Calendar No. 338

104TH CONGRESS

2D SESSION H. R. 2854

AN ACT

To modify the operation of certain agricultural

programs.

FEBRUARY 29 (legislative day, FEBRUARY 28), 1996

Received; read twice and placed on the calendar
IIA

Calendar No. 338

104TH CONGRESS

2D SESSION H. R. 2854

IN THE SENATE OF THE UNITED STATES

FEBRUARY 29 (legislative day, FEBRUARY 28), 1996

Received; read twice and placed on the calendar

AN ACT

To modify the operation of certain agricultural programs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Agricultural Market Transition Act’’.

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

5 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—AGRICULTURAL MARKET TRANSITION PROGRAM

Sec. 101. Purpose.

Sec. 102. Definitions.

Sec. 103. Production flexibility contracts.

Sec. 104. Nonrecourse marketing assistance loans and loan deficiency

payments.

Sec. 105. Payment limitations.

Sec. 106. Peanut program.

Sec. 107. Sugar program.

Sec. 108. Administration.

Sec. 109. Elimination of permanent price support authority.

Sec. 110. Effect of amendments.

TITLE II—DAIRY

Sec. 201. Milk price support program.

Sec. 202. Consolidation and reform of federal milk marketing orders.

Sec. 203. Dairy export incentive program.

Sec. 204. Effect on fluid milk standards in the State of California.

Sec. 205. Repeal of milk manufacturing marketing adjustment.

Sec. 206. Promotion.

TITLE III—CONSERVATION

Sec. 301. Conservation.

Sec. 302. Wetlands reserve program.

Sec. 303. Elimination of consultation requirements with Sectary of the Interior.

Sec. 304. Environmental conservation acreage reserve program.

Sec. 305. Conservation reserve program.

TITLE IV—AGRICULTURAL PROMOTION AND EXPORT

PROGRAMS

Subtitle A—Agricultural Promotion and Export Enhancement

Programs

Sec. 401. Market promotion program.

Sec. 402. Export enhancement program.

Subtitle B—Amendments to Agricultural Trade Development

and Assistance Act of 1954 and Related Statutes

Sec. 411. Food aid to developing countries.

Sec. 412. Trade and development assistance.
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Sec. 413. Agreements regarding eligible countries and private entities.

Sec. 414. Terms and conditions of sales.

Sec. 415. Use of local currency payment.

Sec. 416. Eligible organizations.

Sec. 417. Generation and use of foreign currencies.

Sec. 418. General levels of assistance under Public Law 480.

Sec. 419. Food aid consultative group.

Sec. 420. Support of nongovernmental organizations.

Sec. 421. Commodity determinations.

Sec. 422. General provisions.

Sec. 423. Agreements.

Sec. 424. Administrative provisions.

Sec. 425. Expiration date.

Sec. 426. Regulations.

Sec. 427. Independent evaluation of programs.

Sec. 428. Authorization of appropriations.

Sec. 429. Coordination of foreign assistance programs.

Sec. 430. Use of certain local currency.

Sec. 431. Level of assistance to farmer to farmer program.

Sec. 432. Food security commodity reserve.

Sec. 433. Food for progress program.

Subtitle C—Amendments to Agricultural Trade Act of 1978

Sec. 451. Agricultural export promotion stragegy.

Sec. 452. Export credits.

Sec. 453. Export program and food assistance transfer authority.

Sec. 454. Arrival certification.

Sec. 455. Regulations.

Sec. 456. Foreign agricultural service.

Sec. 457. Reports.

Subtitle D—Miscellaneous

Sec. 471. Reporting requirements relating to tobacco.

Sec. 472. Triggered export enhancement.

Sec. 473. Disposition of commodities to prevent waste.

Sec. 474. Debt-for-health-and-protection swap.

Sec. 475. Policy on expansion of international markets.

Sec. 476. Policy on maintenance and development of export markets.

Sec. 477. Policy on trade liberalization.

Sec. 478. Agricultural trade negotiations.

Sec. 479. Policy on unfair trade practices.

Sec. 480. Agricultural aid and trade missions.

Sec. 481. Annual reports by agricultural attaches.

Sec. 482. World livestock market price information.

Sec. 483. Orderly liquidation of stocks.

Sec. 484. Sales of extra long staple cotton.

Sec. 485. Regulations.

Sec. 486. Emerging markets.

Sec. 487. Implementation of commitments under Uruguay Round Agreements.

Sec. 488. Sense of Congress concerning multilateral disciplines on credit guarantees.

Sec. 489. Foreign market development cooperator program.

Subtitle E—Dairy Exports
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Sec. 491. Dairy export incentive program.

Sec. 492. Authority to assist in establishment and maintenance of export trading company.

Sec. 493. Standby authority to indicate entity best suited to provide international market development and export services.

Sec. 494. Study and report regarding potential impact of Urguay Round on

prices, income and government purchases.

Sec. 495. Promotion of United States dairy products in international markets

through dairy promotion program.

TITLE V—MISCELLANEOUS

Sec. 501. Crop insurance.

Sec. 502. Collection and use of agricultural quarantine and inspection fees.

Sec. 503. Commodity Credit Corporation interest rate.

Sec. 504. Establishment of Office of Risk Management.

Sec. 505. Business Interruption Insurance Program.

Sec. 506. Continuation of options pilot program.

Sec. 507. Everglades agricultural area.

Sec. 508. Sense of Congress regarding purchase of American-made equipment

and products; requirement regarding notice.

TITLE VI—COMMISSION ON 21ST CENTURY PRODUCTION

AGRICULTURE

Sec. 601. Establishment.

Sec. 602. Composition.

Sec. 603. Comprehensive review of past and future of production agriculture.

Sec. 604. Reports.

Sec. 605. Powers.

Sec. 606. Commission procedures.

Sec. 607. Personnel matters.

Sec. 608. Termination of Commission.

TITLE VII—EXTENSION OF CERTAIN AUTHORITIES

Sec. 701. Extension of authority under Public Law 480.

Sec. 702. Extension of food for progress program.

1 TITLE I—AGRICULTURAL

2 MARKET TRANSITION PROGRAM

3 SEC. 101. PURPOSE.

4 It is the purpose of this title—

5 (1) to authorize the use of binding production

6 flexibility contracts between the United States and

7 agricultural producers to support farming certainty

8 and flexibility while ensuring continued compliance
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1 with farm conservation compliance plans and wet2 land protection requirements;

3 (2) to make nonrecourse marketing assistance

4 loans and loan deficiency available for certain crops;

5 (3) to improve the operation of farm programs

6 for peanuts and sugar; and

7 (4) to terminate price support authority under

8 the Agricultural Act of 1949.

9 SEC. 102. DEFINITIONS.

10 In this title:

11 (1) CONSIDERED PLANTED.—The term ‘‘con12 sidered planted’’ means acreage that is considered

13 planted under title V of the Agricultural Act of 1949

14 (7 U.S.C. 1461 et seq.) (as in effect prior to the

15 amendment made by section 109(b)(2)) and such

16 other acreage as the Secretary considers fair and eq17 uitable.

18 (2) CONTRACT.—The term ‘‘contract’’ means a

19 production flexibility contract entered into under

20 section 103.

21 (3) CONTRACT ACREAGE.—The term ‘‘contract

22 acreage’’ means 1 or more crop acreage bases estab23 lished for contract commodities under title V of the

24 Agricultural Act of 1949 (as in effect prior to the

25 amendment made by section 109(b)(2)) that would
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1 have been in effect for the 1996 crop (but for the

2 amendment made by section 109(b)(2)).

3 (4) CONTRACT COMMODITY.—The term ‘‘con4 tract commodity’’ means wheat, corn, grain sor5 ghum, barley, oats, upland cotton, and rice.

6 (5) CONTRACT PAYMENT.—The term ‘‘contract

7 payment’’ means a payment made under section 103

8 pursuant to a contract.

9 (6) DEPARTMENT.—The term ‘‘Department’’

10 means the United States Department of Agriculture.

11 (7) FARM PROGRAM PAYMENT YIELD.—The

12 term ‘‘farm program payment yield’’ means the farm

13 program payment yield established for the 1995 crop

14 of a contract commodity under section 505 of the

15 Agricultural Act of 1949 (as in effect prior to the

16 amendment made by section 109(b)(2)) The Sec17 retary shall adjust the farm program payment yield

18 for the 1995 crop of a contract commodity to ac19 count for any additional yield payments made with

20 respect to that crop under subsection (b)(2) of the

21 section.

22 (8) LOAN COMMODITY.—The term ‘‘loan com23 modity’’ means each contract commodity, extra long

24 staple cotton, and oilseeds.
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1 (9) OILSEED.—The term ‘‘oilseed’’ means a

2 crop of soybeans, sunflower seed, rapeseed, canola,

3 safflower, flaxseed, mustard seed, or, if designated

4 by the Secretary, other oilseeds.

5 (10) PRODUCER.—The term ‘‘producer’’ means

6 an owner, landlord, tenant, or sharecropper who

7 shares in the risk of producing a crop and who is

8 entitled to share in the crop available for marketing

9 from the farm, or would have shared had the crop

10 been produced. In determining whether a grower of

11 hybrid seed is a producer, the Secretary shall not

12 take into consideration the existence of a hybrid seed

13 contract.

14 (11) SECRETARY.—The term ‘‘Secretary’’

15 means the Secretary of Agriculture.

16 (12) STATE.—The term ‘‘State’’ means each of

17 the several States of the United States, the District

18 of Columbia, the Commonwealth of Puerto Rico, and

19 any other territory or possession of the United

20 States.

21 (13) UNITED STATES.—The term ‘‘United

22 States’’, when used in a geographical sense, means

23 all of the States.

24 SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.

25 (a) CONTRACTS AUTHORIZED.—
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1 (1) OFFER AND TERMS.—Beginning as soon as

2 practicable after the date of the enactment of this

3 title, the Secretary shall offer to enter into a con4 tract with an eligible owner or operator described in

5 paragraph (2) on a farm containing eligible farm6 land. Under the terms of a contract, the owner or

7 operator shall agree, in exchange for annual contract

8 payments, to—

9 (A) comply with the conservation plan for

10 the farm prepared in accordance with section

11 1212 of the Food Security Act of 1985 (16

12 U.S.C. 3812);

13 (B) comply with wetland protection re14 quirements applicable to the farm under sub15 title C of title XII of the Act (16 U.S.C. 3821

16 et seq.); and

17 (C) comply with the planting flexibility re18 quirements of subsection (j); and

19 (D) to use the land subject to the contract

20 for agricultural or related activities, but not for

21 nonagricultural commercial or industrial uses.

22 (2) ELIGIBLE OWNERS AND OPERATORS DE23 SCRIBED.—The producers and owners described in

24 this paragraph shall be eligible to enter into a con25 tract:
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1 (A) An owner of eligible farmland who as2 sumes all of the risk of producing a crop.

3 (B) An owner of eligible farmland who

4 shares in the risk of producing a crop.

5 (C) An operator of eligible farmland with

6 a share-rent lease of the eligible farmland, re7 gardless of the length of the lease, if the owner

8 enters into the same contract.

9 (D) An operator of eligible farmland who

10 cash rents the eligible farmland under a lease

11 expiring on or after September 30, 2002, in

12 which case the consent of the owner is not re13 quired.

14 (E) An operator of eligible farmland who

15 cash rents the eligible farmland under a lease

16 expiring before September 30, 2002, if the

17 owner consents to the contract.

18 (F) An owner of eligible farmland who

19 cash rents the eligible farmland and the lease

20 term expires before September 30, 2002, but

21 only if the actual operator of the farm declines

22 to enter into a contract. In the case of an

23 owner covered by this subparagraph, contract

24 payments shall not begin under a contract until

25 the fiscal year following the fiscal year in which
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1 the lease held by the nonparticipating operator

2 expires.

3 (G) An owner or operator described in any

4 preceding subparagraph of this paragraph re5 gardless of whether the owner or operator pur6 chased catastrophic risk protection for a fall7 planted 1996 crop under section 508(b) of the

8 Federal Crop Insurance Act (7 U.S.C.

9 1508(b)).

10 (3) TENANTS AND SHARECROPPERS.—In carry11 ing out this section, the Secretary shall provide ade12 quate safeguards to protect the interests of tenants

13 and sharecroppers.

14 (b) ELEMENTS.—

15 (1) TIME FOR CONTRACTING.—

16 (A) DEADLINE.—Except as provided in

17 subparagraph (B), the Secretary may not enter

18 into a contract after April 15, 1996.

19 (B) CONSERVATION RESERVE LANDS.—

20 (i) IN GENERAL.—At the beginning of

21 each fiscal year, the Secretary shall allow

22 an eligible owner or operator on a farm

23 covered by a conservation reserve contract

24 entered into under section 1231 of the

25 Food Security Act of 1985 (16 U.S.C.
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1 3831) that terminates after the date speci2 fied in subparagraph (A) to enter into or

3 expand a production flexibility contract to

4 cover the contract acreage of the farm that

5 was subject to the former conservation re6 serve contract.

7 (ii) AMOUNT.—Contract payments

8 made for contract acreage under this sub9 paragraph shall be made at the rate and

10 amount applicable to the annual contract

11 payment level for the applicable crop.

12 (2) DURATION OF CONTRACT.—

13 (A) BEGINNING DATE.—A contract shall

14 begin with—

15 (i) the 1996 crop of a contract com16 modity; or

17 (ii) in the case of acreage that was

18 subject to a conservation reserve contract

19 described in paragraph (1)(B), the date

20 the production flexibility contract was en21 tered into or expanded to cover the acre22 age.

23 (B) ENDING DATE.—A contract shall ex24 tend through the 2002 crop.
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1 (3) ESTIMATION OF CONTRACT PAYMENTS.—At

2 the time the Secretary enters into a contract, the

3 Secretary shall provide an estimate of the minimum

4 contract payments anticipated to be made during at

5 least the first fiscal year for which contract pay6 ments will be made.

7 (c) ELIGIBLE FARMLAND DESCRIBED.—Land shall

8 be considered to be farmland eligible for coverage under

9 a contract only if the land has contract acreage attrib10 utable to the land and—

11 (1) for at least 1 of the 1991 through 1995

12 crops, at least a portion of the land was enrolled in

13 the acreage reduction program authorized for a crop

14 of a contract commodity under section 101B, 103B,

15 105B, or 107B of the Agricultural Act of 1949 (as

16 in effect prior to the amendment made by section

17 109(b)(2)) or was considered planted;

18 (2) was subject to a conservation reserve con19 tract under section 1231 of the Food Security Act

20 of 1985 (16 U.S.C. 3831) whose term expired, or

21 was voluntarily terminated, on or after January 1,

22 1995; or

23 (3) is released from coverage under a conserva24 tion reserve contract by the Secretary during the pe-
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1 riod beginning on January 1, 1995, and ending on

2 the date specified in subsection (b)(1)(A).

3 (d) TIME FOR PAYMENT.—

4 (1) IN GENERAL.—An annual contract payment

5 shall be made not later than September 30 of each

6 of fiscal years 1996 through 2002.

7 (2) ADVANCE PAYMENTS.—

8 (A) FISCAL YEAR 1996.—At the option of

9 the owner or operator, 50 percent of the con10 tract payment for fiscal year 1996 shall be

11 made not later than June 15, 1996.

12 (B) SUBSEQUENT FISCAL YEARS.—At the

13 option of the owner or operator for fiscal year

14 1997 and each subsequent fiscal year, 50 per15 cent of the annual contract payment shall be

16 made on December 15.

17 (e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS

18 FOR EACH FISCAL YEAR.—

19 (1) IN GENERAL.—The Secretary shall, to the

20 maximum extent practicable, expend on a fiscal year

21 basis the following amounts to satisfy the obligations

22 of the Secretary under all contracts:

23 (A) For fiscal year 1996, $5,570,000,000.

24 (B) For fiscal year 1997, $5,385,000,000.

25 (C) For fiscal year 1998, $5,800,000,000.
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1 (D) For fiscal year 1999, $5,603,000,000.

2 (E) For fiscal year 2000, $5,130,000,000.

3 (F) For fiscal year 2001, $4,130,000,000.

4 (G) For fiscal year 2002, $4,008,000,000.

5 (2) ALLOCATION.—The amount made available

6 for a fiscal year under paragraph (1) shall be allo7 cated as follows:

8 (A) For wheat, 26.26 percent.

9 (B) For corn, 46.22 percent.

10 (C) For grain sorghum, 5.11 percent.

11 (D) For barley, 2.16 percent.

12 (E) For oats, 0.15 percent.

13 (F) For upland cotton, 11.63 percent.

14 (G) For rice, 8.47 percent.

15 (3) ADJUSTMENT.—The Secretary shall adjust

16 the amounts allocated for each contract commodity

17 under paragraph (2) for a particular fiscal year by—

18 (A) adding an amount equal to the sum of

19 all repayments of deficiency payments received

20 under section 114(a)(2) of the Agricultural Act

21 of 1949 (as in effect prior to the amendment

22 made by section 109(b)(2)) for the commodity;

23 (B) to the maximum extent practicable,

24 adding an amount equal to the sum of all con25 tract payments withheld by the Secretary, at
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1 the request of an owner or operator subject to

2 a contract, as an offset against repayments of

3 deficiency payments otherwise required under

4 section 114(a)(2) of the Act (as so in effect) for

5 the commodity;

6 (C) adding an amount equal to the sum of

7 all refunds of contract payments received dur8 ing the preceding fiscal year under subsection

9 (h) of this section for the commodity; and

10 (D) subtracting an amount equal to the

11 amount, if any, necessary during that fiscal

12 year to satisfy payment requirements for the

13 commodity under sections 103B, 105B, or

14 107B of the Agricultural Act of 1949 (as in ef15 fect prior to the amendment made by section

16 109(b)(2)) for the 1994 and 1995 crop years.

17 (4) SPECIAL ADJUSTMENT TO COVER EXISTING

18 RICE PAYMENT REQUIREMENTS.—As soon as pos19 sible after the date of the enactment of this Act, the

20 Secretary shall determine the amount, if any, nec21 essary to satisfy remaining payment requirements

22 under section 101B of the Agricultural Act of 1949

23 (as in effect prior to the amendment made by sec24 tion 109(b)(2)) for the 1994 and 1995 crops of rice.

25 The total amount determined under this paragraph
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1 shall be deducted, in equal amounts each fiscal year,

2 from the amount allocated for rice under paragraph

3 (2)(G) for fiscal years after the fiscal year in which

4 the final remaining payments are made for rice.

5 (f) DETERMINATION OF CONTRACT PAYMENTS.—

6 (1) INDIVIDUAL PAYMENT QUANTITY OF CON7 TRACT COMMODITIES.—For each contract, the pay8 ment quantity of a contract commodity for each fis9 cal year shall be equal to the product of—

10 (A) 85 percent of the contract acreage;

11 and

12 (B) the farm program payment yield.

13 (2) ANNUAL PAYMENT QUANTITY OF CONTRACT

14 COMMODITIES.—The payment quantity of each con15 tract commodity covered by all contracts for each

16 fiscal year shall equal the sum of the amounts cal17 culated under paragraph (1) for each individual con18 tract.

19 (3) ANNUAL PAYMENT RATE.—The payment

20 rate for a contract commodity for each fiscal year

21 shall be equal to—

22 (A) the amount made available under sub23 section (e) for the contract commodity for the

24 fiscal year; divided by
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1 (B) the amount determined under para2 graph (2) for the fiscal year.

3 (4) ANNUAL PAYMENT AMOUNT.—The amount

4 to be paid under a contract in effect for each fiscal

5 year with respect to a contract commodity shall be

6 equal to the product of—

7 (A) the payment quantity determined

8 under paragraph (1) with respect to the con9 tract; and

10 (B) the payment rate in effect under para11 graph (3).

12 (5) ASSIGNMENT OF CONTRACT PAYMENTS.—

13 The provisions of section 8(g) of the Soil Conserva14 tion and Domestic Allotment Act (16 U.S.C.

15 590h(g)) (relating to assignment of payments) shall

16 apply to contract payments under this subsection.

17 The owner or operator making the assignment, or

18 the assignee, shall provide the Secretary with notice,

19 in such manner as the Secretary may require in the

20 contract, of any assignment made under this para21 graph.

22 (6) SHARING OF CONTRACT PAYMENTS.—The

23 Secretary shall provide for the sharing of contract

24 payments among the owners and operators subject

25 to the contract on a fair and equitable basis.
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1 (g) PAYMENT LIMITATION.—Sections 1001 through

2 1001C of the Food Security Act of 1985 (7 U.S.C. 1308

3 through 1308–3), as amended by section 105, establish

4 payment limitations on the total amount of contract pay5 ments that may be made under contracts during any fis6 cal year.

7 (h) EFFECT OF VIOLATION.—

8 (1) TERMINATION OF CONTRACT.—Except as

9 provided in paragraph (2), if an owner or operator

10 subject to a contract violates a requirement of the

11 contract specified in subparagraphs (A), (B), (C), or

12 (D) of subsection (a)(1), the Secretary shall termi13 nate the contract with respect to the owner or opera14 tor on each farm in which the owner or operator has

15 an interest. On the termination, the owner or opera16 tor shall forfeit all rights to receive future contract

17 payments on each farm in which the owner or opera18 tor has an interest and shall refund to the Secretary

19 all contract payments received by the owner or oper20 ator during the period of the violation, together with

21 interest on the contract payments as determined by

22 the Secretary.

23 (2) REFUND OR ADJUSTMENT.—If the Sec24 retary determines that a violation does not warrant

25 termination of the contract under paragraph (1), the
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1 Secretary may require the owner or operator subject

2 to the contract—

3 (A) to refund to the Secretary that part of

4 the contract payments received by the owner or

5 operator during the period of the violation, to6 gether with interest on the contract payments

7 as determined by the Secretary; or

8 (B) to accept a reduction in the amount of

9 future contract payments that is proportionate

10 to the severity of the violation, as determined

11 by the Secretary.

12 (3) FORECLOSURE.—An owner or operator sub13 ject to a contract may not be required to make re14 payments to the Secretary of amounts received

15 under the contract if the contract acreage has been

16 foreclosed on and the Secretary determines that for17 giving the repayments is appropriate in order to pro18 vide fair and equitable treatment. This paragraph

19 shall not void the responsibilities of such an owner

20 or operator under the contract if the owner or opera21 tor continues or resumes operation, or control, of the

22 contract acreage. On the resumption of operation or

23 control over the contract acreage by the owner or

24 operator, the provisions of the contract in effect on

25 the date of the foreclosure shall apply.
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1 (4) REVIEW.—A determination of the Secretary

2 under this subsection shall be considered to be an

3 adverse decision for purposes of the availability of

4 administrative review of the determination.

5 (i) TRANSFER OF INTEREST IN LANDS SUBJECT TO

6 CONTRACT.—

7 (1) EFFECT OF TRANSFER.—Except as pro8 vided in paragraph (2), the transfer by an owner or

9 operator subject to a contract of the right and inter10 est of the owner or operator in the contract acreage

11 shall result in the termination of the contract with

12 respect to the acreage, effective on the date of the

13 transfer, unless the transferee of the acreage agrees

14 with the Secretary to assume all obligations of the

15 contract. At the request of the transferee, the Sec16 retary may modify the contract if the modifications

17 are consistent with the objectives of this section as

18 determined by the Secretary. The Secretary shall

19 carry out this paragraph in such a manner as to en20 sure that the reconstitution of a farm as part of the

21 transfer of contract acreage results in no additional

22 outlays under this section.

23 (2) EXCEPTION.—If an owner or operator who

24 is entitled to a contract payment dies, becomes in25 competent, or is otherwise unable to receive the con-
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1 tract payment, the Secretary shall make the pay2 ment, in accordance with regulations prescribed by

3 the Secretary.

4 (j) PLANTING FLEXIBILITY.—

5 (1) PERMITTED CROPS.—Subject to paragraph

6 (2), any commodity or crop may be planted on con7 tract acreage on a farm.

8 (2) LIMITATIONS.—

9 (A) HAYING AND GRAZING.—

10 (i) TIME LIMITATIONS.—Haying and

11 grazing on land exceeding 15 percent of

12 the contract acreage on a farm as provided

13 in clause (iii) shall be permitted, except

14 during any consecutive 5-month period be15 tween April 1 and October 31 that is de16 termined by the State committee estab17 lished under section 8(b) of the Soil Con18 servation and Domestic Allotment Act (6

19 U.S.C. 590h(b)) for a State. In the case of

20 a natural disaster, the Secretary may per21 mit unlimited haying and grazing on the

22 contract acreage of a farm.

23 (ii) CONTRACT COMMODITIES.—Con24 tract acreage planted to a contract com-
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1 modity for harvest may be hayed or grazed

2 at any time without limitation.

3 (iii) HAYING AND GRAZING LIMITA4 TION ON PORTION OR CONTRACT ACRE5 AGE.—Unlimited haying and grazing shall

6 be permitted on not more than 15 percent

7 of the contract acreage on a farm.

8 (B) ALFALFA.—Alfalfa may be grown on

9 contract acreage in excess of the acreage limita10 tion in subparagraph (A)(iii) and without re11 gard to the time limitation in subparagraph

12 (A)(i), except that each contract acre of alfalfa

13 on a farm that is harvested in excess of 15 per14 cent of the total contract acreage on the farm

15 shall be ineligible for contract payments.

16 (C) FRUITS AND VEGETABLES.—

17 (i) IN GENERAL.—The planting for

18 harvest of fruits and vegetables shall be

19 prohibited on contract acreage, except in

20 any region in which there is a history of

21 double-cropping, as determined by the Sec22 retary.

23 (ii) UNRESTRICTED VEGETABLES.—

24 Notwithstanding clause (i), lentils, mung

25 beans, and dry peas may be planted for
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1 harvest without limitation on contract

2 acreage.

3 SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS

4 AND LOAN DEFICIENCY PAYMENTS.

5 (a) AVAILABILITY OF MARKETING ASSISTANCE

6 LOANS.—

7 (1) NONRECOURSE LOANS AVAILABLE.—For

8 each of the 1996 through 2002 crops of each loan

9 commodity, the Secretary shall make available to

10 producers on a farm nonrecourse marketing assist11 ance loans for loan commodities produced on the

12 farm. The loans shall be made under terms and con13 ditions that are prescribed by the Secretary and at

14 the loan rate established under subsection (b) for

15 the loan commodity.

16 (2) ELIGIBLE PRODUCTION.—The following

17 production shall be eligible for a marketing assist18 ance loan under paragraph (1):

19 (A) In the case of a marketing assistance

20 loan for a contract commodity, any production

21 by a producer who has entered into a produc22 tion flexibility contract.

23 (B) In the case of a marketing assistance

24 loan for extra long staple cotton and oilseeds,

25 any production.
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1 (3) RECOURSE LOANS FOR HIGH MOISTURE

2 FEED GRAINS.—

3 (A) RECOURSE LOANS AVAILABLE.—For

4 each of the 1996 through 2002 crops of corn

5 and grain sorghum, the Secretary shall make

6 available recourse loans, as determined by the

7 Secretary, to producers on a farm who—

8 (i) normally harvest all or a portion of

9 their crop of corn or grain sorghum in a

10 high moisture state;

11 (ii) present—

12 (I) certified scale tickets from an

13 inspected, certified commercial scale,

14 including licensed warehouses,

15 feedlots, feed mills, distilleries, or

16 other similar entities approved by the

17 Secretary, pursuant to regulations is18 sued by the Secretary; or

19 (II) present field or other phys20 ical measurements of the standing or

21 stored crop in regions of the country,

22 as determined by the Secretary, that

23 do not have certified commercial

24 scales from which certified scale tick-
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1 ets may be obtained within reasonable

2 proximity of harvest operation;

3 (iii) certify that they were the owners

4 of the feed grain at the time of delivery to,

5 and that the quantity to be placed under

6 loan under this paragraph was in fact har7 vested on the farm and delivered to, a

8 feedlot, feed mill, or commercial or on9 farm high-moisture storage facility, or to

10 such facilities maintained by the users of

11 corn and grain sorghum in a high moisture

12 state; and

13 (iv) comply with deadlines established

14 by the Secretary for harvesting the corn or

15 grain sorghum and submit applications for

16 loans under this paragraph within dead17 lines established by the Secretary.

