I

104TH CONGRESS

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.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

5 ‘‘Agricultural Competitiveness Act of 1995’’.

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

7 this Act is as follows:
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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
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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.

1 SEC. 2. SENSE OF CONGRESS REGARDING REGULATORY

2 AND TAX RELIEF FOR AGRICULTURAL PRO3 DUCERS AND ROLE OF FARM PROGRAMS IN

4 ENDING THE FEDERAL DEFICIT.

5 (a) FINDINGS.—The Congress finds that—

6 (1) the continuation of significant Federal

7 budgetary deficits harms the economic well-being of

8 the United States and is detrimental to the develop9 ment of sound, long-term agricultural policy;

10 (2) agricultural price support and production

11 adjustment programs are necessary for the contin12 ued economic health of United States agriculture,

13 which must compete in international markets

14 against subsidized foreign competition; and

15 (3) regulatory and tax relief for agricultural

16 producers is necessary so that agricultural producers

17 in the United States can continue to produce an
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1 abundant supply of agricultural commodities and

2 compete in international markets.

3 (b) SENSE OF CONGRESS.—Based on the findings ex4 pressed in subsection (a), it is the sense of Congress

5 that—

6 (1) agricultural price support and production

7 adjustment programs should be—

8 (A) implemented, to the maximum extent

9 practicable, in a manner that is consistent with

10 the primary goal of the concurrent resolution on

11 the budget for fiscal year 1996 (H.Con.Res. 67,

12 agreed to June 29, 1995) to end Federal budg13 et deficits; and

14 (B) modified, as necessary, to ensure that

15 the programs comply with applicable budget

16 reconciliation instructions in the concurrent res17 olution that are designed to end Federal budget

18 deficits, in a manner consistent with section

19 306 of the concurrent resolution;

20 (2) regulatory relief for agricultural producers

21 should be enacted and implemented, including the

22 application of cost/benefit principles in the issuance

23 of agricultural regulations; and

24 (3) tax relief for agricultural producers should

25 be enacted in the form of capital gains tax reduc-
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1 tions, estate tax exemptions, and mechanisms to av2 erage tax loads over high and low income years.

3 TITLE I—EXTENSION OF CER4 TAIN COMMODITY PROGRAMS

5 SEC. 101. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE

6 REDUCTION PROGRAMS FOR WHEAT

7 THROUGH 2002.

8 (a) AGRICULTURAL ACT OF 1949.—Section 107B of

9 the Agricultural Act of 1949 (7 U.S.C. 1445b–3a) is

10 amended—

11 (1) in the section heading by striking ‘‘1995’’

12 and inserting ‘‘2002’’;

13 (2) in subsections (a)(1), (a)(4)(C), (b)(1),

14 (c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(3)(A),

15 (e)(3)(C)(iii), (f)(1), (q), by striking ‘‘1995’’ each

16 place it appears and inserting ‘‘2002’’;

17 (3) in the heading of subsection (c)(1)(B)(ii),

18 by striking ‘‘AND 1995’’ and inserting ‘‘THROUGH

19 2002’’;

20 (4) in subsection (c)(1)(B)(ii), by striking ‘‘and

21 1995’’ and inserting ‘‘through 2002’’; and

22 (5) in subsections (c)(1)(E)(i) and

23 (c)(1)(E)(vii), by striking ‘‘1997’’ each place it ap24 pears and inserting ‘‘2002’’;
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1 (6) in the heading of subsection (e)(1)(G), by

2 striking ‘‘1995’’ and inserting ‘‘2002’’; and

3 (7) in subsection (g)(1), by striking ‘‘and

4 1995’’ and inserting ‘‘through 2002’’.

5 (b) FOOD SECURITY WHEAT RESERVE.—Section

6 302(i) of the Food Security Wheat Reserve Act of 1980

7 (7 U.S.C. 1736f–1(i)) is amended by striking ‘‘1995’’ both

8 places it appears and inserting ‘‘2002’’.

9 (c) NONAPPLICABILITY OF CERTIFICATE REQUIRE10 MENTS.—Sections 379d through 379j of the Agricultural

11 Adjustment Act of 1938 (7 U.S.C. 1379d–1379j) shall not

12 be applicable to wheat processors or exporters during the

13 period June 1, 1996, through May 31, 2003.

14 (d) SUSPENSION OF LAND USE, WHEAT MARKETING

15 ALLOCATION, AND PRODUCER CERTIFICATE PROVI16 SIONS.—Sections 331 through 339, 379b, and 379c of the

17 Agricultural Adjustment Act of 1938 (7 U.S.C. 1331

18 through 1339, 1379b, and 1379c) shall not be applicable

19 to the 1996 through 2002 crops of wheat.

20 (e) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—

21 The joint resolution entitled ‘‘A joint resolution relating

22 to corn and wheat marketing quotas under the Agricul23 tural Adjustment Act of 1938, as amended’’, approved

24 May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be
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1 applicable to the crops of wheat planted for harvest in the

2 calendar years 1996 through 2002.

3 (f) NONAPPLICABILITY OF SECTION 107 OF AGRI4 CULTURAL ACT OF 1949.—Section 107 of the Agricultural

5 Act of 1949 (7 U.S.C. 1445a) shall not be applicable to

6 the 1996 through 2002 crops of wheat.

7 SEC. 102. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE

8 REDUCTION PROGRAMS FOR FEED GRAINS

9 THROUGH 2002.

10 (a) AGRICULTURAL ACT OF 1949.—Section 105B of

11 the Agricultural Act of 1949 (7 U.S.C. 1444f) is amend12 ed—

13 (1) in the section heading, by striking ‘‘1995’’

14 and inserting ‘‘2002’’;

15 (2) in subsections (a)(1), (a)(4)(C), (a)(6),

16 (b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(1)(H),

17 (e)(2)(H), (e)(3)(A), (e)(3)(C)(iii), (f)(1), (p)(1),

18 (q)(1), and (r), by striking ‘‘1995’’ each place it ap19 pears and inserting ‘‘2002’’;

20 (3) in the heading of subsection (c)(1)(B)(ii),

21 by striking ‘‘AND 1995’’ and inserting ‘‘THROUGH

22 2002’’;

23 (4) in subsection (c)(1)(B)(ii), by striking ‘‘and

24 1995’’ and inserting ‘‘through 2002’’;
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1 (5) in subsections (c)(1)(E)(i) and

2 (c)(1)(E)(vii), by striking ‘‘1997’’ each place it ap3 pears and inserting ‘‘2002’’;

4 (6) in the headings of subsections (e)(1)(G) and

5 (e)(1)(H), by striking ‘‘1995’’ both places it appears

6 and inserting ‘‘2002’’; and

7 (7) in subsection (g)(1), by striking ‘‘and

8 1995’’ and inserting ‘‘through 2002’’.

9 (b) RECOURSE LOAN PROGRAM FOR SILAGE.—Sec10 tion 403 of the Food Security Act of 1985 (7 U.S.C.

11 1444e–1) is amended by striking ‘‘1996’’ and inserting

12 ‘‘2002’’.

13 (c) NONAPPLICABILITY OF SECTION 105 OF AGRI14 CULTURAL ACT OF 1949.—Section 105 of the Agricultural

15 Act of 1949 (7 U.S.C. 1444b) shall not be applicable to

16 the 1996 through 2002 crops of feed grains.

17 SEC. 103. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE

18 REDUCTION PROGRAMS FOR COTTON

19 THROUGH 2002.

20 (a) EXTRA LONG STAPLE COTTON.—Section

21 103(h)(16) of the Agricultural Act of 1949 (7 U.S.C.

22 1444(h)(16)) is amended by striking ‘‘1996’’ and inserting

23 ‘‘2003’’.

24 (b) UPLAND COTTON.—Section 103B of the Agricul25 tural Act of 1949 (7 U.S.C. 1444–2) is amended—
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1 (1) in the section heading, by striking ‘‘1997’’

2 and inserting ‘‘2002’’;

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

4 (c)(1)(B)(ii), (c)(1)(D)(i), (c)(1)(D)(v)(II), and (o),

5 by striking ‘‘1997’’ each place it appears and insert6 ing ‘‘2002’’;

7 (3) in the heading of subsection

8 (c)(1)(D)(v)(II), by striking ‘‘1997 CROPS’’ and in9 serting ‘‘2002 CROPS’’;

10 (4) in subsection (e)(1)(D), by striking ‘‘the

11 1997 crop’’ and inserting ‘‘each of the 1997 through

12 2002 crops’’;

13 (5) in subsections (e)(3)(A) and (f)(1), by strik14 ing ‘‘1995’’ each place it appears and inserting

15 ‘‘2002’’; and

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

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

18 place it appears and inserting ‘‘2003’’.

19 (c) COTTONSEED AND COTTONSEED OIL.—Section

20 203(b) of the Agricultural Act of 1949 (7 U.S.C.

21 1446d(b)) is amended by striking ‘‘1995’’ and inserting

22 ‘‘2002’’.

23 (d) AGRICULTURAL ADJUSTMENT ACT OF 1938.—

24 Section 374(a) of the Agricultural Adjustment Act of
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1 1938 (7 U.S.C. 1374(a)) is amended by striking ‘‘1995’’

2 each place it appears and inserting ‘‘2002’’.

3 (e) SUSPENSION OF BASE ACREAGE ALLOTMENTS,

4 MARKETING QUOTAS, AND RELATED PROVISIONS.—Sec5 tions 342, 343, 344, 345, 346, and 377 of the Agricultural

6 Adjustment Act of 1938 (7 U.S.C. 1342–1346 and 1377)

7 shall not be applicable to any of the 1996 through 2002

8 crops of upland cotton.

9 (f) SUSPENSION OF MISCELLANEOUS COTTON PRO10 VISIONS.—Section 103(a) of the Agricultural Act of 1949

11 (7 U.S.C. 1444(a)) shall not be applicable to the 1996

12 through 2002 crops.

13 (g) PRELIMINARY ALLOTMENTS FOR 2003 CROP OF

14 UPLAND COTTON.—Notwithstanding any other provision

15 of law, the permanent State, county, and farm base acre16 age allotments for the 1977 crop of upland cotton, ad17 justed for any underplantings in 1977 and reconstituted

18 as provided in section 379 of the Agricultural Adjustment

19 Act of 1938 (7 U.S.C. 1379), shall be the preliminary al20 lotments for the 2003 crop.

21 (h) COTTON CLASSIFICATION SERVICES.—The first

22 sentence of section 3a of the Act of March 3, 1927 (com23 monly known as the ‘‘Cotton Statistics and Estimates

24 Act’’) (chapter 337; 7 U.S.C. 473a), is amended by strik25 ing ‘‘1996’’ and inserting ‘‘2002’’.
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1 SEC. 104. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE

2 REDUCTION PROGRAMS FOR RICE THROUGH

3 2002.

4 Section 101B of the Agricultural Act of 1949 (7

5 U.S.C. 1441–2) is amended—

6 (1) in the section heading, by striking ‘‘1995’’

7 and inserting ‘‘2002’’;

8 (2) in subsections (a)(1), (a)(3), (b)(1),

9 (c)(1)(A), (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n),

10 by striking ‘‘1995’’ each place it appears and insert11 ing ‘‘2002’’;

12 (3) in subsection (a)(5)(D)(i), by striking

13 ‘‘1996’’ and inserting ‘‘2001’’;

14 (4) in the heading of subsection (c)(1)(B)(ii),

15 by striking ‘‘AND 1995’’ and inserting ‘‘THROUGH

16 2002’’;

17 (5) in subsection (c)(1)(B)(ii), by striking ‘‘and

18 1995’’ and inserting ‘‘through 2002’’;

19 (6) in subsections (c)(1)(D)(i) and

20 (c)(1)(D)(v)(II), by striking ‘‘1997’’ each place it

21 appears and inserting ‘‘2002’’; and

22 (7) in the heading of subsection

23 (c)(1)(D)(v)(II), by striking ‘‘1997 CROPS’’ and in24 serting ‘‘2002 CROPS’’.
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1 SEC. 105. EXTENSION OF LOANS AND PAYMENTS FOR OIL2 SEEDS THROUGH 2002.

3 Section 205 of the Agricultural Act of 1949 (7 U.S.C.

4 1446f) is amended—

5 (1) in the section heading, by striking ‘‘1995’’

6 and inserting ‘‘2002’’;

7 (2) in subsections (b), (c), (e)(1), and (n), by

8 striking ‘‘1995’’ each place it appears and inserting

9 ‘‘2002’’; and

10 (3) in subsections (c) and (h)(2), by striking

11 ‘‘1997’’ each places it appears and inserting ‘‘2002’’.

12 TITLE II—MODIFICATION OF

13 COMMODITY PROGRAM OPER14 ATIONS

15 SEC. 201. INCREASE IN FLEX ACRES TO REDUCE ACRES

16 FOR WHICH DEFICIENCY PAYMENTS ARE

17 AVAILABLE.

18 (a) WHEAT.—Subsection (c)(1)(C)(ii) of section

19 107B of the Agricultural Act of 1949 (7 U.S.C. 1445b–

20 3a) is amended by striking ‘‘85 percent’’ and inserting

21 ‘‘85 percent (through the 1995 crop of wheat) and 70 per22 cent (for the 1996 through 2002 crops)’’.

