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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2330 Introduced in House (IH)]

  1st Session
                                H. R. 2330

To amend the Agricultural Act of 1949 to extend the agricultural price 
support programs for certain commodities through 2002 and to modify the 
          operation of such programs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 1995

  Mr. Emerson (for himself, Mr. Combest, Mr. Baker of Louisiana, Mr. 
 Livingston, Mr. Tauzin, Mr. McCrery, Mr. Laughlin, Mr. Chambliss, Mr. 
Parker, Mr. Everett, Mr. Wicker, Mr. Thornberry, Mr. Hayes, Mr. Taylor 
 of Mississippi, and Mr. Dickey) introduced the following bill; which 
              was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
To amend the Agricultural Act of 1949 to extend the agricultural price 
support programs for certain commodities through 2002 and to modify the 
          operation of such programs, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Agricultural 
Competitiveness Act of 1995''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress regarding regulatory and tax relief for 
                            agricultural producers and role of farm 
                            programs in ending the federal deficit.
            TITLE I--EXTENSION OF CERTAIN COMMODITY PROGRAMS

Sec. 101. Extension of loans, payments, and acreage reduction programs 
                            for wheat through 2002.
Sec. 102. Extension of loans, payments, and acreage reduction programs 
                            for feed grains through 2002.
Sec. 103. Extension of loans, payments, and acreage reduction programs 
                            for cotton through 2002.
Sec. 104. Extension of loans, payments, and acreage reduction programs 
                            for rice through 2002.
Sec. 105. Extension of loans and payments for oilseeds through 2002.
         TITLE II--MODIFICATION OF COMMODITY PROGRAM OPERATIONS

Sec. 201. Increase in flex acres to reduce acres for which deficiency 
                            payments are available.
Sec. 202. Application of same repayment criteria to 0/50 and 0/85 
                            payments as regular deficiency payments.
Sec. 203. Increased planting flexibility.
Sec. 204. Alternative repayment provision for marketing loans.
Sec. 205. Peanut program.
Sec. 206. Sugar program.
Sec. 207. Effect of amendments on 1991 through 1995 crops.
                TITLE III--GENERAL COMMODITY PROVISIONS

Sec. 301. Extension of supplemental set-aside and acreage limitation 
                            authority.
Sec. 302. Extension of deficiency and land diversion payments.
Sec. 303. Extension of authority to adjust established prices.
Sec. 304. Extension of limitation on adjustments of support prices.
Sec. 305. Extension of option to extend programs.
Sec. 306. References to terms regarding price support.
Sec. 307. Extension of acreage base and yield system.
Sec. 308. Normally planted acreage.
Sec. 309. Extension of National Agricultural Cost of Production 
                            Standards Review Board.
Sec. 310. Extension of payment limitations.
Sec. 311. Extension of requirements for notice and public participation 
                            in Secretary determinations.
Sec. 312. Determination of normal supply.
Sec. 313. Extension of options pilot program.
    TITLE IV--REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM

Sec. 401. Repeal of emergency livestock feed assistance program.
                    TITLE V--FEDERAL CROP INSURANCE

Sec. 501. Conversion of catastrophic risk protection program to a 
                            voluntary program.
                    TITLE VI--MISCELLANEOUS PROGRAMS

Sec. 601. Reduction in funding levels for export enhancement program.
Sec. 602. Spending limitations on conservation reserve program.
      TITLE VII--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

Sec. 701. Establishment.
Sec. 702. Composition.
Sec. 703. Comprehensive review of past and future of production 
                            agriculture.
Sec. 704. Reports.
Sec. 705. Powers.
Sec. 706. Commission procedures.
Sec. 707. Personnel matters.
Sec. 708. Termination of Commission.
SEC. 2. SENSE OF CONGRESS REGARDING REGULATORY AND TAX RELIEF FOR 
              AGRICULTURAL PRODUCERS AND ROLE OF FARM PROGRAMS IN 
              ENDING THE FEDERAL DEFICIT.

    (a) Findings.--The Congress finds that--
            (1) the continuation of significant Federal budgetary 
        deficits harms the economic well-being of the United States and 
        is detrimental to the development of sound, long-term 
        agricultural policy;
            (2) agricultural price support and production adjustment 
        programs are necessary for the continued economic health of 
        United States agriculture, which must compete in international 
        markets against subsidized foreign competition; and
            (3) regulatory and tax relief for agricultural producers is 
        necessary so that agricultural producers in the United States 
        can continue to produce an abundant supply of agricultural 
        commodities and compete in international markets.
    (b) Sense of Congress.--Based on the findings expressed in 
subsection (a), it is the sense of Congress that--
            (1) agricultural price support and production adjustment 
        programs should be--
                    (A) implemented, to the maximum extent practicable, 
                in a manner that is consistent with the primary goal of 
                the concurrent resolution on the budget for fiscal year 
                1996 (H.Con.Res. 67, agreed to June 29, 1995) to end 
                Federal budget deficits; and
                    (B) modified, as necessary, to ensure that the 
                programs comply with applicable budget reconciliation 
                instructions in the concurrent resolution that are 
                designed to end Federal budget deficits, in a manner 
                consistent with section 306 of the concurrent 
                resolution;
            (2) regulatory relief for agricultural producers should be 
        enacted and implemented, including the application of cost/
        benefit principles in the issuance of agricultural regulations; 
        and
            (3) tax relief for agricultural producers should be enacted 
        in the form of capital gains tax reductions, estate tax 
        exemptions, and mechanisms to average tax loads over high and 
        low income years.
            TITLE I--EXTENSION OF CERTAIN COMMODITY PROGRAMS

SEC. 101. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 
              FOR WHEAT THROUGH 2002.

    (a) Agricultural Act of 1949.--Section 107B of the Agricultural Act 
of 1949 (7 U.S.C. 1445b-3a) is amended--
            (1) in the section heading by striking ``1995'' and 
        inserting ``2002'';
            (2) in subsections (a)(1), (a)(4)(C), (b)(1), (c)(1)(A), 
        (c)(1)(B)(iii), (e)(1)(G), (e)(3)(A), (e)(3)(C)(iii), (f)(1), 
        (q), by striking ``1995'' each place it appears and inserting 
        ``2002'';
            (3) in the heading of subsection (c)(1)(B)(ii), by striking 
        ``and 1995'' and inserting ``through 2002'';
            (4) in subsection (c)(1)(B)(ii), by striking ``and 1995'' 
        and inserting ``through 2002''; and
            (5) in subsections (c)(1)(E)(i) and (c)(1)(E)(vii), by 
        striking ``1997'' each place it appears and inserting ``2002'';
            (6) in the heading of subsection (e)(1)(G), by striking 
        ``1995'' and inserting ``2002''; and
            (7) in subsection (g)(1), by striking ``and 1995'' and 
        inserting ``through 2002''.
    (b) Food Security Wheat Reserve.--Section 302(i) of the Food 
Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) is amended by 
striking ``1995'' both places it appears and inserting ``2002''.
    (c) Nonapplicability of Certificate Requirements.--Sections 379d 
through 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1379d-1379j) shall not be applicable to wheat processors or exporters 
during the period June 1, 1996, through May 31, 2003.
    (d) Suspension of Land Use, Wheat Marketing Allocation, and 
Producer Certificate Provisions.--Sections 331 through 339, 379b, and 
379c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 
1339, 1379b, and 1379c) shall not be applicable to the 1996 through 
2002 crops of wheat.
    (e) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 1996 
through 2002.
    (f) Nonapplicability of Section 107 of Agricultural Act of 1949.--
Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not 
be applicable to the 1996 through 2002 crops of wheat.

SEC. 102. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 
              FOR FEED GRAINS THROUGH 2002.

    (a) Agricultural Act of 1949.--Section 105B of the Agricultural Act 
of 1949 (7 U.S.C. 1444f) is amended--
            (1) in the section heading, by striking ``1995'' and 
        inserting ``2002'';
            (2) in subsections (a)(1), (a)(4)(C), (a)(6), (b)(1), 
        (c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(1)(H), (e)(2)(H), 
        (e)(3)(A), (e)(3)(C)(iii), (f)(1), (p)(1), (q)(1), and (r), by 
        striking ``1995'' each place it appears and inserting ``2002'';
            (3) in the heading of subsection (c)(1)(B)(ii), by striking 
        ``and 1995'' and inserting ``through 2002'';
            (4) in subsection (c)(1)(B)(ii), by striking ``and 1995'' 
        and inserting ``through 2002'';
            (5) in subsections (c)(1)(E)(i) and (c)(1)(E)(vii), by 
        striking ``1997'' each place it appears and inserting ``2002'';
            (6) in the headings of subsections (e)(1)(G) and (e)(1)(H), 
        by striking ``1995'' both places it appears and inserting 
        ``2002''; and
            (7) in subsection (g)(1), by striking ``and 1995'' and 
        inserting ``through 2002''.
    (b) Recourse Loan Program For Silage.--Section 403 of the Food 
Security Act of 1985 (7 U.S.C. 1444e-1) is amended by striking ``1996'' 
and inserting ``2002''.
    (c) Nonapplicability of Section 105 of Agricultural Act of 1949.--
Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not 
be applicable to the 1996 through 2002 crops of feed grains.

SEC. 103. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 
              FOR COTTON THROUGH 2002.

    (a) Extra Long Staple Cotton.--Section 103(h)(16) of the 
Agricultural Act of 1949 (7 U.S.C. 1444(h)(16)) is amended by striking 
``1996'' and inserting ``2003''.
    (b) Upland Cotton.--Section 103B of the Agricultural Act of 1949 (7 
U.S.C. 1444-2) is amended--
            (1) in the section heading, by striking ``1997'' and 
        inserting ``2002'';
            (2) in subsections (a)(1), (b)(1), (c)(1)(A), 
        (c)(1)(B)(ii), (c)(1)(D)(i), (c)(1)(D)(v)(II), and (o), by 
        striking ``1997'' each place it appears and inserting ``2002'';
            (3) in the heading of subsection (c)(1)(D)(v)(II), by 
        striking ``1997 crops'' and inserting ``2002 crops'';
            (4) in subsection (e)(1)(D), by striking ``the 1997 crop'' 
        and inserting ``each of the 1997 through 2002 crops'';
            (5) in subsections (e)(3)(A) and (f)(1), by striking 
        ``1995'' each place it appears and inserting ``2002''; and
            (6) in subparagraphs (B)(i), (D)(i), (E)(i), and (F)(i) of 
        subsection (a)(5), by striking ``1998'' each place it appears 
        and inserting ``2003''.
    (c) Cottonseed and Cottonseed Oil.--Section 203(b) of the 
Agricultural Act of 1949 (7 U.S.C. 1446d(b)) is amended by striking 
``1995'' and inserting ``2002''.
    (d) Agricultural Adjustment Act of 1938.--Section 374(a) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1374(a)) is amended by 
striking ``1995'' each place it appears and inserting ``2002''.
    (e) Suspension of Base Acreage Allotments, Marketing Quotas, and 
Related Provisions.--Sections 342, 343, 344, 345, 346, and 377 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall 
not be applicable to any of the 1996 through 2002 crops of upland 
cotton.
    (f) Suspension of Miscellaneous Cotton Provisions.--Section 103(a) 
of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be 
applicable to the 1996 through 2002 crops.
    (g) Preliminary Allotments for 2003 Crop of Upland Cotton.--
Notwithstanding any other provision of law, the permanent State, 
county, and farm base acreage allotments for the 1977 crop of upland 
cotton, adjusted for any underplantings in 1977 and reconstituted as 
provided in section 379 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1379), shall be the preliminary allotments for the 2003 crop.
    (h) Cotton Classification Services.--The first sentence of section 
3a of the Act of March 3, 1927 (commonly known as the ``Cotton 
Statistics and Estimates Act'') (chapter 337; 7 U.S.C. 473a), is 
amended by striking ``1996'' and inserting ``2002''.
SEC. 104. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS 
              FOR RICE THROUGH 2002.

