In the Senate of the United States,
March 12, 1996.
Resolved, That the bill from the House of Representa-
tives (H.R. 2854) entitled ‘‘An Act to modify the operation
of certain agricultural programs.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Ag-
ricultural Reform and Improvement Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—AGRICULTURAL MARKET TRANSITION PROGRAM
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Suspension and repeal of permanent authorities.
Sec. 110. Effect of amendments.
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TITLE II—AGRICULTURAL TRADE
Subtitle A—Amendments to Agricultural Trade Development and Assistance Act
of 1954 and Related Statutes
Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food aid consultative group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of commodity credit corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations.
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Levels of assistance under farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
Sec. 229. Stimulation of foreign production.
Subtitle B—Amendments to Agricultural Trade Act of 1978
Sec. 241. Agricultural export promotion strategy.
Sec. 242. Export credits.
Sec. 243. Market promotion program.
Sec. 244. Export enhancement program.
Sec. 245. Arrival certification.
Sec. 246. Compliance.
Sec. 247. Regulations.
Sec. 248. Trade compensation and assistance programs.
Sec. 249. Foreign agricultural service.
Sec. 250. Reports.
Subtitle C—Miscellaneous
Sec. 251. Reporting requirements relating to tobacco.
Sec. 252. Triggered export enhancement.
Sec. 253. Disposition of commodities to prevent waste.
Sec. 254. Direct sales of dairy products.
Sec. 255. Export sales of dairy products.
Sec. 256. Debt-for-health-and-protection swap.
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Sec. 257. Policy on expansion of international markets.
Sec. 258. Policy on maintenance and development of export markets.
Sec. 259. Policy on trade liberalization.
Sec. 260. Agricultural trade negotiations.
Sec. 261. Policy on unfair trade practices.
Sec. 262. Agricultural aid and trade missions.
Sec. 263. Annual reports by agricultural attaches.
Sec. 264. World livestock market price information.
Sec. 265. Orderly liquidation of stocks.
Sec. 266. Sales of extra long staple cotton.
Sec. 267. Regulations.
Sec. 268. Emerging markets.
Sec. 269. Import assistance for CBI beneficiary countries and the Philippines.
Sec. 270. Studies, reports, and other provisions.
Sec. 271. Implementation of commitments under Uruguay Round Agreements.
Sec. 272. Sense of Congress concerning multilateral disciplines on credit guaran-
tees.
Sec. 273. Foreign market development cooperator program.
Sec. 274. Price support for rice.
TITLE III—CONSERVATION
Subtitle A—Definitions
Sec. 301. Definitions.
Subtitle B—Environmental Conservation Acreage Reserve Program
Sec. 311. Environmental conservation acreage reserve program.
Sec. 312. Conservation reserve program.
Sec. 313. Wetlands reserve program.
Sec. 314. Environmental quality incentives program.
Subtitle C—Conservation Funding
Sec. 321. Conservation funding.
Subtitle D—National Natural Resources Conservation Foundation
Sec. 331. Short title.
Sec. 332. Definitions.
Sec. 333. National Natural Resources Conservation Foundation.
Sec. 334. Composition and operation.
Sec. 335. Officers and employees.
Sec. 336. Corporate powers and obligations of the Foundation.
Sec. 337. Administrative services and support.
Sec. 338. Audits and petition of Attorney General for equitable relief.
Sec. 339. Release from liability.
Sec. 340. Authorization of appropriations.
Subtitle E—Miscellaneous
Sec. 351. Flood risk reduction.
Sec. 352. Forestry.
Sec. 353. State technical committees.
Sec. 354. Conservation of private grazing land.
Sec. 355. Conforming amendments.
Sec. 356. Water bank program.
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Sec. 357. Flood water retention pilot projects.
Sec. 358. Wetland conservation exemption.
Sec. 359. Floodplain easements.
Sec. 360. Resource conservation and development program reauthorization.
Sec. 361. Conservation reserve new acreage.
Sec. 362. Repeal of report requirement.
Sec. 363. Watershed protection and flood prevention act amendments.
Sec. 364. Abandonment of converted wetlands.
TITLE IV—NUTRITION ASSISTANCE
Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food pro-
gram.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchens program.
Sec. 405. National commodity processing.
TITLE V—MISCELLANEOUS
Subtitle A—General Miscellaneous Provisions
Sec. 501. Fund for dairy producers to pay for nutrient management.
Sec. 502. Crop insurance.
Sec. 503. Revenue insurance.
Sec. 504. Collection and use of agricultural quarantine and inspection fees.
Sec. 505. Commodity Credit Corporation interest rate.
Sec. 506. Everglades Agricultural Area.
Sec. 507. Fund for Rural America.
Subtitle B—Options Pilot Programs and Risk Management Education
Sec. 511. Short title.
Sec. 512. Purpose.
Sec. 513. Pilot programs.
Sec. 514. Terms and conditions.
Sec. 515. Notice.
Sec. 516. Commodity Credit Corporation.
Sec. 517. Risk management education.
Subtitle C—Commercial Transportation of Equine for Slaughter
Sec. 521. Findings.
Sec. 522. Definitions.
Sec. 523. Standards for humane commercial transportation of equine for slaugh-
ter.
Sec. 524. Records.
Sec. 525. Agents.
Sec. 526. Cooperative agreements.
Sec. 527. Investigations and inspections.
Sec. 528. Interference with enforcement.
Sec. 529. Jurisdiction of courts.
Sec. 530. Civil and criminal penalties.
Sec. 531. Payments for temporary or medical assistance for equine due to viola-
tions.
Sec. 532. Relationship to State law.
Sec. 533. Authorization of appropriations.
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Subtitle D—Miscellaneous
Sec. 541. Livestock dealer trust.
Sec. 542. Planting of energy crops.
Sec. 543. Reimbursable agreements.
Sec. 544. Swine health protection.
Sec. 545. Cooperative work for protection, management, and improvement of Na-
tional Forest System.
Sec. 546. Amendment of the Virus-Serum Toxin Act of 1913.
Sec. 547. Overseas tort claims.
Sec. 548. Graduate School of the United States Department of Agriculture.
Sec. 549. Student intern subsistence program.
Sec. 550. Conveyance of land to White Oak Cemetery.
Sec. 551. Advisory board on agricultural air quality.
Sec. 552. Water systems for rural and Native villages in Alaska.
Sec. 553. Eligibility for grants to broadcasting systems.
Sec. 554. Wildlife Habitat Incentives Program.
Sec. 555. Indian reservations.
Sec. 556. ICD reimbursement for overhead expenses.
Sec. 557. Clarification of effect of resource planning on allocation or use of water.
TITLE VI—CREDIT
Subtitle A—Agricultural Credit
CHAPTER 1—FARM OWNERSHIP LOANS
Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.
CHAPTER 2—OPERATING LOANS
Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for guaranteed as-
sistance.
CHAPTER 3—EMERGENCY LOANS
Sec. 621. Hazard insurance requirement.
Sec. 622. Maximum emergency loan indebtedness.
Sec. 623. Insurance of emergency loans.
CHAPTER 4—ADMINISTRATIVE PROVISIONS
Sec. 631. Use of collection agencies.
Sec. 632. Notice of loan service programs.
Sec. 633. Sale of property.
Sec. 634. Definitions.
Sec. 635. Authorization for loans.
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Sec. 636. List of certified lenders and inventory property demonstration project.
Sec. 637. Homestead property.
Sec. 638. Restructuring.
Sec. 639. Transfer of inventory lands.
Sec. 640. Implementation of target participation rates.
Sec. 641. Delinquent borrowers and credit study.
CHAPTER 5—GENERAL PROVISIONS
Sec. 651. Conforming amendments.
Subtitle B—Farm Credit System
CHAPTER 1—AGRICULTURAL MORTGAGE SECONDARY MARKET
Sec. 661. Definition of real estate.
Sec. 662. Definition of certified facility.
Sec. 663. Duties of Federal Agricultural Mortgage Corporation.
Sec. 664. Powers of the Corporation.
Sec. 665. Federal reserve banks as depositaries and fiscal agents.
Sec. 666. Certification of agricultural mortgage marketing facilities.
Sec. 667. Guarantee of qualified loans.
Sec. 668. Mandatory reserves and subordinated participation interests elimi-
nated.
Sec. 669. Standards requiring diversified pools.
Sec. 670. Small farms.
Sec. 671. Definition of an affiliate.
Sec. 672. State usury laws superseded.
Sec. 673. Extension of capital transition period.
Sec. 674. Minimum capital level.
Sec. 675. Critical capital level.
Sec. 676. Enforcement levels.
Sec. 677. Recapitalization of the Corporation.
Sec. 678. Liquidation of the Federal Agricultural Mortgage Corporation.
CHAPTER 2—REGULATORY RELIEF
Sec. 681. Compensation of association personnel.
Sec. 682. Use of private mortgage insurance.
Sec. 683. Removal of certain borrower reporting requirement.
Sec. 684. Reform of regulatory limitations on dividend, member business, and
voting practices of eligible farmer-owned cooperatives.
Sec. 685. Removal of Federal Government certification requirement for certain
private sector financings.
Sec. 686. Borrower stock.
Sec. 687. Disclosure relating to adjustable rate loans.
Sec. 688. Borrowers’ rights.
Sec. 689. Formation of administrative service entities.
Sec. 690. Joint management agreements.
Sec. 691. Dissemination of quarterly reports.
Sec. 692. Regulatory review.
Sec. 693. Examination of Farm Credit System Institutions.
Sec. 694. Conservatorships and receiverships.
Sec. 695. Farm Credit Insurance Fund operations.
Sec. 696. Examinations by the Farm Credit System Insurance Corporation.
Sec. 697. Powers with respect to troubled insured system banks.
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Sec. 698. Oversight and regulatory actions by the Farm Credit System Insurance
Corporation.
Sec. 699. Farm Credit System Insurance Corporation Board of Directors.
Sec. 699A. Liability for making criminal referrals.
TITLE VII—RURAL DEVELOPMENT
Subtitle A—Amendments to the Food, Agriculture, Conservation, and Trade Act
of 1990
CHAPTER 1—GENERAL PROVISIONS
Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural technology
grants.
Sec. 706. Monitoring the economic progress of rural America.
Sec. 707. Analysis by Office of Technology Assessment.
Sec. 708. Rural health infrastructure improvement.
Sec. 709. Census of agriculture.
CHAPTER 2—ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION
Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization Revolving
Fund.
Sec. 729. Procurement preferences for products receiving corporation assistance.
Sec. 730. Business plan and feasibility study and report.
Subtitle B—Amendments to the Consolidated Farm and Rural Development Act
CHAPTER 1—GENERAL PROVISIONS
Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant program for small com-
munities.
Sec. 743. Emergency community water assistance grant program for smallest
communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
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Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. National sheep industry improvement center.
CHAPTER 2—RURAL COMMUNITY ADVANCEMENT PROGRAM
Sec. 761. Rural community advancement program.
Sec. 762. Community facilities grant program.
Subtitle C—Amendments to the Rural Electrification Act of 1936
Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by executive order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services to electric
customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural business incubator fund.
Subtitle D—Miscellaneous Rural Development Provisions
Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers, and rural
families.
Sec. 793. Cooperative agreements.
TITLE VIII—RESEARCH EXTENSION AND EDUCATION
Subtitle A—Amendments to National Agricultural Research, Extension, and
Teaching Policy Act of 1977 and Related Statutes
Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 803. Joint Council on Food and Agricultural Sciences.
Sec. 804. National Agricultural Research, Extension, Education, and Economics
Advisory Board.
Sec. 805. Agricultural Science and Technology Review Board.
Sec. 806. Federal Advisory Committee Act exemption for Federal-State coopera-
tive programs.
Sec. 807. Coordination and planning of agricultural research, extension, and edu-
cation.
Sec. 808. Grants and fellowships for food and agricultural sciences education.
Sec. 809. Grants for research on the production and marketing of alcohols and
industrial hydrocarbons from agricultural commodities and for-
est products.
Sec. 810. Policy research centers.
Sec. 811. Human nutrition intervention and health promotion research program.
Sec. 812. Food and nutrition education program.
Sec. 813. Purposes and findings relating to animal health and disease research.
Sec. 814. Animal Health Science Research Advisory Board.
Sec. 815. Animal health and disease continuing research.
Sec. 816. Animal health and disease national or regional research.
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Sec. 817. Resident instruction program at 1890 land-grant colleges.
Sec. 818. Grant program to upgrade agricultural and food sciences facilities at
1890 land-grant colleges.
Sec. 819. National research and training centennial centers authorization.
Sec. 820. Grants to States for international trade development centers.
Sec. 821. Agricultural research programs.
Sec. 822. Extension education.
Sec. 823. Supplemental and alternative crops research.
Sec. 824. Aquaculture assistance programs.
Sec. 825. Rangeland research.
Sec. 826. Technical amendments.
Subtitle B—Amendments to Food, Agriculture, Conservation, and Trade Act of
1990
Sec. 831. Water quality research, education, and coordination.
Sec. 832. Education program regarding handling of agricultural chemicals and
agricultural chemical containers.
Sec. 833. Program administration.
Sec. 834. National genetics resources program.
Sec. 835. National agricultural weather information system.
Sec. 836. Research regarding production, preparation, processing, handling, and
storage of agricultural products.
Sec. 837. Plant and animal pest and disease control program.
Sec. 838. Livestock product safety and inspection program.
Sec. 839. Plant genome mapping program.
Sec. 840. Specialized research programs.
Sec. 841. Agricultural telecommunications program.
Sec. 842. National centers for agricultural product quality research.
Sec. 843. Turkey research center authorization.
Sec. 844. Special grant to study constraints on agricultural trade.
Sec. 845. Pilot project to coordinate food and nutrition education programs.
Sec. 846. Assistive technology program for farmers with disabilities.
Sec. 847. Demonstration projects.
Sec. 848. National rural information center clearinghouse.
Sec. 849. Global climate change.
Sec. 850. Technical amendments.
Subtitle C—Miscellaneous Research Provisions
Sec. 861. Critical agricultural materials research.
Sec. 862. 1994 Institutions.
Sec. 863. Smith-Lever Act funding for 1890 land-grant colleges, including
Tuskegee University and the District of Columbia.
Sec. 864. Committee of nine.
Sec. 865. Agricultural research facilities.
Sec. 866. National competitive research initiative.
Sec. 867. Cotton crop reports.
Sec. 868. Rural development research and education.
Sec. 869. Human nutrition research.
Sec. 870. Dairy goat research program.
Sec. 871. Grants to upgrade 1890 land-grant college extension facilities.
Sec. 872. Stuttgart National Aquaculture Research Center.
Sec. 873. National aquaculture policy, planning, and development.
Sec. 874. Expansion of authorities related to the national arboretum.
Sec. 875. Study of agricultural research service.
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Sec. 876. Labeling of domestic and imported lamb and mutton.
Sec. 877. Sense of Senate.
TITLE IX—AGRICULTURAL PROMOTION
Subtitle A—Popcorn
Sec. 901. Short title.
Sec. 902. Findings and declaration of policy.
Sec. 903. Definitions.
Sec. 904. Issuance of orders.
Sec. 905. Required terms in orders.
Sec. 906. Referenda.
Sec. 907. Petition and review.
Sec. 908. Enforcement.
Sec. 909. Investigations and power to subpoena.
Sec. 910. Relation to other programs.
Sec. 911. Regulations.
Sec. 912. Authorization of appropriations.
Subtitle B—Canola and Rapeseed
Sec. 921. Short title.
Sec. 922. Findings and declaration of policy.
Sec. 923. Definitions.
Sec. 924. Issuance and amendment of orders.
Sec. 925. Required terms in orders.
Sec. 926. Assessments.
Sec. 927. Referenda.
Sec. 928. Petition and review.
Sec. 929. Enforcement.