23 (b) FEED GRAINS.—Subsection (c)(1)(C)(ii) of sec24 tion 105B of such Act (7 U.S.C. 1444f) is amended by

25 striking ‘‘85 percent’’ and inserting ‘‘85 percent (through
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1 the 1995 crop) and 70 percent (for the 1996 through 2002

2 crops)’’.

3 (c) UPLAND COTTON.—Subsection (c)(1)(C)(ii) of

4 section 103B of such Act (7 U.S.C. 1444–2) is amended

5 by striking ‘‘85 percent’’ and inserting ‘‘85 percent

6 (through the 1995 crop of upland cotton) and 70 percent

7 (for the 1996 through 2002 crops)’’.

8 (d) RICE.—Subsection (c)(1)(C)(ii) of section 101B

9 of such Act (7 U.S.C. 1441–2) is amended by striking ‘‘85

10 percent’’ and inserting ‘‘85 percent (through the 1995

11 crop of rice) and 70 percent (for the 1996 through 2002

12 crops)’’.

13 SEC. 202. APPLICATION OF SAME REPAYMENT CRITERIA TO

14 0/50 AND 0/85 PAYMENTS AS REGULAR DEFI15 CIENCY PAYMENTS.

16 (a) WHEAT.—Subsection (c)(1)(E) of section 107B

17 of the Agricultural Act of 1949 (7 U.S.C. 1445b–3a) is

18 amended by striking clause (ii) and inserting the following

19 new clause:

20 ‘‘(ii) DEFICIENCY PAYMENTS; REPAY21 MENT.—Notwithstanding any other provi22 sion of this section, for the 1996 through

23 2002 crops of wheat, any producer who de24 votes a portion of the maximum payment

25 acres for wheat for the farm to conserva-
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1 tion uses (or other uses as provided in sub2 paragraph (F)) under this subparagraph

3 shall receive deficiency payments on the

4 acreage that is considered to be planted to

5 wheat and eligible for payments under this

6 subparagraph for the crop. Such deficiency

7 payments shall be made at the payment

8 rate provided in subparagraph (B) for defi9 ciency payments under subparagraph (A)

10 and shall be subject to repayment under

11 the terms set forth in section 114.’’.

12 (b) FEED GRAINS.—Subsection (c)(1)(E) of section

13 105B of such Act (7 U.S.C. 1444f) is amended by striking

14 clause (ii) and inserting the following new clause:

15 ‘‘(ii) DEFICIENCY PAYMENTS; REPAY16 MENT.—Notwithstanding any other provi17 sion of this section, for the 1996 through

18 2002 crops of feed grains, any producer

19 who devotes a portion of the maximum

20 payment acres for feed grains for the farm

21 to conservation uses (or other uses as pro22 vided in subparagraph (F)) under this sub23 paragraph shall receive deficiency pay24 ments on the acreage that is considered to

25 be planted to feed grains and eligible for
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1 payments under this subparagraph for the

2 crop. Such deficiency payments shall be

3 made at the payment rate provided in sub4 paragraph (B) for deficiency payments

5 under subparagraph (A) and shall be sub6 ject to repayment under the terms set

7 forth in section 114.’’.

8 (c) UPLAND COTTON.—Subsection (c)(1)(D) of sec9 tion 103B of such Act (7 U.S.C. 1444–2) is amended by

10 striking clause (iii) and inserting the following new clause:

11 ‘‘(iii) DEFICIENCY PAYMENTS; REPAY12 MENT.—Notwithstanding any other provi13 sion of this section, for the 1996 through

14 2002 crops of upland cotton, any producer

15 who devotes a portion of the maximum

16 payment acres for upland cotton for the

17 farm to conservation uses (or other uses as

18 provided in subparagraph (F)) under this

19 subparagraph shall receive deficiency pay20 ments on the acreage that is considered to

21 be planted to upland cotton and eligible for

22 payments under this subparagraph for the

23 crop. Such deficiency payments shall be

24 made at the payment rate provided in sub25 paragraph (B) for deficiency payments
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1 under subparagraph (A) and shall be sub2 ject to repayment under the terms set

3 forth in section 114.’’.

4 (d) RICE.—Subsection (c)(1)(D) of section 101B of

5 such Act (7 U.S.C. 1441–2) is amended by striking clause

6 (iii) and inserting the following new clause:

7 ‘‘(iii) DEFICIENCY PAYMENTS; REPAY8 MENT.—Notwithstanding any other provi9 sion of this section, for the 1996 through

10 2002 crops of rice, any producer who de11 votes a portion of the maximum payment

12 acres for rice for the farm to conservation

13 uses (or other uses as provided in subpara14 graph (F)) under this subparagraph shall

15 receive deficiency payments on the acreage

16 that is considered to be planted to rice and

17 eligible for payments under this subpara18 graph for the crop. Such deficiency pay19 ments shall be made at the payment rate

20 provided in subparagraph (B) for defi21 ciency payments under subparagraph (A)

22 and shall be subject to repayment under

23 the terms set forth in section 114.’’.
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1 SEC. 203. INCREASED PLANTING FLEXIBILITY.

2 (a) EXPANSION OF 25 PERCENT LIMITATION.—Sub3 section (c) of section 504 of the Agricultural Act of 1949

4 (7 U.S.C. 1464) is amended to read as follows:

5 ‘‘(c) LIMITATION ON ACREAGE.—The quantity of the

6 crop acreage base that may be planted to a commodity,

7 other than the specific program crop, under this section

8 may not exceed 100 percent of the crop acreage base.’’.

9 (b) TWO-WAY FLEXIBILITY.—Such section is further

10 amended by adding at the end the following new sub11 section:

12 ‘‘(f) TWO-WAY FLEXIBILITY.—

13 ‘‘(1) PLANTING ON HISTORICAL SOYBEAN ACRE14 AGE.—Notwithstanding any other provision of this

15 Act, producers of a program crop on a farm who are

16 participating in the production adjustment program

17 for the program crop under this Act shall be allowed

18 to plant the program crop in a quantity that exceeds

19 the permitted acreage for the crop without losing the

20 eligibility of the producers for loans, purchases, or

21 payments with respect to the crop under this Act if

22 the acreage planted to the program crop on the farm

23 in excess of the permitted acreage does not exceed

24 25 percent of the historical soybean acreage on the

25 farm for the crop.
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1 ‘‘(2) ADDITIONAL FLEXIBILITY.—Any authority

2 to plant a program crop in excess of the permitted

3 acreage for the crop under this subsection shall be

4 in addition to authority provided under subsection

5 (d).

6 ‘‘(3) LIMITATION.—The Secretary may limit

7 the application of this subsection with respect to a

8 program crop if the Secretary determines the limita9 tion to be necessary to prevent an increase in the

10 acreage limitation program that would otherwise be

11 implemented in accordance with sections 101B,

12 103B, 105B, and 107B during a crop year for the

13 crop.’’.

14 (c) CONFORMING AMENDMENTS.—Such section is

15 further amended—

16 (1) in subsection (d)—

17 (A) by striking ‘‘Notwithstanding’’ and in18 serting ‘‘Except as provided in subsection (f)

19 and notwithstanding’’; and

20 (B) in paragraph (1), by striking ‘‘25 per21 cent’’ and inserting ‘‘100 percent’’; and

22 (2) in subsection (e)(2)(A), by striking ‘‘25 per23 cent’’ and inserting ‘‘100 percent’’.
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1 SEC. 204. ALTERNATIVE REPAYMENT PROVISION FOR MAR2 KETING LOANS.

3 (a) WHEAT.—

4 (1) MARKETING LOAN REPAYMENT.—Sub5 section (a) of section 107B of the Agricultural Act

6 of 1949 (7 U.S.C. 1445b–3a) is amended—

7 (A) by striking paragraph (3) and all that

8 follows through paragraph (4)(A) and inserting

9 the following:

10 ‘‘(3) MARKETING LOANS.—

11 ‘‘(A) IN GENERAL.—The Secretary shall

12 permit the producers on a farm to repay a loan

13 made under this subsection for a crop at a level

14 (except as provided in subparagraph (C)) that

15 is the lesser of—

16 ‘‘(i) the loan level determined for the

17 crop; and

18 ‘‘(ii) the prevailing world market price

19 for wheat (adjusted to United States qual20 ity and location), as determined by the

21 Secretary.’’; and

22 (B) by redesignating paragraph (5) as

23 paragraph (4).

24 (2) CONFORMING AMENDMENT.—Subsection

25 (c)(1) of such section is amended by striking sub26 paragraph (D).
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1 (b) FEED GRAINS.—

2 (1) MARKETING LOAN REPAYMENT.—Sub3 section (a) of section 105B of the Agricultural Act

4 of 1949 (7 U.S.C. 1444f) is amended—

5 (A) by striking paragraph (3) and all that

6 follows through paragraph (4)(A) and inserting

7 the following:

8 ‘‘(3) MARKETING LOANS.—

9 ‘‘(A) IN GENERAL.—The Secretary shall

10 permit the producers on a farm to repay a loan

11 made under this subsection for a crop at a level

12 (except as provided in subparagraph (C)) that

13 is the lesser of—

14 ‘‘(i) the loan level determined for the

15 crop; and

16 ‘‘(ii) the prevailing world market price

17 for feed grains (adjusted to United States

18 quality and location), as determined by the

19 Secretary.’’; and

20 (B) by redesignating paragraphs (5) and

21 (6) as paragraphs (4) and (5), respectively.

22 (2) CONFORMING AMENDMENT.—Subsection

23 (c)(1) of such section is amended by striking sub24 paragraph (D).
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1 SEC. 205. PEANUT PROGRAM.

2 (a) NATIONAL POUNDAGE QUOTAS AND ACREAGE

3 ALLOTMENTS.—Section 358–1 of the Agricultural Adjust4 ment Act of 1938 (7 U.S.C. 1358–1) is amended to read

5 as follows:

6 ‘‘SEC. 358–1. NATIONAL POUNDAGE QUOTAS AND ACREAGE

7 ALLOTMENTS FOR PEANUTS.

8 ‘‘(a) NATIONAL POUNDAGE QUOTAS.—

9 ‘‘(1) ESTABLISHMENT.—The national poundage

10 quota for peanuts for each marketing year shall be

11 established by the Secretary at a level that is equal

12 to the quantity of peanuts (in tons) that the Sec13 retary estimates will be devoted in each such mar14 keting year to domestic edible and related uses, ex15 cluding seed. The Secretary shall also include in his

16 annual estimate of domestic edible and related uses,

17 the estimated quantity of peanuts and peanut prod18 ucts to be imported into the United States for the

19 marketing year for which the quota is being estab20 lished.

21 ‘‘(2) ANNOUNCEMENT.—The national poundage

22 quota for a marketing year shall be announced by

23 the Secretary not later than December 15 preceding

24 the marketing year.

25 ‘‘(3) APPORTIONMENT AMONG STATES.—The

26 national poundage quota established under para-
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1 graph (1) shall be apportioned among the States so

2 that the poundage quota allocated to each State

3 shall be equal to the percentage of the national

4 poundage quota allocated to farms in the State for

5 1995.

6 ‘‘(b) FARM POUNDAGE QUOTAS.—

7 ‘‘(1) IN GENERAL.—

8 ‘‘(A) ESTABLISHMENT.—A farm poundage

9 quota for each marketing year shall be estab10 lished—

11 ‘‘(i) for each farm that had a farm

12 poundage quota for peanuts for the 1995

13 marketing year;

14 ‘‘(ii) if the poundage quota appor15 tioned to a State under subsection (a)(3)

16 for any such marketing year is larger than

17 the quota for the immediately preceding

18 marketing year, for each other farm on

19 which peanuts were produced for market20 ing in at least 2 of the 3 immediately pre21 ceding crop years, as determined by the

22 Secretary; and

23 ‘‘(iii) as approved and determined by

24 the Secretary under section 358c, for each

25 farm on which peanuts are produced in
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1 connection with experimental and research

2 programs.

3 ‘‘(B) QUANTITY.—The farm poundage

4 quota for each marketing year for each farm

5 described in subparagraph (A)(i) shall be the

6 same as the farm poundage quota for the farm

7 for the immediately preceding marketing year,

8 as adjusted under paragraph (2), but not in9 cluding any increases resulting from the alloca10 tion of quotas voluntarily released for one year

11 under paragraph (7). The farm poundage

12 quota, if any, for each marketing year for each

13 farm described in subparagraph (A)(ii) shall be

14 equal to the quantity of peanuts allocated to the

15 farm for the year under paragraph (2).

16 ‘‘(C) TRANSFERS.—For purposes of this

17 subsection, if the farm poundage quota, or any

18 part thereof, is permanently transferred in ac19 cordance with section 358a or 358b, the receiv20 ing farm shall be considered as possessing the

21 farm poundage quota (or portion thereof) of the

22 transferring farm for all subsequent marketing

23 years.

24 ‘‘(2) ADJUSTMENTS.—
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•HR 2330 IH

1 ‘‘(A) ALLOCATION OF INCREASED QUOTA

2 GENERALLY.—Except as provided in subpara3 graph (C), if the poundage quota apportioned

4 to a State under subsection (a)(3) of any mar5 keting year is increased over the poundage

6 quota apportioned to farms in the State for the

7 immediately preceding marketing year, the in8 crease shall be allocated proportionately, based

9 on farm production history for peanuts for the

10 3 immediately preceding years, among—

11 ‘‘(i) all farms in the State for each of

12 which a farm poundage quota was estab13 lished for the marketing year immediately

14 preceding the marketing year for which the

15 allocation is being made; and

16 ‘‘(ii) all other farms in the State on

17 each of which peanuts were produced in at

18 least 2 of the 3 immediately preceding crop

19 years, as determined by the Secretary.