    Section 101B of the Agricultural Act of 1949 (7 U.S.C. 1441-2) is 
amended--
            (1) in the section heading, by striking ``1995'' and 
        inserting ``2002'';
            (2) in subsections (a)(1), (a)(3), (b)(1), (c)(1)(A), 
        (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n), by striking 
        ``1995'' each place it appears and inserting ``2002'';
            (3) in subsection (a)(5)(D)(i), by striking ``1996'' and 
        inserting ``2001'';
            (4) in the heading of subsection (c)(1)(B)(ii), by striking 
        ``and 1995'' and inserting ``through 2002'';
            (5) in subsection (c)(1)(B)(ii), by striking ``and 1995'' 
        and inserting ``through 2002'';
            (6) in subsections (c)(1)(D)(i) and (c)(1)(D)(v)(II), by 
        striking ``1997'' each place it appears and inserting ``2002''; 
        and
            (7) in the heading of subsection (c)(1)(D)(v)(II), by 
        striking ``1997 crops'' and inserting ``2002 crops''.

SEC. 105. EXTENSION OF LOANS AND PAYMENTS FOR OILSEEDS THROUGH 2002.

    Section 205 of the Agricultural Act of 1949 (7 U.S.C. 1446f) is 
amended--
            (1) in the section heading, by striking ``1995'' and 
        inserting ``2002'';
            (2) in subsections (b), (c), (e)(1), and (n), by striking 
        ``1995'' each place it appears and inserting ``2002''; and
            (3) in subsections (c) and (h)(2), by striking ``1997'' 
        each places it appears and inserting ``2002''.

         TITLE II--MODIFICATION OF COMMODITY PROGRAM OPERATIONS

SEC. 201. INCREASE IN FLEX ACRES TO REDUCE ACRES FOR WHICH DEFICIENCY 
              PAYMENTS ARE AVAILABLE.
    (a) Wheat.--Subsection (c)(1)(C)(ii) of section 107B of the 
Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended by striking 
``85 percent'' and inserting ``85 percent (through the 1995 crop of 
wheat) and 70 percent (for the 1996 through 2002 crops)''.
    (b) Feed Grains.--Subsection (c)(1)(C)(ii) of section 105B of such 
Act (7 U.S.C. 1444f) is amended by striking ``85 percent'' and 
inserting ``85 percent (through the 1995 crop) and 70 percent (for the 
1996 through 2002 crops)''.
    (c) Upland Cotton.--Subsection (c)(1)(C)(ii) of section 103B of 
such Act (7 U.S.C. 1444-2) is amended by striking ``85 percent'' and 
inserting ``85 percent (through the 1995 crop of upland cotton) and 70 
percent (for the 1996 through 2002 crops)''.
    (d) Rice.--Subsection (c)(1)(C)(ii) of section 101B of such Act (7 
U.S.C. 1441-2) is amended by striking ``85 percent'' and inserting ``85 
percent (through the 1995 crop of rice) and 70 percent (for the 1996 
through 2002 crops)''.

SEC. 202. APPLICATION OF SAME REPAYMENT CRITERIA TO 0/50 AND 0/85 
              PAYMENTS AS REGULAR DEFICIENCY PAYMENTS.

    (a) Wheat.--Subsection (c)(1)(E) of section 107B of the 
Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended by striking 
clause (ii) and inserting the following new clause:
                            ``(ii) Deficiency payments; repayment.--
                        Notwithstanding any other provision of this 
                        section, for the 1996 through 2002 crops of 
                        wheat, any producer who devotes a portion of 
                        the maximum payment acres for wheat for the 
                        farm to conservation uses (or other uses as 
                        provided in subparagraph (F)) under this 
                        subparagraph shall receive deficiency payments 
                        on the acreage that is considered to be planted 
                        to wheat and eligible for payments under this 
                        subparagraph for the crop. Such deficiency 
                        payments shall be made at the payment rate 
                        provided in subparagraph (B) for deficiency 
                        payments under subparagraph (A) and shall be 
                        subject to repayment under the terms set forth 
                        in section 114.''.
    (b) Feed Grains.--Subsection (c)(1)(E) of section 105B of such Act 
(7 U.S.C. 1444f) is amended by striking clause (ii) and inserting the 
following new clause:
                            ``(ii) Deficiency payments; repayment.--
                        Notwithstanding any other provision of this 
                        section, for the 1996 through 2002 crops of 
                        feed grains, any producer who devotes a portion 
                        of the maximum payment acres for feed grains 
                        for the farm to conservation uses (or other 
                        uses as provided in subparagraph (F)) under 
                        this subparagraph shall receive deficiency 
                        payments on the acreage that is considered to 
                        be planted to feed grains and eligible for 
                        payments under this subparagraph for the crop. 
                        Such deficiency payments shall be made at the 
                        payment rate provided in subparagraph (B) for 
                        deficiency payments under subparagraph (A) and 
                        shall be subject to repayment under the terms 
                        set forth in section 114.''.
    (c) Upland Cotton.--Subsection (c)(1)(D) of section 103B of such 
Act (7 U.S.C. 1444-2) is amended by striking clause (iii) and inserting 
the following new clause:
                            ``(iii) Deficiency payments; repayment.--
                        Notwithstanding any other provision of this 
                        section, for the 1996 through 2002 crops of 
                        upland cotton, any producer who devotes a 
                        portion of the maximum payment acres for upland 
                        cotton for the farm to conservation uses (or 
                        other uses as provided in subparagraph (F)) 
                        under this subparagraph shall receive 
                        deficiency payments on the acreage that is 
                        considered to be planted to upland cotton and 
                        eligible for payments under this subparagraph 
                        for the crop. Such deficiency payments shall be 
                        made at the payment rate provided in 
                        subparagraph (B) for deficiency payments
                         under subparagraph (A) and shall be subject to 
repayment under the terms set forth in section 114.''.
    (d) Rice.--Subsection (c)(1)(D) of section 101B of such Act (7 
U.S.C. 1441-2) is amended by striking clause (iii) and inserting the 
following new clause:
                            ``(iii) Deficiency payments; repayment.--
                        Notwithstanding any other provision of this 
                        section, for the 1996 through 2002 crops of 
                        rice, any producer who devotes a portion of the 
                        maximum payment acres for rice for the farm to 
                        conservation uses (or other uses as provided in 
                        subparagraph (F)) under this subparagraph shall 
                        receive deficiency payments on the acreage that 
                        is considered to be planted to rice and 
                        eligible for payments under this subparagraph 
                        for the crop. Such deficiency payments shall be 
                        made at the payment rate provided in 
                        subparagraph (B) for deficiency payments under 
                        subparagraph (A) and shall be subject to 
                        repayment under the terms set forth in section 
                        114.''.

SEC. 203. INCREASED PLANTING FLEXIBILITY.

    (a) Expansion of 25 Percent Limitation.--Subsection (c) of section 
504 of the Agricultural Act of 1949 (7 U.S.C. 1464) is amended to read 
as follows:
    ``(c) Limitation on Acreage.--The quantity of the crop acreage base 
that may be planted to a commodity, other than the specific program 
crop, under this section may not exceed 100 percent of the crop acreage 
base.''.
    (b) Two-Way Flexibility.--Such section is further amended by adding 
at the end the following new subsection:
    ``(f) Two-Way Flexibility.--
            ``(1) Planting on historical soybean acreage.--
        Notwithstanding any other provision of this Act, producers of a 
        program crop on a farm who are participating in the production 
        adjustment program for the program crop under this Act shall be 
        allowed to plant the program crop in a quantity that exceeds 
        the permitted acreage for the crop without losing the 
        eligibility of the producers for loans, purchases, or payments 
        with respect to the crop under this Act if the acreage planted 
        to the program crop on the farm in excess of the permitted 
        acreage does not exceed 25 percent of the historical soybean 
        acreage on the farm for the crop.
            ``(2) Additional flexibility.--Any authority to plant a 
        program crop in excess of the permitted acreage for the crop 
        under this subsection shall be in addition to authority 
        provided under subsection (d).
            ``(3) Limitation.--The Secretary may limit the application 
        of this subsection with respect to a program crop if the 
        Secretary determines the limitation to be necessary to prevent 
        an increase in the acreage limitation program that would 
        otherwise be implemented in accordance with sections 101B, 
        103B, 105B, and 107B during a crop year for the crop.''.
    (c) Conforming Amendments.--Such section is further amended--
            (1) in subsection (d)--
                    (A) by striking ``Notwithstanding'' and inserting 
                ``Except as provided in subsection (f) and 
                notwithstanding''; and
                    (B) in paragraph (1), by striking ``25 percent'' 
                and inserting ``100 percent''; and
            (2) in subsection (e)(2)(A), by striking ``25 percent'' and 
        inserting ``100 percent''.

SEC. 204. ALTERNATIVE REPAYMENT PROVISION FOR MARKETING LOANS.

    (a) Wheat.--
            (1) Marketing loan repayment.--Subsection (a) of section 
        107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is 
        amended--
                    (A) by striking paragraph (3) and all that follows 
                through paragraph (4)(A) and inserting the following:
            ``(3) Marketing loans.--
                    ``(A) In general.--The Secretary shall permit the 
                producers on a farm to repay a loan made under this 
                subsection for a crop at a level (except as provided in 
                subparagraph (C)) that is the lesser of--
                            ``(i) the loan level determined for the 
                        crop; and
                            ``(ii) the prevailing world market price 
                        for wheat (adjusted to United States quality 
                        and location), as determined by the 
                        Secretary.''; and
                    (B) by redesignating paragraph (5) as paragraph 
                (4).
            (2) Conforming amendment.--Subsection (c)(1) of such 
        section is amended by striking subparagraph (D).
    (b) Feed Grains.--
            (1) Marketing loan repayment.--Subsection (a) of section 
        105B of the Agricultural Act of 1949 (7 U.S.C. 1444f) is 
        amended--
                    (A) by striking paragraph (3) and all that follows 
                through paragraph (4)(A) and inserting the following:
            ``(3) Marketing loans.--
                    ``(A) In general.--The Secretary shall permit the 
                producers on a farm to repay a loan made under this 
                subsection for a crop at a level (except as provided in 
                subparagraph (C)) that is the lesser of--
                            ``(i) the loan level determined for the 
                        crop; and
                            ``(ii) the prevailing world market price 
                        for feed grains (adjusted to United States 
                        quality and location), as determined by the 
                        Secretary.''; and
                    (B) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively.
            (2) Conforming amendment.--Subsection (c)(1) of such 
        section is amended by striking subparagraph (D).
SEC. 205. PEANUT PROGRAM.

    (a) National Poundage Quotas and Acreage Allotments.--Section 358-1 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is amended 
to read as follows:

``SEC. 358-1. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS FOR 
              PEANUTS.