Sec. 930. Investigations and power to subpoena.
Sec. 931. Suspension or termination of an order.
Sec. 932. Regulations.
Sec. 933. Authorization of appropriations.
Subtitle C—Kiwifruit
Sec. 941. Short title.
Sec. 942. Findings and purposes.
Sec. 943. Definitions.
Sec. 944. Issuance of orders.
Sec. 945. National Kiwifruit Board.
Sec. 946. Required terms in order.
Sec. 947. Permissive terms in order.
Sec. 948. Petition and review.
Sec. 949. Enforcement.
Sec. 950. Investigations and power to subpoena.
Sec. 951. Referenda.
Sec. 952. Suspension and termination of order by Secretary.
Sec. 953. Regulations.
Sec. 954. Authorization of appropriations.
Subtitle D—Commodity Promotion and Evaluation
Sec. 961. Commodity promotion and evaluation.
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TITLE I—AGRICULTURAL
MARKET TRANSITION PROGRAM
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Agricultural Market
Transition Act’’.
SEC. 102. DEFINITIONS.
In this title:
(1) CONSIDERED PLANTED.—The term ‘‘consid-
ered planted’’ means acreage that is considered plant-
ed under title V of the Agricultural Act of 1949 (7
U.S.C. 1461 et seq.) (as in effect prior to the suspen-
sion under section 110(b)(1)(J)).
(2) CONTRACT.—The term ‘‘contract’’ means a
production flexibility contract entered into under sec-
tion 103.
(3) CONTRACT
ACREAGE.—The term ‘‘contract
acreage’’ means 1 or more crop acreage bases estab-
lished for contract commodities under title V of the
Agricultural Act of 1949 (as in effect prior to the sus-
pension under section 110(b)(1)(J)) that would have
been in effect for the 1996 crop (but for the suspension
under section 110(b)(1)(J)).
(4) CONTRACT COMMODITY.—The term ‘‘contract
commodity’’ means wheat, corn, grain sorghum, bar-
ley, oats, upland cotton, and rice.
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(5) CONTRACT
PAYMENT.—The term ‘‘contract
payment’’ means a payment made under section 103
pursuant to a contract.
(6) CORN.—The term ‘‘corn’’ means field corn.
(7) DEPARTMENT.—The term ‘‘Department’’
means the United States Department of Agriculture.
(8) FARM PROGRAM PAYMENT YIELD.—The term
‘‘farm program payment yield’’ means the farm pro-
gram payment yield established for the 1995 crop of
a contract commodity under title V of the Agricul-
tural Act of 1949 (as in effect prior to the suspension
under section 110(b)(1)(J)).
(9) LOAN
COMMODITY.—The term ‘‘loan com-
modity’’ means each contract commodity, extra long
staple cotton, and oilseeds.
(10) OILSEED.—The term ‘‘oilseed’’ means a
crop of soybeans, sunflower seed, rapeseed, canola, saf-
flower, flaxseed, mustard seed, or, if designated by the
Secretary, other oilseeds.
(11) PERSON.—The term ‘‘person’’ means an in-
dividual, partnership, firm, joint-stock company, cor-
poration, association, trust, estate, or State agency.
(12) PRODUCER.—
(A) IN
GENERAL.—The term ‘‘producer’’
means a person who, as owner, landlord, tenant,
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or sharecropper, shares in the risk of producing
a crop, and is entitled to share in the crop avail-
able for marketing from the farm, or would have
shared had the crop been produced.
(B) HYBRID SEED.—The term ‘‘producer’’
includes a person growing hybrid seed under
contract. In determining the interest of a grower
of hybrid seed in a crop, the Secretary shall not
take into consideration the existence of a hybrid
seed contract.
(13) PROGRAM.—The term ‘‘program’’ means the
agricultural market transition program established
under this title.
(14) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(15) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, and
any other territory or possession of the United States.
(16) 
UNITED
STATES.—The 
term 
‘‘United
States’’, when used in a geographical sense, means all
of the States.
SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) CONTRACTS AUTHORIZED.—
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(1) OFFER AND TERMS.—Beginning as soon as
practicable after the date of the enactment of this
title, the Secretary shall offer to enter into a contract
with an eligible owner or operator described in para-
graph (2) on a farm containing eligible farmland.
Under the terms of a contract, the owner or operator
shall agree, in exchange for annual contract pay-
ments, to comply with—
(A) the conservation plan for the farm pre-
pared in accordance with section 1212 of the
Food Security Act of 1985 (16 U.S.C. 3812);
(B) wetland protection requirements appli-
cable to the farm under subtitle C of title XII of
the Act (16 U.S.C. 3821 et seq.); and
(C) the planting flexibility requirements of
subsection (j).
(2) ELIGIBLE
OWNERS
AND
OPERATORS
DE-
SCRIBED.—The following persons shall be considered
to be an owner or operator eligible to enter into a
contract:
(A) An owner of eligible farmland who as-
sumes all of the risk of producing a crop.
(B) An owner of eligible farmland who
shares in the risk of producing a crop.
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(C) An operator of eligible farmland with a
share-rent lease of the eligible farmland, regard-
less of the length of the lease, if the owner enters
into the same contract.
(D) An operator of eligible farmland who
cash rents the eligible farmland under a lease ex-
piring on or after September 30, 2002, in which
case the consent of the owner is not required.
(E) An operator of eligible farmland who
cash rents the eligible farmland under a lease ex-
piring before September 30, 2002, if the owner
consents to the contract.
(F) An owner of eligible farmland who cash
rents the eligible farmland and the lease term ex-
pires before September 30, 2002, but only if the
actual operator of the farm declines to enter into
a contract. In the case of an owner covered by
this subparagraph, contract payments shall not
begin under a contract until the fiscal year fol-
lowing the fiscal year in which the lease held by
the nonparticipating operator expires.
(G) An owner or operator described in a
preceding subparagraph regardless of whether the
owner or operator purchased catastrophic risk
protection for a fall-planted 1996 crop under sec-
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tion 508(b) of the Federal Crop Insurance Act (7
U.S.C. 1508(b)).
(3) TENANTS AND SHARECROPPERS.—In carry-
ing out this section, the Secretary shall provide ade-
quate safeguards to protect the interests of operators
who are tenants and sharecroppers.
(b) ELEMENTS.—
(1) TIME FOR CONTRACTING.—
(A) DEADLINE.—Except as provided in sub-
paragraph (B), the Secretary may not enter into
a contract after April 15, 1996.
(B) CONSERVATION RESERVE LANDS.—
(i) IN GENERAL.—At the beginning of
each fiscal year, the Secretary shall allow
an eligible owner or operator on a farm cov-
ered by a conservation reserve contract en-
tered into under section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) that
terminates after the date specified in sub-
paragraph (A) to enter into or expand a
production flexibility contract to cover the
contract acreage of the farm that was sub-
ject to the former conservation reserve con-
tract.
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(ii) 
AMOUNT.—Contract 
payments
made for contract acreage under this sub-
paragraph shall be made at the rate and
amount applicable to the annual contract
payment level for the applicable crop.
(2) DURATION OF CONTRACT.—
(A) BEGINNING
DATE.—A contract shall
begin with—
(i) the 1996 crop of a contract com-
modity; or
(ii) in the case of acreage that was sub-
ject to a conservation reserve contract de-
scribed in paragraph (1)(B), the date the
production flexibility contract was entered
into or expanded to cover the acreage.
(B) ENDING DATE.—A contract shall extend
through the 2002 crop.
(3) ESTIMATION OF CONTRACT PAYMENTS.—At
the time the Secretary enters into a contract, the Sec-
retary shall provide an estimate of the minimum con-
tract payments anticipated to be made during at
least the first fiscal year for which contract payments
will be made.
(c) ELIGIBLE FARMLAND DESCRIBED.—Land shall be
considered to be farmland eligible for coverage under a con-
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tract only if the land has contract acreage attributable to
the land and—
(1) for at least 1 of the 1991 through 1995 crops,
at least a portion of the land was enrolled in the acre-
age reduction program authorized for a crop of a con-
tract commodity under section 101B, 103B, 105B, or
107B of the Agricultural Act of 1949 (as in effect
prior to the amendment made by section 110(b)(2)) or
was considered planted, including land on a farm
that is owned or leased by a beginning farmer (as de-
termined by the Secretary) that the Secretary deter-
mines is necessary to establish a fair and equitable
crop acreage base;
(2) was subject to a conservation reserve contract
under section 1231 of the Food Security Act of 1985
(16 U.S.C. 3831) whose term expired, or was volun-
tarily terminated, on or after January 1, 1995; or
(3) is released from coverage under a conserva-
tion reserve contract by the Secretary during the pe-
riod beginning on January 1, 1995, and ending on
the date specified in subsection (b)(1)(A).
(d) TIME FOR PAYMENT.—
(1) IN GENERAL.—An annual contract payment
shall be made not later than September 30 of each of
fiscal years 1996 through 2002.
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(2) ADVANCE PAYMENTS.—
(A) FISCAL YEAR 1996.—At the option of the
owner or operator, 50 percent of the contract
payment for fiscal year 1996 shall be made not
later than June 15, 1996.
(B) SUBSEQUENT
FISCAL
YEARS.—At the
option of the owner or operator for fiscal year
1997 and each subsequent fiscal year, 50 percent
of the annual contract payment shall be made on
December 15.
(e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS
FOR EACH FISCAL YEAR.—
(1) IN GENERAL.—The Secretary shall, to the
maximum extent practicable, expend on a fiscal year
basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
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(2) ALLOCATION.—The amount made available
for a fiscal year under paragraph (1) shall be allo-
cated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) ADJUSTMENT.—The Secretary shall adjust
the amounts allocated for each contract commodity
under paragraph (2) for a particular fiscal year by—
(A) subtracting an amount equal to the
amount, if any, necessary to satisfy payment re-
quirements under sections 103B, 105B, and
107B of the Agricultural Act of 1949 (as in effect
prior to the amendment made by section
110(b)(2)) for the 1994 and 1995 crops of the
commodity;
(B) adding an amount equal to the sum of
all repayments of deficiency payments received
under section 114(a)(2) of the Agricultural Act
of 1949 for the commodity;
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(C) to the maximum extent practicable,
adding an amount equal to the sum of all con-
tract payments withheld by the Secretary, at the
request of an owner or operator subject to a con-
tract, as an offset against repayments of defi-
ciency payments otherwise required under sec-
tion 114(a)(2) of the Act (as so in effect) for the
commodity; and
(D) adding an amount equal to the sum of
all refunds of contract payments received during
the preceding fiscal year under subsection (h) for
the commodity.
(4) ADDITIONAL RICE ALLOCATION.—In addition
to the allocations provided under paragraphs (1), (2),
and (3), the amounts made available for rice contract
payments shall be increased by $17,000,000 for each
of fiscal years 1997 through 2002.
(f) DETERMINATION OF CONTRACT PAYMENTS.—
(1) INDIVIDUAL
PAYMENT
QUANTITY
OF
CON-
TRACT COMMODITIES.—For each contract, the pay-
ment quantity of a contract commodity for each fiscal
year shall be equal to the product of—
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
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(2) ANNUAL PAYMENT QUANTITY OF CONTRACT
COMMODITIES.—The payment quantity of each con-
tract commodity covered by all contracts for each fis-
cal year shall equal the sum of the amounts calculated
under paragraph (1) for each individual contract.
(3) ANNUAL PAYMENT RATE.—The payment rate
for a contract commodity for each fiscal year shall be
equal to—
(A) the amount made available under sub-
section (e) for the contract commodity for the fis-
cal year; divided by
(B) the amount determined under para-
graph (2) for the fiscal year.
(4) ANNUAL PAYMENT AMOUNT.—The amount to
be paid under a contract in effect for each fiscal year
with respect to a contract commodity shall be equal
to the product of—
(A) the payment quantity determined under
paragraph (1) with respect to the contract; and
(B) the payment rate in effect under para-
graph (3).
(5) ASSIGNMENT OF CONTRACT PAYMENTS.—The
provisions of section 8(g) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(g)) (relating
to assignment of payments) shall apply to contract
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payments under this subsection. The owner or opera-
tor making the assignment, or the assignee, shall pro-
vide the Secretary with notice, in such manner as the
Secretary may require in the contract, of any assign-
ment made under this paragraph.
(6) SHARING
OF
CONTRACT
PAYMENTS.—The
Secretary shall provide for the sharing of contract
payments among the owners and operators subject to
the contract on a fair and equitable basis.
(g) PAYMENT LIMITATION.—The total amount of con-
tract payments made to a person under a contract during
any fiscal year may not exceed the payment limitations es-
tablished under sections 1001 through 1001C of the Food
Security Act of 1985 (7 U.S.C. 1308 through 1308–3).
(h) EFFECT OF VIOLATION.—
(1) TERMINATION OF CONTRACT.—Except as pro-
vided in paragraph (2), if an owner or operator sub-
ject to a contract violates the conservation plan for
the farm containing eligible farmland under the con-
tract, wetland protection requirements applicable to
the farm, or the planting flexibility requirements of
subsection (j), the Secretary shall terminate the con-
tract with respect to the owner or operator on each
farm in which the owner or operator has an interest.
On the termination, the owner or operator shall for-
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feit all rights to receive future contract payments on
each farm in which the owner or operator has an in-
terest and shall refund to the Secretary all contract
payments received by the owner or operator during
the period of the violation, together with interest on
the contract payments as determined by the Sec-
retary.
(2) REFUND OR ADJUSTMENT.—If the Secretary
determines that a violation does not warrant termi-
nation of the contract under paragraph (1), the Sec-
retary may require the owner or operator subject to
the contract—
(A) to refund to the Secretary that part of
the contract payments received by the owner or
operator during the period of the violation, to-
gether with interest on the contract payments as
determined by the Secretary; or
(B) to accept a reduction in the amount of
future contract payments that is proportionate
to the severity of the violation, as determined by
the Secretary.
(3) FORECLOSURE.—An owner or operator sub-
ject to a contract may not be required to make repay-
ments to the Secretary of amounts received under the
contract if the contract acreage has been foreclosed on
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and the Secretary determines that forgiving the re-
payments is appropriate in order to provide fair and
equitable treatment. This paragraph shall not void
the responsibilities of such an owner or operator
under the contract if the owner or operator continues
or resumes operation, or control, of the contract acre-
age. On the resumption of operation or control over
the contract acreage by the owner or operator, the
provisions of the contract in effect on the date of the
foreclosure shall apply.
(4) REVIEW.—A determination of the Secretary
under this subsection shall be considered to be an ad-
verse decision for purposes of the availability of ad-
ministrative review of the determination.
(i) TRANSFER OF INTEREST IN LANDS SUBJECT TO
CONTRACT.—
(1) EFFECT OF TRANSFER.—Except as provided
in paragraph (2), the transfer by an owner or opera-
tor subject to a contract of the right and interest of
the owner or operator in the contract acreage shall re-
sult in the termination of the contract with respect to
the acreage, effective on the date of the transfer, unless
the transferee of the acreage agrees with the Secretary
to assume all obligations of the contract. At the re-
quest of the transferee, the Secretary may modify the
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contract if the modifications are consistent with the
objectives of this section as determined by the Sec-
retary.
(2) EXCEPTION.—If an owner or operator who is
entitled to a contract payment dies, becomes incom-
petent, or is otherwise unable to receive the contract
payment, the Secretary shall make the payment, in
accordance with regulations prescribed by the Sec-
retary.
(j) PLANTING FLEXIBILITY.—
(1) PERMITTED CROPS.—Subject to paragraph
(2), any commodity or crop may be planted on con-
tract acreage on a farm.
