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[House Report 107-191]
[From the U.S. Government Publishing Office]

                                                                       
107th Congress                                            Rept. 107-191
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 2

======================================================================

 
                       FARM SECURITY ACT OF 2001
                                _______
                                

                August 31, 2001.--Ordered to be printed

                                _______
                                

Mr. Combest, from the Committee on Agriculture, submitted the following

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 2646]

      [Including cost estimate of the Congressional Budget Office]

  This supplemental report includes additional committee 
positions and the Congressional Budget Office cost estimate and 
shows the changes in existing law made by the bill (H.R. 2646), 
as reported, which was omitted in part 1 of the report 
submitted on August 2, 2001 (H. Rept. 107-191, pt. 1).
  This supplemental report is submitted in accordance with 
clause 3(a)(2) of Rule XIII of the Rules of the House of 
Representatives.

                     Additional Committee Position

    Several of the statutory changes made by title II of H.R. 
2646 are merely clarifying or simplifying the programs 
authorized under title XII of the Food Security Act of 1985. 
These statutory changes do not require--and the Committee does 
not expect--any changes in program administration. In order to 
ensure that the Committee's expectation with regard to these 
provisions is clearly understood, the following additional 
committee views are included with regard to Title II of H.R. 
2646.

Sec. 221. Elimination of General Provisions

    This provision eliminates the Environmental Conservation 
Acreage Reserve Program (``ECARP'') because it is redundant, 
unnecessary, and USDA has not used its priority areas authority 
in program implementation. USDA has instead relied upon 
specific priority area authority under the separate Title XII 
programs. Understanding that this deletion will remove the 
ECARP reference to the phrase ``soil, water and related natural 
resources,'' the Committee notes that related resources, such 
as wildlife habitat, are adequately addressed and included in 
the specific programs authorized by Title XII.

Sec. 232. Enrollment

    In eliminating the priority area authority in section 
1231(f), the Committee does not intend for the Secretary to 
administer the CRP without any priorities. Rather, in directing 
the Secretary to develop regulations to implement section 
1231(i), the Committee intends that the Secretary shall develop 
a means by which some priority shall be given to applications 
proposing to address particularly important environmental 
issues. In so doing, it is the intent of the Committee that the 
Secretary, in consultation with other appropriate interested 
parties, shall focus on priority issues rather than specific 
geographic areas.
    In including the provision regarding the eligibility of 
expiring CRP contracts, it is the Committee's intent that 
expiring CRP acreage be eligible to re-enroll, not that it 
automatically be re-enrolled. Acreage with expiring contracts 
would still have to compete during general sign-ups with all 
other acreage being offered or meet the other eligibility 
requirements for enrollment in the continuous sign-up.

Sec. 233. Duties of Owners and Operators

    With respect to managed grazing, limited haying and the 
installation of wind turbines, the Committee expects that any 
such permitted activity will be done in a manner which is 
consistent with the overall goals of the Conservation Reserve 
Program.

Sec. 242. Easements and Agreements

    USDA currently enrolls acres in the Wetlands Reserve 
Program either through easements (permanent or otherwise) or 
cost-share restoration. The Committee expects USDA to continue 
to enroll acres in these manners as appropriate, and is merely 
simplifying those statutory provisions in section 1237 to 
remove the reference to enrollment percentages, which are no 
longer relevant.
    Similarly, the change made to section 1237A is also 
simplifying the statute by removing redundant references to 
mowing and spraying, which are already habitat alterations 
under section 1237A(b)(2). The Committee notes that the 
statute, as rewritten, prohibits habitat alternation unless 
contained in the management plan, and the committee expects 
this to include mowing, grazing, and spraying of chemicals.
    Even though the Committee is deleting the mandatory 
requirement for the Secretary to consult with the State 
Technical Committee in developing a wetlandrestoration plan, 
the Committee notes that the Secretary maintains the discretionary 
authority to do so, and expects the Secretary to consult with the State 
Technical Committee when appropriate.

Sec. 243. Duties of the Secretary

    Similarly, even though the Committee is deleting the 
mandatory requirement to consult with the Secretary of the 
Interior in awarding easements, the Committee notes that 
Secretary continues to have the discretionary authority to do 
so, and expects the Secretary to consult the Secretary of 
Interior when appropriate for assistance in determining the 
value of an agreement for protecting and enhancing habitat for 
migratory birds and other wildlife.

Sec. 252. Definitions

    The Committee notes that while wildlife habitat is not 
included in the definition of a structural practice, it is the 
intent of this Committee that the Secretary shall award, 
whenever possible, EQIP contracts in which incidental benefits 
to wildlife are also produced.

Sec. 255. Duties of the Producer

    This section deletes section 1240D(2) as unnecessary. The 
Committee is unaware of this circular provision being used by 
USDA as authority in program administration, and notes that the 
provision adds nothing to the authority of the Secretary in 
administering EQIP. The Committee does not intend the deletion 
of this provision to impact in any way the Secretary's 
authority to include appropriate terms and conditions in 
agreements entered into with producers under EQIP.

Sec. 274. Grassland Reserve Program

    The Committee notes that the Secretary has the 
discretionary authority to consult with state fish and wildlife 
agencies in appropriate circumstances to assist in determining 
the end of the nesting and brood rearing season for birds in 
the local area, and expects the Secretary to do so.
    The Committee also intends that necessary surface 
disturbances required by a management plan on a restored site 
are implicitly excepted from the general prohibition on 
activities which would disturb the surface of the land, owing 
to the fact that the restored site has already been disturbed.

Sec. 275. Farmland Stewardship Program

    The Committee notes that the Secretary will continue to 
have the discretionary authority to consult with State 
Technical Committees, when appropriate, in determining whether 
a particular provision of a conservation program may be waived.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 23, 2001.
Hon. Larry Combest,
Chairman, Committee on Agriculture,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2646, the Farm 
Security Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jim Langley.
            Sincerely,
                                            Dan L. Crippen,
                                                          Director.
    Enclosure.

H.R. 2646--Farm Security Act of 2001

    Summary: H.R. 2646 would amend and extend through 2011 the 
major farm income support, land conservation, credit 
assistance, food assistance, trade promotion, marketing 
assistance, and rural development programs administered by the 
U.S. Department of Agriculture (USDA). CBO estimates that 
enactment of this legislation would increase direct spending by 
$1.9 billion in 2002, $33.4 billion over the 2002-2006 period, 
and $69.5 billion over the 2002-2011 period. Additional outlays 
occurring after 2011 would bring the total of new direct 
spending from the legislation to $73.1 billion. When combined 
with estimated spending under current law, enactment of H.R. 
2646 would bring total spending to $35.1 billion in 2002, 
$203.1 billion over the 2002-2006 period, and $409.7 billion 
over the 2002-2011 period. Because enactment of the bill would 
affect direct spending, pay-as-you-go procedures would apply.
    The bill also would authorize discretionary appropriations 
for existing and new programs for research and education, 
nutrition, trade promotion, rural development, credit 
assistance, and forestry initiatives. Assuming appropriation of 
the necessary amounts, CBO estimates that implementing those 
provisions affecting discretionary spending would cost about 
$14.6 billion over the 2002-2006 period, and $37.4 billion over 
the next 10 years.
    The bill contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA). State, local, and 
tribal governments would probably receive some of the 
assistance authorized by this bill. Any costs these governments 
might incur to comply with conditions of this assistance would 
be voluntary.
    H.R. 2646 would impose private-sector mandates as defined 
by UMRA. The bill would impose new assessments on importers of 
dairy products and U.S. producers of caneberries. The bill also 
would allow the Secretary of Agriculture to expand the 
reporting requirement now placed on manufacturers and persons 
who store dairy products. Based on information provided by 
industry sources and USDA, CBO estimates that the direct costs 
of those private-sector mandates would fall below the annual 
threshold for private-sector mandates established in UMRA ($113 
million in 2001, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the bill is shown in Table 1. The costs of 
this legislation fall within budget functions 300 (natural 
resources and environment), 350 (agriculture), 450 (community 
and regional development), and 600 (income security).

                                TABLE 1. ESTIMATED BUDGETARY IMPACT OF H.R. 2646
----------------------------------------------------------------------------------------------------------------
                                                                By fiscal year, in millions of dollars
                                                     -----------------------------------------------------------
                                                        2001      2002      2003      2004      2005      2006
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING

Spending Under Current Law: \1\
    Estimated Budget Authority......................    44,278    33,520    34,014    34,273    34,333    34,027
    Estimated Outlays...............................    43,972    33,219    33,991    34,347    34,161    34,014
Proposed Changes:
    Estimated Budget Authority......................         0     3,280     7,285     8,827     8,682     8,657
    Estimated Outlays...............................         0     1,906     6,504     8,345     8,277     8,371
Spending Under H.R. 2646:
    Estimated Budget Authority......................    44,278    36,800    41,299    43,100    43,015    42,684
    Estimated Outlays...............................    43,972    35,125    40,495    42,692    42,438    42,385

                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Estimated Authorization Level \2\...............     3,507     4,545       464       473       481       443
    Estimated Outlays...............................     3,569     4,418     2,395     1,218       554       497
Proposed Changes:
    Specified Authorization Level...................         0       150     2,838     2,838     2,838     2,838
    Estimated Outlays...............................         0        68     1,428     2,215     2,783     2,839
    Estimated Authorization Level...................         0        46     1,585     1,613     1,642     1,672
    Estimated Outlays...............................         0        23       863     1,351     1,508     1,566
Spending Under H.R. 2646:
    Estimated Authorization Level...................     3,507     4,741     4,887     4,924     4,961     5,003
    Estimated Outlays...............................     3,569     4,509     4,686     4,784     4,845     4,902
----------------------------------------------------------------------------------------------------------------
\1\ The amounts shown as direct spending for 2001 are CBO's estimates of farm income support and related
  spending under current law including $5.5 billion in assistance payments enacted in Public Law 107-25. The
  2002-2006 amounts are CBO's current-law baseline levels, which assume that assistance under the Federal
  Agricultural Improvement and Reform Act of 1996 (Public Law 104-127) is continued under the terms of that law
  when it expires at the end of 2002.
\2\ The 2001 level is the amount appropriated that year for affected agricultural trade promotion, nutrition,
  credit assistance, and rural development, and research programs. Amounts for 2002 and beyond are authorized to
  be appropriated for these programs in current law.

    Basis of estimate: The bill would make several changes to 
direct spending programs and would authorize the appropriation 
of funds for other programs. For this estimate, CBO assumes 
that H.R. 2646 will be enacted by December 2001, and thus would 
affect farm programs for 2002 crops, and that the necessary 
amounts would be appropriate for each fiscal year.

Direct spending

    The bill would amend existing programs and establish new 
programs to be administered by USDA. Under current law, 
spending for the existing programs is governed, in large part, 
by provisions of the Federal Agricultural Improvement and 
Reform Act of 1996 (FAIR Act, Public Law 104-127). The Congress 
has supplemented that spending with additional farm income 
support payments over the last four years. For example, Public 
Law 107-25, enacted, in early August, will provide $5.5 billion 
of additional payments to farmers in fiscal year 2001, 
resulting in total direct spending for agriculture programs of 
about $44 billion this year. CBO estimates that spending under 
H.R. 2646 would be much higher than projected under a simple 
(baseline) extension of the FAIR Act, but that such spending 
would fall slightly below the total spending in 2001--averaging 
about $41 billion over the 2002-2006 period.
    Relative to CBO's current-law baseline projections for 
direct spending, we estimate that enacting this legislation 
would cost $33.4 billion over the 2002-2006 period and $69.5 
billion over the 2002-2011 period (see Table 2). The bill would 
provide $73.1 billion in new direct spending authority, 
relative to the baseline levels, but CBO estimates that $3.6 
billion of that total would be spent after 2011. The following 
paragraphs detail those proposed changes.
    Title I: Commodity Programs. This title would reauthorize 
and amend the current commodity support programs administered 
by USDA, and also would implement new programs. CBO estimates 
that enactment of title I would increase direct spending by 
$25.8 billion over 2002-2006 period, and by $49.8 billion over 
the 2002-2011 period.
    Fixed, Decoupled Payments for Covered Commodities. Section 
104 of the bill would continue and increase USDA's fixed 
payments to growers of grains and cotton, and would allow 
producers of soybeans and other oilseeds to receive them. Under 
the bill, farmers would have a one-time opportunity to update 
their program acreage--the historical average used to determine 
their eligibility for programs benefits. CBO estimates that the 
cost of increasing payments rates, adding soybeans and 
oilseeds, and allowing the program acreage update would be $6.9 
billion over the 2002-2006 period and $13.9 billion over the 
2002-2011 period.

                                          TABLE 2. ESTIMATED CHANGES IN DIRECT SPENDING FOR H.R. 2646, BY TITLE
                                                    [Outlays in millions of dollars, by fiscal year]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                2002      2003      2004     2005     2006     2007     2008     2009     2010     2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Title I--Commodity Programs:
    Fixed, Decoupled Payments...............................    1,387      1,387    1,387    1,387    1,387    1,387    1,387    1,387    1,387    1,387
    Counter-Cyclical Payments...............................        0      4,232    5,394    5,048    4,874    4,601    4,122    3,496    2,957    2,575
    Market Assistance Loans.................................     -147     -1,032     -832     -774     -701     -559     -516     -480     -485     -385
    Payments for Grazing....................................        5          4        3        3        2        2        2        1        1        1
    Marketing Assistance Loans for Wool, Mohair, and Honey..       25         33       33       32       32       31       31       30       29       28
    Milk Price Support Program..............................       24         90       89       86       85       85       84       83       73       74
    Sugar Program...........................................       50         40      -42      -38      -25      -18       -1        0       -9       25
    Peanut Program..........................................      299        504      499      493      486      251      246      242      236      231
                                                             -------------------------------------------------------------------------------------------
      Subtotal--Title I.....................................    1,643      5,258    6,531    6,237    6,140    5,780    5,355    4,759    4,189    3,936
Title II--Conservation:
    Conservation Reserve Program............................       21         78      123      190      232      237      205      164      169      173
    Wetlands Reserve Program................................       93        158      178      184      189      195      201      207      213      222
    Limitation and Timing of Environmental Quality Payments.        0        121      104       30       30       41       24       16     -100     -101
    Groundwater Conservation................................       13         31       46       50       54       59       63       65       68       68
    Environmental Quality Incentives........................       40        341      621      700      777      885      955    1,003    1,062    1,069
    Wildlife Habitat Incentives Program.....................        6         13       25       25       25       25       25       25       25       25
    Farmland Protection Program.............................        0         11       35       45       50       50       50       50       50       50
    Grassland Reserve Program...............................        0          2       10       23       40       55       61       54       43       37
                                                             -------------------------------------------------------------------------------------------
      Subtotal--Title II....................................      173        755    1,142    1,247    1,397    1,547    1,584    1,584    1,530    1,543
Title III--Trade............................................       21        111      136      137      137      137      137      137      137      137
Title IV--Nutrition.........................................       40        302      344      406      411      422      427      422      427      438
Title V--Credit.............................................        0          0        0        0        0        0        0        0        0        0
Title VI--Rural Development Outlays.........................        8         46       98      127      132      133      125      113       95       95
Title VII--Research and Related Items.......................        0          0       58       87      116      131      145      145      145      145
Title VIII--Forestry Initiatives............................        6         12       16       16       17       18       20       22       26       31
Title IX--Miscellaneous Provisions..........................       16         20       20       20       21       21       21       21       21       21
                                                             -------------------------------------------------------------------------------------------
      Total Changes.........................................    1,906      6,504    8,345    8,277    8,371    8,189    7,814    7,203    6,570    6,346
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Counter-Cyclical Payments for Covered Commodities. The bill 
would authorize USDA to make automatic payments to producers to 
offset low prices--known as counter-cyclical payments. These 
payments would be based in part on a farm's production history. 
The payment rate would be the target price established in the 
bill less the fixed, decoupled payment rate (also specified in 
the bill) and less the crop price or the price-support loan 
rate if it is higher than the crop price. CBO estimates this 
provision would cost $19.5 billion over the 2002-2006 period 
and $37.3 billion over the 2002-2011 period.
    Marketing Assistance Loans for Covered Commodities. H.R. 
2646 would authorize USDA to continue crop loans and marketing 
loan programs for major row crops (grains, oilseeds, and 
cotton). Loan programs would remain unchanged from current law 
for most of these crops, but maximum loan rates for soybeans 
and other oilseeds would decline by about 6.5 percent. From 
2002 through 2006, CBO estimates these provisions would reduce 
spending by $3.5 billion, compared to current law. Savings 
would total $5.9 billion over the 2002-2011 period. Income and 
incentives to grow oilseeds would decline under reduced loan 
rates resulting in lower spending for oilseed loans, loan 
deficiency payments and marketing loan gains of $5.6 billion 
over 2002 through 2006, and $8.9 billion over 2002 through 
2011. These lower costs would be partially offset by increased 
costs of about $2.2 billion over five years, and $3 billion 
over 10 years for similar programs for corn and other crops, as 
growers switched their planting preferences away from soybeans 
and other oilseeds.
    Loan Deficiency Payments for Grazing. The bill would permit 
producers to receive loan deficiency payments on grains which 
were grazed by livestock instead of harvested for grain. CBO 
estimates this provision would cost $17 million over five years 
and $24 million over 10 years.
    Marketing Assistance Loans for Wool, Mohair, and Honey. 
H.R. 2646 would establish a nonrecourse marketing assistance 
loan program for producers of wool, mohair, and honey. 
Marketing loan gains and loan deficiency payment provisions 
would apply to these commodities and would be subject to a 
separate $75,000 payment limitation. CBO estimates that these 
new provisions would cost $94 million for wool and mohair, and 
$61 million for honey, over the 2002-2006 period. Over 10 
years, those totals would rise to $202 million for wool and 
mohair, and $101 million for honey.
    Milk Price Support Program. H.R. 2646 would extend the 
current milk price support program through 2011 at the current 
purchase price of $9.90 per hundredweight. Under the bill, the 
recourse loan program for dairy processors would be repealed. 
CBO estimates this provision would save $65 million over the 
next 10 years. CBO estimates that continuing the dairy price 
support through 2011 would cost $838 million over the 2002-2011 
period. Under the bill, we estimate that the net cost of the 
milk price support program over the next 10 years would be $773 
million. (The net cost would be $374 million through 2006.)
    Sugar Program. The bill would continue and amend USDA's 
sugar program by removing the marketing assessment currently 
paid by growers, lowering the interest rate charged on price-
support loans, and adding a storage facility loan. We estimate 
these amendments would increase program costs by about $500 
million over the next 10 years. Moreover, the bill would 
provide new authority to pay farmers with government-owned 
stocks of sugar (payment-in-kind) for idling acreage, and the 
authority to use marketing allotments to control supply if 
sugar imports decline in the future. We estimate these new 
authorities would reduce the cost of the sugar program relative 
to current law, and that net spending for the sugar program 
would decline by $18 million over the 2002-2011 period.
    Peanuts. H.R. 2646 would make substantial changes to USDA's 
peanut program. Under the bill, CBO estimates that the peanut 
program would cost $2.3 billion over the 2002-2006 period and 
$3.5 billion over the 2002-2011 period. Peanut marketing 
quotas, and support rates for peanuts produced within the 
marketing quotas would be eliminated. Instead, peanut producers 
would become eligible for fixed, decoupled payments, counter-
cyclical payments, and marketing assistance loan benefits. 
Under the legislation, a single, nonrecourse marketing 
assistance loan rate would apply to all peanut production that 
is lower than the current rate. The bill would compensate some 
peanut growers for the loss of asset value due to elimination 
of marketing quotas. Over the next 10 years, CBO estimates that 
the new peanut provisions would cost $625 million for fixed, 
decoupled payments, $1,242 million for counter-cyclical 
payments, $436 million for marketing assistance loans, and 
$1,180 million for compensation to peanut quota holders.
    Title II: Conservation Programs. This title would 
reauthorize and expand land conservation programs administered 
by USDA. CBO estimates these provisions would cost $4.8 billion 
over the 2002-2006 period, and $12.5 billion over the 2002-2011 
period. (Spending would continue for a number of years after 
2011, for a total estimated cost of $15.7 billion.)
    Changes to Existing Programs. The bill would increase the 
maximum acreage enrollment in the Conservation Reserve Program 
to 39.2 million acres from the current cap of 36.4 million 
acres. We estimate that this increase would cost $644 million 
through 2006, and $1.6 billion over the 2002-2011 period.
    Acreage enrollment in the Wetlands Reserve Program (WRP) 
would expand by 150,000 acres per fiscal year under the bill, 
for a total acreage enrollment of 2.575 million acres by 2011. 
We estimate that the WRP provisions would cost $802 million 
through 2006, and $1.8 billion over the 2002-2011 period.
    Funding for the Environmental Quality Incentives Program 
(EQIP) would be increased by $1 billion a year, for a cost of 
$2.5 billion through 2006, $7.5 billion over the 2002-2011 
period, and additional costs after 2011. The bill would add 
$517 million to EQIP to addressgroundwater conservation, and 
accelerate the timing of EQIP payments that would increase outlays by 
$165 million over the 10-year period.
    The bill also would increase funding for the Wildlife 
Habitat Incentives Program by $25 million a year, and for the 
Farmland Protection Program by $50 million a year. CBO 
estimates that the total cost for these amendments would be 
$610 million over the 2002-2011 period.
    Technical Assistance. The bill would provide $850 million 
for salaries and expenses to design and implement conservation 
programs over the 2002-2011 period. That amount is included in 
the changes cited above for the individual conservation 
programs.
    New Conservation Program. H.R. 2646 would establish the 
Grasslands Reserve Program. This program would authorize the 
Secretary of Agriculture to enroll up to 2 million acres in 10-
year to 20-year contracts, equally divided between virgin 
(never cultivated) grasslands and restored grasslands. To be 
eligible for this program, land would need to be dominated by 
natural grass or shrubland and have the potential to serve as 
habitat for animal or plant populations of ecological value. 
CBO estimates that the program would cost $325 million over the 
2002-2011 period.
    Title III: Trade Programs. Title III would extend USDA's 
authority to administer programs to promote trade through 2011, 
and would increase funding for the Market Access Program, the 
Foreign Market Development Cooperator Program, and the Food for 
Progress Program. CBO estimates that enacting title III would 
cost about $540 million over the next five years, and about 
$1.2 billion through 2011.
    Increases to Existing Programs. The bill would increase 
annual funding for the Market Access Program from $90 million 
to $200 million, increase annual funding for the Foreign Market 
Development Cooperator Program from $28 million to $35 million, 
and increase the caps on annual funding for administrative and 
transportation expenditures under the Food for Progress 
program. The cap on administrative expenditures would be 
increased from $10 million to $12 million, while the cap on 
transportation and other non-commodity expenditures would be 
increased from $30 million to $35 million. Those provisions 
account for most of the estimated 10-year cost of $1.2 billion 
for title III.
    New Trade Program. Title III also would authorize $3 
million in annual funding from the Commodity Credit Corporation 
to establish an export assistance program for specialty crop 
producers. We estimate this provision would cost $29 million 
over the next 10 years.
    Title IV: Nutrition Programs: This title would reauthorize 
and modify the Food Stamp Program and related programs through 
fiscal year 2011. Under the bill, most changes in this title 
would become effective in 2003. It also would increase funding 
for commodity purchases for the Emergency Food Assistance 
program. CBO estimates these changes would increase direct 
spending by $40 million in 2002, by $1.5 billion through 2006, 
and by $3.6 billion over the 2002-2011 period.
    Reauthorization of the Food Stamp Program. Section 406 
would reauthorize the Food Stamp program through fiscal year 
2011. Because it is assumed to continue in CBO's baseline, 
there are no changes in spending associated with its 
reauthorization.
    Income Definition. Section 401 would allow a state to 
exclude from gross income in the Food Stamp program any 
educational loans or other educational assistance that the 
state is required to exclude in Medicaid. It also would allow a 
state to exclude types of income that it excludes in Medicaid 
or Temporary Assistance for Needy Families (TANF). CBO 
estimates that this provision would increase spending by $57 
million over the next 10 years. CBO used Food Stamp Quality 
Control (QC) data to estimate the change in benefits if 
educational assistance that is counted under current law is 
excluded from income in determining benefits. About 5,000 
households are estimated to be affected with an average 
reduction of $68 a month. We also added the costs of excluding 
a small portion of unearned income. States have flexibility to 
determine what is excluded from the definition of income in 
Medicaid and TANF, so these rules vary by state, but most 
differences are minor. CBO assumes that 90 percent of states 
would exercise the option to exclude income as allowed under 
this section.
    Standard Deduction. Section 402 would set the amount of the 
standard deduction as a percentage of the net income threshold 
for fiscal year 2002. Under current law, all households receive 
the same standard deduction from gross income: $134 in the 48 
states and the District of Columbia. (Alaska, Hawaii, Guam, and 
the U.S. Virgin Islands have different standard deductions.) 
This bill would set the standard at 9.7 percent of the net 
income threshold by household size. Smaller households would be 
guaranteed the current-law standard deduction, and no household 
could receive a standard that is higher than 9.7 percent of the 
net income threshold for a household of six people in 2002.
    Under this section, some households would receive higher 
Food Stamp benefits than under current law, because less of 
these households' income would be considered available for 
purchasing food. Most households of four people or more would 
receive higher benefits. Using QC data, CBO estimates that over 
1.5 million households would receive an average increase in 
benefits of more than $8 per month for total costs of $150 
million in 2003 and $1.4 billion over the 2003-2011 period.
    Transitional Food Stamps. Section 403 would allow states to 
provide up to six months of Food Stamp benefits to households 
leaving the TANF Program. These benefits would be frozen at the 
level received in the month prior to leaving welfare, although 
a household couldreapply for benefits. Under final regulations 
released in November 2000, states have the option to provide 
transitional benefits to these households for up to three months. This 
section would allow states to provide transitional benefits for an 
additional three months, even if the transitional benefit period 
extends beyond the household's Food Stamp certification period.
    Based on the number of active cases and TANF cases closed 
in 1999, CBO estimates there will be about 1.6 million closed 
cases annually. We made adjustments to this number for 
households that would continue to be Food Stamp recipients 
under current law, for households that would return to TANF 
during the transition period, and for households that would not 
be eligible because of sanctions or noncooperation with welfare 
rules. These adjustments are based on various studies of people 
who leave welfare. CBO estimates about 35,000 TANF households 
in an average month could potentially be eligible for 
transitional benefits, and that states accounting for about 
half of these cases would choose this option by 2005. These 
households would receive an additional three months of benefits 
relative to current law with average benefits of about $250 per 
month in 2003, for costs of $80 million in 2003, and $1.5 
billion over the 10-year period.
    Quality Control System. Under current law, USDA measures 
the accuracy of benefit determinations and computes payment 
error rates for every state. States that have payment error 
rates higher than the national performance measure are subject 
to sanctions. Most states subject to sanctions enter into 
agreements with USDA to reinvest these liabilities into program 
improvements. Section 404 would revise the QC system to 
sanction states that have error rates with a 95 percent 
statistical probability of being 1 percentage point greater 
than the national average for three years in a row. Based on 
information from USDA, CBO assumes that USDA would continue to 
work with states to reinvest liabilities into program 
improvements so there would be no change in collections from 
sanctions.
    This section also would create bonus payments for two new 
performance measures: timeliness in processing applications and 
accuracy of denying or terminating eligibility. The five states 
with the best performance in a year and the five states with 
the most improved performance in a year would receive $1 
million each for fiscal years 2002 through 2007. CBO expects 
that states would receive these payments in the year after the 
year for which the bonus is made. Spending would increase by 
$10 million each year for fiscal years 2003 through 2008.
    Simplified Application Forms and Eligibility Determination 
Systems. Section 405 would provide up to $10 million each year 
to pay for 100 percent of the costs incurred by states to 
develop and implement simplified application forms and 
eligibility processes. CBO estimates this would increase direct 
spending by $9 million in 2003 and $10 million each subsequent 
year.
    Two smaller programs within the Food Stamp Act would be 
reauthorized by H.R. 2646. Section 406 would reauthorize the 
modified Food Stamp program in American Samoa at $5.3 million 
each year through 2011. The bill also would reauthorize 
assistance for community food projects at $7.5 million each 
year for fiscal years 2002-2011, which is $5 million more than 
the fiscal year 2002 authorization. CBO estimates that 
implementing these two programs would cost $114 million over 
the 2002-2011 period.
    Section 406 would authorize $140 million each year from 202 
through 2011 for commodity purchases for the Emergency Food 
Assistance program. Current law authorizes $100 million through 
2002. The bill would require that $10 million of the funds be 
used for costs associated with distributing the commodities. 
This provision would increase direct spending by $38 million in 
2002 and by $398 million over the 2002-2011 period.
    Title VI: Rural Development Programs. This title would 
provide funding for several rural development initiatives, 
including $50 million a year for value-added agricultural 
product market development grants, $200 million over the 2002-
2006 period for loans and grants to improve local television 
access in rural areas, and $30 million a year for community 
water assistance grants. It also would provide $15 million in 
grants to support a new pilot program for strategic regional 
development planning. DBO estimates that enacting title VI 
would cost $411 million over the 2002-2006 period and $972 
million over the 2002-2011 period.
    Title VII: Research and Related Items. This title would 
increase mandatory research spending for the Initiative for 
Future Agriculture and Food Systems by $261 million over the 
2002-2006 period and $972 million over the 2002-2011 period. 
This initiative would award funding to research projects that 
address critical emerging issues related to future food 
production, environmental protection, farm income or 
alternative uses of agricultural products.
    Title VIII: Forestry Initiatives. This title would repeal 
two existing forestry programs and establish a new program to 
provide assistance to owners of private nonindustrial forest 
lands. The bill would authorize the Secretary of Agriculture to 
spend $150 million over the next 10 years to implement that 
program. Based on information from USDA, we estimate that the 
proposed program would cost $138 million over 2002-2001 period, 
and additional amounts after 2011.
    This title also would allow USDA and the Department of the 
Interior to use long-term stewardship contracts to implement 
projects to remove hazardous fuels (overly dense forest 
vegetation) from certain federal lands. Under such contracts, 
the agencies could retain and spend any receipts generated from 
such contracts to implement additional projects. Based on 
information from the Forest Service, we estimate that the net 
increase in direct spending from this provision would total $46 
million over the 2002-2011 period. That estimateassumes that, 
in some cases, the agency would use stewardship contracts to implement 
projects that otherwise would have been completed using the agency's 
existing authorities.
    Title IX: Miscellaneous Programs. Based on information from 
USDA, CBO estimates that this title would provide $56 million 
over the next 10 years for a Tree Assistance program to 
compensate orchardists for losses of trees due to natural 
disasters. The title also would authorize $15 million a year in 
direct spending for farmers market nutrition programs, for 
total spending of about $146 million over the 2002-2011 period.

Spending subject to appropriation

    Implementing H.R. 2646 also would increase spending subject 
to appropriation. Assuming appropriation of the necessary 
amounts, CBO estimates that implementing the bill would cost 
about $14.6 billion over the 2002-2006 period, and $37.4 
billion over the 2002-2011 period (see Table 3).
    Title II. Conservation. The bill would authorize the 
appropriation of $15 million a year for the Small Watershed 
Rehabilitation Program. CBO estimates that this program would 
cost $65 million over five years and $140 million over 10 
years.
    Title III: Trade. This title would reauthorize 
appropriations for the Food for Peace program through 2011. 
Based on the amount provided for this program in 2001, CBO 
estimates that the Food for Peace program would cost about $3.3 
billion over the 2002-2006 period and, $8.6 billion over the 
2002-2011 period, subject to the appropriation of the necessary 
funds each year.
    Title IV: Nutrition. This title would reauthorize two 
commodity assistance programs, and authorize the establishment 
of a trust fund for a Congressional fellowship program. 
Assuming appropriation of the necessary amounts, CBO estimates 
these provisions would cost $1.4 billion over the 10-year 
period.
    Commodity Assistance Programs. Section 442 would extend the 
authorization for the Commodity Supplemental Food program 
(CSFP) for fiscal years 2003 through 2011. The program would be 
authorized at the level needed to maintain traditional 
assistance levels. The CSFP provides supplemental commodities 
for women, infants, and children, and for elderly individuals. 
Section 443 would authorize $50 million each year for fiscal 
years 2003 through 2011 for costs related to distributing 
commodities in the Emergency Food Assistance program. Based on 
historical spending in these programs, CBO estimates increased 
spending of $130 million in 2003, and $1.4 billion over the 
2003-2011 period.

                                  TABLE 3. ESTIMATED CHANGES IN DISCRETIONARY AUTHORIZATIONS IN H.R. 2646, BY TITLE \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         By fiscal year, in millions of dollars
                                                               -----------------------------------------------------------------------------------------
                                                                  2002     2003     2004     2005     2006     2007     2008     2009     2010     2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Title II--Conservation:
    Estimated Authorization Level.............................       15       15       15       15       15       15       15       15       15       15
    Estimated Outlays.........................................        9       12       14       15       15       15       15       15       15       15
Title III--Trade:
    Estimated Authorization Level.............................        0    1,016    1,035    1,056    1,076    1,096    1,116    1,138    1,160    1,182
    Estimated Outlays.........................................        0      535      866      948      979    1,011    1,034    1,053    1,074    1,095
Title IV--Nutrition Programs:
    Estimated Authorization Level.............................        0      150      152      154      156      158      160      162      164      167
    Estimated Outlays.........................................        0      150      152      154      156      158      160      162      164      167
Title V--Credit:
    Estimated Authorization Level.............................       21       60       60       60       61       60       60       60       58       54
    Estimated Outlays.........................................       17       49       60       60       60       59       59       59       58       54
Title VI--Rural Development:
    Estimated Authorization Level.............................       30      158      158      158      158      158      158      158      158      158
    Estimated Outlays.........................................        1       14       59      112      135      149      158      158      158      158
Title VII--Research and Related Items:
    Estimated Authorization Level.............................       15    2,858    2,865    2,872    2,928    2,935    2,942    2,949    2,957    2,964
    Estimated Outlays.........................................        9    1,445    2,276    2,842    2,894    2,919    2,936    2,943    2,950    2,958
Title VIII--Forestry Initiatives:
    Estimated Authorization Level.............................       50      100      100      100      101      101      101      101      101      101
    Estimated Outlays.........................................        7       40       74       95      101      101      101      101      101      101
Title IX--Miscellaneous Provisions:
    Estimated Authorization Level.............................       65       65       65       65       65       65       65       65       65       65
    Estimated Outlays.........................................       47       65       65       65       65       65       65       65       65       65
Total Changes:
    Estimated Authorization Level.............................      196    4,423    4,451    4,480    4,560    4,588    4,617    4,649    4,678    4,707
    Estimated Outlays.........................................       90    2,291    3,566    4,292    4,406    4,478    4,528    4,556    4,586    4,613
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Title I would not affect discretionary spending.

    Congressional Hunger Fellowship Trust Fund. Subtitle C 
would authorize $18 million to establish a trust fund for a 
Congressional hunger fellowship program. Public Law 106-387 
appropriated $2 million in 2001 for Congressional hunger center 
fellowships. Only returns on investments of the trust fund 
would be used to fund the fellowships and the operation of the 
program. Assuming appropriation of the authorized amount, CBO 
estimates a net increase in spending of $1 million each year 
beginning in fiscal year 2003. The gross appropriation of $18 
million would be offset by an intragovernmental transfer of the 
same amount to establish the trust fund. Therefore, the only 
cost would be from spending the returns on the investments of 
the fund.
    Title V: Credit Programs. This title would make several 
amendments to the programs administered by the Farm Service 
Agency that extend credit to producers. Assuming appropriation 
of the necessary amounts, CBO estimates that implementing these 
provisions would cost about $246 million over the 2002-2006 
period, and $535 million over the 2002-2011 period.
    Changes to Credit Provisions. This title includes 
provisions that would limit eligibility for direct ownership 
and operating loans after 2006 to socially disadvantaged and 
beginning farmers, ease restrictions on lending to borrowers 
with debt forgiveness, and extend until 2011 an existing 
interest buy-down program on guaranteed operating loans. 
Assuming appropriation of the necessary amounts, CBO estimates 
that implementing these provisions would cost about $495 
million over the 2002-2011 period. The reauthorization of the 
interest buy-down program accounts for most of the estimated 
cost.
    Changes to Emergency Loan Programs. The bill also would 
expand eligibility for the emergency loan program to allow 
loans to producers with losses caused by increased energy 
costs, or quarantines, and it would allow loans to horse 
breeders with losses resulting from mare reproductive loss 
syndrome. Assuming appropriation of the necessary amounts and 
based on information from USDA, CBO estimates these emergency 
loan provisions would cost about $40 million over the 2002-2011 
period.
    Title VI: Rural Development. This title would authorize the 
appropriation of funds for various rural development programs; 
including Rural Business Opportunity Grants, Rural Cooperative 
Development Grants, and water system grants for rural areas of 
Alaska and for individuals with low or moderate income. 
Assuming appropriation of the specified amounts, CBO estimates 
these provisions would cost $320 million over the 2002-2006 
period, and $1.1 billion over the 2002-2011 period.
    Title VII: Research and Related Matters. This title would 
reauthorize discretionary research programs administered by 
USDA through 2001. The authority for most of these research 
programs expires in 2002. Assuming appropriation of the 
necessary amounts and based on 2001 appropriations for some 
programs, we estimate that implementing the bill would cost 
$9.5 billion over the 2002-2006 period, and $24 billion over 
the next 10 years.
    Title VIII: Forestry Initiatives. This title would 
reauthorize certain existing programs related to renewable 
resources and international forestry and authorize 
appropriations for a new program to protect local communities 
from forest fires. Based on information from USDA, we estimate 
that these programs would cost $317 million over the 2002-2006 
period and $822 million over the 2002-2011 period, assuming 
appropriation of the necessary amounts.
    Title IX: Miscellaneous Provisions. This title would 
authorize the appropriation of $50 million per year to 
establish a grant program to offset the costs of purchasing 
hazardous brush and other fuels from forest lands for use by 
biomass-to-energy facilities. The bill also would authorize an 
increase of $15 million a year in funds for the outreach for 
socially disadvantaged farmers. Assuming appropriation of the 
authorized amounts, the provisions of this title would cost 
$308 million over the 2002-2006 period and $636 million over 
the 2002-2011 period.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays in that are subject to pay-as-you-go 
procedures are shown in Table 4. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

                                         TABLE 4. ESTIMATED EFFECTS OF H.R. 2646 ON DIRECT SPENDING AND RECEIPTS
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, in millions of dollars
                                                      --------------------------------------------------------------------------------------------------
                                                         2001     2002     2003     2004     2005     2006     2007     2008     2009     2010     2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays...................................        0    1,906    6,504    8,345    8,277    8,371    8,189    7,814    7,203    6,570    6,346
Changes in receipts..................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Not applicable.

    Estimated impact on State, local, and tribal governments: 
This bill contains no intergovernmental mandates as defined in 
UMRA. State, local, and tribal governments receive funds 
through some of the programs reauthorized by this bill and 
probably would receive additional funds from newly authorized 
programs. Some of these programs--both new and existing--
include matching requirements and other conditions of 
assistance. Any costs these governments might incur to comply 
with conditions of this assistance would be voluntary.
    Estimated impact on the private sector: H.R. 2646 would 
impose private-sector mandates as defined in UMRA. The bill 
would impose new assessments on importers of dairy products and 
U.S. producers of caneberries. The bill also would allow the 
Secretary of Agriculture to expand the reporting requirement 
now placed on manufacturers and persons who store dairy 
products. Based on information provided by industry sources and 
USDA, CBO estimates that the direct costs of those private-
sector mandates would fall below the annual threshold for 
private-sector mandates established in UMRA ($113 million in 
2001, adjusted annually for inflation).
    The bill would impose a mandate on importers of dairy 
products by expanding a dairy promotion assessment to cover 
imports of dairy products. Under current law, USDA collects an 
assessment from domestic dairy producers to fund activities of 
the National Dairy Promotion and Research Board. The bill would 
require the assessment rate on imported dairy products to be 
determined in the same manner as the assessment rate per 
hundredweight or the equivalent of domestic milk. Importers 
would be required to pay the assessment to the U.S. Customs 
Service at the time the products enter the country. The funds 
collected from importers of dairy products would be combined 
with collections from domestic producers. Using an assessment 
rate equivalent to the current rate paid by domestic producers 
of dairy products, CBO estimates the cost of the assessment on 
importers would total about $11 million annually.
    H.R. 2646 also would impose a private-sector mandate on 
U.S. producers of caneberries who would be required to comply 
with a marketing order to be issued by USDA. Caneberries are 
berries that grow on a cane, such as raspberries, blackberries, 
marionberries, and boysenberries. Federal marketing orders are 
typically funded by an assessment on the production of a 
particular good. Based on recent data on the national 
production of caneberries, and the assessment rates of existing 
state marketing orders, CBO estimates the cost of an assessment 
on U.S. producers of caneberries would be about $0.5 million 
annually.
    In addition, the bill would amend the Agriculture Marketing 
Act to allow the Secretary of Agriculture to expand the 
reporting requirement now placed on manufacturers and persons 
who store dairy products. That is, the bill would give the 
Secretary the authority to expand the list of products for 
which producers must report on inventories and make records 
available to the government. The provisions would impose a new 
mandate if the Secretary used the authority to make additional 
products subject to current requirements. USDA could not 
indicate which products, if any, would be added to the list. 
Nonetheless, since producers already keep extensive records on 
inventories at storage facilities, the incremental cost of 
complying with such requirements would be small.
    Estimate prepared by Federal Costs Jim Langley, Dave Hull, 
Greg Hitz, Lanette Walker, Megan Carroll, and Mark Hadley; and 
Valerie Baxter Womer. Impact on State, local, and Tribal 
Governments: Marjorie Miller. Impact on the Private Sector: 
Lauren Marks, Cecil McPherson, and Mickey Paggi; and Ralph 
Smith.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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):

              SECTION 15 OF THE AGRICULTURAL MARKETING ACT

                        MISCELLANEOUS PROVISIONS

  Sec. 15. (a) * * *

           *       *       *       *       *       *       *

  [(d) That the inclusion in any governmental report, bulletin, 
or other such publication hereafter issued or published of any 
prediction with respect to cotton prices is hereby prohibited. 
Any officer or employee of the United States who authorizes or 
is responsible for the inclusion in any such report, bulletin, 
or other publication of any such prediction, or who knowingly 
causes the issuance or publication of any such report, 
bulletin, or other publication containing any such prediction, 
shall, upon conviction thereof, be fined not less than $500 or 
more than $5,000, or imprisoned for not more than five years, 
or both: Provided, That this subdivision shall not apply to the 
members of the board when engaged in the performance of their 
duties herein provided.]

           *       *       *       *       *       *       *

                              ----------                              

FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

           *       *       *       *       *       *       *

TITLE I--AGRICULTURAL MARKET TRANSITION ACT

           *       *       *       *       *       *       *

                     Subtitle D--Other Commodities

CHAPTER 1--DAIRY

           *       *       *       *       *       *       *

[SEC. 142. RECOURSE LOAN PROGRAM FOR COMMERCIAL PROCESSORS OF DAIRY 
                    PRODUCTS.

  [(a) Recourse Loans Available.--Under such reasonable terms 
and conditions as the Secretary may prescribe, the Secretary 
shall make recourse loans available to commercial processors of 
eligible dairy products to assist the processors to manage 
inventories of eligible dairy products and assure a greater 
degree of price stability for the dairy industry during the 
year. 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 a milk equivalent value of $9.90 per hundredweight of 
milk containing 3.67 percent butterfat. The rate of interest 
charged participants under this section shall not be less than 
the rate of interest charged the Commodity Credit Corporation 
by the United States Treasury.
  [(c) Period of Loan.--The original term of a recourse loan 
made under this section may not extend beyond the end of the 
fiscal year in which the loan is made. At the end of the fiscal 
year, the Secretary may extend the loan for an additional 
period not to exceed the end of the next fiscal year.
  [(d) Definition of Eligible Dairy Products.--In this section, 
the term ``eligible dairy products'' means cheddar cheese, 
butter, and nonfat dry milk.
  [(e) Effective Date.--This section shall be effective 
beginning January 1, 2002.]

           *       *       *       *       *       *       *

                      CHAPTER 2--PEANUTS AND SUGAR

[SEC. 155. 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 162.
          [(5) Offers from handlers.--If a producer markets a 
        quota peanut crop, meeting quality requirements for 
        domestic edible use, through the marketing association 
        loan for two consecutive marketing years and the 
        Secretary determines that a handler provided the 
        producer with a written offer, upon delivery, for the 
        purchase of the quota peanut crops at a price equal to 
        or in excess of the quota support price, the producer 
        shall be ineligible for quota price support for the 
        next marketing year. The Secretary shall establish the 
        method by which a producer may appeal a determination 
        under this paragraph regarding ineligibility for quota 
        price support.
  [(b) Additional Peanuts.--
          [(1) In general.--Subject to paragraph (2), 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) Limitation.--The Secretary shall establish 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.
          [(3) 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.
                  [(B) Eligibility to participate in new mexico 
                pools.--
                          [(i) In general.--Except as provided 
                        in clause (ii), in the case of the 1996 
                        and subsequent crops, Valencia peanuts 
                        not physically produced in the State of 
                        New Mexico shall not be eligible to 
                        participate in the pools of the State.
                          [(ii) Exception.--A producer of 
                        Valencia peanuts may enter Valencia 
                        peanuts that are produced in Texas into 
                        the pools of New Mexico in a quantity 
                        not greater than the average annual 
                        quantity of the peanuts that the 
                        producer entered into the New Mexico 
                        pools for the 1990 through 1995 crops.
                  [(C) Types of peanuts.--Bright hull and dark 
                hull Valencia peanuts shall be considered as 
                separate types for the purpose of establishing 
                the pools.
                  [(D) 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) 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 edible export use.
          [(3) Offset within area.--Further losses in an area 
        quota pool shall be offset by any gains or profits from 
        additional peanuts (other than separate type pools 
        established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) owned or controlled by 
        the Commodity Credit Corporation in that area and sold 
        for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply 
        to profits or gains from a farm with 1 acre or less of 
        peanut production.
          [(4) First 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 
        paragraph 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.
          [(6) Offset generally.--If losses in an area quota 
        pool have not been entirely offset under the preceding 
        paragraphs, further losses shall be offset by any gains 
        or profits from additional peanuts (other than separate 
        type pools established under subsection (c)(2)(A) for 
        Valencia peanuts produced in New Mexico) owned or 
        controlled by the Commodity Credit Corporation and sold 
        for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply 
        to profits or gains from a farm with 1 acre or less of 
        peanut production.
          [(7) Second use of marketing assessments.--The 
        Secretary shall use funds collected under subsection 
        (g) and 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 
        paragraph that the Secretary determines are not 
        required to cover losses in area quota pools.
          [(8) 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 for 
        producers 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 in the production area covered by the 
        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, the producer portion 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 (g) shall be effective 
only for the 1996 through 2002 crops of peanuts.
  [(i) Poundage 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'';
                          [(v) in subsection (b)(1), by adding 
                        at the end the following:
                  [``(D) Certain farms ineligible for quota.--
                Effective beginning with the 1998 crop, the 
                Secretary shall not establish a farm poundage 
                quota under subparagraph (A) for a farm owned 
                or controlled by--
                          [``(i) a municipality, airport 
                        authority, school, college, refuge, or 
                        other public entity (other than a 
                        university used for research purposes); 
                        or
                          [``(ii) a person who is not a 
                        producer and resides in another 
                        State.'';
                          [(vi) in subsection (b)(2), 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.''; and
                          [(vii) 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) Elimination of quota floor.--Section 358-1(a)(1) 
        of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1358-1(a)(1)) is amended by striking the second 
        sentence.
          [(3) Temporary quota allocation.--Section 358-1 of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-
        1) is amended--
                  [(A) in subsection (a)(1), by striking 
                ``domestic edible, seed,'' and inserting 
                ``domestic edible use (except seed)''; and
                  [(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 and determined 
                        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).''.
          [(4) Undermarketings.--Part VI of subtitle B of title 
        III of the Agricultural Adjustment Act of 1938 is 
        amended--
                  [(A) in section 358-1(b) (7 U.S.C. 1358-
                1(b))--
                          [(i) in paragraph (1)(B), by striking 
                        ``includ-
                        ing--'' 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 (2), by striking 
                        ``(including any applicable under 
                        marketings)''; and
                          [(ii) in paragraph (3), by striking 
                        ``(including any applicable 
                        undermarketings)''.
          [(5) Disaster transfers.--Section 358-1(b) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-
        1(b)), as amended by paragraph (4)(A)(iii), is 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.''.
          [(6) Sale or lease.--Section 358b(a) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b(a)) 
        is amended--
                  [(A) by striking paragraph (1) and inserting 
                the following:
          [``(1) Sale and lease authority.--
                  [``(A) Sale or lease within same state.--
                Subject to subparagraph (B) and such terms and 
                conditions as the Secretary may prescribe, the 
                owner, or operator with the permission of the 
                owner, of a farm in a State for which a farm 
                poundage quota has been established may sell or 
                lease all or any part of the poundage quota to 
                any other owner or operator of a farm within 
                the same State for transfer to the farm. 
                However, any such lease of poundage quota may 
                be entered into in the fall or after the normal 
                planting season--
                          [``(i) if not less than 90 percent of 
                        the basic quota (the farm quota 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
                          [``(ii) under such terms and 
                        conditions as the Secretary may by 
                        regulation prescribe.
                ``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.
                  [``(B) Percentage limitations on spring 
                transfers.--Spring transfers under subparagraph 
                (A) by sale or lease of a quota for farms in a 
                county to any owner or operator of a farm 
                outside the county within the same State shall 
                not exceed the applicable percentage specified 
                in this subparagraph of the quotas of all farms 
                in the originating county (as of January 1, 
                1996) for the crop year in which the transfer 
                is made, plus the total amount of quotas 
                eligible for transfer from the originating 
                county in the preceding crop year that were not 
                transferred in that year or that were 
                transferred through an expired lease. However, 
                not more than an aggregate of 40 percent of the 
                total poundage quota within a county (as of 
                January 1, 1996) may be transferred outside of 
                the county. Cumulative unexpired transfers 
                outside of a county may not exceed for a crop 
                year the following:
                          [``(i) For the 1996 crop, 15 percent.
                          [``(ii) For the 1997 crop, 25 
                        percent.
                          [``(iii) For the 1998 crop, 30 
                        percent.
                          [``(iv) For the 1999 crop, 35 
                        percent.
                          [``(v) For the 2000 and subsequent 
                        crops, not more than an aggregate of 40 
                        percent of the total poundage quota 
                        within the county as of January 1, 
                        1996.
                  [``(C) Clarification regarding fall 
                transfers.--The limitation in subparagraph (B) 
                does not apply to 1-year fall transfers, which 
                in all cases may be made to any farm in the 
                same State.
                  [``(D) Effect of transfer.--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.''; and
                  [(B) by adding at the end the following:
          [``(4) Transfers in counties with small quotas.--
        Notwithstanding paragraphs (1) and (2), in the case of 
        any county in a State for which the poundage quota 
        allocated to the county was less than 100,000 pounds 
        for the preceding year's crop, all or any part of a 
        farm poundage quota may be transferred by sale or lease 
        or otherwise from a farm in the county to a farm in 
        another county in the same State.''.]

