I

104TH CONGRESS

1ST SESSION H. R. 2532

To provide marketing loans and a total acreage base for the 1996 through

2002 crops of upland cotton, feed grains, rice, oilseeds, and wheat,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 25, 1995

Mr. MINGE (for himself, Mr. JOHNSON of South Dakota, Mr. PETERSON of

Minnesota, Mr. POMEROY, Mr. HOLDEN, Mr. HILLIARD, and Mr. WILLIAMS) introduced the following bill; which was referred to the Committee

on Agriculture

A BILL

To provide marketing loans and a total acreage base for

the 1996 through 2002 crops of upland cotton, feed

grains, rice, oilseeds, and wheat, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Family Farm Empowerment Act of 1995’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:

Sec. 1. Short title; table of contents.
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Sec. 2. Marketing loans for 1996 through 2002 crops of certain agricultural

commodities.

Sec. 3. Total acreage base system.

Sec. 4. Conforming amendments to current price support programs for program

crops.

Sec. 5. Elimination of acreage reduction programs.

Sec. 6. Extension of cottonseed oil and sunflower oil export programs.

Sec. 7. Suspension of permanent price support authority.

Sec. 8. Removal of three-entity rule; direct attribution.

1 SEC. 2. MARKETING LOANS FOR 1996 THROUGH 2002 CROPS

2 OF CERTAIN AGRICULTURAL COMMODITIES.

3 Title I of the Agricultural Act of 1949 (7 U.S.C.

4 1441 et seq.) is amended by adding at the end the follow5 ing:

6 ‘‘SEC. 116. MARKETING LOANS FOR 1996 THROUGH 2002

7 CROPS OF CERTAIN AGRICULTURAL COM8 MODITIES.

9 ‘‘(a) DEFINITIONS.—For the purposes of this section:

10 ‘‘(1) COVERED COMMODITIES.—The term ‘cov11 ered commodities’ means rice, upland cotton, feed

12 grains, wheat, and oilseeds.

13 ‘‘(2) FEED GRAINS.—The term ‘feed grains’

14 means corn, grain sorghums, barley, oats, and rye.

15 ‘‘(3) OILSEEDS.—The term ‘oilseeds’ means

16 soybeans, sunflower seeds, canola, rapeseed, saf17 flower, flaxseed, mustard seed, and such other oil18 seeds as the Secretary may designate.

19 ‘‘(b) MARKETING LOANS.—

20 ‘‘(1) AVAILABILITY.—The Secretary shall make

21 available to eligible producers on a farm a
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1 nonrecourse marketing loan for each of the 1996

2 through 2002 crops of covered commodities pro3 duced on the farm. The term of the marketing loan

4 shall be 15 months in length.

5 ‘‘(2) ELIGIBLE PRODUCERS.—To be eligible for

6 a loan under this subsection, the producers on a

7 farm may not plant covered commodities on a farm

8 in excess of the total acreage base of the farm, as

9 determined under section 503.

10 ‘‘(3) LOAN RATE.—Loans made under this sub11 section shall be made at the rate of 115 percent of

12 the simple average national price received by produc13 ers of the covered commodity, as determined by the

14 Secretary, during the marketing years for the imme15 diately preceding 5 crops of the covered commodity,

16 excluding the year in which the average price was

17 the highest and the year in which the average price

18 was the lowest in such period.

19 ‘‘(c) LIMITATION ON TOTAL VALUE OF MARKETING

20 LOANS.—The combined annual value of loans made to a

21 producer under subsection (b) may not exceed $175,000.

22 ‘‘(d) REPAYMENT.—

23 ‘‘(1) REPAYMENT RATE.—Producers on a farm

24 may repay loans made under subsection (b) for a

25 covered commodity at a level that is the lesser of—
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1 ‘‘(A) the loan rate determined for the com2 modity; or

3 ‘‘(B) the prevailing domestic market price

4 for the commodity, as determined by the Sec5 retary.