18 (B) ELIGIBILITY OF ACQUIRED FEED

19 GRAINS.—Loans under this paragraph shall be

20 made on a quantity of corn or grain sorghum

21 of the same crop acquired by the producer

22 equivalent to a quantity determined by mul23 tiplying—
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•HR 2854 PCS

1 (i) the acreage of the corn or grain

2 sorghum in a high moisture state har3 vested on the producer’s farm; by

4 (ii) the lower of the farm program

5 payment yield or the actual yield on a

6 field, as determined by the Secretary, that

7 is similar to the field from which the corn

8 or grain sorghum was obtained.

9 (C) HIGH MOISTURE STATE DEFINED.—In

10 this paragraph, the term ‘‘high moisture state’’

11 means corn or grain sorghum having a moisture

12 content in excess of Commodity Credit Corpora13 tion standards for marketing assistance loans

14 made by the Secretary under paragraph (1).

15 (b) LOAN RATES.—

16 (1) WHEAT.—

17 (A) LOAN RATE.—Subject to subparagraph

18 (B), the loan rate for a marketing assistance

19 loan under subsection (a)(1) for wheat shall

20 be—

21 (i) not less than 85 percent of the

22 simple average price received by producers

23 of wheat, as determined by the Secretary,

24 during the marketing years for the imme25 diately preceding 5 crops of wheat, exclud-
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•HR 2854 PCS

1 ing the year in which the average price was

2 the highest and the year in which the aver3 age price was the lowest in the period; but

4 (ii) not more than $2.58 per bushel.

5 (B) STOCKS TO USE RATIO ADJUST6 MENT.—If the Secretary estimates for any mar7 keting year that the ratio of ending stocks of

8 wheat to total use for the marketing year will

9 be—

10 (i) equal to or greater than 30 per11 cent, the Secretary may reduce the loan

12 rate for wheat for the corresponding crop

13 by an amount not to exceed 10 percent in

14 any year;

15 (ii) less than 30 percent but not less

16 than 15 percent, the Secretary may reduce

17 the loan rate for wheat for the correspond18 ing crop by an amount not to exceed 5 per19 cent in any year; or

20 (iii) less than 15 percent, the Sec21 retary may not reduce the loan rate for

22 wheat for the corresponding crop.

23 (C) NO EFFECT ON FUTURE YEARS.—Any

24 reduction in the loan rate for wheat under sub25 paragraph (B) shall not be considered in deter-
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•HR 2854 PCS

1 mining the loan rate for wheat for subsequent

2 years.

3 (2) FEED GRAINS.—

4 (A) LOAN RATE FOR CORN.—Subject to

5 subparagraph (B), the loan rate for a market6 ing assistance loan under subsection (a)(1) for

7 corn shall be—

8 (i) not less than 85 percent of the

9 simple average price received by producers

10 of corn, as determined by the Secretary,

11 during the marketing years for the imme12 diately preceding 5 crops of corn, excluding

13 the year in which the average price was the

14 highest and the year in which the average

15 price was the lowest in the period; but

16 (ii) not more than $1.89 per bushel.

17 (B) STOCKS TO USE RATIO ADJUST18 MENT.—If the Secretary estimates for any mar19 keting year that the ratio of ending stocks of

20 corn to total use for the marketing year will

21 be—

22 (i) equal to or greater than 25 per23 cent, the Secretary may reduce the loan

24 rate for corn for the corresponding crop by
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•HR 2854 PCS

1 an amount not to exceed 10 percent in any

2 year;

3 (ii) less than 25 percent but not less

4 than 12.5 percent, the Secretary may re5 duce the loan rate for corn for the cor6 responding crop by an amount not to ex7 ceed 5 percent in any year; or

8 (iii) less than 12.5 percent the Sec9 retary may not reduce the loan rate for

10 corn for the corresponding crop.

11 (C) NO EFFECT ON FUTURE YEARS.—Any

12 reduction in the loan rate for corn under sub13 paragraph (B) shall not be considered in deter14 mining the loan rate for corn for subsequent

15 years.

16 (D) OTHER FEED GRAINS.—The loan rate

17 for a marketing assistance loan under sub18 section (a)(1) for grain sorghum, barley, and

19 oats, respectively, shall be established at such

20 level as the Secretary determines is fair and

21 reasonable in relation to the rate that loans are

22 made available for corn, taking into consider23 ation the feeding value of the commodity in re24 lation to corn.

25 (3) UPLAND COTTON.—
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•HR 2854 PCS

1 (A) LOAN RATE.—Subject to subparagraph

2 (B), the loan rate for a marketing assistance

3 loan under subsection (a)(1) for upland cotton

4 shall be established by the Secretary at such

5 loan rate, per pound, as will reflect for the base

6 quality of upland cotton, as determined by the

7 Secretary, at average locations in the United

8 States a rate that is not less than the smaller

9 of—

10 (i) 85 percent of the average price

11 (weighted by market and month) of the

12 base quality of cotton as quoted in the des13 ignated United States spot markets during

14 3 years of the 5-year period ending July

15 31 in the year in which the loan rate is an16 nounced, excluding the year in which the

17 average price was the highest and the year

18 in which the average price was the lowest

19 in the period; or

20 (ii) 90 percent of the average, for the

21 15-week period beginning July 1 of the

22 year in which the loan rate is announced,

23 of the 5 lowest-priced growths of the

growths quoted for Middling 13 24 ⁄32-inch cot25 ton C.I.F. Northern Europe (adjusted
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•HR 2854 PCS

1 downward by the average difference during

2 the period April 15 through October 15 of

3 the year in which the loan is announced

4 between the average Northern European

5 price quotation of such quality of cotton

6 and the market quotations in the des7 ignated United States spot markets for the

8 base quality of upland cotton), as deter9 mined by the Secretary.

10 (B) LIMITATIONS.—The loan rate for a

11 marketing assistance loan for upland cotton

12 shall not be less than $0.50 per pound or more

13 than $0.5192 per pound.

14 (4) EXTRA LONG STAPLE COTTON.—The loan

15 rate for a marketing assistance loan under sub16 section (a)(1) for extra long staple cotton shall be—

17 (A) not less than 85 percent of the simple

18 average price received by producers of extra

19 long staple cotton, as determined by the Sec20 retary, during 3 years of the 5 previous market21 ing years, excluding the year in which the aver22 age price was the highest and the year in which

23 the average price was the lowest in the period;

24 but

25 (B) not more than $0.7965 per pound.
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•HR 2854 PCS

1 (5) RICE.—The loan rate for a marketing as2 sistance loan under subsection (a)(1) for rice shall

3 be $6.50 per hundredweight.

4 (6) OILSEEDS.—

5 (A) SOYBEANS.—The loan rate for a mar6 keting assistance loan under subsection (a)(1)

7 for soybeans shall be $4.92 per bushel.

8 (B) SUNFLOWER SEED, CANOLA,

9 RAPESEED, SAFFLOWER, MUSTARD SEED, AND

10 FLAXSEED.—The loan rates for a marketing as11 sistance loan under subsection (a)(1) for sun12 flower seed, canola, rapeseed, safflower, mus13 tard seed, and flaxseed, individually, shall be

14 $0.087 per pound.

15 (C) OTHER OILSEEDS.—The loan rates for

16 a marketing assistance loan under subsection

17 (a)(1) for other oilseeds shall be established at

18 such level as the Secretary determines is fair

19 and reasonable in relation to the loan rate

20 available for soybeans, except in no event shall

21 the rate for the oilseeds (other than cottonseed)

22 be less than the rate established for soybeans

23 on a per-pound basis for the same crop.

24 (c) TERM OF LOAN.—In the case of each loan com25 modity (other than upland cotton or extra long staple cot-
33

•HR 2854 PCS

1 ton), a marketing assistance loan under subsection (a)(1)

2 shall have a term of 9 months beginning on the first day

3 of the first month after the month in which the loan is

4 made. A marketing assistance loan for upland cotton or

5 extra long staple cotton shall have a term of 10 months

6 beginning on the first day of the first month after the

7 month in which the loan is made. The Secretary may not

8 extend the term of a marketing assistance loan for any

9 loan commodity.

10 (d) REPAYMENT.—

11 (1) REPAYMENT RATES GENERALLY.—The Sec12 retary shall permit producers to repay a marketing

13 assistance loan under subsection (a)(1) for a loan

14 commodity (other than extra long staple cotton) at

15 a level that is the lesser of—

16 (A) the loan rate established for the com17 modity under subsection (b); or

18 (B) the prevailing world market price for

19 the commodity (adjusted to United States qual20 ity and location), as determined by the Sec21 retary.

22 (2) ADDITIONAL REPAYMENT RATES FOR

23 WHEAT, FEED GRAINS, AND OILSEEDS.—In the case

24 of a marketing assistance loan under subsection

25 (a)(1) for wheat, corn, grain sorghum, barley, oats,
34

•HR 2854 PCS

1 or oilseeds, the Secretary shall also permit a pro2 ducer to repay the loan at such level as the Sec3 retary determines will—

4 (A) minimize potential loan forfeitures;

5 (B) minimize the accumulation of stocks of

6 the commodity by the Federal Government;

7 (C) minimize the cost incurred by the Fed8 eral Government in storing the commodity; and

9 (D) allow the commodity produced in the

10 United States to be marketed freely and com11 petitively, both domestically and internationally.

12 (3) REPAYMENT RATES FOR EXTRA LONG STA13 PLE COTTON.—Repayment of a marketing assistance

14 loan for extra long staple cotton shall be at the loan

15 rate established for the commodity under subsection

16 (b), plus interest (as determined by the Secretary).

17 (4) PREVAILING WORLD MARKET PRICE.—For

18 purposes of paragraph (1) and subsection (f), the

19 Secretary shall prescribe by regulation—

20 (A) a formula to determine the prevailing

21 world market price for each loan commodity,

22 adjusted to United States quality and location;

23 and
35

•HR 2854 PCS

1 (B) a mechanism by which the Secretary

2 shall announce periodically the prevailing world

3 market price for each loan commodity.

4 (5) ADJUSTMENT OF PREVAILING WORLD MAR5 KET PRICE FOR UPLAND COTTON.—

6 (A) IN GENERAL.—During the period end7 ing July 31, 2003, the prevailing world market

8 price for upland cotton (adjusted to United

9 States quality and location) established under

10 paragraph (4) shall be further adjusted if—

11 (i) the adjusted prevailing world mar12 ket price is less than 115 percent of the

13 loan rate for upland cotton established

14 under subsection (b), as determined by the

15 Secretary; and

16 (ii) the Friday through Thursday av17 erage price quotation for the lowest-priced

18 United States growth as quoted for Middling (M) 13 19 ⁄32-inch cotton delivered C.I.F.

20 Northern Europe is greater than the Fri21 day through Thursday average price of the

22 5 lowest-priced growths of upland cotton,

as quoted for Middling (M) 13 23 ⁄32-inch cot24 ton, delivered C.I.F. Northern Europe (re-
36

•HR 2854 PCS

1 ferred to in this subsection as the ‘‘North2 ern Europe price’’).

3 (B) FURTHER ADJUSTMENT.—Except as

4 provided in subparagraph (C), the adjusted pre5 vailing world market price for upland cotton

6 shall be further adjusted on the basis of some

7 or all of the following data, as available:

8 (i) The United States share of world

9 exports.

10 (ii) The current level of cotton export

11 sales and cotton export shipments.

12 (iii) Other data determined by the

13 Secretary to be relevant in establishing an

14 accurate prevailing world market price for

15 upland cotton (adjusted to United States

16 quality and location).

17 (C) LIMITATION ON FURTHER ADJUST18 MENT.—The adjustment under subparagraph

19 (B) may not exceed the difference between—

20 (i) the Friday through Thursday aver21 age price for the lowest-priced United

22 States growth as quoted for Middling

13 23 ⁄32-inch cotton delivered C.I.F. Northern

24 Europe; and

25 (ii) the Northern Europe price.
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•HR 2854 PCS

1 (e) LOAN DEFICIENCY PAYMENTS.—

2 (1) AVAILABILITY.—Except as provided in

3 paragraph (4), the Secretary may make loan defi4 ciency payments available to producers who, al5 though eligible to obtain a marketing assistance loan

6 under subsection (a)(1) with respect to a loan com7 modity, agree to forgo obtaining the loan for the

8 commodity in return for payments under this sub9 section.

10 (2) COMPUTATION.—A loan deficiency payment

11 under this subsection shall be computed by multiply12 ing—

13 (A) the loan payment rate determined

14 under paragraph (3) for the loan commodity; by

15 (B) the quantity of the loan commodity

16 that the producers on a farm are eligible to

17 place under loan but for which the producers

18 forgo obtaining the loan in return for payments

19 under this subsection.

20 (3) LOAN PAYMENT RATE.—For purposes of

21 this subsection, the loan payment rate shall be the

22 amount by which—

23 (A) the loan rate established under sub24 section (b) for the loan commodity; exceeds
38

•HR 2854 PCS

1 (B) the rate at which a loan for the com2 modity may be repaid under subsection (d).

3 (4) EXCEPTION FOR EXTRA LONG STAPLE COT4 TON.—This subsection shall not apply with respect

5 to extra long staple cotton.

6 (f) SPECIAL MARKETING LOAN PROVISIONS FOR UP7 LAND COTTON.—

8 (1) COTTON USER MARKETING CERTIFI9 CATES.—

10 (A) ISSUANCE.—Subject to subparagraph

11 (D), during the period ending July 31, 2003,

12 the Secretary shall issue marketing certificates

13 or cash payments to domestic users and export14 ers for documented purchases by domestic users

15 and sales for export by exporters made in the

16 week following a consecutive 4-week period in

17 which—

18 (i) the Friday through Thursday aver19 age price quotation for the lowest-priced

20 United States growth, as quoted for Middling (M) 13 21 ⁄32-inch cotton, delivered

22 C.I.F. Northern Europe exceeds the

23 Northern Europe price by more than 1.25

24 cents per pound; and
39

•HR 2854 PCS

1 (ii) the prevailing world market price

2 for upland cotton (adjusted to United

3 States quality and location) does not ex4 ceed 130 percent of the loan rate for up5 land cotton established under subsection

6 (b).

7 (B) VALUE OF CERTIFICATES OR PAY8 MENTS.—The value of the marketing certifi9 cates or cash payments shall be based on the

10 amount of the difference (reduced by 1.25 cents

11 per pound) in the prices during the 4th week of

12 the consecutive 4-week period multiplied by the

13 quantity of upland cotton included in the docu14 mented sales.

15 (C) REDEMPTION, MARKETING, OR EX16 CHANGE.—The Secretary shall establish proce17 dures to assist persons receiving marketing cer18 tificates under this paragraph in the redemp19 tion of certificates for cash, or in the marketing

20 or exchange of certificates for agricultural com21 modities owned by the Commodity Credit Cor22 poration, in such manner and at such price lev23 els as the Secretary determines will best effec24 tuate the purposes of the marketing certificates.

25 Any price restrictions that may otherwise apply
40

•HR 2854 PCS

1 to the disposition of agricultural commodities

2 by the Commodity Credit Corporation shall not

3 apply to the redemption of certificates under

4 this paragraph.

5 (D) EXCEPTION.—The Secretary shall not

6 issue marketing certificates or cash payments

7 under subparagraph (A) if, for the immediately

8 preceding consecutive 10-week period, the Fri9 day through Thursday average price quotation

10 for the lowest priced United States growth, as

quoted for Middling (M) 13 11 ⁄32-inch cotton, deliv12 ered C.I.F. Northern Europe, adjusted for the

13 value of any certificate issued under this para14 graph, exceeds the Northern Europe price by

15 more than 1.25 cents per pound.

16 (E) LIMITATION ON EXPENDITURES.—

17 Total expenditures under this paragraph shall

18 not exceed $701,000,000 during fiscal years

19 1996 through 2002.

20 (2) SPECIAL IMPORT QUOTA.—

21 (A) ESTABLISHMENT.—The President

22 shall carry out an import quota program that

23 provides that, during the period ending July 31,

24 2003, whenever the Secretary determines and

25 announces that for any consecutive 10-week pe-
41

•HR 2854 PCS

1 riod, the Friday through Thursday average

2 price quotation for the lowest-priced United

3 States growth, as quoted for Middling (M)

13 4 ⁄32-inch cotton, delivered C.I.F. Northern Eu5 rope, adjusted for the value of any certificates

6 issued under paragraph (1), exceeds the North7 ern Europe price by more than 1.25 cents per

8 pound, there shall immediately be in effect a

9 special import quota.

10 (B) QUANTITY.—The quota shall be equal

11 to 1 week’s consumption of upland cotton by

12 domestic mills at the seasonally adjusted aver13 age rate of the most recent 3 months for which

14 data are available.

15 (C) APPLICATION.—The quota shall apply

16 to upland cotton purchased not later than 90

17 days after the date of the Secretary’s announce18 ment under subparagraph (A) and entered into

19 the United States not later than 180 days after

20 the date.

21 (D) OVERLAP.—A special quota period

22 may be established that overlaps any existing

23 quota period if required by subparagraph (A),

24 except that a special quota period may not be
42

•HR 2854 PCS

1 established under this paragraph if a quota pe2 riod has been established under subsection (g).

3 (E) PREFERENTIAL TARIFF TREAT4 MENT.—The quantity under a special import

5 quota shall be considered to be an in-quota

6 quantity for purposes of—

7 (i) section 213(d) of the Caribbean

8 Basin Economic Recovery Act (19 U.S.C.

9 2703(d));

10 (ii) section 204 of the Andean Trade

11 Preference Act (19 U.S.C. 3203);

12 (iii) section 503(d) of the Trade Act

13 of 1974 (19 U.S.C. 2463(d)); and

14 (iv) General Note 3(a)(iv) to the Har15 monized Tariff Schedule.

16 (F) DEFINITION.—In this paragraph, the

17 term ‘‘special import quota’’ means a quantity

18 of imports that is not subject to the over-quota

19 tariff rate of a tariff-rate quota.

20 (g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND

21 COTTON.—

22 (1) IN GENERAL.—The President shall carry

23 out an import quota program that provides that

24 whenever the Secretary determines and announces

25 that the average price of the base quality of upland
43

•HR 2854 PCS

1 cotton, as determined by the Secretary, in the des2 ignated spot markets for a month exceeded 130 per3 cent of the average price of such quality of cotton

4 in the markets for the preceding 36 months, not5 withstanding any other provision of law, there shall

6 immediately be in effect a limited global import

7 quota subject to the following conditions:

8 (A) QUANTITY.—The quantity of the quota

9 shall be equal to 21 days of domestic mill con10 sumption of upland cotton at the seasonally ad11 justed average rate of the most recent 3 months

12 for which data are available.

13 (B) QUANTITY IF PRIOR QUOTA.—If a

14 quota has been established under this sub15 section during the preceding 12 months, the

16 quantity of the quota next established under

17 this subsection shall be the smaller of 21 days

18 of domestic mill consumption calculated under

19 subparagraph (A) or the quantity required to

20 increase the supply to 130 percent of the de21 mand.

22 (C) PREFERENTIAL TARIFF TREAT23 MENT.—The quantity under a limited global

24 import quota shall be considered to be an in25 quota quantity for purposes of—
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•HR 2854 PCS

1 (i) section 213(d) of the Caribbean

2 Basin Economic Recovery Act (19 U.S.C.

3 2703(d));

4 (ii) section 204 of the Andean Trade

5 Preference Act (19 U.S.C. 3203);

6 (iii) section 503(d) of the Trade Act

7 of 1974 (19 U.S.C. 2463(d)); and

8 (iv) General Note 3(a)(iv) to the Har9 monized Tariff Schedule.

10 (D) DEFINITIONS.—In this subsection:

11 (i) SUPPLY.—The term ‘‘supply’’

12 means, using the latest official data of the

13 Bureau of the Census, the Department of

14 Agriculture, and the Department of the

15 Treasury—

16 (I) the carry-over of upland cot17 ton at the beginning of the marketing

18 year (adjusted to 480-pound bales) in

19 which the quota is established;

20 (II) production of the current

21 crop; and

22 (III) imports to the latest date

23 available during the marketing year.

24 (ii) DEMAND.—The term ‘‘demand’’

25 means—
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•HR 2854 PCS

1 (I) the average seasonally ad2 justed annual rate of domestic mill

3 consumption in the most recent 3

4 months for which data are available;

5 and

6 (II) the larger of—

7 (aa) average exports of up8 land cotton during the preceding

9 6 marketing years; or

10 (bb) cumulative exports of

11 upland cotton plus outstanding

12 export sales for the marketing

13 year in which the quota is estab14 lished.

15 (iii) LIMITED GLOBAL IMPORT

16 QUOTA.—The term ‘‘limited global import

17 quota’’ means a quantity of imports that is

18 not subject to the over-quota tariff rate of

19 a tariff-rate quota.

20 (E) QUOTA ENTRY PERIOD.—When a

21 quota is established under this subsection, cot22 ton may be entered under the quota during the

23 90-day period beginning on the date the quota

24 is established by the Secretary.
46

•HR 2854 PCS

1 (2) NO OVERLAP.—Notwithstanding paragraph

2 (1), a quota period may not be established that over3 laps an existing quota period or a special quota pe4 riod established under subsection (f)(2).

5 (h) SOURCE OF LOANS.—

6 (1) IN GENERAL.—The Secretary shall provide

7 the loans authorized by this section and the Agricul8 tural Adjustment Act of 1938 (7 U.S.C. 1281 et

9 seq.) through the Commodity Credit Corporation

10 and other means available to the Secretary.

11 (2) PROCESSORS.—Whenever any loan or sur12 plus removal operation for any agricultural commod13 ity is carried out through purchases from or loans

14 or payments to processors, the Secretary shall, to

15 the extent practicable, obtain from the processors

16 such assurances as the Secretary considers adequate

17 that the producers of the commodity have received

18 or will receive maximum benefits from the loan or

19 surplus removal operation.

20 (i) ADJUSTMENTS OF LOANS.—

21 (1) IN GENERAL.—The Secretary may make

22 appropriate adjustments in the loan levels for any

23 commodity for differences in grade, type, quality, lo24 cation, and other factors.
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•HR 2854 PCS

1 (2) LOAN LEVEL.—The adjustments shall, to

2 the maximum extent practicable, be made in such

3 manner that the average loan level for the commod4 ity will, on the basis of the anticipated incidence of

5 the factors, be equal to the level of support deter6 mined as provided in this section or the Agricultural

7 Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).

8 (j) PERSONAL LIABILITY OF PRODUCERS FOR DEFI9 CIENCIES.—

10 (1) IN GENERAL.—Except as provided in para11 graph (2), no producer shall be personally liable for

12 any deficiency arising from the sale of the collateral

13 securing any nonrecourse loan made under this sec14 tion or the Agricultural Adjustment Act of 1938 (7

15 U.S.C. 1281 et seq.) unless the loan was obtained

16 through a fraudulent representation by the producer.

17 (2) LIMITATIONS.—Paragraph (1) shall not

18 prevent the Commodity Credit Corporation or the

19 Secretary from requiring a producer to assume li20 ability for—

21 (A) a deficiency in the grade, quality, or

22 quantity of a commodity stored on a farm or

23 delivered by the producer;

24 (B) a failure to properly care for and pre25 serve a commodity; or
48

•HR 2854 PCS

1 (C) a failure or refusal to deliver a com2 modity in accordance with a program estab3 lished under this section or the Agricultural Ad4 justment Act of 1938.

5 (3) ACQUISITION OF COLLATERAL.—The Sec6 retary may include in a contract for a nonrecourse

7 loan made under this section or the Agricultural Ad8 justment Act of 1938 a provision that permits the

9 Commodity Credit Corporation, on and after the ma10 turity of the loan, to acquire title to the unredeemed

11 collateral without obligation to pay for any market

12 value that the collateral may have in excess of the

13 loan indebtedness.

14 (4) SUGARCANE AND SUGAR BEETS.—A secu15 rity interest obtained by the Commodity Credit Cor16 poration as a result of the execution of a security

17 agreement by the processor of sugarcane or sugar

18 beets shall be superior to all statutory and common

19 law liens on raw cane sugar and refined beet sugar

20 in favor of the producers of sugarcane and sugar

21 beets and all prior recorded and unrecorded liens on

22 the crops of sugarcane and sugar beets from which

23 the sugar was derived.

24 (k) COMMODITY CREDIT CORPORATION SALES PRICE

25 RESTRICTIONS.—
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•HR 2854 PCS

1 (1) IN GENERAL.—The Commodity Credit Cor2 poration may sell any commodity owned or con3 trolled by the Corporation at any price that the Sec4 retary determines will maximize returns to the Cor5 poration.

6 (2) NONAPPLICATION OF SALES PRICE RE7 STRICTIONS.—Paragraph (1) shall not apply to—

8 (A) a sale for a new or byproduct use;

9 (B) a sale of peanuts or oilseeds for the ex10 traction of oil;

11 (C) a sale for seed or feed if the sale will

12 not substantially impair any loan program;

13 (D) a sale of a commodity that has sub14 stantially deteriorated in quality or as to which

15 there is a danger of loss or waste through dete16 rioration or spoilage;

17 (E) a sale for the purpose of establishing

18 a claim arising out of a contract or against a

19 person who has committed fraud, misrepresen20 tation, or other wrongful act with respect to the

21 commodity;

22 (F) a sale for export, as determined by the

23 Corporation; and

24 (G) a sale for other than a primary use.

25 (3) PRESIDENTIAL DISASTER AREAS.—
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•HR 2854 PCS

1 (A) IN GENERAL.—Notwithstanding para2 graph (1), on such terms and conditions as the

3 Secretary may consider in the public interest,

4 the Corporation may make available any com5 modity or product owned or controlled by the

6 Corporation for use in relieving distress—

7 (i) in any area in the United States

8 (including the Virgin Islands) declared by

9 the President to be an acute distress area

10 because of unemployment or other eco11 nomic cause, if the President finds that the

12 use will not displace or interfere with nor13 mal marketing of agricultural commodities;

14 and

15 (ii) in connection with any major dis16 aster determined by the President to war17 rant assistance by the Federal Government

18 under the Robert T. Stafford Disaster Re19 lief and Emergency Assistance Act (42

20 U.S.C. 5121 et seq.).

21 (B) COSTS.—Except on a reimbursable

22 basis, the Corporation shall not bear any costs

23 in connection with making a commodity avail24 able under subparagraph (A) beyond the cost of

25 the commodity to the Corporation incurred in—
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•HR 2854 PCS

1 (i) the storage of the commodity; and

2 (ii) the handling and transportation

3 costs in making delivery of the commodity

4 to designated agencies at 1 or more central

5 locations in each State or other area.

6 (4) EFFICIENT OPERATIONS.—Paragraph (1)

7 shall not apply to the sale of a commodity the dis8 position of which is desirable in the interest of the

9 effective and efficient conduct of the operations of

10 the Corporation because of the small quantity of the

11 commodity involved, or because of the age, location,

12 or questionable continued storability of the commod13 ity.

14 SEC. 105. PAYMENT LIMITATIONS.

15 (a) IN GENERAL.—Section 1001 of the Food Security

16 Act of 1985 (7 U.S.C. 1308) is amended by striking para17 graphs (1) through (4) and inserting the following:

18 ‘‘(1) LIMITATION ON PAYMENTS UNDER PRO19 DUCTION FLEXIBILITY CONTRACTS.—The total

20 amount of contract payments made under section

21 103 of the Agricultural Market Transition Act to a

22 person under 1 or more production flexibility con23 tracts entered into under the section during any fis24 cal year may not exceed $40,000.
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•HR 2854 PCS

1 ‘‘(2) LIMITATION ON MARKETING LOAN GAINS

2 AND LOAN DEFICIENCY PAYMENTS.—For each of the

3 1996 through 2002 crops of loan commodities, the

4 total amount of payments specified in paragraph (3)

5 that a person shall be entitled to receive under sec6 tion 104 of the Agricultural Market Transition Act

7 for one or more loan commodities may not exceed

8 $75,000.