20 ‘‘(B) DECREASE.—If the poundage quota

21 apportioned to a State under subsection (a)(3)

22 for any marketing year is decreased from the

23 poundage quota apportioned to farms in the

24 State under subsection (a)(3) for the imme25 diately preceding marketing year, the decrease
25

•HR 2330 IH

1 shall be allocated among all the farms in the

2 State for each of which a farm poundage quota

3 was established for the marketing year imme4 diately preceding the marketing year for which

5 the allocation is being made.

6 ‘‘(C) SPECIAL RULE ON TENANT’S SHARE

7 OF INCREASED QUOTA.—Subject to terms and

8 conditions prescribed by the Secretary, on

9 farms that were leased to a tenant for peanut

10 production, the tenant shall share equally with

11 the owner of the farm in that percentage of the

12 quota referred to in subparagraph (A) and oth13 erwise allocated to the farm as the result of the

14 tenant’s production on the farm of additional

15 peanuts. Not later than April 1 of each year or

16 as soon as practicable, the tenant’s share of any

17 such quota shall be allocated to a farm within

18 the county owned by the tenant or sold by the

19 tenant to the owner of any farm within the

20 county and permanently transferred to that

21 farm. Any quota not so disposed of as provided

22 in this subparagraph shall be allocated to other

23 quota farms in the State under paragraph (6)

24 as part of the quota reduced from farms in the

25 State due to the failure to produce the quota.
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•HR 2330 IH

1 ‘‘(3) QUOTA NOT PRODUCED.—

2 ‘‘(A) IN GENERAL.—Insofar as practicable

3 and on such fair and equitable basis as the Sec4 retary may by regulation prescribe, the farm

5 poundage quota established for a farm for any

6 marketing year shall be reduced to the extent

7 that the Secretary determines that the farm

8 poundage quota established for the farm for

9 any 2 of the 3 marketing years preceding the

10 marketing year for which the determination is

11 being made was not produced, or considered

12 produced, on the farm.

13 ‘‘(B) EXCLUSIONS.—For purposes of this

14 paragraph, the farm poundage quota for any

15 such preceding marketing year shall not include

16 any increase resulting from the allocation of

17 quotas voluntarily released for 1 year under

18 paragraph (7).

19 ‘‘(4) QUOTA CONSIDERED PRODUCED.—For

20 purposes of this subsection, the farm poundage

21 quota shall be considered produced on a farm if—

22 ‘‘(A) the farm poundage quota was not

23 produced on the farm because of drought, flood,

24 or any other natural disaster, or any other con-
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•HR 2330 IH

1 dition beyond the control of the producer, as

2 determined by the Secretary; or

3 ‘‘(B) the farm poundage quota for the

4 farm was either leased to another owner or op5 erator of a farm within the same county for

6 transfer to such farm for only 1 of the 3 mar7 keting years immediately preceding the market8 ing year for which the determination is being

9 made or the farm poundage quota was released

10 voluntarily under paragraph (7) for only 1 of

11 the 3 marketing years immediately preceding

12 the marketing year for which the determination

13 is being made. The farm poundage quota shall

14 not be considered produced for more than one

15 marketing year out of the three immediately

16 preceding marketing years under this subpara17 graph.

18 ‘‘(5) QUOTA PERMANENTLY RELEASED.—Not19 withstanding any other provision of law—

20 ‘‘(A) the farm poundage quota established

21 for a farm under this subsection, or any part of

22 the quota, may be permanently released by the

23 owner of the farm, or the operator with the per24 mission of the owner; and
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•HR 2330 IH

1 ‘‘(B) the poundage quota for the farm for

2 which the quota is released shall be adjusted

3 downward to reflect the quota that is so re4 leased.

5 ‘‘(6) ALLOCATION OF QUOTAS REDUCED OR RE6 LEASED.—

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

8 subparagraph (B), the total quantity of the

9 farm poundage quotas reduced or voluntarily

10 released from farms in a State for any market11 ing year under paragraphs (3) and (5) shall be

12 allocated, as the Secretary may by regulation

13 prescribe, to other farms in the State as pro14 vided in subparagraph (B) on which peanuts

15 were produced in at least 2 of the 3 crop years

16 immediately preceding the year for which the

17 allocation is being made.

18 ‘‘(B) SET-ASIDE FOR FARMS WITH NO

19 QUOTA.—The total amount of farm poundage

20 quota to be allocated in the State under sub21 paragraph (A) shall be allocated to farms in the

22 State for which no farm poundage quota was

23 established for the immediately preceding year’s

24 crop. The allocation to any such farm shall not

25 exceed the average farm production of peanuts
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•HR 2330 IH

1 for the 3 immediately preceding years during

2 which peanuts were produced on the farm. Any

3 farm quota pounds remaining after allocation to

4 farms under this subparagraph shall be allo5 cated to farms in the State on which poundage

6 quotas were established for the immediately

7 preceding year’s crop.

8 ‘‘(7) QUOTA TEMPORARILY RELEASED.—

9 ‘‘(A) IN GENERAL.—The farm poundage

10 quota, or any portion thereof, established for a

11 farm for a marketing year may be voluntarily

12 released to the Secretary to the extent that the

13 quota, or any part thereof, will not be produced

14 on the farm for the marketing year. Any farm

15 poundage quota so released in a State shall be

16 allocated to other farms in the State on such

17 basis as the Secretary may by regulation pre18 scribe.

19 ‘‘(B) EFFECTIVE PERIOD.—Except as oth20 erwise provided in this section, any adjustment

21 in the farm poundage quota for a farm under

22 subparagraph (A) shall be effective only for the

23 marketing year for which it is made and shall

24 not be taken into consideration in establishing

25 a farm poundage quota for the farm from which
30

•HR 2330 IH

1 the quota was released for any subsequent mar2 keting year.

3 ‘‘(8) TRANSFER OF ADDITIONAL PEANUTS.—

4 Additional peanuts on a farm from which the quota

5 poundage was not harvested and marketed may be

6 transferred to the quota loan pool for pricing pur7 poses on such basis as the Secretary shall by regula8 tion provide, except that the poundage of such pea9 nuts so transferred shall not exceed the difference in

10 the total peanuts meeting quality requirements for

11 domestic edible use as determined by the Secretary

12 marketed from the farm and the total farm pound13 age quota, excluding quota pounds transferred to the

14 farm in the fall. Peanuts transferred under provi15 sions of this paragraph shall be supported at a total

16 of not less than 70 percent of the quota support rate

17 for the marketing years in which such transfers

18 occur and such transfers for a farm shall not exceed

19 25 percent of the total farm quota pounds, excluding

20 pounds transferred in the fall.

21 ‘‘(9) TEMPORARY QUOTA ALLOCATION.—

22 ‘‘(A) Temporary allocation of quota pounds

23 for the marketing year only in which the crop

24 is planted shall be made to producers as pro25 vided in this subsection. The temporary quota
31

•HR 2330 IH

1 allocation shall be equal to the pounds of seed

2 peanuts planted on the farm as may be ad3 justed under regulations that shall be pre4 scribed by the Secretary. The temporary alloca5 tion of quota pounds under this paragraph shall

6 be in addition to the farm quota pounds estab7 lished under paragraph (1).

8 ‘‘(B) The allocation of quota pounds to

9 producers under the provisions of this sub10 section shall be performed in such a manner as

11 will not result in a net decrease in quota

12 pounds on a farm in excess of 3 percent, after

13 temporary seed quota is added, from the basic

14 farm quota in 1996 and such decrease shall

15 occur one time only and shall be applicable to

16 the 1996 marketing year only.

17 ‘‘(C) Implementation of provisions in this

18 subsection may continue so long as doing so

19 does not result in increased cost to the Com20 modity Credit Corporation by displacement of

21 quota peanuts by additional peanuts in the do22 mestic market, increased losses in the Associa23 tion loan pools or other such increases in cost.
32

•HR 2330 IH

1 ‘‘(D) Nothing in this paragraph shall alter

2 or change in any way the requirements of sec3 tion 358e(b).

4 ‘‘(c) FARM YIELDS.—

5 ‘‘(1) IN GENERAL.—For each farm for which a

6 farm poundage quota is established under subsection

7 (b), and when necessary for purposes of this Act, a

8 farm yield of peanuts shall be determined for each

9 such farm.

10 ‘‘(2) QUANTITY.—The yield shall be equal to

11 the average of the actual yield per acre on the farm

12 for each of the 3 crop years in which yields were

13 highest on the farm out of the 5 crop years 1973

14 through 1977.

15 ‘‘(3) APPRAISED YIELDS.—If peanuts were not

16 produced on the farm in at least 3 years during the

17 5-year period or there was a substantial change in

18 the operation of the farm during the period (includ19 ing a change in operator, lessee who is an operator,

20 or irrigation practices), the Secretary shall have a

21 yield appraised for the farm. The appraised yield

22 shall be that quantity determined to be fair and rea23 sonable on the basis of yields established for similar

24 farms that are located in the area of the farm and

25 on which peanuts were produced, taking into consid-
33

•HR 2330 IH

1 eration land, labor, and equipment available for the

2 production of peanuts, crop rotation practices, soil

3 and water, and other relevant factors.

4 ‘‘(d) REFERENDUM RESPECTING POUNDAGE

5 QUOTAS.—

6 ‘‘(1) IN GENERAL.—Not later than December

7 15 of each calendar year, the Secretary shall con8 duct a referendum of producers engaged in the pro9 duction of quota peanuts in the calendar year in

10 which the referendum is held to determine whether

11 the producers are in favor of or opposed to poundage

12 quotas with respect to the crops of peanuts produced

13 in the 5 calendar years immediately following the

14 year in which the referendum is held, except that, if

15 as many as two-thirds of the producers voting in any

16 referendum vote in favor of poundage quotas, no ref17 erendum shall be held with respect to quotas for the

18 second, third, fourth, and fifth years of the period.

19 ‘‘(2) PROCLAMATION.—The Secretary shall pro20 claim the result of the referendum within 30 days

21 after the date on which it is held.

22 ‘‘(3) VOTE AGAINST QUOTAS.—If more than

23 one-third of the producers voting in the referendum

24 vote against quotas, the Secretary also shall pro25 claim that poundage quotas will not be in effect with
34

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1 respect to the crop of peanuts produced in the cal2 endar year immediately following the calendar year

3 in which the referendum is held.

4 ‘‘(e) DEFINITIONS.—For the purposes of this part

5 and title I of the Agricultural Act of 1949 (7 U.S.C. 1441

6 et seq.):

7 ‘‘(1) ADDITIONAL PEANUTS.—The term ‘addi8 tional peanuts’ means, for any marketing year—

9 ‘‘(A) any peanuts that are marketed from

10 a farm for which a farm poundage quota has

11 been established and that are in excess of the

12 marketings of quota peanuts from the farm for

13 the year; and

14 ‘‘(B) all peanuts marketed from a farm for

15 which no farm poundage quota has been estab16 lished in accordance with subsection (b).

17 ‘‘(2) CRUSHING.—The term ‘crushing’ means

18 the processing of peanuts to extract oil for food uses

19 and meal for feed uses, or the processing of peanuts

20 by crushing or otherwise when authorized by the

21 Secretary.

22 ‘‘(3) DOMESTIC EDIBLE USE.—The term ‘do23 mestic edible use’ means use for milling to produce

24 domestic food peanuts (other than those described in

25 paragraph (2)) and use on a farm, except that the
35

•HR 2330 IH

1 Secretary may exempt from this definition seeds of

2 peanuts that are used to produce peanuts excluded

3 under section 358d(c), are unique strains, and are

4 not commercially available.

5 ‘‘(4) QUOTA PEANUTS.—The term ‘quota pea6 nuts’ means, for any marketing year, any peanuts

7 produced on a farm having a farm poundage quota,

8 as determined in subsection (b), that—

9 ‘‘(A) are eligible for domestic edible use as

10 determined by the Secretary;

11 ‘‘(B) are marketed or considered marketed

12 from a farm; and

13 ‘‘(C) do not exceed the farm poundage

14 quota of the farm for the year.

15 ‘‘(f) CROPS.—Notwithstanding any other provision of

16 law, this section shall be effective only for the 1996

17 through 2002 crops of peanuts.’’.

18 (b) SALE, LEASE, OR TRANSFER OF FARM POUND19 AGE QUOTA.—Section 358b of the Agricultural Adjust20 ment Act of 1938 (7 U.S.C. 1358b) is amended to read

21 as follows:

22 ‘‘SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUND23 AGE QUOTA FOR PEANUTS.