SEC. 156. SUGAR PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (c) [Reduction in Loan Rates] Loan Rate Adjustments.--
          (1) [Reduction required] Possible reduction.--The 
        Secretary [shall] may 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 other major sugar growing, producing, and 
        exporting countries in the aggregate exceed the 
        commitments made as part of the Agreement on 
        Agriculture.

           *       *       *       *       *       *       *

  (e) Loan Type; Processor Assurances.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Prevention of onerous notification 
        requirements.--The Secretary may not impose or enforce 
        any prenotification or similar administrative 
        requirement that has the effect of preventing a 
        processor from choosing to forfeit the loan collateral 
        upon the maturity of the loan.
  [(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.]
  (f) Loans for In-Process Sugar.--
          (1) Availability; rate.--The Secretary shall make 
        nonrecourse loans available to processors of 
        domestically grown sugarcane and sugar beets for in-
        process sugars and syrups derived from such crops. The 
        loan rate shall be equal to 80 percent of the loan rate 
        applicable to raw cane sugar or refined beet sugar, 
        depending on the source material for the in-process 
        sugars and syrups.
          (2) Further processing upon forfeiture.--As a 
        condition on the forfeiture of in-process sugars and 
        syrups serving as collateral for a loan under paragraph 
        (1), the processor shall, within such reasonable time 
        period as the Secretary may prescribe and at no cost to 
        the Commodity Credit Corporation, convert the in-
        process sugars and syrups into raw cane sugar or 
        refined beet sugar of acceptable grade and quality for 
        sugars eligible for loans under subsection (a) or (b). 
        Once the in-process sugars and syrups are fully 
        processed into raw cane sugar or refined beet sugar, 
        the processor shall transfer the sugar to the 
        Corporation, which shall make a payment to the 
        processor in an amount equal to the difference between 
        the loan rate for raw cane sugar or refined beet sugar, 
        whichever applies, and the loan rate the processor 
        received under paragraph (1).
          (3) Loan conversion.--If the processor does not 
        forfeit the collateral as described in paragraph (2), 
        but instead further processes the in-process sugars and 
        syrups into raw cane sugar or refined beet sugar and 
        repays the loan on the in-process sugars and syrups, 
        the processor may then obtain a loan under subsection 
        (a) or (b) on the raw cane sugar or refined beet sugar, 
        as appropriate.
          (4) Definition.--In this subsection the term ``in-
        process sugars and syrups'' does not include raw sugar, 
        liquid sugar, invert sugar, invert syrup, or other 
        finished products that are otherwise eligible for loans 
        under subsection (a) or (b).

           *       *       *       *       *       *       *

  (h) Information Reporting.--
          (1) * * *
          (2) Duty of producers to report.--
                  (A) Proportionate share states.--The 
                Secretary shall require a producer of sugarcane 
                located in a State (other than Puerto Rico) in 
                which there are in excess of 250 sugarcane 
                producers to report, in the manner prescribed 
                by the Secretary, the producer's sugarcane 
                yields and acres planted to sugarcane.
                  (B) Other states.--The Secretary may require 
                producers of sugarcane or sugar beets not 
                covered by paragraph (1) to report, in the 
                manner prescribed by the Secretary, each 
                producer's sugarcane or sugar beet yields and 
                acres planted to sugarcane or sugar beets, 
                respectively.
          (3) Duty of importers to report.--The Secretary shall 
        require an importer of sugars, syrups or molasses to be 
        used for human consumption or to be used for the 
        extraction of sugar for human consumption, except such 
        sugars, syrups, or molasses that are within the 
        quantities of tariff-rate quotas that are at the lower 
        rate of duties, to report, in the manner prescribed by 
        the Secretary, the quantities of such products imported 
        and the sugar content or equivalent of such products.
          [(2)] (4) 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)] (5) Monthly reports.--Taking into consideration 
        the information received under [paragraph (1)] this 
        subsection, the Secretary shall publish on a monthly 
        basis composite data on production, imports, 
        distribution, and stock levels of sugar.
  (i) Crops.--This section [(other than subsection (f))] shall 
be effective only for the 1996 through [2002] 2011 crops of 
sugar beets and sugarcane.
  (j) Avoiding Forfeitures; Corporation Inventory 
Disposition.--
          (1) No cost.--To the maximum extent practicable, the 
        Secretary shall operate the sugar program established 
        under this section at no cost to the Federal Government 
        by avoiding the forfeiture of sugar to the Commodity 
        Credit Corporation.
          (2) Inventory disposition.--In support of the 
        objective specified in paragraph (1), the Commodity 
        Credit Corporation may accept bids for commodities in 
        the inventory of the Corporation from (or otherwise 
        make available such commodities, on appropriate terms 
        and conditions, to) processors of sugarcane and 
        processors of sugar beets (when the processors are 
        acting in conjunction with the producers of the 
        sugarcane or sugar beets processed by such processors) 
        in return for the reduction of production of raw cane 
        sugar or refined beet sugar, as appropriate. The 
        authority provided under this paragraph is in addition 
        to any authority of the Corporation under any other 
        law.

           *       *       *       *       *       *       *

Subtitle E--Administration

           *       *       *       *       *       *       *

SEC. 162. ADJUSTMENTS OF LOANS.

  (a) * * *
  (b) Manner of Adjustment.--The adjustments under the 
authority of this section 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 title] this title and title I 
of the Farm Security Act of 2001.

           *       *       *       *       *       *       *

SEC. 163. 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. 
For purposes of this section, raw cane sugar, refined beet 
sugar, and in process sugar eligible for a loan under section 
156 shall not be considered an agricultural commodity.

SEC. 164. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

  (a) In General.--Except as provided in subsection (b), no 
producer shall be personally liable for any deficiency arising 
from the sale of the collateral securing any nonrecourse loan 
made under [this title] this title and title I of the Farm 
Security Act of 2001 unless the loan was obtained through a 
fraudulent representation by the producer.
  (b) Limitations.--Subsection (a) shall not prevent the 
Commodity Credit Corporation or the Secretary from requiring a 
producer to assume liability for--
          (1) a deficiency in the grade, quality, or quantity 
        of a commodity stored on a farm or delivered by the 
        producer;
          (2) a failure to properly care for and preserve a 
        commodity; or
          (3) a failure or refusal to deliver a commodity in 
        accordance with a program established under [this 
        title] this title and title I of the Farm Security Act 
        of 2001.
  (c) Acquisition of Collateral.--In the case of a nonrecourse 
loan made under this title or the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714 et seq.), if the Commodity Credit 
Corporation acquires title to the unredeemed collateral, the 
Corporation shall be under no obligation to pay for any market 
value that the collateral may have in excess of the loan 
indebtedness.
  (d) 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.

           *       *       *       *       *       *       *

SEC. 166. COMMODITY CERTIFICATES.

  (a) In General.--In making in-kind payments under [subtitle 
C] subtitle C of this title and title I of the Farm Security 
Act of 2001, the Commodity Credit Corporation may--
          (1) * * *

           *       *       *       *       *       *       *

  (c) Administration.--
          (1) Form.--At the option of a producer, the Commodity 
        Credit Corporation shall make negotiable certificates 
        authorized under subsection (b)(3) available to the 
        producer, in the form of program payments or by sale, 
        in a manner that the Corporation determines will 
        encourage the orderly marketing of commodities pledged 
        as collateral for loans made to producers under 
        [subtitle C] subtitle C of this title and title I of 
        the Farm Security Act of 2001.

           *       *       *       *       *       *       *

             Subtitle F--Permanent Price Support Authority

SEC. 171. SUSPENSION AND REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY.

  (a) Agricultural Adjustment Act of 1938.--
          (1) Suspensions.--The following provisions of the 
        Agricultural Adjustment Act of 1938 shall not be 
        applicable to the 1996 through [2002] 2011 crops of 
        loan commodities, peanuts, and sugar and shall not be 
        applicable to milk during the period beginning on the 
        date of enactment of this title and ending on December 
        31, [2002] 2011:
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) Part VII of subtitle B of title III (7 
                U.S.C. 1359aa-1359jj), but only with respect to 
                sugar marketings through fiscal year 2002.
  (b) Agricultural Act of 1949.--
          (1) Suspensions.--The following provisions of the 
        Agricultural Act of 1949 shall not be applicable to the 
        1996 through [2002] 2011 crops of loan commodities, 
        peanuts, and sugar and shall not be applicable to milk 
        during the period beginning on the date of enactment of 
        this title and ending on December 31, [2002] 2011:
                  (A) * * *

           *       *       *       *       *       *       *

  (c) Suspension of Certain Quota Provisions.--The joint 
resolution entitled ``A joint resolution relating to corn and 
wheat marketing quotas under the Agricultural Adjustment Act of 
1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 
1340), shall not be applicable to the crops of wheat planted 
for harvest in the calendar years 1996 through [2002] 2011.

           *       *       *       *       *       *       *

TITLE III--CONSERVATION

           *       *       *       *       *       *       *

    [Subtitle F--National Natural Resources Conservation Foundation

[SEC. 351.SHORT TITLE.

  [This subtitle may be cited as the ``National Natural 
Resources Conservation Foundation Act''.

[SEC. 352. DEFINITIONS.

  [In this subtitle (unless the context otherwise requires):
          [(1) Board.--The term ``Board'' means the Board of 
        Trustees established under section 354.
          [(2) Department.--The term ``Department'' means the 
        Department of Agriculture.
          [(3) Foundation.--The term ``Foundation'' means the 
        National Natural Resources Conservation Foundation 
        established by section 353(a).
          [(4) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.

[SEC. 353. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

  [(a) Establishment.--A National Natural Resources 
Conservation Foundation is established as a charitable and 
nonprofit corporation for charitable, scientific, and 
educational purposes specified in subsection (b). The 
Foundation is not an agency or instrumentality of the United 
States.
  [(b) Duties.--The Foundation shall--
          [(1) promote innovative solutions to the problems 
        associated with the conservation of natural resources 
        on private lands, particularly with respect to 
        agriculture and soil and water conservation;
          [(2) promote voluntary partnerships between 
        government and private interests in the conservation of 
        natural resources;
          [(3) conduct research and undertake educational 
        activities, conduct and support demonstration projects, 
        and make grants to State and local agencies and 
        nonprofit organizations;
          [(4) provide such other leadership and support as may 
        be necessary to address conservation challenges, such 
        as the prevention of excessive soil erosion, the 
        enhancement of soil and water quality, and the 
        protection of wetlands, wildlife habitat, and 
        strategically important farmland subject to urban 
        conversion and fragmentation;
          [(5) encourage, accept, and administer private gifts 
        of money and real and personal property for the benefit 
        of, or in connection with, the conservation and related 
        activities and services of the Department, particularly 
        the Natural Resources Conservation Service;
          [(6) undertake, conduct, and encourage educational, 
        technical, and other assistance, and other activities, 
        that support the conservation and related programs 
        administered by the Department (other than activities 
        carried out on National Forest System lands), 
        particularly the Natural Resources Conservation 
        Service, except that the Foundation may not enforce or 
        administer a regulation of the Department; and
          [(7) raise private funds to promote the purposes of 
        the Foundation.
  [(c) Limitations and Conflicts of Interest.--
          [(1) Political activities.--The Foundation shall not 
        participate or intervene in a political campaign on 
        behalf of any candidate for public office.
          [(2) Conflicts of interest.--No director, officer, or 
        employee of the Foundation shall participate, directly 
        or indirectly, in the consideration or determination of 
        any question before the Foundation affecting--
                  [(A) the financial interests of the director, 
                officer, or employee; or
                  [(B) the interests of any corporation, 
                partnership, entity, organization, or other 
                person in which the director, officer, or 
                employee--
                          [(i) is an officer, director, or 
                        trustee; or
                          [(ii) has any direct or indirect 
                        financial interest.
          [(3) Legislation or government action or policy.--No 
        funds of the Foundation may be used in any manner for 
        the purpose of influencing legislation or government 
        action or policy.
          [(4) Litigation.--No funds of the Foundation may be 
        used to bring or join an action against the United 
        States.

[SEC. 354. COMPOSITION AND OPERATION.

  [(a) Composition.--The Foundation shall be administered by a 
Board of Trustees that shall consist of 9 voting members, each 
of whom shall be a United States citizen and not a Federal 
officer. The Board shall be composed of--
          [(1) individuals with expertise in agricultural 
        conservation policy matters;
          [(2) a representative of private sector organizations 
        with a demonstrable interest in natural resources 
        conservation;
          [(3) a representative of statewide conservation 
        organizations;
          [(4) a representative of soil and water conservation 
        districts;
          [(5) a representative of organizations outside the 
        Federal Government that are dedicated to natural 
        resources conservation education; and
          [(6) a farmer or rancher.
  [(b) Nongovernmental Employees.--Service as a member of the 
Board shall not constitute employment by, or the holding of, an 
office of the United States for the purposes of any Federal 
law.
  [(c) Membership.--
          [(1) Initial members.--The Secretary shall appoint 9 
        persons who meet the criteria established under 
        subsection (a) as the initial members of the Board and 
        designate 1 of the members as the initial chairperson 
        for a 2-year term.
          [(2) Terms of office.--
                  [(A) In general.--A member of the Board shall 
                serve for a term of 3 years, except that the 
                members appointed to the initial Board shall 
                serve, proportionately, for terms of 1, 2, and 
                3 years, as determined by the Secretary.
                  [(B) Limitation on terms.--No individual may 
                serve more than 2 consecutive 3-year terms as a 
                member of the Board.
          [(3) Subsequent members.--The initial members of the 
        Board shall adopt procedures in the constitution of the 
        Foundation for the nomination and selection of 
        subsequent members of the Board. The procedures shall 
        require that each member, at a minimum, meets the 
        criteria established under subsection (a) and shall 
        provide for the selection of an individual, who is not 
        a Federal officer or a member of the Board.
  [(d) Chairperson.--After the appointment of an initial 
chairperson under subsection (c)(1), each succeeding 
chairperson of the Board shall be elected by the members of the 
Board for a 2-year term.
  [(e) Vacancies.--A vacancy on the Board shall be filled by 
the Board not later than 60 days after the occurrence of the 
vacancy.
  [(f) Compensation.--A member of the Board shall receive no 
compensation from the Foundation for the service of the member 
on the Board.
  [(g) Travel Expenses.--While away from the home or regular 
place of business of a member of the Board in the performance 
of services for the Board, the member shall be allowed travel 
expenses paid by the Foundation, including per diem in lieu of 
subsistence, at the same rate as a person employed 
intermittently in the Government service is allowed under 
section 5703 of title 5, United States Code.

[SEC. 355. OFFICERS AND EMPLOYEES.

  [(a) In General.--The Board may--
          [(1) appoint, hire, and discharge the officers and 
        employees of the Foundation, other than appoint the 
        initial Executive Director of the Foundation;
          [(2) adopt a constitution and bylaws for the 
        Foundation that are consistent with the purposes of 
        this subtitle; and
          [(3) undertake any other activities that may be 
        necessary to carry out this subtitle.
  [(b) Officers and Employees.--
          [(1) Appointment and hiring.--An officer or employee 
        of the Foundation--
                  [(A) shall not, by virtue of the appointment 
                or employment of the officer or employee, be 
                considered a Federal employee for any purpose, 
                including the provisions of title 5, United 
                States Code, governing appointments in the 
                competitive service, except that such an 
                individual may participate in the Federal 
                employee retirement system as if the individual 
                were a Federal employee; and
                  [(B) may not be paid by the Foundation a 
                salary in excess of $125,000 per year.
          [(2) Executive director.--
                  [(A) Initial director.--The Secretary shall 
                appoint an individual to serve as the initial 
                Executive Director of the Foundation who shall 
                serve, at the direction of the Board, as the 
                chief operating officer of the Foundation.
                  [(B) Subsequent directors.--The Board shall 
                appoint each subsequent Executive Director of 
                the Foundation who shall serve, at the 
                direction of the Board, as the chief operating 
                officer of the Foundation.
                  [(C) Qualifications.--The Executive Director 
                shall be knowledgeable and experienced in 
                matters relating to natural resources 
                conservation.

[SEC. 356. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

  [(a) In General.--The Foundation--
          [(1) may conduct business throughout the United 
        States and the territories and possessions of the 
        United States; and
          [(2) shall at all times maintain a designated agent 
        who is authorized to accept service of process for the 
        Foundation, so that the serving of notice to, or 
        service of process on, the agent, or mailed to the 
        business address of the agent, shall be considered as 
        service on or notice to the Foundation.
  [(b) Seal.--The Foundation shall have an official seal 
selected by the Board that shall be judicially noticed.
  [(c) Powers.--To carry out the purposes of the Foundation 
under section 353(b), the Foundation shall have, in addition to 
the powers otherwise provided under this subtitle, the usual 
powers of a corporation, including the power--
          [(1) to accept, receive, solicit, hold, administer, 
        and use any gift, devise, or bequest, either absolutely 
        or in trust, of real or personal property or any income 
        from, or other interest in, the gift, devise, or 
        bequest;
          [(2) to acquire by purchase or exchange any real or 
        personal property or interest in property, except that 
        funds provided under section 360 may not be used to 
        purchase an interest in real property;
          [(3) unless otherwise required by instrument of 
        transfer, to sell, donate, lease, invest, reinvest, 
        retain, or otherwise dispose of any property or income 
        from property;
          [(4) to borrow money from private sources and issue 
        bonds, debentures, or other debt instruments, subject 
        to section 359, except that the aggregate amount of the 
        borrowing and debt instruments outstanding at any time 
        may not exceed $1,000,000;
          [(5) to sue and be sued, and complain and defend 
        itself, in any court of competent jurisdiction, except 
        that a member of the Board shall not be personally 
        liable for an action in the performance of services for 
        the Board, except for gross negligence;
          [(6) to enter into a contract or other agreement with 
        an agency of State or local government, educational 
        institution, or other private organization or person 
        and to make such payments as may be necessary to carry 
        out the functions of the Foundation; and
          [(7) to do any and all acts that are necessary to 
        carry out the purposes of the Foundation.
  [(d) Interests in Property.--
          [(1) Interests in real property.--The Foundation may 
        acquire, hold, and dispose of lands, waters, or other 
        interests in real property by donation, gift, devise, 
        purchase, or exchange. An interest in real property 
        shall be treated, among other things, as including an 
        easement or other right for the preservation, 
        conservation, protection, or enhancement of 
        agricultural, natural, scenic, historic, scientific, 
        educational, inspirational, or recreational resources.
          [(2) Gifts.--A gift, devise, or bequest may be 
        accepted by the Foundation even though the gift, 
        devise, or bequest is encumbered, restricted, or 
        subject to a beneficial interest of a private person if 
        any current or future interest in the gift, devise, or 
        bequest is for the benefit of the Foundation.

[SEC. 357. ADMINISTRATIVE SERVICES AND SUPPORT.

  [For each of fiscal years 1996 through 1998, the Secretary 
may provide, without reimbursement, personnel, facilities, and 
other administrative services of the Department to the 
Foundation.

[SEC. 358. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUITABLE 
                    RELIEF.

  [(a) Audits.--
          [(1) In general.--The accounts of the Foundation 
        shall be audited in accordance with Public Law 88-504 
        (36 U.S.C. 1101 et seq.), including an audit of 
        lobbying and litigation activities carried out by the 
        Foundation.
  [(b) Relief With Respect to Certain Foundation Acts or 
Failure To Act.--The Attorney General may petition in the 
United States District Court for the District of Columbia for 
such equitable relief as may be necessary or appropriate, if 
the Foundation--
          [(1) engages in, or threatens to engage in, any act, 
        practice, or policy that is inconsistent with this 
        subtitle; or
          [(2) refuses, fails, neglects, or threatens to 
        refuse, fail, or neglect, to discharge the obligations 
        of the Foundation under this subtitle.

[SEC. 359. RELEASE FROM LIABILITY.

  [(a) In General.--The United States shall not be liable for 
any debt, default, act, or omission of the Foundation. The full 
faith and credit of the United States shall not extend to the 
Foundation.
  [(b) Statement.--An obligation issued by the Foundation, and 
a document offering an obligation, shall include a prominent 
statement that the obligation is not directly or indirectly 
guaranteed, in whole or in part, by the United States (or an 
agency or instrumentality of the United States).

[SEC. 360. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to the Department to 
be made available to the Foundation $1,000,000 for each of 
fiscal years 1997 through 1999 to initially establish and carry 
out activities of the Foundation.]

           *       *       *       *       *       *       *

Subtitle H--Miscellaneous Conservation Provisions

           *       *       *       *       *       *       *

SEC. 387. WILDLIFE HABITAT INCENTIVES PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Funding.--To carry out this section, a total of 
$50,000,000 shall be made available for fiscal years 1996 
through 2002 from funds made available to carry out subchapter 
B of chapter 1 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.).]
  (c) Funding.--To carry out this section, there shall be made 
available $25,000,000 for each of fiscal years 2002 through 
2011, from funds made available from the Commodity Credit 
Corporation.

SEC. 388. FARMLAND PROTECTION PROGRAM.

  (a) In General.--The Secretary of Agriculture shall establish 
and carry out a farmland protection program under which the 
Secretary shall purchase conservation easements or other 
interests in not less than 170,000, nor more than 340,000, 
acres of land with prime, unique, or other productive soil, or 
agricultural land that contains historic or archeological 
resources, that is subject to a pending offer from a State or 
local government for the purpose of protecting topsoil by 
limiting nonagricultural uses of the land.

           *       *       *       *       *       *       *

  [(c) Funding.--The Secretary shall use not more than 
$35,000,000 of the funds of the Commodity Credit Corporation to 
carry out this section.]
  (c) Funding.--The Secretary shall use not more than 
$50,000,000 of the funds of the Commodity Credit Corporation in 
each of fiscal years 2002 through 2011 to carry out this 
section.

           *       *       *       *       *       *       *

                              ----------                              

                       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, [2002] 
2011, 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.

           *       *       *       *       *       *       *

                 TITLE X--GENERAL COMMODITY PROVISIONS

             Subtitle A--Miscellaneous Commodity Provisions

                          PAYMENT LIMITATIONS

  Sec. 1001. Notwithstanding any other provision of law:
          (1) Limitation on [payments under production 
        flexibility contracts] fixed, decoupled payments.--The 
        total amount of [contract payments made under the 
        Agricultural Market Transition Act to a person under 1 
        or more production flexibility contracts] fixed, 
        decoupled payments made to a person during any fiscal 
        year may not exceed $[4] 50,000.
          (2) Limitation on marketing loan gains and loan 
        deficiency payments.--The total amount of the [payments 
        specified in paragraph (3) that a person shall be 
        entitled to receive under the Agricultural Market 
        Transition Act for 1 or more contract commodities and 
        oilseeds] following payments that a person shall be 
        entitled to receive during any crop year may not exceed 
        $[75] 150,000[.]
          [(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 under 
                [section 131 of the Agricultural Market 
                Transition Act for a crop of any loan commodity 
                at a lower level than the original loan rate 
                established for the loan commodity under 
                section 132] section 121 of the Farm Security 
                Act of 2001 for a crop of any covered commodity 
                at a lower level than the original loan rate 
                established for the commodity under section 122 
                of the Act.
                  (B) Any loan deficiency payment received for 
                a loan commodity under [section 135] section 
                125 of the Act.
          (3) Limitation on counter-cyclical payments.--The 
        total amount of counter-cyclical payments that a person 
        may receive during any crop year shall not exceed the 
        amount specified in paragraph (2), as in effect on the 
        day before the date of the enactment of the Farm 
        Security Act of 2001.
          [(4) Definitions.--In this title, the terms 
        ``contract commodity'', ``contract payment'', ``loan 
        commodity'', ``oilseed'', and ``production flexibility 
        contract'' have the meaning given those terms in 
        section 102 of the Agricultural Market Transition Act.]
          (4) Definitions.--In this title, the terms ``covered 
        commodity'', ``counter-cyclical payment'', and ``fixed, 
        decoupled payment'' have the meaning given those terms 
        in section 100 of the Farm Security Act of 2001.

           *       *       *       *       *       *       *

TITLE XI--TRADE

           *       *       *       *       *       *       *

     Subtitle A--Public Law 480 and Use of Surplus Commodities in 
International Programs

           *       *       *       *       *       *       *

  Sec. 1110. (a) * * *

           *       *       *       *       *       *       *

  (e)(1) * * *
  (2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation may use funds appropriated to carry out 
title I of the Agricultural Trade Development and Assistance 
Act of 1954 in carrying out this section with respect to 
commodities made available under that Act, and subsection (g) 
does not apply to such commodities furnished on a grant basis 
or on credit terms under title I of the Agricultural Trade 
Development Act of 1954.
  (f)(1) * * *

           *       *       *       *       *       *       *

  (3) No funds of the Commodity Credit Corporation in excess of 
[$30,000,000] $35,000,000 (or, in the case of fiscal year 1999, 
$35,000,000) (exclusive of the cost of commodities) may be used 
for each of fiscal years 1996 through [2002] 2011 to carry out 
this section with respect to commodities made available under 
section 416(b) of the Agricultural Act of 1949 unless 
authorized in advance in appropriation Acts.

           *       *       *       *       *       *       *

  (g) Not more than 500,000 metric tons of commodities may be 
furnished under this section in each of the fiscal years 1986 
through [2002] 2011.

           *       *       *       *       *       *       *

  (j) In carrying out this section, the President [may] is 
encouraged, on request and subject to the availability of 
commodities, to approve agreements that provide for commodities 
to be made available for distribution or sale by the recipient 
on a multiyear basis if the agreements otherwise meet the 
requirements of this section.
  (k) This section shall be effective during the period 
beginning October 1, 1985, and ending December 31, [2002] 2011.
  (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 1996 
through [2002] 2011, use in addition to any amounts or 
commodities otherwise made available under this section for 
such activities, not to exceed $10,000,000 (or, in the case of 
[fiscal year 1999] fiscal years 2002 through 2011, $12,000,000) 
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, and to provide technical assistance for monetization 
programs, to strengthen private sector agriculture in recipient 
countries.

           *       *       *       *       *       *       *

  (p) The Secretary is encouraged to finalize program 
agreements and resource requests for programs under this 
section before the beginning of the relevant fiscal year. By 
November 1 of the relevant fiscal year, the Secretary shall 
provide to the Committee on Agriculture of the House of 
Representatives, and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a list of approved programs, 
countries, and commodities, and the total amounts of funds 
approved for transportation and administrative costs, under 
this section.

           *       *       *       *       *       *       *

                        TITLE XII--CONSERVATION

                        Subtitle A--Definitions

                              DEFINITIONS

  Sec. 1201. (a) For purposes of subtitles A through E:
          [(1) The term ``agricultural commodity'' means--
                  [(A) any agricultural commodity planted and 
                produced in a State by annual tilling of the 
                soil, including tilling by one-trip planters; 
                or
                  [(B) sugarcane planted and produced in a 
                State.]
          (1) Agricultural commodity.--The term ``agricultural 
        commodity'' means any agricultural crop planted or 
        produced in a State.

           *       *       *       *       *       *       *

             Subtitle B--Highly Erodible Land Conservation

SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
                    CONSERVATION SYSTEMS.

  (a) * * *

           *       *       *       *       *       *       *

  [(e) Technical Assistance.--The Secretary shall, using 
available resources and consistent with the Secretary's other 
conservation responsibilities and objectives, provide technical 
assistance to a person throughout the development, revision, 
and application of the conservation plan and any conservation 
system of the person. At the request of the person, the 
Secretary may provide technical assistance regarding 
conservation measures and management practices for other lands 
of the person that do not contain highly erodible cropland.]
  (e) Technical Assistance.--A producer who is subject to this 
subtitle shall be eligible to receive technical assistance in 
accordance with section 1243(d) throughout the development, 
revision, and application of the conservation plan and any 
conservation system of the producer.

           *       *       *       *       *       *       *

                    Subtitle C--Wetland Conservation

SEC. 1221. PROGRAM INELIGIBILITY.

  (a) * * *
  (b) Ineligibility for Certain Loans and Payments.--If a 
person is determined to have committed a violation under 
subsection (a) during a crop year, the Secretary shall 
determine which of, and the amount of, the following loans and 
payments relating to any commodity produced during that crop 
year by such person for which the person shall be ineligible:
          (1) * * *

           *       *       *       *       *       *       *

SEC. 1222. DELINEATION OF WETLANDS; EXEMPTIONS.

  (a) * * *

           *       *       *       *       *       *       *

  [(k) Mitigation Banking Program.--Using authorities available 
to the Secretary, the Secretary may operate a pilot program for 
mitigation banking of wetlands to assist persons to increase 
the efficiency of agricultural operations while protecting 
wetland functions and values. Subsection (f)(2)(C) shall not 
apply to this subsection.]

           *       *       *       *       *       *       *

        Subtitle D--Agricultural Resources Conservation Program

     CHAPTER 1--ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM

                   [Subchapter A--General Provisions

[SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

  [(a) Establishment.--
          [(1) In general.--During the 1996 through 2002 
        calendar years, the Secretary shall establish an 
        environmental conservation acreage reserve program 
        (referred to in this section as ``ECARP'') to be 
        implemented through contracts and the acquisition of 
        easements to assist owners and operators of farms and 
        ranches to conserve and enhance soil, water, and 
        related natural resources, including grazing land, 
        wetland, and wildlife habitat.
          [(2) Means.--The Secretary shall carry out the ECARP 
        by--
                  [(A) providing for the long-term protection 
                of environmentally sensitive land; and
                  [(B) providing technical and financial 
                assistance to farmers and ranchers to--
                          [(i) improve the management and 
                        operation of the farms and ranches; and
                          [(ii) reconcile productivity and 
                        profitability with protection and 
                        enhancement of the environment.
          [(3) Programs.--The ECARP shall consist of--
                  [(A) the conservation reserve program 
                established under subchapter B;
                  [(B) the wetlands reserve program established 
                under subchapter C; and
                  [(C) the environmental quality incentives 
                program established under chapter 4.
  [(b) Administration.--
          [(1) In general.--In carrying out the ECARP, the 
        Secretary shall enter into contracts with owners and 
        operators and acquire interests in land through 
        easements from owners, as provided in this chapter and 
        chapter 4.
          [(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve or wetlands reserve program prior 
        to the date of enactment of this paragraph shall be 
        considered to be placed into the ECARP.
  [(c) Conservation Priority Areas.--
          [(1) Designation.--The Secretary may designate 
        watersheds, multistate areas, or regions of special 
        environmental sensitivity as conservation priority 
        areas that are eligible for enhanced assistance under 
        this chapter and chapter 4.
          [(2) Assistance.--The Secretary may designate areas 
        as conservation priority areas to assist, to the 
        maximum extent practicable, agricultural producers 
        within the conservation priority areas to comply with 
        nonpoint source pollution requirements under the 
        Federal Water Pollution Control Act (33 U.S.C. 1251 et 
        seq.) and other Federal and State environmental laws 
        and to meet other conservation needs.
          [(3) Producers.--The Secretary may provide technical 
        assistance, cost-share payments, and incentive payments 
        to producers in a conservation priority area under this 
        chapter and chapter 4 based on--
                  [(A) the significance of the soil, water, 
                wildlife habitat, and related natural resource 
                problems in a watershed, multistate area, or 
                region; and
                  [(B) the structural practices or land 
                management practices that best address the 
                problems, and that maximize environmental 
                benefits for each dollar expended, as 
                determined by the Secretary.]

           *       *       *       *       *       *       *

                   Subchapter B--Conservation Reserve

SEC. 1231. CONSERVATION RESERVE.

  (a) In General.--Through the [2002] 2011 calendar year, the 
Secretary shall formulate and carry out the enrollment of lands 
in a conservation reserve program through the use of contracts 
to assist owners and operators of lands specified in subsection 
(b) to conserve and improve the soil [and water], water, and 
wildlife resources of such lands.
  (b) Eligible Lands.--The Secretary may include in the program 
established under this subchapter--
          (1) * * *
          [(2) marginal pasture lands converted to wetland or 
        established as wildlife habitat prior to the enactment 
        of the Food, Agriculture, Conservation, and Trade Act 
        of 1990;
          [(3) marginal pasture lands to be devoted to trees in 
        or near riparian areas or for similar water quality 
        purposes, not to exceed 10 percent of the number of 
        acres of land that is placed in the conservation 
        reserve under this subchapter in each of the 1991 
        through 2002 calendar years;]
          (2) marginal pasturelands to be devoted to natural 
        vegetation in or near riparian areas or for similar 
        water quality purposes;
          [(4)] (3) croplands that are otherwise not eligible--
                  [(A) if the Secretary determines that (i) 
                such lands contribute to the degradation of 
                water quality or would pose an on-site or off-
                site environmental threat to water quality if 
                permitted to remain in agricultural production, 
                and (ii) water quality objectives with respect 
                to such land cannot be achieved under the water 
                quality incentives program established under 
                chapter 2;]
                  (A) if the Secretary determines that--
                          (i) the lands contribute to the 
                        degradation of soil, water, or air 
                        quality, or would pose an on-site or 
                        off-site environmental threat to soil, 
                        water, or air quality if permitted to 
                        remain in agricultural production; and
                          (ii) soil, water, and air quality 
                        objectives with respect to the land 
                        cannot be achieved under the 
                        environmental quality incentives 
                        program established under chapter 4;

           *       *       *       *       *       *       *

                  (C) that will be devoted to newly established 
                living snow fences, permanent wildlife habitat, 
                windbreaks, shelterbelts, or filterstrips 
                devoted to trees or shrubs; [or]
                  (D) if the Secretary determines that such 
                lands pose an off-farm environmental threat, or 
                pose a threat of continued degradation of 
                productivity due to soil salinity, if permitted 
                to remain in production[.]; or
                  (E) if the Secretary determines that 
                enrollment of such lands would contribute to 
                conservation of ground or surface water.

           *       *       *       *       *       *       *

  (d) Maximum Enrollment.--The Secretary may maintain up to 
[36,400,000] 39,200,000 acres in the conservation reserve at 
any one time during the 1986 through [2002] 2011 calendar years 
(including contracts extended by the Secretary pursuant to 
section 1437(c) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831 note)).

           *       *       *       *       *       *       *

  [(f) Conservation Priority Areas.--
          [(1) Designation.--Upon application by the 
        appropriate State agency, the Secretary shall designate 
        watershed areas of the Chesapeake Bay Region 
        (Pennsylvania, Maryland, and Virginia), the Great Lakes 
        Region, the Long Island Sound Region, and other areas 
        of special environmental sensitivity as conservation 
        priority areas.
          [(2) Eligible watersheds.--Watersheds eligible for 
        designation under this subsection shall include areas 
        with actual and significant adverse water quality or 
        habitat impacts related to agricultural production 
        activities.
          [(3) Expiration.--Conservation priority area 
        designation under this subsection shall expire after 5 
        years, subject to redesignation, except that the 
        Secretary may withdraw a watershed's designation--
                  [(A) upon application by the appropriate 
                State agency; or
                  [(B) in the case of areas specified in this 
                subsection, if the Secretary finds that such 
                areas no longer contain actual and significant 
                adverse water quality or habitat impacts 
                related to agricultural production activities.
          [(4) Duty of secretary.--In utilizing the authority 
        granted under this subsection, the Secretary shall 
        attempt to maximize water quality and habitat benefits 
        in such watersheds by promoting a significant level of 
        enrollment of lands within such watersheds in the 
        program under this subchapter by whatever means the 
        Secretary determines appropriate and consistent with 
        the purposes of this subchapter.]
  (f) Eligibility on Contract Expiration.--On the expiration of 
a contract entered into under this subchapter, the land subject 
to the contract shall be eligible to be re-enrolled in the 
conservation reserve.

           *       *       *       *       *       *       *

  (i) Balance Among Contracts Awarded.--In determining the 
acceptability of contract offers under this subchapter, the 
Secretary shall balance conservation interests in soil erosion, 
water quality, and wildlife habitat.

                     DUTIES OF OWNERS AND OPERATORS

  Sec. 1232. (a) Under the terms of a contract entered into 
under this subchapter, during the term of such contract, an 
owner or operator of a farm or ranch must agree--
          (1) * * *

           *       *       *       *       *       *       *

          (3) not to use such land for agricultural purposes, 
        except as described in section 1232(a)(7) or for other 
        purposes as permitted by the Secretary;
          (4) to establish approved vegetative cover, or water 
        cover for the enhancement of wildlife, where 
        practicable, or maintain existing cover on such land, 
        except that--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) [in addition to the remedies provided under 
        section 1236(d),] on the violation of a term or 
        condition of the contract at any time the owner or 
        operator has control of such land--
                  (A) * * *

           *       *       *       *       *       *       *

          (7) not to conduct any harvesting or grazing, nor 
        otherwise make commercial use of the forage, on land 
        that is subject to the contract, nor adopt any similar 
        practice specified in the contract by the Secretary as 
        a practice that would tend to defeat the purposes of 
        the contract, except that the [Secretary--
                  [(A) may permit--
                          [(i) harvesting or grazing or other 
                        commercial use of the forage on land 
                        that is subject to the contract in 
                        response to a drought or other similar 
                        emergency; and
                          [(ii) limited grazing on such land 
                        where such grazing is incidental to the 
                        gleaning of crop residues on the fields 
                        in which such land is located and 
                        occurs--
                                  [(I) in the case of land 
                                other than eligible acreage 
                                enrolled under section 1231(h), 
                                during the 7-month period in 
                                which grazing of conserving use 
                                acreage is allowed in a State 
                                under the Agricultural Act of 
                                1949 (7 U.S.C. 1421 et seq.) or 
                                after the producer harvests the 
                                grain crop of the surrounding 
                                field for a reduction in rental 
                                payment commensurate with the 
                                limited economic value of such 
                                incidental grazing; and
                                  [(II) in the case of eligible 
                                acreage enrolled under section 
                                1231(h), at any time other than 
                                during the period beginning May 
                                1 and ending August 1 of each 
                                year for a reduction in rental 
                                payment commensurate with the 
                                limited economic value of such 
                                incidental grazing; and
                  [(B) shall approve not more than six 
                projects, no more than one of which may be in 
                any State, under which land subject to the 
                contract may be harvested for recovery of 
                biomass used in energy production if--
                          [(i) no acreage subject to the 
                        contract is harvested more than once 
                        every other year;
                          [(ii) not more than 25 percent of the 
                        total acreage enrolled in the program 
                        under this subchapter in any crop 
                        reporting district (as designated by 
                        the Secretary), is harvested in any 1 
                        year;
                          [(iii) no portion of the crop is used 
                        for any commercial purpose other than 
                        energy production from biomass;
                          [(iv) no wetland, or acreage of any 
                        type enrolled in a partial field 
                        conservation practice (including 
                        riparian forest buffers, filter strips, 
                        and buffer strips), is harvested;
                          [(v) the owner or operator agrees to 
                        a payment reduction under this section 
                        in an amount determined by the 
                        Secretary.
                  [(C) the total acres for all of the projects 
                shall not exceed 250,000 acres.] Secretary may 
                permit--
                  (A) managed grazing and limited haying, in 
                which case the Secretary shall reduce the 
                conservation reserve payment otherwise payable 
                under the contract by an amount commensurate 
                with the economic value of the activity;
                  (B) wind turbines for the provision of wind 
                energy, whether or not commercial in nature; 
                and
                  (C) land subject to the contract to be 
                harvested for recovery of biomass used in 
                energy production, in which case the Secretary 
                shall reduce the conservation reserve payment 
                otherwise payable under the contract by an 
                amount commensurate with the economic value of 
                such activity;

           *       *       *       *       *       *       *

  [(c) Environmental Use.--To the extent practicable, not less 
than one-eighth of land that is placed in the conservation 
reserve under this subchapter during the 1991 through 2002 
calendar years shall be devoted to trees, or devoted to shrubs 
or other noncrop vegetation or water that may provide a 
permanent habitat for wildlife including migratory waterfowl.
  [(d) Alley-Cropping.--
          [(1) The Secretary may permit alley cropping of 
        agricultural commodities on land that is subject to 
        contracts entered into under this subchapter, if--
                  [(A) such land is planted to hardwood trees;
                  [(B) such agricultural commodities will be 
                produced in conjunction with, and in close 
                proximity to, such hardwood trees; and
                  [(C) the owner or operator of such land 
                agrees to implement appropriate conservation 
                practices concerning such land.
          [(2) The Secretary shall develop a bid system by 
        which owners and operators may offer to reduce their 
        annual rental payments in exchange for permission to 
        produce agricultural commodities on such land in 
        accordance with this subsection. The Secretary shall 
        not accept offers under this paragraph that provide for 
        less than a 50 percent reduction in such annual 
        payments.
          [(3) The Secretary shall ensure that the total annual 
        rental payments over the term of any contract modified 
        under this subsection are not in excess of that 
        specified in the original contract.
          [(4) For the purposes of this subsection, the term 
        ``alley cropping'' means the practice of planting rows 
        of trees bordered on each side by a narrow strip of 
        groundcover, alternated with wider strips of row crops 
        or grain.]
  [(e)] (c) Foreclosure.--Notwithstanding any other provision 
of law, an owner or operator who is a party to a contract 
entered into under this subchapter may not be required to make 
repayments to the Secretary of amounts received under such 
contract if the land that is subject to such contract has been 
foreclosed upon and the Secretary determines that forgiving 
such repayments is appropriate in order to provide fair and 
equitable treatment. This subsection shall not void the 
responsibilities of such an owner or operator under the 
contract if such owner or operator resumes control over the 
property that is subject to the contract within the period 
specified in the contract. Upon the resumption of such control 
over the property by the owner or operator, the provisions of 
the contract in effect on the date of the foreclosure shall 
apply.

                        DUTIES OF THE SECRETARY

  Sec. 1233. (a) In General.--In return for a contract entered 
into by an owner or operator under section 1232, the Secretary 
shall--
          (1) share the cost of carrying out the conservation 
        measures and practices set forth in the contract for 
        which the Secretary determines that cost sharing is 
        appropriate and in the public interest; and
          (2) for a period of years not in excess of the term 
        of the contract, pay an annual [rental payment] 
        conservation reserve payment in an amount necessary to 
        compensate for--
                  (A) the conversion of highly erodible 
                cropland normally devoted to the production of 
                an agricultural commodity on a farm or ranch to 
                a less intensive use; and
                  (B) the retirement of any cropland base and 
                allotment history that the owner or operator 
                agrees to retire permanently[; and].
          [(3) provide conservation technical assistance to 
        assist the owner or operator in carrying out the 
        contract.]
  (b) Technical Assistance.--An owner or operator who is 
participating in the program under this subtitle shall be 
eligible to receive technical assistance in accordance with 
section 1243(d) to assist the owner or operator in carrying out 
a contract entered into under section 1232.

                                PAYMENTS

  Sec. 1234. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  [(3) In determining the acceptability of contract offers, the 
Secretary may--
          [(A) take into consideration the extent to which 
        enrollment of the land that is the subject of the 
        contract offer would improve soil resources, water 
        quality, wildlife habitat, or provide other 
        environmental benefits; and
          [(B) establish different criteria in various States 
        and regions of the United States based upon the extent 
        to which water quality or wildlife habitat may be 
        improved or erosion may be abated.]

           *       *       *       *       *       *       *

  (f)(1) * * *

           *       *       *       *       *       *       *

  [(3) Rental payments received by an owner or operator shall 
be in addition to, and not affect, the total amount of payments 
that such owner or operator is otherwise eligible to receive 
under this Act, the Food, Agriculture, Conservation, and Trade 
Act of 1990, or the Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.).]

           *       *       *       *       *       *       *

                               CONTRACTS

  Sec. 1235. (a)(1) No contract shall be entered into under 
this subchapter concerning land with respect to which the 
ownership has changed in the 1-year period preceding the first 
year of the contract period unless--
          (A) the new ownership was acquired by will or 
        succession as a result of the death of the previous 
        owner; or
          [(B) the new ownership was acquired before January 1, 
        1985;
          [(C) the Secretary determines that the land was 
        acquired under circumstances that give adequate 
        assurance that such land was not acquired for the 
        purpose of placing it in the program established by 
        this subchapter; or]
          [(D)] (B) the ownership change occurred due to 
        foreclosure on the land and the owner of the land 
        immediately before the foreclosure exercises a right of 
        redemption from the mortgage holder in accordance with 
        State law.

           *       *       *       *       *       *       *

  (f) Restoration of Base.--On the expiration of a contract 
entered into under this subchapter, the Secretary shall restore 
the base, contract acreage, quota, or allotment history 
applicable to the land when the contract was entered into.

                             [BASE HISTORY

  [Sec. 1236. (a) A reduction, based on a ratio between the 
total cropland acreage on the farm and the acreage placed in 
the conservation reserve authorized by this subchapter, as 
determined by the Secretary, shall be made during the period of 
the contract, in the aggregate, in crop bases, quotas, and 
allotments on the farm with respect to crops for which there is 
a production adjustment program.
  [(b) Notwithstanding sections 1211 and 1221, the Secretary, 
by appropriate regulation, may provide for preservation of 
cropland base and allotment history applicable to acreage 
converted from the production of agricultural commodities under 
this section, for the purpose of any Federal program under 
which the history is used as a basis for participation in the 
program or for an allotment or other limitation in the program, 
unless the owner and operator agree under the contract to 
retire permanently that cropland base and allotment history.
  [(c) The Secretary shall offer the owner or operator of a 
farm or ranch an opportunity to extend the preservation of 
cropland base and allotment history pursuant to subsection (b) 
for such time as the Secretary determines to be appropriate 
after the expiration date of a contract under this subchapter 
at the request of such owner or operator. In return for such 
extension, the owner or operator shall agree to continue to 
abide by the terms and conditions of the original contract, 
except that--
          [(1) such owner or operator shall receive no 
        additional cost share, annual rental, or bonus payment; 
        and
          [(2) the Secretary may permit, subject to such terms 
        and conditions as the Secretary may impose, haying and 
        grazing of acreage subject to such agreement, except 
        during any consecutive 5 month period that is 
        established by the State committee. Each 5 month period 
        shall be established during the period beginning April 
        1 and ending October 31 of a year. In the case of a 
        natural disaster, the Secretary may permit unlimited 
        haying and grazing on such acreage.
  [(d) In addition to any other remedy prescribed by law, the 
Secretary may reduce or terminate the amount of cropland base 
and allotment history preserved pursuant to subsection (c) for 
acreage with respect to which a violation of a term or 
condition occurs.]

                 Subchapter C--Wetlands Reserve Program

SEC. 1237. WETLANDS RESERVE PROGRAM.

  (a) * * *
  (b) Enrollment Conditions.--
          [(1) Maximum enrollment.--The total number of acres 
        enrolled in the wetlands reserve program shall not 
        exceed 975,000 acres.
          [(2) Methods of enrollment.--
                  [(A) In general.--Subject to subparagraph 
                (B), effective beginning October 1, 1996, to 
                the maximum extent practicable, the Secretary 
                shall enroll into the wetlands reserve 
                program--
                          [(i) \1/3\ of the acres through the 
                        use of permanent easements;
                          [(ii) \1/3\ of the acres through the 
                        use of 30-year easements; and
                          [(iii) \1/3\ of the acres through the 
                        use of restoration cost-share 
                        agreements.
                  [(B) Temporary easements.--Effective 
                beginning October 1, 1996, the Secretary shall 
                not enroll acres in the wetlands reserve 
                program through the use of new permanent 
                easements until the Secretary has enrolled at 
                least 75,000 acres in the program through the 
                use of temporary easements.
                  [(C) For purposes of subparagraph (A), to the 
                maximum extent practicable should be 
                interpreted to mean that acceptance of wetlands 
                reserve program bids may be in proportion to 
                landowner interest expressed in program 
                options.
  [(c) Eligibility.--For purposes of enrolling land in the 
wetland reserve established under this subchapter during the 
1991 through 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) such land maximizes wildlife benefits and 
        wetland values and functions;
          [(2) such land is farmed wetland or converted 
        wetland, together with adjacent lands that are 
        functionally dependent on such wetlands, except that 
        converted wetlands where the conversion was not 
        commenced prior to December 23, 1985, shall not be 
        eligible to be enrolled in the program under this 
        section; and
          [(3) the likelihood of the successful restoration of 
        such land and the resultant wetland values merit 
        inclusion of such land in the program taking into 
        consideration the cost of such restoration.
  [(d) Other Eligible Land.--The Secretary may include in the 
wetland reserve established under this subchapter, together 
with land that is eligible under subsection (c), land that 
maximizes wildlife benefits and that is--
          [(1) farmed wetland and adjoining lands, enrolled in 
        the conservation reserve, with the highest wetland 
        functions and values, and that are likely to return to 
        production after they leave the conservation reserve;
          [(2) other wetland of an owner that would not 
        otherwise be eligible if the Secretary determines that 
        the inclusion of such wetland in such easement would 
        significantly add to the functional value of the 
        easement; or
          [(3) riparian areas that link wetlands that are 
        protected by easements or some other device or 
        circumstance that achieves the same purpose as an 
        easement.
  [(e) Ineligible Land.--The Secretary may not acquire 
easements on--
          [(1) land that contains timber stands established 
        under the conservation reserve under subchapter B; or
          [(2) pasture land established to trees under the 
        conservation reserve under subchapter B.]
          (1) Annual enrollment.--In addition to any acres 
        enrolled in the wetlands reserve program as of the end 
        of a calendar year, the Secretary may in the succeeding 
        calendar year enroll in the program a number of 
        additional acres equal to--
                  (A) if the succeeding calendar year is 
                calendar year 2002, 150,000;
                  (B) if the succeeding calendar year is a 
                calendar year after calendar year 2002--
                          (i) 150,000; plus
                          (ii) the amount (if any) by which 
                        150,000, multiplied by the number of 
                        calendar years in the period that 
                        begins with calendar year 2002 and ends 
                        with the calendar year preceding such 
                        succeeding calendar year, exceeds the 
                        total number of acres added to the 
                        reserve during the period.
          (2) Methods of enrollment.--The Secretary shall 
        enroll acreage into the wetlands reserve program 
        through the use of easements, restoration cost share 
        agreements, or both.
  (c) Priority.--For purposes of enrolling acreage in the 
wetlands reserve program, the Secretary shall give priority to 
land that maximizes wetland functions and values.
  (d) Ineligible Land.--The Secretary may not acquire an 
easement under this chapter on land which is--
          (1) enrolled in the conservation reserve program 
        established under subchapter B; or
          (2) subject to a contract under the environmental 
        quality incentives program established by chapter 4.
  [(f)] (e) Termination of existing contract.--The Secretary 
may terminate or modify an existing contract entered into under 
section 1231(a) if eligible land that is subject to such 
contract is transferred into the program established by this 
subchapter.
  [(g) Easements.--The Secretary shall enroll lands in the 
wetland reserve through the purchase of easements as provided 
for in section 1237A.]

