I

103D CONGRESS

1ST SESSION H. R. 659

To provide assistance to certain producers of high-moisture feed grains

through a recourse loan program; establishing a period to allow for

the orderly repayment of such loans; and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 27, 1993

Mr. CAMP (for himself, Mr. ALLARD, Mr. BARRETT of Nebraska, Mr. EMERSON, Mr. BARCIA, Mr. GUNDERSON, and Mr. KILDEE) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To provide assistance to certain producers of high-moisture

feed grains through a recourse loan program; establishing a period to allow for the orderly repayment of such

loans; 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 That section 404 of the Food, Agriculture, Conservation,

4 and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.

5 1444f(q)) is amended by adding at the end thereof the

6 following new paragraph:

7 ‘‘(3) REDUCED QUALITY OF HIGH MOISTURE

8 RECOURSE LOAN.—(A) Notwithstanding any other
2

HR 659 IH

1 provision of law, effective for the 1992 through 1995

2 crops of feed grains, the Secretary shall make avail3 able recourse loans to producers on a farm who do

4 not normally harvest their crop of feed grains in a

5 high moisture state (or on that portion of the crop

6 which is not normally harvested in a high moisture

7 state). Such recourse loans shall be made available

8 whenever the crop (or the portion of the crop not

9 normally harvested in a high moisture state) is har10 vested with a moisture content in excess of Commod11 ity Credit Corporation standards for loans made

12 under paragraphs (1) and (6) of subsection (a) of

13 this section, or whenever the crop has a test weight

14 below the minimum weight required for Commodity

15 Credit Corporation nonrecourse loans made under

16 such paragraphs.

17 ‘‘(B) Recourse loans under this paragraph shall

18 be made to producers on a farm who—

19 ‘‘(i) present certified scale tickets from an

20 inspected, certified commercial scale, including

21 licensed warehouses, feedlots, feed mills, distill22 eries, or other similar entities approved by the

23 Secretary; or

24 ‘‘(ii) present field or other physical meas25 urements of the standing or stored feed grain
3

HR 659 IH

1 crop in regions of the country that do not have

2 certified commercial scales from which certified

3 scale tickets may be obtained within reasonable

4 proximity of harvest operation; and

5 ‘‘(iii) certify that the quantity of feed grain

6 to be placed under loan was in fact harvested

7 on the farm; and

8 ‘‘(iv) participate in an acreage limitation

9 program for the crop of feed grains established

10 by the Secretary.

11 ‘‘(C) A producer shall not be eligible for a loan

12 under this paragraph unless any prior loans made

13 under the authority of this paragraph have been

14 fully repaid.

15 ‘‘(D) Loans made under this paragraph shall

16 bear interest at a rate determined by the Secretary,

17 but in no event shall the rate exceed the rate of in18 terest charged for loans made under paragraphs (1)

19 and (6) of subsection (a) of this section.

20 ‘‘(E) Loans under this paragraph shall be made

21 in an amount as determined by the Secretary equal

22 to at least eighty percent, but not greater than nine23 ty percent, of the lowest county adjusted

24 nondiscounted loan rate for the appropriate crop

25 year for loans made to producers of feed grains
4

HR 659 IH

1 meeting the Commodity Credit Corporation stand2 ards for nonrecourse loans under paragraphs (1)

3 and (6) of subsection (a) of this section.

4 ‘‘(F) Loans made under this paragraph shall be

5 repaid in three equal annual installments, with the

6 first such installment being due and payable 365

7 days following the advance of the loan funds to the

8 producer and consisting of one-third of the principal

9 amount of the outstanding loan and 100 percent of

10 the accrued interest thereon. The second installment

11 shall consist of one-half of the principal amount of

12 the outstanding loan balance and 100 percent of the

13 accrued interest thereon, and the third installment

14 shall consist of the remaining principal of the loan

15 and 100 percent of the accrued interest thereon. In

16 the event any installment is not made within 60

17 days following the date upon which it becomes due

18 and payable, the Secretary shall have the right with19 out further notice to offset the entire balance of the

20 amount owed on the loan, including interest thereon,

21 against any other payments the producer may be en22 titled to receive under one or more of the annual

23 programs established under the Agricultural Act of

24 1949 (7 U.S.C. 1421 et seq.) for wheat, feed grains,

25 upland cotton, rice, and oilseeds.
5

HR 659 IH

1 ‘‘(G) The Secretary may permit a producer who

2 has obtained a loan under this paragraph to repay

3 a part or all of any annual installment required

4 under subparagraph (F) by tendering to the Com5 modity Credit Corporation a quantity of feed grain

6 which is of acceptable quality to meet the standards

7 for a nonrecourse loan under paragraphs (1) and (6)

8 of subsection (a) of this section. Such tender shall

9 be made by the producer at any facility approved for

10 storage of commodities owned by the Corporation

11 which facility is situated in the same county (or a

12 county adjacent to the county) in which the produc13 er’s farm is located, and the producer’s loan install14 ment payment shall be credited with an amount

15 equal to the per bushel county adjusted loan rate for

16 the grade and quality of grain tendered times the

17 total number of bushels tendered in payment by the

18 producer as approved by the Secretary.

Æ