I

107TH CONGRESS

1ST SESSION H. R. 2164

To amend the Agricultural Market Transition Act to gradually reduce the

loan rate for peanuts, to repeal peanut quotas for the 2004 and subsequent crops, and to require the Secretary of Agriculture to purchase

peanuts and peanut products for nutrition programs only at the world

market price, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 13, 2001

Mr. SHAYS (for himself, Mr. KANJORSKI, Mr. KOLBE, Mr. TOOMEY, Mr.

ENGLISH, Mr. MILLER of Florida, Mr. BASS, Mr. BARRETT of Wisconsin,

Mr. SUNUNU, Mr. BORSKI, Mr. SMITH of New Jersey, Mr. SENSENBRENNER, Mr. LIPINSKI, Mr. KIRK, Mr. UPTON, Mr. SOUDER, Mr.

GEKAS, Mr. FRELINGHUYSEN, Mr. BRADY of Pennsylvania, Mr.

PALLONE, Mrs. ROUKEMA, Mr. BLUMENAUER, Mr. HUTCHINSON, Mrs.

KELLY, Mr. ROHRABACHER, Mr. CRANE, Mr. WAMP, Mr. RYAN of Wisconsin, Mr. CAPUANO, Mrs. MALONEY of New York, Mrs. MORELLA, Mr.

PITTS, Mr. GOSS, Mr. LUTHER, Mr. FRANK, Mr. ALLEN, Mr. KELLER,

Mrs. BIGGERT, Mr. LOBIONDO, Mr. ROYCE, Mr. GUTIERREZ, and Mr.

GEORGE MILLER of California) introduced the following bill; which was

referred to the Committee on Agriculture, and in addition to the Committee on Education and the Workforce, for a period to be subsequently

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Agricultural Market Transition Act to gradually reduce the loan rate for peanuts, to repeal peanut

quotas for the 2004 and subsequent crops, and to require

the Secretary of Agriculture to purchase peanuts and
2

•HR 2164 IH

peanut products for nutrition programs only at the world

market price, 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. REDUCTION IN LOAN RATES FOR PEANUTS.

4 (a) LOAN RATE REDUCTION.—Subsection (a) of sec5 tion 155 of the Agricultural Market Transition Act (7

6 U.S.C. 7271) is amended by striking paragraph (2) and

7 inserting the following new paragraph:

8 ‘‘(2) LOAN RATE.—The national average quota

9 loan rate for quota peanuts shall be as follows:

10 ‘‘(A) $610 per ton for the 2001 crop.

11 ‘‘(B) $550 per ton for the 2002 crop.

12 ‘‘(C) $500 per ton for the 2003 crop.’’.

13 (b) EXTENSION OF MARKETING ASSESSMENT.—Sub14 section (g) of such section is amended by striking ‘‘2002’’

15 both places it appears and inserting ‘‘2003’’.

16 (c) CONFORMING AMENDMENT.—Subsection (h) of

17 such section is amended by striking ‘‘2002’’ and inserting

18 ‘‘2003’’.

19 (d) CONTINUED SUSPENSION OF CERTAIN PEANUT

20 QUOTA PROVISIONS.—The following provisions of the Ag21 ricultural Adjustment Act of 1938 shall not be applicable

22 to the 2003 crops of peanuts:

23 (1) Subsections (a) through (j) of section 358

24 (7 U.S.C. 1358).
3

•HR 2164 IH

1 (2) Subsections (a) through (h) of section 358a

2 (7 U.S.C. 1358a).

3 (3) Subsections (a), (b), (d), and (e) of section

4 358d (7 U.S.C. 1359).

5 (4) Part I of subtitle C of title III (7 U.S.C.

6 1361–1368).

7 SEC. 2. NONRECOURSE LOANS FOR 2004 AND SUBSEQUENT

8 CROPS OF PEANUTS.

9 (a) LOAN PROGRAM.—The Agricultural Market

10 Transition Act is amended by inserting after section 155

11 (7 U.S.C. 7271) the following new section:

12 ‘‘SEC. 155A. PEANUT PROGRAM FOR 2004 AND SUBSEQUENT

13 CROPS.

14 ‘‘(a) AVAILABILITY OF LOANS.—The Secretary shall

15 make nonrecourse loans available to producers of peanuts

16 for each of the 2004 and subsequent crops of peanuts.

17 ‘‘(b) LOAN RATE.—

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

19 the Secretary shall offer nonrecourse loans to peanut

20 producers under subsection (a) at a rate equal to not

21 less than 85 percent of the simple average price re22 ceived by producers for peanuts, as determined by

23 the Secretary, during the marketing year for each of

24 the immediately preceding 5 crops of peanuts, ex25 cluding the year in which the average price was the
4

•HR 2164 IH

1 highest and the year in which the average price was

2 the lowest during the period.