6 ‘‘(2) PREVAILING DOMESTIC MARKET PRICE.—

7 The Secretary shall prescribe by regulation—

8 ‘‘(A) a formula to determine the prevailing

9 domestic market price for each covered com10 modity, which may include adjustments for dif11 ferences in quality but not for differences in lo12 cation; and

13 ‘‘(B) a mechanism by which the Secretary

14 shall announce periodically the prevailing do15 mestic market prices established under this sub16 section.

17 ‘‘(e) ADJUSTMENT ACCOUNT.—

18 ‘‘(1) ESTABLISHMENT.—The Secretary shall es19 tablish an Adjustment Account, which shall be used

20 to make—

21 ‘‘(A) payments to producers of the 1996

22 through 2002 crops of covered commodities who

23 participate in the marketing loan program es24 tablished under subsection (b); and
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1 ‘‘(B) payments to producers of the 1994

2 and 1995 crops of covered commodities that are

3 authorized under sections 101B, 103B, 105B,

4 107B, and 205, but not paid before the date of

5 the enactment of this section.

6 ‘‘(2) AMOUNT IN ACCOUNT.—The Secretary

7 shall transfer into the Adjustment Account from

8 funds of the Commodity Credit Corporation such

9 sums as shall be necessary to implement this section

10 and make marketing loans available under sub11 section (b).

12 ‘‘(3) AVAILABILITY OF FUNDS.—Funds in the

13 Adjustment Account shall remain available until ex14 pended.

15 ‘‘(f) ADVANCE PAYMENT.—At the request of a pro16 ducer who intends to obtain a marketing loan under sub17 section (b) for a crop of a covered commodity, the Sec18 retary shall make available to the producer in advance of

19 planting not more than 10 percent of the projected mar20 keting loan for that crop year.

21 ‘‘(g) MARKETING LOAN DEFICIENCY PAYMENTS.—

22 ‘‘(1) IN GENERAL.—For each of the 1996

23 through 2002 crops of covered commodities, the Sec24 retary may make payments available to producers

25 who, although eligible to obtain a marketing loan
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1 under subsection (b), agree to forego obtaining the

2 loan in return for payments under this subsection.

3 ‘‘(2) COMPUTATION.—A payment under this

4 subsection shall be computed by multiplying—

5 ‘‘(A) the loan payment rate; by

6 ‘‘(B) the quantity of the covered commod7 ity which the producer is eligible to place under

8 loan but for which the producer foregoes ob9 taining the loan in return for payments under

10 this subsection.

11 ‘‘(3) LOAN PAYMENT RATE.—For purposes of

12 this subsection, the loan payment rate shall be the

13 amount by which—

14 ‘‘(A) the loan rate for the commodity de15 termined under subsection (b); exceeds

16 ‘‘(B) the repayment rate for the commod17 ity determined under subsection (d).’’.

18 SEC. 3. TOTAL ACREAGE BASE SYSTEM.

19 (a) DEFINITIONS.—Section 502 of the Agricultural

20 Act of 1949 (7 U.S.C. 1462) is amended by striking para21 graph (3) and inserting the following new paragraphs:

22 ‘‘(3) FEED GRAINS.—The term ‘feed grains’

23 means corn, grain sorghums, barley, oats, and rye.
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1 ‘‘(4) COVERED COMMODITY.—The term ‘cov2 ered commodity’ means rice, upland cotton, feed

3 grains, wheat, or oilseeds.’’.

4 (b) CROP ACREAGE BASE.—Section 503 of such Act

5 (7 U.S.C. 1463) is amended—

6 (1) in subsection (a)—

7 (A) by striking paragraph (1) and insert8 ing the following new paragraph:

9 ‘‘(1) IN GENERAL.—The Secretary shall provide

10 for the establishment and maintenance of a total

11 crop acreage base for covered commodities, including

12 any covered commodity crop produced under an es13 tablished practice of double cropping’’; and

14 (B) in paragraph (2), by striking ‘‘The

15 sum of the crop acreage bases’’ and inserting

16 ‘‘The total crop acreage base’’;

17 (2) by striking subsection (b) and inserting the

18 following:

19 ‘‘(b) CALCULATION.—The total crop acreage base for

20 a farm for a crop year shall be the number of acres that

21 is equal to the average of the acreage planted and consid22 ered planted to one of the covered commodity crops for

23 harvest on the farm in each of the 5 crop years preceding

24 that crop year.’’;

25 (3) by striking subsection (g); and
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1 (4) in subsection (h)—

2 (A) by striking ‘‘(1) IN GENERAL.—’’; and

3 (B) by striking paragraph (2).’’.