SEC. 1237A. EASEMENTS AND AGREEMENTS.

  (a) * * *
  (b) Terms of Easement.--An owner granting an easement under 
subsection (a) shall be required to provide for the restoration 
and protection of the functional values of wetland pursuant to 
a wetland easement conservation plan that--
          (1) * * *
          [(2) prohibits--
                  [(A) the alteration of wildlife habitat and 
                other natural features of such land, unless 
                specifically permitted by the plan;
                  [(B) the spraying of such land with chemicals 
                or the mowing of such land, except where such 
                spraying or mowing is permitted by the plan or 
                is necessary--
                          [(i) to comply with Federal or State 
                        noxious weed control laws; or
                          [(ii) to comply with a Federal or 
                        State emergency pest treatment program; 
                        and
                  [(C) any activities to be carried out on such 
                participating landowner's or successor's land 
                that is immediately adjacent to, and 
                functionally related to, the land that is 
                subject to the easement if such activities will 
                alter, degrade, or otherwise diminish the 
                functional value of the eligible land; and
                  [(D) the adoption of any other practice that 
                would tend to defeat the purposes of this 
                subchapter, as determined by the Secretary;]
          (2) prohibits the alteration of wildlife habitat and 
        other natural features of such land, unless 
        specifically permitted by the plan;

           *       *       *       *       *       *       *

  [(c) Restoration Plans.--The development of a restoration 
plan, including any compatible use, under this section shall be 
made through the local Natural Resources Conservation Service 
representative, in consultation with the State technical 
committee.]
  [(d)] (c) Compatible Uses.--Wetland reserve program lands may 
be used for compatible economic uses, including such activities 
as hunting and fishing, managed timber harvest, or periodic 
haying or grazing, if such use is specifically permitted by the 
plan and consistent with the long-term protection and 
enhancement of the wetlands resources for which the easement 
was established.
  [(e)] (d) 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 consistent with applicable State law.
  [(f)] (e) Compensation.--Compensation for easements acquired 
by the Secretary under this subchapter shall be made in cash in 
such amount as is agreed to and specified in the easement 
agreement, but not to exceed the fair market value of the land 
less the fair market value of such land encumbered by the 
easement. Lands may be enrolled through the submission of bids 
under a procedure established by the Secretary. Compensation 
may be provided in not less than 5, nor more than 30, annual 
payments of equal or unequal size, as agreed to by the owner 
and the Secretary.
  [(g)] (f) Violation.--On the violation of the terms or 
conditions of the easement or related agreement entered into 
under subsection (a), the easement shall remain in force and 
the Secretary may require the owner to refund all or part of 
any payments received by the owner under this subchapter, 
together with interest thereon as determined appropriate by the 
Secretary.
  [(h) Restoration Cost-Share Agreements.--The Secretary may 
enroll land into the wetlands reserve program through an 
agreement that requires the landowner to restore wetlands on 
the land, if the agreement does not provide the Secretary with 
an easement.]

           *       *       *       *       *       *       *

SEC. 1237C. DUTIES OF THE SECRETARY.

  (a) In General.--In return for the granting of an easement by 
an owner under this subchapter, the Secretary [shall--
          [(1)] shall share the cost of carrying out the 
        establishment of conservation measures and practices, 
        and the protection of the wetland functions and values, 
        as set forth in the plan to the extent that the 
        Secretary determines that cost sharing is appropriate 
        and in the public [interest; and
          [(2) provide necessary technical assistance to assist 
        owners in complying with the terms and conditions of 
        the easement and the plan.] interest.
  (b) Cost-Share [and Technical Assistance].--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Technical assistance.--The Secretary shall 
        provide owners with technical assistance to assist 
        owners in complying with the terms of easements and 
        restoration cost-share agreements.]
          (2) Technical assistance.--A producer who is 
        participating in the program under this subtitle shall 
        be eligible to receive technical assistance in 
        accordance with section 1243(d) to assist the producer 
        in complying with the terms of easements and 
        restoration cost share agreements under this 
        subchapter.

           *       *       *       *       *       *       *

  [(d) Easement Priority.--In carrying out this subchapter, to 
the extent practicable, taking into consideration costs and 
future agricultural and food needs, the Secretary shall give 
priority to obtaining permanent conservation easements before 
shorter term conservation easements and, in consultation with 
the Secretary of the Interior, shall place priority on 
acquiring easements based on the value of the easement for 
protecting and enhancing habitat for migratory birds and other 
wildlife.]

SEC. 1237D. PAYMENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Payment Limitation.--
          (1) In general.--The total amount of [easement 
        payments] payments made to a person under this 
        subchapter for any year may not exceed $50,000, except 
        such limitation shall not apply with respect to 
        payments for perpetual or 30-year easements.

           *       *       *       *       *       *       *

          [(3) Other payments.--Easement payments received by 
        an owner shall be in addition to, and not affect, the 
        total amount of payments that such owner is otherwise 
        eligible to receive under this Act, the Food, 
        Agriculture, Conservation, and Trade Act of 1990, or 
        the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).]

           *       *       *       *       *       *       *

SEC. 1237E. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.

  (a) Limitations.--No easement shall be created under this 
subchapter on land that has changed ownership in the preceding 
12 months unless--
          (1) * * *
          [(2) the new ownership was acquired before January 1, 
        1990; or]
          (2) the ownership change occurred due to foreclosure 
        on the land and the owner of the land immediately 
        before the foreclosure exercises a right of redemption 
        from the mortgage holder in accordance with State law, 
        or

           *       *       *       *       *       *       *

                Subchapter D--Grassland Reserve Program

SEC. 1238. GRASSLAND RESERVE PROGRAM.

  (a) Establishment.--The Secretary, acting through the Farm 
Service Agency, shall establish a grassland reserve program 
(referred to in this subchapter as the ``program'') to assist 
owners in restoring and conserving eligible land described in 
subsection (c).
  (b) Enrollment Conditions.--
          (1) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 2,000,000 
        acres, not more than 1,000,000 of which shall be 
        restored grassland, and not more than 1,000,000 of 
        which shall be virgin (never cultivated) grassland.
          (2) Methods of enrollment.--The Secretary shall 
        enroll in the program for a willing owner not less than 
        100 contiguous acres of land west of the 90th meridian 
        or not less than 50 contiguous acres of land east of 
        the 90th meridian through 10-year, 15-year, or 20-year 
        contracts.
  (c) Eligible Land.--Land shall be eligible to be enrolled in 
the program if the Secretary determines that--
          (1) the land is natural grass or shrubland; or
          (2) the land--
                  (A) is located in an area that has been 
                historically dominated by natural grass or 
                shrubland; and
                  (B) has potential to serve as habitat for 
                animal or plant populations of significant 
                ecological value if the land is restored to 
                natural grass or shrubland.

SEC. 1238A. CONTRACTS AND AGREEMENTS.

  (a) Requirements of Landowner.--To be eligible to enroll land 
in the program, the owner of the land shall--
          (1) agree to comply with the terms of the contract 
        and related restoration agreements; and
          (2) agree to the suspension of any existing cropland 
        base and allotment history for the land under any 
        program administered by the Secretary.
  (b) Terms of Contract.--A contract under subsection (a) 
shall--
          (1) permit--
                  (A) common grazing practices on the land in a 
                manner that is consistent with maintaining the 
                viability of natural grass and shrub species 
                indigenous to that locality;
                  (B) haying, mowing, or haying for seed 
                production, except that such uses shall not be 
                permitted until after the end of the nesting 
                season for birds in the local area which are in 
                significant decline or are conserved pursuant 
                to State or Federal law, as determined by the 
                Natural Resources Conservation Service State 
                conservationist; and
                  (C) construction of fire breaks and fences, 
                including placement of the posts necessary for 
                fences;
          (2) prohibit--
                  (A) the production of any agricultural 
                commodity (other than hay); and
                  (B) unless allowed under subsection (d), the 
                conduct of any other activity that would 
                disturb the surface of the land covered by the 
                contract; and
          (3) include such additional provisions as the 
        Secretary determines are appropriate to carry out or 
        facilitate the administration of this subchapter.
  (c) Ranking Contract Applications.--
          (1) Establishment of criteria.--The Secretary shall 
        establish criteria to evaluate and rank applications 
        for contracts under this subchapter.
          (2) Emphasis.--In establishing the criteria, the 
        Secretary shall emphasize support for native grass and 
        shrubland, grazing operations, and plant and animal 
        biodiversity.
  (d) Restoration Agreements.--The Secretary shall prescribe 
the terms by which grassland that is subject to a contract 
under the program shall be restored. The agreement shall 
include duties of the land owner and the Secretary, including 
the Federal share of restoration payments and technical 
assistance.
  (e) Violations.--On the violation of the terms or conditions 
of a contract or restoration agreement entered into under this 
section--
          (1) the contract shall remain in force; and
          (2) the Secretary may require the owner to refund all 
        or part of any payments received by the owner under 
        this subchapter, with interest on the payments as 
        determined appropriate by the Secretary.

SEC. 1238B. DUTIES OF SECRETARY.

  (a) In General.--In return for the granting of a contract by 
an owner under this subchapter, the Secretary shall make 
contract payments and payments of the Federal share of 
restoration and provide technical assistance to the owner in 
accordance with this section.
  (b) Contract Payments.--In return for the granting of 
contract by an owner under this subchapter, the Secretary shall 
make annual contract payments to the owner in an amount that is 
not more than 75 percent of the grazing value of the land.
  (c) Federal Share of Restoration.--The Secretary shall make 
payments to the owner of not more than--
          (1) in the case of virgin (never cultivated) 
        grassland, 90 percent of the costs of carrying out 
        measures and practices necessary to restore grassland 
        functions and values; or
          (2) in the case of restored grassland, 75 percent of 
        such costs.
  (d) Technical Assistance.--A landowner who is receiving a 
benefit under this subchapter shall be eligible to receive 
technical assistance in accordance with section 1243(d) to 
assist the owner or operator in carrying out a contract entered 
into under this subchapter.
  (e) Payments to Others.--If an owner who is entitled to a 
payment under this subchapter dies, becomes incompetent, is 
otherwise unable to receive the payment, or is succeeded by 
another person who renders or completes the required 
performance, the Secretary shall make the payment, in 
accordance with regulations promulgated by the Secretary and 
without regard to any other provision of law, in such manner as 
the Secretary determines is fair and reasonable in light of all 
the circumstances.

                CHAPTER 2--FARMLAND STEWARDSHIP PROGRAM

SEC. 1239. DEFINITIONS.

  In this chapter:
          (1) Agreement.--The terms ``farmland stewardship 
        agreement'' and ``agreement'' mean a stewardship 
        contract authorized by this chapter.
          (2) Contracting agency.--The term ``contracting 
        agency'' means a local conservation district, resource 
        conservation and development council, local office of 
        the Department of Agriculture, other participating 
        government agency, or other nongovernmental 
        organization that is designated by the Secretary to 
        enter into farmland stewardship agreements on behalf of 
        the Secretary.
          (3) Eligible agricultural lands.--The term ``eligible 
        agricultural lands'' means private lands that are in 
        primarily native or natural condition or are classified 
        as cropland, pastureland, grazing lands, timberlands, 
        or other lands as specified by the Secretary that--
                  (A) contain wildlife habitat, wetlands, or 
                other natural resources; or
                  (B) provide benefits to the public at large, 
                such as--
                          (i) conservation of soil, water, and 
                        related resources;
                          (ii) water quality protection or 
                        improvement;
                          (iii) control of invasive and exotic 
                        species;
                          (iv) wetland restoration, protection, 
                        and creation; and
                          (v) wildlife habitat development and 
                        protection;
                          (vi) preservation of open spaces, or 
                        prime, unique, or other productive farm 
                        lands; and
                          (vii) and other similar conservation 
                        purposes.
          (4) Farmland stewardship program; program.--The terms 
        ``Farmland Stewardship Program'' and ``Program'' mean 
        the conservation program of the Department of 
        Agriculture established by this chapter.

SEC. 1239A. ESTABLISHMENT AND PURPOSE OF PROGRAM.

  (a) Establishment.--The Secretary shall establish a 
conservation program of the Department of Agriculture, to be 
known as the Farmland Stewardship Program, that is designed to 
more precisely tailor and target existing conservation programs 
to the specific conservation needs and opportunities presented 
by individual parcels of eligible agricultural lands.
  (b) Relation to Other Conservation Programs.--Under the 
Farmland Stewardship Program, the Secretary may implement, or 
combine together, the features of--
          (1) the Wetlands Reserve Program;
          (2) the Wildlife Habitat Incentives Program;
          (3) the Forest Land Enhancement Program;
          (4) the Farmland Protection Program; or
          (5) other conservation programs administered by other 
        Federal agencies and State and local government 
        entities, where feasible and with the consent of the 
        administering agency or government.
  (c) Funding Sources.--
          (1) In general.--The Farmland Stewardship Program and 
        agreements under the Program shall be funded by the 
        Secretary using--
                  (A) the funding authorities of the 
                conservation programs that are implemented in 
                whole, or in part, through the use of 
                agreements or easements; and
                  (B) such funds as are provided to carry out 
                the programs specified in paragraphs (1) 
                through (4) of subsection (b).
          (2) Cost-sharing.--It shall be a requirement of the 
        Farmland Stewardship Program that the majority of the 
        funds to carry out the Program must come from other 
        existing conservation programs, which may be Federal, 
        State, regional, local, or private, that are combined 
        into and made a part of an agreement, or from matching 
        funding contributions made by State, regional, or local 
        agencies and divisions of government or from private 
        funding sources.
  (d) Personnel Costs.--The Secretary may use the Natural 
Resources Conservation Service to carry out the Farmland 
Stewardship Program.
  (e) Technical Assistance.--An owner or operator who is 
receiving a benefit under this chapter shall be eligible to 
receive technical assistance in accordance with section 1243(d) 
to assist the owner or operator in carrying out a contract 
entered into under this chapter.

SEC. 1239B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

  (a) Agreements Authorized.--The Secretary shall carry out the 
Farmland Stewardship Program by entering into stewardship 
contracts as determined by the Secretary, to be known as 
farmland stewardship agreements, with the owners or operators 
of eligible agricultural lands to maintain and protect for the 
natural and agricultural resources on the lands.
  (b) Basic Purposes.--An agreement with the owner or operator 
of eligible agricultural lands shall be used--
          (1) to negotiate a mutually agreeable set of 
        guidelines, practices, and procedures under which 
        conservation practices will be provided by the owner or 
        operator to protect, maintain, and, where possible, 
        improve, the natural resources on the lands covered by 
        the agreement in return for annual payments to the 
        owner or operator;
          (2) to implement a conservation program or series of 
        programs where there is no such program or to implement 
        conservation management activities where there is no 
        such activity; and
          (3) to expand conservation practices and resource 
        management activities to a property where it is not 
        possible at the present time to negotiate or reach 
        agreement on a public purchase of a fee-simple or less-
        than-fee interest in the property for conservation 
        purposes.
  (c) Modification of Other Conservation Program Elements.--If 
most, but not all, of the limitations, conditions, and 
requirements of a conservation program that is implemented in 
whole, or in part, through the Farmland Stewardship Program are 
met with respect to a parcel of eligible agricultural lands, 
and the purposes to be achieved by the agreement to be entered 
into for such lands are consistent with the purposes of the 
conservation program, then the Secretary may waive any 
remaining limitations, conditions, or requirements of the 
conservation program that would otherwise prohibit or limit the 
agreement.
  (d) State and Local Conservation Priorities.--To the maximum 
extent practicable, agreements shall address the conservation 
priorities established by the State and locality in which the 
eligible agricultural lands are located.
  (e) Watershed Enhancement.--To the extent practicable, the 
Secretary shall encourage the development of Farmland 
Stewardship Program applications on a watershed basis.

SEC. 1239C. PARTNERSHIP APPROACH TO PROGRAM.

  (a) Authority of Secretary Exercised Through Partnerships.--
The Secretary may administer agreements under the Farmland 
Stewardship Program in partnership with other Federal, State, 
and local agencies whose programs are incorporated into the 
Program under section 1239A.
  (b) Designation and Use of Contracting Agencies.--Subject to 
subsection (c), the Secretary may authorize a local 
conservation district, resource conservation & development 
district, nonprofit organization, or local office of the 
Department of Agriculture or other participating government 
agency to enter into and administer agreements under the 
Program as a contracting agency on behalf of the Secretary.
  (c) Conditions on Designation.--The Secretary may designate 
an eligible district or office as a contracting agency under 
subsection (b) only if the district of office--
          (1) submits a written request for such designation to 
        the Secretary;
          (2) affirms that it is willing to follow all 
        guidelines for executing and administering an 
        agreement, as promulgated by the Secretary;
          (3) demonstrates to the satisfaction of the Secretary 
        that it has established working relationships with 
        owners and operators of eligible agricultural lands, 
        and based on the history of these working 
        relationships, demonstrates that it has the ability to 
        work with owners and operators of eligible agricultural 
        lands in a cooperative manner;
          (4) affirms its responsibility for preparing all 
        documentation for the agreement, negotiating its terms 
        with an owner or operator, monitoring compliance, 
        making annual reports to the Secretary, and 
        administering the agreement throughout its full term; 
        and
          (5) demonstrates to the satisfaction of the Secretary 
        that it has or will have the necessary staff resources 
        and expertise to carry out its responsibilities under 
        paragraphs (3) and (4).

SEC. 1239D. PARTICIPATION OF OWNERS AND OPERATORS OF ELIGIBLE 
                    AGRICULTURAL LANDS.

  (a) Application and Approval Process.--To participate in the 
Farmland Stewardship Program, an owner or operator of eligible 
agricultural lands shall--
          (1) submit to the Secretary an application indicating 
        interest in the Program and describing the owner's or 
        operator's property, its resources, and their 
        ecological and agricultural values;
          (2) submit to the Secretary a list of services to be 
        provided, a management plan to be implemented, or both, 
        under the proposed agreement;
          (3) if the application and list are accepted by the 
        Secretary, enter into an agreement that details the 
        services to be provided, management plan to be 
        implemented, or both, and requires compliance with the 
        other terms of the agreement.
  (b) Application on Behalf of an Owner or Operator.--A 
designated contracting agency may submit the application 
required by subsection (a) on behalf of an owner or operator by 
if the contracting agency has secured the consent of the owner 
or operator to enter into an agreement.

               [CHAPTER 3--ENVIRONMENTAL EASEMENT PROGRAM

[SEC. 1239. ENVIRONMENTAL EASEMENT PROGRAM.

  [(a) Establishment.--The Secretary shall, during the 1991 
through 1995 calendar years, formulate and carry out an 
environmental easement program (hereafter in this chapter 
referred to as the ``easement program'') in accordance with 
this chapter, through the acquisition of permanent easements or 
easements for the maximum term permitted under applicable State 
law from willing owners of eligible farms or ranches in order 
to ensure the continued long-term protection of environmentally 
sensitive lands or reduction in the degradation of water 
quality on such farms or ranches through the continued 
conservation and improvement of soil and water resources.
  [(b) Eligibility; Termination.--
          [(1) In general.--The Secretary may acquire easements 
        under this section on land placed in the conservation 
        reserve under this subtitle (other than such land that 
        is likely to continue to remain out of production and 
        that does not pose an off-farm environmental threat), 
        land under the Water Bank Act (16 U.S.C. 1301), or 
        other cropland that--
                  [(A) contains riparian corridors;
                  [(B) is an area of critical habitat for 
                wildlife, especially threatened or endangered 
                species; or
                  [(C) contains other environmentally sensitive 
                areas, as determined by the Secretary, that 
                would prevent a producer from complying with 
                other Federal, State, or local environmental 
                goals if commodities were to be produced on 
                such land.
          [(2) Ineligible land.--The Secretary may not acquire 
        easements on--
                  [(A) land that contains timber stands 
                established under the conservation reserve 
                under subtitle D; or
                  [(B) pasture land established to trees under 
                the conservation reserve under subtitle D.
          [(3) Termination of existing contract.--The Secretary 
        may terminate or modify any existing contract entered 
        into under section 1231(a) if eligible land that is 
        subject to such contract is transferred into the 
        program established by this chapter.

[SEC. 1239A. DUTIES OF OWNERS; COMPONENTS OF PLAN.

  [(a) Duties of Owners.--
          [(1) Plan.--In conjunction with the creation of an 
        easement on any lands under this chapter, the owner of 
        the farm or ranch wherein such lands are located must 
        agree to implement a natural resource conservation 
        management plan under subsection (b) approved by the 
        Secretary in consultation with the Secretary of the 
        Interior.
          [(2) Agreement.--In return for the creation of an 
        easement on any lands under this chapter, the owner of 
        the farm or ranch wherein such lands are located must 
        agree to the following:
                  [(A) To the creation and recordation of an 
                appropriate deed restriction in accordance with 
                applicable State law to reflect the easement 
                agreed to under this chapter with respect to 
                such lands.
                  [(B) To provide a written statement of 
                consent to such easement signed by those 
                holding a security interest in the land.
                  [(C) To comply with such additional 
                provisions as the Secretary determines are 
                desirable and are included in the easement to 
                carry out this chapter or to facilitate the 
                practical administration thereof.
                  [(D) To specify the location of any timber 
                harvesting on land subject to the easement. 
                Harvesting and commercial sales of Christmas 
                trees and nuts shall be prohibited on such 
                land, except that no such easement or related 
                agreement shall prohibit activities consistent 
                with customary forestry practices, such as 
                pruning, thinning, or tree stand improvement on 
                lands converted to forestry uses.
                  [(E) To limit the production of any 
                agricultural commodity on such lands only to 
                production for the benefit of wildlife.
                  [(F) Not to conduct any harvesting or 
                grazing, nor otherwise make commercial use of 
                the forage, on land that is subject to the 
                easement unless specifically provided for in 
                the easement or related agreement.
                  [(G) Not to adopt any other practice that 
                would tend to defeat the purposes of this 
                chapter, as determined by the Secretary.
          [(3) Violation.--On the violation of the terms or 
        conditions of the easement or related agreement entered 
        into under this section, the easement shall remain in 
        force and the Secretary may require the owner to refund 
        all or part of any payments received by the owner under 
        this chapter, together with interest thereon as 
        determined appropriate by the Secretary.
  [(b) Components of Plan.--The natural resource conservation 
management plan referred to in subsection (a)(1) (hereafter 
referred to as the ``plan'')--
          [(1) shall set forth--
                  [(A) the conservation measures and practices 
                to be carried out by the owner of the land 
                subject to the easement; and
                  [(B) the commercial use, if any, to be 
                permitted on such land during the term of the 
                easement; and
          [(2) shall provide for the permanent retirement of 
        any existing cropland base and allotment history for 
        such land under any program administered by the 
        Secretary.

[SEC. 1239B. DUTIES OF THE SECRETARY.

  [In return for the granting of an easement by an owner under 
this chapter, the Secretary shall--
          [(1) share the cost of carrying out the establishment 
        of conservation measures and practices set forth in the 
        plan for which the Secretary determines that cost 
        sharing is appropriate and in the public interest;
          [(2) pay for a period not to exceed 10 years annual 
        easement payments in the aggregate not to exceed the 
        lesser of--
                  [(A) $250,000; or
                  [(B) the difference in the value of the land 
                with and without an easement;
          [(3) provide necessary technical assistance to assist 
        owners in complying with the terms and conditions of 
        the easement and the plan; and
          [(4) permit the land to be used for wildlife 
        activities, including hunting and fishing, if such use 
        is permitted by the owner.

[SEC. 1239C. PAYMENTS.

  [(a) Time of Payment.--The Secretary shall provide payment 
for obligations incurred by the Secretary under this chapter--
          [(1) with respect to any cost sharing obligation as 
        soon as possible after the obligation is incurred; and
          [(2) with respect to any annual easement payment 
        obligation incurred by the Secretary as soon as 
        possible after October 1 of each calendar year.
  [(b) Cost Sharing Payments.--In making cost sharing payments 
to owners under this chapter, the Secretary may pay up to 100 
percent of the cost of establishing conservation measures and 
practices pursuant to this chapter.
  [(c) Easement Payments; Acceptability of Offers.--
          [(1) Determination of amount.--The Secretary shall 
        determine the amount payable to owners in the form of 
        easement payments under this chapter, and in making 
        such determination may consider, among other things, 
        the amount necessary to encourage owners to participate 
        in the easement program.
          [(2) Acceptability of offers.--In determining the 
        acceptability of easement offers, the Secretary may 
        take into consideration--
                  [(A) the extent to which the purposes of the 
                easement program would be achieved on the land;
                  [(B) the productivity of the land; and
                  [(C) the on-farm and off-farm environmental 
                threats if the land is used for the production 
                of agricultural commodities.
  [(d) Form of Payment.--Except as otherwise provided in this 
section, payments under this chapter--
          [(1) shall be made in cash in such amount and at such 
        time as is agreed on and specified in the easement or 
        related agreement; and
          [(2) may be made in advance of a determination of 
        performance.
  [(e) Payments to Others.--If an owner who is entitled to a 
payment under this chapter dies, becomes incompetent, is 
otherwise unable to receive such payment, or is succeeded by 
another person who renders or completes the required 
performance, the Secretary shall make such payment, in 
accordance with regulations prescribed by the Secretary and 
without regard to any other provision of law, in such manner as 
the Secretary determines is fair and reasonable in light of all 
of the circumstances.
  [(f) Payment Limitation.--
          [(1) In general.--The total amount of easement 
        payments made to a person under this chapter for any 
        year may not exceed $50,000.
          [(2) Regulations.--The Secretary shall issue 
        regulations prescribing such rules as the Secretary 
        determines necessary to ensure a fair and reasonable 
        application of the limitation contained in this 
        subsection.
          [(3) Other payments.--Easement payments received by 
        an owner shall be in addition to, and not affect, the 
        total amount of payments that such owner is otherwise 
        eligible to receive under this Act, the Food, 
        Agriculture, Conservation, and Trade Act of 1990, or 
        the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.).
          [(4) State environmental enhancement.--The provisions 
        of this subsection that limit payments to any person, 
        and section 1305(d) of the Agricultural Reconciliation 
        Act of 1987 (7 U.S.C. 1308 note), shall not be 
        applicable to payments received by a State, political 
        subdivision, or agency thereof in connection with 
        agreements entered into under an environmental easement 
        enhancement program carried out by that entity that has 
        been approved by the Secretary. The Secretary may enter 
        into such agreements for payments to States, political 
        subdivisions, or agencies thereof that the Secretary 
        determines will advance the purposes of this chapter.
  [(g) Exemption From Automatic Sequester.--Notwithstanding any 
other provision of law, no order issued under section 252 of 
the Balanced Budget and Emergency Deficit Control Act of 1985, 
as amended (2 U.S.C. 902) shall affect any payment under this 
chapter.

[SEC. 1239D. CHANGES IN OWNERSHIP; MODIFICATION OF EASEMENT.

  [(a) Limitations.--No easement shall be created under this 
chapter on land that has changed ownership in the preceding 12 
months unless--
          [(1) the new ownership was acquired by will or 
        succession as a result of the death of the previous 
        owner;
          [(2) the new ownership was acquired before January 1, 
        1990; or
          [(3) the Secretary determines that the land was 
        acquired under circumstances that give adequate 
        assurances that such land was not acquired for the 
        purposes of placing it in the program established by 
        this chapter.
  [(b) Modification; Termination.--
          [(1) Modification.--The Secretary may modify an 
        easement acquired from, or a related agreement with, an 
        owner under this chapter if--
                  [(A) the current owner of the land agrees to 
                such modification; and
                  [(B) the Secretary determines that such 
                modification is desirable--
                          [(i) to carry out this chapter;
                          [(ii) to facilitate the practical 
                        administration of this chapter; or
                          [(iii) to achieve such other goals as 
                        the Secretary determines are 
                        appropriate and consistent with this 
                        chapter.
          [(2) Termination.--
                  [(A) In general.--The Secretary may terminate 
                an easement created with an owner under this 
                chapter if--
                          [(i) the current owner of the land 
                        agrees to such termination; and
                          [(ii) the Secretary determines that 
                        such termination would be in the public 
                        interest.
                  [(B) Notice.--At least 90 days before taking 
                any action to terminate under subparagraph (A) 
                all easements entered into under this chapter, 
                the Secretary shall provide written notice of 
                such action to the Committee on Agriculture of 
                the House of Representatives and the Committee 
                on Agriculture, Nutrition, and Forestry of the 
                Senate.]

          CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

SEC. 1240. PURPOSES.

  The purposes of the environmental quality incentives program 
established by this chapter are [to--
          [(1) combine into a single program the functions of--
                  [(A) the agricultural conservation program 
                authorized by sections 7 and 8 of the Soil 
                Conservation and Domestic Allotment Act (16 
                U.S.C. 590g and 590h) (as in effect before the 
                amendments made by section 336(a)(1) of the 
                Federal Agriculture Improvement and Reform Act 
                of 1996);
                  [(B) the Great Plains conservation program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 
                U.S.C. 590p(b)) (as in effect before the 
                amendment made by section 336(b)(1) of the 
                Federal Agriculture Improvement and Reform Act 
                of 1996);
                  [(C) the water quality incentives program 
                established under chapter 2 (as in effect 
                before the amendment made by section 336(h) of 
                the Federal Agriculture Improvement and Reform 
                Act of 1996); and
                  [(D) the Colorado River Basin salinity 
                control program established under section 
                202(c) of the Colorado River Basin Salinity 
                Control Act (43 U.S.C. 1592(c)) (as in effect 
                before the amendment made by section 336(c)(1) 
                of the Federal Agriculture Improvement and 
                Reform Act of 1996); and
          [(2) carry out the single program in a manner that 
        maximizes environmental benefits per dollar expended, 
        and that provides--] provide--
          [(A)] (1) flexible technical and financial assistance 
        to [farmers and ranchers that face the most serious 
        threats to] producers to address environmental needs 
        and provide benefits to air, soil, water, and related 
        natural resources, including grazing lands, wetlands, 
        and wildlife habitat;
          [(B)] (2) assistance to [farmers and ranchers] 
        producers in complying with this title and Federal and 
        State environmental laws, and encourages environmental 
        enhancement;
          [(C)] (3) assistance to [farmers and ranchers] 
        producers in making beneficial, cost-effective changes 
        to cropping systems, grazing management, manure, 
        nutrient, pest, or irrigation management, land uses, or 
        other measures needed to conserve and improve soil, 
        water, and related natural resources; and
          [(D)] (4) for the consolidation and simplification of 
        the conservation planning process to reduce 
        administrative burdens on producers.

SEC. 1240A. DEFINITIONS.

  In this chapter:
          (1) Eligible land.--The term ``eligible land'' means 
        agricultural land (including cropland, rangeland, 
        pasture, non-industrial private forest land, and other 
        land on which crops or livestock are produced), 
        including agricultural land that the Secretary 
        determines [poses a serious threat to soil, water, or 
        related resources by reason of the soil types, terrain, 
        climatic, soil, topographic, flood, or saline 
        characteristics, or other factors or natural hazards.] 
        provides increased environmental benefits to air, soil, 
        water, or related resources.

           *       *       *       *       *       *       *

          (4) Producer.--The term ``producer'' means a person 
        who is engaged in livestock or agricultural production 
        (as defined by the Secretary), including non-industrial 
        private forestry.
          (5) Structural practice.--The term ``structural 
        practice'' means--
                  (A) the establishment on eligible land of a 
                site-specific animal waste management facility, 
                terrace, grassed waterway, contour grass strip, 
                filterstrip, tailwater pit, [permanent wildlife 
                habitat,] 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; and

           *       *       *       *       *       *       *

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

  (a) Establishment.--
          (1) In general.--During the 1996 through [2002] 2011 
        fiscal years, the Secretary shall provide [technical 
        assistance,] cost-share payments, incentive payments, 
        and education to producers, who enter into contracts 
        with the Secretary, through an environmental quality 
        incentives program in accordance with this chapter.

           *       *       *       *       *       *       *

  (b) Application and Term.--A contract between a producer and 
the Secretary under this chapter may--
          (1) * * *
          (2) have a term of [not less than 5, nor more than 
        10, years] not less than 1 year, nor more than 10 
        years, as determined appropriate by the Secretary, 
        depending on the practice or practices that are the 
        basis of the contract.
  (c) Structural Practices.--
          (1) Offer selection process.--The Secretary shall, to 
        the maximum extent practicable, establish a process for 
        selecting applications for financial assistance if 
        there are numerous applications for assistance for 
        structural practices that would provide substantially 
        the same level of environmental benefits. The process 
        shall be based on--
                  (A) * * *
                  [(B) the priorities established under this 
                subtitle and such other factors determined by 
                the Secretary that maximize environmental 
                benefits per dollar expended.]
                  (B) achieving the purposes established under 
                this subtitle.

           *       *       *       *       *       *       *

  (e) Cost-Share Payments[, Incentive Payments, and Technical 
Assistance].--
          (1) Cost-share payments.--
                  (A) * * *
                  [(B) Limitation.--A producer who owns or 
                operates a large confined livestock operation 
                (as defined by the Secretary) shall not be 
                eligible for cost-share payments to construct 
                an animal waste management facility.]
                  [(C)] (B) Other payments.--A producer shall 
                not be eligible for cost-share payments for 
                structural practices on eligible land under 
                this chapter if the producer receives cost-
                share payments or other benefits for the same 
                land under chapter 1 [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 a producer 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 producer to 
                receive technical assistance under other 
                authorities of law available to the Secretary.
                  [(C) Private sources.--The Secretary shall 
                ensure that the processes of writing and 
                developing proposals and plans for contracts 
                under this chapter, and of assisting in the 
                implementation of structural practices and land 
                management practices covered by the contracts, 
                are open to individuals in agribusiness, 
                including agricultural producers, 
                representatives from agricultural cooperatives, 
                agricultural input retail dealers, and 
                certified crop advisers. The requirements of 
                this subparagraph shall also apply to any other 
                conservation program of the Department of 
                Agriculture that provides incentive payments, 
                technical assistance, or cost-share payments.]
          (2) Technical assistance.--A producer who is 
        participating in the program under this subtitle shall 
        be eligible to receive technical assistance in 
        accordance with section 1243(d) to assist the producer 
        in writing and developing proposals and plans for 
        contracts under this chapter, and in the implementation 
        of structural practices and land management practices 
        covered by such contracts.
  (f) Farmland Conservation Incentive Payments.--
          (1) In general.--The Secretary may make incentive 
        payments in an amount and at a rate determined by the 
        Secretary to be necessary to encourage a producer to 
        perform multiple land management practices and to 
        promote the enhancement of soil, water, air, and 
        related resources.
          (2) Special rule.--In determining the amount and rate 
        of incentive payments, the Secretary may accord great 
        weight to those practices that include residue, 
        nutrient, pest, invasive species, and air quality 
        management.
  [(f)] (g) Modification or Termination of Contracts.--
          (1) * * *

           *       *       *       *       *       *       *

SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

  In providing technical assistance, cost-share payments, and 
incentive payments to producers, the Secretary shall accord a 
higher priority to assistance and payments that--
          [(1) are provided in conservation priority areas 
        established under section 1230(c);
          [(2) maximize environmental benefits per dollar 
        expended; or
          [(3) are provided in watersheds, regions, or 
        conservation priority areas in which State or local 
        governments have provided, or will provide, financial 
        or technical assistance to producers for the same 
        conservation or environmental purposes.]
          (1) aid producers in complying with this title and 
        Federal and State environmental laws, and encourage 
        environmental enhancement and conservation; and
          (2) maximize the beneficial usage of animal manure 
        and other similar soil amendments which improve soil 
        health, tilth, and water-holding capacity.

SEC. 1240D. DUTIES OF PRODUCERS.

  To receive technical assistance, cost-share payments, or 
incentive payments under this chapter, a producer shall agree--
          (1) * * *
          [(2) not to conduct any practices on the farm or 
        ranch that would tend to defeat the purposes of this 
        chapter;]
          [(3)] (2) on the violation of a term or condition of 
        the contract at any time the producer has control of 
        the land, to refund any cost-share or incentive payment 
        received with interest, and forfeit any future payments 
        under this chapter, as determined by the Secretary;
          [(4)] (3) on the transfer of the right and interest 
        of the producer in land subject to the contract, unless 
        the transferee of the right and interest agrees with 
        the Secretary to assume all obligations of the 
        contract, to refund all cost-share payments and 
        incentive payments received under this chapter, as 
        determined by the Secretary;
          [(5)] (4) to supply information as required by the 
        Secretary to determine compliance with the 
        environmental quality incentives program plan and 
        requirements of the program; and
          [(6)] (5) to comply with such additional provisions 
        as the Secretary determines are necessary to carry out 
        the environmental quality incentives program plan.

SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

  (a) In General.--To be eligible to enter into a contract 
under the environmental quality incentives program, an owner or 
producer of a livestock or agricultural operation must submit 
to the Secretary for approval a plan of operations [that 
incorporates such conservation practices, and is based on such 
principles, as the Secretary considers necessary to carry out 
the program, including a description of structural practices 
and land management practices to be implemented and the 
objectives to be met by the plan's implementation.] that 
provides or will continue to provide increased environmental 
benefits to air, soil, water, or related resources.

           *       *       *       *       *       *       *

SEC. 1240F. DUTIES OF THE SECRETARY.

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

SEC. 1240G. LIMITATION ON PAYMENTS.

  (a) In General.--The total amount of cost-share and incentive 
payments paid to a producer under this chapter may not exceed--
          (1) [$10,000] $50,000 for any fiscal year; or
          (2) [$50,000] $200,000 for any multiyear contract.
  (b) Exception to Annual Limit.--The Secretary may exceed the 
limitation on the annual amount of a payment under subsection 
(a)(1) on a case-by-case basis if the Secretary determines that 
a larger payment is--
          (1) essential to accomplish the land management 
        practice or structural practice for which the payment 
        is made; and
          (2) consistent with [the maximization of 
        environmental benefits per dollar expended and] the 
        purposes of this chapter specified in section 1240.
  [(c) Timing of Expenditures.--Expenditures under a contract 
entered into under this chapter during a fiscal year may not be 
made by the Secretary until the subsequent fiscal year.]

[SEC. 1240H. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY 
                    INCENTIVES PROGRAM.

  [(a) Interim Administration.--
          [(1) In general.--During the period beginning on the 
        date of enactment of this section and ending on the 
        termination date provided under paragraph (2), to 
        ensure that technical assistance, cost-share payments, 
        and incentive payments continue to be administered in 
        an orderly manner until such time as assistance can be 
        provided through final regulations issued to implement 
        the environmental quality incentives program 
        established under this chapter, the Secretary shall 
        continue to--
                  [(A) provide technical assistance, cost-share 
                payments, and incentive payments under the 
                terms and conditions of the agricultural 
                conservation program, the Great Plains 
                conservation program, the water quality 
                incentives program, and the Colorado River 
                Basin salinity control program, to the extent 
                the terms and conditions of the program are 
                consistent with the environmental quality 
                incentives program; and
                  [(B) use for those purposes--
                          [(i) any funds remaining available 
                        for the agricultural conservation 
                        program, the Great Plains conservation 
                        program, the water quality incentives 
                        program, and the Colorado River Basin 
                        salinity control program; and
                          [(ii) as the Secretary determines to 
                        be necessary, any funds authorized to 
                        be used to carry out the environmental 
                        quality incentives program.
          [(2) Termination of authority.--The authority of the 
        Secretary to carry out paragraph (1) shall terminate on 
        the date that is 180 days after the date of enactment 
        of this section.
  [(b) Permanent Administration.--Effective beginning on the 
termination date provided under subsection (a)(2), the 
Secretary shall provide technical assistance, cost-share 
payments, and incentive payments for structural practices and 
land management practices related to crop and livestock 
production in accordance with final regulations issued to carry 
out the environmental quality incentives program.]

SEC. 1240H. GROUNDWATER CONSERVATION.

  The Secretary shall use $60,000,000 of the funds of the 
Commodity Credit Corporation in each of fiscal years 2002 
through 2011 to provide cost-share payments and low-interest 
loans to encourage groundwater conservation, including 
irrigation system improvement, and to provide incentive 
payments for capping wells, reducing use of water for 
irrigation, and switching from irrigation to dryland farming.

                  [CHAPTER 5--CONSERVATION FARM OPTION

[SEC. 1240M. CONSERVATION FARM OPTION.

  [(a) In General.--The Secretary shall establish conservation 
farm option pilot programs for producers of wheat, feed grains, 
cotton, and rice.
  [(b) Eligible Owners and Producers.--An owner or producer 
with a farm that has contract acreage enrolled in the 
agricultural market transition program established under the 
Agricultural Market Transition Act shall be eligible to 
participate in the conservation farm option offered under a 
pilot program under subsection (a) if the owner or producer 
meets the conditions established under section (e).
  [(c) Purposes.--The purposes of the conservation farm option 
pilot programs shall include--
          [(1) conservation of soil, water, and related 
        resources;
          [(2) water quality protection or improvement;
          [(3) wetland restoration, protection, and creation;
          [(4) wildlife habitat development and protection; or
          [(5) other similar conservation purposes.
  [(d) Conservation Farm Plan.--
          [(1) In general.--To be eligible to enter into a 
        conservation farm option contract, an owner or producer 
        must prepare and submit to the Secretary, for approval, 
        a conservation farm plan that shall become a part of 
        the conservation farm option contract.
          [(2) Requirements.--A conservation farm plan shall--
                  [(A) describe the resource-conserving crop 
                rotations, and all other conservation 
                practices, to be implemented and maintained on 
                the acreage that is subject to contract during 
                the contract period;
                  [(B) contain a schedule for the 
                implementation and maintenance of the practices 
                described in the conservation farm plan;
                  [(C) comply with highly erodible land and 
                wetland conservation requirements of this 
                title; and
                  [(D) contain such other terms as the 
                Secretary may require.
  [(e) Contracts.--
          [(1) In general.--On approval of a conservation farm 
        plan, the Secretary may enter into a contract with the 
        owner or producer that specifies the acres being 
        enrolled and the practices being adopted.
          [(2) Duration of contract.--The contract shall be for 
        a period of 10 years. The contract may be renewed for a 
        period of not to exceed 5 years on mutual agreement of 
        the Secretary and the owner or producer.
          [(3) Consideration.--In exchange for payments under 
        this subsection, the owner or producer shall not 
        participate in and shall forgo payments under--
                  [(A) the conservation reserve program 
                established under subchapter B of chapter 1;
                  [(B) the wetlands reserve program established 
                under subchapter C of chapter 1; and
                  [(C) the environmental quality incentives 
                program established under chapter 4.
          [(4) Owner or producer responsibilities under the 
        agreement.--Under the terms of the contract entered 
        into under this section, an owner or producer shall 
        agree to--
                  [(A) actively comply with the terms and 
                conditions of the approved conservation farm 
                plan;
                  [(B) keep such records as the Secretary may 
                reasonably require for purposes of evaluation 
                of the implementation of the conservation farm 
                plan; and
                  [(C) not engage in any activity that would 
                defeat the purposes of the conservation farm 
                option pilot program.
          [(5) Payments.--The Secretary shall offer an owner or 
        producer annual payments under the contract that are 
        equivalent to the payments the owner or producer would 
        have received under the conservation reserve program, 
        the wetlands reserve program, and the environmental 
        quality incentives program.
          [(6) Balance of benefits.--The Secretary shall not 
        permit an owner or producer to terminate a conservation 
        reserve program contract and enter a conservation farm 
        option contract if the Secretary determines that such 
        action will reduce net environmental benefits.
  [(f) Secretarial Determinations.--
          [(1) Acreage estimates.--Prior to each year during 
        which the Secretary intends to offer conservation 
        reserve program contracts, the Secretary shall estimate 
        the number of acres that--
                  [(A) will be retired under the conservation 
                farm option under the terms and conditions the 
                Secretary intends to offer for that program; 
                and
                  [(B) would be retired under the conservation 
                reserve program if the conservation farm option 
                were not available.
          [(2) Total land retirement.--The Secretary shall 
        announce a number of acres to be enrolled in the 
        conservation reserve program that will result in a 
        total number of acres retired under the conservation 
        reserve program and the conservation farm option that 
        does not exceed the amount estimated under paragraph 
        (1)(B) for the current or future years.
          [(3) Limitation.--The Secretary shall not enroll 
        additional conservation reserve program contracts to 
        offset the land retired under the conservation farm 
        option.
  [(g) Commodity Credit Corporation.--The Secretary shall use 
the funds, authorities, and facilities of the Commodity Credit 
Corporation to carry out this subsection.
  [(h) Funding.--Of the funds of the Commodity Credit 
Corporation, the Corporation shall make available to carry out 
this section--
          [(1) $7,500,000 for fiscal year 1997;
          [(2) $15,000,000 for fiscal year 1998;
          [(3) $25,000,000 for fiscal year 1999;
          [(4) $37,500,000 for fiscal year 2000;
          [(5) $50,000,000 for fiscal year 2001; and
          [(6) $62,500,000 for fiscal year 2002.]

                 Subtitle E--Funding and Administration

SEC. 1241. FUNDING.

  (a) Mandatory Expenses.--For each of fiscal years 1996 
through [2002] 2011, the Secretary shall use the funds of the 
Commodity Credit Corporation to carry out the programs 
authorized by--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Environmental Quality Incentives Program.--
          (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available 
        [$130,000,000 for fiscal year 1996, and $200,000,000 
        for each of fiscal years 1997 through 2002] 
        $200,000,000 for fiscal year 2001, and $1,200,000,000 
        for each of fiscal years 2002 through 2011, for 
        providing [technical assistance,] cost-share payments, 
        incentive payments, and education under the 
        environmental quality incentives program under chapter 
        4 of subtitle D.
          (2) Livestock production.--For each of fiscal years 
        1996 through [2002] 2011, 50 percent of the funding 
        available for [technical assistance, cost-share 
        payments, incentive payments, and education] cost-share 
        payments and incentive payments under the environmental 
        quality incentives program shall be targeted at 
        practices relating to livestock production.

SEC. 1242. USE OF OTHER AGENCIES.

  [(a) Committees.--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)).]
  (a) Principal Agency.--The Secretary shall use the Farm 
Service Agency in carrying out subtitles B and C, and 
subchapter B of chapter 1, and chapters 2 and 4, of subtitle D.

           *       *       *       *       *       *       *

SEC. 1243. ADMINISTRATION.

  (a) * * *

           *       *       *       *       *       *       *

  (b) Acreage Limitation.--
          (1) * * *
          (2) Exception.--The Secretary may exceed the 
        limitations in paragraph (1) if the Secretary 
        determines [that--
                  [(A) the action would not adversely affect 
                the local economy of a county; and
                  [(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.] that the 
                action would not adversely affect the local 
                economy of the county.
          (3) Shelterbelts and windbreaks.--The limitations 
        established under this subsection shall not apply to 
        cropland that is subject to an easement under chapter 1 
        [or 3] of subtitle D that is used for the establishment 
        of shelterbelts and windbreaks.

           *       *       *       *       *       *       *

  [(d) Provision of Technical Assistance by Other Sources.--In 
the preparation and application of a conservation compliance 
plan under subtitle B or similar plan required as a condition 
for assistance from the Department of Agriculture, the 
Secretary shall permit persons to secure technical assistance 
from approved sources, as determined by the Secretary, other 
than the Natural Resources Conservation Service. If the 
Secretary rejects a technical determination made by such a 
source, the basis of the Secretary's determination must be 
supported by documented evidence.]
  (d) Rules Governing Provision of Technical Assistance.--
          (1) In general.--The Secretary shall provide 
        technical assistance under this title to a producer 
        eligible for such assistance, by providing the 
        assistance directly or, at the option of the producer, 
        through an approved third party if available.
          (2) Amount.--The Secretary shall determine the amount 
        of technical assistance to be provided to a producer 
        under this title, and on making the determination, 
        shall make the necessary funds available to--
                  (A) if the producer has selected an approved 
                third party to provide the assistance, such 
                approved third party; or
                  (B) otherwise, the Natural Resources 
                Conservation Service.
          (3) Funding source; limitation.--
                  (A) Use of ccc funds.--Subject to 
                subparagraph (B), the Secretary may use not 
                more than $100,000,000 of funds of the 
                Commodity Credit Corporation for each of fiscal 
                years 2002 through 2011 to carry out this 
                subsection.
                  (B) Limitation.--The total amount expended 
                under this subsection for fiscal years 2002 
                through 2011 may not exceed $850,000,000.
          (4) Certification of third-party providers.--
                  (A) In general.--Not later than 6 months 
                after the date of the enactment of this Act, 
                the Secretary of Agriculture shall, by 
                regulation, establish a system for approving 
                persons to provide technical assistance 
                pursuant to this title. In the system, the 
                Secretary shall give priority to a person who 
                has a memorandum of understanding regarding the 
                provision of technical assistance in place with 
                the Secretary before the date of the enactment 
                of this subsection.
                  (B) Expertise required.--In prescribing such 
                regulations, the Secretary shall ensure that 
                persons with expertise in the technical aspects 
                of conservation planning, watershed planning, 
                environmental engineering, including commercial 
                entities, nonprofit entities, State or local 
                governments or agencies, and other Federal 
                agencies, are eligible to become approved 
                providers of such technical assistance.

