) for the 1994 and 1995 crop years. As soon
as the Secretary determines these amounts, it will be deducted
evenly from the amounts allocated for each contract commodity
over the remaining fiscal year allocations.
Section 103(f) provides the method for determining payments
under a particular contract:
Paragraph (1) establishes the process for determining
the payment quantity of a contract commodity, which is
the product of 85 percent of the contract acreage and
the farm program payment yield for the commodity.
Paragraph (2) provides that the payment quantity of
each contract commodity covered by all contracts for
each fiscal year shall equal the sum of all the payment
quantities under paragraph (1).
Paragraph (3) provides that the annual payment rate
for a contract commodity shall be the amount made
available under 103(e) for the commodity divided by the
total payment quantity under paragraph (2).
Paragraph (4) provides that the payment amount to be
paid under a contract on a commodity shall be equal to
the product of the payment quantity determined under
paragraph (1) and the payment rate determined under
paragraph (3).
Paragraph (5) provides that the provisions of section
8(g) of the Soil Conservation and Domestic Allotment
Act relating to assignment of payments shall apply to
contract payments under the subsection, and requires
that the owner, operator, or assignee notify the
Secretary of such assignment.
Paragraph (6) directs the Secretary to allow for the
sharing of payments among owners and operators in a
fair and equitable manner.
Section 103(g) provides that the total amount of payments
under a contract during any fiscal year may not exceed the
payment limitation established under sections 1001 through
1001C of the Food Security Act of 1985.
Section 103(h), in paragraph (1), authorizes the Secretary
to terminate a contract if an owner or operator violates the
farm's conservation compliance plan, wetland protection
requirements, or planting flexibility provisions. Upon
termination, the owner or operator forfeits future payments and
must refund payment with interest as determined by the
Secretary received on each farm in which the owner or operator
contracted for payments during the period of the violation.
Section 103(h), in paragraph (2), provides that, if the
Secretary determines that the nature of the violation does not
warrant termination of the contract as provided in paragraph
(1), the Secretary may--
(A) require a partial refund with interest for the
period of the violation; or
(B) adjust future contract payments proportionate to
the severity of the violation.
Section 103(h), in paragraph (3), prohibits the Secretary
from requiring repayments from an owner or operator if farmland
which is subject to the contract is foreclosed upon and the
Secretary determines that forgiving such repayment is
appropriate in order to provide fair and equitable treatment.
This authority does not void the responsibilities of such owner
or operator if the owner or operator continues or resumes
control or operation of the property subject to the contract,
and in effect resumes contract over the contract.
Section 103(h), in paragraph (4), provides that a
determination by the Secretary under this subsection shall be
considered as an adverse decision for purposes of
administrative review.
Section 103(i), in paragraph (1), provides for rules for
transfers of land subject to a contract. Upon a transfer, a
contract is automatically terminated unless the transferee
agrees to assume all obligations under the contract. A
transferee may request modifications to a contract before
assuming it, if the Secretary approves and the modifications
are consistent with the objectives of this section as
determined by the Secretary.
Section 103(i), in paragraph (2), authorizes the Secretary
to issue regulations regarding contract payments in instances
in which an owner or operator dies, becomes incompetent, or is
otherwise unable to receive a contract payment.
Section 103(j) establishes planting flexibility provisions
on land subject to a contract.
Paragraph (1) provides that, subject to the limitations in
paragraph (2), any commodity or crop may be planted on contract
acreage.
Paragraph (2), in subparagraph (A), provides that, with
respect to contract acreage beyond 15 percent, haying and
grazing shall be permitted except during any consecutive 5-
month period designated by the State Committee established
under section 8(b) of the Soil Conservation and Domestic
Allotment Act between April 1 and October 31st of each year,
unless waived by the Secretary because of a natural disaster.
Contract acreage on which contract commodities are planted for
harvest may be hayed or grazed at any time without limitation.
Paragraph (2), in subparagraph (B), provides that alfalfa
may be grown on contract acreage beyond 15 percent without any
restriction, except that the quantity of acreage eligible for a
contract payment shall be reduced proportionately for each acre
beyond 15 percent.
Paragraph (2), in subparagraph (C), provides that the
planting of fruits and vegetables shall be prohibited on
contract acreage, except in any region in which there is a
history of double-cropping, as determined by the Secretary.
This prohibition does not apply to lentils, mung beans, and dry
peas.
Section 104. Nonrecourse marketing assistance loans and loan deficiency
payments
Section 104(a), in paragraph (1), directs the Secretary to
make nonrecourse marketing assistance loans available to
eligible producers on a farm for loan commodities for each of
the 1996 through 2002 crops of such commodities under terms and
conditions prescribed by the Secretary at rates established
under section 104(b).
Section 104(a), in paragraph (2), provides that the amount
of production eligible for a marketing assistance loan includes
all production of a loan commodity produced by a producer who
has entered into a contract, and any production of extra long
staple cotton and oilseeds.
Section 104(a), in paragraph (3), provides for recourse
loans for high moisture corn and grain sorghum for the 1996
through 2002 crops, available to producers who normally harvest
all or a portion of their corn or grain sorghum in a high
moisture state, provided that they present adequate
documentation to the Secretary regarding the amount harvested.
Section 104(b), in paragraph (1), provides that the loan
rate for wheat is not less than 85 percent of the 5-year
Olympic average, with a maximum of $2.58 per bushel, and the
Secretary has authority to further decrease the loan rate in a
particular year based on supply-use ratios.
Section 104(b), in paragraph (2), provides that the loan
rate for corn shall be not less than 85 percent of the 5-year
Olympic average, with a maximum of $1.89 per bushel, and the
Secretary has authority to further reduce the loan rate in a
particular year based on supply-use ratios. Loan rates for
other feed grains are to be set at rates which are fair and
reasonable in relation to the rate for corn based on feeding
value.
Section 104(b), in paragraph (3), provides that the loan
for upland cotton shall be not less than the lower of either:
(i) 85 percent of the average U.S. spot market price
during the preceding 5 marketing years, excluding the
highest and lowest-price years, or
(ii) 90 percent of the average price of the 5 lowest
priced growths quoted for Northern Europe during a
specified period, adjusted downward to account for
differences between the Northern Europe and U.S. spot
market prices.
However, in any case, the loan rate shall not be less than
$0.50 per pound nor more than $0.5192 per pound.
Section 104(b), in paragraph (4), provides that the loan
rate for extra long staple cotton shall be not less than 85
percent of the 5-year Olympic average, with a maximum of
$0.7965 per pound.
Section 104(b), in paragraph (5), provides that the loan
rate for rice shall be $6.50 per hundredweight.
Section 104(b), in paragraph (6), provides that the loan
rate for oilseeds: soybeans are $4.92 per bushel, sunflower
seed, canola, rapeseed, safflower, mustard seed, and flaxseed
are $0.087 per pound; and other oilseeds are set at a level
that is fair and reasonable in relation to the loan rate
available for soybeans other than cottonseed (not to be less
the rate for soybeans on a per pound basis).
Section 104(c) provides that the term of a loan shall be
nine months, except that a loan for upland or extra long staple
cotton be ten months, starting on the first day of the first
month after the month in which the loan is made. The Secretary
may not extend loans.
Section 104(d) establishes repayment provisions for loan
commodities.
Paragraph (1) provides that, in general, the repayment rate
for marketing assistance loan (other than extra long staple
cotton) is the lesser of:
(A) the loan rate; or
(B) the prevailing world market price (adjusted to
U.S. quality and location), as determined by the
Secretary.
Paragraph (2) provides that, with respect to wheat, feed
grains, and oilseeds, the repayment rate shall be set by the
Secretary at such level as will:
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodities by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodities; and
(D) allow the commodities produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
Paragraph (3) sets the repayment rate for extra long staple
cotton at the loan rate plus interest.
Paragraph (4) instructs the Secretary to prescribe by
regulation a formula to determine the prevailing world market
price and a mechanism to periodically announce the prevailing
world market price.
Paragraph (5) provides upland cotton prevailing world
market price adjustment authority based on the Northern Europe
price differential, with further adjustment authority based on
the U.S. export share, current cotton exports and sales, and
other data determined by the Secretary to be relevant. Such
adjustments may not exceed the difference between the average
U.S. price and the northern Europe price.
Section 104(e) directs the Secretary to make loan
deficiency payments to producers who forego obtaining a loan
under subsection (a) in an amount equal to the difference
between the loan rate for a commodity and the level at which it
may be repaid. However, there is no authority for loan
deficiency payments for extra long staple cotton.
Section 104(f) provides special marketing loan provisions
for upland cotton.
Paragraph (1) provides authority for cotton user marketing
certificates (commonly referred to as ``Step 2''), under which
certificates (which may be redeemed for CCC-owned commodities)
or cash payments must be made available to first handlers of
cotton whenever the prevailing market price (adjusted for U.S.
quality and location) is below the current loan repayment rate.
The values of the certificates (or the amount of the payment)
is based on the difference between the adjusted world price and
the loan repayment level. The Secretary is required to make
payments, either in cash or marketing certificates, to domestic
users and exporters for documented purchases whenever (i) the
weekly U.S. Northern Europe price exceeds the Northern Europe
price by more than 1.25 cents per pound for a consecutive four-
week period; and (ii) the adjusted world market price does not
exceed 130 percent of the loan rate. However, no payments will
be issued if, for the preceding consecutive 10-week period, the
weekly U.S. Northern Europe price, adjusted for the value of
any certificates or payments issued, exceeds the Northern
Europe price be more than 1.25 cents per pound. The value of
the certificates (or the amount of the payments) is the
difference between the two prices, minus 1.25 cents, per pound.
Total expenditures for Step 2 payments are limited to
$701,000,000 during fiscal years 1996 through 2002.
Paragraph (2) extends special import quota provisions
(commonly known as ``Step 3'') which requires that a special
import quota be opened if, for a consecutive 10-week period,
the U.S. Northern Europe price, adjusted for the value of any
payments issued under Step 2, exceeds the Northern Europe Price
by more than 1.25 cents per pound. The amount of the quota is
equal to 1 week's domestic mill consumption. Importers have 90
days to purchase and 180 days to enter the cotton into the U.S.
after the quota is announced, and quota periods can overlap.
Section 104(g) extends the limited global quota provisions,
which direct the President to carry out an upland cotton import
quota program whenever the Secretary determines and announces
that the average price in designated U.S. spot markets for a
month, as determined by the Secretary, exceeded 130 percent of
such average price for the last 36 months. The quantity of this
import quota is equal to 21 days of domestic mill consumption,
but this quota cannot overlap with any quota announced under
section 104(f).
Section 104(h) provides general authority for the Secretary
to use the Commodity Credit Corporation (``CCC'') and other
means available to carry out the loans authorized by this
section, and directs the Secretary to get adequate processor
assurances that producers will get loan program benefits
whenever a loan program includes payments to processors.
Section 104(i) gives the Secretary general authority to
make appropriate adjustments in loan levels based on grade,
type, quality, location, and other factors.
Section 104(j) provides that, in general, a producer is not
personally liable for any deficiency rising from the sale of
collateral securing a nonrecourse loan. However, exceptions are
provided for quality or quantity deficiencies, failure to
properly care or maintain collateral, or a failure to deliver a
commodity. This section also provides that any security
interest obtained by CCC in sugarcane or sugarbeets as a result
of a security agreement by a processor shall be superior to all
common law and statutory liens in favor of producers.
Section 104(k) provides authority for CCC to sell any
inventory commodities at any price that the Secretary
determines will maximize returns to CCC, except that this
authority does not apply to sales:
(A) for new or byproduct uses;
(B) of peanuts or oilseeds (if used for oil);
(C) for seed if the sale will not impair a loan
program;
(D) of deteriorated-quality commodities that are in
danger of spoiling;
(E) for the purpose of establishing a claim arising
out of a fraudulent or other wrongful act pursuant to a
contract;
(F) for export; or
(G) for other than a primary use.
The Secretary is also authorized to make CCC-owned commodities
available in any Presidential disaster area.
Section 105. Payment limitation
Section 105(a) amends section 1001 of the Food Security Act
of 1985 to provide that the total amount of contract payments
to a person under section 103 of this Act may not exceed
$40,000 during any fiscal year, and that the total annual
amount of marketing loan gains or loan deficiency payments to a
person for loan commodities under section 104 of this Act may
not exceed $75,000.
Section 105(b) makes necessary conforming changes to the
Food Security Act of 1985.
Section 106. Peanut program
Section 106(a) provides nonrecourse loans to quota peanut
producers at $610 per ton, and directs the Secretary to reduce
the loan rate by 5 percent to any producer who had an offer
from a handler to purchase quota peanuts, for delivery within
the same county or a contiguous county, at a price equal to or
greater than the applicable quota support rate, for the peanuts
that were subject to the offer.
Section 106(b) provides nonrecourse loans to producers of
additional peanuts at such rates as the Secretary finds
appropriate.
Section 106(c) directs the Secretary to make price support
loans available through area marketing associations via
warehouse storage loans, where appropriate, and provides that
administrative costs by an area marketing association shall be
included in such loans. The Secretary is directed to require
area marketing associations to establish and maintain pools for
quota peanuts, with separate pools for New Mexico Valencia
peanuts, and that net gains from each pool shall be distributed
only to producers in the pool.
Section 106(d) provides that losses in quota pools shall be
covered using the following sources in the following order or
priority:
(1) gains on transfers of peanuts from additional
loan pools;
(2) gains from domestic and export edible use sales
of additional peanuts from additional pools;
(3) buy-back gains within the area;
(4) marketing assessment funds collected from growers
under subsection (g) (except funds attributable to
handlers) with any unused assessment funds being
transferred to the Treasury;
(5) gains or profits from quota pools in other
production areas (not including separate type pools
established for Valencia peanuts produced in New
Mexico) and then buy-back gains in other areas; and
(6) an increase in the marketing assessment for such
quota pool.
Section 106(e) provides that the Secretary may not make
loans available for quota peanuts for any crop of quota peanuts
for which producers have disapproved the poundage quota.
Section 106(f) directs the Secretary to continue to promote
quality improvement of peanuts.
Section 106(g) provides that first handlers (initial
purchasers of peanuts) and producers pay a marketing assessment
to CCC on all peanuts sold equal to 1.2 percent of the national
average loan rate, with first handlers paying .60 percent in
1996 and .65 percent in 1997 through 2002.
Section 106(h) provides that subsections (a) through (f)
are applicable to the 1996 through 2002 crops of peanuts.
Section 106(i), in paragraph (1), amends the peanut quota
provisions contained in part VI of subtitle B of title III of
the Agricultural Adjustment Act of 1938 (the ``1938 Act'') by
extending such provisions through the 2002 marketing year.
Section 106(i), in paragraph (2), amends section 358-
1(b)(1) and 358-1(b)(2) of the 1983 Act to provide eligibility
provisions for farm poundage quota. Beginning with the 1997
marketing year, farms: (i) owned or controlled by
municipalities, airport authorities, schools, colleges,
refuges, and other public entities; or (2) owned or controlled
by a person who is not a producer and resides in another State;
will no longer be allocated any farm poundage quota by the
Secretary, and any farm poundage quota held by such entities at
the end of the 1996 marketing year shall be allocated to other
farms in a State.
Section 106(i), in paragraph (3), amends section 358-
1(a)(1) of the 1938 Act by eliminating the 1,350,000 ton
minimum national poundage quota.
Section 106(i), in paragraph (4), amends section 358-
1(b)(2) of the 1938 Act by deleting the current subparagraph
(B) relating to allocation of increased quota in Texas and
inserting a new subparagraph (B) authorizing temporary
increases in quota based on seed use. Amended section 358-
1(b)(2), in subparagraph (B), provides that, for the 1996
through 2002 marketing years, a temporary quota allocation for
the marketing year only in which the crop is planted, equal to
the number of pounds of seed peanuts planted for the farm that
shall be made to the producers for the 1996 through 2002
marketing years, in addition to the normal farm poundage quota
established under section 358-1. Subparagraph (B) also provides
that there is no change in the requirement regarding the use of
quota and additional peanuts established by section 359a(b) of
the 1938 Act. Also, subsection (a)(1) of such section no longer
includes ``seed'' in the estimate of domestic edible use by the
Secretary.
Section 106(i), in paragraph (5), amends section 358b(a)(1)
of the 1938 Act relating to farm poundage quota transfer.
Amended section 358b(a)(1) allows farm poundage quota to be
sold or leased, either before or after the normal planting
season, to any other owner or operator of a farm in the same
State. Current provisions requiring 90 percent of a farm's
basic quota to be planted or considered planted before a fall
(or after the normal planting season) transfer is allowed are
maintained.
Section 106(i), in paragraph (6), eliminated
undermarketings by deleting paragraphs (8) and (9) of section
358-1(b) of the 1938 Act, with necessary conforming changes to
other sections.
Section 106(i), in paragraph (7), adds a new paragraph (8)
to amended section 358-1(b) of the 1938 Act which authorizes
the transfer of additional peanuts from a farm to a quota loan
pool in cases in which quota poundage was not harvested and
marketed because of drought, flood, or any other natural
disaster, except that the such peanuts shall be supported at 70
percent of the quota support rate, and such transfer shall not
exceed 25 percent of the total farm quota pounds.
Section 107. Sugar program
Section 107(a) sets the loan rate for domestically grown
sugarcane at 18 cents per pound for raw cane sugar.
Section 107(b) sets the loan rate for domestically grown
sugar beets at 22.9 cents per pound for refined beet sugar.
Section 107(c) requires the Secretary to reduce the loan
rate specified in subsections (a) and (b) if the Secretary
determines that negotiated reductions in export subsidies
provided for sugar of the European Union and other major sugar
exporting countries in the aggregate exceed the commitments
made as part of the Agreement on Agriculture. It also provides
that the Secretary shall not reduce the loan rate under
subsections (a) and (b) below a rate that provides domestic
sugar an equal measure of support to that provided by the
European, Union and other sugar exporting countries based on
the provisions of Agreement on Agriculture, section 101(d)(2)
of the Uruguay Round Agreements Act.
Section 107(d) provides that loan terms are the earlier of
9 months, or the end of a fiscal year, with supplemental loan
authority (up to a total on nine months) for loans maturing at
the end of a fiscal year.
Section 107(e) provides for the Secretary to carry out the
section through the use of recourse loans for sugar. However,
it also provides that during any fiscal year in which the
tariff rate quota (TRQ) for imports of sugar into the U.S. is
set, or increased to, a level that exceeds 1,500,000 short tons
raw value, the Secretary is directed to carry out this section
by marking nonrecourse loans (previously made recourse loans
are to be modified by the Secretary into nonrecourse loans). If
the Secretary is required to make nonrecourse loans (or modify
recourse loans) under this subsection during a fiscal year, the
Secretary is to obtain from processors adequate assurances that
such processors will provide appropriate minimum payments to
producers as set by the Secretary.
Section 107(f) requires first processors of raw cane sugar
to remit to CCC nonrefundable marketing assessment for each
pound of raw cane sugar equal to 1.1 percent of the loan rate
for fiscal year 1996 (1.375 percent for 1997 through 2003)
while first processors of sugar beets are to remit to CCC a
marketing assessment of 1.1794 percent for fiscal year 1996
(1.47425 percent for 1997 through 2003), on all marketings.
Assessments are to be collected on a monthly basis, except that
any inventory which has not been marketed by September 30 of a
fiscal year shall be assessed at that point, except that the
latter sugar shall not be assessed later when it is marketed.
Any person who fails to remit the assessment is liable for a
penalty based on the quantity of the sugar involved in the
violation times the applicable loan rate at the time of
violation.
Section 107(g) provides for an additional penalty (1 cent
per pound on cane sugar, pro rata on beet sugar) to be assessed
on the forfeiture of any sugar pledged as collateral for a
loan.
Section 107(h) requires processors and refiners to report
such information to the Secretary as is required in order to
administer the program. A penalty applies for failure to report
and the Secretary is required to make monthly reports on
pertinent sugar production, imports, distribution, and stock
levels.
Section 107(i) repeals marketing allotments for sugar,
contained in Part VII of subtitle B of title III of the 1938
Act.
Section 107(j) provides that this section is applicable to
the 1996 through 2002 crops of sugar beets and sugarcane.
Section 108. Administration
Section 108 directs the Secretary to use CCC to carry out
this title, and prohibits the Secretary from using any CCC
funds for the salaries or expenses of any officer or employee
of USDA. It also provides authority to issue necessary
regulations, and provides that determinations made by the
Secretary under this title are final.
Section 109. Elimination of permanent price support authority
Section 109 repeals the Agricultural Act of 1949 (certain
necessary sections are transferred to the 1938 Act), and makes
required conforming amendments.
Section 110.--Effect of amendments
Section 110 provides that the amendments made by this Act
shall not affect the authority of the Secretary to carry out
the 1991 through 1995 production adjustment programs in effect
before this Act.
title ii--dairy
Section 201.--Milk Price Support Program
Section 201 continues the current authority of the
Secretary of Agriculture to support the price of milk produced
in the 48 contiguous states through the purchase of excess
cheddar cheese from the commercial market through December 31,
2002. However, beginning on the first day of the first month
not less than 30 days after the enactment of this Act, the
Secretary will no longer be authorized to support the price of
milk through the price of milk through the purchase of excess
butter and nonfat dry milk from the commercial market.
It also establishes the support price for a hundredweight
(cwt) of milk containing 3.67 percent butterfat at not less
than $10.35 during calendar year 1996, not less than $10.25
during calendar year 1997, not less than $10.15 during calendar
year 1998, not less than $10.05 during calendar year 1999, not
less than $9.95 during calendar year 2000, and not less than
$9.85 during calendar year 2001 and thereafter.
Section 201 does not provide authority for the Secretary to
assess producers to pay for any portion of the support program
for milk (the current budget assessment is repealed with the
rest of Section 204 of the Agricultural Act of 1949 by section
109(b)(2)). However, the Secretary is authorized to refund the
budget assessments collected from a dairy producer in calendar
year 1995 or calendar year 1996 if that producer can establish
that he or she did not increase marketings of milk in that
calendar year when compared to the preceding calendar year.
The authority of the Secretary to transfer milk products
purchased under the support program to the military and
veterans hospitals is continued. However, the CCC is to be
reimbursed for all costs associated in making those products
available to the military and veterans hospitals.
Section 202.--Recourse loans for commercial processors of dairy
products.
Section 202 authorizes the Secretary to make recourse loans
available to commercial processors of cheddar cheese, butter
and nonfat dry milk dairy products to assist those processors
in assuring price stability for the dairy industry. Loans are
to be made available at 90% of the market price and at
established CCC interest rates. Loans may not extend beyond the
end of the fiscal year in which they are made, except that the
Secretary may extend a loan for an additional period not to
exceed the next fiscal year.
Section 203.--Dairy export incentive program
Section 203 extends the Dairy Export Incentive Program
(DEIP) through December 31, 2002. The Secretary is directed to
use DEIP at the maximum volume and funding levels permitted by
the Uruguay Round. The Secretary is given sole discretion over
DEIP and authorized to take market development into
consideration, in addition to the difference between domestic
and world prices, in establishing payment rates under DEIP.
In making these changes, it is the intent of the Committee
that the DEIP program be run in the most efficient and cost-
effective manner possible. USDA should, therefore, take all
appropriate steps to implement these amendments by issuing or
revising its DEIP regulations as soon as practicable. The
Committee would further note that the recent ``start and stop''
approach to operating DEIP has undermined its effectiveness
and, as a result, the Committee strongly encourages USDA to
have any other program revisions along with the amendments made
by this Act fully implemented by July 1, 1996.
Section 204.--Dairy promotion program
Section 204 extends the research and promotion assessment
(15 cents/hundredweight) under the Dairy Production
Stabilization Act of 1983 to dairy components, derivatives, and
products imported into the United States, including casein
(except casein imported under sections 3501.90.20 [casein glue]
and 3501.90.50 [other] of the harmonized Tariff Schedule, at
the rate of 1.2 cents per pound of total milk solids in those
products. The National Dairy Promotion and Research Board is
expanded from 36 to 38 members to include an importer of dairy
products into and an exporter of dairy products from the United
States.
The Dairy Production Stabilization Act of 1983 is amended
to require that the budget of the National Dairy Promotion and
Research Board during each of the fiscal years from 1996 and
2000 shall provide for the expenditure of not less than 10
percent of anticipated revenues available to the Board on the
development of international markets for, and the promotion
within such markets of, U.S. dairy products.
The Secretary shall publish a proposed order reflecting
these amendments to the Dairy Production Stabilization Act
within 60 days of enactment and provide notice and an
opportunity for comment. After consideration of any comments
received on the proposed order, a final order shall be issued
and become effective not later than 120 days after publication
of the proposed order. Within 36 months after the issuance of a
final order, the Secretary shall conduct a referendum for the
sole purpose of determining whether the requirement of the
amendments will be continued. The amendments will be continued
if approved by a majority of those persons voting in the
referendum. If the amendments are not approved, the old order
shall be reinstated.
Section 205.--Fluid milk standards under milk marketing orders
Section 205 establishes minimum standards for fluid milk
within Federal milk marketing orders as follows: for whole
milk--not less than 8.8 percent milk solids not fat and not
less than 3.25 percent milk fat; for 2 percent (lowfat) milk--
not less than 10 percent solids not fat and not less than 2
percent milk fat; for 1 percent (light) milk--not less than 11
percent milk solids not fat and not less than 1 percent milk
fat; and for skim (nonfat) milk--not less than 9 percent milk
solids and not more than .25 percent milk fat.
The quality standards established by Section 205 for
Federal milk marketing orders are equivalent to those currently
in existence in California. By adopting these standards in all
Federal milk marketing orders, the committee expects that the
California state standards will remain in effect as well during
the two-year period following the enactment of this Act.
Section 206.--Manufacturing allowance
Section 206 sets the maximum manufacturing allowance
(``make allowance'') which a state may provide for milk
manufactured into butter, butter oil, nonfat dry milk, and
whole dry milk at $1.65/hundredweight of milk, and for milk
manufactured into cheese and whey of $1.80/hundredweight of
milk during the two-year period beginning on the effective date
of this section. Subsequent to that two-year period, the
manufacturing allowance will be that amount determined by the
Secretary under authority granted to the Secretary in section
221(b)(3).
Any state which provides for a higher make allowance for
cheese than that provided by this section may not sell surplus
cheese to the Commodity Credit Corporation (CCC) under the
price support program. Any state which provides for a higher
make allowance for butter and nonfat dry milk than that
provided by this section may not receive disbursements from the
Class IV equalization pool under section 208.
Section 206 also suspends Section 102 of the 1990 Farm bill
during the two-year transition period unless an injunction or
other court order prohibits or impairs the implementation of
this section of the Act. Section 102 is then repealed at the
end of the two-year transition period.
The Secretary is authorized to implement and enforce this
section without the issuance of regulations. Section 206 is
effective on the first day of the first month beginning not
less than 30 days after the date of the enactment of this Act.
In adopting section 206, the Committee intends only to
establish a yardstick which the Secretary can use in
determining whether a state may participate in the Class IV
equalization pool or sell cheese to the CCC. It is not the
Committee's intent to dictate changes in a state's pricing
formula, but rather to bring about some measure of uniformity
in the effective make allowances of processors under Federal
orders and those subject to state orders using the yields and
prices specified in section 206.
Therefore, in the case of the State of California, it is
the intent of the Committee that the $1.80/hundredweight and
the $1.65/hundredweight make allowances set during the two-year
transition period by section 206 have the effect of lowering
California's manufacturing allowances for cheese, butter, and
nonfat dry milk by $.15/hundredweight, notwithstanding other
adjustments made by the pricing formulas in the California
order from their current levels. However, nothing in this
section prevents the State of California from altering its own
formulas in a way that would decrease its state make allowances
for cheese, butter, and nonfat dry milk by more than $.15/
hundredweight.
Section 207. Establishment of temporary Class I price and temporary
Class I equalization pool
Section 207 makes temporary changes in the pricing and
pooling of milk of the highest use classification (i.e., Class
I or ``fluid'' milk) for a period of two years beginning on the
first day of the first month not less than 30 days after
enactment of the Act.
During this two-year ``transition'' period, this section
creates a price floor for milk of the highest use
classification (Class I milk) in a Federal milk marketing order
of not less than $12.87/hundredweight plus the Class I
differential in effect for that order on December 31, 1995. In
the event that the Basic Formula Price exceeds $12.87/
hundredweight in any month during that two-year period of time,
the difference between the Basic Formula Price and $12.87 shall
be added to the Class I price in every Federal milk marketing
order in the second month following the month in which that
difference occurred.
The section also creates a Class I equalization pool during
this two-year period to more equitably share fluid milk
revenues nationwide. Every month during the two-year period,
each Federal milk marketing order and the California state
order must pay into the pool an amount equal to $.80/
hundredweight times the number of hundredweight of Class I milk
marketing in that order during the month. Similarly, every
month during the two-year period, each of these orders will
receive back from the Class I equalization pool an amount equal
to the total monthly receipts in the pool times the ratio of
the total milk marketed in that order during the month to the
total milk marketed in all of those orders during the month.
The amendments required by Section 207 are not subject to a
producer referendum, to the rulemaking requirements of title 5
of the U.S. Code, or to the review or approval of other
executive agencies.
Section 208. Establishment of a temporary Class IV price and a
temporary Class IV equalization pool
Section 208 makes temporary changes in the pricing and
pooling of milk used to produce butter, butter oil, nonfat dry
milk, and whole dry milk for a period of two years beginning on
the first day of the first month not less than 30 days after
enactment of the Act.
During this two-year ``transition'' period, this section
establishes a ``Class IV'' price for milk used to manufacture
these products. The section also creates a Class IV
equalization pool the two-year ``transition'' period that is
activated any month in which the Class IV price determined by
the Secretary is less than the support price for milk used to
manufacture cheese under section 201 (adjusted to 3.5 percent
butterfat).
The Class IV pool is intended to create a more equitable
sharing of any difference between the support price for milk
used in cheese and the Class IV price for milk among all
producers. In any month where the support price (adjusted to
3.5 percent butterfat) exceeds the Class IV price determined by
the Secretary, the Class IV equalization pool will collect from
each milk marketing order (Federal and state) or handler (in
the case of unregulated milk) its proportionate share (the
ratio of the total milk marketed under that order or by handler
to the total milk marketed under all orders and by all handlers
during that month) of 50 percent of that difference times the
total Class IV milk marketed during that month. The Class IV
pool will, then, disburse to an order or handler which marketed
Class IV milk during that month its proportionate share of
total collections (the ratio of Class IV milk marketed under
that order or by that handler to the total Class IV milk
marketed under all orders and by all handlers during that
month).
The amendments required by Section 208 are not subject to a
producer referendum, to the rulemaking requirements of title 5
of the U.S. Code, or to the review or approval of other
executive agencies.
Section 209. Authority for establishment of standby pools
Section 209 authorizes the Secretary to invite proposals
for the establishment of standby pools to facilitate the
movement of milk over long distances. Participation in standby
pools must be approved order-by-order as a separate order item.
Section 221. Issuance or amendment of Federal milk marketing orders to
implement certain reforms
Section 221 requires the Secretary to issue new or amended
milk marketing orders, which shall supersede any other
statutes, rules or regulations applicable to the pricing and
marketing of milk and its products. The new or amended orders
will accomplish the following reforms: (1) consolidation of
existing Federal orders and other areas within the 48
contiguous states not covered by Federal orders into not more
than 8 to 13 orders, with the State of California as one of
those orders and with each order authorized to blend order
proceeds as necessary to address issues unique to that order
such as pre-existing state quota programs; (2) implementation
of uniform multiple component pricing for milk used in
manufactured dairy products; and (3) establishing class prices
for milk used to produce cheese, nonfat dry milk, and butter
based on national product prices less a manufacturing allowance
(which shall not vary regionally except to reflect variances in
transportation and reasonable operating costs, if any, of
efficient processing plants in different geographical areas).
The section further provides that these changes are not to
affect the current status of producer handlers.
When the Secretary utilizes the authority granted under
this section to reform and consolidate Federal milk marketing
orders, the Committee expects that the Secretary will
accomplish that task with a goal of maximizing dairy producer
net income.
With respect to the blending of pool proceeds in a new or
amended order which encompasses the entire geographic area of a
single state and no other area, it is the intent of the
Committee that the Secretary may use a milk pooling system
within that State in lieu of Federal authorities to blend pool
proceeds and manage any quota payment differential plan in
operation in that State.
In implementing a program of multiple component pricing,
the Secretary should apportion the total value of milk paid to
producers based upon the milk's composition of butterfat,
protein, and other solids.
The Committee also notes that the Secretary already has the
authority to implement multiple component pricing on any class
of milk in any Federal milk marketing order pursuant to section
112 of the Food, Agriculture, Conservation, and Trade Act of
1990. Section 221(b) simply requires that the new or amended
orders created by this section will include uniform multiple
component pricing for milk used in manufactured dairy products.
The Committee expects the Secretary to similarly include
multiple component pricing for milk used in fluid milk products
when requested to do so, and following approval, by producers
in any Federal milk marketing order.
Section 221(b) also requires the Secretary to establish
class prices for milk based on national product prices less a
manufacturing allowance. When establishing whether reasonable
operating costs vary between efficient processing plants in
different geographic regions, it is expected that the Secretary
will audit, using uniform procedures, a significant
representative sample of such plants in each region.
Section 222. Reform process
Section 222 provides an expedited process for the issuance
of new or amended orders under section 221: (1) the Secretary
has a limit of not more than 165 days after enactment to
propose amendments or new orders; (2) a comment period of not
more than 75 days is established for the proposed amendments or
new orders; and (3) the Secretary has not more than 120 days
after the close of the comment period to publish a final
administrative decision.
The section provides for a referendum in each new or
amended order as soon as the Secretary's decision is
implemented to determine whether the producers wish to
terminate the order. Actions taken by the Secretary under
sections 221 and 222 are not subject to the rulemaking
requirements of title 5 of the U.S. Code and are not subject to
review or approval by any other executive agency.
Section 223. Effect of failure to comply with reform process
requirements
Section 223 provides that, in the event that the Secretary
does not publish a final administrative decision reforming
Federal milk marketing orders within one year of the date of
enactment of the Act, the Secretary's authority to assess
producers and handlers for order administration and services is
terminated. However, those services must continue and be
financed out of funds available to the Agricultural Marketing
Service.
The section further provides that, unless the Secretary
certifies to Congress within two years of the date of enactment
of the Act that all of the Federal milk marketing order reforms
required by section 221 are fully implemented, all Federal
price support activity, milk marketing orders, Dairy Export
Incentive Program activities, and promotion activities under
both the producer and fluid processor promotion programs will
cease immediately.
In the event that the Secretary is enjoined or otherwise
restrained by a court order from publishing or implementing the
reform requirements specified by section 221, the length of
time for which that injunction or other restraining order is
effective shall be added to the time limitations specified in
subsections (a) and (b) thereby extending those time
limitations by a period of time equal to the period of time for
which the injunction or other restraining order is effective.
title III--conservation
Section 301. Conservation
Section 301(a) amends Subtitle E of title XII of the Food
Security Act of 1985 to provide mandatory funding for the
fiscal years 1996 through 2002 for the Conservation Reserve
Program, the Wetlands Reserve Program, and $100,000,000 per
year for the Livestock Environmental Assistance Program created
by this title.
Section 301(b) amends Subtitle D of title XII of the Food
Security Act of 1985 by adding a new Chapter 4, which creates
the Livestock Environmental Assistance Program.
Authorized through 2002, LEAP is authorized to provide
technical assistance and cost-share and incentive payments to
livestock producers who undertake land management or structural
practices, funded through direct spending of $100,000,000 each
fiscal year, with directions to the Secretary in how to develop
priority areas with respect to spending. The Secretary is
authorized to enter into contracts (up to ten years) to carry
out this program. Operators of large confined livestock
operations are ineligible to receive cost-share assistance for
animal waste management facilities.
Section 301(c), in paragraph (1), replaces permanent
easement authority in the Wetlands Reserve Program with 15-year
easement authority by amending section 1237 of the Food
Security Act of 1985.
Section 301(c), in paragraph (2), modifies the Conservation
Reserve Program (section 1235 of the Food Security Act of 1985)
by limiting total acreage enrollment to 36,400,000 acres.
title iv--agricultural promotion and export programs
Section 401.--Market Promotion Program
Section 401 authorizes $100,000,000 annually for fiscal
years 1996 through 2002 for the Market Promotion Program
authorized by the Agricultural Trade Act of 1978.
Section 402. Export Enhancement Program
Section 402 amends the section 301(e)(1) of the
Agricultural Trade Act of 1978 to limit the amount of the CCC
funds available for the Export Enhancement Program as follows:
$350,000,000 for fiscal years 1996 and 1997; $500,000,000 for
fiscal year 1998; $550,000,000 for fiscal year 1999;
$579,000,000 for fiscal year 2000; and $478,000,000 for fiscal
years 2001 and 2002.
title v--miscellaneous
Section 501. Crop insurance
Section 501(a) amends section 508(b)(4) of the Federal Crop
Insurance Act to provide that the Secretary may only continue
to offer catastrophic risk protection through local USDA
offices if the Secretary determines that the number of approved
insurance providers operating in a State is insufficient to
adequately provide catastrophic risk protection coverage to
producers. If coverage availability in a State is adequate,
only approved insurance providers may provide coverage. This
section also provides that, effective with spring-planted 1996
and subsequent crops, catastrophic coverage is not required for
federal farm program benefits of producers sign a written
waiver with the Secretary that waives any eligibility for
emergency crop loss assistance.
Section 501(b) amends section 519(a)(2)(B) of the Federal
Crop Insurance Act to specify that seed crops are eligible for
coverage.
Section 502. Collection and use of agricultural quarantine and
inspection fees
Section 502 amends the agricultural quarantine and
inspection fees provisions in section 2509 of the Food,
Agriculture, Conservation, and Trade Act of 1990 to provide
that, for the fiscal years 1996 through 2002, funds in the user
fee account in excess of appropriated amounts shall be
available until expended. Beginning with fiscal year 2003,
funds in the user fee account shall be available without fiscal
year limitation.
Section 503. Commodity Credit Corporation interest rate
Section 503 provides that the interest rate charged by CCC
on loans for agricultural commodities shall be 100 basis points
greater than rate established by the formula in effect on
October 1, 1995.
Section 504. Establishment of the Office of Risk Management
Section 504 amends the Department of Agriculture
Reorganization Act of 1994 by inserting after section 226 a new
section 226A.
New section 226A(a) directs the Secretary to establish and
maintain an independent Office of Risk Management within the
Department.
New section 226A(b) provides that such office shall have
jurisdiction over:
(1) the supervision of FCIC;
(2) administration and oversight of all programs
authorized by the Federal Crop Insurance Act;
(3) any pilot or other programs involving revenue
insurance, risk management, or the use of the futures
market to manage risk and support farm income; and
(4) such other functions as the Secretary considers
appropriate.
New section 226A(c) provides that the office shall be
headed by an Administrator who shall be appointed by the
Secretary, and that the Administrator shall also serve as the
Manager of FCIC.
New section 226A(d), in paragraph (1), authorizes the Under
Secretary of Agriculture for Farm and Foreign Agricultural
Services to consolidate the human resources, public affairs,
and legislative affairs functions of the Office of Risk
Management.
New section 226A(d), in paragraph (2), directs the
Secretary to provide resources to the Office of Risk Management
sufficient to enable the Office to carry out its functions in a
timely and efficient manner.
New section 226A(d), in paragraph (3), provides that fiscal
year 1996 funding is established at not less than $88,500,000,
to be taken from the appropriation for the salaries and
expenses of the Consolidated Farm Services Agency.
Section 505. Business Interruption Insurance Program
Subsection (a). Establishment of program
Subsection (a) directs the Secretary to establish a
business interruption insurance program that allows a producer
of a program crop to obtain revenue insurance coverage in case
of loss of revenue. The Secretary is authorized to determine
the nature and extent of such a program.
Subsection (b). Report on progress and proposed expansion
Subsection (b) provides that the Secretary must submit data
to the Commission on 21st Century Production Agriculture
established under Subtitle E by January 1, 1998, regarding the
results of the program and make recommendations about how to
best offer a revenue insurance program in the future.
Subsection (c). Contract commodity defined
Subsection (c) defines program crop to mean wheat, corn,
grain sorghums, oats, barley, upland cotton, or rice.
Section 506. Continuation of Options Pilot Program
Section 506 provides that, during the 1996 through 2002
crop years, the Secretary may continue to conduct the options
pilot program authorized by the Options Pilot Program Act of
1990 (Subtitle E of title XI of Public Law 101--624), with the
Secretary having authority to make such modifications to the
terms and conditions of the program as are necessary to reflect
the changes to law made by this Act.
title vi--commission on 21st century production agriculture
Section 601. Establishment
This section establishes a commission to be known as the
``Commission on 21st Century Production Agriculture.''
Section 602. Composition
Subsection (a). Membership and appointment
Subsection (a) of this section requires that the Commission
be composed of eleven members: three members appointed by the
President; four members appointed by the Chairman of the
Committee on Agriculture of the House of Representatives (in
consultation with the ranking minority member); and four
members appointed by the Chairman of the Committee on
Agriculture, Nutrition, and Forestry of the Senate (in
consultation with the ranking minority member).
Subsection (b). Qualifications
Subsection (b) establishes the qualifications required of
the persons appointed to the Commission. At least one member
appointed by each the President, the Chairman of the Committee
on Agriculture of the House of Representatives, and the
Chairman of the Committee on Agriculture, Nutrition, and
Forestry of the Senate shall be an individual who is primarily
involved in production agriculture. All other members appointed
to the Commission must have knowledge and experience in
agriculture production, marketing, finance, or trade.
Subsection (c). Term of members; vacancies
Subsection (c) requires that the appointment to the
Commission be for the life of the Commission. It also directs
that a vacancy on the Commission shall not affect the
Commission's power and shall be filled in the same manner as
the original appointment.
Subsection (d). Time for appointment; first meeting
Subsection (d) requires that the members of the Commission
be appointed no later than October 1, 1997 and that the
Commission convene its first meeting 30 days after six members
of the Commission have been appointed.
Subsection (e). Chairman
Subsection (e) requires that the chairman of the Commission
be designated jointly by the Chairman of the Committee on
Agriculture of the House of Representatives and the Chairman of
the Committee on Agriculture, Nutrition, and Forestry of the
Senate from among the members of the Commission.
Section 603. Comprehensive review of past and future of production
agriculture
Subsection (a). Initial review
Subsection (a) of this section requires the Commission to
conduct a comprehensive review of changes in the condition of
production agriculture in the United States subsequent to the
date of enactment of this Act and the extent to which such
changes are the result of the changes made by this Act. This
review shall include: (1) the assessment of the initial success
of market transition contracts in supporting the economic
viability of farming in the United States: (2) the assessment
of the food security situation in the United States in the
areas of trade, consumer prices, international competitiveness
of United States production agriculture, food supplies, and
humanitarian relief; (3) an assessment of the changes in farm
land values and agricultural producer incomes; (4) an
assessment of the regulatory relief for agricultural producers
that has been enacted and implemented, including the
application of cost/benefit principles in the issuance of
agricultural regulations; (5) an assessment of the tax relief
for agricultural producers that has been enacted in the form of
capital gains tax reductions, estate tax exemptions, and
mechanisms to average tax loads over high and low-income years;
(6) an assessment of the effect of any Government interference
in agricultural export markets, such as the imposition of trade
embargoes, and the degree of implementation and success of
international trade agreements; and (7) the assessment of the
likely effect of the sale, lease, or transfer of farm poundage
quota for peanuts across State lines.
Subsection (b). Subsequent review
Subsection (b) requires the Commission to conduct a
comprehensive review of the future of production agriculture in
the United States and the appropriate role of the Federal
Government in support of production agriculture. This review
shall include: (1) an assessment of changes in the condition of
production agriculture in the United States since the initial
review under subsection (a); (2) an identification of the
appropriate future relationship of the Federal Government with
production agriculture after 2002; and (3) an assessment of the
manpower and infrastructure requirements of the Department of
Agriculture necessary to support the future relationship of the
Federal Government with production agriculture.
Subsection (c). Recommendations
Subsection (c) requires that the Commission develop
specific recommendations for legislation to achieve the
appropriate future relationship of the Federal Government with
production agriculture identified under subsection (a)(2).
Section 604. Reports
Subsection (a). Report on initial review
Subsection (a) of this section requires that by June 1,
1998, the Commission submit a report containing the results of
the initial review to the President, the Committee on
Agriculture of the House of Representatives, and the Committee
on Agriculture, Nutrition, and Forestry of the Senate.
Subsection (b). Report on subsequent review
Subsection (b) requires that not later than January 1,
2001, the Commission submit a report containing the results of
the subsequent review conducted under section 1503(b) to the
President, the Committee on Agriculture of the House of
Representatives, and the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
Seciton 605. Powers
Subsection (a). Hearings
Subsection (a) of this section authorizes the Commission to
conduct hearings, take testimony, receive evidence, and act in
a manner the Commission considers appropriate to carry out the
purposes of this Act.
Subsection (b). Assistance from other agencies
Subsection (b) authorizes the Commission to secure directly
from any department or agency of the Federal Government any
information necessary to carry out its duties under this title.
The head of such department or agency shall furnish information
requested by the chairman of the Commission, to the extent
permitted by law.
Subsection (c). Mail
Subsection (c) authorizes the Commission to use the United
States mails in the same manner and under the same conditions
as the departments and agencies of the Federal Government.
Subsection (d). Assistance from Secretary
Subsection (d) requires that the Secretary of Agriculture
shall provide appropriate office space and reasonable
administrative and support services available to the
Commission.
Section 606. Commission procedures
Subsection (a). Meetings
Subsection (a) of this section requires that the Commission
meet on a regular basis. The frequency of such meeting shall be
determined by the chairman or a majority of its members.
Additionally, the Commission must meet upon the call of the
chairman or a majority of the members.
Subsection (b). Quorum
Subsection (b) provides that a majority of the members of
the Commission must be present to produce a quorum for
transacting the business of the Commission.
Section 607. Personnel matters
Subsection (a). Compensation
Subsection (a) of this section provides that members of the
Commission serve without compensation, but are allowed travel
expenses when engaged in the performance of Commission duties,
including a per diem in lieu of subsistence, as authorized by
section 5703 of title 5, United States Code.
Subsection (b). Staff
Subsection (b) provides that the Commission shall appoint a
staff director. The staff director's basic rate of pay shall
not exceed that rate provided for under section 5376 of title
5, United States Code. The Commission may appoint such
professional and clerical personnel as may be reasonable and
necessary to enable the Commission to carry out its duties
without regard to the provisions governing appointments in the
competitive service, title 5, United States Code, and
provisions relating to the number, classification, and General
Schedule rates in chapter 51 and subchapter III of chapter 53
of title 5 or any other provision of law. No employee appointed
by the Commission (other than the staff director) may be
compensated at a rate exceeding the maximum rate applicable to
level 15 of the General Schedule.
Subsection (c). Detailed personnel
Subsection (c) authorizes the head of any department or
agency of the Federal Government to detail, without
reimbursement, any personnel of such department or agency to
the Commission to assist the Commission in carrying out its
duties. The detail of any such personnel may not result in the
interruption or loss of civil service status or privilege of
such personnel.
Section 608. Termination of Commission
This section provides that the Commission shall terminate
upon the issuance of its final report required by section 1504.
title vii--extension of certain authorities
Section 701. Extension of authority under Public Law 480
This section amends section 408 of the Agricultural Trade
and Development Assistance Act of 1954 to extend the authority
to enter into agreements through calendar year 1996.
Section 702. Extension of Food for Progress
This section amends section 1110 of the Food Security Act
of 1985 to extend the Food For Progress Program through
calendar year 1996 and to extend additional assistance in the
administration of food assistance programs through fiscal year
1996.
Committee Consideration
The Committee on Agriculture met, pursuant to notice, on
January 30, 1996, a quorum being present, to consider the bill
H.R. 2854, the ``Agricultural Market Transition Act''.
The Chairman called the meeting to order at 2:20 p.m. and
stated that a copy of an Amendment in the Nature of a
Substitute and section-by-section analysis to H.R. 2854 was
available to each Member at his place on the rostrum.
Thereafter, the Chairman stressed the need to enact a farm
program as expeditiously as possible as the delay in reaching
balanced budget package had created problems in agriculture
which would require special action to resolve. The Chairman
acknowledged that the permanent law of the Agriculture Act of
1949 is now in place and if it takes effect, it would be very
costly and highly disruptive for farmers. The Chairman noted
that some Members had discussed a two-year extension of the
1990 Farm Bill, but that agriculture had already lost $7.8
billion in available funding in the December baseline update
and that, if current law were to be extended for two years, the
next farm bill debate would occur after further baseline
updates had lost another $5 to $6 billion for agriculture. The
Chairman further stated that a simple extension would prevent
the deregulation and reform of agriculture policy that was
achieved in the Balanced Budget Act in H.R. 2854.
All Members were given permission to insert their
statements for the record as the Chairman wished to expedite
consideration of the bill.
The Chairman made a presentation to Chairman Emeritus de la
Garza for his past contributions to the Committee and noted
that he had announced his retirement after this term.
Without objection, the Chairman laid before the Committee
the Amendment in the Nature of a Substitute to H.R. 2854 and
stated that the Amendment would be considered as original text
for purposes of amendment by title.
Mr. Dooley was then recognized on behalf of himself, Mr.
Pomeroy, and Mr. Johnson of South Dakota, to offer a Pomeroy-
Dooley-Johnson En Bloc Amendment to the Substitute that
provides:
forgiveness of unearned advance deficiency payments
for those producers who had a 35% or greater loss in
crop yields in 1995;
a payment to producers equal to 50% of the payments
that would be made under the production flexibility
contracts;
a marketing assistance loan set at 90% of the 5 year
olympic average for wheat, feed grains, cotton, rice
and oilseeds that would continue as permanent law
beyond crop year 2002, with no Findley loan rate
adjustment authority for wheat and feed grains;
retaining the Farmer Owned Reserve;
$2.5 billion to be allocated to the Crop Insurance
Fund;
deleting the caps on the Export Enhancement Program
and the Market Promotion Program funding levels;
$2.5 billion for research, education, and extension
activities;
$2.5 billion for conservation and rural development
activities;
an additional $150 million per year to the amount
available for the Livestock Environmental Assistance
Program over the next seven years; and
authority to make new enrollments in the Conservation
Reserve Program.
Discussion occurred and by a recorded vote 18 yeas to 27
nays, the En Bloc Amendment was not adopted. See Roll Call Vote
#1.
Mr. Johnson then offered and explained an amendment
regarding loan rates for marketing assistance loans for
soybeans and other oilseeds that would have provided that such
loans be set at not less than 90% of the average price received
during the 5 previous marketing years, excluding the highest
and lowest. Discussion occurred and by a recorded vote of 20
yeas to 26 nays, the amendment was not adopted. See Roll Call
Vote #2.
Mr. Minge was then recognized to offer and explain an
amendment to strike all of Title I except for the sugar and
peanut sections and to replace it with marketing loans for
certain commodities with a loan rate of 100% of the average
price with a cap of $175,000 for such loans. Discussion
occurred and by a recorded vote of 8 yeas to 36 nays, the
amendment was not adopted. See Roll Call Vote #3.
Mr. Stenholm was then recognized to offer and explain an
amendment relating to production flexibility contracts
exemption from provisions of Budget Act sequestration actions.
Discussion occurred and without objection the amendment was
withdrawn.
Mrs. Clayton offered and explained an amendment regarding
investment for agriculture and rural America which would create
a new title VII that provided for $3.5 of funds out of the
Commodity Credit Corporation for a variety of rural development
activities, conservation, and research. Discussion occurred and
by a recorded vote of 20 yeas to 27 nays, the amendment was not
adopted. See Roll Call Vote #4.
Mr. Stenholm was recognized to offer and explain an
amendment regarding the peanut title. The amendment would--
increase the quota support rate to $640;
delete the provision that requires a 5 percent
reduction in loans to producers who reject offers from
handlers.
change the priority method for covering losses in
area pools;
change the ineligibility provisions for owning quota
to include an actively engaged standard instead of out-
of-state residency; and
change the quota transfer provisions to limit
transfers to States with more than 10,000 tons of
quota, with an overall 30 percent limit.
Mr. Stenholm requested that his amendment be divided into a
series of amendments. Discussion occurred on the first
amendment which would delete the provision that requires a 5
percent reduction in loans to producers who reject offers from
handlers. By a recorded vote of 17 yeas to 30 nays, the
amendment was not adopted. See Roll Call Vote #5. Further
discussion occurred, and Mr. Stenholm withdrew the remainder of
his amendments without objection.
Mr. Minge was then recognized to offer and explained an
amendment which would eliminate the Secretary's authority to
reduce loan rates for wheat and feed grains based on stocks to
use ratios (also known as the Findley adjustment provision).
Discussion occurred and by a voice vote, the amendment was not
adopted.
At this point, Mr. Minge then offered and explain an
amendment that provided a person with ``adjusted gross income''
in excess of $100,000 or more from off-farm sources would not
be eligible for production flexibility contract payments.
Discussion occurred and by a voice vote, the amendment was not
adopted.
Mr. Volkmer was recognized to offer and explain an
amendment that would amend the payment limitation provisions in
section 1001, 1001A, 1001B, and 1001C of the Food Security Act
of 1985 by: striking the ``three-entity rule''; requiring that
payments to corporations or other entities be directly
attributed to individual owners in proportion to their interest
in the entity; and using Social Security numbers to track
payments. Discussion occurred and by a voice vote, the
amendment was not adopted.
Mr. Peterson was then recognized to offer and explain an
amendment which would eliminate the optional contract
terminations under the Conservation Reserve Program. Discussion
occurred and by a voice the vote, the amendment was adopted.
Mr. Farr then offered and explained an amendment concerning
farmland protection and federal cost sharing for acquisition of
farmland protection easements. Discussion occurred, and the
Chairman requested that Mr. Farr withdraw his amendment, but
that his rights would be protected to offer the amendment with
the Committee when it considered further farm bill legislation
this Spring. Without objection, Mr. Farr withdrew his
amendment.
Mr. Minge was recognized to offer and explain an amendment
concerning eligible lands for enrollment in the Conservation
Reserve Program. Discussion occurred and the Chairman expressed
his desire for this type of amendment to be taken up later this
Spring in further farm bill consideration. Without objection,
Mr. Minge withdrew his amendment.
Mr. Canady was then recognized to offer and explain an
amendment on behalf of himself, Mrs. Thurman, and Mr. Foley
which would subject imported tomatoes to the same packing
requirements as those imposed on the domestic industry.
Discussion occurred with the Chairman noting that the Committee
on Agriculture and the Committee on Ways and Means share
jurisdiction over this issue. Mr. Canady, without objection,
withdrew the amendment.
Mr. Johnson was recognized to offer and explain an
amendment which would establish a Commission on Concentration
in the Livestock Industry. The Chairman noted that this issue
was also one which shared jurisdiction by both the Agriculture
Committee and the Judiciary Committee. Discussion occurred and
without objection, the amendment was withdrawn.
Mr. Emerson was then recognized to offer and explain an
amendment on behalf of himself, Mr. Roberts, and Mr. Condit to
extend the authority of the Secretary of Agriculture and the
Administrator of the Agency for International Development to
enter into agreements and provide assistance under the Food for
Peace Program and the Food for Progress programs through year
1996. Discussion occurred and by a voice vote the amendment was
adopted.
Mr. Emerson then moved that the Amendment in the Nature of
a Substitute to H.R. 2854, as amended, be adopted and favorably
reported to the House. By a recorded vote of 29 yeas to 17
nays, and in the presence of a quorum, H.R. 2854, as amended,
was ordered favorably reported to the House. See Roll Call Vote
#6.
Mr. Volkmer indicated that there would be Minority Views
and objected to a waiver of the three-day rule, but did
indicate to make every effort to have the views as quickly as
possible.
Without objection, Mr. Barrett asked unanimous consent to
be recorded as a yea vote of favorably reporting the bill to
the House.
Mr. Emerson then made a motion to authorize the Chairman to
offer such motions as may be necessary in the House to go to
conference with the Senate on H.R. 2854 or a similar Senate
bill. Without objection the motion was agreed to.
The Chairman then thanked the Members and adjourned the
meeting subject to the call of the Chair.
rollcall votes
In compliance with clause 2(l)(2)(B) of rule XI of the
House of Representatives, the Committee sets forth the record
of the following rollcall votes taken with respect to H.R.
2854:
Rollcall No. 1
Summary: Pomeroy-Dooley-Johnson En Bloc Amendment.
Offered By: Mr. Dooley.
Results: Failed by rollcall vote: 18 yeas/27 nays/4 not
voting.
Yeas: Cong. de la Garza, Cong. Brown, Cong. Rose, Cong.
Stenholm, Cong. Volkmer, Cong. Johnson, Cong. Dooley, Cong.
Clayton, Cong. Minge, Cong. Hilliard, Cong. Pomeroy, Cong.
Holden, Cong. Baesler, Cong. Thurman, Cong. Bishop, Cong. Farr,
Cong. Pastor, and Cong. Baldacci.
Nays: Cong. Emerson, Cong. Gunderson, Cong. Combest, Cong.
Allard, Cong. Barrett, Cong. Ewing, Cong. Doolittle, Cong.
Goodlatte, Cong. Pombo, Cong. Canady, Cong. Smith, Cong.
Everett, Cong. Lucas, Cong. Lewis, Cong. Baker, Cong. Crapo,
Cong. Calvert, Cong. Chenoweth, Cong. Hostettler, Cong. Bryant,
Cong. Latham, Cong. Cooley, Cong. Foley, Cong. Chambliss, Cong.
LaHood, Cong. Peterson, and Cong. Roberts, Chairman.
Not voting: Cong. Boehner, Cong. Condit, and Cong.
McKinney, Cong. Thompson.
Rollcall No. 2
Summary: Amendment concerning loan rates for marketing
assistance loans for soybeans and other oilseeds.
Offered By: Mr. Johnson.
Results: Failed by a rollcall vote: 20 yeas/26 nays/3 not
voting.
Yeas: Cong. de la Garza, Cong. Brown, Cong. Rose, Cong.
Stenholm, Cong. Volkmer, Cong. Johnson, Cong. Condit, Cong.
Peterson, Cong. Dooley, Cong. Clayton, Cong. Minge, Cong.
Hilliard, Cong. Pomeroy, Cong. Holden, Cong. Baesler, Cong.
Thurman, Cong. Bishop, Cong. Farr, Cong. Pastor, and Cong.
Baldacci.
Nays: Cong. Emerson, Cong. Gunderson, Cong. Combest, Cong.
Allard, Cong. Barrett, Cong. Ewing, Cong. Doolittle, Cong.
Goodlatte, Cong. Pombo, Cong. Canady, Cong. Smith, Cong.
Everett, Cong. Lucas, Cong. Lewis, Cong. Baker, Cong. Crapo,
Cong. Calvert, Cong. Chenoweth, Cong. Hostettler, Cong. Bryant,
Cong. Latham, Cong. Cooley, Cong. Foley, Cong. Chambliss, Cong.
LaHood, and Cong. Roberts, Chairman.
Not voting: Cong. Boehner, Cong. McKinney, and Cong.
Thompson.
Rollcall No. 3
Summary: Amendment to strike all of title I, Agricultural
Market Transition Programs, except for those provisions
concerning sugar and peanuts and to replace with marketing
loans for certain commodities.
Offered By: Mr. Minge.
Results: Failed by a rollcall vote: 8 yeas/36 nays/5 not
voting.
Yeas: Cong. Volkmer, Cong. Johnson, Cong. Peterson, Cong.
Clayton, Cong. Minge, Cong. Hilliard, Cong. Pomeroy, and Cong.
Holden.
Nays: Cong. Emerson, Cong. Gunderson, Cong. Combest, Cong.
Allard, Cong. Barrett, Cong. Ewing, Cong. Doolittle, Cong.
Goodlatte, Cong. Pombo, Cong. Canady, Cong. Smith, Cong.
Everett, Cong. Lucas, Cong. Lewis, Cong. Baker, Cong. Crapo,
Cong. Calvert, Cong. Chenoweth, Cong. Hostettler, Cong. Bryant,
Cong. Latham, Cong. Cooley, Cong. Foley, Cong. Chambliss, Cong.
LaHood, Cong. de la Garza, Cong. Rose, Cong. Stenholm, Cong.
Dooley, Cong. Baesler, Cong. Thurman, Cong. Bishop, Cong. Farr,
Cong. Pastor, Cong. Baldacci, and Cong. Roberts, Chairman.
Not voting: Cong. Boehner, Cong. Brown, Cong. Condit, Cong.
McKinney, and Cong. Thompson.
Rollcall No. 4
Summary: Amendment to create a new title VII that provided
for $3.5 billion of funds out of the CCC for a variety of rural
development type activities.
Offered By: Mrs. Clayton.
Results: Failed by a rollcall vote: 20 yeas/27 nays/2 not
voting.
Yeas: Cong. de la Garza, Cong. Brown, Cong. Rose, Cong.
Stenholm, Cong. Volkmer, Cong. Johnson, Cong. Peterson, Cong.
Dooley, Cong. Clayton, Cong. Minge, Cong. Hilliard, Cong.
Pomeroy, Cong. Holden, Cong. Baesler, Cong. Thurman, Cong.
Bishop, Cong. Thompson, Cong. Farr, Cong. Pastor, and Cong.
Baldacci.
Nays: Cong. Emerson, Cong. Gunderson, Cong. Combest, Cong.
Allard, Cong. Barrett, Cong. Boehner, Cong. Ewing, Cong.
Doolittle, Cong. Goodlatte, Cong. Pombo, Cong. Canady, Cong.
Smith, Cong. Everett, Cong. Lucas, Cong. Lewis, Cong. Baker,
Cong. Crapo, Cong. Calvert, Cong. Chenoweth, Cong. Hostettler,
Cong. Bryant, Cong. Latham, Cong. Cooley, Cong. Foley, Cong.
Chambliss, Cong. LaHood, and Cong. Roberts, Chairman.
Not voting: Cong. Condit and Cong. McKinney.
Rollcall No. 5
Summary: Amendment to the Peanut Title.
Offered By: Mr. Stenholm.
Results: Failed by a rollcall vote: 17 yeas/30 nays/2 not
voting.
Yeas: Cong. de la Garza, Cong. Brown, Cong. Rose, Cong.
Stenholm, Cong. Volkmer, Cong. Johnson, Cong. Peterson, Cong.
Clayton, Cong. Hilliard, Cong. Pomeroy, Cong. Baesler, Cong.
Thurman, Cong. Thompson, Cong. Farr, Cong. Pastor, and Cong.
Baldacci.
Nays: Cong. Emerson, Cong. Gunderson, Cong. Combest, Cong.
Allard, Cong. Barrett, Cong. Boehner, Cong. Ewing, Cong.
Doolittle, Cong. Goodlatte, Cong. Pombo, Cong. Canady, Cong.
Smith, Cong. Everett, Cong. Lucas, Cong. Lewis, Cong. Baker,
Cong. Crapo, Cong. Calvert, Cong. Chenoweth, Cong. Hostettler,
Cong. Bryant, Cong. Latham, Cong. Cooley, Cong. Foley, Cong.
Chambliss, Cong. LaHood, Cong. Dooley, Cong. Holden, Cong.
Bishop, and Cong. Roberts, Chairman.
Not voting: Cong. Condit and Cong. McKinney.
Rollcall No. 6
Summary: Final Passage on the Amendment in the Nature of a
Substitute to H.R. 2854, as amended.
Offered By: Mr. Roberts.
Results: Adopted by a rollcall vote: 29 yeas/17 nays/3 not
voting.
Yeas: Cong. Emerson, Cong. Gunderson, Cong. Combest, Cong.
Allard, Cong. Barrett, Cong. Boehner, Cong. Ewing, Cong.
Goodlatte, Cong. Pombo, Cong. Canady, Cong. Smith, Cong.
Everett, Cong. Lucas, Cong. Lewis, Cong. Baker, Cong. Crapo,
Cong. Calvert, Cong. Chenoweth, Cong. Hostettler, Cong. Bryant,
Cong. Latham, Cong. Cooley, Cong. Foley, Cong. Chambliss, Cong.
LaHood, Cong. Condit, Cong. Peterson, Cong. Bishop, and Cong.
Roberts, Chairman.
Nays: Cong. de la Garza, Cong. Brown, Cong. Stenholm, Cong.
Volkmer, Cong. Johnson, Cong. Dooley, Cong. Clayton, Cong.
Minge, Cong. Hilliard, Cong. Pomeroy, Cong. Holden, Cong.
Baesler, Cong. Thurman, Cong. Thompson, Cong. Farr, Cong.
Pastor, and Cong. Baldacci.
Not voting: Cong. Doolittle, Cong. Rose, and Cong.
McKinney.
Administration Position
The views of the Administration on H.R. 2854, as amended,
to modify the operation of certain agricultural programs, was
not received prior to the filing of this report.
However, the views of the Administration on H.R. 2854 prior
to Committee consideration are set forth in the following
letter to the Chairman of the Committee on Agriculture:
Department of Agriculture,
Office of the Secretary,
Washington, DC, January 30, 1996.
Hon. Pat Roberts,
Chairman, Committee on Agriculture,
House of Representatives, Longworth House Office Building, Washington,
DC.
Dear Mr. Chairman: This is in response to your request for
the Department of Agriculture's comments on H.R. 2854, a bill
``To modify the operation of certain agricultural programs.''
The Administration recognizes the need for legislation to
reauthorize the farm programs, either through an extension of
existing legislation or a new bill acceptable to the
Administration. However, the Department does not support
enactment of this legislation in its present form.
H.R. 2854, the ``Agricultural Market Transition Act,''
provides some positive features. The Clinton Administration has
long supported the concept of increased planting flexibility so
farmers can plant for the market, not for the Government. This
bill also ensures a set level of funding to rural America.
This Administration is committed to developing agricultural
policy legislation that fulfills three basic principles in
order to enhance the economic opportunities and environment for
farmers and other residents of rural America: (1) preservation
of a responsible safety net for farmers; (2) promotion of
exports and maintenance of a vibrant rural economy; and (3)
protection and enhancement of the rural environment. We
continue to have serious concerns regarding H.R. 2854's ability
to satisfy these principles.
H.R. 2854 contains essentially the same provisions, with
minor revisions, as the Agricultural Reconciliation Act of
1995, which I recommended that President Clinton veto. We
recommend supplementing farm income through a countercyclical
program of income support payments, so that help is provided
where there is the most need. We do not believe that producers
should be provided a windfall when prices are strong, as H.R.
2854 does.
We do understand that some farmers may not benefit from
high market prices because of low yields and little production.
That is why we continue to support maintaining the linkage
between crop insurance and program participation, with
necessary modifications to reduce paperwork requirements. H.R.
2854 undoes the crop insurance reforms that Congress enacted,
just one year ago, with widespread bipartisan support.
H.R. 2854 caps the level of marketing loans for wheat and
feed grains. Enhancing these loan rates, and removing the caps,
would help strengthen the safety net for farmers.
We are in general agreement with the elimination of
authority for commodity acreage reduction programs. However,
given the unpredictability of agricultural production, we
believe that there should be standby authority to implement
supply controls as a last resort when supply and demand are
critically out of balance.
One essential component of a safety net for American
agriculture is the existence of permanent authority to carry
out commodity programs beyond the year 2002. H.R. 2854 repeals
current permanent authority. We would recommend permanent
authority for programs after the expiration of the provisions
of H.R. 2854.
We believe that, instead of providing producers windfall
gains, resources must be directed to those needs that will make
agriculture strong and ensure a vibrant rural economy. We
strongly support providing adequate support for priorities in
conservation, research, rural development, export
opportunities, and innovative partnerships with farmers to
share agriculture's risks. The Administration's ``Fund for
Rural America'' proposal would accomplish this goal.
There are a number of other provisions affecting
conservation programs which the Department believes should be
modified. We generally agree with capping Conservation Reserve
Program (CRP) enrollment at 36.4 million acres, and providing
authority for early termination of CRP contracts. However, we
strongly recommend also providing authority for the Department
to enroll new acres in the CRP so that additional
environmentally valuable or fragile cropland can be retired
from production. We do not support the 60-day notice of early
release without restrictions. The Secretary of Agriculture
should be given authority to establish reasonable limits on
what land now enrolled in CRP contracts should be subject to
early release, including the authority to deny requests from
producers for termination of their CRP contracts.
We support the concept of the Livestock Environmental
Assistance Program (LEAP). However, this program could be
enhanced considerably if eligibility were expanded to include
the Environmental Quality Incentives Program (EQIP). Such
expansion in eligibility should also be accompanied by an
increase in funding authority. We also recommend that the size
limitations be eliminated so that the Secretary of Agriculture
would have more administrative flexibility in determining
eligibility for assistance.
We also support the change in use of Commodity Credit
Corporation (CCC) funds for conservation programs. It is
important that adequate funding for CRP be assured, which H.R.
2854 accomplishes. We note, however, that subsections (a) and
(c) of section 201 of the bill would amend section 1241 of the
Food Security Act of 1985 in a conflicting manner. Subsection
(a) would allow the use of CCC funds for CRP, the Wetland
Reserve Program (WRP), and LEAP without the need for annual
appropriations. Subsection (c), however, would require annual
appropriations to CCC for WRP and LEAP.
The Department does not support the elimination of
authority for permanent easements for WRP. In some cases,
restoring lands, like bottomland hardwoods, to full wetland
functions and values may require longer time periods. We
believe landowners should have the option of obtaining
permanent and 30-year easements.
The funding levels for the Export Enhancement Program (EEP)
under H.R. 2854 are $1.58 billion below the U.S. subsidy value
commitments under the Uruguay Round Agreement. The adoption of
H.R. 2854 would greatly limit the ability of the Department to
assist U.S. agricultural exports in years with high levels of
accumulated stocks, within the allowable limits of the Uruguay
Round Agreement. The funding reductions for EEP from allowable
limits occur for fiscal years 1996 through 1999, whereas the
authorized levels for EEP in fiscal years 2000 through 2002 are
the same as the U.S. Uruguay Round Agreement commitments.
Likewise, H.R. 2854 establishes a ceiling on funding for
the Market Promotion Program (MPP) from the current level of
$110 million to $100 million. The MPP is the Department's major
export assistance program for processed and high value
agricultural products. The Department opposes the establishment
of a spending ceiling in H.R. 2854 for both the EEP and the
MPP.
The Department supports section 402 of the bill, which
positively affects the Agricultural Quarantine and Inspection
program by ensuring it provides industry with the level of
service it is paying for. We understand that the Committee has
addressed the Pay-As-You-Go issue through its internal budget
process.
The Department also supports elimination of the honey
program.
H.R. 2854 also contains other provisions with which the
Department has concerns. We do not support elimination of the
Emergency Livestock Assistance Program. Instead, we recommend
maintaining the program, but denying eligibility when
qualifying losses are covered by crop insurance. The Department
also recommends that the Farmer-owned Reserve be maintained,
but with additional reforms designed to maintain stable grain
markets. Also, we believe that the prohibition of using CCC
funds for salaries and expenses, if not combined with an
increase in USDA's discretionary funding, could adversely
affect the Department's ability to efficiently administer
agricultural programs in a timely manner.
H.R. 2854 still fails to address some important areas. In
particular, there are no provisions to reauthorize dairy
legislation. Many reforms in conservation programs, such as
more farmer-friendly procedures for conservation compliance
violations, are also not addressed. And, research funding and
policies are absent from the bill.
Because of the fundamental change in program structure,
implementation of this bill would pose many significant
hurdles. The requirement to have producers sign a 7-year Market
Transition Contract by April 15, 1996, is becoming more
impractical with the passage of time without a farm bill. Many
producers who lease land are very concerned about the ability
to obtain agreement with their landlords for a 7-year contract.
The Office of Management and Budget advises that there is
no objection to the presentation of this report from the
standpoint of the Administration's program.
Sincerely,
Dan Glickman, Secretary.
Budget Act Compliance (Section 308 and Section 403)
The provisions of clause 2(l)(3)(B) of rule XI of the Rules
of the House of Representatives and section 308(a) of the
Congressional Budget Act of 1974 (relating to estimates of new
budget authority, new spending authority, or new credit
authority, or increased or decreased revenues or tax
expenditures) are not considered applicable. The estimate and
comparison required to be prepared by the Director of the
Congressional Budget Office under clause 2(l)(C)(3) of rule XI
of the Rules of the House of Representatives and section 403 of
the Congressional Budget Act of 1974 submitted to the Committee
prior to the filing of this report are as follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, January 31, 1996.
Hon. Pat Roberts,
Chairman, Committee on Agriculture,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office (CBO)
has reviewed H.R. 2854, a bill to modify the operation of
certain agricultural programs, as ordered reported by the House
Committee on Agriculture on January 30, 1996. This estimate is
based on language provided by committee staff on January 31,
1996.
We estimate that enacting H.R. 2824 would reduce federal
outlays over the 1996-2002 period by changing selected
commodity, conservation, and export programs. Relative to the
baseline underlying the Fiscal Year 1996 Budget Resolution, we
estimate cumulative savings in federal agriculture spending of
$12.8 billion over the 1996-2002 period. Under the assumptions
of the updated CBO baseline completed in December 1995,
reflecting more current conditions in agricultural markets, we
estimate cumulative savings of $5.4 billion over the same
period. These amounts would be reductions in direct spending;
therefore, pay-as-you-go procedures would apply to the bill.
In preparing this estimate, we assumed that the bill will
be enacted by April 1, 1996; the estimate could change if the
bill is enacted later.
Attachment 1 provides our estimate of the bill's impact on
the federal budget. Table 1 is a summary of the estimated
effects on spending by the Commodity Credit Corporation (CCC)
under the two different sets of assumptions. Under budget
resolution assumptions, baseline spending by the CCC totals
$56.6 billion over the seven-year period. The bill would reduce
those outlays by an estimated $11.8 billion. Under December
baseline assumptions, CCC spending totals $48.7 billion over
seven years, and estimated savings from enacting the bill would
be $4.4 billion.
Table 2 details the estimated effects of major provisions
relative to the budget resolution baseline, while Table 3 shows
the estimated effects relative to CBO's December 1995 baseline.
CBO has determined that enacting H.R. 2854 would impose
private sector mandates as defined in Public Law 104-4, and
Attachment 2 provides our analysis of those mandates.
H.R. 2854 contains no intergovernmental mandates, as
defined in Public Law 104-4, that impose any significant costs
on state, local, or tribal governments. The bill would,
however, result in reduced federal payments to state, local,
and tribal governments that own farm land and receive subsidy
payments. Public entities would no longer receive any price
support payments under the peanut program as a result of this
bill. Further, they would bear a small share of the cuts in
other farm programs. CBO has not completed an estimate of the
impact of these changes on state, local, and tribal
governments.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are David Hull,
Craig Jagger, and Victoria Heid, Roger Hitchner, and, for
intergovernmental impacts, Marjorie Miller.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
Attachments.
REPLACEMENT FOR TABLE 1, INCORPORATING AMENDMENTS PROVIDED ON FEBRUARY 2, 1996--ESTIMATED EFFECTS OF H.R. 2854
ON THE COMMODITY CREDIT CORPORATION (CCC)
[In millions of dollars, by fiscal year]
----------------------------------------------------------------------------------------------------------------
1996-2002
1996 1997 1998 1999 2000 2001 2002 total
----------------------------------------------------------------------------------------------------------------
ESTIMATES RELATIVE TO THE BUDGET RESOLUTION BASELINE
Spending Under Current Law:
Estimated budget authority 8,891 8,736 8,614 8,402 8,193 7,830 7,737 58,403
Estimated outlays......... 8,612 8,515 8,372 8,157 7,928 7,561 7,468 56,612
Proposed Changes:
Estimated budget authority -682 -1,646 -1,280 -1,392 -1,570 -2,495 -2,589 -11,654
Estimated outlays......... -759 -1,664 -1,294 -1,401 -1,576 -2,498 -2,590 -11,782
Spending Under H.R. 2854:
Estimated budget authority 8,209 7,090 7,334 7,010 6,623 5,335 5,148 46,749
Estimated outlays......... 7,853 6,851 7,078 6,756 6,352 5,063 4,878 44,830
ESTIMATES RELATIVE TO THE CBO DECEMBER 1995 BASELINE
Spending Under Current Law:
Estimated budget authority 4,069 5,852 8,216 8,445 8,085 7,911 7,882 50,459
Estimated outlays......... 3,790 5,631 7,073 8,200 7,820 7,642 7,613 18,668
Proposed Changes:
Estimated budget authority 3,219 1,128 -831 -1,368 -1,414 -2,388 -2,648 -4,302
Estimated outlays......... 3,142 1,110 -845 -1,377 -1,420 -2,391 -2,649 -4,430
Spending Under H.R. 2854:
Estimated budget authority 7,288 6,980 7,385 7,077 6,671 5,523 5,234 46,157
Estimated outlays......... 6,932 6,741 7,128 6,823 6,400 5,251 4,964 44,238
----------------------------------------------------------------------------------------------------------------
Note.--Includes spending for programs covered by the CCC Fund account, plus the export guarantee liquidating and
subsidy accounts. Program changes in the bill that have an estimated budgetary impact but are excluded from
this table are those dealing with crop insurance, seed disaster, Agricultural Quarantine Inspection Fund, the
Wetlands Reserve Program (WRP) and the Conservation Reserve Program (CRP). Provisions in the bill make it
unclear whether the CRP and WRP should continue outside of, or be moved into, the CCC.
REPLACEMENT FOR TABLE 2, INCORPORATING AMENDMENTS PROVIDED ON FEBRUARY 2, 1996--ESTIMATED BUDGETARY EFFECTS OF
H.R. 2854, RELATIVE TO THE FISCAL YEAR 1996 BUDGET RESOLUTION BASELINE
[In millions of dollars, by fiscal year]
----------------------------------------------------------------------------------------------------------------
1996-2002
1996 1997 1998 1999 2000 2001 2002 total
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Freedom to Farm contracts in
lieu of deficiency payments:
Estimated budget authority -595 -848 -851 -984 -1,241 -2,045 -2,036 -8,600
Estimated outlays......... -595 -848 -851 -984 -1,241 -2,045 -2,036 -8,600
Cap crop price-support loan
rates:
Estimated budget authority -16 85 35 -70 -49 -55 -38 -108
Estimated outlays......... -16 85 35 -70 -49 -55 -38 -108
Cap seven-year cotton Step-2
payments at $701 million:
Estimated budget authority ........ 1 2 2 2 -69 -116 -178
Estimated outlays......... ........ 1 2 2 2 -69 -116 -178
End cotton 8-month loan
extension:
Estimated budget authority ........ -55 -5 -5 -5 -2 0 -72
Estimated outlays......... ........ -55 -5 -5 -5 -2 0 -72
Prohibit use of CCC funds for
administrative expenses:
Estimated budget authority -27 -177 -42 -40 -41 -41 -41 -409
Estimated outlays......... -27 -177 -42 -40 -41 -41 -41 -409
Reform peanut program:
Estimated budget authority ........ -95 -69 -69 -67 -68 -66 -434
Estimated outlays......... ........ -95 -69 -69 -67 -68 -66 -434
Reform sugar program
(increased assessments):
Estimated budget authority ........ -8 -8 -8 -9 -9 -9 -51
Estimated outlays......... ........ -8 -8 -8 -9 -9 -9 -51
End emergency feed assistance
programs:
Estimated budget authority -40 -80 -80 -80 -80 -80 -80 -520
Estimated outlays......... -40 -80 -80 -80 -80 -80 -80 -520
End honey program:
Estimated budget authority ........ ........ ........ -1 -2 ........ ........ -3
Estimated outlays......... ........ ........ ........ -1 -2 ........ ........ -3
End Farmer-Owned Reserve:
Estimated budget authority ........ -18 -18 -18 -18 -18 -18 -108
Estimated outlays......... ........ -18 -18 -18 -18 -18 -18 -108
Livestock Environmental
Assistance Program:
Estimated budget authority 100 100 100 100 100 100 100 700
Estimated outlays......... 23 82 86 91 94 97 99 572
Dairy Program changes:
Estimated budget authority 72 29 -13 -39 -110 -158 -235 -454
Estimated outlays......... 72 29 -13 -39 -110 -158 -235 -454
Limit CRP to 36.4 million
acres:
Estimated budget authority ........ -41 -118 -109 -102 -100 -99 -569
Estimated outlays......... ........ -41 -118 -109 -102 -100 -99 -569
Cap WRP acreage and limit
easements:
Estimated budget authority -24 -66 -66 -66 -66 54 54 -180
Estimated outlays......... -3 -47 -90 -94 -92 -74 13 -387
Reduce Market Promotion
Program spending:
Estimated budget authority -1 -8 -10 -10 -10 -10 -10 -59
Estimated outlays......... -1 -8 -10 -10 -10 -10 -10 -59
Cap Export Enhancement Program
spending:
Estimated budget authority -165 -532 -281 -130 0 0 0 -1,108
Estimated outlays......... -165 -532 -281 -130 0 0 0 -1,108
End mandatory crop insurance
catastrophic coverage:
Estimated budget authority -5 -27 -28 -28 -29 -29 -29 -175
Estimated outlays......... -2 -13 -28 -28 -29 -29 -29 -158
Provide disaster assistance
for seed crops:
Estimated budget authority 7 7 7 7 7 7 7 49
Estimated outlays......... 3 7 7 7 7 7 7 45
Direct access to Agricultural
Quarantine Inspection Fund:
Estimated budget authority 8 9 10 10 13 17 21 88
Estimated outlays......... 8 9 10 10 13 17 21 88
Increase CCC commodity loan
interest rate:
Estimated budget authority -10 -40 -40 -40 -40 -40 -40 -250
Estimated outlays......... -10 -40 -40 -40 -40 -40 -40 -250
Total Changes in Direct
Spending:
Estimated budget authority -696 -1,764 -1,475 -1,578 -1,747 -2,546 -2,635 -12,441
Estimated outlays......... -753 -1,749 -1,513 -1,615 -1,779 -2,677 -2,677 -12,763
----------------------------------------------------------------------------------------------------------------
Notes.--1. H.R. 2854 was ordered reported on January 30, 1996, by the House Committee on Agriculture. CBO based
initial estimates on the bill as introduced, with information from committee staff on amendments adopted. This
replacement table was based on additional technical staff amendments received on February 2, 1996.
2. This bill would also affect sending subject to appropriations but CBO has not completed an estimate of
potential changes in discretionary spending that might result from enacting the bill.
REPLACEMENT FOR TABLE 3, INCORPORATING AMENDMENTS PROVIDED ON FEBRUARY 2, 1996--ESTIMATED BUDGETARY EFFECTS OF
H.R. 2854, RELATIVE TO THE CBO DECEMBER 1995 BASELINE
[In millions of dollars, by fiscal year]
----------------------------------------------------------------------------------------------------------------
1996-2002
1996 1997 1998 1999 2000 2001 2002 total
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Freedom to Farm contracts in
lieu of deficiency payments:
Estimated budget authority 3,149 1,907 -165 -779 -1,098 -1,955 -2,072 -1,013
Estimated outlays......... 3,149 1,907 -165 -779 -1,098 -1,955 -2,072 -1,013
Marketing loan cost effects of
planting provisions:
Estimated budget authority -6 13 1 208 269 229 128 842
Estimated outlays......... -6 13 1 208 269 229 128 842
Cap crop price-support loan
rates:
Estimated budget authority -5 -177 -192 -422 -250 -249 -149 -1,444
Estimated outlays......... -5 -177 -192 -422 -250 -249 -149 -1,444
Cap seven-year cotton Step-2
payments at $701 million:
Estimated budget authority ........ ........ 1 1 1 1 -88 -84
Estimated outlays......... ........ ........ 1 1 1 1 -88 -84
End cotton 8-month loan
extension:
Estimated budget authority ........ -55 -5 -5 -5 -5 -2 -77
Estimated outlays......... ........ -55 -5 -5 -5 -5 -2 -77
Prohibit use of CCC funds for
administrative expenses:
Estimated budget authority -27 -177 -42 -40 -41 -41 -41 -409
Estimated outlays......... -27 -177 -42 -40 -41 -41 -41 -409
Reform peanut program:
Estimated budget authority ........ -85 -67 -61 -66 -62 -71 -412
Estimated outlays......... ........ -85 -67 -61 -66 -62 -71 -412
Reform sugar program
(increased assessments):
Estimated budget authority ........ -8 -8 -8 -9 -9 -9 -51
Estimated outlays......... ........ -8 -8 -8 -9 -9 -9 -51
End emergency feed assistance
programs:
Estimated budget authority -40 -80 -80 -80 -80 -80 -80 -520
Estimated outlays......... -40 -80 -80 -80 -80 -80 -80 -520
End honey program:
Estimated budget authority ........ -1 ........ -1 -1 -1 -1 -5
Estimated outlays......... ........ -1 ........ -1 -1 -1 -1 -5
End Farmer-Owned Reserve:
Estimated budget authority ........ ........ -9 -18 -18 -18 -18 -81
Estimated outlays......... ........ ........ -9 -18 -18 -18 -18 -81
Dairy Program changes:
Estimated budget authority 59 0 -34 -83 -166 -248 -295 -767
Estimated outlays......... 59 0 -34 -83 -166 -248 -295 -767
Livestock Environmental
Assistance Program:
Estimated budget authority 100 100 100 100 100 100 100 700
Estimated outlays......... 23 82 86 91 94 97 99 572
Limit CRP to 36.4 million
acres:
Estimated budget authority ........ -41 -119 -111 -103 -102 -101 -577
Estimated outlays......... ........ -41 -119 -111 -103 -102 -101 -577
Cap WRP acreage and limit
easements:
Estimated budget authority -24 -66 -66 -66 -66 54 54 -180
Estimated outlays......... -3 -47 -90 -94 -92 -74 13 -387
Reduce Market Promotion
Program spending:
Estimated budget authority -1 -8 -10 -10 -10 -10 -10 -59
Estimated outlays......... -1 -8 -10 -10 -10 -10 -10 -59
Cap Export Enhancement Program
spending:
Estimated budget authority ........ -261 -281 -130 0 0 0 -672
Estimated outlays......... ........ -261 -281 -130 0 0 0 -672
End mandatory crop insurance
catastrophic coverage:
Estimated budget authority -5 -27 -28 -28 -29 -29 -29 -175
Estimated outlays......... -2 -13 -28 -28 -29 -29 -29 -158
Provide disaster assistance
for seed crops:
Estimated budget authority 7 7 7 7 7 7 7 49
Estimated outlays......... 3 7 7 7 7 7 7 45
Direct access to Agricultural
Quarantine Inspection Fund:
Estimated budget authority 14 15 16 16 19 23 27 130
Estimated outlays......... 14 15 16 16 19 23 27 130
Increase CCC commodity loan
interest rate:
Estimated budget authority -10 -40 -40 -40 -40 -40 -40 -250
Estimated outlays......... -10 -40 -40 -40 -40 -40 -40 -250
Total Changes in Direct
Spending:
Estimated budget authority 3,211 1,016 -1,021 -1,550 -1,586 -2,435 -2,690 -5,055
Estimated outlays......... 3,154 1,031 -1,059 -1,587 -1,618 -2,566 -2,732 -5,377
----------------------------------------------------------------------------------------------------------------
Notes.--1. H.R. 2854 was ordered reported on January 30, 1996, by the House Committee on Agriculture. CBO based
initial estimates on the bill as introduced, with information from committee staff on amendments adopted. This
replacement table was based on additional technical staff amendments received on February 2, 1996.
2. This bill would also affect spending subject to appropriations but CBO has not completed an estimate of
potential changes in discretionary spending that might result from enacting the bill.
congressional budget office estimate of costs of private sector
mandates
1. Bill number: H.R. 2854.
2. Bill title: Agricultural Market Transition Act.
3. Bill status: As ordered reported by the House Committee
on Agriculture on January 30, 1996.
4. Bill purpose: This bill would reauthorize and reform
federal programs supporting prices and incomes of producers of
certain grains, peanuts, sugar, cotton, and dairy products. The
bill would also affect conservation, export promotion, and
agricultural insurance programs.