9 ‘‘(3) DESCRIPTION OF PAYMENTS SUBJECT TO

10 LIMITATION.—The payments referred to in para11 graph (2) are the following:

12 ‘‘(A) Any gain realized by a producer from

13 repaying a marketing assistance loan for a crop

14 of any loan commodity at a lower level than the

15 original loan rate established for the loan com16 modity under section 104(b) of the Agricultural

17 Market Transition Act.

18 ‘‘(B) Any loan deficiency payment received

19 for a loan commodity under section 104(e) of

20 the Act.

21 ‘‘(4) DEFINITIONS.—In this title, the terms

22 ‘contract payment’ and ‘loan commodity’ have the

23 meaning given those terms in section 102 of the Ag24 ricultural Market Transition Act.’’.

25 (b) CONFORMING AMENDMENTS.—
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•HR 2854 PCS

1 (1) Section 1001A of the Food Security Act of

2 1985 (7 U.S.C. 1308–1) is amended—

3 (A) in subsection (a)(1), by striking

4 ‘‘under the Agricultural Act of 1949 (7 U.S.C.

5 1421 et seq.)’’; and

6 (B) in subsection (b)(1), by striking

7 ‘‘under the Agricultural Act of 1949’’.

8 (2) Section 1001C(a) of the Act (7 U.S.C.

9 1308–3(a)) is amended—

10 (A) by striking ‘‘For each of the 1991

11 through 1997 crops, any’’ and inserting ‘‘Any’’;

12 (B) by striking ‘‘production adjustment

13 payments, price support program loans, pay14 ments, or benefits made available under the Ag15 ricultural Act of 1949 (7 U.S.C. 1421 et seq.),’’

16 and inserting ‘‘loans or payments made avail17 able under title I of the Agricultural Market

18 Transition Act,’’; and

19 (C) by striking ‘‘during the 1989 through

20 1997 crop years’’.

21 SEC. 106. PEANUT PROGRAM.

22 (a) QUOTA PEANUTS.—

23 (1) AVAILABILITY OF LOANS.—The Secretary

24 shall make nonrecourse loans available to producers

25 of quota peanuts.
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•HR 2854 PCS

1 (2) LOAN RATE.—The national average quota

2 loan rate for quota peanuts shall be $610 per ton.

3 (3) INSPECTION, HANDLING, OR STORAGE.—

4 The loan amount may not be reduced by the Sec5 retary by any deductions for inspection, handling, or

6 storage.

7 (4) LOCATION AND OTHER FACTORS.—The Sec8 retary may make adjustments in the loan rate for

9 quota peanuts for location of peanuts and such other

10 factors as are authorized by section 104(i)(1).

11 (5) OFFERS FROM HANDLERS.—In the case of

12 any producer who had an offer available from a han13 dler to purchase quota peanuts, for delivery within

14 the same county or a contiguous county, at a price

15 equal to or greater than the applicable quota sup16 port rate, the Secretary shall reduce the support

17 rate by 5 percent for the peanuts that were subject

18 to the offer.

19 (b) ADDITIONAL PEANUTS.—

20 (1) IN GENERAL.—The Secretary shall make

21 nonrecourse loans available to producers of addi22 tional peanuts at such rates as the Secretary finds

23 appropriate, taking into consideration the demand

24 for peanut oil and peanut meal, expected prices of
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•HR 2854 PCS

1 other vegetable oils and protein meals, and the de2 mand for peanuts in foreign markets.

3 (2) ANNOUNCEMENT.—The Secretary shall an4 nounce the loan rate for additional peanuts of each

5 crop not later than February 15 preceding the mar6 keting year for the crop for which the loan rate is

7 being determined.

8 (c) AREA MARKETING ASSOCIATIONS.—

9 (1) WAREHOUSE STORAGE LOANS.—

10 (A) IN GENERAL.—In carrying out sub11 sections (a) and (b), the Secretary shall make

12 warehouse storage loans available in each of the

13 producing areas (described in section 1446.95

14 of title 7 of the Code of Federal Regulations

15 (January 1, 1989)) to a designated area mar16 keting association of peanut producers that is

17 selected and approved by the Secretary and

18 that is operated primarily for the purpose of

19 conducting the loan activities. The Secretary

20 may not make warehouse storage loans avail21 able to any cooperative that is engaged in oper22 ations or activities concerning peanuts other

23 than those operations and activities specified in

24 this section and section 358e of the Agricultural

25 Adjustment Act of 1938 (7 U.S.C. 1359a).
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•HR 2854 PCS

1 (B) ADMINISTRATIVE AND SUPERVISORY

2 ACTIVITIES.—An area marketing association

3 shall be used in administrative and supervisory

4 activities relating to loans and marketing activi5 ties under this section and section 358e of the

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

7 1359a).

8 (C) ASSOCIATION COSTS.—Loans made to

9 the association under this paragraph shall in10 clude such costs as the area marketing associa11 tion reasonably may incur in carrying out the

12 responsibilities, operations, and activities of the

13 association under this section and section 358e

14 of the Agricultural Adjustment Act of 1938 (7

15 U.S.C. 1359a).

16 (2) POOLS FOR QUOTA AND ADDITIONAL PEA17 NUTS.—

18 (A) IN GENERAL.—The Secretary shall re19 quire that each area marketing association es20 tablish pools and maintain complete and accu21 rate records by area and segregation for quota

22 peanuts handled under loan and for additional

23 peanuts placed under loan, except that separate

24 pools shall be established for Valencia peanuts

25 produced in New Mexico. Bright hull and dark
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•HR 2854 PCS

1 hull Valencia peanuts shall be considered as

2 separate types for the purpose of establishing

3 the pools.

4 (B) NET GAINS.—Net gains on peanuts in

5 each pool, unless otherwise approved by the

6 Secretary, shall be distributed only to producers

7 who placed peanuts in the pool and shall be dis8 tributed in proportion to the value of the pea9 nuts placed in the pool by each producer. Net

10 gains for peanuts in each pool shall consist of

11 the following:

12 (i) QUOTA PEANUTS.—For quota pea13 nuts, the net gains over and above the loan

14 indebtedness and other costs or losses in15 curred on peanuts placed in the pool.

16 (ii) ADDITIONAL PEANUTS.—For ad17 ditional peanuts, the net gains over and

18 above the loan indebtedness and other

19 costs or losses incurred on peanuts placed

20 in the pool for additional peanuts.

21 (d) LOSSES.—Losses in quota area pools shall be cov22 ered using the following sources in the following order of

23 priority:

24 (1) TRANSFERS FROM ADDITIONAL LOAN

25 POOLS.—The proceeds due any producer from any
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•HR 2854 PCS

1 pool shall be reduced by the amount of any loss that

2 is incurred with respect to peanuts transferred from

3 an additional loan pool to a quota loan pool by the

4 producer under section 358–1(b)(8) of the Agricul5 tural Adjustment Act of 1938 (7 U.S.C. 1358–

6 1(b)(8)).

7 (2) OTHER PRODUCERS IN SAME POOL.—Fur8 ther losses in an area quota pool shall be offset by

9 reducing the gain of any producer in the pool by the

10 amount of pool gains attributed to the same pro11 ducer from the sale of additional peanuts for domes12 tic and export edible use.

13 (3) BUY-BACK GAINS WITHIN AREA.—Further

14 losses in an area quota pool shall be offset by gains

15 or profits attributable to sales of additional peanuts

16 in that area pursuant to the provisions of section

17 358e(g)(1)(A) of the Agricultural Adjustment Act of

18 1938 (7 U.S.C. 1359a(g)(1)(A)).

19 (4) USE OF MARKETING ASSESSMENTS.—The

20 Secretary shall use funds collected under subsection

21 (g) (except funds attributable to handlers) to offset

22 further losses in area quota pools. The Secretary

23 shall transfer to the Treasury those funds collected

24 under subsection (g) and available for use under this
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•HR 2854 PCS

1 subsection that the Secretary determines are not re2 quired to cover losses in area quota pools.

3 (5) CROSS COMPLIANCE.—Further losses in

4 area quota pools, other than losses incurred as a re5 sult of transfers from additional loan pools to quota

6 loan pools under section 358–1(b)(8) of the Agricul7 tural Adjustment Act of 1938 (7 U.S.C. 1358–

8 1(b)(8)), shall be offset by any gains or profits from

9 quota pools in other production areas (other than

10 separate type pools established under subsection

11 (c)(2)(A) for Valencia peanuts produced in New

12 Mexico) in such manner as the Secretary shall by

13 regulation prescribe. If losses in area quota pools

14 have not been entirely offset through use of the pre15 ceding sentence, then further losses shall be offset

16 by gains or profits attributable to sales of additional

17 peanuts in other areas pursuant to section

18 358e(g)(1)(A) of such Act (7 U.S.C.

19 1359a(g)(1)(A)).

20 (6) INCREASED ASSESSMENTS.—If use of the

21 authorities provided in the preceding paragraphs is

22 not sufficient to cover losses in an area quota pool,

23 the Secretary shall increase the marketing assess24 ment established under subsection (g) by such an

25 amount as the Secretary considers necessary to
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•HR 2854 PCS

1 cover the losses. The increased assessment shall

2 apply only to quota peanuts covered by that pool.

3 Amounts collected under subsection (g) as a result

4 of the increased assessment shall be retained by the

5 Secretary to cover losses in that pool.

6 (e) DISAPPROVAL OF QUOTAS.—Notwithstanding

7 any other provision of law, no loan for quota peanuts may

8 be made available by the Secretary for any crop of peanuts

9 with respect to which poundage quotas have been dis10 approved by producers, as provided for in section 358–

11 1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C.

12 1358–1(d)).

13 (f) QUALITY IMPROVEMENT.—

14 (1) IN GENERAL.—With respect to peanuts

15 under loan, the Secretary shall—

16 (A) promote the crushing of peanuts at a

17 greater risk of deterioration before peanuts of a

18 lesser risk of deterioration;

19 (B) ensure that all Commodity Credit Cor20 poration inventories of peanuts sold for domes21 tic edible use must be shown to have been offi22 cially inspected by licensed Department inspec23 tors both as farmer stock and shelled or cleaned

24 in-shell peanuts;
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•HR 2854 PCS

1 (C) continue to endeavor to operate the

2 peanut program so as to improve the quality of

3 domestic peanuts and ensure the coordination

4 of activities under the Peanut Administrative

5 Committee established under Marketing Agree6 ment No. 146, regulating the quality of domes7 tically produced peanuts (under the Agricul8 tural Adjustment Act (7 U.S.C. 601 et seq.),

9 reenacted with amendments by the Agricultural

10 Marketing Agreement Act of 1937); and

11 (D) ensure that any changes made in the

12 peanut program as a result of this subsection

13 requiring additional production or handling at

14 the farm level shall be reflected as an upward

15 adjustment in the Department loan schedule.

16 (2) EXPORTS AND OTHER PEANUTS.—The Sec17 retary shall require that all peanuts in the domestic

18 and export markets fully comply with all quality

19 standards under Marketing Agreement No. 146.

20 (g) MARKETING ASSESSMENT.—

21 (1) IN GENERAL.—The Secretary shall provide

22 for a nonrefundable marketing assessment. The as23 sessment shall be made on a per pound basis in an

24 amount equal to 1.1 percent for each of the 1994

25 and 1995 crops, 1.15 percent for the 1996 crop, and
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•HR 2854 PCS

1 1.2 percent for each of the 1997 through 2002

2 crops, of the national average quota or additional

3 peanut loan rate for the applicable crop.

4 (2) FIRST PURCHASERS.—

5 (A) IN GENERAL.—Except as provided

6 under paragraphs (3) and (4), the first pur7 chaser of peanuts shall—

8 (i) collect from the producer a mar9 keting assessment equal to the quantity of

10 peanuts acquired multiplied by—

11 (I) in the case of each of the

12 1994 and 1995 crops, .55 percent of

13 the applicable national average loan

14 rate;

15 (II) in the case of the 1996 crop,

16 .6 percent of the applicable national

17 average loan rate; and

18 (III) in the case of each of the

19 1997 through 2002 crops, .65 percent

20 of the applicable national average loan

21 rate;

22 (ii) pay, in addition to the amount col23 lected under clause (i), a marketing assess24 ment in an amount equal to the quantity

25 of peanuts acquired multiplied by .55 per-
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•HR 2854 PCS

1 cent of the applicable national average loan

2 rate; and

3 (iii) remit the amounts required under

4 clauses (i) and (ii) to the Commodity Cred5 it Corporation in a manner specified by the

6 Secretary.

7 (B) DEFINITION OF FIRST PURCHASER.—

8 In this subsection, the term ‘‘first purchaser’’

9 means a person acquiring peanuts from a pro10 ducer except that in the case of peanuts for11 feited by a producer to the Commodity Credit

12 Corporation, the term means the person acquir13 ing the peanuts from the Commodity Credit

14 Corporation.

15 (3) OTHER PRIVATE MARKETINGS.—In the case

16 of a private marketing by a producer directly to a

17 consumer through a retail or wholesale outlet or in

18 the case of a marketing by the producer outside of

19 the continental United States, the producer shall be

20 responsible for the full amount of the assessment

21 and shall remit the assessment by such time as is

22 specified by the Secretary.

23 (4) LOAN PEANUTS.—In the case of peanuts

24 that are pledged as collateral for a loan made under

25 this section, the grower portion of the assessment
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•HR 2854 PCS

1 shall be deducted from the proceeds of the loan. The

2 remainder of the assessment shall be paid by the

3 first purchaser of the peanuts. For purposes of com4 puting net gains on peanuts under this section, the

5 reduction in loan proceeds shall be treated as having

6 been paid to the producer.

7 (5) PENALTIES.—If any person fails to collect

8 or remit the reduction required by this subsection or

9 fails to comply with the requirements for record10 keeping or otherwise as are required by the Sec11 retary to carry out this subsection, the person shall

12 be liable to the Secretary for a civil penalty up to

13 an amount determined by multiplying—

14 (A) the quantity of peanuts involved in the

15 violation; by

16 (B) the national average quota peanut rate

17 for the applicable crop year.

18 (6) ENFORCEMENT.—The Secretary may en19 force this subsection in the courts of the United

20 States.

21 (h) CROPS.—Subsections (a) through (f) shall be ef22 fective only for the 1996 through 2002 crops of peanuts.

23 (i) POUNDAGE QUOTAS.—
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•HR 2854 PCS

1 (1) IN GENERAL.—Part VI of subtitle B of title

2 III of the Agricultural Adjustment Act of 1938 is

3 amended—

4 (A) in section 358–1 (7 U.S.C. 1358–1)—

5 (i) in the section heading, by striking

6 ‘‘1991 THROUGH 1997 CROPS OF’’;

7 (ii) in subsections (a)(1), (b)(1)(B),

8 (b)(2)(A), (b)(2)(C), and (b)(3)(A), by

9 striking ‘‘of the 1991 through 1997 mar10 keting years’’ each place it appears and in11 serting ‘‘marketing year’’;

12 (iii) in subsection (a)(3), by striking

13 ‘‘1990’’ and inserting ‘‘1990, for the 1991

14 through 1995 marketing years, and 1995,

15 for the 1996 through 2002 marketing

16 years’’;

17 (iv) in subsection (b)(1)(A)—

18 (I) by striking ‘‘each of the 1991

19 through 1997 marketing years’’ and

20 inserting ‘‘each marketing year’’; and

21 (II) in clause (i), by inserting be22 fore the semicolon the following: ‘‘, in

23 the case of the 1991 through 1995

24 marketing years, and the 1995 mar-
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•HR 2854 PCS

1 keting year, in the case of the 1996

2 through 2002 marketing years’’; and

3 (v) in subsection (f), by striking

4 ‘‘1997’’ and inserting ‘‘2002’’;

5 (B) in section 358b (7 U.S.C. 1358b)—

6 (i) in the section heading, by striking

7 ‘‘1991 THROUGH 1995 CROPS OF’’; and

8 (ii) in subsection (c), by striking

9 ‘‘1995’’ and inserting ‘‘2002’’;

10 (C) in section 358c(d) (7 U.S.C.

11 1358c(d)), by striking ‘‘1995’’ and inserting

12 ‘‘2002’’; and

13 (D) in section 358e (7 U.S.C. 1359a)—

14 (i) in the section heading, by striking

15 ‘‘FOR 1991 THROUGH 1997 CROPS OF

16 PEANUTS’’; and

17 (ii) in subsection (i), by striking

18 ‘‘1997’’ and inserting ‘‘2002’’.

19 (2) ELIGIBILITY FOR FARM POUNDAGE

20 QUOTA.—

21 (A) CERTAIN FARMS INELIGIBLE.—Section

22 358–1(b)(1) of the Act (7 U.S.C. 1358–1(b)(1))

23 is amended by adding at the end the following:

24 ‘‘(D) CERTAIN FARMS INELIGIBLE TO

25 HOLD QUOTA.—Effective beginning with the
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•HR 2854 PCS

1 1997 marketing year, the Secretary shall no

2 longer establish farm poundage quotas under

3 subparagraph (A) for farms—

4 ‘‘(i) owned or controlled by munici5 palities, airport authorities, schools, col6 leges, refuges, and other public entities

7 (not including universities for research

8 purposes); or

9 ‘‘(ii) owned or controlled by a person

10 who is not a producer and resides in an11 other State.’’.

12 (B) ALLOCATION OF QUOTA TO OTHER

13 FARMS.—Section 358–1(b)(2) of the Act (7

14 U.S.C. 1358–1(b)(2)) is amended by adding at

15 the end the following:

16 ‘‘(E) TRANSFER OF QUOTA FROM INELI17 GIBLE FARMS.—Any farm poundage quota held

18 on or after January 1, 1997, by a farm de19 scribed in paragraph (1)(D) shall be allocated

20 to other farms in the same State on such basis

21 as the Secretary may by regulation prescribe.’’.

22 (3) ELIMINATION OF QUOTA FLOOR.—Section

23 358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is

24 amended by striking the second sentence.
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1 (4) TEMPORARY QUOTA ALLOCATION.—Section

2 358–1 of the Act (7 U.S.C. 1358–1) is amended—

3 (A) in subsection (a)(1), by striking ‘‘do4 mestic edible, seed,’’ and inserting ‘‘domestic

5 edible use (except seed)’’;

6 (B) in subsection (b)(2)—

7 (i) in subparagraph (A), by striking

8 ‘‘subparagraph (B) and subject to’’; and

9 (ii) by striking subparagraph (B) and

10 inserting the following:

11 ‘‘(B) TEMPORARY QUOTA ALLOCATION.—

12 ‘‘(i) ALLOCATION RELATED TO SEED

13 PEANUTS.—Temporary allocation of quota

14 pounds for the marketing year only in

15 which the crop is planted shall be made to

16 producers for each of the 1996 through

17 2002 marketing years as provided in this

18 subparagraph.

19 ‘‘(ii) QUANTITY.—The temporary

20 quota allocation shall be equal to the

21 pounds of seed peanuts planted on the

22 farm, as may be adjusted under regula23 tions prescribed by the Secretary.

24 ‘‘(iii) ADDITIONAL QUOTA.—The tem25 porary allocation of quota pounds under
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1 this paragraph shall be in addition to the

2 farm poundage quota otherwise established

3 under this subsection and shall be credited,

4 for the applicable marketing year only, in

5 total to the producer of the peanuts on the

6 farm in a manner prescribed by the Sec7 retary.

8 ‘‘(iv) EFFECT OF OTHER REQUIRE9 MENTS.—Nothing in this section alters or

10 changes the requirements regarding the

11 use of quota and additional peanuts estab12 lished by section 358e(b).’’; and

13 (C) in subsection (e)(3), strike ‘‘and seed

14 and use on a farm’’.

15 (5) SPRING AND FALL TRANSFERS WITHIN A

16 STATE.—Section 358b(a)(1) of the Act (7 U.S.C.

17 1358b(a)(1)) is amended—

18 (A) by striking ‘‘, conditions, or limita19 tions’’ in the matter preceding the subpara20 graphs and inserting ‘‘and conditions’’;

21 (B) by striking ‘‘any such lease’’ in the

22 matter preceding the subparagraphs and insert23 ing ‘‘any such sale or lease’’; and

24 (C) by striking ‘‘in the fall or after the

25 normal planting season—’’ and subparagraphs
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•HR 2854 PCS

1 (A) and (B) and inserting the following: ‘‘in the

2 spring (or before the normal planting season)

3 or in the fall (or after the normal planting sea4 son) with the owner or operator of a farm lo5 cated within any county in the same State. In

6 the case of a fall transfer or a transfer after the

7 normal planting season, the transfer may be

8 made only if not less than 90 percent of the

9 quota (the farm quota exclusive of temporary

10 quota transfers), plus any poundage quota

11 transferred to the farm under this subsection,

12 has been planted or considered planted on the

13 farm from which the quota is to be leased.’’.

14 (6) UNDERMARKETINGS.—Part VI of subtitle B

15 of title III of the Act is amended—

16 (A) in section 358–1(b) (7 U.S.C. 1358–

17 1(b))—

18 (i) in paragraph (1)(B), by striking

19 ‘‘including—’’ and clauses (i) and (ii) and

20 inserting ‘‘including any increases resulting

21 from the allocation of quotas voluntarily

22 released for 1 year under paragraph (7).’’;

23 (ii) in paragraph (3)(B), by striking

24 ‘‘include—’’ and clauses (i) and (ii) and in25 serting ‘‘include any increase resulting
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1 from the allocation of quotas voluntarily

2 released for 1 year under paragraph (7).’’;

3 and

4 (iii) by striking paragraphs (8) and

5 (9); and

6 (B) in section 358b(a) (7 U.S.C.

7 1358b(a))—

8 (i) in paragraph (1), by striking ‘‘(in9 cluding any applicable under marketings)’’

10 both places it appears;

11 (ii) in paragraph (2), by striking ‘‘(in12 cluding any applicable under marketings)’’;

13 and

14 (iii) in paragraph (3), by striking

15 ‘‘(including any applicable

16 undermarketings)’’.

17 (7) DISASTER TRANSFERS.—Section 358–1(b)

18 of the Act (7 U.S.C. 1358–1(b)), as amended by

19 paragraph (6)(A)(iii), is further amended by adding

20 at the end the following:

21 ‘‘(8) DISASTER TRANSFERS.—

22 ‘‘(A) IN GENERAL.—Except as provided in

23 subparagraph (B), additional peanuts produced

24 on a farm from which the quota poundage was

25 not harvested and marketed because of drought,
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1 flood, or any other natural disaster, or any

2 other condition beyond the control of the pro3 ducer, may be transferred to the quota loan

4 pool for pricing purposes on such basis as the

5 Secretary shall by regulation provide.

6 ‘‘(B) LIMITATION.—The poundage of pea7 nuts transferred under subparagraph (A) shall

8 not exceed the difference between—

9 ‘‘(i) the total quantity of peanuts

10 meeting quality requirements for domestic

11 edible use, as determined by the Secretary,

12 marketed from the farm; and

13 ‘‘(ii) the total farm poundage quota,

14 excluding quota pounds transferred to the

15 farm in the fall.

16 ‘‘(C) SUPPORT RATE.—Peanuts trans17 ferred under this paragraph shall be supported

18 at 70 percent of the quota support rate for the

19 marketing years in which the transfers occur.

20 The transfers for a farm shall not exceed 25

21 percent of the total farm quota pounds, exclud22 ing pounds transferred in the fall.’’.
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•HR 2854 PCS

1 SEC. 107. SUGAR PROGRAM.

2 (a) SUGARCANE.—The Secretary shall make loans

3 available to processors of domestically grown sugarcane at

4 a rate equal to 18 cents per pound for raw cane sugar.

5 (b) SUGAR BEETS.—The Secretary shall make loans

6 available to processors of domestically grown sugar beets

7 at a rate equal to 22.9 cents per pound for refined beet

8 sugar.

9 (c) REDUCTION IN LOAN RATES.—

10 (1) REDUCTION REQUIRED.—The Secretary

11 shall reduce the loan rate specified in subsection (a)

12 for domestically grown sugarcane and subsection (b)

13 for domestically grown sugar beets if the Secretary

14 determines that negotiated reductions in export sub15 sidies and domestic subsidies provided for sugar of

16 the European Union and other major sugar growing,

17 producing, and exporting countries in the aggregate

18 exceed the commitments made as part of the Agree19 ment on Agriculture.

20 (2) EXTENT OF REDUCTION.—The Secretary

21 shall not reduce the loan rate under subsection (a)

22 or (b) below a rate that provides an equal measure

23 of support to that provided by the European Union

24 and other major sugar growing, producing, and ex25 porting countries, based on an examination of both
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1 domestic and export subsidies subject to reduction

2 in the Agreement on Agriculture.

3 (3) ANNOUNCEMENT OF REDUCTION.—The

4 Secretary shall announce any loan rate reduction to

5 be made under this subsection as far in advance as

6 is practicable.

7 (4) MAJOR SUGAR COUNTRIES DEFINED.—For

8 purposes of this subsection, the term ‘‘major sugar

9 growing, producing, and exporting countries’’

10 means—

11 (A) the countries of the European Union;

12 and

13 (B) the ten foreign countries not covered

14 by subparagraph (A) that the Secretary deter15 mines produce the greatest amount of sugar.

16 (5) AGREEMENT ON AGRICULTURE DEFINED.—

17 For purposes of this subsection, the term ‘‘Agree18 ment on Agriculture’’ means the Agreement on Agri19 culture referred to in section 101(d)(2) of the Uru20 guay Round Agreements Act (19 U.S.C.

21 3511(d)(2)).

22 (d) TERM OF LOANS.—

23 (1) IN GENERAL.—Loans under this section

24 during any fiscal year shall be made available not
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1 earlier than the beginning of the fiscal year and

2 shall mature at the earlier of—

3 (A) the end of 9 months; or

4 (B) the end of the fiscal year.

5 (2) SUPPLEMENTAL LOANS.—In the case of

6 loans made under this section in the last 3 months

7 of a fiscal year, the processor may repledge the

8 sugar as collateral for a second loan in the subse9 quent fiscal year, except that the second loan shall—

10 (A) be made at the loan rate in effect at

11 the time the second loan is made; and

12 (B) mature in 9 months less the quantity

13 of time that the first loan was in effect.

14 (e) LOAN TYPE; PROCESSOR ASSURANCES.—

15 (1) RECOURSE LOANS.—Subject to paragraph

16 (2), the Secretary shall carry out this section

17 through the use of recourse loans.

18 (2) NONRECOURSE LOANS.—During any fiscal

19 year in which the tariff rate quota for imports of

20 sugar into the United States is established at, or is

21 increased to, a level in excess of 1,500,000 short

22 tons raw value, the Secretary shall carry out this

23 section by making available nonrecourse loans. Any

24 recourse loan previously made available by the Sec-
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1 retary under this section during the fiscal year shall

2 be changed by the Secretary into a nonrecourse loan.

3 (3) PROCESSOR ASSURANCES.—If the Secretary

4 is required under paragraph (2) to make

5 nonrecourse loans available during a fiscal year or to

6 change recourse loans into nonrecourse loans, the

7 Secretary shall obtain from each processor that re8 ceives a loan under this section such assurances as

9 the Secretary considers adequate to ensure that the

10 processor will provide payments to producers that

11 are proportional to the value of the loan received by

12 the processor for sugar beets and sugarcane deliv13 ered by producers served by the processor. The Sec14 retary may establish appropriate minimum payments

15 for purposes of this paragraph.