4 (c) APPLICATION OF TITLE.—Section 509 of such

5 Act (7 U.S.C. 1469) is amended by striking ‘‘1991

6 through 1997 program crops’’ and inserting ‘‘1991

7 through 2002 crops of covered commodities’’.

8 SEC. 4. CONFORMING AMENDMENTS TO CURRENT PRICE

9 SUPPORT PROGRAMS FOR PROGRAM CROPS.

10 (a) WHEAT 0/85 PROGRAM.—Section 107B(c)(1)(E)

11 of the Agricultural Act of 1949 (7 U.S.C. 1445b–

12 3a(c)(1)(E)) is amended by striking ‘‘through 1997’’ in

13 clauses (i) and (vii) each place it appears and inserting

14 ‘‘and 1995’’.

15 (b) FEED GRAINS 0/85 PROGRAM.—Section

16 105B(c)(1)(E) of such Act (7 U.S.C. 1444f(c)(1)(E)) is

17 amended by striking ‘‘through 1997’’ in clauses (i) and

18 (vii) each place it appears and inserting ‘‘and 1995’’.

19 (c) COTTON PROGRAM.—Section 103B of such Act

20 (7 U.S.C. 1444–2) is amended—

21 (1) in the section heading, by striking ‘‘1997’’

22 and inserting ‘‘1995’’;

23 (2) in subsections (a)(1), (b)(1), (c)(1)(A),

24 (c)(1)(B)(ii), and (o), by striking ‘‘1997’’ each place

25 it appears and inserting ‘‘1995’’;
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1 (3) in subsection (c)(1)(D)(i) and

2 (c)(1)(D)(v)(II) by striking ‘‘through 1997’’ each

3 place it appears and inserting ‘‘and 1995’’;

4 (4) in the heading of subsection

5 (c)(1)(D)(v)(II), by striking ‘‘THROUGH 1997 CROPS’’

6 and inserting ‘‘AND 1995 CROPS’’;

(5) in subsection (e)(1)(D), by striking ‘‘291 7 ⁄2

8 percent for each of the 1995 and 1996 crops, and

29 percent for the 1997 crop’’ and inserting ‘‘291 9 ⁄2

10 percent for the 1995 crop’’; and

11 (6) in subparagraphs (B)(i), (D)(i), (E)(i), and

12 (F)(i) of subsection (a)(5), by striking ‘‘1998’’ each

13 place it appears and inserting ‘‘1996’’.

14 (d) RICE 50/85 PROGRAM.—Section 101B of such

15 Act (7 U.S.C. 1441–2) is amended—

16 (1) in subsections (c)(1)(D)(i) and

17 (c)(1)(D)(v)(II), by striking ‘‘through 1997’’ each

18 place it appears and inserting ‘‘and 1995’’; and

19 (2) in the heading of subsection

20 (c)(1)(D)(v)(II), by striking ‘‘THROUGH 1997 CROPS’’

21 and inserting ‘‘AND 1995 CROPS’’.

22 (e) OILSEEDS.—Section 205(c) of such Act (7 U.S.C.

23 1446f(c)) is amended by striking ‘‘through 1997’’ both

24 places it appears and inserting ‘‘and 1995’’.
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1 SEC. 5. ELIMINATION OF ACREAGE REDUCTION PRO2 GRAMS.

3 (a) WHEAT.—Section 107B of the Agricultural Act

4 of 1949 (7 U.S.C. 1445b–3a) is amended by striking sub5 section (e) and redesignating subsections (f) through (q)

6 as subsections (e) through (p), respectively.

7 (b) FEED GRAINS.—Section 105B of such Act (7

8 U.S.C. 1444f) is amended by striking subsection (e) and

9 redesignating subsections (f) through (r) as subsections

10 (e) through (q), respectively.