24 ‘‘(a) IN GENERAL.—
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•HR 2330 IH

1 ‘‘(1) AUTHORITY.—Subject to such terms, con2 ditions, or limitations as the Secretary may pre3 scribe, the owner, or operator with the permission of

4 the owner, of any farm for which a farm poundage

5 quota has been established under this Act may sell

6 or lease all or any part of the poundage quota to any

7 other owner or operator of a farm within the same

8 State if not less than 90 percent of the basic quota

9 (the farm quota exclusive of temporary quota trans10 fers), plus any poundage quota transferred to the

11 farm under this subsection, has been planted or con12 sidered planted on the farm from which the quota is

13 to be transfered. The transfer shall be under such

14 terms and conditions as the Secretary may by regu15 lation prescribe. In the case of a fall transfer or a

16 transfer after the normal planting season by a cash

17 lessee, the landowner shall not be required to sign

18 the transfer authorization. A fall transfer or a trans19 fer after the normal planting season may be made

20 not later than 72 hours after the peanuts that are

21 the subject of the transfer are inspected and graded.

22 Fall transfers of quota pounds shall not affect the

23 farm quota history for the transferring or receiving

24 farm and shall not result in reducing the farm

25 poundage quota on the transferring farm.
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1 ‘‘(2) TRANSFERS IN STATES WITH SMALL

2 QUOTAS.—Notwithstanding paragraph (1) and (2),

3 in the case of any State for which the poundage

4 quota allocated to the State was less than 10,000

5 tons for the preceding year’s crop, all or any part of

6 a farm poundage quota may be transferred by sale

7 or lease or otherwise from a farm to another farm

8 in any State.

9 ‘‘(b) CONDITIONS.—Transfers (including transfer by

10 sale or lease) of farm poundage quotas under this section

11 shall be subject to all of the following conditions:

12 ‘‘(1) LIENHOLDERS.—No transfer of the farm

13 poundage quota from a farm subject to a mortgage

14 or other lien shall be permitted unless the transfer

15 is agreed to by the lienholders, except that no such

16 agreement shall be necessary in the event of all

17 lease, if the operator had the lienholder’s agreement

18 for a previous spring cash lease.

19 ‘‘(2) TILLABLE CROPLAND.—No transfer of the

20 farm poundage quota shall be permitted if the coun21 ty committee established under section 8(b) of the

22 Soil Conservation and Domestic Allotment Act (16

23 U.S.C. 590h(b)) determines that the receiving farm

24 does not have adequate tillable cropland to produce

25 the farm poundage quota.
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•HR 2330 IH

1 ‘‘(3) RECORD.—No transfer of the farm pound2 age quota shall be effective until a record thereof is

3 filed with the county committees of the counties

4 from which transferred and to which transferred and

5 the committees determined that the transfer com6 plies with this section.

7 ‘‘(4) OTHER TERMS.—Such other terms and

8 conditions that the Secretary may by regulation pre9 scribe.

10 ‘‘(c) CROPS.—Notwithstanding any other provision of

11 law, this section shall be effective only for the 1996

12 through 2002 crops of peanuts.’’.

13 (c) MARKETING PENALTIES; DISPOSITION OF ADDI14 TIONAL PEANUTS.—Section 358e of the Agricultural Ad15 justment Act of 1938 (7 U.S.C. 1359a) is amended to

16 read as follows:

17 ‘‘SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF

18 ADDITIONAL PEANUTS.

19 ‘‘(a) MARKETING PENALTIES.—

20 ‘‘(1) IN GENERAL.—

21 ‘‘(A) MARKETING PEANUTS IN EXCESS OF

22 QUOTA.—The marketing of any peanuts for do23 mestic edible use in excess of the farm pound24 age quota for the farm on which the peanuts

25 are produced shall be subject to penalty at a
39

•HR 2330 IH

1 rate equal to 140 percent of the support price

2 for quota peanuts for the marketing year in

3 which the marketing occurs. The penalty shall

4 not apply to the marketing of breeder or Foun5 dation seed peanuts grown and marketed by a

6 publicly owned agricultural experiment station

7 (including a State operated seed organization)

8 under such regulations as the Secretary may

9 prescribe.

10 ‘‘(B) MARKETING YEAR.—For purposes of

11 this section, the marketing year for peanuts

12 shall be the 12-month period beginning August

13 1 and ending July 31.

14 ‘‘(C) MARKETING ADDITIONAL PEA15 NUTS.—The marketing of any additional pea16 nuts from a farm shall be subject to the same

17 penalty unless the peanuts, in accordance with

18 regulations established by the Secretary, are—

19 ‘‘(i) placed under loan at the addi20 tional loan rate in effect for the peanuts

21 under section 108B of the Agricultural Act

22 of 1949 and not redeemed by the produc23 ers;

24 ‘‘(ii) marketed through an area mar25 keting association designated pursuant to
40

•HR 2330 IH

1 section 108B(c)(1) of the Agricultural Act

2 of 1949; or

3 ‘‘(iii) marketed under contracts be4 tween handlers and producers pursuant to

5 subsection (f).

6 ‘‘(2) PAYER.—The penalty shall be paid by the

7 person who buys or otherwise acquires the peanuts

8 from the producer or, if the peanuts are marketed

9 by the producer through an agent, the penalty shall

10 be paid by the agent. The person or agent may de11 duct an amount equivalent to the penalty from the

12 price paid to the producer.

13 ‘‘(3) FAILURE TO COLLECT.—If the person re14 quired to collect the penalty fails to collect the pen15 alty, the person and all persons entitled to share in

16 the peanuts marketed from the farm or the proceeds

17 thereof shall be jointly and severally liable with such

18 persons who failed to collect the penalty for the

19 amount of the penalty.

20 ‘‘(4) APPLICATION OF QUOTA.—Peanuts pro21 duced in a calendar year in which farm poundage

22 quotas are in effect for the marketing year begin23 ning therein shall be subject to the quotas even

24 though the peanuts are marketed prior to the date

25 on which the marketing year begins.
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•HR 2330 IH

1 ‘‘(5) FALSE INFORMATION.—If any producer

2 falsely identifies, fails to accurately certify planted

3 acres, or fails to account for the disposition of any

4 peanuts produced on the planted acres, a quantity of

5 peanuts equal to the greater of the farm’s average

6 or actual yield, as determined by the Secretary,

7 times the planted acres, shall be deemed to have

8 been marketed in violation of permissible uses of

9 quota and additional peanuts. Any penalty payable

10 under this paragraph shall be paid and remitted by

11 the producer.

12 ‘‘(6) UNINTENTIONAL VIOLATIONS.—The Sec13 retary shall authorize, under such regulations as the

14 Secretary shall issue, the county committees estab15 lished under section 8(b) of the Soil Conservation

16 and Domestic Allotment Act (16 U.S.C. 590h(b)) to

17 waive or reduce marketing penalties provided for

18 under this subsection in cases which the committees

19 determine that the violations that were the basis of

20 the penalties were unintentional or without knowl21 edge on the part of the parties concerned.

22 ‘‘(7) DE MINIMIS VIOLATIONS.—Errors in

23 weight that do not exceed one-tenth of 1 percent in

24 the case of any one marketing document shall not be
42

•HR 2330 IH

1 considered to be marketing violations except in cases

2 of fraud or conspiracy.

3 ‘‘(b) USE OF QUOTA AND ADDITIONAL PEANUTS.—

4 ‘‘(1) QUOTA PEANUTS.—Only quota peanuts

5 may be retained for use as seed or for other uses on

6 a farm. When peanuts are so retained, such reten7 tion shall be considered as marketings of quota pea8 nuts, except that the Secretary may exempt from

9 consideration as marketings of quota peanuts seeds

10 of peanuts for the quantity involved that are used to

11 produce peanuts excluded under section 358d(c), are

12 unique strains, and are not commercially available.

13 ‘‘(2) ADDITIONAL PEANUTS.—Additional pea14 nuts shall not be retained for use on a farm and

15 shall not be marketed for domestic edible use, except

16 as provided in subsection (g).

17 ‘‘(3) SEED.—Except as provided in paragraph

18 (1), seed for planting of any peanut acreage in the

19 United States shall be obtained solely from quota

20 peanuts marketed or considered marketed for do21 mestic edible use.

22 ‘‘(c) MARKETING PEANUTS WITH EXCESS QUAN23 TITY, GRADE, OR QUALITY.—On a finding by the Sec24 retary that the peanuts marketed from any crop for do25 mestic edible use by a handler are larger in quantity or
43

•HR 2330 IH

1 higher in grade or quality than the peanuts that could rea2 sonably be produced from the quantity of peanuts having

3 the grade, kernel content, the quality of the quota peanuts

4 acquired by the handler from the crop for the marketing

5 year, the handler shall be subject to a penalty equal to

6 140 percent of the loan level for quota peanuts on the

7 quantity of peanuts that the Secretary determines are in

8 excess of the quantity, grade, or quality of the peanuts

9 that could reasonably have been produced from the pea10 nuts so acquired.

11 ‘‘(d) SUPERVISION OF HANDLERS OF ADDITIONAL

12 PEANUTS.—

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (2), the Secretary shall require that the han15 dling and disposal of additional peanuts be super16 vised by agents of the Secretary or by area market17 ing associations designated pursuant to section

18 108B(c)(1) of the Agricultural Act of 1949.

19 ‘‘(2) SUPERVISION BY NONHANDLERS.—

20 ‘‘(A) IN GENERAL.—Supervision of the

21 handling and disposal of additional peanuts by

22 a handler shall not be required under para23 graph (1) if the handler agrees in writing, prior

24 to any handling or disposal of the peanuts, to
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•HR 2330 IH

1 comply with regulations that the Secretary shall

2 issue.

3 ‘‘(B) REGULATIONS.—The regulations is4 sued by the Secretary under subparagraph (A)

5 shall include the following provisions:

6 ‘‘(i) TYPES OF EXPORTED OR

7 CRUSHED PEANUTS.—Handlers of shelled

8 or milled peanuts may export or crush pea9 nuts classified by type in all of the follow10 ing quantities:

11 ‘‘(I) SOUND SPLIT KERNEL PEA12 NUTS.—Sound split kernel peanuts

13 purchased by the handler as addi14 tional peanuts to which, under price

15 support loan schedules, a mandated

16 deduction with respect to the price

17 paid to the producer of the peanuts

18 would be applied due to the percent19 age of the sound splits.

20 ‘‘(II) SOUND MATURE KERNEL

21 PEANUTS.—Sound mature kernel pea22 nuts (which term includes sound split

23 kernel peanuts and sound whole ker24 nel peanuts) in an amount equal to

25 the poundage of the peanuts pur-
45

•HR 2330 IH

1 chased by the handler as additional

2 peanuts, less the total poundage of

3 sound split kernel peanuts described

4 in subclause (I).

5 ‘‘(III) REMAINDER.—The re6 maining quantity of total kernel con7 tent of peanuts purchased by the han8 dler as additional peanuts.

9 ‘‘(ii) DOCUMENTATION.—Handlers

10 shall ensure that any additional peanuts

11 exported or crushed are evidenced by on12 board bills of lading or other appropriate

13 documentation as may be required by the

14 Secretary, or both.

15 ‘‘(iii) LOSS OF PEANUTS.—If a han16 dler suffers a loss of peanuts as a result of

17 fire, flood, or any other condition beyond

18 the control of the handler, the portion of

19 the loss allocated to contracted additional

20 peanuts shall not be greater than the por21 tion of the handler’s total peanut pur22 chases for the year attributable to con23 tracted additional peanuts purchased for

24 export or crushing by the handler during

25 the year.
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•HR 2330 IH

1 ‘‘(iv) SHRINKAGE ALLOWANCE.—

2 ‘‘(I) IN GENERAL.—The obliga3 tion of a handler to export or crush

4 peanuts in quantities described in this

5 subparagraph shall be reduced by a

6 shrinkage allowance, to be determined

7 by the Secretary, to reflect actual dol8 lar value shrinkage experienced by

9 handlers in commercial operations, ex10 cept that the allowance shall not be

11 less than 4 percent, except as pro12 vided in subclause (II).

13 ‘‘(II) COMMON INDUSTRY PRAC14 TICES.—The Secretary may provide a

15 lower shrinkage allowance for a han16 dler who fails to comply with the re17 strictions on the use of peanuts, as

18 may be specified by the Commodity

19 Credit Corporation, to take into ac20 count common industry practices.

21 ‘‘(3) ADEQUATE FINANCES AND FACILITIES.—A

22 handler shall submit to the Secretary adequate fi23 nancial guarantees, as well as evidence of adequate

24 facilities and assets, with the facilities under the

25 control and operation of the handler, to ensure the
47

•HR 2330 IH

1 handler’s compliance with the obligation to export

2 peanuts.

3 ‘‘(4) COMMINGLING OF LIKE PEANUTS.—Quota

4 and additional peanuts of like type and segregation

5 or quality may, under regulations issued by the Sec6 retary, be commingled and exchanged on a dollar

7 value basis to facilitate warehousing, handling, and

8 marketing.

9 ‘‘(5) PENALTY.—

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

11 subparagraph (B), the failure by a handler to

12 comply with regulations issued by the Secretary

13 governing the disposition and handling of addi14 tional peanuts shall subject the handler to a

15 penalty at a rate equal to 140 percent of the

16 loan level for quota peanuts on the quantity of

17 peanuts involved in the violation.

18 ‘‘(B) NONDELIVERY.—A handler shall not

19 be subject to a penalty for failure to export ad20 ditional peanuts if the peanuts were not deliv21 ered to the handler.