16 (f) MARKETING ASSESSMENT.—

17 (1) SUGARCANE.—Effective for marketings of

18 raw cane sugar during the 1996 through 2003 fiscal

19 years, the first processor of sugarcane shall remit to

20 the Commodity Credit Corporation a nonrefundable

21 marketing assessment in an amount equal to—

22 (A) in the case of marketings during fiscal

23 year 1996, 1.1 percent of the loan rate estab24 lished under subsection (a) per pound of raw

25 cane sugar, processed by the processor from do-
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1 mestically produced sugarcane or sugarcane

2 molasses, that has been marketed (including the

3 transfer or delivery of the sugar to a refinery

4 for further processing or marketing); and

5 (B) in the case of marketings during each

6 of fiscal years 1997 through 2003, 1.375 per7 cent of the loan rate established under sub8 section (a) per pound of raw cane sugar, proc9 essed by the processor from domestically pro10 duced sugarcane or sugarcane molasses, that

11 has been marketed (including the transfer or

12 delivery of the sugar to a refinery for further

13 processing or marketing).

14 (2) SUGAR BEETS.—Effective for marketings of

15 beet sugar during the 1996 through 2003 fiscal

16 years, the first processor of sugar beets shall remit

17 to the Commodity Credit Corporation a nonrefund18 able marketing assessment in an amount equal to—

19 (A) in the case of marketings during fiscal

20 year 1996, 1.1794 percent of the loan rate es21 tablished under subsection (a) per pound of

22 beet sugar, processed by the processor from do23 mestically produced sugar beets or sugar beet

24 molasses, that has been marketed; and
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1 (B) in the case of marketings during each

2 of fiscal years 1997 through 2003, 1.47425

3 percent of the loan rate established under sub4 section (a) per pound of beet sugar, processed

5 by the processor from domestically produced

6 sugar beets or sugar beet molasses, that has

7 been marketed.

8 (3) COLLECTION.—

9 (A) TIMING.—A marketing assessment re10 quired under this subsection shall be collected

11 on a monthly basis and shall be remitted to the

12 Commodity Credit Corporation not later than

13 30 days after the end of each month. Any cane

14 sugar or beet sugar processed during a fiscal

15 year that has not been marketed by September

16 30 of the year shall be subject to assessment on

17 that date. The sugar shall not be subject to a

18 second assessment at the time that it is mar19 keted.

20 (B) MANNER.—Subject to subparagraph

21 (A), marketing assessments shall be collected

22 under this subsection in the manner prescribed

23 by the Secretary and shall be nonrefundable.

24 (4) PENALTIES.—If any person fails to remit

25 the assessment required by this subsection or fails to
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1 comply with such requirements for recordkeeping or

2 otherwise as are required by the Secretary to carry

3 out this subsection, the person shall be liable to the

4 Secretary for a civil penalty up to an amount deter5 mined by multiplying—

6 (A) the quantity of cane sugar or beet

7 sugar involved in the violation; by

8 (B) the loan rate for the applicable crop of

9 sugarcane or sugar beets.

10 (5) ENFORCEMENT.—The Secretary may en11 force this subsection in a court of the United States.

12 (g) FORFEITURE PENALTY.—

13 (1) IN GENERAL.—A penalty shall be assessed

14 on the forfeiture of any sugar pledged as collateral

15 for a nonrecourse loan under this section.

16 (2) CANE SUGAR.—The penalty for cane sugar

17 shall be 1 cent per pound.

18 (3) BEET SUGAR.—The penalty for beet sugar

19 shall bear the same relation to the penalty for cane

20 sugar as the marketing assessment for sugar beets

21 bears to the marketing assessment for sugarcane.

22 (4) EFFECT OF FORFEITURE.—Any payments

23 owed producers by a processor that forfeits any

24 sugar pledged as collateral for a nonrecourse loan
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1 shall be reduced in proportion to the loan forfeiture

2 penalty incurred by the processor.

3 (h) INFORMATION REPORTING.—

4 (1) DUTY OF PROCESSORS AND REFINERS TO

5 REPORT.—A sugarcane processor, cane sugar re6 finer, and sugar beet processor shall furnish the Sec7 retary, on a monthly basis, such information as the

8 Secretary may require to administer sugar pro9 grams, including the quantity of purchases of sugar10 cane, sugar beets, and sugar, and production, impor11 tation, distribution, and stock levels of sugar.

12 (2) PENALTY.—Any person willfully failing or

13 refusing to furnish the information, or furnishing

14 willfully any false information, shall be subject to a

15 civil penalty of not more than $10,000 for each such

16 violation.

17 (3) MONTHLY REPORTS.—Taking into consider18 ation the information received under paragraph (1),

19 the Secretary shall publish on a monthly basis com20 posite data on production, imports, distribution, and

21 stock levels of sugar.

22 (i) MARKETING ALLOTMENTS.—Part VII of subtitle

23 B of title III of the Agricultural Adjustment Act of 1938

24 (7 U.S.C. 1359aa et seq.) is repealed.
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1 (j) CROPS.—This section (other than subsection (i))

2 shall be effective only for the 1996 through 2002 crops

3 of sugar beets and sugarcane.

4 SEC. 108. ADMINISTRATION.

5 (a) COMMODITY CREDIT CORPORATION.—

6 (1) USE OF CORPORATION.—The Secretary

7 shall carry out this title through the Commodity

8 Credit Corporation.

9 (2) PROHIBITION ON SALARIES AND EX10 PENSES.—Notwithstanding any other provision of

11 law, no funds of the Corporation shall be used for

12 any salary or expense of any officer, employee, or

13 agency of the Department of Agriculture.

14 (b) DETERMINATIONS BY SECRETARY.—A deter15 mination made by the Secretary under this title or the

16 Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et

17 seq.) shall be final and conclusive.

18 (c) REGULATIONS.—The Secretary may issue such

19 regulations as the Secretary determines necessary to carry

20 out this title.

21 SEC. 109. ELIMINATION OF PERMANENT PRICE SUPPORT

22 AUTHORITY.

23 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—

24 The Agricultural Adjustment Act of 1938 is amended—

25 (1) in title III—
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1 (A) in subtitle B—

2 (i) by striking parts II through V (7

3 U.S.C. 1326–1351); and

4 (ii) in part VI—

5 (I) by moving subsection (c) of

6 section 358d (7 U.S.C. 1358d(c)) to

7 appear after section 301(b)(17) (7

8 U.S.C. 1301(b)(17)), redesignating

9 the subsection as paragraph (18), and

10 moving the margin of the paragraph 2

11 ems to the right; and

12 (II) by striking sections 358,

13 358a, and 358d (7 U.S.C. 1358,

14 1358a, and 1359); and

15 (B) by striking subtitle D (7 U.S.C.

16 1379a–1379j); and

17 (2) by striking title IV (7 U.S.C. 1401–1407).

18 (b) AGRICULTURAL ACT OF 1949.—

19 (1) TRANSFER OF CERTAIN SECTIONS.—The

20 Agricultural Act of 1949 is amended—

21 (A) by transferring sections 106, 106A,

22 and 106B (7 U.S.C. 1445, 1445–1, 1445–2) to

23 appear after section 314A of the Agricultural

24 Adjustment Act of 1938 (7 U.S.C. 1314–1) and
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1 redesignating the transferred sections as sec2 tions 315, 315A, and 315B, respectively;

3 (B) by transferring section 111 (7 U.S.C.

4 1445f) to appear after section 304 of the Agri5 cultural Adjustment Act of 1938 (7 U.S.C.

6 1304) and redesignating the transferred section

7 as section 305; and

8 (C) by transferring sections 404 and 416

9 (7 U.S.C. 1424 and 1431) to appear after sec10 tion 390 of the Agricultural Adjustment Act of

11 1938 (7 U.S.C. 1390) and redesignating the

12 transferred sections as sections 390A and

13 390B, respectively.

14 (2) REPEAL.—The Agricultural Act of 1949 (7

15 U.S.C. 1421 et seq.) (as amended by paragraph (1))

16 is repealed.

17 (c) CONFORMING AMENDMENTS.—

18 (1) Section 361 of the Agricultural Adjustment

19 Act of 1938 (7 U.S.C. 1361) is amended by striking

20 ‘‘, corn, wheat, cotton, peanuts, and rice, estab21 lished’’.

22 (2) Section 371 of the Agricultural Adjustment

23 Act of 1938 (7 U.S.C. 1371) is amended—

24 (A) in the first sentence of subsection (a),

25 by striking ‘‘cotton, rice, peanuts, or’’; and
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1 (B) in the first sentence of subsection (b),

2 by striking ‘‘cotton, rice, peanuts or’’.

3 SEC. 110. EFFECT OF AMENDMENTS.

4 (a) EFFECT ON PRIOR CROPS.—Except as otherwise

5 specifically provided and notwithstanding any other provi6 sion of law, this title and the amendments made by this

7 title shall not affect the authority of the Secretary to carry

8 out a price support or production adjustment program for

9 any of the 1991 through 1995 crops of an agricultural

10 commodity established under a provision of law in effect

11 immediately before the date of the enactment of this Act.

12 (b) LIABILITY.—A provision of this title or an

13 amendment made by this title shall not affect the liability

14 of any person under any provision of law as in effect be15 fore the date of the enactment of this Act.

16 TITLE II—DAIRY

17 SEC. 201. MILK PRICE SUPPORT PROGRAM.

18 (a) SUPPORT ACTIVITIES.—During the period begin19 ning on the date of the enactment of this Act and ending

20 December 31, 2000, the Secretary of Agriculture shall

21 support the price of milk produced in the 48 contiguous

22 States through the purchase of cheese, butter, and nonfat

23 dry milk produced from the milk.
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1 (b) RATE.—The price of milk shall be supported at

2 the following rates per hundredweight for milk containing

3 3.67 percent butterfat:

4 (1) During calendar year 1996, $10.15.

5 (2) During calendar year 1997, $10.05.

6 (3) During calendar year 1998, $9.95.

7 (4) During calendar year 1999, $9.85.

8 (5) During calendar year 2000, $9.75.

9 (c) BID PRICES.—The support purchase prices

10 under this section for each of the products of milk (but11 ter, cheese, and nonfat dry milk) announced by the Sec12 retary shall be the same for all of that product sold by

13 persons offering to sell the product to the Secretary. The

14 purchase prices shall be sufficient to enable plants of av15 erage efficiency to pay producers, on average, a price that

16 is not less than the rate of price support for milk in ef17 fect under subsection (b).

18 (d) SPECIAL RULE FOR BUTTER AND NONFAT DRY

19 MILK—

20 (1) ALLOCATION OF PURCHASE PRICES.—The

21 Secretary may allocate the rate of price support be22 tween the purchase prices for nonfat dry milk and

23 butter in a manner that will result in the lowest level

24 of expenditures by the Commodity Credit Corpora25 tion or achieve such other objectives as the Secretary
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1 considers appropriate. The Secretary shall notify the

2 Committee on Agriculture of the House of Rep3 resentatives and the Committee on Agriculture, Nu4 trition, and Forestry of the Senate of the allocation.

5 (2) TIMING OF PURCHASE PRICE ADJUST6 MENTS.—The Secretary may make any such adjust7 ments in the purchase prices for nonfat dry milk

8 and butter the Secretary considers to be necessary

9 not more than twice in each calendar year.

10 (e) REFUNDS OF 1995AND 1996 ASSESSMENTS.—

11 (1) REFUND REQUIRED.—The Secretary shall

12 provide for a refund of the entire reduction required

13 under section 204(h)(2) of the Agricultural Act of

14 1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day

15 before the date of the enactment of this Act, in the

16 price of milk received by a producer during calendar

17 year 1995 or 1996, if the producer provides evidence

18 that the producer did not increase marketings in cal19 endar year 1995 or 1996 when compared to cal20 endar year 1994 or 1995, respectively.

21 (2) EXCEPTION.—This subsection shall not apply

22 with respect to a producer for a particular calendar

23 year if the producer has already received a refund

24 under section 204(h) of the Agricultural Act of 1949
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1 for the same fiscal year before the date of the enact2 ment of this Act.

3 (3) TREATMENT OF REFUND.—A refund under

4 this subsection shall not be considered as any type

5 of price support or payment for purposes of sections

6 1211 and 1221 of the Food Security Act of 1985

7 (16 U.S.C. 3811 and 3821).

8 (f) COMMODITY CREDIT CORPORATION.—The Sec9 retary shall carry out the program authorized by this sec10 tion through the Commodity Credit Corporation.

11 (g) PERIOD OF EFFECTIVENESS.—This section shall

12 be effective only during the period beginning on the date

13 of the enactment of this Act and ending on December 31,

14 2000. The program authorized by this section shall ter15 minate on December 31, 2000, and shall be considered

16 to have expired notwithstanding section 257 of the Bal17 anced Budget and Emergency Deficit Control Act of

18 1985 (2 U.S.C. 907).

19 SEC. 202. CONSOLIDATION AND REFORM OF FEDERAL MILK

20 MARKETING ORDERS.

21 (a) AMENDMENT OF ORDERS.—As soon as prac22 ticable after the date of the enactment of this Act, the

23 Secretary shall amend Federal milk marketing orders is24 sued under section 8c of the Agricultural Adjustment Act
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1 (7 U.S.C. 608c), reenacted with amendments by the Ag2 ricultural Marketing Agreement Act of 1937, to—

3 (1) limit the number of Federal milk marketing

4 orders to between 10 and 14 orders; and

5 (2) provide for multiple basing points for the pric6 ing of milk.

7 (b) EXPEDITED PROCESS.—Using the rulemaking

8 procedures provided in section 553 of title 5, United

9 States Code, the Secretary shall—

10 (1) announce the amendments required under

11 subsection (a) not later than December 31, 1998;

12 and

13 (2) implement the amendments not later than De14 cember 31, 2000.

15 (c) FUNDING.—Effective beginning January 1,

16 2001, the Secretary shall not use any funds to administer

17 more than 14 Federal milk marketing orders.

18 (d) STUDY REGARDING FURTHER REFORMS.—Not

19 later than January 1, 1998, the Secretary of Agriculture

20 shall submit to Congress a report—

21 (1) reviewing the Federal milk marketing order

22 system established pursuant to section 8c of the Ag23 ricultural Adjustment Act (7 U.S.C. 608c), reen24 acted with amendments by the Agricultural Market-
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1 ing Agreement Act of 1937, in light of the reforms

2 required by subsection (a); and

3 (2) containing such recommendations as the Sec4 retary considers appropriate for further improve5 ments and reforms to the Federal milk marketing

6 order system.

7 SEC. 203. DAIRY EXPORT INCENTIVE PROGRAM.

8 (a) DURATION.—Section 153(a) of the Food Secu9 rity Act of 1985 (15 U.S.C. 713a–14) is amended by

10 striking ‘‘2001’’ and inserting ‘‘2002’’.

11 (b) SOLE DISCRETION.—Section 153(b) of the Food

12 Security Act of 1985 is amended by inserting ‘‘sole’’ be13 fore ‘‘discretion’’.

14 (c) ELEMENTS OF PROGRAM.—Section 153(c) of the

15 Food Security Act of 1985 is amended—

16 (1) by striking ‘‘and’’ at the end of paragraph (1);

17 (2) by striking the period at the end of paragraph

18 (2) and inserting ‘‘; and’’; and

19 (3) by adding at the end the following:

20 ‘‘(3) the maximum volume of dairy product ex21 ports allowable consistent with the obligations of the

22 United States as a member of the World Trade Or23 ganization is exported under the program each year

24 (minus the volume sold under section 1163 of the

25 Food Security Act of 1985 (Public Law 99–198; 7
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1 U.S.C. 1731 note) during that year), except to the

2 extent that the export of such a volume under the

3 program would, in the judgment of the Secretary,

4 exceed the limitations on the value set forth in sub5 section (f); and

6 ‘‘(4) payments may be made under the program

7 for exports to any destination in the world for the

8 purpose of market development, except a destination

9 in a country with respect to which shipments from

10 the United States are otherwise restricted by law.’’.

11 (d) MARKET DEVELOPMENT.—Section 153(e)(1) of

12 the Food Security Act of 1985 is amended—

13 (1) by striking ‘‘and’’ and inserting ‘‘the’’; and

14 (2) by inserting before the period the following: ‘‘,

15 and any additional amount that may be required to

16 assist in the development of world markets for Unit17 ed States dairy products’’.

18 (e) MAXIMUM ALLOWABLE AMOUNTS.—Section 153

19 of the Food Security Act of 1985 is amended by adding

20 at the end the following:

21 ‘‘(f) REQUIRED FUNDING.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the Commodity Credit Corporation shall

24 in each year use money and commodities for the pro25 gram under this section in the maximum amount
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1 consistent with the obligations of the United States

2 as a member of the World Trade Organization,

3 minus the amount expended under section 1163 of

4 the Food Security Act of 1985 (Public Law 99–198;

5 7 U.S.C. 1731 note) during that year.

6 ‘‘(2) VOLUME LIMITATIONS.—The Commodity

7 Credit Corporation may not exceed the limitations

8 specified in subsection (c)(3) on the volume of allow9 able dairy product exports.’’.

10 SEC. 204. EFFECT ON FLUID MILK STANDARDS IN THE

11 STATE OF CALIFORNIA.

12 Nothing in this Act or any other provision of law

13 shall be construed to preempt, prohibit or otherwise limit

14 the authority of the State of California, directly or indi15 rectly, to establish or continue to effect any law, regula16 tion or requirement regarding—

17 (1) the percentage of milk solids or solids not fat

18 in fluid milk products sold at retail or marketed in

19 the State of California; or

20 (2) the labeling of such fluid milk products with

21 regard to milk solids or solids not fat.

22 SEC. 205. REPEAL OF MILK MANUFACTURING MARKETING

23 ADJUSTMENT.

24 Section 102 of the Food, Agriculture, Conservation,

25 and Trade Act of 1990 (7 U.S.C. 1446e–1) is repealed.
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1 SEC. 206. PROMOTION.

2 (a) CONGRESSIONAL PURPOSE.—Section 1999B(a)

3 of the Fluid Milk Promotion Act of 1990 (7 U.S.C.

4 6401(a)) is amended—

5 (1) by redesignating paragraphs (6), (7) and (8)

6 as paragraphs (7), (8) and (9), respectively; and

7 (2) by inserting after paragraph (5) the following

8 new paragraph:

9 ‘‘(6) the congressional purpose underlying this

10 subtitle is to maintain and expand markets for fluid

11 milk products, not to maintain or expand any proc12 essor’s share of those markets and that the subtitle

13 does not prohibit or restrict individual advertising or

14 promotion of fluid milk products since the programs

15 created and funded by this subtitle are not extended

16 to replace individual advertising and promotion ef17 forts;’’.

18 (b) CONGRESSIONAL POLICY.—Section 1999B(b) of

19 the Fluid Milk Promotion Act of 1990 (7 U.S.C.

20 6401(b)) is amended to read as follows:

21 ‘‘(b) POLICY.—It is declared to be the policy of Con22 gress that it is in the public interest to authorize the es23 tablishment, through the exercise of powers provided in

24 this subtitle, of an orderly procedure for developing, fi25 nancing, through adequate assessments on fluid milk

26 products produced in the United States and carrying out
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1 an effective, continuous, and coordinated program of pro2 motion, research, and consumer information designed to

3 strengthen the position of the dairy industry in the mar4 ketplace and maintain and expand domestic and foreign

5 markets and uses for fluid milk products, the purpose of

6 which is not to compete with or replace individual adver7 tising or promotion efforts designed to promote individual

8 brand name or trade name fluid milk products, but rath9 er to maintain and expand the markets for all fluid milk

10 products, with the goal and purpose of this subtitle being

11 a national governmental goal that authorizes and funds

12 programs that result in government speech promoting

13 government objectives.’’.

14 (c) RESEARCH.—Section 1999C(6) of the Fluid Milk

15 Promotion Act of 1990 (7 U.S.C. 6402(6)) is amended

16 to read as follows:

17 ‘‘(6) RESEARCH.—The term ‘research’ means

18 market research to support advertising and pro19 motion efforts, including educational activities, re20 search directed to product characteristics, product

21 development, including new products or improved

22 technology in production, manufacturing or process23 ing of milk and the products of milk.’’.

24 (d) VOTING.—(1) Section 1999N(b)(2) of the Fluid

25 Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is
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1 amended by striking ‘‘all processors’’ and inserting ‘‘fluid

2 milk processors voting in the referendum’’.

3 (2) Section 1999O(c) of such Act (7 U.S.C. 6414(c))

4 is amended by striking ‘‘all processors’’ each place it ap5 pears and inserting ‘‘fluid milk processors voting in the

6 referendum’’.

7 (e) DURATION.—Section 1999O(a) of the Fluid Milk

8 Promotion Act of 1990 (7 U.S.C. 6414(a)) is amended

9 by striking ‘‘1996’’ and inserting ‘‘2002’’.

10 TITLE III—CONSERVATION

11 SEC. 301. CONSERVATION.

12 (a) FUNDING.—Subtitle E of title XII of the Food

13 Security Act of 1985 (16 U.S.C. 3841 et seq.) is amend14 ed to read as follows:

15 ‘‘Subtitle E—Funding

16 ‘‘SEC. 1241. FUNDING.

17 ‘‘(a) MANDATORY EXPENSES.—For each of fiscal

18 years 1996 through 2002, the Secretary shall use the

19 funds of the Commodity Credit Corporation to carry out

20 the programs authorized by—

21 ‘‘(1) subchapter B of chapter 1 of subtitle D (in22 cluding contracts extended by the Secretary pursu23 ant to section 1437 of the Food, Agriculture, Con24 servation, and Trade Act of 1990 (Public Law 101–

25 624; 16 U.S.C. 3831 note));
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1 ‘‘(2) subchapter C of chapter 1 of subtitle D; and

2 ‘‘(3) chapter 4 of subtitle D.

3 ‘‘(b) ENVIRONMENTAL QUALITY INCENTIVE PRO4 GRAM.—For each of fiscal years 1996 through 2002,

5 $200,000,000 of the funds of the Commodity Credit Cor6 poration shall be available for providing technical assist7 ance, cost-sharing payments, and incentive payments for

8 practices authorized under the environmental quality in9 centive program under chapter 4 of subtitle D. At least

10 50 percent of the funds made available under this sub11 section for a fiscal year shall be used to provide technical

12 assistance, cost-sharing payments, and incentive pay13 ments under such chapter relating to livestock produc14 tion.’’.

15 (b) ENVIRONMENTAL QUALITY INCENTIVE PRO16 GRAM.—Subtitle D of title XII of the Food Security Act

17 of 1985 (16 U.S.C. 3830 et seq.) is amended by adding

18 at the end the following:

19 ‘‘CHAPTER 4—ENVIRONMENTAL QUALITY

20 INCENTIVE PROGRAM

21 ‘‘SEC. 1240. DEFINITIONS.

22 ‘‘In this chapter and section 1241:

23 ‘‘(1) LAND MANAGEMENT PRACTICE.—The term

24 ‘land management practice’ means a site-specific nu25 trient or manure management, integrated pest man-
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1 agement, irrigation management, tillage or residue

2 management, grazing management, or other land

3 management practice that the Secretary determines

4 is needed to protect, in the most cost effective man5 ner, water, soil, or related resources from degrada6 tion.

7 ‘‘(2) LIVESTOCK.—The term ‘livestock’ means

8 mature livestock, dairy cows, beef cattle, laying hens,

9 turkeys, swine, sheep, and such other animals as de10 termined by the Secretary.

11 ‘‘(3) PRODUCER.—The term ‘producer’ means a

12 person who is engaged in livestock or agricultural

13 production (as defined by the Secretary).

14 ‘‘(4) STRUCTURAL PRACTICE.—The term ‘struc15 tural practice’ means—

16 ‘‘(A) the establishment of an animal waste

17 management facility, terrace, grassed waterway,

18 contour grass strip, filterstrip, tailwater pit, or

19 other structural practice that the Secretary de20 termines is needed to protect, in the most cost

21 effective manner, water, soil, or related re22 sources from degradation; and

23 ‘‘(B) the capping of abandoned wells.
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1 ‘‘SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF

2 ENVIRONMENTAL QUALITY INCENTIVE PRO3 GRAM.

4 ‘‘(a) ESTABLISHMENT.—

5 ‘‘(1) IN GENERAL.—During the 1996 through

6 2002 fiscal years, the Secretary shall provide tech7 nical assistance, cost-sharing payments, and incen8 tive payments to producers who enter into contracts

9 with the Secretary, through a environmental quality

10 incentive program.

11 ‘‘(2) ELIGIBLE PRACTICES.—

12 ‘‘(A) STRUCTURAL PRACTICES.—A producer

13 who implements a structural practice shall be

14 eligible for technical assistance or cost-sharing

15 payments, or both.

16 ‘‘(B) LAND MANAGEMENT PRACTICES.—A

17 producer who performs a land management

18 practice shall be eligible for technical assistance

19 or incentive payments, or both.

20 ‘‘(3) ELIGIBLE LAND.—Assistance under this

21 chapter may be provided with respect to land that

22 is used for livestock or agricultural production and

23 on which a serious threat to water, soil, or related

24 resources exists, as determined by the Secretary, by

25 reason of the soil types, terrain, climatic, soil, topo-
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1 graphic, flood, or saline characteristics, or other fac2 tors or natural hazards.

3 ‘‘(4) SELECTION CRITERIA.—In providing tech4 nical assistance, cost-sharing payments, and incen5 tive payments to producers in a region or watershed,

6 the Secretary shall consider—

7 ‘‘(A) the significance of the water, soil, and

8 related natural resource problems; and

9 ‘‘(B) the maximization of environmental ben10 efits per dollar expended.

11 ‘‘(b) APPLICATION AND TERM.—

12 ‘‘(1) IN GENERAL.—A contract between a pro13 ducer and the Secretary under this chapter may—

14 ‘‘(A) apply to 1 or more structural practices

15 or 1 or more land management practices, or

16 both; and

17 ‘‘(B) have a term of not less than 5, nor

18 more than 10, years, as determined appropriate

19 by the Secretary, depending on the practice or

20 practices that are the basis of the contract.

21 ‘‘(2) DUTIES OF PRODUCERS AND SECRETARY.—

22 To receive cost-sharing or incentive payments, or

23 technical assistance, participating producers shall

24 comply with all terms and conditions of the contract

25 and a plan, as established by the Secretary.
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1 ‘‘(c) STRUCTURAL PRACTICES.—

2 ‘‘(1) COMPETITIVE OFFER.—The Secretary shall

3 administer a competitive offer system for producers

4 proposing to receive cost-sharing payments in ex5 change for the implementation of 1 or more struc6 tural practices by the producer. The competitive

7 offer system shall consist of—

8 ‘‘(A) the submission of a competitive offer by

9 the producer in such manner as the Secretary

10 may prescribe; and

11 ‘‘(B) evaluation of the offer in light of the se12 lection criteria established under subsection

13 (a)(4) and the projected cost of the proposal, as

14 determined by the Secretary.

15 ‘‘(C) CONCURRENCE OF OWNER.—If the producer

16 making an offer to implement a structural practice

17 is a tenant of the land involved in agricultural pro18 duction, for the offer to be acceptable, the producer

19 shall obtain the concurrence of the owner of the land

20 with respect to the offer.

21 ‘‘(d) LAND MANAGEMENT PRACTICES.—The Sec22 retary shall establish an application and evaluation proc23 ess for awarding technical assistance or incentive pay24 ments, or both, to a producer in exchange for the per-
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1 formance of 1 or more land management practices by the

2 producer.

3 ‘‘(e) COST-SHARING, INCENTIVE PAYMENTS, AND

4 TECHNICAL ASSISTANCE.—

5 ‘‘(1) COST-SHARING PAYMENTS.—

6 ‘‘(A) IN GENERAL.—The Federal share of

7 cost-sharing payments to a producer proposing

8 to implement 1 or more structural practices

9 shall not be greater than 75 percent of the pro10 jected cost of each practice, as determined by

11 the Secretary, taking into consideration any

12 payment received by the producer from a State

13 or local government.

14 ‘‘(B) OTHER PAYMENTS.—A producer shall

15 not be eligible for cost-sharing payments for

16 structural practices on eligible land under this

17 chapter if the producer receives cost-sharing

18 payments or other benefits for the same land

19 under chapter 1, 2, or 3.

20 ‘‘(2) INCENTIVE PAYMENTS.—The Secretary shall

21 make incentive payments in an amount and at a rate

22 determined by the Secretary to be necessary to en23 courage a producer to perform 1 or more land man24 agement practices.