           *       *       *       *       *       *       *

SEC. [1230A.] 1244. GOOD FAITH RELIANCE.

  (a) In General.--Except as provided in subsection (d) and 
notwithstanding any other provision of this [chapter] title, 
the Secretary shall provide equitable relief to an owner or 
operator that has entered into a contract under this [chapter] 
title, and that is subsequently determined to be in violation 
of the contract, if the owner or operator in attempting to 
comply with the terms of the contract and enrollment 
requirements took actions in good faith reliance on the action 
or advice of an authorized representative of the Secretary.
  (b) Types of Relief.--The Secretary shall--
          (1) to the extent the Secretary determines that an 
        owner or operator has been injured by good faith 
        reliance described in subsection (a), allow the owner 
        or operator to do any one or more of the following--
                  (A) to retain payments received under the 
                contract;
                  (B) to continue to receive payments under the 
                contract;
                  (C) to keep all or part of the land covered 
                by the contract enrolled in the applicable 
                program under this [chapter] title;
                  (D) to reenroll all or part of the land 
                covered by the contract in the applicable 
                program under this [chapter] title; or

           *       *       *       *       *       *       *

Subtitle F--Other Conservation Provisions

           *       *       *       *       *       *       *

[SEC. 1256. TREE PLANTING INITIATIVE.

  [(a) Maintenance, Afforestation, and Reforestation of Forest 
Lands.--
          [(1) Policy.--It is the policy of the United States 
        to--
                  [(A) promote the retention and management of 
                lands currently in forest cover as forested 
                lands;
                  [(B) provide for the reforestation of 
                Federal, State, and private nonindustrial 
                forest lands following timber harvest or loss 
                of cover due to fire, insect damage, disease or 
                damaging weather;
                  [(C) encourage the reforestation of 
                previously forested lands and the afforestation 
                of marginal agricultural lands; and
                  [(D) promote the planting of trees and the 
                proper management of existing forest lands to 
                reduce soil erosion, improve water quality, 
                enhance fish and wildlife habitat, and provide 
                for the sustained production of the commodity 
                and noncommodity resources that these lands can 
                provide to meet the Nation's needs.
          [(2) Implementation of policy.--The Secretary is 
        encouraged to use the following programs to accomplish 
        the policy identified in subsection (a)(1):
                  [(A) The conservation reserve established 
                under subchapter B of chapter 1.
                  [(B) The agricultural conservation program 
                authorized by sections 7 through 15, 16(a), 
                16(f), and 17 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590g through 
                590o, 590p(a), 590p(f), and 590(g) and sections 
                1001 through 1008 and 1010 of the Agricultural 
                Act of 1970 (16 U.S.C. 1501 through 1508 and 
                1510).
                  [(C) The Cooperative Forestry Assistance Act 
                of 1978 (16 U.S.C. 2103).
                  [(D) The provisions of title XII of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990.
  [(b) Agreements With State Forestry Agencies.--The Secretary 
shall encourage owners and operators of cropland who enter into 
agreements in accordance with this section to enlist the 
cooperative assistance of the State Forester or equivalent 
State official in obtaining technical and financial assistance 
for tree planting and maintenance activities in accordance with 
the provisions of title XII of the Food, Agriculture, 
Conservation, and Trade Act of 1990.]

           *       *       *       *       *       *       *

        TITLE XIV--AGRICUTURAL RESEARCH, EXTENSION, AND TEACHING

Subtitle A--General Provisions

           *       *       *       *       *       *       *

                       MARKET EXPANSION RESEARCH

  Sec. 1436. (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *

           *       *       *       *       *       *       *

  (C) To the extent requests are made for matching funds under 
such program, the total amount of funds used by the Secretary 
to carry out the program under this subsection may not be less 
than $10,000,000 for each of the fiscal years ending September 
30, 1986, through September 30, [1990] 2011.

           *       *       *       *       *       *       *

TITLE XVII--RELATED AND MISCELLANEOUS MATTERS

           *       *       *       *       *       *       *

Subtitle G--Miscellaneous

           *       *       *       *       *       *       *

                     CONFIDENTIALITY OF INFORMATION

    Sec. 1770. (a) * * *

           *       *       *       *       *       *       *

    (d) For purposes of this section, a provision of law 
referred to in this subsection means--
          (1) * * *

           *       *       *       *       *       *       *

          (9) section 2 of the joint resolution entitled 
        ``Joint resolution relating to the publication of 
        economic and social statistics for Americans of Spanish 
        origin or descent'', approved June 16, 1976 (15 U.S.C. 
        1516a); [or]
          (10) section 3(e) of the Forest and Rangeland 
        Renewable Resources Research Act of 1978 (16 U.S.C. 
        1642(e));
          (11) section 2 of the Census of Agriculture Act of 
        1997[.] ; or
          (12) title XII of this Act.
  (e)  [Information Provided to Secretary of Commerce] 
Exceptions.--This section shall not prohibit the release of 
information under section 2(f)(2) of the Census of Agriculture 
Act of 1997, or as necessary to carry out a program under title 
XII of this Act as determined by the Secretary.

           *       *       *       *       *       *       *

                              ----------                              

FLUID MILK PRODUCTION ACT OF 1990

           *       *       *       *       *       *       *

TITLE XIX--AGRICULTURAL PROMOTION

           *       *       *       *       *       *       *

Subtitle H--Processor-Funded Milk Promotion Program

           *       *       *       *       *       *       *

SEC. 1999C. DEFINITIONS.

  As used in this subtitle:
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Fluid milk product.--The term ``fluid milk 
        product''--
                  [(A) means any of the following products in 
                fluid or frozen form: milk, skim milk, lowfat 
                milk, milk drinks, buttermilk, filled milk, and 
                milkshake and ice milk mixes containing less 
                than 20 percent total solids, including any 
                such products that are flavored, cultured, 
                modified with added nonfat milk solids, 
                concentrated (if in a consumer-type package), 
                or reconstituted; and
                  [(B) does not include evaporated or condensed 
                milk (plain or sweetened), evaporated or 
                condensed skim milk (plain or sweetened), 
                formulas specially prepared for infant feeding 
                or dietary use that are packaged in 
                hermetically sealed glass or all-metal 
                containers, any product that contains by weight 
                less than 6.5 percent nonfat milk solids, and 
                whey.]
          (3) Fluid milk product.--The term ``fluid milk 
        product'' has the meaning given such term--
                  (A) in section 1000.15 of title 7, Code of 
                Federal Regulations, subject to such amendments 
                as may be made from time to time; or
                  (B) in any successor regulation providing a 
                definition of such term that is promulgated 
                pursuant to the Agricultural Adjustment Act (7 
                U.S.C. 601 et seq.), reenacted with amendments 
                by the Agricultural Marketing Agreement Act of 
                1937.
          (4) Fluid milk processor.--The term ``fluid milk 
        processor'' means any person who processes and markets 
        commercially more than [500,000] 3,000,000 pounds of 
        fluid milk products in consumer-type packages per 
        month.

           *       *       *       *       *       *       *

SEC. 1999O. SUSPENSION OR TERMINATION OF ORDERS.

  [(a) Termination of Order.--Any order effective under this 
subtitle shall be terminated December 31, 2002. The Secretary 
shall--
          [(1) terminate the collection of assessments under 
        the order upon such date; and
          [(2) terminate activities under the order in an 
        orderly manner as soon as practicable after such date.]
  [(b)] (a) Suspension or Termination by Secretary.--The 
Secretary shall, whenever the Secretary finds that the order or 
any provision of the order obstructs or does not tend to 
effectuate the declared policy of this subtitle, terminate or 
suspend the operation of the order or provision.
  [(c)] (b) Other Referenda.--
          (1) * * *

           *       *       *       *       *       *       *

                              ----------                              

         SECTION 273 OF THE AGRICULTURAL MARKETING ACT OF 1946

SEC. 273. MANDATORY REPORTING FOR DAIRY PRODUCTS.

  (a) * * *
  (b) Requirements.--
          (1) In general.--In establishing the program, the 
        Secretary shall only--
                  (A) * * *
                  (B) require each manufacturer and other 
                person storing dairy products and substantially 
                identical products designated by the Secretary 
                to report to the Secretary, at a periodic 
                interval determined by the Secretary, 
                information on the quantity of dairy products 
                and such substantially identical products 
                stored.

           *       *       *       *       *       *       *

                              ----------                              

               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 on imported dairy products) 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.] products. 
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 or the right of any 
person to import dairy products.

                              DEFINITIONS

  Sec. 111. As used in this subtitle--
          (a) * * *

           *       *       *       *       *       *       *

          (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[.];
          (m) the term ``imported dairy product'' means any 
        dairy product that is imported into the United States, 
        including dairy products imported into the United 
        States in the form of--
                  (1) milk, cream, and fresh and dried dairy 
                products;
                  (2) butter and butterfat mixtures;
                  (3) cheese; and
                  (4) casein and mixtures;
          (n) the term ``importer'' means a person that imports 
        an imported dairy product into the United States; and
          (o) the term ``Customs'' means the United States 
        Customs Service.

           *       *       *       *       *       *       *

                        REQUIRED TERMS IN ORDERS

  Sec. 113. Any order issued under this subtitle shall contain 
terms and conditions as follows:
  (a) * * *
  (b) National Dairy Promotion and Research Board.--
          (1) 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.
          [Members] (2) Except as provided in paragraph (6), 
        the 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.
          (3) 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.
          (4) In determining geographic representation, whole 
        States shall be considered as a unit.
          (5) A region may be represented by more than one 
        director and a region may be made up of more than one 
        State.
          (6) Importers.--
                  (A) Representation.--The Secretary shall 
                appoint not more than 2 members who represent 
                importers of dairy products and are subject to 
                assessments under the order, to reflect the 
                proportion of domestic production and imports 
                supplying the United States market, which shall 
                be based on the Secretary's determination of 
                the average volume of domestic production of 
                dairy products proportionate to the average 
                volume of imports of dairy products in the 
                United States over the previous three years.
                  (B) Additional members; nominations.--The 
                members appointed under this paragraph--
                          (i) shall be in addition to the total 
                        number of members appointed under 
                        paragraph (2); and
                          (ii) shall be appointed from 
                        nominations submitted by importers 
                        under such procedures as the Secretary 
                        determines to be appropriate.
          (7) 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.
          (8) 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.
          (9) The executive committee shall have such duties 
        and powers as are conferred upon it by the Board.
          (10) 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.

           *       *       *       *       *       *       *

  (g) Assessments.--
          (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.
          (2) 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.
          (3) The rate of assessment prescribed by the order 
        shall be 15 cents per hundredweight of milk for 
        commercial use or the equivalent thereof.
          (4) 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.
          (5) 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.
          (6) Importers.--
                  (A) In general.--The order shall provide that 
                each importer of imported dairy products shall 
                pay an assessment to the Board in the manner 
                prescribed by the order.
                  (B) Time for payment.--The assessment on 
                imported dairy products shall be paid by the 
                importer to Customs at the time of the entry of 
                the products into the United States and shall 
                be remitted by Customs to the Board. For 
                purposes of this subparagraph, entry of the 
                products into the United States shall be deemed 
                to have occurred when the products are released 
                from custody of Customs and introduced into the 
                stream of commerce within the United States. 
                Importers include persons who hold title to 
                foreign-produced dairy products immediately 
                upon release by Customs, as well as persons who 
                act on behalf of others, as agents, brokers, or 
                consignees, to secure the release of dairy 
                products from Customs and the introduction of 
                the released dairy products into the stream of 
                commerce.
                  (C) Rate.--The rate of assessment on imported 
                dairy products shall be determined in the same 
                manner as the rate of assessment per 
                hundredweight or the equivalent of milk.
                  (D) Value of products.--For the purpose of 
                determining the assessment on imported dairy 
                products under subparagraph (C), the value to 
                be placed on imported dairy products shall be 
                established by the Secretary in a fair and 
                equitable manner.
                  (E) Use of assessments on imported dairy.--
                Assessments collected on imported dairy 
                products shall not be used for foreign market 
                promotion.

           *       *       *       *       *       *       *

  (k) The order shall require that each [person receiving] 
importer of imported dairy products, each person receiving milk 
from farmers for commercial use, 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 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 
importers voting in the referendum (who have been engaged in 
the importation of dairy products during the same 
representative period, as determined by the Secretary). and 
shall terminate the order in an orderly manner as soon as 
practicable after such determination.

           *       *       *       *       *       *       *

                              ----------                              

AGRICULTURAL ADJUSTMENT ACT OF 1938

           *       *       *       *       *       *       *

   TITLE III--LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING 
QUOTAS, AND MARKETING CERTIFICATES

           *       *       *       *       *       *       *

Subtitle B--Marketing Quotas

           *       *       *       *       *       *       *

                  [PART VI--MARKETING QUOTAS--PEANUTS

                         [LEGISLATIVE FINDINGS

  [Sec. 357. The production, marketing, and processing of 
peanuts and peanut products employs a large number of persons 
and is of national interest. The movement of peanuts from 
producer to consumer is preponderantly in interstate and 
foreign commerce, and, owing to causes beyond their control, 
the farmers producing such commodity and the persons engaged in 
the marketing and processing thereof are unable to regulate 
effectively the orderly marketing of the commodity. As the 
quantity of peanuts marketed in the channels of interstate and 
foreign commerce increases above the quantity of peanuts needed 
for cleaning and shelling, the prices at which all peanuts are 
marketed are depressed to low levels. These low prices tend to 
cause the quantity of peanuts available for marketing in later 
years to be less than normal, which in turn tends to cause 
relatively high prices. This fluctuation of prices and 
marketings of peanuts creates an unstable and chaotic condition 
in the marketing of peanuts for cleaning and shelling and for 
crushing for oil in the channels of interstate and foreign 
commerce. Since these unstable and chaotic conditions have 
existed for a period of years and are likely, without proper 
regulation, to continue to exist, it is imperative that the 
marketing of peanuts for cleaning and shelling and for crushing 
for oil in interstate and foreign commerce be regulated in 
order to protect producers, handlers, processors, and 
consumers.

                           [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 provisions of 
this section, the Secretary shall proclaim a national marketing 
quota with respect to the crop of peanuts produced in the 
calendar year 1941 equal to the minimum quota provided for said 
year in subsection (a) of this section and shall provide for 
the holding of a referendum on such quota within thirty days 
after April 3, 1941, and the State and farm acreage allotments 
established under the 1941 crop of peanuts.
  [(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 
                    PEANUTS.

  [(a) National Poundage Quotas.--
          [(1) Establishment.--The national poundage quota for 
        peanuts for each 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 use (except seed) and related uses.
          [(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, 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 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;
                          [(ii) if the poundage quota 
                        apportioned to a State under subsection 
                        (a)(3) for any such marketing year is 
                        larger than the quota for the 
                        immediately preceding marketing year, 
                        for each other farm on which peanuts 
                        were produced for marketing in at least 
                        2 of the 3 immediately preceding crop 
                        years, as determined by the Secretary; 
                        and
                          [(iii) as approved and determined by 
                        the Secretary under section 358c, for 
                        each farm on which peanuts are produced 
                        in connection with experimental and 
                        research programs.
                  [(B) Quantity.--The farm poundage quota for 
                each 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 
                any increases resulting from the allocation of 
                quotas voluntarily released for 1 year under 
                paragraph (7). The farm poundage quota, if any, 
                for each marketing year 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 for quota.--
                Effective beginning with the 1998 crop, the 
                Secretary shall not establish a farm poundage 
                quota under subparagraph (A) for a farm owned 
                or controlled by--
                          [(i) a municipality, airport 
                        authority, school, college, refuge, or 
                        other public entity (other than a 
                        university used for research purposes); 
                        or
                          [(ii) 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 
                (D), if the poundage quota apportioned to a 
                State under subsection (a)(3) for any 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) 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 and determined 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 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.
                  [(D) Special rule on tenant's share of 
                increased quota.--Subject to terms and 
                conditions prescribed by the Secretary, on 
                farms that were leased to a tenant for peanut 
                production, the tenant shall share equally with 
                the owner of the farm in that percentage of the 
                quota referred to in subparagraph (A) and 
                otherwise allocated to the farm as the result 
                of the tenant's production on the farm of 
                additional peanuts. Not later than April 1 of 
                each year or as soon as practicable, the 
                tenant's share of any such quota shall be 
                allocated to a farm within the county owned by 
                the tenant or sold by the tenant to the owner 
                of any farm within the county and permanently 
                transferred to that farm. Any quota not so 
                disposed of as provided in this subparagraph 
                shall be allocated to other quota farms in the 
                State under paragraph (6) as part of the quota 
                reduced from farms in the State due to the 
                failure to produce the quota.
                  [(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 
                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 any 
                increase resulting from the allocation of 
                quotas voluntarily released for 1 year under 
                paragraph (7).
          [(4) Quota considered produced.--For purposes of this 
        subsection, the farm poundage quota shall be considered 
        produced on a farm if--
                  [(A) the farm poundage quota was not produced 
                on the farm because of drought, flood, or any 
                other natural disaster, or any other condition 
                beyond the control of the producer, as 
                determined by the Secretary;
                  [(B) the farm poundage quota for the farm was 
                released voluntarily under paragraph (7) for 
                only 1 of the 3 marketing years immediately 
                preceding the marketing year for which the 
                determination is being made; or
                  [(C) the farm poundage quota was leased to 
                another owner or operator of a farm within the 
                same county for transfer to such farm for only 
                1 of the 3 marketing years immediately 
                preceding the marketing year for which the 
                determination is being made.
          [(5) Quota permanently released.--Notwithstanding any 
        other provision of law--
                  [(A) the farm poundage quota established for 
                a farm under this subsection, or any part of 
                the quota, may be permanently released by the 
                owner of the farm, or the operator with the 
                permission of the owner; and
                  [(B) the poundage quota for the farm for 
                which the quota is released shall be adjusted 
                downward to reflect the quota that is so 
                released.
          [(6) Allocation of quotas reduced or released.--
                  [(A) In general.--Except as provided in 
                subparagraphs (B) and (C), the total quantity 
                of the farm poundage quotas reduced or 
                voluntarily released from farms in a State for 
                any marketing year under paragraphs (3) and (5) 
                shall be allocated, as the Secretary may by 
                regulation prescribe, to other farms in the 
                State on which peanuts were produced in at 
                least 2 of the 3 crop years immediately 
                preceding the year for which the allocation is 
                being made.
                  [(B) Set-aside for farms with no quota.--Not 
                more than 25 percent of the total amount of 
                farm poundage quota to be allocated in the 
                State under subparagraph (A) shall be allocated 
                to farms in the State for which no farm 
                poundage quota was established for the 
                immediately preceding year's crop. The 
                allocation to any such farm shall not exceed 
                the average farm production of peanuts for the 
                3 immediately preceding years during which 
                peanuts were produced on the farm.
                  [(C) Allocation of quotas reduced or released 
                in texas.--
                          [(i) In general.--In Texas, and 
                        subject to terms and conditions 
                        prescribed by the Secretary, beginning 
                        with the 1991 marketing year, the total 
                        quantity of the farm poundage quota, 
                        except the percentage allocated to new 
                        farms under subparagraph (B), shall be 
                        allocated to other farms having 
                        poundage quotas for the 1990 marketing 
                        year in all counties 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 county for 
                        the 1988 crop, except that the total 
                        quota allocated to any county under 
                        this subparagraph and paragraph (2)(B) 
                        shall not be increased by more than 100 
                        percent of the basic quota allocated 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 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 farm poundage quota 
                        available for allocation under this 
                        subparagraph shall be allocated 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 
                                amount 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.
          [(7) Quota temporarily released.--
                  [(A) In general.--The farm poundage quota, or 
                any portion thereof, established for a farm for 
                a marketing year may be voluntarily released to 
                the Secretary to the extent that the quota, or 
                any part thereof, will not be produced on the 
                farm for the marketing year. Any farm poundage 
                quota so released in a State shall be allocated 
                to other farms in the State on such basis as 
                the Secretary may by regulation prescribe.
                  [(B) Effective period.--Except as otherwise 
                provided in this section, any adjustment in the 
                farm poundage quota for a farm under 
                subparagraph (A) shall be effective only for 
                the marketing year for which it is made and 
                shall not be taken into consideration in 
                establishing a farm poundage quota for the farm 
                from which the quota was released for any 
                subsequent marketing year.
          [(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.
  [(c) Farm Yields.--
          [(1) In general.--For each farm for which a farm 
        poundage quota is established under subsection (b), and 
        when necessary for purposes of this Act, a farm yield 
        of peanuts shall be determined for each such farm.
          [(2) Quantity.--The yield shall be equal to the 
        average of the actual yield per acre on the farm for 
        each of the 3 crop years in which yields were highest 
        on the farm out of the 5 crop years 1973 through 1977.
          [(3) Appraised yields.--If peanuts were not produced 
        on the farm in at least 3 years during the 5-year 
        period or there was a substantial change in the 
        operation of the farm during the period (including a 
        change in operator, lessee who is an operator, or 
        irrigation practices), the Secretary shall have a yield 
        appraised for the farm. The appraised yield shall be 
        that quantity determined to be fair and reasonable on 
        the basis of yields established for similar farms that 
        are located in the area of the farm and on which 
        peanuts were produced, taking into consideration land, 
        labor, and equipment available for the production of 
        peanuts, crop rotation practices, soil and water, and 
        other relevant factors.
  [(d) Referendum Respecting Poundage Quotas.--
          [(1) In general.--Not later than December 15 of each 
        calendar year, the Secretary shall conduct a referendum 
        of producers engaged in the production of quota peanuts 
        in the calendar year in which the referendum is held to 
        determine whether the producers are in favor of or 
        opposed to poundage quotas with respect to the crops of 
        peanuts produced in the 5 calendar years immediately 
        following the year in which the referendum is held, 
        except that, if as many as two-thirds of the producers 
        voting in any referendum vote in favor of poundage 
        quotas, no referendum shall be held with respect to 
        quotas for the second, third, fourth, and fifth years 
        of the period.
          [(2) Proclamation.--The Secretary shall proclaim the 
        result of the referendum within 30 days after the date 
        on which it is held.
          [(3) Vote against quotas.--If more than one-third of 
        the producers voting in the referendum vote against 
        quotas, the Secretary also shall proclaim that poundage 
        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.
  [(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) Additional peanuts.--The term ``additional 
        peanuts'' means, for any marketing year--
                  [(A) any peanuts that are marketed from a 
                farm for which a farm poundage quota has been 
                established and that are in excess of the 
                marketings of quota peanuts from the farm for 
                the year; and
                  [(B) all peanuts marketed from a farm for 
                which no farm poundage quota has been 
                established in accordance with subsection (b).
          [(2) Crushing.--The term ``crushing'' means the 
        processing of peanuts to extract oil for food uses and 
        meal for feed uses, or the processing of peanuts by 
        crushing or otherwise when authorized by the Secretary.
          [(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.
          [(4) Quota peanuts.--The term ``quota peanuts'' 
        means, for any marketing year, any peanuts produced on 
        a farm having a farm poundage quota, as determined in 
        subsection (b), that--
                  [(A) are eligible for domestic edible use as 
                determined by the Secretary;
                  [(B) are marketed or considered marketed from 
                a farm; and
                  [(C) do not exceed the farm poundage quota of 
                the farm for the year.
  [(f) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 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 
                    PEANUTS.

  [(a) In General.--
          [(1) Sale and lease authority.--
                  [(A) Sale or lease within same state.--
                Subject to subparagraph (B) and such terms and 
                conditions as the Secretary may prescribe, the 
                owner, or operator with the permission of the 
                owner, of a farm in a State for which a farm 
                poundage quota has been established may sell or 
                lease all or any part of the poundage quota to 
                any other owner or operator of a farm within 
                the same State for transfer to the farm. 
                However, any such lease of poundage quota may 
                be entered into in the fall or after the normal 
                planting season--
                          [(i) if not less than 90 percent of 
                        the basic quota (the farm quota 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
                          [(ii) under such terms and conditions 
                        as the Secretary may by regulation 
                        prescribe.
                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.
                  [(B) Percentage limitations on spring 
                transfers.--Spring transfers under subparagraph 
                (A) by sale or lease of a quota for farms in a 
                county to any owner or operator of a farm 
                outside the county within the same State shall 
                not exceed the applicable percentage specified 
                in this subparagraph of the quotas of all farms 
                in the originating county (as of January 1, 
                1996) for the crop year in which the transfer 
                is made, plus the total amount of quotas 
                eligible for transfer from the originating 
                county in the preceding crop year that were not 
                transferred in that year or that were 
                transferred through an expired lease. However, 
                not more than an aggregate of 40 percent of the 
                total poundage quota within a county (as of 
                January 1, 1996) may be transferred outside of 
                the county. Cumulative unexpired transfers 
                outside of a county may not exceed for a crop 
                year the following:
                          [(i) For the 1996 crop, 15 percent.
                          [(ii) For the 1997 crop, 25 percent.
                          [(iii) For the 1998 crop, 30 percent.
                          [(iv) For the 1999 crop, 35 percent.
                          [(v) For the 2000 and subsequent 
                        crops, not more than an aggregate of 40 
                        percent of the total poundage quota 
                        within the county as of January 1, 
                        1996.
                  [(C) Clarification regarding fall 
                transfers.--The limitation in subparagraph (B) 
                does not apply to 1-year fall transfers, which 
                in all cases may be made to any farm in the 
                same State.
                  [(D) Effect of transfer.--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.
          [(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 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 
        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.
          [(4) Transfers in counties with small quotas.--
        Notwithstanding paragraphs (1) and (2), in the case of 
        any county in a State for which the poundage quota 
        allocated to the county was less than 100,000 pounds 
        for the preceding year's crop, all or any part of a 
        farm poundage quota may be transferred by sale or lease 
        or otherwise from a farm in the county to a farm in 
        another county in the same State.
  [(b) Conditions.--Transfers (including transfer by sale or 
lease) of farm poundage quotas under this section shall be 
subject to all of the following conditions:
          [(1) Lienholders.--No transfer of the farm poundage 
        quota from a farm subject to a mortgage or other lien 
        shall be permitted unless the transfer is agreed to by 
        the lienholders.
          [(2) Tillable cropland.--No transfer of the farm 
        poundage quota shall be permitted if the county 
        committee established under section 8(b) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)) determines that the receiving farm does not 
        have adequate tillable cropland to produce the farm 
        poundage quota.
          [(3) Record.--No transfer of the farm poundage quota 
        shall be effective until a record thereof is filed with 
        the county committee of the county to which the 
        transfer is made and the committee determines that the 
        transfer complies with this section.
          [(4) Other terms.--Such other terms and conditions 
        that the Secretary may by regulation prescribe.
  [(c) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 2002 crops 
of peanuts.

[SEC. 358C. EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.

  [(a) In General.--Notwithstanding any other provision of this 
Act, the Secretary may permit a portion of the poundage quota 
for peanuts apportioned to any State to be allocated from the 
State's quota reserve to land-grant institutions identified in 
the Act of May 8, 1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 
et seq.), and colleges eligible to receive funds under the Act 
of August 30, 1890 (26 Stat. 419, chapter 841; 7 U.S.C. 321 et 
seq.), including Tuskegee Institute and, as appropriate, the 
Agricultural Research Service of the Department of Agriculture 
to be used for experimental and research purposes.
  [(b) Quantity.--The quantity of the quota allocated to an 
institution under this section shall not exceed the quantity of 
the quota held by each such institution during the 1985 crop 
year, except that the total quantity allocated to all 
institutions in a State shall not exceed \1/10\ of 1 percent of 
the State's basic quota.
  [(c) Limitation.--The director of the agricultural experiment 
station for a State shall be required to ensure, to the extent 
practicable, that farm operators in the State do not produce 
quota peanuts under subsection (a) in excess of the quantity 
needed for experimental and research purposes.
  [(d) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 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.

  [(a) Marketing Penalties.--
          [(1) In general.--
                  [(A) Marketing peanuts in excess of quota.--
                The marketing of any peanuts for domestic 
                edible use in excess of the farm poundage quota 
                for the farm on which the peanuts are produced 
                shall be subject to penalty at a rate equal to 
                140 percent of the support price for quota 
                peanuts for the marketing year in which the 
                marketing occurs. The penalty shall not apply 
                to the marketing of breeder or Foundation seed 
                peanuts grown and marketed by a publicly owned 
                agricultural experiment station (including a 
                State operated seed organization) under such 
                regulations as the Secretary may prescribe.
                  [(B) Marketing year.--For purposes of this 
                section, the marketing year for peanuts shall 
                be the 12-month period beginning August 1 and 
                ending July 31.
                  [(C) Marketing additional peanuts.--The 
                marketing of any additional peanuts from a farm 
                shall be subject to the same penalty unless the 
                peanuts, in accordance with regulations 
                established by the Secretary, are--
                          [(i) placed under loan at the 
                        additional loan rate in effect for the 
                        peanuts under section 108B of the 
                        Agricultural Act of 1949 and not 
                        redeemed by the producers;
                          [(ii) marketed through an area 
                        marketing association designated 
                        pursuant to section 108B(c)(1) of the 
                        Agricultural Act of 1949; or
                          [(iii) marketed under contracts 
                        between handlers and producers pursuant 
                        to subsection (f).
          [(2) Payer.--The 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 
        the agent. The person or agent may deduct an amount 
        equivalent to the penalty from the price paid to the 
        producer.
          [(3) Failure to collect.--If the person required to 
        collect the penalty fails to collect the penalty, the 
        person and all persons entitled to share in the peanuts 
        marketed from the farm or the proceeds thereof shall be 
        jointly and severally liable with such persons who 
        failed to collect the penalty for the amount of the 
        penalty.
          [(4) Application of quota.--Peanuts produced in a 
        calendar year in which farm poundage quotas are in 
        effect for the marketing year beginning therein shall 
        be subject to the quotas even though the peanuts are 
        marketed prior to the date on which the marketing year 
        begins.
          [(5) False information.--If any producer falsely 
        identifies, fails to accurately certify planted acres, 
        or fails to account for the disposition of any peanuts 
        produced on the planted acres, a quantity of peanuts 
        equal to the greater of the farm's average or actual 
        yield, as determined by the Secretary, times the 
        planted acres, shall be deemed to have been marketed in 
        violation of permissible uses of quota and additional 
        peanuts. Any penalty payable under this paragraph shall 
        be paid and remitted by the producer.
          [(6) Unintentional violations.--The Secretary shall 
        authorize, under such regulations as the Secretary 
        shall issue, the county committees established under 
        section 8(b) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h(b)) to waive or reduce 
        marketing penalties provided for under this subsection 
        in cases which the committees determine that the 
        violations that were the basis of the penalties were 
        unintentional or without knowledge on the part of the 
        parties concerned.
          [(7) De minimis violations.--Errors in weight that do 
        not exceed one-tenth of 1 percent in the case of any 
        one marketing document shall not be considered to be 
        marketing violations except in cases of fraud or 
        conspiracy.
  [(b) Use of Quota and Additional Peanuts.--
          [(1) Quota peanuts.--Only quota peanuts may be 
        retained for use as seed or for other uses on a farm. 
        When peanuts are so retained, such retention shall be 
        considered as marketings of quota peanuts, except that 
        the Secretary may exempt from consideration as 
        marketings of quota peanuts seeds of peanuts for the 
        quantity involved that are used to produce peanuts 
        excluded under section 358d(c), are unique strains, and 
        are not commercially available.
          [(2) Additional peanuts.--Additional peanuts shall 
        not be retained for use on a farm and shall not be 
        marketed for domestic edible use, except as provided in 
        subsection (g).
          [(3) Seed.--Except as provided in paragraph (1), seed 
        for planting of any peanut acreage in the United States 
        shall be obtained solely from quota peanuts marketed or 
        considered marketed for domestic edible use.
  [(c) Marketing Peanuts With Excess Quantity, Grade, or 
Quality.--On a finding by the Secretary that the peanuts 
marketed from any crop for domestic edible use by a handler are 
larger in quantity or higher in grade or quality than the 
peanuts that could reasonably be produced from the quantity of 
peanuts having the grade, kernel content, and quality of the 
quota peanuts acquired by the handler from the crop for the 
marketing, the handler shall be subject to a penalty equal to 
140 percent of the loan level for quota peanuts on the quantity 
of peanuts that the Secretary determines are in excess of the 
quantity, grade, or quality of the peanuts that could 
reasonably have been produced from the peanuts so acquired.
  [(d) Handling and Disposal of Additional Peanuts.--
          [(1) In general.--Except as provided in paragraph 
        (2), the Secretary shall require that the handling and 
        disposal of additional peanuts be supervised by agents 
        of the Secretary or by area marketing associations 
        designated pursuant to section 108B(c)(1) of the 
        Agricultural Act of 1949.
          [(2) Supervision by nonhandlers.--
                  [(A) In general.--Supervision of the handling 
                and disposal of additional peanuts by a handler 
                shall not be required under paragraph (1) if 
                the handler agrees in writing, prior to any 
                handling or disposal of the peanuts, to comply 
                with regulations that the Secretary shall 
                issue.
                  [(B) Regulations.--The regulations issued by 
                the Secretary under subparagraph (A) shall 
                include the following provisions:
                          [(i) Types of exported or crushed 
                        peanuts.--Handlers of shelled or milled 
                        peanuts may export or crush peanuts 
                        classified by type in all of the 
                        following quantities:
                                  [(I) Sound split kernel 
                                peanuts.--Sound split kernel 
                                peanuts purchased by the 
                                handler as additional peanuts 
                                to which, under price support 
                                loan schedules, a mandated 
                                deduction with respect to the 
                                price paid to the producer of 
                                the peanuts would be applied 
                                due to the percentage of the 
                                sound splits.
                                  [(II) Sound mature kernel 
                                peanuts.--Sound mature kernel 
                                peanuts (which term includes 
                                sound split kernel peanuts and 
                                sound whole kernel peanuts) in 
                                an amount equal to the poundage 
                                of the peanuts purchased by the 
                                handler as additional peanuts, 
                                less the total poundage of 
                                sound split kernel peanuts 
                                described in subclause (I).
                                  [(III) Remainder.--The 
                                remaining quantity of total 
                                kernel content of peanuts 
                                purchased by the handler as 
                                additional peanuts.
                          [(ii) Documentation.--Handlers shall 
                        ensure that any additional peanuts 
                        exported or crushed are evidenced by 
                        onboard bills of lading or other 
                        appropriate documentation as may be 
                        required by the Secretary, or both.
                          [(iii) Loss of peanuts.--If a handler 
                        suffers a loss of peanuts as a result 
                        of fire, flood, or any other condition 
                        beyond the control of the handler, the 
                        portion of the loss allocated to 
                        contracted additional peanuts shall not 
                        be greater than the portion of the 
                        handler's total peanut purchases for 
                        the year attributable to contracted 
                        additional peanuts purchased for export 
                        or crushing by the handler during the 
                        year.
                          [(iv) Shrinkage allowance.--
                                  [(I) In general.--The 
                                obligation of a handler to 
                                export or crush peanuts in 
                                quantities described in this 
                                subparagraph shall be reduced 
                                by a shrinkage allowance, to be 
                                determined by the Secretary, to 
                                reflect actual dollar value 
                                shrinkage experienced by 
                                handlers in commercial 
                                operations, except that the 
                                allowance shall not be less 
                                than 4 percent, except as 
                                provided in subclause (II).
                                  [(II) Common industry 
                                practices.--The Secretary may 
                                provide a lower shrinkage 
                                allowance for a handler who 
                                fails to comply with 
                                restrictions on the use of 
                                peanuts, as may be specified by 
                                the Commodity Credit 
                                Corporation, to take into 
                                account common industry 
                                practices.
          [(3) Adequate finances and facilities.--A handler 
        shall submit to the Secretary adequate financial 
        guarantees, as well as evidence of adequate facilities 
        and assets, with the facilities under the control and 
        operation of the handler, to ensure the handler's 
        compliance with the obligation to export peanuts.
          [(4) Commingling of like peanuts.--Quota and 
        additional peanuts of like type and segregation or 
        quality may, under regulations issued by the Secretary, 
        be commingled and exchanged on a dollar value basis to 
        facilitate warehousing, handling, and marketing.
          [(5) Penalty.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the failure by a handler to 
                comply with regulations issued by the Secretary 
                governing the disposition and handling of 
                additional peanuts shall subject the handler to 
                a penalty at a rate equal to 140 percent of the 
                loan level for quota peanuts on the quantity of 
                peanuts involved in the violation.
                  [(B) Nondelivery.--A handler shall not be 
                subject to a penalty for failure to export 
                additional peanuts if the peanuts were not 
                delivered to the handler.
          [(6) Reentry of exported peanuts.--
                  [(A) Penalty.--If any additional peanuts 
                exported by a handler are reentered into the 
                United States in commercial quantities as 
                determined by the Secretary, the importer of 
                the peanuts shall be subject to a penalty at a 
                rate equal to 140 percent of the loan level for 
                quota peanuts on the quantity of peanuts 
                reentered.
                  [(B) Records.--Each person, firm, or handler 
                who imports peanuts into the United States 
                shall maintain such records and documents as 
                are required by the Secretary to ensure 
                compliance with this subsection.
  [(e) Special Export Credits.--
          [(1) In general.--The Secretary shall, with due 
        regard for the integrity of the peanut program, 
        promulgate regulations that will permit any handler of 
        peanuts who manufactures peanut products from domestic 
        edible peanuts to export the products and receive 
        credit for the fulfillment of export obligations for 
        the peanut content of the products against which the 
        export credits the handler may thereafter apply, up to 
        the amount thereof, equivalent quantities of additional 
        peanuts of the same type acquired by the handler and 
        used in the domestic edible market. The peanuts so 
        acquired for the domestic edible market as provided in 
        this subsection shall be of the same crop year as the 
        peanuts used in the manufacture of the products so 
        exported.
          [(2) Certification.--Under such regulations, the 
        Secretary shall require all handlers who are peanut 
        product manufacturers to submit annual certifications 
        of peanut product content on a product-by-product 
        basis. Any changes in peanut product formulas as 
        affecting peanut content shall be recorded within 90 
        days of the changes. The Secretary shall conduct an 
        annual review of the certifications. The Secretary 
        shall pursue all available remedies with respect to 
        persons who fail to comply with this paragraph.
          [(3) Records.--The Secretary shall require handlers 
        who are peanut product manufacturers to maintain and 
        provide such documents as are necessary to ensure 
        compliance with this subsection and to maintain the 
        integrity of the peanut program.
  [(f) Contracts for Purchase of Additional Peanuts.--
          [(1) In general.--Handlers may, under such 
        regulations as the Secretary may issue, contract with 
        producers for the purchase of additional peanuts for 
        crushing or export, or both.
          [(2) Submission to secretary.--
                  [(A) Contract deadline.--Any such contract 
                shall be completed and submitted to the 
                Secretary (or if designated by the Secretary, 
                the area marketing association) for approval 
                not later than September 15 of the year in 
                which the crop is produced.
                  [(B) Extension of deadline.--The Secretary 
                may extend the deadline under subparagraph (A) 
                by up to 15 days in response to damaging 
                weather or related condition (as defined in 
                section 112 of the Disaster Assistance Act of 
                1989 (7 U.S.C. 1421 et seq.)). The Secretary 
                shall announce the extension no later than 
                September 5 of the year in which the crop is 
                produced.
          [(3) Form.--The contract shall be executed on a form 
        prescribed by the Secretary. The form shall require 
        such information as the Secretary determines 
        appropriate to ensure the proper handling of the 
        additional peanuts, including the identity of the 
        contracting parties, the poundage, and category of the 
        peanuts, the disclosure of any liens, and the intended 
        disposition of the peanuts.
          [(4) Information for handling and processing 
        additional peanuts.--Notwithstanding any other 
        provision of this section, any person wishing to handle 
        and process additional peanuts as a handler shall 
        submit to the Secretary (or if designated by the 
        Secretary, the area marketing association), such 
        information as may be required under subsection (d) by 
        such date as prescribed by the Secretary so as to 
        permit final action to be taken on the application by 
        July 1 of each marketing year.
          [(5) Terms.--Each such contract shall contain the 
        final price to be paid by the handler for the peanuts 
        involved and a specific prohibition against the 
        disposition of the peanuts for domestic edible or seed 
        use.
          [(6) Suspension of restrictions on imported 
        peanuts.--Notwithstanding any other provision of this 
        Act, if the President issues a proclamation under 
        section 404(b) of the Uruguay Round Agreements Act 
        expanding the quantity of peanuts subject to the in-
        quota rate of duty under a tariff-rate quota, or under 
        section 22 of the Agricultural Adjustment Act (7 U.S.C. 
        624), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937, temporarily suspending 
        restrictions on the importation of peanuts, the 
        Secretary shall, subject to such terms and conditions 
        as the Secretary may prescribe, permit a handler, with 
        the written consent of the producer, to purchase 
        additional peanuts from any producer who contracted 
        with the handler and to offer the peanuts for sale for 
        domestic edible use.
  [(g) Marketing of Peanuts Owned or Controlled by the 
Commodity Credit Corporation.--
          [(1) In general.--Subject to section 407 of the 
        Agricultural Act of 1949 (7 U.S.C. 1427), any peanuts 
        owned or controlled by the Commodity Credit Corporation 
        may be made available for domestic edible use, in 
        accordance with regulations issued by the Secretary, so 
        long as doing so does not result in substantially 
        increased cost to the Commodity Credit Corporation. 
        Additional peanuts received under loan shall be offered 
        for sale for domestic edible use at prices not less 
        than those required to cover all costs incurred with 
        respect to the peanuts for such items as inspection, 
        warehousing, shrinkage, and other expenses, plus--
                  [(A) not less than 100 percent of the loan 
                value of quota peanuts if the additional 
                peanuts are sold and paid for during the 
                harvest season on delivery by and with the 
                written consent of the producer;
                  [(B) not less than 105 percent of the loan 
                value of quota peanuts if the additional 
                peanuts are sold after delivery by the producer 
                but not later than December 31 of the marketing 
                year; or
                  [(C) not less than 107 percent of the loan 
                value of quota peanuts if the additional 
                peanuts are sold later than December 31 of the 
                marketing year.
          [(2) Acceptance of bids by area marketing 
        associations.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), for the period from the date 
                additional peanuts are delivered for loan to 
                March 1 of the calendar year following the year 
                in which the additional peanuts were harvested, 
                the area marketing association designated 
                pursuant to section 108B(c)(1) of the 
                Agricultural Act of 1949 shall have sole 
                authority to accept or reject lot list bids 
                when the sales price, as determined under this 
                subsection, equals or exceeds the minimum price 
                at which the Commodity Credit Corporation may 
                sell its stocks of additional peanuts.
                  [(B) Modification.--The area marketing 
                association and the Commodity Credit 
                Corporation may agree to modify the authority 
                granted by subparagraph (A) to facilitate the 
                orderly marketing of additional peanuts.
          [(3) Producer marketing and expenses.--
        Notwithstanding any other provision of this Act, the 
        Secretary shall, in any determination required under 
        subsections (a)(2) and (b)(1) of section 108B of the 
        Agricultural Act of 1949, include any additional 
        marketing expenses required by law, excluding the 
        amount of any assessment required under the Omnibus 
        Budget Reconciliation Act of 1990.
  [(h) Administration.--
          [(1) Interest.--The person liable for payment or 
        collection of any penalty provided for in this section 
        shall be liable also for interest thereon at a rate per 
        annum equal to the rate per annum of interest that was 
        charged the Commodity Credit Corporation by the 
        Treasury of the United States on the date the penalty 
        became due.
          [(2) De minimis quantity.--This section shall not 
        apply to peanuts produced on any farm on which the 
        acreage harvested for nuts is one acre or less if the 
        producers who share in the peanuts produced on the farm 
        do not share in the peanuts produced on any other farm.
          [(3) Liens.--Until the amount of the penalty provided 
        by this section is paid, a lien on the crop of peanuts 
        with respect to which the penalty is incurred, and on 
        any subsequent crop of peanuts subject to farm poundage 
        quotas in which the person liable for payment of the 
        penalty has an interest, shall be in effect in favor of 
        the United States.
          [(4) Penalties.--
                  [(A) Procedures.--Notwithstanding any other 
                provision of law, the liability for and the 
                amount of any penalty assessed under this 
                section shall be determined in accordance with 
                such procedures as the Secretary by regulation 
                may prescribe. The facts constituting the basis 
                for determining the liability for or amount of 
                any penalty assessed under this section, when 
                officially determined in conformity with the 
                applicable regulations prescribed by the 
                Secretary, shall be final and conclusive and 
                shall not be reviewable by any other officer or 
                agency of the Government.
                  [(B) Judicial review.--Nothing in this 
                section shall be construed as prohibiting any 
                court of competent jurisdiction from reviewing 
                any determination made by the Secretary with 
                respect to whether the determination was made 
                in conformity with the applicable law and 
                regulations.
                  [(C) Civil penalties.--All penalties imposed 
                under this section shall for all purposes be 
                considered civil penalties.
          [(5) Reduction of penalties.--
                  [(A) In general.--Notwithstanding any other 
                provision of law and except as provided in 
                subparagraph (B), the Secretary may reduce the 
                amount of any penalty assessed against handlers 
                under this section by any appropriate amount, 
                including, in an appropriate case, eliminating 
                the penalty entirely, if the Secretary finds 
                that the violation on which the penalty is 
                based was minor or inadvertent, and that the 
                reduction of the penalty will not impair the 
                operation of the peanut program.
                  [(B) Failure to export contracted additional 
                peanuts.--The amount of any penalty imposed on 
                a handler under this section that resulted from 
                the failure to export or crush contracted 
                additional peanuts shall not be reduced by the 
                Secretary.
  [(i) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1991 through 2002.]

      [PART VII--MARKETING QUOTAS--SUGAR AND CRYSTALLINE FRUCTOSE]

PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR

           *       *       *       *       *       *       *

[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. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR [AND CRYSTALLINE 
                    FRUCTOSE].

  (a) Sugar Estimates.--
          (1) In general.--[Before] Not later than August 1 
        before the beginning of each of the fiscal years [1992 
        through 1998] 2002 through 2011, 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 would provide 
                for reasonable carryover stocks;
                  [(B)] (C) 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]
                  (D) the quantity of sugar that will be 
                available from the domestic processing of 
                sugarcane and sugar beets; and
                  [(C)] (E) the [quantity of sugar] quantity of 
                sugars, syrups, and molasses that will be 
                imported for human consumption or to be used 
                for the extraction of sugar for human 
                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] year, whether 
                        such articles are under a tariff-rate 
                        quota or are in excess or outside of a 
                        tariff rate quota.
          (2) Exclusion.--The estimates in this section shall 
        not include sugar imported for the production of 
        polyhydric alcohol or to be refined and re-exported in 
        refined form or in sugar containing products.
          [(2) Quarterly reestimates] (3) Reestimates.--The 
        Secretary shall make quarterly reestimates of sugar 
        consumption, stocks, production, and imports for a 
        fiscal year as necessary, but 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.]
          (1) In general.--By the beginning of each fiscal 
        year, the Secretary shall establish for that fiscal 
        year appropriate allotments under section 359c for the 
        marketing by processors of sugar processed from sugar 
        beets and from domestically-produced sugarcane at a 
        level that the Secretary estimates will result in no 
        forfeitures of sugar to the Commodity Credit 
        Corporation under the loan program for sugar.
          (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)] (c) Prohibitions.--
          (1) * * *
          [(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)] (2) 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)] (3) 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 FLEXIBLE MARKETING ALLOTMENTS.

  (a) In General.--The Secretary shall establish flexible 
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] 1,532,000 short tons, raw 
                value; and

           *       *       *       *       *       *       *

          (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.]
  (c) Marketing Allotment for Sugar Derived From Sugar Beets 
and Marketing Allotment for Sugar Derived From Sugarcane.--The 
overall allotment quantity for the fiscal year shall be 
allotted among--
          (1) sugar derived from sugarbeets by establishing a 
        marketing allotment for a fiscal year at a quantity 
        equal to the product of multiplying the overall 
        allotment quantity for the fiscal year by the 
        percentage of 54.35; and
          (2) sugar derived from sugarcane by establishing a 
        marketing allotment for a fiscal year at a quantity 
        equal to the product of multiplying the overall 
        allotment quantity for the fiscal year by the 
        percentage of 45.65.
  (d) 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 domestically processed from sugar beets.
  [(f)] (e) State Cane Sugar Allotments.--
          (1) In general.--The allotment for sugar derived from 
        sugarcane shall be further allotted, among [the 5] the 
        States in the United States in which sugarcane is 
        produced, after a hearing, if requested by the affected 
        sugar cane processors and growers, and on such notice 
        as the Secretary by regulation may prescribe, 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] as provided in this subsection and 
        section 359(d)(a)(2)(A)(iv).
          (2) Offshore allotment.--
                  (A) Collectively.--Prior to the allotment of 
                sugar derived from sugarcane to any other 
                State, 325,000 short tons, raw value shall be 
                allotted to the offshore States.
                  (B) Individually.--The collective offshore 
                State allotment provided for under subparagraph 
                (A) shall be further allotted among the 
                offshore States in which sugarcane is produced, 
                after a hearing if requested by the affected 
                sugar cane processors and growers, and on such 
                notice as the Secretary by regulation may 
                prescribe, in a fair and equitable manner on 
                the basis of--
                          (i) past marketings of sugar, based 
                        on the average of the 2 highest years 
                        of production of raw cane sugar from 
                        the 1996 through 2000 crops;
                          (ii) the ability of processors to 
                        market the sugar covered under the 
                        allotments for the crop year; and
                          (iii) past processings of sugar from 
                        sugarcane based on the 3 year average 
                        of the crop years 1998 through 2000.
          (3) Mainland allotment.--The allotment for sugar 
        derived from sugarcane, less the amount provided for 
        under paragraph (2), shall be allotted among the 
        mainland States in the United States in which sugarcane 
        is produced, after a hearing if requested by the 
        affected sugar cane processors and growers, and on such 
        notice as the Secretary by regulation may prescribe, in 
        a fair and equitable manner on the basis of--
                  (A) past marketings of sugar, based on the 
                average of the 2 highest years of production of 
                raw cane sugar from the 1996 through 2000 
                crops;
                  (B) the ability of processors to market the 
                sugar covered under the allotments for the crop 
                year; and
                  (C) past processings of sugar from sugarcane, 
                based on the 3 crop years with the greatest 
                processings (in the mainland States 
                collectively) during the 1991 through 2000 crop 
                years.
  (f) Filling Cane Sugar Allotments.--Except as otherwise 
provided in section 359e, a State cane sugar allotment 
established under subsection (e) for a fiscal year may be 
filled only with sugar processed from sugarcane grown in the 
State covered by the allotment.
  (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,] 359b(a)(3), 
                adjust upward or downward marketing allotments 
                in a fair and equitable manner
        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)] 359f(c), shall be 
        increased or decreased by the same percentage that the 
        allotment is increased or decreased.
          (3) [Reductions] Carry-over of reductions.--Whenever 
        a marketing allotment for a fiscal year is required to 
        be reduced during the fiscal year under this 
        subsection, if at the time of the reduction the 
        quantity of sugar marketed, including sugar pledged as 
        collateral for a [price support] nonrecourse 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] 156 of the Agricultural Market Transition 
        Act (7 U.S.C. 7272), 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.]
  (h) Suspension of Allotments.--Whenever the Secretary 
estimates, or reestimates, under section 359b(a), or has reason 
to believe that imports of sugars, syrups or molasses for human 
consumption or to be used for the extraction of sugar for human 
consumption, whether under a tariff-rate quota or in excess or 
outside of a tariff-rate quota, will exceed 1.532 million short 
tons, raw value equivalent, and that such imports would lead to 
a reduction of the overall allotment quantity, the Secretary 
shall suspend the marketing allotments until such time as such 
imports have been restricted, eliminated, or otherwise reduced 
to or below the level of 1.532 million tons.