    ``(a) National Poundage Quotas.--
            ``(1) Establishment.--The national poundage quota for 
        peanuts for each marketing year shall be established by the 
        Secretary at a level that is equal to the quantity of peanuts 
        (in tons) that the Secretary estimates will be devoted in each 
        such marketing year to domestic edible and related uses, 
        excluding seed. The Secretary shall also include in his annual 
        estimate of domestic edible and related uses, the estimated 
        quantity of peanuts and peanut products to be imported into the 
        United States for the marketing year for which the quota is 
        being established.
            ``(2) Announcement.--The national poundage quota for a 
        marketing year shall be announced by the Secretary not later 
        than December 15 preceding the marketing year.
            ``(3) Apportionment among states.--The national poundage 
        quota established under paragraph (1) shall be apportioned 
        among the States so that the poundage quota allocated to each 
        State shall be equal to the percentage of the national poundage 
        quota allocated to farms in the State for 1995.
    ``(b) Farm Poundage Quotas.--
            ``(1) In general.--
                    ``(A) Establishment.--A farm poundage quota for 
                each marketing year shall be established--
                            ``(i) for each farm that had a farm 
                        poundage quota for peanuts for the 1995 
                        marketing year;
                            ``(ii) if the poundage quota apportioned to 
                        a State under subsection (a)(3) for any such 
                        marketing year is larger than the quota for the 
                        immediately preceding marketing year, for each 
                        other farm on which peanuts were produced for 
                        marketing in at least 2 of the 3 immediately 
                        preceding crop years, as determined by the 
                        Secretary; and
                            ``(iii) as approved and determined by the 
                        Secretary under section 358c, for each farm on 
                        which peanuts are produced in connection with 
                        experimental and research programs.
                    ``(B) Quantity.--The farm poundage quota for each 
                marketing year for each farm described in subparagraph 
                (A)(i) shall be the same as the farm poundage quota for 
                the farm for the immediately preceding marketing year, 
                as adjusted under paragraph (2), but not including any 
                increases resulting from the allocation of quotas 
                voluntarily released for one year under paragraph (7). 
                The farm poundage quota, if any, for each marketing 
                year for each farm described in subparagraph (A)(ii) 
                shall be equal to the quantity of peanuts allocated to 
                the farm for the year under paragraph (2).
                    ``(C) Transfers.--For purposes of this subsection, 
                if the farm poundage quota, or any part thereof, is 
                permanently transferred in accordance with section 358a 
                or 358b, the receiving farm shall be considered as 
                possessing the farm poundage quota (or portion thereof) 
                of the transferring farm for all subsequent marketing 
                years.
            ``(2) Adjustments.--
                    ``(A) Allocation of increased quota generally.--
                Except as provided in subparagraph (C), if the poundage 
                quota apportioned to a State under subsection (a)(3) of 
                any marketing year is increased over the poundage quota 
                apportioned to farms in the State for the immediately 
                preceding marketing year, the increase shall be 
                allocated proportionately, based on farm production 
                history for peanuts for the 3 immediately preceding 
                years, among--
                            ``(i) all farms in the State for each of 
                        which a farm poundage quota was established for 
                        the marketing year immediately preceding the 
                        marketing year for which the allocation is 
                        being made; and
                            ``(ii) all other farms in the State on each 
                        of which peanuts were produced in at least 2 of 
                        the 3 immediately preceding crop years, as 
                        determined by the Secretary.
                    ``(B) Decrease.--If the poundage quota apportioned 
                to a State under subsection (a)(3) for any marketing 
                year is decreased from the poundage quota apportioned 
                to farms in the State under subsection (a)(3) for the 
                immediately preceding marketing year, the decrease 
                shall be allocated among all the farms in the State for 
                each of which a farm poundage quota was established for 
                the marketing year immediately preceding the marketing 
                year for which the allocation is being made.
                    ``(C) Special rule on tenant's share of increased 
                quota.--Subject to terms and conditions prescribed by 
                the Secretary, on farms that were leased to a tenant 
                for peanut production, the tenant shall share equally 
                with the owner of the farm in that percentage of the 
                quota referred to in subparagraph (A) and otherwise 
                allocated to the farm as the result of the tenant's 
                production on the farm of additional peanuts. Not later 
                than April 1 of each year or as soon as practicable, 
                the tenant's share of any such quota shall be allocated 
                to a farm within the county owned by the tenant or sold 
                by the tenant to the owner of any farm within the 
                county and permanently transferred to that farm. Any 
                quota not so disposed of as provided in this 
                subparagraph shall be allocated to other quota farms in 
                the State under paragraph (6) as part of the quota 
                reduced from farms in the State due to the failure to 
                produce the quota.
            ``(3) Quota not produced.--
                    ``(A) In general.--Insofar as practicable and on 
                such fair and equitable basis as the Secretary may by 
                regulation prescribe, the farm poundage quota 
                established for a farm for any marketing year shall be 
                reduced to the extent that the Secretary determines 
                that the farm poundage quota established for the farm 
                for any 2 of the 3 marketing years preceding the 
                marketing year for which the determination is being 
                made was not produced, or considered produced, on the 
                farm.
                    ``(B) Exclusions.--For purposes of this paragraph, 
                the farm poundage quota for any such preceding 
                marketing year shall not include any increase resulting 
                from the allocation of quotas voluntarily released for 
                1 year under paragraph (7).
            ``(4) Quota considered produced.--For purposes of this 
        subsection, the farm poundage quota shall be considered 
        produced on a farm if--
                    ``(A) the farm poundage quota was not produced on 
                the farm because of drought, flood, or any other 
                natural disaster, or any other condition beyond the 
                control of the producer, as determined by the 
                Secretary; or
                    ``(B) the farm poundage quota for the farm was 
                either leased to another owner or operator of a farm 
                within the same county for transfer to such farm for 
                only 1 of the 3 marketing years immediately preceding 
                the marketing year for which the determination is being 
                made or the farm poundage quota was released 
                voluntarily under paragraph (7) for only 1 of the 3 
                marketing years immediately preceding the marketing 
                year for which the determination is being made. The 
                farm poundage quota shall not be considered produced 
                for more than one marketing year out of the three 
                immediately preceding marketing years under this 
                subparagraph.
            ``(5) Quota permanently released.--Notwithstanding any 
        other provision of law--
                    ``(A) the farm poundage quota established for a 
                farm under this subsection, or any part of the quota, 
                may be permanently released by the owner of the farm, 
                or the operator with the permission of the owner; and
                    ``(B) the poundage quota for the farm for which the 
                quota is released shall be adjusted downward to reflect 
                the quota that is so released.
            ``(6) Allocation of quotas reduced or released.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the total quantity of the farm 
                poundage quotas reduced or voluntarily released from 
                farms in a State for any marketing year under 
                paragraphs (3) and (5) shall be allocated, as the 
                Secretary may by regulation prescribe, to other farms 
                in the State as provided in subparagraph (B) on which 
                peanuts were produced in at least 2 of the 3 crop years 
                immediately preceding the year for which the allocation 
                is being made.
                    ``(B) Set-aside for farms with no quota.--The total 
                amount of farm poundage quota to be allocated in the 
                State under subparagraph (A) shall be allocated to 
                farms in the State for which no farm poundage quota was 
                established for the immediately preceding year's crop. 
                The allocation to any such farm shall not exceed the 
                average farm production of peanuts for the 3 
                immediately preceding years during which peanuts were 
                produced on the farm. Any farm quota pounds remaining 
                after allocation to farms under this subparagraph shall 
                be allocated to farms in the State on which poundage 
                quotas were established for the immediately preceding 
                year's crop.
            ``(7) Quota temporarily released.--
                    ``(A) In general.--The farm poundage quota, or any 
                portion thereof, established for a farm for a marketing 
                year may be voluntarily released to the Secretary to 
                the extent that the quota, or any part thereof, will 
                not be produced on the farm for the marketing year. Any 
                farm poundage quota so released in a State shall be 
                allocated to other farms in the State on such basis as 
                the Secretary may by regulation prescribe.
                    ``(B) Effective period.--Except as otherwise 
                provided in this section, any adjustment in the farm 
                poundage quota for a farm under subparagraph (A) shall 
                be effective only for the marketing year for which it 
                is made and shall not be taken into consideration in 
                establishing a farm poundage quota for the farm from 
                which the quota was released for any subsequent 
                marketing year.
            ``(8) Transfer of additional peanuts.--Additional peanuts 
        on a farm from which the quota poundage was not harvested and 
        marketed may be transferred to the quota loan pool for pricing 
        purposes on such basis as the Secretary shall by regulation 
        provide, except that the poundage of such peanuts so 
        transferred shall not exceed the difference in the total 
        peanuts meeting quality requirements for domestic edible use as 
        determined by the Secretary marketed from the farm and the 
        total farm poundage quota, excluding quota pounds transferred 
        to the farm in the fall. Peanuts transferred under provisions 
        of this paragraph shall be supported at a total of not less 
        than 70 percent of the quota support rate for the marketing 
        years in which such transfers occur and such transfers for a 
        farm shall not exceed 25 percent of the total farm quota 
        pounds, excluding pounds transferred in the fall.
            ``(9) Temporary quota allocation.--
                    ``(A) Temporary allocation of quota pounds for the 
                marketing year only in which the crop is planted shall 
                be made to producers as provided in this subsection. 
                The temporary quota
                 allocation shall be equal to the pounds of seed 
peanuts planted on the farm as may be adjusted under regulations that 
shall be prescribed by the Secretary. The temporary allocation of quota 
pounds under this paragraph shall be in addition to the farm quota 
pounds established under paragraph (1).
                    ``(B) The allocation of quota pounds to producers 
                under the provisions of this subsection shall be 
                performed in such a manner as will not result in a net 
                decrease in quota pounds on a farm in excess of 3 
                percent, after temporary seed quota is added, from the 
                basic farm quota in 1996 and such decrease shall occur 
                one time only and shall be applicable to the 1996 
                marketing year only.
                    ``(C) Implementation of provisions in this 
                subsection may continue so long as doing so does not 
                result in increased cost to the Commodity Credit 
                Corporation by displacement of quota peanuts by 
                additional peanuts in the domestic market, increased 
                losses in the Association loan pools or other such 
                increases in cost.
                    ``(D) Nothing in this paragraph shall alter or 
                change in any way the requirements of section 358e(b).
    ``(c) Farm Yields.--
            ``(1) In general.--For each farm for which a farm poundage 
        quota is established under subsection (b), and when necessary 
        for purposes of this Act, a farm yield of peanuts shall be 
        determined for each such farm.
            ``(2) Quantity.--The yield shall be equal to the average of 
        the actual yield per acre on the farm for each of the 3 crop 
        years in which yields were highest on the farm out of the 5 
        crop years 1973 through 1977.
            ``(3) Appraised yields.--If peanuts were not produced on 
        the farm in at least 3 years during the 5-year period or there 
        was a substantial change in the operation of the farm during 
        the period (including a change in operator, lessee who is an 
        operator, or irrigation practices), the Secretary shall have a 
        yield appraised for the farm. The appraised yield shall be that 
        quantity determined to be fair and reasonable on the basis of 
        yields established for similar farms that are located in the 
        area of the farm and on which peanuts were produced, taking 
        into consideration land, labor, and equipment available for the 
        production of peanuts, crop rotation practices, soil and water, 
        and other relevant factors.
    ``(d) Referendum Respecting Poundage Quotas.--
            ``(1) In general.--Not later than December 15 of each 
        calendar year, the Secretary shall conduct a referendum of 
        producers engaged in the production of quota peanuts in the 
        calendar year in which the referendum is held to determine 
        whether the producers are in favor of or opposed to poundage 
        quotas with respect to the crops of peanuts produced in the 5 
        calendar years immediately following the year in which the 
        referendum is held, except that, if as many as two-thirds of 
        the producers voting in any referendum vote in favor of 
        poundage quotas, no referendum shall be held with respect to 
        quotas for the second, third, fourth, and fifth years of the 
        period.
            ``(2) Proclamation.--The Secretary shall proclaim the 
        result of the referendum within 30 days after the date on which 
        it is held.
            ``(3) Vote against quotas.--If more than one-third of the 
        producers voting in the referendum vote against quotas, the 
        Secretary also shall proclaim that poundage quotas will not be 
        in effect with respect to the crop of peanuts produced in the 
        calendar year immediately following the calendar year in which 
        the referendum is held.
    ``(e) Definitions.--For the purposes of this part and title I of 
the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.):
            ``(1) Additional peanuts.--The term `additional peanuts' 
        means, for any marketing year--
                    ``(A) any peanuts that are marketed from a farm for 
                which a farm poundage quota has been established and 
                that are in excess of the marketings of quota peanuts 
                from the farm for the year; and
                    ``(B) all peanuts marketed from a farm for which no 
                farm poundage quota has been established in accordance 
                with subsection (b).
            ``(2) Crushing.--The term `crushing' means the processing 
        of peanuts to extract oil for food uses and meal for feed uses, 
        or the processing of peanuts by crushing or otherwise when 
        authorized by the Secretary.
            ``(3) Domestic edible use.--The term `domestic edible use' 
        means use for milling to produce domestic food peanuts (other 
        than those described in paragraph (2)) and use on a farm, 
        except that the Secretary may exempt from this definition seeds 
        of peanuts that are used to produce peanuts excluded under 
        section 358d(c), are unique strains, and are not commercially 
        available.
            ``(4) Quota peanuts.--The term `quota peanuts' means, for 
        any marketing year, any peanuts produced on a farm having a 
        farm poundage quota, as determined in subsection (b), that--
                    ``(A) are eligible for domestic edible use as 
                determined by the Secretary;
                    ``(B) are marketed or considered marketed from a 
                farm; and
                    ``(C) do not exceed the farm poundage quota of the 
                farm for the year.
    ``(f) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.
    (b) Sale, Lease, or Transfer of Farm Poundage Quota.--Section 358b 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b) is amended 
to read as follows:

``SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA FOR 
              PEANUTS.