(2) LIMITATIONS.—
(A) HAYING AND GRAZING.—
(i) TIME
LIMITATIONS.—Haying and
grazing on land exceeding 15 percent of the
contract acreage on a farm as provided in
clause (iii) shall be permitted, except during
any consecutive 5-month period between
April 1 and October 31 that is determined
by the State committee established under
section 8(b) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b))
for a State. In the case of a natural disas-
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ter, the Secretary may permit unlimited
haying and grazing on the contract acreage
of a farm.
(ii) CONTRACT
COMMODITIES.—Con-
tract acreage planted to a contract commod-
ity during the crop year may be hayed or
grazed without limitation.
(iii) HAYING AND GRAZING LIMITATION
ON PORTION OF CONTRACT ACREAGE.—Un-
limited haying and grazing shall be per-
mitted on not more than 15 percent of the
contract acreage on a farm.
(B) ALFALFA.—Alfalfa may be planted for
harvest without limitation on the contract acre-
age on a farm, except that each contract acre
that is planted for harvest to alfalfa in excess of
15 percent of the total contract acreage on a
farm shall be ineligible for contract payments.
(C) FRUITS AND VEGETABLES.—
(i) IN
GENERAL.—The planting for
harvest of fruits and vegetables shall be pro-
hibited on contract acreage, unless there is
a history of double cropping of a contract
commodity and fruits and vegetables.
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(ii) UNRESTRICTED
VEGETABLES.—
Lentils, mung beans, and dry peas may be
planted without limitation on contract acre-
age.
(k) CONSERVATION FARM OPTION.—
(1) IN GENERAL.—The Secretary shall offer eligi-
ble owners and operators with contract acreage under
this title on a farm who also have entered into a con-
servation reserve program contract under subchapter
B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (7 U.S.C. 3831 et seq.), the op-
tion of entering into a conservation farm option con-
tract for a period of 10 years, as an alternative to the
market transition payment contract.
(2) TERMS.—Under the conservation farm op-
tion contract—
(A) the Secretary shall provide eligible own-
ers and operators with payments that reflect the
Secretary’s estimate of the payments and benefits
the eligible owner or operator is expected to re-
ceive during the 10-year period under—
(i) conservation cost-share programs
administered by the Secretary;
(ii) conservation reserve program rent-
al and cost-share payments;
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(iii) market transition payments; and
(iv) loan programs for contract com-
modities, oilseeds, and extra long staple cot-
ton; and
(B) the eligible owner and operator shall—
(i) forego eligibility to participate in
the conservation reserve program, conserva-
tion cost-share program payments, and
market transition contracts; and
(ii) comply with a conservation plan
for the farm approved by the Secretary that
is consistent with the State conservation
farm option plan established under para-
graph (3).
(3) STATE CONSERVATION FARM OPTION PLAN.—
In consultation with the State Technical Committee
established under section 1261 of the Food Security
Act of 1985 (16 U.S.C. 3801), the Secretary shall es-
tablish a plan for each State that is designed to—
(A) protect wildlife habitat;
(B) improve water quality; and
(C) reduce soil erosion.
SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS
AND LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY OF NONRECOURSE LOANS.—
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(1) AVAILABILITY.—For each of the 1996 through
2002 crops of each loan commodity, the Secretary
shall make available to producers on a farm
nonrecourse marketing assistance loans for loan com-
modities produced on the farm. The loans shall be
made under terms and conditions that are prescribed
by the Secretary and at the loan rate established
under subsection (b) for the loan commodity.
(2) ELIGIBLE PRODUCTION.—The following pro-
duction shall be eligible for a marketing assistance
loan under this section:
(A) In the case of a marketing assistance
loan for a contract commodity, any production
by a producer who has entered into a production
flexibility contract.
(B) In the case of a marketing assistance
loan for extra long staple cotton and oilseeds,
any production.
(b) LOAN RATES.—
(1) WHEAT.—
(A) LOAN RATE.—Subject to subparagraph
(B), the loan rate for a marketing assistance
loan for wheat shall be—
(i) not less than 85 percent of the sim-
ple average price received by producers of
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wheat, as determined by the Secretary, dur-
ing the marketing years for the immediately
preceding 5 crops of wheat, excluding the
year in which the average price was the
highest and the year in which the average
price was the lowest in the period; but
(ii) not more than $2.58 per bushel.
(B) STOCKS TO USE RATIO ADJUSTMENT.—
If the Secretary estimates for any marketing
year that the ratio of ending stocks of wheat to
total use for the marketing year will be—
(i) equal to or greater than 30 percent,
the Secretary may reduce the loan rate for
wheat for the corresponding crop by an
amount not to exceed 10 percent in any
year;
(ii) less than 30 percent but not less
than 15 percent, the Secretary may reduce
the loan rate for wheat for the correspond-
ing crop by an amount not to exceed 5 per-
cent in any year; or
(iii) less than 15 percent, the Secretary
may not reduce the loan rate for wheat for
the corresponding crop.
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(C) NO EFFECT ON FUTURE YEARS.—Any
reduction in the loan rate for wheat under sub-
paragraph (B) shall not be considered in deter-
mining the loan rate for wheat for subsequent
years.
(2) FEED GRAINS.—
(A) LOAN RATE FOR CORN.—Subject to sub-
paragraph (B), the loan rate for a marketing as-
sistance loan for corn shall be—
(i) not less than 85 percent of the sim-
ple average price received by producers of
corn, as determined by the Secretary, dur-
ing the marketing years for the immediately
preceding 5 crops of corn, excluding the
year in which the average price was the
highest and the year in which the average
price was the lowest in the period; but
(ii) not more than $1.89 per bushel.
(B) STOCKS TO USE RATIO ADJUSTMENT.—
If the Secretary estimates for any marketing
year that the ratio of ending stocks of corn to
total use for the marketing year will be—
(i) equal to or greater than 25 percent,
the Secretary may reduce the loan rate for
corn for the corresponding crop by an
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amount not to exceed 10 percent in any
year;
(ii) less than 25 percent but not less
than 12.5 percent, the Secretary may reduce
the loan rate for corn for the corresponding
crop by an amount not to exceed 5 percent
in any year; or
(iii) less than 12.5 percent the Sec-
retary may not reduce the loan rate for corn
for the corresponding crop.
(C) NO EFFECT ON FUTURE YEARS.—Any
reduction in the loan rate for corn under sub-
paragraph (B) shall not be considered in deter-
mining the loan rate for corn for subsequent
years.
(D) OTHER FEED GRAINS.—The loan rate
for a marketing assistance loan for grain sor-
ghum, barley, and oats, respectively, shall be es-
tablished at such level as the Secretary deter-
mines is fair and reasonable in relation to the
rate that loans are made available for corn, tak-
ing into consideration the feeding value of the
commodity in relation to corn.
(3) UPLAND COTTON.—
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(A) LOAN RATE.—Subject to subparagraph
(B), the loan rate for a marketing assistance
loan for upland cotton shall be established by the
Secretary at such loan rate, per pound, as will
reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations
in the United States a rate that is not less than
the smaller of—
(i) 85 percent of the average price
(weighted by market and month) of the base
quality of cotton as quoted in the designated
United States spot markets during 3 years
of the 5-year period ending July 31 in the
year in which the loan rate is announced,
excluding the year in which the average
price was the highest and the year in which
the average price was the lowest in the pe-
riod; or
(ii) 90 percent of the average, for the
15-week period beginning July 1 of the year
in which the loan rate is announced, of the
5 lowest-priced growths of the growths
quoted for Middling 13⁄32-inch cotton C.I.F.
Northern Europe (adjusted downward by
the average difference during the period
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April 15 through October 15 of the year in
which the loan is announced between the av-
erage Northern European price quotation of
such quality of cotton and the market
quotations in the designated United States
spot markets for the base quality of upland
cotton), as determined by the Secretary.
(B) LIMITATIONS.—The loan rate for a
marketing assistance loan for upland cotton shall
not be less than $0.50 per pound or more than
$0.5192 per pound.
(4) EXTRA
LONG
STAPLE
COTTON.—The loan
rate for a marketing assistance loan for extra long
staple cotton shall be—
(A) not less than 85 percent of the simple
average price received by producers of extra long
staple cotton, as determined by the Secretary,
during 3 years of the 5 previous marketing
years, excluding the year in which the average
price was the highest and the year in which the
average price was the lowest in the period; but
(B) not more than $0.7965 per pound.
(5) RICE.—The loan rate for a marketing assist-
ance loan for rice shall be $6.50 per hundredweight.
(6) OILSEEDS.—
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(A) SOYBEANS.—The loan rate for a mar-
keting assistance loan for soybeans shall be—
(i) not less than 85 percent of the sim-
ple average price received by producers of
soybeans, as determined by the Secretary,
during the marketing years for the imme-
diately preceding 5 crops of soybeans, ex-
cluding the year in which the average price
was the highest and the year in which the
average price was the lowest in the period;
but
(ii) not less than $4.92 or more than
$5.26 per bushel.
(B) SUNFLOWER SEED, CANOLA, RAPESEED,
SAFFLOWER, MUSTARD SEED, AND FLAXSEED.—
The loan rate for a marketing assistance loan for
sunflower seed, canola, rapeseed, safflower, mus-
tard seed, and flaxseed, individually, shall be—
(i) not less than 85 percent of the sim-
ple average price received by producers of
sunflower seed, individually, as determined
by the Secretary, during the marketing
years for the immediately preceding 5 crops
of sunflower seed, individually, excluding
the year in which the average price was the
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highest and the year in which the average
price was the lowest in the period; but
(ii) not less than $0.087 or more than
$0.093 per pound.
(C) OTHER OILSEEDS.—The loan rates for
a marketing assistance loan for other oilseeds
shall be established at such level as the Secretary
determines is fair and reasonable in relation to
the loan rate available for soybeans, except in no
event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for
soybeans on a per-pound basis for the same crop.
(c) TERM OF LOAN.—In the case of each loan commod-
ity (other than upland cotton or extra long staple cotton),
a marketing assistance loan under subsection (a) shall have
a term of 9 months beginning on the first day of the first
month after the month in which the loan is made. A market-
ing assistance loan for upland cotton or extra long staple
cotton shall have a term of 10 months beginning on the first
day of the first month after the month in which the loan
is made. The Secretary may not extend the term of a mar-
keting assistance loan for any loan commodity.
(d) REPAYMENT.—
(1) REPAYMENT RATES FOR WHEAT AND FEED
GRAINS.—The Secretary shall permit a producer to
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repay a marketing assistance loan under subsection
(a) for wheat, corn, grain sorghum, barley, and oats
at a level that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodities by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodities; and
(D) allow the commodities produced in the
United States to be marketed freely and competi-
tively, both domestically and internationally.
(2) REPAYMENT
RATES
FOR
UPLAND
COTTON,
OILSEEDS, AND
RICE.—The Secretary shall permit
producers to repay a marketing assistance loan under
subsection (a) for upland cotton, oilseeds, and rice at
a level that is the lesser of—
(A) the loan rate established for upland cot-
ton, oilseeds, and rice, respectively, under sub-
section (b); or
(B) the prevailing world market price for
upland cotton, oilseeds, and rice, respectively
(adjusted to United States quality and location),
as determined by the Secretary.
(3) REPAYMENT RATES FOR EXTRA LONG STAPLE
COTTON.—Repayment of a marketing assistance loan
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for extra long staple cotton shall be at the loan rate
established for the commodity under subsection (b),
plus interest (as determined by the Secretary).
(4) PREVAILING
WORLD
MARKET
PRICE.—For
purposes of paragraph (2)(B) and subsection (f), the
Secretary shall prescribe by regulation—
(A) a formula to determine the prevailing
world market price for each loan commodity, ad-
justed to United States quality and location; and
(B) a mechanism by which the Secretary
shall announce periodically the prevailing world
market price for each loan commodity.
(5) ADJUSTMENT OF PREVAILING WORLD MAR-
KET PRICE FOR UPLAND COTTON.—
(A) IN GENERAL.—During the period end-
ing July 31, 2003, the prevailing world market
price for upland cotton (adjusted to United
States quality and location) established under
paragraph (4) shall be further adjusted if—
(i) the adjusted prevailing world mar-
ket price is less than 115 percent of the loan
rate for upland cotton established under
subsection (b), as determined by the Sec-
retary; and
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(C) LIMITATION
ON
FURTHER
ADJUST-
MENT.—The adjustment under subparagraph (B)
may not exceed the difference between—
(i) the Friday through Thursday aver-
age price for the lowest-priced United States
growth as quoted for Middling 13⁄32-inch
cotton delivered C.I.F. Northern Europe;
and
(ii) the Northern Europe price.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—Except as provided in para-
graph (4), the Secretary may make loan deficiency
payments available to producers who, although eligi-
ble to obtain a marketing assistance loan under sub-
section (a) with respect to a loan commodity, agree
to forgo obtaining the loan for the commodity in re-
turn for payments under this subsection.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by multiply-
ing—
(A) the loan payment rate determined
under paragraph (3) for the loan commodity; by
(B) the quantity of the loan commodity that
the producers on a farm are eligible to place
under loan but for which the producers forgo ob-
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taining the loan in return for payments under
this subsection.
(3) LOAN PAYMENT RATE.—For purposes of this
subsection, the loan payment rate shall be the amount
by which—
(A) the loan rate established under sub-
section (b) for the loan commodity; exceeds
(B) the rate at which a loan for the com-
modity may be repaid under subsection (d).
(4) EXCEPTION FOR EXTRA LONG STAPLE COT-
TON.—This subsection shall not apply with respect to
extra long staple cotton.
(f) SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON.—
(1) COTTON USER MARKETING CERTIFICATES.—
(A) ISSUANCE.—Subject to subparagraph
(D), during the period ending July 31, 2003, the
Secretary shall issue marketing certificates or
cash payments to domestic users and exporters
for documented purchases by domestic users and
sales for export by exporters made in the week
following a consecutive 4-week period in which—
(i) the Friday through Thursday aver-
age price quotation for the lowest-priced
United States growth, as quoted for Mid-
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dling (M) 13⁄32-inch cotton, delivered C.I.F.
Northern Europe exceeds the Northern Eu-
rope price by more than 1.25 cents per
pound; and
(ii) the prevailing world market price
for upland cotton (adjusted to United States
quality and location) does not exceed 130
percent of the loan rate for upland cotton
established under subsection (b).
(B) VALUE
OF
CERTIFICATES
OR
PAY-
MENTS.—The value of the marketing certificates
or cash payments shall be based on the amount
of the difference (reduced by 1.25 cents per
pound) in the prices during the 4th week of the
consecutive 4-week period multiplied by the
quantity of upland cotton included in the docu-
mented sales.
(C) ADMINISTRATION OF MARKETING CER-
TIFICATES.—
(i) REDEMPTION, MARKETING, OR EX-
CHANGE.—The Secretary shall establish
procedures for redeeming marketing certifi-
cates for cash or marketing or exchange of
the certificates for agricultural commodities
owned by the Commodity Credit Corpora-
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tion in such manner, and at such price lev-
els, as the Secretary determines will best ef-
fectuate the purposes of cotton user market-
ing certificates. Any price restrictions that
would otherwise apply to the disposition of
agricultural commodities by the Commodity
Credit Corporation shall not apply to the
redemption of certificates under this para-
graph.
(ii) DESIGNATION
OF
COMMODITIES
AND PRODUCTS.—To the extent practicable,
the Secretary shall permit owners of certifi-
cates to designate the commodities and
products, including storage sites, the owners
would prefer to receive in exchange for cer-
tificates. If any certificate is not presented
for redemption, marketing, or exchange
within a reasonable number of days after
the issuance of the certificate (as determined
by the Secretary), reasonable costs of storage
and other carrying charges, as determined
by the Secretary, shall be deducted from the
value of the certificate for the period begin-
ning after the reasonable number of days
and ending with the date of the presentation
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of the certificate to the Commodity Credit
Corporation.