SEC. 359D. ALLOCATION OF MARKETING ALLOTMENTS.

  (a) In General.--
          (1) * * *
          (2) Hearing and notice.--
                  (A) Cane sugar.--
                          (i) In general.--The Secretary shall 
                        make allocations for cane sugar after a 
                        hearing, if requested by [interested 
                        parties] the affected sugar cane 
                        processors and growers, 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.] with this subparagraph. 
                        Each such allocation shall be subject 
                        to adjustment under section 359c(g). 
                        Each such allocation shall be subject 
                        to adjustment under section 359c(g).
                          (ii) Multiple processor states.--
                        Except as provided in clause (iii), the 
                        Secretary shall allocate the allotment 
                        for cane sugar among multiple cane 
                        sugar processors in a single State 
                        based upon--
                                  (I) past marketings of sugar, 
                                based on the average of the 2 
                                highest years of production of 
                                raw cane sugar from among the 
                                1996 through 2000 crops;
                                  (II) the ability of 
                                processors to market sugar 
                                covered by that portion of the 
                                allotment allocated for the 
                                crop year;
                                  (III) past processings of 
                                sugar from sugarcane, based on 
                                the average of the 3 highest 
                                years from among crop years 
                                1996 through 2000; and
                                  (IV) however, only with 
                                respect to allotments under 
                                subclauses (I), (II), and (III) 
                                attributable to the former 
                                operations of the Talisman 
                                processing facility, shall be 
                                allocated among processors in 
                                the State coincident with the 
                                provisions of the agreements of 
                                March 25 and March 26, 1999, 
                                between the affected processors 
                                and the Department of the 
                                Interior.
                          (iii) Proportionate share states.--In 
                        the case of States subject to section 
                        359f(c), the Secretary shall allocate 
                        the allotment for cane sugar among 
                        multiple cane sugar processors in a 
                        single state based upon--
                                  (I) past marketings of sugar, 
                                based on the average of the two 
                                highest years of production of 
                                raw cane sugar from among the 
                                1997 through 2001 crop years;
                                  (II) the ability of 
                                processors to market sugar 
                                covered by that portion of the 
                                allotments allocated for the 
                                crop year; and
                                  (III) past processings of 
                                sugar from sugarcane, based on 
                                the average of the two highest 
                                crop years from the five crop 
                                years 1997 through 2001.
                          (iv) New entrants.--Notwithstanding 
                        clauses (ii) and (iii), the Secretary, 
                        on application of any processor that 
                        begins processing sugarcane on or after 
                        the date of enactment of this clause, 
                        and after a hearing if requested by the 
                        affected sugarcane processors and 
                        growers, and on such notice as the 
                        Secretary by regulation may prescribe, 
                        may provide such processor with an 
                        allocation which provides a fair, 
                        efficient and equitable distribution of 
                        the allocations from the allotment for 
                        the State in which the processor is 
                        located and, in the case of 
                        proportionate share States, shall 
                        establish proportionate shares in an 
                        amount sufficient to produce the 
                        sugarcane required to satisfy such 
                        allocations. However, the allotment for 
                        a new processor under this clause shall 
                        not exceed 50,000 short tons, raw 
                        value.
                          (v) Transfer of ownership.--Except as 
                        otherwise provided in section 
                        359f(c)(8), in the event that a 
                        sugarcane processor is sold or 
                        otherwise transferred to another owner, 
                        or closed as part of an affiliated 
                        corporate group processing 
                        consolidation, the Secretary shall 
                        transfer the allotment allocation for 
                        the processor to the purchaser, new 
                        owner, or successor in interest, as 
                        applicable, of the processor.
                  (B) Beet sugar.--The Secretary shall make 
                allocations for beet sugar after a hearing, if 
                requested by [interested parties] the affected 
                sugar beet processors and growers, 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] the marketings of sugar 
                processed from sugar beets of any or all of the 
                1996 through 2000 crops, and such other factors 
                as the Secretary may deem appropriate after 
                consultation with the affected sugar beet 
                processors and growers. However, in the case of 
                any processor which has started processing 
                sugar beets after January 1, 1996, the 
                Secretary shall provide such processor with an 
                allocation which provides a fair, efficient and 
                equitable distribution of the allocations.. 
                Each such allocation shall be subject to 
                adjustment under section 359c(g).

           *       *       *       *       *       *       *

SEC. 359E. REASSIGNMENT OF DEFICITS.

  (a) * * *
  (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) * * *
                  (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 estimated quantity of the 
                deficit to the sale of any inventories of sugar 
                held by the Commodity Credit Corporation; and
                  [(C)] (D) if after the reassignments and 
                sales, 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.] use 
                the estimated quantity of the deficit for the 
                sale of any inventories of sugar held by the 
                Commodity Credit Corporation; and
                  (C) if after such reassignments and sales, 
                the deficit cannot be completely eliminated, 
                the Secretary shall reassign the remainder to 
                imports.

           *       *       *       *       *       *       *

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] allocation to the processor shall be 
resolved through arbitration by the Secretary on the request of 
either party, and such arbitration should be completed within 
45 days, but not more than 60 days, of the request.
  (b) Sugar Beet Processing Facility Closures.-- In the event 
that a sugar beet processing facility is closed and the sugar 
beet growers who previously delivered beets to such facility 
desire to deliver their beets to another processing company:
          (1) Such growers may petition the Secretary to modify 
        existing allocations to accommodate such a transition; 
        and
          (2) The Secretary may increase the allocation to the 
        processing company to which the growers desire to 
        deliver their sugar beets, and which the processing 
        company agrees to accept, not to exceed its processing 
        capacity, to accommodate the change in deliveries.
          (3) Such increased allocation shall be deducted from 
        the allocation to the company that owned the processing 
        facility that has been closed and the remaining 
        allocation will be unaffected.
          (4) The Secretary's determination on the issues 
        raised by the petition shall be made within 60 days of 
        the filing of the petition.
  [(b)] (c) Proportionate Shares of Certain Allotments.--
          (1) * * *

           *       *       *       *       *       *       *

          (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] 
                the two highest years from among the years 
                1999, 2000, and 2001, 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.

           *       *       *       *       *       *       *

          (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] the two highest of the three (3) crop 
                years 1999, 2000, and 2001.

           *       *       *       *       *       *       *

          (8) Processing facility closures.--In the event that 
        a sugarcane processing facility subject to this 
        subsection is closed and the sugarcane growers who 
        previously delivered sugarcane to such facility desire 
        to deliver their sugarcane to another processing 
        company--
                  (A) such growers may petition the Secretary 
                to modify existing allocations to accommodate 
                such a transition;
                  (B) the Secretary may increase the allocation 
                to the processing company to which the growers 
                desire to deliver the sugarcane, and which the 
                processing company agrees to accept, not to 
                exceed its processing capacity, to accommodate 
                the change in deliveries;
                  (C) such increased allocation shall be 
                deducted from the allocation to the company 
                that owned the processing facility that has 
                been closed and the remaining allocation will 
                be unaffected; and
                  (D) the Secretary's determination on the 
                issues raised by the petition shall be made 
                within 60 days of the filing of the petition.

SEC. 359G. SPECIAL RULES.

  (a) Transfer of Acreage Base History.--For the purpose of 
establishing proportionate shares for sugarcane farms under 
section 359f(c), 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(c), 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] 5 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 or adjusted for a farm under section 359f(c), on 
the same basis as the initial allocation or proportionate share 
was required to be established.

           *       *       *       *       *       *       *

SEC. 359J. ADMINISTRATION.

  (a) * * *

           *       *       *       *       *       *       *

  (c) [Definition of United States and State.--Notwithstanding] 
Definitions.--
          (1) 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.
          (2) Offshore states.--For purposes of this part, the 
        term ``offshore States'' means the sugarcane producing 
        States located outside of the continental United 
        States.

           *       *       *       *       *       *       *

                              ----------                              

                        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) * * *
          (b) For cotton [and peanuts], 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:

    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 
                                                                        
     * * * * * * *

TITLE IV--MISCELLANEOUS

           *       *       *       *       *       *       *

  Sec. 408. For the purposes of this Act--
  (a) * * *

           *       *       *       *       *       *       *

  (c) A ``basic agricultural commodity'' shall mean corn, 
cotton, [peanuts,] rice, tobacco, and wheat, respectively.

           *       *       *       *       *       *       *

                              ----------                              

AGRICULTURE AND FOOD ACT OF 1981

           *       *       *       *       *       *       *

                        TITLE XI--MISCELLANEOUS

Subtitle A--Miscellaneous Commodity Provisions

           *       *       *       *       *       *       *

    DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL NUTRITION PROJECTS

  Sec. 1114. (a)(1)  * * *
  (2)(A) Effective through September 30, [2002] 2011, whenever 
a commodity is made available without charge or credit under 
any nutrition program administered by the Secretary of 
Agriculture, the Secretary shall encourage consumption of such 
commodity through agreements with private companies under which 
the commodity is reprocessed into end-food products for use by 
eligible recipient agencies. The expense of reprocessing shall 
be paid by such eligible recipient agencies.

           *       *       *       *       *       *       *

TITLE XV--RESOURCE CONSERVATION

           *       *       *       *       *       *       *

       Subtitle H--Resource Conservation and Development Program

                                [PURPOSE

  [Sec. 1528. It is the purpose]

SEC. 1528. STATEMENT OF PURPOSE.

  It is the purpose of this subtitle to encourage and improve 
the capability of State and local units of government and local 
nonprofit organizations through designated RC&D councils in 
rural areas to plan, develop, and carry out programs for 
resource conservation and development.

                              [DEFINITIONS

  [Sec. 1529. As used in this subtitle--]

SEC. 1529. DEFINITIONS.

  In this title:
          (1) The term ``RC&D council area plan'' means a 
        resource conservation and utilization plan which is 
        developed for a designated area of a State or States 
        through a planning process and which includes one or 
        more of the following elements:
                  (A) a land conservation element, the purpose 
                of which shall be to control erosion and 
                sedimentation;
                  (B) a water management element, the purpose 
                of which shall be to provide for the 
                conservation, utilization, and quality of 
                water, including irrigation and rural water 
                supplies, the mitigation of floods and high 
                water tables, construction, repair, and 
                improvement of dams and reservoirs, improvement 
                of agricultural water management, and 
                improvement of water quality [through control 
                of nonpoint sources of pollution];
                  (C) a community development element, the 
                purpose of which shall be the development of 
                [natural resources based] resource-based 
                industries, protection of rural industries from 
                natural resource hazards, [development of 
                aquaculture,] development of adequate rural 
                water and waste disposal systems, improvement 
                of recreation facilities, improvement in the 
                quality of rural housing, provision of adequate 
                health and education facilities, [and] 
                satisfaction of essential transportation and 
                communication needs food security, economic 
                development, and education; or
                  (D) [other] land management elements, the 
                purpose of which may include energy 
                conservation or protection of agricultural 
                land, as appropriate, from conversion to other 
                uses, or protection of fish and wildlife 
                habitats.

           *       *       *       *       *       *       *

          (3) The term ``planning process'' means the 
        continuous effort by [any State, local unit of 
        government, or local nonprofit organization] the 
        designated RC&D council to develop and carry out 
        effective resource conservation and utilization plans 
        for a designated area, including development of an area 
        plan, goals, objectives, policies, implementation 
        activities, evaluations and reviews, and the 
        opportunity for public participation in such efforts.
          [(4) The term ``financial assistance'' means the 
        cost-sharing arrangements that are available under this 
        subtitle through Federal contracts, grants, or loans.
          [(5) The term ``local unit of government'' means any 
        county, city, town, township, parish, village, or other 
        general-purpose subdivision of a State, any local or 
        regional special district or other limited political 
        subdivision of a State, including any soil conservation 
        district, school district, park authority, and water or 
        sanitary district, or any Indian tribe or tribal 
        organization established under Federal, State, or 
        Indian tribal law.
          [(6) The term ``nonprofit organization'' means any 
        community association, wildlife group, or resource 
        conservation organization that is incorporated and 
        approved by the Secretary for the purpose of providing 
        to any rural area those public facilities or services 
        included in the area plan for such rural area.]
          (4)(A) The term ``financial assistance'' means the 
        Secretary may--
                  (i) provide funds directly to RC&D councils 
                or associations of RC&D councils through 
                grants, cooperative agreements, and interagency 
                agreements that directly implement RC&D area 
                plans; and
                  (ii) may join with other federal agencies 
                through interagency agreements and other 
                arrangements as needed to carry out the 
                program's purpose.
          (B) Funds may be used for such things as--
                  (i) technical assistance;
                  (ii) financial assistance in the form of 
                grants for planning, analysis and feasibility 
                studies, and business plans;
                  (iii) training and education; and
                  (iv) all costs associated with making such 
                services available to RC&D councils or RC&D 
                associations.
          (5) The term ``RC&D council'' means the responsible 
        leadership of the RC&D area. RC&D councils and 
        associations are non-profit entities whose members are 
        volunteers and include local civic and elected 
        officials. Affiliations of RC&D councils are formed in 
        states and regions.
          [(7)] (6) The term ``Secretary'' means the Secretary 
        of Agriculture.
          [(8)] (7) The term ``State'' means the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands of the United States, 
        Guam, the Commonwealth of the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and 
        American Samoa and federally recognized Indian tribes.
          [(9)] (8) The term ``technical assistance'' means any 
        service provided by personnel of the Department of 
        Agriculture or non-Federal personnel working through 
        the Department of Agriculture, including, but not 
        limited to, inventorying, evaluating, planning, 
        designing, supervising, laying out and inspecting 
        [works of improvement] projects, and the providing of 
        maps, reports, and other documents associated with the 
        services provided.
          [(10) The term ``works of improvement'' means the 
        facilities installed or being installed in accord with 
        an area plan.]
          (9) The term ``project'' means any action taken by a 
        designated RC&D council that achieves any of the 
        elements identified under paragraph (1).

             [RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM

  [Sec. 1530. The Secretary]

SEC. 1530. ESTABLISHMENT AND SCOPE.

  The Secretary shall establish a resource conservation and 
development program under which the Secretary shall make 
available to States, local units of government, and local 
nonprofit organizations [the technical and financial assistance 
necessary to permit such States, local units of government, and 
local nonprofit organizations] through designated RC&D councils 
the technical and financial assistance necessary to permit such 
RC&D Councils to operate and maintain a planning and 
implementation process needed to conserve and improve the use 
of land, develop natural resources, and improve and enhance the 
social, economic, and environmental conditions in rural areas 
of the United States.

                   [SELECTION OF NEW DESIGNATED AREAS

  [Sec. 1531. The Secretary]

SEC. 1531. SELECTION OF DESIGNATED AREAS.

  The Secretary shall select designated areas for assistance 
under this subtitle on the basis of the elements specified in 
section 1529(1).

                      [AUTHORITY OF THE SECRETARY

  [Sec. 1532. In carrying]

SEC. 1532. AUTHORITY OF SECRETARY.

  In carrying out the provisions of this subtitle, the 
Secretary may--
          (1) provide technical assistance to any [State, local 
        unit of government, or local nonprofit organization] 
        RC&D council within a designated area to assist in 
        developing and implementing an RC&D council area plan 
        for that area;
          (2) cooperate with other departments and agencies of 
        the Federal Government, State, and local units of 
        government, and with local nonprofit organizations in 
        conducting surveys and inventories, disseminating 
        information, and developing RC&D council area plans;
          (3) assist in carrying out an RC&D council area plan 
        approved by the Secretary for any designated area by 
        providing technical and financial assistance to any 
        [State, local unit of government, or local nonprofit 
        organization] RC&D council designated to receive such 
        assistance by the Governor or legislature of the State 
        concerned; and
          (4) enter into agreements with [States, local units 
        of government, and local nonprofit organizations] RC&D 
        councils or affiliations of RC&D councils, as provided 
        in section 1533.

                   [AGREEMENTS; TERMS AND CONDITIONS

  [Sec. 1533. (a) Technical]

SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.

  (a) Technical and financial assistance, including loans, may 
be provided by the Secretary to any [State, local unit of 
government, or local nonprofit organization to assist in 
carrying out works of improvement specified in an] RC&D 
councils or affiliations of RC&D councils to assist in carrying 
out a project specified in a RC&D council area plan approved by 
the Secretary only if--
          (1) such [State, local unit of government, or local 
        nonprofit organization] RC&D council or affiliate 
        agrees in writing to carry out such [works of 
        improvement] project and to finance or arrange for 
        financing of any portion of the cost of carrying out 
        such [works of improvement] project for which financial 
        assistance is not provided by the Secretary under this 
        subtitle;
          (2) the [works of improvement] project for which 
        assistance is to be provided under this subtitle are 
        included in an area plan and have been approved by the 
        [State, local unit of government, or local nonprofit 
        organization] RC&D council to be assisted;
          (3) the Secretary determines that assistance to 
        finance the type of [works of improvement concerned is 
        not reasonably available to such State, local unit of 
        government, or local nonprofit organization under any 
        other Federal program;] project concerned is necessary 
        to accomplish and RC&D council area plan objective
          (4) [the works of improvement provided for in the] 
        the project provided for in the RC&D council area plan 
        are consistent with any current comprehensive plan for 
        such area;
          (5) the cost of the land or an interest in the land 
        acquired or to be acquired under such plan by any 
        State, local unit of government, federally recognized 
        Indian tribe or local nonprofit organization is borne 
        by such State, local unit of government, federally 
        recognized Indian tribe or local nonprofit 
        organization; and
          (6) the State, local unit of government, or local 
        nonprofit organization participating in an RC&D council 
        area plan agrees to maintain and operate all works of 
        improvement installed under such plan.
  (b) Loans made under this subtitle shall be made on such 
terms and conditions as the Secretary may prescribe, except 
that such loans shall have a repayment period of not more than 
thirty years from the date of completion of the [work of 
improvement] project for which the loan is made and shall bear 
interest at the average rate of interest paid by the United 
States on its obligations of a comparable term, as determined 
by the Secretary of the Treasury.
  (c) Assistance may not be made available to [any State, local 
unit of government, or local nonprofit organization to carry 
out any] RC&D council to carry out any RC&D council area plan 
unless such plan has been submitted to and approved by the 
Secretary.

           *       *       *       *       *       *       *

          [RESOURCE CONSERVATION AND DEVELOPMENT POLICY BOARD

  [Sec. 1534. (a) The Secretary]

SEC. 1534. RESOURCE CONSERVATION AND DEVELOPMENT POLICY BOARD.

  (a) The Secretary shall establish within the Department of 
Agriculture a Resource Conservation and Development Policy 
Board.
  (b) Such board shall be composed of [seven] employees of the 
Department of Agriculture selected by the Secretary. One member 
shall be designated by the Secretary to serve as chairman.

           *       *       *       *       *       *       *

                         [EVALUATION OF PROGRAM

  [Sec. 1535. The Secretary]

SEC. 1535. PROGRAM EVALUATION.

  The Secretary shall evaluate the program with assistance from 
RC&D councils provided for in this subtitle to determine 
whether such program is effectively meeting the needs of, and 
the objectives identified by, the States, federally recognized 
Indian tribes, local units of government, and local nonprofit 
organizations participating in such program. The Secretary 
shall submit a report to Congress containing the results of the 
evaluation not later than December 31, [1986] 2007, together 
with the Secretary's recommendations for continuing, 
terminating, redirecting, or modifying such program.

                 [LIMITATION ON PROVISION OF ASSISTANCE

  [Sec. 1536. The program]

SEC. 1536. LIMITATION ON ASSISTANCE.

  The program provided for in this subtitle shall be limited to 
providing technical and financial assistance to not more than 
450 active designated areas.

                [SUPPLEMENTAL AUTHORITY OF THE SECRETARY

  [Sec. 1537. The authority]

SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.

  The authority of the Secretary under this subtitle to assist 
[States, local units of government, and local nonprofit 
organizations] RC&D councils in the development and 
implementation of area plans shall be supplemental to, and not 
in lieu of, any authority of the Secretary under any other 
provision of law.

                   [AUTHORIZATION FOR APPROPRIATIONS

  [Sec. 1538. There are]

SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated [for each of the 
fiscal years 1996 through 2002] such sums as may be necessary 
to carry out the provisions of this subtitle, except that not 
more than $15,000,000 may be appropriated for loans for any 
fiscal year. Funds appropriated pursuant to this subtitle shall 
remain available until expended.

           *       *       *       *       *       *       *

                              ----------                              

    SECTION 14 OF THE WATERSHED PROTECTION AND FLOOD PREVENTION ACT

SEC. 14. REHABILITATION OF STRUCTURAL MEASURES NEAR, AT, OR PAST THEIR 
                    EVALUATED LIFE EXPECTANCY.

  (a)  * * *

           *       *       *       *       *       *       *

  (h) Authorization of Appropriations.--There is authorized to 
be appropriated to the Secretary to provide financial and 
technical assistance under this section--
          (1) $5,000,000 for fiscal year 2001; and
          [(2) $10,000,000 for fiscal year 2002;
          [(3) $15,000,000 for fiscal year 2003;
          [(4) $25,000,000 for fiscal year 2004; and
          [(5) $35,000,000 for fiscal year 2005.]
          (2) $15,000,000 for fiscal year 2002 and each 
        succeeding fiscal year.

           *       *       *       *       *       *       *

                              ----------                              

     SECTION 6 OF THE SOIL CONSERVATION AND DOMESTIC ALLOTMENT ACT

                        APPROPRIATION AUTHORIZED

    Sec. 6. (a) There are hereby authorized to be appropriated 
for the purposes of this Act such sums as Congress may from 
time to time determine to be necessary.
    (b) Appropriations for carrying out this Act allocated for 
the production or procurement of nursery stock by any Federal 
agency, or funds appropriated to any Federal agency for 
allocation to cooperating States for the production or 
procurement of nursery stock, shall remain available for 
expenditure for not more than 3 fiscal years.
  (c) Funds made available to carry out the purposes of this 
Act may be used, to the extent determined by the Secretary of 
Agriculture to be necessary, by the agency of the Department of 
Agriculture to which the funds are appropriated, to provide 
technical assistance to owners and operators of land to achieve 
the objectives of any conservation program administered by the 
Secretary of Agriculture.
                              ----------                              

AGRICULTURAL TRADE ACT OF 1978

           *       *       *       *       *       *       *

                 TITLE II--AGRICULTURAL EXPORT PROGRAMS

Subtitle A--Programs

           *       *       *       *       *       *       *

SEC. 202. EXPORT CREDIT GUARANTEE PROGRAM.

  (a)  * * *

           *       *       *       *       *       *       *

  (k) Processed and High-Value Products.--
          (1) In general.--In issuing export credit guarantees 
        under this section, the Commodity Credit Corporation 
        shall, subject to paragraph (2), ensure that not less 
        than 25 percent for each of fiscal years 1996 and 1997, 
        30 percent for each of fiscal years 1998 and 1999, and 
        35 percent for each of fiscal years 2000[, 2001, and 
        2002] through 2011, of the total amount of credit 
        guarantees issued for a fiscal year is issued to 
        promote the export of processed or high-value 
        agricultural products and that the balance is issued to 
        promote the export of bulk or raw agricultural 
        commodities.

           *       *       *       *       *       *       *

                       Subtitle B--Implementation

SEC. 211. FUNDING LEVELS.

  (a)  * * *
  (b) Export Credit Guarantee Programs.--
          (1) Export credit guarantees.--The Commodity Credit 
        Corporation shall make available for each of fiscal 
        years 1996 through [2002] 2011 not less than 
        $5,500,000,000 in credit guarantees under subsections 
        (a) and (b) of section 202.

           *       *       *       *       *       *       *

  (c) Market Access Programs.--The Commodity Credit Corporation 
or the Secretary shall make available for market access 
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 access program, not 
        less than $200,000,000 for each of the fiscal years 
        1991 through 1993, not less than $110,000,000 for each 
        of the fiscal years 1994 through 1995, [and not more] 
        not more than $90,000,000 for each of fiscal years 1996 
        through [2002] 2001 and not more than $200,000,000 for 
        each of fiscal years 2002 through 2011,, 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 to carry out the program 
        established under this section not more than--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (G) $478,000,000 for fiscal year 2002 and for 
                each fiscal year thereafter through fiscal year 
                2011.

           *       *       *       *       *       *       *

TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

           *       *       *       *       *       *       *

SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

  (a) In General.--The Secretary shall establish and, in 
cooperation with eligible trade organizations, carry out a 
foreign market development cooperator program to maintain and 
develop foreign markets for United States agricultural 
commodities and products, with a significant emphasis on the 
importance of the export of value-added United States 
agricultural products into emerging markets.

           *       *       *       *       *       *       *

  (c) Report to Congress.--The Secretary shall report annually 
to Congress the amount of funding provided, types of programs 
funded, the value added products that have been targeted, and 
the foreign markets for those products that have been 
developed.

SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

  (a) Prior Years.--There are authorized to be appropriated to 
carry out this title such sums as may be necessary for each of 
fiscal years 1996 through [2002] 2001.
  (b) Fiscal 2002 and Later.--For each of fiscal years 2002 
through 2011 there are authorized to be appropriated such sums 
as may be necessary to carry out this title, and, in addition 
to any sums so appropriated, the Secretary shall use 
$35,000,000 of the funds of, or an equal value of the 
commodities of, the Commodity Credit Corporation to carry out 
this title.

           *       *       *       *       *       *       *

                              ----------                              

      SECTION 1302 OF THE AGRICULTURAL RECONCILIATION ACT OF 1993

SEC. 1302. MARKET ACCESS PROGRAM.

  (a)  * * *
  (b) Secretarial Actions To Achieve Savings.--In order to 
enable the Secretary of Agriculture to achieve the savings 
required in the market access program established by section 
203 of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) as a 
result of the amendments made by this section:
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Tobacco.--No funds made available under the 
        market access program may be used for activities to 
        develop, maintain, or expand foreign markets for 
        tobacco, other than leaf tobacco.

           *       *       *       *       *       *       *

                              ----------                              

AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954

           *       *       *       *       *       *       *

TITLE II--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *

SEC. 204. LEVELS OF ASSISTANCE.

  (a) Minimum Levels.--
          (1) Minimum assistance.--Except as provided in 
        paragraph (3), the Administrator shall make 
        agricultural commodities available for food 
        distribution under this title in an amount that for 
        each of fiscal years 1996 through [2002] 2011 is not 
        less than 2,025,000 metric tons.
          (2) Minimum non-emergency assistance.--Of the amounts 
        specified in paragraph (1), and except as provided in 
        paragraph (3), the Administrator shall make 
        agricultural commodities available for non-emergency 
        food distribution through eligible organizations under 
        section 202 in an amount that for each of fiscal years 
        1996 through [2002] 2011 is not less than 1,550,000 
        metric tons.

           *       *       *       *       *       *       *

SEC. 208. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
                    DELIVERY, AND DISTRIBUTION OF SHELF-STABLE 
                    PREPACKAGED FOODS.

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Authorization of Appropriations.--There is authorized to 
be appropriated to the Administrator to carry out this section, 
in addition to amounts otherwise available to carry out this 
section, $3,000,000 for each of fiscal years 2001 and [2002] 
2011, to remain available until expended.

           *       *       *       *       *       *       *

TITLE IV--GENERAL AUTHORITIES AND REQUIREMENTS

           *       *       *       *       *       *       *

SEC. 407. ADMINISTRATIVE PROVISIONS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Title II and III Program.--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Prepositioning.--Funds made available for fiscal 
        years [2001 and 2002] 2001 through 2011 to carry out 
        titles II and III may be used by the Administrator to 
        procure, transport, and store agricultural commodities 
        for prepositioning within the United States and in 
        foreign countries, except that for each such fiscal 
        year not more than $2,000,000 of such funds may be used 
        to store agricultural commodities for prepositioning in 
        foreign countries.

           *       *       *       *       *       *       *

SEC. 408. EXPIRATION DATE.

  No agreements to finance sales or to provide other assistance 
under this Act shall be entered into after December 31, [2002] 
2011.

           *       *       *       *       *       *       *

                   TITLE V--FARMER-TO-FARMER PROGRAM

SEC. 501. FARMER-TO-FARMER PROGRAM.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Minimum Funding.--Notwithstanding any other provision of 
law, not less than 0.4 percent of the amounts made available 
for each of the fiscal years 1996 through [2002] 2011 to carry 
out this Act, in addition to any funds that may be specifically 
appropriated to carry out this section, shall be used to carry 
out programs under this section, with not less than 0.2 percent 
to be used for programs in developing countries.

           *       *       *       *       *       *       *

                              ----------                              

FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990

           *       *       *       *       *       *       *

TITLE XV--AGRICULTURAL TRADE

           *       *       *       *       *       *       *

Subtitle D--General Provisions

           *       *       *       *       *       *       *

SEC. 1542. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.

  (a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through [2002] 2011 not less 
than $1,000,000,000 of direct credits or export credit 
guarantees for exports to emerging markets under section 201 or 
202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 
5622), in addition to the amounts acquired or authorized under 
section 211 of the Act (7 U.S.C. 5641) for the program.

           *       *       *       *       *       *       *

  (d) E (Kika) de la Garza Agricultural Fellowship Program.--
The Secretary of Agriculture (hereafter in this section 
referred to as the ``Secretary'') shall establish a program, to 
be known as the ``E (Kika) de la Garza Agricultural Fellowship 
Program'', to develop agricultural markets in emerging markets 
and to promote cooperation and exchange of information between 
agricultural institutions and agribusinesses in the United 
States and emerging markets, as follows:
          (1) Development of agricultural systems.--
                  (A) In general.--
                          (i) Establishment of program.--For 
                        each of the fiscal years 1991 through 
                        [2002] 2011, the Secretary of 
                        Agriculture (hereafter in this section 
                        referred to as the ``Secretary''), in 
                        order to develop, maintain, or expand 
                        markets for United States agricultural 
                        exports, is directed to make available 
                        to emerging markets the expertise of 
                        the United States to make assessments 
                        of the food and rural business systems 
                        needs of such democracies, make 
                        recommendations on measures necessary 
                        to enhance the effectiveness of the 
                        systems, including potential reductions 
                        in trade barriers, and identify and 
                        carry out specific opportunities and 
                        projects to enhance the effectiveness 
                        of those systems.

           *       *       *       *       *       *       *

TITLE XVI--RESEARCH

           *       *       *       *       *       *       *

Subtitle C--National Genetic Resources Program

           *       *       *       *       *       *       *

[SEC. 1634. ADVISORY COUNCIL.

  [(a) Establishment and Membership.--The Secretary shall 
establish an advisory council for the program for the purpose 
of advising, assisting, consulting with, and making 
recommendations to, the Secretary and Director concerning 
matters related to the activities, policies and operations of 
the program. The advisory council shall consist of ex officio 
members and not more than nine members appointed by the 
Secretary.
  [(b) Ex Officio Members.--The ex officio members of the 
advisory council shall consist of the following persons (or 
their designees):
          [(1) The Director.
          [(2) The Assistant Secretary of Agriculture for 
        Science and Education.
          [(3) The Director of the National Agricultural 
        Library.
          [(4) The Director of the National Institutes of 
        Health.
          [(5) The Director of the National Science Foundation.
          [(6) The Secretary of Energy.
          [(7) The Director of the Office of Science and 
        Technology Policy.
          [(8) Such additional officers and employees of the 
        United States as the Secretary determines are necessary 
        for the advisory council to effectively carry out its 
        functions.
  [(c) Appointment of Other Members.--The members of the 
advisory council who are not ex officio members shall be 
appointed by the Secretary as follows:
          [(1) Two-thirds of the members shall be appointed 
        from among the leading representatives of the 
        scientific disciplines relevant to the activities of 
        the program, including agricultural sciences, 
        environmental sciences, natural resource sciences, 
        health sciences, and nutritional sciences.
          [(2) One-third of the members shall be appointed from 
        the general public and shall include leaders in fields 
        of public policy, trade, international development, 
        law, or management.
  [(d) Compensation.--Members of the advisory council shall 
serve without compensation, if not otherwise officers or 
employees of the United States, except that they shall, while 
away from their homes or regular places of business in the 
performance of services for the advisory council, be allowed 
travel expenses, including per diem in lieu of subsistence, in 
the same manner as persons employed intermittently in the 
Government service are allowed expenses under sections 5701 
through 5707 of title 5, United States Code.
  [(e) Term of Office of Appointees; Vacancies.--
          [(1) Term.--The term of office of a member appointed 
        under subsection (c) is four years, except that any 
        member appointed to fill a vacancy occurring before the 
        expiration of the term for which the predecessor of 
        such member was appointed shall be appointed only for 
        the remainder of such term.
          [(2) Initial appointment.--The Secretary shall make 
        appointments to the advisory council so as to ensure 
        that the terms of the members appointed under 
        subsection (c) do not all expire in the same year. A 
        member may serve after the expiration of the member's 
        term until a successor takes office.
          [(3) Reappointment.--A member who is appointed for a 
        term of four years may not be reappointed to the 
        advisory council before two years after the date of 
        expiration of such term of office.
          [(4) Vacancies.--If a vacancy occurs in the advisory 
        council among the members appointed under subsection 
        (c), the Secretary shall make an appointment to fill 
        such vacancy within 90 days after the date such vacancy 
        occurs.
  [(f) Chair.--The Secretary shall select as the chair of the 
advisory council one of the members appointed under subsection 
(c). The term of office of the chair shall be two years.
  [(g) Meetings.--The advisory council shall meet at the call 
of the chair or on the request of the Director, but at least 
two times each fiscal year. The location of the meetings of the 
advisory council shall be subject to the approval of the 
Director.
  [(h) Staff.--The Director shall make available to the 
advisory council such staff, information, and other assistance 
as it may require to carry out its functions.
  [(i) Orientation and Training.--The Director shall provide 
such orientation and training for new members of the advisory 
council as may be appropriate for their effective participation 
in the functions of the advisory council.
  [(j) Comments and Recommendations.--The advisory council may 
prepare, for inclusion in a report submitted under section 
1633--
          [(1) comments respecting the activities of the 
        advisory council during the period covered by the 
        report;
          [(2) comments on the progress of the program in 
        meeting its objectives; and
          [(3) recommendations respecting the future 
        directions, program, and policy emphasis of the 
        program.
  [(k) Reports.--The advisory council may prepare such reports 
as the advisory council determines to be appropriate.
  [(l) Application of Advisory Committee Act.--Section 14(a) of 
the Federal Advisory Committee Act (5 U.S.C. App.) relating to 
the termination of an advisory committee shall not apply to the 
advisory council established under this section.]

SEC. 1635. DEFINITIONS AND AUTHORIZATION OF APPROPRIATIONS.

  (a)  * * *
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated such funds as may be necessary to carry out 
this subtitle for each of the fiscal years 1991 through [2002] 
2011.

Subtitle D--National Agricultural Weather Information System

           *       *       *       *       *       *       *

[SEC. 1639. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

  [(a) Establishment.--The Secretary of Agriculture shall 
establish the Advisory Board on Agricultural Weather 
(hereinafter referred to in this section as the ``Board'') to 
advise the Director of the Agricultural Weather Office with 
respect to carrying out this subtitle.
  [(b) Composition.--The Board shall be composed of nine 
members, appointed by the Secretary in consultation with the 
Director of the National Weather Service. Two of the members 
shall be from each of the four regions of the cooperative 
extension service. Of the two members from each region, one 
shall be an agricultural producer and one shall be an 
agricultural or atmospheric scientist. At least two members of 
the Board shall be appointed from among individuals who are 
engaged in providing private meteorology services or consulting 
with a private meteorology firm.
  [(c) Chairperson.--The Board shall elect a chairperson from 
among its members.
  [(d) Term.--Each Board member shall be appointed for a three-
year term, except that to ensure that members of the Board 
serve staggered terms, the Secretary shall appoint three of the 
original members of the Board to appointments for one year, and 
three of the original members to appointments for two years.
  [(e) Meetings.--The Board shall meet not less than twice 
annually.
  [(f) Compensation.--Members of the Board shall serve without 
compensation, but while away from their homes or regular places 
of business in the performance of services for the Board, 
members of the Board shall be allowed travel expenses, 
including a per diem allowance in lieu of subsistence, in the 
same manner as individuals employed in Government service are 
allowed travel expenses under section 5703 of title 5, United 
States Code.
  [(g) Federal Advisory Committee Act.--Section 14(a)(2) of the 
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply 
with respect to the Board.]

           *       *       *       *       *       *       *

Subtitle G--Alternative Agricultural Research and Commercialization

           *       *       *       *       *       *       *

SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    REVOLVING FUND.

  (a)  * * *

           *       *       *       *       *       *       *

  (g) Authorization of Appropriations; Capitalization.--
          (1) Authorization of appropriation.--There are 
        authorized to be appropriated to the Fund $75,000,000 
        for each of fiscal years 1996 through [2002] 2011.
          (2) Capitalization.--The Executive Director may pay 
        in as capital of the Corporation, out of dollar 
        receipts made available through annual appropriations, 
        $75,000,000 for each of fiscal years 1996 through 
        [2002] 2011. On the payment of an amount of capital by 
        the Executive Director, the Corporation shall issue an 
        equivalent amount of capital stock to the Secretary of 
        the Treasury.

           *       *       *       *       *       *       *

             Subtitle H--Miscellaneous Research Provisions

[SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

  [(a) Purpose.--It is the purpose of this section to--
          [(1) authorize and support environmental assessment 
        research to the extent necessary to help address 
        general concerns about environmental effects of 
        biotechnology; and
          [(2) authorize research to help regulators develop 
        policies, as soon as practicable, concerning the 
        introduction into the environment of such technology.
  [(b) Grant Program.--The Secretary of Agriculture shall 
establish a grant program within the Cooperative State Research 
Service and the Agricultural Research Service to provide the 
necessary funding for environmental assessment research 
concerning the introduction of genetically engineered organisms 
into the environment.
  [(c) Types of Research.--Types of research for which grants 
may be made under this section shall include the following:
          [(1) Research designed to develop methods to 
        physically and biologically contain genetically 
        engineered animals, plants, and microorganisms once 
        they are introduced into the environment.
          [(2) Research designed to develop methods to monitor 
        the dispersal of genetically engineered animals, 
        plants, and microorganisms.
          [(3) Research designed to further existing knowledge 
        with respect to the rates and methods of gene transfer 
        that may occur between genetically engineered organisms 
        and related wild and agricultural organisms.
          [(4) Other areas of research designed to further the 
        purposes of this section.
  [(d) Eligibility Requirements.--Grants under this section 
shall be--
          [(1) made on the basis of the quality of the proposed 
        research project; and
          [(2) available to any public or private research or 
        educational institution or organization.
  [(e) Consultation.--In considering specific areas of research 
for funding under this section, the Secretary of Agriculture 
shall consult with the Administrator of the Animal and Plant 
Health Inspection Service, the Office of Agricultural 
Biotechnology, and the Agricultural Biotechnology Research 
Advisory Committee.
  [(f) Program Coordination.--The Secretary of Agriculture 
shall coordinate research funded under this section with the 
Office of Research and Development of the Environmental 
Protection Agency in order to avoid duplication of research 
activities.
  [(g) Authorization of Appropriations.--
          [(1) In general.--There are authorized to be 
        appropriated such sums as necessary to carry out this 
        section.
          [(2) Withholdings from biotechnology outlays.--The 
        Secretary of Agriculture shall withhold from outlays of 
        the Department of Agriculture for research on 
        biotechnology, as defined and determined by the 
        Secretary, at least one percent of such amount for the 
        purpose of making grants under this section for 
        research on biotechnology risk assessment.]

SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

  (a) Purpose.--It is the purpose of this section--
          (1) to authorize and support environmental assessment 
        research to help identify and analyze environmental 
        effects of biotechnology; and
          (2) to authorize research to help regulators develop 
        long-term policies concerning the introduction of such 
        technology.
  (b) Grant Program.-- The Secretary of Agriculture shall 
establish a grant program within the Cooperative State 
Research, Education, and Extension Service and the Agricultural 
Research Service to provide the necessary funding for 
environmental assessment research concerning the introduction 
of genetically engineered plants and animals into the 
environment.
  (c) Types of Research.-- Types of research for which grants 
may be made under this section shall include the following:
          (1) Research designed to identify and develop 
        appropriate management practices to minimize physical 
        and biological risks associated with genetically 
        engineered animals and plants once they are introduced 
        into the environment.
          (2) Research designed to develop methods to monitor 
        the dispersal of genetically engineered animals and 
        plants.
          (3) Research designed to further existing knowledge 
        with respect to the characteristics, rates and methods 
        of gene transfer that may occur between genetically 
        engineered plants and animals and related wild and 
        agricultural organisms.
          (4) Environmental assessment research designed to 
        provide analysis, which compares the relative impacts 
        of plants and animals modified through genetic 
        engineering to other types of production systems.
          (5) Other areas of research designed to further the 
        purposes of this section.
  (d) Eligibility Requirements.--Grants under this section 
shall be--
          (1) made on the basis of the quality of the proposed 
        research project; and
          (2) available to any public or private research or 
        educational institution or organization.
  (e) Consultation.-- In considering specific areas of research 
for funding under this section, the Secretary of Agriculture 
shall consult with the Administrator of the Animal and Plant 
Health Inspection Service and the National Agricultural 
Research, Extension, Education, and Economics Advisory Board.
  (f) Program Coordination.-- The Secretary of Agriculture 
shall coordinate research funded under this section with the 
Office of Research and Development of the Environmental 
Protection Agency in order to avoid duplication of research 
activities.
  (g) Authorization of Appropriations.--
          (1) In general.-- There are authorized to be 
        appropriated such sums as necessary to carry out this 
        section.
          (2) Withholdings from biotechnology outlays.--The 
        Secretary of Agriculture shall withhold from outlays of 
        the Department of Agriculture for research on 
        biotechnology, as defined and determined by the 
        Secretary, at least one percent of such amount for the 
        purpose of making grants under this section for 
        research on biotechnology risk assessment. Except that, 
        funding from this authorization should be collected and 
        applied to the maximum extent practicable to risk 
        assessment research on all categories identified as 
        biotechnology by the Secretary.

           *       *       *       *       *       *       *

SEC. 1671. AGRICULTURAL GENOME INITIATIVE.

  (a)  * * *

           *       *       *       *       *       *       *

  (b) Duties of Secretary.--The Secretary of Agriculture 
(referred to in this section as the ``Secretary'') shall 
conduct a research initiative (to be known as the 
``Agricultural Genome Initiative'') for the purpose of--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) identifying and developing a functional 
        understanding of genes responsible for economically 
        important traits in agriculturally important species, 
        including emerging plant and animal pathogens and 
        diseases causing economic hardship;

           *       *       *       *       *       *       *

          (6) ensuring preservation of biodiversity to maintain 
        access to genes that may be of importance in the 
        future; [and]
          (7) reducing the economic impact of plant pathogens 
        on commercially important crop plants; and
          [(7)] (8) otherwise carrying out this section.

           *       *       *       *       *       *       *

SEC. 1672. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) High-Priority Research and Extension Areas.--
          (1)  * * *

           *       *       *       *       *       *       *

          (25) Research to protect the united states food 
        supply and agriculture from bioterrorism.--Research 
        grants may be made under this section for the purpose 
        of developing technologies, which support the 
        capability to deal with the threat of agricultural 
        bioterrorism.
          (26) Wind erosion research and extension.--Research 
        and extension grants may be made under this section for 
        the purpose of validating wind erosion models.
          (27) Crop loss research and extension.--Research and 
        extension grants may be made under this section for the 
        purpose of validating crop loss models.
          (28) Land use management research and extension.--
        Research and extension grants may be made under this 
        section for the purposes of evaluating the 
        environmental benefits of land use management tools 
        such as those provided in the Farmland Protection 
        Program.
          (29) Water and air quality research and extension.--
        Research and extension grants may be made under this 
        section for the purpose of better understanding 
        agricultural impacts to air and water quality and means 
        to address them.
          (30) Revenue and insurance tools research and 
        extension.--Research and extension grants may be made 
        under this section for the purposes of better 
        understanding the impact of revenue and insurance tools 
        on farm income.
          (31) Agrotourism research and extension.--Research 
        and extension grants may be made under this section for 
        the purpose of better understanding the economic, 
        environmental, and food systems impacts on agrotourism.
          (32) Harvesting productivity for fruits and 
        vegetables.--Research and extension grants may be made 
        under this section for the purpose of improving 
        harvesting productivity for fruits and vegetables 
        (including citrus), including the development of 
        mechanical harvesting technologies and effective, 
        economical, and safe abscission compounds.
          (33) Nitrogen-fixation by plants.--Research and 
        extension grants may be made under this section for the 
        purpose of enhancing the nitrogen-fixing ability and 
        efficiency of legumes, developing new varieties of 
        legumes that fix nitrogen more efficiently, and 
        developing new varieties of other commercially 
        important crops that potentially are able to fix 
        nitrogen.
          (34) Agricultural marketing.--Extension grants may be 
        made under this section for the purpose of providing 
        education materials, information, and outreach programs 
        regarding commodity and livestock marketing strategies 
        for agricultural producers and for cooperatives and 
        other marketers of any agricultural commodity, 
        including livestock.
          (35) Environment and private lands research and 
        extension.--Research and extension grants may be made 
        under this section for the purpose of researching the 
        use of computer models to aid in assessment of best 
        management practices on a watershed basis, working with 
        government, industry, and private landowners to help 
        craft industry-led solutions to identified 
        environmental issues, researching and monitoring water, 
        air, or soil environmental quality to aid in the 
        development of new approaches to local environmental 
        concerns, and working with local, State, and federal 
        officials to help craft effective environmental 
        solutions that respect private property rights and 
        agricultural production realities.
          (36) Livestock disease research and extension.--
        Research and extension grants may be made under this 
        section for the purpose of identifying possible 
        livestock disease threats, educating the public 
        regarding livestock disease threats, training persons 
        to deal with such threats, and conducting related 
        research.
          (37) Plant gene expression.--Research and development 
        grants may be made under this section for the purpose 
        of plant gene expression research to accelerate the 
        application of basic plant genomic science to the 
        development and testing of new varieties of enhanced 
        food crops, crops that can be used as renewable energy 
        sources, and other alternative uses of agricultural 
        crops.

           *       *       *       *       *       *       *

  (h) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

SEC. 1672A. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

  (a)  * * *

           *       *       *       *       *       *       *

  (g) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

           *       *       *       *       *       *       *

SEC. 1673. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

  (a)  * * *

           *       *       *       *       *       *       *

  (h) Authorization of Appropriations.--For the purposes of 
implementing the program established under this section, there 
are hereby authorized to be appropriated not more than 
$12,000,000 for each of the fiscal years 1991 through [2002] 
2011.

           *       *       *       *       *       *       *

SEC. 1680. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Authorization of Appropriations.--
          (1) In general.--Subject to paragraph (2), there is 
        authorized to be appropriated to carry out this section 
        $6,000,000 for each of fiscal years 1999 through [2002] 
        2011.

           *       *       *       *       *       *       *

TITLE XXIII--RURAL DEVELOPMENT

           *       *       *       *       *       *       *

                  Subtitle H--Miscellaneous Provisions

SEC. 2381. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) Limitation on Authorization of Appropriations.--To carry 
out this section, there are authorized to be appropriated 
$500,000 for each of the fiscal years 1991 through [2002] 2011.

           *       *       *       *       *       *       *

                  TITLE XXV--OTHER RELATED PROVISIONS

SEC. 2501. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
                    AND RANCHERS.