3 ‘‘(2) MAXIMUM LOAN RATE.—Notwithstanding

4 paragraph (1), the loan rate under subsection (a)

5 shall not exceed $350 per ton.

6 ‘‘(3) ANNOUNCEMENT.—The Secretary shall

7 announce the loan rate for each crop of peanuts not

8 later than the February 15 preceding the marketing

9 year for which the loan rate is being determined.

10 ‘‘(c) INSPECTION, HANDLING, OR STORAGE.—The

11 loan rate determined under subsection (b) for a crop of

12 peanuts shall not be reduced by any deduction for inspec13 tion, handling, or storage.

14 ‘‘(d) LOCATION AND OTHER FACTORS.—The Sec15 retary may make adjustments in the loan rate determined

16 under subsection (b) for the location of peanuts and such

17 other factors as are authorized by section 403(a) of the

18 Agricultural Act of 1949 (7 U.S.C. 1423).

19 ‘‘(e) NO NET COST REQUIREMENT.—Loans under

20 subsection (a) shall be administered at no net cost to the

21 Commodity Credit Corporation.

22 ‘‘(f) MARKETING OF PEANUTS OWNED OR CON23 TROLLED BY COMMODITY CREDIT CORPORATION.—Any

24 peanuts owned or controlled by the Commodity Credit

25 Corporation may be made available for domestic edible
5

•HR 2164 IH

1 use, in accordance with regulations issued by the Sec2 retary, so long as doing so results in no net cost to the

3 Commodity Credit Corporation.

4 ‘‘(g) COMMODITY CREDIT CORPORATION.—The Sec5 retary shall carry out the program authorized by this sec6 tion through the Commodity Credit Corporation.’’.

7 (b) REPEAL OF OTHER PEANUT PRICE SUPPORT AU8 THORITY.—The Agricultural Act of 1949 (7 U.S.C. 1441

9 et seq.) is amended—

10 (1) in section 101(b) (7 U.S.C. 1441(b)), by

11 striking ‘‘and peanuts’’; and

12 (2) in section 408 (7 U.S.C. 1428)—

13 (A) in subsection (c), by striking ‘‘pea14 nuts,’’; and

15 (B) in subsection (d), by inserting before

16 the period at the end the following: ‘‘or pea17 nuts’’.

18 SEC. 3. ELIMINATION OF PEANUT QUOTAS FOR 2004 AND

19 SUBSEQUENT CROPS OF PEANUTS.

20 (a) IN GENERAL.—Part VI of subtitle B of title III

21 of the Agricultural Adjustment Act of 1938 (7 U.S.C.

22 1357 et seq.) is repealed.

23 (b) CONFORMING AMENDMENTS.—
6

•HR 2164 IH

1 (1) DEFINITIONS.—Section 301(b) of the Agri2 cultural Adjustment Act of 1938 (7 U.S.C. 1301(b))

3 is amended—

4 (A) in paragraph (3)(A), by striking ‘‘corn,

5 rice, and peanuts’’ and inserting ‘‘corn and

6 rice’’;

7 (B) in paragraph (6), by striking subpara8 graph (C);

9 (C) in paragraph (10)(A)—

10 (i) by striking ‘‘wheat, and peanuts’’

11 and inserting ‘‘and wheat’’; and

12 (ii) by striking ‘‘; 20 per centum in

13 the case of wheat; and 15 per centum in

14 the case of peanuts’’ and inserting ‘‘; and

15 20 percent in the case of wheat’’;

16 (D) in paragraph (13)—

17 (i) by striking subparagraphs (B) and

18 (C); and

19 (ii) in subparagraph (G), by striking

20 ‘‘or peanuts’’ both places it appears; and

21 (E) in paragraph (16)(A), by striking

22 ‘‘rice, and peanuts’’ and inserting ‘‘and rice’’.

23 (2) ADMINISTRATIVE PROVISIONS.—Section 361

24 of the Agricultural Adjustment Act of 1938 (7

25 U.S.C. 1361) is amended by striking ‘‘peanuts,’’.
7

•HR 2164 IH

1 (3) ADJUSTMENT OF QUOTAS.—Section 371 of

2 the Agricultural Adjustment Act of 1938 (7 U.S.C.

3 1371) is amended—

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

5 by striking ‘‘peanuts,’’; and

6 (B) in the first sentence of subsection (b),

7 by striking ‘‘peanuts’’.

8 (4) REPORTS AND RECORDS.—Section 373 of

9 the Agricultural Adjustment Act of 1938 (7 U.S.C.