5. Private sector mandates contained in bill: This bill
would impose new fees on sugar producers and importers of dairy
products. It also contains requirements that would increase the
costs of processing and handling milk and reduce the net
returns of some producers of milk.
6. Estimated direct cost to the private sector: CBO
estimates the direct costs of the private sector mandates
identified in this bill would exceed $800 million annually for
the next two years and $400 million annually thereafter. The
most costly mandate would require that milk sold for fluid uses
contain greater amounts of nonfat solids than currently
required. Private sector mandates identified by CBO are
described below. Estimated costs of mandates to the private
sector are included when possible. The bill would affect
businesses and consumers in many ways other than through the
mandates it contains. Estimates described below are of the
direct costs of mandates only, not of the more general effects
on the private sector.
Title I--Agricultural Market Transition Program
Section 107 would increase marketing assessments on the
processors of sugar cane and sugar beets. The marketing
assessment on sugar cane would increase from 1.1 percent of the
nonrecourse loan rate to 1.375 percent beginning in 1997. The
marketing assessment on sugar beets would increase from 1.1794
percent of the nonrecourse loan rate to 1.47425, also beginning
in 1997. CBO estimates that processors of sugar cane and sugar
beets would pay an additional $8 million annually during the
1997-1999 period and an additional $9 million each year
thereafter. Some of this increase would be passed on to users
of sugar and sugar-containing products in the United States.
Title II--Dairy
Section 204 would extend a dairy promotion assessment to
imports of dairy products. Importers would be required to pay
1.2 cents per pound of total milk solids contained in the
imported product (or 15 cent per hundredweight of milk
contained in the product, whichever is less) to a fund
administered by the Dairy Promotion Board. These funds are used
mainly to promote consumption of milk and milk products. The
annual cost of importers is estimated to be less than $5
million.
Section 205 would increase the minimum level of nonfat
solids required in fluid milk products. The current federal
standard for nonfat solids in milk is 8.25 percent by weight.
This section would increase this standard to 8.8 percent for
whole milk, 10 percent for low-fat (or ``2 percent'') milk, 11
percent for light (or ``1 percent'') milk, and 9 percent for
nonfat or skim milk. The standards now in force are typically
exceeded, but average levels of nonfat solids fall short of the
proposed standards in all areas of the country except
California. The state of California imposes standards similar
to those in this bill. Increasing the amount of nonfat solids
in fluid milk products raises costs for handlers and processors
of fluid milk because they must buy additional solids and pay
higher processing costs. CBO estimates that the annual cost of
the new standards would be between $400 million and $600
million. Most analysts believe that the bulk of such costs
would be passed on to consumers in higher prices for fluid
milk.
Section 207 would establish a minimum price that handlers
and processors of milk must pay producers for milk used in
fluid products (Class I milk). The minimum price would be in
effect for two years. Under current law, the minimum price paid
for Class I milk varies monthly, and is determined as a fixed
differential from the price paid for milk used primarily for
cheese (the Basic Formula Price). The Basic Formula Price and,
thus the Class I price, moves up and down with changes in
market conditions. The new minimum price would not affect milk
prices now, but would prevent downward movements that would
very likely occur during the two-year period that the provision
would be in effect. CBO estimates that this provision would
increase costs for handlers and processors over the next two
years. Annual additional costs could range between $400 million
and $500 million during this period. Most such costs would be
passed on to consumers in higher prices for fluid milk.
Section 207 also creates a temporary national Class I pool
that would redistribute money from dairy producers in areas
where there is a relatively high Class I use of milk to areas
where there is a relatively low Class I use. Class I includes
fluid uses of milk, Class II includes soft products (ice cream
and yogurt), and Class III/III-A includes hard products
(cheese, butter, and dry milk). An example of an area with high
Class I use is the Southeast, where Class I use may exceed 75
percent of milk produced in the region. This contrasts with the
Upper Midwest where less than 20 percent of milk is used for
fluid purposes.
This section would require that $0.80 per hundredweight of
milk used for Class I uses be collected each month (through the
system of federal marketing orders that regulate milk prices).
This amount of money, which could total $400 million annually,
would then be redistributed to dairy producers (again through
their marketing orders) according to their share of total
production. This mandate would have no net cost to dairy
producers as a group. It would have a net cost to producers in
areas with relatively high Class I use of milk and a net
benefit to producers in areas with relatively low Class I use.
Section 208 would define a new class of milk (Class IV--
milk used in butter, butter oil, and dry milk). It would also
create a temporary national pool that would redistribute money
from dairy producers in areas with low Class IV use to areas
with high Class IV use. The amount collected and redistributed
would depend on market prices of nonfat dry milk and butter.
CBO has not estimated the amount of funds involved. Like the
Class I pool discussed above, however, there is no net cost of
this provision to dairy producers as a whole, though producers
in some areas would pay and producers in other areas would
benefit.
7. Previous CBO estimate: None
8. Estimate prepared by: Roger Hitchner and Jean Wooster.
9. Estimate approved by: Jan Acton, Assistant Director for
Natural Resources and Commerce.
Inflationary Impact Statement
Pursuant to class (2)(l)(4) of rule XI of the Rules of the
House of Representatives, the Committee estimates that
enactment of H.R. 2854, as amended, will have no inflationary
impact on the national economy.
oversight statement
No summary of oversight findings and recommendations made
by the Committee on Government Reform and Oversight under
clause 2(l)(3)(D) of rule XI of the Rules of the House of
Representatives was available to the Committee with reference
to the subject matter specifically addressed by H.R. 2854, as
amended.
No specific oversight activities other than the hearings
detailed in this report were conducted by the Committee within
the definition of clause 2(b)(1) of rule X of the Rules of the
House of Representatives.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italic, existing law in which no change is proposed
is shown in roman):
FOOD SECURITY ACT OF 1985
* * * * * * *
TITLE I--DAIRY
* * * * * * *
Subtitle E--Miscellaneous
* * * * * * *
dairy export incentive program
Sec. 153. (a) During the period beginning 60 days after the
date of enactment of this Act and ending on December 31, [2001]
2002, the Commodity Credit Corporation shall establish and
operate an export incentive program as described in this
section for dairy products under section 5 of the Commodity
Credit Corporation Charter Act.
(b) The program established under subsection (a) shall
provide for the Corporation to make payments, on a bid basis,
to an entity that sells for export United States dairy
products. The Secretary shall have sole discretion to accept or
reject bids under such criteria as the Secretary deems
appropriate.
(c) The program shall be operated under such rules and
regulations issued by the Secretary as the Secretary deems
necessary to ensure, among other things, that--
(1) payments may be made under the program only on
the quantity of dairy products sold by an entity for
export in any year that is in addition to, and not in
place of, any export sales of dairy products that the
entity would otherwise make in the absence of the
program; [and]
(2) to the extent practicable, dairy products sold
for export under the program will not displace
commercial export sales of United States dairy products
by other exporters[.]; and
(3) the maximum volume of dairy product exports
allowable consistent with the obligations of the United
States as a member of the World Trade Organization are
exported under the program each year (minus the volume
sold under section 1163 of this Act (7 U.S.C. 1731
note) during that year), except to the extent that the
export of such a volume under the program would, in the
judgment of the Secretary, exceed the limitations on
the value set forth in subsection (f); and
(4) payments may be made under the program for
exports to any destination in the world for the purpose
of market development, except a destination in a
country with respect to which shipments from the United
States are otherwise restricted by law.
* * * * * * *
(e)(1) The payments made under the program shall be made at a
rate or rates established or approved by the Secretary, taking
into consideration, among other things the type of product to
be exported, the domestic price of dairy products, [and] the
world price of the dairy products, and any additional amount
that may be required to assist in the development of world
markets for United States dairy products.
(2) Any such rate established or approved by the Secretary
shall be published in the Federal Register or publicly
announced through other appropriate means, and shall be at a
level or levels as will encourage the exportation of United
States dairy products by entities.
(f) Required Funding.--The Commodity Credit Corporation shall
in each year use money and commodities for the program under
this section in the maximum amount consistent with the
obligations of the United States as a member of the World Trade
Organization, minus the amount expended under section 1163 of
this Act (7 U.S.C. 1731 note) during that year. However, the
Commodity Credit Corporation may not exceed the limitations
specified in subsection (c)(3) on the volume of allowable dairy
product exports.
* * * * * * *
TITLE X--GENERAL COMMODITY PROVISIONS
* * * * * * *
Subtitle A--Miscellaneous Commodity Provisions
* * * * * * *
PAYMENT LIMITATIONS
Sec. 1001. Notwithstanding any other provision of law:
[(1)(A) Subject to sections 1001A through 1001C for each of
the 1987 through 1997 crops, the total amount of deficiency
payments (excluding any deficiency payments described in
paragraph (2)(B)(iv) of this section) and land diversion
payments that a person shall be entitled to receive under one
or more of the annual programs established under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) for wheat,
feed grains, upland cotton, extra long staple cotton, and rice
may not exceed $50,000.
[(B) Subject to sections 1001A through 1001C for each of the
1991 through 1997 crops, the total amount of payments specified
in clauses (iii), (iv), and (v) of paragraph (2)(B) that a
person shall be entitled to receive under one or more of the
annual programs established under the Agricultural Act of 1949
(7 U.S.C. 1421 et seq.) for wheat, feed grains, upland cotton,
rice, and oilseeds (as defined in section 205(a) of the
Agricultural Act of 1949) may not exceed $75,000.
[(2)(A) Subject to sections 1001A through 1001C for each of
the 1991 through 1997 crops, the total amount of payments set
forth in subparagraph (B) that a person shall be entitled to
receive under one or more of the annual programs established
under the Agricultural Act of 1949 for wheat, feed grains,
upland cotton, extra long staple cotton, rice, and other
commodities, when combined with payments for such crop
described in paragraph (1), shall not exceed $250,000.
[(B) As used in subparagraph (A), the term ``payments''
means--
[(i) any part of any payment that is determined by
the Secretary of Agriculture to represent compensation
for resource adjustment (excluding land diversion
payments) or public access for recreation;
[(ii) any disaster payment under one or more of the
annual programs for a commodity established under the
Agricultural Act of 1949;
[(iii) any gain realized by a producer from repaying
a loan for a crop of any commodity (other than honey)
at a lower level than the original loan level
established under the Agricultural Act of 1949;
[(iv) any deficiency payment received for a crop of
wheat or feed grains under section 107B(c)(1) or
105B(c)(1), respectively, of the Agricultural Act of
1949 as the result of a reduction of the loan level for
such crop under section 107B(a)(3) or 105B(a)(3) of
such Act;
[(v) any loan deficiency payment received for a crop
of wheat, feed grains, upland cotton, rice, or oilseeds
under section 107B(b), 105B(b), 103B(b), 101B(b), or
205(e), respectively, of the Agricultural Act of 1949;
and
[(vi) any inventory reduction payment received for a
crop of wheat, feed grains, upland cotton, or rice
under section 107B(f), 105B(f), 103B(f), or 101B(f),
respectively, of the Agricultural Act of 1949.
Such term shall not include loans or purchases, except as
specifically provided for in this paragraph.
[(C) No certificate redeemable for stocks of a commodity held
by the Commodity Credit Corporation may be redeemed for honey
held by the Corporation.
[(3) Notwithstanding the foregoing provisions of this
section, if the Secretary of Agriculture determines that any of
the limitations provided for in paragraph (2) will result in a
substantial increase in the number or dollar amount of loan
forfeitures for a crop of a commodity, will substantially
reduce the acreage taken out of production under an acreage
reduction program for a crop of a commodity, or will cause the
market prices for a crop of a commodity to fall substantially
below the effective loan rate for the crop, the Secretary shall
adjust upward such limitation, under such terms and conditions
as the Secretary determines appropriate, as necessary to
eliminate such adverse effect on the program involved.
[(4) If the Secretary determines that the total amount of
payments that will be earned by any person under the program in
effect for any crop will be reduced under this section, any
acreage requirement established under a set-aside or acreage
limitation program for the farm or farms on which such person
will be sharing in payments earned under such program shall be
adjusted to such extent and in such manner as the Secretary
determines will be fair and reasonable in relation to the
amount of the payment reduction.]
(1) Limitation on payments under production
flexibility contracts.--The total amount of contract
payments made under section 103 of the Agricultural
Market Transition Act to a person under 1 or more
production flexibility contracts entered into under the
section during any fiscal year may not exceed $40,000.
(2) Limitation on marketing loan gains and loan
deficiency payments.--For each of the 1996 through 2002
crops of loan commodities, the total amount of payments
specified in paragraph (3) that a person shall be
entitled to receive under section 104 of the
Agricultural Market Transition Act for one or more loan
commodities may not exceed $75,000.
(3) Description of payments subject to limitation.--
The payments referred to in paragraph (2) are the
following:
(A) Any gain realized by a producer from
repaying a marketing assistance loan for a crop
of any loan commodity at a lower level than the
original loan rate established for the loan
commodity under section 104(b) of the
Agricultural Market Transition Act.
(B) Any loan deficiency payment received for
a loan commodity under section 104(e) of the
Act.
(4) Definitions.--In this title, the terms ``contract
payment'' and ``loan commodity'' have the meaning given
those terms in section 102 of the Agricultural Market
Transition Act.
* * * * * * *
SEC. 1001A. PREVENTION OF CREATION OF ENTITIES TO QUALIFY AS SEPARATE
PERSONS; PAYMENTS LIMITED TO ACTIVE FARMERS.
(a) Prevention of Creation of Entities To Qualify as Separate
Persons.--For the purposes of preventing the use of multiple
legal entities to avoid the effective application of the
payment limitations under section 1001:
(1) In general.--A person (as defined in section
1001(5)(B)(i)) that receives farm program payments (as
described in paragraphs (1) and (2) of this section as
being subject to limitation) for a crop year [under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)] may
not also hold, directly or indirectly, substantial
beneficial interests in more than two entities (as
defined in section 1001(5)(B)(i)(II)) engaged in farm
operations that also receive such payments as separate
persons, for the purposes of the application of the
limitations under section 1001. A person that does not
receive such payments for a crop year may not hold,
directly or indirectly, substantial beneficial
interests in more than three entities that receive such
payments as separate persons, for the purposes of the
application of the limitations under section 1001.
* * * * * * *
(b) Payments Limited to Active Farmers.--
(1) In general.--To be separately eligible for farm
program payments (as described in paragraphs (1) and
(2) of section 1001 as being subject to limitation)
[under the Agricultural Act of 1949] with respect to a
particular farming operation (whether in the person's
own right or as a partner in a general partnership, a
grantor of a revocable trust, a participant in a joint
venture, or a participant in a similar entity (as
determined by the Secretary) that is the producer of
the crops involved), a person must be an individual or
entity described in section 1001(5)(B)(i) and actively
engaged in farming with respect to such operation, as
provided under paragraphs (2), (3), and (4).
* * * * * * *
SEC. 1001C. FOREIGN PERSONS MADE INELIGIBLE FOR PROGRAM BENEFITS.
Notwithstanding any other provision of law:
(a) In General.--[For each of the 1991 through 1997 crops,
any] Any person who is not a citizen of the United States or an
alien lawfully admitted into the United States for permanent
residence under the Immigration and Nationality Act (8 U.S.C.
1101 et seq.) shall be ineligible to receive any type of
[production adjustment payments, price support program loans,
payments, or benefits made available under the Agricultural Act
of 1949 (7 U.S.C. 1421 et seq.),] loans or payments made
available under title I of the Agricultural Market Transition
Act, the Commodity Credit Corporation Charter Act (15 U.S.C.
714 et seq.), or subtitle D of title XII of the Food Security
Act of 1985 (16 U.S.C. 3831 et seq.), or under any contract
entered into under title XII [during the 1989 through 1997 crop
years], with respect to any commodity produced, or land set
aside from production, on a farm that is owned or operated by
such person, unless such person is an individual who is
providing land, capital, and a substantial amount of personal
labor in the production of crops on such farm.
* * * * * * *
TITLE XI--TRADE
Subtitle A--Public Law 480 and Use of Surplus Commodities in
International Programs
* * * * * * *
Sec. 1110. (a) * * *
* * * * * * *
(k) This section shall be effective during the period
beginning October 1, 1985, and ending December 31, [1995] 1996.
(l)(1) To enhance the development of private sector
agriculture in countries receiving assistance under this
section the President may, in each of the fiscal years 1991
through [1995] 1996, use in addition to any amounts or
commodities otherwise made available under this section for
such activities, not to exceed $10,000,000 of Commodity Credit
Corporation funds (or commodities of an equal value owned by
the Corporation), to provide assistance in the administration,
sale, and monitoring of food assistance programs to strengthen
private sector agriculture in recipient countries.
* * * * * * *
TITLE XII--CONSERVATION
* * * * * * *
Subtitle D--Agricultural Resources Conservation Program
CHAPTER 1--ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM
* * * * * * *
Subchapter B--Conservation Reserve
SEC. 1231. CONSERVATION RESERVE.
(a) * * *
* * * * * * *
(d) Maximum Enrollment.--The Secretary shall enter into
contracts under this section to place in the conservation
reserve a [total of 38,000,000 acres during the 1986 through
1995 calendar years. In enrolling such acres, the Secretary
shall reserve 1 million acres for enrollment under this section
in the 1995 calendar year.] total of 36,400,000 acres.
* * * * * * *
Subchapter C--Wetlands Reserve Program
SEC. 1237. WETLANDS RESERVE PROGRAM.
(a) * * *
(b) Minimum Enrollment.--The Secretary shall enroll into the
wetlands reserve program--
(1) * * *
(2) a total of [not less] not more than 975,000 acres
during the 1991 through [2000] 2002 calendar years.
(c) Eligibility.--For purposes of enrolling land in the
wetland reserve established under this subchapter during the
1991 through [2000] 2002 calendar years, land shall be eligible
to be placed into such reserve if the Secretary, in
consultation with the Secretary of the Interior at the local
level, determines that--
(1) * * *
* * * * * * *
SEC. 1237A. EASEMENTS.
(a) * * *
* * * * * * *
(e) Type and Length of Easement.--A conservation easement
granted under this section--
(1) shall be in a recordable form; and
[(2) shall be for 30 years, permanent, or the maximum
duration allowed under applicable State laws.]
(2) shall be for 15 years, but in no case shall be a
permanent easement.
* * * * * * *
CHAPTER 4--LIVESTOCK ENVIRONMENTAL ASSISTANCE PROGRAM
SEC. 1240. DEFINITIONS.
In this chapter:
(1) Land management practice.--The term ``land
management practice'' means a site-specific nutrient or
manure management, irrigation management, tillage or
residue management, grazing management, or other land
management practice that the Secretary determines is
needed to protect, in the most cost effective manner,
water, soil, or related resources from degradation due
to livestock production.
(2) Large confined livestock operation.--The term
``large confined livestock operation'' means an
operation that--
(A) is a confined animal feeding operation;
and
(B) has more than--
(i) 55 mature dairy cattle;
(ii) 10,000 beef cattle;
(iii) 30,000 laying hens or broilers
(if the facility has continuous
overflow watering);
(iv) 100,000 laying hens or broilers
(if the facility has a liquid manure
system);
(v) 55,000 turkeys;
(vi) 15,000 swine; or
(vii) 10,000 sheep or lambs.
(3) Livestock.--The term ``livestock'' means dairy
cows, beef cattle, laying hens, broilers, turkeys,
swine, sheep, lambs, and such other animals as
determined by the Secretary.
(4) Operator.--The term ``operator'' means a person
who is engaged in livestock production (as defined by
the Secretary).
(5) Structural practice.--The term ``structural
practice'' means the establishment of an animal waste
management facility, terrace, grassed waterway, contour
grass strip, filterstrip, or other structural practice
that the Secretary determines is needed to protect, in
the most cost effective manner, water, soil, or related
resources from degradation due to livestock production.
SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF LIVESTOCK ENVIRONMENTAL
ASSISTANCE PROGRAM.
(a) Establishment.--
(1) In general.--During the 1996 through 2002 fiscal
years, the Secretary shall provide technical
assistance, cost-sharing payments, and incentive
payments to operators who enter into contracts with the
Secretary, through a livestock environmental assistance
program.
(2) Eligible practices.--
(A) Structural practices.--An operator who
implements a structural practice shall be
eligible for technical assistance or cost-
sharing payments, or both.
(B) Land management practices.--An operator
who performs a land management practice shall
be eligible for technical assistance or
incentive payments, or both.
(3) Eligible land.--Assistance under this chapter may
be provided with respect to land that is used for
livestock production and on which a serious threat to
water, soil, or related resources exists, as determined
by the Secretary, by reason of the soil types, terrain,
climatic, soil, topographic, flood, or saline
characteristics, or other factors or natural hazards.
(4) Selection criteria.--In providing technical
assistance, cost-sharing payments, and incentive
payments to operators in a region, watershed, or
conservation priority area in which an agricultural
operation is located, the Secretary shall consider--
(A) the significance of the water, soil, and
related natural resource problems; and
(B) the maximization of environmental
benefits per dollar expended.
(b) Application and Term.--
(1) In general.--A contract between an operator and
the Secretary under this chapter may--
(A) apply to 1 or more structural practices
or 1 or more land management practices, or
both; and
(B) have a term of not less than 5, nor more
than 10, years, as determined appropriate by
the Secretary, depending on the practice or
practices that are the basis of the contract.
(2) Duties of operators and secretary.--To receive
cost-sharing or incentive payments, or technical
assistance, participating operators shall comply with
all terms and conditions of the contract and a plan, as
established by the Secretary.
(c) Structural Practices.--
(1) Competitive offer.--The Secretary shall
administer a competitive offer system for operators
proposing to receive cost-sharing payments in exchange
for the implementation of 1 or more structural
practices by the operator. The competitive offer system
shall consist of--
(A) the submission of a competitive offer by
the operator in such manner as the Secretary
may prescribe; and
(B) evaluation of the offer in light of the
selection criteria established under subsection
(a)(4) and the projected cost of the proposal,
as determined by the Secretary.
(2) Concurrence of owner.--If the operator 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 operator shall obtain the
concurrence of the owner of the land with respect to
the offer.
(d) Land Management Practices.--The Secretary shall establish
an application and evaluation process for awarding technical
assistance or incentive payments, or both, to an operator in
exchange for the performance of 1 or more land management
practices by the operator.
(e) Cost-Sharing, Incentive Payments, and Technical
Assistance.--
(1) Cost-sharing payments.--
(A) In general.--The Federal share of cost-
sharing payments to an operator proposing to
implement 1 or more structural practices shall
not be greater than 75 percent of the projected
cost of each practice, as determined by the
Secretary, taking into consideration any
payment received by the operator from a State
or local government.
(B) Limitation.--An operator of a large
confined livestock operation shall not be
eligible for cost-sharing payments to construct
an animal waste management facility.
(C) Other payments.--An operator shall not be
eligible for cost-sharing payments for
structural practices on eligible land under
this chapter if the operator receives cost-
sharing payments or other benefits for the same
land under chapter 1, 2, or 3.
(2) Incentive payments.--The Secretary shall make
incentive payments in an amount and at a rate
determined by the Secretary to be necessary to
encourage an operator to perform 1 or more land
management practices.
(3) Technical assistance.--
(A) Funding.--The Secretary shall allocate
funding under this chapter for the provision of
technical assistance according to the purpose
and projected cost for which the technical
assistance is provided for a fiscal year. The
allocated amount may vary according to the type
of expertise required, quantity of time
involved, and other factors as determined
appropriate by the Secretary. Funding shall not
exceed the projected cost to the Secretary of
the technical assistance provided for a fiscal
year.
(B) Other authorities.--The receipt of
technical assistance under this chapter shall
not affect the eligibility of the operator to
receive technical assistance under other
authorities of law available to the Secretary.
(f) Limitation on Payments.--
(1) In general.--The total amount of cost-sharing and
incentive payments paid to a person under this chapter
may not exceed--
(A) $10,000 for any fiscal year; or
(B) $50,000 for any multiyear contract.
(2) Regulations.--The Secretary shall issue
regulations that are consistent with section 1001 for
the purpose of--
(A) defining the term ``person'' as used in
paragraph (1); and
(B) prescribing such rules as the Secretary
determines necessary to ensure a fair and
reasonable application of the limitations
established under this subsection.
(g) Regulations.--Not later than 180 days after the effective
date of this subsection, the Secretary shall issue regulations
to implement the livestock environmental assistance program
established under this chapter.
[Subtitle E--Administration
[USE OF COMMODITY CREDIT CORPORATION
[Sec. 1241. (a)(1) During each of the fiscal years ending
September 30, 1986, and September 30, 1987, the Secretary shall
use the facilities, services, authorities, and funds of the
Commodity Credit Corporation to carry out subtitle D.
[(2) During the fiscal year ending September 30, 1988, and
each fiscal year thereafter, the Secretary may use the
facilities, services, authorities, and funds of the Commodity
Credit Corporation to carry out subtitle D, except that the
Secretary may not use funds of the Corporation for such purpose
unless the Corporation has received funds to cover such
expenditures from appropriations made to carry out this
subtitle.
[(b) The authority provided by subtitles (A) through (E)
shall be in addition to, and not in place of, other authority
granted to the Secretary and the Commodity Credit Corporation.
[USE OF OTHER AGENCIES
[Sec. 1242. (a) In carrying out subtitles B, C, and D, the
Secretary shall use the services of local, county, and State
committees established under section 8(b) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)).
[(b)(1) In carrying out subtitle D, the Secretary may utilize
the services of the Soil Conservation Service and the Forest
Service, the Fish and Wildlife Service, State forestry
agencies, State fish and game agencies, land-grant colleges,
local, county, and State committees established under section
8(b) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h), soil and water conservation districts, and other
appropriate agencies.
[(2) In carrying out subtitle D at the State and county
levels, the Secretary shall consult with, to the extent
practicable, the Fish and Wildlife Service, State forestry
agencies, State fish and game agencies, land-grant colleges,
soil-conservation districts, and other appropriate agencies.
[ADMINISTRATION
[Sec. 1243. (a) The Secretary shall establish, by regulation,
an appeal procedure under which a person who is adversely
affected by any determination made under subtitles A through E
may seek review of such determination.
[(b) Ineligibility under section 1211 or 1212 of a tenant or
sharecropper for benefits shall not cause a landlord to be
ineligible for benefits for which the landlord would otherwise
be eligible with respect to commodities produced on lands other
than those operated by the tenant or sharecropper.
[(c) In carrying out subtitles B through E, the Secretary
shall provide adequate safeguards to protect the interests of
tenants and sharecroppers, including provision for sharing, on
a fair and equitable basis, in payments under the program
established by subtitle D.
[(d) In making determinations under this title and in
conducting appeals from any determination made under this
title, the Secretary shall act as expeditiously as possible but
shall provide adequate safeguards to protect the interests of
the persons involved in such determination.
[(e) The Secretary shall maintain data concerning the number
and status of appeals pending in excess of 120 days or resolved
under this title.
[(f)(1) The Secretary shall not enroll more than a total of
25 percent of the cropland in any county into the Environmental
Conservation Acreage Reserve Program under chapter 1 and the
Environmental Easement Program under chapter 3, and not more
than 10 percent of such cropland may be subject to an easement
acquired under those chapters. The Secretary may exceed these
limitations in a county to the extent that the Secretary
determines that--
[(A) such action would not adversely affect the local
economy of such county; and
[(B) producers in such county are having difficulties
complying with conservation plans or other
environmental requirements.
[(2) The limitations established under this subsection shall
not apply to cropland that is subject to an easement under
chapter 1 or chapter 3 that is used for the establishment of
shelterbelts and windbreaks.
[(3) In making a determination under this subsection, the
Secretary shall not require the written consent of a member of
Congress.
[REGULATIONS
[Sec. 1244. Not later than 180 days after the date of
enactment of this Act, the Secretary shall issue such
regulations as the Secretary determines are necessary to carry
out subtitles A through E, including regulations that--
[(1) define the term ``person'';
[(2) govern the determination of persons who shall be
ineligible for program benefits under subtitles B and
C, so as to ensure a fair and reasonable determination
of ineligibility; and
[(3) protect the interests of landlords, tenants, and
sharecroppers.
[SEC. 1245. AUTHORIZATION OF APPROPRIATIONS.
[(a) Environmental Conservation Acreage Reserve Program and
Water Quality Incentive Program.--There is authorized to be
appropriated without fiscal year limitation such sums as may be
necessary to carry out chapters 1 and 2 of subtitle D. Amounts
available to carry out subtitle D before the date of enactment
of this section shall remain available to carry out such
chapters.
[(b) Other Conservation Matters.--In addition to subsection
(a), there is authorized to be appropriated without fiscal year
limitation such sums as may be necessary to carry out subtitles
A through G, other than chapters 1 and 2 of subtitle D.
[SEC. 1246. MONITORING AND EVALUATION.
[(a) In General.--Not later than June 30, 1993, the Secretary
shall prepare and submit, to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate, a comprehensive report
that evaluates, in accordance with subsection (b), the programs
and policies established and operated under this title.
[(b) Requirements.--In conducting the evaluations required
under subsection (a), the Secretary shall--
[(1) assess the progress made toward the national
objective of nondegradation of the soil resources
through the implementation of the relevant provisions
of this title, identify obstacles to the attainment of
such goal, and recommend ways in which to overcome such
obstacles;
[(2) perform on-site evaluations of 5 percent, or
such reasonable amount as necessary to produce a
statistically valid survey, of all affected acreage
of--
[(A) conservation practices on highly
erodible lands;
[(B) estimates of erosion reductions that may
result from the implementation of conservation
plans; and
[(C) the technical adequacy and feasibility
of such plans;
[(3) collect data concerning the social and economic
impacts, violations, appeals, and such other matters
under this title as the Secretary determines to be
necessary to assess the overall impact of this title,
which data collection shall not impose an additional
recordkeeping or reporting requirement on the producer;
and
[(4) assess the contribution toward the national
objectives of wetlands preservation, wildlife and
waterfowl habitat improvement, and water quality
improvement through the implementation of the relevant
provisions of this title, identify obstacles to
furthering progress toward such objectives, and
recommend ways in which to overcome such obstacles.
[SEC. 1247. ASSISTANCE FOR CONTROL OF THE SPREAD OF WEEDS AND PESTS.
[(a) In General.--The Secretary, in consultation with State
experiment stations, the Administrator of the Extension
Service, the Chief of the Soil Conservation Service, and State
pest and weed control boards, shall make available to owners
and operators of land that is subject to a contract under
subtitle D, weed and pest control technical information and
materials that--
[(1) address common weed and pest problems and
programs to control weeds and pests found on acreage
enrolled in the conservation reserve; and
[(2) are otherwise consistent with maintaining the
conservation and environmental objectives of the
conservation reserve.
[(b) Conservation Measure.--At the Secretary's discretion,
the control of insect pests on conservation reserve acreage
that is most likely to incur a crop pest infestation that
adversely affects surrounding commercial land may be considered
a conservation measure or practice for the purposes of section
1234(b).]
Subtitle E--Funding
SEC. 1241. FUNDING.
(a) Mandatory Expenses.--For each of fiscal years 1996
through 2002, the Secretary shall use the funds of the
Commodity Credit Corporation to carry out the programs
authorized by--
(1) subchapter B of chapter 1 of subtitle D
(including contracts extended by the Secretary pursuant
to section 1437 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101-624; 16 U.S.C.
3831 note));
(2) subchapter C of chapter 1 of subtitle D; and
(3) chapter 4 of subtitle D.
(b) Livestock Environmental Assistance Program.--For each of
fiscal years 1996 through 2002, $100,000,000 of the funds of
the Commodity Credit Corporation shall be available for
providing technical assistance, cost-sharing payments, and
incentive payments for practices relating to livestock
production under the livestock environmental assistance program
under chapter 4 of subtitle D.
* * * * * * *
----------
AGRICULTURAL ADJUSTMENT ACT OF 1938
* * * * * * *
TITLE III--LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING
QUOTAS, AND MARKETING CERTIFICATES
Subtitle A--Definitions, Parity Payments, and Consumer Safeguards
DEFINITIONS
Sec. 301. (a) * * *
(b) Definitions Applicable to One or More Commodities.--For
the purposes of this title--
(1) * * *
* * * * * * *
(18) The word ``peanuts'' for the purposes of this
Act shall mean all peanuts produced, excluding any
peanuts which it is established by the producer or
otherwise, in accordance with regulations of the
Secretary, were not picked or threshed either before or
after marketing from the farm, or were marketed by the
producer before drying or removal of moisture from such
peanuts either by natural or artificial means for
consumption exclusively as boiled peanuts.
* * * * * * *
international emergency food reserve
Sec. 305. The President is encouraged to enter into
negotiations with other nations to develop an international
system of food reserves to provide for humanitarian food relief
needs and to establish and maintain a food reserve, as a
contribution of the United States toward the development of
such a system, to be made available in the event of food
emergencies in foreign countries. The reserves shall be known
as the International Emergency Food Reserve.
* * * * * * *
Subtitle B--Marketing Quotas
PART I--MARKETING QUOTAS--TOBACCO
* * * * * * *
Sec. 315. Notwithstanding any of the provisions of section
101 of this Act: (a) For the 1960 crop of any kind of tobacco
for which marketing quotas are in effect, or for which
marketing quotas are not disapproved by producers, the support
level in cents per pound shall be the level at which the 1959
crop of such kind of tobacco was supported, or if marketing
quotas were disapproved for the 1959 crop of such kind of
tobacco, the level at which the 1959 crop of such kind of
tobacco would have been supported if marketing quotas had been
in effect. (b) For the 1961 crop and each subsequent crop of
any kind of tobacco for which marketing quotas are in effect,
or for which marketing quotas are not disapproved by producers,
the support level in cents per pound shall be determined by
adjusting the support level for the 1959 crop of such kind of
tobacco, or if marketing quotas were disapproved for the 1959
crop of such kind of tobacco, the level at which the 1959 crop
of such kind of tobacco would have been supported if marketing
quotas had been in effect, by multiplying such support level
for the 1959 crop by the ratio of (i) the average of the index
of prices paid by farmers, including wage rates, interest, and
taxes, as defined in section 301(a)(1)(C) of the Agricultural
Adjustment Act of 1938, as amended, for the three calendar
years immediately preceding the calendar year in which the
marketing year begins for the crop for which the support level
is being determined to (ii) the average index of such prices
paid by farmers, including wage rates, interest, and taxes for
the calendar year 1959.
(c) If acreage poundage or poundage farm marketing quotas are
in effect under section 317 or 319 of the Agricultural
Adjustment Act of 1938, as amended, (1) price support shall not
be made available on tobacco marketed in excess of 103 per
centum of the marketing quota (after adjustments) for the farm
on which such tobacco was produced, and (2) for the purpose of
price-support eligibility, tobacco carried over from one
marketing year to another shall, when marketed, be considered
tobacco of the then current crop.
(d) Notwithstanding the provisions of section 403, if the
Secretary determines that the supply of any grade of any kind
of tobacco of a crop for which marketing quotas are in effect
or are not disapproved by producers will likely be excessive,
the Secretary, after prior consultation with the association
through which price support for the grade and kind of tobacco
is made available to producers, may reduce the support rate
which would otherwise be established for such grade of tobacco
after taking into consideration the effect such reduction may
have on the supply and price of other grades of other kinds of
quota tobacco: Provided, That the weighted average of the
support rates for all eligible grades of such kind of tobacco
shall, after such reduction, reflect not less than (1) 65 per
centum of the increase in the support level for such kind of
tobacco which would otherwise be established under this
section, if the support level therefor is higher than the
support level for the preceding crop, or (2) the support level
for such kind of tobacco established under this section, if the
support level therefor is not higher than the support level for
the preceding crop. In determining whether the supply of any
grade of any kind of tobacco of a crop will be excessive, the
Secretary shall take into consideration the domestic supply,
including domestic inventories, the amount of such tobacco
pledged as security for price support loans, and anticipated
domestic and export demand, based on the maturity, uniformity
and stalk position of such tobacco.
(f) Notwithstanding the foregoing provisions of this
section--
(1) For the 1984 crop of Flue-cured tobacco, the
support level shall be the level in cents per pound at
which the 1982 crop was supported.
(2) For the 1985 crop of Flue-cured tobacco, the
support level shall be the level in cents per pound at
which the 1982 crop was supported, plus or minus,
respectively, the amount by which (A) the support level
for the 1985 crop, as determined under subsection (b),
is greater or less than (B) the support level for the
1984 crop, as determined under subsection (b), as that
difference may be adjusted by the Secretary under
subsection (d) if the support level under clause (A) is
greater than the support level under clause (B), except
that the support level for the 1985 crop shall be the
level in cents per pound at which the 1982 crop was
supported if the support level as determined under
subsection (b) for the 1985 crop would not be more than
5 per centum greater than the support level as
determined under subsection (b) for the 1984 crop.
(3) For the 1984 crop of any kind of tobacco (other
than Flue-cured tobacco) for which marketing quotas are
in effect or are not disapproved by producers and for
the 1985 crop of any kind of tobacco (other than Flue-
cured and Burley tobacco) for which marketing quotas
are in effect or are not disapproved by producers, the
Secretary shall establish the support level at such
level as will not narrow the normal price support
differential between Flue-cured tobacco and such other
kind of tobacco. Before establishing the support level
under this paragraph for any such kind of tobacco the
Secretary shall publish in the Federal Register a
notice of the level the Secretary proposes to establish
and give an opportunity for the public to comment on
the proposal. In determining the level to be
established under this paragraph for a particular kind
of tobacco, the Secretary shall take into consideration
the cost of producing such kind of tobacco, the supply
and demand conditions for such kind of tobacco, the
comments received in response to the public notice of
the proposal, and such other relevant factors as the
Secretary determines appropriate.
(4) For the 1985 and 1986 crops of Burley tobacco,
the support level shall be $1.488 per pound.
(5) For the 1986 crop of Flue-cured tobacco, the
support level shall be $1.438 per pound.
(6)(A) Except as provided in subparagraph (B), for
the 1986 and each subsequent crop of any kind of
tobacco (other than Flue-cured and Burley tobacco) for
which marketing quotas are in effect or are not
disapproved by producers, the support level shall be
the level in cents per pound at which the immediately
preceding crop was supported, plus or minus,
respectively, the amount by which--
(i) the support level for the crop for which
the determination is being made, as determined
under subsection (b); is greater or less than
(ii) the support level for the immediately
preceding crop, as determined under subsection
(b),
as that difference may be adjusted by the Secretary
under subsection (d) if the support level under clause
(i) is greater than the support level under clause
(ii).
(B) Notwithstanding subparagraph (A) and subsection
(d), if requested by the board of directors of an
association through which price support for the
respective kind of tobacco specified in subparagraph
(A) is made available to producers, the Secretary may
reduce the support level for such kind of tobacco to
the extent requested by the association to more
accurately reflect the market value and improve the
marketability of such tobacco.
(7)(A) For the 1987 and each subsequent crop of Flue-
cured and Burley tobacco for which marketing quotas are
in effect or are not disapproved by producers, the
support level shall be the level in cents per pound at
which the immediately preceding crop was supported,
plus or minus, respectively, an adjustment of not less
than 65 percent nor more than 100 percent of the total,
as determined by the Secretary after taking into
consideration the supply of the kind of tobacco
involved in relation to demand, of--
(i) 66.7 percent of the amount by which--
(I) the average price received by
producers for Flue-cured and Burley
tobacco, respectively, on the United
States auction markets, as determined
by the Secretary, during the 5
marketing years immediately preceding
the marketing year for which the
determination is being made, excluding
the year in which the average price was
the highest and the year in which the
average price was the lowest in such
period, is greater or less than
(II) the average price received by
producers for Flue-cured and Burley
tobacco, respectively, on the United
States auction markets, as determined
by the Secretary, during the 5
marketing years immediately preceding
the marketing year prior to the
marketing year for which the
determination is being made, excluding
the year in which the average price was
the highest and the year in which the
average price was the lowest in such
period; and
(ii) 33.3 percent of the change, expressed as
a cost per pound of tobacco, in the index of
prices paid by tobacco producers from January 1
to December 31 of the calendar year immediately
preceding the year in which the determination
is made.
(B) For purposes of subparagraph (A)--
(i) the average market price for Burley
tobacco for the 1985 marketing year shall be
reduced by $0.039 per pound;
(ii) the average market price for Burley
tobacco for the 1984 and each prior applicable
marketing year shall be reduced by $0.30 per
pound;
(iii) the average market price for Flue-cured
tobacco for the 1985 marketing year shall be
reduced by $0.25 per pound;
(iv) the average market price for Flue-cured
tobacco for the 1984 and each prior applicable
marketing year shall be reduced by $0.30 per
pound; and
(v) the index of prices paid by tobacco
producers shall include items representing
general, variable costs of producing tobacco,
as determined by the Secretary, but shall not
include the cost of land, risk, overhead,
management, purchase or leasing of quotas,
marketing contributions or assessments, and
other costs not directly related to the
production of tobacco.
(8)(A) Notwithstanding any other provision of this
subsection, in the case of each of the 1988 and 1989
crops of any kind of tobacco, the Secretary shall
reduce the support level for such crop by an amount
equal to 1.4 percent of the level otherwise established
under this subsection. Any such reduction shall not be
taken into consideration in determining the support
level for a subsequent crop of tobacco.
(B) In lieu of making any such reduction, the
Secretary may impose assessments on the producers and
purchasers in an amount sufficient to realize a
reduction in outlays equal to the amount that would
have been achieved as a result of the reduction
required under subparagraph (A). Such assessments shall
not apply to purchasers if it is judicially determined
that the imposition of the purchaser assessment will
adversely affect the contracts entered into under
section 1109 of the Consolidated Omnibus Budget
Reconciliation Act of 1986 (7 U.S.C. 1445-3).
(g)(1) Effective only for each of the 1994 through 1998 crops
of tobacco for which price support is made available under this
Act, each producer and purchaser of such tobacco, and each
importer of the same kind of tobacco, shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
(A) in the case of a producer or purchaser of
domestic tobacco, .5 percent of the national
price support level for each such crop; and
(B) in the case of an importer of tobacco, 1
percent of the national support price for the
same kind of tobacco;
as provided for in this section.
(2) Such producer, purchaser, and importer assessments shall
be--
(A) collected in the same manner as provided for in
section 106A(d)(2) or 106B(d)(3), as applicable; and
(B) enforced in the same manner as provided in
section 106A(h) or 106B(j), as applicable.
(3) The Secretary may enforce this subsection in the courts
of the United States.
producer contributions and purchaser assessments for no net cost
tobacco fund
Sec. 315A. (a) As used in the section--
(1) the term ``association'' means a producer-owned
cooperative marketing association which has entered
into a loan agreement with the Corporation to make
price support available to producers;
(2) the term ``Corporation'' means the Commodity
Credit Corporation, an agency and instrumentality of
the United States within the Department of Agriculture
through which the Secretary makes price support
available to producers;
(3) the term ``Fund'' means the capital account to be
established within each association, which account
shall be known as the ``No Net Cost Tobacco Fund'';
(4) the term ``to market'' means to dispose of quota
tobacco by voluntary or involuntary sale, barter,
exchange, gift inter vivos, or consigning the tobacco
to an association for a price support advance;
(5) the term ``net gains'' means the amount by which
total proceeds obtained from the sale by an association
of a crop of quota tobacco pledged to the Corporation
for price support loan exceeds the principal amount of
the price support loan made by the Corporation to the
association on such crop, plus interest and charges;
(6) the term ``purchaser'' means any person who
purchases in the United States, either directly or
indirectly for the account of such person or another
person, Flue-cured or Burley quota tobacco; and
(7) the term ``quota tobacco'' means any kind of
tobacco for which marketing quotas are in effect or for
which marketing quotas are not disapproved by
producers.
(b) The Secretary may carry out the tobacco price support
program through the Corporation and shall, except as otherwise
provided by this section, continue to make price support
available to producers through loans to associations that,
under agreements with the Corporation, agree to make loan
advances to producers.
(c) Each association shall establish within the association a
Fund. The Fund shall be comprised of amounts contributed by
producer-members or paid by or on behalf of purchasers and
importers as provided in subsection (d).
(d) The Secretary shall--
(1) require--
(A) that--
(i) as a condition of eligibility for
price support, each producer of each
kind of quota tobacco shall agree, with
respect to all such kind of quota
tobacco marketed by the producer from a
farm, to contribute to the appropriate
association, for deposit in the
association's Fund, an amount
determined from time to time by the
association with the approval of the
Secretary;
(ii) each purchaser of Flue-cured and
Burley quota tobacco shall pay to the
appropriate association, for deposit in
the Fund of the association, an
assessment, in an amount determined
from time to time by the association
with the approval of the Secretary,
with respect to purchases of all such
kind of tobacco marketed by a producer
from a farm (including purchases of
such tobacco from the 1986 and
subsequent crops from the association);
and
(iii) each importer of Flue-cured or
Burley tobacco shall pay to the
appropriate association, for deposit in
the Fund of the association, an
assessment, in an amount that is equal
to the product obtained by
multiplying--
(I) the number of pounds of
tobacco that is imported by the
importer; by
(II) the sum of the amount of
per pound producer
contributions and purchaser
assessments that are payable by
domestic producers and
purchasers of Flue-cured and
Burley tobacco under clauses
(i) and (ii); and
(B) that, upon making a contribution under
subparagraph (A)--
(i) in the case of quota tobacco
marketed other than by consignment to
an association for a price support
advance, the producer shall receive
from the association capital stock or,
if the association does not issue such
stock, a capital certificate having a
par value or face amount, respectively,
equal to the contribution; and
(ii) in the case of quota tobacco
consigned by the producer to an
association for a price support
advance, the producer shall receive
from the association a qualified per
unit retain certificate, as defined in
section 1388(h) of the Internal Revenue
Code, having a face amount equal to the
amount of the contribution and
representing an interest in the
association's Fund.
The amount of producer contributions and purchaser
assessments shall be determined in such a manner that
producers and purchasers share equally, to the maximum
extent practicable, in maintaining the Fund of an
association. In making such determination with respect
to the assessment of a purchaser, only 1985 and
subsequent crops of Flue-cured and Burley quota tobacco
shall be taken into account. The Secretary shall
approve the amount of the contributions and assessments
determined by an association from time to time under
this paragraph only if the Secretary determines that
such amount will result in accumulation of a Fund
adequate to reimburse the Corporation for any net
losses which the Corporation may sustain under its loan
agreements with the association, based on reasonable
estimates of the amounts which the Corporation will
lend to the association under such agreements and the
proceeds which will be realized from the sales of
tobacco which are pledged to the Corporation by the
association as security for loans;
(2) require that any producer contribution or
purchaser or importer assessment due under paragraph
(1) shall be collected--
(A) from the person who acquired the tobacco
involved from the producer, except that if the
tobacco is marketed by sale, an amount equal to
the producer contribution may be deducted by
the purchaser from the price paid to such
producer;
(B) if the tobacco involved is marketed by a
producer through a warehouseman or agent, from
such warehouseman or agent, who may--
(i) deduct an amount equal to the
producer contribution from the price
paid to the producer; and
(ii) add an amount equal to the
purchaser assessment to the price paid
by the purchaser;
(C) if the tobacco involved is marketed by a
producer directly to any person outside the
United States, from the producer, who may add
an amount equal to the purchaser assessment to
the price paid by the purchaser; and
(D) if the tobacco involved is imported by an
importer, from the importer.
(3) require that the Fund established by each
association shall be kept and maintained separate from
all other accounts of the association and shall be used
exclusively, as prescribed by the Secretary, for the
purpose of ensuring, insofar as practicable, that the
Corporation, under its loan agreements with the
association with respect to 1982 and subsequent crops
of quota tobacco, will suffer no net losses (including,
but not limited to, recovery of the amount of loans
extended to cover the overhead costs of the
association), after any net gains are applied to net
losses of the corporation under paragraph (5):
Provided, That, notwithstanding any other provision of
law, use by the association of moneys in the Fund,
including interest and other earnings, for the purposes
of reducing the association's outstanding indebtedness
to the Corporation associated with 1982 and subsequent
crops of quota tobacco and making loan advances to
producers is authorized, and use of such moneys for any
other purposes that will be mutually beneficial to
producers and purchasers who contribute or pay to the
Fund and to the Corporation, shall, if approved by the
Secretary, be considered an appropriate use of the
Fund;
(4) permit an association to invest the monies in the
Fund in such manner as the Secretary may approve, and
require that the interest or other earnings on such
investment shall become a part of the Fund;
(5) require that loan agreements between the
Corporation and the association provide that the
Corporation shall retain the net gains from each of the
1982 and subsequent crops of tobacco pledged by the
association as security for price support loans, and
that such net gains will be used for the purpose of (A)
offsetting any losses sustained by the Corporation
under its loan agreements with the association for any
of the 1982 and subsequent crops of loan tobacco, or
(B) reducing the outstanding balance of any price
support loan made by the Corporation to the association
under such agreements for 1982 and subsequent crops of
tobacco, or for both such purposes;
(6); and
(7) effective for the 1986 and subsequent crops of
quota tobacco, provide, in loan agreements between the
Corporation and an association, that if the Secretary
determines that the amount in the Fund or the net gains
referred to in paragraph (5) exceeds the amounts
necessary for the purposes specified in this section,
the association, with the approval of the Secretary,
may suspend the payment and collection of contributions
and assessments under this section on terms and
conditions established by the association, with the
approval of the Secretary.
(e) If any association which has entered into a loan
agreement with the Corporation with respect to 1982 or
subsequent crops of quota tobacco fails or refuses to comply
with the provisions of this section, the regulations issued by
the Secretary thereunder, or the terms of such agreement, the
Secretary may terminate such agreement or provide that no
additional loan funds may be made available thereunder to the
association. In such event, the Secretary shall make price
support available to producers of the kind or kinds of tobacco,
the price of which had been supported through loans to such
association, through such other means as are authorized by this
Act or the Commodity Credit Corporation Charter Act.
(f) If, under subsection (e), a loan agreement with an
association is terminated, or if an association having a loan
agreement with the Corporation is dissolved, merges with
another association, or otherwise ceases to operate, the Fund
or the net gains referred to in subsection (d)(5) shall be
applied or disposed of in such manner as the Secretary may
approve or prescribe, except that they shall, to the extent
necessary, first be applied or used for the purposes therefor
prescribed in this section.
(g) The Secretary shall issue regulations necessary to carry
out the provisions of this section.
(h)(1)(A) Each person who fails to collect any contribution
or assessment as required by subsection (d)(2) and remit such
contribution or assessment to the association, at such time and
in such manner as may be prescribed by the Secretary, shall be
liable, in addition to any amount due, to a marketing penalty
at a rate equal to 75 percent of the average market price
(calculated to the nearest whole cent) for the kind of tobacco
involved for the immediately preceding year on the quantity of
tobacco as to which the failure occurs.
(B) Each importer who fails to pay to the association an
assessment as required by subsection (d)(2) at such time and in
such manner as may be prescribed by the Secretary, shall be
liable, in addition to any amount due, for a marketing penalty
at a rate equal to 75 percent of the average market price
(calculated to the nearest whole cent) for the respective kind
of tobacco for the immediately preceding year on the quantity
of tobacco as to which the failure occurs.
(C) The Secretary may reduce any such marketing penalty in
such amount as the Secretary determines equitable in any case
in which the Secretary determines that the failure was
unintentional or without knowledge on the part of the person
concerned.st
(D) Any penalty provided for under this paragraph shall be
assessed by the Secretary after notice and opportunity for a
hearing.
(2)(A) Any person against whom a penalty is assessed under
this subsection may obtain review of such penalty in an
appropriate district court of the United States by filing a
civil action in such court not later than 30 days after such
penalty is imposed.
(B) The Secretary shall promptly file in such court a
certified copy of the record on which the penalty is based.
(3) The district courts of the United States shall have
jurisdiction to review and enforce any penalty imposed under
this subsection.
(4) An amount equivalent to any penalty collected by the
Secretary under this subsection shall be transmitted by the
Secretary to the appropriate association, for deposit in the
Fund of such association.
(5) The remedies provided in this subsection shall be in
addition to, and not exclusive of, other remedies that may be
available.
marketing assessments to no net cost tobacco account
Sec. 315B. (a) As used in this section--
(1) the term ``association'' means a producer-owned
cooperative marketing association which has entered
into a loan agreement with the Corporation to make
price support available to producers of a kind of
tobacco;
(2) the term ``Account'' means an account established
by and in the Corporation for an association, which
account shall be known as the ``No Net Cost Tobacco
Account'';
(3) the term ``to market'' means to dispose of
tobacco by voluntary or involuntary sale, barter,
exchange, gift inter vivos, or consigning the tobacco
to an association for a price support advance;
(4) the term ``net gains'' means the amount by which
total proceeds obtained from the sale by an association
of a crop of a kind of tobacco pledged to the
Corporation for price support loan exceeds the
principal amount of the price support loan made by the
Corporation to the association on such crop, plus
interest and charges;
(5) the term ``tobacco'' means any kind of tobacco as
defined in section 301(b)(15) of the Agricultural
Adjustment Act of 1938, for which marketing quotas are
in effect or for which marketing quotas are not
disapproved by producers;
(6) the term ``area'', when used in connection with
an association, means the general geographical area in
which farms of the producer-members of such association
are located, as determined by the Secretary;
(7) the term ``Corporation'' shall have the meaning
given to it in section 106A(a)(2); and
(8) the term ``purchaser'' means any person who
purchases in the United States, either directly or
indirectly for the account of such person or another
person, Flue-cured or Burley quota tobacco.
(b) Notwithstanding section 106A, the Secretary shall, upon
the request of any association, and may, if the Secretary
determines, after consultation with such association, that the
accumulation of the No Net Cost Tobacco Fund for such
association under section 106A is, and is likely to remain,
inadequate to reimburse the Corporation for net losses which
the Corporation sustains under its loan agreement with such
association--
(1) continue to make price support available to
producers through such association in accordance with
loan agreements entered into between the Corporation
and such association; and
(2) establish and maintain in accordance with this
section a No Net Cost Tobacco Account for such
association in lieu of the No Net Cost Tobacco Fund
established within such association under section 106A.
(c)(1) Any Account established for an association under
subsection (b)(2) shall be established within the Corporation
and shall be comprised of amounts paid by producers,
purchasers, and importers under subsection (d).
(2) Upon the establishment of an Account for an association,
any amount in the No Net Cost Tobacco Fund established within
such association under section 106A shall be applied or
disposed of in such manner as the Secretary may approve or
prescribe, except that such amount shall, to the extent
necessary, first be applied or used for the purposes therefor
prescribed in such section.
(d)(1)(A) If an Account is established for an association
under subsection (b)(2), then the Secretary shall require (in
lieu of any requirement under section 106A(d)(1)) that each
producer of the kind of tobacco involved whose farm is within
such association's area shall, as a condition of eligibility
for price support, agree, with respect to all of such kind of
tobacco marketed by the producer from the farm, to pay to the
Corporation, for deposit in such association's Account,
marketing assessments as determined under paragraph (2) and
collected under paragraph (3).
(B) The Secretary shall also require (in lieu of any
requirement under section 106A(d)(1)) that each purchaser of
Flue-cured and Burley quota tobacco shall pay to the
Corporation, for deposit in the Account of such association, an
assessment, as determined under paragraph (2) and collected
under paragraph (3), with respect to purchases of all such kind
of tobacco marketed by a producer from a farm (including
purchases of such tobacco from the 1986 and subsequent crops
from the association).
(C) The Secretary shall also require (in lieu of any
requirement under section 106A(d)(1)) that each importer of
Flue-cured and Burley tobacco shall pay to the Corporation, for
deposit in the Account of the association, an assessment, as
determined under paragraph (2) and collected under paragraph
(3), with respect to purchases of all such kinds of tobacco
imported by the importer.
(2)(A) For purposes of paragraph (1), the Secretary shall
determine and adjust from time to time, in consultation with
such association, the amount of the marketing assessment which
shall be imposed, as a condition of eligibility for price
support, on each pound of the kind of tobacco involved marketed
by a producer from a farm within such association's area and
the amount of the assessment to be paid by purchasers of
tobacco. The amount of the assessment to be paid by producers
and purchasers shall be determined in such a manner that
producers and purchasers share equally, to the maximum extent
practicable, in maintaining the Account of an association. In
making such determination with respect to the assessment of a
purchaser, only 1985 and subsequent crops of Flue-cured and
Burley quota tobacco shall be taken into account. The amount of
the assessment shall be equal to an amount which, when
collected, will result in an accumulation of an Account for
such association adequate to reimburse the Corporation for any
net losses which the Corporation may sustain under its loan
agreements with such association, based on reasonable estimates
of the amounts which the Corporation will lend to such
association under such agreements and the proceeds which will
be realized from the sales of the kind of tobacco involved
which are pledged to the Corporation by such association as
security for loans. Notwithstanding the foregoing provisions of
this paragraph, the amount of any assessment that is determined
by the Secretary for the 1986 and subsequent crops of Burley
quota tobacco shall be determined without regard to any net
losses that the Corporation may sustain under the loan
agreements of the Corporation with such association with
respect to the 1983 crop of such tobacco.
(B) With respect to the 1985 crop of Burley tobacco, for the
purposes of paragraph (1), the marketing assesment shall not be
more than 4 cents per pound.
(C) The amount of the assessment to be paid by importers
shall be an amount that is equal to the product obtained by
multiplying--
(i) the number of pounds of tobacco that is imported
by the importer; by
(ii) the sum of the amount of per pound producer and
purchaser assessments that are payable by domestic
producers and purchasers of the respective kind of
tobacco under this paragraph.
(3)(A) Except as provided in subparagraphs (B) and (C), any
assessment to be paid by a producer or a purchaser under
paragraph (1) shall be collected from the person who acquired
the tobacco involved from such producer, except that if the
tobacco is marketed by sale, an amount equal to the producer
assessment may be deducted by the purchaser from the price paid
to such producer.
(B) If tobacco of the kind for which an Account is
established is marketed by a producer through a warehouseman or
agent, both the producer and the purchaser assessment shall be
collected from such warehouseman or agent, who may--
(i) deduct an amount equal to the producer assessment
from the price paid to the producer; and
(ii) add an amount equal to the purchaser assessment
to the price paid by the purchaser.
(C) If tobacco of the kind for which an Account is
established is marketed by a producer directly to any person
outside the United States, both the producer and the purchaser
assessment shall be collected from the producer, who may add an
amount equal to the purchaser assessment to the price paid by
the purchaser.
(D) If Flue-cured or Burley tobacco is imported by an
importer, any importer assessment required by subsection (d)
shall be collected from the importer.
(e) Amounts deposited in an Account established for an
association shall be used by the Secretary for the purpose of
ensuring, insofar as practicable, that the Corporation under
its loan agreements with such association will suffer, with
respect to the crop involved, no net losses (including, but not
limited to, recovery of the amount of loans extended to cover
the overhead costs of the association), after any net gains are
applied to net losses of the Corporation pursuant to subsection
(h).
(f) The Secretary shall provide, in any loan agreement
between the Corporation and an association for which an Account
has been established under subsection (b)(2), that if the
Secretary determines that the amount in such Account or the net
gains referred to in subsection (h) exceed the amounts
necessary for the purposes of this section, then the Secretary,
in consultation with such association, may suspend the payment
and collection of marketing assessments under this section upon
terms and conditions established by the Secretary.
(g) With respect to any association for which an Account is
established under subsection (b)(2), if a loan agreement
between the Corporation and such association is terminated, if
such association is dissolved or merges with another
association that has entered into a loan agreement with the
Corporation to make price support available to producers of the
kind of tobacco involved, or if such Account terminates by
operation of law, then amounts in such Account and the net
gains referred to in subsection (h) shall be applied to or
disposed of in such manner as the Secretary may prescribe,
except that they shall, to the extent necessary, first be
applied to or used for the purposes therefor prescribed in this
section.
(h) The provisions of section 106A(d)(5) relating to net
gains shall apply to any loan agreement between an association
and the Corporation entered into upon or after the
establishment of an Account for such association under
subsection (b)(2).
(i) The Secretary shall issue regulations necessary to carry
out the provisions of this section.
(j)(1)(A) Each person who fails to collect any assessment as
required by subsection (d)(3) and remit such assessment to the
Corporation, at such time and in such manner as may be
prescribed by the Secretary, shall be liable, in addition to
any amount due, to a marketing penalty at a rate equal to 75
percent of the average market price (calculated to the nearest
whole cent) for the kind of tobacco involved for the
immediately preceding year on the quantity of tobacco as to
which the failure occurs.
(B) Each importer who fails to pay to the Corporation an
assessment as required by subsection (d) at such time and in
such manner as may be prescribed by the Secretary, shall be
liable, in addition to any amount due, to a marketing penalty
at a rate equal to 75 percent of the average market price
(calculated to the nearest whole cent) for the respective kind
of tobacco for the immediately preceding year on the quantity
of tobacco as to which the failure occurs.
(C) The Secretary may reduce any such marketing penalty in
such amount as the Secretary determines equitable in any case
in which the Secretary determines that the failure was
unintentional or without knowledge on the part of the person
concerned.
(D) Any penalty provided for under this paragraph shall be
assessed by the Secretary after notice and opportunity for a
hearing.
(2)(A) Any person against whom a penalty is assessed under
this subsection may obtain review of such penalty in an
appropriate district court of the United States by filing a
civil action in such court not later than 30 days after such
penalty is imposed.
(B) The Secretary shall promptly file in such court a
certified copy of the record on which the penalty is based.
(3) The district courts of the United States shall have
jurisdiction to review and enforce any penalty imposed under
this subsection.
(4) An amount equivalent to any penalty collected by the
Secretary under this subsection shall be transmitted by the
Secretary to the Corporation, for deposit in the Account of the
appropriate association.
(5) The remedies provided in this subsection shall be in
addition to, and not exclusive of, other remedies that may be
available.
[PART II--ACREAGE ALLOTMENTS--CORN
[ADJUSTMENT OF FARM MARKETING QUOTAS
[Sec. 326. (a) Whenever in any county or other area the
Secretary finds that the actual production of corn plus the
amount of corn stored under seal in such county or other area
is less than the normal production of the marketing percentage
of the farm acreage allotment in such county or other area, the
Secretary shall terminate farm marketing quotas for corn in
such county or other area.
[(b) Whenever, upon any farm, the actual production of the
acreage of corn is less than the normal production of the
marketing percentage of the farm acreage allotment, there may
be marketed, without penalty, from such farm an amount of corn
from the corn stored under seal pursuant to section 324 which,
together with the actual production of the then current crop,
will equal the normal production of the marketing percentage of
the farm acreage allotment.
[(c) Whenever, in any marketing year, marketing quotas are
not in effect with respect to the crop of corn produced in the
calendar year in which such marketing year begins, all
marketing quotas applicable to previous crops of corn shall be
terminated.
[NONESTABLISHMENT OF ACREAGE ALLOTMENTS
[Sec. 330. Notwithstanding any other provision of law,
acreage allotments and a commercial corn-producing area shall
not be established for the 1959 and subsequent crops of corn.
[PART III--MARKETING QUOTAS--WHEAT
[LEGISLATIVE FINDINGS
[Sec. 331. Wheat is a basic source of food for the Nation, is
produced throughout the United States by more than a million
farmers, is sold on the country-wide market and, as wheat or
flour, flows almost entirely through instrumentalities of
interstate and foreign commerce from producers to consumers.
[Abnormally excessive and abnormally deficient supplies of
wheat on the country-wide market acutely and directly affect,
burden, and obstruct interstate and foreign commerce.
Abnormally excessive supplies overtax the facilities of
interstate and foreign transportation, congest terminal markets
and milling centers in the flow of wheat from producers to
consumers, depress the price of wheat in interstate and foreign
commerce and otherwise disrupt the orderly marketing of such
commodity in such commerce. Abnormally deficient supplies
result in an inadequate flow of wheat and its products in
interstate and foreign commerce with consequent injurious
effects to the instrumentalities of such commerce and with
excessive increases in the prices of wheat and its products in
interstate and foreign commerce.
[It is in the interest of the general welfare that interstate
and foreign commerce in wheat and its products be protected
from such burdensome surpluses and distressing shortages, and
that a supply of wheat be maintained which is adequate to meet
domestic consumption and export requirements in years of
drought, flood, and other adverse conditions as well as in
years of plenty, and that the soil resources of the Nation be
not wasted in the production of such burdensome surpluses. Such
surpluses result in disastrously low prices of wheat and other
grains to wheat producers, destroy the purchasing power of
grain producers for industrial products, and reduce the value
of the agricultural assets supporting the national credit
structure. Such shortages of wheat result in unreasonably high
prices of flour and bread to consumers and loss of market
outlets by wheat producers.
[The conditions affecting the production and marketing of
wheat are such that, without Federal assistance, farmers,
individually or in cooperation, cannot effectively prevent the
recurrence of such surpluses and shortages and the burdens on
interstate and foreign commerce resulting therefrom, maintain
normal supplies of wheat, or provide for the orderly marketing
thereof in interstate and foreign commerce.
[Wheat which is planted and not disposed of prior to the date
prescribed by the Secretary for the disposal of excess acres of
wheat is an addition to the total supply of wheat and has a
direct effect on the price of wheat in interstate and foreign
commerce and may also affect the supply and price of livestock
and livestock products. In the circumstances, wheat not
disposed of prior to such date must be considered in the same
manner as mechanically harvested wheat in order to achieve the
policy of the Act.
[The diversion of substantial acreages from wheat to the
production of commodities which are in surplus supply or which
will be in surplus supply if they are permitted to be grown on
the diverted acreage would burden, obstruct, and adversely
affect interstate and foreign commerce in such commodities, and
would adversely affect the prices of such commodities in
interstate and foreign commerce. Small changes in the supply of
a commodity could create a sufficient surplus to affect
seriously the price of such commodity in interstate and foreign
commerce. Large changes in the supply of such commodity could
have a more acute effect on the price of the commodity in
interstate and foreign commerce and, also, could overtax the
handling, processing, and transportation facilities through
which the flow of interstate and foreign commerce in such
commodity is directed. Such adverse effects caused by
overproduction in one year could further result in a deficient
supply of the commodity in the succeeding year, causing
excessive increases in the price of the commodity in interstate
and foreign commerce in such year. It is, therefore, necessary
to prevent acreage diverted from the production of wheat to be
used to produce commodities which are in surplus supply or
which will be in surplus supply if they are permitted to be
grown on the diverted acreage.
[The provisions of this part affording a cooperative plan to
wheat producers are necessary in order to minimize recurring
surpluses and shortages of wheat in interstate and foreign
commerce, to provide for the maintenance of adequate reserve
supplies thereof, to provide for an adequate and orderly flow
of wheat and its products in interstate and foreign commerce at
prices which are fair and reasonable to farmers and consumers,
and to prevent acreage diverted from the production of wheat
from adversely affecting other commodities in interstate and
foreign commerce.
[PROCLAMATIONS OF SUPPLIES AND ALLOTMENTS
[Sec. 332. (a) Whenever prior to April 15 in any calendar
year the Secretary determines that the total supply of wheat in
the marketing year beginning in the next succeeding calendar
year will, in the absence of a marketing quota program, likely
be excessive, the Secretary shall proclaim that a national
marketing quota for wheat shall be in effect for such marketing
year and for either the following marketing year or the
following two marketing years, if the Secretary determines and
declares in such proclamation that a two- or three-year
marketing quota program is necessary to effectuate the policy
of the Act.
[(b) If a national marketing quota for wheat has been
proclaimed for any marketing year, the Secretary shall
determine and proclaim the amount of the national marketing
quota for such marketing year not earlier than January 1 or
later than April 15 of the calendar year preceding the year in
which such marketing year begins. The amount of the national
marketing quota for wheat for any marketing year shall be an
amount of wheat which the Secretary estimates (i) will be
utilized during such marketing year for human consumption in
the United States as food, food products, and beverages,
composed wholly or partly of wheat, (ii) will be utilized
during such marketing year in the United States for seed, (iii)
will be exported either in the form of wheat or products
thereof and (iv) will be utilized during such marketing year in
the United States as livestock (including poultry) feed,
excluding the estimated quantity of wheat which will be
utilized for such purpose as a result of the substitution of
wheat for feed grains under section 328 of the Food and
Agriculture Act of 1962; less (A) an amount of wheat equal to
the estimated imports of wheat into the United States during
such marketing year and, (B) if the stocks of wheat owned by
the Commodity Credit Corporation are determined by the
Secretary to be excessive, an amount of wheat determined by the
Secretary to be a desirable reduction in such marketing year in
such stocks to achieve the policy of the Act: Provided, That if
the Secretary determines that the total stocks of wheat in the
Nation are insufficient to assure an adequate carryover for the
next succeeding marketing year, the national marketing quota
otherwise determined shall be increased by the amount the
Secretary determines to be necessary to assure an adequate
carryover: And provided further, That the national marketing
quota for wheat for any marketing year shall be not less than
one billion bushels.
[(c) If after the proclamation of a national marketing quota
for wheat for any marketing year, the Secretary has reason to
believe that, because of a national emergency or because of a
material increase in the demand for wheat, the national
marketing quota should be terminated or the amount thereof
increased, he shall cause an immediate investigation to be made
to determine whether such action is necessary in order to meet
such emergency or increase in the demand for wheat. If on the
basis of such investigation, the Secretary finds that such
action is necessary, he shall immediately proclaim such finding
and the amount of any such increase found by him to be
necessary and thereupon such national marketing quota shall be
so increased or terminated. In case any national marketing
quota is increased under this subsection, the Secretary shall
provide for such increase by increasing acreage allotments
established under this part by a uniform percentage.
[(d) Notwithstanding any other provision of this Act, the
Secretary shall not proclaim a national marketing quota for the
crops of wheat planted for harvest in the calendar years 1966
through 1970, and farm marketing quotas shall not be in effect
for such crops of wheat.
[NATIONAL ACREAGE ALLOTMENT
[Sec. 333. The Secretary shall proclaim a national acreage
allotment for each crop of wheat. The amount of the national
acreage allotment for any crop of wheat shall be the number of
acres which the Secretary determines on the basis of the
projected national yield and expected underplantings (acreage
other than that not harvested because of program incentives) of
farm acreage allotments will produce an amount of wheat equal
to the national marketing quota for wheat for the marketing
year for such crop, or if a national marketing quota was not
proclaimed, the quota which would have been determined if one
had been proclaimed.
[APPORTIONMENT OF NATIONAL ACREAGE ALLOTMENT
[Sec. 334. (a) The national allotment for wheat, less a
reserve of not to exceed 1 per centum thereof for apportionment
as provided in this subsection and less the special acreage
reserve provided for in this subsection, shall be apportioned
by the Secretary among the States on the basis of the preceding
year's allotment for each such State, including all amounts
allotted to the State and including for 1967 the increased
acreage in the State allotted for 1966 under section 335,
adjusted to the extent deemed necessary by the Secretary to
establish a fair and equitable apportionment base for each
State, taking into consideration established crop rotation
practices, estimated decrease in farm allotments because of
loss of history, and other relevant factors. The reserve
acreage set aside herein for apportionment by the Secretary
shall be used (1) to make allotments to counties in addition to
the county allotments made under subsection (b) of this
section, on the basis of the relative needs of counties for
additional allotments because of reclamation and other new
areas coming into production of wheat, or (2) to increase the
allotment for any county, in which wheat is the principal crop
produced, on the basis of its relative need for such increase
if the average ratio of wheat acreage allotment to cropland on
old wheat farms in such county is less by at least 20 per
centum than such average ratio on old wheat farms in an
adjoining county or counties in which wheat is the principal
grain crop produced or if there is a definable contiguous area
consisting of at least 10 per centum of the cropland acreage in
such county in which the average ratio of wheat acreage
allotment to cropland on old wheat farms is less by at least 20
per centum than such average ratio on the remaining old wheat
farms in such county, provided that such low ratio of wheat
acreage allotment to cropland is due to the shift prior to 1951
from wheat to one or more alternative income-producing crops
which, because of plant disease or sustained loss of markets,
may no longer be produced at a fair profit and there is no
other alternative income-producing crop suitable for production
in the area or county. The increase in the county allotment
under clause (2) of the preceding sentence shall be used to
increase allotments for old wheat farms in the affected area to
make such allotments comparable with those on similar farms in
the adjoining areas or counties but the average ratio of
increased allotments to cropland on such farms shall not exceed
the average ratio of wheat acreage allotment to cropland on old
wheat farms in the adjoining areas or counties. There also
shall be made available a special acreage reserve of not in
excess of one million acres as determined by the Secretary to
be desirable for the purposes hereof which shall be in addition
to the national acreage reserve provided for in this
subsection. Such special acreage reserve shall be made
available to the States to make additional allotments to
counties on the basis of the relative needs of counties, as
determined by the Secretary, for additional allotments to make
adjustments in the allotments on old wheat farms (that is,
farms on which wheat has been seeded or regarded as seeded to
one or more of the, three crops immediately preceding the crop
for which the allotment is established) on which the ratio of
wheat acreage allotment to cropland on the farm is less than
one-half the average ratio of wheat acreage allotment to
cropland on old wheat farms in the county. Such adjustments
shall not provide an allotment for any farm which would result
in an allotment-cropland ratio for the farm in excess of one-
half of such county average ratio and the total of such
adjustments in any county shall not exceed the acreage made
available therefor in the county. Such apportionment from the
special acreage reserve shall be made only to counties where
wheat is a major income-producing crop, only to farms on which
there is limited opportunity for production of an alternative
income-producing crop, and only if an efficient farming
operation on the farm requires the allotment of additional
acreage from the special acreage reserve. For the purposes of
making adjustments hereunder the cropland on the farm shall not
include any land developed as cropland subsequent to the 1963
crop year.
[(b) The State acreage allotment for wheat, less a reserve of
not to exceed 3 per centum thereof for apportionment as
provided in subsection (c) of this section, shall be
apportioned by the Secretary among the counties in the State,
on the basis of the preceding year's wheat allotment in each
such county, including for 1967, the increased acreage in the
county allotted for 1966 pursuant to section 335, adjusted to
the extent deemed necessary by the Secretary in order to
establish a fair and equitable apportionment base for each
county, taking into consideration established crop rotation
practices, estimated decrease in farm allotments because of
loss of history, and other relevant factors.
[(c)(1) The allotment to the county shall be apportioned by
the Secretary, through the local committees, among the farms
within the county on the basis of past acreage of wheat,
tillable acres, crop rotation practices, type of soil, and
topography: Not more than 3 per centum of the State allotment
shall be apportioned to farms on which wheat has not been
planted during any of the three marketing years immediately
preceding the marketing year in which the allotment is made.
For the purpose of establishing farm acreage allotments--(i)
the past acreage of wheat on any farm for 1958 or 1965 shall be
the base acreage determined for the farm under the regulations
issued by the Secretary for determining 1958 or 1965 farm wheat
acreage allotments; (ii) if subsequent to the determination of
such base acreage the 1958 or 1965 wheat acreage allotment for
the farm is increased through administrative, review, or court
proceedings, the 1958 or 1965 farm base acreage shall be
increased in the same proportion; and (iii) the past acreage of
wheat for 1959 and any subsequent year except 1965 shall be the
wheat acreage on the farm which is not in excess of the farm
wheat acreage allotment, plus, in the case of any farm which is
in compliance with its farm wheat acreage allotment, the
acreage diverted under such wheat allotment programs: Provided,
That for 1959 and subsequent years in the case of any farm on
which the entire amount of the farm marketing excess is
delivered to the Secretary or stored in accordance with
applicable regulations to avoid or postpone payment of the
penalty, the past acreage of wheat for the year in which such
farm marketing excess is so delivered or stored shall be the
farm base acreage of wheat determined for the farm under the
regulations issued by the Secretary for determining farm wheat
acreage allotments for such year, but if any part of the amount
of wheat so stored is later depleted and penalty becomes due by
reason of such depletion for the purpose of establishing farm
wheat acreage allotments subsequent to such depletion the past
acreage of wheat or the farm for the year in which the excess
was produced shall be reduced to the farm wheat acreage
allotment for such year.
[(2) Notwithstanding any other provision of law, each old or
new farm acreage allotment for the 1962 crop of wheat as
determined on the basis of a minimum national acreage allotment
of fifty million acres shall be reduced by 10 per centum. In
the event notices of farm acreage allotments for the 1962 crop
of wheat have been mailed to farm operators prior to the
effective date of this subparagraph (2), new notices showing
the required reduction shall be mailed to farm operators as
soon as practicable.
[(3) Notwithstanding the provisions of paragraph (1) of this
subsection, the past acreage of wheat for 1967 and any
subsequent year shall be the acreage of wheat planted, plus the
acreage regarded as planted, for harvest as grain on the farm
which is not in excess of the farm acreage allotment.
[(4) Notwithstanding any other provision of this subsection
(c), the farm acreage allotment for the 1967 and any subsequent
crop of wheat shall be established for each old farm by
apportioning the county wheat acreage allotment among farms in
the county on which wheat has been planted, or is considered to
have been planted, for harvest as grain in any one of the three
years immediately preceding the year for which allotments are
determined on the past acreage of wheat and the farm acreage
allotment for the year immediately preceding the year for which
the allotment is being established, adjusted as hereinafter
provided. For purposes of this paragraph, the acreage allotment
for the immediately preceding year may be adjusted to reflect
established crop rotation practices, may be adjusted downward
to reflect a reduction in the tillable acreage on the farm, and
may be adjusted upward to reflect such other factors as the
Secretary determines should be considered for the purpose of
establishing a fair and equitable allotment: Provided, That (i)
for the purposes of computing the allotment for any year, the
acreage allotment for the farm for the immediately preceding
year shall be decreased by 7 per centum if for the year
immediately preceding the year for which such reduction is made
neither a voluntary diversion program nor a voluntary
certificate program was in effect and there was noncompliance
with the farm acreage allotment for such year; (ii) for
purposes of clause (i) any farm on which the entire amount of
farm marketing excess is delivered to the Secretary, stored, or
adjusted to zero in accordance with applicable regulations to
avoid or postpone payment of the penalty when farm marketing
quotas are in effect, shall be considered in compliance with
the allotment, but if any part of the amount of wheat so stored
is later depleted and penalty becomes due by reason of such
depletion, the allotment for such farm next computed after
determination of such depletion shall be reduced by reducing
the allotment for the immediately preceding year by 7 per
centum and (iii) for purposes of clause (i) if the Secretary
determines that the reduction in the allotment does not provide
fair and equitable treatment to producers on farms following
special crop rotation practices, he may modify such reduction
in the allotment as he determines to be necessary' to provide
fair and equitable treatment to such producers.
[(g) Notwithstanding any other provision of law, no acreage
in the commercial wheat producing area seeded to wheat for
harvest as grain in 1958 or thereafter except 1965 in excess of
acreage allotments shall be considered in establishing future
State and county acreage allotments. The planting on a farm in
the commercial wheat producing area of wheat of the 1958 or any
subsequent crop for which no farm wheat acreage allotment was
established shall not make the farm eligible for an allotment
as an old farm pursuant to the first sentence of subsection (c)
of this section nor shall such farm by reason of such planting
be considered ineligible for an allotment as a new farm under
the second sentence of such subsection.
[(i) If with respect to any crop of wheat, the Secretary
finds that the acreage allotments of farms producing any type
of wheat are inadequate to provide for the production of a
sufficient quantity of such type of wheat to satisfy the demand
therefor, the wheat acreage allotment for such crop for each
farm located in a county designated by the Secretary as a
county which (1) is capable of producing such type of wheat,
and (2) has produced such type of wheat for commercial food
products during one or more of the five years immediately
preceding the year in which such crop is harvested, shall be
increased by such uniform percentage as he deems necessary to
provide for such quantity. No increase shall be made under this
subsection in the wheat acreage allotment of any farm for any
crop if any wheat other than such type of wheat is planted on
such farm for such crop. Any increases in wheat acreage
allotments authorized by this subsection shall be in addition
to the National, State, and county wheat acreage allotments,
and such increases shall not be considered in establishing
future State, county, and farm allotments. The provisions of
paragraph (6) of Public Law 74, Seventy-seventh Congress (7
U.S.C. 1340(6)), and section 326(b) of this Act, relating to
the reduction of the storage amount of wheat shall apply to the
allotment for the farm established without regard to this
subsection and not to the increased allotment under this
subsection. The land use provisions of section 339 shall not be
applicable to any farm receiving an increased allotment under
this subsection and the producers on such farms shall not be
required to comply with such provisions as a condition of
eligibility for price support.
[(j) Notwithstanding any other provision of this Act, the
Secretary shall increase the acreage allotments for the 1970
and subsequent crops of wheat for privately owned farms in the
irrigable portion of the area known as the Tulelake division of
the Klamath project of California located in Modoc and Siskiyou
Counties, California, as defined by the United States
Department of the Interior, Bureau of Reclamation, and
hereinafter referred to as the area. The increase for the area
for each such crop shall be determined by adding, to the extent
applications are made therefor, to the total allotments
established for privately owned farms in the area for the
particular crop without regard to this subsection (hereinafter
referred to as the original allotments) an acreage sufficient
to make available for each such crop a total allotment of
twelve thousand acres for the area. The additional allotments
made available by this subsection shall be in addition to the
National, State, and county allotments otherwise established
under this section, and the acreage planted to wheat pursuant
to such increases in allotments shall not be taken into account
in establishing future State, county, and farm acreage
allotments except as may be desirable in providing increases in
allotments for subsequent years under this subsection for the
production of Durum wheat. The Secretary shall apportion the
additional allotment acreage made available under this
subsection between Modoc and Siskiyou Counties on the basis of
the relative needs for additional allotments for the portion of
the area in each county. The Secretary shall allot such
additional acreage to individual farms in the area for which
applications for increased acreages are made on the basis of
tillable acres, crop rotation practices, type of soil and
topography, and the original allotment for the farm, if any.
The increase in the wheat acreage allotment for any farm under
this subsection (1) shall not be taken into account in
computing the farm wheat marketing allocation under section
379b, and (2) shall be conditioned upon the production of Durum
wheat on the original allotment and on the increased acreage.
The producers on a farm receiving an increased allotment under
this subsection shall not be eligible for diversion payments
under section 339.
[(k) Notwithstanding any other provision of this Act, if the
Secretary determines that because of a natural disaster a
portion of the farm wheat acreage allotments in a county cannot
be timely planted or replanted, he may authorize the transfer
of all or a part of the wheat acreage allotment for any farm in
the county so affected to another farm in the county or in an
adjoining county on which one or more of the producers on the
farm from which the transfer is to be made will be engaged in
the production of wheat and will share in the proceeds thereof
in accordance with such regulations as the Secretary may
prescribe. Any farm allotment transferred under this subsection
shall be deemed to be planted on the farm which it was
transferred for the purposes of acreage history credits under
this Act.
[COMMERCIAL AREA
[Sec. 334a. If the acreage allotment for any State for any
crop of wheat is twenty five thousand acres or less, the
Secretary, in order to promote efficient administration of this
Act and the Agricultural Act of 1949, may designate such State
as outside the commercial wheat producing area for the
marketing year for such crop. If such State is so designated,
acreage allotments for such crop and marketing quotas for the
marketing year therefor shall not be applicable to any farm in
such State. Acreage allotments in any State shall not be
increased by reason of such designation.
[REFERENDUM
[Sec. 336. If a national marketing quota for wheat for one,
two or three marketing years is proclaimed, the Secretary
shall, not later than August 1 of the calendar year in which
such national marketing quota is proclaimed, conduct a
referendum, by secret ballot, of farmers to determine whether
they favor or oppose marketing quotas for the marketing year or
years for which proclaimed. Any producer who has a farm acreage
allotment shall be eligible to vote in any referendum held
pursuant to this section, except that a producer who has a farm
acreage allotment of less than fifteen acres shall not be
eligible to vote unless the farm operator elected pursuant to
section 335 to be subject to the farm marketing quota. The
Secretary shall proclaim the results of any referendum held
hereunder within thirty days after the date of such referendum
and if the Secretary determines that more than one-third of the
farmers voting in the referendum voted against marketing
quotas, the Secretary shall proclaim that marketing quotas will
not be in effect with respect to the crop of wheat produced for
harvest in the calendar year following the calendar year in
which the referendum is held. If the Secretary determines that
two-thirds or more of the farmers voting in a referendum
approve marketing quotas for a period of two or three marketing
years, no referendum shall be held for the subsequent year or
years of such period. Notwithstanding any other provision
hereof the referendum with respect to the national marketing
quota for wheat for the marketing year beginning June 1, 1986,
may be conducted not later than thirty-one days after
adjournment sine die of the first session of the Ninety-ninth
Congress.
[TRANSFER OF QUOTAS
[Sec. 338. Farm marketing quotas for wheat shall not be
transferable, but, in accordance with regulations prescribed by
the Secretary for such purpose, any farm marketing quota in
excess of the supply of wheat for such farm for any marketing
year may be allocated to other farms on which the acreage
allotment has not been exceeded.
[LAND USE
[Sec. 339. (a)(1) During any year in which marketing quotas
for wheat are in effect, the producers on any farm (except a
new farm receiving an allotment from the reserve for new farms)
on which any crop is produced on acreage required to be
diverted from the production of wheat shall be subject to a
penalty on such crop, in addition to any marketing quota
penalty applicable to such crops, as provided in this
subsection unless (1) the crop is designated by the Secretary
as one which is not in surplus supply and will not be in
surplus supply if it is permitted to be grown on the diverted
acreage, or as one the production of which will not
substantially impair the purpose of the requirements of this
section, or (2) no wheat is produced on the farm, and the
producers have not filed an agreement or a statement of
intention to participate in the payment program formulated
pursuant to subsection (b) of this section. The acreage
required to be diverted from the production of wheat on the
farm shall be an acreage of cropland equal to the number of
acres determined by multiplying the farm acreage allotment by
the diversion factor determined by dividing the number of acres
by which the national acreage allotment (less an acreage equal
to the increased acreage allotment for 1966 pursuant to section
335) is reduced below fifty-five million acres by the number of
acres in the national acreage allotment (less an acreage equal
to the increased acreage allotted for 1966 pursuant to section
335). The actual production of any crop subject to penalty
under this subsection shall be regarded as available for
marketing and the penalty on such crop shall be computed on the
actual acreage of such crop at the rate of 65 per centum of the
parity price per bushel of wheat as of May 1 of the calendar
year in which such crop is harvested, multiplied by the normal
yield of wheat per acre established for the farm. Until the
producers on any farm pay the penalty on such crop, the entire
crop of wheat produced on the farm and any subsequent crop of
wheat subject to marketing quotas in which the producer has an
interest shall be subject to a lien in favor of the United
States for the amount of the penalty. Each producer having an
interest in the crop or crops on acreage diverted or required
to be diverted from the production of wheat shall be jointly
and severally liable for the entire amount of the penalty. The
persons liable for the payment or collection of the penalty
under this section shall be liable also for interest thereon at
the rate of 6 per centum per annum from the date the penalty
becomes due until the date of payment of such penalty.
[(2) The Secretary may require that the acreage on any farm
diverted from the production of wheat be land which was
diverted from the production of wheat in the previous year, to
the extent he determines that such requirement is necessary to
effectuate the purposes of this subtitle.
[(3) The Secretary may permit the diverted acreage to be
grazed in accordance with regulations prescribed by the
Secretary.
[(g) The Secretary is authorized to promulgate such
regulations as may be desirable to carry out the provisions of
this section.
[PART IV--MARKETING QUOTAS--COTTON
[LEGISLATIVE FINDINGS
[Sec. 341. American cotton is a basic source of clothing and
industrial products used by every person in the United States
and by substantial numbers of people in foreign countries.
American cotton is sold on a world-wide market and moves from
the places of production almost entirely in interstate and
foreign commerce to processing establishments located
throughout the world at places outside the State where the
cotton is produced.
[Fluctuations in supplies of cotton and the marketing of
excessive supplies of cotton in interstate and foreign commerce
disrupt the orderly marketing of cotton in such commerce with
consequent injury to and destruction of such commerce.
Excessive supplies of cotton directly and materially affect the
volume of cotton moving in interstate and foreign commerce and
cause disparity in prices of cotton and industrial products
moving in interstate and foreign commerce with consequent
diminution of the volume of such commerce in industrial
products.