    ``(a) In General.--
            ``(1) Authority.--Subject to such terms, conditions, or 
        limitations as the Secretary may prescribe, the owner, or 
        operator with the permission of the owner, of any farm for 
        which a farm poundage quota has been established under this Act 
        may sell or lease all or any part of the poundage quota to any 
        other owner or operator of a farm within the same State if not 
        less than 90 percent of the basic quota (the farm quota 
        exclusive of temporary quota transfers), plus any poundage 
        quota transferred to the farm under this subsection, has been 
        planted or considered planted on the farm from which the quota 
        is to be transfered. The transfer shall be under such terms and 
        conditions as the Secretary may by regulation prescribe. In the 
        case of a fall transfer or a transfer after the normal planting 
        season by a cash lessee, the landowner shall not be required to 
        sign the transfer authorization. A fall transfer or a transfer 
        after the normal planting season may be made not later than 72 
        hours after the peanuts that are the subject of the transfer 
        are inspected and graded. Fall transfers of quota pounds shall 
        not affect the farm quota history for the transferring or 
        receiving farm and shall not result in reducing the farm 
        poundage quota on the transferring farm.
            ``(2) Transfers in states with small quotas.--
        Notwithstanding paragraph (1) and (2), in the case of any State 
        for which the poundage quota allocated to the State was less 
        than 10,000 tons for the preceding year's crop, all or any part 
        of a farm poundage quota may be transferred by sale or lease or 
        otherwise from a farm to another farm in any State.
    ``(b) Conditions.--Transfers (including transfer by sale or lease) 
of farm poundage quotas under this section shall be subject to all of 
the following conditions:
            ``(1) Lienholders.--No transfer of the farm poundage quota 
        from a farm subject to a mortgage or other lien shall be 
        permitted unless the transfer is agreed to by the lienholders, 
        except that no such agreement shall be necessary in the event 
        of all lease, if the operator had the lienholder's agreement 
        for a previous spring cash lease.
            ``(2) Tillable cropland.--No transfer of the farm poundage 
        quota shall be permitted if the county committee established 
        under section 8(b) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h(b)) determines that the receiving 
        farm does not have adequate tillable cropland to produce the 
        farm poundage quota.
            ``(3) Record.--No transfer of the farm poundage quota shall 
        be effective until a record thereof is filed with the county 
        committees of the counties from which transferred and to which 
        transferred and the committees determined that the transfer 
        complies with this section.
            ``(4) Other terms.--Such other terms and conditions that 
        the Secretary may by regulation prescribe.
    ``(c) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.
    (c) Marketing Penalties; Disposition of Additional Peanuts.--
Section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359a) is amended to read as follows:
``SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS.