  [(a) Outreach and Assistance.--
          [(1) In general.--The Secretary of Agriculture 
        (hereafter referred to in this section as the 
        ``Secretary'') shall provide outreach and technical 
        assistance to encourage and assist socially 
        disadvantaged farmers and ranchers to own and operate 
        farms and ranches and to participate in agricultural 
        programs. This assistance should include information on 
        application and bidding procedures, farm management, 
        and other essential information to participate in 
        agricultural programs.
          [(2) Grants and Contracts.--The Secretary may make 
        grants and enter into contracts and other agreements in 
        the furtherance of this section with the following 
        entities--
                  [(A) any community based organization that--
                          [(i) has demonstrated experience in 
                        providing agricultural education or 
                        other agriculturally related services 
                        to socially disadvantaged farmers and 
                        ranchers;
                          [(ii) provides documentary evidence 
                        of its past experience of working with 
                        socially disadvantaged farmers and 
                        ranchers during the two years preceding 
                        its application for assistance under 
                        this section; and
                          [(iii) does not engage in activities 
                        prohibited under section 501(c)(3) of 
                        the Internal Revenue Code of 1986; and
                  [(B) 1890 Land-Grant Colleges including 
                Tuskegee Institute, Indian tribal community 
                colleges and Alaska native cooperative 
                colleges, Hispanic serving post-secondary 
                educational institutions, and other post-
                secondary educational institutions with 
                demonstrated experience in providing 
                agriculture education or other agriculturally 
                related services to socially disadvantaged 
                family farmers and ranchers in their region.
          [(3) Funding.--There are authorized to be 
        appropriated $10,000,000 for each fiscal year to carry 
        out this subsection.]
  (a) Outreach and Assistance.--
          (1) In general.--The Secretary of Agriculture (in 
        this section referred to as the ``Secretary'') shall 
        provide outreach and technical assistance programs 
        specifically to encourage and assist socially 
        disadvantaged farmers and ranchers to own and operate 
        farms and ranches and to participate equitably in the 
        full range of agricultural programs. This assistance, 
        which should enhance coordination and make more 
        effective the outreach, technical assistance, and 
        education efforts authorized in specific agriculture 
        programs, shall include information and assistance on 
        commodity, conservation, credit, rural, and business 
        development programs, application and bidding 
        procedures, farm and risk management, marketing, and 
        other essential information to participate in 
        agricultural and other programs of the Department.
          (2) Grants and contracts.--The Secretary may make 
        grants and enter into contracts and other agreements in 
        the furtherance of this section with the following 
        entities:
                  (A) Any community-based organization, 
                network, or coalition of community-based 
                organizations that--
                          (i) has demonstrated experience in 
                        providing agricultural education or 
                        other agriculturally related services 
                        to socially disadvantaged farmers and 
                        ranchers;
                          (ii) provides documentary evidence of 
                        its past experience of working with 
                        socially disadvantaged farmers and 
                        ranchers during the two years preceding 
                        its application for assistance under 
                        this section; and
                          (iii) does not engage in activities 
                        prohibited under section 501(c)(3) of 
                        the Internal Revenue Code of 1986.
                  (B) 1890 Land-Grant Colleges, including 
                Tuskegee Institute, Indian tribal community 
                colleges and Alaska native cooperative 
                colleges, Hispanic serving post-secondary 
                educational institutions, and other post-
                secondary educational institutions with 
                demonstrated experience in providing 
                agriculture education or other agriculturally 
                related services to socially disadvantaged 
                family farmers and ranchers in their region.
                  (C) Federally recognized tribes and national 
                tribal organizations with demonstrated 
                experience in providing agriculture education 
                or other agriculturally related services to 
                socially disadvantaged family farmers and 
                ranchers in their region.
          (3) Fnding.--There are authorized to be appropriated 
        $25,000,000 for each fiscal year to make grants and 
        enter into contracts and other agreements with the 
        entities described in paragraph (2) and to otherwise 
        carry out the purposes of this subsection.

           *       *       *       *       *       *       *

                              ----------                              

         SECTION 302 OF THE BILL EMERSON HUMANITARIAN TRUST ACT

SEC. 302. ESTABLISHMENT OF COMMODITY TRUST.

  (a)  * * *
  (b) Commodities or Funds in Trust.--
          (1)  * * *
          (2) Replenishment of trust.--
                  (A)  * * *
                  (B) Funds.--Any funds used to acquire 
                eligible commodities through purchases from 
                producers or in the market to replenish the 
                trust shall be derived--
                          (i) with respect to fiscal years 2000 
                        through 2002 from funds made available 
                        to carry out the Agricultural Trade 
                        Development and Assistance Act of 1954 
                        (7 U.S.C. 1691 et seq.) that are used 
                        to repay or reimburse the Commodity 
                        Credit Corporation for the release of 
                        eligible commodities under subsections 
                        (c)(2) and (f )(2), except that, of 
                        such funds, not more than $20,000,000 
                        may be expended for this purpose in 
                        each of the fiscal years 2000 through 
                        [2002] 2011; and

           *       *       *       *       *       *       *

  (h) Termination of Authority.--
          (1) In general.--The authority to replenish stocks of 
        eligible commodities to maintain the trust established 
        under this section shall terminate on September 30, 
        [2002] 2011.
          (2) Disposal of eligible commodities.--Eligible 
        commodities remaining in the trust after September 30, 
        [2002] 2011, shall be disposed of by release for use in 
        providing for emergency humanitarian food needs in 
        developing countries as provided in this section.

           *       *       *       *       *       *       *

                              ----------                              

FOOD STAMP ACT OF 1977

           *       *       *       *       *       *       *

                              DEFINITIONS

  Sec. 3. As used in this Act, the term:
  (a)  * * *

           *       *       *       *       *       *       *

  (c) ``Certification period'' means the period for which 
households shall be eligible to receive authorization cards. 
The certification period shall not exceed 12 months, except 
that the certification period may be up to 24 months if all 
adult household members are elderly or disabled. A State agency 
shall have at least 1 contact with each certified household 
every 12 months. The limits in this section may be extended 
until the end of any transitional benefit period established 
under section 11(s).

           *       *       *       *       *       *       *

                          ELIGIBLE HOUSEHOLDS

  Sec. 5. (a)  * * *

           *       *       *       *       *       *       *

  (d) Household income for purposes of the food stamp program 
shall include all income from whatever source excluding only 
(1) any gain or benefit which is not in the form of money 
payable directly to a household (notwithstanding its conversion 
in whole or in part to direct payments to households pursuant 
to any demonstration project carried out or authorized under 
Federal law including demonstration projects created by the 
waiver of provisions of Federal law), except as provided in 
subsection (k), (2) any income in the certification period 
which is received too infrequently or irregularly to be 
reasonably anticipated, but not in excess of $30 in a quarter, 
subject to modification by the Secretary in light of subsection 
(f), (3) all educational loans on which payment is deferred, 
grants, scholarships, fellowships, veterans' educational 
benefits, and the like (A) awarded to a household member 
enrolled at a recognized institution of post-secondary 
education, at a school for the handicapped, in a vocational 
education program, or in a program that provides for completion 
of a secondary school diploma or obtaining the equivalent 
thereof, (B) to the extent that they do not exceed the amount 
used for or made available as an allowance determined by such 
school, institution, program, or other grantor, for tuition and 
mandatory fees (including the rental or purchase of any 
equipment, materials, and supplies related to the pursuit of 
the course of study involved), books, supplies, transportation, 
and other miscellaneous personal expenses (other than living 
expenses), of the student incidental to attending such school, 
institution, or program, [and] (C) to the extent loans include 
any origination fees and insurance premiums, (D) to the extent 
that any other educational loans on which payment is deferred, 
grants, scholarships, fellowships, veterans' educational 
benefits, and the like, are required to be excluded under title 
XIX of the Social Security Act, the state agency may exclude it 
under this subsection, (4) all loans other than educational 
loans on which repayment is deferred, (5) reimbursements which 
do not exceed expenses actually incurred and which do not 
represent a gain or benefit to the household and any allowance 
a State agency provides no more frequently than annually to 
families with children on the occasion of those children's 
entering or returning to school or child care for the purpose 
of obtaining school clothes (except that no such allowance 
shall be excluded if the State agency reduces monthly 
assistance under a State program funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.) in the 
month for which the allowance is provided): Provided, That no 
portion of benefits provided under title IV-A of the Social 
Security Act, to the extent it is attributable to an adjustment 
for work-related or child care expenses (except for payments or 
reimbursements for such expenses made under an employment, 
education, or training program initiated under such title after 
the date of enactment of the Hunger Prevention Act of 1988, and 
no portion of any educational loan on which payment is 
deferred, grant, scholarship, fellowship, veterans' benefits, 
and the like that are provided for living expenses, shall be 
considered such reimbursement, (6) moneys received and used for 
the care and maintenance of a third-party beneficiary who is 
not a household member, (7) income earned by a child who is a 
member of the household, who is an elementary or secondary 
school student, and who is 17 years of age or younger, (8) 
moneys received in the form of nonrecurring lump-sum payments, 
including, but not limited to, income tax refunds, rebates, or 
credits, cash donations based on need that are received from 
one or more private nonprofit charitable organizations, but not 
in excess of $300 in the aggregate in a quarter, retroactive 
lump-sum social security or railroad retirement pension 
payments and retroactive lump-sum insurance settlements: 
Provided, That such payments shall be counted as resources, 
unless specifically excluded by other laws, (9) the cost of 
producing self-employed income, but household income that 
otherwise is included under this subsection shall be reduced by 
the extent that the cost of producing self-employment income 
exceeds the income derived from self-employment as a farmer, 
(10) any income that any other Federal law specifically 
excludes from consideration as income for purposes of 
determining eligibility for the food stamp program except as 
otherwise provided in subsection (k) of this section, (11)(A) 
any payments or allowances made for the purpose of providing 
energy assistance under any Federal law (other than part A of 
title IV of the Social Security Act (42 U.S.C. 601 et seq.)), 
or (B) a 1-time payment or allowance made under a Federal or 
State law for the costs of weatherization or emergency repair 
or replacement of an unsafe or inoperative furnace or other 
heating or cooling device, (12) through September 30 of any 
fiscal year, any increase in income attributable to a cost-of-
living adjustment made on or after July 1 of such fiscal year 
under title II or XVI of the Social Security Act (42 U.S.C. 401 
et seq.), section 3(a)(1) of the Railroad Retirement Act of 
1974 (45 U.S.C. 231b(a)(1)), or section 3112 of title 38, 
United States Code, if the household was certified as eligible 
to participate in the food stamp program or received an 
allotment in the month immediately preceding the first month in 
which the adjustment was effective, (13) any payment made to 
the household under section 3507 of the Internal Revenue Code 
of 1986 (relating to advance payment of earned income credit), 
(14) any payment made to the household under section 6(d)(4)(I) 
for work related expenses or for dependent care, [and] (15) any 
amounts necessary for the fulfillment of a plan for achieving 
self-support of a household member as provided under 
subparagraph (A)(iii) or (B)(iv) of section 1612(b)(4) of the 
Social Security Act (42 U.S.C. 1382a(b)(4)); (16) any state 
complementary assistance program payments that are excluded 
pursuant to subsections (a) and (b) of section 1931 of title 
XIX of the Social Security Act; and (17) at the option of the 
State agency, any types of income that the State agency does 
not consider when determining eligibility for cash assistance 
under a program funded under part A of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.) or medical assistance 
under section 1931 of the Social Security Act (42 U.S.C. 1396u-
1), except that this paragraph shall not authorize a State 
agency to exclude earned income, payments under title I, II, 
IV, X, XIV, or XVI of the Social Security Act, or such other 
types of income whose consideration the Secretary determines 
essential to equitable determinations of eligibility and 
benefit levels except to the extent that those types of income 
may be excluded under other paragraphs of this subsection.
  (e) Deductions From Income.--
          (1) Standard deduction.--The Secretary shall allow a 
        standard deduction for each household in the 48 
        contiguous States and the District of Columbia, Alaska, 
        Hawaii, Guam, and the Virgin Islands of the United 
        States [of $134, $229, $189, $269, and $118] equal to 
        9.7 percent of the eligibility limit established under 
        section 5(c)(1) for fiscal year 2002 but not more than 
        9.7 percent of the eligibility limit established under 
        section 5(c)(1) for a household of six for fiscal year 
        2002 nor less than $134, $229, $189, $269, and $118, 
        respectively, except that the standard deduction for 
        Guam shall be determined with reference to 2 times the 
        eligibility limits under section 5(c)(1) for fiscal 
        year 2002 for the 48 contiguous states and the District 
        of Columbia.

           *       *       *       *       *       *       *

                     ELIGIBILITY DISQUALIFICATIONS

  Sec. 6. (a)  * * *

           *       *       *       *       *       *       *

  (c) [No household] Except in a case in which a household is 
receiving transitional benefits during the transitional 
benefits period under section 11(s), no household shall be 
eligible to participate in the food stamp program if it refuses 
to cooperate in providing information to the State agency that 
is necessary for making a determination of its eligibility or 
for completing any subsequent review of its eligibility.

           *       *       *       *       *       *       *

                             ADMINISTRATION

  Sec. 11. (a)  * * *

           *       *       *       *       *       *       *

  (s) Transitional Benefits Option..--
          (1) In general.--A State may provide transitional 
        food stamp benefits to a household that is no longer 
        eligible to receive cash assistance under a State 
        program funded under part A of title IV of the Social 
        Security Act (42 U.S.C. 601 et seq.).
          (2) Transitional benefits period.--Under paragraph 
        (1), a household may continue to receive food stamp 
        benefits for a period of not more than 6 months after 
        the date on which cash assistance is terminated.
          (3) Amount.--During the transitional benefits period 
        under paragraph (2), a household shall receive an 
        amount equal to the allotment received in the month 
        immediately preceding the date on which cash assistance 
        is terminated. A household receiving benefits under 
        this subsection may apply for recertification at any 
        time during the transitional benefit period. If a 
        household reapplies, its allotment shall be determined 
        without regard to this subsection for all subsequent 
        months.
          (4) Determination of future eligibility.--In the 
        final month of the transitional benefits period under 
        paragraph (2), the State agency may--
                  (A) require a household to cooperate in a 
                redetermination of eligibility to receive an 
                authorization card; and
                  (B) renew eligibility for a new certification 
                period for the household without regard to 
                whether the previous certification period has 
                expired.
          (5) Limitation.--A household sanctioned under section 
        6, or for a failure to perform an action required by 
        Federal, State, or local law relating to such cash 
        assistance program, shall not be eligible for 
        transitional benefits under this subsection.

           *       *       *       *       *       *       *

            ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL

  Sec. 16. (a)  * * *

           *       *       *       *       *       *       *

  (c)(1) The program authorized under this Act shall include a 
system that enhances payment accuracy by establishing fiscal 
incentives that require State agencies with high error rates to 
share in the cost of payment error and provide enhanced 
administrative funding to States with the lowest error rates. 
Under such system--
          (A)  * * *

           *       *       *       *       *       *       *

          (C) for any fiscal year in which the Secretary 
        determines that a 95 percent statistical probability 
        exists that for the 3d consecutive year a State 
        agency's payment error rate exceeds the national 
        performance measure for payment error rates announced 
        under paragraph (6), other than for good cause shown, 
        the State agency shall pay to the Secretary an amount 
        equal to--
                  (i) the product of--
                          (I)  * * *
                          (II) the lesser of--
                                  (aa) the ratio of--
                                          (aaa)  * * *
                                          (bbb) [the national 
                                        performance measure for 
                                        the fiscal year] 10 
                                        percent, or

           *       *       *       *       *       *       *

  (4) The Secretary may require a State agency to report any 
factors that the Secretary considers necessary to determine a 
State agency's payment error rate, enhanced administrative 
funding, [or] claim for payment error, or performance under the 
measures established under paragraph (10), under this 
subsection. If a State agency fails to meet the reporting 
requirements established by the Secretary, the Secretary shall 
base the determination on all pertinent information available 
to the Secretary.
  (5) To facilitate the implementation of this subsection each 
State agency shall submit to the Secretary expeditiously data 
regarding its operations in each fiscal year sufficient for the 
Secretary to comply with paragraph (10) and to establish the 
payment error rate for the State agency for such fiscal year 
and determine the amount of either incentive payments under 
paragraph (1)(A) or claims under paragraph (1)(C). The 
Secretary shall make a determination for a fiscal year, and 
notify the State agency of such determination, within nine 
months following the end of each fiscal year. The Secretary 
shall initiate efforts to collect the amount owed by the State 
agency as a claim established under paragraph (1)(C) for a 
fiscal year, subject to the conclusion of any formal or 
informal appeal procedure and administrative or judicial review 
under section 14 (as provided for in paragraph (7)), before the 
end of the fiscal year following such fiscal year.
  (6) At the time the Secretary makes the notification to State 
agencies of their error rates and incentive payments or claims 
pursuant to paragraphs (1)(A) and (1)(C), the Secretary shall 
also announce a national performance measure that shall be one 
percentage point more than the sum of the products of each 
State agency's error rate as developed for the notifications 
under paragraph (5) times that State agency's proportion of the 
total value of national allotments issued for the fiscal year 
using the most recent issuance data available at the time of 
the notifications issued pursuant to paragraph (5). Where a 
State fails to meet reporting requirements pursuant to 
paragraph (4), the Secretary may use another measure of a 
State's error developed pursuant to paragraph (5), to develop 
the national performance measure. The announced national 
performance measure shall be used in determining the State 
share of the cost of payment error under paragraph (1)(C) for 
the fiscal year whose error rates are being announced under 
paragraph (5).

           *       *       *       *       *       *       *

  (10)(A) In addition to the measures established under 
paragraph (1), the Secretary shall measure the performance of 
State agencies in each of the following regards--
          (i) compliance with the deadlines established under 
        paragraphs (3) and (9) of section 11(e); and
          (ii) the percentage of negative eligibility decisions 
        that are made correctly.
  (B) For each fiscal year, the Secretary shall make excellence 
bonus payments of $1,000,000 each to the 5 States with the 
highest combined performance in the 2 measures in subparagraph 
(A) and to the 5 States whose combined performance under the 2 
measures in subparagraph (A) most improved in such fiscal year.
  (C) For any fiscal year in which the Secretary determines 
that a 95 percent statistical probability exists that a State 
agency's performance with respect to any of the 2 performance 
measures established in subparagraph (A) is substantially worse 
than a level the Secretary deems reasonable, other than for 
good cause shown, the Secretary shall investigate that State 
agency's administration of the food stamp program. If this 
investigation determines that the State's administration has 
been deficient, the Secretary shall require the State agency to 
take prompt corrective action.

           *       *       *       *       *       *       *

  (h) Funding of Employment and Training Programs.--
          (1) In general.--
                  (A) Amounts.--To carry out employment and 
                training programs, the Secretary shall reserve 
                for allocation to State agencies, to remain 
                available until expended, from funds made 
                available for each fiscal year under section 
                18(a)(1) the amount of--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (vii) for [fiscal year 2002] each of 
                        the fiscal years 2003 through 2011--
                                  (I) * * *

           *       *       *       *       *       *       *

                  (B) Allocation.--
                          (i) Allocation formula.--The 
                        Secretary shall allocate the amounts 
                        reserved under subparagraph (A) among 
                        the State agencies using a reasonable 
                        formula, as determined and adjusted by 
                        the Secretary each fiscal year, to 
                        reflect--
                                  (I)  * * *

           *       *       *       *       *       *       *

                                  (III) for each of fiscal 
                                years 1999 through [2002] 2011, 
                                the portion of food stamp 
                                recipients who reside in each 
                                State who are not eligible for 
                                an exception under section 
                                6(o)(3) and who--

           *       *       *       *       *       *       *

  (k) Reductions in Payments for Administrative Costs.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Reduction in payment.--
                  (A) In general.--Notwithstanding any other 
                provision of this section, effective for each 
                of fiscal years 1999 through [2002] 2011, the 
                Secretary shall reduce, for each fiscal year, 
                the amount paid under subsection (a) to each 
                State by an amount equal to the amount 
                determined for the food stamp program under 
                paragraph (2)(B). The Secretary shall, to the 
                extent practicable, make the reductions 
                required by this paragraph on a quarterly 
                basis.
                  (B) Application.--If the Secretary of Health 
                and Human Services does not make the 
                determinations required by paragraph (2) by 
                September 30, 1999--
                          (i)  * * *
                          (ii) for each subsequent fiscal year 
                        through fiscal year [2002] 2011, 
                        subparagraph (A) applies.

           *       *       *       *       *       *       *

  (l) The Secretary shall expend up to $10 million in each 
fiscal year to pay 100 percent of the costs of State agencies 
to develop and implement simple application and eligibility 
determination systems.

                RESEARCH, DEMONSTRATION, AND EVALUATIONS

  Sec. 17. (a)  * * *
  (b)(1)(A) The Secretary may conduct on a trial basis, in one 
or more areas of the United States, pilot or experimental 
projects designed to test program changes that might increase 
the efficiency of the food stamp program and improve the 
delivery of food stamp benefits to eligible households, and may 
waive any requirement of this Act to the extent necessary for 
the project to be conducted.
                  (B) Project requirements.--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (vi) Cash payment pilot projects.--
                        Any pilot or experimental project 
                        implemented under this paragraph and 
                        operating as of October 1, 1981, 
                        involving the payment of the value of 
                        allotments in the form of cash to 
                        eligible households all of whose 
                        members are either age sixty-five or 
                        over or entitled to supplemental 
                        security income benefits under title 
                        XVI of the Social Security Act shall be 
                        continued through October 1, [2002] 
                        2011, if the State so requests.

           *       *       *       *       *       *       *

  (i)(1)(A) Subject to the availability of funds specifically 
appropriated to carry out this subsection and subject to the 
other provisions of this subsection, during each of fiscal 
years [1992 through 2002] 2003 through 2011, the Secretary 
shall make grants competitively awarded to public or private 
nonprofit organizations to fund food stamp outreach 
demonstration projects (hereinafter in this subsection referred 
to as the ``projects'') and related evaluations in areas of the 
United States to increase participation by eligible low-income 
households in the food stamp program. The total amount of 
grants provided during a fiscal year may not exceed $5,000,000. 
Funds appropriated to carry out this subsection shall be used 
in the year during which the funds are appropriated. Not more 
than 20 percent of the funds appropriated to carry out this 
subsection shall be used for evaluations.

           *       *       *       *       *       *       *

                    AUTHORIZATION FOR APPROPRIATIONS

  Sec. 18. (a)(1) To carry out this Act, there are authorized 
to be appropriated such sums as are necessary for each of the 
fiscal years [1996 through 2002] 2003 through 2011. Not to 
exceed one-fourth of 1 per centum of the previous year's 
appropriation is authorized in each such fiscal year to carry 
out the provisions of section 17 of this Act, subject to 
paragraph (3).

           *       *       *       *       *       *       *

                              BLOCK GRANT

  Sec. 19. (a)(1)(A) From the sums appropriated under this Act, 
the Secretary shall, subject to the provisions of this section, 
pay to the Commonwealth of Puerto Rico--
          (i) for fiscal year 2000, $1,268,000,000;
          (ii) for fiscal year 2001, the amount required to be 
        paid under clause (i) for fiscal year 2000, as adjusted 
        by the change in the Food at Home series of the 
        Consumer Price Index for All Urban Consumers, published 
        by the Bureau of Labor Statistics of the Department of 
        Labor, for the most recent 12-month period ending in 
        June; [and]
          (iii) for fiscal year 2002, the amount required to be 
        paid under clause (ii) for fiscal year 2001, as 
        adjusted by the percentage by which the thrifty food 
        plan is adjusted for fiscal year 2002 under section 
        3(o)(4); and
          (iv) for each of fiscal years 2003 through 2011, the 
        amount equal to the amount required to be paid under 
        this subparagraph for the preceding fiscal year, as 
        adjusted by the percentage by which the thrifty food 
        plan is adjusted under section 3(o)(4) for the current 
        fiscal year for which the amount is determined under 
        this clause;

           *       *       *       *       *       *       *

SEC. 24. TERRITORY OF AMERICAN SAMOA.

  Effective October 1, 1995, from amounts made available to 
carry out this Act, the Secretary shall pay to the Territory of 
American Samoa not more than $5,300,000 for each of fiscal 
years [1996 through 2002] 2003 through 2011 to finance 100 
percent of the expenditures for the fiscal year for a nutrition 
assistance program extended under section 601(c) of Public Law 
96-597 (48 U.S.C. 1469d(c)).

SEC. 25. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

  (a)  * * *
  (b) Authority To Provide Assistance.--
          (1)  * * *
          (2) Limitation on grants.--The total amount of funds 
        provided as grants under this section may not exceed--
                  (A) $1,000,000 for fiscal year 1996; [and]
                  (B) $2,500,000 for each of fiscal years 1997 
                through [2002] 2001. and
                  (C) $7,500,000 for each of the fiscal years 
                2002 through 2011.

           *       *       *       *       *       *       *

SEC. 27. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE 
                    PROGRAM.

  (a) Purchase of Commodities.--From amounts made available to 
carry out this Act, for each of fiscal years [1997 through 
2002] 2002 through 2011, the Secretary shall purchase 
[$100,000,000] $140,000,000 of a variety of nutritious and 
useful commodities of the types that the Secretary has the 
authority to acquire through the Commodity Credit Corporation 
or under section 32 of the Act entitled ``An Act to amend the 
Agricultural Adjustment Act, and for other purposes'', approved 
August 24, 1935 (7 U.S.C. 612c), and distribute the commodities 
to States for distribution in accordance with section 214 of 
the Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 
U.S.C. 612c note).

           *       *       *       *       *       *       *

  (c) Use of Funds for Related Costs.--For each of the fiscal 
years 2002 through 2011, the Secretary shall use $10,000,000 of 
the funds made available under subsection (a) to pay for the 
direct and indirect costs of the States related to the 
processing, storing, transporting, and distributing to eligible 
recipient agencies of commodities purchased by the Secretary 
under such subsection and commodities secured from other 
sources, including commodities secured by gleaning (as defined 
in section 111 of the Hunger Prevention Act of 1988 (7 U.S.C. 
612c note)).

           *       *       *       *       *       *       *

                              ----------                              

AGRICULTURE AND CONSUMER PROTECTION ACT OF 1973

           *       *       *       *       *       *       *

                     COMMODITY DISTRIBUTION PROGRAM

  Sec. 4. (a) Notwithstanding any other provision of law, the 
Secretary may, during fiscal years [1991 through 2002] 2003 
through 2011 purchase and distribute sufficient agricultural 
commodities with funds appropriated from the general fund of 
the Treasury to maintain the traditional level of assistance 
for food assistance programs as are authorized by law, 
including but not limited to distribution to institutions 
(including hospitals and facilities caring for needy infants 
and children), supplemental feeding programs serving women, 
infants, and children or elderly persons, or both, wherever 
located, disaster areas, summer camps for children, the United 
States Trust Territory of the Pacific Islands, and Indians, 
whenever a tribal organization requests distribution of 
federally donated foods pursuant to section 4(b) of the Food 
Stamp Act of 1977. In providing for commodity distribution to 
Indians, the Secretary shall improve the variety and quantity 
of commodities supplied to Indians in order to provide them an 
opportunity to obtain a more nutritious diet.

           *       *       *       *       *       *       *

                  commodity supplemental food program

  Sec. 5. (a) In carrying out the supplemental feeding program 
(hereinafter referred to as the ``commodity supplemental food 
program'') under section 4 of this Act, the Secretary (1) may 
institute two pilot projects directed at low-income elderly 
persons, including, where feasible, distribution of commodities 
to such persons in their homes; (2) shall provide to the State 
agencies administering the commodity supplemental food program, 
for each of the fiscal year [1991 through 2002] 2003 through 
2011 funds appropriated from the general fund of the Treasury 
in amounts equal to the administrative costs of State and local 
agencies in operating the program, except that the funds 
provided to State agencies each fiscal year may not exceed 20 
percent of the amount appropriated for the commodity 
supplemental food program.

           *       *       *       *       *       *       *

  (d)(1)  * * *
  (2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation shall, to the extent that the Commodity 
Credit Corporation inventory levels permit, provide not less 
than 9,000,000 pounds of cheese and not less than 4,000,000 
pounds of nonfat dry milk in each of the fiscal years [1991 
through 2002] 2003 through 2011 to the Secretary of 
Agriculture. The Secretary shall use such amounts of cheese and 
nonfat dry milk to carry out the commodity supplemental food 
program before the end of each fiscal year.

           *       *       *       *       *       *       *

                              ----------                              

        SECTION 204 OF THE EMERGENCY FOOD ASSISTANCE ACT OF 1983

                    AUTHORIZATION AND APPROPRIATIONS

  Sec. 204. (a)(1) There are authorized to be appropriated 
$50,000,000 for each of the fiscal years [1991 through 2002] 
2003 through 2011, for the Secretary to make available to the 
States to pay for the direct and indirect [administrative] 
costs of the States related to the processing, storage, 
transporting, and distributing to eligible recipient agencies 
of commodities provided by the Secretary under this Act and 
commodities secured from other sources. Funds appropriated 
under this paragraph for any fiscal year shall be allocated to 
the States on an advance basis, dividing such funds among the 
States in the same proportions as the commodities distributed 
under this Act for such fiscal year are divided among the 
States. If a State agency is unable to use all of the funds so 
allocated to it, the Secretary shall reallocate such unused 
funds among the other States.

           *       *       *       *       *       *       *

                              ----------                              

CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

           *       *       *       *       *       *       *

TITLE III--AGRICULTURAL CREDIT

           *       *       *       *       *       *       *

                     Subtitle A--Real Estate Loans

  Sec. 302. (a) The Secretary is authorized to make and insure 
loans under this subtitle to farmers and ranchers in the United 
States, and to farm cooperatives and private domestic 
corporations, partnerships, [and joint operations] joint 
operations, and limited liability companies that are controlled 
by farmers and ranchers and engaged primarily and directly in 
farming or ranching in the United States, subject to the 
conditions specified in this section. To be eligible for such 
loans, applicants who are individuals, or, in the case of 
cooperatives, corporations, partnerships, [and joint 
operations] joint operations, and limited liability companies, 
individuals holding a majority interest in such entity, must 
(1) be citizens of the United States, (2) for direct loans 
only, have either training or farming experience that the 
Secretary determines is sufficient to assure reasonable 
prospects of success in the proposed farming operations, (3) be 
or will become owner-operators of not larger than family farms 
(or in the case of cooperatives, corporations, partnerships, 
[and joint operations] joint operations, and limited liability 
companies in which a majority interest is held by individuals 
who are related by blood or marriage, as defined by the 
Secretary, such individuals must be or will become either 
owners or operators of not larger than a family farm and at 
least one such individual must be or will become an operator of 
not larger than a family farm or, in the case of holders of the 
entire interest who are related by blood or marriage and all of 
whom are or will become farm operators, the ownership interest 
of each such holder separately constitutes not larger than a 
family farm, even if their interests collectively constitute 
larger than a family farm, as defined by the Secretary), and 
(4) be unable to obtain sufficient credit elsewhere to finance 
their actual needs at reasonable rates and terms, taking into 
consideration prevailing private and cooperative rates and 
terms in the community in or near which the applicant resides 
for loans for similar purposes and periods of time. In addition 
to the foregoing requirements of this section, in the case of 
corporations, partnerships, [and joint operations] joint 
operations, and limited liability companies, the family farm 
requirement of clause (3) of the preceding sentence shall apply 
as well to the farm or farms in which the entity has an 
ownership and operator interest and the requirement of clause 
(4) of the preceding sentence shall apply as well to the entity 
in the case of cooperatives, corporations, partnerships, [and 
joint operations] joint operations, and limited liability 
companies.

           *       *       *       *       *       *       *

  Sec. 306. (a)(1) The Secretary is also authorized to make or 
insure loans to associations, including corporations not 
operated for profit, Indian tribes on Federal and State 
reservations and other federally recognized Indian tribes, and 
public and quasi-public agencies to provide for the application 
or establishment of soil conservation practices, shifts in land 
use, the conservation, development, use, and control of water, 
and the installation or improvement of drainage or waste 
disposal facilities, recreational developments, and essential 
community facilities including necessary related equipment, all 
primarily serving farmers, ranchers, farm tenants, farm 
laborers, rural businesses, and other rural residents, and to 
furnish financial assistance or other aid in planning projects 
for such purposes. The Secretary may also make or insure loans 
to communities that have been designated as rural empowerment 
zones or rural enterprise communities pursuant to part I of 
subchapter U of chapter 1 of the Internal Revenue Code of 1986, 
as rural enterprise communities pursuant to section 766 of the 
Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 1999, or as champion 
communities (as determined by the Secretary), to provide for 
the installation or improvement of essential community 
facilities including necessary related equipment, and to 
furnish financial assistance or other aid in planning projects 
for such purposes. The Secretary may also make loans to any 
borrower to whom a loan has been made under the Rural 
Electrification Act of 1936 (7 U.S.C. 901 et seq.), for the 
conservation, development, use, and control of water, and the 
installation of drainage or waste disposal facilities, 
primarily serving farmers, ranchers, farm tenants, farm 
laborers, rural businesses, and other rural residents. When any 
loan made for a purpose specified in this paragraph is sold out 
of the Agricultural Credit Insurance Fund as an insured loan, 
the interest or other income thereon paid to an insured holder 
shall be included in gross income for purposes of chapter 1 of 
the Internal Revenue Code of 1954. With respect to loans of 
less than $500,000 made or insured under this paragraph that 
are evidenced by notes and mortgages, as distinguished from 
bond issues, borrowers shall not be required to appoint bond 
counsel to review the legal validity of the loan whenever the 
Secretary has available legal counsel to perform such review.

           *       *       *       *       *       *       *

          (11) Rural business opportunity grants.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (D) Authorization of appropriations.--There 
                are authorized to be appropriated to carry out 
                this paragraph $7,500,000 for each of fiscal 
                years 1996 through [2002] 2011.

           *       *       *       *       *       *       *

SEC. 306A. [EMERGENCY] COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

  (a) In General.--The Secretary shall provide grants in 
accordance with this section to assist the residents of rural 
areas and small communities to secure adequate quantities of 
safe water--
          (1) [after] when a significant decline in the 
        quantity or quality of water available from the water 
        supplies of such rural areas and small communities is 
        imminent; or

           *       *       *       *       *       *       *

  (c) Eligibility.--To be eligible to obtain a grant under this 
section, an applicant [shall--
          [(1) be a public or private nonprofit entity; and
          [(2) in the case of a grant made under subsection 
        (a)(1), demonstrate to the Secretary that the decline 
        referred to in such subsection occurred within 2 years 
        of the date the application was filed for such grant.] 
        shall be a public or private nonprofit entity.

           *       *       *       *       *       *       *

  (i) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $35,000,000 for each 
of fiscal years 1996 through [2002] 2011.

           *       *       *       *       *       *       *

SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated to carry out this section $30,000,000 for 
        each of fiscal years 2001 [and 2002] through 2011.

           *       *       *       *       *       *       *

SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                    CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                    INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN 
                    RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE 
                    INCOMES.

  (a) Definition of Eligible Individual.--In this section, the 
term ``eligible individual'' means an individual who is a 
member of a household, the combined income of whose members for 
the most recent 12-month period for which the information is 
available, is not more than 100 percent of the median 
nonmetropolitan household income for the State or territory in 
which the individual resides, according to the most recent 
decennial census of the United States.
  (b) Grants.--The Secretary may make grants to private 
nonprofit organizations for the purpose of assisting eligible 
individuals in obtaining financing for the construction, 
refurbishing, and servicing of individual household water well 
systems in rural areas that are owned (or to be owned) by the 
eligible individuals.
  (c) Use of Funds.--A grant made under this section may be--
          (1) used, or invested to provide income to be used, 
        to carry out subsection (b); and
          (2) used to pay administrative expenses associated 
        with providing the assistance described in subsection 
        (b).
  (d) Priority in Awarding Grants.--In awarding grants under 
this section, the Secretary shall give priority to an applicant 
that has substantial expertise and experience in promoting the 
safe and productive use of individually-owned household water 
well systems and ground water.

           *       *       *       *       *       *       *

  Sec. 310B. (a) The Secretary may also make and insure loans 
to public, private, or cooperative organizations organized for 
profit or nonprofit, to Indian tribes on Federal and State 
reservations or other federally recognized Indian tribal 
groups, or to individuals for the purposes of (1) improving, 
developing, or financing business, industry, and employment and 
improving the economic and environmental climate in rural 
communities, including pollution abatement and control, (2) the 
conservation, development, and use of water for aquaculture 
purposes in rural areas, (3) reducing the reliance on 
nonrenewable energy resources by encouraging the development 
and construction of solar energy systems and other renewable 
energy systems including wind energy systems and anaerobic 
digestors for the purpose of energy generation, including the 
modification of existing systems, in rural areas, and (4) to 
facilitate economic opportunity for industries undergoing 
adjustment from terminated Federal agricultural price and 
income support programs or increased competition from foreign 
trade. For the purposes of this subsection, the term ``solar 
energy'' means energy derived from sources (other than fossil 
fuels) and technologies included in the Federal Nonnuclear 
Energy Research and Development Act of 1974, as amended. Such 
loans, when originated, held, and serviced by other lenders, 
may be guaranteed by the Secretary under this section without 
regard to paragraphs (1) and (4) of section 333. As used in 
this subsection, the term ``aquaculture'' means the culture or 
husbandry of aquatic animals or plants by private industry for 
commercial purposes including the culture and growing of fish 
by private industry for the purpose of creating or augmenting 
publicly owned and regulated stocks of fish. No loan may be 
made, insured, or guaranteed under this subsection that exceeds 
[$25,000,000] $100,000,000 in principal amount.

           *       *       *       *       *       *       *

  (e) Rural Cooperative Development Grants.--
          (1)  * * *

           *       *       *       *       *       *       *

          (9) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $50,000,000 for each of fiscal years 1996 
        through [2002] 2011.

           *       *       *       *       *       *       *

  (g) Loan Guarantees for the Purchase of Cooperative Stock.--
          (1)  * * *
          (2) Loan guarantees.--The Secretary may guarantee 
        loans under this section to individual farmers for the 
        purpose of purchasing [start-up capital stock of a 
        farmer cooperative established for the purpose of 
        processing an agricultural commodity.] capital stock of 
        a farmer cooperative established for an agricultural 
        purpose.

           *       *       *       *       *       *       *

  (h) Intangible Assets and Subordinated Unsecured Debt 
Required To Be Considered in Determining Eligibility of Farmer-
Owned Cooperative for Business and Industry Guaranteed Loan.--
In determining whether a cooperative organization owned by 
farmers is eligible for a guaranteed loan under subsection 
(a)(1), the Secretary may consider the value of the intangible 
assets and subordinated unsecured debt of the cooperative 
organization.
  (i) Special Rules Applicable to Farmer Cooperatives Under the 
Business and Industry Loan Program.--In determining whether a 
cooperative organization owned by farmers is eligible for a 
guaranteed loan under subsection (a)(1), the Secretary shall 
not apply any lending restriction based on population to the 
area in which the cooperative organization is located.

           *       *       *       *       *       *       *

SEC. 310E. DOWN PAYMENT LOAN PROGRAM.

  (a)  * * *
  (b) Loan Terms.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Duration.--Each loan under this section shall be 
        made for a period of [10] 15 years or less, at the 
        option of the borrower.

           *       *       *       *       *       *       *

  (c) Limitations.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Prohibited types of financing.--The Secretary 
        shall not make a loan under this section with respect 
        to a farm or ranch if the farm or ranch is to be 
        acquired with other financing that contains any of the 
        following conditions:
                  (A) The financing is to be amortized over a 
                period of less than 30 years.
                  (B) A balloon payment will be due on the 
                financing during the [10-year] 15-year period 
                beginning on the date the loan is to be made by 
                the Secretary.

           *       *       *       *       *       *       *

                      Subtitle B--Operating Loans

  Sec. 311. (a) The Secretary is authorized to make and insure 
loans under this subtitle to farmers and ranchers in the United 
States, and to farm cooperatives and private domestic 
corporations, partnerships, [and joint operations] joint 
operations, and limited liability companies that are controlled 
by farmers and ranchers and engaged primarily and directly in 
farming or ranching in the United States, subject to the 
conditions specified in this section. To be eligible for such 
loans, applicants who are individuals, or, in the case of 
cooperatives, corporations, partnerships, [and joint 
operations] joint operations, and limited liability companies, 
individuals holding a majority interest in such entity, must 
(1) be citizens of the United States, (2) for direct loans 
only, have either training or farming experience that the 
Secretary determines is sufficient to assure reasonable 
prospects of success in the proposed farming operations, (3) be 
or will become operators of not larger than family farms (or in 
the case of cooperatives, corporations, partnerships, [and 
joint operations] joint operations, and limited liability 
companies in which a majority interest is held by individuals 
who are related by blood or marriage, as defined by the 
Secretary, such individuals must be or will become either 
owners or operators of not larger than a family farm and at 
least one such individual must be or will become an operator of 
not larger than a family farm or, in the case of holders of the 
entire interest who are related by blood or marriage and all of 
whom are or will become farm operators, the ownership interest 
of each such holder separately constitutes not larger than a 
family farm, even if their interests collectively constitute 
larger than a family farm, as defined by the Secretary), and 
(4) be unable to obtain sufficient credit elsewhere to finance 
their actual needs at reasonable rates and terms, taking into 
consideration prevailing private and cooperative rates and 
terms in the community in or near which the applicant resides 
for loans for similar purposes and periods of time. In addition 
to the foregoing requirements of this subsection, in the case 
of corporations, partnerships, [and joint operations] joint 
operations, and limited liability companies, the family farm 
requirement of clause (3) of the preceding sentence shall apply 
as well to the farm or farms in which the entity has an 
operator interest and the requirement of clause (4) of the 
preceding sentence shall apply as well to the entity in the 
case of cooperatives, corporations, partnerships, [and joint 
operations] joint operations, and limited liability companies.

           *       *       *       *       *       *       *

                      Subtitle C--Emergency Loans

  Sec. 321. (a) The Secretary shall make and insure loans under 
this subtitle only to the extent and in such amounts as 
provided in advance in appropriation Acts to (1) established 
farmers, ranchers, or persons engaged in aquaculture, who are 
citizens of the United States and who are owner-operators (in 
the case of loans for a purpose under subtitle A) or operators 
(in the case of loans for a purpose under subtitle B) of not 
larger than family farms, and (2) farm cooperatives, private 
domestic corporations, partnerships, [or joint operations] 
joint operations, or limited liability companies (A) that are 
engaged primarily in farming, ranching, or aquaculture, and (B) 
in which a majority interest is held by individuals who are 
citizens of the United States and who are owner-operators (in 
the case of loans for a purpose under subtitle A) or operators 
(in the case of loans for a purpose under subtitle B) of not 
larger than family farms (or in the case of such cooperatives, 
corporations, partnerships, [or joint operations] joint 
operations, or limited liability companies in which a majority 
interest is held by individuals who are related by blood or 
marriage, as defined by the Secretary, such individuals must be 
either owners or operators of not larger than a family farm and 
at least one such individual must be an operator of not larger 
than a family farm), where the Secretary finds that the 
applicants' farming, ranching, or aquaculture operations have 
been substantially affected by [a natural disaster in the 
United States or by] a quarantine imposed by the Secretary 
under the Plant Protection Act or the animal quarantine laws 
(as defined in section 2509 of the Food, Agriculture, 
Conservation, and Trade Act of 1990), an economic emergency 
resulting from sharply increasing energy costs as described in 
section 329(b), a natural disaster in the United States, or a 
major disaster or emergency designated by the President under 
the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act: Provided, That they have experience and resources 
necessary to assure a reasonable prospect for successful 
operation with the assistance of such loan and are not able to 
obtain sufficient credit elsewhere. In addition to the 
foregoing requirements of this subsection, in the case of farm 
cooperatives, private domestic corporations, partnerships, [and 
joint operations] joint operations, and limited liability 
companies, the family farm requirement of the preceding 
sentence shall apply as well to all farms in which the entity 
has an ownership and operator interest (in the case of loans 
for a purpose under subtitle A) or an operator interest (in the 
case of loans for a purpose under subtitle B). The Secretary 
shall accept applications from, and make or insure loans 
pursuant to the requirements of this subtitle to, applicants, 
otherwise eligible under this subtitle, that conduct farming, 
ranching, or aquaculture operations in any county contiguous to 
a county where the Secretary has found that farming, ranching, 
or aquaculture operations have been substantially affected by 
[a natural disaster in the United States or by] a quarantine 
imposed by the Secretary under the Plant Protection Act or the 
animal quarantine laws (as defined in section 2509 of the Food, 
Agriculture, Conservation, and Trade Act of 1990), an economic 
emergency resulting from sharply increasing energy costs as 
described in section 329(b), a natural disaster in the United 
States, or a major disaster or emergency designated by the 
President under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act. The Secretary shall accept 
applications for assistance under this subtitle from persons 
affected by [a natural disaster] such a quarantine, economic 
emergency, or natural disaster at any time during the eight-
month period beginning (A) on the date on which the Secretary 
determines that farming, ranching, or aquaculture operations 
have been substantially affected [by such natural disaster] by 
such quarantine, economic emergency, or natural disaster or (B) 
on the date the President makes the major disaster or emergency 
designation with respect to such natural disaster, as the case 
may be.

           *       *       *       *       *       *       *

  Sec. 323. Loans may be made or insured under this subtitle 
for any purpose authorized for loans under subtitle A or B of 
this title and for crop or livestock changes that are 
necessitated by a quarantine, natural disaster, major disaster, 
or emergency referred to in section 321(a), including, 
notwithstanding any other provision of this title, an economic 
emergency resulting from sharply increasing energy costs as 
described in section 329(b) and that are deemed desirable by 
the applicant, subject to the limitations on the amounts of 
loans provided in section 324(a) of this title.

SEC. 324. TERMS OF LOANS.

  (a) Maximum Amount of Loan.--The Secretary may not make a 
loan under this subtitle to a borrower who has suffered a loss 
in an amount that--
          (1) exceeds the actual loss caused by a disaster; 
        [or]
          (2) would cause the total indebtedness of the 
        borrower under this subtitle to exceed $500,000[.];
          (3) in the case of a loan made in response to a 
        quarantine referred to in section 321, exceeds 
        $500,000; or
          (4) in the case of a loan made in response to an 
        economic emergency referred to in section 321, exceeds 
        $200,000.

           *       *       *       *       *       *       *

  [Sec. 329. The]

SEC. 329. LOSS CONDITIONS.

  (a) In General.--Except as provided in subsection (b), the 
Secretary shall make financial assistance under this subtitle 
available to any applicant seeking assistance based on 
production losses if the applicant shows that a single 
enterprise which constitutes a basic part of the applicant's 
farming, ranching, or aquaculture operation has sustained at 
least a 30 per centum loss of normal per acre or per animal 
production, or such lesser per centum of loss as the Secretary 
may determine, as a result of the disaster based upon the 
average monthly price in effect for the previous year and the 
applicant otherwise meets the conditions of eligibility 
prescribed under this subtitle. Such loans shall be made 
available based upon 80 per centum, or such greater per centum 
as the Secretary may determine, of the total calculated actual 
production loss sustained by the applicant.
  (b) Loss Resulting From Sharply Increasing Energy Costs.--The 
Secretary shall make financial assistance under this subtitle 
available to any applicant seeking assistance based on an 
income loss resulting from sharply increasing energy costs 
referred to in section 323 if--
          (1) the price of electricity, gasoline, diesel fuel, 
        natural gas, propane, or other equivalent fuel during 
        any 3-month period is at least 50 percent greater than 
        the average price of the same form of energy during the 
        preceding 5 years, as determined by the Secretary; and
          (2) the income loss of the applicant is directly 
        related to expenses incurred to prevent livestock 
        mortality, the degradation of a perishable agricultural 
        commodity, or damage to a field crop.

                 Subtitle D--Administrative Provisions

  Sec. 331. (a)  * * *
  (b) The Secretary may--
          (1)  * * *
          (2) administer the loan guarantee program under 
        section 339(c) through central offices established in 
        States or in multi-State areas;
          [(2)] (3) accept and utilize voluntary and 
        uncompensated services, and, with the consent of the 
        agency concerned, utilize the officers, employees, 
        equipment, and information of any agency of the Federal 
        Government, or of any State, territory, or political 
        subdivision;
          [(3)] (4) within the limits of appropriations made 
        therefor, make necessary expenditures for purchase or 
        hire of passenger vehicles, and such other facilities 
        and services as he may from time to time find necessary 
        for the proper administration of this title;
          [(4)] (5) compromise, adjust, reduce, or charge-off 
        debts or claims (including debts and claims arising 
        from loan guarantees), and adjust, modify, subordinate, 
        or release the terms of security instruments, leases, 
        contracts, and agreements entered into or administered 
        by the Consolidated Farm Service Agency, Rural 
        Utilities Service, Rural Housing Service, Rural 
        Business-Cooperative Service, or a successor agency, or 
        the Rural Development Administration, except for 
        activities under the Housing Act of 1949. In the case 
        of a security instrument entered into under the Rural 
        Electrification Act of 1936 (7 U.S.C. 901 et seq.), the 
        Secretary shall notify the Attorney General of the 
        intent of the Secretary to exercise the authority of 
        the Secretary under this paragraph. The Secretary may 
        not require liquidation of property securing any farmer 
        program loan or acceleration of any payment required 
        under any farmer program loan as a prerequisite to 
        initiating an action authorized under this subsection. 
        The Secretary may release borrowers or others obligated 
        on a debt, except for debt incurred under the Housing 
        Act of 1949, from personal liability with or without 
        payment of any consideration at the time of the 
        compromise, adjustment, reduction, or charge-off of any 
        claim, except that no compromise, adjustment, 
        reduction, or charge-off of any claim may be made or 
        carried out--
                  (A)  * * *

           *       *       *       *       *       *       *

          [(5)] (6) except for activities conducted under the 
        Housing Act of 1949, collect all claims and obligations 
        administered by the Farmers Home Administration, or 
        under any mortgage, lease, contract, or agreement 
        entered into or administered by the Farmers Home 
        Administration and, if in his judgment necessary and 
        advisable, pursue the same to final collection in any 
        court having jurisdiction;
          [(6)] (7) release mortgage and other contract liens 
        if it appears that they have no present or prospective 
        value or that their enforcement likely would be 
        ineffectual or uneconomical;
          [(7)] (8) obtain fidelity bonds protecting the 
        Government against fraud and dishonesty of officers and 
        employees of the Farmers Home Administration in lieu of 
        faithful performance of duties bonds under section 14, 
        title 6, United States Code, and regulations issued 
        pursuant thereto, but otherwise in accordance with the 
        provisions thereof;
          [(8)] (9) consent to (A) long-term leases of 
        facilities financed under this title notwithstanding 
        the failure of the lessee to meet any of the 
        requirements of this title if such long-term leases are 
        necessary to ensure the continuation of services for 
        which financing was extended to the lessor, and (B) the 
        transfer of property securing any loan or financed by 
        any loan or grant made, insured, or held by the 
        Secretary under this title, or the provisions of any 
        other law administered by the Rural Development 
        Administration or by the Farmers Home Administration, 
        upon such terms as he deems necessary to carry out the 
        purpose of the loan or grant or to protect the 
        financial interest of the Government, and shall 
        document the consent of the Secretary for the transfer 
        of the property of a borrower in the file of the 
        borrower; and
          [(9)] (10) notwithstanding that an area ceases, or 
        has ceased, to be ``rural'', in a ``rural area'', or an 
        eligible area, make loans and grants, and approve 
        transfers and assumptions, under this title on the same 
        basis as though the area still was rural in connection 
        with property securing any loan made, insured, or held 
        by the Secretary under this title or in connection with 
        any property held by the Secretary under this title.
  (c) The Secretary may use for the prosecution or defense of 
any claim or obligation described in subsection [(b)(5)] (b)(6) 
the Attorney General, the General Counsel of the Department of 
Agriculture, or a private attorney who has entered into a 
contract with the Secretary.
  (d) [Temporary] Authority To Enter Into Contracts.--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Sunset provision.--This subsection shall be 
        effective until September 30, [2002] 2011.