[The conditions affecting the production and marketing of
cotton are such that, without Federal assistance, farmers,
individually or in cooperation, cannot effectively prevent the
recurrence of excessive supplies of cotton and fluctuations in
supplies, cannot prevent indiscriminate dumping of excessive
supplies on the Nationwide and foreign markets, cannot maintain
normal carryovers of cotton, and cannot provide for the orderly
marketing of cotton in interstate and foreign commerce.
[It is in the interest of the general welfare that interstate
and foreign commerce in cotton be protected from the burdens
caused by the marketing of excessive supplies of cotton in such
commerce, that a supply of cotton be maintained which is
adequate to meet domestic consumption and export requirements
in years of drought, flood, and other adverse conditions as
well as in years of plenty, and that the soil resources of the
Nation be not wasted in the production of excessive supplies of
cotton.
[The provisions of this part affording a cooperative plan to
cotton producers are necessary and appropriate to prevent the
burdens on interstate and foreign commerce caused by the
marketing in such commerce of excessive supplies, and to
promote, foster, and maintain an orderly flow of an adequate
supply of cotton in such commerce.
[NATIONAL MARKETING QUOTA
[Sec. 342. Whenever during any calendar year the Secretary
determines that the total supply of cotton for the marketing
year beginning in such calendar year will exceed the normal
supply for such marketing year, the Secretary shall proclaim
such fact and a national marketing quota shall be in effect for
the crop of cotton produced in the next calendar year. The
Secretary shall also determine and specify in such proclamation
the amount of the national marketing quota in terms of the
number of bales of cotton (standard bales of five hundred
pounds gross weight) adequate, together with (1) the estimated
carryover at the beginning of the marketing year which begins
in the next calendar year and (2) the estimated imports during
such marketing year, to make available a normal supply of
cotton: Provided, That beginning with the 1961 crop, the
national marketing quota shall be not less than a number of
bales equal to the estimated domestic consumption and estimated
exports (less estimated imports) for the marketing year for
which the quota is proclaimed, except that the Secretary shall
make such adjustments in the amount of such quota as he
determines necessary after taking into consideration the
estimated stocks of cotton in the United States (including the
qualities of such stocks) and stocks in foreign countries which
would be available for the marketing year for which the quota
is being proclaimed if no adjustment of such quota is made
hereunder, to assure the maintenance of adequate but not
excessive stocks in the United States to provide a continuous
and stable supply of the different qualities of cotton needed
in the United States and in foreign cotton consuming countries,
and for purposes of national security but the Secretary, in
making such adjustments, may not reduce the national marketing
quota or any year below (i) one million bales less than the
estimated domestic consumption and estimated exports for the
marketing year for which such quota is being proclaimed, or
(ii) ten million bales, whichever is larger. Such proclamation
shall be made not later than October 15 of the calendar year in
which such determination is made. Notwithstanding any other
provision of this Act, the national marketing quota for upland
cotton for 1959 and subsequent years shall be not less than the
number of bales required to provide a national acreage
allotment for each such year of sixteen million acres.
[Sec. 342a. The Secretary shall, not later than November 15,
of the calendar years 1970 through 1976, proclaim a national
cotton production goal for the 1971 and subsequent crops of
upland cotton. The national cotton production goal for any year
shall be the number of bales of upland cotton (standard bales
of four hundred and eighty pounds net weight) equal to the
estimated domestic consumption and estimated exports for the
marketing year beginning in the calendar year for which such
national cotton production goal is proclaimed, plus an
allowance of not less than 5 per centum of such estimated
consumption and estimated exports for market expansion except
that the Secretary shall make such adjustments in the amount of
such production goal as he determines necessary after taking
into consideration the estimated stocks of upland cotton in the
United States (including the qualities of such stocks) and
stocks in foreign countries, which would be available for the
marketing year, to assure the maintenance of adequate but not
excessive carryover stocks in the United States (not less than
50 per centum of the average offtake for the three preceding
marketing years) to provide a continuous and stable supply of
the different qualities of upland cotton needed in the United
States and in foreign cotton consuming countries and, in
addition, to provide an adequate reserve for purposes of
national security.
[REFERENDUM
[Sec. 343. Not later than December 15 following the issuance
of the marketing quota proclamation provided for in section
342, the Secretary shall conduct a referendum, by secret
ballot, of farmers engaged in the production of cotton in the
calendar year in which the referendum is held, to determine
whether such farmers are in favor of or opposed to the quota so
proclaimed: Provided, That If more than one third of the
farmers voting in the referendum oppose the national marketing
quota, such quota shall become ineffective upon proclamation of
the results of the referendum. The Secretary shall proclaim the
results of any referendum held hereunder within thirty days
after the date of such referendum. Notwithstanding any other
provision hereof the referendum with respect to the national
marketing quota for cotton for the marketing year beginning
August 1, 1986, may be conducted not later than thirty-one days
after adjournment sine die of the first session of the Ninety-
ninth Congress.
[ACREAGE ALLOTMENTS
[Sec. 344. (a) Whenever a national marketing quota is
proclaimed under section 342, the Secretary shall determine and
proclaim a national acreage allotment for the crop of cotton to
be produced in the next calendar year. The national acreage
allotment for cotton shall be that acreage, based upon the
national average yield per acre of cotton for the four years
immediately preceding the calendar year in which the national
marketing quota is proclaimed, required to make available from
such crop an amount of cotton equal to the national marketing
quota.
[(b) The national acreage allotment for cotton for 1953 and
subsequent years shall be apportioned to the States on the
basis of the acreage planted to cotton (including the acreages
regarded as having been planted to cotton under the provisions
of Public Law 12, Seventy-ninth Congress) during the five
calendar years immediately preceding the calendar year in which
the national marketing quota is proclaimed, with adjustments
for abnormal weather conditions during such period: Provided,
That there is hereby established a national acreage reserve
consisting of three hundred and ten thousand acres which shall
be in addition to the national acreage allotment; and such
reserve shall be apportioned to the States on the basis of
their needs for additional acreage for establishing minimum
farm allotments under subsection (f)(1), as determined by the
Secretary without regard to State and count acreage reserves
(except that the amount apportioned to Nevada sell be one
thousand acres). For the 1960 and succeeding crops of cotton,
the needs of States (other than Nevada) for such additional
acreage for such purpose may be estimated by the Secretary,
after taking into consideration such needs as determined or
estimated for the preceding crop of cotton and the size of the
national acreage allotment for such crop. The additional
acreage so apportioned to the State shall be apportioned to the
counties on the basis of the needs of the counties for such
additional acreage for such purpose, and added to the county
acreage allotment for apportionment to farms pursuant to
subsection (f) of this section (except that no part of such
additional acreage shall be used to increase the county reserve
above 15 per centum of the county allotment determined without
regard to such additional acreage). Additional acreage
apportioned to a State for any year under the foregoing proviso
shall not be taken into account in establishing future State
acreage allotments. Needs for additional acreage under the
foregoing provisions and under the last provision in subsection
(e) shall be determined or estimated as though allotments were
first computed without regard to subsection (f)(1).
[(e) The State acreage allotment for cotton shall be
apportioned to counties on the same basis as to years and
conditions as is applicable to the State under subsections (b),
(c), and (d) of this section: Provided, That the State
committee may reserve not to exceed 10 per centum of its State
acreage allotment (15 per centum if the State's 1948 planted
acreage was in excess of one million acres and less than half
its 1943 allotment) which shall be used to make adjustments in
county allotments for trends in acreage, for counties adversely
affected by abnormal conditions affecting plantings, or for
small or new farms, or to correct inequities in farm allotments
and to prevent hardship: Provided further, That if the
additional acreage allocated to a State under the proviso in
subsection (b) is less than the requirements as determined or
estimated by the Secretary for establishing minimum farm
allotments for the State under subsection (f)(1), the acreage
reserved under this subsection shall not be less than the
smaller of (1) the remaining acreage so determined or estimated
to be required for establishing minimum farm allotments or (2)
3 per centum of the State acreage allotment; and the acreage
which is required to be reserved under this proviso shall be
allocated to counties on the basis of their needs for
additional acreage for establishing minimum farm allotments
under subsection (f)(1), and added to the county acreage
allotment for apportionment to farms pursuant to subsection (f)
of this section (except that no part of such additional acreage
shall be used to increase the county reserve above 15 per
centum of the county allotment determined without regard to
such additional acreages).
[(f) The county acreage allotment, less not to exceed the
percentage provided for in paragraph (3) of this subsection
shall be apportioned to farms on which cotton has been planted
(or regarded as having been planted under the provisions of
Public Law 12, Seventy-ninth Congress) in any one of the three
years immediately preceding the year for which such allotment
is determined on the following basis:
[(1) Insofar as such acreage is available, there
shall be allotted the smaller of the following: (A) ten
acres; or (B) the acreage allotment established for the
farm for the 1958 crop.
[(2) The remainder shall be allotted to farms other
than farms to which an allotment has been made under
paragraph (1)(B) so that the allotment to each farm
under this paragraph together with the amount of the
allotment to such farm under paragraph (1)(A) shall be
a prescribed percentage (which percentage shall be the
same for all such farms in the county or administrative
areas) of the acreage, during the preceding year, on
the farm which is tilled annually or in regular
rotation, excluding from such acreages the acres
devoted to the production of sugar cane for sugar,
sugar beets for sugar, wheat, tobacco, or rice for
market; peanuts picked and threshed; wheat or rice or
feeding to livestock for market; or lands determined to
be voted primarily to orchards or vineyards, and
nonirrigated lands in irrigated area: Provided,
however, That if a farm would be allotted under this
paragraph an acreage together with the amount of the
allotment to such farm under paragraph (1)(A) in excess
of the largest acreage planted (and regarded as planted
under Public Law 12, Seventy-ninth Congress) to cotton
during any of the preceding three years, the acreage
allotment for such farm shall not exceed such largest
acreage so planted (and regarded as planted under
Public Law 12, Seventy-ninth Congress) in any such
year.
[(3) The county committee may reserve not in excess
of 15 per centum of the county allotment which, in
addition to the acreage made available under the
proviso in subsection (e), shall be used for (A)
establishing allotments for farms on which cotton was
not planted (or regarded as planted under Public Law
12, Seventy-ninth Congress) during any of the three
calendar years immediately preceding the year for which
the allotment is made, on the basis of land, labor, and
equipment available for the production of cotton, crop
rotation practices, and the soil and other physical
facilities affecting the production of cotton; and (B)
making adjustments of the farm acreage allotments
established under paragraphs (1) and (2) of this
subsection so as to establish allotments which are fair
and reasonable in relation to the factors set forth in
this paragraph and abnormal conditions of production on
such farms, or in making adjustments in farm acreage
allotments to correct inequities and to prevent
hardship: Provided, That not less than 20 percent of
the acreage reserved under this subsection shall, to
the extent required, be allotted upon such basis as the
Secretary deems fair and reasonable to farms (other
than farms to which an allotment has been made under
subsection (f)(1)(B), if any, to which an allotment of
not exceeding fifteen acres may be made under other
provisions of this subsection.
[(6) Notwithstanding the provisions of paragraph (2)
of this subsection, if the county committee recommends
such action and the Secretary determines that such
action will result in a more equitable distribution of
the county allotment among farms in the county, the
remainder of the county acreage allotment (after making
allotments as provided in paragraph (1) of this
subsection) shall be allotted to farms other than farms
to which an allotment has been made under paragraph
(1)(B) of this subsection so that the allotment to each
farm under this paragraph together with the amount of
the allotment of such farm under paragraph (1)(A) of
this subsection shall be a prescribed percentage (which
percentage shall be the same for all such farms in the
county) of the average acreage planted to cotton on the
farm during the three years immediately preceding the
year for which such allotment is determined, adjusted
as may be necessary for abnormal conditions affecting
plantings during such three year period: Provided, That
the county committee may in its discretion limit any
farm acreage allotment established under the provisions
of this paragraph for any year to an acreage not in
excess of 50 per centum of the cropland on the farm, as
determined pursuant to the provisions of paragraph (2)
of this subsection: Provided further, That any part of
the county acreage allotment not apportioned under this
paragraph by reason of the initial application of such
50 per centum limitation shall be added to the county
acreage reserve under paragraph (3) of this subsection
and shall be available for the purposes specified
therein. If the county acreage allotment is apportioned
among the farms of the county in accordance with the
provisions of this paragraph, the acreage reserved
under paragraph (3) of this subsection may be used to
make adjustments so as to establish allotments which
are fair and reasonable to farms receiving allotments
under this paragraph in relation to the factors set
forth in paragraph (3).
[(7)(A) In the event that any farm acreage allotment
is less than that prescribed by paragraph (1), such
acreage allotment shall be increased to the acreage
prescribed by paragraph (1). The additional acreage
required to be allotted to farms under this paragraph
shall be in addition to the county, State, and national
acreage allotments and the production from such acreage
shall be in addition to the national marketing quota.
[(B) Notwithstanding any other provision of law--
[(i) the acreage by which any farm acreage
allotment for 1959 or any subsequent crop
established under paragraph (1) exceeds the
acreage which would have been allotted to such
farm if its allotment had been computed on the
basis of the same percentage factor applied to
other farms in the county under paragraph (2),
(6), or (8) shall not be taken into account in
establishing the acreage allotment for such
farm for any crop for which acreage is allotted
to such farm under paragraph (2), (6), or (8);
and acreage shall be allotted under paragraph
(2), (6), or (8) to farms which did not receive
1958 crop allotments in excess of ten acres if
and only if the Secretary determines (after
considering the allotments to other farms in
the county for such crop compared with their
1958 allotments and other relevant factors)
that equity and justice require the allotment
of additional acreage to such farm under
paragraph (2), (6), or (8),
[(ii) the acreage by which any county acreage
allotment for 1959 or any subsequent crop is
increased from the national or State reserve on
the basis of its needs for additional acreage
for establishing minimum farm allotments shall
not be taken into account in establishing
future county acreage allotments, and
[(iii) the additional acreage allotted
pursuant to subparagraph (A) of this paragraph
(7) shall not be taken into account in
establishing future State, county, or farm
acreage allotments.
[(8) Notwithstanding the foregoing provisions of
paragraphs (2) and (6) of this subsection, the
Secretary shall, if allotments were in effect the
preceding year, provide for the county acreage
allotment for the 1959 and succeeding crops of cotton,
less the acreage reserved under paragraph (3) of this
subsection, to be apportioned to farms on which cotton
has been planted in any one of the three years
immediately preceding the year for which such allotment
is determined, on the basis of the farm acreage
allotment for the year immediately preceding the year
for which such apportionment is made, adjusted as may
be necessary (i) for any change in the acreage of
cropland available for the production of cotton, or
(ii) to meet the requirements of any provision (other
than those contained in paragraphs (2) and (6)) with
respect to the counting of acreage for history
purposes: Provided, That, beginning with allotments
established for the 1961 crop of cotton, if the acreage
actually planted (or regarded as planted under the Soil
Bank Act, the Great Plains program, and the release and
reapportionment provisions of subsection (m)(2) of this
section) to cotton on the farm in the preceding year
was less than 75 per centum of the farm allotment for
such year or, in the case of a farm which qualified for
price support on the crop produced in such year under
section 103(b) of the Agricultural Act of 1949, as
amended, 75 per centum of the farm domestic allotment
established under section 350 for such year, whichever
is smaller, in lieu of using such allotment as the farm
base as provided in this paragraph, the base shall be
the average of (1) the cotton acreage for the farm for
the preceding year as determined for purposes of this
proviso and (2) the allotment established for the farm
pursuant to the provisions of this subsection (f) for
such preceding year; and the 1958 allotment used for
establishing the minimum farm allotment under paragraph
(1) of this subsection (f) shall be adjusted to the
average acreage so determined. The base for a farm
shall not be adjusted as provided in this paragraph if
the county committee determines that failure to plant
at least 75 per centum of the farm allotment was due to
conditions beyond the control of producers on the farm.
The Secretary shall establish limitations to prevent
allocations of allotment to farms not affected by the
foregoing proviso, which would be excessive on the
basis of the cropland, past cotton acreage, allotments
for other commodities, and good soil conservation
practices on such farms.
[(g) Notwithstanding the foregoing provisions of this
section--
[(1) State, county, and farm acreage allotments and
yields for cotton shall be established in conformity
with Public Law 28, Eighty-first Congress.
[(2) In apportioning the county allotment among the
farms within the county, the Secretary, through the
local committees, shall take into consideration
different conditions within separate administrative
areas within a county if any exist, including types,
kinds, and productivity of the soil so as to prevent
discrimination among the administrative areas of the
county.
[(i) Notwithstanding any other provision of this Act, any
acreage planted to cotton in excess of the farm acreage
allotment shall not be taken into account in establishing
State, county, and farm acreage allotments. Notwithstanding any
other provision of this Act, beginning with the 1960 crop the
planting of cotton on a farm in any of the immediately
preceding three years that allotments were in effect but no
allotment was established for such farm for any year of such
three year period shall not make the farm eligible for an
allotment as an old farm under subsection (f) of this section:
Provided, however, That by reason of such planting the farm
need not be considered as ineligible for a new farm allotment
under subsection (f)(3) of this section.
[(j) Notwithstanding any other provision of this Act, State
and county committees shall make available for inspection by
owners or operators of farms receiving cotton acreage
allotments all records pertaining to cotton acreage allotments
and marketing quotas.
[(k) Notwithstanding any other provision of this section
except subsection (g)(1), there shall be allotted to each State
for which an allotment is made under this section not less than
the smaller of (A) four thousand acres or (B) the highest
acreage planted to cotton in any one of the three calendar
years immediately preceding the year for which the allotment is
made.
[(m) Notwithstanding any other provision of law--
[(1) (Applicable only to 1954 crop of cotton.)
[(2) Any part of any farm cotton acreage allotment on
which cotton will not be planted and which is
voluntarily surrendered to the county committee shall
be deducted from the allotment to such farm and may be
reapportioned by the county committee to other farms in
the same county receiving allotments in amounts
determined by the county committee to be fair and
reasonable on the basis of past acreage of cotton,
land, labor, equipment available for the production of
cotton, crop rotation practices, and soil and other
physical facilities affecting the production of cotton.
If all of the allotted acreage voluntarily surrendered
is not needed in the county, the county committee may
surrender the excess acreage to the State committee to
be used for the same purposes as the State acreage
reserve under subsection (e) of this section. Any
allotment released under this provision shall be
regarded for the purposes of establishing future
allotments as having been planted on the farm and in
the county where the release was made rather than on
the farm and in the county to which the allotment was
transferred, except that this shall not operate to make
the farm from which the allotment was transferred
eligible for an allotment as having cotton planted
thereon during the three-year base period: Provided,
That notwithstanding any other provisions of law, any
part of any farm acreage allotment may be permanently
released in writing to the county committee by the
owner and operator of the farm, and reapportioned as
provided herein. Acreage released under this paragraph
shall be credited to the State in determining future
allotments. The provisions of this paragraph shall
apply also to extra long staple cotton covered by
section 341 of this Act.
[(n) Notwithstanding any other provision of this Act, if the
Secretary determines for any year that because of a natural
disaster a portion of the farm cotton acreage allotments in a
county cannot be timely planted or replanted in such year, he
may authorize for such year the transfer of all or part of the
cotton acreage allotment for any farm in the county so affected
to another farm in the county or in an adjoining county on
which one or more of the producers on the farm from which the
transfer is to be made will be engaged in the production of
cotton and will share in the proceeds thereof, in accordance
with such regulations as the Secretary may prescribe. Any farm
allotment transferred under this paragraph shall be deemed to
be released acreage for the purpose of acreage history credits
under section 344(f)(8), 344(m)(2), and 377 of this Act:
Provided, That, notwithstanding the provisions of section
344(m)(2) of this Act, the transfer of any farm allotment under
this subsection for any year shall operate to make the farm
from which the allotment was transferred eligible for an
allotment as having cotton planted thereon during the three-
year base period.
[SALES, LEASE AND TRANSFER OF UPLAND COTTON ACREAGE ALLOTMENTS
[Sec. 344a. (a) Notwithstanding any other provision of law,
the Secretary, if he determines that it will not impair the
effective operation of the program involved, (1) may permit the
owner and operator of any farm for which a cotton acreage
allotment is established to sell or lease all or any part or
the right to all or any part of such allotment (excluding that
part of the allotment which the Secretary determines was
apportioned to the farm from the national acreage reserve) to
any other owner or operator of a farm for transfer to such
farm; (2) may permit the owner of a farm to transfer all or any
part of such allotment to any other farm owned or controlled by
him: Provided, That the authority granted under this section
may be exercised for the calendar years 1966 through 1970, but
all transfers hereunder shall be for such period of years as
the parties thereto may agree.
[(b) Transfers under this section shall be subject to the
following conditions: (i) no allotment shall be transferred to
a farm in another State or to a person for use in another
State; (ii) no farm allotment may be sold or leased for
transfer to a farm in another county unless the producers of
cotton in the county from which transfer is being made have
voted in a referendum within three years of the date of such
transfer, by a two-thirds majority of the producers
participating in such referendum, to permit the transfer of
allotments to farms outside the county, which referendum,
insofar as practicable, shall be held in conjunction with the
marketing quota referendum for the commodity; (iii) no transfer
of an allotment from a farm subject to a mortgage or other lien
shall be permitted unless the transfer is agreed to by the
lien-holder; (iv) no sale of a farm allotment shall be
permitted if any sale of cotton allotment to the same farm has
been made within the three immediately preceding crop years;
(v) the total cotton allotment for any farm to which allotment
is transferred by sale or lease shall not exceed the farm
acreage allotment (excluding reapportioned acreage) established
for such farm for 1965 by more than one hundred acres; (vi) the
cotton in excess of the remaining acreage allotment on the farm
shall be planted on any farm from which the allotment (or part
of an allotment) is sold for a period of five years following
such sale, nor shall any cotton in excess of the remaining
acreage allotment on the farm be planted on any farm from which
the allotment (or part of an allotment) is leased during the
period of such lease, and the producer on such farm shall so
agree as a condition precedent to the Secretary's approval of
any such sale or lease; and (vii) no transfer of allotment
shall be effective until a record thereof is filed with the
county committee of the county to which such transfer is made
and such committee determines that the transfer complies with
the provisions of this section. Such record may be filed with
such committee only during the period beginning June 1 and
ending December 31.
[(c) The transfer of an allotment shall have the effect of
transferring also the acreage history, farm base, and marketing
quota attributable to such allotment and if the transfer is
made prior to the determination of the allotment for any year
the transfer shall include the right of the owner or operator
to have an allotment determined for the farm for such year:
Provided, That in the case of a transfer by lease, the amount
of the allotment shall be considered for purposes of
determining allotments after the expiration of the lease to
have been planted on the farm from which such allotment is
transferred.
[(d) The land in the farm from which the entire cotton
allotment and acreage history have been transferred shall not
be eligible for a new farm cotton allotment during the five
years following the year in which such transfer is made.
[(e) The transfer of a portion of a farm allotment which was
established under minimum farm allotment provisions for cotton
or which operates to bring the farm within the minimum farm
allotment provision for cotton shall cause the minimum farm
allotment or base to be reduced to an amount equal to the
allotment remaining on the farm after such transfer.
[(f) The Secretary shall prescribe regulations for the
administration of this section, which shall include provisions
for adjusting the size of the allotment transferred if the farm
to which the allotment is transferred has a substantially
higher yield per acre and such other terms and conditions as he
deems necessary.
[(g) If the sale or lease occurs during a period in which the
farm is covered by a conservation reserve contract, cropland
conversion agreement, cropland adjustment agreement, or other
similar land utilization agreement, the rates of payment
provided for in the contract or agreement of the farm from
which the transfer is made shall be subject to an appropriate
adjustment, but no adjustment shall be made in the contract or
agreement of the farm to which the allotment is transferred.
[(h) The Secretary shall by regulations authorize the
exchange between farms in the same county, or between farms in
adjoining counties within a State, of cotton acreage allotment
for rice acreage allotment. Any such exchange shall be made on
the basis of application filed with the county committee by the
owners and operators of the farms, and the transfer of
allotment between the farms shall include transfer of the
related acreage history for the commodity. The exchange shall
be acre for acre or on such other basis as the Secretary
determines is fair and reasonable, taking into consideration
the comparative productivity of the soil for the farms involved
and other relevant factors. No farm from which the entire
cotton or rice allotment has been transferred shall be eligible
for an allotment of cotton or rice as a new farm within a
period of five crop years after the date of such exchange.
[(i) The provisions of this section relating to cotton shall
apply only to upland cotton.
[FARM MARKETING QUOTAS
[Sec. 345. The farm marketing quota for any crop of cotton
shall be the actual production of the acreage planted to cotton
on the farm less the farm marketing excess. The farm marketing
excess shall be the normal production of that acreage planted
to cotton on the farm which is in excess of the farm acreage
allotment: Provided, That such farm marketing excess shall not
be larger than the amount by which the actual production of
cotton on the farm exceeds the normal production of the farm
acreage allotment, if the producer establishes such actual
production to the satisfaction of the Secretary.
[PENALTIES; EXPORT MARKET ACREAGE
[Sec. 346. (a) Whenever farm marketing quotas are in effect
with respect to any crop of cotton the producer shall be
subject to a penalty on the farm marketing excess at a rate per
pound equal to 50 per centum of the parity price per pound for
cotton as of June 15 of the calendar year in which such crop is
produced.
[(b) The farm marketing excess of cotton shall be regarded as
available for marketing and the amount of penalty shall be
computed upon the normal production of the acreage on the farm
planted to cotton in excess of the farm acreage allotment. If a
downward adjustment in the amount of the farm marketing excess
is made pursuant to the proviso in section 345, the difference
between the amount of the penalty computed upon the farm
marketing excess before such adjustment and as computed upon
the adjusted farm marketing excess shall be returned to or
allowed the producer.
[(c) The person liable for payment or collection of the
penalty shall be liable also for interest thereon at the rate
of 6 per centum per annum from the date the penalty becomes due
until the date of payment of such penalty.
[(d) Until the penalty on the farm marketing excess is paid,
all cotton produced on the farm and marketed by the producers
shall be subject to the penalty provided by this section and a
lien on the entire crop of cotton produced on the farm shall be
in effect in favor of the United States.
[PART V--MARKETING QUOTAS--RICE
[LEGISLATIVE FINDINGS
[Sec. 351. (a) The marketing of rice constitutes one of the
great basic industries of the United States with ramifying
activities which directly affect interstate and foreign
commerce at every point, and stable conditions therein are
necessary to the general welfare. Rice produced for market is
sold on a Nation-wide market, and, with its products, moves
almost wholly in interstate and foreign commerce from the
producer to the ultimate consumer. The farmers producing such
commodity are subject in their operations to uncontrollable
natural causes, in many cases such farmers carry on their
farming operations on borrowed money or leased lands, and are
not so situated as to be able to organize effectively, as can
labor and industry, through unions and corporations enjoying
Government sanction and protection for joint economic action.
For these reasons, among others, the farmers are unable without
Federal assistance to control effectively the orderly marketing
of such commodity with the result that abnormally excessive
supplies thereof are produced and dumped indiscriminately on
the Nation-wide market.
[(b) The disorderly marketing of such abnormally excessive
supplies affects, burdens, and obstructs interstate and foreign
commerce by (1) materially affecting the volume of such
commodity marketed therein, (2) disrupting the orderly
marketing of such commodity therein, (3) reducing the prices
for such commodity with consequent injury and destruction of
such commerce in such commodity, and (4) causing a disparity
between the prices for such commodity in interstate and foreign
commerce and industrial products therein, with a consequent
diminution of the volume of interstate and foreign commerce in
industrial products.
[(c) Whenever an abnormally excessive supply of rice exists,
the marketing of such commodity by the producers thereof
directly and substantially affects interstate and foreign
commerce in such commodity and its products, and the operation
of the provisions of this part becomes necessary and
appropriate in order to promote, foster, and maintain an
orderly flow of such supply in interstate and foreign
commerce.]
PART VI--MARKETING QUOTAS--PEANUTS
* * * * * * *
[MARKETING QUOTAS
[Sec. 358. (a) Between July 1 and December 1 of each calendar
year the Secretary shall proclaim the amount of the national
marketing quota for peanuts for the crop produced in the next
succeeding calendar year in terms of the total quantity of
peanuts which will make available for marketing a supply of
peanuts from the crop with respect to which the quota is
proclaimed equal to the average quantity of peanuts harvested
for nuts during the five years immediately preceding the year
in which such quota is proclaimed, adjusted for current trends
and prospective demand conditions, and the quota so proclaimed
shall be in effect with respect to such crop. The national
marketing quota for peanuts for any year shall be converted to
a national acreage allotment by dividing such quota by the
normal yield per acre of peanuts for the United States
determined by the Secretary on the basis of the average yield
per acre of peanuts in the five years preceding the year in
which the quota is proclaimed, with such adjustments as may be
found necessary to correct for trends in yields and for
abnormal conditions of production affecting yields in such five
years: Provided, That the national marketing quota established
for the crop produced in the calendar year 1941 shall be a
quantity of peanuts sufficient to provide a national acreage
allotment of not less than one million six hundred and ten
thousand acres, and that the national marketing quota
established for any subsequent year shall be a quantity of
peanuts sufficient to provide a national acreage allotment of
not less than that established for the crop produced in the
calendar year 1941.
[(b) Not later than December 15 of each calendar year the
Secretary shall conduct a referendum of farmers engaged in the
production of peanuts in the calendar year in which the
referendum is held to determine whether such farmers are in
favor of or opposed to marketing quotas with respect to the
crops of peanuts produced in the three calendar years
immediately following the year in which the referendum is held,
except that, if as many as two-thirds of the farmers voting in
any referendum vote in favor of marketing quotas, no referendum
shall be held with respect to quotas for the second and third
years of the period. The Secretary shall proclaim the results
of the referendum within thirty days after the date on which it
is held, and, if more than one-third of the farmers voting in
the referendum vote against marketing quotas, the Secretary
also shall proclaim that marketing quotas will not be in effect
with respect to the crop of peanuts produced in the calendar
year immediately following the calendar year in which the
referendum is held. Notwithstanding any other provision hereof,
the referendum with respect to marketing quotas for the crops
of peanuts produced in the 1986, 1987, and 1988 calendar years
may be conducted not later than thirty-one days after
adjournment sine die of the first session of the Ninety-ninth
Congress.
[(c)(1) The national acreage allotment for 1951, less the
acreage to be allotted to new farms under subsection (f) of
this section, shall be apportioned among the States on the
basis of the larger of the following for each State: (a) The
acreage allotted to the State as its share of the 1950 national
acreage allotment of two million one hundred thousand acres, or
(b) the State's share of two million one hundred thousand acres
apportioned, to States on the basis of the average acreage
harvested for nuts in each State in the five years 1945-49:
Provided, That any allotment so determined for any State which
is less than the 1951 State allotment announced by the
Secretary prior to the enactment of this Act shall be increased
to such announced allotment and the acreage required for such
increases shall be in addition to the 1951 national acreage
allotment and shall be considered in determining State acreage
allotments in future years. For any year subsequent to 1951,
the national acreage allotment for that year, shall be
apportioned among the States on the basis of their share of the
national acreage allotment for the most recent year in which
such apportionment was made:
[(2) Notwithstanding any other provision of law, if the
Secretary of Agriculture determines, on the basis of the
average yield per acre of peanuts by types during the preceding
five years, adjusted for trends in yields and abnormal
conditions of production affecting yields in such five years,
that the supply of any type or types of peanuts for any
marketing year, beginning with the 1951-52 marketing year, will
be insufficient to meet the estimated demand for cleaning and
shelling purposes at prices at which the Commodity Credit
Corporation may sell for such purposes peanuts owned or
controlled by it, the State allotments for those States
producing such type or types of peanuts shall be increased to
the extent determined by the Secretary to be required to meet
such demand but the allotment for any State may not be
increased under this provision above the 1947 harvested acreage
of peanuts for such State. The total increase so determined
shall be apportioned among such States for distribution among
farms producing peanuts of such type or types on the basis of
the average acreage of peanuts of such type or types in the
three years immediately preceding the year for which the
allotments are being determined. The additional acreage so
required shall be in addition to the national acreage
allotment, the production from such acreage shall be in
addition to the national marketing quota, and the increase in
acreage allotted under this provision shall not be considered
in establishing future State, county, or farm acreage
allotments.
[(d) The Secretary shall provide for the apportionment of the
State acreage allotment for any State, less the acreage to be
allotted to new farms under subsection (f) of this section,
through local committees among farms on which peanuts were
grown in any of the three years immediately preceding the year
for which such allotment is determined. The State acreage
allotment for 1952 and any subsequent year shall be apportioned
among farms on which peanuts were produced in any one of the 3
calendar years immediately preceding the year for which such
apportionment is made, on the basis of the following: Past
acreage of peanuts, taking into consideration the acreage
allotments previously established for the farm; abnormal
conditions affecting acreage; land, labor, and equipment
available for the production of peanuts; crop-rotation
practices; and soil and other physical factors affecting the
production of peanuts. Any acreage of peanuts harvested in
excess of the allotted acreage for any farm for any year shall
not be considered in the establishment of the allotment for the
farm in succeeding years. The amount of the marketing quota for
each farm shall be the actual production of the farm-acreage
allotment, and no peanuts shall be marketed under the quota for
any farm other than peanuts actually produced on the farm.
[(e) Notwithstanding the foregoing provisions of this
section, the Secretary may, if the State committee recommends
such action and the Secretary determines that such action will
facilitate the effective administration of the provisions of
the Act, provide for the apportionment of the State acreage
allotment for 1952 and any subsequent year among the counties
in the State on the basis of the past acreage of peanuts
harvested for nuts (excluding acreage in excess of farm
allotments) in the county during the five years immediately
preceding the year in which such apportionment is made, with
such adjustments as are deemed necessary for abnormal
conditions affecting acreage, for trends in acreage, and for
additional allotments for types of peanuts in short supply
under the provisions of subsection (c). The county acreage
allotment shall be apportioned among farms on the basis of the
factors set forth in subsection (d) of this section.
[(f) Not more than 1 per centum of the State acreage
allotment shall be apportioned among farms in the State on
which peanuts are to be produced during the calendar year for
which the allotment is made but on which peanuts were not
produced during any one of the past three years, on the basis
of the following: Past peanut-producing experience by the
producers; land, labor, and equipment available for the
production of peanuts; crop-rotation practices; and soil and
other physical factors affecting the production of peanuts.
[(g) Any part of the acreage allotted to individual farms
under the provisions of this section on which peanuts will not
be produced and which is voluntarily surrendered to the county
committee shall be deducted from the allotments to such farms
and may be reapportioned by the county committee to other farms
in the same county receiving allotments, in amounts determined
by the county committee to be fair and reasonable on the basis
of land, labor, and equipment available for the production of
peanuts, crop-rotation practices, and soil and other physical
factors affecting the production of peanuts. Any transfer of
allotments under this provision shall not operate to reduce the
allotment for any subsequent year for the farm from which
acreage is transferred, except as the farm becomes ineligible
for an allotment by failure to produce peanuts during a three-
year period, and any such transfer shall not operate to
increase the allotment for any subsequent year for the farm to
which the acreage is transferred: [Provided, That,
notwithstanding any other provisions of this Act, any part of
any farm acreage allotment may be permanently released in
writing to the county committee by the owner and operator of
the farm, and reapportioned as provided herein.
[(i) The production of peanuts on a farm in 1959 or any
subsequent year for which no farm acreage allotment was
established shall not make the farm eligible for an allotment
as an old farm under subsection (d) of this section: Provided,
however, That by reason of such production the farm need not be
considered as ineligible for a new farm allotment under
subsection (f) of this section, but such production shall not
be deemed past experience in the production of peanuts for any
producer on the farm.
[(j) Notwithstanding any other provision of this Act, if the
Secretary determines for 1976 or a subsequent year that because
of a natural disaster a portion of the farm peanut acreage
allotments in a county cannot be timely planted or replanted in
such year, he may authorize for such year the transfer of all
or a part of the peanut acreage allotments for any farm in the
county so affected to another farm in the county or in an
adjoining county in the same or an adjoining State on which one
or more of the producers on the farm from which the transfer is
to be made will be engaged in the production of peanuts and
will share in the proceeds thereof, in accordance with such
regulations as the Secretary may prescribe. Any farm allotment
transferred under this subsection shall be deemed to be
released acreage for the purpose of acreage history credits
under subsection (g) of this section and section 377 of this
Act: Provided, That notwithstanding the provisions of
subsection (g) of this section, the transfer of any farm
allotment under this subsection shall operate to make the farm
from which the allotment was transferred eligible for an
allotment as having peanuts planted thereon during the three-
year base period.]
SEC. 358-1. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS FOR [1991
THROUGH 1997 CROPS OF] PEANUTS.
(a) National Poundage Quotas.--
(1) Establishment.--The national poundage quota for
peanuts for each [of the 1991 through 1997 marketing
years] marketing year shall be established by the
Secretary at a level that is equal to the quantity of
peanuts (in tons) that the Secretary estimates will be
devoted in each such marketing year to [domestic
edible, seed,] domestic edible use and related uses.
[Notwithstanding any other provision of this paragraph,
the national poundage quota for a marketing year shall
not be less than 1,350,000 tons.]
(2) Announcement.--The national poundage quota for a
marketing year shall be announced by the Secretary not
later than December 15 preceding the marketing year.
(3) Apportionment among states.--The national
poundage quota established under paragraph (1) shall be
apportioned among the States so that the poundage quota
allocated to each State shall be equal to the
percentage of the national poundage quota allocated to
farms in the State for [1990] 1990, for the 1991
through 1995 marketing years, and 1995, for the 1996
through 2002 marketing years.
(b) Farm Poundage Quotas.--
(1) In general.--
(A) Establishment.--A farm poundage quota for
[each of the 1991 through 1997 marketing years]
each marketing year shall be established--
(i) for each farm that had a farm
poundage quota for peanuts for the 1990
marketing year, in the case of the 1991
through 1995 marketing years, and the
1995 marketing year, in the case of the
1996 through 2002 marketing years;
* * * * * * *
(B) Quantity.--The farm poundage quota for
each [of the 1991 through 1997 marketing years]
marketing year for each farm described in
subparagraph (A)(i) shall be the same as the
farm poundage quota for the farm for the
immediately preceding marketing year, as
adjusted under paragraph (2), but not
[including--
[(i) any increases for
undermarketings from previous years; or
[(ii) any increases resulting from
the allocation of quotas voluntarily
released for 1 year under paragraph
(7).] including any increases resulting
from the allocation of quotas
voluntarily released for 1 year under
paragraph (7).
The farm poundage quota, if any, for each of
the 1991 through 1997 marketing years for each
farm described in subparagraph (A)(ii) shall be
equal to the quantity of peanuts allocated to
the farm for the year under paragraph (2).
(C) Transfers.--For purposes of this
subsection, if the farm poundage quota, or any
part thereof, is permanently transferred in
accordance with section 358a or 358b, the
receiving farm shall be considered as
possessing the farm poundage quota (or portion
thereof) of the transferring farm for all
subsequent marketing years.
(D) Certain farms ineligible to hold quota.--
Effective beginning with the 1997 marketing
year, the Secretary shall no longer establish
farm poundage quotas under subparagraph (A) for
farms--
(i) owned or controlled by
municipalities, airport authorities,
schools, colleges, refuges, and other
public entities (not including
universities for research purposes); or
(ii) owned or controlled by a person
who is not a producer and resides in
another State.
(2) Adjustments.--
(A) Allocation of increased quota
generally.--Except as provided in [subparagraph
(B) and subject to] subparagraph (D), if the
poundage quota apportioned to a State under
subsection (a)(3) for any [of the 1991 through
1997 marketing years] marketing year is
increased over the poundage quota apportioned
to farms in the State for the immediately
preceding marketing year, the increase shall be
allocated proportionately, based on farm
production history for peanuts for the 3
immediately preceding years, among--
(i) all farms in the State for each
of which a farm poundage quota was
established for the marketing year
immediately preceding the marketing
year for which the allocation is being
made; and
(ii) all other farms in the State on
each of which peanuts were produced in
at least 2 of the 3 immediately
preceding crop years, as determined by
the Secretary.
[(B) Allocation of increased quota in
texas.--
[(i) In general.--In Texas, and
subject to terms and conditions
prescribed by the Secretary, beginning
with the 1991 marketing year, 33
percent of the increased quota referred
to in subparagraph (A) shall be
allocated to farms having poundage
quotas for the 1990 marketing year in
any county in which the production of
additional peanuts exceeded the total
quota allocated to the county for the
1989 marketing year.
[(ii) Basis for allocation to
counties.--The allocation of the quota
to eligible counties shall be based on
the total production of additional
peanuts in the respective counties for
the 1988 crop, except that the total
quota allocated to any county under
this subparagraph and paragraph (6)(C)
shall not be increased by more than 100
percent of the basic quota assigned to
the county for the 1989 marketing year
if that county had more than 10,000
tons of quota for the 1989 marketing
year.
[(iii) Allocation to other
counties.--If the total quota for any
such county is so increased by 100
percent, all of the remaining quota
percentage set aside under this
subparagraph shall be allocated to
farms in other counties otherwise
meeting the requirements of this
subparagraph.
[(iv) Allocation to eligible farms.--
The percentage of increased quota in
any county shall be allocated under
this subparagraph only to quota farms
from which additional peanuts were
delivered under contract with handlers
for the marketing year immediately
preceding the marketing year for which
the allocation is being made. The
percentage of the increased quota in
each county shall be allocated among
the eligible farms in the county on the
following basis:
[(I) Factor.--A factor shall
be established for each such
eligible farm by dividing the
quantity of additional peanuts
contracted and delivered to
handlers from the farm by the
total remaining peanuts
produced on the farm for the
marketing year immediately
preceding the marketing year
for which the allocation is
being made.
[(II) Allocation.--Each such
eligible farm shall be
allocated the percentage of the
increased quota for the county
as its factor bears to the
total of the factors for all
eligible farms in the county.
[(v) Remaining percentage.--In Texas,
the remaining 67 percent of the
increased quota referred to in
subparagraph (A) shall be allocated to
farms in the State in accordance with
subparagraph (A).]
(B) Temporary quota allocation.--
(i) Allocation related to seed
peanuts.--Temporary allocation of quota
pounds for the marketing year only in
which the crop is planted shall be made
to producers for each of the 1996
through 2002 marketing years as
provided in this subparagraph.
(ii) Quantity.--The temporary quota
allocation shall be equal to the pounds
of seed peanuts planted on the farm, as
may be adjusted under regulations
prescribed by the Secretary.
(iii) Additional quota.--The
temporary allocation of quota pounds
under this paragraph shall be in
addition to the farm poundage quota
otherwise established under this
subsection and shall be credited, for
the applicable marketing year only, in
total to the producer of the peanuts on
the farm in a manner prescribed by the
Secretary.
(iv) Effect of other requirements.--
Nothing in this section alters or
changes the requirements regarding the
use of quota and additional peanuts
established by section 358e(b).
(C) Decrease.--If the poundage quota
apportioned to a State under subsection (a)(3)
for any [of the 1991 through 1997 marketing
years] marketing year is decreased from the
poundage quota apportioned to farms in the
State under subsection (a)(3) for the
immediately preceding marketing year, the
decrease shall be allocated among all the farms
in the State for each of which a farm poundage
quota was established for the marketing year
immediately preceding the marketing year for
which the allocation is being made.
* * * * * * *
(E) Transfer of quota from ineligible
farms.--Any farm poundage quota held at the end
of the 1996 marketing year by a farm described
in paragraph (1)(D) shall be allocated to other
farms in the same State on such basis as the
Secretary may by regulation prescribe.
(3) Quota not produced.--
(A) In general.--Insofar as practicable and
on such fair and equitable basis as the
Secretary may by regulation prescribe, the farm
poundage quota established for a farm for any
[of the 1991 through 1997 marketing years]
marketing year shall be reduced to the extent
that the Secretary determines that the farm
poundage quota established for the farm for any
2 of the 3 marketing years preceding the
marketing year for which the determination is
being made was not produced, or considered
produced, on the farm.
(B) Exclusions.--For the purposes of this
paragraph, the farm poundage quota for any such
preceding marketing year shall not [include--
[(i) any increases for undermarketing
of quota peanuts from previous years;
or
[(ii) any increase resulting from the
allocation of quotas voluntarily
released for 1 year under paragraph
(7).] include any increase resulting
from the allocation of quotas
voluntarily released for 1 year under
paragraph (7).
* * * * * * *
[(8) Increase for undermarketings in previous
marketing years.--
[(A) In general.--Except as provided in
subparagraph (B), the farm poundage quota for a
farm for any marketing year shall be increased
by the number of pounds by which the total
marketings of quota peanuts from the farm
during previous marketing years (excluding any
marketing year before the marketing year for
the 1989 crop) were less than the total amount
of applicable farm poundage quotas
(disregarding adjustments for undermarketings
from previous marketing years) for the
marketing years.
[(B) Quota not produced.--For purposes of
subparagraph (A), no increase for
undermarketings in previous marketing years
shall be made to the poundage quota for any
farm to the extent that the poundage quota for
the farm for the marketing year was reduced
under paragraph (3) for failure to produce.
[(C) National poundage quota.--Any increases
in farm poundage quotas under this paragraph
shall not be counted against the national
poundage quota for the marketing year involved.
[(D) Transfer of additional peanuts.--Any
increase in the farm poundage quota for a farm
for a marketing year under this paragraph may
be used during the marketing year by the
transfer of additional peanuts produced on the
farm to the quota loan pool for pricing
purposes on such basis as the Secretary shall
by regulation prescribe.
[(9) Limit on increases for undermarketings.--
Notwithstanding the foregoing provisions of this
subsection, if the total of all increases in individual
farm poundage quotas under paragraph (8) exceeds 10
percent of the national poundage quota for the
marketing year in which the increases shall be
applicable, the Secretary shall adjust the increases so
that the total of all the increases does not exceed 10
percent of the national poundage quota.]
(8) Disaster transfers.--
(A) In general.--Except as provided in
subparagraph (B), additional peanuts produced
on a farm from which the quota poundage was not
harvested and marketed because of drought,
flood, or any other natural disaster, or any
other condition beyond the control of the
producer, may be transferred to the quota loan
pool for pricing purposes on such basis as the
Secretary shall by regulation provide.
(B) Limitation.--The poundage of peanuts
transferred under subparagraph (A) shall not
exceed the difference between--
(i) the total quantity of peanuts
meeting quality requirements for
domestic edible use, as determined by
the Secretary, marketed from the farm;
and
(ii) the total farm poundage quota,
excluding quota pounds transferred to
the farm in the fall.
(C) Support rate.--Peanuts transferred under
this paragraph shall be supported at 70 percent
of the quota support rate for the marketing
years in which the transfers occur. The
transfers for a farm shall not exceed 25
percent of the total farm quota pounds,
excluding pounds transferred in the fall.
* * * * * * *
(e) Definitions.--For the purposes of this part and title I
of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.):
(1) * * *
* * * * * * *
(3) Domestic edible use.--The term ``domestic edible
use'' means use for milling to produce domestic food
peanuts (other than those described in paragraph (2))
[and seed and use on a farm], except that the Secretary
may exempt from this definition seeds of peanuts that
are used to produce peanuts excluded under section
358d(c), are unique strains, and are not commercially
available.
* * * * * * *
(f) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through [1997]
2002 crops of peanuts.
[SALE, LEASE AND TRANSFER OF PEANUT ACREAGE ALLOTMENTS
[Sec. 358a. (a) Notwithstanding any other provision of law
for the 1968 and succeeding crop years, the Secretary, if he
determines that it will not impair the effective operation of
the peanut marketing quota or price support program, (1) may
permit the owner and operator of any farm for which a peanut
acreage allotment is established under this Act to sell or
lease all or any part or the right to all or any part of such
allotment to any other owner or operator of a farm in the same
county for transfer to such farm; and (2) may permit the owner
of a farm to transfer all or any part of such allotment to any
other farm owned or controlled by him.
[(b) Transfers under this section shall be subject to the
following conditions: (1) no allotment shall be transferred to
a farm in another county; (2) no transfer of an allotment from
a farm subject to a mortgage or other lien shall be permitted
unless the transfer is agreed to by the lienholders; (3) no
sale of a farm allotment from a farm shall be permitted if any
sale of allotment to the same farm has been made within the
three immediately preceding crop years; (4) no transfer of
allotment shall be effective until a record thereof is filed
with the county committee of the county in which such transfer
is made and such committee determines that the transfer
complies with the provisions of this section; and (5) if the
normal yield established by the county committee for the farm
to which the allotment is transferred does not exceed the
normal yield established by the county committee for the farm
from which the allotment is transferred by more than 10 per
centum, the lease or sale and transfer shall be approved acre
for acre, but if the normal yield for the farm to which the
allotment is transferred exceeds the normal yield for the farm
from which the allotment is transferred by more than 10 per
centum, the county committee shall make a downward adjustment
in the amount of the acreage allotment transferred by
multiplying the normal yield established for the farm from
which the allotment is transferred by the acreage being
transferred and dividing the result by the normal yield
established for the farm to which the allotment is transferred:
Provided, That in the event an allotment is transferred to a
farm which at the time of such transfer is not irrigated, but
within five years subsequent to such transfer is placed under
irrigation, the Secretary shall also make an annual downward
adjustment in the allotment so transferred by multiplying the
normal yield established for the farm from which the allotment
is transferred by the acreage being transferred and dividing
the result by the actual yield for the previous year, adjusted
for abnormal weather conditions, on the farm to which the
allotment is transferred: Provided further, That,
notwithstanding any other provision of this Act, the adjustment
made in any peanut allotment because of the transfer to a
higher producing farm shall not reduce or increase the size of
any future National or State allotment and an acreage equal to
the total of all such adjustment shall not be allotted to any
other farms.
[(c) The transfer of an allotment shall have the effect of
transferring also the acreage history and marketing quota
attributable to such allotment and if the transfer is made
prior to the determination of the allotment for any year the
transfer shall include the right of the owner or operator to
have an allotment determined for the farm for such year:
Provided, That in the case of a transfer by lease the amount of
the allotment shall be considered, for the purpose of
determining allotments after the expiration of the lease, to
have been planted on the farm from which such allotment is
transferred.
[(d) The land in the farm from which the entire peanut
allotment has been transferred shall not be eligible for a new
farm peanut allotment during the five years following the year
in which such transfer is made.
[(e) Any lease may be made for such term of years not to
exceed five as the parties thereto agree, and on such other
terms and conditions except as otherwise provided in this
section as the parties thereto agree.
[(f) The lease of any part of a peanut acreage allotment
determined for a farm shall not affect the allotment for the
farm from which such allotment is transferred or the farm to
which it is transferred, except with respect to the crop year
or years specified in the lease. The amount of the acreage
allotment which is leased from a farm shall be considered for
purposes of determining future allotments to have been planted
to peanuts on the farm from which such allotment is leased and
the production pursuant to the lease shall not be taken into
account in establishing allotments for subsequent years for the
farm to which such allotment is leased. The lessor shall be
considered to have been engaged in the production of peanuts
for purposes of eligibility to vote in the referendum.
[(g) The Secretary shall prescribe regulations for the
administration of this section which may include reasonable
limitation on the size of the resulting allotments on farms to
which transfers are made and such other terms and conditions as
he deems necessary, but the total peanut allotment transferred
to any farm by sale or lease shall not exceed fifty acres.
[(h) If the sale or transfer occur during a period in which
the farm is covered by a conservation reserve contract,
cropland conversion agreement, or other similar land
utilization agreement the rates of payment provided for in the
contract or agreement of the farm from which the transfer is
made shall be subject to an appropriate adjustment, but no
adjustment shall be made in the contract or agreement of the
farm to which the transfer is made.]
SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA FOR [1991
THROUGH 1995 CROPS OF] PEANUTS.
(a) In General.--
(1) Authority.--Subject to such terms[, conditions,
or limitations] and conditions as the Secretary may
prescribe, the owner, or operator with the permission
of the owner, of any farm for which a farm poundage
quota has been established under this Act may sell or
lease all or any part of the poundage quota [(including
any applicable under marketings)] to any other owner or
operator of a farm within the same county for transfer
to the farm, except that [any such lease] any such sale
or lease of poundage quota [(including any applicable
under marketings)] may be entered into [in the fall or
after the normal planting season--
[(A) if not less than 90 percent of the basic
quota (the farm quota exclusive of
undermarketings and temporary quota transfers),
plus any poundage quota transferred to the farm
under this subsection, has been planted or
considered planted on the farm from which the
quota is to be leased; and
[(B) under such terms and conditions as the
Secretary may by regulation prescribe.] in the
spring (or before the normal planting season)
or in the fall (or after the normal planting
season) with the owner or operator of a farm
located within any county in the same State. In
the case of a fall transfer or a transfer after
the normal planting season, the transfer may be
made only if not less than 90 percent of the
basic quota (the farm quota exclusive of
temporary quota transfers), plus any poundage
quota transferred to the farm under this
subsection, has been planted or considered
planted on the farm from which the quota is to
be leased.
In the case of a fall transfer or a transfer after the
normal planting season by a cash lessee, the landowner
shall not be required to sign the transfer
authorization. A fall transfer or a transfer after the
normal planting season may be made not later than 72
hours after the peanuts that are the subject of the
transfer are inspected and graded.
(2) Transfers to other self-owned farms.--The owner
or operator of a farm may transfer all or any part of
the farm poundage quota [(including any applicable
under marketings)] to any other farm owned or
controlled by the owner or operator that is in the same
county or in a county contiguous to the county in the
same State and that had a farm poundage quota for the
preceding year's crop. Any farm poundage quota
transferred under this paragraph shall not result in
any reduction in the farm poundage quota for the
transferring farm if the transferred quota is produced
or considered produced on the receiving farm.
(3) Transfers in states with small quotas.--
Notwithstanding paragraphs (1) and (2), in the case of
any State for which the poundage quota allocated to the
State was less than 10,000 tons for the preceding
year's crop, all or any part of a farm poundage quota
[(including any applicable undermarketings)] may be
transferred by sale or lease or otherwise from a farm
in one county to a farm in another county in the same
State.
(c) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through [1995]
2002 crops of peanuts.
SEC. 358c. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.
(a) * * *
* * * * * * *
(d) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through [1995]
2002 crops of peanuts.
[MARKETING PENALTIES
[Sec. 358d. (a) The marketing of any peanuts in excess of the
marketing quota for the farm on which such peanuts are
produced, or the marketing of peanuts from any farm for which
no acreage allotment was determined, shall be subject to a
penalty at a rate equal to 75 per centum of the price support
for peanuts for the marketing year (August 1-July 31). Such
penalty shall be paid by the person who buys or otherwise
acquires the peanuts from the producer, or if the peanuts are
marketed by the producer through an agent, the penalty shall be
paid by such agent, and such person or agent may deduct an
amount equivalent to the penalty from the price paid to the
producer. The Secretary may require collection of the penalty
upon a portion of each lot of peanuts marketed from the farm
equal to the proportion which the acreage of peanuts in excess
of the farm-acreage allotment is of the total acreage of
peanuts on the farm. If the person required to collect the
penalty fails to collect such penalty, such person and all
persons entitled to share in the peanuts marketed from the farm
or the proceeds thereof shall be jointly and severally liable
for the amount of the penalty. All funds collected pursuant to
this section shall be deposited in a special deposit account
with the Treasurer of the United States and such amounts as are
determined, in accordance with regulations prescribed by the
Secretary, to be penalties incurred shall be transferred to the
general fund of the Treasury of the United States. Amounts
collected in excess of determined penalties shall be paid to
such producers as the Secretary determines, in accordance with
regulations prescribed by him, bore the burden of the payment
of the amount collected. Such special account shall be
administered by the Secretary and the basis for, the amount of
and the producer entitled to receive a payment from such
account, when determined in accordance with regulations
prescribed by the Secretary, shall be final and conclusive.
Peanuts produced in a calendar year in which marketing quotas
are in effect for the marketing year beginning therein shall be
subject to such quotas even though the peanuts are marketed
prior to the date on which such marketing year begins. If any
producer falsely identifies or fails to account for the
disposition of any peanuts, an amount of peanuts equal to the
normal yield of the number of acres harvested in excess of the
farm acreage allotment shall be deemed to have been marketed in
excess of the marketing quota for the farm, and the penalty in
respect thereof shall be paid and remitted by the producer. If
any amount of peanuts produced on one farm is falsely
identified by a representation that such peanuts were produced
on another farm, the acreage allotments next established for
both such farms shall be reduced by that percentage which such
amount was of the respective farm marketing quotas, except that
such reduction for any such farm shall not be made if the
Secretary through the local committees finds that no person
connected with such farm caused, aided, or acquiesced in such
marketing; and if proof of the disposition of any amount of
peanuts is not furnished as required by the Secretary, the
acreage allotment next established for the farm on which such
peanuts are produced shall be reduced by a percentage similarly
computed. Notwithstanding any other provisions of this title,
no refund of any penalty shall be made because of peanuts kept
on the farm for seed or for home consumption.
[(b) The provisions of this part shall not apply, beginning
with the 1959 crop, to peanuts produced on any farm on which
the acreage harvested for nuts is one acre or less provided the
producers who share in the peanuts produced on such farm do not
share in the peanuts produced on any other farm. If the
producers who share in the peanuts produced on a farm on which
the acreage harvested for nuts is one acre or less also share
in the peanuts produced on other farm(s) the peanuts produced
on such farm on acreage in excess of the allotment, if any,
determined for the farm shall be considered as excess acreage
and the marketing penalties provided by subsection (a) shall
apply.
[(c) The word ``peanuts'' for the purposes of this Act shall
mean all peanuts produced, excluding any peanuts which it is
established by the producer or otherwise, in accordance with
regulations of the Secretary, were not picked or threshed
either before or after marketing from the farm, or were
marketed by the producer before drying or removal of moisture
from such peanuts either by natural or artificial means for
consumption exclusively as boiled peanuts.
[(d) The person liable for payment or collection of the
penalty provided by this section shall be liable also for
interest thereon at the rate of 6 per centum per annum from the
date the penalty becomes due until the date of payment of such
penalty.
[(e) Until the amount of the penalty provided by this section
is paid, a lien on the crop of peanuts with respect to which
such penalty is incurred, and on any subsequent crop of peanuts
subject to marketing quotas in which the person liable for
payment of the penalty has an interest shall be in effect in
favor of the United States.]
SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS
[FOR 1991 THROUGH 1997 CROPS OF PEANUTS].
(a) * * *
* * * * * * *
(i) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through [1997]
2002 crops of peanuts.
[PART VII--MARKETING QUOTAS--SUGAR AND CRYSTALLINE FRUCTOSE
[SEC. 359a. INFORMATION REPORTING.
[(a) Duty of Processors, Refiners and Manufacturers To
Report.--
[(1) Processors and refiners.--All sugarcane
processors, cane sugar refiners, and sugar beet
processors shall furnish the Secretary, on a monthly
basis, such information as the Secretary may require to
administer sugar programs, including the quantity of
purchases of sugarcane, sugar beets, and sugar, and
production, importation, distribution, and stock levels
of sugar.
[(2) Manufacturers of crystalline fructose.--All
manufacturers of crystalline fructose from corn
(hereafter in this part referred to as ``crystalline
fructose'') shall furnish the Secretary, on a monthly
basis, such information as the Secretary may require
with respect to the manufacturer's distribution of
crystalline fructose.
[(b) Duty of Producers To Report.--The Secretary may require
a producer of sugarcane or sugar beets to report, in the manner
prescribed by the Secretary, the producer's sugarcane or sugar
beet yields and acres planted to sugarcane or sugar beets,
respectively.
[(c) Penalty.--Any person willfully failing or refusing to
furnish the information, or furnishing willfully any false
information, shall be subject to a civil penalty of not more
than $10,000 for each such violation.
[(d) Monthly Reports.--Taking into consideration the
information received under subsection (a), the Secretary shall
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar and composite
data on distributions of crystalline fructose.
[SEC. 359b. MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE FRUCTOSE.
[(a) Sugar Estimates.--
[(1) In general.--Before the beginning of each of the
fiscal years 1992 through 1998, the Secretary shall
estimate--
[(A) the quantity of sugar that will be
consumed in the United States during the fiscal
year (other than sugar imported for the
production of polyhydric alcohol or to be
refined and reexported in refined form or in
sugar containing products) and the quantity of
sugar that would provide for reasonable
carryover stocks;
[(B) the quantity of sugar that will be
available from carry-in stocks or from
domestically-produced sugarcane and sugar beets
for consumption in the United States during the
year; and
[(C) the quantity of sugar that will be
imported for consumption in the United States
during the year (other than sugar imported for
the production of polyhydric alcohol or to be
refined and reexported in a refined form or in
sugar containing products), based on the
difference between--
[(i) the sum of the quantity of
estimated consumption and reasonable
carryover stocks; and
[(ii) the quantity of sugar estimated
to be available from domestically-
produced sugarcane and sugar beets and
from carry-in stocks.
[(2) Quarterly reestimates.--The Secretary shall make
quarterly reestimates of sugar consumption, stocks,
production, and imports for a fiscal year no later than
the beginning of each of the second through fourth
quarters of the fiscal year.
[(b) Sugar Allotments.--
[(1) In general.--For any fiscal year in which the
Secretary estimates, under subsection (a)(1)(C), that
imports of sugar for consumption in the United States
(other than sugar imported for the production of
polyhydric alcohol or to be refined and reexported in
refined form or in sugar containing products) will be
less than 1,250,000 short tons, raw value, the
Secretary shall establish for that year appropriate
allotments under section 359c for the marketing by
processors of sugar processed from domestically-
produced sugarcane and sugar beets, at a level that the
Secretary estimates will result in imports of sugar of
not less than 1,250,000 short tons, raw value, for that
year.
[(2) Products.--The Secretary may include sugar
products, whose majority content is sucrose or
crystalline fructose for human consumption, derived
from sugarcane, sugar beets, molasses or sugar in the
allotments under paragraph (1) if the Secretary
determines it to be appropriate for purposes of this
part.
[(c) Crystalline Fructose Allotments.--For any fiscal year in
which the Secretary establishes allotments for the marketing of
sugar under section 359c, the Secretary shall establish for
that year appropriate allotments for the marketing by
manufacturers of crystalline fructose manufactured from corn,
at a total level not to exceed the equivalent of 200,000 tons
of sugar, raw value, during the fiscal year, in a manner that
is fair, efficient, and equitable to manufacturers.
[(d) Prohibitions.--
[(1) In general.--During any fiscal year or portion
thereof for which marketing allotments have been
established, no processor of sugar beets or sugarcane
shall market a quantity of sugar in excess of the
allocation established for such processor, except to
enable another processor to fulfill an allocation
established for such other processor or to facilitate
the exportation of such sugar.
[(2) Crystalline fructose.--At any time crystalline
fructose allotments are in effect for manufacturers
under subsection (c), no manufacturer may market
crystalline fructose in excess of the manufacturer's
allotment. No restrictions or allotments shall be
established on the marketings of any liquid fructose
produced from corn.
[(3) Civil penalty.--Any processor who knowingly
violates paragraph (1) or manufacturer who knowingly
violates paragraph (2) shall be liable to the Commodity
Credit Corporation for a civil penalty in an amount
equal to 3 times the United States market value, at the
time of the commission of the violation, of that
quantity of sugar or crystalline fructose involved in
the violation.
[(4) Definition of market.--For purposes of this
part, the term ``market'' shall mean to sell or
otherwise dispose of in commerce in the United States
(including, with respect to any integrated processor
and refiner, the movement of raw cane sugar into the
refining process).
[SEC. 359c. ESTABLISHMENT OF MARKETING ALLOTMENTS.
[(a) In General.--The Secretary shall establish marketing
allotments for sugar for any fiscal year in which the
allotments are required under section 359b(b) in accordance
with this section.
[(b) Overall Allotment Quantity.--
[(1) In general.--The Secretary shall establish the
overall quantity of sugar to be allotted for the fiscal
year (hereafter in this part referred to as the
``overall allotment quantity'') by deducting from the
sum of the estimated sugar consumption and reasonable
carryover stocks (at the end of the fiscal year) for
the fiscal year, as determined under section 359b(a)--
[(A) 1,250,000 short tons, raw value; and
[(B) carry-in stocks of sugar, including
sugar in Commodity Credit Corporation
inventory.
[(2) Adjustment.--The Secretary shall adjust the
overall allotment quantity to the maximum extent
practicable to avoid the forfeiture of sugar to the
Commodity Credit Corporation.
[(c) Allotment.--The overall allotment quantity for the
fiscal year shall be allotted among--
[(1) sugar derived from sugar beets; and
[(2) sugar derived from sugarcane.
[(d) Percentage Factors.--
[(1) In general.--The Secretary shall establish
percentage factors for the overall beet sugar and cane
sugar allotments applicable for a fiscal year. The
Secretary shall establish the percentage factors in a
fair and equitable manner on the basis of past
marketings of sugar (considering for such purposes the
marketings of sugar processed from sugarcane and sugar
beets of any or all of the 1985 through 1989 crops),
processing and refining capacity, and the ability of
processors to market the sugar covered under the
allotments.
[(2) Publication.--The Secretary shall publish these
percentage factors in the Federal Register, along with
a description of the Secretary's reasons for
establishing the factors, as provided in section
359h(c).
[(e) Marketing Allotment.--The marketing allotment for sugar
derived from sugarcane and the marketing allotment for sugar
derived from sugar beets for a fiscal year, in each case, shall
be a quantity equal to the product of multiplying the overall
allotment quantity for the fiscal year by the percentage factor
established by the Secretary under subsection (d)(1) for the
allotment.
[(f) State Cane Sugar Allotments.--The allotment for sugar
derived from sugarcane shall be further allotted, among the 5
States in the United States in which sugarcane is produced, in
a fair and equitable manner on the basis of past marketings of
sugar (considering for such purposes the average of marketings
of sugar processed from sugarcane in the 2 highest years of
production from each State from the 1985 through 1989 crops),
processing capacity, and the ability of processors to market
the sugar covered under the allotments.
[(g) Adjustment of Marketing Allotments.--
[(1) In general.--The Secretary shall, based on
reestimates under section 359b(a)(2)--
[(A) adjust upward or downward marketing
allotments established under subsections (a)
through (f) in a fair and equitable manner;
[(B) establish marketing allotments for the
fiscal year or any portion of such fiscal year;
or
[(C) suspend the allotments,
as the Secretary determines appropriate, to reflect
changes in estimated sugar consumption, stocks,
production, or imports.
[(2) Allocation to processors.--In the case of any
increase or decrease in an allotment, each allocation
to a processor of the allotment under section 359d, and
each proportionate share established with respect to
the allotment under section 359f(b), shall be increased
or decreased by the same percentage that the allotment
is increased or decreased.
[(3) Reductions.--Whenever a marketing allotment for
a fiscal year is required to be reduced during the
fiscal year under this subsection, if the quantity of
sugar marketed, including sugar pledged as collateral
for a price support loan under section 206 of the
Agricultural Act of 1949 (7 U.S.C. 1446g), for the
fiscal year at the time of the reduction by any
individual processor covered by the allotment exceeds
the processor's reduced allocation, the allocation of
an allotment, if any, next established for the
processor shall be reduced by the quantity of the
excess sugar marketed.
[(h) Filling Cane Sugar and Beet Sugar Allotments.--Each
marketing allotment for cane sugar established under this
section may only be filled with sugar processed from
domestically grown sugarcane, and each marketing allotment for
beet sugar established under this section may only be filled
with sugar processed from domestically grown sugar beets.
[SEC. 359d. ALLOCATION OF MARKETING ALLOTMENTS.
[(a) In General.--
[(1) Allocation to processors.--Whenever marketing
allotments are established for a fiscal year under
section 359c, in order to afford all interested persons
an equitable opportunity to market sugar under an
allotment, the Secretary shall allocate each such
allotment among the processors covered by the
allotment.
[(2) Hearing and notice.--
[(A) Cane sugar.--The Secretary shall make
allocations for cane sugar after a hearing, if
requested by interested parties, and on such
notice as the Secretary by regulation may
prescribe, in such manner and in such
quantities as to provide a fair, efficient, and
equitable distribution of the allocations by
taking into consideration processing capacity,
past marketings of sugar, and the ability of
each processor to market sugar covered by that
portion of the allotment allocated. Each such
allocation shall be subject to adjustment under
section 359c(g).
[(B) Beet sugar.--The Secretary shall make
allocations for beet sugar after a hearing, if
requested by interested parties, and on such
notice as the Secretary by regulation may
prescribe, in such manner and in such
quantities as to provide a fair, efficient, and
equitable distribution of the allocations by
taking into consideration processing capacity,
past marketings of sugar (considering for the
purposes the marketings of sugar processed from
sugar beets of any or all of the 1985 through
1989 crops), and the ability of each processor
to market sugar covered by that portion of the
allotment allocated. Each such allocation shall
be subject to adjustment under section 359c(g).
[(b) Filling Cane Sugar Allotments.--Except as otherwise
provided in section 359e, a State cane sugar allotment
established under section 359c(f) for a fiscal year may be
filled only with sugar processed from sugarcane grown in the
State covered by the allotment.
[SEC. 359e. REASSIGNMENT OF DEFICITS.
[(a) Estimates of Deficits.--At any time allotments are in
effect under this part, the Secretary, from time to time, shall
determine whether (in view of then-current inventories of
sugar, the estimated production of sugar and expected
marketings, and other pertinent factors) any processor of
sugarcane will be unable to market the sugar covered by the
portion of the State cane sugar allotment allocated to the
processor and whether any processor of sugar beets will be
unable to market sugar covered by the portion of the beet sugar
allotment allocated to the processor.
[(b) Reassignment of Deficits.--
[(1) Cane sugar.--If the Secretary determines that
any sugarcane processor who has been allocated a share
of a State cane sugar allotment will be unable to
market the processor's allocation of the State's
allotment for the fiscal year--
[(A) the Secretary first shall reassign the
estimated quantity of the deficit to the
allocations for other processors within that
State, depending on the capacity of each other
processor to fill the portion of the deficit to
be assigned to it and taking into account the
interests of producers served by the
processors;
[(B) if after the reassignments the deficit
cannot be completely eliminated, the Secretary
shall reassign the estimated quantity of the
deficit proportionately to the allotments for
other cane sugar States, depending on the
capacity of each other State to fill the
portion of the deficit to be assigned to it,
with the reassigned quantity to each State to
be allocated among processors in that State in
proportion to the allocations of the
processors; and
[(C) if after the reassignments, the deficit
cannot be completely eliminated, the Secretary
shall reassign the remainder to imports.
[(2) Beet sugar.--If the Secretary determines that a
sugar beet processor who has been allocated a share of
the beet sugar allotment will be unable to market that
allocation--
[(A) the Secretary first shall reassign the
estimated quantity of the deficit to the
allotments for other sugar beet processors,
depending on the capacity of each other
processor to fill the portion of the deficit to
be assigned to it and taking into account the
interests of producers served by the
processors; and
[(B) if after the reassignments, the deficit
cannot be completely eliminated, the Secretary
shall reassign the remainder to imports.
[(3) Corresponding increase.--The allocation of each
processor receiving a reassigned quantity of an
allotment under this subsection for a fiscal year shall
be increased to reflect the reassignment.
[SEC. 359f. PROVISIONS APPLICABLE TO PRODUCERS.
[(a) Processor Assurances.--Whenever allotments for a fiscal
year are allocated to processors under section 359d, the
Secretary shall obtain from the processors such assurances as
the Secretary considers adequate that the allocation will be
shared among producers served by the processor in a fair and
equitable manner that adequately reflects producers' production
histories. Any dispute between a processor and a producer, or
group of producers, with respect to the sharing of the
processor's allocation shall be resolved through arbitration by
the Secretary on the request of either party.
[(b) Proportionate Shares of Certain Allotments.--
[(1) In general.--
[(A) States affected.--In any case in which a
State allotment is established under section
359c(f) and there are in excess of 250
sugarcane producers in the State (other than
Puerto Rico), the Secretary shall make a
determination under subparagraph (B).
[(B) Determination.--The Secretary shall
determine, for each State allotment described
in subparagraph (A), whether the production of
sugarcane, in the absence of proportionate
shares, will be greater than the quantity
needed to enable processors to fill the
allotment and provide a normal carryover
inventory of sugar.
[(2) Establishment of proportionate shares.--If the
Secretary determines under paragraph (1) that the
quantity of sugarcane produced by producers in the area
covered by a State allotment for a fiscal year will be
in excess of the quantity needed to enable processors
to fill the allotment for the fiscal year and provide a
normal carryover inventory of sugar, the Secretary
shall establish a proportionate share for each
sugarcane-producing farm that limits the acreage of
sugarcane that may be harvested on the farm for sugar
or seed during the fiscal year the allotment is in
effect as provided in this subsection. Each such
proportionate share shall be subject to adjustment
under paragraph (7) and section 359c(g).
[(3) Method of determining.--For purposes of
determining proportionate shares for any crop of
sugarcane:
[(A) The Secretary shall establish the
State's per-acre yield goal for a crop of
sugarcane at a level (not less than the average
per-acre yield in the State for the preceding 5
years, as determined by the Secretary) that
will ensure an adequate net return per pound to
producers in the State, taking into
consideration any available production research
data that the Secretary considers relevant.
[(B) The Secretary shall adjust the per-acre
yield goal by the average recovery rate of
sugar produced from sugarcane by processors in
the State.
[(C) The Secretary shall convert the State
allotment for the fiscal year involved into a
State acreage allotment for the crop by
dividing the State allotment by the per-acre
yield goal for the State, as established under
subparagraph (A) and as further adjusted under
subparagraph (B).
[(D) The Secretary shall establish a uniform
reduction percentage for the crop by dividing
the State acreage allotment, as determined for
the crop under subparagraph (C), by the sum of
all adjusted acreage bases in the State, as
determined by the Secretary.
[(E) The uniform reduction percentage for the
crop, as determined under subparagraph (D),
shall be applied to the acreage base for each
sugarcane-producing farm in the State to
determine the farm's proportionate share of
sugarcane acreage that may be harvested for
sugar or seed.
[(4) Acreage base.--For purposes of this subsection,
the acreage base for each sugarcane-producing farm
shall be determined by the Secretary, as follows:
[(A) The acreage base for any farm shall be
the number of acres that is equal to the
average of the acreage planted and considered
planted for harvest for sugar or seed on the
farm in each of the 5 crop years preceding the
fiscal year the proportionate share will be in
effect.
[(B) Acreage planted to sugarcane that
producers on a farm were unable to harvest to
sugarcane for sugar or seed because of drought,
flood, other natural disaster, or other
condition beyond the control of the producers
may be considered as harvested for the
production of sugar or seed for purposes of
this paragraph.
[(5) Violation.--
[(A) In general.--Whenever proportionate
shares are in effect in a State for a crop of
sugarcane, producers on a farm shall not
knowingly harvest, or allow to be harvested,
for sugar or seed an acreage of sugarcane in
excess of the farm's proportionate share for
the fiscal year, or otherwise violate
proportionate share regulations issued by the
Secretary under section 359h(a).
[(B) Determination of violation.--No producer
shall be considered to have violated
subparagraph (A) unless the processor of the
sugarcane harvested by such producer from
acreage in excess of the proportionate share of
the farm markets an amount of sugar that
exceeds the allocation of such processor for a
fiscal year.
[(C) Civil penalty.--Any producer on a farm
who violates subparagraph (A) by knowingly
harvesting, or allowing to be harvested, an
acreage of sugarcane in excess of the farm's
proportionate share shall be liable to the
Commodity Credit Corporation for a civil
penalty equal to one and one-half times the
United States market value of the quantity of
sugar that is marketed by the processor of such
sugarcane in excess of the allocation of such
processor for the fiscal year. The Secretary
shall prorate penalties imposed under this
subparagraph in a fair and equitable manner
among all the producers of sugarcane harvested
from excess acreage that is acquired by such
processor.
[(6) Waiver.--Notwithstanding the preceding
subparagraph, the Secretary may authorize the county
and State committees established under section 8(b) of
the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) to waive or modify deadlines and other
proportionate share requirements in cases in which
lateness or failure to meet the other requirements does
not affect adversely the operation of proportionate
shares.
[(7) Adjustments.--Whenever the Secretary determines
that, because of a natural disaster or other condition
beyond the control of producers that adversely affects
a crop of sugarcane subject to proportionate shares,
the amount of sugarcane produced by producers subject
to the proportionate shares will not be sufficient to
enable processors in the State to meet the State's cane
sugar allotment and provide a normal carryover
inventory of sugar, the Secretary may uniformly allow
producers to harvest an amount of sugarcane in excess
of their proportionate share, or suspend proportionate
shares entirely, as necessary to enable processors to
meet the State allotment and provide a normal carryover
inventory of sugar.
[SEC. 359g. SPECIAL RULES.
[(a) Transfer of Acreage Base History.--For the purpose of
establishing proportionate shares for sugarcane farms under
section 359f, the Secretary, on application of any producer,
with the written consent of all owners of a farm, may transfer
the acreage base history of the farm to any other parcels of
land of the applicant.
[(b) Preservation of Acreage Base History.--If for reasons
beyond the control of a producer on a farm, the producer is
unable to harvest an acreage of sugarcane for sugar or seed
with respect to all or a portion of the proportionate share
established for the farm under section 359f, the Secretary, on
the application of the producer and with the written consent of
all owners of the farm, may preserve for a period of not more
than 3 consecutive years the acreage base history of the farm
to the extent of the proportionate share involved. The
Secretary may permit the proportionate share to be
redistributed to other farms, but no acreage base history for
purposes of establishing acreage bases shall accrue to the
other farms by virtue of the redistribution of the
proportionate share.
[(c) Revisions of Allocations and Proportionate Shares.--The
Secretary, after such notice as the Secretary by regulation may
prescribe, may revise or amend any allocation of a marketing
allotment under section 359d, or any proportionate share
established for a farm under section 359f, on the same basis as
the initial allocation or proportionate share was required to
be established.
[SEC. 359h. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S
DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED
STATES ATTORNEYS.
[(a) Regulations.--The Secretary or the Commodity Credit
Corporation, as appropriate, shall issue such regulations as
may be necessary to carry out the authority vested in the
Secretary in administering this part.
[(b) Violation.--Any person knowingly violating any
regulation of the Secretary issued under subsection (a) shall
be subject to a civil penalty of not more than $5,000 for each
violation.
[(c) Publication in Federal Register.--Each determination
issued by the Secretary to establish, adjust, or suspend
allotments under this part shall be promptly published in the
Federal Register and shall be accompanied by a statement of the
reasons for the determination.
[(d) Jurisdiction of Courts; United States Attorneys.--
[(1) Jurisdiction of courts.--The several district
courts of the United States are vested with
jurisdiction specifically to enforce, and to prevent
and restrain any person from violating, this part or
any regulation issued thereunder.
[(2) United states attorneys.--Whenever the Secretary
shall so request, it shall be the duty of the several
United States attorneys, in their respective districts,
to institute proceedings to enforce the remedies and to
collect the penalties provided for in this part. The
Secretary may elect not to refer to a United States
attorney any violation of this part or regulation when
the Secretary determines that the administration and
enforcement of this part would be adequately served by
written notice or warning to any person committing the
violation.
[(e) Nonexclusivity of Remedies.--The remedies and penalties
provided for in this part shall be in addition to, and not
exclusive of, any remedies or penalties existing at law or in
equity.
[SEC. 359i. APPEALS.
[(a) In General.--An appeal may be taken to the Secretary
from any decision under section 359d establishing allocations
of marketing allotments, or under section 359f, by any person
adversely affected by reason of any such decision.
[(b) Procedure.--
[(1) Notice of appeal.--Any such appeal shall be
taken by filing with the Secretary, within 20 days
after the decision complained of is effective, notice
in writing of the appeal and a statement of the reasons
therefor. Unless a later date is specified by the
Secretary as part of the Secretary's decision, the
decision complained of shall be considered to be
effective as of the date on which announcement of the
decision is made. The Secretary shall deliver a copy of
any notice of appeal to each person shown by the
records of the Secretary to be adversely affected by
reason of the decision appealed, and shall at all times
thereafter permit any such person to inspect and make
copies of appellant's reasons for the appeal and shall
on application permit the person to intervene in the
appeal.
[(2) Hearing.--The Secretary shall provide each
appellant an opportunity for a hearing before an
administrative law judge in accordance with sections
554 and 556 of title 5, United States Code. The
expenses for conducting the hearing shall be reimbursed
by the Commodity Credit Corporation.
[SEC. 359j. ADMINISTRATION.
[(a) Use of Certain Agencies.--In carrying out this part, the
Secretary may use the services of local committees of sugar
beet or sugarcane producers, sugarcane processors, or sugar
beet processors, State and county committees established under
section 8(b) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)), and the departments and agencies of
the United States Government.
[(b) Use of Commodity Credit Corporation.--The Secretary
shall use the services, facilities, funds, and authorities of
the Commodity Credit Corporation to carry out sections 359a
through 359i.
[(c) Definition of United States and State.--Notwithstanding
section 301, for purposes of this part, the terms ``United
States'' and ``State'' means the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.]
Subtitle C--Administrative Provisions
PART I--PUBLICATION AND REVIEW OF QUOTAS
APPLICATION OF PART
Sec. 361. This part shall apply to the publication and review
of farm marketing quotas established for tobacco[, corn, wheat,
cotton, peanuts, and rice, established] under subtitle B.
PART II--ADJUSTMENT OF QUOTAS AND ENFORCEMENT
GENERAL ADJUSTMENTS OF QUOTAS
Sec. 371. (a) If at any time the Secretary has reason to
believe that in the case of [cotton, rice, peanuts, or] tobacco
the operation of farm marketing quotas in effect will cause the
amount of such commodity which is free of marketing
restrictions to be less than the normal supply for the
marketing year for the commodity then current, he shall cause
an immediate investigation to be made with respect thereto. In
the course of such investigation due notice and opportunity for
hearing shall be given to interested persons. If upon the basis
of such investigation the Secretary finds the existence of such
fact, he shall proclaim the same forthwith. He shall also in
such proclamation specify such increase in, or termination of,
existing quotas as he finds, on the basis of such
investigation, is necessary to make the amount of such
commodity which is free of marketing restrictions equal to the
normal supply.
(b) If the Secretary has reason to believe that, because of a
national emergency or because of a material increase in export
demand, any national marketing quota or acreage allotment for
[cotton, rice, peanuts or] tobacco should be increased or
terminated, he shall cause an immediate investigation to be
made to determine whether the increase or termination is
necessary to meet such emergency or increase in export demand.
If, on the basis of such investigation, the Secretary finds
that such increase or termination is necessary, he shall
immediately proclaim such finding (and if he finds an increase
is necessary, the amount of the increase found by him to be
necessary) and thereupon such quota or allotment shall be
increased, or shall terminate, as the case may be.
[Subtitle D--Wheat Marketing Allocation
[LEGISLATIVE FINDINGS
[Sec. 379a. Wheat, in addition to being a basic food, is one
of the great export crops of American agriculture and its
production for domestic consumption and for export is necessary
to the maintenance of a sound national economy and to the
general welfare. The movement of wheat from producer to
consumer, in the form of the commodity or any of the products
thereof, is preponderantly in interstate and foreign commerce.
Unreasonably low prices of wheat to producers impair their
purchasing power for nonagricultural products and place them in
a position of serious disparity with other industrial groups.
The conditions affecting the production of wheat are such that
without Federal assistance, producers cannot effectively
prevent disastrously low prices for wheat. It is necessary, in
order to assist wheat producers in obtaining fair prices, to
regulate the price of wheat used for domestic food and for
exports in the manner provided in this subtitle.
[WHEAT MARKETING ALLOCATION
[Sec. 379b. During any marketing year for which a marketing
quota is in effect for wheat, beginning with the marketing year
for the 1964 crop, a wheat marketing allocation program shall
be in effect as provided in this subtitle. Whenever a wheat
marketing allocation program is in effect for any marketing
year the Secretary shall determine (1) the wheat marketing
allocation for such year which shall be the amount of wheat
which in determining the national marketing quota for such
marketing year he estimated would be used during such year for
food products for consumption in the United States, and that
portion of the amount of wheat which in determining such quota
he estimated would be exported in the form of wheat or products
thereof during the marketing year on which the Secretary
determines that marketing certificates shall be issued to
producers in order to achieve, insofar as practicable, the
price and income objectives of this subtitle, and (2) the
national allocation percentage which shall be the percentage
which the national marketing allocation is of the national
marketing quota. Each farm shall receive a wheat marketing
allocation for such marketing year equal to the number of
bushels obtained by multiplying the number of acres in the farm
acreage allotment for wheat by the projected farm yield, and
multiplying the resulting number of bushels by the national
allocation percentage. If a noncommercial wheat-production area
is established for any marketing year, farms in such area shall
be given wheat marketing allocations which are determined by
the Secretary to be fair and reasonable in relation to the
wheat marketing allocation given producers in the commercial
wheat-producing area.
[MARKETING CERTIFICATES
[Sec. 379c. (a) The Secretary shall provide for the issuance
of wheat marketing certificates for each marketing year for
which a wheat marketing allocation program is in effect for the
purpose of enabling producers on any farm with respect to which
certificates are issued to receive, in addition to the other
proceeds from the sale of wheat, an amount equal to the value
of such certificates. The wheat marketing certificates issued
with respect to any farm for any marketing year shall be in the
amount of the farm wheat marketing allocation for such year,
but not to exceed (i) the actual acreage of wheat planted on
the farm for harvest in the calendar year in which the
marketing year begins multiplied by the normal yield of wheat
for the farm, plus (ii) the amount of wheat stored under
section 379c(b) or to avoid or postpone a marketing quota
penalty, which is released from storage during the marketing
year on account of underplanting or underproduction, and if
this limitation operates to reduce the amount of wheat
marketing certificates which would otherwise be issued with
respect to the farm, such reduction shall be made first from
the amount of export certificates which would otherwise be
issued. The Secretary shall provide for the sharing of wheat
marketing certificates among producers on the farm on the basis
of their respective shares in the wheat crop produced on the
farm, or the proceeds therefrom; except that in any case in
which the Secretary determines that such basis would not be
fair and equitable, the Secretary shall provide for such
sharing on such other basis as he may determine to be fair and
equitable. The Secretary shall, in accordance with such
regulation as he may prescribe, provide for the issuance of
domestic marketing certificates for the portion of the wheat
marketing allocation representing wheat used for food products
for consumption in the United States. The Secretary shall also
provide for the issuance of export marketing certificates to
eligible producers at the end of the marketing year on a pro
rata basis. For such purposes, the value per bushel of export
marketing certificates shall be an average of the total net
proceeds from the sale of export marketing certificates during
the marketing year after deducting the total amount of wheat
export subsidies paid to exporters. An acreage on the farm
which the Secretary finds was not planted to wheat for harvest
in 1965 because of drought, flood, or other natural disaster
shall be deemed by the Secretary to be an actual acreage of
wheat planted for harvest for purposes of this subsection,
provided such acreage is not subsequently planted to any other
price supported crop for 1965. An acreage on the farm not
planted to wheat because of drought, flood, or other natural
disaster shall be deemed to be an actual acreage of wheat
planted for harvest for purposes of this subsection provided
such acreage is not subsequently planted to any crop for which
there are marketing quotas or voluntary adjustment programs in
effect. Producers on any farm who have planted not less than 90
per centum of the acreage of wheat required to be planted in
order to earn the full amount of marketing certificates for
which the farm is eligible shall be deemed to have planted the
entire acreage required to be planted for that purpose.
[(b) No producer shall be eligible to receive wheat marketing
certificates with respect to any farm for any marketing year in
which a marketing quota penalty is assessed for any commodity
on such farm or in which the farm has not complied with the
land-use requirements of section 339 to the extent prescribed
by the Secretary, or in which, except as the Secretary may by
regulation prescribe, the producer exceeds the farm acreage
allotment on any other farm for any commodity in which he has
an interest as a producer. No producer shall be deemed to have
exceeded a farm acreage allotment for wheat if the entire
amount of the farm marketing excess is delivered to the
Secretary or stored in accordance with applicable regulations
to avoid or postpone payment of the penalty. No producer shall
be deemed to have exceeded the farm acreage allotment for wheat
on any other farm if such farm is exempt from the farm market
quota for such crop under section 335. Any wheat delivered to
the Secretary hereunder shall become the property of the United
States and shall be disposed of by the Secretary for relief
purposes in the United States or in foreign countries or in
such other manner as he shall determine will divert it from the
normal channels of trade and commerce. Notwithstanding any
other provision of this Act, the Secretary may provide that a
producer shall not be eligible to receive marketing
certificates, or may adjust the amount of marketing
certificates to be received by the producer, with respect to
any farm for any year in which a variety of wheat is planted on
the farm which has been determined by the Secretary, after
consultation with State Agricultural Experiment Stations,
agronomists, cereal chemists and other qualified technicians,
to have undesirable milling or baking qualities and has made
public announcement thereof.