    ``(a) Marketing Penalties.--
            ``(1) In general.--
                    ``(A) Marketing peanuts in excess of quota.--The 
                marketing of any peanuts for domestic edible use in 
                excess of the farm poundage quota for the farm on which 
                the peanuts are produced shall be subject to penalty at 
                a rate equal to 140 percent of the support price for 
                quota peanuts for the marketing year in which the 
                marketing occurs. The penalty shall not apply to the 
                marketing of breeder or Foundation seed peanuts grown 
                and marketed by a publicly owned agricultural 
                experiment station (including a State operated seed 
                organization) under such regulations as the Secretary 
                may prescribe.
                    ``(B) Marketing year.--For purposes of this 
                section, the marketing year for peanuts shall be the 
                12-month period beginning August 1 and ending July 31.
                    ``(C) Marketing additional peanuts.--The marketing 
                of any additional peanuts from a farm shall be subject 
                to the same penalty unless the peanuts, in accordance 
                with regulations established by the Secretary, are--
                            ``(i) placed under loan at the additional 
                        loan rate in effect for the peanuts under 
                        section 108B of the Agricultural Act of 1949 
                        and not redeemed by the producers;
                            ``(ii) marketed through an area marketing 
                        association designated pursuant to section 
                        108B(c)(1) of the Agricultural Act of 1949; or
                            ``(iii) marketed under contracts between 
                        handlers and producers pursuant to subsection 
                        (f).
            ``(2) Payer.--The penalty shall be paid by the person who 
        buys or otherwise acquires the peanuts from the producer or, if 
        the peanuts are marketed by the producer through an agent, the 
        penalty shall be paid by the agent. The person or agent may 
        deduct an amount equivalent to the penalty from the price paid 
        to the producer.
            ``(3) Failure to collect.--If the person required to 
        collect the penalty fails to collect the penalty, the person 
        and all persons entitled to share in the peanuts marketed from 
        the farm or the proceeds thereof shall be jointly and severally 
        liable with such persons who failed to collect the penalty for 
        the amount of the penalty.
            ``(4) Application of quota.--Peanuts produced in a calendar 
        year in which farm poundage quotas are in effect for the 
        marketing year beginning therein shall be subject to the quotas 
        even though the peanuts are marketed prior to the date on which 
        the marketing year begins.
            ``(5) False information.--If any producer falsely 
        identifies, fails to accurately certify planted acres, or fails 
        to account for the disposition of any peanuts produced on the 
        planted acres, a quantity of peanuts equal to the greater of 
        the farm's average or actual yield, as determined by the 
        Secretary, times the planted acres, shall be deemed to have 
        been marketed in violation of permissible uses of quota and 
        additional peanuts. Any penalty payable under this paragraph 
        shall be paid and remitted by the producer.
            ``(6) Unintentional violations.--The Secretary shall 
        authorize, under such regulations as the Secretary shall issue, 
        the county committees established under section 8(b) of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)) to waive or reduce marketing penalties provided for 
        under this subsection in cases which the committees determine 
        that the violations that were the basis of the penalties were 
        unintentional or without knowledge on the part of the parties 
        concerned.
            ``(7) De minimis violations.--Errors in weight that do not 
        exceed one-tenth of 1 percent in the case of any one marketing 
        document shall not be considered to be marketing violations 
        except in cases of fraud or conspiracy.
    ``(b) Use of Quota and Additional Peanuts.--
            ``(1) Quota peanuts.--Only quota peanuts may be retained 
        for use as seed or for other uses on a farm. When peanuts are 
        so retained, such retention shall be considered as marketings 
        of quota peanuts, except that the Secretary may exempt from 
        consideration as marketings of quota peanuts seeds of peanuts 
        for the quantity involved that are used to produce peanuts 
        excluded under section 358d(c), are unique strains, and are not 
        commercially available.
            ``(2) Additional peanuts.--Additional peanuts shall not be 
        retained for use on a farm and shall not be marketed for 
        domestic edible use, except as provided in subsection (g).
            ``(3) Seed.--Except as provided in paragraph (1), seed for 
        planting of any peanut acreage in the United States shall be 
        obtained solely from quota peanuts marketed or considered 
        marketed for domestic edible use.
    ``(c) Marketing Peanuts With Excess Quantity, Grade, or Quality.--
On a finding by the Secretary that the peanuts marketed from any crop 
for domestic edible use by a handler are larger in quantity or higher 
in grade or quality than the peanuts that could reasonably be produced 
from the quantity of peanuts having the grade, kernel content, the 
quality of the quota peanuts acquired by the handler from the crop for 
the marketing year, the handler shall be subject to a penalty equal to 
140 percent of the loan level for quota peanuts on the quantity of 
peanuts that the Secretary determines are in excess of the quantity, 
grade, or quality of the peanuts that could reasonably have been 
produced from the peanuts so acquired.
    ``(d) Supervision of Handlers of Additional Peanuts.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require that the handling and disposal of 
        additional peanuts be supervised by agents of the Secretary or 
        by area marketing associations designated pursuant to section 
        108B(c)(1) of the Agricultural Act of 1949.
            ``(2) Supervision by nonhandlers.--
                    ``(A) In general.--Supervision of the handling and 
                disposal of additional peanuts by a handler shall not 
                be required under paragraph (1) if the handler agrees 
                in writing, prior to any handling or disposal of the 
                peanuts, to comply with regulations that the Secretary 
                shall issue.
                    ``(B) Regulations.--The regulations issued by the 
                Secretary under subparagraph (A) shall include the 
                following provisions:
                            ``(i) Types of exported or crushed 
                        peanuts.--Handlers of shelled or milled peanuts 
                        may export or crush peanuts classified by type 
                        in all of the following quantities:
                                    ``(I) Sound split kernel peanuts.--
                                Sound split kernel peanuts purchased by 
                                the handler as additional peanuts to 
                                which, under price support loan 
                                schedules, a mandated deduction with 
                                respect to the price paid to the 
                                producer of the peanuts would be 
                                applied due to the percentage of the 
                                sound splits.
                                    ``(II) Sound mature kernel 
                                peanuts.--Sound mature kernel peanuts 
                                (which term includes sound split kernel 
                                peanuts and sound whole kernel peanuts) 
                                in an amount equal to the poundage of 
                                the peanuts purchased by the handler as 
                                additional peanuts, less the total 
                                poundage of sound split kernel peanuts 
                                described in subclause (I).
                                    ``(III) Remainder.--The remaining 
                                quantity of total kernel content of 
                                peanuts purchased by the handler as 
                                additional peanuts.
                            ``(ii) Documentation.--Handlers shall 
                        ensure that any additional peanuts exported or 
                        crushed are evidenced by onboard bills of 
                        lading or other appropriate documentation as 
                        may be required by the Secretary, or both.
                            ``(iii) Loss of peanuts.--If a handler 
                        suffers a loss of peanuts as a result of fire, 
                        flood, or any other condition beyond the 
                        control of the handler, the portion of the loss 
                        allocated to contracted additional peanuts 
                        shall not be greater than the portion of the 
                        handler's total peanut purchases for the year 
                        attributable to contracted additional peanuts 
                        purchased for export or crushing by the handler 
                        during the year.
                            ``(iv) Shrinkage allowance.--
                                    ``(I) In general.--The obligation 
                                of a handler to export or crush peanuts 
                                in quantities described in this 
                                subparagraph shall be reduced by a 
                                shrinkage allowance, to be determined 
                                by the Secretary, to reflect actual 
                                dollar value shrinkage experienced by 
                                handlers in commercial operations, 
                                except that the allowance shall not be 
                                less than 4 percent, except as provided 
                                in subclause (II).
                                    ``(II) Common industry practices.--
                                The Secretary may provide a lower 
                                shrinkage allowance for a handler who 
                                fails to comply with the restrictions 
                                on the use of peanuts, as may be 
                                specified by the Commodity Credit 
                                Corporation, to take into account 
                                common industry practices.
            ``(3) Adequate finances and facilities.--A handler shall 
        submit to the Secretary adequate financial guarantees, as well 
        as evidence of adequate facilities and assets, with the 
        facilities under the control and operation of the handler, to 
        ensure the handler's compliance with the obligation to export 
        peanuts.
            ``(4) Commingling of like peanuts.--Quota and additional 
        peanuts of like type and segregation or quality may, under 
        regulations issued by the Secretary, be commingled and 
        exchanged on a dollar value basis to facilitate warehousing, 
        handling, and marketing.
            ``(5) Penalty.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the failure by a handler to comply 
                with regulations issued by the Secretary governing the 
                disposition and handling of additional peanuts shall 
                subject the handler to a penalty at a rate equal to 140 
                percent of the loan level for quota peanuts on the 
                quantity of peanuts involved in the violation.
                    ``(B) Nondelivery.--A handler shall not be subject 
                to a penalty for failure to export additional peanuts 
                if the peanuts were not delivered to the handler.
            ``(6) Reentry of exported peanuts.--
                    ``(A) Penalties.--If any additional peanuts or 
                peanut products manufactured from additional peanuts 
                exported by a handler are reentered into the United 
                States in commercial quantities as determined by the 
                Secretary, the importer thereof shall be subject to a 
                penalty at a rate equal to 140 percent of the loan 
                level for quota peanuts on the quantity of peanuts 
                reentered.
                    ``(B) Records.--Each person, firm, or handler who 
                imports peanuts into the United States shall maintain 
                such records and documents as are required by the 
                Secretary to ensure compliance with this subsection.
    ``(e) Special Export Credits.--
            ``(1) In general.--The Secretary shall, with due regard for 
        the integrity of the peanut program, promulgate regulations 
        that will permit any handler of peanuts who manufactures peanut 
        products from domestic edible peanuts to export the products 
        and receive credit for the fulfillment of export obligations 
        for the peanut content of the products against which the export 
        credits the handler may thereafter apply, up to the amount 
        thereof, equivalent quantities of additional peanuts of the 
        same type acquired by the handler and used in the domestic 
        edible market. The peanuts so acquired for the domestic edible 
        market as provided in this subsection shall be of the same crop 
        year as the peanuts used in the manufacture of the products so 
        exported.
            ``(2) Certification.--Under such regulations, the Secretary 
        shall require all handlers who are peanut product manufacturers 
        to submit annual certifications of peanut product content on a 
        product-by-product basis. Any changes in peanut product 
        formulas as affecting peanut content shall be recorded within 
        90 days of the changes. The Secretary shall conduct an annual 
        review of the certifications. The Secretary shall pursue all 
        available remedies with respect to persons who fail to comply 
        with this paragraph.
            ``(3) Records.--The Secretary shall require handlers who 
        are peanut product manufacturers to maintain and provide such 
        documents as are necessary to ensure compliance with this 
        subsection and to maintain the integrity of the peanut program.
    ``(f) Contracts for Purchase of Additional Peanuts.--
            ``(1) In general.--Handlers may, under such regulations as 
        the Secretary may issue, contract with producers for the 
        purchase of additional peanuts for crushing or export, or both.
            ``(2) Submission to secretary.--
                    ``(A) Contract deadline.--Any such contract shall 
                be completed and submitted to the Secretary (or if 
                designated by the Secretary, the area marketing 
                association) for approval not later than September 15 
                of the year in which the crop is produced.
                    ``(B) Extension of deadline.--The Secretary may 
                extend the deadline under subparagraph (A) by up to 15 
                days in response to damaging weather or related 
                condition (as defined in section 112 of the Disaster 
                Assistance Act of 1989 (7 U.S.C. 1421 et seq.)). The 
                Secretary shall announce the extension no later than 
                September 5 of the year in which the crop is produced.
            ``(3) Form.--The contract shall be executed on a form 
        prescribed by the Secretary. The form shall require such 
        information as the Secretary determines appropriate to ensure 
        the proper handling of the additional peanuts, including the 
        identity of the contracting parties, the poundage, and category 
        of the peanuts, the disclosure of any liens, and the intended 
        disposition of the peanuts.
            ``(4) Information for handling and processing additional 
        peanuts.--Notwithstanding any other provision of this section, 
        any person wishing to handle and process additional peanuts as 
        a handler shall submit to the Secretary (or if designated by 
        the Secretary, the area marketing association), such 
        information as may be required under subsection (d) by such 
        date as prescribed by the Secretary so as to permit final 
        action to be taken on the application by July 1 of each 
        marketing year.
            ``(5) Terms.--Each such contract shall contain the final 
        price to be paid by the handler for the peanuts involved and a 
        specific prohibition against the disposition of the peanuts for 
        domestic edible or seed use.
            ``(6) Suspension of restrictions on imported peanuts.--
        Notwithstanding any other provision of this Act, if the 
        President issues a proclamation under section 404(b) of the 
        Uruguay Round Agreements Act expanding the quantity of peanuts 
        subject to the in-quota rate of duty under a tariff-rate quota, 
        or under section 22 of the Agricultural Adjustment Act (7 
        U.S.C. 624), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937, temporarily suspending 
        restrictions on the importation of peanuts, the Secretary 
        shall, subject to such terms and conditions as the Secretary 
        may prescribe, permit a handler, with the written consent of 
        the producer, to purchase additional peanuts from any producer 
        who contracted with the handler and to offer the peanuts for 
        sale for domestic edible use.
    ``(g) Marketing of Peanuts Owned or Controlled by the Commodity 
Credit Corporation.--
            ``(1) In general.--Subject to section 407 of the 
        Agricultural Act of 1949 (7 U.S.C. 1427), any peanuts owned or 
        controlled by the Commodity Credit Corporation may be made 
        available for domestic edible use, in accordance with 
        regulations issued by the Secretary, so long as doing so does 
        not result in substantially increased cost to the Commodity 
        Credit Corporation. Additional peanuts received under loan 
        shall be offered for sale for domestic edible use at prices not 
        less than those required to cover all costs incurred with 
        respect to the peanuts for such items as inspection, 
        warehousing, shrinkage, and other expenses, plus--
                    ``(A) not less than 100 percent of the loan value 
                of quota peanuts if the additional peanuts are sold and 
                paid for during the harvest season on delivery by and 
                with the written consent of the producer;
                    ``(B) not less than 105 percent of the loan value 
                of quota peanuts if the additional peanuts are sold 
                after delivery by the producer but not later than 
                December 31 of the marketing year; or
                    ``(C) not less than 107 percent of the loan value 
                of quota peanuts if the additional peanuts are sold 
                later than December 31 of the marketing year.
            ``(2) Acceptance of bids by area marketing associations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for the period from the date 
                additional peanuts are delivered for loan to March 1 of 
                the calendar year following the year in which the 
                additional peanuts were harvested, the area marketing 
                association designated pursuant to section 108B(c)(1) 
                of the Agricultural Act of 1949 shall have sole 
                authority to accept or reject lot list bids when the 
                sales price, as determined under this subsection, 
                equals or exceeds the minimum price at which the 
                Community Credit Corporation may sell its stocks of 
                additional peanuts.
                    ``(B) Modification.--The area marketing association 
                and the Community Credit Corporation may agree to 
                modify the authority granted by subparagraph (A) to 
                facilitate the orderly marketing of additional peanuts.
            ``(3) Producer marketing and expenses.--Notwithstanding any 
        other provision of this Act, the Secretary shall, in any 
        determination required under subsections (a)(2) and (b)(1) of 
        section 108B of the Agricultural Act of 1949, include any 
        additional marketing expenses required by law, excluding the 
        amount of any assessment required under the Omnibus Budget 
        Reconciliation Act of 1990.
    ``(h) Administration.--
            ``(1) Interest.--The person liable for payment or 
        collection of any penalty provided for in this section shall be 
        liable also for interest thereon at a rate per annum equal to 
        the rate per annum of interest that was charged the Commodity 
        Credit Corporation by the Treasury of the United States on the 
        date the penalty became due.
            ``(2) De minimis quantity.--This section shall not apply to 
        peanuts produced on any farm on which the acreage harvested for 
        nuts is one acre or less if the producers who share in the 
        peanuts produced on the farm do not share in the peanuts 
        produced on any other farm.
            ``(3) Liens.--Until the amount of the penalty provided by 
        this section is paid, a lien on the crop of peanuts with 
        respect to which the penalty is incurred, and on any subsequent 
        crop of peanuts subject to farm poundage quotas in which the 
        person liable for payment of the penalty has an interest, shall 
        be in effect in favor of the United States.
            ``(4) Penalties.--
                    ``(A) Procedures.--Notwithstanding any other 
                provision of law, the liability for and the amount of 
                any penalty assessed under this section shall be 
                determined in accordance with such procedures as the 
                Secretary by regulation may prescribe. The facts 
                constituting the basis for determining the liability 
                for or amount of any penalty assessed under this 
                section, when officially determined in conformity with 
                the applicable regulations prescribed by the Secretary, 
                shall be final and conclusive and shall not be 
                reviewable by any other officer or agency of the 
                Government.
                    ``(B) Judicial review.--Nothing in this section 
                shall be construed as prohibiting any court of 
                competent jurisdiction from reviewing any determination 
                made by the Secretary with respect to whether the 
                determination was made in conformity with the 
                applicable law and regulations.
                    ``(C) Civil penalties.--All penalties imposed under 
                this section shall for all purposes be considered civil 
                penalties.
            ``(5) Reduction of penalties.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law and except as provided in subparagraph 
                (B), the Secretary may reduce the amount of any penalty 
                assessed against handlers under this section by any 
                appropriate amount, including, in an appropriate case, 
                eliminating the penalty entirely, if the Secretary 
                finds that the violation on which the penalty is based 
                was minor or inadvertent, and that the reduction of the 
                penalty will not impair the operation of the peanut 
                program.
                    ``(B) Failure to export contracted additional 
                peanuts.--The amount of any penalty imposed on a 
                handler under this section that resulted from the 
                failure to export or crush contracted additional 
                peanuts shall not be reduced by the Secretary.
    ``(i) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.
    (d) Extension of Experimental and Research Programs for Peanuts.--
Subsection 358c(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1358c(d)) is amended by striking ``1991 through 1995'' and inserting 
``1996 through 2002''.
    (e) Price Support Program.--Section 108B of the Agricultural Act of 
1949 (7 U.S.C. 1445c-3) is amended to read as follows:

``SEC. 108B. PRICE SUPPORT PROGRAM FOR PEANUTS.