22 ‘‘(6) REENTRY OF EXPORTED PEANUTS.—

23 ‘‘(A) PENALTIES.—If any additional pea24 nuts or peanut products manufactured from ad25 ditional peanuts exported by a handler are reen-
48

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1 tered into the United States in commercial

2 quantities as determined by the Secretary, the

3 importer thereof shall be subject to a penalty at

4 a rate equal to 140 percent of the loan level for

5 quota peanuts on the quantity of peanuts reen6 tered.

7 ‘‘(B) RECORDS.—Each person, firm, or

8 handler who imports peanuts into the United

9 States shall maintain such records and docu10 ments as are required by the Secretary to en11 sure compliance with this subsection.

12 ‘‘(e) SPECIAL EXPORT CREDITS.—

13 ‘‘(1) IN GENERAL.—The Secretary shall, with

14 due regard for the integrity of the peanut program,

15 promulgate regulations that will permit any handler

16 of peanuts who manufactures peanut products from

17 domestic edible peanuts to export the products and

18 receive credit for the fulfillment of export obligations

19 for the peanut content of the products against which

20 the export credits the handler may thereafter apply,

21 up to the amount thereof, equivalent quantities of

22 additional peanuts of the same type acquired by the

23 handler and used in the domestic edible market. The

24 peanuts so acquired for the domestic edible market

25 as provided in this subsection shall be of the same
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1 crop year as the peanuts used in the manufacture of

2 the products so exported.

3 ‘‘(2) CERTIFICATION.—Under such regulations,

4 the Secretary shall require all handlers who are pea5 nut product manufacturers to submit annual certifi6 cations of peanut product content on a product-by7 product basis. Any changes in peanut product for8 mulas as affecting peanut content shall be recorded

9 within 90 days of the changes. The Secretary shall

10 conduct an annual review of the certifications. The

11 Secretary shall pursue all available remedies with re12 spect to persons who fail to comply with this para13 graph.

14 ‘‘(3) RECORDS.—The Secretary shall require

15 handlers who are peanut product manufacturers to

16 maintain and provide such documents as are nec17 essary to ensure compliance with this subsection and

18 to maintain the integrity of the peanut program.

19 ‘‘(f) CONTRACTS FOR PURCHASE OF ADDITIONAL

20 PEANUTS.—

21 ‘‘(1) IN GENERAL.—Handlers may, under such

22 regulations as the Secretary may issue, contract with

23 producers for the purchase of additional peanuts for

24 crushing or export, or both.

25 ‘‘(2) SUBMISSION TO SECRETARY.—
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1 ‘‘(A) CONTRACT DEADLINE.—Any such

2 contract shall be completed and submitted to

3 the Secretary (or if designated by the Sec4 retary, the area marketing association) for ap5 proval not later than September 15 of the year

6 in which the crop is produced.

7 ‘‘(B) EXTENSION OF DEADLINE.—The

8 Secretary may extend the deadline under sub9 paragraph (A) by up to 15 days in response to

10 damaging weather or related condition (as de11 fined in section 112 of the Disaster Assistance

12 Act of 1989 (7 U.S.C. 1421 et seq.)). The Sec13 retary shall announce the extension no later

14 than September 5 of the year in which the crop

15 is produced.

16 ‘‘(3) FORM.—The contract shall be executed on

17 a form prescribed by the Secretary. The form shall

18 require such information as the Secretary deter19 mines appropriate to ensure the proper handling of

20 the additional peanuts, including the identity of the

21 contracting parties, the poundage, and category of

22 the peanuts, the disclosure of any liens, and the in23 tended disposition of the peanuts.

24 ‘‘(4) INFORMATION FOR HANDLING AND PROC25 ESSING ADDITIONAL PEANUTS.—Notwithstanding
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1 any other provision of this section, any person wish2 ing to handle and process additional peanuts as a

3 handler shall submit to the Secretary (or if des4 ignated by the Secretary, the area marketing asso5 ciation), such information as may be required under

6 subsection (d) by such date as prescribed by the Sec7 retary so as to permit final action to be taken on the

8 application by July 1 of each marketing year.

9 ‘‘(5) TERMS.—Each such contract shall contain

10 the final price to be paid by the handler for the pea11 nuts involved and a specific prohibition against the

12 disposition of the peanuts for domestic edible or seed

13 use.

14 ‘‘(6) SUSPENSION OF RESTRICTIONS ON IM15 PORTED PEANUTS.—Notwithstanding any other pro16 vision of this Act, if the President issues a proclama17 tion under section 404(b) of the Uruguay Round

18 Agreements Act expanding the quantity of peanuts

19 subject to the in-quota rate of duty under a tariff20 rate quota, or under section 22 of the Agricultural

21 Adjustment Act (7 U.S.C. 624), reenacted with

22 amendments by the Agricultural Marketing Agree23 ment Act of 1937, temporarily suspending restric24 tions on the importation of peanuts, the Secretary

25 shall, subject to such terms and conditions as the
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1 Secretary may prescribe, permit a handler, with the

2 written consent of the producer, to purchase addi3 tional peanuts from any producer who contracted

4 with the handler and to offer the peanuts for sale

5 for domestic edible use.

6 ‘‘(g) MARKETING OF PEANUTS OWNED OR CON7 TROLLED BY THE COMMODITY CREDIT CORPORATION.—

8 ‘‘(1) IN GENERAL.—Subject to section 407 of

9 the Agricultural Act of 1949 (7 U.S.C. 1427), any

10 peanuts owned or controlled by the Commodity

11 Credit Corporation may be made available for do12 mestic edible use, in accordance with regulations is13 sued by the Secretary, so long as doing so does not

14 result in substantially increased cost to the Com15 modity Credit Corporation. Additional peanuts re16 ceived under loan shall be offered for sale for domes17 tic edible use at prices not less than those required

18 to cover all costs incurred with respect to the pea19 nuts for such items as inspection, warehousing,

20 shrinkage, and other expenses, plus—

21 ‘‘(A) not less than 100 percent of the loan

22 value of quota peanuts if the additional peanuts

23 are sold and paid for during the harvest season

24 on delivery by and with the written consent of

25 the producer;
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1 ‘‘(B) not less than 105 percent of the loan

2 value of quota peanuts if the additional peanuts

3 are sold after delivery by the producer but not

4 later than December 31 of the marketing year;

5 or

6 ‘‘(C) not less than 107 percent of the loan

7 value of quota peanuts if the additional peanuts

8 are sold later than December 31 of the market9 ing year.

10 ‘‘(2) ACCEPTANCE OF BIDS BY AREA MARKET11 ING ASSOCIATIONS.—

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

13 subparagraph (B), for the period from the date

14 additional peanuts are delivered for loan to

15 March 1 of the calendar year following the year

16 in which the additional peanuts were harvested,

17 the area marketing association designated pur18 suant to section 108B(c)(1) of the Agricultural

19 Act of 1949 shall have sole authority to accept

20 or reject lot list bids when the sales price, as

21 determined under this subsection, equals or ex22 ceeds the minimum price at which the Commu23 nity Credit Corporation may sell its stocks of

24 additional peanuts.
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1 ‘‘(B) MODIFICATION.—The area marketing

2 association and the Community Credit Corpora3 tion may agree to modify the authority granted

4 by subparagraph (A) to facilitate the orderly

5 marketing of additional peanuts.

6 ‘‘(3) PRODUCER MARKETING AND EXPENSES.—

7 Notwithstanding any other provision of this Act, the

8 Secretary shall, in any determination required under

9 subsections (a)(2) and (b)(1) of section 108B of the

10 Agricultural Act of 1949, include any additional

11 marketing expenses required by law, excluding the

12 amount of any assessment required under the Omni13 bus Budget Reconciliation Act of 1990.

14 ‘‘(h) ADMINISTRATION.—

15 ‘‘(1) INTEREST.—The person liable for payment

16 or collection of any penalty provided for in this sec17 tion shall be liable also for interest thereon at a rate

18 per annum equal to the rate per annum of interest

19 that was charged the Commodity Credit Corporation

20 by the Treasury of the United States on the date the

21 penalty became due.

22 ‘‘(2) DE MINIMIS QUANTITY.—This section shall

23 not apply to peanuts produced on any farm on which

24 the acreage harvested for nuts is one acre or less if

25 the producers who share in the peanuts produced on
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1 the farm do not share in the peanuts produced on

2 any other farm.

3 ‘‘(3) LIENS.—Until the amount of the penalty

4 provided by this section is paid, a lien on the crop

5 of peanuts with respect to which the penalty is in6 curred, and on any subsequent crop of peanuts sub7 ject to farm poundage quotas in which the person

8 liable for payment of the penalty has an interest,

9 shall be in effect in favor of the United States.

10 ‘‘(4) PENALTIES.—

11 ‘‘(A) PROCEDURES.—Notwithstanding any

12 other provision of law, the liability for and the

13 amount of any penalty assessed under this sec14 tion shall be determined in accordance with

15 such procedures as the Secretary by regulation

16 may prescribe. The facts constituting the basis

17 for determining the liability for or amount of

18 any penalty assessed under this section, when

19 officially determined in conformity with the ap20 plicable regulations prescribed by the Secretary,

21 shall be final and conclusive and shall not be

22 reviewable by any other officer or agency of the

23 Government.

24 ‘‘(B) JUDICIAL REVIEW.—Nothing in this

25 section shall be construed as prohibiting any
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1 court of competent jurisdiction from reviewing

2 any determination made by the Secretary with

3 respect to whether the determination was made

4 in conformity with the applicable law and regu5 lations.

6 ‘‘(C) CIVIL PENALTIES.—All penalties im7 posed under this section shall for all purposes

8 be considered civil penalties.

9 ‘‘(5) REDUCTION OF PENALTIES.—

10 ‘‘(A) IN GENERAL.—Notwithstanding any

11 other provision of law and except as provided in

12 subparagraph (B), the Secretary may reduce

13 the amount of any penalty assessed against

14 handlers under this section by any appropriate

15 amount, including, in an appropriate case,

16 eliminating the penalty entirely, if the Secretary

17 finds that the violation on which the penalty is

18 based was minor or inadvertent, and that the

19 reduction of the penalty will not impair the op20 eration of the peanut program.

21 ‘‘(B) FAILURE TO EXPORT CONTRACTED

22 ADDITIONAL PEANUTS.—The amount of any

23 penalty imposed on a handler under this section

24 that resulted from the failure to export or crush
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1 contracted additional peanuts shall not be re2 duced by the Secretary.

3 ‘‘(i) CROPS.—Notwithstanding any other provision of

4 law, this section shall be effective only for the 1996

5 through 2002 crops of peanuts.’’.

6 (d) EXTENSION OF EXPERIMENTAL AND RESEARCH

7 PROGRAMS FOR PEANUTS.—Subsection 358c(d) of the

8 Agricultural Adjustment Act of 1938 (7 U.S.C. 1358c(d))

9 is amended by striking ‘‘1991 through 1995’’ and insert10 ing ‘‘1996 through 2002’’.

11 (e) PRICE SUPPORT PROGRAM.—Section 108B of the

12 Agricultural Act of 1949 (7 U.S.C. 1445c–3) is amended

13 to read as follows:

14 ‘‘SEC. 108B. PRICE SUPPORT PROGRAM FOR PEANUTS.

15 ‘‘(a) QUOTA PEANUTS.—

16 ‘‘(1) IN GENERAL.—The Secretary shall make

17 price support available to producers through loans,

18 purchases, and other operations on quota peanuts

19 for each crop.

20 ‘‘(2) SUPPORT RATES.—The national average

21 quota support rate for each crop of quota peanuts

22 shall be the national average quota support rate for

23 the immediately preceding crop adjusted to reflect

24 any increase or decrease during the calendar year

25 immediately preceding the marketing year for the
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1 crop for which a level of support is being deter2 mined, in the national average cost of peanut pro3 duction, excluding any change in the cost of land,

4 and the cost of any assessments required under sub5 section (g), except that in no event shall the national

6 average quota support rate be increased by more

7 than 5 percent of the national average quota support

8 rate for the preceding crop, nor be decreased by

9 more than 5 percent of the national average quota

10 support rate for the preceding crop.

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

12 The levels of support so announced shall not be re13 duced by any deductions for inspection, handling, or

14 storage.

15 ‘‘(4) LOCATION AND OTHER FACTORS.—The

16 Secretary may make adjustments for location of pea17 nuts and such other factors as are authorized by

18 section 403.

19 ‘‘(5) ANNOUNCEMENT.—The Secretary shall

20 announce the level of support for quota peanuts of

21 each crop not later than February 15 preceding the

22 marketing year for the crop for which the level of

23 support is being determined.

24 ‘‘(b) ADDITIONAL PEANUTS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall make

2 price support available to producers through loans,

3 purchases, or other operations on additional peanuts

4 from each crop at such levels as the Secretary finds

5 appropriate, taking into consideration the demand

6 for peanut oil and peanut meal, expected prices of

7 other vegetable oils and protein meals, and the de8 mand for peanuts in foreign markets, except that

9 the Secretary shall set the support rate on additional

10 peanuts at a level estimated by the Secretary to en11 sure that there are no losses to the Commodity

12 Credit Corporation on the sale or disposal of the

13 peanuts.

14 ‘‘(2) ANNOUNCEMENT.—The Secretary shall

15 announce the level of support for additional peanuts

16 of each crop not later than February 15 preceding

17 the marketing year for the crop for which the level

18 of support is being determined.