[(c) The Secretary shall determine and proclaim for each
marketing year the face value per bushel of wheat marketing
certificates. The face value per bushel of domestic
certificates shall be the amount by which the level of price
support for wheat accompanied by domestic certificates exceeds
the level of price support for wheat not accompanied by
certificates (noncertificate wheat).
[(d) Marketing certificates and transfers thereof shall be
represented by such documents, marketing cards, records,
accounts, certifications, or other statements or forms as the
Secretary may prescribe.
[(e) In any case in which the failure of a producer to comply
fully with the term and conditions of the programs formulated
under this Act preclude the issuance of marketing certificates,
the Secretary may, nevertheless, issue such certificates in
such amounts as he determines to be equitable in relation to
the seriousness of the default.
[MARKETING RESTRICTIONS
[Sec. 379d. (a) Marketing certificates shall be transferable
only in accordance with regulations prescribed by the
Secretary. Any unused certificates legally held by any person
shall be purchased by Commodity Credit Corporation if tendered
to the Corporation for purchase in accordance with regulations
prescribed by the Secretary.
[(b) During any marketing year for which a wheat marketing
allocation program is in effect, (i) all persons engaged in the
processing of wheat into food products shall, prior to
marketing any such food product or removing such food product
for sale or consumption, acquire domestic marketing
certificates equivalent to the number of bushels of wheat
contained in such product and (ii) all persons exporting wheat
shall, prior to such export, acquire export market certificates
equivalent to the number of bushels so exported. The cost of
the export marketing certificates per bushel to the exporter
shall be that amount determined by the Secretary on a daily
basis which would make United States wheat and wheat flour
generally competitive in the world market, avoid disruption of
world market prices, and fulfill the international obligations
of the United States. The Secretary may exempt from the
requirements of this subsection wheat exported for donation
abroad and other noncommercial exports of wheat, wheat
processed for use on the farm where grown, wheat produced by a
State or agency thereof and processed for use by the State or
agency thereof wheat processed for donation, and wheat
processed for uses determined by the Secretary to be
noncommercial. Such exemptions may be made applicable with
respect to any wheat processed or exported beginning July 1,
1964. There shall be exempt from the requirements of this
subsection beverage distilled from wheat prior to July 1, 1964.
A beverage distilled from wheat after July 1, 1964, shall be
deemed to be removed for sale or consumption at the time it is
placed in barrels for aging except that upon the giving of a
bond as prescribed by the Secretary, the purchase of and
payment for such marketing certificates as may be required may
be deferred until such beverage is bottled for sale. Wheat
shipped to a Canadian port for storage in bond, or storage
under a similar arrangement, and subsequent exportation shall
be deemed to have been exported for purposes of this subsection
when it is exported from the Canadian port. Marketing
certificates shall be valid to cover only sales or removals for
sale or consumption or exportations made during the marketing
year with respect to which they are issued, and after being
once used to cover a sale or removal for sale or consumption or
export of a food product or an export of wheat shall be void
and shall be disposed of in accordance with regulations
prescribed by the Secretary. Notwithstanding the foregoing
provisions hereof the Secretary may require marketing
certificates issued for any marketing year to be acquired to
cover sales, removals or exportations made on or after the date
during the calendar year in which wheat harvested in such
calendar year begins to be marketed as determined by the
Secretary even though such wheat is marketed prior to the
beginning of the marketing year, and marketing certificates for
such marketing year shall be valid to cover sales, removals, or
exportations made on or after the date so determined by the
Secretary. Whenever the face value per bushel of domestic
marketing certificates for a marketing year is different from
the face value of domestic marketing certificates for the
preceding marketing year, the Secretary may require marketing
certificates issued for the preceding marketing year to be
acquired to cover all wheat processed into food products during
such preceding marketing year even though the food product may
be marketed or removed for sale or consumption after the end of
the marketing year. Notwithstanding the foregoing, the
Secretary is authorized, to temporarily suspend the requirement
for export marketing certificates for the period beginning July
1, 1971, and ending June 30, 1974.
[(c) Upon the giving of a bond or other undertaking
satisfactory to the Secretary to secure the purchase of and
payment for such marketing certificates as may be required, and
subject to such regulations as he may prescribe, any person
required to have marketing certificates in order to market or
export a commodity may be permitted to market any such
commodity without having first acquired marketing certificates.
[(d) As used in this subtitle, the term ``food products''
means flour (excluding flour second clears not used for human
consumption as determined by the Secretary), semolina, farina,
bulgur, beverage, and any other product composed wholly or
partly of wheat which the Secretary may determine to be a food
product. The Secretary may at his election administer the
exemption for wheat processed into flour second clears through
refunds either to processors of such wheat or to the users of
such clears. For the purpose of such refunds, the wheat
equivalent of flour second clears may be determined on the
basis of conversion factors authorized by section 379f of the
Agricultural Adjustment Act of 1938, even though certificates
had been surrendered on the basis of the weight of the wheat.
[ASSISTANCE IN PURCHASE AND SALE OF MARKETING CERTIFICATES
[Sec. 379e. For the purpose of facilitating the purchase and
sale of marketing certificates, the Commodity Credit
Corporation is authorized to issue, buy, and sell marketing
certificates in accordance with regulations prescribed by the
Secretary. Such regulations may authorize the Corporation to
issue and sell certificates in excess of the quantity of
certificates which it purchases. Such regulations may authorize
the Corporation in the sale of marketing certificates to
charge, in addition to the face value thereof an amount
determined by the Secretary to be appropriate to cover
estimated administrative costs in connection with the purchase
and sale of the certificates and estimated interest incurred on
funds of the Corporation invested in certificates purchased by
it. Notwithstanding any other provision of this Act, Commodity
Credit Corporation shall sell marketing certificates for the
marketing years for the 1966 through the 1970 wheat crops to
persons engaged in the processing of food products at the face
value thereof less any amount which price support for wheat
accompanied by domestic certificates exceeds $2 per bushel.
Notwithstanding any other provision of this Act, Commodity
Credit Corporation shall sell marketing certificates for the
marketing years for the 1971, 1972, and 1973 crops of wheat to
persons engaged in the processing of food products but in
determining the cost to processors the face value shall be 75
cents per bushel.
[CONVERSION FACTORS
[Sec. 379f. The Secretary shall establish conversion factors
which shall be used to determine the amount of wheat contained
in any food product. The conversion factor for any such food
product shall be determined upon the basis of the weight of
wheat used in the manufacture of such product.
[AUTHORITY TO FACILITATE TRANSITION
[Sec. 379g. (a) The Secretary is authorized to take such
action as he determines to be necessary to facilitate the
transition from the program currently in effect to the program
provided for in this subtitle. Notwithstanding any other
provision of this subtitle, such authority shall include, but
shall not be limited, to the authority to exempt all or a
portion of the wheat or food products made therefrom in the
channels of trade on the effective date of the program under
this subtitle from the marketing restrictions in subsection (b)
of section 379d, or to sell certificates to persons owning such
wheat or food products at such prices as the Secretary may
determine. Any such certificate shall be issued by Commodity
Credit Corporation.
[(b) Whenever the face value per bushel of domestic marketing
certificates for a marketing year is substantially different
from the face value of domestic marketing certificates for the
preceding marketing year, the Secretary is authorized to take
such action as he determines necessary to facilitate the
transition between marketing years. Notwithstanding any other
provision of this subtitle, such authority shall include, but
shall not be limited to, the authority to sell certificates to
persons engaged in the processing of wheat into food products
covering such quantities of wheat, at such prices, and under
such terms and conditions as the Secretary may by regulation
provide. Any such certificate shall be issued by Commodity
Credit Corporation.
[(c) The Secretary is authorized to take such action as he
determines to be necessary to facilitate the transition from
the certificate program provided for under section 379d to a
program under which no certificates are required.
Notwithstanding any other provision of law, such authority
shall include, but shall not be limited to the authority to
exempt all or a portion of wheat or food products made
therefrom in the channels of trade on July 1, 1973, from the
marketing restrictions in subsection (b) of section 379d, or to
sell certificates to persons owning such wheat or food products
made therefrom at such price and under such terms and
conditions as the Secretary may determine. Any such certificate
shall be issued by the Commodity Credit Corporation. Nothing
herein shall authorize the Secretary to require certificates on
wheat processed after June 30, 1973.
[REPORTS AND RECORDS
[Sec. 379h. This section shall apply to processors of wheat,
warehousemen and exporters of wheat and food products, and all
persons purchasing, selling, or otherwise dealing in wheat
marketing certificates. Any such person shall, from time to
time on request of the Secretary, report to the Secretary such
information and keep such records as the Secretary finds to be
necessary to enable him to carry out the provisions of this
subtitle. Such information shall be reported and such records
shall be kept in such manner as the Secretary shall prescribe.
For the purpose of ascertaining the correctness of any report
made or record kept, or of obtaining information required to be
furnished in any report, but not so furnished, the Secretary is
hereby authorized to examine such books, papers, records,
accounts, correspondence, contracts, documents, and memorandums
as he has reason to believe are relevant and are within the
control of such person.
[PENALTIES
[Sec. 379i. (a) Any person who knowingly violates or attempts
to violate or who knowingly participates or aids in the
violation of any of the provisions of subsection (b) of section
379d of this Act shall forfeit to the United States a sum equal
to two times the face value of the marketing certificates
involved in such violation. Such forfeiture shall be
recoverable in a civil action brought in the name of the United
States.
[(b) Any person, except a producer in his capacity as a
producer, who knowingly violates or attempts to violate or who
knowingly participates or aids in the violation of any of the
provision of this subtitle, or of any regulation, governing the
acquisition, disposition, or handling of marketing certificates
or who knowingly fails to make any report or keep any record as
required by section 379h shall be deemed guilty of a
misdemeanor and upon conviction thereof shall be subject to a
fine of not more than $5,000 for each violation.
[(c) Any person who, in his capacity as a producer, knowingly
violates or attempts to violate or participates or aids in the
violation of any provision of this subtitle, or of any
regulation governing the acquisition, disposition, or handling
of marketing certificates or fails to make any report or keep
any record as required by section 379h shall, (i) forfeit any
right to receive marketing certificates, in whole or in part as
the Secretary may determine, with respect to the farm or farms
and for the marketing year with respect to which any such act
or default is committed, or (ii), if such marketing
certificates have already been issued, pay to the Secretary,
upon demand, the amount of the face value of such certificates,
or such part thereof as the Secretary may determine. Such
determination by the Secretary with respect to the amount of
such marketing certificates to be forfeited or the amount to be
paid by such producer shall take into consideration the
circumstances relating to the act or default committed and the
seriousness of such act or default.
[(d) Any persons who falsely makes, issues, alters, forges,
or counterfeits any marketing certificate, or with fraudulent
intent possesses, transfers, or uses any such falsely made,
issued, altered, forged, or counterfeited marketing
certificate, shall be deemed guilty of a felony and upon
conviction thereof shall be subject to a fine of not more than
$10,000 or imprisonment of not more than ten years, or both.
[REGULATIONS
[Sec. 379j. The Secretary shall prescribe such regulations as
may be necessary to carry out the provisions of this subtitle
including but not limited to regulations governing the
acquisition, disposition, or handling of marketing
certificates.]
* * * * * * *
Subtitle F--Miscellaneous Provisions and Appropriations
PART I--MISCELLANEOUS
* * * * * * *
Sec. 390A. The Secretary, in carrying out programs under
section 32 of Public Law Numbered 320, Seventy-fourth Congress,
approved August 24, 1935, as amended, and section 6 of the
National School Lunch Act may utilize the services and
facilities of the Commodity Credit Corporation (including but
not limited to procurement by contract), and make advance
payments to it.
Sec. 390B. (a) In order to prevent the waste of commodities
whether in private stocks or acquired through price-support
operations by the Commodity Credit Corporation before they can
be disposed of in normal domestic channels without impairment
of the price-support program or sold abroad at competitive
world prices, the Commodity Credit Corporation is authorized,
on such terms and under such regulations as the Secretary may
deem in the public interest: (1) upon application, to make such
commodities available to any Federal agency for use in making
payment for commodities not produced in the United States; (2)
to barter or exchange such commodities for strategic or other
materials as authorized by law; (3) in the case of food
commodities to donate such commodities to the Bureau of Indian
Affairs and to such State, Federal, or private agency or
agencies as may be designated by the proper State or Federal
authority and approved by the Secretary, for use in the United
States in nonprofit school-lunch programs, in nonprofit summer
camps for children, in the assistance of needy persons, and in
charitable institutions, including hospitals and facilities, to
the extent that they serve needy persons (including infants and
children). In the case of (3) the Secretary shall obtain such
assurance as he deems necessary that the recipients thereof
will not diminish their normal expenditures for food by reason
of such donation. In order to facilitate the appropriate
disposal of such commodities, the Secretary may from time to
time estimate and announce the quantity of such commodities
which he anticipates will become available for distribution
under (3). The Commodity Credit Corporation may pay, with
respect to commodities disposed of under this subsection,
reprocessing, packaging, transporting, handling, and other
charges accruing up to the time of their delivery to a Federal
agency or to the designated State or private agency. In
addition, in the case of food commodities disposed of under
this subsection, the Commodity Credit Corporation may pay the
cost of processing such commodities into a form suitable for
home or institutional use, such processing to be accomplished
through private trade facilities to the greatest extent
possible. For the purpose of this subsection the terms
``State'' and ``United States'' include the District of
Columbia and any Territory or possession of the United States.
Dairy products acquired by the Commodity Credit Corporation
through price support operations may, insofar as they can be
used in the United States in nonprofit school lunch and other
nonprofit child feeding programs, in the assistance of needy
persons, and in charitable institutions, including hospitals,
to the extent that needy persons are served, be donated for any
such use prior to any other use or disposition. Notwithstanding
any other provision of law, such dairy products may be donated
for distribution to needy households in the United States and
to meet the needs of persons receiving nutrition assistance
under the Older Americans Act of 1965.
(b)(1) The Secretary, subject to the requirements of
paragraph (10), may furnish eligible commodities for carrying
out programs of assistance in developing countries and friendly
countries under titles II and III of the Agricultural Trade
Development and Assistance Act of 1954 and under the Food for
Progress Act of 1985, as approved by the Secretary, and for
such purposes as are approved by the Secretary. To ensure that
the furnishing of commodities under this subsection is
coordinated with and complements other United States foreign
assistance, assistance under this subsection shall be
coordinated through the mechanism designated by the President
to coordinate assistance under the Agricultural Trade
Development and Assistance Act of 1954.
(2) As used in this subsection, the term ``eligible
commodities'' means--
(A) dairy products, wheat, rice, feed grains, and
oilseeds acquired by the Commodity Credit Corporation
through price support operations, and the products
thereof, that the Secretary determines meet the
criteria specified in subsection (a); and
(B) such other edible agricultural commodities as may
be acquired by the Secretary or the Commodity Credit
Corporation in the normal course of operations and that
are available for disposition under this subsection,
except that no such commodities may be acquired for the
purpose of their use under this subsection.
(3)(A) Commodities may not be made available for disposition
under this subsection in amounts that (i) will, in any way,
reduce the amounts of commodities that traditionally are made
available through donations to domestic feeding programs or
agencies, or (ii) will prevent the Secretary from fulfilling
any agreement entered into by the Secretary under a payment-in-
kind program under this Act or other Acts administered by the
Secretary.
(B)(i) The requirements of section 403(a) of the Agricultural
Trade Development and Assistance Act of 1954 shall apply with
respect to commodities furnished under this subsection.
Commodities may not be furnished for disposition to any country
under this subsection except on determinations by the Secretary
that--
(I) the receiving country has the absorptive capacity
to use the commodities efficiently and effectively; and
(II) such disposition of the commodities will not
interfere with usual marketings of the United States,
nor disrupt world prices of agricultural commodities
and normal patterns of commercial trade with developing
countries.
(ii) The requirement for safeguarding usual marketings of the
United States shall not be used to prevent the furnishing under
this subsection of any eligible commodity for use in countries
that--
(I) have not traditionally purchased the commodity
from the United States; or
(II) do not have adequate financial resources to
acquire the commodity from the United States through
commercial sources or through concessional sales
arrangements.
(C) The Secretary shall take reasonable precautions to ensure
that--
(i) commodities furnished under this subsection will
not displace or interfere with sales that otherwise
might be made; and
(ii) sales or barter under paragraph (7) will not
unduly disrupt world prices of agricultural commodities
nor normal patterns of commercial trade with friendly
countries.
(D) If eligible commodities are made available under this
subsection to a friendly country, nonprofit and voluntary
agencies and cooperatives shall also be eligible to receive
commodities for food aid programs in the country.
(4) Agreements may be entered into under this subsection to
provide eligible commodities in installments over an extended
period of time. In agreements with recipients of eligible
commodities under this subsection (including nonprofit and
voluntary agencies or cooperatives), subject to the
availability of commodities each fiscal year, the Secretary, on
request, shall approve multiyear agreements to make
agricultural commodities available for distribution or sale by
the recipients if the agreements otherwise meet the
requirements of this subsection.
(5)(A) Section 406 of the Agricultural Trade Development and
Assistance Act of 1954 shall apply to the commodities furnished
under this subsection.
(B) The Commodity Credit Corporation may pay the processing
and domestic handling costs incurred, as authorized under this
subsection, in the form of eligible commodities, as defined in
paragraph (2)(A), if the Secretary determines that such in-kind
payment will not disrupt domestic markets.
(6) The cost of commodities furnished under this subsection,
and expenses incurred under section 406 of the Agricultural
Trade Development and Assistance Act of 1954 in connection with
those commodities, shall be in addition to the level of
assistance programmed under that Act and shall not be
considered expenditures for international affairs and finance.
(7) Eligible commodities furnished under this subsection may
be sold or bartered only with the approval of the Secretary and
solely as follows:
(A) Sales and barter that are incidental to the
donation of the commodities or products.
(B) Sales and barter to finance the distribution,
handling, and processing costs of the donated
commodities or products in the importing country or in
a country through which such commodities or products
must be transshipped, or other activities in the
importing country that are consistent with providing
food assistance to needy people.
(C) Sales and barter of commodities and products
furnished to intergovernmental agencies or
organizations, insofar as they are consistent with
normal programming procedures in the distribution of
commodities by those agencies or organizations.
(D)(i) Sales of commodities and products furnished to
nonprofit and voluntary agencies, or cooperatives, for
food assistance under agreements that provide for the
use, by the agency or cooperative, of foreign currency
proceeds generated from such sale of commodities or
products for the purposes established in clause (ii) of
this subparagraph.
(ii) Foreign currencies generated from partial or
full sales or barter of commodities by a nonprofit and
voluntary agency or cooperative shall be used--
(I) to transport, store, distribute, and
otherwise enhance the effectiveness of the use
of commodities and the products thereof donated
under this section; and
(II) to implement income generating,
community development, health, nutrition,
cooperative development, agricultural
programs, and other developmental
activities.
In addition, foreign currency proceeds generated in
Poland may also be used by governmental and
nongovernmental agencies or cooperatives for eligible
activities approved by the joint commission established
pursuant to section 2226 of the American Aid to Poland
Act of 1988 and by the United States chief of
diplomatic mission in Poland that would improve the
quality of life of the Polish people and would
strengthen and support the activities of governmental
or private, nongovernmental independent institutions in
Poland. Activities eligible under the preceding
sentence include--
(I) any project undertaken in Poland under
the auspices of the Charitable Commission of
the Polish Catholic Episcopate for the benefit
of handicapped or orphaned children;
(II) any project for the reconstruction,
renovation, or maintenance of the Research
Center on Jewish History and Culture of the
Jagiellonian University of Krakow, Poland,
established for the study of events related to
the Holocaust in Poland;
(III) any other project or activity which
strengthens and supports private and
independent sectors of the Polish economy,
especially independent farming and agriculture;
and
(IV) the Polish Catholic Episcopate's Rural
Water Supply Foundation.
(iii) Except as otherwise provided in clause (v),
such agreements, taken together for each fiscal year,
shall provide for sales of commodities and products for
foreign currency proceeds in amounts that are, in the
aggregate, not less than 10 percent of the aggregate
value of all commodities and products furnished, or the
minimum tonnage required, whichever is greater, for
carrying out programs of assistance under this
subsection in such fiscal year. The minimum allocation
requirements of this clause apply with respect to
commodities and products made available under this
subsection for carrying out programs of assistance
under titles II and III of the Agricultural Trade
Development and Assistance Act of 1954, and not with
respect to commodities and products made available to
carry out the Food for Progress Act of 1985.
(iv) Foreign currency proceeds generated from the
sale of commodities or products under this subparagraph
shall be expended within the country of origin within
one year of acquisition of such currency, except that
the Secretary may permit the use of such proceeds (I)
in countries other than the country of origin as
necessary to expedite the transportation of commodities
and products furnished under this subsection, (II)
after one year of acquisition as appropriate to achieve
the purposes of clause (i), and (III) in a country
other than the country of origin, if such proceeds are
generated in a currency generally accepted in such
other country.
(v) The provisions of clause (iii) of this
subparagraph establishing minimum annual allocations
for sales and use of proceeds shall not apply to the
extent that there have not been sufficient requests for
such sales and use of proceeds nor to the extent
required under paragraph (3).
(E) Sales and barter to cover expenses incurred under
paragraph (5)(a).
(F) The provisions of sections 403(i) and 407(c) of
the Agricultural Trade Development and Assistance Act
of 1954 shall apply to donations, sales and barters of
eligible commodities under this subsection.
No portion of the proceeds or services realized from sales or
barter under this paragraph may be used to meet operating and
overhead expenses, except as otherwise provided in subparagraph
(C) and except for personnel and administrative costs incurred
by local cooperatives.
(8)(A) To the maximum extent practicable, expedited
procedures shall be used in the implementation of this
subsection.
(B) The Secretary shall be responsible for regulations
governing sales and barter, and the use of foreign currency
proceeds, under paragraph (7) of this subsection that will
provide reasonable safeguards to prevent the occurrence of
abuses in the conduct of activities provided for in paragraph
(7).
(C)(i) If a proposal to make eligible commodities available
under this subsection is submitted by a nonprofit and voluntary
agency or cooperative with the concurrence of the appropriate
United States Government field mission or if a proposal to make
such commodities available to a nonprofit and voluntary agency
or cooperative is submitted by the United States Government
field mission, a decision on the proposal shall be provided
within 45 days after receipt by the Agency for International
Development office in Washington, D.C. The response shall
detail the reasons for approval or denial of the proposal. If
the proposal is denied, the response shall specify the
conditions that would need to be met for the proposal to be
approved.
(ii) Not later than 30 days before the issuance of a final
guideline issued to carry out this subsection, the Secretary
shall--
(I) provide notice of the proposed guideline to
nonprofit and voluntary agencies and cooperatives that
participate in programs under this subsection, and
other interested persons, that the proposed guideline
is available for review and comment;
(II) make the proposed guideline available, on
request, to nonprofit and voluntary agencies,
cooperatives, and others; and
(III) take any comments received into consideration
before the issuance of the final guideline.
(iii) Not later than 15 days after receipt of a call forward
from a field mission for commodities or products that meets the
requirements of this subsection, the order for the purchase or
the supply, from inventory, of such commodities or products
shall be transmitted to the Commodity Credit Corporation.
(9)(A) Each recipient of commodities and products approved
for sale or barter under paragraph (7) shall report to the
Secretary information with respect to the items required to be
included in the Secretary's report pursuant to clauses (i)
through (iv) of subparagraph (B). Reports pursuant to this
subparagraph shall be submitted in accordance with regulations
of the Secretary. Such regulations shall require at least one
report annually, to be submitted not later than December 31
following the end of the fiscal year in which the commodities
and products are received; except that a report shall not be
required with respect to fiscal year 1985.
(B) Not later than February 15, 1987, and annually
thereafter, the Secretary shall report to the Congress on sales
and barter, and use of foreign currency proceeds, under
paragraph (7) during the preceding fiscal year. Such report
shall include information on--
(i) the quantity of commodities furnished for such
sale or barter;
(ii) the amount of funds (including dollar
equivalents for foreign currencies) and value of
services generated from such sales and barter in such
fiscal year;
(iii) how such funds and services were used;
(iv) the amount of foreign currency proceeds that
were used under agreements under subparagraph (D) of
paragraph (7) in such fiscal year, and the percentage
of the quantity of all commodities and products
furnished under this subsection in such fiscal year
such use represented;
(v) the Secretary's best estimate of the amount of
foreign currency proceeds that will be used, under
agreements under subparagraph (D) of paragraph (7), in
the then current fiscal year and the next following
fiscal year (if all requests for such use are agreed
to), and the percentage that such estimated use
represents of the quantity of all commodities and
products that the Secretary estimates will be furnished
under this subsection in each such fiscal year;
(vi) the effectiveness of such sales, barter, and use
during such fiscal year in facilitating the
distribution of commodities and products under this
subsection;
(vii) the extent to which sales, barter, or uses--
(I) displace or interfere with commercial
sales of United States agricultural commodities
and products that otherwise would be made,
(II) affect usual marketings of the United
States,
(III) disrupt world prices of agricultural
commodities or normal patterns of trade with
friendly countries, or
(IV) discourage local production and
marketing of agricultural commodities in the
countries in which commodities and products are
distributed under this subsection; and
(viii) the Secretary's recommendations, if any, for
changes to improve the conduct of sales, barter, or use
activities under paragraph (7).
(10)(A) Subject to the limitations established under
paragraph (3), the Secretary shall make available for
disposition under this subsection in each of the fiscal years
1988 through 1990 not less than the minimum quantities of
eligible commodities specified in subparagraph (B).
(B) The minimum quantity of eligible commodities that shall
be made available for disposition under this subsection in each
fiscal year shall be--
(i) 500,000 metric tons of wheat, rice, feed grains,
and oilseeds from the Corporation's uncommitted stocks,
or an amount equal to 10 percent of the Corporation's
uncommitted stocks of wheat, rice, feed grains, and
oilseeds as of the end of such fiscal year (as
estimated by the Secretary), whichever is less; and
(ii) 10 percent of the Corporation's uncommitted
stocks of dairy products, but not less than 150,000
metric tons of such products to the extent that
uncommitted stocks are available.
The Secretary shall make such estimation of expected year-end
levels of the Corporation's uncommitted stocks prior to the
beginning of the fiscal year or, in the case of fiscal year
1986, prior to March 31, 1986. The Secretary's determination as
to the amount of the Corporation's stocks that shall be made
available for disposition under this subsection for such fiscal
year shall be published in the Federal Register, along with a
breakdown by kind of commodity and the quantity of each kind of
commodity that shall be made available, before the beginning of
such fiscal year or, in the case of fiscal year 1986, March 31,
1986.
(C) Of the aggregate amounts made available each fiscal year
pursuant to both clauses (i) and (ii) of subparagraph (B), not
less than 75,000 metric tons shall be made available to carry
out the Food for Progress Act of 1985.
(D)(i) The Secretary--
(I) may waive the minimum quantity requirements of
subparagraphs (A) and (B) for a fiscal year to the
extent that the Secretary determines and reports to
Congress that there are not sufficient requests for
eligible commodities under this subsection for such
fiscal year, except that the waiver authority of this
subclause may not be used to waive the minimum quantity
requirement of subparagraph (C);
(II) may waive the minimum quantity requirement of
subparagraph (C) in accordance with subsection (f)(2)
of the Food for Progress Act of 1985; and
(III) may waive the minimum quantity requirements of
subparagraphs (A), (B), and (C) for a fiscal year, if
the Secretary determines that the restrictions on the
furnishing of commodities under paragraph (3) prevent
the making available of commodities in such quantities.
(ii) For any fiscal year in which the minimum levels of
uncommitted Commodity Credit Corporation stocks specified in
subparagraph (B) are not made available and during which any
requests for commodities under this subsection are rejected,
the Secretary shall provide a detailed, written explanation to
Congress, at the end of such fiscal year, of the reasons for
the rejections of such requests.
(11)(A) The Secretary may furnish eligible commodities under
this subsection in connection with (i) concessional sales
agreements entered into under title I of the Agricultural Trade
Development and Assistance Act of 1954 or other statutes, or
(ii) agricultural export bonus or promotion programs carried
out under the Commodity Credit Corporation Charter Act or other
statutes.
(B) Eligible commodities may be furnished by the Secretary
under this subsection in connection with agreements by
recipient countries to acquire additional agricultural
commodities from the United States through commercial
arrangements.
(C) The amount of any commodity furnished under subparagraphs
(A) and (B) of this paragraph in any fiscal year shall not be
considered for the purpose of determining whether the
requirements of paragraph (10)(A) of this subsection have been
met during such fiscal year.
(12) There is authorized to be appropriated for fiscal year
1988, in addition to any other funds authorized to be
appropriated, $1,000,000 for technical assistance for the sale
or barter of commodities under paragraph (7) to strengthen
nonprofit private organizations and cooperatives in the
Philippines.
(c) To prevent the waste of dairy products acquired by the
Commodity Credit Corporation through price support operations,
the Corporation, on such terms and under such regulations as
the Secretary may prescribe, shall carry out a two-year pilot
program under which the Corporation shall barter or exchange
such dairy products, to the extent they are available, for
forty thousand metric tons (consisting of twenty thousand
metric tons in each year of the pilot program) of ultra-high
temperature processed fluid milk. Such barter or exchange shall
be effected on the basis of competitive bids submitted by
domestic processors. The processed milk acquired by the
Corporation under this subsection shall be available for
donation through foreign governments and public and nonprofit
private humanitarian organizations for the assistance of needy
persons outside the United States, and the Corporation may pay,
with respect to such processed milk donated under this
subsection, transporting, handling, and other charges,
including the cost of overseas delivery. Any donations under
this subsection shall be coordinated through the mechanism
designated by the President to coordinate assistance under the
Agricultural Trade Development and Assistance Act of 1954 and
shall be in addition to the level of assistance programmed
under that Act. The pilot program shall be implemented by the
Corporation as soon as practicable after the enactment of the
Agricultural Programs Adjustment Act of 1984 and shall be
operated for a period of two years after its implementation.
Upon completion of the pilot program, the Secretary shall
submit a report to Congress on its operation.
* * * * * * *
[TITLE IV--COTTON POOL PARTICIPATION TRUST CERTIFICATES
[Sec. 401. There is hereby authorized to be appropriated,
from any moneys in the Treasury of the United States not
otherwise appropriated, the sum of $1,800,000, or so much
thereof as may be required by the Secretary to accomplish the
purposes hereinafter declared and authorized. The Secretary of
the Treasury is hereby authorized and directed to pay to, or
upon the order of, the Secretary, such a part or all of the sum
hereby authorized to be appropriated at the request of the
Secretary.
[Sec. 402. The Secretary is hereby authorized to draw from
the Treasury of the United States any part or all of the sum
hereby authorized to be appropriated, and to deposit same to
his credit with the Treasurer of the United States, under
special symbol number, to be available for disbursement for the
purposes hereinafter stated.
[Sec. 403. The Secretary is hereby authorized to make
available, from the sum hereby authorized to be appropriated,
to the manager of the cotton pool, such sum or sums as may be
necessary to enable the manager to purchase, take up, and
cancel, subject to the restrictions hereinafter reserved, pool
participation trust certificates, form C-5-I, where such
certificates shall be tendered to the manager, cotton pool, by
the person or persons shown by the records of the Department to
have been the lawful holder and owner thereof on May 1, 1937,
the purchase price to be paid for the certificates so purchased
to be at the rate of $1 per five-hundred-pound bale for every
bale or fractional part thereof represented by the certificates
C-5-I. The Secretary is further authorized to pay directly, or
to advance to, the manager of the cotton pool, to enable him to
pay costs and expenses incident to the purchase of certificates
as aforesaid and any balance remaining to the credit of the
Secretary, or the manager, cotton pool, not required for the
purchase of these certificates in accordance with provisions of
this Act, shall, at the expiration of the purchase period, be
covered into the Treasury of the United States as miscellaneous
receipts.
[Sec. 404. The authority of the manager, cotton pool, to
purchase and pay for certificates hereunder shall extend to and
include the 31st day of July 1938: Provided, That after
expiration of the said limit, the purchase may be consummated
of any certificates tendered to the manager, cotton pool, on or
before July 31, 1938, but where for any reason the purchase
price shall not have been paid by the manager, cotton pool. The
Secretary is authorized to promulgate such rules, regulations,
and requirements as in his discretion are proper to effectuate
the general purposes of this title, which purpose is here
stated to be specifically to authorize the purchase of
outstanding pool participation trust certificates, form C-5-I,
for a purchase price to be determined at the rate of $1 per
bale, or twenty one-hundredths cent per pound, for the cotton
evidenced by the said certificates, provided such certificates
be tendered by holders thereof in accordance with regulations
prescribed by the Secretary not later than the 31st day of July
1938, and provided such certificates may not be purchased from
persons other than those shown by the records of the Department
to have been holders thereof on or before the 1st day of May
1937.
[Sec. 405. The Secretary is authorized to continue in
existence the 1933 cotton producers pool so long as may be
required to effectuate the purposes of this title. All expenses
incident to the accomplishment of purposes of this title may be
paid from funds hereby authorized to be appropriated, for which
purpose the fund hereby authorized to be appropriated shall be
deemed as supplemental to such funds as are now to the credit
of the Secretary, reserved for the purpose of defraying
operating expenses of the pool.
[Sec. 406. After expiration of the time limit herein
established, the certificates then remaining outstanding and
not theretofore tendered to the manager, cotton pool, for
purchase, shall not be purchased and no obligation on account
thereof shall exist.
[Sec. 407. Nothing in this title shall be construed to
authorize the manager, cotton pool, to pay the assignee or any
holder of such cotton pool participation trust certificates,
form C-5-I, transferred on or before May 1, 1937, as shown by
the records of the Department of Agriculture, more than the
purchase price paid by the assignee or holder of such
certificate with interest at the rate of 4 per centum per annum
from the date of purchase, provided the amount paid such
assignee shall not exceed $1 per bale. Before making payment to
any assignee, whose certificates were transferred on or before
May 1, 1937, such assignee shall file with the manager, cotton
pool, an affidavit showing the amount paid by him for such
certificate and the date of such payment, and the manager,
cotton pool, is authorized to make payment to such assignee
based upon the facts stated in said affidavit as aforesaid.]
----------
AGRICULTURAL ACT OF 1949
AN ACT To provide assistance to the States in the establishment,
maintenance, operation, and expansion of school-lunch programs, and for
other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, [That this
Act may be cited as the ``Agricultural Act of 1949''.
[TITLE I--BASIC AGRICULTURAL COMMODITIES
[Sec. 101. The Secretary of Agriculture (hereinafter called
the ``Secretary'') is authorized and directed to make available
through loans, purchases, or other operations, price support to
cooperators for any crop of any basic agricultural commodity,
if producers have not disapproved marketing quotas for such
crop, at a level not in excess of 90 per centum of the parity
price of the commodity nor less than the level provided in
subsections (a), (b), and (c) as follows:
[(a) For tobacco (except as otherwise provided herein), corn, and
wheat, if the supply percentage as of the beginning of the marketing
year is: The level of support shall be not less than the
following percentage of the parity price:
Not more than 102......................................... 90
More than 102 but not more than 104....................... 89
More than 104 but not more than 106....................... 88
More than 106 but not more than 108....................... 87
More than 108 but not more than 110....................... 86
More than 110 but not more than 112....................... 85
More than 112 but not more than 114....................... 84
More than 114 but not more than 116....................... 83
More than 116 but not more than 118....................... 82
More than 118 but not more than 120....................... 81
More than 120 but not more than 122....................... 80
More than 122 but not more than 124....................... 79
More than 124 but not more than 126....................... 78
More than 126 but not more than 128....................... 77
More than 128 but not more than 130....................... 76
More than 130............................................. 75
For rice of the 1959 and 1960 crops, the level of support shall
be not less than 75 per centum of the parity price. For rice of
the 1961 crop the level of support shall be not less than 70
per centum of the parity price. For the 1962 and subsequent
crops of rice the level of support shall be not less than 65
per centum of the parity price.
[(b) For cotton and peanuts, if the supply percentage as of the
beginning of theThe level of support shall be not less than the
following percentage of the parity price:
More than 108............................................. 90
More than 108 but not more than 110....................... 89
More than 110 but not more than 112....................... 88
More than 112 but not more than 114....................... 87
More than 114 but not more than 116....................... 86
More than 116 but not more than 118....................... 85
More than 118 but not more than 120....................... 84
More than 120 but not more than 122....................... 83
More than 122 but not more than 124....................... 82
More than 124 but not more than 125....................... 81
More than 125 but not more than 126....................... 80
More than 126 but not more than 127....................... 79
More than 127 but not more than 128....................... 78
More than 128 but not more than 129....................... 77
More than 129 but not more than 130....................... 76
More than 130............................................. 75
[(c) For tobacco, if marketing quotas are in effect, the
level of support shall be 90 per centum of the parity price.
[(d) Notwithstanding the foregoing provisions of this
section--
[(3) the level of price support to cooperators for
any crop of a basic agricultural commodity, except
tobacco, for which marketing quotas have been
disapproved by producers shall be 50 per centum of the
parity price of such commodity; and no price support
shall be made available for any crop of tobacco for
which marketing quotas have been disapproved by
producers;
[(5) price support may be made available to
noncooperators at such levels, not in excess of the
level of price support to cooperators, as the Secretary
determines will facilitate the effective operation of
the program.
[(7) Where a State is designated under section 335(e)
of the Agricultural Adjustment Act of 1938, as amended,
as outside the commercial wheat-producing area for any
crop of wheat, the level of price support for wheat to
cooperators in such State for such crop of wheat shall
be 75 per centum of the level of price support to
cooperators in the commercial wheat-producing area.
[SEC. 101B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE
1991 THROUGH 1995 CROPS OF RICE.
[(a) Loans and Purchases.--
[(1) In general.--Except as otherwise provided in
this subsection, the Secretary shall make available to
producers on a farm nonrecourse loans and purchases for
each of the 1991 through 1995 crops of rice produced on
the farm at a level that is not less than the higher
of--
[(A) 85 percent of the simple average price
received by producers, as determined by the
Secretary, during the marketing years for the
immediately preceding 5 crops of rice,
excluding the year in which the average price
was the highest and the year in which the
average price was the lowest in the period; or
[(B) $6.50 per hundredweight.
[(2) Maximum reduction.--The loan level for any crop
of rice determined under paragraph (1) may not be
reduced by more than 5 percent from the level
determined for the preceding crop.
[(3) Announcement of loan level and established
price.--The loan and purchase level and the established
price for each of the 1991 through 1995 crops of rice
shall be announced not later than January 31 of each
calendar year for the crop harvested in the calendar
year or, in the case of the 1991 crop, as soon as
practicable after the date of enactment of this
section.
[(4) Term.--A loan made under this subsection shall
have a term of not more than 9 months beginning after
the month in which the application for the loan is
made.
[(5) Marketing loan provisions.--
[(A) In general.--In order to ensure that a
competitive market position is maintained for
rice, the Secretary shall permit a producer to
repay a loan made under paragraph (1) for a
crop at a level that is the lesser of--
[(i) the loan level determined for
the crop; or
[(ii) the higher of--
[(I) the loan level
determined for the crop
multiplied by 70 percent; or
[(II) the prevailing world
market price for rice, as
determined by the Secretary.
[(B) Prevailing world market price.--The
Secretary shall prescribe by regulation--
[(i) a formula to define the
prevailing world market price for rice;
and
[(ii) a mechanism by which the
Secretary shall announce periodically
the prevailing world market price for
rice.
[(C) Producer purchase of marketing
certificates.--
[(i) In general.--As a condition of
permitting a producer to repay a loan
as provided in subparagraph (A), the
Secretary may require a producer to
purchase marketing certificates equal
in value to an amount that does not
exceed one-half the difference, as
determined by the Secretary, between
the amount of the loan obtained by the
producer and the amount of the loan
repayment.
[(ii) Redemption for rice or cash.--
The certificates shall be redeemable
for agricultural commodities owned by
the Commodity Credit Corporation valued
at the prevailing market price, as
determined by the Secretary or for
cash, under such terms and conditions
as the Secretary may prescribe.
[(iii) Redemption, marketing, or
exchange.--The Commodity Credit
Corporation, under regulations
prescribed by the Secretary, shall
assist any person receiving marketing
certificates under this subparagraph in
the redemption or marketing or exchange
of the certificates at such times, in
such manner, and at such price levels
as the Secretary determines will best
effectuate the purposes of the program
established under this section.
[(iv) Charges.--If any such
certificate is not presented for
redemption or marketing within a
reasonable number of days after
issuance, as determined by the
Secretary, reasonable costs of storage
and other carrying charges, as
determined by the Secretary, shall be
deducted from the value of the
certificate for the period beginning
after the reasonable number of days and
ending with the date of the
presentation of the certificate to the
Commodity Credit Corporation.
[(v) Designation of commodities and
products.--Insofar as practicable, the
Secretary shall permit owners of
certificates to designate the
commodities and the products thereof,
including storage sites thereof, the
owners would prefer to receive in
exchange for certificates.
[(vi) Sales price restrictions.--
Notwithstanding any other provision of
law, any price restrictions that may
otherwise apply to the disposition of
agricultural commodities by the
Commodity Credit Corporation shall not
apply to the redemption of certificates
under this subparagraph.
[(vii) Displacement.--The Secretary
shall take such measures as may be
necessary to prevent the marketing or
exchange of agricultural commodities
and the products thereof for
certificates under this subparagraph
from adversely affecting the income of
producers of the commodities or
products.
[(viii) Transfers.--Under regulations
prescribed by the Secretary,
certificates issued under this
subparagraph may be transferred to
other persons approved by the
Secretary.
[(D) Certificates to maintain
competitiveness.--
[(i) In general.--Notwithstanding any
other provision of law, whenever,
during the period beginning August 1,
1991, and ending July 31, 1996, the
prevailing world market price for a
class of rice (adjusted to United
States quality and location), as
determined by the Secretary, is below
the current loan repayment rate for
that class of rice, to make United
States rice competitive in world
markets and to maintain and expand
exports of rice produced in the United
States, the Commodity Credit
Corporation shall make payments,
through the issuance of marketing
certificates, to persons who have
entered into an agreement with the
Commodity Credit Corporation to
participate in the program established
under this subparagraph. The payments
shall be made in such monetary amounts
and subject to such terms and
conditions as the Secretary determines
will make rice produced in the United
States available at competitive prices
consistent with the purposes of this
subparagraph.
[(ii) Value.--The value of each
certificate issued under this
subparagraph shall be based on the
difference between--
[(I) the loan repayment rate
for the class of rice; and
[(II) the prevailing world
market price for the class of
rice, as determined by the
Secretary.
[(iii) Terms and conditions of
certificates.--Marketing certificates
issued under this subparagraph shall be
subject to the same terms and
conditions as certificates issued under
subparagraph (C).
[(6) Simple average price.--For purposes of this
section, the simple average price received by producers
for the immediately preceding marketing year shall be
based on the latest information available to the
Secretary at the time of the determination.
[(b) Loan Deficiency Payments.--
[(1) In general.--The Secretary shall, for each of
the 1991 through 1995 crops of rice, make payments
(hereafter in this section referred to as ``loan
deficiency payments'') available to producers who,
although eligible to obtain a loan or purchase
agreement under subsection (a), agree to forgo
obtaining the loan or agreement in return for payments
under this subsection.
[(2) Computation.--A payment under this subsection
shall be computed by multiplying--
[(A) the loan payment rate; by
[(B) the quantity of rice the producer is
eligible to place under loan (or obtain a
purchase agreement) but for which the producer
forgoes obtaining the loan or agreement in
return for payments under this subsection.
[(3) Loan payment rate.--For purposes of this
subsection, the loan payment rate shall be the amount
by which--
[(A) the loan level determined for the crop
under subsection (a); exceeds
[(B) the level at which a loan may be repaid
under subsection (a).
[(4) Marketing certificates.--The Secretary may make
up to one-half the amount of a payment under this
subsection available in the form of marketing
certificates, subject to the terms and conditions
provided in subsection (a)(5)(C).
[(c) Payments.--
[(1) Deficiency payments.--
[(A) In general.--The Secretary shall make
available to producers payments (hereafter in
this section referred to as ``deficiency
payments'') for each of the 1991 through 1995
crops of rice in an amount computed by
multiplying--
[(i) the payment rate; by
[(ii) the payment acres for the crop;
by
[(iii) the farm program payment yield
established for the crop for the farm.
[(B) Payment rate.--
[(i) Payment rate for 1991 through
1993 crops.--The payment rate for each
of the 1991 through 1993 crops of rice
shall be the amount by which the
established price for the crop of rice
exceeds the higher of--
[(I) the national average
market price received by
producers during the first 5
months of the marketing year
for the crop, as determined by
the Secretary; or
[(II) the loan level
determined for the crop.
[(ii) Payment rate of 1994 and 1995
crops.--The payment rate for each of
the 1994 and 1995 crops of rice shall
be the amount by which the established
price for the crop of rice exceeds the
higher of--
[(I) the lesser of--
[(aa) the national
average market price
received by producers
during the calendar
year that contains the
first 5 months of the
marketing year for the
crop, as determined by
the Secretary; or
[(bb) the national
average market price
received by producers
during the first 5
months of the marketing
year for the crop, as
determined by the
Secretary, plus an
appropriate amount that
is fair and equitable
in relation to wheat
and feed grains (as
determined by the
Secretary); or
[(II) the loan level
determined for the crop.
[(iii) Minimum established price.--
The established price for rice shall
not be less than $10.71 per
hundredweight for each of the 1991
through 1995 crops.
[(C) Payment acres.--Payment acres for a crop
shall be the lesser of--
[(i) the number of acres planted to
the crop for harvest within the
permitted acreage; or
[(ii) 85 percent of the crop acreage
base for the crop for the farm less the
quantity of reduced acreage (as
determined under subsection (e)(2)(D)).
[(D) 50/85 program.--
[(i) In general.--If an acreage
limitation program under subsection
(e)(2) is in effect for a crop of rice
and the producers on a farm devote a
portion of the maximum payment acres
for rice as calculated under
subparagraph (C)(ii) for equal to more
than 8 percent for each of the 1991
through 1993 crops, and 15 percent for
each of the 1994 through 1997 crops
(except as provided in clause (v)(II)),
of such rice acreage of the farm for
the crop to conservation uses (except
as provided in subparagraph (E))--
[(I) such portion of the
maximum payment acres in excess
of 8 percent for each of the
1991 through 1993 crops, and 15
percent for each of the 1994
through 1997 crops (except as
provided in clause (v)(II)), of
such acreage devoted to
conservation uses (except as
provided in subparagraph (E))
shall be considered to be
planted to rice for the purpose
of determining the acreage on
the farm required to be devoted
to conservation uses in
accordance with subsection
(e)(2)(D); and
[(II) the producers shall be
eligible for payments under
this paragraph with respect to
such acreage, subject to the
compliance of the producers
with clause (ii).
[(ii) Minimum planting requirement.--
To be eligible for payments under
clause (i), except as provided in
clauses (iv) and (v), the producers on
a farm must actually plant rice for
harvest on at least 50 percent of the
maximum payment acres for rice for the
farm.
[(iii) Deficiency payments.--
Notwithstanding any other provision of
this section, any producer who devotes
a portion of the maximum payment acres
for rice for the farm to conservation
uses (or other uses as provided in
subparagraph (E)) under this
subparagraph shall receive deficiency
payments on the acreage that is
considered to be planted to rice and
eligible for payments under this
subparagraph for the crop at a per-
hundredweight rate established by the
Secretary, except that the rate may not
be established at less than the
projected deficiency payment rate for
the crop, as determined by the
Secretary. Such projected payment rate
for the crop shall be announced by the
Secretary prior to the period during
which rice producers may agree to
participate in the program for the
crop.
[(iv) Quarantines.--If a State or
local agency has imposed in an area of
a State or county a quarantine on the
planting of rice for harvest on farms
in the area, the State committee
established under section 8(b) of the
Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)) may
recommend to the Secretary that
payments be made under this paragraph,
without regard to the requirement
imposed under clause (ii), to producers
in the area who were required to forgo
the planting of rice for harvest on
acreage to alleviate or eliminate the
condition requiring the quarantine. If
the Secretary determines that the
condition exists, the Secretary may
make payments under this paragraph to
the producers. To be eligible for
payments under this clause, the
producers must devote the acreage to
conservation uses (except as provided
in subparagraph (E)).
[(v) Prevented planting and reduced
yields.--
[(I) 1991 through 1993
crops.--In the case of each of
the 1991 through 1993 crops of
rice, if an acreage limitation
program under subsection (e) is
in effect for any crop of rice
and if the Secretary determines
that producers on a farm are
prevented from planting the
acreage intended for rice to
rice because of drought, flood,
or other natural disaster, or
other condition beyond the
control of the producers, the
Secretary shall make available
to such producers payments
under this subparagraph without
regard to the requirement
imposed under clause (ii). To
be eligible for payments under
this clause, the producers must
devote the acreage to
conservation uses (except as
provided in subparagraph (E)).
Any such acreage shall be
considered to be planted to
rice.
[(II) 1994 through 1997
crops.--In the case of each of
the 1994 through 1997 crops of
rice, producers on a farm shall
be eligible to receive
deficiency payments as provided
in clause (iii) without regard
to clause (ii) if an acreage
limitation program under
subsection (e) is in effect for
the crop and--
[(aa) the producers
have been determined by
the Secretary (in
accordance with section
503(c)) to be prevented
from planting the crop
or have incurred a
reduced yield for the
crop (due to a natural
disaster) and the
producers elect to
devote a portion of the
maximum payment acres
for rice (as calculated
under subparagraph
(C)(ii)) equal to more
than 8 percent of the
rice acreage, to
conservation uses; or
[(bb) the producers
elect to devote a
portion of the maximum
payment acres for rice
(as calculated under
subparagraph (C)(ii))
equal to more than 8
percent of the rice
acreage, to alternative
crops as provided in
subparagraph (E).
[(vi) Crop acreage and payment
yield.--The rice crop acreage base and
rice farm program payment yield of the
farm shall not be reduced due to the
fact that a portion of the permitted
rice acreage of the farm was devoted to
conserving uses (except as provided in
subparagraph (E)) under this
subparagraph.
[(vii) Limitation.--Other than as
provided in clauses (i) through (vi),
payments may not be made under this
paragraph for any crop on a greater
acreage than the acreage actually
planted to rice.
[(viii) Conservation use acreage
under other programs.--Any acreage
considered to be planted to rice in
accordance with clauses (i) and (vi)
may not also be designated as
conservation use acreage for the
purpose of fulfilling any provisions
under any acreage limitation or land
diversion program requiring that the
producers devote a specified acreage to
conservation uses.
[(E) Alternative crops.--
[(i) Industrial and other crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of
acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (D) to be devoted to
sweet sorghum, guar, castor beans,
plantago ovato, triticale, rye, millet,
mung beans, commodities for which no
substantial domestic production or
market exists but that could yield
industrial raw material being imported,
or likely to be imported, into the
United States, or commodities grown for
experimental purposes (including kenaf
and milkweed), subject to the following
sentence. The Secretary may permit the
acreage to be devoted to the production
only if the Secretary determines that--
[(I) the production is not
likely to increase the cost of
the price support program; and
[(II) the production is
needed to provide an adequate
supply of the commodity, or, in
the case of commodities for
which no substantial domestic
production or market exists but
that could yield industrial raw
materials, the production is
needed to encourage domestic
manufacture of the raw material
and could lead to increased
industrial use of the raw
material to the long-term
benefit of United States
industry.
[(ii) Sesame and crambe.--The
Secretary shall permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of
acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (D) to be devoted to
sesame and crambe. In implementing this
clause, if the Secretary determines
that sesame or crambe are considered
oilseeds under section 205, the
Secretary shall provide that, in order
to receive payments under subparagraph
(D), the producers shall agree to forgo
eligibility to receive a loan under
section 205 for the crop of sesame or
crambe produced on the farm.
[(2) Crop insurance requirement.--A producer shall
obtain catastrophic risk protection insurance coverage
in accordance with section 427.
[(d) Payment Yields.--The farm program payment yields for
farms for each crop of rice shall be determined under title V.
[(e) Acreage Reduction Programs.--
[(1) In general.--
[(A) Establishment.--Notwithstanding any
other provision of this Act, if the Secretary
determines that the total supply of rice, in
the absence of an acreage limitation program,
will be excessive taking into account the need
for an adequate carry-over to maintain
reasonable and stable supplies and prices and
to meet a national emergency, the Secretary may
provide for any crop of rice an acreage
limitation program as described in paragraph
(2).
[(B) Agricultural resources conservation
program.--In making a determination under
subparagraph (A), the Secretary shall take into
consideration the number of acres placed in the
agricultural resources conservation program
established under subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831
et seq.).
[(C) Announcements.--
[(i) Preliminary announcement.--If
the Secretary elects to implement an
acreage limitation program for any crop
year, the Secretary shall make a
preliminary announcement of any such
program not later than December 1 of
the calendar year preceding the year in
which the crop is harvested (or, for
the 1992 crop, as soon as practicable
after the date of enactment of this
subparagraph). The preliminary
announcement shall include, among other
information determined necessary by the
Secretary, an announcement of the
uniform percentage reduction in the
rice crop acreage base described in
paragraph (2)(A).
[(ii) Final announcement.--Not later
than January 31 of the calendar year in
which the crop is harvested, the
Secretary shall make a final
announcement of the program. The
announcement shall include, among other
information determined necessary by the
Secretary, an announcement of the
uniform percentage reduction in the
rice crop described in paragraph
(2)(A).
[(D) Carry-over.--The Secretary shall carry
out an acreage limitation program described in
paragraph (2) for a crop of rice in a manner
that will result in carry-over stocks equal to
16.5 to 20 percent of the simple average of the
total disappearance of rice for each of the 3
marketing years preceding the year for which
the announcement is made. For the purpose of
this subparagraph, the term ``total
disappearance'' means all rice utilization,
including total domestic, total export, and
total residual disappearance.
[(2) Acreage limitation program.--
[(A) Percentage reductions.--Except as
provided in paragraph (3), if a rice acreage
limitation program is announced under paragraph
(1), such limitation shall be achieved by
applying a uniform percentage reduction (from 0
to 35 percent) to the rice crop acreage base
for the crop for each rice-producing farm.
[(B) Compliance.--Except as provided in
section 504, producers who knowingly produce
rice in excess of the permitted rice acreage
for the farm, as established in accordance with
subparagraph (A), shall be ineligible for rice
loans, purchases, and payments with respect to
that farm.
[(C) Crop acreage bases.--Rice crop acreage
bases for each crop of rice shall be determined
under title V.
[(D) Acreage devoted to conservation uses.--A
number of acres on the farm shall be devoted to
conservation uses, in accordance with
regulations issued by the Secretary. Such
number shall be determined by multiplying the
rice crop acreage base by the percentage
reduction required by the Secretary. The number
of acres so determined is hereafter in this
subsection referred to as ``reduced acreage''.
The remaining acreage is hereafter in this
subsection referred to as ``permitted
acreage''. Permitted acreage may be adjusted by
the Secretary as provided in paragraph (3) and
in section 504.
[(E) Individual farm program acreage.--Except
as otherwise provided in subsection (c), the
individual farm program acreage shall be the
acreage planted on the farm to rice for harvest
within the permitted rice acreage for the farm
as established under this paragraph.
[(F) Planting designated crops on reduced
acreage.--
[(i) Definition of designated crop.--
As used in this subparagraph, the term
``designated crop'' means a crop
defined in section 504(b)(1), excluding
any program crop as defined in section
502(3).
[(ii) In general.--Subject to clause
(iii), the Secretary may permit
producers on a farm to plant a
designated crop on no more than one-
half of the reduced acreage on the
farm.
[(iii) Limitations.--If the producers
on a farm elect to plant a designated
crop on reduced acreage under this
subparagraph--
[(I) the amount of the
deficiency payment that the
producers are otherwise
eligible to receive under
subsection (c) shall be
reduced, for each acre (or
portion thereof) that is
planted to the designated crop,
by an amount equal to the
deficiency payment that would
be made with respect to a
number of acres of the crop
that the Secretary considers
appropriate, except that if the
producers on the farm are
participating in a program
established for more than one
program crop, the amount of the
reduction shall be determined
by prorating the reduction
based on the acreage planted or
considered planted on the farm
to all of such program crops;
and
[(II) the Secretary shall
ensure that reductions in
deficiency payments under
subclause (I) are sufficient to
ensure that this subparagraph
will result in no additional
cost to the Commodity Credit
Corporation.
[(3) Targeted option payments.--
[(A) In general.--Notwithstanding any other
provision of this section, if the Secretary
implements an acreage limitation program with
respect to any of the 1991 through 1995 crops
of rice and announces an acreage limitation
percentage of 20 percent or less, the Secretary
may make available to producers on a farm who
do not receive payments under subsection
(c)(1)(D) for such crop on the farm,
adjustments in the level of deficiency payments
that would otherwise be made available to the
producers if the producers exercise the payment
options provided in this paragraph.
[(B) Payment options.--If the Secretary
elects to carry out this paragraph, the
Secretary shall make the payment options
specified in subparagraphs (C) and (D)
available to producers who agree to make
adjustments in the quantity of acreage diverted
from the production of rice under an acreage
limitation program in accordance with this
paragraph.
[(C) Increased acreage limitation option.--
[(i) Increase in established price.--
If the Secretary elects to carry out
this paragraph, a producer shall be
eligible to receive an increase in the
established price for rice under clause
(ii) if the producer agrees to an
increase in the acreage limitation
percentage to be applied to the
producers' rice acreage base above the
acreage limitation percentage announced
by the Secretary.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who participate in the
program under this paragraph, the
Secretary shall increase the
established price for rice by an amount
determined by the Secretary, but not
less than 0.5 percent, nor more than 1
percent, for each 1 percentage point
increase in the acreage limitation
percentage applied to the producers'
rice acreage base.
[(iii) Limitation.--The acreage
limitation percentage to be applied to
the producers' rice acreage base shall
not be increased by more than 5
percentage points above the acreage
limitation percentage announced by the
Secretary.
[(iv) Adjustment for
underplantings.--In determining the
increased acreage limitation percentage
that is applied to the producer's rice
acreage base under this paragraph, the
Secretary shall exclude an amount of
acreage equal to the average difference
between the producer's permitted rice
acreage and the acreage actually
planted (including acreage devoted to
conserving uses under subsection
(c)(1)(D)) to rice for harvest during
the previous 2 years.
[(D) Decreased acreage limitation option.--
[(i) Decrease in acreage limitation
requirement.--If the Secretary elects
to carry out this paragraph, a producer
shall be eligible to decrease the
acreage limitation percentage
applicable to the producers' rice
acreage base (as announced by the
Secretary) if the producer agrees to a
decrease in the established price for
rice under clause (ii) for the purpose
of calculating deficiency payments to
be made available to the producer.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who choose the option set
forth in this subparagraph, the
Secretary shall decrease the
established price for rice by an amount
to be determined by the Secretary, but
not less than 0.5 percent, nor more
than 1 percent, for each 1 percentage
point decrease in the acreage
limitation percentage applied to the
producers' rice acreage base.
[(iii) Limitation.--A producer may
not choose to decrease the acreage
limitation percentage applicable to the
producers' rice acreage base under this
paragraph by more than one-half of the
announced acreage limitation
percentage.
[(E) Participation and production effects.--
Notwithstanding any other provision of this
paragraph, the Secretary shall, to the extent
practicable, ensure that the program provided
for in this paragraph does not have a
significant effect on program participation or
total production and shall be offered in such a
manner that the Secretary determines will
result in no additional budget outlays. The
Secretary shall provide an analysis of the
Secretary's determination to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
[(4) Administration.--
[(A) Protection from weeds and erosion.--The
regulations issued by the Secretary under
paragraph (2) with respect to acreage required
to be devoted to conservation uses shall assure
protection of the acreage from weeds and wind
and water erosion.
[(B) Annual or perennial cover.--
[(i) Required.--
[(I) In general.--Except as
provided in subclause (II) and
paragraph (2), a producer who
participates in an acreage
reduction program established
for a crop of rice under this
subsection shall be required to
plant to, or maintain as, an
annual or perennial cover 50
percent (or more at the option
of the producer) of the acreage
that is required to be removed
from the production of rice,
but not to exceed 5 percent (or
more at the option of the
producer) of the crop acreage
base established for the crop.
[(II) Arid areas.--Subclause
(I) shall not apply with
respect to arid areas
(including summer fallow
areas), as determined by the
Secretary. If the Secretary
determines any county in a
State to be arid, the
respective State committee
established under section 8(b)
of the Soil Conservation and
Domestic Allotment Act (16
U.S.C. 590h(b)) may designate
any other county or counties or
all of the State as arid for
the purposes of this paragraph.
[(III) Approval of cover
crops and practices.--The State
committee, after receiving
recommendations from the county
committees, shall approve
appropriate crops planted or
maintained as cover, including,
as appropriate, annual or
perennial native grasses and
legumes or other vegetation.
The State committee shall
establish the final seeding
date for the planting of the
cover and shall approve
appropriate cover crops or
practices, after consulting the
Soil Conservation Service State
Conservationist regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion. After the
Secretary establishes the State
technical committee for the
State pursuant to section 1261
of the Food Security Act of
1985 (16 U.S.C. 3861), the
State committee shall consult
with the technical committee
(rather than the Soil
Conservation Service State
Conservationist) regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion.
[(ii) Multiyear program.--
[(I) Cost-share assistance.--
If a producer elects to
establish a perennial cover
capable of improving water
quality or wildlife habitat on
the acreage, the Commodity
Credit Corporation shall make
available cost-share assistance
for 25 percent of the approved
cost of establishing the cover
on not more than 50 percent of
the acreage that is required to
be diverted from production,
but not to exceed 5 percent (or
more, at the option of the
producer) of the crop acreage
base established for a crop.
[(II) Agreement of
producer.--If a producer elects
to establish a perennial cover
on the acreage under this
subparagraph and receives cost-
share assistance from the
Corporation with respect to the
cover, the producer, under such
terms and conditions as may be
prescribed by the Secretary,
taking into consideration
guidelines established by the
State technical committees
established in subtitle G of
title XII of the Food Security
Act of 1985, shall agree to
maintain the perennial cover
for a minimum of 3 years.
[(iii) Conserving crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of the
acreage to be devoted to sweet sorghum,
guar, sesame, castor beans, crambe,
plantago ovato, triticale, rye, mung
beans, milkweed, or other commodity, if
the Secretary determines that the
production is needed to provide an
adequate supply of the commodities, is
not likely to increase the cost of the
price support program, and will not
affect farm income adversely.
[(C) Haying and grazing.--
[(i) In general.--Except as provided
in clause (ii), haying and grazing of
reduced acreage, acreage devoted to a
conservation use under subsection
(c)(1)(D), and acreage diverted from
production under a land diversion
program established under this section
shall be permitted, except during any
consecutive 5-month period that is
established by the State committee
established under section 8(b) of the
Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)) for a
State. The 5-month period shall be
established during the period beginning
April 1, and ending October 31, of a
year.
[(ii) Natural disasters.--In the case
of a natural disaster, the Secretary
may permit unlimited haying and grazing
on the acreage. The Secretary may not
exclude irrigated or irrigable acreage
not planted in alfalfa when exercising
the authority under this clause.
[(D) Water storage uses.--
[(i) In general.--The regulations
issued by the Secretary under paragraph
(2) with respect to acreage required to
be devoted to conservation uses shall
provide that land that has been
converted to water storage uses shall
be considered to be devoted to
conservation uses if the land was
devoted to wheat, feed grains, cotton,
rice, or oilseeds in at least 3 of the
immediately preceding 5 years. The land
shall be considered to be devoted to
conservation uses for the period that
the land remains in water storage uses,
but not to exceed 5 years subsequent to
its conversion to water storage uses.
[(ii) Limitations.--Land converted to
water storage uses for the purposes of
this subparagraph may not be devoted to
any commercial use, including
commercial fish production. The water
stored on the land may not be ground
water. The farm on which the land is
located must have been irrigated with
ground water during at least 1 of the
preceding 5 crop years.
[(5) Land diversion program.--
[(A) In general.--The Secretary may make land
diversion payments to producers of rice,
whether or not an acreage limitation program
for rice is in effect, if the Secretary
determines that the land diversion payments are
necessary to assist in adjusting the total
national acreage of rice to desirable goals.
The land diversion payments shall be made to
producers who, to the extent prescribed by the
Secretary, devote to approved conservation uses
an acreage of cropland on the farm in
accordance with land diversion contracts
entered into by the Secretary with the
producers.
[(B) Amounts.--The amounts payable to
producers under land diversion contracts may be
determined through the submission of bids for
the contracts by producers in such manner as
the Secretary may prescribe or through such
other means as the Secretary determines
appropriate. In determining the acceptability
of contract offers, the Secretary shall take
into consideration the extent of the diversion
to be undertaken by the producers and the
productivity of the acreage diverted.
[(C) Limitation on diverted acreage.--The
Secretary shall limit the total acreage to be
diverted under agreements in any county or
local community so as not to affect adversely
the economy of the county or local community.
[(6) Conservation practices.--
[(A) Wildlife food plots or habitat.--The
reduced acreage and additional diverted acreage
may be devoted to wildlife food plots or
wildlife habitat in conformity with standards
established by the Secretary in consultation
with wildlife agencies. The Secretary may pay
an appropriate share of the cost of practices
designed to carry out the purposes of this
subparagraph.
[(B) Public access.--The Secretary may
provide for an additional payment on the
acreage in an amount determined by the
Secretary to be appropriate in relation to the
benefit to the general public if the producer
agrees to permit, without other compensation,
access to all or such portion of the farm, as
the Secretary may prescribe, by the general
public, for hunting, trapping, fishing, and
hiking, subject to applicable State and Federal
regulations.
[(7) Participation agreements.--
[(A) In general.--Producers on a farm
desiring to participate in the program
conducted under this subsection shall execute
an agreement with the Secretary providing for
the participation not later than such date as
the Secretary may prescribe.
[(B) Modification or termination.--The
Secretary may, by mutual agreement with
producers on a farm, modify or terminate any
such agreement if the Secretary determines the
action necessary because of an emergency
created by drought or other disaster or to
prevent or alleviate a shortage in the supply
of agricultural commodities. The Secretary may
modify the agreement under this subparagraph
for the purpose of alleviating a shortage in
the supply of agricultural commodities only if
there has been a significant change in the
estimated stocks of the commodity since the
Secretary announced the final terms and
conditions of the program for the crop of rice.
[(f) Inventory Reduction Payments.--
[(1) In general.--The Secretary may, for each of the
1991 through 1995 crops of rice, make payments
available to producers who meet the requirements of
this subsection.
[(2) Form.--The payments may be made in the form of
marketing certificates.
[(3) Payments.--
[(A) In general.--Payments under this
subsection shall be determined in the same
manner as provided in subsection (b).
[(B) Quantity of rice made available.--The
quantity of rice to be made available to a
producer under this subsection shall be equal
in value to the payments so determined under
this subsection.
[(4) Eligibility.--A producer shall be eligible to
receive a payment under this subsection for a crop if
the producer--
[(A) agrees to forgo obtaining a loan or
purchase agreement under subsection (a);
[(B) agrees to forgo receiving payments under
subsection (c);
[(C) does not plant rice for harvest in
excess of the crop acreage base reduced by one-
half of any acreage required to be diverted
from production under subsection (e); and
[(D) otherwise complies with this section.
[(g) Equitable Relief.--
[(1) Loans and payments.--If the failure of a
producer to comply fully with the terms and conditions
of the program conducted under this section precludes
the making of loans, purchases, and payments, the
Secretary may, nevertheless, make such loans,
purchases, and payments in such amounts as the
Secretary determines are equitable in relation to the
seriousness of the failure. The Secretary may consider
whether the producer made a good faith effort to comply
fully with the terms and conditions of the program in
determining whether equitable relief is warranted under
this paragraph.
[(2) Deadlines and program requirements.--The
Secretary may authorize the county and State committees
established under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive
or modify deadlines and other program requirements in
cases in which lateness or failure to meet the other
requirements does not affect adversely the operation of
the program.
[(h) Regulations.--The Secretary may issue such regulations
as the Secretary determines necessary to carry out this
section.
[(i) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the
Commodity Credit Corporation.
[(j) Assignment of Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall apply to
payments under this section.
[(k) Sharing of Payments.--The Secretary shall provide for
the sharing of payments made under this section for any farm
among the producers on the farm on a fair and equitable basis.
[(l) Tenants and Sharecroppers.--The Secretary shall provide
adequate safeguards to protect the interests of tenants and
sharecroppers.
[(m) Cross-Compliance.--
[(1) In general.--Compliance on a farm with the terms
and conditions of any other commodity program, or
compliance with crop acreage base requirements for any
other commodity, may not be required as a condition of
eligibility for loans, purchases, or payments under
this section.
[(2) Compliance on other farms.--The Secretary may
not require producers on a farm, as a condition of
eligibility for loans, purchases, or payments under
this section for the farm, to comply with the terms and
conditions of the rice program with respect to any
other farm operated by the producers.
[(n) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1995 crops
of rice.
[Sec. 103. (a) Notwithstanding the provisions of section 101
of this Act, price support to cooperators for each crop of
upland cotton, beginning with the 1961 crop, for which
producers have not disapproved marketing quotas shall be at
such level not more than 90 per centum of the parity price
therefor nor less than the minimum level prescribed below as
the Secretary determines appropriate after consideration of the
factors specified in section 401(b) of this Act. For the 1961
crop the minimum level shall be 70 per centum of the parity
price therefor, and for each subsequent crop the minimum level
shall be 65 per centum of the parity price therefore: Provided,
That the price support for the 1964 crop shall be a national
average support price which reflects 30 cents per pound for
Middling one-inch cotton. Price support in the case of
noncooperators and in case marketing quotas are disapproved
shall be as provided in section 101(d)(3) and (5).
[(b)(1) For purposes of this subsection, extra long staple
cotton means cotton which is produced from pure strain
varieties of the Barbadense species or any hybrid thereof, or
other similar types of extra long staple cotton, designated by
the Secretary, having characteristics needed for various end
uses for which American upland cotton is not suitable and grown
in irrigated cotton-growing regions of the United States
designated by the Secretary or other areas designated by the
Secretary as suitable for the production of such varieties or
types and which is ginned on a roller-type gin or, if
authorized by the Secretary, ginned on another type gin for
experimental purposes.
[(2) The Secretary shall, upon presentation of warehouse
receipts reflecting accrued storage charges of not more than
sixty days, make available to producers nonrecourse loans for a
term of ten months from the first day of the month in which the
loan is made at a level which is not less than 85 percent of
the simple average price received by producers of extra long
staple cotton, as determined by the Secretary, during 3 years
of the 5-year period ending July 31 in the year in which the
loan level is announced, excluding the year in which the
average price was the highest and the year in which the average
price was the lowest in such period. If authorized by the
Secretary, nonrecourse loans provided for in this subsection
may, upon request of the producer during the tenth month of the
loan period for the cotton, be made available for an additional
term of eight months. The loan level for any crop of extra long
staple cotton shall be determined and announced by the
Secretary not later than December 1 of the calendar year
preceding the marketing year for which such loan is to be
effective and such level shall not thereafter be changed.
[(3)(A) In addition, payments shall be made for each crop of
extra long staple cotton to producers on each farm at a rate
equal to the amount by which the higher of--
[(i) the average market price received by farmers for
extra long staple cotton during the first eight months
of the marketing year for such crop, as determined by
the Secretary, or
[(ii) the loan level determined under paragraph (2)
of this subsection for such crop,
is less than the established price per pound times, in each
case, the farm program acreage for extra long staple cotton
(determined in accordance with paragraph (5)(A), but in no
event on a greater acreage than the acreage actually planted to
extra long staple cotton for harvest), multiplied by the farm
program payment yield for extra long staple cotton (determined
in accordance with paragraph (4)).
[(B) Except as provided in clause (ii), the established price
for each crop of extra long staple cotton shall be 120 per
centum of the loan level determined for such crop under
paragraph (2) of this subsection.
[(ii) In the case of each of the 1988 and 1989 crops of extra
long staple cotton, the established price for each such crop
shall be 118.3 percent of the loan level determined for such
crop under paragraph (2).
[(C) If the Secretary establishes an acreage limitation
program for a crop of extra long staple cotton in accordance
with paragraph (5)(A) and determines that deficiency payments
will likely be made for such crop of extra long staple cotton
under subparagraph (A) of this paragraph, the Secretary may
make available advance deficiency payments for such crop to
producers who agree to participate in the acreage limitation
program. Such advance payments shall be made available to
producers as soon as practicable after the producer files a
notice of intention to participate in such acreage limitation
program and in such amount as the Secretary determines
appropriate to encourage adequate participation in such
program, except that such amount shall not exceed an amount
determined by multiplying (i) the estimated farm program
acreage for the crop, by (ii) the farm program payment yield
for the crop, by (iii) 50 per centum of the projected payment
rate, as determined by the Secretary. In any case in which the
deficiency payment payable to a producer for a crop, as finally
determined by the Secretary under subparagraph (A) of this
paragraph, is less than the amount paid to the producer as an
advance deficiency payment under this paragraph, the producer
shall refund an amount equal to the difference between the
amount advanced and the amount finally determined by the
Secretary to be payable to the producer. If the Secretary
determines that no deficiency payments are due producers on a
crop, the producer who received advanced payments on such crop
shall refund such payments. If a producer fails to comply with
the requirements under the acreage limitation program after
obtaining an advance deficiency payment under this paragraph,
the producer shall immediately repay the amount of the advance,
plus interest thereon in such amount as the Secretary shall
prescribe.
[(4) The farm program payment yield for each crop of extra
long staple cotton shall be determined on the basis of the
actual yields per harvested acre on the farm for the preceding
three years, except that the actual yields shall be adjusted by
the Secretary for abnormal yields in any year caused by
drought, flood, or other natural disaster, or other condition
beyond the control of the producers. In case farm yield data
for one or more years are unavailable or there was no
production, the Secretary shall provide for appraisals to be
made on the basis of actual yields and program payment yields
for similar farms in the area for which data are available.
Notwithstanding the foregoing provisions of this paragraph in
the determination of yields, the Secretary shall take into
account the actual yields proved by the producer, and neither
such yields nor the farm program payment yield established on
the basis of such yields shall be reduced under other
provisions of this paragraph. If the Secretary determines it
necessary, the Secretary may establish national, State, or
county program payment yields on the basis of historical
yields, as adjusted by the Secretary to correct for abnormal
factors affecting such yields in the historical period, or, if
such data are not available, on the Secretary's estimate of
actual yields for the crop year involved. If national, State,
or county program payment yields are established, the farm
program payment yields shall balance to the national, State, or
county program payment yields.
[(5)(A)(i) Notwithstanding any other provision of this
subsection, the Secretary may establish a limitation on the
acreage planted to extra long staple cotton if the Secretary
determines that the total supply of extra long staple cotton,
in the absence of such limitation, will be excessive taking
into account the need for an adequate carryover to maintain
reasonable and stable prices and to meet a national emergency.
Such limitation shall be achieved by applying a uniform
percentage reduction (including a zero percentage reduction) to
the acreage base for each extra long staple cotton-producing
farm. Producers who knowingly produce extra long staple cotton
in excess of the permitted acreage for the farm shall be
ineligible for extra long staple cotton loans and payments with
respect to that farm. The acreage base for any farm for the
purpose of determining any reduction required to be made for
any year as a result of a limitation under this subparagraph
shall be the average acreage planted on the farm to extra long
staple cotton for harvest in the three crop years immediately
preceding the year prior to the year for which the
determination is made. For the purpose of the preceding
sentence, acreage planted to extra long staple cotton for
harvest shall include any acreage which the producers were
prevented from planting to extra long staple cotton or other
nonconserving crops in lieu of extra long staple cotton because
of drought, flood, or other natural disaster or other condition
beyond the control of the producers. The Secretary may make
adjustments to reflect established crop-rotation practices and
to reflect such other factors as the Secretary determines
should be considered in determining a fair and equitable base.
There is hereby established for the 1984, 1985, and 1986 crops
an acreage base reserve equal to 5 per centum of the total of
the farm acreage bases established for the crop under the
foregoing provisions of this subparagraph. Such reserve shall
be in addition to the total of the farm acreage bases and shall
be used by the county committees, in accordance with
regulations of the Secretary, for making adjustments of farm
acreage bases to correct inequities and prevent hardship, and
for establishing bases for farms on which no extra long staple
cotton was planted during the preceding four years. A number of
acres on the farm determined by dividing (i) the product
obtained by multiplying the number of acres required to be
withdrawn from the production of extra long staple cotton times
the number of acres actually planted to such commodity, by (ii)
the number of acres authorized to be planted to such commodity
under the limitation established by the Secretary, shall be
devoted to conservation uses, in accordance with regulations
issued by the Secretary, which will assure protection of such
acreage from weeds and wind and water erosion. The number of
acres so determined is hereafter in this subsection referred to
as ``reduced acreage''. The Secretary may permit, subject to
such terms and conditions as the Secretary may prescribe, all
or any part of the reduced acreage to be devoted to sweet
sorghum, hay and grazing, or the production of guar, sesame,
safflower, sunflower, castor beans, mustard seed, crambe,
plantago ovato, flaxseed, triticale, rye, or other commodity,
if the Secretary determines that such production is needed to
provide an adequate supply of such commodities, is not likely
to increase the cost of the price support program, and will not
affect farm income adversely. The individual farm program
acreage shall be the actual acreage planted on the farm to
extra long staple cotton for harvest within the permitted extra
long staple cotton acreage for the farm as established under
this paragraph.
[(ii) Notwithstanding any other provision of this Act, the
Secretary shall ensure, under such terms and conditions as may
be prescribed by the Secretary, that the total of the crop
acreage bases established on a farm which is enrolled in a
production adjustment program for any commodity shall not be
increased as a result of the application of the provisions set
forth in paragraph (13)(C), as extended for the 1989 and 1990
crop.
[(B) The Secretary may make land diversion payments to
producers of extra long staple cotton, whether or not an
acreage limitation program for extra long staple cotton is in
effect, if the Secretary determines that such land diversion
payments are necessary to assist in adjusting the total
national acreage of extra long staple cotton to desirable
goals. Such land diversion payments shall be made to producers
who, to the extent prescribed by the Secretary, devote to
approved conservation uses an acreage of cropland on the farm
in accordance with land diversion contracts entered into by the
Secretary with such producers. The amounts payable to producers
under land diversion contracts may be determined through the
submission of bids for such contracts by producers in such
manner as the Secretary may prescribe or through such other
means as the Secretary determines appropriate. In determining
the acceptability of contract offers, the Secretary shall take
into consideration the extent of the diversion to be undertaken
by the producers and the productivity of the acreage diverted.
The Secretary shall limit the total acreage to be diverted
under agreements in any county or local community so as not to
affect adversely the economy of the county or local community.
[(C) The reduced acreage and the diverted acreage may be
devoted to wildlife food plots or wildlife habitat in
conformity with standards established by the Secretary in
consultation with wildlife agencies. The Secretary may pay an
appropriate share of the cost of practices designed to carry
out the purpose of the foregoing sentence. The Secretary may
provide for an additional payment on such acreage in an amount
determined by the Secretary to be appropriate in relation to
the benefit to the general public if the producer agrees to
permit, without other compensation, access to all or such
portion of the farm, as the Secretary may prescribe, by the
general public, for hunting, trapping, fishing, and hiking,
subject to applicable State and Federal regulations.
[(6) An operator of a farm desiring to participate in the
program conducted under paragraph (5) shall execute an
agreement with the Secretary providing for such participation
not later than such date as the Secretary may prescribe. The
Secretary may, by mutual agreement with the producers on the
farm, terminate or modify any such agreement if the Secretary
determines such action necessary because of an emergency
created by drought or other disaster or to prevent or alleviate
a shortage in the supply of agricultural commodities.
[(7) The Secretary shall provide for the sharing of payments
made under this subsection for any farm among the producers on
the farm on a fair and equitable basis.
[(8) The Secretary shall provide adequate safeguards to
protect the interests of tenants and sharecroppers.
[(9) If the failure of a producer to comply fully with the
terms and conditions of the program formulated under this
subsection precludes the making of loans and payments, the
Secretary may, nevertheless, make such loans and payments in
such amounts as the Secretary determines to be equitable in
relation to the seriousness of the failure. The Secretary may
authorize the county and State committees established under
section 8(b) of the Soil Conservation and Domestic Allotment
Act to waive or modify deadlines and other program requirements
in cases in which lateness or failure to meet such other
requirements does not affect adversely the operation of the
program.
[(10) The Secretary may issue such regulations as the
Secretary determines necessary to carry out the provisions of
this subsection.
[(11) The Secretary shall carry out the program authorized by
this subsection through the Commodity Credit Corporation.
[(12) The provisions of subsection 8(g) of the Soil
Conservation and Domestic Allotment Act (relating to assignment
of payments) shall apply to payments made under this
subsection.
[(13)(A) Compliance on a farm with the terms and conditions
of any other commodity program or compliance with crop acreage
base requirements for any other commodity may not be required
as a condition of eligibility for loans or payments under this
section.
[(B) The Secretary may not require producers on a farm, as a
condition of eligibility for loans or payments under this
section for the farm, to comply with the terms and conditions
of the extra long staple cotton program with respect to any
other farm operated by the producers.
[(14) In order to encourage and assist producers in the
orderly ginning and marketing of their extra long staple cotton
production, the Secretary shall make recourse loans available
to such producers on seed cotton in accordance with authority
vested in the Secretary under the Commodity Credit Corporation
Charter Act.
[(15) References made in sections 402, 403, 406, 407, and 416
to the terms ``support price'', ``level of support'', and
``level of price support'' shall be considered to apply as well
to the level of loans for extra long staple cotton under this
subsection; and references to the terms ``price support'',
``price support operations'', and ``price support program'' in
such sections and in section 401(a) shall be considered as
applying as well to the loan operations for extra long staple
cotton under this subsection.
[(16) Notwithstanding any other provision of law, this
subsection shall not be applicable to the 1996 and subsequent
crops of extra long staple cotton.
[SEC. 103B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE
1991 THROUGH 1997 CROPS OF UPLAND COTTON.
[(a) Loans.--
[(1) In general.--Except as otherwise provided in
this subsection, the Secretary shall, on presentation
of warehouse receipts or other acceptable evidence of
title, as determined by the Secretary, reflecting
accrued storage charges of not more than 60 days, make
available for the 1991 through 1997 crops of upland
cotton to producers on a farm nonrecourse loans for
upland cotton produced on the farm for a term of 10
months from the first day of the month in which the
loan is made at such loan level, per pound, as will
reflect for the base quality of upland cotton, as
determined by the Secretary, at average location in the
United States a level that is not less than the smaller
of--
[(A) 85 percent of the average price
(weighted by market and month) of the base
quality of cotton as quoted in the designated
United States spot markets during 3 years of
the 5-year period ending July 31 in the year in
which the loan level is announced, excluding
the year in which the average price was the
highest and the year in which the average price
was the lowest in the period; or
[(B) 90 percent of the average, for the 15-
week period beginning July 1 of the year in
which the loan level is announced, of the 5
lowest-priced growths of the growths quoted for
Middling one and three-thirty-seconds inch
cotton C.I.F. Northern Europe (adjusted
downward by the average difference during the
period April 15 through October 15 of the year
in which the loan is announced between the
average Northern European price quotation of
such quality of cotton and the market
quotations in the designated United States spot
markets for the base quality of upland cotton),
as determined by the Secretary.
[(2) Adjustments to loan level.--
[(A) Limitation on decrease in loan level.--
The loan level for any crop determined under
paragraph (1) may not be reduced by more than 5
percent from the level determined for the
preceding crop, and may not be reduced below 50
cents per pound.
[(B) Limitation on increase in loan level.--
If for any crop the average Northern European
price determined under paragraph (1)(B) is less
than the average United States spot market
price determined under paragraph (1)(A), the
Secretary may increase the loan level to such
level as the Secretary may consider
appropriate, not in excess of the average
United States spot market price determined
under paragraph (1)(A).
[(3) Announcement of loan level.--The loan level for
any crop of upland cotton shall be determined and
announced by the Secretary not later than November 1 of
the calendar year preceding the marketing year for
which the loan is to be effective or, in the case of
the 1991 crop, as soon as is practicable after November
28, 1990. The loan level shall not thereafter be
changed.
[(4) Extension of loan period.--
[(A) In general.--Except as provided in
subparagraph (B), nonrecourse loans provided
for in this section shall, on request of the
producer during the 10th month of the loan
period for the cotton, be made available for an
additional term of 8 months.
[(B) Limitation.--A request to extend the
loan period shall not be approved in any month
in which the average price of the base quality
of upland cotton, as determined by the
Secretary, in the designated spot markets for
the preceding month exceeded 130 percent of the
average price of such base quality of cotton in
the designated United States spot markets for
the preceding 36-month period.
[(5) Marketing loan provisions.--
[(A) In general.--If the Secretary determines
that the prevailing world market price for
upland cotton (adjusted to United States
quality and location) is below the loan level
determined under the foregoing provisions of
this subsection, in order to make United States
upland cotton competitive in world markets, the
Secretary shall permit a producer to repay a
loan made for any crop at--
[(i) a level that is the lesser of--
[(I) the loan level
determined for the crop; or
[(II) the higher of--
[(aa) the loan level
determined for the crop
multiplied by 70
percent; or
[(bb) the prevailing
world market price for
upland cotton (adjusted
to United States
quality and location),
as determined by the
Secretary; or
[(ii) such other level (not in excess
of the loan level determined for the
crop nor less than 70 percent of such
loan level) that the Secretary
determines will--
[(I) minimize potential loan
forfeitures;
[(II) minimize the
accumulation of cotton stocks
by the Federal Government;
[(III) minimize the cost
incurred by the Federal
Government in storing cotton;
and
[(IV) allow cotton produced
in the United States to be
marketed freely and
competitively, both
domestically and
internationally.
[(B) First handler marketing certificates.--
[(i) In general.--During the period
beginning August 1, 1991, and ending
July 31, 1998, if a program carried out
under subparagraph (A) or subsection
(b) fails to make United States upland
cotton fully competitive in world
markets and the prevailing world market
price of upland cotton (adjusted to
United States quality and location), as
determined by the Secretary, is below
the current loan repayment rate for
upland cotton determined under
subparagraph (A), to make United States
upland cotton competitive in world
markets and to maintain and expand
domestic consumption and exports of
upland cotton produced in the United
States, the Secretary shall provide for
the issuance of marketing certificates
or cash payments in accordance with
this subparagraph.
[(ii) Payments.--The Commodity Credit
Corporation, under such regulations as
the Secretary may prescribe, shall make
payments, through the issuance of
marketing certificates or cash
payments, to first handlers of cotton
(persons regularly engaged in buying or
selling upland cotton) who have entered
into an agreement with the Commodity
Credit Corporation to participate in
the program established under this
subparagraph. The payments shall be
made in such monetary amounts and
subject to such terms and conditions as
the Secretary determines will make
upland cotton produced in the United
States available at competitive prices,
consistent with the purposes of this
subparagraph.
[(iii) Value.--The value of each
certificate or cash payment issued
under clause (ii) shall be based on the
difference between--
[(I) the loan repayment rate
for upland cotton; and
[(II) the prevailing world
market price of upland cotton
(adjusted to United States
quality and location), as
determined by the Secretary.