           *       *       *       *       *       *       *

  Sec. 333. In connection with loans made or insured under this 
title, the Secretary shall require--
          (1)  * * *
          [(2) except with respect to a loan under section 306, 
        310B, or 314, the county or area committee established 
        under section 8(b)(5)(B) of the Soil Conservation and 
        Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)) to 
        certify in writing--
                  [(A) that an annual review of the credit 
                history and business operation of the borrower 
                has been conducted; and
                  [(B) that a review of the continued 
                eligibility of the borrower for the loan has 
                been conducted;]
          [(3)] (2) except for guaranteed loans, an agreement 
        by the borrower that if at any time it shall appear to 
        the Secretary that the borrower may be able to obtain a 
        loan from a production credit association, a Federal 
        land bank, or other responsible cooperative or private 
        credit source (or, in the case of a borrower under 
        section 310D of this title, the borrower may be able to 
        obtain a loan under section 302 of this title), at 
        reasonable rates and terms for loans for similar 
        purposes and periods of time, the borrower will, upon 
        request by the Secretary, apply for and accept such 
        loan in sufficient amount to repay the Secretary or the 
        insured lender, or both, and to pay for any stock 
        necessary to be purchased in a cooperative lending 
        agency in connection with such loan;
          [(4)] (3) such provision for supervision of the 
        borrower's operations as the Secretary shall deem 
        necessary to achieve the objectives of the loan and 
        protect the interests of the United States; and
          [(5)] (4) the application of a person who is a 
        veteran of any war, as defined in section 101(12) of 
        title 38, United States Code, for a loan under subtitle 
        A or B to be given preference over a similar 
        application from a person who is not a veteran of any 
        war, if the applications are on file in a county or 
        area office at the same time.

  Sec. 333A. (a)  * * *

           *       *       *       *       *       *       *

  (g)(1) The Secretary shall provide to lenders a short, 
simplified application form for guarantees under this title of 
loans the principal amount of which is [$50,000] $150,000 or 
less.

           *       *       *       *       *       *       *

SEC. 339. RULES AND REGULATIONS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Certified Lenders Program.--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Effect of certification.--Notwithstanding any 
        other provision of law:
                  (A) The Secretary shall guarantee 80 percent 
                of a loan made under this subsection by a 
                certified lending institution as described in 
                paragraph (1), subject to county committee 
                certification that the borrower of the loan 
                meets the eligibility requirements and such 
                other criteria as may be applicable to loans 
                guaranteed by the Secretary under other 
                provisions of this title, except that the 
                Secretary may guarantee such lesser percentage 
                as the Secretary determines appropriate of such 
                a loan if the income of the borrower is less 
                than the income necessary to meet the 
                requirements of subsection (b).

           *       *       *       *       *       *       *

  (d) Preferred Certified Lenders Program.--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Effect of preferred lender certification.--
        Notwithstanding any other provision of law, the 
        Secretary shall--
                  (A) guarantee 80 percent of an approved loan 
                made by a certified lending institution as 
                described in this subsection, subject to county 
                committee certification that the borrower meets 
                the eligibility requirements or such other 
                criteria as may be applicable to loans 
                guaranteed by the Secretary under other 
                provisions of this title, except that the 
                Secretary may guarantee such lesser percentage 
                as the Secretary determines appropriate of such 
                a loan if the income of the borrower is less 
                than the income necessary to meet the 
                requirements of subsection (b);

           *       *       *       *       *       *       *

  Sec. 343. (a) As used in this title:
          (1)  * * *

           *       *       *       *       *       *       *

          (12) Debt forgiveness.--
                  (A)  * * *
                  (B) [Loan restructuring.--The term ``debt 
                forgiveness'' does not include consolidation, 
                rescheduling, reamortization, or deferral.]
                  (B) Exceptions.--The term ``debt 
                forgiveness'' does not include--
                          (i) consolidation, rescheduling, 
                        reamortization, or deferral of a loan; 
                        or
                          (ii) any write-down provided as a 
                        part of a resolution of a 
                        discrimination complaint against the 
                        Secretary.

           *       *       *       *       *       *       *

  (c) Livestock Includes Horses.--The term ``livestock'' 
includes horses.

           *       *       *       *       *       *       *

SEC. 345. SUNSET OF DIRECT LOAN PROGRAMS.

  (a) In General.--Except as provided in subsection (b), 
beginning 5 years after the date of the enactment of this 
section, the Secretary may not make a direct loan under section 
302 or 311.
  (b) Exceptions.--Subsection (a) shall not apply to any 
authority to make direct loans to youths, qualified beginning 
farmers or ranchers, or members of socially disadvantaged 
groups.
  (c) No Effect on Existing Contracts.--Subsection (a) shall 
not be construed to permit the violation of any contract 
entered into before the 5-year period described in subsection 
(a).
  Sec. 346. (a)  * * *
  (b) Authorization for Loans.--
          (1) In general.--The Secretary may make or guarantee 
        loans under subtitles A and B from the Agricultural 
        Credit Insurance Fund provided for in section 309 in 
        [not more than the following amounts:
                  [(A) Fiscal year 1996.--For fiscal year 1996, 
                $3,085,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,500,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $600,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $1,900,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.
                  [(B) Fiscal year 1997.--For fiscal year 1997, 
                $3,165,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,580,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $630,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $1,950,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.
                  [(C) Fiscal year 1998.--For fiscal year 1998, 
                $3,245,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,660,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $660,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $2,000,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.
                  [(D) Fiscal year 1999.--For fiscal year 1999, 
                $3,325,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,740,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $690,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $2,050,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.
                  [(E) Fiscal year 2000.--For fiscal year 2000, 
                $3,435,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $2,100,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.
                  [(F) Fiscal year 2001.--For fiscal year 2001, 
                $3,435,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $2,100,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.
                  [(G) Fiscal year 2002.--For fiscal year 2002, 
                $3,435,000,000, of which--
                          [(i) $585,000,000 shall be for direct 
                        loans, of which--
                                  [(I) $85,000,000 shall be for 
                                farm ownership loans under 
                                subtitle A; and
                                  [(II) $500,000,000 shall be 
                                for operating loans under 
                                subtitle B; and
                          [(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                  [(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                  [(II) $2,100,000,000 shall be 
                                for guarantees of operating 
                                loans under subtitle B.] such 
                                sums as may be necessary.
          (2) Beginning farmers and ranchers.--
                  (A) Direct loans.--
                          (i)  * * *
                          (ii) Operating loans.--Of the amounts 
                        made available under paragraph (1) for 
                        direct operating loans, the Secretary 
                        shall reserve for qualified beginning 
                        farmers and ranchers--
                                  (I)  * * *

           *       *       *       *       *       *       *

                                  (III) for each of fiscal 
                                years [2000 through 2002] 2002 
                                through 2011, 35 percent.

           *       *       *       *       *       *       *

SEC. 351. INTEREST RATE REDUCTION PROGRAM.

  (a) Establishment of Program.--
          (1)  * * *
          (2) Termination of authority.--The authority provided 
        by this subsection shall terminate on September 30, 
        [2002] 2011.

           *       *       *       *       *       *       *

SEC. 355. TARGET PARTICIPATION RATES.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Operating Loans.--
          (1)  * * *
          (2) Reservation and allocation.--The Secretary shall, 
        to the greatest extent practicable, reserve and 
        allocate the proportion of each State's loan funds made 
        available under subtitle B that is equal to that 
        State's target participation rate for use by the 
        socially disadvantaged farmers or ranchers in that 
        State. The Secretary shall, to the extent practicable, 
        distribute the total so derived on a county by county 
        basis according to the number of socially disadvantaged 
        farmers or ranchers in the county. [Any funds reserved 
        and allocated for purposes of this paragraph, but not 
        used shall be reallocated within such State.] Any funds 
        reserved and allocated under this paragraph but not 
        used within a State shall, to the extent necessary to 
        satisfy pending applications under this title, be 
        available for use by socially disadvantaged farmers and 
        ranchers in other States, as determined by the 
        Secretary, and any remaining funds shall be reallocated 
        within the State.

           *       *       *       *       *       *       *

SEC. 360. LOAN ASSESSMENTS.

  (a) In General.--[After an applicant is determined eligible 
for assistance under this title by the appropriate county 
committee established pursuant to section 332, the] The 
Secretary shall evaluate, in accordance with regulations issued 
by the Secretary, the farming plan and financial situation of 
each qualified farmer or rancher applicant.

           *       *       *       *       *       *       *

SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS.

  (a)  * * *
  (b) Prohibition of Loans for Borrowers That Have Received 
Debt Forgiveness.--
          [(1) Prohibitions.--Except as provided in paragraph 
        (2)--
                  [(A) the Secretary may not make a loan under 
                this title to a borrower that has received debt 
                forgiveness on a loan made or guaranteed under 
                this title; and
                  [(B) the Secretary may not guarantee a loan 
                under this title to a borrower that has 
                received--
                          [(i) debt forgiveness after April 4, 
                        1996, on a loan made or guaranteed 
                        under this title; or
                          [(ii) received debt forgiveness on 
                        more than 3 occasions on or before 
                        April 4, 1996.]
          (1) Prohibitions.--Except as provided in paragraph 
        (2)--
                  (A) the Secretary may not make a loan under 
                this title to a borrower who, on more than 2 
                occasions, received debt forgiveness on a loan 
                made or guaranteed under this title; and
                  (B) the Secretary may not guarantee a loan 
                under this title to a borrower who, on more 
                than 3 occasions, received debt forgiveness on 
                a loan made or guaranteed under this title.

           *       *       *       *       *       *       *

SEC. 376. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, 
                    OR AREA COMMITTEES.

  The Secretary shall employ personnel of a State, county or 
area committee established under section 8(b)(5) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C 590h(b)(5)) 
to make and service loans under this title to the extent the 
personnel have been trained to do so.

SEC. 377. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE 
                    FOR LOANS AND LOAN GUARANTEES.

  The Secretary shall not prohibit an employee of a State, 
county or area committee established under section 8(b)(5) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)(5)) or an employee of the Department of Agriculture 
from obtaining a loan or loan guarantee under subtitle A, B or 
C of this title if an office of the Department of Agriculture 
other than the office in which the employee is located 
determines that the employee is otherwise eligible for the loan 
or loan guarantee.

Subtitle E--Rural Community Advancement Program

           *       *       *       *       *       *       *

SEC. 381E. RURAL DEVELOPMENT TRUST FUND.

  (a)  * * *

           *       *       *       *       *       *       *

  (e) National Reserve Account.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Applicable percentage defined.--In paragraph (1), 
        the term ``applicable percentage'' means, with respect 
        to a fiscal year--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (F) 5 percent for [fiscal year 2002] each of 
                the fiscal years 2002 through 2011.

           *       *       *       *       *       *       *

SEC. 381O. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

  (a)  * * *
  (b) Rural Business Investment Pool.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Amount.--The Secretary shall issue guarantees 
        covering not more than $15,000,000 of contingent 
        liabilities for each of fiscal years 1996 through 
        [2002] 2011.

           *       *       *       *       *       *       *

SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

  (a) Rural Area Defined.--In this section, the term ``rural 
area'' means such areas as the Secretary may determine.
  (b) Establishment.--There is established a National Rural 
Development Partnership (in this section referred to as the 
``Partnership''), which shall be composed of--
          (1) the National Rural Development Coordinating 
        Committee established in accordance with subsection 
        (c); and
          (2) State rural development councils established in 
        accordance with subsection (d).
  (c) National Rural Development Coordinating Committee.--
          (1) Composition.--The National Rural Development 
        Coordinating Committee (in this section referred to as 
        the ``Coordinating Committee'') may be composed of--
                  (A) representatives of all Federal 
                departments and agencies with policies and 
                programs that affect or benefit rural areas;
                  (B) representatives of national associations 
                of State, regional, local, and tribal 
                governments and intergovernmental and multi-
                jurisdictional agencies and organizations;
                  (C) national public interest groups; and
                  (D) other national nonprofit organizations 
                that elect to participate in the activities of 
                the Coordinating Committee.
          (2) Functions.--The Coordinating Committee may--
                  (A) provide support for the work of the State 
                rural development councils established in 
                accordance with subsection (d); and
                  (B) develop and facilitate strategies to 
                reduce or eliminate conflicting or duplicative 
                administrative and regulatory impediments 
                confronting rural areas.
  (d) State Rural Development Councils.--
          (1) Composition.--A State rural development council 
        may--
                  (A) be composed of representatives of 
                Federal, State, local, and tribal governments, 
                and nonprofit organizations, the private 
                sector, and other entities committed to rural 
                advancement; and
                  (B) have a nonpartisan and nondiscriminatory 
                membership that is broad and representative of 
                the economic, social, and political diversity 
                of the State.
          (2) Functions.--A State rural development council 
        may--
                  (A) facilitate collaboration among Federal, 
                State, local, and tribal governments and the 
                private and non-profit sectors in the planning 
                and implementation of programs and policies 
                that affect the rural areas of the State, and 
                to do so in such a way that provides the 
                greatest degree of flexibility and innovation 
                in responding to the unique needs of the State 
                and the rural areas; and
                  (B) in conjunction with the Coordinating 
                Committee, develop and facilitate strategies to 
                reduce or eliminate conflicting or duplicative 
                administrative and regulatory impediments 
                confronting the rural areas of the State.
  (e) Administration of the Partnership.--The Secretary may 
provide for any additional support staff to the Partnership as 
the Secretary determines to be necessary to carry out the 
duties of the Partnership.
  (f) Termination.--The authority provided by this section 
shall terminate on the date that is 5 years after the date of 
the enactment of this section.

           *       *       *       *       *       *       *

                              ----------                              

DEPARTMENT OF AGRICULTURE REORGANIZATION ACT OF 1994

           *       *       *       *       *       *       *

TITLE II--DEPARTMENT OF AGRICULTURE REORGANIZATION

           *       *       *       *       *       *       *

Subtitle D--Food, Nutrition, and Consumer Services

           *       *       *       *       *       *       *

SEC. 246. NATURAL RESOURCES CONSERVATION SERVICE.

  (a)  * * *
  (b) Functions.--If the Secretary establishes the Natural 
Resources Conservation Service under subsection (a), the 
Secretary is authorized to assign to the Service jurisdiction 
over the following:
          (1)  * * *
          [(2) The forestry incentive program under section 4 
        of the Cooperative Forestry Assistance Act of 1978 (16 
        U.S.C. 2103).]

           *       *       *       *       *       *       *

Subtitle H--National Appeals Division

           *       *       *       *       *       *       *

SEC. 278. DIRECTOR REVIEW OF DETERMINATIONS OF HEARING OFFICERS.

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Finality of Certain Appeal Decisions.--If an appellant 
prevails at the regional level in an administrative appeal of a 
decision by the Division, the agency may not pursue an 
administrative appeal of that decision to the national level.

           *       *       *       *       *       *       *

SEC. 281. CONFORMING AMENDMENTS RELATING TO NATIONAL APPEALS DIVISION.

  (a) Decisions of State, County, and Area Committees.--
          (1) Application of subsection.--This subsection shall 
        apply only with respect to functions of the 
        Consolidated Farm Service Agency or the Commodity 
        Credit Corporation that are under the jurisdiction of a 
        State, county, or area committee established under 
        section 8(b)(5) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h(b)(5)) or an employee of 
        such a committee, except functions performed pursuant 
        to section 376 of the Consolidated Farm and Rural 
        Development Act.

           *       *       *       *       *       *       *

                              ----------                              

AGRICULTURAL RISK PROTECTION ACT OF 2000

           *       *       *       *       *       *       *

TITLE II--AGRICULTURAL ASSISTANCE

           *       *       *       *       *       *       *

                          Subtitle C--Research

SEC. 221. CARBON CYCLE RESEARCH.

  (a) In General.--[Of the amount made available under section 
261(a)(2), the Secretary shall use $15,000,000 to provide] To 
the extent funds are made available for this purpose, the 
Secretary shall provide a grant to the Consortium for 
Agricultural Soils Mitigation of Greenhouse Gases, acting 
through Kansas State University, to develop, analyze, and 
implement, through the land grant universities described in 
subsection (b), carbon cycle research at the national, 
regional, and local levels.

           *       *       *       *       *       *       *

  (d) Administrative Costs.--Not more than 3 percent of the 
funds made available [under subsection (a)] for this section 
may be used by the Secretary to pay administrative costs 
incurred in carrying out this section.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated for fiscal years 2002 through 2011 such sums as 
may be necessary to carry out this section.

           *       *       *       *       *       *       *

                   Subtitle D--Agricultural Marketing

SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

  (a) Grant Program.--
          [(1) Establishment and purposes.--Of the amount made 
        available under section 261(a)(2), $15,000,000 shall be 
        used by the Secretary to award competitive grants to 
        eligible independent producers (as determined by the 
        Secretary) of value-added agricultural commodities and 
        products of agricultural commodities to assist an 
        eligible producer--
                  [(A) to develop a business plan for viable 
                marketing opportunities for a value-added 
                agricultural commodity or product of an 
                agricultural commodity; or
                  [(B) to develop strategies for the ventures 
                that are intended to create marketing 
                opportunities for the producers.]
          (1) Establishment and purposes.--In each of fiscal 
        years 2002 through 2011, the Secretary shall use 
        $50,000,000 of the funds of the Commodity Credit 
        Corporation to award competitive grants--
                  (A) to eligible independent producers (as 
                determined by the Secretary) of value-added 
                agricultural commodities and products of 
                agricultural commodities to assist an eligible 
                producer--
                          (i) to develop a business plan for 
                        viable marketing opportunities for a 
                        value-added agricultural commodity or 
                        product of an agricultural commodity; 
                        or
                          (ii) to develop strategies for the 
                        ventures that are intended to create 
                        marketing opportunities for the 
                        producers; and
                  (B) to public bodies, institutions of higher 
                learning, and trade associations to assist such 
                entities--
                          (i) to develop a business plan for 
                        viable marketing opportunities in 
                        emerging markets for a value-added 
                        agricultural commodity or product of an 
                        agricultural commodity; or
                          (ii) to develop strategies for the 
                        ventures that are intended to create 
                        marketing opportunities in emerging 
                        markets for the producers.
          (2) Amount of grant.--The total amount provided under 
        this subsection to a grant recipient may not exceed 
        $500,000.
          (3) [Producer] Grantee strategies.--A [producer] 
        grantee that receives a grant under paragraph (1) shall 
        use the grant--
                  (A) to develop a business plan or perform a 
                feasibility study to establish a viable 
                marketing opportunity for a value-added 
                agricultural commodity or product of an 
                agricultural commodity; or
                  (B) to provide capital to establish alliances 
                or business ventures that allow the [producer] 
                grantee to better compete in domestic or 
                international markets.

           *       *       *       *       *       *       *

TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

           *       *       *       *       *       *       *

SEC. 302. FINDINGS.

  Congress finds that--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) biobased fuels, such as ethanol or biodiesel, 
        have the clear potential to be sustainable, low cost, 
        and high performance fuels that are compatible with 
        both current and future transportation systems and 
        provide near-zero net greenhouse gas emissions;

           *       *       *       *       *       *       *

SEC. 303. DEFINITIONS.

  In this title:
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Biomass.--The term ``biomass'' means any organic 
        matter that is available on a renewable or recurring 
        basis, including agricultural crops and trees, wood and 
        wood wastes and residues, plants (including aquatic 
        plants), grasses, residues, fibers animal byproducts,, 
        and animal wastes, municipal wastes, and other waste 
        materials.

           *       *       *       *       *       *       *

SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY 
                    COMMITTEE.

  (a)  * * *
  (b) Membership.--
          (1) In general.--The Advisory Committee shall consist 
        of--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (E) an individual affiliated with a livestock 
                trade association;
                  [(E)] (F) an individual affiliated with an 
                environmental or conservation organization;
                  [(F)] (G) an individual associated with State 
                government who has expertise in biobased 
                industrial products;
                  [(G)] (H) an individual with expertise in 
                energy analysis;
                  [(H)] (I) an individual with expertise in the 
                economics of biobased industrial products;
                  [(I)] (J) an individual with expertise in 
                agricultural economics; and
                  [(J)] (K) at the option of the points of 
                contact, other members.

           *       *       *       *       *       *       *

SEC. 307. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

  (a)  * * *

           *       *       *       *       *       *       *

  (f ) Authorization of Appropriations.--In addition to funds 
appropriated for biomass research and development under the 
general authority of the Secretary of Energy to conduct 
research and development programs (which may also be used to 
carry out this title), there are authorized to be appropriated 
to the Department of Agriculture to carry out this title 
$49,000,000 for each of fiscal years 2000 through [2005] 2011.

           *       *       *       *       *       *       *

SEC. 310. TERMINATION OF AUTHORITY.

  The authority provided under this title shall terminate on 
December 31, [2005] 2011.

           *       *       *       *       *       *       *

                              ----------                              

    SECTION 1011 OF THE LAUNCHING OUR COMMUNITIES' ACCESS TO LOCAL 
                         TELEVISION ACT OF 2000

SEC. 1011. AUTHORIZATIONS OF APPROPRIATIONS.

  (a) Cost of Loan Guarantees.--For the cost of the loans 
guaranteed under this Act, including the cost of modifying the 
loans, as defined in section 502 of the Congressional Budget 
Act of 1974 (2 U.S.C. 661(a)), there are authorized to be 
appropriated for fiscal years 2001 through 2006, such amounts 
as may be necessary. In addition, a total of $200,000,000 of 
the funds of the Commodity Credit Corporation shall be 
available during fiscal years 2002 through 2006, without fiscal 
year limitation, for loan guarantees under this title.

           *       *       *       *       *       *       *

                              ----------                              

           SECTION 4 OF THE RURAL ELECTRIFICATION ACT OF 1936

  Sec. 4. (a) The Secretary is authorized and empowered, from 
the sums hereinbefore authorized, to make loans for rural 
electrification to persons, corporations, States, Territories, 
and subdivisions and agencies thereof, municipalities, peoples' 
utility districts and cooperative, nonprofit, or limited-
dividend associations organized under the laws of any State or 
Territory of the United States, for the purpose of financing 
the construction and operation of generating plants, electric 
transmission and distribution lines or systems for the 
furnishing and improving of electric service to persons in 
rural areas, including by assisting electric borrowers to 
implement demand side management, energy conservation programs, 
and on-grid and off-grid renewable energy systems, and loans, 
from funds available under section 3, to cooperative 
associations and municipalities for the purpose of enabling 
said cooperative associations, and municipalities to the extent 
that such indebtedness was incurred with respect to electric 
transmission and distribution lines or systems or portions 
thereof serving persons in rural areas, to discharge or 
refinance long-term debts owned by them to the Tennessee Valley 
Authority on account of loans made or credit extended under the 
terms of the Tennessee Valley Authority Act of 1933, as 
amended: Provided, That the Secretary, in making such loans, 
shall give preference to States, Territories, and subdivisions 
and agencies thereof, municipalities, peoples' utility 
districts, and cooperative, nonprofit, or limited-dividend 
associations, the projects of which comply with the 
requirements of this Act. Such loans shall be on such terms and 
conditions relating to the expenditure of the moneys loaned and 
the security therefor as the Secretary shall determine and may 
be made payable in whole or in part out of the income, except 
that no loan for the construction, operation, or enlargement of 
any generating plant shall be made unless the consent of the 
State authority having jurisdiction in the premises is first 
obtained. Loans under this section shall not be made unless the 
Secretary finds and certifies that in his judgment the security 
therefor is reasonably adequate and such loan will be repaid 
within the time agreed.
  (b) Loan Guarantees for the Financing of the Purchase of 
Renewable Energy Systems.--The Secretary may provide a loan 
guarantee, on such terms and conditions as the Secretary deems 
appropriate, for the purpose of financing the purchase of a 
renewable energy system, including a wind energy system and 
anaerobic digestors for the purpose of energy generation, by 
any person or individual who is a farmer, a rancher, or an 
owner of a small business (as defined by the Secretary) that is 
located in a rural area (as defined by the Secretary). In 
providing guarantees under this subsection, the Secretary shall 
give priority to loans used primarily for power generation on a 
farm, ranch, or small business (as so defined).
                              ----------                              

 NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT OF 
1977

           *       *       *       *       *       *       *

  TITLE XIV--NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
POLICY ACT OF 1977

           *       *       *       *       *       *       *

Subtitle A--Findings, Purposes, and Definitions

           *       *       *       *       *       *       *

                              DEFINITIONS

  Sec. 1404. When used in this title:
          (1)  * * *

           *       *       *       *       *       *       *

          (4) The terms ``college'' and ``university'' mean an 
        educational institution in any State which (A) admits 
        as regular students only persons having a certificate 
        of graduation from a school providing secondary 
        education, or the recognized equivalent of such a 
        certificate, (B) is legally authorized within such 
        State to provide a program of education beyond 
        secondary education, (C) provides an educational 
        program for which a bachelor's degree or any other 
        higher degree is awarded, (D) is a public or other 
        nonprofit institution, [and] (E) is accredited by a 
        nationally recognized accrediting agency or 
        association[.], or (F) is one of the 1994 Institutions 
        (as defined in section 532 of the Equity in Educational 
        Land-Grant Status Act of 1994).

           *       *       *       *       *       *       *

    Subtitle B--Coordination and Planning of Agricultural Research, 
Extension, and Teaching

           *       *       *       *       *       *       *

SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

  (a)  * * *
  (b) Membership.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Membership categories.--The Advisory Board shall 
        consist of members from each of the following 
        categories:
                  (A)  * * *

           *       *       *       *       *       *       *

                  (R) 1 member representing a nonland grant 
                college or university with a historic 
                commitment to research in the food and 
                agricultural sciences.
                  [(R)] (S) 1 member representing that portion 
                of the scientific community not closely 
                associated with agriculture.
                  [(S)] (T) 1 member engaged in the 
                transportation of food and agricultural 
                products to domestic and foreign markets.
                  [(T)] (U) 1 member representing food 
                retailing and marketing interests.
                  [(U)] (V) 1 member representing food and 
                fiber processors.
                  [(V)] (W) 1 member actively engaged in rural 
                economic development.
                  [(W)] (X) 1 member representing a national 
                consumer interest group.
                  [(X)] (Y) 1 member representing a national 
                forestry group.
                  [(Y)] (Z) 1 member representing a national 
                conservation or natural resource group.
                  [(Z)] (AA) 1 member representing private 
                sector organizations involved in international 
                development.
                  [(AA)] (BB) 1 member representing an agency 
                within the Department of Agriculture that lacks 
                research capabilities.
                  [(BB)] (CC) 1 member representing a research 
                agency of the Federal Government (other than 
                the Department of Agriculture).
                  [(CC)] (DD) 1 member representing a national 
                social science association.
                  [(DD)] (EE) 1 member representing national 
                organizations directly concerned with 
                agricultural research, education, and 
                extension.

           *       *       *       *       *       *       *

  (c) Duties.--The Advisory Board shall--
          (1) review and provide consultation to the Secretary 
        [and land-grant colleges and universities], land-grant 
        colleges and universities, and the Committee on 
        Agriculture of the House of Representatives, the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate, the Subcommittee on Agriculture, Rural 
        Development, Food and Drug Administration and Related 
        Agencies of the Committee on Appropriations of the 
        House of Representatives, and the Subcommittee on 
        Agriculture, Rural Development and Related Agencies of 
        the Committee on Appropriations of the Senate on long-
        term and short-term national policies and priorities, 
        as set forth in section 1402, relating to agricultural 
        research, extension, education, and economics;

           *       *       *       *       *       *       *

  (d) Consultation.--
          (1) Duties of advisory board.--In carrying out this 
        section, the Advisory Board shall consult with any 
        appropriate agencies of the Department of Agriculture 
        and solicit opinions and recommendations from persons 
        who will benefit from and use federally funded 
        agricultural research, extension, education, and 
        economics.

           *       *       *       *       *       *       *

  (h) Termination.--The Advisory Board shall remain in 
existence until September 30, [2002] 2011.

           *       *       *       *       *       *       *

[SEC. 1412. SUPPORT FOR ADVISORY BOARD.

  [(a) To assist the Advisory Board in the performance of its 
duties, the Secretary may appoint, after consultation with the 
chairperson of the Advisory Board--
          [(1) a full-time executive director who shall perform 
        such duties as the chairperson of the Advisory Board 
        may direct and who shall receive compensation at a rate 
        not to exceed the rate payable for GS-18 of the General 
        Schedule established in section 5332 of title 5, United 
        States Code; and
          [(2) a professional staff of not more than five full-
        time employees qualified in the food and agricultural 
        sciences, of which one shall serve as the executive 
        secretary to the Advisory Board.
  [(b) The Secretary shall provide such additional clerical 
assistance and staff personnel as may be required to assist the 
Advisory Board in carrying out its duties.
  [(c) In formulating its recommendations to the Secretary, the 
Advisory Board may obtain the assistance of Department of 
Agriculture employees, and, to the maximum extent practicable, 
the assistance of employees of other Federal departments and 
agencies conducting related programs of agricultural research, 
extension, and teaching and of appropriate representatives of 
colleges and universities, including State agricultural 
experiment stations, cooperative extension services, and other 
non-Federal organizations conducting significant programs in 
the food and agricultural sciences.]

                           GENERAL PROVISIONS

  Sec. 1413. (a)  * * *

           *       *       *       *       *       *       *

  (c) There are authorized to be appropriated annually such 
sums as Congress may determine necessary to carry out the 
provisions of [section 1412 of this title and] subsection (b) 
of this section.

           *       *       *       *       *       *       *

Subtitle C--Agricultural Research and Education Grants and Fellowships

           *       *       *       *       *       *       *

SEC. 1417. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
                    EDUCATION.

  (a)  * * *

           *       *       *       *       *       *       *

  (l) Authorization of Appropriations.--There are authorized to 
be appropriated for carrying out this section $60,000,000 for 
each of the fiscal years 1990 through [2002] 2011.

           *       *       *       *       *       *       *

SEC. 1419. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF 
                    ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                    AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

  (a) Authority of Secretary.--The Secretary may award grants 
under this section to colleges, universities, and Federal 
laboratories for the purpose of conducting research related 
to--
          (1)  * * *
          (2) industrial oilseed crops and animal fats and oils 
        for diesel fuel and petrochemical substitutes;

           *       *       *       *       *       *       *

          (4) other industrial hydrocarbons or triglycerides 
        made from agricultural commodities and forest products; 
        and

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated for the purposes of carrying out this section 
$20,000,000 for each of the fiscal years 1991 through [2002] 
2011.

SEC. 1419A. POLICY RESEARCH CENTERS.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1996 through [2002] 2011.

           *       *       *       *       *       *       *

 Subtitle D--National Food and Human Nutrition Research and Extension 
Program

           *       *       *       *       *       *       *

SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
                    PROGRAM.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1996 through [2002] 2011.

SEC. 1424A. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
                    RESEARCH.

  (a)  * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated $10,000,000 for each of fiscal years 1997 
through [2002] 2011 to carry out the pilot program.

                      NUTRITION EDUCATION PROGRAM

  Sec. 1425. (a)  * * *

           *       *       *       *       *       *       *

  (c) Beginning with the fiscal year ending September 30, 
1982--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) There is authorized to be appropriated to carry 
        out the expanded food and nutrition education program 
        established under section 3(d) of the Act of May 8, 
        1914 (38 Stat. 373, chapter 79; 7 U.S.C. 343(d) and 
        this section, $83,000,000 for each of fiscal years 1996 
        through [2002] 2011.

           *       *       *       *       *       *       *

Subtitle E--Animal Health and Disease Research

           *       *       *       *       *       *       *

   APPROPRIATIONS FOR CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH 
                                PROGRAMS

  Sec. 1433. (a) There are authorized to be appropriated such 
funds as Congress may determine necessary to support continuing 
animal health and disease research programs at eligible 
institutions, but not to exceed $25,000,000 for each of the 
fiscal years 1991 through [2002] 2011, and not in excess of 
such sums as may after the date of enactment of this title be 
authorized by law for any subsequent fiscal year. Funds 
appropriated under this section shall be used: (1) to meet 
expenses of conducting animal health and disease research, 
publishing and disseminating the results of such research, and 
contributing to the retirement of employees subject to the 
provisions of the Act of March 4, 1940 (54 Stat. 39-40, as 
amended; 7 U.S.C. 331); (2) for administrative planning and 
direction; and (3) to purchase equipment and supplies necessary 
for conducting such research.

           *       *       *       *       *       *       *

      APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL PROBLEMS

  Sec. 1434. (a) There are authorized to be appropriated such 
funds as Congress may determine necessary to support research 
on specific national or regional animal health or disease 
problems, or national or regional problems relating to pre-
harvest, on-farm food safety, or animal well-being, but not to 
exceed $35,000,000 for each of the fiscal years 1991 through 
[2002] 2011, and not in excess of such sums as may after the 
date of enactment of this title be authorized by law for any 
subsequent fiscal year.

           *       *       *       *       *       *       *

Subtitle G--1890 Land-Grant College Funding

           *       *       *       *       *       *       *

SEC. 1447. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
                    AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
                    UNIVERSITY.

  (a)  * * *
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Agriculture for the 
purposes of carrying out the provisions of this section, 
$15,000,000 for each of fiscal years 1996 through [2002] 2011, 
and such sums shall remain available until expended.

           *       *       *       *       *       *       *

SEC. 1448. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.

  (a) Competitive Grants Authorized.--The Secretary of 
Agriculture may make a competitive grant to five national 
research and training centennial centers located at colleges 
(or a consortia of such colleges) eligible to receive funds 
under the Act of August 30, 1890 (7 U.S.C. 321 et seq.), 
including Tuskegee University, that--
          (1) have been designated by the Secretary for the 
        fiscal years 1991 through 1995, or fiscal years 1996 
        through [2002] 2011, as national research and training 
        centennial centers; and

           *       *       *       *       *       *       *

  (f) Authorization of Appropriations.--There are authorized to 
be appropriated $2,000,000 for each of the fiscal years 1991 
through [2002] 2011 for grants under this section.

           *       *       *       *       *       *       *

SEC. 1449. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
                    ACTIVITIES AT ELIGIBLE INSTITUTIONS.

  (a)  * * *

           *       *       *       *       *       *       *

  [(c) Matching Formula.--Notwithstanding any other provision 
of this subtitle, the distribution of formula funds to an 
eligible institution shall be subject to the following matching 
requirements:
          [(1) For fiscal year 2000, the State shall provide 
        matching funds from non-Federal sources in an amount 
        equal to not less than 30 percent of the formula funds 
        to be distributed to the eligible institution.
          [(2) For fiscal year 2001, the State shall provide 
        matching funds from non-Federal sources in an amount 
        equal to not less than 45 percent of the formula funds 
        to be distributed to the eligible institution.
          [(3) For fiscal year 2002 and each fiscal year 
        thereafter, the State shall provide matching funds from 
        non-Federal sources in an amount equal to not less than 
        50 percent of the formula funds to be distributed to 
        the eligible institution.
  [(d) Limited Waiver Authority.--
          [(1) Fiscal year 2000.--Notwithstanding subsection 
        (f), the Secretary may waive the matching funds 
        requirement under subsection (c)(1) for fiscal year 
        2000 for an eligible institution of a State if the 
        Secretary determines that, based on the report received 
        under subsection (b), the State will be unlikely to 
        satisfy the matching requirement.
          [(2) Future fiscal years.--The Secretary may not 
        waive the matching requirement under subsection (c) for 
        any fiscal year other than fiscal year 2000.]
  (c) Matching Formula.--For each of fiscal years 2003 through 
2011, the State shall provide matching funds from non-Federal 
sources. Such matching funds shall be for an amount equal to 
not less than 60 percent of the formula funds to be distributed 
to the eligible institution, and shall increase by 10 percent 
each fiscal year thereafter until fiscal year 2007.
  (d) Waiver Authority.--Notwithstanding subsection (f), the 
Secretary may waive the matching funds requirement under 
subsection (c) above the 50 percent level for fiscal years 2003 
through 2011 for an eligible institution of a State if the 
Secretary determines that the State will be unlikely to satisfy 
the matching requirement.

           *       *       *       *       *       *       *

  (g) Matching Funds Requirement for the Land-Grant Colleges in 
the United States Territories.--
          (1) Land-grant colleges of the United States 
        territories, including the Commonwealth of Puerto Rico, 
        Guam, the Virgin Islands, the Northern Mariana Islands, 
        American Samoa, and Micronesia, shall be excluded from 
        the definition of eligible institution (as defined in 
        subsection (a)(1)).
          (2) Matching formula.--Notwithstanding any other 
        provision of this subtitle, for fiscal years 2003 
        through 2011, the State shall provide matching funds 
        from non-Federal sources in an amount equal to not less 
        than 50 percent of the formula funds to be distributed 
        to the eligible institution.
          (3) Waiver authority.--Notwithstanding subsection 
        (f), the Secretary may waive the matching funds 
        requirements under subsection (a)(2)(A) for any of 
        fiscal years 2003 through 2011 for an eligible 
        institution of a State if the Secretary determines that 
        the territory will be unlikely to satisfy the matching 
        requirement for that fiscal year.

         Subtitle H--Programs for Hispanic-Serving Institutions

SEC. 1455. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING INSTITUTIONS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to make grants under this section $20,000,000 
for each of fiscal years 1997 through [2002] 2011.

      Subtitle I--International Research, Extension, and Teaching

SEC. 1458. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
                    TEACHING.

  (a) Authority of the Secretary.--To carry out the policy of 
this subtitle, the Secretary (in consultation with the Agency 
for International Development and subject to such coordination 
with other Federal officials, Departments, and agencies as the 
President may direct) may--
          (1)  * * *

           *       *       *       *       *       *       *

          (8) continue, in cooperation with the Secretary of 
        State, a program, coordinated through the International 
        Arid Land Consortium, to enhance collaboration and 
        cooperation between institutions possessing research, 
        extension, and teaching capabilities applied to the 
        development, management, and reclamation of arid lands; 
        [and]
          (9) make competitive grants for collaborative 
        projects that--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (D) encourage private sector involvement and 
                the leveraging of private sector funds[.]; and
          (10) establish a program, to be coordinated by the 
        Cooperative State Research, Education, and Extension 
        Service and the Foreign Agricultural Service, to place 
        interns from United States colleges and universities at 
        Foreign Agricultural Service field offices overseas.

           *       *       *       *       *       *       *

SEC. 1459A. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
                    AND EDUCATION PROGRAMS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

           *       *       *       *       *       *       *

Subtitle K--Funding and Miscellaneous Provisions

           *       *       *       *       *       *       *

     AUTHORIZATION FOR APPROPRIATIONS FOR EXISTING AND CERTAIN NEW 
                     AGRICULTURAL RESEARCH PROGRAMS

  Sec. 1463. (a) Notwithstanding any authorization for 
appropriations for agricultural research in any Act enacted 
prior to the date of enactment of this title, there are hereby 
authorized to be appropriated for the purposes of carrying out 
the provisions of this title, except sections 1417, 1419, 1420, 
and the competitive grants program provided for in section 
1414, and except that the authorization for moneys provided 
under the Act of March 2, 1887 (24 Stat. 440-442, as amended; 7 
U.S.C. 361a-361i), is excluded and is provided for in 
subsection (b) of this section, $850,000,000 for each of the 
fiscal years 1991 through [2002] 2011.
  (b) Notwithstanding any authorization for appropriations for 
agricultural research at State agricultural experiment stations 
in any Act enacted prior to the date of enactment of this 
title, there are hereby authorized to be appropriated for the 
purpose of conducting agricultural research at State 
agricultural experiment stations pursuant to the Act of March 
2, 1887 (24 Stat. 440-442, as amended; 7 U.S.C. 361a-361i), 
$310,000,000 for each of the fiscal years 1991 through [2002] 
2011.

           *       *       *       *       *       *       *

  Sec. 1464. Notwithstanding any authorization for 
appropriations for the Cooperative Extension Service in any Act 
enacted prior to the date of enactment of this title, there are 
hereby authorized to be appropriated for the purposes of 
carrying out the extension programs of the Department of 
Agriculture $420,000,000 for fiscal year 1991, $430,000,000 for 
fiscal year 1992, $440,000,000 for fiscal year 1993, 
$450,000,000 for fiscal year 1994, and $460,000,000 for each of 
fiscal years 1995 through [2002] 2011.

           *       *       *       *       *       *       *

                   SUPPLEMENTAL AND ALTERNATIVE CROPS

  Sec. 1473D. (a) Notwithstanding any other provision of law, 
during the period beginning October 1, 1986, and ending 
September 30, [2002] 2011, the Secretary shall develop and 
implement a research project for the development of 
supplemental and alternative crops, using such funds as are 
appropriated to the Secretary each fiscal year under this 
title.

           *       *       *       *       *       *       *

Subtitle L--Aquaculture

           *       *       *       *       *       *       *

                    AUTHORIZATION FOR APPROPRIATIONS

  Sec. 1477. There is authorized to be appropriated $7,500,000 
for each of the fiscal years 1991 through [2002] 2011. Funds 
appropriated under this section or section 1476 may not be used 
to acquire or construct a building.

           *       *       *       *       *       *       *

Subtitle M--Rangeland Research

           *       *       *       *       *       *       *

                             APPROPRIATIONS

  Sec. 1483. (a) There are authorized to be appropriated, to 
implement the provisions of this subtitle, such sums not to 
exceed $10,000,000 for each of the fiscal years 1991 through 
[2002] 2011.

           *       *       *       *       *       *       *

                              ----------                              

AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT OF 1998

           *       *       *       *       *       *       *

     TITLE IV--NEW AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION 
                               INITIATIVES

Sec. 401. Initiative for Future Agriculture and Food Systems.
     * * * * * * *
Sec. 408. Support for research regarding diseases of wheat [and barley 
          caused by Fusarium graminearum], triticale, and barley caused 
          by Fusarium graminearum or by Tilletia indica.

           *       *       *       *       *       *       *

     TITLE IV--NEW AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION 
                              INITIATIVES

SEC. 401. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

  (a) * * *
  (b) Funding.--
          [(1) In general.--On October 1, 1998, and each 
        October 1 thereafter through October 1, 2002, out of 
        any funds in the Treasury not otherwise appropriated, 
        the Secretary of the Treasury shall transfer 
        $120,000,000 to the Account.]
          (1) In general.--
                  (A) Total amount to be transferred.--On 
                October 1, 2003, and each October 1 thereafter 
                through September 30, 2011, out of any funds in 
                the Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall transfer funds 
                into the Account. The total amount transferred 
                under this subparagraph shall equal 
                $1,160,000,000.
                  (B) Equal amounts.--To the maximum extent 
                practicable, the amounts transferred into the 
                Account pursuant to subparagraph (A) shall be 
                transferred in equal amounts for each fiscal 
                year.
                  (C) Availability of funds.--Amounts 
                transferred into the Account pursuant to 
                subparagraph (A) shall remain available until 
                expended.

           *       *       *       *       *       *       *

  (c) Purposes.--
          (1) * * *
          (2) Priority mission areas.--In making grants under 
        this section, the Secretary, in consultation with the 
        Advisory Board, shall address priority mission areas 
        related to--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) natural resource management, including 
                precision agriculture; [and]
                  (F) farm efficiency and profitability, 
                including the viability and competitiveness of 
                small- and medium-sized dairy, livestock, crop, 
                and other commodity operations[.]; and
                  (G) alternative fuels and renewable energy 
                sources.

           *       *       *       *       *       *       *

  (f) Administration.--
          (1) * * *

           *       *       *       *       *       *       *

          [(6) Availability of funds.--Funds for grants under 
        this section shall be available to the Secretary for 
        obligation for a 2-year period.]
          (6) Availability of funds.--Funds made available 
        under this section to the Secretary prior to October 1, 
        2003, for grants under this section shall be available 
        to the Secretary for a 2-year period.

           *       *       *       *       *       *       *

SEC. 402. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
                    RESEARCH.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

SEC. 403. PRECISION AGRICULTURE.

  (a) Definitions.--In this section:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Systems research.--The term ``systems research'' 
        means an integrated, coordinated, and iterative 
        investigative process that involves--
                  (A) * * *

           *       *       *       *       *       *       *

                  (F) farm production efficiencies (including 
                improved use of energy inputs), productivity, 
                and profitability.

           *       *       *       *       *       *       *

  (d) Grant Priorities.--In making grants to eligible entities 
under this section, the Secretary, in consultation with the 
Advisory Board, shall give priority to research, education, or 
information dissemination projects designed to accomplish the 
following:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Improve on farm energy use efficiencies.
          [(4)] (5) Maximize the involvement and cooperation of 
        precision agriculture producers, certified crop 
        advisers, State cooperative extension services agents, 
        agricultural input machinery, product and service 
        providers, nonprofit organizations, agribusinesses, 
        veterinarians, land-grant colleges and universities, 
        and Federal agencies in precision agriculture systems 
        research projects involving on-farm research, 
        education, and dissemination of precision agriculture 
        information.
          [(5)] (6) Maximize collaboration with multiple 
        agencies and other partners, including through 
        leveraging of funds and resources.

           *       *       *       *       *       *       *

  (i) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated such sums as are necessary to carry out 
        this section for each of fiscal years 1999 through 
        [2002] 2011, of which, for each fiscal year--
                  (A) * * *

           *       *       *       *       *       *       *

SEC. 404. BIOBASED PRODUCTS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Pilot Project.--The Secretary, acting through the 
Agricultural Research Service, may establish and carry out a 
pilot project under which grants are provided, on a competitive 
basis, to scientists of the Agricultural Research Service to--
          (1) * * *
          (2) during each of fiscal years 1999 through [2001] 
        2011, develop biobased products with promising 
        commercial potential.

           *       *       *       *       *       *       *

  (h) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

SEC. 405. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

  (a) Initiative Required.--The Secretary of Agriculture shall 
provide for a research initiative (to be known as the ``Thomas 
Jefferson Initiative for Crop Diversification'') for the 
purpose of conducting research and development, in cooperation 
with other public and private entities, on the production [and 
marketing], marketing, and efficient use of new and 
nontraditional crops needed to strengthen and diversify the 
agricultural production base of the United States.

           *       *       *       *       *       *       *

  (h) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

SEC. 406. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
                    GRANTS PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

SEC. 407. COORDINATED PROGRAM OF RESEARCH, EXTENSION, AND EDUCATION TO 
                    IMPROVE VIABILITY OF SMALL AND MEDIUM SIZE DAIRY, 
                    LIVESTOCK, AND POULTRY OPERATIONS.

  (a) * * *
  (b) Components.--To the extent the Secretary elects to carry 
out the program, the Secretary shall conduct--
          (1) * * *

           *       *       *       *       *       *       *

          (3) research and extension on integrated crop and 
        livestock or poultry systems that increase efficiencies 
        (including improved use of energy inputs), reduce 
        costs, and prevent environmental pollution to 
        strengthen the competitive position of the operations;

           *       *       *       *       *       *       *

SEC. 408. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT [AND BARLEY 
                    CAUSED BY FUSARIUM GRAMINEARUM], TRITICALE, AND 
                    BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY 
                    TILLETIA INDICA.

  [(a) Research Grant Authorized.--The Secretary of Agriculture 
may make a grant to a consortium of land-grant colleges and 
universities to enhance the ability of the consortium to carry 
out a multi-State research project aimed at understanding and 
combating diseases of wheat and barley caused by Fusarium 
graminearum and related fungi (referred to in this section as 
``wheat scab'').]
  (a) Research Grant Authorized.--The Secretary of Agriculture 
may make grants to consortia of land-grant colleges and 
universities to enhance the ability of the consortia to carry 
out multi-State research projects aimed at understanding and 
combating diseases of wheat, triticale, and barley caused by 
Fusarium graminearum and related fungi (referred to in this 
section as ``wheat scab'') or by Tilletia indica and related 
fungi (referred to in this section as ``Karnal bunt'').
  (b) Research Components.--Funds provided under this section 
shall be available for the following collaborative, multi-State 
research activities:
          (1) Identification and understanding of the 
        epidemiology of wheat scab or of Karnal bunt, and the 
        toxicological properties of vomitoxin, a toxic 
        metabolite commonly occurring in wheat, triticale, and 
        barley infected with wheat scab.
          (2) Development of crop management strategies to 
        reduce the risk of wheat scab or Karnal bunt 
        occurrence.
          (3) Development of--
                  (A) efficient and accurate methods to monitor 
                wheat [and barley for the presence of], 
                triticale, and barley for the presence of 
                Karnal bunt or of wheat scab and resulting 
                vomitoxin contamination;
                  (B) post-harvest management techniques for 
                wheat [and barley infected with wheat scab], 
                triticale, and barley infected with wheat scab 
                or with Karnal bunt; and
                  (C) milling and food processing techniques to 
                render wheat scab contaminated grain safe.
          (4) Strengthening and expansion of plant-breeding 
        activities to enhance the resistance of wheat [and 
        barley to wheat scab], triticale, and barley to wheat 
        scab and to Karnal bunt, including the establishment of 
        a regional advanced breeding material evaluation 
        nursery and a germplasm introduction and evaluation 
        system.
          (5) Development and deployment of alternative 
        fungicide application systems and formulations to 
        control wheat scab and Karnal bunt and consideration of 
        other chemical control strategies to assist farmers 
        until new more resistant wheat, triticale, and barley 
        varieties are available.
  (c) Communications Networks.--Funds provided under this 
section shall be available for efforts to concentrate, 
integrate, and disseminate research, extension, and outreach-
orientated information regarding wheat scab or Karnal bunt.

           *       *       *       *       *       *       *

  (e) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $5,200,000 for each 
of fiscal years 1999 through [2002] 2011.

SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

  (a) Establishment.--The Secretary of Agriculture, in 
coordination with State veterinarians and other appropriate 
State animal health professionals, may establish a program to 
conduct research, testing, and evaluation of programs for the 
control and management of Johne's disease in livestock.
  (b) Authorization of Appropriations.--There is authorized to 
be appropriated to the Secretary such sums as may be necessary 
to carry out this section for each of fiscal years 2003 through 
2011.