19 ‘‘(c) AREA MARKETING ASSOCIATIONS.—

20 ‘‘(1) WAREHOUSE STORAGE LOANS.—

21 ‘‘(A) IN GENERAL.—In carrying out sub22 sections (a) and (b), the Secretary shall make

23 warehouse storage loans available in each of the

24 three producing areas (described in section

25 1446.95 of title 7 of the Code of Federal Regu-
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1 lations (January 1, 1989)) to a designated area

2 marketing association of peanut producers that

3 is selected and approved by the Secretary and

4 that is operated primarily for the purpose of

5 conducting the loan activities. The Secretary

6 may not make warehouse storage loans avail7 able to any cooperative that is engaged in oper8 ations or activities concerning peanuts other

9 than those operations and activities specified in

10 this section and sections 358d and 358e of the

11 Agricultural Adjustment Act of 1938.

12 ‘‘(B) ADMINISTRATIVE AND SUPERVISORY

13 ACTIVITIES.—The area marketing associations

14 shall be used in administrative and supervisory

15 activities relating to price support and market16 ing activities under this section and sections

17 358d and 358e of the Agricultural Adjustment

18 Act of 1938.

19 ‘‘(C) ASSOCIATION COSTS.—Loans made to

20 the association under this paragraph shall in21 clude, in addition to the price support value of

22 the peanuts, such costs as the area marketing

23 association reasonably may incur in carrying

24 out its responsibilities, operations, and activities
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1 under this section and sections 358d and 358e

2 of the Agricultural Adjustment Act of 1938.

3 ‘‘(2) POOLS FOR QUOTA AND ADDITIONAL PEA4 NUTS.—

5 ‘‘(A) IN GENERAL.—The Secretary shall

6 require that each area marketing association es7 tablish pools and maintain complete and accu8 rate records by area and segregation for quota

9 peanuts handled under loan and for additional

10 peanuts placed under loan, except that separate

11 pools shall be established for Valencia peanuts

12 produced in New Mexico. Peanuts physically

13 produced outside the State of New Mexico shall

14 not be eligible for entry into or participation in

15 the New Mexico pools. Bright hull and dark

16 hull Valencia peanuts shall be considered as

17 separate types for the purpose of establishing

18 the pools.

19 ‘‘(B) NET GAINS.—Net gains on peanuts

20 in each pool, unless otherwise approved by the

21 Secretary, shall be distributed only to producers

22 who placed peanuts in the pool shall be distrib23 uted in proportion to the value of the peanuts

24 placed in the pool by each producer. Net gains
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1 for peanuts in each pool shall consist of the fol2 lowing:

3 ‘‘(i) QUOTA PEANUTS.—For quota

4 peanuts, the net gains over and above the

5 loan indebtedness and other costs or losses

6 incurred on peanuts placed in the pool plus

7 an amount from all additional pool gains

8 equal to any loss on disposition of all pea9 nuts in the pool for quota peanuts.

10 ‘‘(ii) ADDITIONAL PEANUTS.—For ad11 ditional peanuts, the net gains over and

12 above the loan indebtedness and other

13 costs or losses incurred on peanuts placed

14 in the pool for additional peanuts less any

15 amount allocated to offset any loss on the

16 pool for quota peanuts as provided in

17 clause (i).

18 ‘‘(d) LOSSES.—Notwithstanding any other provision

19 of this section:

20 ‘‘(1) QUOTA PEANUTS PLACED UNDER LOAN.—

21 Any distribution of net gains on additional peanuts

22 (other than net gains on additional peanuts in sepa23 rate type pools established under subsection

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

25 Mexico) shall be first reduced to the extent of any
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1 loss by the Commodity Credit Corporation on quota

2 peanuts placed under loan.

3 ‘‘(2) QUOTA LOAN POOLS.—

4 ‘‘(A) TRANSFERS FROM ADDITIONAL LOAN

5 POOLS.—The proceeds due any producer from

6 any pool shall be reduced by the amount of any

7 loss that is incurred with respect to peanuts

8 transferred from an additional loan pool to a

9 quota loan pool by such producer under section

10 358–1(b)(8) of the Agricultural Adjustment Act

11 of 1938.

12 ‘‘(B) OTHER LOSSES.—Losses in area

13 quota pools shall be offset by reducing the gains

14 of any producer in such pool by the amount of

15 pool gains attributed to the same producer from

16 the sale of additional peanuts for export and

17 domestic edible use.

18 ‘‘(e) DISAPPROVAL OF QUOTAS.—Notwithstanding

19 any other provision of law, no price support may be made

20 available by the Secretary for any crop of peanuts with

21 respect to which poundage quotas have been disapproved

22 by producers, as provided for in section 358–1(d) of the

23 Agricultural Adjustment Act of 1938.

24 ‘‘(f) QUALITY IMPROVEMENT.—
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1 ‘‘(1) PRICE SUPPORT PEANUTS.—With respect

2 to peanuts under price support loan, the Secretary

3 shall—

4 ‘‘(A) promote the crushing of peanuts at a

5 greater risk of deterioration before peanuts of a

6 lesser risk of deterioration;

7 ‘‘(B) ensure that all Commodity Credit

8 Corporation loan stocks of peanuts sold for do9 mestic edible use must be shown to have been

10 officially inspected by licensed Department of

11 Agriculture inspectors both as farmer stock and

12 shelled or cleaned in-shell peanuts;

13 ‘‘(C) continue to endeavor to operate the

14 peanut price support program so as to improve

15 the quality of domestic peanuts and ensure the

16 coordination of activities under the Peanut Ad17 ministrative Committee established under Mar18 keting Agreement No. 146, regulating the qual19 ity of domestically produced peanuts (under the

20 Agricultural Marketing Agreement Act of 1937

21 (7 U.S.C. 601 et seq.)); and

22 ‘‘(D) ensure that any changes made in the

23 price support program as a result of this sub24 section requiring additional production or han25 dling at the farm level shall be reflected as an
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1 upward adjustment in the Department of Agri2 culture loan schedule.

3 ‘‘(2) EXPORTS AND OTHER PEANUTS.—The

4 Secretary shall require that all peanuts, including

5 peanuts imported into the United States, meet all

6 U.S. quality standards under Marketing Agreement

7 No. 146 and that importers of such peanuts fully

8 comply with inspection, handling, storage and proc9 essing requirements implemented under Marketing

10 Agreement No. 146. The Secretary shall ensure that

11 peanuts produced for the export market meet qual12 ity, inspection, handling, storage and processing re13 quirements under Marketing Agreement No. 146.

14 ‘‘(g) MARKETING ASSESSMENT.—

15 ‘‘(1) IN GENERAL.—The Secretary shall pro16 vide, by regulation, for a nonrefundable marketing

17 assessment applicable to each crop of domestically18 grown peanuts and peanuts produced outside the

19 United States. The assessment shall be made in ac20 cordance with this subsection and shall be on a per

21 pound basis in an amount equal to 1.2 percent of

22 the applicable support rate under this subsection.

23 ‘‘(2) FIRST PURCHASERS.—
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1 ‘‘(A) IN GENERAL.—Except as provided

2 under paragraphs (4) and (5), the first pur3 chaser of peanuts shall—

4 ‘‘(i) collect from the producer a mar5 keting assessment equal to the quantity of

6 peanuts acquired multiplied by .65 percent

7 of the applicable national average support

8 rate;

9 ‘‘(ii) pay, in addition to the amount

10 collected under clause (i), a marketing as11 sessment in an amount equal to the quan12 tity of peanuts acquired multiplied by .55

13 percent of the applicable national average

14 support rate; and

15 ‘‘(iii) remit the amounts required

16 under clauses (i) and (ii) to the Commod17 ity Credit Corporation in a manner speci18 fied by the Secretary.

19 ‘‘(B) DEFINITION.—For purposes of this

20 subsection, the term ‘first purchaser’ means a

21 person acquiring peanuts from a producer, ex22 cept that in the case of peanuts forfeited by a

23 producer to the Commodity Credit Corporation,

24 such term means the person acquiring the pea25 nuts from the Commodity Credit Corporation.
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1 ‘‘(3) OTHER PEANUTS.—Each importer of pea2 nuts for domestic edible use produced outside of the

3 United States shall remit to the Commodity Credit

4 Corporation a nonrefundable marketing assessment

5 in an amount equal to the product obtained by mul6 tiplying the number of pounds of peanuts imported

7 by the importer by 1.2 percent of the national aver8 age support rate for domestic edible peanuts.

9 ‘‘(4) OTHER PRIVATE MARKETINGS.—In the

10 case of a private marketing by a producer directly

11 to a consumer through a retail or wholesale outlet

12 or in the case of a marketing by the producer out13 side of the continental United States, the producer

14 shall be responsible for the full amount of the as15 sessment and shall remit the assessment by such

16 time as is specified by the Secretary.

17 ‘‘(5) LOAN PEANUTS.—In the case of peanuts

18 that are pledged as collateral for a price support

19 loan made under this section, one-half of the assess20 ment shall be deducted from the proceeds of the

21 loan. The remainder of the assessment shall be paid

22 by the first purchaser of the peanuts. For purposes

23 of computing net gains on peanuts under this sec24 tion, the reduction in loan proceeds shall be treated

25 as having been paid to the producer.
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1 ‘‘(6) PENALTIES.—If any person fails to collect

2 or remit an assessment required by this subsection

3 or fails to comply with such requirements for record4 keeping or otherwise as are required by the Sec5 retary to carry out this subsection, the person shall

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

7 an amount determined by multiplying—

8 ‘‘(A) the quantity of peanuts involved in

9 the violation; by

10 ‘‘(B) the national average quota peanut

11 price support level for the applicable crop year.

12 ‘‘(7) ENFORCEMENT.—The Secretary may en13 force this subsection in the courts of the United

14 States.

15 ‘‘(h) CROPS.—Notwithstanding any other provision

16 of law, this section shall be effective only for the 1996

17 through 2002 crops of peanuts.’’.

18 (f) REPORTS AND RECORDS.—Effective only for the

19 1996 through 2002 crops of peanuts, the first sentence

20 of section 373(a) of the Agricultural Adjustment Act of

21 1938 (7 U.S.C. 1373(a)) is amended by inserting before

22 ‘‘all brokers and dealers in peanuts’’ the following: ‘‘all

23 producers engaged in the production of peanuts,’’.

24 (g) SUSPENSION OF CERTAIN PRICE SUPPORT PRO25 VISIONS.—Section 101 of the Agricultural Act of 1949 (7
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1 U.S.C. 1441) shall not be applicable to the 1996 through

2 2002 crops of peanuts.

3 (h) REGULATIONS.—The Secretary of Agriculture

4 shall issue such regulations as are necessary to carry out

5 this Act and the amendments made by this Act. In issuing

6 the regulations, the Secretary—

7 (1) is encouraged to comply with subchapter II

8 of chapter 5 of title 5, United States Code;

9 (2) shall provide public notice through the Fed10 eral Register of any such proposed regulations; and

11 (3) shall allow adequate time for written public

12 comment prior to the formulation and issuance of

13 any final regulations.

14 (i) FOOD, AGRICULTURE, CONSERVATION, AND

15 TRADE ACT OF 1990.—Title VIII of the Food, Agri16 culture, Conservation, and Trade Act of 1990 (Public Law

17 101–624; 104 Stat. 3459) is amended—

18 (1) in section 801 (104 Stat. 3459), by striking

19 ‘‘1995’’ and inserting ‘‘2000’’;

20 (2) in section 807 (104 Stat. 3478), by striking

21 ‘‘1995’’ and inserting ‘‘2000’’; and

22 (3) in section 808 (7 U.S.C. 1441 note), by

23 striking ‘‘1995’’ and inserting ‘‘2000’’.
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1 SEC. 206. SUGAR PROGRAM.

2 (a) ASSURANCE OF SUGAR SUPPLY.—Section 206 of

3 the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended

4 to read as follows:

5 ‘‘SEC. 206. ASSURANCE OF SUGAR SUPPLY.

6 ‘‘(a) IN GENERAL.—The price of each crop of sugar

7 beets and sugarcane, respectively, shall be supported in

8 accordance with this section.

9 ‘‘(b) SUGARCANE.—Subject to subsection (d), the

10 Secretary shall support the price of domestically grown

11 sugarcane through loans at 18 cents per pound for raw

12 cane sugar.

13 ‘‘(c) SUGAR BEETS.—Subject to subsection (d), the

14 Secretary shall support the price of each crop of domesti15 cally grown sugar beets through loans at the level provided

16 for refined beet sugar produced from the 1995 crop of do17 mestically grown sugar beets.

18 ‘‘(d) ADJUSTMENT IN SUPPORT LEVEL.—

19 ‘‘(1) DOWNWARD ADJUSTMENT IN SUPPORT

20 LEVEL.—

21 ‘‘(A) IN GENERAL.—The Secretary shall

22 decrease the support price of domestically

23 grown sugarcane and sugar beets from the

24 price determined for the preceding crop, as es25 tablished under this section, if negotiated re26 ductions in export subsidies and domestic sub-
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1 sidies provided for sugar of the European

2 Union and other major sugar growing, produc3 ing, and exporting countries (‘major countries’)

4 in the aggregate exceed the commitments made

5 as part of the Uruguay Round Agreements.