[(iv) Redemption, marketing, or
exchange.--The Commodity Credit
Corporation, under regulations
prescribed by the Secretary, may assist
any person receiving marketing
certificates under this subparagraph in
the redemption of certificates for
cash, or marketing or exchange of the
certificates for agricultural
commodities or products owned by the
Commodity Credit Corporation, at such
times, in such manner, and at such
price levels as the Secretary
determines will best effectuate the
purposes of the program established
under this subparagraph. Any price
restrictions that may otherwise apply
to the disposition of agricultural
commodities by the Commodity Credit
Corporation shall not apply to the
redemption of certificates under this
subparagraph.
[(v) Designation of commodities and
products; charges.--Insofar as
practicable, the Secretary shall permit
owners of certificates to designate the
commodities and the products thereof,
including storage sites thereof, the
owners would prefer to receive in
exchange for certificates. If any
certificate is not presented for
redemption, marketing, or exchange
within a reasonable number of days
after the issuance of the certificate
(as determined by the Secretary),
reasonable costs of storage and other
carrying charges, as determined by the
Secretary, shall be deducted from the
value of the certificate for the period
beginning after the reasonable number
of days and ending with the date of the
presentation of the certificate to the
Commodity Credit Corporation.
[(vi) Displacement.--The Secretary
shall take such measures as may be
necessary to prevent the marketing or
exchange of agricultural commodities
and products for certificates under
this subsection from adversely
affecting the income of producers of
the commodities or products.
[(vii) Transfers.--Under regulations
prescribed by the Secretary,
certificates issued to cotton handlers
under this subparagraph may be
transferred to other handlers and
persons approved by the Secretary.
[(C) Prevailing world market price.--
[(i) In general.--The Secretary shall
prescribe by regulation--
[(I) a formula to define the
prevailing world market price
for upland cotton (adjusted to
United States quality and
location); and
[(II) a mechanism by which
the Secretary shall announce
periodically the prevailing
world market price for upland
cotton (adjusted to United
States quality and location).
[(ii) Use.--The prevailing world
market price for upland cotton
(adjusted to United States quality and
location) established under this
subparagraph shall be used under
subparagraphs (A), (B), and (E).
[(D) Adjustment of prevailing world market
price.--
[(i) In general.--During the period
beginning August 1, 1991, and ending
July 31, 1998, the prevailing world
market price for upland cotton
(adjusted to United States quality and
location) established under
subparagraph (C) shall be further
adjusted if--
[(I) the adjusted prevailing
world market price is less than
115 percent of the current crop
year loan level for the base
quality of upland cotton, as
determined by the Secretary;
and
[(II) the Friday through
Thursday average price
quotation for the lowest-priced
United States growth as quoted
for Middling (M) one and three-
thirty seconds inch cotton
delivered C.I.F. Northern
Europe is greater than the
Friday through Thursday average
price of the five lowest-priced
growths of upland cotton, as
quoted for Middling (M) one and
three-thirty seconds inch
cotton, delivered C.I.F.
Northern Europe (hereafter in
this subsection referred to as
the ``Northern Europe price'').
[(ii) Further adjustment.--Except as
provided in clause (iii), the adjusted
prevailing world market price shall be
further adjusted on the basis of some
or all of the following data, as
available:
[(I) The United States share
of world exports.
[(II) The current level of
cotton export sales and cotton
export shipments.
[(III) Other data determined
by the Secretary to be relevant
in establishing an accurate
prevailing world market price
for upland cotton (adjusted to
United States quality and
location).
[(iii) Limitation on further
adjustment.--The adjustment under
clause (ii) may not exceed the
difference between--
[(I) the Friday through
Thursday average price for the
lowest-priced United States
growth as quoted for Middling
one and three-thirty seconds
inch cotton delivered C.I.F.
Northern Europe; and
[(II) the Northern Europe
price.
[(E) Cotton user marketing certificates.--
[(i) Issuance.--Subject to clause
(iv), during the period beginning
August 1, 1991, and ending July 31,
1998, the Secretary shall issue
marketing certificates or cash payments
to domestic users and exporters for
documented purchases by domestic users
and sales for export by exporters made
in the week following a consecutive 4-
week period in which--
[(I) the Friday through
Thursday average price
quotation for the lowest-priced
United States growth, as quoted
for Middling (M) one and three-
thirty seconds inch cotton,
delivered C.I.F. Northern
Europe exceeds the Northern
Europe price by more than 1.25
cents per pound; and
[(II) the prevailing world
market price for upland cotton
(adjusted to United States
quality and location),
established under subparagraph
(C), does not exceed 130
percent of the current crop
year loan level for the base
quality of upland cotton, as
determined by the Secretary.
[(ii) Value.--The value of the
marketing certificates or cash payments
shall be based on the amount of the
difference (reduced by 1.25 cents per
pound) in such prices during the 4th
week of the consecutive 4-week period
multiplied by the quantity of upland
cotton included in the documented
sales.
[(iii) Administration.--Clauses (iv)
through (vii) of subparagraph (B) shall
apply to marketing certificates issued
under this subparagraph. Any such
certificates may be transferred to
other persons in accordance with
regulations issued by the Secretary.
[(iv) Exception.--The Secretary shall
not issue marketing certificates or
cash payments under clause (i) if, for
the immediately preceding consecutive
10-week period, the Friday through
Thursday average price quotation for
the lowest priced United States growth,
as quoted for Middling (M) one and
three-thirty seconds inch cotton,
delivered C.I.F. Northern Europe,
adjusted for the value of any
certificate issued under this
subparagraph, exceeds the Northern
Europe price by more than 1.25 cents
per pound.
[(F) Special import quota.--
[(i) Establishment.--The President
shall, within 180 days after the date
of enactment of the Uruguay Round
Agreements Act, establish an import
quota program which shall provide that,
during the period beginning August 1991
and ending July 31, 1998, whenever the
Secretary determines and announces that
for any consecutive 10-week period, the
Friday through Thursday average price
quotation for the lowest-priced United
States growth, as quoted for Middling
(M) one and three-thirty seconds inch
cotton, delivered C.I.F. Northern
Europe, adjusted for the value of any
certificates issued under subparagraph
(E), exceeds the Northern Europe price
by more than 1.25 cents per pound,
there shall immediately be in effect a
special import quota.
[(ii) Quantity.--The quota shall be
equal to 1 week's consumption of upland
cotton by domestic mills at the
seasonally adjusted average rate of the
most recent 3 months for which data are
available.
[(iii) Application.--The quota shall
apply to upland cotton purchased not
later than 90 days after the date of
the Secretary's announcement under
clause (i) and entered into the United
States not later than 180 days after
such date.
[(iv) Overlap.--A special quota
period may be established that overlaps
any existing quota period if required
by clause (i), except that a special
quota period may not be established
under this paragraph if a quota period
has been established under subsection
(n).
[(v) Preferential tariff treatment.--
The quantity under a special import
quota shall be considered to be an in-
quota quantity for purposes of section
213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d)),
section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203),
section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)), and General Note
3(a)(iv) to the HTS.
[(vi) Definition.--As used in this
subparagraph, the term ``special import
quota'' means a quantity of imports
that is not subject to the over-quota
tariff rate of a tariff-rate quota.
[(6) Recourse loans for seed cotton.--In order to
encourage and assist producers in the orderly ginning
and marketing of their production of upland cotton, the
Secretary shall make recourse loans available to such
producers on seed cotton in accordance with authority
vested in the Secretary under the Commodity Credit
Corporation Charter Act (15 U.S.C. 714 et seq.).
[(b) Loan Deficiency Payments.--
[(1) In general.--The Secretary shall, for each of
the 1991 through 1997 crops of upland cotton, make
payments (hereafter in this section referred to as
``loan deficiency payments'') available to producers
who, although eligible to obtain a loan under
subsection (a), agree to forgo obtaining the loan in
return for payments under this subsection.
[(2) Computation.--A payment under this subsection
shall be computed by multiplying--
[(A) the loan payment rate; by
[(B) the quantity of upland cotton the
producer is eligible to place under loan but
for which the producer forgoes obtaining the
loan in return for payments under this
subsection.
[(3) Loan payment rate.--For purposes of this
subsection, the loan payment rate shall be the amount
by which--
[(A) the loan level determined for the crop
under subsection (a); exceeds
[(B) the level at which a loan may be repaid
under subsection (a).
[(4) Marketing certificates.--The Secretary may make
up to one-half the amount of a payment under this
subsection available in the form of marketing
certificates, subject to the terms and conditions
provided in subsection (a)(5)(B).
[(c) Payments.--
[(1) Deficiency payments.--
[(A) In general.--The Secretary shall make
available to producers payments (hereafter in
this section referred to as ``deficiency
payments'') for each of the 1991 through 1997
crops of upland cotton in an amount computed by
multiplying--
[(i) the payment rate; by
[(ii) the payment acres for the crop;
by
[(iii) the farm program payment yield
established for the crop for the farm.
[(B) Payment rate.--
[(i) In general.--The payment rate
for upland cotton shall be the amount
by which the established price for the
crop of upland cotton exceeds the
higher of--
[(I) the national average
market price received by
producers during the calendar
year that includes the first 5
months of the marketing year
for the crop, as determined by
the Secretary; or
[(II) the loan level
determined for the crop.
[(ii) Minimum established price.--The
established price for upland cotton
shall not be less than $0.729 per pound
for each of the 1991 through 1997
crops.
[(C) Payment acres.--Payment acres for a crop
shall be the lesser of--
[(i) the number of acres planted to
the crop for harvest within the
permitted acreage; or
[(ii) 85 percent of the crop acreage
base for the crop for the farm less the
quantity of reduced acreage (as
determined under subsection (e)(2)(D)).
[(D) 50/85 program.--
[(i) In general.--If an acreage
limitation program under subsection
(e)(2) is in effect for a crop of
upland cotton and the producers on a
farm devote a portion of the maximum
payment acres for upland cotton as
calculated under subparagraph (C)(ii)
of the farm equal to more than 8
percent for each of the 1991 through
1993 crops, and 15 percent for each of
the 1994 through 1997 crops (except as
provided in clause (v)(II)), of such
upland cotton acreage of the farm for
the crop to conservation uses (except
as provided in subparagraph (E))--
[(I) such portion of the
maximum payment acres in excess
of 8 percent for each of the
1991 through 1993 crops, and 15
percent for each of the 1994
through 1997 crops (except as
provided in clause (v)(II)), of
such acreage devoted to
conservation uses (except as
provided in subparagraph (E))
shall be considered to be
planted to upland cotton for
the purpose of determining the
acreage on the farm required to
be devoted to conservation uses
in accordance with subsection
(e)(2)(D); and
[(II) the producers shall be
eligible for payments under
this paragraph with respect to
such acreage, subject to the
compliance of the producers
with clause (ii).
[(ii) Minimum planting requirement.--
To be eligible for payments under
clause (i), except as provided in
clauses (iv) and (v), the producers on
a farm must actually plant upland
cotton for harvest on at least 50
percent of the maximum payment acres
for cotton for the farm.
[(iii) Deficiency payments.--
Notwithstanding any other provision of
this section, any producer who devotes
a portion of the maximum payment acres
for upland cotton for the farm to
conservation uses (or other uses as
provided in subparagraph (E)) under
this subparagraph shall receive
deficiency payments on the acreage that
is considered to be planted to upland
cotton and eligible for payments under
this subparagraph for the crop at a
per-pound rate established by the
Secretary, except that the rate may not
be established at less than the
projected deficiency payment rate for
the crop, as determined by the
Secretary. Such projected payment rate
for the crop shall be announced by the
Secretary prior to the period during
which upland cotton producers may agree
to participate in the program for the
crop.
[(iv) Quarantines.--If a State or
local agency has imposed in an area of
a State or county a quarantine on the
planting of upland cotton for harvest
on farms in the area, the State
committee established under section
8(b) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C.
590h(b)) may recommend to the Secretary
that payments be made under this
paragraph, without regard to the
requirement imposed under clause (ii),
to producers in the area who were
required to forgo the planting of
upland cotton for harvest on acreage to
alleviate or eliminate the condition
requiring the quarantine. If the
Secretary determines that the condition
exists, the Secretary may make payments
under this paragraph to the producers.
To be eligible for payments under this
clause, the producers must devote the
acreage to conservation uses (except as
provided in subparagraph (E)).
[(v) Prevented planting and reduced
yields.--
[(I) 1991 through 1993
crops.--In the case of each of
the 1991 through 1993 crops of
upland cotton, if an acreage
limitation program under
subsection (e) is in effect for
any crop of upland cotton and
if the Secretary determines
that producers on a farm are
prevented from planting the
acreage intended for upland
cotton to upland cotton because
of drought, flood, or other
natural disaster, or other
condition beyond the control of
the producers, the Secretary
shall make available to such
producers payments under this
subparagraph without regard to
the requirement imposed under
clause (ii). To be eligible for
payments under this clause, the
producers must devote the
acreage to conservation uses
(except as provided in
subparagraph (E)). Any such
acreage shall be considered to
be planted to upland cotton.
[(II) 1994 through 1997
crops.--In the case of each of
the 1994 through 1997 crops of
upland cotton, producers on a
farm shall be eligible to
receive deficiency payments as
provided in clause (iii)
without regard to clause (ii)
if an acreage limitation
program under subsection (e) is
in effect for the crop and--
[(aa) the producers
have been determined by
the Secretary (in
accordance with section
503(c)) to be prevented
from planting the crop
or have incurred a
reduced yield for the
crop (due to a natural
disaster) and the
producers elect to
devote a portion of the
maximum payment acres
for upland cotton (as
calculated under
subparagraph (C)(ii))
equal to more than 8
percent of the upland
cotton acreage, to
conservation uses; or
[(bb) the producers
elect to devote a
portion of the maximum
payment acres for
upland cotton (as
calculated under
subparagraph (C)(ii))
equal to more than 8
percent of the upland
cotton acreage, to
alternative crops as
provided in
subparagraph (E).
[(vi) Crop acreage and payment
yield.--The upland cotton crop acreage
base and upland cotton farm program
payment yield of the farm shall not be
reduced due to the fact that a portion
of the permitted cotton acreage of the
farm was devoted to conserving uses
(except as provided in subparagraph
(E)) under this subparagraph.
[(vii) Limitation.--Other than as
provided in clauses (i) through (vi),
payments may not be made under this
paragraph for any crop on a greater
acreage than the acreage actually
planted to upland cotton.
[(viii) Conservation use acreage
under other programs.--Any acreage
considered to be planted to upland
cotton in accordance with clauses (i)
and (vi) may not also be designated as
conservation use acreage for the
purpose of fulfilling any provisions
under any acreage limitation or land
diversion program requiring that the
producers devote a specified acreage to
conservation uses.
[(ix) Black-eyed peas for donation.--
The Secretary may permit, under such
terms and conditions as will ensure
optimum producer participation, all or
any part of the acreage required to be
devoted to conservation uses as a
condition for qualifying for payments
under this subparagraph to be devoted
to the production of black-eyed peas
if--
[(I) the producer agrees to
donate the harvested peas from
the acreage to a food bank,
food pantry, or soup kitchen
(as defined in paragraphs (3),
(4), and (7) of section 110(b)
of the Hunger Prevention Act of
1988 (7 U.S.C. 612c note)) that
is approved by the Secretary;
and
[(II) the Secretary finds
that such action will not
result in the disruption of
normal channels of trade.
[(E) Alternative crops.--
[(i) Industrial and other crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of
acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (D) to be devoted to
sweet sorghum, guar, castor beans,
plantago ovato, triticale, rye, millet,
mung beans, commodities for which no
substantial domestic production or
market exists but that could yield
industrial raw material being imported,
or likely to be imported, into the
United States, or commodities grown for
experimental purposes (including kenaf
and milkweed), subject to the following
sentence. The Secretary may permit the
acreage to be devoted to the production
only if the Secretary determines that--
[(I) the production is not
likely to increase the cost of
the price support program; and
[(II) the production is
needed to provide an adequate
supply of the commodity, or, in
the case of commodities for
which no substantial domestic
production or market exists but
that could yield industrial raw
materials, the production is
needed to encourage domestic
manufacture of the raw material
and could lead to increased
industrial use of the raw
material to the long-term
benefit of United States
industry.
[(ii) Sesame and crambe.--The
Secretary shall permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of
acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (D) to be devoted to
sesame and crambe. In implementing this
clause, if the Secretary determines
that sesame or crambe are considered
oilseeds under section 205, the
Secretary shall provide that, in order
to receive payments under subparagraph
(D), the producers shall agree to forgo
eligibility to receive a loan under
section 205 for the crop of sesame or
crambe produced on the farm.
[(2) Crop insurance requirement.--A producer shall
obtain catastrophic risk protection insurance coverage
in accordance with section 427.
[(d) Payment Yields.--The farm program payment yields for
farms for each crop of upland cotton shall be determined under
title V.
[(e) Acreage Reduction Programs.--
[(1) In general.--
[(A) Establishment.--Notwithstanding any
other provision of this Act, if the Secretary
determines that the total supply of upland
cotton, in the absence of an acreage limitation
program, will be excessive taking into account
the need for an adequate carry-over to maintain
reasonable and stable supplies and prices and
to meet a national emergency, the Secretary may
provide for any crop of upland cotton an
acreage limitation program as described in
paragraph (2).
[(B) Agricultural resources conservation
program.--In making a determination under
subparagraph (A), the Secretary shall take into
consideration the number of acres placed in the
agricultural resources conservation program
established under subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831
et seq.).
[(C) Announcements.--
[(i) Preliminary announcement.--If
the Secretary elects to implement an
acreage limitation program for any crop
year, the Secretary shall make a
preliminary announcement of any such
program not later than November 1 of
the calendar year preceding the year in
which the crop is harvested, except
that in the case of the 1991 crop, the
Secretary shall announce the program as
soon as practicable after the date of
enactment of this section. The
announcement shall include, among other
information determined necessary by the
Secretary, an announcement of the
uniform percentage reduction in the
upland cotton crop acreage base
described in paragraph (2)(A).
[(ii) Final announcement.--Not later
than January 1 of the calendar year in
which the crop is harvested, the
Secretary shall make a final
announcement of the program. The
announcement shall include, among other
information determined necessary by the
Secretary, an announcement of the
uniform percentage reduction in the
upland cotton crop described in
paragraph (2)(A).
[(iii) Optional programs in early
planting areas.--The Secretary shall
allow producers in early planting areas
to elect to participate in the program
on the terms of the acreage limitation
program--
[(I) first announced for the
crop under clause (i); or
[(II) as subsequently revised
under clause (ii),
if the Secretary determines that the
producers may be unfairly disadvantaged
by the revision.
[(D) Desired carry-over.--The Secretary shall
carry out an acreage limitation program
described in paragraph (2) for a crop of upland
cotton in a manner that will result in a ratio
of carry-over to total disappearance of 30
percent for each of the 1991 through 1994
crops, 29\1/2\ percent for each of the 1995 and
1996 crops, and 29 percent for the 1997 crop,
based on the Secretary's most recent projection
of carry-over and total disappearance at the
time of announcement of the acreage limitation
program. For the purpose of this subparagraph,
the term ``total disappearance'' means all
upland cotton utilization, including total
domestic, total export, and total residual
disappearance.
[(2) Acreage limitation program.--
[(A) Uniform percentage reduction.--Except as
provided in paragraph (3), if an upland cotton
acreage limitation program is announced under
paragraph (1), the limitation shall be achieved
by applying a uniform percentage reduction
(from 0 to 25 percent) to the upland cotton
crop acreage base for the crop for each upland
cotton-producing farm.
[(B) Compliance.--Except as provided in
section 504, producers who knowingly produce
upland cotton in excess of the permitted upland
cotton acreage for the farm, as established in
accordance with subparagraph (A), shall be
ineligible for upland cotton loans and payments
with respect to that farm.
[(C) Crop acreage bases.--Upland cotton crop
acreage bases for each crop of upland cotton
shall be determined under title V.
[(D) Acreage devoted to conservation uses.--A
number of acres on the farm shall be devoted to
conservation uses, in accordance with
regulations issued by the Secretary. Such
number shall be determined by multiplying the
upland cotton crop acreage base by the
percentage reduction required by the Secretary.
The number of acres so determined is hereafter
in this subsection referred to as ``reduced
acreage''. The remaining acreage is hereafter
in this subsection referred to as ``permitted
acreage''. Permitted acreage may be adjusted by
the Secretary as provided in paragraph (3) and
in section 504.
[(E) Individual farm program acreage.--Except
as otherwise provided in subsection (c), the
individual farm program acreage shall be the
acreage planted on the farm to upland cotton
for harvest within the permitted upland cotton
acreage for the farm as established under this
paragraph.
[(F) Planting designated crops on reduced
acreage.--
[(i) Definition of designated crop.--
As used in this subparagraph, the term
``designated crop'' means a crop
defined in section 504(b)(1), excluding
any program crop as defined in section
502(3).
[(ii) In general.--Subject to clause
(iii), the Secretary may permit
producers on a farm to plant a
designated crop on no more than one-
half of the reduced acreage on the
farm.
[(iii) Limitations.--If the producers
on a farm elect to plant a designated
crop on reduced acreage under this
subparagraph--
[(I) the amount of the
deficiency payment that the
producers are otherwise
eligible to receive under
subsection (c) shall be
reduced, for each acre (or
portion thereof) that is
planted to the designated crop,
by an amount equal to the
deficiency payment that would
be made with respect to a
number of acres of the crop
that the Secretary considers
appropriate, except that if the
producers on the farm are
participating in a program
established for more than one
program crop, the amount of the
reduction shall be determined
by prorating the reduction
based on the acreage planted or
considered planted on the farm
to all of such program crops;
and
[(II) the Secretary shall
ensure that reductions in
deficiency payments under
subclause (I) are sufficient to
ensure that this subparagraph
will result in no additional
cost to the Commodity Credit
Corporation.
[(G) Black-eyed peas for donation.--The
Secretary may permit, under such terms and
conditions as will ensure optimum producer
participation, producers on a farm to plant
black-eyed peas on not more than one-half of
the reduced acreage on the farm if--
[(i) the producer agrees to donate
the harvested peas from such acreage to
a food bank, food pantry, or soup
kitchen (as defined in paragraphs (3),
(4), and (7) of section 110(b) of the
Hunger Prevention Act of 1988 (7 U.S.C.
612c note)) that is approved by the
Secretary; and
[(ii) the Secretary finds that such
action will not result in the
disruption of normal channels of trade.
[(3) Targeted option payments.--
[(A) In general.--Notwithstanding any other
provision of this section, if the Secretary
implements an acreage limitation program with
respect to any of the 1991 through 1995 crops
of upland cotton, the Secretary may make
available to producers on a farm who do not
receive payments under subsection (c)(1)(D) for
such crop on the farm, adjustments in the level
of deficiency payments that would otherwise be
made available to the producers if the
producers exercise the payment options provided
in this paragraph.
[(B) Payment options.--If the Secretary
elects to carry out this paragraph, the
Secretary shall make the payment options
specified in subparagraphs (C) and (D)
available to producers who agree to make
adjustments in the quantity of acreage diverted
from the production of upland cotton under an
acreage limitation program in accordance with
this paragraph.
[(C) Increased acreage limitation option.--
[(i) Increase in established price.--
If the Secretary elects to carry out
this paragraph, a producer shall be
eligible to receive an increase in the
established price for upland cotton
under clause (ii) if the producer
agrees to an increase in the acreage
limitation percentage to be applied to
the producers' upland cotton acreage
base above the acreage limitation
percentage announced by the Secretary.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who participate in the
program under this paragraph, the
Secretary shall increase the
established price for upland cotton by
an amount determined by the Secretary,
but not less than 0.5 percent, nor more
than 1 percent, for each 1 percentage
point increase in the acreage
limitation percentage applied to the
producers' upland cotton acreage base.
[(iii) Limitation.--The acreage
limitation percentage to be applied to
the producers' upland cotton acreage
base shall not be increased by more
than 10 percentage points above the
acreage limitation percentage announced
by the Secretary for the crop or above
25 percent total for the crop.
[(iv) Adjustment for
underplantings.--In determining the
increased acreage limitation percentage
that is applied to the producer's
upland cotton base under this
paragraph, the Secretary shall exclude
an amount of acreage equal to the
average difference between the
producer's permitted upland cotton
acreage and the acreage actually
planted (including acreage devoted to
conserving uses under subsection
(c)(1)(D)) to upland cotton for harvest
during the previous 2 years.
[(D) Decreased acreage limitation option.--
[(i) Decrease in acreage limitation
requirement.--If the Secretary elects
to carry out this paragraph, a producer
shall be eligible to decrease the
acreage limitation percentage
applicable to the producers' upland
cotton acreage base (as announced by
the Secretary) if the producer agrees
to a decrease in the established price
for upland cotton under clause (ii) for
the purpose of calculating deficiency
payments to be made available to the
producer.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who choose the option set
forth in this subparagraph, the
Secretary shall decrease the
established price for upland cotton by
an amount to be determined by the
Secretary, but not less than 0.5
percent, nor more than 1 percent, for
each 1 percentage point decrease in the
acreage limitation percentage applied
to the producers' upland cotton acreage
base.
[(iii) Limitation.--A producer may
not choose to decrease the acreage
limitation percentage applicable to the
producers' upland cotton acreage base
under this paragraph by more than one-
half of the announced acreage
limitation percentage.
[(E) Participation and production effects.--
Notwithstanding any other provision of this
paragraph, the Secretary shall, to the extent
practicable, ensure that the program provided
for in this paragraph does not have a
significant effect on program participation or
total production and shall be offered in such a
manner that the Secretary determines will
result in no additional budget outlays. The
Secretary shall provide an analysis of the
Secretary's determination to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
[(4) Administration.--
[(A) Protection from weeds and erosion.--The
regulations issued by the Secretary under
paragraph (2) with respect to acreage required
to be devoted to conservation uses shall assure
protection of the acreage from weeds and wind
and water erosion.
[(B) Annual or perennial cover.--
[(i) Required.--
[(I) In general.--Except as
provided in subclause (II) and
paragraph (2), a producer who
participates in an acreage
reduction program established
for a crop of upland cotton
under this subsection shall be
required to plant to, or
maintain as, an annual or
perennial cover 50 percent (or
more at the option of the
producer) of the acreage that
is required to be removed from
the production of upland
cotton, but not to exceed 5
percent (or more at the option
of the producer) of the crop
acreage base established for
the crop.
[(II) Arid areas.--Subclause
(I) shall not apply with
respect to arid areas
(including summer fallow
areas), as determined by the
Secretary. If the Secretary
determines any county in a
State to be arid, the
respective State committee
established under section 8(b)
of the Soil Conservation and
Domestic Allotment Act (16
U.S.C. 590h(b)) may designate
any other county or counties or
all of the State as arid for
the purposes of this paragraph.
[(III) Approval of cover
crops and practices.--The State
committee, after receiving
recommendations from the county
committees, shall approve
appropriate crops planted or
maintained as cover, including,
as appropriate, annual or
perennial native grasses and
legumes or other vegetation.
The State committee shall
establish the final seeding
date for the planting of the
cover and shall approve
appropriate cover crops or
practices, after consulting the
Soil Conservation Service State
Conservationist regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion. After the
Secretary establishes the State
technical committee for the
State pursuant to section 1261
of the Food Security Act of
1985 (16 U.S.C. 3861), the
State committee shall consult
with the technical committee
(rather than the Soil
Conservation Service State
Conservationist) regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion.
[(ii) Multiyear program.--
[(I) Cost-share assistance.--
If a producer elects to
establish a perennial cover
capable of improving water
quality or wildlife habitat on
the acreage, the Commodity
Credit Corporation shall make
available cost-share assistance
for 25 percent of the approved
cost of establishing the cover
on not more than 50 percent of
the acreage that is required to
be diverted from production,
but not to exceed 5 percent (or
more, at the option of the
producer) of the crop acreage
base established for a crop.
[(II) Agreement of
producer.--If a producer elects
to establish a perennial cover
on the acreage under this
subparagraph and receives cost-
share assistance from the
Corporation with respect to the
cover, the producer, under such
terms and conditions as may be
prescribed by the Secretary,
taking into consideration
guidelines established by the
State technical committees
established in subtitle G of
title XII of the Food Security
Act of 1985, shall agree to
maintain the perennial cover
for a minimum of 3 years.
[(iii) Conserving crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of the
acreage to be devoted to sweet sorghum,
guar, sesame, castor beans, crambe,
plantago ovato, triticale, rye, mung
beans, milkweed, or other commodity, if
the Secretary determines that the
production is needed to provide an
adequate supply of the commodities, is
not likely to increase the cost of the
price support program, and will not
affect farm income adversely.
[(C) Haying and grazing.--
[(i) In general.--Except as provided
in clause (ii), haying and grazing of
reduced acreage, acreage devoted to a
conservation use under subsection
(c)(1)(D), and acreage diverted from
production under a land diversion
program established under this section
shall be permitted, except during any
consecutive 5-month period that is
established by the State committee
established under section 8(b) of the
Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)) for a
State. The 5-month period shall be
established during the period beginning
April 1, and ending October 31, of a
year.
[(ii) Natural disasters.--In the case
of a natural disaster, the Secretary
may permit unlimited haying and grazing
on the acreage. The Secretary may not
exclude irrigated or irrigable acreage
not planted in alfalfa when exercising
the authority under this clause.
[(D) Water storage uses.--
[(i) In general.--The regulations
issued by the Secretary under paragraph
(2) with respect to acreage required to
be devoted to conservation uses shall
provide that land that has been
converted to water storage uses shall
be considered to be devoted to
conservation uses if the land was
devoted to wheat, feed grains, cotton,
rice, or oilseeds in at least 3 of the
immediately preceding 5 years. The land
shall be considered to be devoted to
conservation uses for the period that
the land remains in water storage uses,
but not to exceed 5 years subsequent to
its conversion to water storage uses.
[(ii) Limitations.--Land converted to
water storage uses for the purposes of
this subparagraph may not be devoted to
any commercial use, including
commercial fish production. The water
stored on the land may not be ground
water. The farm on which the land is
located must have been irrigated with
ground water during at least 1 of the
preceding 5 crop years.
[(5) Land diversion program.--
[(A) Payments.--
[(i) In general.--The Secretary may
make land diversion payments to
producers of upland cotton, whether or
not an acreage limitation program for
upland cotton is in effect, if the
Secretary determines that the land
diversion payments are necessary to
assist in adjusting the total national
acreage of upland cotton to desirable
goals. The land diversion payments
shall be made to producers who, to the
extent prescribed by the Secretary,
devote to approved conservation uses an
acreage of cropland on the farm in
accordance with land diversion
contracts entered into by the Secretary
with the producers.
[(ii) Excess carry-over.--If, at the
time of final announcement of the
acreage limitation program established
under this subsection, the projected
carry-over of upland cotton for the
crop year is equal to or greater than 8
million bales, the Secretary shall
offer a paid land diversion program to
producers of upland cotton. Payments to
producers under such a program shall be
determined by multiplying--
[(I) the payment rate, of not
less than 35 cents per pound of
cotton, established by the
Secretary; by
[(II) the program payment
yield established for the crop
for the farm; by
[(III) the number of
permitted upland cotton acres
diverted on the farm.
[(B) Bids for contracts.--The amounts payable
to producers under land diversion contracts may
be determined through the submission of bids
for the contracts by producers in such manner
as the Secretary may prescribe or through such
other means as the Secretary determines
appropriate. In determining the acceptability
of contract offers, the Secretary shall take
into consideration the extent of the diversion
to be undertaken by the producers and the
productivity of the acreage diverted.
[(C) Limitations on diverted acreage.--
[(i) Maximum acreage per farm,
county, or community.--The Secretary
shall limit the total acreage to be
diverted under this paragraph--
[(I) to not more than 15
percent of the upland cotton
crop acreage base for a farm;
and
[(II) under agreements in any
county or local community so as
not to affect adversely the
economy of the county or local
community.
[(ii) Lower participation levels.--
The Secretary may allow producers to
participate in a land diversion program
under this paragraph at a level lower
than the maximum level announced by the
Secretary, at the option of the
producer, if the Secretary determines
that it will increase participation in
the program.
[(6) Conservation practices.--
[(A) Wildlife food plots or habitat.--The
reduced acreage and additional diverted acreage
may be devoted to wildlife food plots or
wildlife habitat in conformity with standards
established by the Secretary in consultation
with wildlife agencies. The Secretary may pay
an appropriate share of the cost of practices
designed to carry out the purposes of this
subparagraph.
[(B) Public access.--The Secretary may
provide for an additional payment on the
acreage in an amount determined by the
Secretary to be appropriate in relation to the
benefit to the general public if the producer
agrees to permit, without other compensation,
access to all or such portion of the farm, as
the Secretary may prescribe, by the general
public, for hunting, trapping, fishing, and
hiking, subject to applicable State and Federal
regulations.
[(7) Participation agreements.--
[(A) In general.--Producers on a farm
desiring to participate in the program
conducted under this subsection shall execute
an agreement with the Secretary providing for
the participation not later than such date as
the Secretary may prescribe.
[(B) Modification or termination.--The
Secretary may, by mutual agreement with
producers on a farm, modify or terminate any
such agreement if the Secretary determines the
action necessary because of an emergency
created by drought or other disaster or to
prevent or alleviate a shortage in the supply
of agricultural commodities. The Secretary may
modify the agreement under this subparagraph
for the purpose of alleviating a shortage in
the supply of agricultural commodities only if
there has been a significant change in the
estimated stocks of the commodity since the
Secretary announced the final terms and
conditions of the program for the crop of
upland cotton.
[(f) Inventory Reduction Payments.--
[(1) In general.--The Secretary may, for each of the
1991 through 1995 crops of upland cotton, make payments
available to producers who meet the requirements of
this subsection.
[(2) Form.--The payments may be made in the form of
marketing certificates.
[(3) Payments.--
[(A) In general.--Payments under this
subsection shall be determined in the same
manner as provided in subsection (b).
[(B) Quantity of cotton made available.--The
quantity of upland cotton to be made available
to a producer under this subsection shall be
equal in value to the payments so determined
under this subsection.
[(4) Eligibility.--A producer shall be eligible to
receive a payment under this subsection for a crop if
the producer--
[(A) agrees to forgo obtaining a loan under
subsection (a);
[(B) agrees to forgo receiving payments under
subsection (c);
[(C) does not plant upland cotton for harvest
in excess of the crop acreage base reduced by
one-half of any acreage required to be diverted
from production under subsection (e); and
[(D) otherwise complies with this section.
[(g) Equitable Relief.--
[(1) Loans and payments.--If the failure of a
producer to comply fully with the terms and conditions
of the program conducted under this section precludes
the making of loans and payments, the Secretary may,
nevertheless, make such loans and payments in such
amounts as the Secretary determines are equitable in
relation to the seriousness of the failure. The
Secretary may consider whether the producer made a good
faith effort to comply fully with the terms and
conditions of the program in determining whether
equitable relief is warranted under this paragraph.
[(2) Deadlines and program requirements.--The
Secretary may authorize the county and State committees
established under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive
or modify deadlines and other program requirements in
cases in which lateness or failure to meet such other
requirements does not affect adversely the operation of
the program.
[(h) Regulations.--The Secretary may issue such regulations
as the Secretary determines necessary to carry out this
section.
[(i) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the
Commodity Credit Corporation.
[(j) Assignment of Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall apply to
payments under this section.
[(k) Sharing of Payments.--The Secretary shall provide for
the sharing of payments made under this section for any farm
among the producers on the farm on a fair and equitable basis.
[(l) Tenants and Sharecroppers.--The Secretary shall provide
adequate safeguards to protect the interests of tenants and
sharecroppers.
[(m) Cross-Compliance.--
[(1) In general.--Compliance on a farm with the terms
and conditions of any other commodity program, or
compliance with crop acreage base requirements for any
other commodity, may not be required as a condition of
eligibility for loans or payments under this section.
[(2) Compliance on other farms.--The Secretary may
not require producers on a farm, as a condition of
eligibility for loans or payments under this section
for the farm, to comply with the terms and conditions
of the upland cotton program with respect to any other
farm operated by the producers.
[(n) Limited Global Import Quota.--
[(1) In general.--The President shall, within 180
days after the date of enactment of the Uruguay Round
Agreements Act, establish an import quota program which
shall provide that whenever the Secretary determines
and announces that the average price of the base
quality of upland cotton, as determined by the
Secretary, in the designated spot markets for a month
exceeded 130 percent of the average price of such
quality of cotton in such markets for the preceding 36
months, notwithstanding any other provision of law,
there shall immediately be in effect a limited global
import quota subject to the following conditions:
[(A) Quantity.--The quantity of the quota
shall be equal to 21 days of domestic mill
consumption of upland cotton at the seasonally
adjusted average rate of the most recent 3
months for which data are available.
[(B) Quantity if prior quota.--If a quota has
been established under this subsection during
the preceding 12 months, the quantity of the
quota next established under this subsection
shall be the smaller of 21 days of domestic
mill consumption calculated as set forth in
subparagraph (A) or the quantity required to
increase the supply to 130 percent of the
demand.
[(C) Preferential tariff treatment.--The
quantity under a limited global import quota
shall be considered to be an in-quota quantity
for purposes of section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d)), section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203), section 503(d)
of the Trade Act of 1974 (19 U.S.C. 2463(d)),
and General Note 3(a)(iv) to the HTS.
[(D) Definitions.--As used in subparagraph
(B):
[(i) Supply.--The term ``supply''
means, using the latest official data
of the Bureau of the Census, the
Department of Agriculture, and the
Department of the Treasury--
[(I) the carry-over of upland
cotton at the beginning of the
marketing year (adjusted to
480-pound bales) in which the
quota is established; plus
[(II) production of the
current crop; plus
[(III) imports to the latest
date available during the
marketing year.
[(ii) Demand.--The term ``demand''
means--
[(I) the average seasonally
adjusted annual rate of
domestic mill consumption in
the most recent 3 months for
which data are available; plus
[(II) the larger of--
[(aa) average exports
of upland cotton during
the preceding 6
marketing years; or
[(bb) cumulative
exports of upland
cotton plus outstanding
export sales for the
marketing year in which
the quota is
established.
[(iii) Limited global import quota.--
As used in this subsection, the term
``limited global import quota'' means a
quantity of imports that is not subject
to the over-quota tariff rate of a
tariff-rate quota.
[(D) 103B-47 Quota entry period.--When a
quota is established under this subsection,
cotton may be entered under the quota during
the 90-day period beginning on the date the
quota is established by the Secretary.
[(2) No overlap.--Notwithstanding paragraph (1), a
quota period may not be established that overlaps an
existing quota period or a special quota period
established under subsection (a)(5)(F).
[(o) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1997 crops
of upland cotton.
[Sec. 104.
[(c) The Secretary of Agriculture is hereby authorized and
directed to conduct a special cotton research program designed
to reduce the cost of producing upland cotton in the United
States at the earliest practicable date. There are hereby
authorized to be appropriated such sums, not to exceed
$10,000,000 annually, as may be necessary for the Secretary to
carry out this special research program. The Secretary shall
report annually to the Committee on Agriculture of the House of
Representatives and to the Committee on Agriculture, Nutrition,
and Forestry of the Senate with respect to the results of such
research.
[(d) In order to reduce cotton production costs, to prevent
the movement of certain cotton plant insects to areas not now
infested, and to enhance the quality of the environment, the
Secretary is authorized and directed to carry out programs to
destroy and eliminate cotton boll weevils in infested areas of
the United States as provided herein and to carry out similar
programs with respect to pink bollworms or any other major
cotton insect if the Secretary determines that methods and
systems have been developed to the point that success in
eradication of such insects is assured. The Secretary shall
carry out the eradication programs authorized by this
subsection through the Commodity Credit Corporation. In
carrying out insect eradication projects, the Secretary shall
utilize the technical and related services of appropriate
Federal, State, private agencies, and cotton organizations.
Producers and landowners in an eradication zone, established by
the Secretary, who are receiving benefits from any program
administered by the United States Department of Agriculture,
shall, as a condition of receiving or continuing any such
benefits, participate in and cooperate with the eradication
project, as specified in regulations of the Secretary.
[The Secretary may issue such regulations as he deems
necessary to enforce the provisions of this subsection with
respect to achieving the compliance of producers and landowners
who are not receiving benefits from any program administered by
the United States Department of Agriculture. Any person who
knowingly violates any such regulation promulgated by the
Secretary under this subsection may be assessed a civil penalty
of not to exceed $5,000 for each offense. No civil penalty
shall be assessed unless the person shall have been given
notice and opportunity for a hearing on such charge in the
county, parish, or incorporated city of the residence of the
person charged. In determining the amount of the penalty the
Secretary shall consider the appropriateness of such penalty to
the size of the business of the person charged, the effect on
the person's ability to continue in business, and the gravity
of the violation. Where special measures deemed essential to
achievement of the eradication objective are taken by the
project and result in a loss of production and income to the
producer, the Secretary shall provide reasonable and equitable
indemnification from funds available for the project, and also
provide for appropriate protection of the allotment, acreage
history, and average yield for the farm. The cost of the
program in each eradication zone shall be determined, and
cotton producers in the zone shall be required to pay up to
one-half thereof, with the exact share in each zone area to be
specified by the Secretary upon his finding that such share is
reasonable and equitable based on population levels of the
target insect and the degree of control measures normally
required. Each producer's pro rata share shall be deducted from
his cotton payment under this Act or otherwise collected, as
provided in regulations of the Secretary. Insofar as
practicable, cotton producers and other persons engaged in
cotton production in the eradication zone shall be employed to
participate in the work of the project in such zone. Funding of
the program shall be terminated at such time as the Secretary
determines and reports to the Congress that complete
eradication of the insects for which programs are undertaken
pursuant to this subsection has been accomplished. Funds in
custody of agencies carrying out the program shall, upon
termination of such program, be accounted for to the Secretary
for appropriate disposition.
[The Secretary is authorized to cooperate with the Government
of Mexico in carrying out operations or measures in Mexico
which he deems necessary and feasible to prevent the movement
into the United States from Mexico of any insects eradicated
under the provisions of this subsection. The measure and
character of cooperation carried out under this subsection on
the part of the United States and on the part of the Government
of Mexico, including the expenditure or use of funds made
available by the Secretary under this subsection, shall be such
as may be prescribed by the Secretary. Arrangements for the
cooperation authorized by this subsection shall be made through
and in consultation with the Secretary of State. The Commodity
Credit Corporation shall not make any expenditures for carrying
out the purposes of this subsection unless the Corporation has
received funds to cover such expenditures from appropriations
made to carry out the purposes of this subsection. There are
hereby authorized to be appropriated to the Commodity Credit
Corporation such sums as the Congress may from time to time
determine to be necessary to carry out the purposes of this
subsection.
[Sec. 105. (a) Notwithstanding the provisions of section 101
of this Act, beginning with the 1964 crop, price support shall
be made available to producers for each crop of corn at such
level, not less than 50 per centum or more than 90 per centum
of the parity price therefor, as the Secretary determines will
not result in increasing Commodity Credit Corporation stocks of
corn: Provided, That in the case of any crop for which an
acreage diversion program is in effect for any crop for which
an acreage diversion program is in effect for feed grains, the
level of price support for corn of such crop shall be at such
level not less than 65 per centum or more than 90 per centum of
the parity price therefor as the Secretary determines necessary
to achieve the acreage reduction goal established by him for
the crop.
[(b) Beginning with the 1959 crop, price support shall be
made available to producers for each crop of oats, rye, barley,
and grain sorghums at such level of the parity price therefor
as the Secretary of Agriculture determines is fair and
reasonable in relation to the level at which price support is
made available for corn, taking into consideration the feeding
value of such commodity in relation to corn, and the other
factors set forth in section 401(b) hereof.
[SEC. 105B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE
1991 THROUGH 1995 CROPS OF FEED GRAINS.
[(a) Loans and Purchases.--
[(1) In general.--Except as otherwise provided in
this subsection, the Secretary shall make available to
producers on a farm loans and purchases for each of the
1991 through 1995 crops of corn produced on the farm at
such level as the Secretary determines will encourage
the exportation of feed grains and not result in
excessive total stocks of feed grains after taking into
consideration the cost of producing corn, supply and
demand conditions, and world prices for corn.
[(2) Minimum loan and purchase level.--Except as
provided in paragraphs (3) and (4), the loan and
purchase level determined under paragraph (1) shall not
be less than 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the marketing years for the
immediately preceding 5 crops of corn, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in such
period, except that the loan and purchase level for a
crop determined under this paragraph may not be reduced
by more than 5 percent from the level determined for
the preceding crop.
[(3) Adjustments to support level.--
[(A) Stocks to use ratio.-- If the Secretary
estimates for any marketing year that the ratio
of ending stocks of corn to total use for the
marketing year will be--
[(i) equal to or greater than 25
percent, the Secretary may reduce the
loan and purchase level for corn for
the corresponding crop by an amount not
to exceed 10 percent in any year;
[(ii) less than 25 percent but not
less than 12.5 percent, the Secretary
may reduce the loan and purchase level
for corn for the corresponding crop by
an amount not to exceed 5 percent in
any year; or
[(iii) less than 12.5 percent the
Secretary may not reduce the loan and
purchase level for corn for the
corresponding crop.
[(B) Report to congress.--
[(i) In general.--If the Secretary
adjusts the level of loans and
purchases for corn under subparagraph
(A), the Secretary shall submit to the
Committee on Agriculture of the House
of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a report--
[(I) certifying such
adjustment as necessary to
prevent the accumulation of
stocks and to retain market
share; and
[(II) containing a
description of the need for
such adjustment.
[(ii) Effective date of adjustment.--
The adjustment shall become effective
no earlier than 60 calendar days after
the date of submission of the report to
the Committees, except that in the case
of the 1991 crop of feed grains, the
adjustment shall become effective on
the date of the submission of the
report.
[(C) Competitive position.--Notwithstanding
subparagraph (A), if the Secretary determines,
not later than 60 days prior to the beginning
of a marketing year for a crop, that the
effective loan rate established for such crop
will not maintain a competitive market position
for corn, the Secretary may reduce the loan and
purchase level for corn for the marketing year
by an amount, in addition to any reduction
under subparagraph (A), not to exceed 10
percent in any year.
[(D) No effect on future years.--Any
reduction in the loan and purchase level for
corn under this paragraph shall not be
considered in determining the loan and purchase
level for corn for subsequent years.
[(E) Minimum loan rate.--Notwithstanding
subparagraph (A), the loan rate for corn shall
not be less than $1.76 per bushel, unless such
rate would exceed 80 percent of the 5-year
average market price determination.
[(4) Marketing loan provisions.--
[(A) In general.--The Secretary may permit a
producer to repay a loan made under this
subsection for a crop at a level (except as
provided in subparagraph (C)) that is the
lesser of--
[(i) the loan level determined for
the crop;
[(ii) the higher of--
[(I) 70 percent of such
level;
[(II) if the loan level for a
crop was reduced under
paragraph (3), 70 percent of
the loan level that would have
been in effect but for the
reduction under paragraph (3);
or
[(iii) the prevailing world market
price for feed grains (adjusted to
United States quality and location), as
determined by the Secretary.
[(B) Prevailing world market price.--If the
Secretary permits a producer to repay a loan in
accordance with subparagraph (A), the Secretary
shall prescribe by regulation--
[(i) a formula to determine the
prevailing world market price for feed
grains, adjusted to United States
quality and location; and
[(ii) a mechanism by which the
Secretary shall announce periodically
the prevailing world market price for
feed grains.
[(C) Alternative repayment rates.--For each
of the 1991 through 1995 crops of feed grains,
if the world market price for feed grains
(adjusted to United States quality and
location) as determined by the Secretary, is
less than the loan level determined for the
crop, the Secretary may permit a producer to
repay a loan made under this subsection for a
crop at such level (not in excess of the loan
level determined for the crop) as the Secretary
determines will--
[(i) minimize potential loan
forfeitures;
[(ii) minimize the accumulation of
feed grain stocks by the Federal
Government;
[(iii) minimize the cost incurred by
the Federal Government in storing feed
grains; and
[(iv) allow feed grains produced in
the United States to be marketed freely
and competitively, both domestically
and internationally.
[(5) Simple average price.--For purposes of this
section, the simple average price received by producers
for the immediately preceding marketing year shall be
based on the latest information available to the
Secretary at the time of the determination.
[(6) Other feed grains.--The Secretary shall make
available to producers loans and purchases for each of
the 1991 through 1995 crops of grain sorghums, barley,
oats, and rye, respectively, produced on the farm at
such level as the Secretary determines is fair and
reasonable in relation to the level that loans and
purchases are made available for corn, taking into
consideration the feeding value of the commodity in
relation to corn and other factors specified in section
401(b).
[(b) Loan Deficiency Payments.--
[(1) In general.--The Secretary may, for each of the
1991 through 1995 crops of feed grains, make payments
(hereafter in this section referred to as ``loan
deficiency payments'') available to producers who,
although eligible to obtain a loan or purchase
agreement under subsection (a), agree to forgo
obtaining the loan or agreement in return for payments
under this subsection.
[(2) Computation.--A payment under this subsection
shall be computed by multiplying--
[(A) the loan payment rate; by
[(B) the quantity of feed grains the producer
is eligible to place under loan (or obtain a
purchase agreement) but for which the producer
forgoes obtaining the loan or agreement in
return for payments under this subsection.
[(3) Loan payment rate.--For purposes of this
subsection, the loan payment rate shall be the amount
by which--
[(A) the loan level determined for the crop
under subsection (a); exceeds
[(B) the level at which a loan may be repaid
under subsection (a).
[(c) Payments.--
[(1) Deficiency payments.--
[(A) In general.--The Secretary shall make
available to producers payments (hereafter in
this section referred to as ``deficiency
payments'') for each of the 1991 through 1995
crops of corn, grain sorghums, oats, and
barley, in an amount computed by multiplying--
[(i) the payment rate; by
[(ii) the payment acres for the crop;
by
[(iii) the farm program payment yield
established for the crop for the farm.
[(B) Payment rate.--
[(i) Payment rate for 1991 through
1993 crops.--The payment rate for each
of the 1991 through 1993 crops of corn,
grain sorghums, oats, and barley shall
be the amount by which the established
price for the respective crop of feed
grains exceeds the higher of--
[(I) the national weighted
average market price received
by producers during the first 5
months of the marketing year
for the crop, as determined by
the Secretary; or
[(II) the loan level
determined for the crop, prior
to any adjustment made under
subsection (a)(3) for the
marketing year for the crop.
[(ii) Payment rate of 1994 and 1995
crops.--The payment rate for each of
the 1994 and 1995 crops of corn, grain
sorghums, oats, and barley shall be the
amount by which the established price
for the respective crop of feed grains
exceeds the higher of--
[(I) the lesser of--
[(aa) the national
weighted average market
price received by
producers during the
marketing year for the
crop, as determined by
the Secretary; or
[(bb) the national
weighted average market
price received by
producers during the
first 5 months of the
marketing year for the
crop, as determined by
the Secretary, plus 7
cents per bushel; or
[(II) the loan level
determined for the crop, prior
to any adjustment made under
subsection (a)(3) for the
marketing year for the
respective crop of feed grains.
[(iii) Minimum established prices.--
[(I) Corn.--The established
price for corn shall not be
less than $2.75 per bushel for
each of the 1991 through 1995
crops of corn.
[(II) Oats.--The established
price for oats shall be such
price as the Secretary
determines is fair and
reasonable in relation to the
established price for corn, but
not less than $1.45 per bushel.
[(III) Grain sorghums.--The
established price for each of
the 1991 through 1995 crops of
grain sorghums shall not be
less than $2.61 per bushel.
[(IV) Barley.--
[(aa) In general.--
The established price
for barley shall be
such price as the
Secretary determines is
fair and reasonable in
relation to the
established price for
corn, taking into
consideration the
various feed and food
uses for barley. The
established price for
barley shall not be
less than 85.8 percent
of the established
price for corn.
[(bb) Barley
calculations.--The
Secretary shall, for
purposes of determining
the payment rate for
barley under clauses
(i) and (ii) and
subparagraph (D)(ii),
use the national
weighted average market
price received by
producers of barley
sold primarily for feed
purposes.
[(cc) Advance
payments.--In the case
of the 1991 crop of
barley, the Secretary
shall, for purposes of
determining any advance
deficiency payment made
to the producers of
barley under section
114, use the national
weighted average market
price received by
producers for all
barley, as determined
by the Secretary.
[(dd) Equity.--In
implementing this
subsection, the
Secretary shall make
available to producers
of the 1991 crop of
barley, notwithstanding
the method of
calculation or the
amount of the advance
deficiency payment, the
total amount of
payments as calculated
under clause (bb).
[(C) Payment acres.--Payment acres for a crop
shall be the lesser of--
[(i) the number of acres planted to
the crop for harvest within the
permitted acreage; or
[(ii) 85 percent of the crop acreage
base for the crop for the farm less the
quantity of reduced acreage (as
determined under subsection (e)(2)(D)).
[(D) Emergency compensation.--
[(i) In general.--Notwithstanding the
foregoing provisions of this section,
if the Secretary adjusts the level of
loans and purchases for feed grains
under subsection (a)(3), the Secretary
shall provide emergency compensation by
increasing the deficiency payments for
feed grains by such amount as the
Secretary determines necessary to
provide the same total return to
producers as if the adjustment in the
level of loans and purchases had not
been made.
[(ii) Calculation.--In determining
the payment rate, per bushel, for
emergency compensation payments for a
crop of feed grains under this
subparagraph, the Secretary shall use
the national weighted average market
price, per bushel of feed grains,
received by producers during the
marketing year for the crop, as
determined by the Secretary.
[(E) 0/85 program.--
[(i) In general.--If an acreage
limitation program under subsection
(e)(2) is in effect for a crop of feed
grains and the producers on a farm
devote a portion of the maximum payment
acres for feed grains as calculated
under subparagraph (C)(ii) of the farm
equal to more than 8 percent for each
of the 1991 through 1993 crops, and 15
percent for each of the 1994 through
1997 crops (except as provided in
clause (vii)), of such feed grain
acreage of the farm for the crop, to
conservation uses (except as provided
in subparagraph (F))--
[(I) such portion of the
maximum payment acres of the
farm in excess of 8 percent for
each of the 1991 through 1993
crops, and 15 percent for each
of the 1994 through 1997 crops
(except as provided in clause
(vii)), of such acreage devoted
to conservation uses (except as
provided in subparagraph (F))
shall be considered to be
planted to feed grains for the
purpose of determining the
acreage on the farm required to
be devoted to conservation uses
in accordance with subsection
(e)(2)(D); and
[(II) the producers shall be
eligible for payments under
this paragraph with respect to
such acreage.
[(ii) Deficiency payments.--
Notwithstanding any other provision of
this section, any producer who devotes
a portion of the maximum payment acres
for feed grains for the farm to
conservation uses (or other uses as
provided in subparagraph (F)) under
this subparagraph shall receive
deficiency payments on the acreage that
is considered to be planted to feed
grains and eligible for payments under
this subparagraph for the crop at a
per-bushel rate established by the
Secretary, except that the rate may not
be established at less than the
projected deficiency payment rate for
the crop, as determined by the
Secretary. Such projected payment rate
for the crop shall be announced by the
Secretary prior to the period during
which feed grain producers may agree to
participate in the program for the
crop.
[(iii) Adverse effect on agribusiness
and other interests.--The Secretary
shall implement this subparagraph in
such a manner as to minimize the
adverse effect on agribusiness and
other agriculturally related economic
interests within any county, State, or
region. In carrying out this
subparagraph, the Secretary is
authorized to restrict the total
quantity of feed grain acreage that may
be taken out of production under this
subparagraph, taking into consideration
the total quantity of acreage that has
or will be removed from production
under other price support, production
adjustment, or conservation program
activities. No restrictions on the
quantity of acreage that may be taken
out of production in accordance with
this subparagraph in a crop year shall
be imposed in the case of a county in
which producers were eligible to
receive disaster emergency loans under
section 321 of the Consolidated Farm
and Rural Development Act (7 U.S.C.
1961) as a result of a disaster that
occurred during the crop year.
[(iv) Crop acreage and payment
yield.--The feed grain crop acreage
base and feed grain farm program
payment yield of the farm shall not be
reduced due to the fact that a portion
of the permitted feed grain acreage of
the farm was devoted to conserving uses
(except as provided in subparagraph
(F)) under this subparagraph.
[(v) Limitation.--Other than as
provided in clauses (i) through (iv),
payments may not be made under this
paragraph for any crop on a greater
acreage than the acreage actually
planted to feed grains.
[(vi) Conservation use acreage under
other programs.--Any acreage considered
to be planted to feed grains in
accordance with clauses (i) and (iv)
may not also be designated as
conservation use acreage for the
purpose of fulfilling any provisions
under any acreage limitation or land
diversion program requiring that the
producers devote a specified acreage to
conservation uses.
[(vii) Exceptions to 0/85.--In the
case of each of the 1994 through 1997
crops of feed grains, producers on a
farm shall be eligible to receive
deficiency payments as provided in
clause (ii) if an acreage limitation
program under subsection (e) is in
effect for the crop and--
[(I)(aa) the producers have
been determined by the
Secretary (in accordance with
section 503(c)) to be prevented
from planting the crop or have
incurred a reduced yield for
the crop (due to a natural
disaster); and
[(bb) the producers elect to
devote a portion of the maximum
payment acres for feed grains
(as calculated under
subparagraph (C)(ii)) equal to
more than 8 percent of the feed
grain acreage, to conservation
uses; or
[(II) the producers elect to
devote a portion of the maximum
payment acres for feed grains
(as calculated under
subparagraph (C)(ii)) equal to
more than 8 percent of the feed
grain acreage, to alternative
crops as provided in
subparagraph (F).
[(F) Alternative crops.--
[(i) Industrial and other crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of
acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (E) to be devoted to
sweet sorghum, guar, castor beans,
plantago ovato, triticale, rye, millet,
mung beans, commodities for which no
substantial domestic production or
market exists but that could yield
industrial raw material being imported,
or likely to be imported, into the
United States, or commodities grown for
experimental purposes (including kenaf
and milkweed), subject to the following
sentence. The Secretary may permit the
acreage to be devoted to the production
only if the Secretary determines that--
[(I) the production is not
likely to increase the cost of
the price support program; and
[(II) the production is
needed to provide an adequate
supply of the commodity, or, in
the case of commodities for
which no substantial domestic
production or market exists but
that could yield industrial raw
materials, the production is
needed to encourage domestic
manufacture of the raw material
and could lead to increased
industrial use of the raw
material to the long-term
benefit of United States
industry.
[(ii) Oilseeds.--The Secretary shall
permit, subject to such terms and
conditions as the Secretary may
prescribe, all or any part of acreage
otherwise required to be devoted to
conservation uses as a condition of
qualifying for payments under
subparagraph (E) to be devoted to
sunflowers, rapeseed, canola,
safflower, flaxseed, mustard seed,
sesame, crambe, and other minor
oilseeds designated by the Secretary
(excluding soybeans). In implementing
this clause, the Secretary shall
provide that, in order to receive
payments under subparagraph (E), the
producers shall agree to forgo
eligibility to receive a loan under
section 205 for the crop of any such
oilseed produced on the farm.
[(iii) Double cropping.--The
Secretary shall permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any portion of
the acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (E) that is devoted
to an industrial, oilseed, or other
crop pursuant to clause (i) or (ii) to
be subsequently planted during the same
crop year to any crop described in
subparagraph (B), (C), or (D) of
section 504(b)(1). The planting of
soybeans as such subsequently planted
crop shall be limited to farms
determined by the Secretary to have an
established history of double cropping
soybeans during at least 3 of the
preceding 5 years. In implementing this
clause, the Secretary shall require
producers to agree to forego
eligibility to receive loans under this
Act for the crop of the subsequently
planted crop that is produced on a farm
under this clause.
[(2) Crop insurance requirement.--A producer shall
obtain catastrophic risk protection insurance coverage
in accordance with section 427.
[(d) Payment Yields.--The farm program payment yields for
farms for each crop of feed grains shall be determined under
title V.
[(e) Acreage Reduction Programs.--
[(1) In general.--
[(A) Establishment.--Notwithstanding any
other provision of this Act, if the Secretary
determines that the total supply of corn, grain
sorghum, barley, or oats, in the absence of an
acreage limitation program, will be excessive
taking into account the need for an adequate
carry-over to maintain reasonable and stable
supplies and prices and to meet a national
emergency, the Secretary may provide for any
crop of corn, grain sorghum, barley, or oats an
acreage limitation program as described in
paragraph (2).
[(B) Agricultural resources conservation
program.--In making a determination under
subparagraph (A), the Secretary shall take into
consideration the number of acres placed in the
agricultural resources conservation program
established under subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831
et seq.).
[(C) Announcements.--If the Secretary elects
to implement an acreage limitation program for
any crop year, the Secretary shall announce the
program not later than September 30 prior to
the calendar year in which the crop is
harvested, except that in the case of the 1991
crop, the Secretary shall announce the program
as soon as practicable after the date of
enactment of this section.
[(D) Adjustments.--Not later than November 15
of the year previous to the year in which the
crop is harvested, the Secretary may make
adjustments in the program announced under
subparagraph (C) if the Secretary determines
that there has been a significant change in the
total supply of feed grains since the program
was first announced.
[(E) Compliance.--As a condition of
eligibility for loans, purchases, and payments
for any such crop of feed grains, except as
provided in subsections (f) and (g) and section
504, the producers on a farm must comply with
the terms and conditions of the acreage
limitation program and, if applicable, a land
diversion program as provided in paragraph (5).
[(F) Acreage limitation program for 1991
crop.--In the case of the 1991 crop of corn,
the Secretary shall provide for an acreage
limitation program (as described in paragraph
(2)) under which the acreage planted to corn
for harvest on a farm would be limited to the
corn crop acreage base for the farm for the
crop reduced by not less than 7.5 percent.
[(G) Acreage limitation programs for 1992
through 1995 crops.--In the case of each of the
1992 through 1995 crops of corn, if the
Secretary estimates for a marketing year for
the crop that the ratio of ending stocks of
corn to total disappearance of corn for the
preceding marketing year will be--
[(i) more than 25 percent, the
Secretary shall provide for an acreage
limitation program (as described in
paragraph (2)) under which the acreage
planted to corn for harvest on a farm
would be limited to the corn crop
acreage base for the farm for the crop
reduced by not less than 10 percent nor
more than 20 percent; or
[(ii) equal to or less than 25
percent, the Secretary may provide for
such an acreage limitation program
under which the acreage planted to corn
for harvest on a farm would be limited
to the corn crop acreage base for the
farm for the crop reduced by not more
than 0 to 12.5 percent.
For the purpose of this subparagraph, the term
``total disappearance'' means all corn
utilization, including total domestic, total
export, and total residual disappearance.
[(H) Acreage limitation program for 1991
through 1995 crops of oats.--In the case of
each of the 1991 through 1995 crops of oats,
the Secretary shall provide for an acreage
limitation program (as described in paragraph
(2)) under which the acreage planted to oats
for harvest on a farm would be limited to the
oat crop acreage base for the farm for the crop
reduced by not more than 0 percent.
[(2) Acreage limitation program.--
[(A) Percentage reductions.--Except as
provided in paragraph (3), if a feed grain
acreage limitation program is announced under
paragraph (1), such limitation shall be
achieved by applying a uniform percentage
reduction (from 0 to 20 percent) to the crop
acreage base for corn, grain sorghum, barley,
or oats, respectively, for each feed grain-
producing farm.
[(B) Compliance.--Except as provided in
subsection (g) and section 504, producers who
knowingly produce a feed grain in excess of the
respective permitted feed grain acreage for the
farm shall be ineligible for feed grain loans,
purchases, and payments with respect to that
farm.
[(C) Crop acreage bases.--Feed grain crop
acreage bases for each crop of feed grains
shall be determined under title V.
[(D) Acreage devoted to conservation uses.--A
number of acres on the farm shall be devoted to
conservation uses, in accordance with
regulations issued by the Secretary. Such
number shall be determined by multiplying the
respective feed grain crop acreage base by the
percentage reduction required by the Secretary.
The number of acres so determined is hereafter
in this subsection referred to as ``reduced
acreage''. The remaining acreage is hereafter
in this subsection referred to as ``permitted
acreage''. Permitted acreage may be adjusted by
the Secretary as provided in paragraph (3) and
in section 504.
[(E) Individual farm program acreage.--Except
as otherwise provided in subsection (c), the
individual farm program acreage shall be the
acreage planted on the farm to feed grains for
harvest within the permitted feed grain acreage
for the farm as established under this
paragraph.
[(F) Planting designated crops on reduced
acreage.--
[(i) Definition of designated crop.--
As used in this subparagraph, the term
``designated crop'' means a crop
defined in section 504(b)(1), excluding
any program crop as defined in section
502(3).
[(ii) In general.--Subject to clause
(iii), the Secretary may permit
producers on a farm to plant a
designated crop on no more than one-
half of the reduced acreage on the
farm.
[(iii) Limitations.--If the producers
on a farm elect to plant a designated
crop on reduced acreage under this
subparagraph--
[(I) the amount of the
deficiency payment that the
producers are otherwise
eligible to receive under
subsection (c) shall be
reduced, for each acre (or
portion thereof) that is
planted to the designated crop,
by an amount equal to the
deficiency payment that would
be made with respect to a
number of acres of the crop
that the Secretary considers
appropriate, except that if the
producers on the farm are
participating in a program
established for more than one
program crop, the amount of the
reduction shall be determined
by prorating the reduction
based on the acreage planted or
considered planted on the farm
to all of such program crops;
and
[(II) the Secretary shall
ensure that reductions in
deficiency payments under
subclause (I) are sufficient to
ensure that this subparagraph
will result in no additional
cost to the Commodity Credit
Corporation.
[(G) Exception for malting barley.--The
Secretary may provide that no producer of
malting barley shall be required as a condition
of eligibility for feed grain loans, purchases,
and payments to comply with any acreage
limitation under this paragraph if the producer
has previously produced a malting variety of
barley for harvest, plants barley only of an
acceptable malting variety for harvest, and
meets such other conditions as the Secretary
may prescribe. The Secretary shall make an
annual determination of whether to exempt such
producers from compliance with any acreage
limitation under this paragraph and shall
announce such determination in the Federal
Register.
[(H) Corn and sorghum bases.--Notwithstanding
any other provision of this Act, with respect
to each of the 1992 through 1995 crops of corn
and grain sorghums--
[(i) the Secretary shall combine the
permitted acreages established under
subparagraph (D) for a farm for a crop
year for corn and grain sorghums;
[(ii) for each crop year, the sum of
the acreage planted and considered
planted to corn and grain sorghum, as
determined by the Secretary under this
section and title V, shall be prorated
to corn and grain sorghum based on the
ratio of the crop acreage base for the
individual crop of corn or grain
sorghum, as applicable, to the sum of
the crop acreage bases for corn and
grain sorghum established for each crop
year; and
[(iii) for each crop year, the sum of
the corn and grain sorghum payment
acres, as determined under subsection
(c), shall be prorated to corn and
grain sorghum based on the ratio of the
maximum payment acres for the
individual crop of corn or grain
sorghum, as applicable, to the sum of
the maximum payment acres for corn and
grain sorghum established for each crop
year.
[(3) Targeted option payments.--
[(A) In general.--Notwithstanding any other
provision of this section, if the Secretary
implements an acreage limitation program with
respect to any of the 1991 through 1995 crops
of feed grains, the Secretary may make
available to producers on a farm who do not
receive payments under subsection (c)(1)(E) for
such crop on the farm, adjustments in the level
of deficiency payments that would otherwise be
made available to the producers if the
producers exercise the payment options provided
in this paragraph.
[(B) Payment options.--If the Secretary
elects to carry out this paragraph, the
Secretary shall make the payment options
specified in subparagraphs (C) and (D)
available to producers who agree to make
adjustments in the quantity of acreage diverted
from the production of feed grains under an
acreage limitation program in accordance with
this paragraph.
[(C) Increased acreage limitation option.--
[(i) Increase in established price.--
If the Secretary elects to carry out
this paragraph, a producer shall be
eligible to receive an increase in the
established price for corn under clause
(ii) if the producer agrees to an
increase in the acreage limitation
percentage to be applied to the
producers' corn acreage base above the
acreage limitation percentage announced
by the Secretary.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who participate in the
program under this paragraph, the
Secretary shall increase the
established price for corn by an amount
determined by the Secretary, but not
less than 0.5 percent, nor more than 1
percent, for each 1 percentage point
increase in the acreage limitation
percentage applied to the producers'
corn acreage base.
[(iii) Limitation.--The acreage
limitation percentage to be applied to
the producers' corn acreage base shall
not be increased by more than 5
percentage points for the 1991 crop and
10 percentage points for each of the
1992 through 1995 crops above the
acreage limitation percentage announced
by the Secretary for the crop or above
20 percent total for the crop.
[(D) Decreased acreage limitation option.--
[(i) Decrease in acreage limitation
requirement.--If the Secretary elects
to carry out this paragraph, a producer
shall be eligible to decrease the
acreage limitation percentage
applicable to the producers' corn
acreage base (as announced by the
Secretary) if the producer agrees to a
decrease in the established price for
corn under clause (ii) for the purpose
of calculating deficiency payments to
be made available to the producer.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who choose the option set
forth in this subparagraph, the
Secretary shall decrease the
established price for corn by an amount
to be determined by the Secretary, but
not less than 0.5 percent, nor more
than 1 percent, for each 1 percentage
point decrease in the acreage
limitation percentage applied to the
producers' corn acreage base.
[(iii) Limitation.--A producer may
not choose to decrease the acreage
limitation percentage applicable to the
producers' corn acreage base under this
paragraph by more than one-half of the
announced acreage limitation
percentage.
[(E) Other feed grains.--The Secretary shall
implement the program provided for by this
paragraph for other feed grains similar to the
manner in which the program is implemented for
corn.
[(F) Participation and production effects.--
Notwithstanding any other provision of this
paragraph, the Secretary shall, to the extent
practicable, ensure that the program provided
for in this paragraph does not have a
significant effect on program participation or
total production and shall be offered in such a
manner that the Secretary determines will
result in no additional budget outlays. The
Secretary shall provide an analysis of the
Secretary's determination to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
[(4) Administration.--
[(A) Protection from weeds and erosion.--The
regulations issued by the Secretary under
paragraph (2) with respect to acreage required
to be devoted to conservation uses shall assure
protection of the acreage from weeds and wind
and water erosion.
[(B) Annual or perennial cover.--
[(i) Required.--
[(I) In general.--Except as
provided in subclause (II) and
paragraph (2), a producer who
participates in an acreage
reduction program established
for a crop of feed grains under
this subsection shall be
required to plant to, or
maintain as, an annual or
perennial cover 50 percent (or
more at the option of the
producer) of the acreage that
is required to be removed from
the production of feed grains,
but not to exceed 5 percent (or
more at the option of the
producer) of the crop acreage
base established for the crop.
[(II) Arid areas.--Subclause
(I) shall not apply with
respect to arid areas
(including summer fallow
areas), as determined by the
Secretary. If the Secretary
determines any county in a
State to be arid, the
respective State committee
established under section 8(b)
of the Soil Conservation and
Domestic Allotment Act (16
U.S.C. 590h(b)) may designate
any other county or counties or
all of the State as arid for
the purposes of this paragraph.
[(III) Approval of cover
crops and practices.--The State
committee, after receiving
recommendations from the county
committees, shall approve
appropriate crops planted or
maintained as cover, including,
as appropriate, annual or
perennial native grasses and
legumes or other vegetation.
The State committee shall
establish the final seeding
date for the planting of the
cover and shall approve
appropriate cover crops or
practices, after consulting the
Soil Conservation Service State
Conservationist regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion. After the
Secretary establishes the State
technical committee for the
State pursuant to section 1261
of the Food Security Act of
1985 (16 U.S.C. 3861), the
State committee shall consult
with the technical committee
(rather than the Soil
Conservation Service State
Conservationist) regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion.
[(ii) Multiyear program.--
[(I) Cost-share assistance.--
If a producer elects to
establish a perennial cover
capable of improving water
quality or wildlife habitat on
the acreage, the Commodity
Credit Corporation shall make
available cost-share assistance
for 25 percent of the approved
cost of establishing the cover
on not more than 50 percent of
the acreage that is required to
be diverted from production,
but not to exceed 5 percent (or
more, at the option of the
producer) of the crop acreage
base established for a crop.
[(II) Agreement of
producer.--If a producer elects
to establish a perennial cover
on the acreage under this
subparagraph and receives cost-
share assistance from the
Corporation with respect to the
cover, the producer, under such
terms and conditions as may be
prescribed by the Secretary,
taking into consideration
guidelines established by the
State technical committees
established in subtitle G of
title XII of the Food Security
Act of 1985, shall agree to
maintain the perennial cover
for a minimum of 3 years.
[(iii) Conserving crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of the
acreage to be devoted to sweet sorghum,
guar, sesame, castor beans, crambe,
plantago ovato, triticale, rye, mung
beans, milkweed, or other commodity, if
the Secretary determines that the
production is needed to provide an
adequate supply of the commodities, is
not likely to increase the cost of the
price support program, and will not
affect farm income adversely.
[(C) Haying and grazing.--
[(i) In general.--Except as provided
in clause (ii), haying and grazing of
reduced acreage, acreage devoted to a
conservation use under subsection
(c)(1)(E), and acreage diverted from
production under a land diversion
program established under this section
shall be permitted, except during any
consecutive 5-month period that is
established by the State committee
established under section 8(b) of the
Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)) for a
State. The 5-month period shall be
established during the period beginning
April 1, and ending October 31, of a
year.
[(ii) Natural disasters.--In the case
of a natural disaster, the Secretary
may permit unlimited haying and grazing
on the acreage. The Secretary may not
exclude irrigated or irrigable acreage
not planted in alfalfa when exercising
the authority under this clause.
[(D) Water storage uses.--
[(i) In general.--The regulations
issued by the Secretary under paragraph
(2) with respect to acreage required to
be devoted to conservation uses shall
provide that land that has been
converted to water storage uses shall
be considered to be devoted to
conservation uses if the land was
devoted to wheat, feed grains, cotton,
rice, or oilseeds in at least 3 of the
immediately preceding 5 years. The land
shall be considered to be devoted to
conservation uses for the period that
the land remains in water storage uses,
but not to exceed 5 years subsequent to
its conversion to water storage uses.
[(ii) Limitations.--Land converted to
water storage uses for the purposes of
this subparagraph may not be devoted to
any commercial use, including
commercial fish production. The water
stored on the land may not be ground
water. The farm on which the land is
located must have been irrigated with
ground water during at least 1 of the
preceding 5 crop years.
[(E) Summer fallow.--In determining the
quantity of land to be devoted to conservation
uses under an acreage limitation program with
respect to land that has been farmed under
summer fallow practices, as defined by the
Secretary, the Secretary shall consider the
effects of soil erosion and such other factors
as the Secretary considers appropriate.
[(5) Land diversion payments.--
[(A) In general.--The Secretary may make land
diversion payments to producers of feed grains,
whether or not an acreage limitation program
for feed grains is in effect, if the Secretary
determines that the land diversion payments are
necessary to assist in adjusting the total
national acreage of feed grains to desirable
goals. The land diversion payments shall be
made to producers who, to the extent prescribed
by the Secretary, devote to approved
conservation uses an acreage of cropland on the
farm in accordance with land diversion
contracts entered into by the Secretary with
the producers.
[(B) Amounts.--The amounts payable to
producers under land diversion contracts may be
determined through the submission of bids for
the contracts by producers in such manner as
the Secretary may prescribe or through such
other means as the Secretary determines
appropriate. In determining the acceptability
of contract offers, the Secretary shall take
into consideration the extent of the diversion
to be undertaken by the producers and the
productivity of the acreage diverted.
[(C) Limitation on diverted acreage.--The
Secretary shall limit the total acreage to be
diverted under agreements in any county or
local community so as not to affect adversely
the economy of the county or local community.
[(6) Conservation practices.--
[(A) Wildlife food plots or habitat.--The
reduced acreage and additional diverted acreage
may be devoted to wildlife food plots or
wildlife habitat in conformity with standards
established by the Secretary in consultation
with wildlife agencies. The Secretary may pay
an appropriate share of the cost of practices
designed to carry out the purposes of this
subparagraph.
[(B) Soil and water conservation practices.--
The Secretary may also pay an appropriate share
of the cost of approved soil and water
conservation practices (including practices
that may be effective for a number of years)
established by the producer on acreage required
to be devoted to conservation uses or on
additional diverted acreage.
[(C) Public accessibility.--The Secretary may
provide for an additional payment on the
acreage in an amount determined by the
Secretary to be appropriate in relation to the
benefit to the general public if the producer
agrees to permit, without other compensation,
access to all or such portion of the farm, as
the Secretary may prescribe, by the general
public, for hunting, trapping, fishing, and
hiking, subject to applicable State and Federal
regulations.
[(7) Participation agreements.--
[(A) In general.--Producers on a farm
desiring to participate in the program
conducted under this subsection shall execute
an agreement with the Secretary providing for
the participation not later than such date as
the Secretary may prescribe.
[(B) Modification or termination.--The
Secretary may, by mutual agreement with
producers on a farm, modify or terminate any
such agreement if the Secretary determines the
action necessary because of an emergency
created by drought or other disaster or to
prevent or alleviate a shortage in the supply
of agricultural commodities. The Secretary may
modify the agreement under this subparagraph
for the purpose of alleviating a shortage in
the supply of agricultural commodities only if
there has been a significant change in the
estimated stocks of the commodity since the
Secretary announced the final terms and
conditions of the program for the crop of feed
grains.
[(8) Special oats plantings.--In any crop year that
the Secretary determines that projected domestic
production of oats will not fulfill the projected
domestic demand for oats, notwithstanding the foregoing
provisions of this subsection, the Secretary--
[(A) may provide that any reduced acreage may
be planted to oats for harvest;
[(B) may make program benefits (including
loans, purchases, and payments) available under
the annual program for oats under this section
available to producers with respect to acreage
planted to oats under this paragraph; and
[(C) shall not make program benefits other
than the benefits specified in subparagraph (B)
available to producers with respect to acreage
planted to oats under this paragraph.
[(f) Inventory Reduction Payments.--
[(1) In general.--The Secretary may, for each of the
1991 through 1995 crops of feed grains, make payments
available to producers who meet the requirements of
this subsection.
[(2) Form.--The payments may be made in the form of
marketing certificates.
[(3) Payments.--Payments under this subsection shall
be determined in the same manner as provided in
subsection (b).
[(4) Eligibility.--A producer shall be eligible to
receive a payment under this subsection for a crop if
the producer--
[(A) agrees to forgo obtaining a loan or
purchase agreement under subsection (a);
[(B) agrees to forgo receiving payments under
subsection (c);
[(C) does not plant feed grains for harvest
in excess of the crop acreage base reduced by
one-half of any acreage required to be diverted
from production under subsection (e); and
[(D) otherwise complies with this section.
[(g) Pilot Voluntary Production Limitation Program.--
[(1) In general.--Effective for the 1992 or 1993
crops (and, if the Secretary so determines, the 1994
and 1995 crops), if a feed grain acreage limitation
program or a land diversion program is announced under
subsection (e) for such crops, the Secretary shall
carry out a pilot program in at least 15 counties in at
least 2 States where producers express an interest in
participating in the pilot program under which the
producers on a farm shall be considered to have met the
requirements of such acreage limitation or land
diversion program if the producers meet the
requirements of the voluntary production limitation
program established under this subsection.
[(2) Limitation on marketing.--In order to comply
with the voluntary production limitation program, the
producers on a farm must agree not to market, barter,
donate, or use on the farm (including use as feed for
livestock) in a marketing year a quantity of feed
grains in excess of the feed grain production
limitation quantity for the farm for the marketing
year.
[(3) Production limitation quantity.--For purposes of
this subsection, the production limitation quantity for
a farm for a marketing year for a crop shall equal the
product obtained by multiplying--
[(A) the acreage permitted to be planted to
feed grains under the acreage reduction program
or land diversion program in effect for the
crop for the farm; by
[(B) the higher of--
[(i) the farm program payment yield
for the farm; or
[(ii) the average of the yield per
harvested acre for feed grains for the
farm for each of the 5 crop years
immediately preceding the crop year
during which the producers first
participate in the program established
under this subsection, excluding the
crop years with the highest and lowest
yield per harvested acre and any crop
year in which the commodity was not
planted on the farm.
[(4) Terms and conditions.--Producers on a farm who
elect to participate in the program established under
this subsection for a crop of feed grains shall--
[(A) enter into an agreement with the
Secretary providing that the producers shall
comply with the program for the crop;
[(B) not plant program commodities for
harvest in a quantity in excess of the sum of
the crop acreage bases for the farm; and
[(C) be considered to have complied with the
terms and conditions of the feed grain acreage
reduction program or land diversion program for
the crop, even though the acreage planted to
feed grains on the farm exceeds the permitted
acreage provided under the acreage reduction or
land diversion program.
[(5) Excess production.--
[(A) In general.--Any quantity of feed grains
produced in a crop year on a farm in excess of
the production limitation quantity for the farm
may be stored by the producers for a period of
not to exceed 5 marketing years and may be used
only in accordance with this paragraph.
[(B) Marketing in subsequent year.--
[(i) Participants in program.--
Producers on a farm who are
participating in the program
established under this subsection may
market, barter, or use a quantity of
the excess feed grains referred to in
subparagraph (A) equal to the
difference between the production
limitation quantity for the farm for
the crop year subsequent to the crop
year in which the excess feed grains
are produced less the quantity of feed
grains produced on the farm during the
crop year.
[(ii) Participants in acreage
reduction program.--Producers on a farm
who are participating in an acreage
reduction or a land diversion program
for a crop of feed grains may market,
barter, or use a quantity of the excess
feed grains referred to in subparagraph
(A) in an amount that reflects the
quantity of feed grains that would be
expected to be produced on acreage that
the producers agree to devote to
approved conservation uses (in excess
of any acreage reduction or land
diversion requirements) during a crop
year, as determined by the Secretary.
[(6) Duties of secretary.--In carrying out the pilot
program established under this subsection, the
Secretary--
[(A) shall issue such regulations as are
necessary to carry out the program;
[(B) may require increased acreage reduction
or land diversion requirements with respect to
producers who have had excess feed grain
production in order to allow the producers to
market, barter, or use the production in
subsequent years;
[(C) shall take appropriate measures designed
to prevent the circumvention of the program
established under this subsection, including
the imposition of penalties;
[(D) may require producers who participate in
the program for a crop, but who fail to comply
with the terms and conditions of the program,
to refund all or a part of any deficiency
payments received with respect to the crop;
[(E) may require the forfeiture to the
Commodity Credit Corporation of any feed grains
that are produced in excess of the production
limitation quantity and that are not marketed,
bartered, or used within 5 marketing years; and
[(F) shall ensure equitable treatment for
producers who participate in the pilot program
if the Secretary allows increases (based on
actual production levels) in the determination
of farm program payment yields for feed grains
for the farm.
[(7) Report.--
[(A) In general.--The Comptroller General of
the United States shall prepare a report that
evaluates the pilot program carried out under
this subsection.
[(B) Submission.--The Comptroller General
shall submit a copy of the report required by
subparagraph (A) to the Committee on
Agriculture of the House of Representatives,
the Committee on Agriculture, Nutrition, and
Forestry of the Senate, and the Secretary.
[(h) Equitable Relief.--
[(1) Loans, purchases, and payments.--If the failure
of a producer to comply fully with the terms and
conditions of the program conducted under this section
precludes the making of loans, purchases, and payments,
the Secretary may, nevertheless, make such loans,
purchases, and payments in such amounts as the
Secretary determines are equitable in relation to the
seriousness of the failure. The Secretary may consider
whether the producer made a good faith effort to comply
fully with the terms and conditions of such program in
determining whether equitable relief is warranted under
this paragraph.
[(2) Deadlines and program requirements.--The
Secretary may authorize the county and State committees
established under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive
or modify deadlines and other program requirements in
cases in which lateness or failure to meet such other
requirements does not affect adversely the operation of
the program.
[(i) Regulations.--The Secretary may issue such regulations
as the Secretary determines necessary to carry out this
section.
[(j) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the
Commodity Credit Corporation.
[(k) Assignment of Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall apply to
payments under this section.
[(l) Sharing of Payments.--The Secretary shall provide for
the sharing of payments made under this section for any farm
among the producers on the farm on a fair and equitable basis.
[(m) Tenants and Sharecroppers.--The Secretary shall provide
adequate safeguards to protect the interests of tenants and
sharecroppers.
[(n) Cross-Compliance.--
[(1) In general.--Compliance on a farm with the terms
and conditions of any other commodity program, or
compliance with crop acreage base requirements for any
other commodity, may not be required as a condition of
eligibility for loans, purchases, or payments under
this section.
[(2) Compliance on other farms.--The Secretary may
not require producers on a farm, as a condition of
eligibility for loans, purchases, or payments under
this section for the farm, to comply with the terms and
conditions of the feed grains program with respect to
any other farm operated by the producers.
[(o) Public Comment on Feed Grains Program.--
[(1) In general.--In order to ensure that producers
and consumers of feed grains are provided with
reasonable opportunity to comment on the annual program
determinations concerning the price support and acreage
reduction program for each of the 1992 and subsequent
crops of feed grains, the Secretary shall request
public comment regarding the feed grains program in
accordance with this subsection.
[(2) Options.--Not less than 60 days before the
program is announced for a crop of feed grains under
this section, the Secretary shall propose for public
comment various program options for the crop of feed
grains.
[(3) Analyses.--Each option proposed by the Secretary
shall be accompanied by an analysis that includes the
estimated planted acreage, production, domestic and
export use, ending stocks, season average producer
price, program participation rate, and cost to the
Federal Government that would likely result from each
option.
[(4) Estimates.--In announcing the program for a crop
of feed grains under this section, the Secretary shall
include an estimate of the planted acreage, production,
domestic and export use, ending stocks, season average
producer price, program participation rate, and cost to
the Federal Government that is expected to result from
the program as announced.
[(p) Malting Barley.--
[(1) Assessment required.--In order to help offset
costs associated with deficiency payments made
available under this section to producers of barley,
the Secretary shall provide for an assessment for each
of the 1991 through 1995 crop years to be levied on any
producer of malting barley produced on a farm that is
enrolled for the crop year in the production adjustment
program under this section. The Secretary shall
establish such assessment at not more than 5 percent of
the value of the malting barley produced on program
payment acres on the farm during each of the 1991
through 1995 crop years. The production per acre on
which the assessment is based shall not be greater than
the farm program payment yield.
[(2) Value of malting barley.--The Secretary may
establish the value of such malting barley at the
lesser of the State or national weighted average market
price received by producers of malting barley for the
first 5 months of the marketing year. In calculating
the State or national weighted average market price,
the Secretary may exclude the value of malting barley
that is contracted for sale by producers prior to
planting.
[(3) Exception to assessment.--In counties where
malting barley is produced, participating barley
producers may certify to the Secretary prior to
computation of final deficiency payments that part or
all of the producer's production was (or will be) sold
or used for nonmalting purposes. The portion certified
as sold or used for nonmalting purposes shall not be
subject to the assessment. The Secretary may require
producers to provide to the Secretary such
documentation as the Secretary considers appropriate to
carry out this paragraph.
[(q) Price Support for High Moisture Feed Grains.--
[(1) Recourse loans.--Notwithstanding any other
provision of law, effective for each of the 1991
through 1995 crops of feed grains, the Secretary
(through the Commodity Credit Corporation) shall make
available recourse loans, as determined by the
Secretary, to producers on a farm who--
[(A) normally harvest all or a portion of
their crop of feed grains in a high moisture
state, hereinafter in this subsection defined
as a feed grain having a moisture content in
excess of Commodity Credit Corporation
standards for loans made by the Secretary under
paragraphs (1) and (6) of subsection (a);
[(B)(i) present certified scale tickets from
an inspected, certified commercial scale,
including licensed warehouses, feedlots, feed
mills, distilleries, or other similar entities
approved by the Secretary, pursuant to
regulations issued by the Secretary; or
[(ii) present field or other physical
measurements of the standing or stored feed
grain crop in regions of the country, as
determined by the Secretary, that do not have
certified commercial scales from which
certified scale tickets may be obtained within
reasonable proximity of harvest operation;
[(C) certify that they were the owners of the
feed grain at the time of delivery to, and that
the quantity to be placed under loan was in
fact harvested on the farm and delivered to, a
feedlot, feed mill, or commercial or on-farm
high-moisture storage facility, or to such
facilities maintained by the users of such
high-moisture feed grain;
[(D) comply with deadlines established by the
Secretary for harvesting the feed grain and
submit applications for loans within deadlines
established by the Secretary; and
[(E) participate in an acreage limitation
program for the crop of feed grains established
by the Secretary.