    ``(a) Quota Peanuts.--
            ``(1) In general.--The Secretary shall make price support 
        available to producers through loans, purchases, and other 
        operations on quota peanuts for each crop.
            ``(2) Support rates.--The national average quota support 
        rate for each crop of quota peanuts shall be the national 
        average quota support rate for the immediately preceding crop 
        adjusted to reflect any increase or decrease during the 
        calendar year immediately preceding the marketing year for the 
        crop for which a level of support is being determined, in the 
        national average cost of peanut production, excluding any 
        change in the cost of land, and the cost of any assessments 
        required under subsection (g), except that in no event shall 
        the national average quota support rate be increased by more 
        than 5 percent of the national average quota support rate for 
        the preceding crop, nor be decreased by more than 5 percent of 
        the national average quota support rate for the preceding crop.
            ``(3) Inspection, handling, or storage.--The levels of 
        support so announced shall not be reduced by any deductions for 
        inspection, handling, or storage.
            ``(4) Location and other factors.--The Secretary may make 
        adjustments for location of peanuts and such other factors as 
        are authorized by section 403.
            ``(5) Announcement.--The Secretary shall announce the level 
        of support for quota peanuts of each crop not later than 
        February 15 preceding the marketing year for the crop for which 
        the level of support is being determined.
    ``(b) Additional Peanuts.--
            ``(1) In general.--The Secretary shall make price support 
        available to producers through loans, purchases, or other 
        operations on additional peanuts from each crop at such levels 
        as the Secretary finds appropriate, taking into consideration 
        the demand for peanut oil and peanut meal, expected prices of 
        other vegetable oils and protein meals, and the demand for 
        peanuts in foreign markets, except that the Secretary shall set 
        the support rate on additional peanuts at a level estimated by 
        the Secretary to ensure that there are no losses to the 
        Commodity Credit Corporation on the sale or disposal of the 
        peanuts.
            ``(2) Announcement.--The Secretary shall announce the level 
        of support for additional peanuts of each crop not later than 
        February 15 preceding the marketing year for the crop for which 
        the level of support is being determined.
    ``(c) Area Marketing Associations.--
            ``(1) Warehouse storage loans.--
                    ``(A) In general.--In carrying out subsections (a) 
                and (b), the Secretary shall make warehouse storage 
                loans available in each of the three producing areas 
                (described in section 1446.95 of title 7 of the Code of 
                Federal Regulations (January 1, 1989)) to a designated 
                area marketing association of peanut producers that is 
                selected and approved by the Secretary and that is 
                operated primarily for the purpose of conducting the 
                loan activities. The Secretary may not make warehouse 
                storage loans available to any cooperative that is 
                engaged in operations or activities concerning peanuts 
                other than those operations and activities specified in 
                this section and sections 358d and 358e of the 
                Agricultural Adjustment Act of 1938.
                    ``(B) Administrative and supervisory activities.--
                The area marketing associations shall be used in 
                administrative and supervisory activities relating to 
                price support and marketing activities under this 
                section and sections 358d and 358e of the Agricultural 
                Adjustment Act of 1938.
                    ``(C) Association costs.--Loans made to the 
                association under this paragraph shall include, in 
                addition to the price support value of the peanuts, 
                such costs as the area marketing association reasonably 
                may incur in carrying out its responsibilities, 
                operations, and activities under this section and 
                sections 358d and 358e of the Agricultural Adjustment 
                Act of 1938.
            ``(2) Pools for quota and additional peanuts.--
                    ``(A) In general.--The Secretary shall require that 
                each area marketing association establish pools and 
                maintain complete and accurate records by area and 
                segregation for quota peanuts handled under loan and 
                for additional peanuts placed under loan, except that 
                separate pools shall be established for Valencia 
                peanuts produced in New Mexico. Peanuts physically 
                produced outside the State of New Mexico shall not be 
                eligible for entry into or participation in the New 
                Mexico pools. Bright hull and dark hull Valencia 
                peanuts shall be considered as separate types for the 
                purpose of establishing the pools.
                    ``(B) Net gains.--Net gains on peanuts in each 
                pool, unless otherwise approved by the Secretary, shall 
                be distributed only to producers who placed peanuts in 
                the pool shall be distributed in proportion to the 
                value of the peanuts placed in the pool by each 
                producer. Net gains for peanuts in each pool shall 
                consist of the following:
                            ``(i) Quota peanuts.--For quota peanuts, 
                        the net gains over and above the loan 
                        indebtedness and other costs or losses incurred 
                        on peanuts placed in the pool plus an amount 
                        from all additional pool gains equal to any 
                        loss on disposition of all peanuts in the pool 
                        for quota peanuts.
                            ``(ii) Additional peanuts.--For additional 
                        peanuts, the net gains over and above the loan 
                        indebtedness and other costs or losses incurred 
                        on peanuts placed in the pool for additional 
                        peanuts less any amount allocated to offset any 
                        loss on the pool for quota peanuts as provided 
                        in clause (i).
    ``(d) Losses.--Notwithstanding any other provision of this section:
            ``(1) Quota peanuts placed under loan.--Any distribution of 
        net gains on additional peanuts (other than net gains on 
        additional peanuts in separate type pools established under 
        subsection (c)(2)(A) for Valencia peanuts produced in New 
        Mexico) shall be first reduced to the extent of any loss by the 
        Commodity Credit Corporation on quota peanuts placed under 
        loan.
            ``(2) Quota loan pools.--
                    ``(A) Transfers from additional loan pools.--The 
                proceeds due any producer from any pool shall be 
                reduced by the amount of any loss that is incurred with 
                respect to peanuts transferred from an additional loan 
                pool to a quota loan pool by such producer under 
                section 358-1(b)(8) of the Agricultural Adjustment Act 
                of 1938.
                    ``(B) Other losses.--Losses in area quota pools 
                shall be offset by reducing the gains of any producer 
                in such pool by the amount of pool gains attributed to 
                the same producer from the sale of additional peanuts 
                for export and domestic edible use.
    ``(e) Disapproval of Quotas.--Notwithstanding any other provision 
of law, no price support may be made available by the Secretary for any 
crop of peanuts with respect to which poundage quotas have been 
disapproved by producers, as provided for in section 358-1(d) of the 
Agricultural Adjustment Act of 1938.
    ``(f) Quality Improvement.--
            ``(1) Price support peanuts.--With respect to peanuts under 
        price support loan, the Secretary shall--
                    ``(A) promote the crushing of peanuts at a greater 
                risk of deterioration before peanuts of a lesser risk 
                of deterioration;
                    ``(B) ensure that all Commodity Credit Corporation 
                loan stocks of peanuts sold for domestic edible use 
                must be shown to have been officially inspected by 
                licensed Department of Agriculture inspectors both as 
                farmer stock and shelled or cleaned in-shell peanuts;
                    ``(C) continue to endeavor to operate the peanut 
                price support program so as to improve the quality of 
                domestic peanuts and ensure the coordination of 
                activities under the Peanut Administrative Committee 
                established under Marketing Agreement No. 146, 
                regulating the quality of domestically produced peanuts 
                (under the Agricultural Marketing Agreement Act of 1937 
                (7 U.S.C. 601 et seq.)); and
                    ``(D) ensure that any changes made in the price 
                support program as a result of this subsection 
                requiring additional production or handling at the farm 
                level shall be reflected as an upward adjustment in the 
                Department of Agriculture loan schedule.
            ``(2) Exports and other peanuts.--The Secretary shall 
        require that all peanuts, including peanuts imported into the 
        United States, meet all U.S. quality standards under Marketing 
        Agreement No. 146 and that importers of such peanuts fully 
        comply with inspection, handling, storage and processing 
        requirements implemented under Marketing Agreement No. 146. The 
        Secretary shall ensure that peanuts produced for the export 
        market meet quality, inspection, handling, storage and 
        processing requirements under Marketing Agreement No. 146.
    ``(g) Marketing Assessment.--
            ``(1) In general.--The Secretary shall provide, by 
        regulation, for a nonrefundable marketing assessment applicable 
        to each crop of domestically-grown peanuts and peanuts produced 
        outside the United States. The assessment shall be made in 
        accordance with this subsection and shall be on a per pound 
        basis in an amount equal to 1.2 percent of the applicable 
        support rate under this subsection.
            ``(2) First purchasers.--
                    ``(A) In general.--Except as provided under 
                paragraphs (4) and (5), the first purchaser of peanuts 
                shall--
                            ``(i) collect from the producer a marketing 
                        assessment equal to the quantity of peanuts 
                        acquired multiplied by .65 percent of the 
                        applicable national average support rate;
                            ``(ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the quantity 
                        of peanuts acquired multiplied by .55 percent 
                        of the applicable national average support 
                        rate; and
                            ``(iii) remit the amounts required under 
                        clauses (i) and (ii) to the Commodity Credit 
                        Corporation in a manner specified by the 
                        Secretary.
                    ``(B) Definition.--For purposes of this subsection, 
                the term `first purchaser' means a person acquiring 
                peanuts from a producer, except that in the case of 
                peanuts forfeited by a producer to the Commodity Credit 
                Corporation, such term means the person acquiring the 
                peanuts from the Commodity Credit Corporation.
            ``(3) Other peanuts.--Each importer of peanuts for domestic 
        edible use produced outside of the United States shall remit to 
        the Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to the product obtained by 
        multiplying the number of pounds of peanuts imported by the 
        importer by 1.2 percent of the national average support rate 
        for domestic edible peanuts.
            ``(4) Other private marketings.--In the case of a private 
        marketing by a producer directly to a consumer through a retail 
        or wholesale outlet or in the case of a marketing by the 
        producer outside of the continental United States, the producer 
        shall be responsible for the full amount of the assessment and 
        shall remit the assessment by such time as is specified by the 
        Secretary.
            ``(5) Loan peanuts.--In the case of peanuts that are 
        pledged as collateral for a price support loan made under this 
        section, one-half of the assessment shall be deducted from the 
        proceeds of the loan. The remainder of the assessment shall be 
        paid by the first purchaser of the peanuts. For purposes of 
        computing net gains on peanuts under this section, the 
        reduction in loan proceeds shall be treated as having been paid 
        to the producer.
            ``(6) Penalties.--If any person fails to collect or remit 
        an assessment required by this subsection or fails to comply 
        with such requirements for recordkeeping or otherwise as are 
        required by the Secretary to carry out this subsection, the 
        person shall be liable to the Secretary for a civil penalty up 
        to an amount determined by multiplying--
                    ``(A) the quantity of peanuts involved in the 
                violation; by
                    ``(B) the national average quota peanut price 
                support level for the applicable crop year.
            ``(7) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    ``(h) Crops.--Notwithstanding any other provision of law, this 
section shall be effective only for the 1996 through 2002 crops of 
peanuts.''.
    (f) Reports and Records.--Effective only for the 1996 through 2002 
crops of peanuts, the first sentence of section 373(a) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by 
inserting before ``all brokers and dealers in peanuts'' the following: 
``all producers engaged in the production of peanuts,''.
    (g) Suspension of Certain Price Support Provisions.--Section 101 of 
the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to 
the 1996 through 2002 crops of peanuts.
    (h) Regulations.--The Secretary of Agriculture shall issue such 
regulations as are necessary to carry out this Act and the amendments 
made by this Act. In issuing the regulations, the Secretary--
            (1) is encouraged to comply with subchapter II of chapter 5 
        of title 5, United States Code;
            (2) shall provide public notice through the Federal 
        Register of any such proposed regulations; and
            (3) shall allow adequate time for written public comment 
        prior to the formulation and issuance of any final regulations.
    (i) Food, Agriculture, Conservation, and Trade Act of 1990.--Title 
VIII of the Food, Agriculture, Conservation, and Trade Act of 1990 
(Public Law 101-624; 104 Stat. 3459) is amended--
            (1) in section 801 (104 Stat. 3459), by striking ``1995'' 
        and inserting ``2000'';
            (2) in section 807 (104 Stat. 3478), by striking ``1995'' 
        and inserting ``2000''; and
            (3) in section 808 (7 U.S.C. 1441 note), by striking 
        ``1995'' and inserting ``2000''.

SEC. 206. SUGAR PROGRAM.

    (a) Assurance of Sugar Supply.--Section 206 of the Agricultural Act 
of 1949 (7 U.S.C. 1446g) is amended to read as follows:

``SEC. 206. ASSURANCE OF SUGAR SUPPLY.