6 ‘‘(B) EXTENT OF REDUCTION.—The Sec7 retary shall not reduce the support price under

8 this section below a level that provides an equal

9 measure of support to that provided by any

10 other major country or customs union based on

11 an examination of both domestic and export

12 subsidies subject to reduction in the Agreement

13 on Agriculture referenced in 19 U.S.C.

14 3511(d)(2).

15 ‘‘(C) MAJOR COUNTRIES.—For purposes of

16 this subsection, the term ‘major countries’ in17 cludes all countries allocated a share of the tar18 iff rate quota for imported sugars and syrups

19 by the United States Trade Representative pur20 suant to additional U.S. note 5 of chapter 17

21 of the Harmonized Tariff Schedule, all coun22 tries of the European Union, and the People’s

23 Republic of China.

24 ‘‘(2) INCREASES IN SUPPORT LEVEL.—The Sec25 retary may increase the support level for each crop
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1 of domestically grown sugarcane and sugar beets

2 from the level determined for the preceding crop

3 based on such factors as the Secretary determines

4 appropriate, including changes (during the 2 crop

5 years immediately preceding the crop year for which

6 the determination is made) in the cost of sugar

7 products, the cost of domestic sugar production, the

8 amount of any applicable assessments, and other

9 factors or circumstances that may adversely affect

10 domestic sugar production.

11 ‘‘(e) LOAN TYPE; PROCESSOR ASSURANCES.—

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

13 the Secretary shall carry out this section through

14 the use of recourse loans.

15 ‘‘(2) MODIFICATION.—During any fiscal year in

16 which the tariff rate quota for imports of sugar into

17 the United States is set at or is increased to a level

18 that exceeds the minimum level for such imports

19 committed to by the United States under the Agree20 ment on Agriculture contained in the Uruguay

21 Round of Agreements of the General Agreement on

22 Tariffs and Trade, the Secretary shall carry out this

23 section by making available nonrecourse loans. Any

24 recourse loan previously made available by the Sec25 retary under this section during such fiscal year
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1 shall be modified by the Secretary into a

2 nonrecourse loan.

3 ‘‘(3) PROCESSOR ASSURANCES.—In order to ef4 fectively support the prices of sugar beets and sugar5 cane received by the producer, the Secretary shall

6 obtain from each processor that receives a loan

7 under this section such assurances as the Secretary

8 considers adequate that, if the Secretary is required

9 under paragraph (2) to make nonrecourse loans

10 available, or modify recourse loans into nonrecourse

11 loans, each producer served by the processor will re12 ceive the appropriate minimum payment for sugar

13 beets and sugarcane delivered by the producer, as

14 determined by the Secretary.

15 ‘‘(f) ANNOUNCEMENTS.—In order to ensure the effi16 cient administration of the program under this section and

17 the effective support of the price of sugar, the Secretary

18 shall announce the type of loans available and the loan

19 rates for beet sugar and cane sugar for any fiscal year

20 under this section as far in advance as is practicable.

21 ‘‘(g) LOAN TERM.—

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2) and subsection (h), loans under this sec24 tion during any fiscal year shall be made available
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1 not earlier than the beginning of the fiscal year and

2 shall mature at the end of 3 months.

3 ‘‘(2) EXTENSION.—The maturity of a loan

4 under this section may be extended for up to 2 addi5 tional 3-month periods, at the option of the bor6 rower, upon written request to the Commodity Cred7 it Corporation. The maturity of a loan may not be

8 extended under this paragraph beyond the end of

9 the fiscal year.

10 ‘‘(h) SUPPLEMENTARY LOANS.—Subject to sub11 section (d), the Secretary shall make available to eligible

12 processors price support loans with respect to sugar proc13 essed from sugar beets and sugarcane harvested in the last

14 3 months of a fiscal year. Such loans shall mature at the

15 end of the fiscal year. The processor may repledge the

16 sugar as collateral for a price support loan in the subse17 quent fiscal year, except that the second loan shall—

18 ‘‘(1) be made at the loan rate in effect at the

19 time the second loan is made; and

20 ‘‘(2) mature in not more than 9 months less the

21 quantity of time that the first loan was in effect.

22 ‘‘(i) USE OF COMMODITY CREDIT CORPORATION.—

23 The Secretary shall use the funds, facilities, and authori24 ties of the Commodity Credit Corporation to carry out this

25 section.
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1 ‘‘(j) MARKETING ASSESSMENTS.—The following as2 sessments shall be collected with respect to all sugar mar3 keted within the United States during the 1996 through

4 2003 fiscal years:

5 ‘‘(1) BEET SUGAR.—The first seller of beet

6 sugar produced from sugar beets or sugar beet mo7 lasses, or refined sugar refined outside of the United

8 States, shall remit to the Commodity Credit Cor9 poration a nonrefundable marketing assessment in

10 an amount equal to 1.1794 percent of the loan level

11 established under subsection (b) per pound of sugar

12 marketed.

13 ‘‘(2) CANE SUGAR.—The first seller of raw cane

14 sugar produced from sugarcane or sugarcane molas15 ses, shall remit to the Commodity Credit Corpora16 tion a nonrefundable marketing assessment in an

17 amount equal to 1.1 percent of the loan level estab18 lished under subsection (b) per pound of sugar mar19 keted (including the transfer or delivery of the sugar

20 to a refinery for further processing or marketing).

21 ‘‘(3) COLLECTION.—

22 ‘‘(A) TIMING.—Marketing assessments re23 quired under this subsection shall be collected

24 and remitted to the Commodity Credit Corpora-
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1 tion within 30 days of the date that the sugar

2 is marketed.

3 ‘‘(B) MANNER.—Subject to subparagraph

4 (A), marketing assessments shall be collected

5 under this subsection in the manner prescribed

6 by the Secretary and shall be nonrefundable.

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

8 an assessment required by this subsection or fails to

9 comply with such requirements for recordkeeping or

10 otherwise as are required by the Secretary to carry

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

12 Secretary for a civil penalty up to an amount deter13 mined by multiplying—

14 ‘‘(A) the quantity of sugar involved in the

15 violation; by

16 ‘‘(B) the loan level for the applicable crop

17 of sugarcane or sugar beets from which the

18 sugar is produced.

19 For the purposes of this paragraph, refined sugar

20 shall be treated as produced from sugar beets.

21 ‘‘(5) ENFORCEMENT.—The Secretary may en22 force this subsection in the courts of the United

23 States.

24 ‘‘(6) REGULATIONS.—The Secretary shall pro25 mulgate regulations to carry out this subsection.
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1 ‘‘(k) INFORMATION REPORTING.—

2 ‘‘(1) DUTY OF PROCESSORS AND REFINERS TO

3 REPORT.—All sugarcane processors, cane sugar re4 finers, and sugar beet processors shall furnish the

5 Secretary, on a monthly basis, such information as

6 the Secretary may require to administer sugar pro7 grams, including the quantity of purchases of sugar8 cane, sugar beets, and sugar, and production, impor9 tation, distribution, and stock levels of sugar.

10 ‘‘(2) DUTY OF PRODUCERS TO REPORT.—In

11 order to efficiently and effectively carry out the pro12 gram under this section, the Secretary may require

13 a producer of sugarcane or sugar beets to report, in

14 the manner prescribed by the Secretary, the produc15 er’s sugarcane or sugar beet yields and acres planted

16 to sugarcane or sugar beets, respectively.

17 ‘‘(3) PENALTY.—Any person willfully failing or

18 refusing to furnish the information, or furnishing

19 willfully any false information, shall be subject to a

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

21 violation.

22 ‘‘(4) MONTHLY REPORTS.—Taking into consid23 eration the information received under paragraph

24 (1), the Secretary shall publish on a monthly basis
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1 composite data on production, imports, distribution,

2 and stock levels of sugar.

3 ‘‘(l) SUGAR ESTIMATES.—

4 ‘‘(1) DOMESTIC REQUIREMENT.—Before the be5 ginning of each fiscal year, the Secretary shall esti6 mate the domestic sugar requirement of the United

7 States equal to Total Estimated Disappearance

8 minus the quantity of sugar that will be available

9 from carry-in stocks.

10 ‘‘(2) TOTAL DISAPPEARANCE.—For the pur11 poses of this subsection, the term ‘total estimated

12 disappearance’ means the quantity of sugar, as esti13 mated by the Secretary, that will be consumed in the

14 United States during the fiscal year (other than

15 sugar imported for the production of polyhydric alco16 hol or to be refined and reexported in refined form

17 or in sugar containing products) plus the quantity of

18 sugar that would provide for adequate carryover

19 stocks.

20 ‘‘(3) QUARTERLY REESTIMATES.—The Sec21 retary shall make quarterly reestimates of sugar

22 consumption, stocks, production, and imports for a

23 fiscal year no later than the beginning of each of the

24 second through fourth quarters of the fiscal year.
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1 ‘‘(m) DEFINITION OF MARKET.—For purposes of

2 this section, the term ‘market’ means to sell or otherwise

3 dispose of in commerce in the United States (including,

4 with respect to any integrated processor and refiner, the

5 movement of raw cane sugar into the refining process) and

6 deliver to a buyer.

7 ‘‘(n) CROPS.—This section shall be effective only for

8 the 1996 through 2002 crops of sugar beets and sugar9 cane.’’.

10 (b) CONFORMING AMENDMENT.—Part VII ob sub11 title B of title III of the Agricultural Adjustment Act of

12 1938 (7 U.S.C. 1359aa, et seq.) is repealed.

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

14 CROPS.

15 The amendments made by this tile shall not affect

16 the authority of the Secretary of Agriculture to carry out

17 a price support, production adjustment, or payment pro18 gram for any of the 1991 through 1995 crops of an agri19 cultural commodity established under a provision of law

20 as in effect immediately before the enactment of this Act.
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1 TITLE III—GENERAL

2 COMMODITY PROVISIONS

3 SEC. 301. EXTENSION OF SUPPLEMENTAL SET-ASIDE AND

4 ACREAGE LIMITATION AUTHORITY.

5 Section 113 of the Agricultural Act of 1949 (7 U.S.C.

6 1445h) is amended by striking ‘‘1995’’ and inserting

7 ‘‘2002’’.

8 SEC. 302. EXTENSION OF DEFICIENCY AND LAND DIVER9 SION PAYMENTS.

10 Section 114 of the Agricultural Act of 1949 (7 U.S.C.

11 1445j) is amended—

12 (1) in subsections (a)(1) and (c), by striking

13 ‘‘1997’’ each place it appears and inserting ‘‘2002’’;

14 and

15 (2) in subsection (b), by striking ‘‘1995’’ and

16 inserting ‘‘2002’’.

17 SEC. 303. EXTENSION OF AUTHORITY TO ADJUST ESTAB18 LISHED PRICES.

19 Section 402(b) of the Agricultural Act of 1949 (7

20 U.S.C. 1422(b)) is amended by striking ‘‘1995’’ and in21 serting ‘‘2002’’.
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1 SEC. 304. EXTENSION OF LIMITATION ON ADJUSTMENTS OF

2 SUPPORT PRICES.

3 Section 403(c) of the Agricultural Act of 1949 (7

4 U.S.C. 1423(c)) is amended by striking ‘‘1995’’ and in5 serting ‘‘2002’’.

6 SEC. 305. EXTENSION OF OPTION TO EXTEND PROGRAMS.

7 Section 406(b) of the Agricultural Act of 1949 (7

8 U.S.C. 1426(b)) is amended—

9 (1) by striking ‘‘1995’’ each place it appears

10 and inserting ‘‘2002’’;

11 (2) by striking ‘‘1996’’ each place it appears

12 and inserting ‘‘2003’’; and

13 (3) in paragraph (4), by striking ‘‘November

14 28, 1990’’ and inserting ‘‘January 1, 1995’’.

15 SEC. 306. REFERENCES TO TERMS REGARDING PRICE SUP16 PORT.

17 Section 408(k)(3) of the Agricultural Act of 1949 (7

18 U.S.C. 1428(k)(3)) is amended by striking ‘‘1995’’ and

19 inserting ‘‘2002’’.

20 SEC. 307. EXTENSION OF ACREAGE BASE AND YIELD SYS21 TEM.

22 Title V of the Agricultural Act of 1949 (7 U.S.C.

23 1461 et seq.) is amended—

24 (1) in subsections (c)(3) and (h)(2)(A) of sec25 tion 503 (7 U.S.C. 1463), by striking ‘‘1997’’ each

26 place it appears and inserting ‘‘2002’’;
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1 (2) in paragraphs (1) and (2) of section 505(b)

2 (7 U.S.C. 1465(b)), by striking ‘‘1997’’ each place

3 it appears and inserting ‘‘2002’’; and

4 (3) in section 509 (7 U.S.C. 1469), by striking

5 ‘‘1997’’ and inserting ‘‘2002’’.

6 SEC. 308. NORMALLY PLANTED ACREAGE.

7 Section 1001 of the Food and Agriculture Act of

8 1977 (7 U.S.C. 1309) is amended in subsections (a),

9 (b)(1), and (c) by striking ‘‘1995’’ each place it appears

10 and inserting ‘‘2002’’.

11 SEC. 309. EXTENSION OF NATIONAL AGRICULTURAL COST

12 OF PRODUCTION STANDARDS REVIEW

13 BOARD.

14 Section 1014 of the Agriculture and Food Act of

15 1981 (7 U.S.C. 4110) is amended by striking ‘‘1995’’ and

16 inserting ‘‘2002’’.