[(2) Eligibility of acquired feed grains.--The loans
shall be made on a quantity of feed grains of the same
crop acquired by the producer equivalent to a quantity
determined by multiplying--
[(A) the acreage of the feed grain in a high
moisture state harvested on the producer's
farm; by
[(B) the lower of the farm program payment
yield or the actual yield on a field, as
determined by the Secretary, that is similar to
the field from which such high moisture feed
grain was obtained.
[(r) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1995 crops
of feed grains.
[Sec. 106. Notwithstanding any of the provisions of section
101 of this Act: (a) For the 1960 crop of any kind of tobacco
for which marketing quotas are in effect, or for which
marketing quotas are not disapproved by producers, the support
level in cents per pound shall be the level at which the 1959
crop of such kind of tobacco was supported, or if marketing
quotas were disapproved for the 1959 crop of such kind of
tobacco, the level at which the 1959 crop of such kind of
tobacco would have been supported if marketing quotas had been
in effect. (b) For the 1961 crop and each subsequent crop of
any kind of tobacco for which marketing quotas are in effect,
or for which marketing quotas are not disapproved by producers,
the support level in cents per pound shall be determined by
adjusting the support level for the 1959 crop of such kind of
tobacco, or if marketing quotas were disapproved for the 1959
crop of such kind of tobacco, the level at which the 1959 crop
of such kind of tobacco would have been supported if marketing
quotas had been in effect, by multiplying such support level
for the 1959 crop by the ratio of (i) the average of the index
of prices paid by farmers, including wage rates, interest, and
taxes, as defined in section 301(a)(1)(C) of the Agricultural
Adjustment Act of 1938, as amended, for the three calendar
years immediately preceding the calendar year in which the
marketing year begins for the crop for which the support level
is being determined to (ii) the average index of such prices
paid by farmers, including wage rates, interest, and taxes for
the calendar year 1959.
[(c) If acreage poundage or poundage farm marketing quotas
are in effect under section 317 or 319 of the Agricultural
Adjustment Act of 1938, as amended, (1) price support shall not
be made available on tobacco marketed in excess of 103 per
centum of the marketing quota (after adjustments) for the farm
on which such tobacco was produced, and (2) for the purpose of
price-support eligibility, tobacco carried over from one
marketing year to another shall, when marketed, be considered
tobacco of the then current crop.
[(d) Notwithstanding the provisions of section 403, if the
Secretary determines that the supply of any grade of any kind
of tobacco of a crop for which marketing quotas are in effect
or are not disapproved by producers will likely be excessive,
the Secretary, after prior consultation with the association
through which price support for the grade and kind of tobacco
is made available to producers, may reduce the support rate
which would otherwise be established for such grade of tobacco
after taking into consideration the effect such reduction may
have on the supply and price of other grades of other kinds of
quota tobacco: Provided, That the weighted average of the
support rates for all eligible grades of such kind of tobacco
shall, after such reduction, reflect not less than (1) 65 per
centum of the increase in the support level for such kind of
tobacco which would otherwise be established under this
section, if the support level therefor is higher than the
support level for the preceding crop, or (2) the support level
for such kind of tobacco established under this section, if the
support level therefor is not higher than the support level for
the preceding crop. In determining whether the supply of any
grade of any kind of tobacco of a crop will be excessive, the
Secretary shall take into consideration the domestic supply,
including domestic inventories, the amount of such tobacco
pledged as security for price support loans, and anticipated
domestic and export demand, based on the maturity, uniformity
and stalk position of such tobacco.
[(f) Notwithstanding the foregoing provisions of this
section--
[(6)(A) Except as provided in subparagraph (B), for
the 1986 and each subsequent crop of any kind of
tobacco (other than Flue-cured and Burley tobacco) for
which marketing quotas are in effect or are not
disapproved by producers, the support level shall be
the level in cents per pound at which the immediately
preceding crop was supported, plus or minus,
respectively, the amount by which--
[(i) the support level for the crop for which
the determination is being made, as determined
under subsection (b); is greater or less than
[(ii) the support level for the immediately
preceding crop, as determined under subsection
(b),
as that difference may be adjusted by the Secretary
under subsection (d) if the support level under clause
(i) is greater than the support level under clause
(ii).
[(B) Notwithstanding subparagraph (A) and subsection
(d), if requested by the board of directors of an
association through which price support for the
respective kind of tobacco specified in subparagraph
(A) is made available to producers, the Secretary may
reduce the support level for such kind of tobacco to
the extent requested by the association to more
accurately reflect the market value and improve the
marketability of such tobacco.
[(7)(A) For the 1987 and each subsequent crop of
Flue-cured and Burley tobacco for which marketing
quotas are in effect or are not disapproved by
producers, the support level shall be the level in
cents per pound at which the immediately preceding crop
was supported, plus or minus, respectively, an
adjustment of not less than 65 percent nor more than
100 percent of the total, as determined by the
Secretary after taking into consideration the supply of
the kind of tobacco involved in relation to demand,
of--
[(i) 66.7 percent of the amount by which--
[(I) the average price received by
producers for Flue-cured and Burley
tobacco, respectively, on the United
States auction markets, as determined
by the Secretary, during the 5
marketing years immediately preceding
the marketing year for which the
determination is being made, excluding
the year in which the average price was
the highest and the year in which the
average price was the lowest in such
period, is greater or less than
[(II) the average price received by
producers for Flue-cured and Burley
tobacco, respectively, on the United
States auction markets, as determined
by the Secretary, during the 5
marketing years immediately preceding
the marketing year prior to the
marketing year for which the
determination is being made, excluding
the year in which the average price was
the highest and the year in which the
average price was the lowest in such
period; and
[(ii) 33.3 percent of the change, expressed
as a cost per pound of tobacco, in the index of
prices paid by tobacco producers from January 1
to December 31 of the calendar year immediately
preceding the year in which the determination
is made.
[(B) For purposes of subparagraph (A)--
[(i) the average market price for Burley
tobacco for the 1985 marketing year shall be
reduced by $0.039 per pound;
[(ii) the average market price for Burley
tobacco for the 1984 and each prior applicable
marketing year shall be reduced by $0.30 per
pound;
[(iii) the average market price for Flue-
cured tobacco for the 1985 marketing year shall
be reduced by $0.25 per pound;
[(iv) the average market price for Flue-cured
tobacco for the 1984 and each prior applicable
marketing year shall be reduced by $0.30 per
pound; and
[(v) the index of prices paid by tobacco
producers shall include items representing
general, variable costs of producing tobacco,
as determined by the Secretary, but shall not
include the cost of land, risk, overhead,
management, purchase or leasing of quotas,
marketing contributions or assessments, and
other costs not directly related to the
production of tobacco.
[(8)(A) Notwithstanding any other provision of this
subsection, in the case of each of the 1988 and 1989
crops of any kind of tobacco, the Secretary shall
reduce the support level for such crop by an amount
equal to 1.4 percent of the level otherwise established
under this subsection. Any such reduction shall not be
taken into consideration in determining the support
level for a subsequent crop of tobacco.
[(B) In lieu of making any such reduction, the
Secretary may impose assessments on the producers and
purchasers in an amount sufficient to realize a
reduction in outlays equal to the amount that would
have been achieved as a result of the reduction
required under subparagraph (A). Such assessments shall
not apply to purchasers if it is judicially determined
that the imposition of the purchaser assessment will
adversely affect the contracts entered into under
section 1109 of the Consolidated Omnibus Budget
Reconciliation Act of 1986 (7 U.S.C. 1445-3).
[(g)(1) Effective only for each of the 1994 through 1998
crops of tobacco for which price support is made available
under this Act, each producer and purchaser of such tobacco,
and each importer of the same kind of tobacco, shall remit to
the Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
[(A) in the case of a producer or purchaser
of domestic tobacco, .5 percent of the national
price support level for each such crop; and
[(B) in the case of an importer of tobacco, 1
percent of the national support price for the
same kind of tobacco;
as provided for in this section.
[(2) Such producer, purchaser, and importer assessments shall
be--
[(A) collected in the same manner as provided for in
section 106A(d)(2) or 106B(d)(3), as applicable; and
[(B) enforced in the same manner as provided in
section 106A(h) or 106B(j), as applicable.
[(3) The Secretary may enforce this subsection in the courts
of the United States.
[PRODUCER CONTRIBUTIONS AND PURCHASER ASSESSMENTS FOR NO NET COST
TOBACCO FUND
[Sec. 106A. (a) As used in the section--
[(1) the term ``association'' means a producer-owned
cooperative marketing association which has entered
into a loan agreement with the Corporation to make
price support available to producers;
[(2) the term ``Corporation'' means the Commodity
Credit Corporation, an agency and instrumentality of
the United States within the Department of Agriculture
through which the Secretary makes price support
available to producers;
[(3) the term ``Fund'' means the capital account to
be established within each association, which account
shall be known as the ``No Net Cost Tobacco Fund'';
[(4) the term ``to market'' means to dispose of quota
tobacco by voluntary or involuntary sale, barter,
exchange, gift inter vivos, or consigning the tobacco
to an association for a price support advance;
[(5) the term ``net gains'' means the amount by which
total proceeds obtained from the sale by an association
of a crop of quota tobacco pledged to the Corporation
for price support loan exceeds the principal amount of
the price support loan made by the Corporation to the
association on such crop, plus interest and charges;
[(6) the term ``purchaser'' means any person who
purchases in the United States, either directly or
indirectly for the account of such person or another
person, Flue-cured or Burley quota tobacco; and
[(7) the term ``quota tobacco'' means any kind of
tobacco for which marketing quotas are in effect or for
which marketing quotas are not disapproved by
producers.
[(b) The Secretary may carry out the tobacco price support
program through the Corporation and shall, except as otherwise
provided by this section, continue to make price support
available to producers through loans to associations that,
under agreements with the Corporation, agree to make loan
advances to producers.
[(c) Each association shall establish within the association
a Fund. The Fund shall be comprised of amounts contributed by
producer-members or paid by or on behalf of purchasers and
importers as provided in subsection (d).
[(d) The Secretary shall--
[(1) require--
[(A) that--
[(i) as a condition of eligibility
for price support, each producer of
each kind of quota tobacco shall agree,
with respect to all such kind of quota
tobacco marketed by the producer from a
farm, to contribute to the appropriate
association, for deposit in the
association's Fund, an amount
determined from time to time by the
association with the approval of the
Secretary;
[(ii) each purchaser of Flue-cured
and Burley quota tobacco shall pay to
the appropriate association, for
deposit in the Fund of the association,
an assessment, in an amount determined
from time to time by the association
with the approval of the Secretary,
with respect to purchases of all such
kind of tobacco marketed by a producer
from a farm (including purchases of
such tobacco from the 1986 and
subsequent crops from the association);
and
[(iii) each importer of Flue-cured or
Burley tobacco shall pay to the
appropriate association, for deposit in
the Fund of the association, an
assessment, in an amount that is equal
to the product obtained by
multiplying--
[(I) the number of pounds of
tobacco that is imported by the
importer; by
[(II) the sum of the amount
of per pound producer
contributions and purchaser
assessments that are payable by
domestic producers and
purchasers of Flue-cured and
Burley tobacco under clauses
(i) and (ii); and
[(B) that, upon making a contribution under
subparagraph (A)--
[(i) in the case of quota tobacco
marketed other than by consignment to
an association for a price support
advance, the producer shall receive
from the association capital stock or,
if the association does not issue such
stock, a capital certificate having a
par value or face amount, respectively,
equal to the contribution; and
[(ii) in the case of quota tobacco
consigned by the producer to an
association for a price support
advance, the producer shall receive
from the association a qualified per
unit retain certificate, as defined in
section 1388(h) of the Internal Revenue
Code, having a face amount equal to the
amount of the contribution and
representing an interest in the
association's Fund.
The amount of producer contributions and purchaser
assessments shall be determined in such a manner that
producers and purchasers share equally, to the maximum
extent practicable, in maintaining the Fund of an
association. In making such determination with respect
to the assessment of a purchaser, only 1985 and
subsequent crops of Flue-cured and Burley quota tobacco
shall be taken into account. The Secretary shall
approve the amount of the contributions and assessments
determined by an association from time to time under
this paragraph only if the Secretary determines that
such amount will result in accumulation of a Fund
adequate to reimburse the Corporation for any net
losses which the Corporation may sustain under its loan
agreements with the association, based on reasonable
estimates of the amounts which the Corporation will
lend to the association under such agreements and the
proceeds which will be realized from the sales of
tobacco which are pledged to the Corporation by the
association as security for loans;
[(2) require that any producer contribution or
purchaser or importer assessment due under paragraph
(1) shall be collected--
[(A) from the person who acquired the tobacco
involved from the producer, except that if the
tobacco is marketed by sale, an amount equal to
the producer contribution may be deducted by
the purchaser from the price paid to such
producer;
[(B) if the tobacco involved is marketed by a
producer through a warehouseman or agent, from
such warehouseman or agent, who may--
[(i) deduct an amount equal to the
producer contribution from the price
paid to the producer; and
[(ii) add an amount equal to the
purchaser assessment to the price paid
by the purchaser;
[(C) if the tobacco involved is marketed by a
producer directly to any person outside the
United States, from the producer, who may add
an amount equal to the purchaser assessment to
the price paid by the purchaser; and
[(D) if the tobacco involved is imported by
an importer, from the importer.
[(3) require that the Fund established by each
association shall be kept and maintained separate from
all other accounts of the association and shall be used
exclusively, as prescribed by the Secretary, for the
purpose of ensuring, insofar as practicable, that the
Corporation, under its loan agreements with the
association with respect to 1982 and subsequent crops
of quota tobacco, will suffer no net losses (including,
but not limited to, recovery of the amount of loans
extended to cover the overhead costs of the
association), after any net gains are applied to net
losses of the corporation under paragraph (5):
Provided, That, notwithstanding any other provision of
law, use by the association of moneys in the Fund,
including interest and other earnings, for the purposes
of reducing the association's outstanding indebtedness
to the Corporation associated with 1982 and subsequent
crops of quota tobacco and making loan advances to
producers is authorized, and use of such moneys for any
other purposes that will be mutually beneficial to
producers and purchasers who contribute or pay to the
Fund and to the Corporation, shall, if approved by the
Secretary, be considered an appropriate use of the
Fund;
[(4) permit an association to invest the monies in
the Fund in such manner as the Secretary may approve,
and require that the interest or other earnings on such
investment shall become a part of the Fund;
[(5) require that loan agreements between the
Corporation and the association provide that the
Corporation shall retain the net gains from each of the
1982 and subsequent crops of tobacco pledged by the
association as security for price support loans, and
that such net gains will be used for the purpose of (A)
offsetting any losses sustained by the Corporation
under its loan agreements with the association for any
of the 1982 and subsequent crops of loan tobacco, or
(B) reducing the outstanding balance of any price
support loan made by the Corporation to the association
under such agreements for 1982 and subsequent crops of
tobacco, or for both such purposes;
[(7) effective for the 1986 and subsequent crops of
quota tobacco, provide, in loan agreements between the
Corporation and an association, that if the Secretary
determines that the amount in the Fund or the net gains
referred to in paragraph (5) exceeds the amounts
necessary for the purposes specified in this section,
the association, with the approval of the Secretary,
may suspend the payment and collection of contributions
and assessments under this section on terms and
conditions established by the association, with the
approval of the Secretary.
[(e) If any association which has entered into a loan
agreement with the Corporation with respect to 1982 or
subsequent crops of quota tobacco fails or refuses to comply
with the provisions of this section, the regulations issued by
the Secretary thereunder, or the terms of such agreement, the
Secretary may terminate such agreement or provide that no
additional loan funds may be made available thereunder to the
association. In such event, the Secretary shall make price
support available to producers of the kind or kinds of tobacco,
the price of which had been supported through loans to such
association, through such other means as are authorized by this
Act or the Commodity Credit Corporation Charter Act.
[(f) If, under subsection (e), a loan agreement with an
association is terminated, or if an association having a loan
agreement with the Corporation is dissolved, merges with
another association, or otherwise ceases to operate, the Fund
or the net gains referred to in subsection (d)(5) shall be
applied or disposed of in such manner as the Secretary may
approve or prescribe, except that they shall, to the extent
necessary, first be applied or used for the purposes therefor
prescribed in this section.
[(g) The Secretary shall issue regulations necessary to carry
out the provisions of this section.
[(h)(1)(A) Each person who fails to collect any contribution
or assessment as required by subsection (d)(2) and remit such
contribution or assessment to the association, at such time and
in such manner as may be prescribed by the Secretary, shall be
liable, in addition to any amount due, to a marketing penalty
at a rate equal to 75 percent of the average market price
(calculated to the nearest whole cent) for the kind of tobacco
involved for the immediately preceding year on the quantity of
tobacco as to which the failure occurs.
[(B) Each importer who fails to pay to the association an
assessment as required by subsection (d)(2) at such time and in
such manner as may be prescribed by the Secretary, shall be
liable, in addition to any amount due, for a marketing penalty
at a rate equal to 75 percent of the average market price
(calculated to the nearest whole cent) for the respective kind
of tobacco for the immediately preceding year on the quantity
of tobacco as to which the failure occurs.
[(C) The Secretary may reduce any such marketing penalty in
such amount as the Secretary determines equitable in any case
in which the Secretary determines that the failure was
unintentional or without knowledge on the part of the person
concerned.
[(D) Any penalty provided for under this paragraph shall be
assessed by the Secretary after notice and opportunity for a
hearing.
[(2)(A) Any person against whom a penalty is assessed under
this subsection may obtain review of such penalty in an
appropriate district court of the United States by filing a
civil action in such court not later than 30 days after such
penalty is imposed.
[(B) The Secretary shall promptly file in such court a
certified copy of the record on which the penalty is based.
[(3) The district courts of the United States shall have
jurisdiction to review and enforce any penalty imposed under
this subsection.
[(4) An amount equivalent to any penalty collected by the
Secretary under this subsection shall be transmitted by the
Secretary to the appropriate association, for deposit in the
Fund of such association.
[(5) The remedies provided in this subsection shall be in
addition to, and not exclusive of, other remedies that may be
available.
[MARKETING ASSESSMENTS TO NO NET COST TOBACCO ACCOUNT
[Sec. 106B. (a) As used in this section--
[(1) the term ``association'' means a producer-owned
cooperative marketing association which has entered
into a loan agreement with the Corporation to make
price support available to producers of a kind of
tobacco;
[(2) the term ``Account'' means an account
established by and in the Corporation for an
association, which account shall be known as the ``No
Net Cost Tobacco Account'';
[(3) the term ``to market'' means to dispose of
tobacco by voluntary or involuntary sale, barter,
exchange, gift inter vivos, or consigning the tobacco
to an association for a price support advance;
[(4) the term ``net gains'' means the amount by which
total proceeds obtained from the sale by an association
of a crop of a kind of tobacco pledged to the
Corporation for price support loan exceeds the
principal amount of the price support loan made by the
Corporation to the association on such crop, plus
interest and charges;
[(5) the term ``tobacco'' means any kind of tobacco
as defined in section 301(b)(15) of the Agricultural
Adjustment Act of 1938, for which marketing quotas are
in effect or for which marketing quotas are not
disapproved by producers;
[(6) the term ``area'', when used in connection with
an association, means the general geographical area in
which farms of the producer-members of such association
are located, as determined by the Secretary;
[(7) the term ``Corporation'' shall have the meaning
given to it in section 106A(a)(2); and
[(8) the term ``purchaser'' means any person who
purchases in the United States, either directly or
indirectly for the account of such person or another
person, Flue-cured or Burley quota tobacco.
[(b) Notwithstanding section 106A, the Secretary shall, upon
the request of any association, and may, if the Secretary
determines, after consultation with such association, that the
accumulation of the No Net Cost Tobacco Fund for such
association under section 106A is, and is likely to remain,
inadequate to reimburse the Corporation for net losses which
the Corporation sustains under its loan agreement with such
association--
[(1) continue to make price support available to
producers through such association in accordance with
loan agreements entered into between the Corporation
and such association; and
[(2) establish and maintain in accordance with this
section a No Net Cost Tobacco Account for such
association in lieu of the No Net Cost Tobacco Fund
established within such association under section 106A.
[(c)(1) Any Account established for an association under
subsection (b)(2) shall be established within the Corporation
and shall be comprised of amounts paid by producers,
purchasers, and importers under subsection (d).
[(2) Upon the establishment of an Account for an association,
any amount in the No Net Cost Tobacco Fund established within
such association under section 106A shall be applied or
disposed of in such manner as the Secretary may approve or
prescribe, except that such amount shall, to the extent
necessary, first be applied or used for the purposes therefor
prescribed in such section.
[(d)(1)(A) If an Account is established for an association
under subsection (b)(2), then the Secretary shall require (in
lieu of any requirement under section 106A(d)(1)) that each
producer of the kind of tobacco involved whose farm is within
such association's area shall, as a condition of eligibility
for price support, agree, with respect to all of such kind of
tobacco marketed by the producer from the farm, to pay to the
Corporation, for deposit in such association's Account,
marketing assessments as determined under paragraph (2) and
collected under paragraph (3).
[(B) The Secretary shall also require (in lieu of any
requirement under section 106A(d)(1)) that each purchaser of
Flue-cured and Burley quota tobacco shall pay to the
Corporation, for deposit in the Account of such association, an
assessment, as determined under paragraph (2) and collected
under paragraph (3), with respect to purchases of all such kind
of tobacco marketed by a producer from a farm (including
purchases of such tobacco from the 1986 and subsequent crops
from the association).
[(C) The Secretary shall also require (in lieu of any
requirement under section 106A(d)(1)) that each importer of
Flue-cured and Burley tobacco shall pay to the Corporation, for
deposit in the Account of the association, an assessment, as
determined under paragraph (2) and collected under paragraph
(3), with respect to purchases of all such kinds of tobacco
imported by the importer.
[(2)(A) For purposes of paragraph (1), the Secretary shall
determine and adjust from time to time, in consultation with
such association, the amount of the marketing assessment which
shall be imposed, as a condition of eligibility for price
support, on each pound of the kind of tobacco involved marketed
by a producer from a farm within such association's area and
the amount of the assessment to be paid by purchasers of
tobacco. The amount of the assessment to be paid by producers
and purchasers shall be determined in such a manner that
producers and purchasers share equally, to the maximum extent
practicable, in maintaining the Account of an association. In
making such determination with respect to the assessment of a
purchaser, only 1985 and subsequent crops of Flue-cured and
Burley quota tobacco shall be taken into account. The amount of
the assessment shall be equal to an amount which, when
collected, will result in an accumulation of an Account for
such association adequate to reimburse the Corporation for any
net losses which the Corporation may sustain under its loan
agreements with such association, based on reasonable estimates
of the amounts which the Corporation will lend to such
association under such agreements and the proceeds which will
be realized from the sales of the kind of tobacco involved
which are pledged to the Corporation by such association as
security for loans. Notwithstanding the foregoing provisions of
this paragraph, the amount of any assessment that is determined
by the Secretary for the 1986 and subsequent crops of Burley
quota tobacco shall be determined without regard to any net
losses that the Corporation may sustain under the loan
agreements of the Corporation with such association with
respect to the 1983 crop of such tobacco.
[(C) The amount of the assessment to be paid by importers
shall be an amount that is equal to the product obtained by
multiplying--
[(i) the number of pounds of tobacco that is imported
by the importer; by
[(ii) the sum of the amount of per pound producer and
purchaser assessments that are payable by domestic
producers and purchasers of the respective kind of
tobacco under this paragraph.
[(3)(A) Except as provided in subparagraphs (B) and (C), any
assessment to be paid by a producer or a purchaser under
paragraph (1) shall be collected from the person who acquired
the tobacco involved from such producer, except that if the
tobacco is marketed by sale, an amount equal to the producer
assessment may be deducted by the purchaser from the price paid
to such producer.
[(B) If tobacco of the kind for which an Account is
established is marketed by a producer through a warehouseman or
agent, both the producer and the purchaser assessment shall be
collected from such warehouseman or agent, who may--
[(i) deduct an amount equal to the producer
assessment from the price paid to the producer; and
[(ii) add an amount equal to the purchaser assessment
to the price paid by the purchaser.
[(C) If tobacco of the kind for which an Account is
established is marketed by a producer directly to any person
outside the United States, both the producer and the purchaser
assessment shall be collected from the producer, who may add an
amount equal to the purchaser assessment to the price paid by
the purchaser.
[(D) If Flue-cured or Burley tobacco is imported by an
importer, any importer assessment required by subsection (d)
shall be collected from the importer.
[(e) Amounts deposited in an Account established for an
association shall be used by the Secretary for the purpose of
ensuring, insofar as practicable, that the Corporation under
its loan agreements with such association will suffer, with
respect to the crop involved, no net losses (including, but not
limited to, recovery of the amount of loans extended to cover
the overhead costs of the association), after any net gains are
applied to net losses of the Corporation pursuant to subsection
(h).
[(f) The Secretary shall provide, in any loan agreement
between the Corporation and an association for which an Account
has been established under subsection (b)(2), that if the
Secretary determines that the amount in such Account or the net
gains referred to in subsection (h) exceed the amounts
necessary for the purposes of this section, then the Secretary,
in consultation with such association, may suspend the payment
and collection of marketing assessments under this section upon
terms and conditions established by the Secretary.
[(g) With respect to any association for which an Account is
established under subsection (b)(2), if a loan agreement
between the Corporation and such association is terminated, if
such association is dissolved or merges with another
association that has entered into a loan agreement with the
Corporation to make price support available to producers of the
kind of tobacco involved, or if such Account terminates by
operation of law, then amounts in such Account and the net
gains referred to in subsection (h) shall be applied to or
disposed of in such manner as the Secretary may prescribe,
except that they shall, to the extent necessary, first be
applied to or used for the purposes therefor prescribed in this
section.
[(h) The provisions of section 106A(d)(5) relating to net
gains shall apply to any loan agreement between an association
and the Corporation entered into upon or after the
establishment of an Account for such association under
subsection (b)(2).
[(i) The Secretary shall issue regulations necessary to carry
out the provisions of this section.
[(j)(1)(A) Each person who fails to collect any assessment as
required by subsection (d)(3) and remit such assessment to the
Corporation, at such time and in such manner as may be
prescribed by the Secretary, shall be liable, in addition to
any amount due, to a marketing penalty at a rate equal to 75
percent of the average market price (calculated to the nearest
whole cent) for the kind of tobacco involved for the
immediately preceding year on the quantity of tobacco as to
which the failure occurs.
[(B) Each importer who fails to pay to the Corporation an
assessment as required by subsection (d) at such time and in
such manner as may be prescribed by the Secretary, shall be
liable, in addition to any amount due, to a marketing penalty
at a rate equal to 75 percent of the average market price
(calculated to the nearest whole cent) for the respective kind
of tobacco for the immediately preceding year on the quantity
of tobacco as to which the failure occurs.
[(C) The Secretary may reduce any such marketing penalty in
such amount as the Secretary determines equitable in any case
in which the Secretary determines that the failure was
unintentional or without knowledge on the part of the person
concerned.
[(D) Any penalty provided for under this paragraph shall be
assessed by the Secretary after notice and opportunity for a
hearing.
[(2)(A) Any person against whom a penalty is assessed under
this subsection may obtain review of such penalty in an
appropriate district court of the United States by filing a
civil action in such court not later than 30 days after such
penalty is imposed.
[(B) The Secretary shall promptly file in such court a
certified copy of the record on which the penalty is based.
[(3) The district courts of the United States shall have
jurisdiction to review and enforce any penalty imposed under
this subsection.
[(4) An amount equivalent to any penalty collected by the
Secretary under this subsection shall be transmitted by the
Secretary to the Corporation, for deposit in the Account of the
appropriate association.
[(5) The remedies provided in this subsection shall be in
addition to, and not exclusive of, other remedies that may be
available.
[Sec. 107. Notwithstanding the provisions of section 101 of
this Act, beginning with the 1964 crop--
[(1) Price support for wheat accompanied by domestic
certificates shall be at such level not less than 65
per centum or more than 90 per centum of the parity
price therefor as the Secretary determines appropriate,
taking into consideration the factors specified in
section 401(b).
[(2) Price support for wheat accompanied by export
certificates shall be at such level not more than 90
per centum of the parity price therefor as the
Secretary determines appropriate, taking into
consideration the factors specified in section 401(b).
[(3) Price support for wheat not accompanied by
marketing certificates shall be at such level, not in
excess of 90 per centum of the parity price therefor,
as the Secretary determines appropriate, taking into
consideration competitive world prices of wheat, the
feeding value of wheat in relation to feed grains, and
the level at which price support is made available for
feed grains.
[(4) Price support shall be made available only to
cooperators: and, if a commercial wheat-producing area
is established for such crop, price support shall be
made available only in the commercial wheat-producing
area.
[(5) Effective with respect to crops planted for
harvest in the calendar year 1966 and any subsequent
year, the level of price support for any crop of wheat
for which a national marketing quota is not proclaimed
or for which marketing quotas have been disapproved by
producers shall be as provided in section 101.
[(6) A ``cooperator'' with respect to any crop of
wheat produced on a farm shall be a producer who (i)
does not knowingly exceed (A) the farm acreage
allotment for wheat on the farm or (B) except as the
Secretary may by regulation prescribe, the farm acreage
allotment for wheat on any other farm on which the
producer shares in the production of wheat, and (ii)
complies with the land-use requirements of section 339
of the Agricultural Adjustment Act of 1938, as amended,
to the extent prescribed by the Secretary. Effective
with respect to crops planted for harvest in the
calendar year 1966 and any subsequent year, if
marketing quotas are not in effect for the crop of
wheat, a ``cooperator'' with respect to any crop of
wheat produced on a farm shall be a producer who does
not knowingly exceed the farm acreage allotment for
wheat. No producer shall be deemed to have exceeded a
farm acreage allotment for wheat if the entire amount
of the farm marketing excess is delivered to the
Secretary or stored in accordance with applicable
regulations to avoid or postpone payment of the
penalty, but the producer shall not be eligible to
receive price support on such marketing excess. No
producer shall be deemed to have exceeded the farm
acreage allotment for wheat on any other farm, if such
farm is exempt from the marketing quota for such crop
under section 335. No producer shall be deemed to have
exceeded a farm acreage allotment for wheat if the
production on the acreage in excess of the farm acreage
allotment is stored pursuant to the provisions of
section 379c(b), but the producer shall not be eligible
to receive support on the wheat so stored.
[SEC. 107B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE
1991 THROUGH 1995 CROPS OF WHEAT.
[(a) Loans and Purchases.--
[(1) In general.--Except as otherwise provided in
this subsection, the Secretary shall make available to
producers on a farm loans and purchases for each of the
1991 through 1995 crops of wheat produced on the farm
at such level as the Secretary determines will maintain
the competitive relationship of wheat to other grains
in domestic and export markets after taking into
consideration the cost of producing wheat, supply and
demand conditions, and world prices for wheat.
[(2) Minimum loan and purchase level.--Except as
provided in paragraphs (3) and (4), the loan and
purchase level determined under paragraph (1) shall not
be less than 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the marketing years for the
immediately preceding 5 crops of wheat, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in such
period, except that the loan and purchase level for a
crop determined under this paragraph may not be reduced
by more than 5 percent from the level determined for
the preceding crop.
[(3) Adjustments to support level.--
[(A) Stocks to use ratio.--If the Secretary
estimates for any marketing year that the ratio
of ending stocks of wheat to total use for the
marketing year will be--
[(i) equal to or greater than 30
percent, the Secretary may reduce the
loan and purchase level for wheat for
the corresponding crop by an amount not
to exceed 10 percent in any year;
[(ii) less than 30 percent but not
less than 15 percent, the Secretary may
reduce the loan and purchase level for
wheat for the corresponding crop by an
amount not to exceed 5 percent in any
year; or
[(iii) less than 15 percent, the
Secretary may not reduce the loan and
purchase level for wheat for the
corresponding crop.
[(B) Report to congress.--
[(i) In general.--If the Secretary
adjusts the level of loans and
purchases for wheat under subparagraph
(A), the Secretary shall submit to the
Committee on Agriculture of the House
of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of
the Senate a report--
[(I) certifying such
adjustment as necessary to
prevent the accumulation of
stocks and to retain market
share; and
[(II) containing a
description of the need for
such adjustment.
[(ii) Effective date of adjustment.--
The adjustment shall become effective
no earlier than 60 calendar days after
the date of submission of the report to
the Committees, except that in the case
of the 1991 crop of wheat, the
adjustment shall become effective on
the date of the submission of the
report.
[(C) Competitive position.--Notwithstanding
subparagraph (A), if the Secretary determines,
not later than 60 days prior to the beginning
of a marketing year for a crop, that the
effective loan rate established for such crop
will not maintain a competitive market position
for wheat, the Secretary may reduce the loan
and purchase level for wheat for the marketing
year by an amount, in addition to any reduction
under subparagraph (A), not to exceed 10
percent in any year.
[(D) No effect on future years.--Any
reduction in the loan and purchase level for
wheat under this paragraph shall not be
considered in determining the loan and purchase
level for wheat for subsequent years.
[(E) Minimum loan rate.--Notwithstanding
subparagraph (A), the loan rate for wheat shall
not be less than $2.44 per bushel, unless such
rate would exceed 80 percent of the 5-year
average market price determination.
[(4) Marketing loan provisions.--
[(A) In general.--The Secretary may permit a
producer to repay a loan made under this
subsection for a crop at a level (except as
provided in subparagraph (C)) that is the
lesser of--
[(i) the loan level determined for
the crop;
[(ii) the higher of--
[(I) 70 percent of such
level;
[(II) if the loan level for a
crop was reduced under
paragraph (3), 70 percent of
the loan level that would have
been in effect but for the
reduction under paragraph (3);
or
[(iii) the prevailing world market
price for wheat (adjusted to United
States quality and location), as
determined by the Secretary.
[(B) Prevailing world market price.--If the
Secretary permits a producer to repay a loan in
accordance with subparagraph (A), the Secretary
shall prescribe by regulation--
[(i) a formula to determine the
prevailing world market price for
wheat, adjusted to United States
quality and location; and
[(ii) a mechanism by which the
Secretary shall announce periodically
the prevailing world market price for
wheat.
[(C) Alternative repayment rates.--For each
of the 1991 through 1995 crops of wheat, if the
world market price for wheat (adjusted to
United States quality and location) as
determined by the Secretary, is less than the
loan level determined for the crop, the
Secretary may permit a producer to repay a loan
made under this subsection for a crop at such
level (not in excess of the loan level
determined for the crop) as the Secretary
determines will--
[(i) minimize potential loan
forfeitures;
[(ii) minimize the accumulation of
wheat stocks by the Federal Government;
[(iii) minimize the cost incurred by
the Federal Government in storing
wheat; and
[(iv) allow wheat produced in the
United States to be marketed freely and
competitively, both domestically and
internationally.
[(5) Simple average price.--For purposes of this
section, the simple average price received by producers
for the immediately preceding marketing year shall be
based on the latest information available to the
Secretary at the time of the determination.
[(b) Loan Deficiency Payments.--
[(1) In general.--The Secretary may, for each of the
1991 through 1995 crops of wheat, make payments
(hereafter in this section referred to as ``loan
deficiency payments'') available to producers who,
although eligible to obtain a loan or purchase
agreement under subsection (a), agree to forgo
obtaining the loan or agreement in return for payments
under this subsection.
[(2) Computation.--A payment under this subsection
shall be computed by multiplying--
[(A) the loan payment rate; by
[(B) the quantity of wheat the producer is
eligible to place under loan (or obtain a
purchase agreement) but for which the producer
forgoes obtaining the loan or agreement in
return for payments under this subsection.
[(3) Loan payment rate.--For purposes of this
subsection, the loan payment rate shall be the amount
by which--
[(A) the loan level determined for the crop
under subsection (a); exceeds
[(B) the level at which a loan may be repaid
under subsection (a).
[(c) Payments.--
[(1) Deficiency payments.--
[(A) In general.--The Secretary shall make
available to producers payments (hereafter in
this section referred to as ``deficiency
payments'') for each of the 1991 through 1995
crops of wheat in an amount computed by
multiplying--
[(i) the payment rate; by
[(ii) the payment acres for the crop;
by
[(iii) the farm program payment yield
established for the crop for the farm.
[(B) Payment rate.--
[(i) Payment rate for 1991 through
1993 crops.--The payment rate for each
of the 1991 through 1993 crops of wheat
shall be the amount by which the
established price for the crop of wheat
exceeds the higher of--
[(I) the national weighted
average market price received
by producers during the first 5
months of the marketing year
for the crop, as determined by
the Secretary; or
[(II) the loan level
determined for the crop, prior
to any adjustment made under
subsection (a)(3) for the
marketing year for the crop of
wheat.
[(ii) Payment rate of 1994 and 1995
crops.--The payment rate for each of
the 1994 and 1995 crops of wheat shall
be the amount by which the established
price for the crop of wheat exceeds the
higher of--
[(I) the lesser of--
[(aa) the national
weighted average market
price received by
producers during the
marketing year for the
crop, as determined by
the Secretary; or
[(bb) the national
weighted average market
price received by
producers during the
first 5 months of the
marketing year for the
crop, as determined by
the Secretary, plus 10
cents per bushel; or
[(II) the loan level
determined for the crop, prior
to any adjustment made under
subsection (a)(3) for the
marketing year for the crop of
wheat.
[(iii) Minimum established price.--
The established price for wheat shall
not be less than $4.00 per bushel for
each of the 1991 through 1995 crops.
[(C) Payment acres.--Payment acres for a crop
shall be the lesser of--
[(i) the number of acres planted to
the crop for harvest within the
permitted acreage; or
[(ii) 85 percent of the crop acreage
base for the crop for the farm less the
quantity of reduced acreage (as
determined under subsection (e)(2)(D)).
[(D) Emergency compensation.--
[(i) In general.--Notwithstanding the
foregoing provisions of this section,
if the Secretary adjusts the level of
loans and purchases for wheat under
subsection (a)(3), the Secretary shall
provide emergency compensation by
increasing the deficiency payments for
wheat by such amount as the Secretary
determines necessary to provide the
same total return to producers as if
the adjustment in the level of loans
and purchases had not been made.
[(ii) Calculation.--In determining
the payment rate, per bushel, for
emergency compensation payments for a
crop of wheat under this subparagraph,
the Secretary shall use the national
weighted average market price, per
bushel of wheat, received by producers
during the marketing year for the crop,
as determined by the Secretary.
[(iii) Deadlines for estimates and
availability.--Notwithstanding any
other provision of this Act, the
Secretary shall--
[(I) by December 1 of the
marketing year for the crop,
estimate the national weighted
average market price, per
bushel of wheat, received by
producers during the marketing
year;
[(II) by December 15 of the
marketing year, use the
estimate to make available to
producers who have elected the
payment option authorized by
this clause not less than 75
percent of the increase in
payments estimated to be
payable with respect to the
crop under this subparagraph;
and
[(III) adjust the amount of
each final payment for wheat to
reflect any difference between
the amount of any estimated
payment made under this clause
and the amount of actual
payment due under this
subparagraph.
[(iv) Time for electing payment
option.--Producers shall elect the
payment option authorized by clause
(iii) at the time of entering into a
contract to participate in the program
established by this section for the
crop.
[(E) 0/85 program.--
[(i) In general.--If an acreage
limitation program under subsection
(e)(2) is in effect for a crop of wheat
and the producers on a farm devote a
portion of the maximum payment acres
for wheat as calculated under
subparagraph (C)(ii) of the farm equal
to more than 8 percent for each of the
1991 through 1993 crops, and 15 percent
for each of the 1994 through 1997 crops
(except as provided in clause (vii)),
of such wheat acreage of the farm for
the crop to conservation uses (except
as provided in subparagraph (F))--
[(I) such portion of the
maximum payment acres in excess
of 8 percent for each of the
1991 through 1993 crops, and 15
percent for each of the 1994
through 1997 crops (except as
provided in clause (vii)), of
such acreage devoted to
conservation uses (except as
provided in subparagraph (F))
shall be considered to be
planted to wheat for the
purpose of determining the
acreage on the farm required to
be devoted to conservation uses
in accordance with subsection
(e)(2)(D); and
[(II) the producers shall be
eligible for payments under
this paragraph with respect to
such acreage.
[(ii) Deficiency payments.--
Notwithstanding any other provision of
this section, any producer who devotes
a portion of the maximum payment acres
for wheat for the farm to conservation
uses (or other uses as provided in
subparagraph (F)) under this
subparagraph shall receive deficiency
payments on the acreage that is
considered to be planted to wheat and
eligible for payments under this
subparagraph for the crop at a per-
bushel rate established by the
Secretary, except that the rate may not
be established at less than the
projected deficiency payment rate for
the crop, as determined by the
Secretary. Such projected payment rate
for the crop shall be announced by the
Secretary prior to the period during
which wheat producers may agree to
participate in the program for the
crop.
[(iii) Adverse effect on agribusiness
and other interests.--The Secretary
shall implement this subparagraph in
such a manner as to minimize the
adverse effect on agribusiness and
other agriculturally related economic
interests within any county, State, or
region. In carrying out this
subparagraph, the Secretary is
authorized to restrict the total
quantity of wheat acreage that may be
taken out of production under this
subparagraph, taking into consideration
the total quantity of acreage that has
or will be removed from production
under other price support, production
adjustment, or conservation program
activities. No restrictions on the
quantity of acreage that may be taken
out of production in accordance with
this subparagraph in a crop year shall
be imposed in the case of a county in
which producers were eligible to
receive disaster emergency loans under
section 321 of the Consolidated Farm
and Rural Development Act (7 U.S.C.
1961) as a result of a disaster that
occurred during the crop year.
[(iv) Crop acreage and payment
yield.--The wheat crop acreage base and
wheat farm program payment yield of the
farm shall not be reduced due to the
fact that a portion of the permitted
wheat acreage of the farm was devoted
to conserving uses (except as provided
in subparagraph (F)) under this
subparagraph.
[(v) Limitation.--Other than as
provided in clauses (i) through (iv),
payments may not be made under this
paragraph for any crop on a greater
acreage than the acreage actually
planted to wheat.
[(vi) Conservation use acreage under
other programs.--Any acreage considered
to be planted to wheat in accordance
with clauses (i) and (iv) may not also
be designated as conservation use
acreage for the purpose of fulfilling
any provisions under any acreage
limitation or land diversion program
requiring that the producers devote a
specified acreage to conservation uses.
[(vii) Exceptions to 0/85.--In the
case of each of the 1994 through 1997
crops of wheat, producers on a farm
shall be eligible to receive deficiency
payments as provided in clause (ii) if
an acreage limitation program under
subsection (e) is in effect for the
crop and--
[(I)(aa) the producers have
been determined by the
Secretary (in accordance with
section 503(c)) to be prevented
from planting the crop or have
incurred a reduced yield for
the crop (due to a natural
disaster); and
[(bb) the producers elect to
devote a portion of the maximum
payment acres for wheat (as
calculated under subparagraph
(C)(ii)) equal to more than 8
percent of the wheat acreage,
to conservation uses; or
[(II) the producers elect to
devote a portion of the maximum
payment acres for wheat (as
calculated under subparagraph
(C)(ii)) equal to more than 8
percent of the wheat acreage,
to alternative crops as
provided in subparagraph (F).
[(F) Alternative crops.--
[(i) Industrial and other crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of
acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (E) to be devoted to
sweet sorghum, guar, castor beans,
plantago ovato, triticale, rye, millet,
mung beans, commodities for which no
substantial domestic production or
market exists but that could yield
industrial raw material being imported,
or likely to be imported, into the
United States, or commodities grown for
experimental purposes (including kenaf
and milkweed), subject to the following
sentence. The Secretary may permit the
acreage to be devoted to the production
only if the Secretary determines that--
[(I) the production is not
likely to increase the cost of
the price support program; and
[(II) the production is
needed to provide an adequate
supply of the commodity, or, in
the case of commodities for
which no substantial domestic
production or market exists but
that could yield industrial raw
materials, the production is
needed to encourage domestic
manufacture of the raw material
and could lead to increased
industrial use of the raw
material to the long-term
benefit of United States
industry.
[(ii) Oilseeds.--The Secretary shall
permit, subject to such terms and
conditions as the Secretary may
prescribe, all or any part of acreage
otherwise required to be devoted to
conservation uses as a condition of
qualifying for payments under
subparagraph (E) to be devoted to
sunflowers, rapeseed, canola,
safflower, flaxseed, mustard seed,
sesame, crambe, and other minor oilseed
designated by the Secretary (excluding
soybeans). In implementing this clause,
the Secretary shall provide that, in
order to receive payments under
subparagraph (E), the producers shall
agree to forgo eligibility to receive a
loan under section 205 for the crop of
any such oilseed produced on the farm.
[(iii) Double cropping.--The
Secretary shall permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any portion of
the acreage otherwise required to be
devoted to conservation uses as a
condition of qualifying for payments
under subparagraph (E) that is devoted
to an industrial, oilseed, or other
crop pursuant to clause (i) or (ii) to
be subsequently planted during the same
crop year to any crop described in
subparagraph (B), (C), or (D) of
section 504(b)(1). The planting of
soybeans as such subsequently planted
crop shall be limited to farms
determined by the Secretary to have an
established history of double cropping
soybeans during at least 3 of the
preceding 5 years. In implementing this
clause, the Secretary shall require
producers to agree to forego
eligibility to receive loans under this
Act for the crop of the subsequently
planted crop that is produced on a farm
under this clause.
[(2) Crop insurance requirement.--A producer shall
obtain catastrophic risk protection insurance coverage
in accordance with section 427.
[(d) Payment Yields.--The farm program payment yields for
farms for each crop of wheat shall be determined under title V.
[(e) Acreage Reduction Programs.--
[(1) In general.--
[(A) Establishment.--Notwithstanding any
other provision of this Act, if the Secretary
determines that the total supply of wheat, in
the absence of an acreage limitation program,
will be excessive taking into account the need
for an adequate carry-over to maintain
reasonable and stable supplies and prices and
to meet a national emergency, the Secretary may
provide for any crop of wheat an acreage
limitation program as described in paragraph
(2).
[(B) Agricultural resources conservation
program.--In making a determination under
subparagraph (A), the Secretary shall take into
consideration the number of acres placed in the
agricultural resources conservation program
established under subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3831
et seq.).
[(C) Announcements.--If the Secretary elects
to implement an acreage limitation program for
any crop year, the Secretary shall announce any
such program not later than June 1 prior to the
calendar year in which the crop is harvested,
except that in the case of the 1991 crop, the
Secretary shall announce the program as soon as
practicable after the date of enactment of this
section.
[(D) Adjustments.--Not later than July 31 of
the year previous to the year in which the crop
is harvested, the Secretary may make
adjustments in the program announced under
subparagraph (C) if the Secretary determines
that there has been a significant change in the
total supply of wheat since the program was
first announced.
[(E) Compliance.--As a condition of
eligibility for loans, purchases, and payments
for any such crop of wheat, except as provided
in subsections (f) and (g) and section 504, the
producers on a farm must comply with the terms
and conditions of the acreage limitation
program and, if applicable, a land diversion
program as provided in paragraph (5).
[(F) Acreage limitation program for 1991
crop.--In the case of the 1991 crop of wheat,
the Secretary shall provide for an acreage
limitation program (as described in paragraph
(2)) under which the acreage planted to wheat
for harvest on a farm would be limited to the
wheat crop acreage base for the farm for the
crop reduced by not less than 15 percent.
[(G) Acreage limitation programs for 1992
through 1995 crops.--In the case of each of the
1992 through 1995 crops of wheat, if the
Secretary estimates for a marketing year for
the crop that the ratio of ending stocks of
wheat to total disappearance of wheat for the
preceding marketing year will be--
[(i) more than 40 percent, the
Secretary shall provide for an acreage
limitation program (as described in
paragraph (2)) under which the acreage
planted to wheat for harvest on a farm
would be limited to the wheat crop
acreage base for the farm for the crop
reduced by not less than 10 percent nor
more than 20 percent; or
[(ii) equal to or less than 40
percent, the Secretary may provide for
such an acreage limitation program
under which the acreage planted to
wheat for harvest on a farm would be
limited to the wheat crop acreage base
for the farm for the crop reduced by
not more than 0 to 15 percent.
For the purpose of this subparagraph, the term
``total disappearance'' means all wheat
utilization, including total domestic, total
export, and total residual disappearance.
[(2) Acreage limitation program.--
[(A) Percentage reductions.--Except as
provided in paragraph (3), if a wheat acreage
limitation program is announced under paragraph
(1), such limitation shall be achieved by
applying a uniform percentage reduction (from 0
to 20 percent) to the wheat crop acreage base
for the crop for each wheat-producing farm.
[(B) Compliance.--Except as provided in
subsection (g) and section 504, producers who
knowingly produce wheat in excess of the
permitted wheat acreage for the farm shall be
ineligible for wheat loans, purchases, and
payments with respect to that farm.
[(C) Crop acreage bases.--Wheat crop acreage
bases for each crop of wheat shall be
determined under title V.
[(D) Acreage devoted to conservation uses.--A
number of acres on the farm shall be devoted to
conservation uses, in accordance with
regulations issued by the Secretary. Such
number shall be determined by multiplying the
wheat crop acreage base by the percentage
reduction required by the Secretary. The number
of acres so determined is hereafter in this
subsection referred to as ``reduced acreage''.
The remaining acreage is hereafter in this
subsection referred to as ``permitted
acreage''. Permitted acreage may be adjusted by
the Secretary as provided in paragraph (3) and
in section 504.
[(E) Individual farm program acreage.--Except
as otherwise provided in subsection (c), the
individual farm program acreage shall be the
acreage planted on the farm to wheat for
harvest within the permitted wheat acreage for
the farm as established under this paragraph.
[(F) Planting designated crops on reduced
acreage.--
[(i) Definition of designated crop.--
As used in this subparagraph, the term
``designated crop'' means a crop
defined in section 504(b)(1), excluding
any program crop as defined in section
502(3).
[(ii) In general.--Subject to clause
(iii), the Secretary may permit
producers on a farm to plant a
designated crop on no more than one-
half of the reduced acreage on the
farm.
[(iii) Limitations.--If the producers
on a farm elect to plant a designated
crop on reduced acreage under this
subparagraph--
[(I) the amount of the
deficiency payment that the
producers are otherwise
eligible to receive under
subsection (c) shall be
reduced, for each acre (or
portion thereof) that is
planted to the designated crop,
by an amount equal to the
deficiency payment that would
be made with respect to a
number of acres of the crop
that the Secretary considers
appropriate, except that if the
producers on the farm are
participating in a program
established for more than one
program crop, the amount of the
reduction shall be determined
by prorating the reduction
based on the acreage planted or
considered planted on the farm
to all of such program crops;
and
[(II) the Secretary shall
ensure that reductions in
deficiency payments under
subclause (I) are sufficient to
ensure that this subparagraph
will result in no additional
cost to the Commodity Credit
Corporation.
[(3) Targeted option payments.--
[(A) In general.--Notwithstanding any other
provision of this section, if the Secretary
implements an acreage limitation program with
respect to any of the 1991 through 1995 crops
of wheat, the Secretary may make available to
producers on a farm who do not receive payments
under subsection (c)(1)(E) for such crop on the
farm, adjustments in the level of deficiency
payments that would otherwise be made available
to the producers if the producers exercise the
payment options provided in this paragraph.
[(B) Payment options.--If the Secretary
elects to carry out this paragraph, the
Secretary shall make the payment options
specified in subparagraphs (C) and (D)
available to producers who agree to make
adjustments in the quantity of acreage diverted
from the production of wheat under an acreage
limitation program in accordance with this
paragraph.
[(C) Increased acreage limitation option.--
[(i) Increase in established price.--
If the Secretary elects to carry out
this paragraph, a producer shall be
eligible to receive an increase in the
established price for wheat under
clause (ii) if the producer agrees to
an increase in the acreage limitation
percentage to be applied to the
producers' wheat acreage base above the
acreage limitation percentage announced
by the Secretary.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who participate in the
program under this paragraph, the
Secretary shall increase the
established price for wheat by an
amount determined by the Secretary, but
not less than 0.5 percent, nor more
than 1 percent, for each 1 percentage
point increase in the acreage
limitation percentage applied to the
producers' wheat acreage base.
[(iii) Limitation.--The acreage
limitation percentage to be applied to
the producers' wheat acreage base shall
not be increased by more than 10
percentage points for the 1991 crop and
15 percentage points for each of the
1992 through 1995 crops above the
acreage limitation percentage announced
by the Secretary for the crop or above
25 percent total for the crop.
[(D) Decreased acreage limitation option.--
[(i) Decrease in acreage limitation
requirement.--If the Secretary elects
to carry out this paragraph, a producer
shall be eligible to decrease the
acreage limitation percentage
applicable to the producers' wheat
acreage base (as announced by the
Secretary) if the producer agrees to a
decrease in the established price for
wheat under clause (ii) for the purpose
of calculating deficiency payments to
be made available to the producer.
[(ii) Method of calculation.--For the
purposes of calculating deficiency
payments to be made available to
producers who choose the option set
forth in this subparagraph, the
Secretary shall decrease the
established price for wheat by an
amount to be determined by the
Secretary, but not less than 0.5
percent, nor more than 1 percent, for
each 1 percentage point decrease in the
acreage limitation percentage applied
to the producers' wheat acreage base.
[(iii) Limitation.--A producer may
not choose to decrease the acreage
limitation percentage applicable to the
producers' wheat acreage base under
this paragraph by more than one-half of
the announced acreage limitation
percentage.
[(E) Participation and production effects.--
Notwithstanding any other provision of this
paragraph, the Secretary shall, to the extent
practicable, ensure that the program provided
for in this paragraph does not have a
significant effect on program participation or
total production and shall be offered in such a
manner that the Secretary determines will
result in no additional budget outlays. The
Secretary shall provide an analysis of the
Secretary's determination to the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
[(4) Administration.--
[(A) Protection from weeds and erosion.--The
regulations issued by the Secretary under
paragraph (2) with respect to acreage required
to be devoted to conservation uses shall assure
protection of the acreage from weeds and wind
and water erosion.
[(B) Annual or perennial cover.--
[(i) Required.--
[(I) In general.--Except as
provided in subclause (II) and
paragraph (2), a producer who
participates in an acreage
reduction program established
for a crop of wheat under this
subsection shall be required to
plant to, or maintain as, an
annual or perennial cover 50
percent (or more at the option
of the producer) of the acreage
that is required to be removed
from the production of wheat,
but not to exceed 5 percent (or
more at the option of the
producer) of the crop acreage
base established for the crop.
[(II) Arid areas.--Subclause
(I) shall not apply with
respect to arid areas
(including summer fallow
areas), as determined by the
Secretary. If the Secretary
determines any county in a
State to be arid, the
respective State committee
established under section 8(b)
of the Soil Conservation and
Domestic Allotment Act (16
U.S.C. 590h(b)) may designate
any other county or counties or
all of the State as arid for
the purposes of this paragraph.
[(III) Approval of cover
crops and practices.--The State
committee, after receiving
recommendations from the county
committees, shall approve
appropriate crops planted or
maintained as cover, including,
as appropriate, annual or
perennial native grasses and
legumes or other vegetation.
The State committee shall
establish the final seeding
date for the planting of the
cover and shall approve
appropriate cover crops or
practices, after consulting the
Soil Conservation Service State
Conservationist regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion. After the
Secretary establishes the State
technical committee for the
State pursuant to section 1261
of the Food Security Act of
1985 (16 U.S.C. 3861), the
State committee shall consult
with the technical committee
(rather than the Soil
Conservation Service State
Conservationist) regarding
whether the crops or practices
will sufficiently protect the
land from weeds and wind and
water erosion.
[(ii) Multiyear program.--
[(I) Cost-share assistance.--
If a producer elects to
establish a perennial cover
capable of improving water
quality or wildlife habitat on
the acreage, the Commodity
Credit Corporation shall make
available cost-share assistance
for 25 percent of the approved
cost of establishing the cover
on not more than 50 percent of
the acreage that is required to
be diverted from production,
but not to exceed 5 percent (or
more, at the option of the
producer) of the crop acreage
base established for a crop.
[(II) Agreement of
producer.--If a producer elects
to establish a perennial cover
on the acreage under this
subparagraph and receives cost-
share assistance from the
Corporation with respect to the
cover, the producer, under such
terms and conditions as may be
prescribed by the Secretary,
taking into consideration
guidelines established by the
State technical committees
established in subtitle G of
title XII of the Food Security
Act of 1985, shall agree to
maintain the perennial cover
for a minimum of 3 years.
[(iii) Conserving crops.--The
Secretary may permit, subject to such
terms and conditions as the Secretary
may prescribe, all or any part of the
acreage to be devoted to sweet sorghum,
guar, sesame, castor beans, crambe,
plantago ovato, triticale, rye, mung
beans, milkweed, or other commodity, if
the Secretary determines that the
production is needed to provide an
adequate supply of the commodities, is
not likely to increase the cost of the
price support program, and will not
affect farm income adversely.
[(C) Haying and grazing.--
[(i) In general.--Except as provided
in clause (ii), haying and grazing of
reduced acreage, acreage devoted to a
conservation use under subsection
(c)(1)(E), and acreage diverted from
production under a land diversion
program established under this section
shall be permitted, except during any
consecutive 5-month period that is
established by the State committee
established under section 8(b) of the
Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)) for a
State. The 5-month period shall be
established during the period beginning
April 1, and ending October 31, of a
year.
[(ii) Natural disasters.--In the case
of a natural disaster, the Secretary
may permit unlimited haying and grazing
on the acreage. The Secretary may not
exclude irrigated or irrigable acreage
not planted in alfalfa when exercising
the authority under this clause.
[(D) Water storage uses.--
[(i) In general.--The regulations
issued by the Secretary under paragraph
(2) with respect to acreage required to
be devoted to conservation uses shall
provide that land that has been
converted to water storage uses shall
be considered to be devoted to
conservation uses if the land was
devoted to wheat, feed grains, cotton,
rice, or oilseeds in at least 3 of the
immediately preceding 5 years. The land
shall be considered to be devoted to
conservation uses for the period that
the land remains in water storage uses,
but not to exceed 5 years subsequent to
its conversion to water storage uses.
[(ii) Limitations.--Land converted to
water storage uses for the purposes of
this subparagraph may not be devoted to
any commercial use, including
commercial fish production. The water
stored on the land may not be ground
water. The farm on which the land is
located must have been irrigated with
ground water during at least 1 of the
preceding 5 crop years.
[(E) Summer fallow.--In determining the
quantity of land to be devoted to conservation
uses under an acreage limitation program with
respect to land that has been farmed under
summer fallow practices, as defined by the
Secretary, the Secretary shall consider the
effects of soil erosion and such other factors
as the Secretary considers appropriate.
[(5) Land diversion payments.--
[(A) In general.--The Secretary may make land
diversion payments to producers of wheat,
whether or not an acreage limitation program
for wheat is in effect, if the Secretary
determines that the land diversion payments are
necessary to assist in adjusting the total
national acreage of wheat to desirable goals.
The land diversion payments shall be made to
producers who, to the extent prescribed by the
Secretary, devote to approved conservation uses
an acreage of cropland on the farm in
accordance with land diversion contracts
entered into by the Secretary with the
producers.
[(B) Amounts.--The amounts payable to
producers under land diversion contracts may be
determined through the submission of bids for
the contracts by producers in such manner as
the Secretary may prescribe or through such
other means as the Secretary determines
appropriate. In determining the acceptability
of contract offers, the Secretary shall take
into consideration the extent of the diversion
to be undertaken by the producers and the
productivity of the acreage diverted.
[(C) Limitation on diverted acreage.--The
Secretary shall limit the total acreage to be
diverted under agreements in any county or
local community so as not to affect adversely
the economy of the county or local community.
[(6) Conservation practices.--
[(A) Wildlife food plots or habitat.--The
reduced acreage and additional diverted acreage
may be devoted to wildlife food plots or
wildlife habitat in conformity with standards
established by the Secretary in consultation
with wildlife agencies. The Secretary may pay
an appropriate share of the cost of practices
designed to carry out the purposes of this
subparagraph.
[(B) Soil and water conservation practices.--
The Secretary may also pay an appropriate share
of the cost of approved soil and water
conservation practices (including practices
that may be effective for a number of years)
established by the producer on acreage required
to be devoted to conservation uses or on
additional diverted acreage.
[(C) Public accessibility.--The Secretary may
provide for an additional payment on the
acreage in an amount determined by the
Secretary to be appropriate in relation to the
benefit to the general public if the producer
agrees to permit, without other compensation,
access to all or such portion of the farm, as
the Secretary may prescribe, by the general
public, for hunting, trapping, fishing, and
hiking, subject to applicable State and Federal
regulations.
[(7) Participation agreements.--
[(A) In general.--Producers on a farm
desiring to participate in the program
conducted under this subsection shall execute
an agreement with the Secretary providing for
the participation not later than such date as
the Secretary may prescribe.
[(B) Modification or termination.--The
Secretary may, by mutual agreement with
producers on a farm, modify or terminate any
such agreement if the Secretary determines the
action necessary because of an emergency
created by drought or other disaster or to
prevent or alleviate a shortage in the supply
of agricultural commodities. The Secretary may
modify the agreement under this subparagraph
for the purpose of alleviating a shortage in
the supply of agricultural commodities only if
there has been a significant change in the
estimated stocks of the commodity since the
Secretary announced the final terms and
conditions of the program for the crop of
wheat.
[(8) Special oats plantings.--In any crop year that
the Secretary determines that projected domestic
production of oats will not fulfill the projected
domestic demand for oats, notwithstanding the foregoing
provisions of this subsection, the Secretary--
[(A) may provide that any reduced acreage may
be planted to oats for harvest;
[(B) may make program benefits (including
loans, purchases, and payments) available under
the annual program for oats under section 105B
available to producers with respect to acreage
planted to oats under this paragraph; and
[(C) shall not make program benefits other
than the benefits specified in subparagraph (B)
available to producers with respect to acreage
planted to oats under this paragraph.
[(f) Inventory Reduction Payments.--
[(1) In general.--The Secretary may, for each of the
1991 through 1995 crops of wheat, make payments
available to producers who meet the requirements of
this subsection.
[(2) Form.--The payments may be made in the form of
marketing certificates.
[(3) Payments.--Payments under this subsection shall
be determined in the same manner as provided in
subsection (b).
[(4) Eligibility.--A producer shall be eligible to
receive a payment under this subsection for a crop if
the producer--
[(A) agrees to forgo obtaining a loan or
purchase agreement under subsection (a);
[(B) agrees to forgo receiving payments under
subsection (c);
[(C) does not plant wheat for harvest in
excess of the crop acreage base reduced by one-
half of any acreage required to be diverted
from production under subsection (e); and
[(D) otherwise complies with this section.
[(g) Pilot Voluntary Production Limitation Program.--
[(1) In general.--Effective for the 1992 or 1993
crops (and, if the Secretary so determines, the 1994
and 1995 crops), if a wheat acreage limitation program
or a land diversion program is announced under
subsection (e) for such crops, the Secretary shall
carry out a pilot program in at least 15 counties in at
least 2 States where producers express an interest in
participating in the pilot program under which the
producers on a farm shall be considered to have met the
requirements of such acreage limitation or land
diversion program if the producers meet the
requirements of the voluntary production limitation
program established under this subsection.
[(2) Limitation on marketing.--In order to comply
with the voluntary production limitation program, the
producers on a farm must agree not to market, barter,
donate, or use on the farm (including use as feed for
livestock) in a marketing year a quantity of wheat in
excess of the wheat production limitation quantity for
the farm for the marketing year.
[(3) Production limitation quantity.--For purposes of
this subsection, the production limitation quantity for
a farm for a marketing year for a crop shall equal the
product obtained by multiplying--
[(A) the acreage permitted to be planted to
wheat under the acreage reduction program or
land diversion program in effect for the crop
for the farm; by
[(B) the higher of--
[(i) the farm program payment yield
for the farm; or
[(ii) the average of the yield per
harvested acre for wheat for the farm
for each of the 5 crop years
immediately preceding the crop year
during which the producers first
participate in the program established
under this subsection, excluding the
crop years with the highest and lowest
yield per harvested acre and any crop
year in which the commodity was not
planted on the farm.
[(4) Terms and conditions.--Producers on a farm who
elect to participate in the program established under
this subsection for a crop of wheat shall--
[(A) enter into an agreement with the
Secretary providing that the producers shall
comply with the program for the crop;
[(B) not plant program commodities for
harvest in a quantity in excess of the sum of
the crop acreage bases for the farm; and
[(C) be considered to have complied with the
terms and conditions of the wheat acreage
reduction program or land diversion program for
the crop, even though the acreage planted to
wheat on the farm exceeds the permitted acreage
provided under the acreage reduction or land
diversion program.
[(5) Excess production.--
[(A) In general.--Any quantity of wheat
produced in a crop year on a farm in excess of
the production limitation quantity for the farm
may be stored by the producers for a period of
not to exceed 5 marketing years and may be used
only in accordance with this paragraph.
[(B) Marketing in subsequent year.--
[(i) Participants in program.--
Producers on a farm who are
participating in the program
established under this subsection may
market, barter, or use a quantity of
the excess wheat referred to in
subparagraph (A) equal to the
difference between the production
limitation quantity for the farm for
the crop year subsequent to the crop
year in which the excess wheat is
produced less the quantity of wheat
produced on the farm during the crop
year.
[(ii) Participants in acreage
reduction program.--Producers on a farm
who are participating in an acreage
reduction or a land diversion program
for a crop of wheat may market, barter,
or use a quantity of the excess wheat
referred to in subparagraph (A) in an
amount that reflects the quantity of
wheat that would be expected to be
produced on acreage that the producers
agree to devote to approved
conservation uses (in excess of any
acreage reduction or land diversion
requirements) during a crop year, as
determined by the Secretary.
[(6) Duties of secretary.--In carrying out the pilot
program established under this subsection, the
Secretary--
[(A) shall issue such regulations as are
necessary to carry out the program;
[(B) may require increased acreage reduction
or land diversion requirements with respect to
producers who have had excess wheat production
in order to allow the producers to market,
barter, or use the production in subsequent
years;
[(C) shall take appropriate measures designed
to prevent the circumvention of the program
established under this subsection, including
the imposition of penalties;
[(D) may require producers who participate in
the program for a crop, but who fail to comply
with the terms and conditions of the program,
to refund all or a part of any deficiency
payments received with respect to the crop;
[(E) may require the forfeiture to the
Commodity Credit Corporation of any wheat that
is produced in excess of the production
limitation quantity and that is not marketed,
bartered, or used within 5 marketing years; and
[(F) shall ensure equitable treatment for
producers who participate in the pilot program
if the Secretary allows increases (based on
actual production levels) in the determination
of farm program payment yields for wheat for
the farm.
[(7) Report.--
[(A) In general.--The Comptroller General of
the United States shall prepare a report that
evaluates the pilot program carried out under
this subsection.
[(B) Submission.--The Comptroller General
shall submit a copy of the report required by
subparagraph (A) to the Committee on
Agriculture of the House of Representatives,
the Committee on Agriculture, Nutrition, and
Forestry of the Senate, and the Secretary.
[(h) Equitable Relief.--
[(1) Loans, purchases, and payments.--If the failure
of a producer to comply fully with the terms and
conditions of the program conducted under this section
precludes the making of loans, purchases, and payments,
the Secretary may, nevertheless, make such loans,
purchases, and payments in such amounts as the
Secretary determines are equitable in relation to the
seriousness of the failure. The Secretary may consider
whether the producer made a good faith effort to comply
fully with the terms and conditions of such program in
determining whether equitable relief is warranted under
this paragraph.
[(2) Deadlines and program requirements.--The
Secretary may authorize the county and State committees
established under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive
or modify deadlines and other program requirements in
cases in which lateness or failure to meet such other
requirements does not affect adversely the operation of
the program.
[(i) Regulations.--The Secretary may issue such regulations
as the Secretary determines necessary to carry out this
section.
[(j) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the
Commodity Credit Corporation.
[(k) Assignment of Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall apply to
payments under this section.
[(l) Sharing of Payments.--The Secretary shall provide for
the sharing of payments made under this section for any farm
among the producers on the farm on a fair and equitable basis.
[(m) Tenants and Sharecroppers.--The Secretary shall provide
adequate safeguards to protect the interests of tenants and
sharecroppers.
[(n) Cross-Compliance.--
[(1) In general.--Compliance on a farm with the terms
and conditions of any other commodity program, or
compliance with crop acreage base requirements for any
other commodity, may not be required as a condition of
eligibility for loans, purchases, or payments under
this section.
[(2) Compliance on other farms.--The Secretary may
not require producers on a farm, as a condition of
eligibility for loans, purchases, or payments under
this section for the farm, to comply with the terms and
conditions of the wheat program with respect to any
other farm operated by the producers.
[(o) Public Comment on Wheat Program.--
[(1) In general.--In order to ensure that producers
and consumers of wheat are provided with reasonable
opportunity to comment on the annual program
determinations concerning the price support and acreage
reduction program for each of the 1992 and subsequent
crops of wheat, the Secretary shall request public
comment regarding the wheat program in accordance with
this subsection.
[(2) Options.--Not less than 60 days before the
program is announced for a crop of wheat under this
section, the Secretary shall propose for public comment
various program options for the crop of wheat.
[(3) Analyses.--Each option proposed by the Secretary
shall be accompanied by an analysis that includes the
estimated planted acreage, production, domestic and
export use, ending stocks, season average producer
price, program participation rate, and cost to the
Federal Government that would likely result from each
option.
[(4) Estimates.--In announcing the program for a crop
of wheat under this section, the Secretary shall
include an estimate of the planted acreage, production,
domestic and export use, ending stocks, season average
producer price, program participation rate, and cost to
the Federal Government that is expected to result from
the program as announced.
[(p) Special Provisions for Wheat Planted in 1990.--Effective
with respect to producers of the 1991 crop of wheat that was
planted in 1990, a producer may, when participating in the
production adjustment program for the 1991 crop of wheat
specified in this section elect to participate in the program
with the following modifications:
[(1) Deficiency payments.--The producer's deficiency
payment shall be the amount by which the established
price for the crop of wheat exceeds the higher of--
[(A) the lesser of--
[(i) the national weighted average
market price received by producers
during the marketing year for the crop,
as determined by the Secretary; or
[(ii) the national weighted average
market price received by producers
during the first 5 months of the
marketing year for the crop, as
determined by the Secretary, plus 10
cents per bushel; or
[(B) the loan level determined for the crop,
prior to any adjustment made under subsection
(a)(3) for the marketing year for the crop of
wheat.
[(2) Payment acres.--The producer's payment acres
shall be the lesser of--
[(A) the number of acres planted to the crop
for harvest within the permitted acreage; or
[(B) 100 percent of the crop acreage base for
the crop for the farm less the quantity of
reduced acreage (as determined under subsection
(e)(2)(D)).
[(q) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1995 crops
of wheat.
[SEC. 108B. PRICE SUPPORT PROGRAM FOR 1991 THROUGH 1997 CROPS OF
PEANUTS.
[(a) Quota Peanuts.--
[(1) In general.--The Secretary shall make price
support available to producers through loans,
purchases, and other operations on quota peanuts for
each of the 1991 through 1997 crops.
[(2) Support rates.--The national average quota
support rate for each of the 1991 through 1997 crops of
quota peanuts shall be the national average quota
support rate for the immediately preceding crop,
adjusted to reflect any increase, during the calendar
year immediately preceding the marketing year for the
crop for which a level of support is being determined,
in the national average cost of peanut production,
excluding any change in the cost of land and the cost
of any assessments required under subsection (g),
except that in no event shall the national average
quota support rate for any such crop exceed by more
than 5 percent the national average quota support rate
for the preceding crop.
[(3) Inspection, handling, or storage.--The levels of
support so announced shall not be reduced by any
deductions for inspection, handling, or storage.
[(4) Location and other factors.--The Secretary may
make adjustments for location of peanuts and such other
factors as are authorized by section 403.
[(5) Announcement.--The Secretary shall announce the
level of support for quota peanuts of each crop not
later than February 15 preceding the marketing year for
the crop for which the level of support is being
determined.
[(b) Additional Peanuts.--
[(1) In general.--The Secretary shall make price
support available to producers through loans,
purchases, or other operations on additional peanuts
for each of the 1991 through 1997 crops at such levels
as the Secretary finds appropriate, taking into
consideration the demand for peanut oil and peanut
meal, expected prices of other vegetable oils and
protein meals, and the demand for peanuts in foreign
markets, except that the Secretary shall set the
support rate on additional peanuts at a level estimated
by the Secretary to ensure that there are no losses to
the Commodity Credit Corporation on the sale or
disposal of the peanuts.
[(2) Announcement.--The Secretary shall announce the
level of support for additional peanuts of each crop
not later than February 15 preceding the marketing year
for the crop for which the level of support is being
determined.
[(c) Area Marketing Associations.--
[(1) Warehouse storage loans.--
[(A) In general.--In carrying out subsections
(a) and (b), the Secretary shall make warehouse
storage loans available in each of the three
producing areas (described in section 1446.95
of title 7 of the Code of Federal Regulations
(January 1, 1989)) to a designated area
marketing association of peanut producers that
is selected and approved by the Secretary and
that is operated primarily for the purpose of
conducting the loan activities. The Secretary
may not make warehouse storage loans available
to any cooperative that is engaged in
operations or activities concerning peanuts
other than those operations and activities
specified in this section and sections 358d and
358e of the Agricultural Adjustment Act of
1938.
[(B) Administrative and supervisory
activities.--The area marketing associations
shall be used in administrative and supervisory
activities relating to price support and
marketing activities under this section and
sections 358d and 358e of the Agricultural
Adjustment Act of 1938.
[(C) Association costs.--Loans made to the
association under this paragraph shall include,
in addition to the price support value of the
peanuts, such costs as the area marketing
association reasonably may incur in carrying
out its responsibilities, operations, and
activities under this section and sections 358d
and 358e 108B-6 of the Agricultural
Adjustment Act of 1938.
[(2) Pools for quota and additional peanuts.--
[(A) In general.--The Secretary shall require
that each area marketing association establish
pools and maintain complete and accurate
records by area and segregation for quota
peanuts handled under loan and for additional
peanuts placed under loan, except that separate
pools shall be established for Valencia peanuts
produced in New Mexico. Bright hull and dark
hull Valencia peanuts shall be considered as
separate types for the purpose of establishing
the pools.
[(B) Net gains.--Net gains on peanuts in each
pool, unless otherwise approved by the
Secretary, shall be distributed only to
producers who placed peanuts in the pool and
shall be distributed in proportion to the value
of the peanuts placed in the pool by each
producer. Net gains for peanuts in each pool
shall consist of the following:
[(i) Quota peanuts.--For quota
peanuts, the net gains over and above
the loan indebtedness and other costs
or losses incurred on peanuts placed in
the pool plus an amount from all
additional pool gains equal to any loss
on disposition of all peanuts in the
pool for quota peanuts.
[(ii) Additional peanuts.--For
additional peanuts, the net gains over
and above the loan indebtedness and
other costs or losses incurred on
peanuts placed in the pool for
additional peanuts less any amount
allocated to offset any loss on the
pool for quota peanuts as provided in
clause (i).
[(d) Losses.--Notwithstanding any other provision of this
section:
[(1) Quota peanuts placed under loan.--Any
distribution of net gains on additional peanuts (other
than net gains on additional peanuts in separate type
pools established under subsection (c)(2)(A) for
Valencia peanuts produced in New Mexico) shall be first
reduced to the extent of any loss by the Commodity
Credit Corporation on quota peanuts placed under loan.
[(2) Quota loan pools.--
[(A) Transfers from additional loan pools.--
The proceeds due any producer from any pool
shall be reduced by the amount of any loss that
is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan
pool by such producer under section 358-1(b)(8)
of the Agricultural Adjustment Act of 1938.
[(B) Other losses.--Losses in area quota
pools, other than losses incurred as a result
of transfers from additional loan pools to
quota loan pools under section 358-1(b)(8) of
the Agricultural Adjustment Act of 1938, shall
be offset by any gains or profits from pools in
other production areas (other than separate
type pools established under subsection
(c)(2)(A) for Valencia peanuts produced in New
Mexico) in such manner as the Secretary shall
by regulation prescribe.
[(e) Disapproval of Quotas.--Notwithstanding any other
provision of law, no price support may be made available by the
Secretary for any crop of peanuts with respect to which
poundage quotas have been disapproved by producers, as provided
for in section 358-1(d) of the Agricultural Adjustment Act of
1938.
[(f) Quality Improvement.--
[(1) Price support peanuts.--With respect to peanuts
under price support loan, the Secretary shall--
[(A) promote the crushing of peanuts at a
greater risk of deterioration before peanuts of
a lesser risk of deterioration;
[(B) ensure that all Commodity Credit
Corporation loan stocks of peanuts sold for
domestic edible use must be shown to have been
officially inspected by licensed Department of
Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
[(C) continue to endeavor to operate the
peanut price support program so as to improve
the quality of domestic peanuts and ensure the
coordination of activities under the Peanut
Administrative Committee established under
Marketing Agreement No. 146, regulating the
quality of domestically produced peanuts (under
the Agricultural Marketing Agreement Act of
1937 (7 U.S.C. 601 et seq.)); and
[(D) ensure that any changes made in the
price support program as a result of this
subsection requiring additional production or
handling at the farm level shall be reflected
as an upward adjustment in the Department of
Agriculture loan schedule.
[(2) Exports and other peanuts.--The Secretary shall
require that all peanuts in the domestic market fully
comply with all quality standards under Marketing
Agreement No. 146. The Secretary shall ensure that
peanuts produced for the export market meet quality
standards established for the domestic market under
Marketing Agreement No. 146.
[(g) Marketing Assessment.--
[(1) In general.--The Secretary shall provide, by
regulation, for a nonrefundable marketing assessment
applicable to each of the 1991 through 1997 crops of
peanuts. The assessment shall be made in accordance
with this subsection and shall be on a per pound basis
in an amount equal to 1 percent for each of the 1991
through 1993 crops, 1.1 percent for each of the 1994
and 1995 crops, 1.15 percent for the 1996 crop, and 1.2
percent for the 1997 crop, of the national average
quota or additional peanut support rate per pound, as
applicable, for the applicable crop. No peanuts shall
be assessed more than 1 percent for each of the 1991
through 1993 crops, 1.1 percent for each of the 1994
and 1995 crops, 1.15 percent for the 1996 crop, and 1.2
percent for the 1997 crop, of the applicable support
rate under this subsection.
[(2) First purchasers.--
[(A) In general.--Except as provided under
paragraphs (3) and (4), the first purchaser of
peanuts shall--
[(i) collect from the producer a
marketing assessment equal to the
quantity of peanuts acquired multiplied
by--
[(I) in the case of each of
the 1991 through 1993 crops, .5
percent of the applicable
national average support rate;
[(II) in the case of each of
the 1994 and 1995 crops, .55
percent of the applicable
national average support rate;
[(III) in the case of the
1996 crop, .6 percent of the
applicable national average
support rate; and
[(IV) in the case of the 1997
crop, .65 percent of the
applicable national average
support rate;
[(ii) pay, in addition to the amount
collected under clause (i), a marketing
assessment in an amount equal to the
quantity of peanuts acquired multiplied
by--
[(I) in the case of each of
the 1991 through 1993 crops, .5
percent of the applicable
national average support rate;
and
[(II) in the case of each of
the 1994 through 1997 crops,
.55 percent of the applicable
national average support rate;
and
[(iii) remit the amounts required
under clauses (i) and (ii) to the
Commodity Credit Corporation in a
manner specified by the Secretary.
[(B) Definition.--For purposes of this
subsection, the term ``first purchaser'' means
a person acquiring peanuts from a producer
except that in the case of peanuts forfeited by
a producer to the Commodity Credit Corporation,
such term means the person acquiring the
peanuts from the Commodity Credit Corporation.
[(3) Other private marketings.--In the case of a
private marketing by a producer directly to a consumer
through a retail or wholesale outlet or in the case of
a marketing by the producer outside of the continental
United States, the producer shall be responsible for
the full amount of the assessment and shall remit the
assessment by such time as is specified by the
Secretary.
[(4) Loan peanuts.--In the case of peanuts that are
pledged as collateral for a price support loan made
under this section, \1/2\ of the assessment shall be
deducted from the proceeds of the loan. The remainder
of the assessment shall be paid by the first purchaser
of the peanuts. For purposes of computing net gains on
peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the
producer.
[(5) Penalties.--If any person fails to collect or
remit the reduction required by this subsection or
fails to comply with such requirements for
recordkeeping or otherwise as are required by the
Secretary to carry out this subsection, the person
shall be liable to the Secretary for a civil penalty up
to an amount determined by multiplying--
[(A) the quantity of peanuts involved in the
violation; by
[(B) the national average quota peanut price
support level for the applicable crop year.
[(6) Enforcement.--The Secretary may enforce this
subsection in the courts of the United States.
[(h) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1997 crops
of peanuts.
[SEC. 110. FARMER OWNED RESERVE PROGRAM.
[(a) In General.--The Secretary shall formulate and
administer a farmer owned reserve program under which producers
of wheat and feed grains will be able to store wheat and feed
grains when the commodities are in abundant supply, extend the
time period for the orderly marketing of the commodities, and
provide for adequate carryover stocks to ensure a reliable
supply of the commodities.
[(b) Terms of Program.--
[(1) Price support loans.--In carrying out this
program, the Secretary shall provide extended price
support loans for wheat and feed grains. An extended
loan shall only be made to a producer after the
expiration of a 9-month price support loan (hereafter
in this section referred to as the ``original loan'')
made in accordance with this title.
[(2) Level of loans.--Loans made under this section
shall not be less than the then current level of
support under the wheat and feed grain programs
established under this title.
[(3) Other terms and conditions.--The Secretary shall
provide for--
[(A) repayment of the extended price support
loan 27 months from the date on which the
original loan expired unless, at the discretion
of the Secretary, the loan has been extended
for one 6-month period;
[(B) a rate of interest as provided under
subsection (c); and
[(C) payments to producers for storage as
provided in subsection (d).
[(4) Regional differences.--The Secretary shall
ensure that producers are afforded a fair and equitable
opportunity to participate in the program established
under this section, taking into account regional
differences in the time of harvest.
[(c) Interest Charges.--
[(1) Levying of interest.--The Secretary may charge
interest on loans under this section whenever the price
of wheat or feed grains is equal to or exceeds 105
percent of the then current established price for the
commodity.
[(2) 90-day period.--If interest is levied on the
loans under paragraph (1), the interest may be charged
for a period of 90 days after the last day on which the
price of wheat or feed grains was equal to or in excess
of 105 percent of the established price for the
commodities.
[(3) Rate of interest.--The rate of interest charged
participants in this program shall not be less than the
rate of interest charged by the Commodity Credit
Corporation by the United States Treasury, except that
the Secretary may waive or adjust the interest as the
Secretary considers appropriate to effectuate the
purposes of this section.
[(d) Storage Payments.--
[(1) In general.--The Secretary shall provide storage
payments to producers for storage of wheat or feed
grains under the program established in this section in
such amounts and under such conditions as the Secretary
determines appropriate to encourage producers to
participate in the program.
[(2) Timing.--The Secretary shall make storage
payments available to participants in this program at
the end of each quarter.
[(3) Duration.--The Secretary shall cease making
storage payments whenever the price of wheat or feed
grains is equal to or exceeds 95 percent of the then
current established price for the commodities, and for
any 90-day period immediately following the last day on
which the price of wheat or feed grains was equal to or
in excess of 95 percent of the then current established
price for the commodities.
[(e) Emergencies.--Notwithstanding any other provision of
law, the Secretary may require producers to repay loans made
under this section, plus accrued interest and such other
charges as may be required by regulation prior to the maturity
date thereof, if the Secretary determines that emergency
conditions exist that require that the commodity be made
available in the market to meet urgent domestic or
international needs and the Secretary reports the determination
and the reasons for the determination to the President, the
Committee on Agriculture of the House of Representatives, and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate at least 14 days before taking the action.
[(f) Quantity of Commodities in Program.--The Secretary may
establish maximum quantities of wheat and feed grains that may
receive loans and storage payments under this program as
follows:
[(1) The maximum quantities of wheat may not be
established at less than 300 million bushels, nor more
than 450 million bushels.
[(2) The maximum quantities of feed grains may not be
established at less than 600 million bushels, nor more
than 900 million bushels.
[(g) Announcement of Program.--
[(1) Time of announcement.--The Secretary shall
announce the terms and conditions of the producer
storage program for a crop of wheat and feed grains
by--
[(A) in the case of wheat, December 15 of the
year in which the crop of wheat was harvested;
and
[(B) in the case of feed grains, March 15 of
the year following the year in which the crop
of corn was harvested.
[(2) Discretionary entry.--The Secretary may make
extended loans available to producers of wheat or feed
grains if--
[(A) the Secretary determines that the
average market price for wheat or corn,
respectively, for the 90-day period prior to
the dates specified in paragraph (1) is less
than 120 percent of the current loan rate for
wheat or corn, respectively; or
[(B) as of the appropriate date specified in
paragraph (1), the Secretary estimates that the
stocks-to-use ratio on the last day of the
current marketing year will be--
[(i) in the case of wheat, more than
37.5 percent; and
[(ii) in the case of corn, more than
22.5 percent.
[(3) Mandatory entry.--The Secretary shall make
extended loans available to producers of wheat or feed
grains if the conditions specified in subparagraphs (A)
and (B) of paragraph (2) are met for wheat or feed
grains, respectively.
[(4) Content of announcement.--In the announcement,
the Secretary shall specify the maximum quantity of
wheat or feed grains to be stored under this program
that the Secretary determines appropriate to promote
the orderly marketing of the commodities.
[(h) Discretionary Exit.--A producer may repay a loan
extended under this section at any time.
[(i) Reconcentration of Grain.--The Secretary may, with the
concurrence of the owner of grain stored under this program,
reconcentrate all such grain stored in commercial warehouses at
such points as the Secretary considers to be in the public
interest, taking into account such factors as transportation
and normal marketing patterns. The Secretary shall permit
rotation of stocks and facilitate maintenance of quality under
regulations that assure that the holding producer or
warehouseman shall, at all times, have available for delivery
at the designated place of storage both the quantity and
quality of grain covered by the producer's or warehouseman's
commitment.
[(j) Management of Grain.--Whenever grain is stored under
this section, the Secretary may buy and sell at an equivalent
price, allowing for the customary location and grade
differentials, substantially equivalent quantities of grain in
different locations or warehouses to the extent needed to
properly handle, rotate, distribute, and locate the commodities
that the Commodity Credit Corporation owns or controls. The
purchases to offset sales shall be made within 2 market days
following the sales. The Secretary shall make a daily list
available showing the price, location, and quantity of the
transactions.
[(k) Use of Commodity Credit Corporation.--The Secretary
shall use the Commodity Credit Corporation, to the extent
feasible, to fulfill the purposes of this section. To the
maximum extent practicable consistent with the fulfillment of
the purposes of this section and the effective and efficient
administration of this section, the Secretary shall utilize the
usual and customary channels, facilities, and arrangements of
trade and commerce.
[(l) Use of Commodity Certificates.--Notwithstanding any
other provision of law, if a producer has substituted purchased
or other commodities for the commodities originally pledged as
collateral for a loan made under this section, the Secretary
may allow a producer to repay the loan using a generic
commodity certificate that may be exchanged for commodities
owned by the Commodity Credit Corporation, if the substitute
commodities have been pledged as loan collateral and redeemed
only within the same county.
[(m) Additional Authority.--The authority provided by this
section shall be in addition to other authorities available to
the Secretary for carrying out producer loan and storage
operations.
[(n) Regulations.--The Secretary of Agriculture shall issue
such regulations as are necessary to carry out this section not
later than 60 days after November 28, 1990.