(iii) TRANSFERS.—Marketing certifi-
cates issued to domestic users and exporters
of upland cotton may be transferred to other
persons in accordance with regulations is-
sued by the Secretary.
(D) EXCEPTION.—The Secretary shall not
issue marketing certificates or cash payments
under subparagraph (A) if, for the immediately
preceding consecutive 10-week period, the Friday
through Thursday average price quotation for the
lowest priced United States growth, as quoted for
Middling (M) 13⁄32-inch cotton, delivered C.I.F.
Northern Europe, adjusted for the value of any
certificate issued under this paragraph, exceeds
the Northern Europe price by more than 1.25
cents per pound.
(E) LIMITATION ON EXPENDITURES.—Total
expenditures under this paragraph shall not ex-
ceed $701,000,000 during fiscal years 1996
through 2002.
(2) SPECIAL IMPORT QUOTA.—
(A) ESTABLISHMENT.—The President shall
carry out an import quota program that pro-
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vides that, during the period ending July 31,
2003, whenever the Secretary determines and an-
nounces that for any consecutive 10-week period,
the Friday through Thursday average price
quotation for the lowest-priced United States
growth, as quoted for Middling (M) 13⁄32-inch
cotton, delivered C.I.F. Northern Europe, ad-
justed for the value of any certificates issued
under paragraph (1), exceeds the Northern Eu-
rope price by more than 1.25 cents per pound,
there shall immediately be in effect a special im-
port quota.
(B) QUANTITY.—The quota shall be equal to
1 week’s consumption of upland cotton by domes-
tic mills at the seasonally adjusted average rate
of the most recent 3 months for which data are
available.
(C) APPLICATION.—The quota shall apply
to upland cotton purchased not later than 90
days after the date of the Secretary’s announce-
ment under subparagraph (A) and entered into
the United States not later than 180 days after
the date.
(D) OVERLAP.—A special quota period may
be established that overlaps any existing quota
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period if required by subparagraph (A), except
that a special quota period may not be estab-
lished under this paragraph if a quota period
has been established under subsection (g).
(E) PREFERENTIAL TARIFF TREATMENT.—
The quantity under a special import quota shall
be considered to be an in-quota quantity for pur-
poses of—
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(F) DEFINITION.—In this paragraph, the
term ‘‘special import quota’’ means a quantity of
imports that is not subject to the over-quota tar-
iff rate of a tariff-rate quota.
(g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND
COTTON.—
(1) IN GENERAL.—The President shall carry out
an import quota program that provides that whenever
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the Secretary determines and announces that the av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot
markets for a month exceeded 130 percent of the aver-
age price of such quality of cotton in the markets for
the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect
a limited global import quota subject to the following
conditions:
(A) QUANTITY.—The quantity of the quota
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months
for which data are available.
(B) QUANTITY IF PRIOR QUOTA.—If a quota
has been established under this subsection during
the preceding 12 months, the quantity of the
quota next established under this subsection shall
be the smaller of 21 days of domestic mill con-
sumption calculated under subparagraph (A) or
the quantity required to increase the supply to
130 percent of the demand.
(C) PREFERENTIAL TARIFF TREATMENT.—
The quantity under a limited global import
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quota shall be considered to be an in-quota quan-
tity for purposes of—
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(D) DEFINITIONS.—In this subsection:
(i) 
SUPPLY.—The 
term 
‘‘supply’’
means, using the latest official data of the
Bureau of the Census, the Department of
Agriculture, and the Department of the
Treasury—
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current
crop; and
(III) imports to the latest date
available during the marketing year.
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(ii) DEMAND.—The term ‘‘demand’’
means—
(I) the average seasonally adjusted
annual rate of domestic mill consump-
tion in the most recent 3 months for
which data are available; and
(II) the larger of—
(aa) average exports of up-
land cotton during the preceding
6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is estab-
lished.
(iii) 
LIMITED
GLOBAL
IMPORT
QUOTA.—The term ‘‘limited global import
quota’’ means a quantity of imports that is
not subject to the over-quota tariff rate of a
tariff-rate quota.
(E) QUOTA ENTRY PERIOD.—When a quota
is established under this subsection, cotton may
be entered under the quota during the 90-day pe-
riod beginning on the date the quota is estab-
lished by the Secretary.
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(2) NO OVERLAP.—Notwithstanding paragraph
(1), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (f)(2).
(h) SOURCE OF LOANS.—
(1) IN GENERAL.—The Secretary shall provide
the loans authorized by this section through the Com-
modity Credit Corporation and other means available
to the Secretary.
(2) PROCESSORS.—Whenever any loan or sur-
plus removal operation for any agricultural commod-
ity is carried out through purchases from or loans or
payments to processors, the Secretary shall, to the ex-
tent practicable, obtain from the processors such as-
surances as the Secretary considers adequate that the
producers of the commodity have received or will re-
ceive maximum benefits from the loan or surplus re-
moval operation.
(i) ADJUSTMENTS OF LOANS.—
(1) IN GENERAL.—The Secretary may make ap-
propriate adjustments in the loan levels for any com-
modity for differences in grade, type, quality, loca-
tion, and other factors.
(2) LOAN LEVEL.—The adjustments shall, to the
maximum extent practicable, be made in such man-
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ner that the average loan level for the commodity will,
on the basis of the anticipated incidence of the factors,
be equal to the level of support determined as pro-
vided in this section.
(j) PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), no producer shall be personally liable for
any deficiency arising from the sale of the collateral
securing any nonrecourse loan made under this sec-
tion unless the loan was obtained through a fraudu-
lent representation by the producer.
(2) LIMITATIONS.—Paragraph (1) shall not pre-
vent the Commodity Credit Corporation or the Sec-
retary from requiring a producer to assume liability
for—
(A) a deficiency in the grade, quality, or
quantity of a commodity stored on a farm or de-
livered by the producer;
(B) a failure to properly care for and pre-
serve a commodity; or
(C) a failure or refusal to deliver a com-
modity in accordance with a program estab-
lished under this section.
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(3) ACQUISITION
OF
COLLATERAL.—The Sec-
retary may include in a contract for a nonrecourse
loan made under this section a provision that permits
the Commodity Credit Corporation, on and after the
maturity of the loan or any extension of the loan, to
acquire title to the unredeemed collateral without obli-
gation to pay for any market value that the collateral
may have in excess of the loan indebtedness.
(4) SUGARCANE AND SUGAR BEETS.—A security
interest obtained by the Commodity Credit Corpora-
tion as a result of the execution of a security agree-
ment by the processor of sugarcane or sugar beets
shall be superior to all statutory and common law
liens on raw cane sugar and refined beet sugar in
favor of the producers of sugarcane and sugar beets
and all prior recorded and unrecorded liens on the
crops of sugarcane and sugar beets from which the
sugar was derived.
(k) COMMODITY CREDIT CORPORATION SALES PRICE
RESTRICTIONS.—
(1) IN GENERAL.—The Commodity Credit Cor-
poration may sell any commodity owned or controlled
by the Corporation at any price that the Secretary
determines will maximize returns to the Corporation.
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(2) NONAPPLICATION OF SALES PRICE RESTRIC-
TIONS.—Paragraph (1) shall not apply to—
(A) a sale for a new or byproduct use;
(B) a sale of peanuts or oilseeds for the ex-
traction of oil;
(C) a sale for seed or feed if the sale will
not substantially impair any loan program;
(D) a sale of a commodity that has substan-
tially deteriorated in quality or as to which
there is a danger of loss or waste through deterio-
ration or spoilage;
(E) a sale for the purpose of establishing a
claim arising out of a contract or against a per-
son who has committed fraud, misrepresentation,
or other wrongful act with respect to the com-
modity;
(F) a sale for export, as determined by the
Corporation; and
(G) a sale for other than a primary use.
(3) PRESIDENTIAL DISASTER AREAS.—
(A) IN
GENERAL.—Notwithstanding para-
graph (1), on such terms and conditions as the
Secretary may consider in the public interest,
the Corporation may make available any com-
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modity or product owned or controlled by the
Corporation for use in relieving distress—
(i) in any area in the United States
(including the Virgin Islands) declared by
the President to be an acute distress area
because of unemployment or other economic
cause, if the President finds that the use
will not displace or interfere with normal
marketing of agricultural commodities; and
(ii) in connection with any major dis-
aster determined by the President to war-
rant assistance by the Federal Government
under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C.
5121 et seq.).
(B) COSTS.—Except on a reimbursable
basis, the Corporation shall not bear any costs in
connection with making a commodity available
under subparagraph (A) beyond the cost of the
commodity to the Corporation incurred in—
(i) the storage of the commodity; and
(ii) the handling and transportation
costs in making delivery of the commodity
to designated agencies at 1 or more central
locations in each State or other area.
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(4) EFFICIENT
OPERATIONS.—Paragraph (1)
shall not apply to the sale of a commodity the dis-
position of which is desirable in the interest of the ef-
fective and efficient conduct of the operations of the
Corporation because of the small quantity of the com-
modity involved, or because of the age, location, or
questionable continued storability of the commodity.
SEC. 105. PAYMENT LIMITATIONS.
(a) IN GENERAL.—Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended by striking para-
graphs (1) through (4) and inserting the following:
‘‘(1) LIMITATION ON PAYMENTS UNDER PRODUC-
TION FLEXIBILITY CONTRACTS.—The total amount of
contract payments made under section 103 of the Ag-
ricultural Market Transition Act to a person under 1
or more production flexibility contracts during any
fiscal year may not exceed $40,000.
‘‘(2) LIMITATION
ON
MARKETING
LOAN
GAINS
AND LOAN DEFICIENCY PAYMENTS.—
‘‘(A) LIMITATION.—The total amount of
payments specified in subparagraph (B) that a
person shall be entitled to receive under section
104 of the Agricultural Market Transition Act
for contract commodities and oilseeds during
any crop year may not exceed $75,000.
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‘‘(B) DESCRIPTION
OF
PAYMENTS.—The
payments referred to in subparagraph (A) are
the following:
‘‘(i) Any gain realized by a producer
from repaying a marketing assistance loan
for a crop of any loan commodity at a
lower level than the original loan rate estab-
lished for the commodity under section
104(b) of the Act.
‘‘(ii) Any loan deficiency payment re-
ceived for a loan commodity under section
104(e) of the Act.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) (as amended by subsection (a))
is amended—
(A) by redesignating paragraphs (5), (6),
and (7) as paragraphs (3), (4), and (5), respec-
tively; and
(B) in the second sentence of paragraph
(3)(A) (as so redesignated), by striking ‘‘para-
graphs (6) and (7)’’ and inserting ‘‘paragraphs
(4) and (5)’’.
(2) Section 1305(d) of the Agricultural Rec-
onciliation Act of 1987 (Public Law 100–203; 7
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U.S.C. 1308 note) is amended by striking ‘‘para-
graphs (5) through (7) of section 1001, as amended by
this subtitle,’’ and inserting ‘‘paragraphs (3) through
(5) of section 1001,’’.
(3) Section 1001A of the Food Security Act of
1985 (7 U.S.C. 1308–1(a)(1)) is amended—
(A) in the first sentence of subsection
(a)(1)—
(i) by striking ‘‘section 1001(5)(B)(i)’’
and inserting ‘‘section 1001(3)(B)(i)’’;
(ii) by striking ‘‘under the Agricul-
tural Act of 1949 (7 U.S.C. 1421 et seq.)’’;
and
(iii) 
by 
striking 
‘‘section
1001(5)(B)(i)(II)’’ and inserting ‘‘section
1001(3)(B)(i)(II)’’; and
(B) in subsection (b)—
(i) in paragraph (1)—
(I) by striking ‘‘under the Agri-
cultural Act of 1949’’; and
(II) 
by 
striking 
‘‘section
1001(5)(B)(i)’’ and inserting ‘‘section
1001(3)(B)(i)’’; and
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(ii) in paragraph (2)(B), by striking
‘‘section 1001(5)(B)(i)(II)’’ and inserting
‘‘section 1001(3)(B)(i)(II)’’.
(4) Section 1001C(a) of the Food Security Act of
1985 (7 U.S.C. 1308–3(a)) is amended—
(A) by striking ‘‘For each of the 1991
through 1997 crops, any’’ and inserting ‘‘Any’’;
(B) by striking ‘‘price support program
loans, payments, or benefits made available
under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.),’’ and inserting ‘‘loans or payments
made available under the Agricultural Market
Transition Act’’; and
(C) by striking ‘‘during the 1989 through
1997 crop years’’.
SEC. 106. PEANUT PROGRAM.
(a) QUOTA PEANUTS.—
(1) AVAILABILITY
OF
LOANS.—The Secretary
shall make nonrecourse loans available to producers of
quota peanuts.
(2) LOAN
RATE.—The national average quota
loan rate for quota peanuts shall be $610 per ton.
(3) INSPECTION, HANDLING, OR STORAGE.—The
loan amount may not be reduced by the Secretary by
any deductions for inspection, handling, or storage.
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(4) LOCATION AND OTHER FACTORS.—The Sec-
retary may make adjustments in the loan rate for
quota peanuts for location of peanuts and such other
factors as are authorized by section 104(i)(1).
(b) ADDITIONAL PEANUTS.—
(1) IN
GENERAL.—The Secretary shall make
nonrecourse loans available to producers of additional
peanuts at such rates as the Secretary finds appro-
priate, taking into consideration the demand for pea-
nut oil and peanut meal, expected prices of other veg-
etable oils and protein meals, and the demand for
peanuts in foreign markets.
(2) ANNOUNCEMENT.—The Secretary shall an-
nounce the loan rate for additional peanuts of each
crop not later than February 15 preceding the mar-
keting year for the crop for which the loan rate is
being determined.
(c) AREA MARKETING ASSOCIATIONS.—
(1) WAREHOUSE STORAGE LOANS.—
(A) IN
GENERAL.—In carrying out sub-
sections (a) and (b), the Secretary shall make
warehouse storage loans available in each of the
producing areas (described in section 1446.95 of
title 7 of the Code of Federal Regulations (Janu-
ary 1, 1989)) to a designated area marketing as-
HR 2854 EAS
sociation of peanut producers that is selected and
approved by the Secretary and that is operated
primarily for the purpose of conducting the loan
activities. The Secretary may not make ware-
house storage loans available to any cooperative
that is engaged in operations or activities con-
cerning peanuts other than those operations and
activities specified in this section and section
358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(B) ADMINISTRATIVE AND SUPERVISORY AC-
TIVITIES.—An area marketing association shall
be used in administrative and supervisory ac-
tivities relating to loans and marketing activities
under this section and section 358e of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C.
1359a).
(C) ASSOCIATION COSTS.—Loans made to
the association under this paragraph shall in-
clude such costs as the area marketing associa-
tion reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e of
the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
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(2) POOLS FOR QUOTA AND ADDITIONAL PEA-
NUTS.—
(A) IN GENERAL.—The Secretary shall re-
quire that each area marketing association estab-
lish pools and maintain complete and accurate
records by area and segregation for quota pea-
nuts handled under loan and for additional pea-
nuts placed under loan, except that separate
pools shall be established for Valencia peanuts
produced in New Mexico.
(B) ELIGIBILITY TO PARTICIPATE.—
(i) IN GENERAL.—Except as provided
in clause (ii), in the case of the 1996 and
subsequent crops, Valencia peanuts not
physically produced in the State of New
Mexico shall not be eligible to participate in
the pools of the State.
(ii) EXCEPTION.—A resident of the
State of New Mexico may enter Valencia
peanuts that are produced outside of the
State into the pools of the State in a quan-
tity that is not greater than the 1995 crop
of the resident that was produced outside
the State.
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(C) TYPES OF PEANTUS.—Bright hull and
dark hull Valencia peanuts shall be considered as
separate types for the purpose of establishing the
pools.