10 1373) is amended—

11 (A) in subsection (a), by striking the first

12 sentence and inserting the following new sen13 tence: ‘‘This subsection shall apply to ware14 housemen, processors, and common carriers of

15 corn, wheat, cotton, rice, or tobacco, and all

16 ginners of cotton, all persons engaged in the

17 business of purchasing corn, wheat, cotton, rice,

18 or tobacco from producers, and all persons en19 gaged in the business of redrying, prizing, or

20 stemming tobacco for producers.’’; and

21 (B) in subsection (b), by striking ‘‘pea22 nuts,’’.

23 (5) REGULATIONS.—Section 375(a) of the Agri24 cultural Adjustment Act of 1938 (7 U.S.C. 1375(a))

25 is amended by striking ‘‘peanuts,’’.
8

•HR 2164 IH

1 (6) EMINENT DOMAIN.—The first sentence of

2 section 378(c) of the Agricultural Adjustment Act of

3 1938 (7 U.S.C. 1378(c)) is amended by striking

4 ‘‘cotton, tobacco, and peanuts,’’ and inserting ‘‘cot5 ton and tobacco,’’.

6 (c) LIABILITY.—A provision of this section or an

7 amendment made by this section shall not affect the liabil8 ity of any person under any provision of law as in effect

9 before the application of the provision of this section or

10 the amendment in accordance with this section.

11 (d) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect October 1, 2003, and shall

13 apply with respect to the 2004 and subsequent crops of

14 peanuts.

15 SEC. 4. PURCHASE OF PEANUTS FOR NUTRITION PRO16 GRAMS.

17 Section 14 of the National School Lunch Act (42

18 U.S.C. 1762a) is amended by adding at the end the fol19 lowing:

20 ‘‘(h) PURCHASE OF PEANUTS FOR NUTRITION PRO21 GRAMS.—

22 ‘‘(1) DEFINITIONS.—In this subsection—

23 ‘‘(A) ADDITIONAL PEANUTS.—The term

24 ‘additional peanuts’ has the meaning given the
9

•HR 2164 IH

1 term in section 358–1(e) of the Agricultural

2 Adjustment Act of 1938 (7 U.S.C. 1358–1(e)).

3 ‘‘(B) COVERED PROGRAM.—The term ‘cov4 ered program’ means—

5 ‘‘(i) a program established under this

6 Act;

7 ‘‘(ii) a program established under the

8 Child Nutrition Act of 1966 (42 U.S.C.

9 1771 et seq.);

10 ‘‘(iii) the emergency food assistance

11 program established under the Emergency

12 Food Assistance Act of 1983 (7 U.S.C.

13 7501 et seq.);

14 ‘‘(iv) the food distribution program on

15 Indian reservations established under sec16 tion 4(b) of the Food Stamp Act of 1977

17 (7 U.S.C. 2013(b));

18 ‘‘(v) the commodity distribution pro19 gram established under section 4 of the

20 Agriculture and Consumer Protection Act

21 of 1973 (Public Law 93–86; 7 U.S.C. 612c

22 note);

23 ‘‘(vi) the commodity supplemental

24 food program established under section 5

25 of the Agriculture and Consumer Protec-
10

•HR 2164 IH

1 tion Act of 1973 (Public Law 93–86; 7

2 U.S.C. 612c note); and

3 ‘‘(vii) a nutrition program carried out

4 under part C of title III of the Older

5 Americans Act of 1965 (42 U.S.C. 3030e

6 et seq.).

7 ‘‘(2) PURCHASES.—Notwithstanding any other

8 provision of law, in purchasing peanuts or peanut

9 products to carry out a covered program, the Sec10 retary shall—

11 ‘‘(A) purchase the peanuts or peanut prod12 ucts at a price that is not more than the pre13 vailing world market price for peanuts or pea14 nut products produced in the United States, as

15 determined by the Secretary; and

16 ‘‘(B) in the case of peanut purchases, pur17 chase only additional peanuts.

18 ‘‘(3) DOMESTIC EDIBLE USE.—Notwithstanding

19 any other provision of law, additional peanuts pur20 chased by the Secretary to carry out a covered pro21 gram shall not be considered to be peanuts for do22 mestic edible use under the Agricultural Adjustment

23 Act of 1938 (7 U.S.C. 1281 et seq.) or Agricultural

24 Market Transition Act (7 U.S.C. 7201 et seq.).
11

•HR 2164 IH

1 ‘‘(4) SUPPLY.—The Secretary shall take such

2 actions as are necessary to ensure, to the maximum

3 extent practicable, that an adequate supply of addi4 tional peanuts is available to carry out covered pro5 grams.

6 ‘‘(5) PENALTIES.—Notwithstanding any other

7 provision of law, a person that produces additional

8 peanuts that are sold to the Secretary, or sells addi9 tional peanuts to the Secretary, for a covered pro10 gram shall not be subject to a penalty or other sanc11 tion for the production or sale of the additional pea12 nuts.’’.

Æ