25 ‘‘(3) TECHNICAL ASSISTANCE.—
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1 ‘‘(A) FUNDING.—The Secretary shall allocate

2 funding under this chapter for the provision of

3 technical assistance with respect to non-Federal

4 lands according to the purpose and projected

5 cost for which the technical assistance is pro6 vided for a fiscal year. The allocated amount

7 may vary according to the type of expertise re8 quired, quantity of time involved, and other fac9 tors as determined appropriate by the Sec10 retary. Funding shall not exceed the projected

11 cost to the Secretary of the technical assistance

12 provided for a fiscal year.

13 ‘‘(B) OTHER AUTHORITIES.—The receipt of

14 technical assistance under this chapter shall not

15 affect the eligibility of the producer to receive

16 technical assistance under other authorities of

17 law available to the Secretary.

18 ‘‘(C) PRIVATE SOURCES.—The Secretary

19 shall ensure that the process of writing and de20 veloping proposals and plans for contracts

21 under this chapter, and of assisting in the im22 plementation of structural practices and land

23 management practices covered by the contracts,

24 are open to individuals in agribusiness, includ25 ing agricultural producers, representatives from
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1 agricultural cooperatives, agricultural input re2 tail dealers, and certified crop advisers. The re3 quirements of this subparagraph shall also

4 apply to any other Department program using

5 incentive payments, technical assistance, or

6 cost-share payments and to pilot project pro7 grams of the Department that require plans.

8 ‘‘(f) LIMITATION ON PAYMENTS.—

9 ‘‘(1) IN GENERAL.—The total amount of cost10 sharing and incentive payments paid to a person

11 under this chapter may not exceed—

12 ‘‘(A) $10,000 for any fiscal year; or

13 ‘‘(B) $50,000 for any multiyear contract.

14 ‘‘(2) EXCEPTION TO ANNUAL LIMIT.—The Sec15 retary may exceed the limitation on the annual

16 amount of a payment under paragraph (1)(A) on a

17 case-by-case basis if the Secretary determines that a

18 larger payment is essential to accomplish the land

19 management practice or structural practice for

20 which the payment is made.

21 ‘‘(3) REGULATIONS.—The Secretary shall issue

22 regulations that are consistent with section 1001 for

23 the purpose of—

24 ‘‘(A) defining the term ‘person’ as used in

25 paragraph (1); and
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1 ‘‘(B) prescribing such rules as the Secretary

2 determines necessary to ensure a fair and rea3 sonable application of the limitations estab4 lished under this subsection.

5 ‘‘(g) REGULATIONS.—Not later than 180 days after

6 the effective date of this subsection, the Secretary shall

7 issue regulations to implement the environmental quality

8 incentive program established under this chapter.’’.

9 SEC. 302. WETLANDS RESERVE PROGRAM.

10 (a) ENROLLMENT.—Section 1237 of the Food Secu11 rity Act of 1985 (16 U.S.C. 3837) is amended by strik12 ing subsection (b) and inserting the following:

13 ‘‘(b) ENROLLMENT CONDITIONS.—

14 ‘‘(1) MAXIMUM ENROLLMENT.—The total number

15 of acres enrolled in the wetlands reserve program

16 shall not exceed 975,000 acres.

17 ‘‘(2) METHODS OF ENROLLMENT.—The Secretary

18 shall ensure, to the maximum extent practicable,

19 that of the total number of acres enrolled in the wet20 lands reserve program—

21 ‘‘(A) one-third of the acres are enrolled

22 through the use of permanent easements;

23 ‘‘(B) one-third of the acres are enrolled

24 through the use of 30-year easements (or ease-
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1 ments of a shorter period if required under ap2 plicable State laws); and

3 ‘‘(C) one-third of the acres are enrolled

4 through the use of restoration cost-share agree5 ments authorized under section 1237A(h).’’.

6 ‘‘(3) TEMPORARY EMPHASIS ON CERTAIN ENROLL7 MENT METHODS.—To achieve the enrollment rations

8 specified in paragraph (2), the Secretary shall en9 deavor, to the maximum extent practicable, to rely

10 on the enrollment methods described in subpara11 graphs (B) and (C) of paragraph (2) to enroll lands

12 in the wetlands reserve program until such time as

13 enrollments under each such subparagraph accounts

14 for approximately one-third of all lands enrolled in

15 the wetlands reserve.’’

16 (b) ELIGIBILITY.—Section 1237(c) of the Food Se17 curity Act of 1985 (16 U.S.C. 3837(c)) is amended by

18 striking ‘‘2000’’ and inserting ‘‘2002’’.

19 (c) EASEMENTS AND RESTORATION COST-SHARE

20 AGREEMENTS.—Section 1237A of the Food Security Act

21 of 1985 (16 U.S.C. 3837a) is amended—

22 (1) in the section heading, by inserting before the

23 period at the end the following: ‘‘AND RES24 TORATION COST-SHARE AGREE25 MENTS’’;
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1 (2) by striking subsection (c) and inserting the

2 following:

3 ‘‘(c) RESTORATION PLANS.—The development of a

4 restoration plan, including any compatible use, under this

5 section shall be made through the local Natural Re6 sources Conservation Service representative.’’;

7 (3) in subsection (f), by striking the third sen8 tence and inserting the following: ‘‘Compensation

9 may be provided in not less than 5, nor more than

10 30, annual payments of equal or unequal size, as

11 agreed to by the owner and the Secretary.’’; and

12 (4) by adding at the end the following:

13 ‘‘(h) RESTORATION COST-SHARE AGREEMENTS.—

14 The Secretary may enroll land in the wetland reserve

15 program through agreements that require the landowner

16 to restore wetlands on the land, if the agreement does

17 not provide the Secretary with an easement. Other than

18 cost share and technical assistance provided under sec19 tion 1237C(b), the Secretary may not provide compensa20 tion for an agreement under this subsection.’’.

21 (d) SHARE AND TECHNICAL ASSISTANCE.—Section

22 1237C of the Food Security Act of 1985 (16 U.S.C.

23 3837c) is amended by striking subsection (b) and insert24 ing the following:

25 ‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—
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1 ‘‘(1) EASEMENTS.—In the case of an easement

2 entered into during the 1996 through 2002 calendar

3 years, in making cost share payments under sub4 section (a)(1), the Secretary shall—

5 ‘‘(A) in the case of a permanent easement,

6 pay the owner an amount that is not less than

7 75 percent, but not more than 100 percent, of

8 the eligible costs; and

9 ‘‘(B) in the case of a 30-year easement, pay

10 the owner an amount that is not less than 50

11 percent, but not more than 75 percent, of the

12 eligible costs.

13 ‘‘(2) RESTORATION COST-SHARE AGREEMENTS.—

14 In making cost share payments in connection with a

15 restoration cost-share agreement entered into under

16 section 1237(A)(h), the Secretary shall pay the

17 owner an amount that is not less than 50 percent,

18 but not more than 75 percent, of the eligible costs.

19 ‘‘(3) TECHNICAL ASSISTANCE.—The Secretary

20 shall provide owners with technical assistance to as21 sist owners in complying with the terms of ease22 ments and restoration cost-share agreements.’’.

23 (e) EFFECT ON EXISTING EASEMENTS.—The

24 amendments made by this section shall not affect the va25 lidity or terms of any easements acquired by the Sec-
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1 retary of Agriculture under subchapter C of chapter 1 of

2 subtitle D of title XII of the Food Security Act of 1985

3 (16 U.S.C. 3837 et seq.) before the date of the enact4 ment of this Act or any payments required to be made

5 in connection with such easements.

6 SEC. 303. ELIMINATION OF CONSULTATION REQUIRE7 MENTS WITH SECRETARY OF THE INTERIOR.

8 Section 1242 of the Food Security Act of 1985 (16

9 U.S.C. 3842) is amended—

10 (1) by striking ‘‘(a)’’ before ‘‘In carrying out’’;

11 and

12 (2) by striking subsection (b).

13 SEC. 304. ENVIRONMENTAL CONSERVATION ACREAGE RE14 SERVE PROGRAM.

15 (a) PROGRAM EXTENSIONS.—Section 1230(a) of the

16 Food Security Act of 1985 (16 U.S.C. 3830(a)) is

17 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

18 (b) CONSERVATION AND IMPROVEMENT OF WILD19 LIFE HABITAT.—Such section is further amended by in20 serting ‘‘and wildlife habitat’’ after ‘‘soil and water re21 sources’’.

22 SEC. 305. CONSERVATION RESERVE PROGRAM.

23 (a) PROGRAM EXTENSIONS.—

24 (1) CONSERVATION RESERVE PROGRAM.—Section

25 1231 of the Act (16 U.S.C. 3831) is amended in
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1 subsections (a) and (b)(3), by striking ‘‘1995’’ each

2 place it appears and inserting ‘‘2002’’.

3 (3) DUTIES OF OWNERS AND OPERATORS.—Sec4 tion 1232(c) of the Act (16 U.S.C. 3832(c)) is

5 amended by striking ‘‘1995’’ and inserting ‘‘2002’’.

6 (b) MAXIMUM ENROLLMENT.—Section 1231(d) of

7 the Food Security Act of 1985 (16 U.S.C. 3831(d)) is

8 amended by striking ‘‘total of’’ and all that follows

9 through the period at the end of the subsection and in10 serting ‘‘total of 36,400,000 acres during the 1986

11 through 2002 calendar years (including contracts ex12 tended by the Secretary pursuant to section 1437(c) of

13 the Food, Agriculture, Conservation, and Trade Act of

14 1990 (Public Law 101–624; 16 U.S.C. 3831 note).’’.

15 (c) OPTIONAL CONTRACT TERMINATION BY PRO16 DUCERS.—Section 1235 of the Food Security Act of

17 1985 (16 U.S.C. 3835) is amended by adding at the end

18 the following new subsection:

19 ‘‘(e) TERMINATIONAL BY OWNER OR OPERATOR.—

20 (1) EARLY TERMINATION AUTHORIZED.—The

21 Secretary shall allow an owner or operator of land

22 that, on the date of the enactment of the Agricul23 tural Market Transition Act, is covered by a con24 tract that was entered into under this subchapter at

25 least five years before that date to terminate the
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1 contract with respect to all or a portion of the cov2 ered land. The owner or operator shall provide the

3 Secretary with reasonable notice of the termination

4 request.

5 ‘‘(2) CERTAIN LANDS EXCEPTED.—Notwithstand6 ing paragraph (1), the following lands shall not be

7 subject to an early termination of contract under

8 this subsection:

9 ‘‘(A) Filterstrips, waterways, strips adjacent

10 to riparian areas, windbreaks, and shelterbelts.

11 ‘‘(B) Land with an erodibility index of more

12 than 15.

13 ‘‘(C) Other lands of high environmental

14 value, as determined by the Secretary.

15 ‘‘(3) EFFECTIVE DATE.—The contract termi16 nation shall take effect 60 days after the date on

17 which the owner or operator submits the notice

18 under paragraph (1).

19 ‘‘(4) PRORATED RENTAL PAYMENT.—If a contract

20 entered into under this subchapter is terminated

21 under this subsection before the end of the fiscal

22 year for which a rental payment is due, the Sec23 retary shall provide a prorated rental payment cover24 ing the portion of the fiscal year during which the

25 contract was in effect.
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1 ‘‘(5) RENEWED ENROLLMENT.—The termination

2 of a contract entered into under this subchapter

3 shall not affect the ability of the owner or operator

4 who requested the termination to submit a subse5 quent bid to enroll the land that was subject to the

6 contract into the conservation reserve.

7 ‘‘(6) CONSERVATION REQUIREMENTS.—If land

8 that was subject to a contract is returned to produc9 tion of an agricultural commodity, the conservation

10 requirements under subtitles B and C shall apply to

11 the use of the land to the extent that the require12 ments are similar to those requirements imposed on

13 other similar lands in the area, except than the re14 quirements may not be more onerous that the re15 quirements imposed on other lands.’’.

16 (d) USE OF UNEXPENDED FUNDS.—Section 1231

17 of the Food Security Act of 1985 (16 U.S.C. 3831) is

18 amended by adding at the end the following:

19 ‘‘(h) USE OF UNEXPENDED FUNDS FROM CON20 TRACT TERMINATIONS.—If a contract entered into under

21 this section is terminated, voluntarily or otherwise, before

22 the expiration date specified in the contract, the Sec23 retary may use funds, already available to the Secretary

24 to cover payments under the contract, but unexpended as

25 a result of the contract termination, to enroll other eligi-
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1 ble lands in the conservation reserve established under

2 this subchapter.’’.

3 (e) FAIR MARKET VALUE RENTAL RATES.—

4 (1) IN GENERAL.—Section 1234(c) of the Food

5 Security Act of 1985 (16 U.S.C. 3834(c)) is amend6 ed by adding at the end the following new para7 graph:

8 ‘‘(5) In the case of a contract covering land which

9 has not been previously enrolled in the conservation re10 serve, annual rental payments under the contract may

11 not exceed the average fair market rental rate for com12 parable lands in the county in which the lands are lo13 cated. This paragraph shall not apply to the extension of

14 an existing contract.’’

15 (2) APPLICATION OF AMENDMENT.—The amend16 ment made by paragraph (1) shall apply with re17 spect to contracts for the enrollment of lands in the

18 conservation reserve program under section 1231 of

19 the Food Security Act of 1985 (16 U.S.C. 3831))

20 entered into after the date of the enactment of this

21 Act.

22 (f) ENROLLMENTS IN 1997.—Section 725 of the Ag23 riculture, Rural Development, Food and Drug Adminis24 tration, and Related Agencies Appropriations Act, 1996

25 (Public Law 104–37; 109 Stat. 332), is amended by
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1 striking the proviso relating to enrollment of new acres

2 in 1997.

3 TITLE IV—AGRICULTURAL PRO4 MOTION AND EXPORT PRO5 GRAMS

6 Subtitle A—Agricultural Promotion

7 and Export Enhancement Pro8 grams

9 SEC. 401. MARKET PROMOTION PROGRAM.

10 Effective as of October 1, 1995, section 211(c)(1) of

11 the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1))

12 is amended—

13 (1) by striking ‘‘and’’ after ‘‘1991 through

14 1993,’’; and

15 (2) by striking ‘‘through 1997,’’ and inserting

16 ‘‘through 1995, and not more than $100,000,000

17 for each of fiscal years 1996 through 2002,’’.

18 SEC. 402. EXPORT ENHANCEMENT PROGRAM.

19 (a) GENERALLY.—Effective as of October 1, 1995,

20 section 301(e)(1) of the Agricultural Trade Act of 1978

21 (7 U.S.C. 5651(e)(1)) is amended to read as follows:

22 ‘‘(1) IN GENERAL.—The Commodity Credit

23 Corporation shall make available to carry out the

24 program established under this section not more

25 than—
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1 ‘‘(A) $350,000,000 for fiscal year 1996;

2 ‘‘(B) $350,000,000 for fiscal year 1997;

3 ‘‘(C) $500,000,000 for fiscal year 1998;

4 ‘‘(D) $550,000,000 for fiscal year 1999;

5 ‘‘(E) $579,000,000 for fiscal year 2000;

6 ‘‘(F) $478,000,000 for fiscal year 2001;

7 and

8 ‘‘(G) $478,000,000 for fiscal year 2002.’’.

9 (b) PRIORITY FUNDING FOR WHEAT FLOUR.—Sec10 tion 301 of the Agricultural Trade Act of 1978 (7 U.S.C.

11 5651) is amended by adding at the end the following:

12 ‘‘(h) PRIORITY FUNDING FOR WHEAT FLOUR.—

13 Consistent, as determined by the Secretary, with the obli14 gations and reduction commitments undertaken by the

15 United States set forth in the Uruguay Round Agree16 ments, the Secretary shall announce awards under this

17 section on an annual basis for the sale of wheat flour in

18 sufficient amount to maintain the percentage of market

19 share of world commercial flour markets achieved by the

20 United States wheat flour industry during the Uruguay

21 Round base period years of 1986 through 1990.’’.
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1 Subtitle B—Amendments to Agri2 cultural Trade Development and

3 Assistance Act of 1954 and Re4 lated Statutes

5 SEC. 411. FOOD AID TO DEVELOPING COUNTRIES.

6 (a) IN GENERAL.—Section 3 of the Agricultural

7 Trade Development and Assistance Act of 1954 (7

8 U.S.C. 1691a) is amended to read as follows:

9 ‘‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

10 ‘‘(a) POLICY.—In light of the Uruguay Round

11 Agreement on Agriculture and the Ministerial Decision

12 on Measures Concerning the Possible Negative Effects of

13 the Reform Program on Least-Developed and Net-Food

14 Importing Developing Countries, the United States reaf15 firms the commitment of the United States to providing

16 food aid to developing countries.

17 ‘‘(b) SENSE OF CONGRESS.—It is the sense of Con18 gress that—

19 ‘‘(1) the President should initiate consultations

20 with other donor nations to consider appropriate lev21 els of food aid commitments to meet the legitimate

22 needs of developing countries;

23 ‘‘(2) the United States should increase its con24 tribution of bona fide food assistance to developing
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1 countries consistent with the Agreement on Agri2 culture.’’.

3 (b) CONFORMING AMENDMENT.—Section 411 of the

4 Uruguay Round Agreements Act (19 U.S.C. 3611) is

5 amended by striking subsection (e).

6 SEC. 412. TRADE AND DEVELOPMENT ASSISTANCE.

7 Section 101 of the Agricultural Trade Development

8 and Assistance Act of 1954 (7 U.S.C. 1701) is amend9 ed—

10 (1) by striking ‘‘developing countries’’ each place

11 it appears and inserting ‘‘developing countries and

12 private entities’’; and

13 (2) in subsection (b), by inserting ‘‘and entities’’

14 before the period at the end.

15 SEC. 413. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

16 AND PRIVATE ENTITIES.

17 Section 102 of the Agricultural Trade Development

18 and Assistance Act of 1954 (7 U.S.C. 1702) is amended

19 to read as follows:

20 ‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES

21 AND PRIVATE ENTITIES.

22 ‘‘(a) PRIORITY.—In selecting agreements to be en23 tered into under this title, the Secretary shall give prior24 ity to agreements providing for the export of agricultural

25 commodities to developing countries that—
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1 ‘‘(1) have the demonstrated potential to become

2 commercial markets for competitively priced United

3 States agricultural commodities;

4 ‘‘(2) are undertaking measures for economic de5 velopment purposes to improve food security and ag6 ricultural development, alleviate poverty, and pro7 mote broad-based equitable and sustainable develop8 ment; and

9 ‘‘(3) demonstrate the greatest need for food.

10 ‘‘(b) PRIVATE ENTITIES.—An agreement entered

11 into under this title with a private entity shall require

12 such security, or such other provisions as the Secretary

13 determines necessary, to provide reasonable and adequate

14 assurance of repayment of the financing extended to the

15 private entity.

16 ‘‘(c) AGRICULTURAL MARKET DEVELOPMENT

17 PLAN.—

18 ‘‘(1) DEFINITION OF AGRICULTURAL TRADE OR19 GANIZATION.—In this subsection, the term ‘agricul20 tural trade organization’ means a United States ag21 ricultural trade organization that promotes the ex22 port and sale of a United States agricultural com23 modity and that does not stand to profit directly

24 from the specific sale of the commodity.
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1 ‘‘(2) AN.—The Secretary shall consider a develop2 ing country for which an agricultural market devel3 opment plan has been approved under this sub4 section to have the demonstrated potential to become

5 a commercial market for competitively priced United

6 States agricultural commodities for the purpose of

7 granting a priority under subsection (a).

8 ‘‘(3) REQUIREMENTS.—

9 ‘(A) IN GENERAL.—To be approved by the

10 Secretary, an agricultural market development

11 plan shall—

12 ‘‘(i) be submitted by a developing coun13 try or private entity, in conjunction with

14 an agricultural trade organization;

15 ‘‘(ii) describe a project or program for

16 the development and expansion of a United

17 States agricultural commodity market in a

18 developing country, and the economic de19 velopment of the country, using funds de20 rived from the sale of agricultural com21 modities received under an agreement de22 scribed in section 101;

23 ‘‘(iii) provide for any matching funds

24 that are required by the Secretary for the

25 project or program;
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1 ‘‘(iv) provide for a results-oriented

2 means of measuring the success of the

3 project or program; and

4 ‘‘(v) provide for graduation to the use of

5 non-Federal funds to carry out the project

6 or program, consistent with requirements

7 established by the Secretary.

8 ‘‘(B) AGRICULTURAL TRADE ORGANIZA9 TION.—The project or program shall be de10 signed and carried out by the agricultural trade

11 organization.

12 ‘‘(C) ADDITIONAL REQUIREMENTS.—An agri13 cultural market development plan shall contain

14 such additional requirements as are determined

15 necessary by the Secretary.

16 ‘‘(4) ADMINISTRATIVE COSTS.—

17 ‘‘(A) IN GENERAL.—The Secretary shall

18 make funds made available to carry out this

19 title available for the reimbursement of admin20 istrative expenses incurred by agricultural trade

21 organizations in developing, implementing, and

22 administering agricultural market development

23 plans, subject to such requirements and in such

24 amounts as the Secretary considers appropriate.
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1 ‘‘(B) DURATION.—The funds shall be made

2 available to agricultural trade organizations for

3 the duration of the applicable agricultural mar4 ket development plan.

5 ‘‘(C) TERMINATION.—The Secretary may ter6 minate assistance made available under this

7 subsection if the agricultural trade organization

8 is not carrying out the approved agricultural

9 market development plan.’’.

10 SEC. 414. TERMS AND CONDITIONS OF SALES.

11 Section 103 of the Agricultural Trade Development

12 and Assistance Act of 1954 (7 U.S.C. 1703) is amend13 ed—

14 ‘‘(1) in subsection (a)(2)(A)—

15 (A) by striking ‘‘a recipient country to

16 make’’; and

17 (B) by striking ‘‘such country’’ and inserting

18 ‘‘the appropriate country’’;

19 (2) in subsection (c), by striking ‘‘less than

20 10 nor’’; and

21 (3) in subsection (d)—

22 (A) by striking ‘‘recipient country’’ and in23 serting ‘‘developing country or private entity’’;

24 and

25 (B) by striking ‘‘7’’ and inserting ‘‘5’’.
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1 SEC. 415. USE OF LOCAL CURRENCY PAYMENT.

2 Section 104 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1704) is amend4 ed—

5 (1) in subsection (a), by striking ‘‘recipient coun6 try’’ and inserting ‘‘developing country or private en7 tity’’; and

8 (2) in subsection (c)—

9 (A) by striking ‘‘recipient country’’ each

10 place it appears and inserting ‘‘appropriate de11 veloping country’’; and

12 (B) in paragraph (3), by striking ‘‘recipient

13 countries’’ and inserting ‘‘appropriate develop14 ing countries’’.

15 SEC. 416. ELIGIBLE ORGANIZATIONS.

16 Section 202 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1722) is amend18 ed—

19 (1) by striking subsection (b) and inserting the

20 following:

21 ‘‘(b) NONEMERGENCY ASSISTANCE.—

22 ‘‘(1) IN GENERAL.—The Administrator may pro23 vide agricultural commodities for nonemergency as24 sistance under this title through eligible organiza25 tions (as described in subsection (d)) that have en-
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1 tered into an agreement with the Administrator to

2 use the commodities in accordance with this title.

3 ‘‘(2) LIMITATION.—The Administrator may not

4 deny a request for funds or commodities submitted

5 under this subsection because the program for which

6 the funds or commodities are requested—

7 ‘‘(A) would be carried out by the eligible or8 ganization in a foreign country in which the

9 Agency for International Development does not

10 have a mission, office, or other presence; or

11 ‘‘(B) is not part of a development plan for

12 the country prepared by the Agency.’’; and

13 (2) in subsection (e)—

14 (A) in the subsection heading, by striking

15 ‘‘PRIVATE VOLUNTARY ORGANIZATIONS AND

16 COOPERATIVES’’ and inserting ‘‘ELIGIBLE OR17 GANIZATIONS’’;

18 (B) in paragraph (1)—

19 (i) by striking ‘‘$13,500,000’’ and in20 serting ‘‘$28,000,000’’; and

21 (ii) by striking ‘‘private voluntary orga22 nizations and cooperatives to assist such

23 organizations and cooperatives’’ and insert24 ing ‘‘eligible organizations described in

25 subsection (d), to assist the organizations’’;
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1 (C) in paragraph (3), by striking ‘‘a private

2 voluntary organization or cooperative, the Ad3 ministrator may provide assistance to that or4 ganization or cooperative’’ and inserting ‘‘an el5 igible organization, the Administrator may pro6 vide assistance to the eligible organization’’.

7 SEC. 417. GENERATION AND USE OF FOREIGN CUR8 RENCIES.

9 Section 203 of the Agricultural Trade Development

10 and Assistance Act of 1954 (7 U.S.C. 1723) is amend11 ed—

12 (1) in subsection (a), by inserting ‘‘, or in a coun13 try in the same region,’’ after ‘‘in the recipient coun14 try’’;

15 (2) in subsection (b)—

16 (A) by inserting ‘‘or in countries in the same

17 region,’’ after ‘‘in recipient countries,’’; and

18 (B) by striking ‘‘10 percent’’ and inserting

19 ‘‘15 percent’’;

20 (3) in subsection (c), by inserting ‘‘or in a country

21 in the same region,’’ after ‘‘in the recipient coun22 try,’’; and

23 (4) in subsection (d)(2), by inserting ‘‘or within a

24 country in the same region’’ after ‘‘within the recipi25 ent country’’.
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1 SEC. 418. GENERAL LEVELS OF ASSISTANCE UNDER PUB2 LIC LAW 480.

3 Section 204(a) of the Agricultural Trade Develop4 ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is

5 amended—

6 (1) in paragraph (1), by striking ‘‘amount that’’

7 and all that follows through the period at the end

8 and inserting ‘‘amount that for each of fiscal years

9 1996 through 2002 is not less than 2,025,000 met10 ric tons.’’;

11 (2) in paragraph (2), by striking ‘‘amount that’’

12 and all that follows through the period at the end

13 and inserting ‘‘amount that for each of fiscal years

14 1996 through 2002 is not less than 1,550,000 met15 ric tons.’’; and

16 (3) in paragraph (3), by adding at the end the fol17 lowing: ‘‘No waiver shall be made before the begin18 ning of the applicable fiscal year.’’.

19 SEC. 419. FOOD AND CONSULTATIVE GROUP.

20 Section 205 of the Agricultural Trade Development

21 and Assistance Act of 1954 (7 U.S.C. 1725) is amend22 ed—

23 (1) in subsection (a), by striking ‘‘private vol24 untary organizations, cooperatives and indigenous

25 non-governmental organizations’’ and inserting ‘‘eli26 gible organizations described in section 202(d)(1)’’;
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1 (2) in subsection (b)—

2 (A) in paragraph (2), by striking ‘‘for Inter3 national Affairs and Commodity Programs’’

4 and inserting ‘‘of Agriculture for Farm and

5 Foreign Agricultural Services’’;

6 (B) in paragraph (4), by striking ‘‘and’’ at

7 the end;

8 (C) in paragraph (5), by striking the period

9 at the end and inserting ‘‘; and’’; and

10 (D) by adding at the end the following:

11 ‘‘(6) representatives from agricultural producer

12 groups in the United States.’’;

13 (3) in the second sentence of subsection (d), by in14 serting ‘‘(but at least twice per year)’’ after ‘‘when

15 appropriate’’; and

16 (4) in subsection (f), by striking ‘‘1995’’ and in17 serting ‘‘2002’’.

18 SEC. 420. SUPPORT OF NONGOVERNMENTAL ORGANIZA19 TIONS.

20 (a) IN GENERAL.—Section 306(b) of the Agricul21 tural Trade Development and Assistance Act of 1954 (7

22 U.S.C. 1727e(b)) is amended—

23 (1) in the subsection heading, by striking ‘‘INDIG24 ENOUS NON-GOVERNMENTAL’’ and inserting ‘‘NON25 GOVERNMENTAL’’; and
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1 (2) by striking ‘‘utilization of indigenous’’ and in2 serting ‘‘utilization of’’.