    ``(a) In General.--The price of each crop of sugar beets and 
sugarcane, respectively, shall be supported in accordance with this 
section.
    ``(b) Sugarcane.--Subject to subsection (d), the Secretary shall 
support the price of domestically grown sugarcane through loans at 18 
cents per pound for raw cane sugar.
    ``(c) Sugar Beets.--Subject to subsection (d), the Secretary shall 
support the price of each crop of domestically grown sugar beets 
through loans at the level provided for refined beet sugar produced 
from the 1995 crop of domestically grown sugar beets.
    ``(d) Adjustment in Support Level.--
            ``(1) Downward adjustment in support level.--
                    ``(A) In general.--The Secretary shall decrease the 
                support price of domestically grown sugarcane and sugar 
                beets from the price determined for the preceding crop, 
                as established under this section, if negotiated 
                reductions in export subsidies and domestic subsidies 
                provided for sugar of the European Union and other 
                major sugar growing, producing, and exporting countries 
                (`major countries') in the aggregate exceed the 
                commitments made as part of the Uruguay Round 
                Agreements.
                    ``(B) Extent of reduction.--The Secretary shall not 
                reduce the support price under this section below a 
                level that provides an equal measure of support to that 
                provided by any other major country or customs union 
                based on an examination of both domestic and export 
                subsidies subject to reduction in the Agreement on 
                Agriculture referenced in 19 U.S.C. 3511(d)(2).
                    ``(C) Major countries.--For purposes of this 
                subsection, the term `major countries' includes all 
                countries allocated a share of the tariff rate quota 
                for imported sugars and syrups by the United States 
                Trade Representative pursuant to additional U.S. note 5 
                of chapter 17 of the Harmonized Tariff Schedule, all 
                countries of the European Union, and the People's 
                Republic of China.
            ``(2) Increases in support level.--The Secretary may 
        increase the support level for each crop of domestically grown 
        sugarcane and sugar beets from the level determined for the 
        preceding crop based on such factors as the Secretary 
        determines appropriate, including changes (during the 2 crop 
        years immediately preceding the crop year for which the 
        determination is made) in the cost of sugar products, the cost 
        of domestic sugar production, the amount of any applicable 
        assessments, and other factors or circumstances that may 
        adversely affect domestic sugar production.
    ``(e) Loan Type; Processor Assurances.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall carry out this section through the use of recourse loans.
            ``(2) Modification.--During any fiscal year in which the 
        tariff rate quota for imports of sugar into the United States 
        is set at or is increased to a level that exceeds the minimum 
        level for such imports committed to by the United States under 
        the Agreement on Agriculture contained in the Uruguay Round of 
        Agreements of the General Agreement on Tariffs and Trade, the 
        Secretary shall carry out this section by making available 
        nonrecourse loans. Any recourse loan previously made available 
        by the Secretary under this section during such fiscal year
         shall be modified by the Secretary into a nonrecourse loan.
            ``(3) Processor assurances.--In order to effectively 
        support the prices of sugar beets and sugarcane received by the 
        producer, the Secretary shall obtain from each processor that 
        receives a loan under this section such assurances as the 
        Secretary considers adequate that, if the Secretary is required 
        under paragraph (2) to make nonrecourse loans available, or 
        modify recourse loans into nonrecourse loans, each producer 
        served by the processor will receive the appropriate minimum 
        payment for sugar beets and sugarcane delivered by the 
        producer, as determined by the Secretary.
    ``(f) Announcements.--In order to ensure the efficient 
administration of the program under this section and the effective 
support of the price of sugar, the Secretary shall announce the type of 
loans available and the loan rates for beet sugar and cane sugar for 
any fiscal year under this section as far in advance as is practicable.
    ``(g) Loan Term.--
            ``(1) In general.--Except as provided in paragraph (2) and 
        subsection (h), loans under this section during any fiscal year 
        shall be made available not earlier than the beginning of the 
        fiscal year and shall mature at the end of 3 months.
            ``(2) Extension.--The maturity of a loan under this section 
        may be extended for up to 2 additional 3-month periods, at the 
        option of the borrower, upon written request to the Commodity 
        Credit Corporation. The maturity of a loan may not be extended 
        under this paragraph beyond the end of the fiscal year.
    ``(h) Supplementary Loans.--Subject to subsection (d), the 
Secretary shall make available to eligible processors price support 
loans with respect to sugar processed from sugar beets and sugarcane 
harvested in the last 3 months of a fiscal year. Such loans shall 
mature at the end of the fiscal year. The processor may repledge the 
sugar as collateral for a price support loan in the subsequent fiscal 
year, except that the second loan shall--
            ``(1) be made at the loan rate in effect at the time the 
        second loan is made; and
            ``(2) mature in not more than 9 months less the quantity of 
        time that the first loan was in effect.
    ``(i) Use of Commodity Credit Corporation.--The Secretary shall use 
the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this section.
    ``(j) Marketing Assessments.--The following assessments shall be 
collected with respect to all sugar marketed within the United States 
during the 1996 through 2003 fiscal years:
            ``(1) Beet sugar.--The first seller of beet sugar produced 
        from sugar beets or sugar beet molasses, or refined sugar 
        refined outside of the United States, shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to 1.1794 percent of the loan 
        level established under subsection (b) per pound of sugar 
        marketed.
            ``(2) Cane sugar.--The first seller of raw cane sugar 
        produced from sugarcane or sugarcane molasses, shall remit to 
        the Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to 1.1 percent of the loan level 
        established under subsection (b) per pound of sugar marketed 
        (including the transfer or delivery of the sugar to a refinery 
        for further processing or marketing).
            ``(3) Collection.--
                    ``(A) Timing.--Marketing assessments required under 
                this subsection shall be collected and remitted to the 
                Commodity Credit Corporation within 30 days of the date 
                that the sugar is marketed.
                    ``(B) Manner.--Subject to subparagraph (A), 
                marketing assessments shall be collected under this 
                subsection in the manner prescribed by the Secretary 
                and shall be nonrefundable.
            ``(4) Penalties.--If any person fails to remit an 
        assessment required by this subsection or fails to comply with 
        such requirements for recordkeeping or otherwise as are 
        required by the Secretary to carry out this subsection, the 
        person shall be liable to the Secretary for a civil penalty up 
        to an amount determined by multiplying--
                    ``(A) the quantity of sugar involved in the 
                violation; by
                    ``(B) the loan level for the applicable crop of 
                sugarcane or sugar beets from which the sugar is 
                produced.
    For the purposes of this paragraph, refined sugar shall be treated 
as produced from sugar beets.
            ``(5) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
            ``(6) Regulations.--The Secretary shall promulgate 
        regulations to carry out this subsection.
    ``(k) Information Reporting.--
            ``(1) Duty of processors and refiners to report.--All 
        sugarcane processors, cane sugar refiners, and sugar beet 
        processors shall furnish the Secretary, on a monthly basis, 
        such information as the Secretary may require to administer 
        sugar programs, including the quantity of purchases of 
        sugarcane, sugar beets, and sugar, and production, importation, 
        distribution, and stock levels of sugar.
            ``(2) Duty of producers to report.--In order to efficiently 
        and effectively carry out the program under this section, the 
        Secretary may require a producer of sugarcane or sugar beets to 
        report, in the manner prescribed by the Secretary, the 
        producer's sugarcane or sugar beet yields and acres planted to 
        sugarcane or sugar beets, respectively.
            ``(3) Penalty.--Any person willfully failing or refusing to 
        furnish the information, or furnishing willfully any false 
        information, shall be subject to a civil penalty of not more 
        than $10,000 for each such violation.
            ``(4) Monthly reports.--Taking into consideration the 
        information received under paragraph (1), the Secretary shall 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    ``(l) Sugar Estimates.--
            ``(1) Domestic requirement.--Before the beginning of each 
        fiscal year, the Secretary shall estimate the domestic sugar 
        requirement of the United States equal to Total Estimated 
        Disappearance minus the quantity of sugar that will be 
        available from carry-in stocks.
            ``(2) Total disappearance.--For the purposes of this 
        subsection, the term `total estimated disappearance' means the 
        quantity of sugar, as estimated by the Secretary, that will be 
        consumed in the United States during the fiscal year (other 
        than sugar imported for the production of polyhydric alcohol or 
        to be refined and reexported in refined form or in sugar 
        containing products) plus the quantity of sugar that would 
        provide for adequate carryover stocks.
            ``(3) Quarterly reestimates.--The Secretary shall make 
        quarterly reestimates of sugar consumption, stocks, production, 
        and imports for a fiscal year no later than the beginning of 
        each of the second through fourth quarters of the fiscal year.
    ``(m) Definition of Market.--For purposes of this section, the term 
`market' means to sell or otherwise dispose of in commerce in the 
United States (including, with respect to any integrated processor and 
refiner, the movement of raw cane sugar into the refining process) and 
deliver to a buyer.
    ``(n) Crops.--This section shall be effective only for the 1996 
through 2002 crops of sugar beets and sugarcane.''.
    (b) Conforming Amendment.--Part VII ob subtitle B of title III of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa, et seq.) is 
repealed.

SEC. 207. EFFECT OF AMENDMENTS ON 1991 THROUGH 1995 CROPS.

    The amendments made by this tile shall not affect the authority of 
the Secretary of Agriculture to carry out a price support, production 
adjustment, or payment program for any of the 1991 through 1995 crops 
of an agricultural commodity established under a provision of law as in 
effect immediately before the enactment of this Act.

                TITLE III--GENERAL COMMODITY PROVISIONS

SEC. 301. EXTENSION OF SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION 
              AUTHORITY.

    Section 113 of the Agricultural Act of 1949 (7 U.S.C. 1445h) is 
amended by striking ``1995'' and inserting ``2002''.

SEC. 302. EXTENSION OF DEFICIENCY AND LAND DIVERSION PAYMENTS.

    Section 114 of the Agricultural Act of 1949 (7 U.S.C. 1445j) is 
amended--
            (1) in subsections (a)(1) and (c), by striking ``1997'' 
        each place it appears and inserting ``2002''; and
            (2) in subsection (b), by striking ``1995'' and inserting 
        ``2002''.

SEC. 303. EXTENSION OF AUTHORITY TO ADJUST ESTABLISHED PRICES.

    Section 402(b) of the Agricultural Act of 1949 (7 U.S.C. 1422(b)) 
is amended by striking ``1995'' and inserting ``2002''.
SEC. 304. EXTENSION OF LIMITATION ON ADJUSTMENTS OF SUPPORT PRICES.

    Section 403(c) of the Agricultural Act of 1949 (7 U.S.C. 1423(c)) 
is amended by striking ``1995'' and inserting ``2002''.

SEC. 305. EXTENSION OF OPTION TO EXTEND PROGRAMS.

    Section 406(b) of the Agricultural Act of 1949 (7 U.S.C. 1426(b)) 
is amended--
            (1) by striking ``1995'' each place it appears and 
        inserting ``2002'';
            (2) by striking ``1996'' each place it appears and 
        inserting ``2003''; and
            (3) in paragraph (4), by striking ``November 28, 1990'' and 
        inserting ``January 1, 1995''.

SEC. 306. REFERENCES TO TERMS REGARDING PRICE SUPPORT.

    Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C. 
1428(k)(3)) is amended by striking ``1995'' and inserting ``2002''.

SEC. 307. EXTENSION OF ACREAGE BASE AND YIELD SYSTEM.

    Title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is 
amended--
            (1) in subsections (c)(3) and (h)(2)(A) of section 503 (7 
        U.S.C. 1463), by striking ``1997'' each place it appears and 
        inserting ``2002'';
            (2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C. 
        1465(b)), by striking ``1997'' each place it appears and 
        inserting ``2002''; and
            (3) in section 509 (7 U.S.C. 1469), by striking ``1997'' 
        and inserting ``2002''.

