I

106TH CONGRESS

1ST SESSION H. R. 217

To authorize the provision of economic assistance to certain hog producers

in response to current disastrously low prices for hogs.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. NUSSLE (for himself, Mr. LEACH, and Mr. LATHAM) introduced the

following bill; which was referred to the Committee on Agriculture

A BILL

To authorize the provision of economic assistance to certain

hog producers in response to current disastrously low

prices for hogs.

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

3 SECTION 1. NONRECOURSE MARKETING ASSISTANCE

4 LOANS FOR CERTAIN HOG PRODUCERS.

5 (a) NONRECOURSE LOANS AUTHORIZED.—

6 (1) IN GENERAL.—In order to assist hog pro7 ducers described in paragraph (2) to market their

8 hogs in an orderly manner during a period of disas9 trously low prices, from October 1, 1998, to Septem10 ber 30, 1999, the Secretary of Agriculture may
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1 make available to such producers nonrecourse mar2 keting assistance loans for hogs produced by such

3 producers. The loans shall be made under terms and

4 conditions prescribed by the Secretary and at the

5 loan rate determined under subsection (b).

6 (2) ELIGIBLE HOG PRODUCERS.—To be eligible

7 for a loan under this section, a producer shall mar8 ket not more than 5,000 hogs during the period

9 specified in paragraph (1).

10 (b) LOAN RATE.—The loan rate of a marketing as11 sistance loan under this section shall be—

12 (1) 85 percent of the average price for live hogs

13 during the preceding five-calendar years, excluding

14 the year in which the average price was the highest

15 and the year in which the average price was the low16 est in the period; but

17 (2) not more than $30 per hundredweight.

18 (c) TERM OF LOAN.—A marketing assistance loan

19 under this section shall have a term of nine months begin20 ning on the first day of the first month after the month

21 in which the loan is made. The Secretary may not extend

22 the term of the loan.

23 (d) REPAYMENT RATES.—The Secretary shall permit

24 a producer to repay a marketing assistance loan under this

25 section at a rate that is the lesser of—
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1 (1) the loan rate established under subsection

2 (b), plus interest (as determined by the Secretary);

3 or

4 (2) a rate that the Secretary determines will—

5 (A) minimize potential loan forfeitures;

6 (B) minimize the accumulation of stocks of

7 the commodity by the Federal Government;

8 (C) minimize the cost incurred by the Fed9 eral Government in storing the commodity; and

10 (D) allow the commodity produced in the

11 United States to be marketed freely and com12 petitively, both domestically and internationally.

13 (e) AVAILABILITY OF LOAN DEFICIENCY PAY14 MENTS.—

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

16 loan deficiency payments available to producers who,

17 although eligible to obtain a marketing assistance

18 loan under this section, agree to forgo obtaining the

19 loan in return for payments under this subsection.

20 (2) COMPUTATION.—A loan deficiency payment

21 under this subsection shall be computed by

22 multiplying—

23 (A) the loan payment rate determined

24 under paragraph (3); by
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1 (B) the quantity of the loan commodity

2 that the producers on a farm are eligible to

3 place under loan but for which the producers

4 forgo obtaining the loan in return for payments

5 under this subsection.

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

7 this subsection, the loan payment rate shall be the

8 amount by which—

9 (A) the loan rate established under sub10 section (b) and in effect; exceeds

11 (B) the rate at which a loan for the com12 modity may be repaid under subsection (d).

13 (f) PAYMENT LIMITATION.—The total gain that a

14 person may receive under this section from the repayment

15 of a marketing assistance loan under this section or the

16 receipt of loan deficiency payments under subsection (e)

17 may not exceed $75,000.

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