3 (b) CONFORMING AMENDMENT.—Section 402 of the

4 Agricultural Trade Development and Assistance Act of

5 1954 (7 U.S.C. 1732) is amended by striking paragraph

6 (6) and inserting the following:

7 ‘‘(6) NONGOVERNMENTAL ORGANIZATION.—The

8 term ‘nongovernmental organization’ means an orga9 nization that works at the local level to solve devel10 opment problems in a foreign country in which the

11 organization is located, except that the term does

12 not include an organization that is primarily an

13 agency or instrumentality of the government of the

14 foreign country.’’.

15 SEC. 421. COMMODITY DETERMINATIONS.

16 Section 401 of the Agricultural Trade Development

17 and Assistance Act of 1954 (7 U.S.C. 1731) is amend18 ed—

19 (1) by striking subsections (a) through (d) and in20 serting the following:

21 ‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul22 tural commodity shall be available for disposition under

23 this Act if the Secretary determines that the disposition

24 would reduce the domestic supply of the commodity below

25 the supply needed to meet domestic requirements and
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1 provide adequate carryover (as determined by the Sec2 retary), unless the Secretary determines that some part

3 of the supply should be used to carry out urgent humani4 tarian purposes under this Act.’’;

5 (2) by redesignating subsections (e) and (f) as

6 subsections (b) and (c), respectively; and

7 (3) in subsection (c) (as so redesignated), by

8 striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.

9 SEC. 422. GENERAL PROVISIONS.

10 Section 403 of the Agricultural Trade Development

11 and Assistance Act of 1954 (7 U.S.C. 1733) is amend12 ed—

13 (1) in subsection (b)—

14 (A) in the subsection heading, by striking

15 ‘‘CONSULTATIONS’’ and inserting ‘‘IMPACT ON

16 LOCAL FARMERS AND ECONOMY’’; and

17 (B) by striking ‘‘consult with’’ and all that

18 follows through ‘‘other donor organizations to’’;

19 (2) in subsection (c)—

20 (A) by striking ‘‘from countries’’; and

21 (B) by striking ‘‘for use’’ and inserting ‘‘or

22 use’’;

23 (3) in subsection (f)—

24 (A) by inserting ‘‘or private entities, as ap25 propriate,’’ after ‘’from countries’’; and
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1 (B) by inserting ‘‘or private entities’’ after

2 ‘‘such countries’’; and

3 (4) in subsection (i)(2), by striking subparagraph

4 (C).

5 SEC. 423. AGREEMENTS.

6 Section 404 of the Agricultural Trade Development

7 and Assistance Act of 1954 (7 U.S.C. 1734) is amend8 ed—

9 (1) in subsection (a), by inserting ‘‘with foreign

10 countries’’ after ‘‘Before entering into agreements’’;

11 (2) in subsection (b)(2)—

12 (A) by inserting ‘’with foreign countries’’

13 after ‘‘with respect to agreements entered into’’;

14 and

15 (B) by inserting before the semicolon at the

16 end the following: ‘‘and broad-based economic

17 growth’’; and

18 (3) in subsection (c), by striking paragraph (1)

19 and inserting the following:

20 ‘‘(1) IN GENERAL.—Agreements to provide assist21 ance on a multi-year basis to recipient countries or

22 to eligible organizations—

23 ‘‘(A) may be made available under titles I

24 and III; and

25 ‘‘(B) shall be made available under title II.’’.
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1 SEC. 424. ADMINISTRATIVE PROVISIONS.

2 Section 407 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1736a) is amend4 ed—

5 (1) in subsection (a)—

6 (A) in paragraph (1), by inserting ‘‘or private

7 entity that enters into an agreement under title

8 I’’ after ‘‘importing country’’; and

9 (B) in paragraph (2), by adding at the end

10 the following: ‘‘Resulting contracts may contain

11 such terms and conditions as the Secretary de12 termines are necessary and appropriate.’’;

13 (2) in subsection (c)—

14 (A) in paragraph (1)(A), by inserting ‘‘im15 porter or’’ before ‘‘importing country’’; and

16 (B) in paragraph (2)(A), by inserting ‘‘im17 porter or’’ before ‘‘importing country’’;

18 (3) in subsection (d)—

19 (A) by striking paragraph (2) and inserting

20 the following:

21 ‘‘(2) FREIGHT PROCUREMENT.—

22 Nothwithstanding the Federal Property and Admin23 istrative Services Act of 1949 (40 U.S.C. 471 et

24 seq.) or other similar provisions of law relating to

25 the making or performance of Federal Government

26 contracts, ocean transportation under titles II and
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1 III may be procured on the basis of such full and

2 open competitive procedures. Resulting contracts

3 may contain such terms and conditions, as the Ad4 ministrator determines are necessary and appro5 priate.’’; and

6 (B) by striking paragraph (4);

7 (4) in subsection (g)(2)—

8 (A) in subparagraph (B), by striking ‘‘and’’

9 at the end;

10 (B) in subparagraph (C), by striking the pe11 riod at the end and inserting ‘‘; and’’; and

12 (C) by adding at the end the following:

13 ‘‘(D) an assessment of the progress towards

14 achieving food security in each country receiv15 ing food assistance from the United States Gov16 ernment, with special emphasis on the nutri17 tional status of the poorest populations in each

18 country.’’; and

19 (5) by striking subsection (h).

20 SEC. 425. EXPIRATION DATE.

21 Section 408 of the Agricultural Trade Development

22 and Assistance Act of 1954 (7 U.S.C. 1736b) is amended

23 by striking ‘‘1995’’ and inserting ‘‘2002’’.
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1 SEC. 426. REGULATIONS.

2 Section 409 of the Agricultural Trade Development

3 and Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.

4 SEC. 427. INDEPENDENT EVALUATION OF PROGRAMS.

5 Section 410 of the Agricultural Trade Development

6 and Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.

7 SEC. 428. AUTHORIZATION OF APPROPRIATIONS.

8 (a) IN GENERAL.—Section 412 of the Agricultural

9 Trade Development and Assistance Act of 1954 (7

10 U.S.C. 1736f) is amended—

11 (1) by striking subsections (b) and (c) and insert12 ing the following:

13 ‘‘(b) TRANSFER OF FUNDS.—Nothwithstanding any

14 other provision of law, the President may direct that—

15 ‘‘(1) up to 15 percent of the funds available for

16 any fiscal year for carrying out title I or III of this

17 Act be used to carry out any other title of this Act;

18 and

19 ‘‘(2) up to 100 percent of funds available for title

20 III be used to carry out title II.’’; and

21 (2) by redesignating subsections (d) and (e) as

22 subsections (c) and (d), respectively.

23 (b) RELATION TO OTHER WAIVER.—Section

24 204(a)(3) of the Agricultural Trade Development and As25 sistance Act of 1954 (7 U.S.C. 1724(a)(3)) is amended

26 by inserting ‘‘all authority to transfer from title I under
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1 section 412 has been exercised with respect to that fiscal

2 year and’’ after ‘‘any fiscal year if’’.

3 SEC. 429. COORDINATION OF FOREIGN ASSISTANCE PRO4 GRAMS.

5 Section 413 of the Agricultural Trade Development

6 and Assistance Act of 1954 (7 U.S.C. 1736g) is amended

7 by inserting ‘‘title III of’’ before ‘‘this Act’’ each place it

8 appears.

9 SEC. 430. USE OF CERTAIN LOCAL CURRENCY.

10 Title IV of the Agricultural Trade Development and

11 Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as

12 amended by section 222) is further amended by adding

13 at the end the following:

14 ‘‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

15 ‘‘Local currency payments received by the United

16 States pursuant to agreements entered into under title I

17 (as in effect on November 27, 1990) may be utilized by

18 the Secretary in accordance with section 108 (as in effect

19 on November 27, 1990).’’.

20 SEC. 431. LEVEL OF ASSISTANCE TO FARMER TO FARMER

21 PROGRAM.

22 Section 501(c) of the Agricultural Trade Develop23 ment and Assistance Act of 1954 (7 U.S.C. 1737(c)) is

24 amended—

25 (1) by striking ‘‘0.2’’ and inserting ‘‘0.4’’;
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1 (2) by striking ‘‘0.1’’ and inserting ‘‘0.2’’; and

2 (3) by striking ‘‘1991 through 1955’’ and insert3 ing ‘‘1996 through 2002’’.

4 SEC. 432. FOOD SECURITY COMMODITY RESERVE.

5 (a) FOOD SECURITY COMMODITY RESERVE ACT OF

6 1995.—The title heading of title III of the Agricultural

7 Act of 1980 (7 U.S.C. 1736f–1 note) is amended by

8 striking ‘‘FOOD SECURITY WHEAT RESERVE

9 ACT OF 1980’’ and inserting ‘‘FOOD SECURITY

10 COMMODITY RESERVE ACT OF 1995’’.

11 (b) SHORT TITLE.—Section 301 of the Act (7

12 U.S.C. 1736f–1 note) is amended by striking ‘‘Food Se13 curity Wheat Reserve Act of 1980’’ and inserting ‘‘Food

14 Security Commodity Reserve Act of 1995’’.

15 (c) IN GENERAL.—Section 302 of the Act (7 U.S.C.

16 1736f–1) is amended—

17 (1) in the section heading, by striking ‘‘FOOD

18 SECURITY WHEAT RESERVE’’ and insert19 ing ‘‘FOOD SECURITY COMMODITY RE20 SERVE’’;

21 (2) so that subsection (a) reads as follows:

22 ‘‘(a) IN GENERAL.—To provide for a reserve solely

23 to meet emergency humanitarian food needs in developing

24 countries, the Secretary shall establish a reserve stock of

25 wheat, rice, corn, or sorghum, or any combination of the
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1 commodities, totaling not more than 4,000,000 metric

2 tons for use as described in subsection (c).’’;

3 (3) so that subsection (b)(1) reads as follows:

4 ‘‘(b) COMMODITIES IN RESERVE.—

5 ‘‘(1) IN GENERAL.—The reserve established under

6 this section shall consist of—

7 ‘‘(A) wheat in the reserve established under

8 the Food Security Commodity Reserve Act of

9 1980 as of the date of enactment of the Food

10 For Peace Reauthorization Act of 1995;

11 ‘‘(B) wheat, rice, corn, and sorghum (re12 ferred to in this section as ‘eligible commod13 ities’) acquired in accordance with paragraph

14 (2) to replenish eligible commodities released

15 from the reserve, including wheat to replenish

16 wheat released from the reserve established

17 under the Food Security Wheat Reserve Act of

18 1980 but not replenished as of the date of en19 actment of the Food For Peace Reauthorization

20 Act of 1995; and

21 ‘‘(C) such rice, corn, and sorghum as the

22 Secretary of Agriculture (referred to in this sec23 tion as the ‘Secretary’) may, at such time and

24 in such manner as the Secretary determines ap25 propriate, acquire as a result of exchanging an
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1 equivalent value of wheat in the reserve estab2 lished under this section.’’;

3 (4) in subsection (b)(2)—

4 (A) by striking ‘‘(2)(A) Subject to’’ and in5 serting the following:

6 ‘‘(2) REPLENISHMENT OF RESERVE.—

7 ‘‘(A) IN GENERAL.—Subject to;

8 (B) in subparagraph (A)—

9 (i) by striking ‘‘(i) of this section stocks

10 of wheat’’ and inserting ‘‘(i) stocks of eligi11 ble commodities’’;

12 (ii) in clause (ii), by striking ‘‘stocks of

13 wheat’’ and inserting ‘‘stocks of eligible

14 commodities’’; and

15 (iii) in the second sentence, by striking

16 ‘‘wheat’’ and inserting ‘‘eligible commod17 ities’’; and

18 (C) in subpagraph (B)—

19 (i) by striking ‘‘(B) Not later’’ and in20 serting ‘‘(B) TIME FOR REPLENISHMENT

21 OF RESERVE.—Not later’’; and

22 (ii) in clause (ii), by striking ‘‘wheat’’

23 and inserting ‘‘eligible commodities’’;

24 (5) so that subsections (c) through (f) read as fol25 lows:
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1 ‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—

2 ‘‘(1) DETERMINATION.—If the Secretary deter3 mines that the amount of commodities allocated for

4 minimum assistance under section 204(a)(1) of the

5 Agricultural Trade Development and Assistance Act

6 of 1954 (7 U.S.C. 1724(a)(1)) less the amount of

7 commodities allocated for minimum non-emergency

8 assistance under section 204(a)(2) of the Act (7

9 U.S.C. 1724(a)(2)) will be insufficient to meet the

10 need for commodities for emergency assistance

11 under section 202(a) of the Act (7 U.S.C. 1722(a)),

12 the Secretary in any fiscal year may release from the

13 reserve—

14 ‘‘(A) up to 500,000 metric tons of wheat or

15 the equivalent value of eligible commodities

16 other than wheat; and

17 ‘‘(B) any eligible commodities which under

18 subparagraph (A) could have been released but

19 were not released in prior fiscal years.

20 ‘‘(2) AVAILABILITY OF COMMODITIES.—Commod21 ities released under paragraph (1) shall be made

22 available under title II of the Agricultural Trade De23 velopment and Assistance Act of 1954 (7 U.S.C.

24 1721 et seq.) for emergency assistance.
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1 ‘‘(3) EXCHANGE.—The Secretary may exchange

2 an eligible commodity for another United States

3 commodity of equal value, including powdered milk,

4 pulses, and vegetable oil.

5 ‘‘(4) USE OF NORMAL COMMERCIAL PRACTICES.—

6 To the maximum extend practicable consistent with

7 the fulfillment of the purposes of this section and

8 the effective and efficient administration of this sec9 tion, the Secretary shall use the usual and cus10 tomary channels, facilities, arrangements, and prac11 tices of the trade and commerce.

12 ‘‘(5) WAIVER OF MINIMUM TONNAGE REQUIRE13 MENTS.—Nothing in this subsection shall require

14 the exercise of the waiver under section 204(a)(3) of

15 the Agricultural Trade Development and Assistance

16 Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite

17 for the release of eligible commodities under this

18 subsection.

19 ‘‘(d) TRANSPORTATION AND HANDLING COSTS.—

20 ‘‘(1) IN GENERAL.—The cost of transportation

21 and handling of eligible commodities released from

22 the reserve established under this section shall be

23 paid by the Commodity Credit Corporation in ac24 cordance with section 406 of the Agricultural Trade
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1 Development and Assistance Act of 1954 (7 U.S.C.

2 1736).

3 ‘‘(2) REIMBURSEMENT.—

4 ‘‘(A) IN GENERAL.—The Commodity Credit

5 Corporation shall be reimbursed for the costs

6 incurred under paragraph (1) from the funds

7 made available to carry out the Agricultural

8 Trade Development and Assistance Act of 1954

9 (7 U.S.C. 1691 et seq.)

10 ‘‘(B) BASIS FOR REIMBURSEMENT.—The re11 imbursement shall be made on the basis of the

12 lesser of the actual cost incurred by the Com13 modity Credit Corporation less any savings

14 achieved as a result of decreased storage and

15 handling costs for the reserve.

16 ‘‘(C) DECREASED STORAGE AND HANDLING

17 COSTS.—For purposes of this subsection, ‘de18 creased storage and handling costs’ shall mean

19 the total actual costs for storage and handling

20 incurred by the Commodity Credit Corporation

21 for the reserve established under title III of the

22 Agricultural Act of 1980 in fiscal year 1995

23 less the total actual costs for storage and han24 dling incurred by the Corporation for the re-
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1 serve established under this Act in the fiscal

2 year for which the savings are calculated.

3 ‘‘(e) MANAGEMENT OF RESERVE.—The Secretary

4 shall provide for—

5 ‘‘(1) the management of eligible commodities in

6 the reserve as to location and quality of commodities

7 needed to meet emergency situations; and

8 ‘‘(2) the periodic rotation of eligible commodities

9 in the reserve to avoid spoilage and deterioration of

10 such stocks.

11 ‘‘(f) TREATMENT OF RESERVE UNDER OTHER

12 LAW.—Eligible commodities in the reserve established

13 under this section shall not be—

14 ‘‘(1) considered a part of the total domestic sup15 ply (including carryover) for the purpose of admin16 istering the Agricultural Trade Development and As17 sistance Act of 1954 (7 U.S.C. 1691 et seq.); and

18 ‘‘(2) subject to any quantitative limitation on ex19 ports that may be imposed under section 7 of the

20 Export Administration Act of 1979 (50 U.S.C. App.

21 2406).’’;

22 (6) in subsection (g)—

23 (A) by striking ‘‘(g)(1) The’’ and inserting

24 the following:
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1 ‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—

2 The’’;

3 (B) by striking ‘‘wheat’’ and inserting ‘‘an el4 igible commodity’’; and

5 (C) by striking paragraph (2);

6 (7) in subsection (h)—

7 (A) by striking ‘‘(h) Any’’ and inserting:

8 ‘‘(h) FINALITY OF DETERMINATION.—Any’’; and

9 (B) by striking ‘‘President or the Secretary

10 of Agriculture’’ and inserting ‘‘Secretary’’; and

11 (8) in subsection (i)—

12 (A) by striking ‘‘(i) The’’ and inserting:

13 ‘‘(i) TERMINATION OF AUTHORITY.—The’’;

14 (B) by striking ‘‘wheat’’ each place it appears

15 and inserting ‘‘eligible commodities’’; and

16 (C) by striking ‘‘1995’’ each place it appears

17 and inserting ‘‘2002’’.

18 (d) EFFECTIVE DATE.—Section 303 of the Act (7

19 U.S.C. 1736–1 note) is amended by striking ‘‘October 1,

20 1980’’ and all that follows through the end of the section

21 and inserting ‘‘on the date of enactment of this Act.’’.

22 (e) CONFORMING AMENDMENT.—Section 208(d)(2)

23 of the Agriculture Trade Suspension Adjustment Act of

24 1980 (7 U.S.C. 4001(d)(2)) is amended to read as fol25 lows:
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1 ‘‘(2) APPLICABILITY OF CERTAIN PROVISIONS.—

2 Subsections (b)(2), (c), (e), and (f) of section 302 of

3 the Food Security Commodity Reserve Act of 1995

4 shall apply to commodities in any reserve established

5 under paragraph (1), except that the references to

6 ‘eligible commodities’ in the subsections shall be

7 deemed to be references to ‘agricultural commod8 ities’.’’.

9 SEC. 423. FOOD FOR PROGRESS PROGRAM.

10 The Food for Progress Act of 1985 (7 U.S.C.

11 1736o) is amended—

12 (1) in subsection (b)—

13 (A) in paragraph (1)—

14 (i) by striking ‘‘(b)(1)’’ and inserting

15 ‘‘(b)’’; and

16 (ii) in the first sentence, by inserting

17 ‘‘intergovernmental organizations’’ after

18 ‘‘cooperatives’’; and

19 (B) by striking paragraph (2);

20 (2) in subsection (e)(4), by striking ‘‘203’’ and in21 serting ‘‘406’’;

22 (3) in subsection (f)—

23 (A) in paragraph (1), by striking ‘‘in the case

24 of the independent states of the former Soviet

25 Union,’’;
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1 (B) by striking paragraph (2);

2 (C) in paragraph (4), by inserting ‘‘in each

3 of fiscal years 1996 through 2002’’ after ‘‘may

4 be used’’; and

5 (D) by redesignating paragraphs (3) through

6 (5) as paragraphs (2) through (4), respectively;

7 (4) in subsection (g), by striking ‘‘1995’’ and in8 serting ‘‘2002’’;

9 (5) in subsection (j), by striking ‘‘shall’’ and in10 serting ‘‘may’’;

11 (6) in subsection (k), by striking ‘‘1995’’ and in12 serting ‘‘2002’’;

13 (7) in subsection (l)(1)—

14 (A) by striking ‘‘1991 through 1995’’ and in15 serting ‘‘1996 through 2002’’; and

16 (B) by inserting ‘‘, and to provide technical

17 assistance for monetization programs,’’ after

18 ‘‘monitoring of food assistance programs’’; and

19 (8) in subsection (m)—

20 (A) by striking ‘‘with respect to the inde21 pendent states of the former Soviet Union’’;

22 (B) by striking ‘‘private voluntary organiza23 tions and cooperatives’’ each place it appears

24 and inserting ‘‘agricultural trade organizations,
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1 intergovernmental organizations, private vol2 untary organizations, and cooperatives’’; and

3 (C) in paragraph (2), by striking ‘‘in the

4 independent states’’.

5 Subtitle C—Amendments to Agricultural Trade Act

6 of 1978

7 SEC. 451. AGRICULTURAL EXPORT PROMOTION STRATEGY.

8 (a) IN GENERAL.—Section 103 of the Agricul9 tural Trade Act of 1978 (7 U.S.C. 5603) is amended to

10 read as follows:

11 ‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

12 ‘‘(a) IN GENERAL.—The Secretary shall develop a

13 strategy for implementing Federal agricultural export

14 promotion programs that takes into account the new

15 market opportunities for agricultural products, including

16 opportunities that result from—

17 ‘‘(1) the North American Free Trade Agreement

18 and the Uruguay Round Agreements;

19 ‘‘(2) any accession to membership in the World

20 Trade Organization;

21 ‘‘(3) the continued economic growth in the Pacific

22 Rim; and

23 ‘‘(4) other developments.

24 ‘‘(b) PURPOSE OF STRATEGY.—The strategy devel25 oped under subsection (a) shall encourage the mainte-
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1 nance, development, and expansion of export markets for

2 United States agricultural commodities and related prod3 ucts, including high-value and value-added products.

4 ‘‘(c) GOALS OF STRATEGY.—The strategy developed

5 under subsection (a) shall have the following goals:

6 ‘‘(1) By September 30, 2002, increasing the value

7 of annual United States agricultural exports to

8 $60,000,000,000.

9 ‘‘(2) By September 30, 2002, increasing the Unit10 ed States share of world export trade in agricultural

11 products significantly above the average United

12 States share from 1993 through 1995.

13 ‘‘(3) By September 30, 2002, increasing the Unit14 ed States share of world trade in high-value agricul15 tural products to 20 percent.

16 ‘‘(4) Ensuring that the value of United States ex17 ports of agricultural products increases at a faster

18 rate than the rate of increase in the value of overall

19 world export trade in agricultural products.

20 ‘‘(5) Ensuring that the value of United States ex21 ports of high-value agricultural products increases at

22 a faster rate than the rate of increase in overall

23 world export trade in high-value agricultural prod24 ucts.

25 ‘‘(6) Ensuring to the extent practicable that—
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1 ‘‘(A) substantially all obligations undertaken

2 in the Uruguay Round Agreement on Agri3 culture that provide significantly increased ac4 cess for United States agricultural commodities

5 are implemented to the extent required by the

6 Uruguay Round Agreements; or

7 ‘‘(B) applicable United States trade laws are

8 used to secure United States rights under the

9 Uruguay Round Agreement on Agriculture.

10 ‘‘(d) PRIORITY MARKETS.—

11 ‘‘(1) IDENTIFICATION OF MARKETS.—In develop12 ing the strategy required under subsection (a), the

13 Secretary shall identify as priority markets—

14 ‘‘(A) those markets in which imports of agri15 cultural products show the greatest potential

16 for increase by September 30, 2002; and

17 ‘‘(B) those markets in which, with the assist18 ance of Federal export promotion programs, ex19 ports of United States agricultural products

20 show the greatest potential for increase by Sep21 tember 30, 2002.

22 ‘‘(2) IDENTIFICATION OF SUPPORTING OFFICES.—

23 The President shall identify annually in the budget

24 of the United States Government submitted under

25 section 1105 of title 31, United States Code, each
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1 overseas office of the Foreign Agricultural Service

2 that provides assistance to United States exporters

3 in each of the priority markets identified under

4 paragraph (1).

5 ‘‘(e) REPORT.—Not later than December 31, 2001,

6 the Secretary shall prepare and submit a report to Con7 gress assessing progress in meeting the goals established

8 by subsection (c).

9 ‘‘(f) FAILURE TO MEET GOALS.—Notwithstanding

10 any other law, if the Secretary determines that more than

11 2 of the goals established by subsection (c) are not met

12 by September 30, 2002, the Secretary may not carry out

13 agricultural trade programs under the Agricultural Trade

14 Act of 1978 (7 U.S.C. 5601 et seq.) as of that date.

15 ‘‘(g) NO PRIVATE RIGHT OF ACTION.—This section

16 shall not create any private right of action.’’.

17 (b) CONTINUATION OF FUNDING.—

18 (1) IN GENERAL.—If the Secretary of Agriculture

19 makes a determination under section 103(f) of the

20 Agricultural Trade Act of 1978 (as amended by sub21 section (a)), the Secretary shall utilize funds of the

22 Commodity Credit Corporation to promote United

23 States agricultural exports in a manner consistent

24 with the Commodity Credit Corporation Chapter Act
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1 (15 U.S.C. 714 et seq.) and obligations pursuant to

2 the Uruguay Round Agreements.

3 (2) FUNDING.—The amount of Commodity Credit

4 Corporation funds used to carry out paragraph (1)

5 during a fiscal year shall not exceed the total outlays

6 for agricultural trade programs under the Agricul7 tural Trade Act of 1978 (7 U.S.C. 5601 et seq.)

8 during fiscal year 2002.

9 (c) ELIMINATION OF REPORT.—

10 (1) IN GENERAL.—Section 601 of the Agricultural

11 Trade Act of 1978 ( 7 U.S.C. 5711) is repealed.

12 (2) CONFORMING AMENDMENT.—The last sen13 tence of section 603 of the Agricultural Trade Act

14 of 1978 (7 U.S.C. 5713) is amendment by striking

15 ‘‘, in a consolidated report,’’ and all that follows

16 through ‘‘section 601’’ and inserting ‘‘ or in a con17 solidated report’’.

18 SEC. 452. EXPORT CREDITS.

19 (a) EXPORT CREDIT GUARANTEE PROGRAM.—Sec20 tion 202 of the Agricultural Trade Act of 1978 ( 7

21 U.S.C. 5622) is amended—

22 (1) in subsection (a)—

23 (A) by striking ‘‘GUARANTEES.—The’’ and

24 inserting the following ‘‘GUARANTEES.—

25 ‘‘(1) IN GENERAL.—The’’; and
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1 (B) by adding at the end the following:

2 ‘‘(2) SUPPLIER CREDITS.—In carrying out this

3 section, the Commodity credit Corporation may issue

4 guarantees for the repayment of credit made avail5 able for a period of not more than 180 days by a

6 United States exporter to a buyer in a foreign coun7 try.’’;

8 (2) in subsection (f)—

9 (A) by striking ‘‘(f) RESTRICTIONS.—The’’

10 and inserting the following:

11 ‘‘(f) Restrictions.—

12 ‘‘(1) IN GENERAL.—The’’; and

13 (B) by adding at the end the following:

14 ‘‘(2) CRITERIA FOR DETERMINATION.—In mak15 ing the determination required under paragraph (1)

16 with respect to credit guarantees under subsection

17 (b) for a country, the Secretary may consider, in ad18 dition to financial, macroeconomic, and monetary in19 dicators—

20 ‘‘(A) whether an International Monetary

21 Fund standby agreement, Paris Club reschedul22 ing plan, or other economic restructuring plan

23 is in place with respect to the country;

24 ‘‘(B) the convertibility of the currency of

25 the country;
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1 ‘‘(C) whether the country provides ade2 quate legal protection for foreign investments;

3 ‘‘(D) whether the country has viable finan4 cial markets;

5 ‘‘(E) whether the country provides ade6 quate legal protection for the private property

7 rights of citizens of the country; and

8 ‘‘(F) any other factors that are relevant to

9 the ability of the country to service the debt of

10 the country.’’;

11 (3) by striking subsection (h) and inserting the

12 following:

13 ‘‘(h) UNITED STATES AGRICULTURAL COMPO14 NENTS.—The Commodity Credit Corporation shall fi15 nance or guarantee under this section only United States

16 agricultural commodities.’’;

17 (4) in subsection (i)—

18 (A) by striking ‘‘INSTITUTIONS.—A finan19 cial’’ and inserting the following: ‘‘INSTITU20 TIONS.—

21 ‘‘(1) IN GENERAL.—A financial’’;

22 (B) by striking paragraph (1);

23 (C) by striking ‘‘(2) is’’ and inserting the

24 following:

25 ‘‘(A) is’’;
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1 (D) by striking ‘‘(3) is’’ and inserting the

2 following:

3 ‘‘(B) is’’; and

4 (E) by adding at the end the following:

5 ‘‘(2) THIRD COUNTRY BANKS.—The Commodity

6 Credit Corporation may guarantee under subsections

7 (a) and (b) the repayment of credit made available

8 to finance an export sale irrespective of whether the

9 obligor is located in the country to which the export

10 sale is destined.’’; and

11 (5) by striking subsection (k) and inserting the

12 following:

13 ‘‘(k) PROCESSED AND HIGH-VALUE PRODUCTS.—

14 ‘‘(1) IN GENERAL.—In issuing export credit

15 guarantees under this section, the Commodity Credit

16 Corporation shall, subject to paragraph (2), ensure

17 that not less than 25 percent for each of fiscal years

18 1996 and 1997, 30 percent for each of fiscal years

19 1998 and 1999, and 35 percent of each of fiscal

20 years 2000, 2001, and 2002, of the total amount of

21 credit guarantees issued for a fiscal year is issued to

22 promote the export of processed or high-value agri23 cultural products and that the balance is issued to

24 promote the export of bulk or raw agricultural com25 modities.
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1 ‘‘(2) LIMITATION.—The percentage requirement

2 of paragraph (1) shall apply for a fiscal year to the

3 extent that a reduction in the total amount of credit

4 guarantees issued for the fiscal year is not required

5 to meet the percentage requirement.’’.