[(o) Review.--In announcing the terms and conditions of the
producer storage program under this section, the Secretary
shall review standards concerning the quality of grain that
shall be allowed to be stored under the program, and such
standards should encourage only quality grain, as determined by
the Secretary, to be pledged as collateral for such loans. The
Secretary shall review inspection, maintenance, and stock
rotation requirements and take the necessary steps to maintain
the quality of such grain.
[(p) Crops.--Notwithstanding any other provision of law, this
section shall become effective December 1, 1990.
[INTERNATIONAL EMERGENCY FOOD RESERVE
[Sec. 111. The President is encouraged to enter into
negotiations with other nations to develop an international
system of food reserves to provide for humanitarian food relief
needs and to establish and maintain a food reserve, as a
contribution of the United States toward the development of
such a system, to be made available in the event of food
emergencies in foreign countries. The reserves shall be known
as the International Emergency Food Reserve.
[AGRICULTURAL COMMODITIES UTILIZATION PROGRAM
[Sec. 112. Notwithstanding any other provision of this Act--
[(a) The Secretary may permit, subject to such terms and
conditions as the Secretary may prescribe, all or any part of
the acreage set aside or diverted from the production of a
commodity for any crop year under this title to be devoted to
the production of any commodity (other than the commodities for
which acreage is being set aside or diverted) for conversion
into industrial hydrocarbons and blending with gasoline or
other fossil fuels for use as motor or industrial fuel, if the
Secretary determines that such production is desirable in order
to provide an adequate supply of commodities for such purpose,
is not likely to increase the cost of the price support
programs, and will not adversely affect farm income.
[(b)(1) During any year in which there is no set-aside or
diversion of acreage under this title, the Secretary may
formulate and administer a program for the production, subject
to such terms and conditions as the Secretary may prescribe, of
commodities for conversion into industrial hydrocarbons and
blending with gasoline or other fossil fuels for use as motor
or industrial fuel, if the Secretary determines that such
production is desirable in order to provide an adequate supply
of commodities for such purpose, is not likely to increase the
cost of the price support programs, and will not adversely
affect farm income. Under the program, producers of wheat, feed
grains, upland cotton, and rice shall be paid incentive
payments to devote a portion of their acreage to the production
of commodities for conversion into industrial hydrocarbons and
blending with gasoline or other fossil fuels for use as motor
or industrial fuel.
[(2) The payments under this subsection shall be at such rate
or rates as the Secretary determines to be fair and reasonable,
taking into consideration the participation necessary to ensure
an adequate supply of the agricultural commodities for
conversion into industrial hydrocarbons and blending with
gasoline or other fossil fuels for use as motor or industrial
fuels.
[(3) The Secretary may issue such regulations as the
Secretary deems necessary to carry out the provisions of this
subsection.
[(4) There are authorized to be appropriated such sums as may
be necessary to carry out the provisions of this subsection.
[(5) The provisions of this subsection shall become effective
October 1, 1978.
[SEC. 113. SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION AUTHORITY.
[Notwithstanding any other provision of law or prior
announcement made by the Secretary to the contrary, the
Secretary may announce and provide for an acreage limitation
program under section 105B or 107B for one or more of the 1991
through 1995 crops of wheat and feed grains if the Secretary
determines that such action is in the public interest as a
result of the imposition of restrictions on the export of any
such commodity by the President or other member of the
executive branch of the Federal Government. To carry out
effectively an acreage limitation program authorized under this
section, the Secretary may make such modifications and
adjustments in such program as the Secretary determines
necessary because of any delay in instituting such program.
[SEC. 114. DEFICIENCY AND LAND DIVERSION PAYMENTS.
[(a) Deficiency Payments.--
[(1) In general.--If the Secretary establishes an
acreage limitation program for any of the 1991 through
1997 crops of wheat, feed grains, upland cotton, or
rice under this Act and determines that deficiency
payments will likely be made for the commodity for the
crop, the Secretary shall make advance deficiency
payments available to producers for each of the crops.
[(2) Terms and Conditions.--Advance deficiency
payments under paragraph (1) shall be made to the
producer under the following terms and conditions:
[(A) Form.--Such payments may be made
available in the form of--
[(i) cash;
[(ii) commodities owned by the
Commodity Credit Corporation and
certificates redeemable in a commodity
owned by the Commodity Credit
Corporation, except that not more than
50 percent of the payments may be made
in commodities or the certificates in
the case of any producer; or
[(iii) any combination of clauses (i)
and (ii).
[(B) Commodities and certificates.--If
payments are made available to producers as
provided for under subparagraph (A)(ii), such
producers may elect to receive such payments
either in the form of--
[(i) such commodities; or
[(ii) such certificates.
[(C) Maturity.--Such a certificate shall be
redeemable for a period not to exceed 3 years
from the date the certificate is issued.
[(D) Storage.--The Commodity Credit
Corporation shall pay the cost of storing a
commodity that may be received under such a
certificate until such time as the certificate
is redeemed.
[(E) Timing.--The payments shall be made
available as soon as practicable after the
producer enters into a contract with the
Secretary to participate in such program.
[(F) Amounts.--The payments shall be made
available in such amounts as the Secretary
determines appropriate to encourage adequate
participation in the program, except that the
amount may not exceed an amount determined by
multiplying--
[(i) the estimated payment acreage
for the crop; by
[(ii) the farm program payment yield
for the crop; by
[(iii)(I) in the case of wheat and
feed grains, not less than 40 percent,
nor more than 50 percent, of the
projected payment rate; and
[(II) in the case of rice and upland
cotton, not less than 30 percent, nor
more than 50 percent, of the projected
payment rate,
as determined by the Secretary.
[(G) Repayment.--If the deficiency payment
payable to a producer for a crop, as finally
determined by the Secretary under this Act, is
less than the amount paid to the producer as an
advance deficiency payment for the crop under
this subsection, the producer shall repay an
amount equal to the difference between the
amount advanced and the amount finally
determined by the Secretary to be payable to
the producer as a deficiency payment for the
crop concerned.
[(H) Repayment requirement.--If the Secretary
determines under this Act that deficiency
payments will not be made available to
producers on a crop with respect to which
advance deficiency payments already have been
made under this subsection, the producers who
received the advance payments shall repay the
payments.
[(I) Deadline.--Any repayment required under
subparagraph (G) or (H) shall be due at the end
of the marketing year for the crop with respect
to which the payments were made.
[(J) Noncompliance.--If a producer fails to
comply with requirements established under the
acreage limitation program involved after
obtaining an advance deficiency payment under
this subsection, the producer shall repay
immediately the amount of the advance, plus
interest thereon in such amount as the
Secretary shall prescribe by regulation.
[(3) Regulations.--The Secretary may issue such
regulations as the Secretary determines necessary to
carry out this section.
[(4) Commodity credit corporation.--The Secretary
shall carry out the program authorized by this section
through the Commodity Credit Corporation.
[(5) Additional authority.--The authority provided in
this section shall be in addition to, and not in place
of, any authority granted to the Secretary or the
Commodity Credit Corporation under any other provision
of law.
[(b) Land Diversion Payments.--If the Secretary makes land
diversion payments under this Act to assist in adjusting the
total national acreage of any of the 1991 through 1995 crops of
wheat, feed grains, upland cotton, or rice to desirable levels,
the Secretary may make at least 50 percent of such payments
available to a producer as soon as possible after the producer
agrees to undertake the diversion of land in return for the
payments.
[(c) Timing of Deficiency Payments.--In the case of
deficiency payments made available to producers for any of the
1991 through 1997 crops of wheat and feed grains which payments
are calculated as provided in section 107B(c)(1)(B)(ii),
107B(p), or 105B(c)(1)(B)(ii), the Secretary shall make
deficiency payments as follows:
[(1) A portion of the deficiency payment shall be
made in advance in accordance with subsection (a)(2).
[(2) With respect to feed grains (excluding barley
and oats), 75 percent of the final projected deficiency
payment for the crop, reduced by the amount of the
advance, shall be made available as soon as practicable
after the end of the first 5 months of the applicable
marketing year.
[(3) With respect to wheat, barley, and oats, the
final projected deficiency payment for the crop,
reduced by the amount of the advance, shall be made
available as soon as practicable after the end of the
first 5 months of the applicable marketing year. Such
projected payment shall be based on the national
weighted average market price received by producers
during the first 5 months of the marketing year for the
crop, as determined by the Secretary, plus 10 cents per
bushel with respect to wheat or 7 cents per bushel with
respect to barley and oats.
[(4) The remainder of the deficiency payments shall
be made available at the end of the marketing year.
[Sec. 115. (a) In making in-kind payments under any of the
annual programs for wheat, feed grains, upland cotton, or rice
(other than negotiable marketing certificates for upland cotton
or rice), the Secretary may--
[(1) acquire and use like commodities that have been
pledged to the Commodity Credit Corporation as security
for price support loans, including loans made to
producers under section 110; and
[(2) use other like commodities owned by the
Commodity Credit Corporation.
[(b) The Secretary may make in-kind payments--
[(1) by delivery of the commodity to the producer at
a warehouse or other similar facility, as determined by
the Secretary;
[(2) by the transfer of negotiable warehouse
receipts;
[(3) by the issuance of negotiable certificates which
the Commodity Credit Corporation shall redeem for a
commodity in accordance with regulations prescribed by
the Secretary; or
[(4) by such other methods as the Secretary
determines appropriate to enable the producer to
receive payments in an efficient, equitable, and
expeditious manner so as to ensure that the producer
receives the same total return as if the payments had
been made in cash.
[(c) The Secretary shall pay interest on the cash redemption
of a commodity certificate issued by the Secretary to a
producer who holds the certificate for at least 150 days. This
subsection shall not apply with respect to commodity
certificates issued in connection with the export enhancement
program or the marketing promotion program established under
the Agricultural Trade Act of 1978.
[TITLE II--DESIGNATED NONBASIC AGRICULTURAL COMMODITIES
[Sec. 201. (a) The Secretary is authorized and directed to
make available (without regard to the provisions of title III)
price support to producers for oilseeds (including soybeans,
sunflower seed, canola, rapeseed, safflower, flaxseed, mustard
seed, and such other oilseeds as the Secretary may determine),
honey, milk, sugar beets, and sugarcane in accordance with this
title.
[(b) The price of honey shall be supported through loans,
purchases, or other operations at a level not in excess of 90
per centum nor less than 60 per centum of the parity price
thereof; and the price of tung nuts for each crop of tung nuts
through the 1976 crop shall be supported through loans,
purchases, or other operations at a level not in excess of 90
per centum nor less than 60 per centum of the parity price
therefor: Provided, That in any crop year through the 1976 crop
year in which the Secretary determines that the domestic
production of tung oil will be less than the anticipated
domestic demand for such oil, the price of tung nuts shall be
supported at not less than 65 per centum of the parity price
therefor.
[(c) Except as provided in section 204, the price of milk
shall be supported at such level not in excess of 90 per centum
nor less than 75 per centum of the parity price therefor as the
Secretary determines necessary in order to assure an adequate
supply of pure and wholesome milk to meet current needs,
reflect changes in the cost of production, and assure a level
of farm income adequate to maintain productive capacity
sufficient to meet anticipated future needs. Such price support
shall be provided through purchases of milk and the products of
milk.
[Sec. 202. As a means of increasing the utilization of dairy
products, (including for purposes of this section, milk) upon
the certification by the Secretary of Veterans Affairs or by
the Secretary of the Army, acting for the military departments
under the Department of Defense's Single Service Purchase
Assignment for Subsistence, or their duly authorized
representatives that the usual quantities of dairy products
have been purchased in the normal channels of trade--
[(a) The Commodity Credit Corporation until December 31,
1995, shall make available to the Secretary of Veterans Affairs
at warehouses where dairy products are stored, such dairy
products acquired under price-support programs as the Secretary
certifies that he requires in order to provide butter and
cheese and other dairy products as a part of the ration in
hospitals under his jurisdiction. The Secretary shall report
every six months to the Committee on Agriculture, Nutrition,
and Forestry of the Senate and the Committee on Agriculture of
the House of Representatives and the Secretary of Agriculture
the amount of dairy products used under this subsection.
[(b) The Commodity Credit Corporation until December 31,
1995, shall make available to the Secretary of the Army, at
warehouses where dairy products are stored, such dairy products
acquired under price-support programs as the Secretary of the
Army or his duly authorized representative certifies can be
utilized in order to provide additional butter and cheese and
other dairy products as a part of the ration (1) of the Army,
Navy, Air Force, or Coast Guard, (2) in hospitals under the
jurisdiction of the Department of Defense, and (3) of cadets
and midshipmen at, and other personnel assigned to, the United
States Merchant Marine Academy. The Secretary of the Army shall
report every six months to the Committee on Agriculture,
Nutrition, and Forestry of the Senate and the Committee on
Agriculture of the House of Representatives and the Secretary
of Agriculture the amount of dairy products used under this
subsection.
[(c) Dairy products made available under this section shall
be made available without charge, except that the Secretary of
the Army or the Secretary of Veterans Affairs shall pay the
Commodity Credit Corporation the costs of packaging incurred in
making such products so available.
[(d) The obligation of the Commodity Credit Corporation to
make dairy products available pursuant to the above shall be
limited to dairy products acquired by the Corporation through
price-support operations and not disposed of under provisions
(1) and (2) of section 416 of this Act, as amended.
[SEC. 203. COTTONSEED AND COTTONSEED OIL PRICE SUPPORT.
[(a) In General.--If the Secretary determines that any
oilseed program or programs cause, or are likely to cause, a
reduction in prices received by producers for cottonseed or by
processors for cottonseed oil, the Secretary shall take such
actions as are necessary to offset the actual or anticipated
impact of the program on prices for cottonseed or cottonseed
oil. The actions shall only include actions to stabilize or
increase the price of cottonseed, and shall not include actions
to decrease the prices of other oilseeds.
[(b) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1995 crops
of upland cotton.
[SEC. 204. MILK PRICE SUPPORT AND MILK INVENTORY MANAGEMENT PROGRAM FOR
CALENDAR YEARS 1991 THROUGH 1996.
[Notwithstanding any other provision of law:
[(a) In General.--During the period beginning on January 1,
1991, and ending on December 31, 1996, the price of milk
produced in the 48 contiguous States shall be supported as
provided in this section.
[(b) Rate.--During the period beginning on January 1, 1991,
and ending on December 31, 1996, the price of milk shall be
supported at a rate not less than $10.10 per hundredweight for
milk containing 3.67 percent milkfat.
[(c) Purchases.--
[(1) In general.--The price of milk shall be
supported through the purchase of milk and the products
of milk produced in the 48 contiguous States.
[(2) CCC bid prices.--The Commodity Credit
Corporation support purchase prices under this section
for each of the products of milk (butter, cheese, and
nonfat dry milk) announced by the Corporation shall be
the same for all of that product sold by persons
offering to sell the product to the Corporation. The
purchase prices shall be sufficient to enable plants of
average efficiency to pay producers, on average, a
price not less than the rate of price support for milk
in effect during a 12-month period under this
subsection.
[(3) Butter and nonfat dry milk.--
[(A) Allocation of purchase prices.--Subject
to subparagraph (B), the Secretary may allocate
the rate of price support between the purchase
prices for nonfat dry milk and butter in a
manner that will result in the lowest level of
expenditures by the Commodity Credit
Corporation or achieve such other objectives as
the Secretary considers appropriate. The
Secretary shall notify the Committee on
Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate of the allocation.
[(B) Guidelines.--In the case of purchases of
butter and nonfat dry milk that are made by the
Secretary under this section on or after the
date of enactment of the Omnibus Budget
Reconciliation Act of 1993, in allocating the
rate of price support between the purchase
prices of butter and nonfat dry milk under this
paragraph, the Secretary may not--
[(i) offer to purchase butter for
more than $0.65 per pound; or
[(ii) offer to purchase nonfat dry
milk for less than $1.034 per pound.
[(C) Timing of purchase price adjustments.--
The Secretary may make any such adjustments in
the purchase prices for nonfat dry milk and
butter the Secretary considers to be necessary
not more than twice in each calendar year.
[(d) Support Rate Adjustments.--
[(1) Reductions.--
[(A) In general.--Effective January 1 of each
of the calendar years 1991 through 1996, if the
level of purchases of milk and the products of
milk by the Commodity Credit Corporation under
this section (less sales under section 407 for
unrestricted use), as estimated by the
Secretary by November 20 of the preceding
calendar year, will exceed 5 billion pounds
(milk equivalent, total milk solids basis), the
Secretary shall decrease by an amount per
hundredweight of at least $0.25 but not more
than $0.50 the rate of price support for milk
in effect for the calendar year.
[(B) Prior notification.--The Secretary
shall, by November 20 of the preceding calendar
year, notify the Committee on Agriculture of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate of any proposed decrease in price
support under this paragraph.
[(2) Increases.--
[(A) In general.--Effective January 1 of each
of the calendar years 1991 through 1996, if the
level of purchases of milk and the products of
milk by the Commodity Credit Corporation under
this section (less sales under section 407 for
unrestricted use), as estimated by the
Secretary by November 20 of the preceding
calendar year, will not exceed 3.5 billion
pounds (milk equivalent, total milk solids
basis), the Secretary shall increase by an
amount per hundredweight of at least $0.25 the
rate of price support for milk in effect for
the calendar year.
[(B) Prior notification.--The Secretary
shall, by November 20 of the preceding calendar
year, notify the Committee on Agriculture of
the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate of any proposed increase in price
support under this paragraph.
[(3) No adjustments.--If for any of the calendar
years 1992 through 1996, the level of purchases of milk
and the products of milk by the Commodity Credit
Corporation under this section (less sales under
section 407 for unrestricted use), as estimated by the
Secretary by November 20 of the preceding calendar
year, will be less than 5 billion pounds (milk
equivalent, total milk solids basis), but more than 3.5
billion pounds (milk equivalent, total milk solids
basis), the Secretary shall not decrease the rate of
price support for milk in effect for the calendar year.
[(4) Minimum price.--Notwithstanding any other
provision of this section, in no event shall the price
of milk be supported at less than $10.10 per
hundredweight.
[(5) Administration.--
[(A) Milk equivalent, total milk solids
basis.--As used in this section, the term
``milk equivalent, total milk solids basis'',
of milk and the products of milk purchased by
the Commodity Credit Corporation, shall be
equal to the weighted-average of the milk
equivalent (as computed on a milkfat basis and
on a milk solids nonfat basis) of such
products, with weighting factors equal to not
more than 40 percent for the milk equivalent,
milkfat basis, and not more than 70 percent for
the milk equivalent, solids nonfat basis. The
weighting factors shall total 100 percent.
[(B) Level of purchases.--In estimating the
level of purchases of milk and the products of
milk under this section, the Secretary shall
deduct the amount, if any, by which the level
of imports into the 48 contiguous States and
the District of Columbia of milk and the
products of milk during the most recent
calendar year exceeds the annual average level
of imports into the 48 contiguous States and
the District of Columbia of milk and the
products of milk during the period January 1,
1986, through December 31, 1990 (milk
equivalent, total milk solids basis).
[(e) Report on Milk Inventory Management Program.--
[(1) In general.--Not later than August 1, 1991, the
Secretary shall prepare and submit a report and
recommendations on various milk inventory management
programs to the Committee on Agriculture of the House
of Representatives and Committee on Agriculture,
Nutrition, and Forestry of the Senate.
[(2) Solicitation of proposals.--Within 60 days after
the date of enactment of this section, the Secretary
shall publish in the Federal Register a notice to
solicit proposals concerning a milk inventory
management program.
[(3) Required proposals.--In carrying out this
subsection, the Secretary shall study, among other
proposals--
[(A) an alternative classification of milk
contained in section 8c(5) of the Agricultural
Adjustment Act (7 U.S.C. 608c(5)), as amended
by the Agricultural Marketing Agreement Act of
1937;
[(B) a program to support the income of milk
producers through a system of established
prices and deficiency payments; and
[(C) other such programs submitted to the
Secretary under paragraph (2) as the Secretary
may determine appropriate after consultation
with the Committee on Agriculture of the House
of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the
Senate.
[(4) Prohibited programs.--In the study required
under paragraph (3), the Secretary shall not consider
any milk inventory management program that includes any
milk production termination program that is similar to
the program established under section 201(d)(3), or
support price reductions below the levels established
under this section.
[(5) Criteria for evaluation.--The Secretary shall
evaluate the proposals for a milk inventory management
program based on--
[(A) the ability of the program to limit
Government purchases of milk products to
6,000,000,000 pounds (milk equivalent, total
milk solids basis) in a calendar year;
[(B) the speed and effectiveness of reducing
excess milk production;
[(C) the effectiveness in sustaining reduced
milk production for at least a 5-year period
with and without the continuation of the
program;
[(D) the regional impact on milk prices,
producer revenue, and milk supplies;
[(E) the impact on national producer income
and Government expenditures;
[(F) the impact on the rural economy and
maintaining family farms;
[(G) the impact on the availability of
wholesome dairy products for domestic and
foreign nutrition and food assistance programs;
[(H) technological innovations;
[(I) the effectiveness in reducing butter fat
production and increasing protein content in
milk;
[(J) the impact of temporary increases and
decreases of milk production;
[(K) the impact on the United States
livestock industry; and
[(L) all other issues the Secretary considers
appropriate.
[(6) Notice and comment.--The Secretary shall provide
for public notice and comment on the milk inventory
programs studied by the Secretary under this subsection
no later than June 1, 1991.
[(f) Notification of Congress Concerning Estimated
Purchases.--On August 1 and by November 20 of each of the
calendar years 1991 through 1995, the Secretary shall notify
the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of
the Senate regarding the value and volume of dairy product
purchases on a milk equivalent, total milk solids basis, the
Secretary estimates that the Corporation will make during the
upcoming calendar year.
[(g) Excess Purchases.--
[(1) In general.--In order to offset any cost to the
Commodity Credit Corporation associated with the
purchase (less sales under section 407 for unrestricted
use) of milk and the products of milk in excess of
7,000,000,000 pounds (milk equivalent, total milk
solids basis), during any of the calendar years 1992
through 1996, the Secretary shall, if necessary,
provide for a reduction to be made in the price
received by producers for all milk produced in the 48
contiguous States and marketed by producers for
commercial use.
[(2) Calculation.--If on November 20 of each of the
calendar years 1991 through 1996, the Secretary
estimates that the level of Commodity Credit
Corporation purchases (less sales under section 407 for
unrestricted use) in the following calendar year of
milk and the products of milk will exceed 7,000,000,000
pounds (milk equivalent, total milk solids basis), the
amount of reduction in the price received by producers
in such following calendar year shall be an amount per
hundredweight calculated by dividing--
[(A) the cost of the purchases (less sales
under section 407 for unrestricted use) in
excess of 7,000,000,000 pounds, milk
equivalent, total milk solids basis; by
[(B) the total quantity of hundredweights of
milk the Secretary estimates will be produced
and marketed in the United States for
commercial use in such following calendar year.
[(3) Adjustments.--The Secretary shall adjust any
such assessment in future years, or refund any portion
of such assessments, as needed, to carry out the
purposes of this subsection.
[(h) Reduction in Price Received.--
[(1) In general.--Beginning January 1, 1991, the
Secretary shall provide for a reduction in the price
received by producers for all milk produced in the 48
contiguous States and marketed by producers for
commercial use, in addition to any reduction in price
required under subsection (g).
[(2) Amount.--The amount of the reduction under
paragraph (1) in the price received by producers shall
be--
[(A) during calendar year 1991, 5 cents per
hundredweight of milk marketed;
[(B) during each of the calendar years 1992
through 1995, 11.25 cents per hundredweight of
milk marketed, which rate shall be adjusted on
or before May 1 of each of the calendar years
1992 through 1995 by an amount per
hundredweight that is necessary to compensate
for refunds made under paragraph (3) on the
basis of marketings in the previous calendar
year; and
[(C) during each of calendar years 1996 and
1997, 10 cents per hundredweight of milk
marketed, which rate shall be adjusted on or
before May 1 of the respective calendar year in
the manner provided in subparagraph (B).
[(3) Refund.--The Secretary shall provide a refund of
the entire reduction under paragraph (2) in the price
of milk received by a producer during a calendar year,
if the producer provides evidence that the producer did
not increase marketings in the calendar year that such
reduction was in effect when compared to the
immediately preceding calendar year. A refund under
this subsection shall not be considered as any type of
price support or payment for purposes of sections 1211
and 1221 of the Food Security Act of 1985 (16 U.S.C.
3811 and 3821).
[(i) Enforcement.--
[(1) Collection.--Reductions in price required under
subsection (g) or (h) shall be collected and remitted
to the Commodity Credit Corporation in the manner
prescribed by the Secretary.
[(2) Penalties.--If any person fails to collect or
remit the reduction required by subsection (g) or (h)
or fails to comply with such requirements for
recordkeeping or otherwise as are required by the
Secretary to carry out such subsection, the person
shall be liable to the Secretary for a civil penalty up
to an amount determined by multiplying--
[(A) the quantity of milk involved in the
violation; by
[(B) the support rate for the applicable
calendar year for milk.
[(3) Enforcement.--The Secretary may enforce
subsection (g) or (h) in the courts of the United
States.
[(j) Use of Commodity Credit Corporation.--The Secretary
shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out this section.
[(k) Period.--Notwithstanding any other provision of law,
this section shall be effective only during the period
beginning on January 1, 1991, and ending on December 31, 1996.
[SEC. 205. LOANS AND PAYMENTS FOR OILSEEDS FOR 1991 THROUGH 1995
MARKETING YEARS.
[(a) Definition of Oilseeds.--As used in this section, the
term ``oilseeds'' means soybeans, sunflower seed, canola,
rapeseed, safflower, flaxseed, mustard seed, and such other
oilseeds as the Secretary may determine.
[(b) In General.--The Secretary shall support the price of
oilseeds through nonrecourse loans to producers on a farm for
oilseeds produced on the farm in each of the 1991 through 1995
marketing years as provided in this section.
[(c) Loan Level.--The loan level for each of the 1991 through
1995 crops of--
[(1) soybeans shall not be less than $5.02 per bushel
for each of the 1991 through 1993 crops and $4.92 per
bushel for each of the 1994 through 1997 crops;
[(2) sunflower seed, canola, rapeseed, safflower,
mustard seed, and flaxseed, individually, shall not be
less than $0.089 per pound for each of the 1991 through
1993 crops and $0.087 per pound for each of the 1994
through 1997 crops; and
[(3) other oilseeds shall be established at such
level as the Secretary determines is fair and
reasonable in relation to the loan level available for
soybeans, except in no event shall the level for such
oilseeds (other than cottonseed) be less than the level
established for soybeans on a per-pound basis for the
same crop year.
To ensure that producers have an equitable opportunity to
produce an alternative crop in areas of limited crop options,
the Secretary may limit, insofar as practicable, adjustments in
the loan rate established under paragraph (2) applicable to a
particular region, State, or county for the purpose of
reflecting transportation differentials such that the regional,
State, or county loan rate does not increase or decrease by
more than 9 percent from the basic national loan rate.
[(d) Marketing Loan Provisions.--
[(1) In general.--The Secretary shall permit a
producer to repay a loan made under this section for a
crop--
[(A) at a level that is the lesser of--
[(i) the loan level determined for
the crop; or
[(ii) the prevailing world market
price for the applicable oilseed
(adjusted to United States quality and
location), as determined by the
Secretary; or
[(B) such other level (not in excess of the
loan level determined for the crop) that the
Secretary determines will--
[(i) minimize potential loan
forfeitures;
[(ii) minimize the accumulation of
oilseed stocks by the Federal
Government;
[(iii) minimize the cost incurred by
the Federal Government in storing
oilseeds; and
[(iv) allow oilseeds produced in the
United States to be marketed freely and
competitively, both domestically and
internationally.
[(2) Prevailing world market price.--The Secretary
shall prescribe by regulation--
[(A) a formula to define the prevailing world
market price for oilseeds (adjusted to United
States quality and location); and
[(B) a mechanism by which the Secretary shall
announce periodically the prevailing world
market price for oilseeds (adjusted to United
States quality and location).
[(e) Loan Deficiency Payment.--
[(1) In general.--The Secretary shall, for each of
the 1991 through 1995 crops of oilseeds, make payments
available to producers who, although eligible to obtain
a loan under subsection (b), agree to forgo obtaining
the loan in return for payments under this subsection.
[(2) Computation.--A payment under this subsection
shall be computed by multiplying--
[(A) the loan payment rate; by
[(B) the quantity of oilseeds the producer is
eligible to place under loan but for which the
producer forgoes obtaining the loan in return
for payments under this subsection.
[(3) Loan payment rate.--For purposes of this
subsection, the loan payment rate shall be the amount
by which--
[(A) the loan level determined for the crop
under subsection (c); exceeds
[(B) the level at which a loan may be repaid
under subsection (d).
[(4) Marketing certificates.--
[(A) In general.--The Secretary may make
payments under this section available in the
form of certificates redeemable for any
agricultural commodity owned by the Commodity
Credit Corporation.
[(B) Minimal oilseed stocks.--The Secretary
shall make certificates available under
subparagraph (A) in such a manner so as to
minimize the accumulation of oilseeds stocks.
[(f) Marketing Year.--For purposes of this section, the
marketing year for--
[(1) soybeans shall be the 12-month period beginning
on September 1 and ending on August 31; and
[(2) other oilseeds shall be prescribed by the
Secretary by regulation.
[(g) Announcements.--
[(1) In general.--Except as provided in paragraph
(2), the Secretary shall make an announcement of the
loan level for the crop not later than November 15
prior to the calendar year in which the crop is
harvested.
[(2) 1991 crop.--In the case of the 1991 crop, the
Secretary shall make an announcement of the loan level
for the crop as soon as practicable after the date of
enactment of this section.
[(h) Loan Maturity.--A loan made for a crop of oilseeds under
this section shall mature--
[(1) in the case of each of the 1991 through 1993
crops, on the last day of the 9th month following the
month the application for the loan is made; and
[(2) in the case of each of the 1994 through 1997
crops, on the last day of the 9th month following the
month the application for the loan is made, except that
the loan may not mature later than the last day of the
fiscal year in which the application is made.
[(i) Other Terms and Conditions.--Notwithstanding any other
provision of law--
[(1) the Secretary shall not require participation in
any production adjustment program for oilseeds or any
other commodity as a condition of eligibility for price
support for oilseeds;
[(2) the Secretary may not authorize payments to
producers to cover the cost of storing oilseeds; and
[(3) oilseeds may not be considered an eligible
commodity for any reserve program.
[(j) Regulations.--The Secretary may issue such regulations
as the Secretary determines necessary to carry out this
section.
[(k) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the
Commodity Credit Corporation.
[(l) Assignment of Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall apply to
payments under this section.
[(m) Loan Origination Fee.--
[(1) Loans.--The Secretary shall charge a producer a
loan origination fee for a crop of oilseeds, in
connection with making a loan, equal to the product
obtained by multiplying--
[(A) the loan level determined for the crop
under subsection (c); by
[(B) 2 percent; by
[(C) the quantity of oilseeds for which the
producer obtains the loan.
[(2) Loan deficiency payments.--The Secretary shall
deduct, from the amount of any loan deficiency payment
made under subsection (e), an amount equal to the
amount of the loan origination fee that would otherwise
be paid under paragraph (1) if the producer obtained a
loan rather than a loan deficiency payment.
[(3) Applicability.--This subsection shall apply only
to each of the 1991 through 1993 crops of oilseeds.
[(n) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1995 crops
of oilseeds.
[SEC. 206. SUGAR PRICE SUPPORT FOR 1991 THROUGH 1997 CROPS.
[(a) In General.--The price of each of the 1991 through 1997
crops of sugar beets and sugarcane, respectively, shall be
supported in accordance with this section.
[(b) Sugarcane.--The Secretary shall support the price of
domestically grown sugarcane through nonrecourse loans at such
level as the Secretary determines appropriate, but not less
than 18 cents per pound for raw cane sugar.
[(c) Sugar Beets.--The Secretary shall support the price of
each of the 1991 through 1997 crops of domestically grown sugar
beets through nonrecourse loans at such level for each such
crop as the Secretary determines reflects--
[(1) an amount that bears the same relation to the
support level for the crop of sugarcane under
subsection (b) as the weighted average of producer
returns for sugar beets bears to the weighted average
of producer returns for sugarcane, expressed on a cents
per pound basis for refined beet sugar and raw cane
sugar, for the most recent 5-year period for which data
are available; plus
[(2) an amount that covers sugar beet processor fixed
marketing expenses.
[(d) Adjustment in Support Price.--
[(1) In general.--The Secretary may increase the
support price for each of the 1991 through 1997 crops
of domestically grown sugarcane and sugar beets from
the price determined for the preceding crop based on
such factors as the Secretary determines appropriate,
including changes (during the 2 crop years immediately
preceding the crop year for which the determination is
made) in the cost of sugar products, the cost of
domestic sugar production, and other circumstances that
may adversely affect domestic sugar production.
[(2) Report.--If the Secretary makes a determination
not to increase the support price under paragraph (1),
the Secretary shall submit a report containing the
findings, decision, and supporting data for the
determination to the Committee on Agriculture of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
[(e) Announcements.--The Secretary shall announce the basic
loan rates for beet sugar and cane sugar to be applicable
during any fiscal year under this section as far in advance of
the beginning of that fiscal year as is practicable consistent
with the purposes of this section.
[(f) Term.--Except as provided in subsection (g), loans under
this section during any fiscal year shall be made available not
earlier than the beginning of the fiscal year and shall mature
at the earlier of--
[(1) the end of 9 months; or
[(2) the end of the fiscal year.
[(g) Supplementary Nonrecourse Loans.--The Secretary shall
make available to eligible processors price support loans with
respect to sugar processed from sugar beets and sugarcane
harvested in the last 3 months of a fiscal year. Such loans
shall mature at the end of the fiscal year. The processor may
repledge the sugar as collateral for a price support loan in
the subsequent fiscal year, except that the second loan shall--
[(1) be made at the loan rate in effect at the time
the second loan is made; and
[(2) mature in 9 months less the quantity of time
that the first loan was in effect.
[(h) Use of Commodity Credit Corporation.--The Secretary
shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out this section.
[(i) Marketing Assessment.--
[(1) Sugarcane.--Effective only for marketings of raw
cane sugar during the 1992 through 1996 fiscal years,
the first processor of sugarcane shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
[(A) in the case of marketings during each of
fiscal years 1992 through 1994, 1.0 percent of
the loan level established under subsection (b)
per pound of raw cane sugar (but not more than
.18 cents per pound of raw cane sugar),
processed by the processor from domestically
produced sugarcane or sugarcane molasses, that
has been marketed (including the transfer or
delivery of the sugar to a refinery for further
processing or marketing); and
[(B) in the case of marketings during each of
fiscal years 1995 through 1998, 1.1 percent of
the loan level established under subsection (b)
per pound of raw cane sugar (but not more than
.198 cents per pound of raw cane sugar),
processed by the processor from domestically
produced sugarcane or sugarcane molasses, that
has been marketed (including the transfer or
delivery of the sugar to a refinery for further
processing or marketing).
[(2) Sugar beets.--Effective only for marketings of
beet sugar during the 1992 through 1996 fiscal years,
the first processor of sugar beets shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
[(A) in the case of marketings during each of
fiscal years 1992 through 1994, 1.0722 percent
of the loan level established under subsection
(b) per pound of beet sugar (but not more than
.193 cents per pound of beet sugar), processed
by the processor from domestically produced
sugar beets or sugar beet molasses, that has
been marketed; and
[(B) in the case of marketings during each of
fiscal years 1995 through 1998, 1.1794 percent
of the loan level established under subsection
(b) per pound of beet sugar (but not more than
.2123 cents per pound of beet sugar), processed
by the processor from domestically produced
sugar beets or sugar beet molasses, that has
been marketed.
[(3) Collection.--
[(A) Timing.--Marketing assessments required
under this subsection shall be collected on a
monthly basis and shall be remitted to the
Commodity Credit Corporation within 30 days
after the end of each month. Any cane sugar or
beet sugar processed during a fiscal year that
has not been marketed by September 30 of that
year shall be subject to assessment on that
date. The sugar shall not be subject to a
second assessment at the time that it is
marketed.
[(B) Manner.--Subject to subparagraph (A),
marketing assessments shall be collected under
this subsection in the manner prescribed by the
Secretary and shall be nonrefundable.
[(4) Penalties.--If any person fails to remit the
assessment required by this subsection or fails to
comply with such requirements for recordkeeping or
otherwise as are required by the Secretary to carry out
this subsection, the person shall be liable to the
Secretary for a civil penalty up to an amount
determined by multiplying--
[(A) the quantity of cane sugar or beet sugar
involved in the violation; by
[(B) the support level for the applicable
crop of sugarcane or sugar beets.
[(5) Enforcement.--The Secretary may enforce this
subsection in the courts of the United States.
[(6) Excess marketings.--In addition to the
assessment required under paragraph (1) or (2), a
processor who knowingly markets sugar in excess of the
allocated allotment of the processor under section 359d
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1359dd) shall pay an assessment in an amount that is
double the applicable assessment required under
paragraph (1) or (2) per pound of sugar marketed.
[(j) Crops.--This section shall be effective only for the
1991 through 1997 crops of sugar beets and sugarcane.
[SEC. 207. HONEY PRICE SUPPORT.
[(a) In General.--For each of the 1991 through 1998 crops of
honey, the price of honey shall be supported through loans,
purchases, or other operations at not less than--
[(1) 53.8 cents per pound for each of the 1991
through 1993 crop years;
[(2) 50 cents per pound for each of the 1994 and 1995
crop years;
[(3) 49 cents per pound for the 1996 crop year;
[(4) 48 cents per pound for the 1997 crop year; and
[(5) 47 cents per pound for the 1998 crop year.
[(b) Marketing Loan Provisions.--The Secretary may permit a
producer to repay a loan made to the producer under this
section for a crop at a level that is the lesser of--
[(1) the loan level determined for the crop; or
[(2) such level as the Secretary determines will--
[(A) minimize the number of loan forfeitures;
[(B) not result in excessive total stocks of
honey;
[(C) reduce the costs incurred by the Federal
Government in storing honey; and
[(D) maintain the competitiveness of honey in
the domestic and export markets.
[(c) Loan Deficiency Payments.--
[(1) In general.--The Secretary shall, for each of
the 1991 through 1998 crops of honey, make payments
available to producers who, although eligible to obtain
a loan under subsection (b), agree to forgo obtaining
the loan in return for payments under this subsection.
[(2) Computation.--A payment under this subsection
shall be computed by multiplying--
[(A) the loan payment rate; by
[(B) the quantity of honey the producer is
eligible to place under loan but for which the
producer forgoes obtaining the loan in return
for payments under this subsection.
[(3) Loan payment rate.--For purposes of this
subsection, the loan payment rate shall be the amount
by which--
[(A) the loan level determined for the crop
under subsection (a); exceeds
[(B) the level at which a loan may be repaid
under subsection (b).
[(4) Marketing certificates.--The Secretary may make
payments under this section available in the form of
certificates redeemable for any agricultural commodity
owned by the Commodity Credit Corporation.
[(d) Pledging Adulterated or Imported Honey as Collateral.--
[(1) In general.--If the Secretary determines that a
person has knowingly pledged adulterated or imported
honey as collateral to secure a loan made under this
section, the person, in addition to any other penalty
or sanction prescribed by law, shall be ineligible for
a loan, purchase, or payment under this section for the
3 crop years succeeding the determination.
[(2) Adulterated honey.--For purposes of paragraph
(1), honey shall be considered adulterated if--
[(A) any substance has been substituted
wholly or in part for the honey;
[(B) the honey contains a poisonous or
deleterious substance that may render the honey
injurious to health, except that in any case in
which the substance is not added to the honey,
the honey shall not be considered adulterated
if the quantity of the substance in or on the
honey does not ordinarily render it injurious
to health; or
[(C) for any other reason, the honey is
unsound, unhealthy, unwholesome, or otherwise
unfit for human consumption.
[(e) Payment Limitations.--
[(1) In general.--The total amount of payments that a
person may receive under this section may not exceed--
[(A) $200,000 in the 1991 crop year;
[(B) $175,000 in the 1992 crop year;
[(C) $150,000 in the 1993 crop year;
[(D) $125,000 in the 1994 crop year;
[(E) $100,000 in the 1995 crop year;
[(F) $75,000 in the 1996 crop year; and
[(G) $50,000 in each of the 1997 and 1998
crop years.
[(2) Payments.--For the purposes of this subsection,
the term ``payments'' means--
[(A) any gain realized by a producer from
repaying a loan for a crop of honey at a lower
level than the original loan level under this
section; and
[(B) any loan deficiency payment received
under subsection (c).
[(3) Person.--The Secretary shall issue regulations
defining the term ``person'' for the purposes of this
section. The regulations shall provide for the
attribution of payments received under this section.
[(f) Regulations.--The Secretary may issue such regulations
as the Secretary determines necessary to carry out this
section.
[(g) Commodity Credit Corporation.--The Secretary shall carry
out the program authorized by this section through the
Commodity Credit Corporation.
[(h) Assignment of Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall apply to
payments under this section.
[(i) Marketing Assessment.--
[(1) In general.--Effective only for each of the 1991
through 1993 crops of honey, producers and producer-
packers of honey (as defined in paragraphs (5) and (9),
respectively, of section 3 of the Honey Research,
Promotion, and Consumer Information Act (7 U.S.C.
4602)) shall remit to the Commodity Credit Corporation
a nonrefundable marketing assessment on a per pound
basis in an amount equal to 1 percent of the national
price support level for each such crop as otherwise
provided in this section.
[(2) Collection.--The assessment shall be collected
and remitted by the first handler of honey in the
manner prescribed by the Secretary which, to the extent
practicable, shall be as provided for in the Honey
Research, Promotion, and Consumer Information Act.
[(3) Exemptions.--All persons who are exempt from the
payment of the assessment authorized by such Act, and
all imported honey, shall be exempt from the payment of
the assessment required by this subsection.
[(4) Penalties.--If any person fails to collect or
remit the reduction required by this subsection or
fails to comply with such requirements for
recordkeeping or otherwise as are required by the
Secretary to carry out this subsection, the person
shall be liable to the Secretary for a civil penalty up
to an amount determined by multiplying--
[(A) the quantity of honey involved in the
violation; by
[(B) the support level for the applicable
crop of honey.
[(5) Enforcement.--The Secretary may enforce this
subsection in the courts of the United States.
[(j) Crops.--Notwithstanding any other provision of law, this
section shall be effective only for the 1991 through 1998 crops
of honey.
[TITLE III--OTHER NONBASIC AGRICULTURAL COMMODITIES
[Sec. 301. The Secretary is authorized to make available
through loans, purchases, or other operations price support to
producers for any nonbasic agricultural commodity not
designated in title II at a level not in excess of 90 per
centum of the parity price for the commodity.
[Sec. 302. Without restricting price support to those
commodities for which a marketing quota or marketing agreement
or order program is in effect, price support shall, insofar as
feasible, be made available to producers of any storable
nonbasic agricultural commodity for which such a program is in
effect and who are complying with such program. The level of
such support shall not be in excess of 90 per centum of the
parity price of such commodity nor less than the level provided
in the following table:
[If the supply perceThe level of support shall be not less than the is:
following percentage of the parity price:
Not more than 102......................................... 90
More than 102 but not more than 104....................... 89
More than 104 but not more than 106....................... 88
More than 106 but not more than 108....................... 87
More than 108 but not more than 110....................... 86
More than 110 but not more than 112....................... 85
More than 112 but not more than 114....................... 84
More than 114 but not more than 116....................... 83
More than 116 but not more than 118....................... 82
More than 118 but not more than 120....................... 81
More than 120 but not more than 122....................... 80
More than 122 but not more than 124....................... 79
More than 124 but not more than 126....................... 78
More than 126 but not more than 128....................... 77
More than 128 but not more than 130....................... 76
More than 130............................................. 75
Provided, That the level of price support may be less than the
minimum level provided in the foregoing table if the Secretary,
after examination of the availability of funds for mandatory
price support programs and consideration of the other factors
specified in section 401(b), determines that such lower level
is desirable and proper.
[Sec. 303. In determining the level of price support for any
nonbasic agricultural commodity under this title, particular
consideration shall be given to the levels at which the prices
of competing agricultural commodities are being supported.
[TITLE IV--MISCELLANEOUS
[Sec. 401. (a) The Secretary shall provide the price support
authorized or required herein through the Commodity Credit
Corporation and other means available to him.
[(b) Except as otherwise provided in this Act, the amounts,
terms, and conditions of price support operations and the
extent to which such operations are carried out, shall be
determined or approved by the Secretary. The following factors
shall be taken into consideration in determining, in the case
of any commodity for which price support is discretionary,
whether a price-support operation shall be undertaken and the
level of such support and, in the case of any commodity for
which price support is mandatory, the level of support in
excess of the minimum level prescribed for such commodity: (1)
the supply of the commodity in relation to the demand therefor,
(2) the price levels at which other commodities are being
supported and, in the case of feed grains, the feed values of
such grains in relation to corn, (3) the availability of funds,
(4) the perishability of the commodity, (5) the importance of
the commodity to agriculture and the national economy, (6) the
ability to dispose of stocks acquired through a price-support
operation, (7) the need for offsetting temporary losses of
export markets, (8) the ability and willingness of producers to
keep supplies in line with demand, and (9) in the case of
upland cotton, changes in the cost of producing such cotton.
[(c) Compliance by the producer with acreage allotments,
production goals and marketing practices (including marketing
quotas when authorized by law), prescribed by the Secretary,
may be required as a condition of eligibility for price
support. In administering any program for diverted acres the
Secretary may make his regulations applicable on an appropriate
geographical basis. Such regulations shall be administered (1)
in semiarid or other areas where good husbandry requires
maintenance of a prudent feed reserve in such manner as to
permit, to the extent so required by good husbandry, the
production of forage crops for storage and subsequent use
either on the farm or in feeding operations of the farm
operator, and (2) in areas declared to be disaster areas by the
President under the Disaster Relief and Emergency Assistance
Act, in such manner as will most quickly restore the normal
pattern of their agriculture.
[(d) The level of price support for any commodity shall be
determined upon the basis of its parity price as of the
beginning of the marketing year or season in the case of any
commodity marketed on a marketing year or season basis and as
of January 1 in the case of any other commodity.
[(e)(1) Whenever any price support or surplus removal
operation for any agricultural commodity is carried out through
purchases from or loans or payments to processors, the
Secretary shall, to the extent practicable, obtain from the
processors such assurances as he deems adequate that the
producers of the agricultural commodity involved have received
or will receive maximum benefits from the price support or
surplus removal operation.
[(2)(A) If the assurances under paragraph (1) are not
adequate to cause the producers of sugar beets and sugarcane,
because of the bankruptcy or other insolvency of the processor,
to receive maximum benefits from the price support program
within 30 days after the final settlement date provided for in
the contract between such producers and processor, the
Secretary, on demand made by such producers and on such
assurances as to nonpayment as the Secretary shall require,
shall pay such producers such maximum benefits less benefits
previously received by such producers.
[(B) On such payment, the Secretary shall--
[(i) be subrogated to all claims of such producers
against the processor and other persons responsible for
nonpayment; and
[(ii) have authority to pursue such claims as
necessary to recover the benefits not paid to the
producers.
[(C) The Secretary shall carry out this paragraph through the
Commodity Credit Corporation.
[Sec. 402. (a) Notwithstanding any other provision of this
Act, price support at a level in excess of the maximum level of
price support otherwise prescribed in this Act may be made
available for any agricultural commodity if the Secretary
determines, after a public hearing of which reasonable notice
has been given, that price support at such increased level is
necessary in order to prevent or alleviate a shortage in the
supply of any agricultural commodity essential to the national
welfare or in order to increase or maintain the production of
any agricultural commodity in the interest of national
security. The Secretary's determination and the record of the
hearing shall be available to the public.
[(b) Effective only for the 1991 through 1995 crops of wheat,
feed grains, cotton, and rice, the Secretary of Agriculture may
provide for annual adjustments in the established prices for
such program crops to reflect any change during the last
calendar year ending before the beginning of each such crop
year in the index of prices paid by farmers for production
items, interest, taxes, and wage rates in such calendar year.
[SEC. 403. ADJUSTMENTS OF SUPPORT PRICES.
[(a) In General.--The Secretary may make appropriate
adjustments in the support price for any commodity (excluding
cotton) for differences in grade, type, quality, location and
other factors. The adjustments shall, so far as practicable, be
made in such manner that the average support price for the
commodity will, on the basis of the anticipated incidence of
such factors be equal to the level of support determined as
provided in this Act. Beginning with the 1991 crops of wheat,
feed grains, and soybeans for which price support is provided
under this Act, the Secretary shall establish premiums and
discounts related to cleanliness factors in addition to any
other premiums or discounts related to quality.
[(b) Adjustment in Support Prices for Cotton.--The Secretary
may make appropriate adjustments in the support price for
cotton for differences in quality factors and location.
Beginning with the 1991 crop, the quality differences (premiums
and discounts for quality factors) for the upland cotton loan
program shall be established by the Secretary by giving equal
weight to (1) loan differences for the preceding crop, and (2)
market differences for such crop in the designated United
States spot markets.
[(c) Limitation on Adjustments for Wheat and Feed Grains.--
Notwithstanding any other provision of this section, for each
of the 1990 through 1995 crops of wheat and feed grains, no
adjustment in the loan rate applicable to a particular region,
State, or county for the purpose of reflecting transportation
differentials may increase or decrease the regional, State, or
county loan rate from the level established for the previous
year by more than the percentage change in the national average
loan rate plus or minus 3 percent.
[Sec. 404. The Secretary, in carrying out programs under
section 32 of Public Law Numbered 320, Seventy-fourth Congress,
approved August 24, 1935, as amended, and section 6 of the
National School Lunch Act may utilize the services and
facilities of the Commodity Credit Corporation (including but
not limited to procurement by contract), and make advance
payments to it.
[Sec. 405. (a) Except as otherwise provided in section 405A,
no producer shall be personally liable for any deficiency
arising from the sale of the collateral securing any loan made
under authority of this Act unless such loan was obtained
through fraudulent representations by the producer. This
provision shall not, however, be construed to prevent the
Commodity Credit Corporation or the Secretary from requiring
producers to assume liability for deficiencies in the grade,
quality, or quantity of commodities stored on the farm or
delivered by them, for failure properly to care for and
preserve commodities, or for failure or refusal to deliver
commodities in accordance with the requirements of the program.
There is authorized to be included in the terms and conditions
of any such nonrecourse loan a provision whereby on and after
the maturity of the loan or any extension thereof Commodity
Credit Corporation shall have the right to acquire title to the
unredeemed collateral without obligation to pay for any market
value which such collateral may have in excess of the loan
indebtedness.
[(b) Sugarcane and Sugar Beets.--The security interests
obtained by the Commodity Credit Corporation as a result of the
execution of security agreements by the processors of sugarcane
and sugar beets shall be superior to all statutory and common
law liens on raw cane sugar and refined beet sugar in favor of
the producers of sugarcane and sugar beets and all prior
recorded and unrecorded liens on the crops of sugarcane and
sugar beets from which the sugar was derived. The preceding
sentence shall not affect the application of section 401(e)(2).
[Sec. 405A. (a) A producer of honey may satisfy the
producer's obligation to repay a loan, or a portion of a loan,
made to the producer under section 207 by forfeiting the
collateral for the loan, or portion of the loan, only if the
value of the collateral forfeited, when taken together with the
value of the collateral forfeited on any other loan or loans of
the person for such crop of honey under section 207, does not
exceed $200,000 in the 1991 crop year, $175,000 in the 1992
crop year, $150,000 in the 1993 crop year, and $125,000 in each
of the 1994 and subsequent crop years: Provided, however, That
the loan forfeiture limitation provided by this section shall
not be applicable for any crop year for which the Secretary
does not permit producers of honey to repay the price support
loans at a level determined under section 207(b)(2).
[(b) The producer of honey shall be personally liable for the
repayment of a loan or loans made to the producer under the
program for the crop of honey involved, with respect to that
portion of the loan or loans for which satisfaction of the loan
by forfeiture, as provided in subsection (a), is prohibited.
[(c) The loan contracts of the Commodity Credit Corporation
entered into with producers of honey shall clearly indicate the
extent to which a producer of honey may be personally liable
for repayment of a loan under this section.
[(d) The Commodity Credit Corporation may issue such
regulations as the Corporation deems necessary to carry out
this section. The regulations shall provide for the attribution
of the value of collateral forfeited on loans described in
subsection (a).
[Sec. 406. (a) The Secretary shall, insofar as practicable,
announce the level of price support for field crops in advance
of the planting season and for other agricultural commodities
in advance of the beginning of the marketing year or season
(January 1 in the case of commodities not marketed on a
marketing year or season basis), but the level of price support
so announced shall not exceed the estimated maximum level of
price support specified in this Act, based upon the latest
information and statistics available to the Secretary when such
level of price support is announced; and the level of price
support so announced shall not be reduced if the maximum level
of price support when determined, is less than the level so
announced.
[(b)(1) Notwithstanding any other provision of law, the
Secretary may offer an option to producers of the 1996 crop of
wheat, feed grains, upland cotton, extra long staple cotton,
rice, or oilseeds and to dairy producers for the 1996 calendar
year to participate in commodity price support, production
adjustment, and payment programs as provided in this
subsection.
[(2) The Secretary may offer such programs based on the terms
and conditions as are provided in sections 101(h), 101B, 103B,
105B, 107B, 114, 204, and 205 of the Agricultural Act of 1949,
and any other relevant provisions of the Agricultural Act of
1949, as determined by the Secretary. Any established price or
loan and purchase level made available in accordance with this
subsection shall be established at the same level as that
established for the 1995 crop or, in the case of milk, for the
1995 calendar year.
[(3) The Secretary may offer each of the programs provided
for by this subsection if the Secretary has not made final
announcement of the terms of the commodity price support,
production adjustment, or payment programs for the 1996 crops
of wheat, feed grains, cotton, rice, or oilseeds, or the 1996
calendar year for dairy on or before the later of--
[(A) in the case of wheat, June 1, 1995;
[(B) in the case of feed grains, September 30, 1995;
[(C) in the case of upland cotton, November 1, 1995;
[(D) in the case of extra long staple cotton,
December 1, 1995;
[(E) in the case of rice, January 31, 1996;
[(F) in the case of oilseeds, July 15, 1995; and
[(G) in the case of dairy, November 1, 1995.
[(4) Producers may not participate in such programs unless a
law has been enacted subsequent to November 28, 1990, that
provides for loans and purchases for the 1996 crop of wheat,
feed grains, cotton, rice, or oilseeds, or for dairy for the
1996 calendar year.
[(5) The Secretary may use the funds, facilities and
authorities of the Commodity Credit Corporation in carrying out
this subsection.
[SEC. 407. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.
[(a) In General.--The Commodity Credit Corporation may sell
any farm commodity owned or controlled by the Corporation at
any price not prohibited by this section.
[(b) Inventories.--In determining sales policies for basic
agricultural commodities or storable nonbasic commodities, the
Corporation should consider the establishment of such policies
with respect to prices, terms, and conditions as the
Corporation determines will not discourage or deter
manufacturers, processors, and dealers from acquiring and
carrying normal inventories of the commodity of the current
crop.
[(c) Sales Price Restrictions.--
[(1) In general.--Except as otherwise provided in
this section, the Corporation shall not sell any basic
agricultural commodity or storable nonbasic commodity
at less than 115 percent of the lower of--
[(A) the current national average price
support loan rate for the commodity adjusted
for the current market differentials reflecting
grade, quality, location, reasonable carrying
charges, and other factors determined
appropriate by the Corporation; or
[(B) the loan repayment level.
[(2) Extra long staple cotton.--The Corporation may
sell extra long staple cotton for unrestricted use at
such price as the Corporation determines is appropriate
to maintain and expand export and domestic markets.
[(3) Oilseeds.--The Corporation shall not sell
oilseeds at less than the lower of--
[(A) 105 percent of the current national
average price support loan rate for the
oilseed, adjusted for the current market
differentials reflecting grade, quality,
location, reasonable carrying charges, and
other factors determined appropriate by the
Corporation; or
[(B) 115 percent of the loan repayment level.
[(4) Wheat and feed grains.--Whenever the producer
reserve program for wheat and feed grains established
under section 110 is in effect, the Corporation may not
sell any of its stocks of wheat or feed grains at a
level that is less than 150 percent of the then current
loan rate for wheat or feed grains.
[(5) Upland cotton.--The Commodity Credit Corporation
shall sell upland cotton for unrestricted use at the
same price the Corporation sells upland cotton for
export, but in no event at less than the amount
provided for in paragraph (1).
[(d) Nonapplication of Sales Price Restrictions.--The
foregoing restrictions of this section shall not apply to--
[(1) sales for new or byproduct uses;
[(2) sales of peanuts and oilseeds for the extraction
of oil;
[(3) sales for seed or feed if the sales will not
substantially impair any price support program;
[(4) sales of commodities that have substantially
deteriorated in quality or as to which there is a
danger of loss or waste through deterioration or
spoilage;
[(5) sales for the purpose of establishing claims
arising out of contract or against persons who have
committed fraud, misrepresentation, or other wrongful
acts with respect to the commodity;
[(6) sales for export (excluding sales of upland
cotton for export);
[(7) sales of wool; and
[(8) sales for other than primary uses.
[(e) Distress, Disaster, and Livestock Emergency Areas.--
[(1) In general.--Notwithstanding the foregoing
provisions of this section, the Corporation, on such
terms and conditions as the Secretary may consider in
the public interest, may--
[(A) make available any farm commodity or
product thereof owned or controlled by the
Corporation for use in relieving distress--
[(i) in any area in the United States
(including the Virgin Islands) declared
by the President to be an acute
distress area because of unemployment
or other economic cause, if the
President finds that the use will not
displace or interfere with normal
marketing of agricultural commodities;
and
[(ii) in connection with any major
disaster determined by the President to
warrant assistance by the Federal
Government under the Disaster Relief
and Emergency Assistance Act (42 U.S.C.
5121 et seq.); and
[(B) donate or sell commodities in accordance
with title VI.
[(2) Costs.--Except on a reimbursable basis, the
Corporation shall not bear any costs in connection with
making the commodity available under this subsection
beyond the cost of the commodities to the Corporation
in--
[(A) the storage of the commodity; and
[(B) the handling and transportation costs in
making delivery of the commodity to designated
agencies at one or more central locations in
each State or other area.
[(f) Efficient Operations.--
[(1) In general.--Subject to paragraph (2), the
foregoing restrictions of this section shall not apply
to sales of commodities the disposition of which is
desirable in the interest of the effective and
efficient conduct of the operations of the Corporation
because of the small quantities involved, or because of
age, location or questionable continued storability of
the commodity.
[(2) Offsets.--The sales shall be offset (if
necessary) by the purchases of commodities as the
Corporation determines is appropriate to prevent the
sales from substantially impairing any price support
program or unduly affecting market prices, except that
the purchase price shall not exceed the Corporation's
minimum sales price for the commodities for
unrestricted use.
[(3) Competitive bid basis.--Subject to the sales
price restrictions contained in this section, the
Corporation may sell any basic agricultural commodity
or storable nonbasic commodity on a competitive bid
basis, if the sale is determined to be appropriate by
the Secretary.
[(g) Sales for Export.--For the purposes of this section,
sales for export shall include--
[(1) sales made on condition that the identical
commodities sold be exported; and
[(2) sales made on condition that commodities of the
same kind and of comparable value or quantity be
exported, either in raw or processed form.
[SEC. 407A. QUALITY REQUIREMENTS FOR COMMODITY CREDIT CORPORATION OWNED
GRAIN.
[(a) Establishment of Minimum Standards.--Notwithstanding any
other provision of law, the Secretary shall establish minimum
quality standards that shall apply to grain that is deposited
for storage for the account of the Commodity Credit
Corporation. In establishing such standards, the Secretary
shall take into consideration factors related to the ability of
grain to withstand storage and assurance of acceptable end-use
performance.
[(b) Inspection of Grain Acquisitions.--The Commodity Credit
Corporation shall utilize Federal Grain Inspection Service
approved procedures to inspect and evaluate the condition of
the grain it acquires from producers. In no case shall this
section require the use of an official inspection unless the
producer so requests.
[Sec. 408. For the purposes of this Act--
[(a) A commodity shall be considered storable upon
determination by the Secretary that, in normal trade practice,
it is stored for substantial periods of time and that it can be
stored under the price-support program without excessive loss
through deterioration or spoilage or without excessive cost for
storage for such periods as will permit its disposition without
substantial impairment of the effectiveness of the price-
support program.
[(b) A ``cooperator'' with respect to any basic agricultural
commodity shall be a producer on whose farm the acreage planted
to the commodity does not exceed the farm acreage allotment for
the commodity under title III of the Agricultural Adjustment
Act of 1938, as amended, or in the case of price support for
corn or wheat to a producer outside the commercial corn-
producing or wheat-producing area, a producer who complies with
conditions of eligibility prescribed by the Secretary:
Provided, That for upland cotton a cooperator shall be a
producer on whose farm the acreage planted to such cotton does
not exceed the cooperator percentage, which shall be in the
case of the 1966 crop, 87.5 per centum of such farm acreage
allotment and, in the case of each of the 1967 through 1970
crops, such percentage, not less than 87.5 or more than 100 per
centum, of such farm acreage allotment as the Secretary may
specify for such crop, except that in the case of small farms
(i.e. farms on which the acreage allotment is 10 acres or less,
or on which the projected farm yield times the acreage
allotment is 3,600 pounds or less, and the acreage allotment
has not been reduced under section 344(m)) the acreage of
cotton on the farm shall not be required to be reduced below
the farm acreage allotment: And provided, That for the 1971
through 1977 crops of upland cotton a cooperator shall be a
producer on a farm on which a farm base acreage allotment has
been established who has set aside the acreage required under
section 103(e): Provided further, That for the 1976 through
1981 crops of rice, a cooperator shall be a person who produces
rice on a farm for which a farm acreage allotment has been
established or to which a producer acreage allotment has been
allocated and, if a set-aside is in effect, who has set aside
any acreage required under section 101(g): Provided further,
That for the 1978 through 1981 crops of upland cotton, a
cooperator shall be a producer on a farm who has set aside the
acreage required under section 103(f). For the purpose of this
subsection, a producer shall not be deemed to have exceeded his
farm acreage allotment unless such producer knowingly exceeded
such allotment.
[(c) A ``basic agricultural commodity'' shall mean corn,
cotton, peanuts, rice, tobacco, and wheat, respectively.
[(d) A ``nonbasic agricultural commodity'' shall mean any
agricultural commodity other than a basic agricultural
commodity.
[(e) The ``supply percentage'' as to any commodity shall be
the percentage which the estimated total supply is of the
normal supply as determined by the Secretary from the latest
available statistics of the Department of Agriculture as of the
beginning of the marketing year for the commodity.
[(f) ``Total supply'' of any nonbasic agricultural commodity
for any marketing year shall be the carry-over at the beginning
of such marketing year, plus the estimated production of the
commodity in the United States during the calendar year in
which such marketing year begins and the estimated imports of
the commodity into the United States during such marketing
year.
[(g) ``Carry-over'' of any nonbasic agricultural commodity
for any marketing year shall be the quantity of the commodity
on hand in the United States at the beginning of such marketing
year, not including any part of the crop or production of such
commodity which was produced in the United States during the
calendar year then current. The carry-over of any such
commodity may also include the quantity of such commodity in
processed form on hand in the United States at the beginning of
such marketing year, if the Secretary determines that the
inclusion of such processed quantity of the commodity is
necessary to effectuate the purposes of this Act.
[(h) ``Normal supply'' of any nonbasic agricultural commodity
for any marketing year shall be (1) the estimated domestic
consumption of the commodity for the marketing year for which
such normal supply is being determined, plus (2) the estimated
exports of the commodity for such marketing year, plus (3) an
allowance for carry-over. The allowance for carry-over shall be
the average carry-over of the commodity for the five marketing
years immediately preceding the marketing year in which such
normal supply is determined, adjusted for surpluses or
deficiencies caused by abnormal conditions, changes in
marketing conditions, or the operation of any agricultural
program. In determining normal supply, the Secretary shall make
such adjustments for current trends in consumption and for
unusual conditions as he may deem necessary.
[(i) ``Marketing year'' for any nonbasic agricultural
commodity means any period determined by the Secretary during
which substantially all of a crop or production of such
commodity is normally marketed by the producers thereof.
[(j) Any term defined in the Agricultural Adjustment Act of
1938, shall have the same meaning when used in this Act.
[(k)(1) Reference made in sections 402, 403, 406, 407, and
416 to the terms ``support price'', ``level of support'', and
``level of price support'' shall be considered to apply as well
to the loan and purchase level for wheat, feed grains, upland
cotton, extra long staple cotton, honey, oilseeds and rice
under this Act.
[(2) References made to the terms ``price support'', ``price
support operations'', and ``price support program'' in such
sections and in section 401(a) shall be considered as applying
as well to loan and purchase operations for wheat, feed grains,
upland cotton, extra long staple cotton, honey, oilseeds and
rice under this Act.
[(3) Notwithstanding any other provision of law, this
subsection shall be effective only for the 1991 through 1995
crops of wheat, feed grains, upland cotton, extra long staple
cotton, honey, oilseeds and rice.
[(l) ``Producer'' shall include a person growing hybrid seed
under contract. In determining the interest of a grower of
hybrid seed in a crop, the Secretary shall not take into
consideration the existence of a hybrid seed contract.
[Sec. 412. Determinations made by the Secretary under this
Act shall be final and conclusive: Provided, That the scope and
nature of such determinations shall not be inconsistent with
the provisions of the Commodity Credit Corporation Charter Act.
[Sec. 413. This Act shall not be effective with respect to
price support operations for any agricultural commodity for any
marketing year or season commencing prior to January 1, 1950,
except to the extent that the Secretary of Agriculture shall,
without reducing price support theretofore undertaken or
announced, elect to apply the provisions of this Act.
[Sec. 415. (a) Except as modified by this Act or by Public
Law 272, Eighty-first Congress, sections 201(b), 201(d),
201(e), 203, 207(a), and 208 of the Agricultural Act of 1948
shall be effective for the purpose of taking any action with
respect to the 1950 and subsequent crops upon the enactment of
this Act. If the time within which any such action is required
to be taken shall have elapsed prior to the enactment of this
Act, such action shall be taken within thirty days after the
enactment of this Act.
[(b) No provision of the Agricultural Act of 1948 shall be
deemed to supersede any provision of Public Law 272, Eighty-
first Congress.
[Sec. 416. (a) In order to prevent the waste of commodities
whether in private stocks or acquired through price-support
operations by the Commodity Credit Corporation before they can
be disposed of in normal domestic channels without impairment
of the price-support program or sold abroad at competitive
world prices, the Commodity Credit Corporation is authorized,
on such terms and under such regulations as the Secretary may
deem in the public interest: (1) upon application, to make such
commodities available to any Federal agency for use in making
payment for commodities not produced in the United States; (2)
to barter or exchange such commodities for strategic or other
materials as authorized by law; (3) in the case of food
commodities to donate such commodities to the Bureau of Indian
Affairs and to such State, Federal, or private agency or
agencies as may be designated by the proper State or Federal
authority and approved by the Secretary, for use in the United
States in nonprofit school-lunch programs, in nonprofit summer
camps for children, in the assistance of needy persons, and in
charitable institutions, including hospitals and facilities, to
the extent that they serve needy persons (including infants and
children). In the case of (3) the Secretary shall obtain such
assurance as he deems necessary that the recipients thereof
will not diminish their normal expenditures for food by reason
of such donation. In order to facilitate the appropriate
disposal of such commodities, the Secretary may from time to
time estimate and announce the quantity of such commodities
which he anticipates will become available for distribution
under (3). The Commodity Credit Corporation may pay, with
respect to commodities disposed of under this subsection,
reprocessing, packaging, transporting, handling, and other
charges accruing up to the time of their delivery to a Federal
agency or to the designated State or private agency. In
addition, in the case of food commodities disposed of under
this subsection, the Commodity Credit Corporation may pay the
cost of processing such commodities into a form suitable for
home or institutional use, such processing to be accomplished
through private trade facilities to the greatest extent
possible. For the purpose of this subsection the terms
``State'' and ``United States'' include the District of
Columbia and any Territory or possession of the United States.
[Dairy products acquired by the Commodity Credit Corporation
through price support operations may, insofar as they can be
used in the United States in nonprofit school lunch and other
nonprofit child feeding programs, in the assistance of needy
persons, and in charitable institutions, including hospitals,
to the extent that needy persons are served, be donated for any
such use prior to any other use or disposition. Notwithstanding
any other provision of law, such dairy products may be donated
for distribution to needy households in the United States and
to meet the needs of persons receiving nutrition assistance
under the Older Americans Act of 1965.
[(b)(1) The Secretary, subject to the requirements of
paragraph (10), may furnish eligible commodities for carrying
out programs of assistance in developing countries and friendly
countries under titles II and III of the Agricultural Trade
Development and Assistance Act of 1954 and under the Food for
Progress Act of 1985, as approved by the Secretary, and for
such purposes as are approved by the Secretary. To ensure that
the furnishing of commodities under this subsection is
coordinated with and complements other United States foreign
assistance, assistance under this subsection shall be
coordinated through the mechanism designated by the President
to coordinate assistance under the Agricultural Trade
Development and Assistance Act of 1954.
[(2) As used in this subsection, the term ``eligible
commodities'' means--
[(A) dairy products, wheat, rice, feed grains, and
oilseeds acquired by the Commodity Credit Corporation
through price support operations, and the products
thereof, that the Secretary determines meet the
criteria specified in subsection (a); and
[(B) such other edible agricultural commodities as
may be acquired by the Secretary or the Commodity
Credit Corporation in the normal course of operations
and that are available for disposition under this
subsection, except that no such commodities may be
acquired for the purpose of their use under this
subsection.
[(3)(A) Commodities may not be made available for disposition
under this subsection in amounts that (i) will, in any way,
reduce the amounts of commodities that traditionally are made
available through donations to domestic feeding programs or
agencies, or (ii) will prevent the Secretary from fulfilling
any agreement entered into by the Secretary under a payment-in-
kind program under this Act or other Acts administered by the
Secretary.
[(B)(i) The requirements of section 403(a) of the
Agricultural Trade Development and Assistance Act of 1954 shall
apply with respect to commodities furnished under this
subsection. Commodities may not be furnished for disposition to
any country under this subsection except on determinations by
the Secretary that--
[(I) the receiving country has the absorptive
capacity to use the commodities efficiently and
effectively; and
[(II) such disposition of the commodities will not
interfere with usual marketings of the United States,
nor disrupt world prices of agricultural commodities
and normal patterns of commercial trade with developing
countries.
[(ii) The requirement for safeguarding usual marketings of
the United States shall not be used to prevent the furnishing
under this subsection of any eligible commodity for use in
countries that--
[(I) have not traditionally purchased the commodity
from the United States; or
[(II) do not have adequate financial resources to
acquire the commodity from the United States through
commercial sources or through concessional sales
arrangements.
[(C) The Secretary shall take reasonable precautions to
ensure that--
[(i) commodities furnished under this subsection will
not displace or interfere with sales that otherwise
might be made; and
[(ii) sales or barter under paragraph (7) will not
unduly disrupt world prices of agricultural commodities
nor normal patterns of commercial trade with friendly
countries.
[(D) If eligible commodities are made available under this
subsection to a friendly country, nonprofit and voluntary
agencies and cooperatives shall also be eligible to receive
commodities for food aid programs in the country.
[(4) Agreements may be entered into under this subsection to
provide eligible commodities in installments over an extended
period of time. In agreements with recipients of eligible
commodities under this subsection (including nonprofit and
voluntary agencies or cooperatives), subject to the
availability of commodities each fiscal year, the Secretary, on
request, shall approve multiyear agreements to make
agricultural commodities available for distribution or sale by
the recipients if the agreements otherwise meet the
requirements of this subsection.
[(5)(A) Section 406 of the Agricultural Trade Development and
Assistance Act of 1954 shall apply to the commodities furnished
under this subsection.
[(B) The Commodity Credit Corporation may pay the processing
and domestic handling costs incurred, as authorized under this
subsection, in the form of eligible commodities, as defined in
paragraph (2)(A), if the Secretary determines that such in-kind
payment will not disrupt domestic markets.
[(6) The cost of commodities furnished under this subsection,
and expenses incurred under section 406 of the Agricultural
Trade Development and Assistance Act of 1954 in connection with
those commodities, shall be in addition to the level of
assistance programmed under that Act and shall not be
considered expenditures for international affairs and finance.
[(7) Eligible commodities furnished under this subsection may
be sold or bartered only with the approval of the Secretary and
solely as follows:
[(A) Sales and barter that are incidental to the
donation of the commodities or products.
[(B) Sales and barter to finance the distribution,
handling, and processing costs of the donated
commodities or products in the importing country or in
a country through which such commodities or products
must be transshipped, or other activities in the
importing country that are consistent with providing
food assistance to needy people.
[(C) Sales and barter of commodities and products
furnished to intergovernmental agencies or
organizations, insofar as they are consistent with
normal programming procedures in the distribution of
commodities by those agencies or organizations.
[(D)(i) Sales of commodities and products furnished
to nonprofit and voluntary agencies, or cooperatives,
for food assistance under agreements that provide for
the use, by the agency or cooperative, of foreign
currency proceeds generated from such sale of
commodities or products for the purposes established in
clause (ii) of this subparagraph.
[(ii) Foreign currencies generated from partial or
full sales or barter of commodities by a nonprofit and
voluntary agency or cooperative shall be used--
[(I) to transport, store, distribute, and
otherwise enhance the effectiveness of the use
of commodities and the products thereof donated
under this section; and
[(II) to implement income generating,
community development, health, nutrition,
cooperative development, agricultural
programs, and other developmental
activities.
In addition, foreign currency proceeds generated in
Poland may also be used by governmental and
nongovernmental agencies or cooperatives for eligible
activities approved by the joint commission established
pursuant to section 2226 of the American Aid to Poland
Act of 1988 and by the United States chief of
diplomatic mission in Poland that would improve the
quality of life of the Polish people and would
strengthen and support the activities of governmental
or private, nongovernmental independent institutions in
Poland. Activities eligible under the preceding
sentence include--
[(I) any project undertaken in Poland under the
auspices of the Charitable Commission of the Polish
Catholic Episcopate for the benefit of handicapped or
orphaned children;
[(II) any project for the reconstruction, renovation,
or maintenance of the Research Center on Jewish History
and Culture of the Jagiellonian University of Krakow,
Poland, established for the study of events related to
the Holocaust in Poland;
[(III) any other project or activity which
strengthens and supports private and independent
sectors of the Polish economy, especially independent
farming and agriculture; and
[(IV) the Polish Catholic Episcopate's Rural Water
Supply Foundation.
[(iii) Except as otherwise provided in clause (v),
such agreements, taken together for each fiscal year,
shall provide for sales of commodities and products for
foreign currency proceeds in amounts that are, in the
aggregate, not less than 10 percent of the aggregate
value of all commodities and products furnished, or the
minimum tonnage required, whichever is greater, for
carrying out programs of assistance under this
subsection in such fiscal year. The minimum allocation
requirements of this clause apply with respect to
commodities and products made available under this
subsection for carrying out programs of assistance
under titles II and III of the Agricultural Trade
Development and Assistance Act of 1954, and not with
respect to commodities and products made available to
carry out the Food for Progress Act of 1985.
[(iv) Foreign currency proceeds generated from the
sale of commodities or products under this subparagraph
shall be expended within the country of origin within
one year of acquisition of such currency, except that
the Secretary may permit the use of such proceeds (I)
in countries other than the country of origin as
necessary to expedite the transportation of commodities
and products furnished under this subsection, (II)
after one year of acquisition as appropriate to achieve
the purposes of clause (i), and (III) in a country
other than the country of origin, if such proceeds are
generated in a currency generally accepted in such
other country.
[(v) The provisions of clause (iii) of this
subparagraph establishing minimum annual allocations
for sales and use of proceeds shall not apply to the
extent that there have not been sufficient requests for
such sales and use of proceeds nor to the extent
required under paragraph (3).
[(E) Sales and barter to cover expenses incurred
under paragraph (5)(a).
[(F) The provisions of sections 403(i) and 407(c) of the
Agricultural Trade Development and Assistance Act of 1954 shall
apply to donations, sales and barters of eligible commodities
under this subsection.
No portion of the proceeds or services realized from sales or
barter under this paragraph may be used to meet operating and
overhead expenses, except as otherwise provided in subparagraph
(C) and except for personnel and administrative costs incurred
by local cooperatives.
[(8)(A) To the maximum extent practicable, expedited
procedures shall be used in the implementation of this
subsection.
[(B) The Secretary shall be responsible for regulations
governing sales and barter, and the use of foreign currency
proceeds, under paragraph (7) of this subsection that will
provide reasonable safeguards to prevent the occurrence of
abuses in the conduct of activities provided for in paragraph
(7).
[(C)(i) If a proposal to make eligible commodities available
under this subsection is submitted by a nonprofit and voluntary
agency or cooperative with the concurrence of the appropriate
United States Government field mission or if a proposal to make
such commodities available to a nonprofit and voluntary agency
or cooperative is submitted by the United States Government
field mission, a decision on the proposal shall be provided
within 45 days after receipt by the Agency for International
Development office in Washington, D.C. The response shall
detail the reasons for approval or denial of the proposal. If
the proposal is denied, the response shall specify the
conditions that would need to be met for the proposal to be
approved.
[(ii) Not later than 30 days before the issuance of a final
guideline issued to carry out this subsection, the Secretary
shall--
[(I) provide notice of the proposed guideline to
nonprofit and voluntary agencies and cooperatives that
participate in programs under this subsection, and
other interested persons, that the proposed guideline
is available for review and comment;
[(II) make the proposed guideline available, on
request, to nonprofit and voluntary agencies,
cooperatives, and others; and
[(III) take any comments received into consideration
before the issuance of the final guideline.
[(iii) Not later than 15 days after receipt of a call forward
from a field mission for commodities or products that meets the
requirements of this subsection, the order for the purchase or
the supply, from inventory, of such commodities or products
shall be transmitted to the Commodity Credit Corporation.
[(9)(A) Each recipient of commodities and products approved
for sale or barter under paragraph (7) shall report to the
Secretary information with respect to the items required to be
included in the Secretary's report pursuant to clauses (i)
through (iv) of subparagraph (B). Reports pursuant to this
subparagraph shall be submitted in accordance with regulations
of the Secretary. Such regulations shall require at least one
report annually, to be submitted not later than December 31
following the end of the fiscal year in which the commodities
and products are received; except that a report shall not be
required with respect to fiscal year 1985.
[(B) Not later than February 15, 1987, and annually
thereafter, the Secretary shall report to the Congress on sales
and barter, and use of foreign currency proceeds, under
paragraph (7) during the preceding fiscal year. Such report
shall include information on--
[(i) the quantity of commodities furnished for such
sale or barter;
[(ii) the amount of funds (including dollar
equivalents for foreign currencies) and value of
services generated from such sales and barter in such
fiscal year;
[(iii) how such funds and services were used;
[(iv) the amount of foreign currency proceeds that
were used under agreements under subparagraph (D) of
paragraph (7) in such fiscal year, and the percentage
of the quantity of all commodities and products
furnished under this subsection in such fiscal year
such use represented;
[(v) the Secretary's best estimate of the amount of
foreign currency proceeds that will be used, under
agreements under subparagraph (D) of paragraph (7), in
the then current fiscal year and the next following
fiscal year (if all requests for such use are agreed
to), and the percentage that such estimated use
represents of the quantity of all commodities and
products that the Secretary estimates will be furnished
under this subsection in each such fiscal year;
[(vi) the effectiveness of such sales, barter, and
use during such fiscal year in facilitating the
distribution of commodities and products under this
subsection;
[(vii) the extent to which sales, barter, or uses--
[(I) displace or interfere with commercial
sales of United States agricultural commodities
and products that otherwise would be made,
[(II) affect usual marketings of the United
States,
[(III) disrupt world prices of agricultural
commodities or normal patterns of trade with
friendly countries, or
[(IV) discourage local production and
marketing of agricultural commodities in the
countries in which commodities and products are
distributed under this subsection; and
[(viii) the Secretary's recommendations, if any, for
changes to improve the conduct of sales, barter, or use
activities under paragraph (7).
[(10)(A) Subject to the limitations established under
paragraph (3), the Secretary shall make available for
disposition under this subsection in each of the fiscal years
1988 through 1990 not less than the minimum quantities of
eligible commodities specified in subparagraph (B).
[(B) The minimum quantity of eligible commodities that shall
be made available for disposition under this subsection in each
fiscal year shall be--
[(i) 500,000 metric tons of wheat, rice, feed grains,
and oilseeds from the Corporation's uncommitted stocks,
or an amount equal to 10 percent of the Corporation's
uncommitted stocks of wheat, rice, feed grains, and
oilseeds as of the end of such fiscal year (as
estimated by the Secretary), whichever is less; and
[(ii) 10 percent of the Corporation's uncommitted
stocks of dairy products, but not less than 150,000
metric tons of such products to the extent that
uncommitted stocks are available.
The Secretary shall make such estimation of expected year-end
levels of the Corporation's uncommitted stocks prior to the
beginning of the fiscal year or, in the case of fiscal year
1986, prior to March 31, 1986. The Secretary's determination as
to the amount of the Corporation's stocks that shall be made
available for disposition under this subsection for such fiscal
year shall be published in the Federal Register, along with a
breakdown by kind of commodity and the quantity of each kind of
commodity that shall be made available, before the beginning of
such fiscal year or, in the case of fiscal year 1986, March 31,
1986.
[(C) Of the aggregate amounts made available each fiscal year
pursuant to both clauses (i) and (ii) of subparagraph (B), not
less than 75,000 metric tons shall be made available to carry
out the Food for Progress Act of 1985.
[(D)(i) The Secretary--
[(I) may waive the minimum quantity requirements of
subparagraphs (A) and (B) for a fiscal year to the
extent that the Secretary determines and reports to
Congress that there are not sufficient requests for
eligible commodities under this subsection for such
fiscal year, except that the waiver authority of this
subclause may not be used to waive the minimum quantity
requirement of subparagraph (C);
[(II) may waive the minimum quantity requirement of
subparagraph (C) in accordance with subsection (f)(2)
of the Food for Progress Act of 1985; and
[(III) may waive the minimum quantity requirements of
subparagraphs (A), (B), and (C) for a fiscal year, if
the Secretary determines that the restrictions on the
furnishing of commodities under paragraph (3) prevent
the making available of commodities in such quantities.
[(ii) For any fiscal year in which the minimum levels of
uncommitted Commodity Credit Corporation stocks specified in
subparagraph (B) are not made available and during which any
requests for commodities under this subsection are rejected,
the Secretary shall provide a detailed, written explanation to
Congress, at the end of such fiscal year, of the reasons for
the rejections of such requests.
[(11)(A) The Secretary may furnish eligible commodities under
this subsection in connection with (i) concessional sales
agreements entered into under title I of the Agricultural Trade
Development and Assistance Act of 1954 or other statutes, or
(ii) agricultural export bonus or promotion programs carried
out under the Commodity Credit Corporation Charter Act or other
statutes.
[(B) Eligible commodities may be furnished by the Secretary
under this subsection in connection with agreements by
recipient countries to acquire additional agricultural
commodities from the United States through commercial
arrangements.
[(C) The amount of any commodity furnished under
subparagraphs (A) and (B) of this paragraph in any fiscal year
shall not be considered for the purpose of determining whether
the requirements of paragraph (10)(A) of this subsection have
been met during such fiscal year.
[(12) There is authorized to be appropriated for fiscal year
1988, in addition to any other funds authorized to be
appropriated, $1,000,000 for technical assistance for the sale
or barter of commodities under paragraph (7) to strengthen
nonprofit private organizations and cooperatives in the
Philippines.
[(c) To prevent the waste of dairy products acquired by the
Commodity Credit Corporation through price support operations,
the Corporation, on such terms and under such regulations as
the Secretary may prescribe, shall carry out a two-year pilot
program under which the Corporation shall barter or exchange
such dairy products, to the extent they are available, for
forty thousand metric tons (consisting of twenty thousand
metric tons in each year of the pilot program) of ultra-high
temperature processed fluid milk. Such barter or exchange shall
be effected on the basis of competitive bids submitted by
domestic processors. The processed milk acquired by the
Corporation under this subsection shall be available for
donation through foreign governments and public and nonprofit
private humanitarian organizations for the assistance of needy
persons outside the United States, and the Corporation may pay,
with respect to such processed milk donated under this
subsection, transporting, handling, and other charges,
including the cost of overseas delivery. Any donations under
this subsection shall be coordinated through the mechanism
designated by the President to coordinate assistance under the
Agricultural Trade Development and Assistance Act of 1954 and
shall be in addition to the level of assistance programmed
under that Act. The pilot program shall be implemented by the
Corporation as soon as practicable after the enactment of the
Agricultural Programs Adjustment Act of 1984 and shall be
operated for a period of two years after its implementation.
Upon completion of the pilot program, the Secretary shall
submit a report to Congress on its operation.
[Sec. 420. Any price support program in effect on cottonseed
or any of its products shall be extended to the same seed and
products of the cottons defined under section 347(a) of the
Agricultural Adjustment Act of 1938, as amended.
[FORGIVENESS OF VIOLATIONS
[Sec. 422. Notwithstanding any other provision of law,
whenever a producer samples, turns, moves, or replaces grain or
any other commodity which is security for a Commodity Credit
Corporation producer loan or is held under a producer reserve
program, and does so in violation of law or regulation, the
appropriate county committee established under section 8(b) of
the Soil Conservation and Domestic Allotment Act may forgive
some or all of the penalties and requirements that would
normally be imposed on the producer by reason of the violation,
if such committee determines that (1) the violation occurred
inadvertently or accidentally, because of lack of knowledge or
understanding of the law or regulation, or because the producer
or the producer's agent acted to prevent spoilage of the
commodity, and (2) the violation did not result in harm or
damage to the rights or interests of any person. The county
committee shall furnish a copy of its determination to the
Administrator of the Agricultural Stabilization and
Conservation Service and the appropriate State committee
established under section 8(b) of the Soil Conservation and
Domestic Allotment Act. The determination may be disapproved by
either the Administrator or the State committee within sixty
days after receipt of a copy of the determination. Any
determination not disapproved by the Administrator or such
State committee within such sixty-day period shall be
considered approved.
[Sec. 423. (a) Notwithstanding any other provision of law, in
order to prevent the accumulation of excessive stocks of
agricultural commodities through the price support and
stabilization operations of the Commodity Credit Corporation
the Corporation may, under terms and conditions established by
the Secretary, make its accumulated stocks of agricultural
commodities available, at no cost or reduced cost, to encourage
the purchase of such commodities for the production of liquid
fuels and agricultural commodity byproducts. In carrying out
the program established by this section, the Secretary shall
ensure, insofar as possible, that any use of agricultural
commodities made available be made in such manner as to
encourage increased use and avoid displacing usual marketings
of agricultural commodities.
[(b) In determining the feasibility of providing for the
processing of Commodity Credit Corporation stocks of
commodities under subsection (a), the Secretary shall consider
the nature of the commodities, and the acquisition,
transportation, handling, storage, interest, and other costs
associated with acquiring and maintaining such stocks,
including the effect of such stocks in depressing commodity
prices, as well as the value and utility of such stocks when
processed into liquid fuels and agricultural commodity
byproducts.
[(c) Not later than one hundred and twenty days after the
date of enactment of this section, and annually thereafter, the
Secretary shall report to the Congress with respect to the
operation of this section, including any recommendations for
legislative changes the Secretary finds necessary with respect
to the authority provided in this section.
[SEC. 427. CROP INSURANCE REQUIREMENT.
[As a condition of receiving any benefit (including payments)
under title I or II for each of the 1995 and subsequent crops
of tobacco, rice, extra long staple cotton, upland cotton, feed
grains, wheat, peanuts, oilseeds, and sugar, a producer must
obtain at least catastrophic risk protection insurance coverage
under section 508 of the Federal Crop Insurance Act (7 U.S.C.
1508) for the crop and crop year for which the benefit is
sought, if the coverage is offered by the Corporation.