SEC. 308. NORMALLY PLANTED ACREAGE.

    Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 
1309) is amended in subsections (a), (b)(1), and (c) by striking 
``1995'' each place it appears and inserting ``2002''.

SEC. 309. EXTENSION OF NATIONAL AGRICULTURAL COST OF PRODUCTION 
              STANDARDS REVIEW BOARD.

    Section 1014 of the Agriculture and Food Act of 1981 (7 U.S.C. 
4110) is amended by striking ``1995'' and inserting ``2002''.

SEC. 310. EXTENSION OF PAYMENT LIMITATIONS.

    Title X of the Food Security Act of 1985 (Public Law 99-198; 99 
Stat. 1444) is amended--
            (1) in paragraphs (1)(A), (1)(B), and (2)(A) of section 
        1001 (7 U.S.C. 1308), by striking ``1997'' each place it 
        appears and inserting ``2002''; and
            (2) in section 1001C(a) (7 U.S.C. 1308-3(a)), by striking 
        ``1997'' both places it appears and inserting ``2002''.

SEC. 311. EXTENSION OF REQUIREMENTS FOR NOTICE AND PUBLIC PARTICIPATION 
              IN SECRETARY DETERMINATIONS.

    Section 1017(b) of the Food Security Act of 1985 (7 U.S.C. 1385 
note) is amended by striking ``1995'' and inserting ``2002''.

SEC. 312. DETERMINATION OF NORMAL SUPPLY.

    Section 1019 of the Food Security Act of 1985 (7 U.S.C. 1310a) is 
amended by striking ``1995'' and inserting ``2002''.

SEC. 313. EXTENSION OF OPTIONS PILOT PROGRAM.

    The Options Pilot Program Act of 1990 (subtitle E of title XI of 
Public Law 101-624; 104 Stat. 3518; 7 U.S.C. 1421 note) is amended--
            (1) in subsections (a) and (b) of section 1153, by striking 
        ``1995'' each place it appears and inserting ``2002''; and
            (2) in section 1154(b)(1)(A), by striking ``1995'' both 
        places it appears and inserting ``2002''.
    TITLE IV--REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM

SEC. 401. REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM.

    (a) Repeal.--The Emergency Livestock Feed Assistance Act of 1988 
(title VI of the Agricultural Act of 1949; 7 U.S.C. 1471-1471j) is 
repealed.
    (b) Effect of Repeal on Approved Applications for Assistance.--The 
repeal of the Emergency Livestock Feed Assistance Act of 1988 by 
subsection (a) shall not affect the provision of payments or benefits 
under such Act pursuant to a completed application approved by the 
Secretary of Agriculture before the date of the enactment of this Act. 
The Emergency Livestock Feed Assistance Act of 1988, as in effect on 
the day before the date of the enactment of this Act, shall continue to 
apply to the provision of payments or benefits pursuant to such an 
application.

                    TITLE V--FEDERAL CROP INSURANCE

SEC. 501. CONVERSION OF CATASTROPHIC RISK PROTECTION PROGRAM TO A 
              VOLUNTARY PROGRAM.

    Section 508(b)(7) of the Federal Crop Insurance Act (7 U.S.C. 
1508(b)(7)) is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                a producer may decline to obtain catastrophic risk 
                protection, yet remain eligible for any price support 
                or production adjustment program, the conservation 
                reserve program, or any benefit described in section 
                371 of the Consolidated Farm and Rural Development Act, 
                if the producer agrees in writing to waive any 
                eligibility for emergency crop loss assistance in 
                connection with losses to any crop for which the 
                producer declines to obtain catastrophic risk 
                protection.''.

                    TITLE VI--MISCELLANEOUS PROGRAMS

SEC. 601. REDUCTION IN FUNDING LEVELS FOR EXPORT ENHANCEMENT PROGRAM.

    Section 301(e) of the Trade Act of 1978 (7 U.S.C. 5651(e)) is 
amended by striking paragraph (1) and inserting the following new 
paragraph:
            ``(1) In general.--To carry out the program established 
        under this section, the Commodity Credit Corporation shall make 
        available--
                    ``(A) for each of the fiscal years 1991 through 
                1995, not less than $500,000,000 of the funds or 
                commodities of the Commodity Credit Corporation; and
                    ``(B) for each of the fiscal years 1996 through 
                2002, not more than $400,000,000 of the funds or 
                commodities of the Commodity Credit Corporation.''.

SEC. 602. SPENDING LIMITATIONS ON CONSERVATION RESERVE PROGRAM.

    Title XII of the Food Security Act of 1985 is amended by inserting 
after section 1236 (16 U.S.C. 3836) the following new section:

``SEC. 1236A. SPENDING LIMITATIONS ON CONSERVATION RESERVE PROGRAM.

    ``The Secretary shall ensure that expenditures under this 
subchapter for the conservation reserve program do not exceed the 
following amounts:
            ``(1) $1,852,000,000 during fiscal year 1997.
            ``(2) $1,385,000,000 during fiscal year 1998.
            ``(3) $1,106,000,000 during fiscal year 1999.
            ``(4) $918,000,000 during fiscal year 2000.
            ``(5) $779,000,000 during fiscal year 2001.
            ``(6) $753,000,000 during fiscal year 2002.''.
      TITLE VII--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

SEC. 701. ESTABLISHMENT.

    There is hereby established a commission to be known as the 
``Commission on 21st Century Production Agriculture'' (hereinafter in 
this title referred to as the ``Commission'').

SEC. 702. COMPOSITION.

    (a) Appointment.--The Commission shall be composed of 11 members, 
appointed as follows:
            (1) Three members shall be appointed by the President.
            (2) Four members shall be appointed by the Chairman of the 
        Committee on Agriculture of the House of Representatives in 
        consultation with the ranking minority member of the Committee.
            (3) Four members shall be appointed by the Chairman of the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        in consultation with the ranking minority member of the 
        Committee.
    (b) Qualifications.--The members of the Commission shall be 
appointed from among persons having knowledge and experience in 
agricultural production, marketing, finance, or trade.
    (c) Term of Members; Vacancies.--Members of the Commission shall be 
appointed for the life of the Commission. A vacancy on the Commission 
shall not affect its powers, but shall be filled in the same manner as 
the original appointment was made.
    (d) Time for Appointment; First Meeting.--The members of the 
Commission shall be appointed not later than October 1, 1997. The 
Commission shall convene its first meeting to carry out its duties 
under this title 30 days after six members of the Commission have been 
appointed.
    (e) Chairman.--The chairman of the Commission shall be designated 
jointly by the Chairman of the Committee on Agriculture of the House of 
Representatives and the Chairman of the Committee on Agriculture, 
Nutrition, and Forestry of the Senate from among the members of the 
Commission.

SEC. 703. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION 
              AGRICULTURE.

    (a) Initial Review.--The Commission shall conduct a comprehensive 
review of changes in the condition of production agriculture in the 
United States since the date of the enactment of this Act and the 
extent to which such changes are the result of the amendments made by 
this Act. The review shall include the following:
            (1) An assessment of the success of farm programs under the 
        Agricultural Act of 1949 in supporting the economic viability 
        of farming in the United States.
            (2) An assessment of the food security situation in the 
        United States in the areas of trade, consumer prices, 
        international competitiveness of United States production 
        agriculture, food supplies, and humanitarian relief.
            (3) An assessment of the changes in farm land values and 
        agricultural producer incomes since the date of the enactment 
        of this Act.
            (4) An assessment of the extent to which regulatory relief 
        for agricultural producers has been enacted and implemented, 
        including the application of cost/benefit principles in the 
        issuance of agricultural regulations.
            (5) An assessment of the extent to which tax relief for 
        agricultural producers has been enacted in the form of capital 
        gains tax reductions, estate tax exemptions, and mechanisms to 
        average tax loads over high and low income years.
            (6) An assessment of the effect of any Government 
        interference in agricultural export markets, such as the 
        imposition of trade embargoes, and the degree of implementation 
        and success of international trade agreements.
    (b) Subsequent Review.--The Commission shall conduct a 
comprehensive review of the future of production agriculture in the 
United States and the appropriate role of the Federal Government in 
support of production agriculture. The review shall include the 
following:
            (1) An assessment of changes in the condition of production 
        agriculture in the United States since the initial review 
        conducted under subsection (a).
            (2) Identification of the appropriate future relationship 
        of the Federal Government with production agriculture after 
        2002.
            (3) An assessment of the manpower and infrastructure 
        requirements of the Department of Agriculture necessary to 
        support the future relationship of the Federal Government with 
        production agriculture.
    (c) Recommendations.--In carrying out the subsequent review under 
subsection (b), the Commission shall develop specific recommendations 
for legislation to achieve the appropriate future relationship of the 
Federal Government with production agriculture identified under 
subsection (a)(2).

SEC. 704. REPORTS.

    (a) Report on Initial Review.--Not later than January 1, 1999, the 
Commission shall submit to the President, the Committee on Agriculture 
of the House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report containing the results 
of the initial review conducted under section 703(a).
    (b) Report on Subsequent Review.--Not later than January 1, 2001, 
the Commission shall submit to the President and the congressional 
committees specified in subsection (a) a report containing the results 
of the subsequent review conducted under section 703(b).

SEC. 705. POWERS.

    (a) Hearings.--The Commission may, for the purpose of carrying out 
this title, conduct such hearings, sit and act at such times, take such 
testimony, and receive such evidence, as the Commission considers 
appropriate.
    (b) Assistance From Other Agencies.--The Commission may secure 
directly from any department or agency of the Federal Government such 
information, relevant to its duties under this title, as may be 
necessary to carry out such duties. Upon request of the chairman of the 
Commission, the head of the department or agency shall, to the extent 
permitted by law, furnish such information to the Commission.
    (c) Mail.--The Commission may use the United States mails in the 
same manner and under the same conditions as the departments and 
agencies of the Federal Government.
    (d) Assistance From Secretary.--The Secretary of Agriculture shall 
provide to the Commission appropriate office space and such reasonable 
administrative and support services as the Commission may request.

SEC. 706. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet on a regular basis (as 
determined by the chairman) and at the call of the chairman or a 
majority of its members.
    (b) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.

SEC. 707. PERSONNEL MATTERS.

    (a) Compensation.--Each member of the Commission shall serve 
without compensation, but shall be allowed travel expenses including 
per diem in lieu of subsistence, as authorized by section 5703 of title 
5, United States Code, when engaged in the performance of Commission 
duties.
    (b) Staff.--The Commission shall appoint a staff director, who 
shall be paid at a rate not to exceed the maximum rate of basic pay 
under section 5376 of title 5, United States Code, and such 
professional and clerical personnel as may be reasonable and necessary 
to enable the Commission to carry out its duties under this title 
without regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and without regard 
to the provisions of chapter 51 and subchapter III of chapter 53 of 
such title, or any other provision of law, relating to the number, 
classification, and General Schedule rates. No employee appointed under 
this subsection (other than the staff director) may be compensated at a 
rate to exceed the maximum rate applicable to level 15 of the General 
Schedule.
    (c) Detailed Personnel.--Upon request of the chairman of the 
Commission, the head of any department or agency of the Federal 
Government is authorized to detail, without reimbursement, any 
personnel of such department or agency to the Commission to assist the 
Commission in carrying out its duties under this section. The detail of 
any such personnel may not result in the interruption or loss of civil 
service status or privilege of such personnel.

SEC. 708. TERMINATION OF COMMISSION.

    The Commission shall terminate upon submission of the final report 
required by section 704.
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