6 (b) FUNDING LEVELS.—Section 211(b) of the Ag7 ricultural Trade Act of 1978 (7 U.S.C. 5641(b)) is

8 amended—

9 (1) by striking paragraph (2);

10 (2) by redesignating subparagraph (B) of para11 graph (1) as paragraph (2) and indenting the mar12 gin of paragraph (2) (as so redesignated) so as to

13 align with the margin of paragraph (1); and

14 (3) by striking paragraph (1) and inserting the

15 following:

16 ‘‘(1) EXPORT CREDIT GUARANTEES.—The

17 Commodity Credit Corporation shall make available

18 for each of fiscal years 1996 through 2002 not less

19 than $5,500,000,000 in credit guarantees under

20 subsections (a) and (b) of section 202.’’.

21 (c) DEFINITIONS.—Section 102(7) of the Agricul22 tural Trade Act of 1978 (7 U.S.C. 5602(7)) is amended

23 by striking subparagraphs (A) and (B) and inserting the

24 following:
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1 ‘‘(A) an agricultural commodity or product

2 entirely produced in the United States; or

3 ‘‘(B) a product of an agricultural commod4 ity—

5 ‘‘(i) 90 percent or more of the agricul6 tural components of which by weight, ex7 cluding packaging and added water, is en8 tirely produced in the United States; and

9 ‘‘(ii) that the Secretary determines to

10 be a United States high value agricultural

11 product.’’.

12 (d) REGULATIONS.—Not later than 180 days

13 after the effective date of this title, the Secretary of agri14 culture shall issue regulations to carry out the amend15 ments made by this section.

16 SEC. 453. EXPORT PROGRAM AND FOOD ASSISTANCE

17 TRANSFER AUTHORITY.

18 The Secretary of Agriculture shall fully utilize and

19 aggressively implement the full range of agricultural ex20 port programs authorized in this Act and any other Act,

21 in any combination, to help United States agriculture

22 maintain and expand export markets, promote United

23 States agricultural commodity and product exports,

24 counter subsidized foreign competition, and capitalize on

25 potential new market opportunities. Consistent with Unit-
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1 ed States obligations under GATT, if the Secretary de2 termines that funds available under 1 or more export

3 subsidy programs cannot be fully or effectively utilized

4 for such programs, the Secretary may utilize such funds

5 for other authorized agricultural export and food assist6 ance programs to achieve the above objectives and to fur7 ther enhance the overall global competitiveness of United

8 States agriculture. Funds so utilized shall be in addition

9 to funds which may otherwise be authorized or appro10 priated for such other agricultural export programs.

11 SEC. 454. ARRIVAL CERTIFICATION.

12 Section 401 of the Agricultural Trade Act of 1978

13 (7 U.S.C. 5662(a)) is amended by striking subsection (a)

14 and inserting the following:

15 ‘‘(a) ARRIVAL CERTIFICATION.—With respect to a

16 commodity provided, or for which financing or a credit

17 guarantee or other assistance is made available, under a

18 program authorized in section 201, 202, or 301, the

19 Commodity Credit Corporation shall require the exporter

20 of the commodity to maintain records of an official or

21 customary commercial nature or other documents as the

22 Secretary may require, and shall allow representatives of

23 the Commodity Credit Corporation access to the records

24 or documents as needed, to verify the arrival of the com-
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1 modity in the country that was the intended destination

2 of the commodity.’’.

3 SEC. 455. REGULATIONS.

4 Section 404 of the Agricultural Trade Act of 1978

5 (7 U.S.C. 5664) is repealed.

6 SEC. 456. FOREIGN AGRICULTURAL SERVICE.

7 Section 503 of the Agricultural Trade Act of 1978

8 (7 U.S.C. 5693) is amended to read as follows:

9 ‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL10 TURAL SERVICE.

11 ‘‘The Service shall assist the Secretary in carrying

12 out the agricultural trade policy and international co13 operation policy of the United States by—

14 ‘‘(1) acquiring information pertaining to agricul15 tural trade;

16 ‘‘(2) carrying out market promotion and develop17 ment activities;

18 ‘‘(3) providing agricultural technical assistance

19 and training; and

20 ‘‘(4) carrying out the programs authorized under

21 this Act, the Agricultural Trade Development and

22 Assistance Act of 1954 (7 U.S.C. 1691 et seq.), and

23 other Acts.’’.
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1 SEC. 457. REPORTS.

2 The first sentence of section 603 of the Agricultural

3 Trade Act of 1978 (7 U.S.C. 5713) is amended by strik4 ing ‘‘The’’ and inserting ‘‘Subject to section 217 of the

5 Department of Agriculture Reorganization Act of 1994

6 (7 U.S.C. 6917), the’’.

7 Subtitle D—Miscellaneous

8 SEC. 471. REPORTING REQUIREMENTS RELATING TO TO9 BACCO.

10 Section 214 of the Tobacco Adjustment Act of 1983

11 (7 U.S.C. 509) is repealed.

12 SEC. 472. TRIGGERED EXPORT ENHANCEMENT.

13 (a) READJUSTMENT OF SUPPORT LEVELS.—Section

14 1302 of the Omnibus Budget Reconciliation Act of 1990

15 (Public Law 101–508; 7 U.S.C. 1421 note) is repealed.

16 (b) TRIGGERED MARKETING LOANS AND EXPORT

17 ENHANCEMENT.—Section 4301 of the Omnibus Trade

18 and Competitiveness Act of 1988 (Public Law 100–418;

19 7 U.S.C. 1446 note) is repealed.

20 (c) EFFECTIVE DATE.—The amendments made by

21 this section shall be effective beginning with the 1996

22 crops of wheat, feed grains, upland cotton, and rice.

23 SEC. 473. DISPOSITION OF COMMODITIES TO PREVENT

24 WASTE.

25 Section 416 of the Agricultural Act of 1949 (7

26 U.S.C. 1431) is amended—
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1 (1) in subsection (b)—

2 (A) in paragraph (1), by inserting after the

3 first sentence the following: ‘‘The Secretary

4 may use funds of the Commodity Credit Cor5 poration to cover administrative expenses of the

6 programs.’’;

7 (B) in paragraph (7)(D)(iv), by striking ‘‘one

8 year of acquisition’’ and all that follows and in9 serting the following: ‘‘a reasonable length of

10 time, as determined by the Secretary, except

11 that the Secretary may permit the use of pro12 ceeds in a country other than the country of or13 igin—

14 ‘‘(I) as necessary to expedite the transpor15 tation of commodities and products furnished

16 under this subsection; or

17 ‘‘(II) if the proceeds are generated in a cur18 rency generally accepted in the other country.’’;

19 (C) in paragraph (8), by striking subpara20 graph (C); and

21 (D) by striking paragraphs (10), (11), and

22 (12); and

23 (2) by striking subsection (c).
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1 SEC. 474. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

2 (a) IN GENERAL.—Section 1517 of the Food, Agri3 culture, Conservation, and Trade Act of 1990 (7 U.S.C.

4 1706) is repealed.

5 (b) CONFORMING AMENDMENT.—Subsection (e)(3)

6 of the Food for Progress Act of 1985 (7 U.S.C.

7 1736o(e)(3)) is amended by striking ‘‘section 106’’ and

8 inserting ‘‘section 103’’.

9 SEC. 475. POLICY ON EXPANSION OF INTERNATIONAL MAR10 KETS.

11 Section 1207 of the Agriculture and Food Act of

12 1981 (7 U.S.C. 1736m) is repealed.

13 SEC. 476. POLICY ON MAINTENANCE AND DEVELOPMENT

14 OF EXPORT MARKETS.

15 Section 1121 of the Food Security Act of 1985 (7

16 U.S.C. 1736p) is amended—

17 (1) by striking subsection (a); and

18 (2) in subsection (b)—

19 (A) by striking ‘‘(b)’’; and

20 (B) by striking paragraphs (1) through (4)

21 and inserting the following:

22 ‘‘(1) be the premier supplier of agricultural and

23 food products to world markets and expand exports

24 of high value products;
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1 ‘‘(2) support the principle of free trade and the

2 promotion of fair trade in agricultural commodities

3 and products;

4 ‘‘(3) cooperate fully in all efforts to negotiate with

5 foreign countries further reductions in tariff and

6 nontariff barriers to trade, including sanitary and

7 phytosanitary measures and trade-distorting sub8 sidies;

9 ‘‘(4) aggressively counter unfair foreign trade

10 practices as a means of encouraging fairer trade;’’.

11 SEC. 477. POLICY ON TRADE LIBERALIZATION.

12 Section 1122 of the Food Security Act of 1985 (7

13 U.S.C. 1736q) is repealed.

14 SEC. 478. AGRICULTURAL TRADE NEGOTIATIONS.

15 Section 1123 of the Food Security Act of 1985 (7

16 U.S.C. 1736r) is amended to read as follows:

17 ‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY.

18 ‘‘(a) FINDINGS.—Congress finds that—

19 ‘‘(1) on a level playing field, United States pro20 ducers are the most competitive suppliers of agricul21 tural products in the world;

22 ‘‘(2) exports of United States agricultural prod23 ucts will account for $54,000,000,000 in 1995, con24 tributing a net $24,000,000,000 to the merchandise
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1 trade balance of the United States and supporting

2 approximately 1,000,000 jobs;

3 ‘‘(3) increased agricultural exports are critical to

4 the future of the farm, rural, and overall United

5 States economy, but the opportunities for increased

6 agricultural exports are limited by the unfair sub7 sidies of the competitors of the United States, and

8 a variety of tariff and nontariff barriers to highly

9 competitive United States agricultural products;

10 ‘‘(4) international negotiations can play a key role

11 in breaking down barriers to United States agricul12 tural exports;

13 ‘‘(5) the Uruguay Round Agreement on Agri14 culture made significant progress in the attainment

15 of increased market access opportunities for United

16 States exports of agricultural products, for the first

17 time—

18 ‘‘(A) restraining foreign trade-distorting do19 mestic support and export subsidy programs;

20 and

21 ‘‘(B) developing common rules for the appli22 cation of sanitary and phytosanitary restric23 tions;
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1 that should result in increased exports of United

2 States agricultural products, jobs, and income

3 growth in the United States;

4 ‘‘(6) the Uruguay Round Agreement on Agri5 culture did not succeed in completely eliminating

6 trade distorting domestic support and export sub7 sidies by—

8 ‘‘(A) allowing the European Union to con9 tinue unreasonable levels of spending on export

10 subsidies; and

11 ‘‘(B) failing to discipline monopolistic state

12 trading entities, such as the Canadian Wheat

13 Board, that use nontransparent and discrimina14 tory pricing as a hidden de facto export sub15 sidy;

16 ‘‘(7) during the period 1996 through 2002, there

17 will be several opportunities for the United States to

18 negotiate fairer trade in agricultural products, in19 cluding further negotiations under the World Trade

20 Organization, and steps toward possible free trade

21 agreements of the Americas and Asian-Pacific Eco22 nomic Cooperation (APEC); and

23 ‘‘(8) the United States should aggressively use

24 these opportunities to achieve more open and fair

25 opportunities for trade in agricultural products.
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1 ‘‘(b) GOALS OF THE UNITED STATES IN AGRICUL2 TURAL TRADE NEGOTIATIONS.—The objectives of the

3 United States with respect to future negotiations on agri4 culture trade include—

5 ‘‘(1) increasing opportunities for United States

6 exports of agricultural products by eliminating tariff

7 and nontariff barriers to trade;

8 ‘‘(2) leveling the playing field for United States

9 producers of agricultural products by limiting per

10 unit domestic production supports to levels that are

11 no greater than those available in the United States;

12 ‘‘(3) ending the practice of export dumping by

13 eliminating all trade distorting export subsidies and

14 disciplining state trading entities so that they do not

15 (except in cases of bona fide food aid) sell in foreign

16 markets at below domestic market prices nor their

17 full costs of acquiring and delivering agricultural

18 products to the foreign markets; and

19 ‘‘(4) encouraging government policies that avoid

20 price-depressing surpluses.’’.

21 SEC. 479. POLICY ON UNFAIR TRADE PRACTICES.

22 Section 1164 of the Food Security Act of 1985

23 (Public Law 99–198; 99 Stat. 1499) is repealed.
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1 SEC. 480. AGRICULTURAL AID AND TRADE MISSIONS.

2 (a) IN GENERAL.—The Agricultural Aid and Trade

3 Missions Act (7 U.S.C. 1736bb et seq.) is repealed.

4 (b) CONFORMING AMENDMENT.—Section 7 of Public

5 Law 100–277 (7 U.S.C. 1736bb note) is repealed.

6 SEC. 481. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

7 Section 108(b)(1)(B) of the Agricultural Act of

8 1954 (7 U.S.C. 1748(b)(1)(B)) is amended by striking

9 ‘‘including fruits, vegetables, legumes, popcorn, and

10 ducks’’.

11 SEC. 482. WORLD LIVESTOCK MARKET PRICE INFORMA12 TION.

13 Section 1545 of the Food, Agriculture, Conservation,

14 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

15 1761 note) is repealed.

16 SEC. 483. ORDERLY LIQUIDATION OF STOCKS.

17 Sections 201 and 207 of the Agricultural Act of

18 1956 (7 U.S.C. 1851 and 1857) are repealed.

19 SEC. 484. SALES OF EXTRA LONG STAPLE COTTON.

20 Section 202 of the Agricultural Act of 1956 (7

21 U.S.C. 1852) is repealed.

22 SEC. 485. REGULATIONS.

23 Section 707 of the Freedom for Russia and Emerg24 ing Eurasian Democracies and Open Markets Support

25 Act of 1992 (Public Law 102–511; 7 U.S.C. 5621 note)

26 is amended by striking subsection (d).
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1 SEC. 486. EMERGING MARKETS.

2 (a) PROMOTION OF AGRICULTURAL EXPORTS TO

3 EMERGING MARKETS.—

4 (1) EMERGING MARKETS.—Section 1542 of the

5 Food, Agriculture, Conservation, and Trade Act of

6 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is

7 amended—

8 (A) in the section heading, by striking

9 ‘‘EMERGING DEMOCRACIES’’ and in10 serting ‘‘EMERGING MARKETS’’;

11 (B) by striking ‘‘emerging democracies’’ each

12 place it appears in subsections (b), (d), and (e)

13 and inserting ‘‘emerging markets’’;

14 (C) by striking ‘‘emerging democracy’’ each

15 place it appears in subsection (c) and inserting

16 ‘‘emerging market’’; and

17 (D) by striking subsection (f) and inserting

18 the following:

19 ‘‘(f) EMERGING MARKET.—In this section and sec20 tion 1543, the term ‘emerging market’ means any coun21 try that the Secretary determines—

22 ‘‘(1) is taking steps toward a market-oriented

23 economy through the food, agriculture, or rural busi24 ness sectors of the economy of the country; and

25 ‘‘(2) has the potential to provide a viable and sig26 nificant market for United States agricultural com-
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1 modities or products of United States agricultural

2 commodities.’’.

3 (2) FUNDING.—Section 1542 of the Food, Agri4 culture, Conservation, and Trade Act of 1990 is

5 amended by striking subsection (a) and inserting the

6 following:

7 ‘‘(a) FUNDING.—The Commodity Credit Corporation

8 shall make available for fiscal years 1996 through 2002

9 not less than $1,000,000,000 of direct credits or export

10 credit guarantees for exports to emerging markets under

11 section 201 or 202 of the Agricultural Trade Act of 1978

12 (7 U.S.C. 5621 and 5622), in addition to the amounts

13 acquired or authorized under section 211 of the Act (7

14 U.S.C. 5641) for the program.’’.

15 (3) AGRICULTURAL FELLOWSHIP PROGRAM.—Sec16 tion 1542 of the Food, Agriculture, Conservation,

17 and Trade Act of 1990 is amended—

18 (A) in subsection (b), by striking the last

19 sentence and inserting the following: ‘‘The

20 Commodity Credit Corporation shall give prior21 ity under this subsection to—

22 ‘‘(A) projects that encourage the privatiza23 tion of the agricultural sector or that benefit

24 private farms or cooperatives in emerging mar25 kets; and
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1 ‘‘(B) projects for which nongovernmental per2 sons agree to assume a relatively larger share

3 of the costs.’’; and

4 (B) in subsection(d)—

5 (i) in the matter preceding paragraph

6 (1), by striking ‘‘the Soviet Union’’ and in7 serting ‘‘emerging markets’’;

8 (ii) in paragraph (1)—

9 (I) in subparagraph (A)(i)—

10 (aa) by striking ‘‘1995’’ and

11 inserting ‘‘2002’’; and

12 (bb) by striking ‘‘those sys13 tems, and identify’’ and inserting

14 ‘‘the systems, including potential

15 reductions in trade barriers, and

16 identify and carry out’’;

17 (II) in subparagraph (B), by strik18 ing ‘‘shall’’ and inserting ‘‘may’’;

19 (III) in subparagraph (D), by in20 serting ‘‘(including the establishment

21 of extension services)’’ after ‘‘tech22 nical assistance’’;

23 (IV) by striking subparagraph (F);
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1 (V) by redesignating subparagraphs

2 (G)(H), and (I) as subparagraphs

3 (F), (G), and (H), respectively; and

4 (VI) in subparagraph (H) (as re5 designated by subclause (V)), by strik6 ing ‘‘$10,000,000’’ and inserting

7 ‘‘$20,000,000’’;

8 (iii) in paragraph (2)—

9 (I) by striking ‘‘the Soviet Union’’

10 each place it appears and inserting

11 ‘‘emerging markets’’;

12 (II) in subparagraph (A), by strik13 ing ‘‘a free market food production

14 and distribution system’’ and insert15 ing ‘‘free market food production and

16 distribution systems’’;

17 (III) in subparagraph (B)—

18 (aa) in clause (i), by striking

19 ‘‘Government’’ and inserting

20 ‘‘governments’’;

21 (bb) in clause (iii)(II), by

22 striking ‘‘and’’ at the end;

23 (cc) in clause (iii)(III), by

24 striking the period at the end

25 and inserting ‘‘; and’’; and
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1 (dd) by adding at the end of

2 clause (iii) the following:

3 ‘‘(IV) to provide for the exchange of

4 administrators and faculty members

5 from agricultural and other institu6 tions to strengthen and revise edu7 cational programs in agricultural eco8 nomics, agribusiness, and agrarian

9 law, to support change towards a free

10 market economy in emerging mar11 kets.’’;

12 (IV) by striking subparagraph (D);

13 and

14 by redesignating subparagraph (E)

15 as subparagraph (D); and

16 (iv) by striking paragraph (3).

17 (4) UNITED STATES AGRICULTURAL COMMOD18 ITY.—Subsections (b) and (c) of section 1542 of the

19 Food, Agriculture, Conservation, and Trade Act of

20 1990 are amended by striking ‘‘section 101(6)’’ each

21 place it appears and inserting ‘‘section 102(7)’’.

22 (5) REPORT.—The first sentence of section

23 1542(e)(2) of the Food, Agriculture, Conservation,

24 and Trade Act of 1990 is amended by striking

25 ‘‘Not’’ and inserting ‘‘Subject to section 217 of the
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1 Department of Agriculture Reorganization Act of

2 1994 (7 U.S.C. 6917), not’’.

3 (b) AGRICULTURAL FELLOWSHIP PROGRAM FOR

4 MIDDLE INCOME COUNTRIES, EMERGING DEMOCRACIES,

5 AND EMERGING MARKETS.—Section 1543 of the Food,

6 Agriculture, Conservation, and Trade Act of 1990 (7

7 U.S.C. 3293) is amended—

8 (1) in the section heading, by striking ‘‘MID9 DLE INCOME COUNTRIES AND EMERG10 ING DEMOCRACIES’’ and inserting ‘‘MID11 DLE INCOME COUNTRIES, EMERGING

12 DEMOCRACIES, AND EMERGING MAR13 KETS’’;

14 (2) in subsection (b), by adding at the end the fol15 lowing:

16 ‘‘(5) EMERGING MARKET.—Any emerging market,

17 as defined in section 1542(f).’’; and

18 (3) in subsection (c)(1), by striking ‘‘food needs’’

19 and inserting ‘‘food and fiber needs’’.

20 (c) CONFORMING AMENDMENTS.—

21 (1) Section 501 of the Agricultural Trade Devel22 opment and Assistance Act of 1954 (7 U.S.C. 1737

23 is amended—
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1 (A) in subsection (a), by striking ‘‘emerging

2 democracies’’ and inserting ‘‘emerging mar3 kets’’; and

4 (B) in subsection (b), by striking paragraph

5 (1) and inserting the following:

6 ‘‘(1) EMERGING MARKET.—The term ‘emerging

7 market’ means any country that the Secretary deter8 mines—

9 (A) is taking steps toward a market-oriented

10 economy through the food, agriculture, or rural

11 business sectors of the economy of the country;

12 and

13 ‘‘(B) has the potential to provide a viable and

14 significant market for United States agricul15 tural commodities or products of United States

16 agricultural commodities.’’.

17 (2) Section 201(d)(1)(C)(ii) of the Agricultural

18 Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is

19 amended by striking ‘‘emerging democracies’’ and

20 inserting ‘‘emerging markets’’.

21 (3) Section 202(d)(3)(B) of the Agricultural

22 Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is

23 amended by striking ‘‘emerging democracies’’ and

24 inserting ‘‘emerging markets’’.
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1 SEC. 487. IMPLEMENTATION OF COMMITMENTS UNDER

2 URUGUAY ROUND AGREEMENTS.

3 Part III of subtitle A of title IV of the Uruguay

4 Round Agreements Act (Public Law 103–465; 108 Stat.

5 4964) is amended by adding at the end the following:

6 ‘‘SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER

7 URUGUAY ROUND AGREEMENTS

8 ‘‘Not later than September 30 of fiscal year, the

9 Secretary of Agriculture shall determine whether the obli10 gations undertaken by foreign countries under the Uru11 guay Round Agreement on Agriculture are being fully

12 implemented. If the Secretary of Agriculture determines

13 that any foreign country, by not implementing the obliga14 tions of the country, is significantly constraining an op15 portunity for United States agricultural exports, the Sec16 retary shall—

17 ‘‘(1) submit to the United States Trade Representa18 tive a recommendation as to whether the President

19 should take action under any provision of law; and

20 ‘‘(2) transmit a copy of the recommendation to

21 the Committee on Agriculture, the Committee on

22 International Relations, and the Committee on Ways

23 and Means, of the House of Representatives and the

24 Committee on Agriculture, Nutrition, and Forestry,

25 and the Committee on Finance, of the Senate.’’.
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1 SEC. 488. SENSE OF CONGRESS CONCERNING MULTILAT2 ERAL DISCIPLINES ON CREDIT GUARANTEES.

3 It is the sense of Congress that—

4 (1) in negotiations to establish multilateral dis5 ciplines on agricultural export credits and credit

6 guarantees, the United States should not agree to

7 any arrangement that is incompatible with the provi8 sions of United States law that authorize agricul9 tural export credits and credit guarantees;

10 (2) in the negotiations (which are held under the

11 auspices of the Organization for Economic Coopera12 tion and Development), the United States should not

13 reach any agreement that fails to impose disciplines

14 on the practices of foreign government trading enti15 ties such as the Australian Wheat Board and Cana16 dian Wheat Board; and

17 (3) the disciplines should include greater openness

18 in the operations of the entities as long as the enti19 ties are subsidized by the foreign government or

20 have monopolies for exports of a commodity that are

21 sanctioned by the foreign government.

22 SEC. 489. FOREIGN MARKET DEVELOPMENT COOPERATOR

23 PROGRAM.

24 The Agricultural Trade Act of 1978 (7 U.S.C. 5601

25 et seq.) is amended by adding at the end the following:
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1 ‘‘TITLE VII—FOREIGN MARKET

2 DEVELOPMENT COOPERATOR

3 PROGRAM

4 ‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZA5 TION.

6 ‘‘In this title, the term ‘eligible trade organization’

7 means a United States trade organization that—

8 ‘‘(1) promotes the export of 1 or more United

9 States agricultural commodities or products; and

10 ‘‘(2) does not have a business interest in or re11 ceive remuneration from specific sales of agricultural

12 commodities or products.

13 ‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR

14 PROGRAM.

15 ‘‘(a) IN GENERAL.—The Secretary shall establish

16 and, in cooperation with eligible trade organizations,

17 carry out a foreign market development cooperator pro18 gram to maintain and develop foreign markets for United

19 States agricultural commodities and products.

20 ‘‘(b) ADMINISTRATION.—Funds made available to

21 carry out this title shall be used only to provide—

22 ‘‘(1) cost-share assistance to an eligible trade or23 ganization under a contract or agreement with the

24 organization; and
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1 ‘‘(2) assistance for other costs that are necessary

2 or appropriate to carry out the foreign market devel3 opment cooperator program, including contingent li4 abilities that are not otherwise funded.

5 ‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

6 ‘‘There are authorized to be appropriated to carry

7 out this title such sums as may be necessary for each of

8 fiscal years 1996 through 2002.’’.

9 Subtitle E—Dairy Exports

10 SEC. 491. DAIRY EXPORT INCENTIVE PROGRAM

11 (a) IN GENERAL.—Section 153(c) of the Food Se12 curity Act of 1985 (15 U.S.C. 713a–14(c)) is amended—

13 (1) by striking ‘‘and’’ at the end of paragraph

14 (1);

15 (2) by striking the period at the end of para16 graph (2) and inserting ’’;’’; and

17 (3) by adding at the end the following new

18 paragraphs:

19 ‘‘(3) the maximum volume of dairy product ex20 ports allowable consistent with the obligations of the

21 United States as a member of the World Trade Or22 ganization are exported under the program each

23 year (minus the volume sold under section 1163 of

24 the Food Security Act of 1985 (7 U.S.C. 1731 note)

25 during that year), except to the extent that the ex-
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1 port of such a volume under the program would, in

2 the judgment of the Secretary, exceed the limitations

3 on the value set forth in subsection (f); and

4 ‘‘(4) payments may be made under the program

5 for exports to any destination in the world for the

6 purpose of market development, except a destination

7 in a country with respect to which shipments from

8 the United States are otherwise restricted by law.’’.

9 (b) SOLE DISCRETION.—Section 153(b) of the

10 Food Security Act of 1985 (15 U.S.C. 713a–14(b)) is

11 amended by inserting ‘‘sole’’ before ‘‘discretion’’.