           *       *       *       *       *       *       *

TITLE VI--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

Subtitle B--New Authorities

           *       *       *       *       *       *       *

SEC. 614. OFFICE OF PEST MANAGEMENT POLICY.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011.

SEC. 615. FOOD SAFETY RESEARCH INFORMATION OFFICE [AND NATIONAL 
                    CONFERENCE].

  [(a) Food Safety Research Information Office.--]
  [(1)] (a) Establishment.--The Secretary of Agriculture shall 
establish a Food Safety Research Information Office at the 
National Agricultural Library.
  [(2)] (b) Purpose.--The Office shall provide to the research 
community and the general public information on publicly 
funded, and to the maximum extent practicable, privately funded 
food safety research initiatives for the purpose of--
          [(A)] (1) preventing unintended duplication of food 
        safety research; and
          [(B)] (2) assisting the executive and legislative 
        branches of the Federal Government and private research 
        entities to assess food safety research needs and 
        priorities.
  [(3)] (c) Cooperation.--The Office shall carry out this 
[subsection] section in cooperation with the National 
Institutes of Health, the Food and Drug Administration, the 
Centers for Disease Control and Prevention, public 
institutions, and, on a voluntary basis, private research 
entities.
  [(b) National Conference; Annual Workshops.--Not later than 
120 days after the date of enactment of this Act, the Secretary 
shall sponsor a conference to be known as the ``National 
Conference on Food Safety Research'', for the purpose of 
beginning the task of prioritization of food safety research. 
The Secretary shall sponsor annual workshops in each of the 
subsequent 4 years after the conference so that priorities can 
be updated or adjusted to reflect changing food safety 
concerns.
  [(c) Food Safety Report.--With regard to the study and report 
to be prepared by the National Academy of Sciences on the 
scientific and organizational needs for an effective food 
safety system, the study shall include recommendations to 
ensure that the food safety inspection system, within the 
resources traditionally available to existing food safety 
agencies, protects the public health.]

           *       *       *       *       *       *       *

[SEC. 617. REIMBURSEMENT OF EXPENSES INCURRED UNDER SHEEP PROMOTION, 
                    RESEARCH, AND INFORMATION ACT OF 1994.

  [Using funds available to the Agricultural Marketing Service, 
the Service may reimburse the American Sheep Industry 
Association for expenses incurred by the American Sheep 
Industry Association between February 6, 1996, and May 17, 
1996, in preparation for the implementation of a sheep and wool 
promotion, research, education, and information order under the 
Sheep Promotion, Research, and Information Act of 1994 (7 
U.S.C. 7101 et seq.).]

           *       *       *       *       *       *       *

                              ----------                              

EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994

           *       *       *       *       *       *       *

TITLE V--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

PART C--1994 INSTITUTIONS

           *       *       *       *       *       *       *

SEC. 532. DEFINITION.

  As used in this part, the term ``1994 Institutions'' means 
any one of the following colleges:
          [(1) Bay Mills Community College.
          [(2) Blackfeet Community College.
          [(3) Cheyenne River Community College.
          [(4) D-Q University.
          [(5) Dullknife Memorial College.
          [(6) Fond Du Lac Community College.
          [(7) Fort Belknap Community College.
          [(8) Fort Berthold Community College.
          [(9) Fort Peck Community College.
          [(10) LacCourte Orielles Ojibwa Community College.
          [(11) Little Big Horn Community College.
          [(12) Little Hoop Community College.
          [(13) Nebraska Indian Community College.
          [(14) Northwest Indian College.
          [(15) Oglala Lakota College.
          [(16) Salish Kootenai College.
          [(17) Sinte Gleska University.
          [(18) Sisseton Wahpeton Community College.
          [(19) Standing Rock College.
          [(20) Stonechild Community College.
          [(21) Turtle Mountain Community College.
          [(22) Navajo Community College.
          [(23) United Tribes Technical College.
          [(24) Southwest Indian Polytechnic Institute.
          [(25) Institute of American Indian and Alaska Native 
        Culture and Arts Development.
          [(26) Crownpoint Institute of Technology.
          [(27) Haskell Indian Junior College.
          [(28) Leech Lake Tribal College.
          [(29) College of the Menominee Nation.
          [(30) Little Priest Tribal College.]
          (1) Bay Mills Community College.
          (2) Blackfeet Community College.
          (3) Cankdeska Cikana Community College.
          (4) College of Menominee Nation.
          (5) Crownpoint Institute of Technology.
          (6) D-Q University.
          (7) Dine College.
          (8) Dull Knife Memorial College.
          (9) Fond du Lac Tribal and Community College.
          (10) Fort Belknap College.
          (11) Fort Berthold Community College.
          (12) Fort Peck Community College.
          (13) Haskell Indian Nations University.
          (14) Institute of American Indian and Alaska Native 
        Culture and Arts Development.
          (15) Lac Courte Oreilles Ojibwa Community College.
          (16) Leech Lake Tribal College.
          (17) Little Big Horn College.
          (18) Little Priest Tribal College.
          (19) Nebraska Indian Community College.
          (20) Northwest Indian College.
          (21) Oglala Lakota College.
          (22) Salish Kootenai College.
          (23) Sinte Gleska University.
          (24) Sisseton Wahpeton Community College.
          (25) Si Tanka/Huron University.
          (26) Sitting Bull College.
          (27) Southwestern Indian Polytechnic Institute.
          (28) Stone Child College.
          (29) Turtle Mountain Community College.
          (30) United Tribes Technical College.

SEC. 533. LAND-GRANT STATUS FOR 1994 INSTITUTIONS.

  (a) In General.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Accreditation.--To receive funding [under 
        sections 534 and 535] under sections 534, 535, and 536, 
        a 1994 Institution shall certify to the Secretary that 
        the 1994 Institution--
                  (A) * * *

           *       *       *       *       *       *       *

  (b) Authorization of Appropriations.--There are authorized to 
be appropriated [$4,600,000 for each of fiscal years 1996 
through 2000.] such sums as are necessary to carry out this 
section for each of fiscal years 1996 through 2011. Amounts 
appropriated pursuant to this section shall be held and 
considered to have been granted to 1994 Institutions to 
establish an endowment pursuant to subsection (c).
  (c) Endowment.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Withdrawals and expenditures.--The Secretary may 
        not make a withdrawal or expenditure from the endowment 
        fund corpus. On the termination of each fiscal year, 
        the Secretary shall withdraw the amount of the income 
        from the endowment fund for the fiscal year, and after 
        making adjustments for the cost of administering the 
        endowment fund, distribute the adjusted income as 
        follows:
                  (A) 60 percent of the adjusted income shall 
                be distributed among the 1994 Institutions on a 
                pro rata basis. The proportionate share of the 
                adjusted income received by a 1994 Institution 
                under this subparagraph shall be based on the 
                Indian student count (as defined in [section 
                390(3) of the Carl D. Perkins Vocational and 
                Applied Technology Education Act, as such 
                section was in effect on the day preceding the 
                date of enactment of the Carl D. Perkins 
                Vocational and Applied Technology Education 
                Amendments of 1998)] section 2(a)(7) of the 
                Tribally Controlled College or University 
                Assistance Act of 1978) for each 1994 
                Institution for the fiscal year.

           *       *       *       *       *       *       *

SEC. 534. APPROPRIATIONS.

  (a) Authorization of Appropriations.--
          (1) In general.--For fiscal year 1996, and for each 
        fiscal year thereafter, there are authorized to be 
        appropriated to the Department of the Treasury an 
        amount equal to--
                  (A) [$50,000] $100,000; multiplied by

           *       *       *       *       *       *       *

SEC. 535. INSTITUTIONAL CAPACITY BUILDING GRANTS.

  (a) * * *
  (b) In General.--
          (1) Institutional capacity building grants.--For each 
        of fiscal years 1996 through [2000] 2011, the Secretary 
        shall make two or more institutional capacity building 
        grants to assist 1994 Institutions with constructing, 
        acquiring, and remodeling buildings, laboratories, and 
        other capital facilities (including fixtures and 
        equipment) necessary to conduct instructional 
        activities more effectively in agriculture and 
        sciences.

           *       *       *       *       *       *       *

  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Department of Agriculture to carry out 
this section, $1,700,000 for each of fiscal years 1996 through 
[2000] 2011.

SEC. 536. RESEARCH GRANTS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Authorization of Appropriations.--There are authorized to 
be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 1999 through [2002] 2011. 
Amounts appropriated shall remain available until expended.

           *       *       *       *       *       *       *

                              ----------                              

RESEARCH FACILITIES ACT

           *       *       *       *       *       *       *

SEC. 2. DEFINITIONS.

  In this Act:
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Food and agricultural sciences.--The term ``food 
        and agricultural sciences'' means--
                  [(A) agriculture, including soil and water 
                conservation and use, the use of organic 
                materials to improve soil tilth and fertility, 
                plant and animal production and protection, and 
                plant and animal health;
                  [(B) the processing, distribution, marketing, 
                and utilization of food and agricultural 
                products;
                  [(C) forestry, including range management, 
                production of forest and range products, 
                multiple use of forests and rangelands, and 
                urban forestry;
                  [(D) aquaculture (as defined in section 
                1404(3) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103(3));
                  [(E) human nutrition;
                  [(F) production inputs, such as energy, to 
                improve productivity; and
                  [(G) germ plasm collection and preservation.]
          (3) Food and agricultural sciences.--The term ``food 
        and agricultural sciences'' has the meaning given that 
        term in section 1404(8) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103(8)).

           *       *       *       *       *       *       *

          [(5) Task force.--The term ``task force'' means the 
        Strategic Planning Task Force established under section 
        4.]

           *       *       *       *       *       *       *

[SEC. 4. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL RESEARCH 
                    FACILITIES.

  [(a) Establishment.--Not later than 6 months after the date 
of enactment of the Federal Agriculture Improvement and Reform 
Act of 1996, the Secretary shall establish a task force, to be 
known as the ``Strategic Planning Task Force''. The task force 
shall be comprised of 15 members.
  [(b) Composition.--The Secretary shall select the members of 
the task force from a list of individuals recommended by the 
Advisory Board established under section 1408 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3123). In submitting the list to the Secretary, 
the Board may recommend for selection individuals (including 
members of the Advisory Board) who have expertise in facilities 
development, modernization, construction, consolidation, and 
closure.
  [(c) Duties.--The task force shall review all currently 
operating agricultural research facilities constructed in whole 
or in part with Federal funds, and all planned agricultural 
research facilities proposed to be constructed with Federal 
funds, pursuant to criteria established by the Secretary, to 
ensure that a comprehensive research capacity is maintained.
  [(d) 10-Year Strategic Plan.--Not later than 2 years after 
the task force is established, the task force shall prepare and 
submit to the Secretary and the congressional agriculture 
committees a 10-year strategic plan, reflecting both national 
and multistate perspectives, for development, modernization, 
construction, consolidation, and closure of Federal 
agricultural research facilities and agricultural research 
facilities proposed to be constructed with Federal funds.
  [(e) Applicability of Federal Advisory Committee Act.--
          [(1) Public meetings.--All meetings of the task force 
        shall be publicly announced in advance and shall be 
        open to the public. Detailed minutes of meetings and 
        other appropriate records of the activities of the task 
        force shall be kept and made available to the public on 
        request.
          [(2) Exemption.--The Federal Advisory Committee Act 
        (5 U.S.C. App.) and title XVIII of the Food and 
        Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall 
        not apply to the task force.
  [(f) Definition of Agricultural Research Facility.--
Notwithstanding section 2(1), in this section the term 
``agricultural research facility'' means a facility for 
research in food and agricultural sciences.
  [(g) Comprehensive Research Capacity.--After submission of 
the 10-year strategic plan required under subsection (d), the 
Secretary shall continue to review periodically each operating 
agricultural research facility constructed in whole or in part 
with Federal funds, and each planned agricultural research 
facility proposed to be constructed in whole or in part with 
Federal funds, pursuant to criteria established by the 
Secretary, to ensure that a comprehensive research capacity is 
maintained.]

           *       *       *       *       *       *       *

SEC. 6. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL ENTERPRISES, 
                    RESEARCH FACILITIES, AND OTHER ENTITIES AGAINST 
                    DISRUPTION.

  (a) Definitions.--For the purposes of this section, the 
following definitions apply:
          (1) Animal or agricultural enterprise.--The term 
        ``animal or agricultural enterprise'' means any of the 
        following:
                  (A) A commercial, governmental, or academic 
                enterprise that uses animals, plants, or other 
                biological materials for food or fiber 
                production, breeding, processing, research, or 
                testing.
                  (B) A zoo, aquarium, circus, rodeo, or other 
                entity that exhibits or uses animals, plants, 
                or other biological materials for educational 
                or entertainment purposes.
                  (C) A fair or similar event intended to 
                advance agricultural arts and sciences.
                  (D) A facility managed or occupied by an 
                association, federation, foundation, council, 
                or other group or entity of food or fiber 
                producers, processors, or agricultural or 
                biomedical researchers intended to advance 
                agricultural or biomedical arts and sciences.
          (2) Economic damage.--The term ``economic damage'' 
        means the replacement of the following:
                  (A) The cost of lost or damaged property 
                (including all real and personal property) of 
                an animal or agricultural enterprise.
                  (B) The cost of repeating an interrupted or 
                invalidated experiment.
                  (C) The loss of revenue (including costs 
                related to business recovery) directly related 
                to the disruption of an animal or agricultural 
                enterprise.
                  (D) The cost of the tuition and expenses of 
                any student to complete an academic program 
                that was disrupted, or to complete a 
                replacement program, when the tuition and 
                expenses are incurred as a result of the damage 
                or loss of the property of an animal or 
                agricultural enterprise.
          (3) Property of an animal or agricultural 
        enterprise.--The term ``property of an animal or 
        agricultural enterprise'' means real and personal 
        property of or used by any of the following:
                  (A) An animal or agricultural enterprise.
                  (B) An employee of an animal or agricultural 
                enterprise.
                  (C) A student attending an academic animal or 
                agricultural enterprise.
          (4) Disruption.--The term ``disruption'' does not 
        include any lawful disruption that results from lawful 
        public, governmental, or animal or agricultural 
        enterprise employee reaction to the disclosure of 
        information about an animal or agricultural enterprise.
  (b) Violation.--A person may not recklessly, knowingly, or 
intentionally cause, or contribute to, the disruption of the 
functioning of an animal or agricultural enterprise by damaging 
or causing the loss of any property of the animal or 
agricultural enterprise that results in economic damage, as 
determined by the Secretary.
  (c) Assessment of Civil Penalty.--
          (1) In general.--The Secretary may impose on any 
        person that the Secretary determines violates 
        subsection (b) a civil penalty in an amount determined 
        under paragraphs (2) and (3). The civil penalty may be 
        assessed only on the record after an opportunity for a 
        hearing.
          (2) Recovery of department costs.--The civil penalty 
        assessed by the Secretary against a person for a 
        violation of subsection (b) shall be not less than the 
        total cost incurred by the Secretary for investigation 
        of the violation, conducting any hearing regarding the 
        violation, and assessing the civil penalty.
          (3) Recovery of economic damage.--In addition to the 
        amount determined under paragraph (2), the amount of 
        the civil penalty shall include an amount not less than 
        the total cost (or, in the case of knowing or 
        intentional disruption, not less than 150 percent of 
        the total cost) of the economic damage incurred by the 
        animal or agricultural enterprise, any employee of the 
        animal or agricultural enterprise, or any student 
        attending an academic animal or agricultural enterprise 
        as a result of the damage or loss of the property of an 
        animal or agricultural enterprise.
  (d) Identification.--The Secretary shall identify for each 
civil penalty assessed under subsection (c), the portion of the 
amount of the civil penalty that represents the recovery of 
Department costs and the portion that represents the recovery 
of economic losses.
  (e) Other Factors in Determining Penalty.--In determining the 
amount of a civil penalty under subsection (c), the Secretary 
shall consider the following:
          (1) The nature, circumstance, extent, and gravity of 
        the violation or violations.
          (2) The ability of the injured animal or agricultural 
        enterprise to continue to operate, costs incurred by 
        the animal or agricultural enterprise to recover lost 
        business, and the effect of the violation on earnings 
        of employees of the animal or agricultural enterprise.
          (3) The interruptions experienced by students 
        attending an academic animal or agricultural 
        enterprise.
          (4) Whether the violator has previously violated 
        subsection (a).
          (5) The violator's degree of culpability.
  (f) Fund To Assist Victims of Disruption.--
          (1) Fund established.--There is established in the 
        Treasury a fund which shall consist of that portion of 
        each civil penalty collected under subsection (c) that 
        represents the recovery of economic damages.
          (2) Use of amounts in fund.--The Secretary of 
        Agriculture shall use amounts in the fund to compensate 
        animal or agricultural enterprises, employees of an 
        animal or agricultural enterprise, and student 
        attending an academic animal or agricultural enterprise 
        for economic losses incurred as a result of the 
        disruption of the functioning of an animal or 
        agricultural enterprise in violation of subsection (b).

SEC. [6] 7. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--Subject to subsection (b), there are 
authorized to be appropriated such sums as are necessary for 
each of fiscal years 1996 through [2002] 2011 for the study, 
plan, design, structure, and related costs of agricultural 
research facilities under this Act.

           *       *       *       *       *       *       *

                              ----------                              

SECTION 2 OF THE COMPETITIVE, SPECIAL AND FACILITIES RESEARCH GRANT ACT

SEC. 2. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

  (a) Establishment of Grant Program.--(1) * * *

           *       *       *       *       *       *       *

          (3) Determination of high priority research.--
        Research priorities shall be determined by the 
        Secretary on an annual basis, taking into account input 
        as gathered by the Secretary through the National 
        Agricultural Research, Extension, Education, and 
        Economics Advisory Board.

           *       *       *       *       *       *       *

  (b) Competitive Grants.--(1) * * *

           *       *       *       *       *       *       *

  (10) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this subsection $150,000,000 
for fiscal year 1991, $275,000,000 for fiscal year 1992, 
$350,000,000 for fiscal year 1993, $400,000,000 for fiscal year 
1994, and $500,000,000 for each of fiscal years 1995 through 
[2002] 2011, of which each fiscal year--

           *       *       *       *       *       *       *

                              ----------                              

  NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING POLICY ACT 
AMENDMENTS OF 1985

           *       *       *       *       *       *       *

   TITLE XIV--NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING

Subtitle A--General Provisions

           *       *       *       *       *       *       *

            [agricultural information exchange with ireland

  [Sec. 1420. (a) The Secretary of Agriculture shall undertake 
discussions with representatives of the Government of Ireland 
that may lead to an agreement that will provide for the 
development of a program between the United States and Ireland 
whereby there will be--
          [(1) a greater exchange of--
                  [(A) agricultural scientific and educational 
                information, techniques, and data;
                  [(B) agricultural marketing information, 
                techniques, and data; and
                  [(C) agricultural producer, student, teacher, 
                agribusiness (private and cooperative) 
                personnel; and
          [(2) the fostering of joint investment ventures, 
        cooperative research, and the expansion of United 
        States trade with Ireland.
  [(b) The Secretary shall periodically report to 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 to keep such Committees apprised of 
the progress and accomplishments, and such other information as 
the Secretary considers appropriate, with regard to the 
development of such program.]

           *       *       *       *       *       *       *

  AUTHORIZATION FOR APPROPRIATIONS FOR FEDERAL AGRICULTURAL RESEARCH 
                               FACILITIES

  Sec. 1431. There are authorized to be appropriated for each 
of the fiscal years 1991 through [2002] 2011, such sums as may 
be necessary for the planning, construction, acquisition, 
alternation, and repair of buildings and other public 
improvements, including the cost of acquiring or obtaining 
rights to use land, of or used by the Agricultural Research 
Service, except that--

           *       *       *       *       *       *       *

                      [PESTICIDE RESISTANCE STUDY

  [Sec. 1437. (a) The Secretary of Agriculture is encouraged to 
conduct a study on the detection and management of pesticide 
resistance and, within 1 year after the date of enactment of 
this Act, submit to the President and Congress a report on such 
study.
  [(b) The study shall include--
          [(1) a review of existing efforts to examine and 
        identify the mechanisms, genetics, and ecological 
        dynamics of target populations of insect and plant 
        pests developing resistance to pesticides;
          [(2) a review of existing efforts to monitor current 
        and historical patterns of pesticide resistance; and
          [(3) a strategy for the establishment of a national 
        pesticide resistance monitoring program, involving 
        Federal, State, and local agencies, as well as the 
        private sector.

                     [EXPANSION OF EDUCATION STUDY

  [Sec. 1438. (a) The Secretary of Agriculture and the 
Secretary of Education are authorized to take such joint action 
as may be necessary to expand the scope of the study, known as 
the Study of Agriculture Education on the Secretary Level, 
currently being conducted by the National Academy of Sciences 
and sponsored jointly by the Departments of Agriculture and 
Education to include--
          [(1) a study of the potential use of modern 
        technology in the teaching of agriculture programs at 
        the secondary school level; and
          [(2) recommendations of the National Academy of 
        Sciences on how modern technology can be most 
        effectively utilized in the teaching of agricultural 
        programs at the secondary school level.
  [(b) Any increase in the cost of conducting study as a result 
of expanding the scope of such study pursuant to subsection (a) 
shall be borne by the Secretary of Agriculture out of funds 
appropriated to the Department of Agriculture for research and 
education or from funds made available to the National Academy 
of Sciences from private sources to expand the scope of such 
study.]

           *       *       *       *       *       *       *

                              ----------                              

                    SECTION 3 OF THE SMITH-LEVER ACT

  Sec. 3. (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

          (3) There are authorized to be appropriated for the 
        fiscal year ending June 30, 1996, and for each fiscal 
        year thereafter, for payment on behalf of the 1994 
        Institutions (as defined in section 532 of the Equity 
        in Educational Land-Grant Status Act of 1994), 
        [$5,000,000] such sums as are necessary for the 
        purposes set forth in section 2. Such sums shall be in 
        addition to the sums appropriated for the several 
        States and Puerto Rico, the Virgin Islands, and Guam 
        under the provisions of this section. Such sums shall 
        be distributed on the basis of a competitive 
        application process to be developed and implemented by 
        the Secretary and paid by the Secretary to 1994 
        Institutions (in accordance with regulations that the 
        Secretary may promulgate) and may be administered by 
        the 1994 Institutions through cooperative agreements 
        with colleges and universities eligible to receive 
        funds under the Act of July 2, 1862 (12 Stat. 503, 
        chapter 130; 7 U.S.C. 301 et seq.), or the Act of 
        August 30, 1890 (26 Stat. 419, chapter 841; 7 U.S.C. 
        321 et seq.), including Tuskegee University, located in 
        any State.

           *       *       *       *       *       *       *

                              ----------                              

PLANT PROTECTION ACT

           *       *       *       *       *       *       *

TITLE IV--PLANT PROTECTION ACT

           *       *       *       *       *       *       *

Subtitle A--Plant Protection

           *       *       *       *       *       *       *

SEC. 415. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING 
                    AUTHORITIES.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Payment of Compensation.--The Secretary may pay 
compensation to any person for economic losses incurred by the 
person as a result of action taken by the Secretary under this 
section. The determination by the Secretary of the amount of 
any compensation to be paid under this subsection shall be 
final and shall not be subject to judicial review or review by 
any officer of the Government other than the Secretary or the 
designee of the Secretary.

           *       *       *       *       *       *       *

SEC. 419. METHYL BROMIDE.

  (a) In General.--The Secretary, upon request of State, local, 
or tribal authorities, shall determine whether methyl bromide 
treatments or applications required by State, local, or tribal 
authorities to prevent the introduction, establishment, or 
spread of plant pests (including diseases) or noxious weeds 
should be authorized as an official control or official 
requirement.
  (b) Administration.--
          (1) Timeline for determination.--The Secretary shall 
        make the determination required by subsection (a) not 
        later than 90 days after receiving the request for such 
        a determination.
          (2) Regulations.--The promulgation of regulations for 
        and the administration of this section shall be made 
        without regard to--
                  (A) the notice and comment provisions of 
                section 553 of title 5, United States Code;
                  (B) the Statement of Policy of the Secretary 
                of Agriculture, effective July 24, 1971 (36 
                Fed. Reg. 13804; relating to notices of 
                proposed rulemaking and public participation in 
                rulemaking); and
                  (C) chapter 35 of title 44, United States 
                Code (commonly known as the ``Paperwork 
                Reduction Act'').
  (c) Registry.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall publish, and 
thereafter maintain, a registry of State, local, and tribal 
requirements authorized by the Secretary under this section.

           *       *       *       *       *       *       *

Subtitle D--Authorization of Appropriations

           *       *       *       *       *       *       *

SEC. 442. TRANSFER AUTHORITY.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Secretarial Discretion.--The action of any officer, 
employee, or agent of the Secretary in carrying out this 
section, including determining the amount of and making any 
payment authorized to be made under this section, shall not be 
subject to review by any officer of the Government other than 
the Secretary or the designee of the Secretary.

           *       *       *       *       *       *       *

                              ----------                              

                 SECTION 11 OF THE ACT OF MAY 29, 1884

CHAP. 60.--An act for the establishment of a Bureau of Animal Industry, 
to prevent the exportation of diseased cattle, and to provide means for 
     the suppression and extirpation of pleuro-pneumonia and other 
              contagious diseases among domestic animals.

  Sec. 11. The Secretary of Agriculture, either independently 
or in cooperation with States or political subdivisions 
thereof, farmers' associations and similar organizations, and 
individuals, is authorized to control and eradicate any 
communicable diseases of livestock or poultry, including, but 
not limited to, tuberculosis and paratuberculosis of animals, 
avian tuberculosis, brucellosis of domestic animals, southern 
cattle ticks, hog cholera and related swine diseases, scabies 
in sheep and cattle, dourine in horses, scrapie and blue tongue 
in sheep, incipient or potentially serious minor outbreaks of 
diseases of animals, and contagious or infectious diseases of 
animals, and contagious or infectious diseases of animals (such 
as foot-and-mouth disease, rinderpest, and contagious 
pleuropneumonia) which in the opinion of the Secretary 
constitute an emergency and threaten the livestock industry of 
the country, including the payment of claims growing out of 
destruction of animals (including poultry), and of materials, 
affected by or exposed to any such disease, in accordance with 
such regulations as the Secretary may prescribe. The Secretary 
of Agriculture is authorized to prescribe and collect fees to 
recover the costs of carrying out the provisions of this 
section which relate to veterinary diagnostics. As used in this 
section, the term ``State'' includes the District of Columbia, 
Puerto Rico, and the Territories and possessions of the United 
States. The action of any officer, employee, or agent of the 
Secretary in carrying out this section, including determining 
the amount of and making any payment authorized to be made 
under this section, shall not be subject to review by any 
officer of the Government other than the Secretary or the 
designee of the Secretary.

           *       *       *       *       *       *       *

                              ----------                              

                       ACT OF SEPTEMBER 25, 1981

    AN ACT To enable the Secretary of Agriculture to assist, on an 
 emergency basis, in the eradication of plant pests and contagious or 
                infectious animal and poultry diseases.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That the 
Secretary of Agriculture may, in connection with emergencies 
which threaten any segment of the agricultural production 
industry of this country, transfer from other appropriations or 
funds available to the agencies or corporations of the 
Department of Agriculture such sums as the Secretary may deem 
necessary, to be available only in such emergencies for the 
arrest and eradication of contagious or infectious diseases of 
animals or poultry, and for expenses in accordance with the Act 
of February 28, 1947, as amended (21 U.S.C. 114b). The action 
of any officer, employee, or agent of the Secretary in carrying 
out this section, including determining the amount of and 
making any payment authorized to be made under this section, 
shall not be subject to review by any officer of the Government 
other than the Secretary or the designee of the Secretary.

           *       *       *       *       *       *       *

                              ----------                              

COOPERATIVE FORESTRY ASSISTANCE ACT OF 1978

           *       *       *       *       *       *       *

                          [FORESTRY INCENTIVES

  [Sec. 4. (a) The Secretary is authorized to develop and 
implement a forestry incentives program to encourage the 
development, management, and protection of nonindustrial 
private forest lands. The purposes of such program shall be to 
encourage landowners to apply practices that will provide for 
afforestation of suitable open lands, reforestation of cutover 
or other nonstocked or understocked forest lands, timber stand 
improvement practices, including thinning, prescribed burning, 
and other silvicultural treatments, and forest resources 
management and protection, so as to provide for the production 
of timber and other forest resources associated therewith.
  [(b) For the purposes of this section, the term ``private 
forest land'' means land capable of producing crops of 
industrial wood and owned by any private individual, group, 
Indian tribe or other native group, association, corporation, 
or other legal entity.
  [(c) Landowners shall be eligible for cost sharing under this 
program if they own one thousand acres or less of private 
forest land, except that the Secretary may approve cost sharing 
with landowners owning more than one thousand acres of such 
land if significant public benefits will accure. In no case, 
however, may the Secretary approve cost sharing with landowners 
owning more than five thousand acres of private forest land.
  [(d) The Secretary shall administer this section in 
accordance with regulations the Secretary shall develop in 
consultation with the committee described in section 13(c) of 
this Act. Regulations issued under title X of the Agricultural 
Act of 1970, as in effect before the amendment made by section 
336(d)(1) of the Federal Agriculture Improvement and Reform Act 
of 1996, to the extent not inconsistent with the provisions of 
this section, shall remain in effect until revoked or amended 
by regulations issued under this subsection. The regulations 
issued under this subsection shall include guidelines for the 
administration of this section at the Federal and State levels, 
and shall identify the measures and activities eligible for 
cost sharing under this section.
  [(e) Individual forest management plans developed by the 
landowner in cooperation with and approved by the State 
forester or equivalent State official shall be the basis for 
agreements between the landowners and the Secretary under this 
section. The Secretary shall encourage participating States to 
use private agencies, consultants, organizations, and firms to 
the extent feasible for the preparation of individual forest 
management plans.
  [(f) In return for the agreement by the landowner, the 
Secretary shall agree to share the cost of implementing those 
forestry practices and measures set forth in the agreement for 
which the Secretary determines that cost sharing is 
appropriate. The portion of such cost (including labor) to be 
shared shall be that portion that the Secretary determines is 
necessary and appropriate to implement the forestry practices 
and measures under the agreement, but not more than 75 percent 
of the actual costs incurred by the landowner. The maximum 
amount any individual may receive annually under the program 
authorized by this section shall be determined by the Secretary 
in consultation with the committee described in section 13(c) 
of this Act.
  [(g) The Secretary shall, for the purposes of this section, 
distribute funds available for cost sharing among the States 
only after assessing the public benefit incident thereto, and 
after giving appropriate consideration to (1) the acreage of 
private commercial forest land in each State, (2) the potential 
productivity of such land, (3) the number of ownerships 
eligible for cost sharing in each State, (4) the need for 
reforestation, timber stand improvement, or other forestry 
investments on such ownerships, and (5) the enhancement of 
other forest resources.
  [(h) The Secretary may, if the Secretary determines that 
doing so will contribute to the effective and equitable 
administration of the program authorized by this section, use 
an advertising and bid procedure in determining the lands in 
any area to be covered by agreements under this section.
  [(i) In implementing this section, the Secretary may use the 
authorities provided in section 1001, 1002, 1003, 1004, and 
1008 of the Agricultural Act of 1970, as in effect before the 
amendment made by section 336(d)(1) of the Federal Agriculture 
Improvement and Reform Act of 1996.
  [(j) There are hereby authorized to be appropriated for each 
of fiscal years 1996 through 2002 such sums as may be needed to 
implement this section, including funds necessary for technical 
assistance and expenses associated therewith.]

SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

  (a) Establishment.--
          (1) Establishment; purpose.--The Secretary shall 
        establish a Forest Land Enhancement Program (in this 
        section referred to as the ``Program'') for the purpose 
        of providing financial, technical, educational, and 
        related assistance to State foresters to encourage the 
        long-term sustainability of nonindustrial private 
        forest lands in the United States by assisting the 
        owners of such lands in more actively managing their 
        forest and related resources by utilizing existing 
        State, Federal, and private sector resource management 
        expertise, financial assistance, and educational 
        programs.
          (2) Administration.--The Secretary shall carry out 
        the Program within, and administer the Program through, 
        the Natural Resources Conservation Service.
          (3) Coordination.--The Secretary shall implement the 
        Program in coordination with State foresters.
  (b) Program Objectives.--In implementing the Program, the 
Secretary shall target resources to achieve the following 
objectives:
          (1) Investment in practices to establish, restore, 
        protect, manage, maintain, and enhance the health and 
        productivity of the nonindustrial private forest lands 
        in the United States for timber, habitat for flora and 
        fauna, water quality, and wetlands.
          (2) Ensuring that afforestation, reforestation, 
        improvement of poorly stocked stands, timber stand 
        improvement, practices necessary to improve seedling 
        growth and survival, and growth enhancement practices 
        occur where needed to enhance and sustain the long-term 
        productivity of timber and nontimber forest resources 
        to help meet future public demand for all forest 
        resources and provide environmental benefits.
          (3) Reduce the risks and help restore, recover, and 
        mitigate the damage to forests caused by fire, insects, 
        invasive species, disease, and damaging weather.
          (4) Increase and enhance carbon sequestration 
        opportunities.
          (5) Enhance implementation of agroforestry practices.
          (6) Maintain and enhance the forest landbase and 
        leverage State and local financial and technical 
        assistance to owners that promote the same conservation 
        and environmental values.
  (c) Eligibility.--
          (1) In general.--An owner of nonindustrial private 
        forest land is eligible for cost-sharing assistance 
        under the Program if the owner--
                  (A) agrees to develop and implement an 
                individual stewardship, forest, or stand 
                management plan addressing site specific 
                activities and practices in cooperation with, 
                and approved by, the State forester, state 
                official, or private sector program in 
                consultation with the State forester;
                  (B) agrees to implement approved activities 
                in accordance with the plan for a period of not 
                less than 10 years, unless the State forester 
                approves a modification to such plan; and
                  (C) meets the acreage restrictions as 
                determined by the State forester in conjunction 
                with the State Forest Stewardship Coordinating 
                Committee established under section 19.
          (2) State priorities.--The Secretary, in consultation 
        with the State forester and the State Forest 
        Stewardship Coordinating Committee may develop State 
        priorities for cost sharing under the Program that will 
        promote forest management objectives in that State.
          (3) Development of plan.--An owner shall be eligible 
        for cost-share assistance for the development of the 
        individual stewardship, forest, or stand management 
        plan required by paragraph (1).
  (d) Approved Activities.--
          (1) Development.--The Secretary, in consultation with 
        the State Forest Stewardship Coordinating Committee, 
        shall develop a list of approved forest activities and 
        practices that will be eligible for cost-share 
        assistance under the Program within each State.
          (2) Type of activities.--In developing a list of 
        approved activities and practices under paragraph (1), 
        the Secretary shall attempt to achieve the 
        establishment, restoration, management, maintenance, 
        and enhancement of forests and trees for the following:
                  (A) The sustainable growth and management of 
                forests for timber production.
                  (B) The restoration, use, and enhancement of 
                forest wetlands and riparian areas.
                  (C) The protection of water quality and 
                watersheds through the application of State-
                developed forestry best management practices.
                  (D) Energy conservation and carbon 
                sequestration purposes.
                  (E) Habitat for flora and fauna.
                  (F) The control, detection, and monitoring of 
                invasive species on forestlands as well as 
                preventing the spread and providing for the 
                restoration of lands affected by invasive 
                species.
                  (G) Hazardous fuels reduction and other 
                management activities that reduce the risks and 
                help restore, recover, and mitigate the damage 
                to forests caused by fire.
                  (H) The development of forest or stand 
                management plans.
                  (I) Other activities approved by the 
                Secretary, in coordination with the State 
                Forest Stewardship Coordinating Committee.
  (e) Cooperation.--In implementing the Program, the Secretary 
shall cooperate with other Federal, State, and local natural 
resource management agencies, institutions of higher education, 
and the private sector.
  (f) Reimbursement of Eligible Activities.--
          (1) In general.--The Secretary shall share the cost 
        of implementing the approved activities that the 
        Secretary determines are appropriate, in the case of an 
        owner that has entered into an agreement to place 
        nonindustrial private forest lands of the owner in the 
        Program.
          (2) Rate.--The Secretary shall determine the 
        appropriate reimbursement rate for cost-share payments 
        under paragraph (1) and the schedule for making such 
        payments.
          (3) Maximum.--The Secretary shall not make cost-share 
        payments under this subsection to an owner in an amount 
        in excess of 75 percent of the total cost, or a lower 
        percentage as determined by the State forester, to such 
        owner for implementing the practices under an approved 
        plan. The maximum payments to any one owner shall be 
        determined by the Secretary.
          (4) Consultation.--The Secretary shall make 
        determinations under this subsection in consultation 
        with the State forester.
  (g) Recapture.--
          (1) In general.--The Secretary shall establish and 
        implement a mechanism to recapture payments made to an 
        owner in the event that the owner fails to implement 
        any approved activity specified in the individual 
        stewardship, forest, or stand management plan for which 
        such owner received cost-share payments.
          (2) Additional remedy.--The remedy provided in 
        paragraph (1) is in addition to any other remedy 
        available to the Secretary.
  (h) Distribution.--The Secretary shall distribute funds 
available for cost sharing under the Program among the States 
only after giving appropriate consideration to--
          (1) the total acreage of nonindustrial private forest 
        land in each State;
          (2) the potential productivity of such land;
          (3) the number of owners eligible for cost sharing in 
        each State;
          (4) the opportunities to enhance non-timber resources 
        on such forest lands;
          (5) the anticipated demand for timber and nontimber 
        resources in each State;
          (6) the need to improve forest health to minimize the 
        damaging effects of catastrophic fire, insects, 
        disease, or weather; and
          (7) the need and demand for agroforestry practices in 
        each State.
  (i) Definitions.--In this section:
          (1) Nonindustrial private forest lands.--The term 
        ``nonindustrial private forest lands'' means rural 
        lands, as determined by the Secretary, that--
                  (A) have existing tree cover or are suitable 
                for growing trees; and
                  (B) are owned or controlled by any 
                nonindustrial private individual, group, 
                association, corporation, Indian tribe, or 
                other private legal entity (other than a 
                nonprofit private legal entity) so long as the 
                individual, group, association, corporation, 
                tribe, or entity has definitive decision-making 
                authority over the lands, including through 
                long-term leases and other land tenure systems, 
                for a period of time long enough to ensure 
                compliance with the Program.
          (2) Owner.--The term ``owner'' includes a private 
        individual, group, association, corporation, Indian 
        tribe, or other private legal entity (other than a 
        nonprofit private legal entity) that has definitive 
        decision-making authority over nonindustrial private 
        forest lands through a long-term lease or other land 
        tenure systems.
          (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
          (4) State forester.--The term ``State forester'' 
        means the director or other head of a State Forestry 
        Agency or equivalent State official.
  (j) Availability of Funds.--The Secretary shall use 
$150,000,000 of funds of the Commodity Credit Corporation to 
carry out the Program during the period beginning on October 1, 
2001, and ending on September 30, 2011.

           *       *       *       *       *       *       *

[SEC. 6. STEWARDSHIP INCENTIVE PROGRAM.

  [(a) Establishment.--The Secretary, in consultation with 
State foresters or equivalent State officials, shall establish 
a program within the Forest Service, to be known as the 
``Stewardship Incentive Program'' (hereafter referred to in 
this section as the ``Program''), to meet the objectives and 
goals of section 5.
  [(b) Eligibility.--
          [(1) In general.--Owners of nonindustrial private 
        forest lands shall be eligible for cost-sharing 
        assistance under the Program if such owners--
                  [(A) have developed an approved forest 
                stewardship plan pursuant to section 5(f);
                  [(B) agree to implement approved activities 
                pursuant to paragraph (4) in accordance with 
                the plan for a period of not less than 10 years 
                unless the State forester or equivalent State 
                official approves a modification to such plan; 
                and
                  [(C) own not more than 1,000 acres of 
                nonindustrial private forest land, except that 
                the Secretary may approve the provision of 
                cost-sharing assistance to landowners that own 
                more than 1,000 acres of such land if the 
                Secretary determines that significant public 
                benefits will accrue from such approval.
          [(2) Limitation.--
                  [(A) Secretary.--The Secretary shall not 
                approve of the provision of cost-sharing 
                assistance to any landowner owning in excess of 
                5,000 acres of nonindustrial private forest 
                land.
                  [(B) Landowner.--A landowner shall not 
                receive cost-share assistance for management on 
                acreage under this section if such landowner 
                receives cost-share assistance on the same 
                acreage under section 4.
          [(3) State priorities.--The Secretary in consultation 
        with the State forester, or equivalent State official, 
        other State natural resource management agencies, and 
        the State Coordinating Committee established pursuant 
        to section 19(b), may develop State priorities for cost 
        sharing under this section that will promote unique 
        forest management objectives in that State.
          [(4) Approved activities.--
                  [(A) Development.--The Secretary, in 
                consultation with the State Coordinating 
                Committees established pursuant to section 
                19(b), shall develop a list of approved forest 
                activities and practices that will be eligible 
                for cost-share assistance under the Program 
                within each State.
                  [(B) Type of activities.--The Secretary, in 
                developing a list of approved activities and 
                practices under subparagraph (A), shall attempt 
                to achieve landowner and public purposes 
                including--
                          [(i) the establishment, management, 
                        maintenance, and restoration of forests 
                        for shelterbelts, windbreaks, aesthetic 
                        quality, and other conservation 
                        purposes;
                          [(ii) the sustainable growth and 
                        management of forests for timber 
                        production;
                          [(iii) the protection, restoration, 
                        and use of forest wetlands;
                          [(iv) the enhanced management and 
                        maintenance of native vegetation on 
                        other lands vital to water quality;
                          [(v) the growth and management of 
                        trees for energy conservation purposes;
                          [(vi) the management and maintenance 
                        of fish and wildlife habitat;
                          [(vii) the management of outdoor 
                        recreational opportunities; and
                          [(viii) other activities approved by 
                        the Secretary.
  [(c) Reimbursement of Eligible Activities.--
          [(1) In general.--The Secretary shall share the cost 
        of developing and carrying out the forest stewardship 
        plan under section 5(f), and in implementing the 
        approved activities that the Secretary determines are 
        appropriate and in the public interest, with a 
        landowner who has entered in an agreement to place the 
        forest land of such owner into the Program.
          [(2) Rate.--The Secretary, in consultation with the 
        State forester, or equivalent State official, shall 
        determine the appropriate reimbursement rate for cost-
        share payments under paragraph (1) and the schedule for 
        making such payments.
          [(3) Maximum.--The Secretary shall not make cost-
        share payments under this subsection to a landowner in 
        an amount in excess of 75 percent of the total cost to 
        such landowner of developing the forest stewardship 
        plan and implementing eligible activities under the 
        plan. The maximum payments to any one landowner shall 
        be determined by the Secretary.
  [(d) Recapture.--
          [(1) In general.--The Secretary shall establish and 
        implement a mechanism to recapture payments made to a 
        landowner in the event that the landowner fails to 
        implement any approved activity specified in the forest 
        stewardship plan for which such owner received cost-
        share payments.
          [(2) Additional provision.--The provisions of 
        paragraph (1) are in addition to any other provision 
        available.
  [(e) Distribution.--The Secretary shall distribute funds 
available for cost sharing under this section among the States 
only after assessing the public benefit incident to such 
distribution and after giving appropriate consideration to--
          [(1) the total acreage of nonindustrial private 
        forest land in each State;
          [(2) the potential productivity of such land;
          [(3) the number of owners eligible for cost sharing 
        in each State;
          [(4) the need for reforestation in each State;
          [(5) the opportunities to enhance nontimber resources 
        on such forest lands; and
          [(6) the anticipated demand for timber and nontimber 
        resources in each State.
  [(f) Authorization of Appropriations.--There are authorized 
to be appropriated $100,000,000 for each of the fiscal years 
1991 through 1995, and such sums as may be necessary 
thereafter, to carry out this section.]

           *       *       *       *       *       *       *

SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

  (a) Cooperative Management Related to Wildfire Threats.--The 
Secretary may cooperate with State foresters and equivalent 
State officials in the management of lands in the United States 
for the following purposes:
          (1) Aid in wildfire prevention and control;
          (2) Protect communities from wildfire threats;
          (3) Enhance the growth and maintenance of trees and 
        forests that promote overall forest health.
          (4) Ensure the continued production of all forest 
        resources, including timber, outdoor recreation 
        opportunities, wildlife habitat, and clean water, 
        through conservation of forest cover on watersheds, 
        shelterbelts, and windbreaks.
  (b) Community and Private Land Fire Assistance Program.--
          (1) Establishment; purpose.--The Secretary shall 
        establish a Community and Private Land Fire Assistance 
        program--
                  (A) to focus the Federal role in promoting 
                optimal firefighting efficiency at the Federal, 
                State, and local levels;
                  (B) to augment Federal projects that 
                establish landscape level protection from 
                wildfires;
                  (C) to expand outreach and education programs 
                to homeowners and communities about fire 
                prevention; and
                  (D) to establish defensible space around 
                private landowners homes and property against 
                wildfires.
          (2) Components.--In coordination with existing 
        authorities under this Act, the Secretary may undertake 
        on both Federal and non-Federal lands--
                  (A) fuel hazard mitigation and prevention;
                  (B) invasive species management;
                  (C) multi-resource wildfire planning;
                  (D) community protection planning;
                  (E) community and landowner education 
                enterprises, including the program known as 
                FIREWISE;
                  (F) market development and expansion;
                  (G) improved wood utilization;
                  (H) special restoration projects.
          (3) Considerations.--The Secretary shall use local 
        contract personnel wherever possible to carry out 
        projects under the Program.
  (c) Authorization of Appropriations.--There are hereby 
authorized to be appropriated to the Secretary $35,000,000 for 
each of fiscal years 2002 through 2011, and such sums as may be 
necessary thereafter, to carry out this section.

           *       *       *       *       *       *       *

                              ----------                              

RENEWABLE RESOURCES EXTENSION ACT OF 1978

           *       *       *       *       *       *       *

SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

  The Secretary shall establish a program to be known as the 
``Sustainable Forestry Outreach Initiative'' for the purpose of 
educating landowners regarding the following:
          (1) The value and benefits of practicing sustainable 
        forestry.
          (2) The importance of professional forestry advice in 
        achieving their sustainable forestry objectives.
          (3) The variety of public and private sector 
        resources available to assist them in planning for and 
        practicing sustainable forestry.

                      APPROPRIATIONS AUTHORIZATION

  Sec. 6. There are hereby authorized to be appropriated to 
implement this Act [$15,000,000] $30,000,000 for each of fiscal 
years 1987 through [2002] 2011. Generally, States shall be 
eligible for funds appropriated under this Act according to the 
respective capabilities of their private forests and rangelands 
for yielding renewable resources and relative needs for such 
resources identified in the periodic Renewable Resource 
Assessment provided for in section 3 of the Forest and 
Rangeland Renewable Resources Planning Act of 1974 and the 
periodic appraisal of land and water resources provided for in 
section 5 of the Soil and Water Resources Conservation Act of 
1977.

           *       *       *       *       *       *       *

                              ----------                              

    SECTION 2405 OF THE GLOBAL CLIMATE CHANGE PREVENTION ACT OF 1990

SEC. 2405. OFFICE OF INTERNATIONAL FORESTRY.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated for each of fiscal years 1996 through [2002] 
2011 such sums as are necessary to carry out this section.

           *       *       *       *       *       *       *

                              ----------                              

                SECTION 32 OF THE ACT OF AUGUST 24, 1935

      Sec. 32. There is hereby appropriated for each fiscal 
year beginning with the fiscal year ending June 30, 1936, an 
amount equal to 30 per centum of the gross receipts from duties 
collected under the customs laws during the period January 1 to 
December 31, both inclusive, preceding the beginning of each 
such fiscal year. Such sums shall be maintained in a separate 
fund and shall be used by the Secretary of Agriculture only to 
(1) encourage the exportation of agricultural commodities and 
products thereof by the payment of benefits in connection with 
the exportation thereof or of indemnities for losses incurred 
in connection with such exportation or by payments to producers 
in connection with the production of that part of any 
agricultural commodity required for domestic consumption; (2) 
encourage the domestic consumption of such commodities or 
products by diverting them, by the payment of benefits or 
indemnities or by other means, from the normal channels of 
trade and commerce or by increasing their utilization through 
benefits, indemnities, donations or by other means, among 
persons in low-income groups as determined by the Secretary of 
Agriculture; and (3) reestablish farmers' purchasing power by 
making payments in connection with the normal production of any 
agricultural commodity for domestic consumption. Determinations 
by the Secretary as to what constitutes diversion and what 
constitutes normal channels of trade and commerce and what 
constitutes normal production for domestic consumption shall be 
final.
      The sums appropriated under this section shall be 
expended for such one or more of the above-specified purposes, 
and at such times, in such manner, and in such amounts as the 
Secretary of Agriculture finds will effectuate substantial 
accomplishment of any one or more of the purposes of this 
section. Notwithstanding any other provision of this section, 
the amount that may be devoted, during any fiscal year after 
June 30, 1939, to any one agricultural commodity or the 
products thereof in such fiscal year, shall not exceed 25 per 
centum of the funds available under this section for such 
fiscal year. The sums appropriated under this section shall be 
devoted principally to perishable non-basic agricultural 
commodities (other than those receiving price support under 
title II of the Agricultural Act of 1949) and their products. 
The sums appropriated under this section shall, notwithstanding 
the provisions of any other law, continue to remain available 
for the purposes of this section until expended; but any excess 
of the amount remaining unexpended at the end of any fiscal 
year over [$300,000,000] $500,000,000 shall, in the same manner 
as though it had been appropriated for the service of such 
fiscal year, be subject to the provisions of section 3690 of 
the Revised Statutes (U.S.C., title 31, sec. 712), and section 
5 of the Act entitled ``An Act making appropriations for the 
legislative, executive, and judicial expenses of the Government 
for the year ending June thirtieth, eighteen hundred and 
seventy-five and for other purposes'' (U.S.C., title 31, sec. 
713). A public or private nonprofit organization that receives 
agricultural commodities or the products thereof under clause 
(2) of the second sentence may transfer such commodities or 
products to another public or private nonprofit organization 
that agrees to use such commodities or products to provide, 
without cost or waste, nutrition assistance to individuals in 
low-income groups.

                                
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