11 (c) COTTON.—Section 103B of such Act (7 U.S.C.

12 1444–2) is amended by striking subsection (e) and redes13 ignating subsections (f) through (o) as subsections (e)

14 through (n), respectively.

15 (d) RICE.—Section 101B of such Act (7 U.S.C.

16 1441–2) is amended by striking subsection (e) and redes17 ignating subsections (f) through (n) as subsections (e)

18 through (m), respectively.

19 SEC. 6. EXTENSION OF COTTONSEED OIL AND SUNFLOWER

20 OIL EXPORT PROGRAMS.

21 Section 301(b)(2)(A) of the Disaster Assistance Act

22 of 1988 (7 U.S.C. 1464 note) is amended by striking

23 ‘‘through 1995’’ and inserting ‘‘through 2002’’.

24 SEC. 7. SUSPENSION OF PERMANENT PRICE SUPPORT AU25 THORITY.

26 (a) WHEAT.—
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1 (1) NONAPPLICABILITY OF CERTIFICATE RE2 QUIREMENTS.—Sections 379d through 379j of the

3 Agricultural Adjustment Act of 1938 (7 U.S.C.

4 1379d–1379j) shall not be applicable to wheat proc5 essors or exporters during the period June 1, 1995,

6 through May 31, 2003.

7 (2) SUSPENSION OF LAND USE, WHEAT MAR8 KETING ALLOCATION, AND PRODUCER CERTIFICATE

9 PROVISIONS.—Sections 331 through 339, 379b, and

10 379c of the Agricultural Adjustment Act of 1938 (7

11 U.S.C. 1331 through 1339, 1379b, and 1379c) shall

12 not be applicable to the 1996 through 2002 crops of

13 wheat.

14 (3) SUSPENSION OF CERTAIN QUOTA PROVI15 SIONS.—The joint resolution entitled ‘‘A joint reso16 lution relating to corn and wheat marketing quotas

17 under the Agricultural Adjustment Act of 1938, as

18 amended’’, approved May 26, 1941 (7 U.S.C. 1330

19 and 1340), shall not be applicable to the crops of

20 wheat planted for harvest in the calendar years 1996

21 through 2002.

22 (4) NONAPPLICABILITY OF SECTION 107 OF THE

23 AGRICULTURAL ACT OF 1949.—Section 107 of the

24 Agricultural Act of 1949 (7 U.S.C. 1445a) shall not
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1 be applicable to the 1996 through 2002 crops of

2 wheat.

3 (b) FEED GRAINS.—

4 (1) NONAPPLICABILITY OF SECTION 105 OF THE

5 AGRICULTURAL ACT OF 1949.—Section 105 of the

6 Agricultural Act of 1949 (7 U.S.C. 1444b) shall not

7 be applicable to the 1996 through 2002 crops of

8 feed grains.

9 (2) RECOURSE LOAN PROGRAM FOR SILAGE.—

10 Section 403 of the Food Security Act of 1985 (7

11 U.S.C. 1444e–1) is amended by striking ‘‘1996’’ and

12 inserting ‘‘2002’’.

13 (c) OILSEEDS.—Section 201(a) of the Agricultural

14 Act of 1949 (7 U.S.C. 1446(a)) is amended by striking

15 ‘‘oilseeds’’ and all that follows through ‘‘determine),’’.

16 SEC. 8. REMOVAL OF THREE-ENTITY RULE; DIRECT ATTRI17 BUTION.

18 Section 1001A of the Food Security Act of 1985 (7

19 U.S.C. 1308–1) is amended by striking subsection (a) and

20 inserting the following new subsection:

21 ‘‘(a) DIRECT ATTRIBUTION.—In the case of pay22 ments specified in paragraphs (1) and (2) of section 1001,

23 the Secretary shall attribute—

24 ‘‘(1) payments received by an individual directly

25 to the individual; and
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1 ‘‘(2) payments received by an entity to individ2 uals who own the entity in proportion to the owner3 ship interest of the individual in the entity.’’.

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