[TITLE V--ACREAGE BASE AND YIELD SYSTEM
[SEC. 501. PURPOSE.
[The purpose of this title is to prescribe a system for
establishing crop acreage bases and program payment yields for
the wheat, feed grains, upland cotton, and rice programs under
this Act that is efficient, equitable, flexible, and
predictable.
[SEC. 502. DEFINITIONS.
[For purposes of this title:
[(1) County committee.--The term ``county committee''
means the county committee established under section
8(b) of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)) for the county in which the
farm is administratively located.
[(2) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the
Secretary, other oilseeds.
[(3) Program crop.--The term ``program crop'' means a
crop of wheat, corn, grain sorghums, oats, barley,
upland cotton, or rice.
[SEC. 503. CROP ACREAGE BASES.
[(a) Establishment.--
[(1) In general.--The Secretary shall provide for the
establishment and maintenance of crop acreage bases for
each program crop, including any program crop produced
under an established practice of double cropping.
[(2) Limitation.--The sum of the crop acreage bases
on the farm may not exceed the cropland on the farm,
except to the extent there is an established practice
of double cropping on the farm.
[(3) Definition of double cropping.--As used in this
subsection, the term ``double cropping'' means a
farming practice, as defined by the Secretary, that has
been carried out on a farm during at least 3 of the 5
crop years immediately preceding the crop year for
which the crop acreage base for the farm is
established.
[(b) Calculation.--
[(1) In general.--Except as provided in paragraph
(2), the crop acreage base for each program crop for a
farm for a crop year shall be the number of acres that
is equal to the average of the acreage planted and
considered planted to the program crop for harvest on
the farm in each of the 5 crop years preceding the crop
year.
[(2) Cotton and rice.--
[(A) In general.--In the case of upland
cotton and rice, except as provided in
subparagraph (B), the crop acreage base for
such crop shall be equal to the average of the
acreage planted and considered planted to such
crop for harvest on the farm in each of the 3
crop years preceding such crop year.
[(B) Exception.--
[(i) 1991 crops.--In the case of each
of the 1991 crops of upland cotton and
rice, if the producers on a farm did
not participate in the production
adjustment program established for the
1989 and 1990 crops of upland cotton
and rice, respectively, the crop
acreage base for the 1991 crop shall be
equal to the average of the acreage
planted and considered planted to such
crop for harvest on the farm in each of
the 5 crop years preceding the 1991
crop year, excluding all crop years in
which planted and considered planted
acreage was not established for the
farm. Any crop acreage base established
in accordance with this subparagraph
shall not exceed a number of acres
equal to the average of the acreage
planted and considered planted to such
crop for harvest on the farm in each of
the 2 crop years preceding the 1991
crop year.
[(ii) 1992 crops.--In the case of
each of the 1992 crops of upland cotton
and rice, if the producers on a farm
did not participate in the production
adjustment program established for the
1990 and 1991 crops of upland cotton
and rice, respectively, the crop
acreage base for the 1992 crop shall be
equal to the average of the acreage
planted and considered planted to such
crop for harvest on the farm in each of
the 5 crop years preceding the 1992
crop year, excluding all crop years in
which planted and considered planted
acreage was not established for the
farm. Any crop acreage base established
in accordance with this subparagraph
shall not exceed a number of acres
equal to the average of the acreage
planted and considered planted to such
crop for harvest on the farm in each of
the 2 crop years preceding the 1992
crop year.
[(c) Acreage Considered Planted.--For purposes of this Act,
acreage considered planted to a program crop shall consist of--
[(1) any reduced acreage and diverted acreage on the
farm;
[(2) any acreage on the farm that producers were
prevented from planting to the crop because of drought,
flood, or other natural disaster, or other condition
beyond the control of the producers;
[(3) acreage in an amount equal to the difference
between the permitted acreage for a program crop and
the acreage planted to the crop, if the acreage
considered to be planted is devoted to conservation
uses or the production of commodities permitted by the
Secretary under the programs established for any of the
1991 through 1997 crops of wheat, feed grains, upland
cotton, and rice established under sections
107B(c)(1)(E), 105B(c)(1)(E), 103B(c)(1)(D), and
101B(c)(1)(D), respectively;
[(4) acreage in an amount equal to the difference
between the permitted acreage for a program crop and
the acreage planted to the crop, if the acreage
considered to be planted is devoted to the production
of commodities in accordance with section 504;
[(5) any acreage on the farm that the Secretary
determines is necessary to be included in establishing
a fair and equitable crop acreage base;
[(6) acreage in an amount not to exceed 20 percent of
the crop acreage base for a crop of feed grains or
wheat if--
[(A) the acreage is planted to dry peas
(limited to Austrian peas, wrinkled, seed,
green, yellow, and umatilla) and lentils; and
[(B) payments are not received by producers
under sections 105B(c)(1)(E) and 107B(c)(1)(E),
as the case may be;
[(7) the crop acreage base for the crop, if producers
on the farm forgo receiving any payments under the
program established under title I for the crop and
certify that no acreage on the farm was planted to--
[(A) the crop; or
[(B) any fruit or vegetable crop (including
potatoes and dry edible beans) not designated
as an industrial or experimental crop by the
Secretary, in excess of normal plantings; and
[(8) any acreage on the farm for which the crop
acreage base for the crop on the farm was adjusted
because of a condition or occurrence beyond the control
of the producer pursuant to subsection (h).
[(d) Construction of Planting History.--For the purpose of
determining the crop acreage base for the 1991 and subsequent
crop years for any farm, the county committee, in accordance
with regulations prescribed by the Secretary, may construct a
planting history for such crop if--
[(1) planting records for such crop for any of the 5
crop years preceding such crop year are incomplete or
unavailable; or
[(2) during at least one but not more than 4 of the 5
crop years preceding such crop year, the program crop
was not produced on the farm.
[(e) Crop Rotation and Other Factors.--The Secretary shall
make adjustments to reflect crop rotation practices and to
reflect such other factors as the Secretary determines should
be considered in determining a fair and equitable crop acreage
base, including adjustments necessary to enable producers to
meet the requirements of title XII of the Food Security Act of
1985 (16 U.S.C. 3801 et seq.).
[(f) Prevented Planting.--If a county committee determines,
in accordance with regulations prescribed by the Secretary,
that the occurrence of a natural disaster or other similar
condition beyond the control of the producer prevented the
planting of a program crop on any farm within the county (or
substantially destroyed any such program crop after it had been
planted but before it had been harvested), the producer may
plant any other crop, including any other program crop, on the
acreage of such farm that, but for the occurrence of such
disaster or other condition, would have been devoted to the
production of a program crop. For purposes of determining the
crop acreage base, any acreage on the farm on which a
substitute crop, including any program crop, is planted under
this subsection shall be taken into account as if such acreage
had been planted to the program crop for which the other crop
was substituted.
[(g) Subsequent Crop Years.--A producer who is eligible to
receive a deficiency payment for any program crop or crop of
extra long staple cotton in any crop year with respect to a
farm may not use the acreage planted or considered planted to
any program crop or crop of extra long staple cotton on the
farm in the crop year to increase any crop acreage base
established for the farm in a subsequent crop year.
[(h) Adjustment of Bases.--
[(1) In general.--The county committee, in accordance
with regulations prescribed by the Secretary, may
adjust any crop acreage base for any program crop for
any farm if the crop acreage base for the crop on the
farm would otherwise be adversely affected by a
condition or occurrence beyond the control of the
producer.
[(2) Restoration of Crop Acreage Base.--
[(A) In general.--For the 1992 through 1997 crop
years, the county committee shall allow an eligible
producer to increase individual crop acreage bases on
the farm, subject to subsection (a)(2), above the
levels of base that would otherwise be established
under this section, in order to restore the total of
crop acreage bases on the farm for the 1992 through
1997 crop years to the same level as the total of crop
acreage bases on the farm for the 1990 crop year.
[(B) Eligible producer defined.--For the purposes of
this paragraph, the term ``eligible producer'' means a
producer of upland cotton or rice who, the appropriate
county committee determines--
[(i) was required to reduce one or more
individual crop acreage bases on the farm
during the 1991 crop year in order to comply
with subsection (a)(2) and the change in the
calculation of cotton and rice crop acreage
bases to a 3-year formula as provided in this
section; and
[(ii) has participated in the price support
program during the 1991 crop year and each
subsequent crop year through the current crop
year.
[(C) Regulations.--The Secretary shall issue
regulations to carry out this paragraph.
[SEC. 504. PLANTING FLEXIBILITY.
[(a) In General.--The producers on a farm may, in accordance
with this section, plant for harvest on the crop acreage base
established for a program crop a commodity, other than the
specific program crop, without suffering a reduction in the
crop acreage base as a result of the production.
[(b) Specified Commodities.--
[(1) Permitted crops.--Except as provided in
paragraph (2), for purposes of this section, the
commodities that may be planted for harvest on a crop
acreage base are--
[(A) any program crop;
[(B) any oilseed;
[(C) any industrial or experimental crop
designated by the Secretary;
[(D) any other crop, except any fruit or
vegetable crop (including potatoes and dry
edible beans) not designated by the Secretary
as--
[(i) an industrial or experimental
crop; or
[(ii) a crop for which no substantial
domestic production or market exists;
and
[(E) mung beans.
[(2) Limitation.--For purposes of this section, the
Secretary may, at the discretion of the Secretary,
prohibit the planting on a crop acreage base of any
crop specified in paragraph (1).
[(3) Notification.--With regard to commodities that
may be planted pursuant to this subsection, the
Secretary shall make a determination in each crop year
of the commodities that may not be planted pursuant to
this subsection and shall make available a list of the
commodities.
[(c) Limitation on Acreage.--
[(1) In general.--Except as provided in paragraph
(2), the quantity of the crop acreage base that may be
planted to a commodity, other than the specific program
crop, under this section may not exceed 25 percent of
the crop acreage base.
[(2) Exception for soybeans.--If on January 1 of any
calendar year the Secretary estimates that the national
average price of soybeans during the following
marketing year for soybeans would be less than 105
percent of the nonrecourse loan level for soybeans
established in section 205 if soybeans were allowed to
be planted on up to 25 percent of the crop acreage base
under this section, the quantity of the crop acreage
base that may be planted to soybeans under this section
may not exceed 15 percent of the crop acreage base.
[(d) Plantings in Excess of Permitted Acreage.--
Notwithstanding any other provision of this Act, producers of a
program crop who are participating in the production adjustment
program for that program crop under this Act shall be allowed
to plant that program crop in a quantity that exceeds the
permitted acreage for that crop without losing their
eligibility for loans, purchases, or payments with respect to
that crop under this Act if--
[(1) the acreage planted to the program crop on the
farm in excess of the permitted acreage does not exceed
25 percent of the crop acreage bases on the farm for
other program crops; and
[(2) the producer agrees to a reduction in permitted
acreage for the other program crops produced on the
farm by a quantity equal to the overplanting.
[(e) Loan Eligibility.--
[(1) In general.--Producers of a specific program
crop (referred to in this subsection as the ``original
program crop'') who plant for harvest on the crop
acreage base established for such original program crop
another program crop in accordance with this section
and who are not participants in the program established
for such other program crop shall be eligible to
receive loans, purchases, or loan deficiency payments
for such other program crop on the same terms and
conditions as are provided to participants in a
production adjustment program established for such
other program crop.
[(2) Requirements.--Producers shall be eligible to
receive loans, purchases, or loan deficiency payments
under this subsection if the producers--
[(A) plant such other program crop in an
amount that does not exceed 25 percent of the
crop acreage base established for the original
program crop; and
[(B) agree to a reduction in the permitted
acreage for the original program crop for the
particular crop year.
[SEC. 505. FARM PROGRAM PAYMENT YIELDS.
[(a) Establishment.--The Secretary shall provide for the
establishment of a farm program payment yield for each farm for
each program crop for each crop year in accordance with
subsection (b) or (c).
[(b) Farm Program Payment Yields Based on 1990 Crop Year.--
[(1) In general.--If the Secretary determines that
farm program payment yields shall be established in
accordance with this subsection, except as provided in
paragraphs (2) and (3), the farm program payment yield
for each of the 1991 through 1997 crop years shall be
the farm program payment yield for the 1990 crop year
for the farm.
[(2) Additional yield payments.--In the case of each
of the 1991 through 1997 crop years for a commodity, if
the farm program payment yield for a farm is reduced
more than 10 percent below the farm program payment
yield for the 1985 crop year, the Secretary shall make
available to producers established price payments for
the commodity in such amount as the Secretary
determines is necessary to provide the same total
return to producers as if the farm program payment
yield had not been reduced more than 10 percent below
the farm program payment yield for the 1985 crop year.
The payments shall be made available not later than the
time final deficiency payments are made.
[(3) No crop or yield available.--If no crop of the
commodity was produced on the farm or no farm program
payment yield was established for the farm for any of
the 1981 through 1985 crop years (or, as appropriate,
the 1986 through 1990 crop years), the farm program
payment yield shall be established on the basis of the
average farm program payment yield for the crop years
for similar farms in the area.
[(4) National, state, or county yields.--If the
Secretary determines the action is necessary, the
Secretary may establish national, State, or county
program payment yields on the basis of--
[(A) historical yields, as adjusted by the
Secretary to correct for abnormal factors
affecting the yields in the historical period;
or
[(B) the Secretary's estimate of actual
yields for the crop year involved if historical
yield data is not available.
[(5) Balancing yields.--If national, State, or county
program payment yields are established, the farm
program payment yields shall balance to the national,
State, or county program payment yields.
[(c) Determination of Yields.--
[(1) Actual yields.--With respect to the 1991 and
subsequent crop years, the Secretary may--
[(A) establish the farm program payment yield
as provided in subsection (a); or
[(B) establish a farm program payment yield
for any program crop for any farm on the basis
of the average of the yield per harvested acre
for the crop for the farm for each of the 5
crop years immediately preceding the crop year,
excluding the crop year with the highest yield
per harvested acre, the crop year with the
lowest yield per harvested acre, and any crop
year in which such crop was not planted on the
farm.
[(2) Prior yields.--For purposes of the preceding
sentence, the farm program payment yield for the 1986
crop year and the actual yield per harvested acre with
respect to the 1987 and subsequent crop years shall be
used in determining farm program payment yields.
[(3) Reduction limitation.--Notwithstanding any other
provision of this paragraph, for purposes of
establishing a farm program payment yield for any
program crop for any farm for the 1991 and subsequent
crop years, the farm program payment yield for the 1986
crop year may not be reduced more than 10 percent below
the farm program payment yield for the farm for the
1985 crop year.
[(4) Adjustment of yields.--The county committee, in
accordance with regulations prescribed by the
Secretary, may adjust any farm program payment yield
for any program crop for any farm if the farm program
payment yield for the crop on the farm does not
accurately reflect the productive potential of the
farm.
[(d) Assignment of Yields.--In the case of any farm for which
the actual yield per harvested acre for any program crop
referred to in subsection (c) for any crop year is not
available, the county committee may assign the farm a yield for
the crop for the crop year on the basis of actual yields for
the crop for the crop year on similar farms in the area.
[(e) Actual Yield Data.--
[(1) Provision.--The Secretary shall, under such
terms and conditions as the Secretary may prescribe,
allow producers to provide to county committees data
with respect to the actual yield for each farm for each
program crop.
[(2) Maintenance.--The Secretary shall maintain the
data for at least 5 crop years after receipt in a
manner that will permit the data to be used, if
necessary, in the administration of the commodity
programs.
[(3) Notification.--The Secretary shall provide
timely notification to producers of the provisions of
this subsection.
[SEC. 506. PLANTING AND PRODUCTION HISTORY OF FARMS.
[Each county committee, in accordance with regulations
prescribed by the Secretary, may require any producer who seeks
to establish a crop acreage base or farm program payment yield
for a farm for a crop year to provide planting and production
history of the farm for each of the 5 crop years immediately
preceding the crop year.
[SEC. 507. ESTABLISHMENT OF BASES AND YIELDS BY COUNTY COMMITTEES.
[Each county committee may, in accordance with regulations
prescribed by the Secretary, provide for the establishment of a
crop acreage base, and farm program payment yield with respect
to any farm administratively located within the county if the
crop acreage base or farm program payment yield cannot
otherwise be established under this title. The crop acreage
bases and farm program payment yields shall be established in a
fair and equitable manner, but no such bases or farm program
payment yields shall be established for a farm if the producer
on the farm is subject to sanctions under any provision of
Federal law for cultivating highly erodible land or converted
wetland.
[SEC. 508. APPEALS.
[The Secretary shall establish an administrative appeal
procedure that provides for an administrative review of
determinations made with respect to crop acreage bases and farm
program payment yields.
[SEC. 509. CROPS.
[Notwithstanding any other provision of law, this title shall
be effective only for the 1991 through 1997 program crops.
[TITLE VI--EMERGENCY LIVESTOCK FEED ASSISTANCE ACT OF 1988
[SHORT TITLE
[Sec. 601. This title may be cited as the ``Emergency
Livestock Feed Assistance Act of 1988''.
[DEFINITIONS
[Sec. 602. As used in this title:
[(1) The term ``livestock producer'' means--
[(A) a person that is actively engaged in
farming and that receives a substantial amount
of total income from the production of grain or
livestock, as determined by the Secretary, that
is--
[(i) an established producer or
husbander of livestock or a dairy
producer who is a citizen of, or legal
resident alien in, the United States;
or
[(ii) a farm cooperative, private
domestic corporation, partnership, or
joint operation in which a majority
interest is held by members,
stockholders, or partners who are
citizens of, or legal resident aliens
in, the United States, if such
cooperative, corporation, partnership,
or joint operation is engaged in
livestock production or husbandry, or
dairy production; or
[(B) Any of the following entities that is
actively engaged in livestock production or
husbandry, or dairy production--
[(i) any Indian tribe (as defined in
section 4(b) of the Indian Self-
Determination and Education Assistance
Act (25 U.S.C. 450(b)));
[(ii) any Indian organization or
entity chartered under the Act of June
18, 1934 (48 Stat. 984, chapter 576; 25
U.S.C. 461 et seq.), commonly known as
the ``Indian Reorganization Act'';
[(iii) any tribal organization (as
defined in section 4(c) of the Indian
Self-Determination and Education
Assistance Act (25 U.S.C. 450b(c))); or
[(iv) any economic enterprise (as
defined in section 3(e) of the Indian
Financing Act of 1974 (25 U.S.C.
1452(e)));
[(2) The term ``livestock'' means cattle, sheep,
goats, swine, poultry (including egg-producing
poultry), equine animals used for food or in the
production of food, fish used for food, and other
animals designated by the Secretary (at the Secretary's
sole discretion) that--
[(A) are part of a foundation herd (including
producing dairy cattle) or offspring; or
[(B) are purchased as part of a normal
operation and not to obtain additional benefits
under this title.
[(3) The term ``State'' means any State of the United
States, the Commonwealth of Puerto Rico, the Virgin
Islands, or Guam.
[(4) The term ``feed'', for the purposes of emergency
feed assistance, means any type of feed (including feed
grain, oilseed meal, premix or mixed feed, liquid or
dry supplemental feed, roughage, pasture, or forage)
that--
[(A) best suits the livestock producer's
operation; and
[(B) is consistent with acceptable feed
practices.
[(5) The term ``area'' includes any Indian
reservation (as defined in section 335(e)(1)(D)(ii) of
the Consolidated Farm and Rural Development Act (7
U.S.C. 1985(e)(1)(D)(ii))).
[EMERGENCY LIVESTOCK ASSISTANCE
[Sec. 603. (a) The Secretary shall provide emergency feed
assistance under this title for the preservation and
maintenance of livestock in any State or area of a State where,
because of disease, insect infestation, flood, drought, fire,
hurricane, earthquake, storm, hot weather, or other natural
disaster, the Secretary determines that a livestock emergency
exists.
[(b)(1) The Secretary shall provide emergency feed assistance
under this title for the preservation and maintenance of
livestock, to livestock producers that--
[(A) conduct farming, ranching, or aquaculture
operations in any county contiguous to a county where
the Secretary has determined, under subsection (a),
that a livestock emergency exists, and
[(B) are otherwise eligible for assistance under this
title.
[(2) The Secretary shall accept applications for assistance
under this subsection from producers that are affected by the
livestock emergency at any time during the eight-month period
beginning on the date on which the Secretary determines that
such emergency exists in the other county.
[DETERMINATION OF NEED FOR ASSISTANCE
[Sec. 604. (a)(1) Whenever the Governor of a State determines
that a livestock emergency due to a natural disaster exists in
the State, or a county committee established under section 8(b)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C.
590(b)) determines that such an emergency exists in the county,
the Governor or county committee may submit a request for a
determination by the Secretary of a livestock emergency in such
State or county and for emergency livestock feed assistance
under this title.
[(2) The request of a Governor or county committee for a
livestock emergency determination and for emergency livestock
feed assistance shall include, to the extent feasible,
recommendations to the Secretary of those options that will
most fully use feed available through local sources.
[(b) The Secretary may consider a State, county, or area in a
State for a livestock emergency determination and emergency
livestock feed assistance under this title whether or not a
request for assistance is submitted, as described in subsection
(a).
[(c) The Secretary shall act on requests for determinations
under subsection (a) and make final determinations on whether a
livestock emergency exists in any State, county, or area, under
regulations that ensure thorough and prompt action (not later
than 30 days after receipt of any such request) and provide for
appropriate notification procedures.
[(d) Notwithstanding the preceding provisions of this
section, any State, county, or area determined eligible, due to
drought or related conditions in 1988, for the emergency feed
program or emergency feed assistance program conducted prior to
the effective date of this title shall continue to be eligible
for such programs and may be eligible for other programs under
this title for such drought or related condition. As soon as
practicable after the effective date of this title, the
Secretary shall determine whether any of the programs described
in section 606, other than the emergency feed program under
section 606(a)(4) and the emergency feed assistance program
under section 606(a)(2), or in section 607 should be made
available in such State, county, or area. If the Secretary
makes such determination, the Secretary shall make such
programs immediately available to livestock producers in the
State, county, or area.
[ELIGIBLE PRODUCERS
[Sec. 605. (a)(1) If the Secretary determines that a
livestock emergency exists in a State, county, or area,
qualifying livestock producers located in such State, county,
or area, or in a contiguous county as provided for in section
603(b), shall be eligible (under application procedures
established by the Secretary) for emergency feed assistance
under this title in accordance with this subsection.
[(2) For the purposes of this subsection, a ``qualifying
livestock producer'' is a livestock producer who has suffered a
substantial loss in feed normally produced on the farm for such
producer's livestock as a result of the livestock emergency
and, as a result, does not have sufficient feed that has
adequate nutritive value and is suitable for each of such
producer's particular types of livestock (as of the date of the
request, or initiation of consideration, for a determination of
a livestock emergency under section 604) for the estimated
duration of the emergency.
[(3) Each qualifying livestock producer shall be eligible for
emergency feed assistance under the programs specified in
section 606(a) that is made available where the producer is
located in quantities sufficient to meet such feed deficiency
with respect to the producer's livestock normally fed with feed
produced by the producer.
[(b) Each livestock producer in such State, county, or area,
or in a contiguous county as provided for in section 603(b),
regardless of whether the producer qualifies for assistance
under subsection (a), shall be eligible for emergency
assistance under the programs specified in section 607 that are
made available where the producer is located.
[(c) Any livestock producer, located in a county or area in
which benefits under the emergency feed program or the
emergency feed assistance program were made available due to
the drought or related condition in 1988 prior to the effective
date of this title, who qualifies for assistance under such
pre-existing programs shall be eligible for assistance for such
drought or related conditions as prescribed in subsection (a)
or, at the producer's option, for assistance under such pre-
existing programs.
[ASSISTANCE PROGRAMS
[Sec. 606. (a) In accordance with section 605(a), the
Secretary shall make one or more of the following assistance
programs available to qualifying livestock producers in a
State, county or area, if the Secretary determines that the
livestock emergency in such State, county or area requires the
implementation of such program:
[(1) The donation of feed grain owned by the
Commodity Credit Corporation to producers who are
financially unable to purchase feed under paragraph (2)
or to participate in any other program authorized under
this subsection.
[(2) The sale of feed grain owned by the Commodity
Credit Corporation to producers for livestock feed at a
price, established by the Secretary, that does not
exceed--
[(A) with respect to such assistance provided
for any livestock emergency determined to exist
prior to January 1, 1989, 75 percent of the
current basic county loan rate for such feed
grain in effect under this Act (or at a
comparable price if there is no such current
basic county loan rate), or
[(B) with respect to such assistance provided
for any other livestock emergency, 50 percent
of the average market price in the county or
area involved, as determined by the Secretary.
[(3) Reimbursement of any transportation and handling
expenses incurred, not to exceed 50 percent of such
expenses, by a producer in connection with feed grain
donations or sales under paragraphs (1) and (2).
[(4) Reimbursement of not to exceed 50 percent of the
cost of feed purchased by a producer for the producer's
livestock during the duration of the livestock
emergency.
[(5) Hay and forage transportation assistance to
producers of not to exceed 50 percent of the cost of
transporting hay or forage purchased from a point of
origin beyond a producer's normal trade area to the
livestock, subject to the following limitations:
[(A) The transportation assistance may not
exceed $50 per ton of eligible hay or forage
($12.50 for silage).
[(B) The quantity of eligible hay and forage
for each producer may not exceed the lesser
of--
[(i) 20 pounds per day per eligible
animal unit; or
[(ii) the quantity of additional feed
needed by the producer for the duration
of the livestock emergency.
[(6) Livestock transportation assistance to producers
of not to exceed 50 percent of the cost of transporting
livestock to and from available grazing locations,
except that such assistance may not exceed the lesser
of--
[(A) $24 per head of a producer's eligible
livestock; or
[(B) the local cost of the quantity of
additional feed needed by the producer for the
eligible livestock for duration of the
livestock emergency.
[(b) If assistance is made available through the furnishing
of feed grain under paragraph (1) or (2) of subsection (a), the
Secretary--
[(1) may provide for the furnishing of the feed grain
through a dealer or manufacturer and the replacing of
the feed grain so furnished from feed grain owned by
the Commodity Credit Corporation; or
[(2) at the option of the livestock producer, shall
provide for the furnishing of the feed grain through
the use of feed grain stored on the farm of the
producer that has been pledged as collateral for a
price support loan made under this Act.
[(c) In providing assistance under paragraph (2) or (4) of
subsection (a), the Secretary may make in-kind payments or
reimbursements through the issuance of negotiable certificates
that the Commodity Credit Corporation shall exchange for a
commodity in accordance with rules prescribed by the Secretary.
[(d) No payment or benefit provided under this section shall
be payable or due until such time as a completed application
therefor has been approved.
[(e) A person eligible to receive a payment or benefit under
this section with respect to a livestock emergency determined
to exist prior to January 1, 1989, shall make application for
such payment or benefit not later than March 31, 1989, or such
later date that the Secretary, by regulation, may prescribe.
[(f) The Secretary may make available at least $25,000,000 to
provide livestock transportation assistance under subsection
(a)(6) for livestock emergencies in 1989.
[ADDITIONAL ASSISTANCE
[Sec. 607. (a) In addition to the assistance provided under
section 606, if the Secretary determines that the livestock
emergency also requires the implementation of one or more of
the assistance programs described in subsection (b), the
Secretary shall implement such programs.
[(b) Special assistance under this section includes--
[(1) the donation of feed owned by the Commodity
Credit Corporation for use in feeding livestock
stranded and unidentified as to its owner, including
the cost of transporting feed to the affected area,
during such period as the Secretary, by regulation, may
prescribe;
[(2) reimbursement of not to exceed 50 percent of the
cost of--
[(A) installing pipelines (if that is the
least expensive method) or other facilities,
including tanks or troughs, for livestock
water;
[(B) construction or deepening of wells or
ponds for livestock water; or
[(C) developing springs or seeps for
livestock water,
as appropriate in drought areas to facilitate more
efficient and better-distributed grazing on land
normally used for grazing. Such cost-share assistance
may not be made available to provide water for wildlife
or recreational livestock, dry lot feeding, or barns or
corrals, or to acquire pumping equipment;
[(3) reimbursement of not to exceed 50 percent of the
cost of burning prickly pear cactus to make it suitable
for animal feed; and
[(4) making commodities owned by the Commodity Credit
Corporation available to livestock producers through
the use of a catalog that specifies lots of a size that
are economically feasible for a small producer to
obtain by means of certificate exchanges.
[(c) The Secretary may make available at least $25,000,000 to
provide special assistance under subsection (b)(2) for
livestock emergencies in 1988 and 1989.
[USE OF THE COMMODITY CREDIT CORPORATION
[Sec. 608. The Secretary shall carry out this title through
the use of the funds, facilities, and authorities of the
Commodity Credit Corporation.
[BENEFITS LIMITATION
[Sec. 609. (a) The total amount of benefits that a person
shall be entitled to receive annually under one or more of the
programs established under this title may not exceed $50,000.
[(b) The Secretary shall issue regulations--
[(1) defining the term ``person'', which shall
conform, to the extent practicable, to the regulations
defining the term ``person'' issued under section 1001
of the Food Security Act of 1985, or successor statute;
[(2) prescribing such rules as the Secretary
determines necessary to ensure a fair and reasonable
application of the limitation established under this
section; and
[(3) providing that the term ``person'' shall
include, in the case of any cooperative association of
producers, each member of the association with respect
to benefits due to such member of the association.
[(c) No person may receive benefits under this title
attributable to lost production of a feed commodity due to a
natural disaster in 1988 to the extent that such person
receives a disaster payment under the Disaster Assistance Act
of 1988 on such lost production.
[(d) Each person otherwise eligible for a livestock emergency
benefit under this title in 1988 shall be subject to the
combined payment and benefits limitation established under
section 211(c) of the Disaster Assistance Act of 1988.
[INELIGIBILITY
[Sec. 610. (a) Any person that has qualifying gross revenues
in excess of $2,500,000 annually, as determined by the
Secretary, shall not be eligible to receive any livestock
emergency benefits under this title.
[(b) For purposes of this section, the term ``qualifying
gross revenue'' means--
[(1) if a majority of the person's annual income is
received from farming and ranching operations, the
gross revenue from the person's farming and ranching
operations; and
[(2) if less than a majority of the person's annual
income is received from farming and ranching
operations, the person's gross revenue from all
sources.
[ADMINISTRATION
[Sec. 611. (a) The Commodity Credit Corporation shall issue
regulations to carry out this title.
[(b) Such regulations shall establish procedures to ensure
that the request for assistance by a Governor or county
committee under section 604, and individual applications of
livestock producers under section 605 for assistance, are
processed and decisions thereon are made as quickly as
practicable.
[(c) For purposes of this title, indigenous plants available
to a livestock producer but not normally consumed by livestock
as feed, such as cactus, may not be considered as feed on hand
for such producers.
[PENALTIES
[Sec. 612. A person that disposes of any feed made available
to a livestock producer under this title other than as
authorized by the Secretary shall be (1) subject to a civil
penalty equal to the market value of the feed involved, to be
recovered by the Secretary in a civil suit brought for that
purpose, and (2) guilty of a misdemeanor and, on conviction
thereof, subject to a fine of not more than $1,000, or
imprisonment for not more than one year, or both.]
----------
DAIRY PRODUCTION STABILIZATION ACT OF 1983
TITLE I--DAIRY
short title
Sec. 101. This title may be cited as the ``Dairy Production
Stabilization Act of 1983''.
* * * * * * *
Subtitle B--Dairy Promotion Program
findings and declaration of policy
Sec. 110. (a) * * *
(b) It, therefore, is declared to be the policy of Congress
that it is in the public interest to authorize the
establishment, through the exercise of the powers provided
herein, of an orderly procedure for financing (through
assessments on all milk produced in the United States for
commercial use and dairy products imported into the United
States) and carrying out a coordinated program of promotion
designed to strengthen the dairy industry's position in the
marketplace and to maintain and expand domestic and foreign
markets and uses for fluid milk and dairy products produced in
the United States. Nothing in this subtitle may be construed to
provide for the control of production or otherwise limit the
right of individual milk producers to produce milk.
definitions
Sec. 111. As used in this subtitle--
(a) * * *
* * * * * * *
(d) the term ``milk'' means any class of cow's milk
produced in the United States or cow's milk imported
into the United States in the form of dairy products
intended for consumption in the United States;
(e) the term ``dairy products'' means products
manufactured for human consumption which are derived
from the processing of milk, and includes fluid milk
products and casein (except casein imported under
sections 3501.90.20 (casein glue) and 3501.90.50
(other) of the Harmonized Tariff Schedule);
* * * * * * *
(j) the term ``research'' means studies testing the
effectiveness of market development and promotion
efforts, studies relating to the nutritional value of
milk and dairy products, and other related efforts to
expand demand for milk and dairy products or to reduce
the costs associated with processing or marketing those
products;
(k) the term ``nutrition education'' means those
activities intended to broaden the understanding of
sound nutritional principles including the role of milk
and dairy products in a balanced diet; [and]
[(l) the term ``United States'' as used in sections
110 through 117 means the forty-eight contiguous States
in the continental United States.]
(l) the term ``United States'' means the several
States and the District of Columbia;
(m) the term ``importer'' means the first person to
take title to dairy products imported into the United
States for domestic consumption; and
(n) the term ``exporter'' means any person who
exports dairy products from the United States.
* * * * * * *
required terms in orders
Sec. 113. Any order issued under this subtitle shall contain
terms and conditions as follows:
(a) * * *
(b) The order shall provide for the establishment and
appointment by the Secretary of a National Dairy Promotion and
Research Board that shall consist of not less than [thirty-six
members] 38 members, including one representative of importers
and one representative of exporters to be appointed by the
Secretary. [Members] The remaining members of the Board shall
be milk producers appointed by the Secretary from nominations
submitted by eligible organizations certified under section 114
of this subtitle, or, if the Secretary determines that a
substantial number of milk producers are not members of, or
their interests are not represented by, any such eligible
organization, then from nominations made by such milk producers
in the manner authorized by the Secretary. In making such
appointments, the Secretary shall take into account, to the
extent practicable, the geographical distribution of milk
production volume throughout the [United States] United States,
including Alaska and Hawaii. In determining geographic
representation, whole States shall be considered as a unit. A
region may be represented by more than one director and a
region may be made up of more than one State. The term of
appointment to the Board shall be for three years with no
member serving more than two consecutive terms, except that
initial appointments shall be proportionately for one-year,
two-year, and three-year terms. The Board shall appoint from
its members an executive committee whose membership shall
equally reflect each of the different regions in the United
States in which milk is produced. The executive committee shall
have such duties and powers as are conferred upon it by the
Board. Board members shall serve without compensation, but
shall be reimbursed for their reasonable expenses incurred in
performing their duties as members of the Board including a per
diem allowance as recommended by the Board and approved by the
Secretary.
* * * * * * *
(e) The order shall require the Board to submit to the
Secretary for approval budgets on a fiscal period basis of its
anticipated expenses and disbursements in the administration of
the order, including projected costs of dairy products
promotion and research projects. For each of the fiscal years
1996 through 2000, the Board's budget shall provide for the
expenditure of not less than 10 percent of the anticipated
revenues available to the Board to develop international
markets for, and to promote within such markets, the
consumption of dairy products produced in the United States
from milk produced in the United States.
* * * * * * *
(g)(1) The order shall provide that each person making
payment to a producer for milk produced in the United States
and purchased from the producer shall, in the manner as
prescribed by the order, collect an assessment based upon the
number of hundredweights of milk for commercial use handled for
the account of the producer and remit the assessment to the
Board. The assessment shall be used for payment of the expenses
in administering the order, with provision for a reasonable
reserve, and shall include those administrative costs incurred
by the Department after an order has been promulgated under
this subtitle. The rate of assessment prescribed by the order
shall be 15 cents per hundredweight of milk for commercial use
or the equivalent thereof. A milk producer or the producer's
cooperative who can establish that the producer is
participating in active, ongoing qualified State or regional
dairy product promotion or nutrition education programs
intended to increase consumption of milk and dairy products
generally shall receive credit in determining the assessment
due from such producer for contributions to such programs of up
to 10 cents per hundredweight of milk marketed or, for the
period ending six months after the date of enactment of this
Act, up to the aggregate rate in effect on the date of
enactment of this Act of such contributions to such programs
(but not to exceed 15 cents per hundredweight of milk marketed)
if such aggregate rate exceeds 10 cents per hundredweight of
milk marketed. Any person marketing milk of that person's own
production directly to consumers shall remit the assessment
directly to the Board in the manner prescribed by the order.
(2) The order shall provide that each importer of dairy
products intended for consumption in the United States shall
remit to the Board, in the manner prescribed by the order, an
assessment equal to 1.2 cents per pound of total milk solids
contained in the imported dairy products, or 15 cents per
hundredweight of milk contained in the imported dairy products,
whichever is less. If an importer can establish that it is
participating in active, ongoing qualified State or regional
dairy product promotion or nutrition programs intended to
increase the consumption of milk and dairy products, the
importer shall receive credit in determining the assessment due
from that importer for contributions to such programs of up to
.8 cents per pound of total milk solids contained in the
imported dairy products, or 10 cents per hundredweight of milk
contained in the imported dairy products, whichever is less.
The assessment collected under this paragraph shall be used for
the purpose specified in paragraph (1).
* * * * * * *
(k) The order shall require that each person receiving milk
from farmers for commercial use, each importer of dairy
products, and any person marketing milk of that person's own
production directly to consumers, maintain and make available
for inspection such books and records as may be required by the
order and file reports at the time, in the manner, and having
the content prescribed by the order. Such information shall be
made available to the Secretary as is appropriate to the
administration or enforcement of this subtitle, or any order or
regulation issued under this subtitle. All information so
obtained shall be kept confidential by all officers and
employees of the Department, and only such information so
obtained as the Secretary deems relevant may be disclosed by
them and then only in a suit or administrative hearing brought
at the request of the Secretary, or to which the Secretary or
any officer of the United States is a party, and involving the
order with reference to which the information to be disclosed
was obtained. Nothing in this subsection may be deemed to
prohibit (1) the issuance of general statements, based upon the
reports, of the number of persons subject to an order or
statistical data collected therefrom, which statements do not
identify the information furnished by any person, or (2) the
publication, by direction of the Secretary, of the name of any
person violating any order, together with a statement of the
particular provisions of the order violated by such person. No
information obtained under the authority of this subtitle may
be made available to any agency or officer of the Federal
Government for any purpose other than the implementation of
this subtitle and any investigatory or enforcement action
necessary for the implementation of this subtitle. Any person
violating the provisions of this subsection shall, upon
conviction, be subject to a fine of not more than $1,000, or to
imprisonment for not more than one year, or both, and, if an
officer or employee of the Board or the Department, shall be
removed from office.
* * * * * * *
suspension and termination of orders
Sec. 116. (a) * * *
(b) After September 30, 1985, the Secretary may conduct a
referendum at any time, and shall hold a referendum on request
of a representative group comprising 10 per centum or more of
the number of producers and importers subject to the order, to
determine whether the producers and importers favor the
termination or suspension of the order. The Secretary shall
suspend or terminate collection of assessments under the order
within six months after the Secretary determines that
suspension or termination of the order is favored by a majority
of the producers and importers voting in the referendum [who,
during a representative period (as determined by the
Secretary), have been engaged in the production of milk for
commercial use] and shall terminate the order in an orderly
manner as soon as practicable after such determination. A
producer shall be eligible to vote in the referendum if the
producer, during a representative period (as determined by the
Secretary), has been engaged in the production of milk for
commercial use. An importer shall be eligible to vote in the
referendum if the importer, during a representative period (as
determined by the Secretary), has been engaged in the
importation of dairy products into the United States intended
for consumption in the United States.
* * * * * * *
----------
FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990
* * * * * * *
TITLE I--DAIRY
* * * * * * *
[SEC. 102. MILK MANUFACTURING MARKETING ADJUSTMENT.
[(a) In General.--Effective beginning on the date that is 12
months after the date of enactment of this Act, no State shall
provide for (and no person shall collect, directly or
indirectly) a greater allowance for the processing of milk
(hereafter referred to as a ``make allowance'') than is
permitted under a Federal program to establish a Grade A price
for manufacturing butter, nonfat dry milk, or cheese.
[(b) Liability for Penalties.--
[(1) In general.--If the Secretary of Agriculture
determines that--
[(A) based on a request by a producer
supported by evidence, the make allowance
collected by a person is in excess of the
amount that is permitted under subsection (a);
or
[(B) a person has failed to comply with any
requirement of this section or a regulation
issued under this section,
[the person shall be liable for penalties as determined
by the Secretary in accordance with this subsection.
[(2) Amount of penalties.--Such penalties shall be
equal to the product obtained by multiplying--
[(A) twice the permitted make allowance that
could be charged as provided under subsection
(a); by
[(B) the quantity of milk with respect to
which the person was determined by the
Secretary to have collected a make allowance in
excess of the permitted make allowance.
[(c) Regulations.--The Secretary may issue such regulations
as are necessary to carry out this section.
[(d) Investigations.--
[(1) In general.--The Secretary may make such
investigations as the Secretary considers necessary for
the effective administration of this section or to
determine whether any person subject to this section
has violated this section.
[(2) Administration.--For the purpose of the
investigation, the Secretary may administer oaths and
affirmations, subpoena witnesses, compel their
attendance, take evidence, and require the production
of any records that are relevant to the inquiry.
[(3) Subpoena.--The attendance of witnesses and the
production of any such records may be required from any
place in the United States. In case of contumacy by, or
refusal to obey a subpoena to, any person, the
Secretary may invoke the aid of any court of the United
States within the jurisdiction of which the
investigation or proceeding is carried on, or where the
person resides or carries on business, in requiring the
attendance and testimony of witnesses and the
production of records. The court may issue an order
requiring the attendance and testimony of witnesses and
the production of records, or requiring the person to
appear before the Secretary to produce records or to
give testimony on the matter under investigation.
[(4) Contempt.--Any failure to obey the order of the
court may be punished by the court as a contempt
thereof.
[(5) Process.--All process in any such case may be
served in the judicial district of which the person is
an inhabitant or wherever the person may be found.
[(e) Enforcement.--The district courts of the United States
are vested with jurisdiction specifically to enforce, and to
prevent and restrain any person from violating, any provision
of this section or any regulation issued under this section.]
* * * * * * *
TITLE XXV--OTHER RELATED PROVISIONS
* * * * * * *
SEC. 2509. COLLECTION OF FEES FOR INSPECTION SERVICES.
[(a) Quarantine, Inspection and Transportation Fees.--
[(1) Quarantine and inspection.--
[(A) In general.--The Secretary of
Agriculture (hereafter referred to in this
section as the ``Secretary'') may prescribe and
collect fees to cover the cost of providing
agricultural quarantine and inspection services
in connection with the arrival at a port in the
customs territory of the United States, or the
preclearance or preinspection at a site outside
the customs territory of the United States, of
an international passenger, commercial vessel,
commercial aircraft, commercial truck, or
railroad car.
[(B) Airport inspection services.--For
airport inspection services, the Secretary
shall collect no more than $69,000,000 in
fiscal year 1992 and $75,000,000 in fiscal year
1993 from international airline passengers and
commercial aircraft operators.
[(C) Commercial truck and railroad car
inspection services.--For commercial truck and
railroad car inspection services, the Secretary
shall collect no more than $3,667,000 in fiscal
year 1992 and $3,890,000 in fiscal year 1993
from commercial truck and railroad car
operators.
[(D) Costs.--Fees, including fees from
international airline passengers and commercial
aircraft operators, may only be collected to
the extent that the Secretary reasonably
estimates that the amount of the fees are
commensurate with the costs of agricultural
quarantine and inspection services with respect
to the class of persons or entities paying the
fees. The costs of such services with respect
to passengers as a class includes the costs of
related inspections of the aircraft.
[(2) Treasury.--Any person who collects a fee under
this subsection shall remit such fee to the Treasury of
the United States prior to the date that is 31 days
after the close of the calendar quarter in which such
fee is collected.
[(3) Agricultural quarantine inspection user fee
account.--
[(A) Establishment.--There is established in
the Treasury of the United States a no-year
fund, to be known as the ``Agricultural
Quarantine Inspection User Fee Account''
(hereafter referred to in this section as the
``Account''), for the use of the Secretary for
quarantine or inspection services under this
section.
[(B) Amounts in account.--
[(i) Deposits.--All of the fees
collected under this subsection shall
be deposited in the Account.
[(ii) Reimbursement.--The Secretary
of the Treasury shall use the Account
to provide reimbursements to any
appropriation accounts that incur the
costs associated with the
administration of this subsection and
all other activities carried out by the
Secretary at ports in the customs
territory of the United States and at
preclearance or preinspection sites
outside the customs territory of the
United States in connection with the
enforcement of the animal quarantine
laws. Any such reimbursement shall be
subject to appropriations under clause
(v).
[(iii) Procedure.--The Secretary of
the Treasury shall make reimbursement
under clause (ii) on a quarterly basis.
Amounts required to be reimbursed under
clause (ii), shall be made on the basis
of estimates made by the Secretary of
the expenses described in clause (ii)
that are incurred by the Secretary in
the 3-month period immediately
preceding such reimbursement.
[(iv) Adjustments.--Adjustments of
reimbursements made under clause (ii)
shall be made to the extent necessary
to correct prior estimates that were in
excess of, or less than, the amount
required to be reimbursed under clause
(iii).
[(v) Authorization of
appropriations.--There are authorized
to be appropriated each fiscal year
amounts in the Fund for use for
quarantine or inspection services.
[(4) Adjustment in fee amounts.--Subject to the
limits set forth in paragraph (1), the Secretary shall
adjust the amount of the fees to be assessed under this
subsection to reflect the cost to the Secretary in
administering such subsection, in carrying out the
activities at ports in customs territory of the United
States and preclearance and preinspection sites outside
the customs territory of the United States in
connection with the provision of agricultural
quarantine inspection services, and in maintaining a
reasonable balance in the Account.]
(a) Quarantine and Inspection Fees.--
(1) Fees authorized.--The Secretary of Agriculture
may prescribe and collect fees sufficient--
(A) to cover the cost of providing
agricultural quarantine and inspection services
in connection with the arrival at a port in the
customs territory of the United States, or the
preclearance or preinspection at a site outside
the customs territory of the United States, of
an international passenger, commercial vessel,
commercial aircraft, commercial truck, or
railroad car;
(B) to cover the cost of administering this
subsection; and
(C) through fiscal year 2002, to maintain a
reasonable balance in the Agricultural
Quarantine Inspection User Fee Account
established under paragraph (5).
(2) Limitation.--In setting the fees under paragraph
(1), the Secretary shall ensure that the amount of the
fees are commensurate with the costs of agricultural
quarantine and inspection services with respect to the
class of persons or entities paying the fees. The costs
of the services with respect to passengers as a class
includes the costs of related inspections of the
aircraft or other vehicle.
(3) Status of fees.--Fees collected under this
subsection by any person on behalf of the Secretary are
held in trust for the United States and shall be
remitted to the Secretary in such manner and at such
times as the Secretary may prescribe.
(4) Late payment penalties.--If a person subject to a
fee under this subsection fails to pay the fee when
due, the Secretary shall assess a late payment penalty,
and the overdue fees shall accrue interest, as required
by section 3717 of title 31, United States Code.
(5) Agricultural quarantine inspection user fee
account.--
(A) Establishment.--There is established in
the Treasury of the United States a no-year
fund, to be known as the ``Agricultural
Quarantine Inspection User Fee Account'', which
shall contain all of the fees collected under
this subsection and late payment penalties and
interest charges collected under paragraph (4)
through fiscal year 2002.
(B) Use of account.--For each of the fiscal
years 1996 through 2002, funds in the
Agricultural Quarantine Inspection User Fee
Account shall be available, in such amounts as
are provided in advance in appropriations Acts,
to cover the costs associated with the
provision of agricultural quarantine and
inspection services and the administration of
this subsection. Amounts made available under
this subparagraph shall be available until
expended.
(C) Excess fees.--Fees and other amounts
collected under this subsection in any of the
fiscal years 1996 through 2002 in excess of
$100,000,000 shall be available for the
purposes specified in subparagraph (B) until
expended, without further appropriation.
(6) Use of amounts collected after fiscal year
2002.--After September 30, 2002, the unobligated
balance in the Agricultural Quarantine Inspection User
Fee Account and fees and other amounts collected under
this subsection shall be credited to the Department of
Agriculture accounts that incur the costs associated
with the provision of agricultural quarantine and
inspection services and the administration of this
subsection. The fees and other amounts shall remain
available to the Secretary until expended without
fiscal year limitation.
(7) Staff years.--The number of full-time equivalent
positions in the Department of Agriculture attributable
to the provision of agricultural quarantine and
inspection services and the administration of this
subsection shall not be counted toward the limitation
on the total number of full-time equivalent positions
in all agencies specified in section 5(b) of the
Federal Workforce Restructuring Act of 1994 (Public Law
103-226; 5 U.S.C. 3101 note) or other limitation on the
total number of full-time equivalent positions.
* * * * * * *
----------
SECTION 8C OF THE AGRICULTURAL ADJUSTMENT ACT
ORDERS
Sec. 8c. (1) * * *
* * * * * * *
terms--milk and its products
(5) In the case of milk and its products, orders issued
pursuant to this section shall contain one or more of the
following terms and conditions, and (except as provided in
subsection (7) of this section no others:
(A) Classifying milk in accordance with the form in which or
the purpose for which it is used, and fixing, or providing a
method for fixing, minimum prices for each such use
classification which all handlers shall pay, and the time when
payments shall be made, for milk purchased from producers or
associations of producers. Such prices shall be uniform as to
all handlers, subject only to adjustments for (1) volume,
market, and production differentials customarily applied by the
handlers subject to such order, (2) the grade or quality of the
milk purchased, and (3) the locations at which delivery of such
milk, or any use classification thereof, is made to such
handlers. [Throughout the 2-year period beginning on the
effective date of this sentence (and subsequent to such 2-year
period unless modified by amendment to the order involved), the
minimum aggregate amount of the adjustments, under clauses (1)
and (2) of the preceding sentence, to prices for milk of the
highest use classification under orders that are in effect
under this section on the date of the enactment of the Food
Security Act of 1985 shall be as follows:
Minimum Aggregate Dollar
Amount of Such Adjustments
Per Hundredweight of Milk
[Marketing Area Subject to Order Having 3.5 Percent Milkfat
New England................................................... $3.24
New York-New Jersey........................................... 3.14
Middle Atlantic............................................... 3.03
Georgia....................................................... 3.08
Alabama-West Florida.......................................... 3.08
Upper Florida................................................. 3.58
Tampa Bay..................................................... 3.88
Southeastern Florida.......................................... 4.18
Michigan Upper Peninsula...................................... 1.35
South Michigan................................................ 1.75
Eastern Ohio-Western Pennsylvania............................. 1.95
Ohio Valley................................................... 2.04
Indiana....................................................... 2.00
Chicago Regional.............................................. 1.40
Central Illinois.............................................. 1.61
Southern Illinois............................................. 1.92
Louisville-Lexington-Evansville............................... 2.11
Upper Midwest................................................. 1.20
Eastern South Dakota.......................................... 1.50
Black Hills, South Dakota..................................... 2.05
Iowa.......................................................... 1.55
Nebraska-Western Iowa......................................... 1.75
Greater Kansas City........................................... 1.92
Tennessee Valley.............................................. 2.77
Nashville, Tennessee.......................................... 2.52
Paducah, Kentucky............................................. 2.39
Memphis, Tennessee............................................ 2.77
Central Arkansas.............................................. 2.77
Fort Smith, Arkansas.......................................... 2.77
Southwest Plains.............................................. 2.77
Texas Panhandle............................................... 2.49
Lubbock-Plainview, Texas...................................... 2.49
Texas......................................................... 3.28
Greater Louisiana............................................. 3.28
New Orleans-Mississippi....................................... 3.85
Eastern Colorado.............................................. 2.73
Western Colorado.............................................. 2.00
Southwestern Idaho-Eastern Oregon............................. 1.50
Great Basin................................................... 1.90
Lake Mead..................................................... 1.60
Central Arizona............................................... 2.52
Rio Grande Valley............................................. 2.35
Puget Sound-Inland............................................ 1.85
Oregon-Washington............................................. 1.95
Effective at the beginning of such two-year period, the minimum
prices for milk of the highest use classification shall be
adjusted for the locations at which delivery of such milk is
made to such handlers.]
* * * * * * *
----------
SECTION 725 OF THE AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 1996
Sec. 725. None of the funds appropriated or otherwise made
available by this Act shall be used to enroll additional acres
in the Conservation Reserve Program authorized by 16 U.S.C.
3831-3845[: Provided, That 1,579,000 new acres shall be
enrolled in the program in the year beginning January 1, 1997].
----------
AGRICULTURAL TRADE ACT OF 1978
* * * * * * *
TITLE II--AGRICULTURAL EXPORT PROGRAMS
* * * * * * *
Subtitle B--Implementation
SEC. 211. FUNDING LEVELS.
(a) * * *
* * * * * * *
(c) Marketing Promotion Programs.--The Commodity Credit
Corporation or the Secretary shall make available for market
promotion activities authorized to be carried out by the
Commodity Credit Corporation under section 203--
(1) in addition to any funds that may be specifically
appropriated to implement a market development program,
not less than $200,000,000 for each of the fiscal years
1991 through 1993, [and] not less than $110,000,000 for
each of the fiscal years 1994 [through 1997,] through
1995, and not more than $100,000,000 for each of fiscal
years 1996 through 2002, of the funds of, or an equal
value of commodities owned by, the Commodity Credit
Corporation; and
* * * * * * *
TITLE III--EXPORT ENHANCEMENT PROGRAM
SEC. 301. EXPORT ENHANCEMENT PROGRAM.
(a) * * *
* * * * * * *
(e) Funding Levels.--
[(1) In general.--The Commodity Credit Corporation
shall make available for each of the fiscal years 1991
through 2001 not less than $500,000,000 of the funds or
commodities of the Commodity Credit Corporation to
carry out the program established under this section.]
(1) In general.--The Commodity Credit Corporation
shall make available to carry out the program
established under this section not more than--
(A) $350,000,000 for fiscal year 1996;
(B) $350,000,000 for fiscal year 1997;
(C) $500,000,000 for fiscal year 1998;
(D) $550,000,000 for fiscal year 1999;
(E) $579,000,000 for fiscal year 2000;
(F) $478,000,000 for fiscal year 2001; and
(G) $478,000,000 for fiscal year 2002.
* * * * * * *
----------
FEDERAL CROP INSURANCE ACT
* * * * * * *
SEC. 508. CROP INSURANCE.
(a) * * *
(b) Catastrophic Risk Protection.--
(1) * * *
* * * * * * *
(4) Sale of catastrophic risk coverage.--
(A) * * *
* * * * * * *
(C) Delivery of coverage.--
(i) In general.--In full consultation
with approved insurance providers, the
Secretary may continue to offer
catastrophic risk protection in a State
(or a portion of a State) through local
offices of the Department if the
Secretary determines that there is an
insufficient number of approved
insurance providers operating in the
State or portion to adequately provide
catastrophic risk protection coverage
to producers.
(ii) Coverage by approved insurance
providers.--To the extent that
catastrophic risk protection coverage
by approved insurance providers is
sufficiently available in a State as
determined by the Secretary, only
approved insurance providers may
provide the coverage in the State.
(iii) Current policies.--Subject to
clause (ii), all catastrophic risk
protection policies written by local
offices of the Department shall be
transferred (including all fees
collected for the crop year in which
the approved insurance provider will
assume the policies) to the approved
insurance provider for performance of
all sales, service, and loss adjustment
functions.
* * * * * * *
(7) Eligibility for department programs.--
[(A) In general.--To be eligible for any
price support or production adjustment program,
the conservation reserve program, or any
benefit described in section 371 of the
Consolidated Farm and Rural Development Act,
the producer must obtain at least the
catastrophic level of insurance for each crop
of economic significance grown on each farm in
the county in which the producer has an
interest, if insurance is available in the
county for the crop.]
(A) In general.--Effective for the spring-
planted 1996 and subsequent crops, to be
eligible for any payment or loan under title I
of the Agricultural Market Transition Act or
the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.), for the conservation
reserve program, or for any benefit described
in section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f), a
person shall--
(i) obtain at least the catastrophic
level of insurance for each crop of
economic significance in which the
person has an interest; or
(ii) provide a written waiver to the
Secretary that waives any eligibility
for emergency crop loss assistance in
connection with the crop.
* * * * * * *
SEC. 519. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
(a) Establishment of Program.--
(1) * * *
(2) Eligible crops.--
(A) * * *
(B) Crops specifically included.--The term
``eligible crop'' shall include floricultural,
ornamental nursery, and Christmas tree crops,
turfgrass sod, seed crops, and industrial
crops.
* * * * * * *
----------
DEPARTMENT OF AGRICULTURE REORGANIZATION ACT OF 1994
* * * * * * *
SEC. 226. CONSOLIDATED FARM SERVICE AGENCY.
(a) Establishment.--The Secretary is authorized to establish
and maintain in the Department a Consolidated Farm Service
Agency.
(b) Functions of Consolidated Farm Service Agency.--If the
Secretary establishes the Consolidated Farm Service Agency
under subsection (a), the Secretary is authorized to assign to
the Agency jurisdiction over the following functions:
(1) Agricultural price and income support programs,
production adjustment programs, and related programs.
[(2) General supervision of the Federal Crop
Insurance Corporation.]
* * * * * * *
SEC. 226A. OFFICE OF RISK MANAGEMENT.
(a) Establishment.--Subject to subsection (e), the Secretary
shall establish and maintain in the Department an independent
Office of Risk Management.
(b) Functions of the Office of Risk Management.--The Office
of Risk Management shall have jurisdiction over the following
functions:
(1) Supervision of the Federal Crop Insurance
Corporation.
(2) Administration and oversight of all aspects,
including delivery through local offices of the
Department, of all programs authorized under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
(3) Any pilot or other programs involving revenue
insurance, risk management savings accounts, or the use
of the futures market to manage risk and support farm
income that may be established under the Federal Crop
Insurance Act or other law.
(4) Such other functions as the Secretary considers
appropriate.
(c) Administrator.--
(1) The Office of Risk Management shall be headed by
an Administrator who shall be appointed by the
Secretary.
(2) The Administrator of the Office of Risk
Management shall also serve as Manager of the Federal
Crop Insurance Corporation.
(d) Resources.--
(1) Functional coordination.--Certain functions of
the Office of Risk Management, such as human resources,
public affairs, and legislative affairs, may be
provided by a consolidation of such functions under the
Under Secretary of Agriculture for Farm and Foreign
Agricultural Services.
(2) Minimum provisions.--Notwithstanding paragraph
(1) or any other provision of law or order of the
Secretary, the Secretary shall provide the Office of
Risk Management with human and capital resources
sufficient for the Office to carry out its functions in
a timely and efficient manner.
* * * * * * *
----------
SECTION 408 OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF
1954
SEC. 408. EXPIRATION DATE.
No agreements to finance sales or to provide other assistance
under this Act shall be entered into after December 31, [1995]
1996.
MINORITY VIEWS
We strongly oppose H.R. 2854. We are greatly alarmed by its
provisions and what their impact will be. On behalf of the
American people we protest the closed, anti-democratic process
that has been employed by this Republican-controlled Congress
and the disregard it has demonstrated towards the principles
all Americans hold dear--rural and urban alike.
The American farm is the very foundation of the progress
that has marked our nation's history. American farmers and
ranchers ensure that ours are the best fed people in the world.
Because of our farmers' productivity, Americans pay a lower
share of their disposable income for their diet than do the
citizens of any other industrialized nation. It was Thomas
Jefferson who wrote that ``cultivators of the earth are the
most valuable citizens.'' No interest of this nation can be
placed ahead of its agricultural sector.
Yet this Republican-led Congress has shown complete disdain
for our nation's primary industry.
At this moment, economic chaos grips the nation's
heartland. Farmers who should have already made crucial
planting, cultivation, and marketing decisions are frozen in
place by the fact that Congress has made no farm policy.
Lenders who would otherwise provide the capital needed to
finance this fall's crop are unable to make sufficient loans
available.
While the Congress and our Committee should have been
devoting their time and resources to preparing for the
expiration of the 1990 farm bill, virtually nothing has been
done. In 1995, no bill to provide for agricultural policy in
the years ahead was introduced until August. In a blatant and
historic rejection of our sacred principles of open government,
our Committee did not hold one single hearing on this
proposal--and still has not to this day.
Our Committee did vote on the August proposal. It was
rejected by a bipartisan majority. In spite of its defeat by
the Agriculture Committee, the bill--written to cut $13.4
billion out of farm programs--was packaged with proposals to
cut Medicare, Medicaid and education and to provide a tax cut.
Inevitably and quite predictably, that bill--the one
vehicle offered by the Republican Congress to establish a farm
policy--was vetoed, not only because of its ill-advised cuts in
farm programs but also because of the many other radical
proposals which it contained.
In a further act of disregard towards rural America, the
Committee waited until the end of January to take further
action. As the farmer's precious time dwindled away, our
Committee did not meet. Again, no hearings were held, and even
as the Republican leadership prepared to adjourn for a three-
week vacation, the Committee waited until the very last hour to
act.
We are members of the Agriculture Committee. We regard
ourselves as having the solemn responsibility to weigh and
consider the problems and concerns relating to agricultural
policy. Yet in setting its agenda, the Republican leadership
has completely and utterly frustrated our ability to carry out
that responsibility. Having had little opportunity to debate
matters with our Committee colleagues, we have nonetheless
identified substantial public concern over the approach taken
in this bill.
H.R. 2854 cuts agriculture too deeply. Agriculture is the
very foundation of our nation's economy. Our basic farm
programs have played a significant role in the farmer/
government partnership that has been so successful in assuring
that our nation has a safe, reliable, and affordable food
supply. Reducing Federal spending on farm programs by $13
billion will threaten the economic viability of American
agriculture and thereby endanger our nation's food security.
We know that these cuts were not conceived in the context
of any consideration to good farm policy. Rather, the decision
to cut the very heart out of farm programs was integral to the
radical Republican policy of cutting $270 billion out of
Medicare and providing for a $245 billion tax cut.
All parties have rejected the unreasonableness of those
earlier attacks on health care and responsible fiscal policy,
and those proposals are no longer viable. Yet, the Republican-
led House of Representatives continues to insist on a dramatic
$13 billion reduction in farm programs. This in spite of the
fact that the tax cut which those reductions were to pay for
has been entirely abandoned.
As bad as this bill is for the programs that support
farming, it is even worse in its failure to address the need
for investments in rural development, research, and
conservation. Agriculture programs have been singled out for
devastating reductions more than any other sector of the
Federal budget. While the Republican leadership is demanding
this pound of flesh, they are unwilling to devote the resources
needed to allow rural America to adjust.
As opponents of this legislation, we are not saying that
agriculture should not contribute to deficit reduction (even
though agriculture has provided a dramatically disproportionate
share in past deficit reduction efforts). We are opposing this
legislation because you cannot protect the interests of one
segment of rural America at the expense of all others. Many
needs exist in rural America today.
Where We Stand
We are committed to developing policy that meets the basic
needs of farmers and other rural Americans: (1) preservation of
a responsible safety net for farmers, (2) promotion of exports
and maintenance of a vibrant rural economy, and (3) protection
and enhancement of the rural environment.
The Farm Safety Net
The fixed contract payments of H.R. 2854 will help those
farmers who lost a crop last year and cannot benefit from
current high prices. However, H.R. 2854 will also provide
income transfers to farmers with bountiful harvests even though
current prices are high and deny them additional assistance
should market prices fall to below normal levels.
The farm safety net is destroyed by this legislation for
three reasons: (1) it ends income protection, (2) it ends price
protection, and (3) it ends all farm programs after seven
years. Advocates of this policy declare that farmers will now
respond to market signals, not government inducements. Indeed
they will. However, farmers will also have to respond to
macroeconomic forces beyond agricultural markets.
In the mid-1980's, a strong U.S. dollar weakened the
competitive position of U.S. agricultural exports, and
declining world economic growth dampened demand for all
agricultural imports. Sharply lower market commodity prices
resulted. Real interest rates rose, increasing farm borrowing
costs and driving down farmland values that provided the
security for farm lenders. Many farmers were unable to obtain
operating credit, or produce crops to meet existing loan
requirements, for reasons that had nothing to do with farm
policy. The Agricultural Market Transition Act will be wholly
inadequate to address such a situation. Farmers will have no
income safety net.
H.R. 2854 also caps commodity loan rates. Under current
law, rising market prices would cause loan rates to increase,
with certain provisions to protect against burdensome stocks
and preserve competitive export pricing. Higher loan rates,
resulting from rising prices, would afford farmers more price
stability. The capped loan rates in this bill will destroy that
price stability and, as a result, farmers will have no price
safety net.
In addition, with the repeal of permanent law, H.R. 2854
makes no provision for agricultural policy after 2002. The
Commission on 21st Century Production Agriculture may provide
useful information and guidance to Congress, but it provides no
guarantee that there will be any continuation of agricultural
policy whatsoever; only permanent law can do that. This repeal
is an unambiguous statement to farmers that assurance of public
assistance to agriculture will end after 2002. Farmers will
have no safety net at all.
H.R. 2854 and the Peanut Program
H.R. 2854 embodies a schizophrenic policy. Under the guise
of deregulation, the bill places more onerous work requirements
on U.S. peanut growers that are coupled with huge losses in
farm income. In fact, the Department of Agriculture estimates
that H.R. 2854 will immediately result in a 30% to 40%
reduction in American peanut producers' income. The immediate
shock of these provisions will be devastating to many peanut-
producing communities in the rural South.
While we applaud many industry-supported provisions of the
bill's peanut section which achieve a no-cost peanut program--
e.g., eliminating the 1.35 million ton quota floor, eliminating
under- marketings and reducing support levels for disaster
transfers--other provisions of that section go beyond
reasonable reform and, in fact, are ridiculously punitive to
the American peanut grower. The purposefully punishing nature
of the bill towards U.S. peanut growers is clearly highlighted
by the fact that two Democratic alternatives also achieve a
market-oriented and no-cost peanut program with less harmful
and more reasonable contributions by peanut producers and
resulted in even greater savings than in H.R. 2854.
Beyond the core reforms in the bill that are necessary to
achieve a no-cost peanut program, H.R. 2854 contains several
serious flaws and, in particular, five provisions that are
egregiously damaging to peanut farmers and the rural South:
(1) Price Support. Under current law, U.S. peanut producers
are allowed to place quota peanuts under loan at marketing
associations for $678/ton or 34 cents per pound. On top of the
20% cut in farmer income related to the elimination of the
quota floor required by H.R. 2854, U.S. peanut producers also
suffer an additional and immediate 10% cut in income because
the Republican-backed reforms slash peanut loan rates to $610/
ton.
In testimony before the House Subcommittee on Risk
Management and Specialty Crops, USDA testified that, on
average, the nationwide cost of production for domestically
produced peanuts is approximately $640/ton and that many farms,
particularly small, family farms, face severe challenges even
under the current $678/ton price support, primarily because
profits from a farm's quota peanut ``base'' are often mixed
with losses from the sale of additional peanuts that do not
receive government support to create a small overall profit
margin. A regional study by Auburn University indicates that
the bill's provisions will result in more than 3,000 lost jobs
in a contiguous, limited area of rural Georgia, Alabama and
Florida; certainly additional job losses can be expected in
other U.S. peanut production areas.
(2) Offers From Handlers. While the majority insists on
deregulation of agriculture--open to an unfettered market, H.R.
2854 treats U.S. peanut producers differently by actually
placing legislative limits on the price a U.S. peanut farmer
receives for his or her peanuts. Not only does the bill slash
the peanut loan rate, but it requires the U.S. peanut farmer to
sell his or her crop if he or she is offered $610/ton or suffer
a 5% penalty. There is no similar penalty for any other
commodity in H.R. 2854. This peanut-specific provision is
entirely contrary to the marketing loan concept.
Even today, with peanuts loan rates set at $678/ton, market
conditions often allow peanut farmers to sell peanuts above the
USDA-supported loan rate. Setting the loan rate below the cost
or production for many peanut farmers and then statutorily
forcing peanut farmers to sell their labors at a loss is a
recipe for disaster. This provision in no way makes the peanut
program more market-oriented and, as with the issue of price
support, this provision does not achieve any savings for the
U.S. taxpayer. The provision is bizarre and hostile to U.S.
peanut growers. It should be eliminated.
(3) Losses. While we generally approve of the provisions in
H.R. 2854 to ensure that any losses are fully covered by peanut
program participants, we believe the process through which
program losses are covered should be refined so that
responsibility starts with the individual producer before
affecting area and national pools. Also, we are gravely
concerned that H.R. 2854 exempts certain parties from liability
even though they use the marketing association pools to improve
profits, often displacing quota peanuts in the process.
Additional growers who use the redemption process should meet
their responsibility. Similarly, peanut policy should recognize
that shellers also benefit from the peanut program and should
allow the entire peanut marketing assessment to be used, when
necessary, to cover program losses. H.R. 2854, as currently
drafted, invites abuse and could unfairly impact some program
participants.
(4) Certain Farms Ineligible. We question the wisdom of the
policy that will strip certain individuals of peanut quota
almost solely on the basis of where they live. This provision
raises concerns about ``unequal treatment under law'' and may
very well be unconstitutional. The implementation of this
provision, as reported out of the Committee, will have a severe
impact in rural communities. Many retired farmers or their
widowed spouses rely on quota rent for economic subsistence.
When one considers the severe cuts in Medicaid, Medicare and
rural housing being advanced by majority deficit reduction
proposals, some rural elderly will suffer a particularly nasty
one-two punch. The combination of proposals will threaten the
ability of many rural southern elderly to maintain economic
independence.
The one year ``grace period'' provided by the bill is not
adequate time for a smooth transition. We believe that, at a
minimum, all quota holders should be ``actively engaged'' in
the production and marketing of their quota for two out of
three years or risk forfeiture of their peanut quota. Such an
approach provides for a smoother transition and provides for
equal treatment under law.
(5) Spring and Fall Transfers. The immediate implementation
of 100% sale and lease of quota across county lines creates
hardships very similar to the issues raised by the ``Certain
Farms Ineligible'' provisions. At a minimum, the provision
should be phased in over the life of H.R. 2854 and should be
limited to 30% of a county's historical quota.
H.R. 2854 and the Sugar Program
While we support many of the sugar program reforms
contained in H.R. 2854, we take issue with two provisions that
negatively impact U.S. sugar producers and are punitive in
nature. On the positive side, these are grower-supported
provisions to create a less regulatory sugar program, and H.R.
2854 does provide a 7-year countercyclical farmer safety net
for the U.S. sugar producers (a feature we believe to be
essential for all U.S. producers). However, H.R. 2854 also
permits and encourages the importation of ``dumped'' foreign
sugar into the United States at a level that exceeds our GATT-
WTO obligations. As with changes to the peanut program reforms,
the bill's sugar program reforms place additional costs and
hardships on U.S. sugar producers.
(1) Nonrecourse Loans. We believe the trigger to establish
nonrecourse loans should be set at the GATT required 1,256,000
ton level and not at the excessively high 1,500,000 ton level.
We contend that the world market is currently governed by
protocols established under the recently completed Uruguay
Round of GATT and the newly evolved WTO, and the Republican
effort to key the nonrecourse loan trigger above the GATT-
required import levels only serves to unilaterally punish U.S.
sugar growers while encouraging increased imports from heavily,
and directly, subsidized foreign sugar.
(2) Forfeiture Penalty. We are opposed to this penalty.
Forfeiture of sugar would only be plausible if a Secretary of
Agriculture purposefully misused the import loopholes created
by the provisions of H.R. 2854. It is patently unfair to punish
victims of any USDA mismanagement of the sugar program. The
measure seems purposefully punitive in nature.
Export Competitiveness
H.R. 2854 hits American farmers below the belt when they
seek to compete in world markets. When the governments of other
countries are providing all allowable resources to assist their
farmers in selling their crops internationally, our Congress is
abandoning American farmers. Export Enhancement Program
expenditures in H.R. 2854 are $1.58 billion below the U.S.
subsidy value commitments under the Uruguay Round Agreement.
This will greatly limit the ability of the Department of
Agriculture to assist U.S. agricultural exports in years with
high levels of accumulated stocks, within the allowable limits
of the Uruguay Round Agreement.
The Market Promotion Program maximum level of funding is
reduced from the current level of $110 million to $100 million.
This is the Department of Agriculture's major export assistance
program for processed and high value agricultural products.
Foreign marketers of these products received significantly
greater support from their governments in export assistance and
the reduction in this bill will further decrease U.S. marketing
efforts, placing U.S. producers at a great disadvantage.
The Rural Economy
The payments provided by this bill decline and end in 2002.
Their meaning as transition payments will then become
inescapable. Farmers who will no longer be able to continue
operating for a variety of reasons will turn to the rural
communities in which they live for other means of earning a
livelihood. Agriculture accounts for less than 10 percent of
rural employment, yet nearly 50 percent of farm household
income derives from off-farm employment. As farm program
spending declines and finally ends under H.R. 2854, many farm
families will find local employment, leave rural communities to
seek jobs elsewhere, or live in poverty as a burden on their
local and state governments.
We supported an amendment in Committee to address these
needs. Our Republican colleagues voted in lock step against an
amendment to provide $3.5 billion through a ``Fund for Rural
America'' for rural development, research, and conservation.
Even were this investment incorporated, H.R. 2854 would still
reduce federal spending by over $9 billion. This fund would
simply allow rural America to adjust to the changing conditions
in government spending that exist today and that will be
intensified with this and other deficit reduction legislation.
Programs for business and industry, rural business
enterprise, rural economic development, rural technology and
cooperative development, and technical assistance and planning
are the very assistance rural communities will need to deal
with the ``transition'' forced by H.R. 2854. Other programs for
community facilities and water and waste disposal are the
specific elements local rural governments will require to
respond to increasing demand on them as their tax base shrinks,
employment declines and local consumer spending weakens.
Opponents of this amendment were willing to deny 3.5
billion additional dollars for rural development, for research,
and for conservation at a time when they are reducing farm
program payments by greater than 20%. There is no other sector
of the budget that is taking this kind of devastating
reduction. It is not hard to determine that these funds are
desperately needed, even though they will address only some of
the critical needs.
For example, over $3.5 billion is needed to ensure delivery
of safe drinking water to the remaining rural Americans
currently living without water piped directly into their homes,
and that amount would only take care of the over 1,600 rural
areas with critical pressing water quality problems. Another
$6.3 billion is needed over the next decade to meet worsening,
but not yet critical, drinking water supply problems of over
5.3 million people in over 3,100 rural areas. The water needs
in rural America alone could eat up the funds authorized in
this proposal. But there are many more needs.
For example, the same holds true for research funding. The
need is great. In fact, the National Research Initiative
received more than 3,000 proposals last year, but funding only
allowed for 783 to move forward. The demand for agriculture
research far exceeds the available resources. The Department
was only able to support 24% of the proposals submitted.
The two examples do not even address the need that will
exist in rural America to modernize in order to be included in
the new information technology transfer system--the future of
not only agriculture, but all of rural America. Without the
support they need to adjust to the massive cuts they are
receiving, rural Americans will be left behind once again.
Conservation
We are distressed with the Majority's refusal to provide
the Secretary of Agriculture with the authority to make new
enrollments in the Conservation Reserve Program in order to
keep the program viable. We are gambling with the fate of this
program by not providing the authority for new enrollments, and
we risk the ability of farmers and rural citizens receiving
federal assistance to address environmentally sensitive lands
and water resources.
We are also troubled about the levels of animals that the
bill has in place for the definition of ``Confined Animal
Feeding Operation'' in the Livestock Environmental Assistance
Program (LEAP). It appears that an arbitrary action was taken
to the detriment of some sectors of the livestock industry. The
number of animals that constitute a ``CAFO'' in regulations
differs greatly in several categories, namely the lowered
number of dairy cattle and the inflated numbers of cattle and
swine included in the LEAP provisions. It is our hope that this
issue will be addressed as the bill proceeds through the House.
Additionally, we have concerns about the prohibitions on
permanent easements and 30-year easements in the Wetlands
Reserve Program. H.R. 2854 would eliminate permanent and 30-
year easements from the WRP and replace them with 15-year
easements. Eliminating permanent and 30-year easements will
limit the ability of landowners to choose the option that would
best serve their needs. While we believe there is a need for
long-term easements, we think the best policy is to provide a
variety of easement and cost-share options and leave that
determination up to the landowner.
Conclusion
For these many reasons, we oppose H.R. 2854. The flawed
process used in its development has led to a devastatingly
misguided product. We believe that it is not too late to devise
a good farm policy. If our colleagues on the Committee have the
will, we can work together and design an approach that
safeguards the rural economy; that preserves a safety net
adequate to insure our nation's food security; and that makes
the government a helpful partner to the American farm producer
who is increasingly exposed to international competition.
Finally, we stress that time is of the essence and urge our
colleagues to act swiftly and work with us to enact farm policy
that addresses the goals we have expressed.
Charlie Stenholm.
Harold L. Volkmer.
John E. Baldacci.
Cythinia McKinney.
Tim Johnson.
Earl F. Hilliard.
Scotty Baesler.
Karen L. Thurman.
Ed Pastor.
Kika de la Garza.
George E. Brown, Jr.
Earl Pomeroy.
Bennie G. Thompson.
Tim Holden.
Eva M. Clayton.
Sam Farr.
Charlie Rose.
ADDITIONAL MINORITY VIEWS
I am strongly opposed to H.R. 2854, ``emergency farm
legislation'' as passed by the Agriculture Committee because it
is bad farm policy which, if allowed to run its 7 year course,
will adversely affect farmers, ranchers, their sons and
daughters, small rural communities, the rural environment, and
agriculture related businesses and farm-workers who are
dependent on a vibrant and healthy rural economy for their
livelihood.
H.R. 2854, code named ``emergency farm legislation'' is
nothing more than a $13 billion cut in farmers income to be
used for a tax break for the wealthiest people in America, and
for others who do not live on the farm, near a farm, or in
Rural America.
In their quest to obtain a tax break for the wealthiest
people in America the majority on the Agriculture Committee
along with the Speaker and the Chairman of the Budget Committee
have employed the adage ``there may be another way to skin this
cat'' by resurrecting the vetoed Freedom to Farm Act and
attempting to pass it as stand alone ``emergency farm
legislation''. They are hopeful that Congress will pass this
bad farm legislation so that no one will blame Republicans for
failing to enact farm policy for farmers and ranchers for over
a year since they came to power in January of 1995.
However, they are attempting to ``skin the same cat twice''
and that is not possible and it won't occur. The sham of
presenting Freedom to Farm as ``emergency farm legislation'' is
revealed by Secretary Glickman in a January 30, 1996 letter to
Chairman Roberts, when he states ``H.R. 2854 contains
essentially the same provisions, with minor revisions, as the
Agricultural Reconciliation Act of 1995, which I recommended
that President Clinton veto.''
The majority has been in power for over one year. They
failed to enact major necessary farm legislation, even though
they were on notice that some farm programs expired on December
31, 1995 and required reauthorization to avoid reverting to
earlier more costly permanent farm legislation.
This legislation is really Freedom ``NOT'' to Farm for many
farmers. In reality it is a welfare program for big
corporations and large farm owners. Some farmers would receive
payments of $80,000 whether they made $150,000 or $200,000 on
their farm operation as many will do this year. They are not
required to farm. They will still receive their welfare
payment. These excessive welfare payments will not only go to
large individuals and major corporations in time of need but
also at times when they don't need it at all. This is nothing
more than a welfare program for large farmers and corporations.
Most farmers don't want to be on welfare. The majority of
my farmers really want their income from the marketplace
prices,--not from a government check. But when prices are
depressed from world markets and from heavily subsidized grains
from other countries then they are willing to accept fair
payments so they can continue to operate in competition with
other heavily subsidized farmers from other areas of the world.
I want to emphasize farmers want a safety net not a welfare
program.
Rather than taking the advice of the Secretary and others
with constructive amendments on this committee to make changes
in Freedom to Farm and improve its chance of passage and
becoming law the majority has insisted on offering up the same
legislation for a second veto.
In addition to H.R. 2854 being bad for agriculture and
deserving of a veto, the process is flawed.
Originally, in September of 1995 this ``emergency farm
legislation'' came before the Agriculture Committee as
``Freedom to Farm'' and was surrounded by controversy over its
radical policy to end farm programs in 7 years and at the same
time reduce funding for agriculture programs by $13 billion.
The legislation was so controversial that it could not obtain a
majority of support of the members of the committee and it was
not reported. However, the Chairman of the Agriculture
Committee had ``Freedom to Farm'' legislative language included
as part of the Budget Reconciliation bill. All the maneuvering-
in spite of the fact that Freedom to Farm had not passed or
been reported from the Agriculture Committee.
Eventually, this radical proposal to cut farm income by $13
billion, along with billions of dollars of cuts in Medicare,
Medicaid, education, and the environment, as well as a $245
billion tax break for the rich--all embodied in the Budget
Reconciliation bill of 1995--was vetoed.
The flawed process continued on January 5, 1996 when
Freedom to Farm was reintroduced as a free-standing bill H.R.
2854. A business meeting was scheduled for January 30, 1995.
Again, hearings were not held on H.R. 2854, just as hearings
were not held on the Freedom to Farm Act.
At the January 30, 1996 business meeting the Agriculture
Committee reported H.R. 2854 and the Ranking Republican member
asked for unanimous consent that the three (3) day layover
period to file minority and supplemental views be waived. I
objected to the waiver. I objected in order to protect the
rights of the minority to file minority views on this
controversial legislation and the process by which the
Republicans are attempting to bring it to the floor.
In seeking to fulfill this pledge of a tax cut for the
richest corporations and individuals in America, the
Republicans have turned their back on past bi-partisan farm
policy and program development whereby Democrats and
Republicans have combined their efforts to help make Americans
the best fed people in the world, where consumers spend less of
their paycheck on food than do consumers in any other country
of the world. At the same time, in the past, American farmers
have been assured a safety-net of income and price-support
programs to insure that farmers and ranchers have the ability
to compete in the domestic and international marketplace with a
minimum of government interference. All that is gone under
Freedom to Farm emergency farm legislation and in that place we
are legislating a highly partisan, leadership inspired and
directed policy and program which will force small and medium
sized farmers out of business. Volatility in supply and price
will return and the stability of our agriculture community and
food supply will be jeopardized.
I object to the automatic writing of checks to the
wealthiest farmers and richest corporations in America (and
maybe some foreign owned corporations) regardless of need; I
object to the decision to end the farm programs in 7 years
through a series of declining payments which do not reflect
supplies and prices in the market place and which will result
in bankruptcy proceedings and drive many small and medium farm
operators out of business and off the farm; I object to turning
good farmers into welfare recipients.
The Democrats on the Agriculture Committee offered
amendments to correct many deficiencies, however, the
majority's intransigence to seriously consider amendments makes
it imperative that the rule to consider this legislation be
open so that the full House of Representatives has an
opportunity to offer corrective language to a bill that will do
irreparable harm to the agricultural community. Many of these
concerns can be addressed on the floor of the House.
If this bill's provisions that give welfare checks of up to
$80,000 to corporate farmers who don't need it is not corrected
I will have no alternative but to vote against it. It is not
good for our hard working farmers or for the rural areas in
which they live.
We, in Congress, are empowered with the responsibility to
provide the guidepath for agriculture in the future. This bill
provides a dead end road that will harm farmers, small
communities and agri-businessmen. Seven years of welfare and
then nothing. Payment for nothing. Is this a responsible
guidepath? No, it is a dead end road.
Harold L. Volkmer.
DISSENTING VIEWS
I have served for over 23 years as a member of the House
Committee on Agriculture. This Committee has usually operated
in an open, bipartisan manner. In the past, Members of the
Agriculture Committee had an opportunity to fully consider and
understand the legislation they were voting for and were
afforded an opportunity to hear from their constituents and
those directly affected by the legislation through the hearing
process. This has not been the case for H.R. 2854.
The Committee on Agriculture has been converted to a
rubber-stamp for legislation developed outside of the public
forums utilized in past Congresses. Legislation developed with
the participation of members of both parties is bipartisan.
Legislation developed by one party and presented for
endorsement by the other is not, regardless of who votes on
passage. In the past, we have been able to reconcile
philosophical differences and differing regional perspectives
through compromise. That is the democratic process. It was not
the process under which H.R. 2854 was considered by this
Committee.
Although this package contains some reforms and provisions
that I would have supported and have supported in the past, I
regret that I could not support this bill. For months, the
Committee has been largely inactive. There have been few
hearings or markups in subcommittee or full committee where
these proposals could have received more thoughtful debate and
scrutiny by both Republican and Democratic members. Instead, I
was asked to support a bill which authorized over $35 billion
over a 7-year period which I had no opportunity to examine
until a few days prior to consideration.
These arguments may seem too philosophical to some. But, if
we do not develop and consider legislation in an open,
democratic process I believe we are doing a great disservice to
the people we serve. The Committees of the House are supposed
to play an important role in the development and consideration
of legislation. Constituents expect us to know what we are
voting for, especially when we are spending their hard-earned
tax dollars. In the case of H.R. 2854, we were not permitted
the time to give this legislation the consideration that an
expenditure of billions of dollars deserved. We owe it to our
constituents to take the time to move through the legislative
process in a more deliberate and bipartisan fashion to craft a
thoughtful farm policy that will serve all the people who
depend upon our agricultural sector.
George E. Brown, Jr.
SUPPLEMENTAL MINORITY VIEWS
I join with my colleagues' criticisms, expressed in the
minority views, of H.R. 2854 and the process by which it was
moved through the Committee. I am submitting these additional
views only to emphasize the problems with the bill that I feel
most strongly about.
The farmers of the California Central Coast region that I
represent practice the most intense and productive speciality
crop agriculture in the world. They produce over $2.5 billion
worth of fresh fruits, vegetables, and horticultural crops
without any federal price supports or other direct federal
support. They have succeeded by embracing the full benefits,
and potential risks, of the market.
I believe that they represent the model for the future
progress of American agriculture as it moves into the next
century and into a market place dominated by global
competition. I believe that American agriculture must move in
this direction to remain a viable business and give farmers a
greater hand in their own future. I do not believe, however,
that this Central Coast model means that national farm policy
has no value to the agricultural economy of my region or the
future of rural American. On the contrary, research,
conservation, export promotion, rural development,
infrastructure, and credit enhancement programs are all crucial
to future success and sustainability of market driven
agriculture--and the federal government has a deep
responsibility to make sure that these programs help all of
rural America.
The deepest flaw of H.R. 2854 is that it ignores these
crucial, and I believe, most important, aspects of agricultural
policy. The Committee, and House leadership, are squandering a
tremendous opportunity. As Congress moves forward to reform
agricultural policy, we look to build a foundation for
agriculture's future success and not just fix the problems of
the past.
I am particularly concerned that it does not address the
loss of farmland to urban sprawl. During the Committee's
consideration of H.R. 2854 I raised, and then withdrew, an
amendment that is based on legislation, H.R. 2429, that I have
developed with Representative Wayne Gilchrest to help the
states address the troubling loss of farmland to urbanization--
over 1,000,000 acres a year at current rates. The states have
taken the lead in helping farmers keep this land in agriculture
and out of the grasp of urban development and the federal
government should help the states with their efforts. I am glad
that the Committee expressed a willingness to work with me on
this issue in the future. However, I see no reason why this
issue should not be addressed in H.R. 2854.
Moreover, the development of agriculture policy must regain
its bipartisan character if there is to be any hope of moving
farm legislation forward this year. As our country becomes ever
increasingly suburbanized, agriculture will become an ever
increasing abstraction for most Americans. Food will continue
to appear on supermarket shelves, but fewer and fewer people
will have a direct connection or understanding of the farmers,
ranchers, and rural economies, and rural environments that
produce that food. In the coming century, it will only become
more difficult to build broad national support for agricultural
policy. There has never been a worse time to break apart the
bipartisan coalition that has traditionally supported
agriculture as has occurred during the consideration of H.R.
2854.
I believe that good farm policy can yet be salvaged out of
the mess that this Congress created. I look forward to working
with all of my colleagues on this difficult and vitally
important task.
Sam Farr.