12 (c) MARKET DEVELOPMENT.—Section 153(e)(1)

13 of the Food Security Act of 1985 (15 U.S.C. 713a–

14 14(e)(1)) is amended—

15 (1) by striking ‘‘and’’ and inserting ‘‘the’’; and

16 (2) by inserting before the period the following:

17 ’’, and any additional amount that may be required

18 to assist in the development of world markets for

19 United States dairy products’’.

20 (d) MAXIMUM ALLOWABLE AMOUNTS.—Section

21 153 of the Food Security Act of 1985 (15 U.S.C. 713a–

22 14) is amended by adding at the end the following:

23 ‘‘(f) REQUIRED FUNDING.—The Commodity

24 Credit Corporation shall in each year use money and

25 commodities for the program under this section in the
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1 maximum amount consistent with the obligations of the

2 United States as a member of the World Trade Organi3 zation, minus the amount expended under section 1163

4 of the Food Security Act of 1985 (7 U.S.C. 1731 note)

5 during that year. However, the Commodity Credit Cor6 poration may not exceed the limitations specified in sub7 section (c)(3) on the volume of allowable dairy product

8 exports.’’.

9 (e) CONFORMING AMENDMENT.—Section 153(a)

10 of the Food Security Act of 1985 (15 U.S.C. 713a–

11 14(a)) is amended by striking ‘‘2001’’ and inserting

12 ‘‘2002’’.

13 SEC. 492. AUTHORITY TO ASSIST IN ESTABLISHMENT AND

14 MAINTENANCE OF EXPORT TRADING COM15 PANY.

16 The Secretary of Agriculture shall, consistent with

17 the obligations of the United States as a member of the

18 World Trade Organization, provide such advice and as19 sistance to the United States dairy industry as may be

20 necessary to enable that industry to establish and main21 tain an export trading company under the Export Trad22 ing Company Act of 1982 (15 U.S.C. 4001 et seq.) for

23 the purpose of facilitating the international market devel24 opment for and exportation of dairy products produced in

25 the United States.
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1 SEC. 493. STANDBY AUTHORITY TO INDICATE ENTITY BEST

2 SUITED TO PROVIDE INTERNATIONAL MAR3 KET DEVELOPMENT AND EXPORT SERVICES.

4 (a) INDICATION OF ENTITY BEST SUITED TO AS5 SIST INTERNATIONAL MARKET DEVELOPMENT FOR AND

6 EXPORT OF UNITED STATES DAIRY PRODUCTS.—If—

7 (1) the United States dairy industry has not es8 tablished an export trading company under the Ex9 port Trading Company Act of 1982 (15 U.S.C. 4001

10 et seq.) for the purpose of facilitating the inter11 national market development for an exportation of

12 dairy products produced in the United States on or

13 before June 30, 1996; or

14 (2) the quantity of exports of United States

15 dairy products during the 12-month period preced16 ing July 1, 1997 does not exceed the quantity of ex17 ports of United States dairy products during the 12-

18 month period preceding July 1, 1996 by 1.5 billion

19 pounds (milk equivalent, total solids basis);

20 the Secretary of Agriculture is directed to indicate which

21 entity autonomous of the Government of the United States

22 is best suited to facilitate the international market devel23 opment for and exportation of United States dairy prod24 ucts.

25 (b) FUNDING OF EXPORT ACTIVITIES.—The Sec26 retary shall assist the entity in identifying sources of
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1 funding for the activities specified in subsection (a) from

2 within the diary industry and elsewhere.

3 (c) APPLICATION OF SECTION.—This section shall

4 apply only during the period beginning on July 1, 1997

5 and ending on September 30, 2000.

6 SEC. 494. STUDY AND REPORT REGARDING POTENTIAL IM7 PACT OF URUGUAY ROUND ON PRICES, IN8 COME AND GOVERNMENT PURCHASES.

9 (a) STUDY.—The Secretary of Agriculture shall

10 conduct a study, on a variety by variety of cheese basis,

11 to determine the potential impact on milk prices in the

12 United States, dairy producer income, and Federal dairy

13 program costs, of the allocation of additional cheese

14 granted access to the United States as a result of the ob15 ligations of the United States as a member of the world

16 Trade Organization.

17 (b) REPORT.—Not later than June 30, 1997, the

18 Secretary shall report to the Committees on Agriculture

19 of the Senate and the House of Representatives the re20 sults of the study conducted under this section.

21 (c) RULE OF CONSTRUCTION.—Any limitation im22 posed by Act of Congress on the conduct or completion

23 of studies or reports to Congress shall not apply to the

24 study and report required under this section unless such

25 limitation explicitly references this section in doing so.
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1 SEC. 495. PROMOTION OF UNITED STATES DAIRY PROD2 UCTS IN INTERNATIONAL MARKETS

3 THROUGH DAIRY PROMOTION PROGRAM.

4 Section 113(e) of the Dairy Production Stabiliza5 tion Act of 1983 (7 U.S.C. 4504(e)) is amended by add6 ing at the end the following new sentence: ‘‘For each of

7 the fiscal years 1996 through 2000, the Board’s budget

8 shall provide for the expenditure of not less than 10 per9 cent of the anticipated revenues available to the Board to

10 develop international markets for, and to promote within

11 such markets, the consumption of dairy products pro12 duced in the United States from milk produced in the

13 United States.’’.

14 TITLE V—MISCELLANEOUS

15 SEC. 501. CROP INSURANCE.

16 (a) CATASTROPHIC RISK PROTECTION.—Section

17 508(b) of the Federal Crop Insurance Act (7 U.S.C.

18 1508(b)) is amended—

19 (1) in paragraph (4), by adding at the end the

20 following:

21 ‘‘(C) DELIVERY OF COVERAGE.—

22 ‘‘(i) IN GENERAL.—In full consulta23 tion with approved insurance providers, the

24 Secretary may continue to offer cata25 strophic risk protection in a State (or a

26 portion of a State) through local offices of
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1 the Department if the Secretary deter2 mines that there is an insufficient number

3 of approved insurance providers operating

4 in the State or portion to adequately pro5 vide catastrophic risk protection coverage

6 to producers.

7 ‘‘(ii) COVERAGE BY APPROVED INSUR8 ANCE PROVIDERS.—To the extent that cat9 astrophic risk protection coverage by ap10 proved insurance providers is sufficiently

11 available in a State as determined by the

12 Secretary, only approved insurance provid13 ers may provide the coverage in the State.

14 ‘‘(iii) CURRENT POLICIES.—Subject to

15 clause (ii), all catastrophic risk protection

16 policies written by local offices of the De17 partment shall be transferred to the ap18 proved insurance provider for performance

19 of all sales, service, and loss adjustment

20 functions. Any fees in connection with such

21 policies that are not yet collected at the

22 time of the transfer shall be payable to the

23 approved insurance providers assuming the

24 policies.’’; and
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1 (2) in paragraph (7), by striking subparagraph

2 (A) and inserting the following:

3 ‘‘(A) IN GENERAL.—Effective for the

4 spring-planted 1996 and subsequent crops, to

5 be eligible for any payment or loan under title

6 I of the Agricultural Market Transition Act or

7 the Agricultural Adjustment Act of 1938 (7

8 U.S.C. 1281 et seq.), for the conservation re9 serve program, or for any benefit described in

10 section 371 of the Consolidated Farm and

11 Rural Development Act (7 U.S.C. 2008f), a

12 person shall—

13 ‘‘(i) obtain at least the catastrophic

14 level of insurance for each crop of eco15 nomic significance in which the person has

16 an interest; or

17 ‘‘(ii) provide a written waiver to the

18 Secretary that waives any eligibility for

19 emergency crop loss assistance in connec20 tion with the crop.’’.

21 (b) COVERAGE OF SEED CROPS.—Section

22 519(a)(2)(B) of the Act (7 U.S.C. 1519(a)(2)(B)) is

23 amended by inserting ‘‘seed crops,’’ after ‘‘turfgrass sod,’’.
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1 SEC. 502. COLLECTION AND USE OF AGRICULTURAL QUAR2 ANTINE AND INSPECTION FEES.

3 Subsection (a) of section 2509 of the Food, Agri4 culture, Conservation, and Trade Act of 1990 (21 U.S.C.

5 136a) is amended to read as follows:

6 ‘‘(a) QUARANTINE AND INSPECTION FEES.—

7 ‘‘(1) FEES AUTHORIZED.—The Secretary of Ag8 riculture may prescribe and collect fees sufficient—

9 ‘‘(A) to cover the cost of providing agricul10 tural quarantine and inspection services in con11 nection with the arrival at a port in the cus12 toms territory of the United States, or the

13 preclearance or preinspection at a site outside

14 the customs territory of the United States, of

15 an international passenger, commercial vessel,

16 commercial aircraft, commercial truck, or rail17 road car;

18 ‘‘(B) to cover the cost of administering this

19 subsection; and

20 ‘‘(C) through fiscal year 2002, to maintain

21 a reasonable balance in the Agricultural Quar22 antine Inspection User Fee Account established

23 under paragraph (5).

24 ‘‘(2) LIMITATION.—In setting the fees under

25 paragraph (1), the Secretary shall ensure that the

26 amount of the fees are commensurate with the costs
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1 of agricultural quarantine and inspection services

2 with respect to the class of persons or entities pay3 ing the fees. The costs of the services with respect

4 to passengers as a class includes the costs of related

5 inspections of the aircraft or other vehicle.

6 ‘‘(3) STATUS OF FEES.—Fees collected under

7 this subsection by any person on behalf of the Sec8 retary are held in trust for the United States and

9 shall be remitted to the Secretary in such manner

10 and at such times as the Secretary may prescribe.

11 ‘‘(4) LATE PAYMENT PENALTIES.—If a person

12 subject to a fee under this subsection fails to pay the

13 fee when due, the Secretary shall assess a late pay14 ment penalty, and the overdue fees shall accrue in15 terest, as required by section 3717 of title 31, Unit16 ed States Code.

17 ‘‘(5) AGRICULTURAL QUARANTINE INSPECTION

18 USER FEE ACCOUNT.—

19 ‘‘(A) ESTABLISHMENT.—There is estab20 lished in the Treasury of the United States a

21 no-year fund, to be known as the ‘Agricultural

22 Quarantine Inspection User Fee Account’,

23 which shall contain all of the fees collected

24 under this subsection and late payment pen-
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1 alties and interest charges collected under para2 graph (4) through fiscal year 2002.

3 ‘‘(B) USE OF ACCOUNT.—For each of the

4 fiscal years 1996 through 2002, funds in the

5 Agricultural Quarantine Inspection User Fee

6 Account shall be available, in such amounts as

7 are provided in advance in appropriations Acts,

8 to cover the costs associated with the provision

9 of agricultural quarantine and inspection serv10 ices and the administration of this subsection.

11 Amounts made available under this subpara12 graph shall be available until expended.

13 ‘‘(C) EXCESS FEES.—Fees and other

14 amounts collected under this subsection in any

15 of the fiscal years 1996 through 2002 in excess

16 of $100,000,000 shall be available for the pur17 poses specified in subparagraph (B) until ex18 pended, without further appropriation.

19 ‘‘(6) USE OF AMOUNTS COLLECTED AFTER FIS20 CAL YEAR 2002.—After September 30, 2002, the un21 obligated balance in the Agricultural Quarantine In22 spection User Fee Account and fees and other

23 amounts collected under this subsection shall be

24 credited to the Department of Agriculture accounts

25 that incur the costs associated with the provision of
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1 agricultural quarantine and inspection services and

2 the administration of this subsection. The fees and

3 other amounts shall remain available to the Sec4 retary until expended without fiscal year limitation.

5 ‘‘(7) STAFF YEARS.—The number of full-time

6 equivalent positions in the Department of Agri7 culture attributable to the provision of agricultural

8 quarantine and inspection services and the adminis9 tration of this subsection shall not be counted to10 ward the limitation on the total number of full-time

11 equivalent positions in all agencies specified in sec12 tion 5(b) of the Federal Workforce Restructuring

13 Act of 1994 (Public Law 103–226; 5 U.S.C. 3101

14 note) or other limitation on the total number of full15 time equivalent positions.’’.

16 SEC. 503. COMMODITY CREDIT CORPORATION INTEREST

17 RATE.

18 Notwithstanding any other provision of law, the

19 monthly Commodity Credit Corporation interest rate ap20 plicable to loans provided for agricultural commodities by

21 the Corporation shall be 100 basis points greater than the

22 rate determined under the applicable interest rate formula

23 in effect on October 1, 1995.
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1 SEC. 504. ESTABLISHMENT OF OFFICE OF RISK MANAGE2 MENT.

3 (a) ESTABLISHMENT.—The Department of Agri4 culture Reorganization Act of 1994 is amended by insert5 ing after section 226 (7 U.S.C. 6932) the following new

6 section:

7 ‘‘SEC. 226A. OFFICE OF RISK MANAGEMENT.

8 ‘‘(a) ESTABLISHMENT.—Subject to subsection (e),

9 the Secretary shall establish and maintain in the Depart10 ment an independent Office of Risk Management.

11 ‘‘(b) FUNCTIONS OF THE OFFICE OF RISK MANAGE12 MENT.—The Office of Risk Management shall have juris13 diction over the following functions:

14 ‘‘(1) Supervision of the Federal Crop Insurance

15 Corporation.

16 ‘‘(2) Administration and oversight of all as17 pects, including delivery through local offices of the

18 Department, of all programs authorized under the

19 Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).

20 ‘‘(3) Any pilot or other programs involving reve21 nue insurance, risk management savings accounts,

22 or the use of the futures market to manage risk and

23 support farm income that may be established under

24 the Federal Crop Insurance Act or other law.

25 ‘‘(4) Such other functions as the Secretary con26 siders appropriate.
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1 ‘‘(c) ADMINISTRATOR.—

2 ‘‘(1) The Office of Risk Management shall be

3 headed by an Administrator who shall be appointed

4 by the Secretary.

5 ‘‘(2) The Administrator of the Office of Risk

6 Management shall also serve as Manager of the Fed7 eral Crop Insurance Corporation.

8 ‘‘(d) RESOURCES.—

9 ‘‘(1) FUNCTIONAL COORDINATION.—Certain

10 functions of the Office of Risk Management, such as

11 human resources, public affairs, and legislative af12 fairs, may be provided by a consolidation of such

13 functions under the Under Secretary of Agriculture

14 for Farm and Foreign Agricultural Services.

15 ‘‘(2) MINIMUM PROVISIONS.—Notwithstanding

16 paragraph (1) or any other provision of law or order

17 of the Secretary, the Secretary shall provide the Of18 fice of Risk Management with human and capital re19 sources sufficient for the Office to carry out its

20 functions in a timely and efficient manner.’’.

21 (b) FISCAL YEAR 1996 FUNDING.—From funds ap22 propriated for the salaries and expenses of the Consoli23 dated Farm Service Agency in the Agriculture, Rural De24 velopment, Food and Drug Administration, and Related

25 Agencies Appropriations Act, 1996 (Public Law 104–37),
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1 the Secretary of Agriculture may use such sums as nec2 essary for the salaries and expenses of the Office of Risk

3 Management established under subsection (a).

4 (c) CONFORMING AMENDMENT.—Section 226(b) of

5 the Act (7 U.S.C. 6932(b)) is amended by striking para6 graph (2).

7 SEC. 505. BUSINESS INTERRUPTION INSURANCE PROGRAM.

8 (a) ESTABLISHMENT OF PROGRAM.—Not later than

9 December 31, 1996, the Secretary of Agriculture shall im10 plement a program (to be known as the ‘‘Business Inter11 ruption Insurance Program’’), under which the producer

12 of a contract commodity could elect to obtain revenue in13 surance coverage to ensure that the producer receives an

14 indemnity payment if the producer suffers a loss of reve15 nue. The nature and extent of the program and the man16 ner of determining the amount of an indemnity payment

17 shall be established by the Secretary.

18 (b) REPORT ON PROGRESS AND PROPOSED EXPAN19 SION.—Not later than January 1, 1998, the Secretary

20 shall submit to the Commission on 21st Century Produc21 tion Agriculture the data and results of the program

22 through October 1, 1997. In addition, the Secretary shall

23 submit information and recommendations to the Commis24 sion with respect to the program that will serve as the

25 basis for the Secretary to offer revenue insurance to agri-
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1 cultural producers, at one or more levels of coverage,

2 that—

3 (1) is in addition to, or in lieu of, catastrophic

4 and higher levels of crop insurance;

5 (2) is offered through reinsurance arrange6 ments with private insurance companies;

7 (3) is actuarially sound; and

8 (4) requires the payment of premiums and ad9 ministrative fees by participating producers.

10 (c) CONTRACT COMMODITY DEFINED.—In this sec11 tion, the term ‘‘contract commodity’’ means a crop of

12 wheat, corn, grain sorghum, oats, barley, upland cotton,

13 or rice.

14 SEC. 506. CONTINUATION OF OPTIONS PILOT PROGRAM.

15 During the 1996 through 2002 crop years, the Sec16 retary of Agriculture may continue to conduct the options

17 pilot program authorized by the Options Pilot Program

18 Act of 1990 (subtitle E of title XI of Public Law 101–

19 624; 104 Stat. 3518; 7 U.S.C. 1421 note). To the extent

20 that the Secretary decides to continue the options pilot

21 program, the Secretary shall modify the terms and condi22 tions of the pilot program to reflect the changes to law

23 made by this Act.
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1 SEC. 507. EVERGLADES AGRICULTURAL AREA.

2 (a) IN GENERAL.—On July 1, 1996, out of any

3 funds in the Treasury not otherwise appropriated, the

4 Secretary of the Treasury shall provide $210,000,000 to

5 the Secretary of the Interior to carry out this section.

6 (b) ENTITLEMENT.—The Secretary of the Interior—

7 (1) shall accept the funds made available under

8 subsection (a):

9 (2) shall be entitled to receive the funds; and

10 (3) shall use the funds to conduct restoration ac11 tivities in the Everglades ecosystem, which may in12 clude acquiring private acreage in the Everglades

13 Agricultural Area including approximately 52,000

14 acres that is commonly known as the ‘‘Talisman

15 tract’’.

16 (c) TRANSFERRING FUNDS.—The Secretary of the

17 Interior may transfer funds to the Army Corps of Engi18 neers, the State of Florida, or the South Florida Water

19 Management District to carry out subsection (b)(3).

20 (d) DEADLINE.—Not later than December 31, 1999,

21 the Secretary of the Interior shall utilize the funds for

22 restoration activities referred to in subsection (b)(3).
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1 SEC. 508. SENSE OF CONGRESS REGARDING PURCHASE OF

2 AMERICAN-MADE EQUIPMENT AND PROD3 UCTS; REQUIREMENT REGARDING NOTICE.

4 (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND

5 PRODUCTS.—In the case of any equipment or products

6 that may be authorized to be purchased with financial as7 sistance provided under this Act or amendments made by

8 this Act, it is the sense of the Congress that persons re9 ceiving such assistance should, in expending the assist10 ance, purchase only American-made equipment and prod11 ucts.

12 (b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In

13 providing financial assistance under this Act or

14 amentments made by this Act, the Secretary of Agri15 culture shall provide to each recipient of the assistance

16 a notice describing the statement made in subsection (a)

17 by the Congress.

18 TITLE VI—COMMISSION ON 21ST

19 CENTURY PRODUCTION AGRI20 CULTURE

21 SEC. 601. ESTABLISHMENT.

22 There is hereby established a commission to be known

23 as the ‘‘Commission on 21st Century Production Agri24 culture’’ (in this title referred to as the ‘‘Commission’’).
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1 SEC. 602. COMPOSITION.

2 (a) MEMBERSHIP AND APPOINTMENT.—The Com3 mission shall be composed of 11 members, appointed as

4 follows:

5 (1) Three members shall be appointed by the

6 President.

7 (2) Four members shall be appointed by the

8 Chairman of the Committee on Agriculture of the

9 House of Representatives in consultation with the

10 ranking minority member of the Committee.

11 (3) Four members shall be appointed by the

12 Chairman of the Committee on Agriculture, Nutri13 tion, and Forestry of the Senate in consultation with

14 the ranking minority member of the Committee.

15 (b) QUALIFICATIONS.—At least one of the members

16 appointed under each of the paragraphs (1), (2), and (3)

17 of subsection (a) shall be an individual who is primarily

18 involved in production agriculture. All other members of

19 the Commission shall be appointed from among individ20 uals having knowledge and experience in agricultural pro21 duction, marketing, finance, or trade.

22 (c) TERM OF MEMBERS; VACANCIES.—Members of

23 the Commission shall be appointed for the life of the Com24 mission. A vacancy on the Commission shall not affect its

25 powers, but shall be filled in the same manner as the origi26 nal appointment was made.
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1 (d) TIME FOR APPOINTMENT; FIRST MEETING.—

2 The members of the Commission shall be appointed not

3 later than October 1, 1997. The Commission shall convene

4 its first meeting to carry out its duties under this Act 30

5 days after six members of the Commission have been ap6 pointed.

7 (e) CHAIRMAN.—The chairman of the Commission

8 shall be designated jointly by the Chairman of the Com9 mittee on Agriculture of the House of Representatives and

10 the Chairman of the Committee on Agriculture, Nutrition,

11 and Forestry of the Senate from among the members of

12 the Commission.

13 SEC. 603. COMPREHENSIVE REVIEW OF PAST AND FUTURE

14 OF PRODUCTION AGRICULTURE.

15 (a) INITIAL REVIEW.—The Commission shall conduct

16 a comprehensive review of changes in the condition of pro17 duction agriculture in the United States since the date of

18 the enactment of this Act and the extent to which such

19 changes are the result of the amendments made by this

20 Act. The review shall include the following:

21 (1) An assessment of the initial success of pro22 duction flexibility contracts under section 103 in

23 supporting the economic viability of farming in the

24 United States.
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1 (2) An assessment of the food security situation

2 in the United States in the areas of trade, consumer

3 prices, international competitiveness of United

4 States production agriculture, food supplies, and hu5 manitarian relief.

6 (3) An assessment of the changes in farmland

7 values and agricultural producer incomes since the

8 date of the enactment of this Act.

9 (4) An assessment of the extent to which regu10 latory relief for agricultural producers has been en11 acted and implemented, including the application of

12 cost/benefit principles in the issuance of agricultural

13 regulations.

14 (5) An assessment of the extent to which tax

15 relief for agricultural producers has been enacted in

16 the form of capital gains tax reductions, estate tax

17 exemptions, and mechanisms to average tax loads

18 over high and low income years.

19 (6) An assessment of the effect of any Govern20 ment interference in agricultural export markets,

21 such as the imposition of trade embargoes, and the

22 degree of implementation and success of inter23 national trade agreements.
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1 (7) An assessment of the likely affect of the

2 sale, lease, or transfer of farm poundage quota for

3 peanuts across State lines.

4 (b) SUBSEQUENT REVIEW.—The Commission shall

5 conduct a comprehensive review of the future of produc6 tion agriculture in the United States and the appropriate

7 role of the Federal Government in support of production

8 agriculture. The review shall include the following:

9 (1) An assessment of changes in the condition

10 of production agriculture in the United States since

11 the initial review conducted under subsection (a).

12 (2) Identification of the appropriate future rela13 tionship of the Federal Government with production

14 agriculture after 2002.

15 (3) An assessment of the personnel and infra16 structure requirements of the Department of Agri17 culture necessary to support the future relationship

18 of the Federal Government with production agri19 culture.

20 (c) RECOMMENDATIONS.—In carrying out the subse21 quent review under subsection (b), the Commission shall

22 develop specific recommendations for legislation to achieve

23 the appropriate future relationship of the Federal Govern24 ment with production agriculture identified under sub25 section (a)(2).
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1 SEC. 604. REPORTS.

2 (a) REPORT ON INITIAL REVIEW.—Not later than

3 June 1, 1998, the Commission shall submit to the Presi4 dent, the Committee on Agriculture of the House of Rep5 resentatives, and the Committee on Agriculture, Nutrition,

6 and Forestry of the Senate a report containing the results

7 of the initial review conducted under section 603(a).

8 (b) REPORT ON SUBSEQUENT REVIEW.—Not later

9 than January 1, 2001, the Commission shall submit to

10 the President and the congressional committees specified

11 in subsection (a) a report containing the results of the

12 subsequent review conducted under section 603(b).

13 SEC. 605. POWERS.

14 (a) HEARINGS.—The Commission may, for the pur15 pose of carrying out this Act, conduct such hearings, sit

16 and act at such times, take such testimony, and receive

17 such evidence, as the Commission considers appropriate.

18 (b) ASSISTANCE FROM OTHER AGENCIES.—The

19 Commission may secure directly from any department or

20 agency of the Federal Government such information as

21 may be necessary for the Commission to carry out its du22 ties under this Act. Upon request of the chairman of the

23 Commission, the head of the department or agency shall,

24 to the extent permitted by law, furnish such information

25 to the Commission.
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1 (c) MAIL.—The Commission may use the United

2 States mails in the same manner and under the same con3 ditions as the departments and agencies of the Federal

4 Government.

5 (d) ASSISTANCE FROM SECRETARY.—The Secretary

6 of Agriculture shall provide to the Commission appropriate

7 office space and such reasonable administrative and sup8 port services as the Commission may request.

9 SEC. 606. COMMISSION PROCEDURES.

10 (a) MEETINGS.—The Commission shall meet on a

11 regular basis (as determined by the chairman) and at the

12 call of the chairman or a majority of its members.

13 (b) QUORUM.—A majority of the members of the

14 Commission shall constitute a quorum for the transaction

15 of business.

16 SEC. 607. PERSONNEL MATTERS.

17 (a) COMPENSATION.—Each member of the Commis18 sion shall serve without compensation, but shall be allowed

19 travel expenses including per diem in lieu of subsistence,

20 as authorized by section 5703 of title 5, United States

21 Code, when engaged in the performance of Commission

22 duties.

23 (b) STAFF.—The Commission shall appoint a staff

24 director, who shall be paid at a rate not to exceed the

25 maximum rate of basic pay under section 5376 of title
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1 5, United States Code, and such professional and clerical

2 personnel as may be reasonable and necessary to enable

3 the Commission to carry out its duties under this Act

4 without regard to the provisions of title 5, United States

5 Code, governing appointments in the competitive service,

6 and without regard to the provisions of chapter 51 and

7 subchapter III of chapter 53 of such title, or any other

8 provision of law, relating to the number, classification, and

9 General Schedule rates. No employee appointed under this

10 subsection (other than the staff director) may be com11 pensated at a rate to exceed the maximum rate applicable

12 to level GS–15 of the General Schedule.

13 (c) DETAILED PERSONNEL.—Upon request of the

14 chairman of the Commission, the head of any department

15 or agency of the Federal Government is authorized to de16 tail, without reimbursement, any personnel of such depart17 ment or agency to the Commission to assist the Commis18 sion in carrying out its duties under this section. The de19 tail of any such personnel may not result in the interrup20 tion or loss of civil service status or privilege of such per21 sonnel.

22 SEC. 608. TERMINATION OF COMMISSION.

23 The Commission shall terminate upon submission of

24 the final report required by section 604.
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1 TITLE VII—EXTENSION OF

2 CERTAIN AUTHORITIES

3 SEC. 701. EXTENSION OF AUTHORITY UNDER PUBLIC LAW

4 480.

5 Section 408 of the Agricultural Trade Development

6 and Assistance Act of 1954 (7 U.S.C. 1736b) is amended

7 by striking ‘‘1995’’ and inserting ‘‘1996’’.

8 SEC. 702. EXTENSION OF FOOD FOR PROGRESS PROGRAM.

9 Section 1110 of the Food Security Act of 1985 (7

10 U.S.C. 1736o), also known as the Food for Progress Act

11 of 1985, is amended—

12 (1) in subsection (k), by striking ‘‘1995’’ and

13 inserting ‘‘1996’’; and

14 (2) in subsection (l), by striking ‘‘1995’’ and in15 serting ‘‘1996’’.

Passed the House of Representatives February 29,

1996.

Attest: ROBIN H. CARLE,

Clerk.

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