(D) NET GAINS.—Net gains on peanuts in
each pool, unless otherwise approved by the Sec-
retary, shall be distributed only to producers who
placed peanuts in the pool and shall be distrib-
uted in proportion to the value of the peanuts
placed in the pool by each producer. Net gains
for peanuts in each pool shall consist of the fol-
lowing:
(i) QUOTA PEANUTS.—For quota pea-
nuts, the net gains over and above the loan
indebtedness and other costs or losses in-
curred on peanuts placed in the pool.
(ii) ADDITIONAL PEANUTS.—For addi-
tional peanuts, the net gains over and above
the loan indebtedness and other costs or
losses incurred on peanuts placed in the
pool for additional peanuts.
(d) LOSSES.—Losses in quota area pools shall be cov-
ered using the following sources in the following order of
priority:
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(1) 
TRANSFERS
FROM
ADDITIONAL
LOAN
POOLS.—The proceeds due any producer from any
pool shall be reduced by the amount of any loss that
is incurred with respect to peanuts transferred from
an additional loan pool to a quota loan pool by the
producer under section 358–1(b)(8) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1358–
1(b)(8)).
(2) OTHER PRODUCERS IN SAME POOL.—Further
losses in an area quota pool shall be offset by reduc-
ing the gain of any producer in the pool by the
amount of pool gains attributed to the same producer
from the sale of additional peanuts for domestic and
export edible use.
(3) OFFSET WITHIN AREA.—Further losses in an
area quota pool shall be offset by any gains or profits
from additional peanuts (other than separate type
pools established under subsection (c)(2)(A) for Valen-
cia peanuts produced in New Mexico) owned or con-
trolled by the Commodity Credit Corporation in that
area and sold for domestic edible use, in accordance
with regulations issued by the Secretary.
(4) USE
OF
MARKETING
ASSESSMENTS.—The
Secretary shall use funds collected under subsection
(g) (except funds attributable to handlers) to offset
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further losses in area quota pools. The Secretary shall
transfer to the Treasury those funds collected under
subsection (g) and available for use under this sub-
section that the Secretary determines are not required
to cover losses in area quota pools.
(5) CROSS COMPLIANCE.—Further losses in area
quota pools, other than losses incurred as a result of
transfers from additional loan pools to quota loan
pools under section 358–1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358–1(b)(8)), shall
be offset by any gains or profits from quota pools in
other production areas (other than separate type pools
established under subsection (c)(2)(A) for Valencia
peanuts produced in New Mexico) in such manner as
the Secretary shall by regulation prescribe.
(6) OFFSET GENERALLY.—If losses in an area
quota pool have not been entirely offset under para-
graph (3), further losses shall be offset by any gains
or profits from additional peanuts (other than sepa-
rate type pools established under subsection (c)(2)(A)
for Valencia peanuts produced in New Mexico) owned
or controlled by the Commodity Credit Corporation
and sold for domestic edible use, in accordance with
regulations issued by the Secretary.
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(7) INCREASED ASSESSMENTS.—If use of the au-
thorities provided in the preceding paragraphs is not
sufficient to cover losses in an area quota pool, the
Secretary shall increase the marketing assessment es-
tablished under subsection (g) by such an amount as
the Secretary considers necessary to cover the losses.
The increased assessment shall apply only to quota
peanuts in the production area covered by the pool.
Amounts collected under subsection (g) as a result of
the increased assessment shall be retained by the Sec-
retary to cover losses in that pool.
(e) DISAPPROVAL OF QUOTAS.—Notwithstanding any
other provision of law, no loan for quota peanuts may be
made available by the Secretary for any crop of peanuts
with respect to which poundage quotas have been dis-
approved by producers, as provided for in section 358–1(d)
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358–
1(d)).
(f) QUALITY IMPROVEMENT.—
(1) IN GENERAL.—With respect to peanuts under
loan, the Secretary shall—
(A) promote the crushing of peanuts at a
greater risk of deterioration before peanuts of a
lesser risk of deterioration;
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(B) ensure that all Commodity Credit Cor-
poration inventories of peanuts sold for domestic
edible use must be shown to have been officially
inspected by licensed Department inspectors both
as farmer stock and shelled or cleaned in-shell
peanuts;
(C) continue to endeavor to operate the pea-
nut program so as to improve the quality of do-
mestic peanuts and ensure the coordination of
activities under the Peanut Administrative Com-
mittee established under Marketing Agreement
No. 146, regulating the quality of domestically
produced peanuts (under the Agricultural Ad-
justment Act (7 U.S.C. 601 et seq.), reenacted
with amendments by the Agricultural Marketing
Agreement Act of 1937); and
(D) ensure that any changes made in the
peanut program as a result of this subsection re-
quiring additional production or handling at the
farm level shall be reflected as an upward adjust-
ment in the Department loan schedule.
(2) EXPORTS AND OTHER PEANUTS.—The Sec-
retary shall require that all peanuts in the domestic
and export markets fully comply with all quality
standards under Marketing Agreement No. 146.
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(g) MARKETING ASSESSMENT.—
(1) IN GENERAL.—The Secretary shall provide
for a nonrefundable marketing assessment. The assess-
ment shall be made on a per pound basis in an
amount equal to 1.1 percent for each of the 1994 and
1995 crops, 1.15 percent for the 1996 crop, and 1.2
percent for each of the 1997 through 2002 crops, of the
national average quota or additional peanut loan rate
for the applicable crop.
(2) FIRST PURCHASERS.—
(A) IN
GENERAL.—Except as provided
under paragraphs (3) and (4), the first pur-
chaser of peanuts shall—
(i) collect from the producer a market-
ing assessment equal to the quantity of pea-
nuts acquired multiplied by—
(I) in the case of each of the 1994
and 1995 crops, .55 percent of the ap-
plicable national average loan rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent
HR 2854 EAS
of the applicable national average loan
rate;
(ii) pay, in addition to the amount
collected under clause (i), a marketing as-
sessment in an amount equal to the quan-
tity of peanuts acquired multiplied by .55
percent of the applicable national average
loan rate; and
(iii) remit the amounts required under
clauses (i) and (ii) to the Commodity Credit
Corporation in a manner specified by the
Secretary.
(B) DEFINITION OF FIRST PURCHASER.—In
this subsection, the term ‘‘first purchaser’’ means
a person acquiring peanuts from a producer ex-
cept that in the case of peanuts forfeited by a
producer to the Commodity Credit Corporation,
the term means the person acquiring the peanuts
from the Commodity Credit Corporation.
(3) OTHER PRIVATE MARKETINGS.—In the case
of a private marketing by a producer directly to a
consumer through a retail or wholesale outlet or in
the case of a marketing by the producer outside of the
continental United States, the producer shall be re-
sponsible for the full amount of the assessment and
HR 2854 EAS
shall remit the assessment by such time as is specified
by the Secretary.
(4) LOAN PEANUTS.—In the case of peanuts that
are pledged as collateral for a loan made under this
section, 1⁄2 of the assessment shall be deducted from
the proceeds of the loan. The remainder of the assess-
ment shall be paid by the first purchaser of the pea-
nuts. For purposes of computing net gains on peanuts
under this section, the reduction in loan proceeds
shall be treated as having been paid to the producer.
(5) PENALTIES.—If any person fails to collect or
remit the reduction required by this subsection or
fails to comply with the requirements for record-
keeping or otherwise as are required by the Secretary
to carry out this subsection, the person shall be liable
to the Secretary for a civil penalty up to an amount
determined by multiplying—
(A) the quantity of peanuts involved in the
violation; by
(B) the national average quota peanut rate
for the applicable crop year.
(6) ENFORCEMENT.—The Secretary may enforce
this subsection in the courts of the United States.
(h) CROPS.—Subsections (a) through (f) shall be effec-
tive only for the 1996 through 2002 crops of peanuts.
HR 2854 EAS
(i) MARKETING QUOTAS.—
(1) IN GENERAL.—Part VI of subtitle B of title
III of the Agricultural Adjustment Act of 1938 is
amended—
(A) in section 358–1 (7 U.S.C. 1358–1)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1997 CROPS OF’’;
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by strik-
ing ‘‘of the 1991 through 1997 marketing
years’’ each place it appears and inserting
‘‘marketing year’’;
(iii) in subsection (a)(3), by striking
‘‘1990’’ and inserting ‘‘1990, for the 1991
through 1995 marketing years, and 1995,
for the 1996 through 2002 marketing
years’’;
(iv) in subsection (b)(1)(A)—
(I) by striking ‘‘each of the 1991
through 1997 marketing years’’ and
inserting ‘‘each marketing year’’; and
(II) in clause (i), by inserting be-
fore the semicolon the following: ‘‘, in
the case of the 1991 through 1995 mar-
keting years, and the 1995 marketing
HR 2854 EAS
year, in the case of the 1996 through
2002 marketing years’’;
(v) in subsection (b)(1), by adding at
the end the following:
‘‘(D) CERTAIN
FARMS
INELIGIBLE
FOR
QUOTA.—Effective beginning with the 1997 mar-
keting year, the Secretary shall not establish a
farm poundage quota under subparagraph (A)
for a farm owned or controlled by—
‘‘(i) a municipality, airport authority,
school, college, refuge, or other public entity
(other than a university used for research
purposes); or
‘‘(ii) a person who is not a producer
and resides in another State.’’;
(vi) in subsection (b)(2), by adding at
the end the following:
‘‘(E) TRANSFER
OF
QUOTA
FROM
INELI-
GIBLE FARMS.—Any farm poundage quota held
at the end of the 1996 marketing year by a farm
described in paragraph (1)(D) shall be allocated
to other farms in the same State on such basis
as the Secretary may by regulation prescribe.’’;
and
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(vii) in subsection (f), by striking
‘‘1997’’ and inserting ‘‘2002’’;
(B) in section 358b (7 U.S.C. 1358b)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1995 CROPS OF’’; and
(ii) in subsection (c), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(C) in section 358c(d) (7 U.S.C. 1358c(d)),
by striking ‘‘1995’’ and inserting ‘‘2002’’; and
(D) in section 358e (7 U.S.C. 1359a)—
(i) in the section heading, by striking
‘‘FOR 1991 THROUGH 1997 CROPS OF
PEANUTS’’; and
(ii) in subsection (i), by striking
‘‘1997’’ and inserting ‘‘2002’’.
(2) ELIMINATION
OF
QUOTA
FLOOR.—Section
358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is
amended by striking the second sentence.
(3) TEMPORARY
QUOTA
ALLOCATION.—Section
358–1 of the Act (7 U.S.C. 1358–1) is amended—
(A) in subsection (a)(1), by striking ‘‘do-
mestic edible, seed,’’ and inserting ‘‘domestic edi-
ble use’’;
(B) in subsection (b)(2)—
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(i) in subparagraph (A), by striking
‘‘subparagraph (B) and subject to’’; and
(ii) by striking subparagraph (B) and
inserting the following:
‘‘(B) TEMPORARY QUOTA ALLOCATION.—
‘‘(i) ALLOCATION
RELATED
TO
SEED
PEANUTS.—Temporary allocation of quota
pounds for the marketing year only in
which the crop is planted shall be made to
producers for each of the 1996 through 2002
marketing years as provided in this sub-
paragraph.
‘‘(ii) QUANTITY.—The temporary quota
allocation shall be equal to the pounds of
seed peanuts planted on the farm, as may
be adjusted under regulations prescribed by
the Secretary.
‘‘(iii) ADDITIONAL QUOTA.—The tem-
porary allocation of quota pounds under
this paragraph shall be in addition to the
farm poundage quota otherwise established
under this subsection and shall be credited,
for the applicable marketing year only, in
total to the producer of the peanuts on the
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farm in a manner prescribed by the Sec-
retary.
‘‘(iv) EFFECT
OF
OTHER
REQUIRE-
MENTS.—Nothing in this section alters or
changes the requirements regarding the use
of quota and additional peanuts established
by section 358e(b).’’; and
(C) in subsection (e)(3), strike ‘‘and seed
and use on a farm’’.
(4) UNDERMARKETINGS.—Part VI of subtitle B
of title III of the Act is amended—
(A) in section 358–1(b) (7 U.S.C. 1358–
1(b))—
(i) in paragraph (1)(B), by striking
‘‘including—’’ and clauses (i) and (ii) and
inserting ‘‘including any increases resulting
from the allocation of quotas voluntarily re-
leased for 1 year under paragraph (7).’’;
(ii) in paragraph (3)(B), by striking
‘‘include—’’ and clauses (i) and (ii) and
inserting ‘‘include any increase resulting
from the allocation of quotas voluntarily re-
leased for 1 year under paragraph (7).’’;
and
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(iii) by striking paragraphs (8) and
(9); and
(B) 
in 
section 
358b(a) 
(7 
U.S.C.
1358b(a))—
(i) in paragraph (1), by striking ‘‘(in-
cluding any applicable under marketings)’’
both places it appears;
(ii) in paragraph (1)(A), by striking
‘‘of undermarketings and’’;
(iii) in paragraph (2), by striking
‘‘(including any applicable under market-
ings)’’; and
(iv) in paragraph (3), by striking
‘‘(including 
any 
applicable
undermarketings)’’.
(5) DISASTER TRANSFERS.—Section 358–1(b) of
the Act (7 U.S.C. 1358–1(b)), as amended by para-
graph (4)(A)(iii), is further amended by adding at
the end the following:
‘‘(8) DISASTER TRANSFERS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), additional peanuts produced
on a farm from which the quota poundage was
not harvested and marketed because of drought,
flood, or any other natural disaster, or any other
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condition beyond the control of the producer,
may be transferred to the quota loan pool for
pricing purposes on such basis as the Secretary
shall by regulation provide.
‘‘(B) LIMITATION.—The poundage of pea-
nuts transferred under subparagraph (A) shall
not exceed the difference between—
‘‘(i) the total quantity of peanuts meet-
ing quality requirements for domestic edible
use, as determined by the Secretary, mar-
keted from the farm; and
‘‘(ii) the total farm poundage quota,
excluding quota pounds transferred to the
farm in the fall.
‘‘(C) SUPPORT RATE.—Peanuts transferred
under this paragraph shall be supported at not
more than 70 percent of the quota support rate
for the marketing years in which the transfers
occur. The transfers for a farm shall not exceed
25 percent of the total farm quota pounds, ex-
cluding pounds transferred in the fall.’’.
SEC. 107. SUGAR PROGRAM.
(a) SUGARCANE.—The Secretary shall make loans
available to processors of domestically grown sugarcane at
a rate equal to 18 cents per pound for raw cane sugar.
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(b) SUGAR BEETS.—The Secretary shall make loans
available to processors of domestically grown sugar beets at
a rate equal to 22.9 cents per pound for refined beet sugar.
(c) TERM OF LOANS.—
(1) IN GENERAL.—Loans under this section dur-
ing any fiscal year shall be made available not earlier
than the beginning of the fiscal year and shall mature
at the earlier of—
(A) the end of 9 months; or
(B) the end of the fiscal year.
(2) SUPPLEMENTAL LOANS.—In the case of loans
made under this section in the last 3 months of a fis-
cal year, the processor may repledge the sugar as col-
lateral for a second loan in the subsequent fiscal year,
except that the second loan shall—
(A) be made at the loan rate in effect at the
time the second loan is made; and
(B) mature in 9 months less the quantity of
time that the first loan was in effect.
(d) LOAN TYPE; PROCESSOR ASSURANCES.—
(1) RECOURSE
LOANS.—Subject to paragraph
(2), the Secretary shall carry out this section through
the use of recourse loans.
(2) NONRECOURSE LOANS.—During any fiscal
year in which the tariff rate quota for imports of
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sugar into the United States is established at, or is
increased to, a level in excess of 1,500,000 short tons
raw value, the Secretary shall carry out this section
by making available nonrecourse loans. Any recourse
loan previously made available by the Secretary
under this section during the fiscal year shall be
changed by the Secretary into a nonrecourse loan.