17 SEC. 310. EXTENSION OF PAYMENT LIMITATIONS.

18 Title X of the Food Security Act of 1985 (Public Law

19 99–198; 99 Stat. 1444) is amended—

20 (1) in paragraphs (1)(A), (1)(B), and (2)(A) of

21 section 1001 (7 U.S.C. 1308), by striking ‘‘1997’’

22 each place it appears and inserting ‘‘2002’’; and

23 (2) in section 1001C(a) (7 U.S.C. 1308–3(a)),

24 by striking ‘‘1997’’ both places it appears and in25 serting ‘‘2002’’.
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1 SEC. 311. EXTENSION OF REQUIREMENTS FOR NOTICE AND

2 PUBLIC PARTICIPATION IN SECRETARY DE3 TERMINATIONS.

4 Section 1017(b) of the Food Security Act of 1985

5 (7 U.S.C. 1385 note) is amended by striking ‘‘1995’’ and

6 inserting ‘‘2002’’.

7 SEC. 312. DETERMINATION OF NORMAL SUPPLY.

8 Section 1019 of the Food Security Act of 1985 (7

9 U.S.C. 1310a) is amended by striking ‘‘1995’’ and insert10 ing ‘‘2002’’.

11 SEC. 313. EXTENSION OF OPTIONS PILOT PROGRAM.

12 The Options Pilot Program Act of 1990 (subtitle E

13 of title XI of Public Law 101–624; 104 Stat. 3518; 7

14 U.S.C. 1421 note) is amended—

15 (1) in subsections (a) and (b) of section 1153,

16 by striking ‘‘1995’’ each place it appears and insert17 ing ‘‘2002’’; and

18 (2) in section 1154(b)(1)(A), by striking

19 ‘‘1995’’ both places it appears and inserting ‘‘2002’’.
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1 TITLE IV—REPEAL OF EMER2 GENCY LIVESTOCK FEED AS3 SISTANCE PROGRAM

4 SEC. 401. REPEAL OF EMERGENCY LIVESTOCK FEED AS5 SISTANCE PROGRAM.

6 (a) REPEAL.—The Emergency Livestock Feed As7 sistance Act of 1988 (title VI of the Agricultural Act of

8 1949; 7 U.S.C. 1471–1471j) is repealed.

9 (b) EFFECT OF REPEAL ON APPROVED APPLICA10 TIONS FOR ASSISTANCE.—The repeal of the Emergency

11 Livestock Feed Assistance Act of 1988 by subsection (a)

12 shall not affect the provision of payments or benefits

13 under such Act pursuant to a completed application ap14 proved by the Secretary of Agriculture before the date of

15 the enactment of this Act. The Emergency Livestock Feed

16 Assistance Act of 1988, as in effect on the day before the

17 date of the enactment of this Act, shall continue to apply

18 to the provision of payments or benefits pursuant to such

19 an application.

20 TITLE V—FEDERAL CROP

21 INSURANCE

22 SEC. 501. CONVERSION OF CATASTROPHIC RISK PROTEC23 TION PROGRAM TO A VOLUNTARY PROGRAM.

24 Section 508(b)(7) of the Federal Crop Insurance Act

25 (7 U.S.C. 1508(b)(7)) is amended—
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1 (1) by redesignating subparagraph (B) as sub2 paragraph (C); and

3 (2) by inserting after subparagraph (A) the fol4 lowing new subparagraph:

5 ‘‘(B) EXCEPTION.—Notwithstanding sub6 paragraph (A), a producer may decline to ob7 tain catastrophic risk protection, yet remain eli8 gible for any price support or production ad9 justment program, the conservation reserve pro10 gram, or any benefit described in section 371 of

11 the Consolidated Farm and Rural Development

12 Act, if the producer agrees in writing to waive

13 any eligibility for emergency crop loss assist14 ance in connection with losses to any crop for

15 which the producer declines to obtain cata16 strophic risk protection.’’.

17 TITLE VI—MISCELLANEOUS

18 PROGRAMS

19 SEC. 601. REDUCTION IN FUNDING LEVELS FOR EXPORT

20 ENHANCEMENT PROGRAM.

21 Section 301(e) of the Trade Act of 1978 (7 U.S.C.

22 5651(e)) is amended by striking paragraph (1) and insert23 ing the following new paragraph:
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1 ‘‘(1) IN GENERAL.—To carry out the program

2 established under this section, the Commodity Credit

3 Corporation shall make available—

4 ‘‘(A) for each of the fiscal years 1991

5 through 1995, not less than $500,000,000 of

6 the funds or commodities of the Commodity

7 Credit Corporation; and

8 ‘‘(B) for each of the fiscal years 1996

9 through 2002, not more than $400,000,000 of

10 the funds or commodities of the Commodity

11 Credit Corporation.’’.

12 SEC. 602. SPENDING LIMITATIONS ON CONSERVATION RE13 SERVE PROGRAM.

14 Title XII of the Food Security Act of 1985 is amend15 ed by inserting after section 1236 (16 U.S.C. 3836) the

16 following new section:

17 ‘‘SEC. 1236A. SPENDING LIMITATIONS ON CONSERVATION

18 RESERVE PROGRAM.

19 ‘‘The Secretary shall ensure that expenditures under

20 this subchapter for the conservation reserve program do

21 not exceed the following amounts:

22 ‘‘(1) $1,852,000,000 during fiscal year 1997.

23 ‘‘(2) $1,385,000,000 during fiscal year 1998.

24 ‘‘(3) $1,106,000,000 during fiscal year 1999.

25 ‘‘(4) $918,000,000 during fiscal year 2000.
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1 ‘‘(5) $779,000,000 during fiscal year 2001.

2 ‘‘(6) $753,000,000 during fiscal year 2002.’’.

3 TITLE VII—COMMISSION ON

4 21ST CENTURY PRODUCTION

5 AGRICULTURE

6 SEC. 701. ESTABLISHMENT.

7 There is hereby established a commission to be known

8 as the ‘‘Commission on 21st Century Production Agri9 culture’’ (hereinafter in this title referred to as the ‘‘Com10 mission’’).

11 SEC. 702. COMPOSITION.

12 (a) APPOINTMENT.—The Commission shall be com13 posed of 11 members, appointed as follows:

14 (1) Three members shall be appointed by the

15 President.

16 (2) Four members shall be appointed by the

17 Chairman of the Committee on Agriculture of the

18 House of Representatives in consultation with the

19 ranking minority member of the Committee.

20 (3) Four members shall be appointed by the

21 Chairman of the Committee on Agriculture, Nutri22 tion, and Forestry of the Senate in consultation with

23 the ranking minority member of the Committee.

24 (b) QUALIFICATIONS.—The members of the Commis25 sion shall be appointed from among persons having knowl-
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1 edge and experience in agricultural production, marketing,

2 finance, or trade.

3 (c) TERM OF MEMBERS; VACANCIES.—Members of

4 the Commission shall be appointed for the life of the Com5 mission. A vacancy on the Commission shall not affect its

6 powers, but shall be filled in the same manner as the origi7 nal appointment was made.

8 (d) TIME FOR APPOINTMENT; FIRST MEETING.—

9 The members of the Commission shall be appointed not

10 later than October 1, 1997. The Commission shall convene

11 its first meeting to carry out its duties under this title

12 30 days after six members of the Commission have been

13 appointed.

14 (e) CHAIRMAN.—The chairman of the Commission

15 shall be designated jointly by the Chairman of the Com16 mittee on Agriculture of the House of Representatives and

17 the Chairman of the Committee on Agriculture, Nutrition,

18 and Forestry of the Senate from among the members of

19 the Commission.

20 SEC. 703. COMPREHENSIVE REVIEW OF PAST AND FUTURE

21 OF PRODUCTION AGRICULTURE.

22 (a) INITIAL REVIEW.—The Commission shall conduct

23 a comprehensive review of changes in the condition of pro24 duction agriculture in the United States since the date of

25 the enactment of this Act and the extent to which such
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1 changes are the result of the amendments made by this

2 Act. The review shall include the following:

3 (1) An assessment of the success of farm pro4 grams under the Agricultural Act of 1949 in sup5 porting the economic viability of farming in the

6 United States.

7 (2) An assessment of the food security situation

8 in the United States in the areas of trade, consumer

9 prices, international competitiveness of United

10 States production agriculture, food supplies, and hu11 manitarian relief.

12 (3) An assessment of the changes in farm land

13 values and agricultural producer incomes since the

14 date of the enactment of this Act.

15 (4) An assessment of the extent to which regu16 latory relief for agricultural producers has been en17 acted and implemented, including the application of

18 cost/benefit principles in the issuance of agricultural

19 regulations.

20 (5) An assessment of the extent to which tax

21 relief for agricultural producers has been enacted in

22 the form of capital gains tax reductions, estate tax

23 exemptions, and mechanisms to average tax loads

24 over high and low income years.
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1 (6) An assessment of the effect of any Govern2 ment interference in agricultural export markets,

3 such as the imposition of trade embargoes, and the

4 degree of implementation and success of inter5 national trade agreements.

6 (b) SUBSEQUENT REVIEW.—The Commission shall

7 conduct a comprehensive review of the future of produc8 tion agriculture in the United States and the appropriate

9 role of the Federal Government in support of production

10 agriculture. The review shall include the following:

11 (1) An assessment of changes in the condition

12 of production agriculture in the United States since

13 the initial review conducted under subsection (a).

14 (2) Identification of the appropriate future rela15 tionship of the Federal Government with production

16 agriculture after 2002.

17 (3) An assessment of the manpower and infra18 structure requirements of the Department of Agri19 culture necessary to support the future relationship

20 of the Federal Government with production agri21 culture.

22 (c) RECOMMENDATIONS.—In carrying out the subse23 quent review under subsection (b), the Commission shall

24 develop specific recommendations for legislation to achieve

25 the appropriate future relationship of the Federal Govern-
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1 ment with production agriculture identified under sub2 section (a)(2).

3 SEC. 704. REPORTS.

4 (a) REPORT ON INITIAL REVIEW.—Not later than

5 January 1, 1999, the Commission shall submit to the

6 President, the Committee on Agriculture of the House of

7 Representatives, and the Committee on Agriculture, Nu8 trition, and Forestry of the Senate a report containing the

9 results of the initial review conducted under section

10 703(a).

11 (b) REPORT ON SUBSEQUENT REVIEW.—Not later

12 than January 1, 2001, the Commission shall submit to

13 the President and the congressional committees specified

14 in subsection (a) a report containing the results of the

15 subsequent review conducted under section 703(b).

16 SEC. 705. POWERS.

17 (a) HEARINGS.—The Commission may, for the pur18 pose of carrying out this title, conduct such hearings, sit

19 and act at such times, take such testimony, and receive

20 such evidence, as the Commission considers appropriate.

21 (b) ASSISTANCE FROM OTHER AGENCIES.—The

22 Commission may secure directly from any department or

23 agency of the Federal Government such information, rel24 evant to its duties under this title, as may be necessary

25 to carry out such duties. Upon request of the chairman
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1 of the Commission, the head of the department or agency

2 shall, to the extent permitted by law, furnish such infor3 mation to the Commission.

4 (c) MAIL.—The Commission may use the United

5 States mails in the same manner and under the same con6 ditions as the departments and agencies of the Federal

7 Government.

8 (d) ASSISTANCE FROM SECRETARY.—The Secretary

9 of Agriculture shall provide to the Commission appropriate

10 office space and such reasonable administrative and sup11 port services as the Commission may request.

12 SEC. 706. COMMISSION PROCEDURES.

13 (a) MEETINGS.—The Commission shall meet on a

14 regular basis (as determined by the chairman) and at the

15 call of the chairman or a majority of its members.

16 (b) QUORUM.—A majority of the members of the

17 Commission shall constitute a quorum for the transaction

18 of business.

19 SEC. 707. PERSONNEL MATTERS.

20 (a) COMPENSATION.—Each member of the Commis21 sion shall serve without compensation, but shall be allowed

22 travel expenses including per diem in lieu of subsistence,

23 as authorized by section 5703 of title 5, United States

24 Code, when engaged in the performance of Commission

25 duties.
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1 (b) STAFF.—The Commission shall appoint a staff

2 director, who shall be paid at a rate not to exceed the

3 maximum rate of basic pay under section 5376 of title

4 5, United States Code, and such professional and clerical

5 personnel as may be reasonable and necessary to enable

6 the Commission to carry out its duties under this title

7 without regard to the provisions of title 5, United States

8 Code, governing appointments in the competitive service,

9 and without regard to the provisions of chapter 51 and

10 subchapter III of chapter 53 of such title, or any other

11 provision of law, relating to the number, classification, and

12 General Schedule rates. No employee appointed under this

13 subsection (other than the staff director) may be com14 pensated at a rate to exceed the maximum rate applicable

15 to level 15 of the General Schedule.

16 (c) DETAILED PERSONNEL.—Upon request of the

17 chairman of the Commission, the head of any department

18 or agency of the Federal Government is authorized to de19 tail, without reimbursement, any personnel of such depart20 ment or agency to the Commission to assist the Commis21 sion in carrying out its duties under this section. The de22 tail of any such personnel may not result in the interrup23 tion or loss of civil service status or privilege of such per24 sonnel.
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1 SEC. 708. TERMINATION OF COMMISSION.

2 The Commission shall terminate upon submission of

3 the final report required by section 704.

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