(3) PROCESSOR ASSURANCES.—If the Secretary
is required under paragraph (2) to make nonrecourse
loans available during a fiscal year or to change re-
course loans into nonrecourse loans, the Secretary
shall obtain from each processor that receives a loan
under this section such assurances as the Secretary
considers adequate to ensure that the processor will
provide payments to producers that are proportional
to the value of the loan received by the processor for
sugar beets and sugarcane delivered by producers
served by the processor. The Secretary may establish
appropriate minimum payments for purposes of this
paragraph.
(e) MARKETING ASSESSMENT.—
(1) SUGARCANE.—Effective for marketings of
raw cane sugar during the 1996 through 2003 fiscal
years, the first processor of sugarcane shall remit to
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the Commodity Credit Corporation a nonrefundable
marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal
year 1996, 1.1 percent of the loan rate estab-
lished under subsection (a) per pound of raw
cane sugar, processed by the processor from do-
mestically produced sugarcane or sugarcane mo-
lasses, that has been marketed (including the
transfer or delivery of the sugar to a refinery for
further processing or marketing); and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.375 percent
of the loan rate established under subsection (a)
per pound of raw cane sugar, processed by the
processor from domestically produced sugarcane
or sugarcane molasses, that has been marketed
(including the transfer or delivery of the sugar
to a refinery for further processing or market-
ing).
(2) SUGAR BEETS.—Effective for marketings of
beet sugar during the 1996 through 2003 fiscal years,
the first processor of sugar beets shall remit to the
Commodity Credit Corporation a nonrefundable mar-
keting assessment in an amount equal to—
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(A) in the case of marketings during fiscal
year 1996, 1.1794 percent of the loan rate estab-
lished under subsection (a) per pound of beet
sugar, processed by the processor from domesti-
cally produced sugar beets or sugar beet molas-
ses, that has been marketed; and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.47425 per-
cent of the loan rate established under subsection
(a) per pound of beet sugar, processed by the
processor from domestically produced sugar beets
or sugar beet molasses, that has been marketed.
(3) COLLECTION.—
(A) TIMING.—A marketing assessment re-
quired under this subsection shall be collected on
a monthly basis and shall be remitted to the
Commodity Credit Corporation not later than 30
days after the end of each month. Any cane
sugar or beet sugar processed during a fiscal
year that has not been marketed by September
30 of the year shall be subject to assessment on
that date. The sugar shall not be subject to a sec-
ond assessment at the time that it is marketed.
(B) MANNER.—Subject to subparagraph
(A), marketing assessments shall be collected
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under this subsection in the manner prescribed
by the Secretary and shall be nonrefundable.
(4) PENALTIES.—If any person fails to remit the
assessment required by this subsection or fails to com-
ply with such requirements for recordkeeping or other-
wise as are required by the Secretary to carry out
this subsection, the person shall be liable to the Sec-
retary for a civil penalty up to an amount deter-
mined by multiplying—
(A) the quantity of cane sugar or beet sugar
involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) ENFORCEMENT.—The Secretary may enforce
this subsection in a court of the United States.
(f) FORFEITURE PENALTY.—
(1) IN GENERAL.—A penalty shall be assessed on
the forfeiture of any sugar pledged as collateral for a
nonrecourse loan under this section.
(2) CANE SUGAR.—The penalty for cane sugar
shall be 1 cent per pound.
(3) BEET SUGAR.—The penalty for beet sugar
shall bear the same relation to the penalty for cane
sugar as the marketing assessment for sugar beets
bears to the marketing assessment for sugarcane.
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(4) EFFECT
OF
FORFEITURE.—Any payments
owed producers by a processor that forfeits of any
sugar pledged as collateral for a nonrecourse loan
shall be reduced in proportion to the loan forfeiture
penalty incurred by the processor.
(g) INFORMATION REPORTING.—
(1) DUTY OF PROCESSORS AND REFINERS TO RE-
PORT.—A sugarcane processor, cane sugar refiner,
and sugar beet processor shall furnish the Secretary,
on a monthly basis, such information as the Secretary
may require to administer sugar programs, including
the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution,
and stock levels of sugar.
(2) PENALTY.—Any person willfully failing or
refusing to furnish the information, or furnishing
willfully any false information, shall be subject to a
civil penalty of not more than $10,000 for each such
violation.
(3) MONTHLY REPORTS.—Taking into consider-
ation the information received under paragraph (1),
the Secretary shall publish on a monthly basis com-
posite data on production, imports, distribution, and
stock levels of sugar.
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(h) CROPS.—This section shall be effective only for the
1996 through 2002 crops of sugar beets and sugarcane.
SEC. 108. ADMINISTRATION.
(a) COMMODITY CREDIT CORPORATION.—
(1) USE OF CORPORATION.—The Secretary shall
carry out this title through the Commodity Credit
Corporation.
(2) SALARIES AND EXPENSES.—No funds of the
Corporation shall be used for any salary or expense
of any officer or employee of the Department of Agri-
culture.
(b) DETERMINATIONS BY SECRETARY.—A determina-
tion made by the Secretary under this title or the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) shall
be final and conclusive.
(c) REGULATIONS.—The Secretary may issue such reg-
ulations as the Secretary determines necessary to carry out
this title.
SEC. 109. SUSPENSION AND REPEAL OF PERMANENT AU-
THORITIES.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—
(1) IN GENERAL.—The following provisions of
the Agricultural Adjustment Act of 1938 shall not be
applicable to the 1996 through 2002 crops:
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(A) Parts II through V of subtitle B of title
III (7 U.S.C. 1326–1351).
(B) Subsections (a) through (j) of section
358 (7 U.S.C. 1358).
(C) Subsections (a) through (h) of section
358a (7 U.S.C. 1358a).
(D) Subsections (a), (b), (d), and (e) of sec-
tion 358d (7 U.S.C. 1359).
(E) Part VII of subtitle B of title III (7
U.S.C. 1359aa–1359jj).
(F) In the case of peanuts, part I of subtitle
C of title III (7 U.S.C. 1361–1368).
(G) In the case of upland cotton, section
377 (7 U.S.C. 1377).
(H) Subtitle D of title III (7 U.S.C. 1379a–
1379j).
(I) Title IV (7 U.S.C. 1401–1407).
(2) REPORTS AND RECORDS.—Effective only for
the 1996 through 2002 crops of peanuts, the first sen-
tence of section 373(a) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1373(a)) is amended by insert-
ing before ‘‘all brokers and dealers in peanuts’’ the
following: ‘‘all producers engaged in the production of
peanuts,’’.
(b) AGRICULTURAL ACT OF 1949.—
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(1) SUSPENSIONS.—The following provisions of
the Agricultural Act of 1949 shall not be applicable
to the 1996 through 2002 crops:
(A) Section 101 (7 U.S.C. 1441).
(B) Section 103(a) (7 U.S.C. 1444(a)).
(C) Section 105 (7 U.S.C. 1444b).
(D) Section 107 (7 U.S.C. 1445a).
(E) Section 110 (7 U.S.C. 1445e).
(F) Section 112 (7 U.S.C. 1445g).
(G) Section 115 (7 U.S.C. 1445k).
(H) Title III (7 U.S.C. 1447–1449).
(I) Title IV (7 U.S.C. 1421–1433d), other
than sections 404, 406, 412, 416, and 427 (7
U.S.C. 1424, 1426, 1429, 1431, and 1433f).
(J) Title V (7 U.S.C. 1461–1469).
(K) Title VI (7 U.S.C. 1471–1471j).
(2) REPEALS.—The following provisions of the
Agricultural Act of 1949 are repealed:
(A) Section 103B (7 U.S.C. 1444–2).
(B) Section 108B (7 U.S.C. 1445c–3).
(C) Section 113 (7 U.S.C. 1445h).
(D) Section 114(b) (7 U.S.C. 1445j(b)).
(E) Sections 205, 206, and 207 (7 U.S.C.
1446f, 1446g, and 1446h).
(F) Section 406 (7 U.S.C. 1426).
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(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—
The joint resolution entitled ‘‘A joint resolution relating to
corn and wheat marketing quotas under the Agricultural
Adjustment Act of 1938, as amended’’, approved May 26,
1941 (7 U.S.C. 1330 and 1340), shall not be applicable to
the crops of wheat planted for harvest in the calendar years
1996 through 2002.
SEC. 110. EFFECT OF AMENDMENTS.
(a) EFFECT ON PRIOR CROPS.—Except as otherwise
specifically provided and notwithstanding any other provi-
sion of law, this title and the amendments made by this
title shall not affect the authority of the Secretary to carry
out a price support or production adjustment program for
any of the 1991 through 1995 crops of an agricultural com-
modity established under a provision of law in effect imme-
diately before the date of the enactment of this Act.
(b) LIABILITY.—A provision of this title or an amend-
ment made by this title shall not affect the liability of any
person under any provision of law as in effect before the
date of the enactment of this Act.
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TITLE II—AGRICULTURAL TRADE
Subtitle A—Amendments to Agricul-
tural Trade Development and
Assistance Act of 1954 and Relat-
ed Statutes
SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.
(a) IN GENERAL.—Section 3 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691a)
is amended to read as follows:
‘‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.
‘‘(a) POLICY.—In light of the Uruguay Round Agree-
ment on Agriculture and the Ministerial Decision on Meas-
ures Concerning the Possible Negative Effects of the Reform
Program on Least-Developed and Net-Food Importing De-
veloping Countries, the United States reaffirms the commit-
ment of the United States to providing food aid to develop-
ing countries.
‘‘(b) SENSE OF CONGRESS.—It is the sense of Congress
that—
‘‘(1) the President should initiate consultations
with other donor nations to consider appropriate lev-
els of food aid commitments to meet the legitimate
needs of developing countries; and
‘‘(2) the United States should increase its con-
tribution of bona fide food assistance to developing
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countries consistent with the Agreement on Agri-
culture.’’.
(b) CONFORMING AMENDMENT.—Section 411 of the
Uruguay Round Agreements Act (19 U.S.C. 3611) is
amended by striking subsection (e).
SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.
Section 101 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1701) is amended—
(1) by striking ‘‘developing countries’’ each place
it appears and inserting ‘‘developing countries and
private entities’’; and
(2) in subsection (b), by inserting ‘‘and entities’’
before the period at the end.
SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES
AND PRIVATE ENTITIES.
Section 102 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1702) is amended to
read as follows:
‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES
AND PRIVATE ENTITIES.
‘‘(a) PRIORITY.—In selecting agreements to be entered
into under this title, the Secretary shall give priority to
agreements providing for the export of agricultural com-
modities to developing countries that—
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‘‘(1) have the demonstrated potential to become
commercial markets for competitively priced United
States agricultural commodities;
‘‘(2) are undertaking measures for economic de-
velopment purposes to improve food security and ag-
ricultural development, alleviate poverty, and pro-
mote broad-based equitable and sustainable develop-
ment; and
‘‘(3) demonstrate the greatest need for food.
‘‘(b) PRIVATE ENTITIES.—An agreement entered into
under this title with a private entity shall require such se-
curity, or such other provisions as the Secretary determines
necessary, to provide reasonable and adequate assurance of
repayment of the financing extended to the private entity.
‘‘(c) AGRICULTURAL MARKET DEVELOPMENT PLAN.—
‘‘(1) DEFINITION OF AGRICULTURAL TRADE OR-
GANIZATION.—In this subsection, the term ‘agricul-
tural trade organization’ means a United States agri-
cultural trade organization that promotes the export
and sale of a United States agricultural commodity
and that does not stand to profit directly from the
specific sale of the commodity.
‘‘(2) PLAN.—The Secretary shall consider a de-
veloping country for which an agricultural market de-
velopment plan has been approved under this sub-
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section to have the demonstrated potential to become
a commercial market for competitively priced United
States agricultural commodities for the purpose of
granting a priority under subsection (a).
‘‘(3) REQUIREMENTS.—
‘‘(A) IN GENERAL.—To be approved by the
Secretary, an agricultural market development
plan shall—
‘‘(i) be submitted by a developing coun-
try or private entity, in conjunction with
an agricultural trade organization;
‘‘(ii) describe a project or program for
the development and expansion of a United
States agricultural commodity market in a
developing country, and the economic devel-
opment of the country, using funds derived
from the sale of agricultural commodities
received under an agreement described in
section 101;
‘‘(iii) provide for any matching funds
that are required by the Secretary for the
project or program;
‘‘(iv) provide for a results-oriented
means of measuring the success of the
project or program; and
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‘‘(v) provide for graduation to the use
of non-Federal funds to carry out the
project or program, consistent with require-
ments established by the Secretary.
‘‘(B) AGRICULTURAL
TRADE
ORGANIZA-
TION.—The project or program shall be designed
and carried out by the agricultural trade organi-
zation.
‘‘(C) ADDITIONAL REQUIREMENTS.—An ag-
ricultural market development plan shall contain
such additional requirements as are determined
necessary by the Secretary.
‘‘(4) ADMINISTRATIVE COSTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
make funds made available to carry out this title
available for the reimbursement of administra-
tive expenses incurred by agricultural trade or-
ganizations in developing, implementing, and
administering agricultural market development
plans, subject to such requirements and in such
amounts as the Secretary considers appropriate.
‘‘(B) DURATION.—The funds shall be made
available to agricultural trade organizations for
the duration of the applicable agricultural mar-
ket development plan.
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‘‘(C) TERMINATION.—The Secretary may
terminate assistance made available under this
subsection if the agricultural trade organization
is not carrying out the approved agricultural
market development plan.’’.
SEC. 204. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1703) is amended—
(1) in subsection (a)(2)(A)—
(A) by striking ‘‘a recipient country to
make’’; and
(B) by striking ‘‘such country’’ and insert-
ing ‘‘the appropriate country’’;
(2) in subsection (c), by striking ‘‘less than 10
nor’’; and
(3) in subsection (d)—
(A) by striking ‘‘recipient country’’ and in-
serting ‘‘developing country or private entity’’;
and
(B) by striking ‘‘7’’ and inserting ‘‘5’’.
SEC. 205. USE OF LOCAL CURRENCY PAYMENT.
Section 104 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1704) is amended—
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(1) in subsection (a), by striking ‘‘recipient
country’’ and inserting ‘‘developing country or pri-
vate entity’’; and
(2) in subsection (c)—
(A) by striking ‘‘recipient country’’ each
place it appears and inserting ‘‘appropriate de-
veloping country’’; and
(B) in paragraph (3), by striking ‘‘recipient
countries’’ and inserting ‘‘appropriate develop-
ing countries’’.
SEC. 206. VALUE-ADDED FOODS.
Section 105 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1705) is repealed.
SEC. 207. ELIGIBLE ORGANIZATIONS.
(a) IN GENERAL.—Section 202 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1722) is amended—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) NONEMERGENCY ASSISTANCE.—
‘‘(1) IN GENERAL.—The Administrator may pro-
vide agricultural commodities for nonemergency as-
sistance under this title through eligible organizations
(as described in subsection (d)) that have entered into
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an agreement with the Administrator to use the com-
modities in accordance with this title.
‘‘(2) LIMITATION.—The Administrator may not
deny a request for funds submitted under this sub-
section because the program for which the funds are
requested—
‘‘(A) would be carried out by the eligible or-
ganization in a foreign country in which the
Agency for International Development does not
have a mission, office, or other presence; or
‘‘(B) is not part of a development plan for
the country prepared by the Agency.’’; and
(2) in subsection (e)—
(A) in the subsection heading, by striking
‘‘PRIVATE VOLUNTARY ORGANIZATIONS AND CO-
OPERATIVES’’ and inserting ‘‘ELIGIBLE ORGANI-
ZATIONS’’;
(B) in paragraph (1)—
(i) by striking ‘‘$13,500,000’’ and in-
serting ‘‘$28,000,000’’; and
(ii) by striking ‘‘private voluntary or-
ganizations and cooperatives to assist such
organizations and cooperatives’’ and insert-
ing ‘‘eligible organizations described in sub-
section (d), to assist the organizations’’;
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(C) by striking paragraph (2) and inserting
the following:
‘‘(2) REQUEST
FOR
FUNDS.—To receive funds
made available under paragraph (1), a private vol-
untary organization or cooperative shall submit a re-
quest for the funds that is subject to approval by the
Administrator.’’; and
(D) in paragraph (3), by striking ‘‘a pri-
vate voluntary organization or cooperative, the
Administrator may provide assistance to that or-
ganization or cooperative’’ and inserting ‘‘an eli-
gible organization, the Administrator may pro-
vide assistance to the eligible organization’’.
(b) CONFORMING AMENDMENTS.—Section 207 of the
Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1726a) is amended—
(1) in subsection (a), by striking ‘‘a private vol-
untary organization or cooperative’’ and inserting
‘‘an eligible organization’’; and
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘private
voluntary organizations and cooperatives’’ and
inserting ‘‘eligible organizations’’; and
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(B) in paragraph (2), by striking ‘‘organi-
zations, cooperatives,’’ and inserting ‘‘eligible or-
ganizations’’.
SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.
Section 203 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1723) is amended—
(1) in subsection (a), by inserting ‘‘, or in a
country in the same region,’’ after ‘‘in the recipient
country’’;
(2) in subsection (b)—
(A) by inserting ‘‘or in countries in the
same region,’’ after ‘‘in recipient countries,’’;
and
(B) by striking ‘‘10 percent’’ and inserting
‘‘15 percent’’;
(3) in subsection (c), by inserting ‘‘or in a coun-
try in the same region,’’ after ‘‘in the recipient coun-
try,’’; and
(4) in subsection (d)(2), by inserting ‘‘or within
a country in the same region’’ after ‘‘within the recip-
ient country’’.
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(A) in paragraph (2), by striking ‘‘for
International Affairs and Commodity Pro-
grams’’ and inserting ‘‘of Agriculture for Farm
and Foreign Agricultural Services’’;
(B) in paragraph (4), by striking ‘‘and’’ at
the end;
(C) in paragraph (5), by striking the period
at the end and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(6) representatives from agricultural producer
groups in the United States.’’;
(3) in the second sentence of subsection (d), by
inserting ‘‘(but at least twice per year)’’ after ‘‘when
appropriate’’; and
(4) in subsection (f), by striking ‘‘1995’’ and in-
serting ‘‘2002’’.
SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZA-
TIONS.
(a) IN GENERAL.—Section 306(b) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1727e(b)) is amended—
(1) in the subsection heading, by striking ‘‘IN-
DIGENOUS
NON-GOVERNMENTAL’’ 
and 
inserting
‘‘NONGOVERNMENTAL’’; and
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(2) by striking ‘‘utilization of indigenous’’ and
inserting ‘‘utilization of’’.
(b) CONFORMING AMENDMENT.—Section 402 of the
Agricultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1732) is amended by striking paragraph (6) and
inserting the following:
‘‘(6) NONGOVERNMENTAL
ORGANIZATION.—The
term ‘nongovernmental organization’ means an orga-
nization that works at the local level to solve develop-
ment problems in a foreign country in which the or-
ganization is located, except that the term does not
include an organization that is primarily an agency
or instrumentality of the government of the foreign
country.’’.
SEC. 212. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1731) is amended—
(1) by striking subsections (a) through (d) and
inserting the following:
‘‘(a) AVAILABILITY
OF COMMODITIES.—No agricul-
tural commodity shall be available for disposition under
this Act if the Secretary determines that the disposition
would reduce the domestic supply of the commodity below
the supply needed to meet domestic requirements and pro-
vide adequate carryover (as determined by the Secretary),
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unless the Secretary determines that some part of the supply
should be used to carry out urgent humanitarian purposes
under this Act.’’;
(2) by redesignating subsections (e) and (f) as
subsections (b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by
striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.
SEC. 213. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1733) is amended—
(1) in subsection (b)—
(A) in the subsection heading, by striking
‘‘CONSULTATIONS’’ and inserting ‘‘IMPACT
ON
LOCAL FARMERS AND ECONOMY’’; and
(B) by striking ‘‘consult with’’ and all that
follows through ‘‘other donor organizations to’’;
(2) in subsection (c)—
(A) by striking ‘‘from countries’’; and
(B) by striking ‘‘for use’’ and inserting ‘‘or
use’’;
(3) in subsection (f)—
(A) by inserting ‘‘or private entities, as ap-
propriate,’’ after ‘‘from countries’’; and
(B) by inserting ‘‘or private entities’’ after
‘‘such countries’’; and
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(4) in subsection (i)(2), by striking subpara-
graph (C).
SEC. 214. AGREEMENTS.
Section 404 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1734) is amended—
(1) in subsection (a), by inserting ‘‘with foreign
countries’’ after ‘‘Before entering into agreements’’;
(2) in subsection (b)(2)—
(A) by inserting ‘‘with foreign countries’’
after ‘‘with respect to agreements entered into’’;
and
(B) by inserting before the semicolon at the
end the following: ‘‘and broad-based economic
growth’’; and
(3) in subsection (c), by striking paragraph (1)
and inserting the following:
‘‘(1) IN GENERAL.—Agreements to provide assist-
ance on a multi-year basis to recipient countries or
to eligible organizations—
‘‘(A) may be made available under titles I
and III; and
‘‘(B) shall be made available under title
II.’’.
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SEC. 215. USE OF COMMODITY CREDIT CORPORATION.
Section 406 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736) is amended—
(1) in subsection (a), by striking ‘‘shall’’ and in-
serting ‘‘may’’; and
(2) in subsection (b)—
(A) by inserting ‘‘titles II and III of’’ after
‘‘commodities made available under’’; and
(B) by striking paragraph (4) and inserting
the following:
‘‘(4) the vessel freight charges from United States
ports or designated Canadian transshipment ports, as
determined by the Secretary, to designated ports of
entry abroad;’’.
SEC. 216. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736a) is amended—
(1) in subsection (a)—
(A) in paragraph(1), by inserting ‘‘or pri-
vate entity that enters into an agreement under
title I’’ after ‘‘importing country’’; and
(B) in paragraph (2), by adding at the end
the following: ‘‘Resulting contracts may contain
such terms and conditions as the Secretary deter-
mines are necessary and appropriate.’’;
(2) in subsection (c)—
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‘‘(1) assist developing countries in correcting
micronutrient dietary deficiencies among segments of
the populations of the countries; and
‘‘(2) encourage the development of technologies
for the fortification of whole grains and other com-
modities that are readily transferable to developing
countries.
‘‘(b) SELECTION
OF PARTICIPATING COUNTRIES.—
From among the countries eligible for assistance under this
Act, the Secretary may select not more than 5 developing
countries to participate in the pilot program.
‘‘(c) FORTIFICATION.—Under the pilot program, whole
grains and other commodities made available to a develop-
ing country selected to participate in the pilot program
may be fortified with 1 or more micronutrients (including
vitamin A, iron, and iodine) with respect to which a sub-
stantial portion of the population in the country are defi-
cient. The commodity may be fortified in the United States
or in the developing country.
‘‘(d) TERMINATION OF AUTHORITY.—The authority to
carry out the pilot program established under this section
shall terminate on September 30, 2002.’’.
SEC. 223. USE OF CERTAIN LOCAL CURRENCY.
Title IV of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as amended
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by section 222) is further amended by adding at the end
the following:
‘‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY.
‘‘Local currency payments received by the United
States pursuant to agreements entered into under title I (as
in effect on November 27, 1990) may be utilized by the Sec-
retary in accordance with section 108 (as in effect on No-
vember 27, 1990).’’.
SEC. 224. LEVELS OF ASSISTANCE UNDER FARMER-TO-
FARMER PROGRAM.
Section 501 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1737) is amended—
(1) in subsection (a)—
(A) 
by 
redesignating 
paragraphs 
(4)
through (6) as paragraphs (5) through (7), re-
spectively; and
(B) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) assist the travel of farmers and other agri-
cultural professionals from developing countries, mid-
dle income countries, and emerging democracies to the
United States for educational purposes consistent
with the objectives of this section;’’; and
(2) in subsection (c), by striking ‘‘1991 through
1995’’ and inserting ‘‘1996 through 2002’’.
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SEC. 225. FOOD SECURITY COMMODITY RESERVE.
(a) IN GENERAL.—Title III of the Agricultural Act of
1980 (7 U.S.C. 1736f–1 et seq.) is amended to read as fol-
lows:
‘‘TITLE III—FOOD SECURITY
COMMODITY RESERVE
‘‘SEC. 301. SHORT TITLE.
‘‘This title may be cited as the ‘Food Security Com-
modity Reserve Act of 1996’.
‘‘SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.
‘‘(a) IN GENERAL.—To provide for a reserve solely to
meet emergency humanitarian food needs in developing
countries, the Secretary of Agriculture (referred to in this
title as the ‘Secretary’) shall establish a reserve stock of
wheat, rice, corn, or sorghum, or any combination of the
commodities, totalling not more than 4,000,000 metric tons
for use as described in subsection (c).
‘‘(b) COMMODITIES IN RESERVE.—
‘‘(1) IN GENERAL.—The reserve established under
this section shall consist of—
‘‘(A) wheat in the reserve established under
the Food Security Wheat Reserve Act of 1980 as
of the effective date of the Agricultural Reform
and Improvement Act of 1996;
‘‘(B) wheat, rice, corn, and sorghum (re-
ferred to in this section as ‘eligible commodities’)
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acquired in accordance with paragraph (2) to re-
plenish eligible commodities released from the re-
serve, including wheat to replenish wheat re-
leased from the reserve established under the
Food Security Wheat Reserve Act of 1980 but not
replenished as of the effective date of the Agricul-
tural Reform and Improvement Act of 1996; and
‘‘(C) such rice, corn, and sorghum as the
Secretary may, at such time and in such man-
ner as the Secretary determines appropriate, ac-
quire as a result of exchanging an equivalent
value of wheat in the reserve established under
this section.
‘‘(2) REPLENISHMENT OF RESERVE.—
‘‘(A) IN
GENERAL.—Subject to subsection
(i), commodities of equivalent value to eligible
commodities in the reserve established under this
section may be acquired—
‘‘(i) through purchases—
‘‘(I) from producers; or
‘‘(II) in the market, if the Sec-
retary determines that the purchases
will not unduly disrupt the market; or
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‘‘(ii) by designation by the Secretary of
stocks of eligible commodities of the Com-
modity Credit Corporation.
‘‘(B) FUNDS.—Any use of funds to acquire
eligible commodities through purchases from pro-
ducers or in the market to replenish the reserve
must be authorized in an appropriation Act.
‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—
‘‘(1) EMERGENCY FOOD ASSISTANCE.—Notwith-
standing any other law, eligible commodities des-
ignated or acquired for the reserve established under
this section may be released by the Secretary to pro-
vide, on a donation or sale basis, emergency food as-
sistance to developing countries at such time as the
domestic supply of the eligible commodities is so lim-
ited that quantities of the eligible commodities cannot
be made available for disposition under the Agricul-
tural Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.) (other than disposition for ur-
gent humanitarian purposes under section 401 of the
Act (7 U.S.C. 1731)).
‘‘(2) PROVISION OF URGENT HUMANITARIAN RE-
LIEF.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), eligible commodities may be released
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from the reserve established under this section for
any fiscal year, without regard to the availabil-
ity of domestic supply, for use under title II of
the Agricultural Trade Development Assistance
Act of 1954 (7 U.S.C. 1721 et seq.) in providing
urgent humanitarian relief in any developing
country suffering a major disaster (as deter-
mined by the Secretary) in accordance with this
paragraph.
‘‘(B) EXCEPTIONAL NEED.—If the eligible
commodities needed for relief cannot be made
available for relief in a timely manner under the
normal means of obtaining eligible commodities
for food assistance because of circumstances of
unanticipated and exceptional need, up to
500,000 metric tons of eligible commodities may
be released under subparagraph (A).
‘‘(C) FUNDS.—If the Secretary certifies that
the funds made available for a fiscal year to
carry out title II of the Agricultural Trade De-
velopment and Assistance Act of 1954 (7 U.S.C.
1721 et seq.) are not less than the funds made
available for the previous fiscal year, up to
1,000,000 metric tons of eligible commodities
may be released under subparagraph (A).
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‘‘(D) WAIVER
OF
MINIMUM
TONNAGE
RE-
QUIREMENTS.—Nothing in this paragraph shall
require the exercise of the waiver under section
204(a)(3) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 5624(a)(3))
as a prerequisite for the release of eligible com-
modities under this paragraph.
‘‘(E) LIMITATION.—The quantity of eligible
commodities released under this paragraph may
not exceed 1,000,000 metric tons in any fiscal
year.
‘‘(3) PROCESSING OF ELIGIBLE COMMODITIES.—
Eligible commodities that are released from the re-
serve established under this section may be processed
in the United States and shipped to a developing
country when conditions in the recipient country re-
quire processing.
‘‘(4) EXCHANGE.—The Secretary may exchange
an eligible commodity for another United States com-
modity of equal value, including powdered milk,
pulses, and vegetable oil.
‘‘(d) USE OF ELIGIBLE COMMODITIES.—Eligible com-
modities that are released from the reserve established under
this section for the purpose of subsection (c) shall be made
available under the Agricultural Trade Development and
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Assistance Act of 1954 (7 U.S.C. 1691 et seq.) to meet fam-
ine or other urgent or extraordinary relief needs, except that
section 401 of the Act (7 U.S.C. 1731), with respect to deter-
minations of availability, shall not be applicable to the re-
lease.
‘‘(e) MANAGEMENT OF ELIGIBLE COMMODITIES.—The
Secretary shall provide—
‘‘(1) for the management of eligible commodities
in the reserve established under this section as to loca-
tion and quality of eligible commodities needed to
meet emergency situations; and
‘‘(2) for the periodic rotation or replacement of
stocks of eligible commodities in the reserve to avoid
spoilage and deterioration of the commodities.
‘‘(f) TREATMENT OF RESERVE UNDER OTHER LAW.—
Eligible commodities in the reserve established under this
section shall not be—
‘‘(1) considered a part of the total domestic sup-
ply (including carryover) for the purpose of sub-
section (c) or for the purpose of administering the Ag-
ricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691 et seq.); and
‘‘(2) subject to any quantitative limitation on
exports that may be imposed under section 7 of the
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Export Administration Act of 1979 (50 U.S.C. App.
2406).
‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—
‘‘(1) IN
GENERAL.—Subject to the limitations
provided in this section, the funds, facilities, and au-
thorities of the Commodity Credit Corporation shall
be used by the Secretary in carrying out this section,
except that any restriction applicable to the acquisi-
tion, storage, or disposition of eligible commodities
owned or controlled by the Commodity Credit Cor-
poration shall not apply.
‘‘(2) REIMBURSEMENT.—
‘‘(A) IN GENERAL.—The Commodity Credit
Corporation shall be reimbursed for the release of
eligible commodities from funds made available
to carry out the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et
seq.).
‘‘(B) BASIS FOR REIMBURSEMENT.—The re-
imbursement shall be made on the basis of the
lesser of—
‘‘(i) the actual costs incurred by the
Commodity Credit Corporation with respect
to the eligible commodity; or
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‘‘(ii) the export market price of the eli-
gible commodity (as determined by the Sec-
retary) as of the time the eligible commodity
is released from the reserve for the purpose.
‘‘(C) SOURCE OF FUNDS.—The reimburse-
ment may be made from funds appropriated for
the purpose of reimbursement in subsequent fis-
cal years.
‘‘(h) FINALITY OF DETERMINATION.—Any determina-
tion by the Secretary under this section shall be final.
‘‘(i) TERMINATION OF AUTHORITY.—
‘‘(1) IN GENERAL.—The authority to replenish
stocks of eligible commodities to maintain the reserve
established under this section shall terminate on Sep-
tember 30, 2002.
‘‘(2) DISPOSAL OF ELIGIBLE COMMODITIES.—El-
igible commodities remaining in the reserve after Sep-
tember 30, 2002, shall be disposed of by release for use
in providing for emergency humanitarian food needs
in developing countries as provided in this section.’’.
(b) CONFORMING AMENDMENT.—Section 208(d) of the
Agriculture Trade Suspension Adjustment Act of 1980 (7
U.S.C. 4001(d)) is amended by striking paragraph (2) and
inserting the following:
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‘‘(2) APPLICABILITY OF CERTAIN PROVISIONS.—
Subsections (c), (d), (e), (f), and (g)(2) of section 302
of the Food Security Commodity Reserve Act of 1996
shall apply to commodities in any reserve established
under paragraph (1), except that the references to ‘eli-
gible commodities’ in the subsections shall be deemed
to be references to ‘agricultural commodities’.’’.
SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL
FUEL PRODUCTION.
Section 1208 of the Agriculture and Food Act of 1981
(7 U.S.C. 1736n) is repealed.
SEC. 227. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C. 1736o)
is amended—
(1) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1)’’ and inserting
‘‘(b)’’; and
(ii) in the first sentence, by inserting
‘‘intergovernmental 
organizations’’ 
after
‘‘cooperatives’’; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ‘‘203’’ and
inserting ‘‘406’’;
(3) in subsection (f)—
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(A) in paragraph (1), by striking ‘‘in the
case of the independent states of the former So-
viet Union,’’;
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ‘‘in each
of fiscal years 1996 through 2002’’ after ‘‘may be
used’’; and
(D) 
by 
redesignating 
paragraphs 
(3)
through (5) as paragraphs (2) through (4), re-
spectively;
(4) in subsection (g), by striking ‘‘1995’’ and in-
serting ‘‘2002’’;
(5) in subsection (j), by striking ‘‘shall’’ and in-
serting ‘‘may’’;
(6) in subsection (k), by striking ‘‘1995’’ and in-
serting ‘‘2002’’;
(7) in subsection (l)(1)—
(A) by striking ‘‘1991 through 1995’’ and
inserting ‘‘1996 through 2002’’; and
(B) by inserting ‘‘, and to provide technical
assistance for monetization programs,’’ after
‘‘monitoring of food assistance programs’’; and
(8) in subsection (m)—
(A) by striking ‘‘with respect to the inde-
pendent states of the former Soviet Union’’;
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(B) by striking ‘‘private voluntary organi-
zations and cooperatives’’ each place it appears
and inserting ‘‘agricultural trade organizations,
intergovernmental organizations, private vol-
untary organizations, and cooperatives’’; and
(C) in paragraph (2), by striking ‘‘in the
independent states’’.
SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EX-
PORT SALES FINANCING.
Section 402 of the Mutual Security Act of 1954 (22
U.S.C. 1922) is repealed.
SEC. 229. STIMULATION OF FOREIGN PRODUCTION.
Section 7 of the Act of December 30, 1947 (61 Stat.
947, chapter 526; 50 U.S.C. App. 1917) is repealed.
Subtitle B—Amendments to
Agricultural Trade Act of 1978
SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) IN GENERAL.—Section 103 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5603) is amended to read as
follows:
‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
‘‘(a) IN GENERAL.—The Secretary shall develop a
strategy for implementing Federal agricultural export pro-
motion programs that takes into account the new market
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opportunities for agricultural products, including opportu-
nities that result from—
‘‘(1) the North American Free Trade Agreement
and the Uruguay Round Agreements;
‘‘(2) any accession to membership in the World
Trade Organization;
‘‘(3) the continued economic growth in the Pa-
cific Rim; and
‘‘(4) other developments.
‘‘(b) PURPOSE OF STRATEGY.—The strategy developed
under subsection (a) shall encourage the maintenance, de-
velopment, and expansion of export markets for United
States agricultural commodities and related products, in-
cluding high-value and value-added products.
‘‘(c) GOALS OF STRATEGY.—The strategy developed
under subsection (a) shall have the following goals:
‘‘(1) By September 30, 2002, increasing the
value of annual United States agricultural exports to
$60,000,000,000.
‘‘(2) By September 30, 2002, increasing the
United States share of world export trade in agricul-
tural products significantly above the average United
States share from 1993 through 1995.
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‘‘(3) By September 30, 2002, increasing the
United States share of world trade in high-value agri-
cultural products to 20 percent.
‘‘(4) Ensuring that the value of United States
exports of agricultural products increases at a faster
rate than the rate of increase in the value of overall
world export trade in agricultural products.
‘‘(5) Ensuring that the value of United States
exports of high-value agricultural products increases
at a faster rate than the rate of increase in overall
world export trade in high-value agricultural prod-
ucts.
‘‘(6) Ensuring to the extent practicable that—
‘‘(A) substantially all obligations under-
taken in the Uruguay Round Agreement on Ag-
riculture that provide significantly increased ac-
cess for United States agricultural commodities
are implemented to the extent required by the
Uruguay Round Agreements; or
‘‘(B) applicable United States trade laws
are used to secure United States rights under the
Uruguay Round Agreement on Agriculture.
‘‘(d) PRIORITY MARKETS.—
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‘‘(1) IDENTIFICATION OF MARKETS.—In develop-
ing the strategy required under subsection (a), the
Secretary shall identify as priority markets—
‘‘(A) those markets in which imports of ag-
ricultural products show the greatest potential
for increase by September 30, 2002; and
‘‘(B) those markets in which, with the as-
sistance of Federal export promotion programs,
exports of United States agricultural products
show the greatest potential for increase by Sep-
tember 30, 2002.
‘‘(2) 
IDENTIFICATION
OF
SUPPORTING
OF-
FICES.—The President shall identify annually in the
budget of the United States Government submitted
under section 1105 of title 31, United States Code,
each overseas office of the Foreign Agricultural Serv-
ice that provides assistance to United States exporters
in each of the priority markets identified under para-
graph (1).
‘‘(e) REPORT.—Not later than December 31, 2001, the
Secretary shall prepare and submit a report to Congress
assessing progress in meeting the goals established by sub-
section (c).
‘‘(f) FAILURE TO MEET GOALS.—Notwithstanding
any other law, if the Secretary determines that more than
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2 of the goals established by subsection (c) are not met by
September 30, 2002, the Secretary may not carry out agri-
cultural trade programs under the Agricultural Trade Act
of 1978 (7 U.S.C. 5601 et seq.) as of that date.
‘‘(g) NO PRIVATE RIGHT OF ACTION.—This section
shall not create any private right of action.’’.
(b) CONTINUATION OF FUNDING.—
(1) IN GENERAL.—If the Secretary of Agriculture
makes a determination under section 103(f) of the Ag-
ricultural Trade Act of 1978 (as amended by sub-
section (a)), the Secretary shall utilize funds of the
Commodity Credit Corporation to promote United
States agricultural exports in a manner consistent
with the Commodity Credit Corporation Charter Act
(15 U.S.C. 714 et seq.) and obligations pursuant to
the Uruguay Round Agreements.
(2) FUNDING.—The amount of Commodity Cred-
it Corporation funds used to carry out paragraph (1)
during a fiscal year shall not exceed the total outlays
for agricultural trade programs under the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5601 et seq.) dur-
ing fiscal year 2002.
(c) ELIMINATION OF REPORT.—
(1) IN GENERAL.—Section 601 of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5711) is repealed.
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(2) CONFORMING
AMENDMENT.—The last sen-
tence of section 603 of the Agricultural Trade Act of
1978 (7 U.S.C. 5713) is amended by striking ‘‘, in a
consolidated report,’’ and all that follows through
‘‘section 601’’ and inserting ‘‘or in a consolidated re-
port’’.
SEC. 242. EXPORT CREDITS.
(a) EXPORT CREDIT GUARANTEE PROGRAM.—Section
202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622)
is amended—
(1) in subsection (a)—
(A) by striking ‘‘GUARANTEES.—The’’ and
inserting the following: ‘‘GUARANTEES.—
‘‘(1) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(2) SUPPLIER CREDITS.—In carrying out this
section, the Commodity Credit Corporation may issue
guarantees for the repayment of credit made available
for a period of not more than 180 days by a United
States exporter to a buyer in a foreign country.’’;
(2) in subsection (f)—
(A) by striking ‘‘(f) RESTRICTIONS.—The’’
and inserting the following:
‘‘(f) RESTRICTIONS.—
‘‘(1) IN GENERAL.—The’’; and
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(B) by adding at the end the following:
‘‘(2) CRITERIA FOR DETERMINATION.—In mak-
ing the determination required under paragraph (1)
with respect to credit guarantees under subsection (b)
for a country, the Secretary may consider, in addi-
tion to financial, macroeconomic, and monetary indi-
cators—
‘‘(A) whether an International Monetary
Fund standby agreement, Paris Club reschedul-
ing plan, or other economic restructuring plan is
in place with respect to the country;
‘‘(B) the convertibility of the currency of the
country;
‘‘(C) whether the country provides adequate
legal protection for foreign investments;
‘‘(D) whether the country has viable finan-
cial markets;
‘‘(E) whether the country provides adequate
legal protection for the private property rights of
citizens of the country; and
‘‘(F) any other factors that are relevant to
the ability of the country to service the debt of
the country.’’;
(3) by striking subsection (h) and inserting the
following:
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‘‘(h) UNITED STATES AGRICULTURAL COMPONENTS.—
The Commodity Credit Corporation shall finance or guar-
antee under this section only United States agricultural
commodities.’’;
(4) in subsection (i)—
(A) by striking ‘‘INSTITUTIONS.—A finan-
cial’’ and inserting the following: ‘‘INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—A financial’’;
(B) by striking paragraph (1);
(C) by striking ‘‘(2) is’’ and inserting the
following:
‘‘(A) is’’;
(D) by striking ‘‘(3) is’’ and inserting the
following:
‘‘(B) is’’; and
(E) by adding at the end the following:
‘‘(2) THIRD COUNTRY BANKS.—The Commodity
Credit Corporation may guarantee under subsections
(a) and (b) the repayment of credit made available to
finance an export sale irrespective of whether the obli-
gor is located in the country to which the export sale
is destined.’’; and
(5) by striking subsection (k) and inserting the
following:
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‘‘(k) PROCESSED AND HIGH-VALUE PRODUCTS.—
‘‘(1) IN
GENERAL.—In issuing export credit
guarantees under this section, the Commodity Credit
Corporation shall, subject to paragraph (2), ensure
that not less than 25 percent for each of fiscal years
1996 and 1997, 30 percent for each of fiscal years
1998 and 1999, and 35 percent for each of fiscal
years 2000, 2001, and 2002, of the total amount of
credit guarantees issued for a fiscal year is issued to
promote the export of processed or high-value agricul-
tural products and that the balance is issued to pro-
mote the export of bulk or raw agricultural commod-
ities.
‘‘(2) LIMITATION.—The percentage requirement
of paragraph (1) shall apply for a fiscal year to the
extent that a reduction in the total amount of credit
guarantees issued for the fiscal year is not required
to meet the percentage requirement.’’.
(b) FUNDING LEVELS.—Section 211(b) of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5641(b)) is amended—
(1) by striking paragraph (2);
(2) by redesignating subparagraph (B) of para-
graph (1) as paragraph (2) and indenting the margin
of paragraph (2) (as so redesignated) so as to align
with the margin of paragraph (1); and
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(3) by striking paragraph (1) and inserting the
following:
‘‘(1) EXPORT CREDIT GUARANTEES.—The Com-
modity Credit Corporation shall make available for
each of fiscal years 1996 through 2002 not less than
$5,500,000,000 in credit guarantees under subsections
(a) and (b) of section 202.’’.
(c) DEFINITIONS.—Section 102(7) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5602(7)) is amended by strik-
ing subparagraphs (A) and (B) and inserting the following:
‘‘(A) an agricultural commodity or product
entirely produced in the United States; or
‘‘(B) a product of an agricultural commod-
ity—
‘‘(i) 90 percent or more of which by
weight, excluding packaging and water, is
entirely produced in the United States; and
‘‘(ii) that the Secretary determines to
be a high value agricultural product.’’.
(d) REGULATIONS.—Not later than 180 days after the
effective date of this title, the Secretary of Agriculture shall
issue regulations to carry out the amendments made by this
section.
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SEC. 243. MARKET PROMOTION PROGRAM.
Effective October 1, 1995, section 211(c)(1) of the Agri-
cultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amend-
ed—
(1) by striking ‘‘and’’ after ‘‘1991 through
1993,’’; and
(2) by striking ‘‘through 1997,’’ and inserting
‘‘through 1995, and not more than $70,000,000 for
each of fiscal years 1996 through 2002,’’:
Provided, That funds made available under this Act to
carry out the non-generic activities of the market promotion
program established under section 203 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5623) may be used to provide
cost-share assistance only to organizations that are non-for-
eign entities and are recognized as small business concerns
under section 3(a) of the Small Business Act (15 U.S.C.
632(a)) or to the associations described in the first section
of the Act entitled ‘‘An Act to authorize association of pro-
ducers of agricultural products’’, approved February 22,
1922 (7 U.S.C. 291): Provided further, that such funds may
not be used to provide cost-share assistance to a foreign eli-
gible trade organization: Provided further, That none of the
funds made available under this Act may be used to carry
out the market promotion program established under sec-
tion 203 of the Agricultural Trade Act of 1978 (7 U.S.C.
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5623) if the aggregate amount of funds and value of com-
modities under the program exceeds $70,000,000.
SEC. 244. EXPORT ENHANCEMENT PROGRAM.
Effective October 1, 1995, section 301(e)(1) of the Agri-
cultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)) is amend-
ed to read as follows:
‘‘(1) IN GENERAL.—The Commodity Credit Cor-
poration shall make available to carry out the pro-
gram established under this section not more than—
‘‘(A) $350,000,000 for fiscal year 1996;
‘‘(B) $350,000,000 for fiscal year 1997;
‘‘(C) $500,000,000 for fiscal year 1998;
‘‘(D) $550,000,000 for fiscal year 1999;
‘‘(E) $579,000,000 for fiscal year 2000;
‘‘(F) $478,000,000 for fiscal year 2001; and
‘‘(G) $478,000,000 for fiscal year 2002.’’.
SEC. 245. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978 (7
U.S.C. 5662(a)) is amended by striking subsection (a) and
inserting the following:
‘‘(a) ARRIVAL CERTIFICATION.—With respect to a
commodity provided, or for which financing or a credit
guarantee or other assistance is made available, under a
program authorized in section 201, 202, or 301, the Com-
modity Credit Corporation shall require the exporter of the
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commodity to maintain records of an official or customary
commercial nature or other documents as the Secretary may
require, and shall allow representatives of the Commodity
Credit Corporation access to the records or documents as
needed, to verify the arrival of the commodity in the coun-
try that was the intended destination of the commodity.’’.
SEC. 246. COMPLIANCE.
Section 402(a) of the Agricultural Trade Act of 1978
(7 U.S.C. 5662(a)) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as para-
graph (2).
SEC. 247. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978 (7
U.S.C. 5664) is repealed.
SEC. 248. TRADE COMPENSATION AND ASSISTANCE PRO-
GRAMS.
Title IV of the Agricultural Trade Act of 1978 (7
U.S.C. 5661 et seq.) is amended by adding at the end the
following:
‘‘SEC. 417. TRADE COMPENSATION AND ASSISTANCE PRO-
GRAMS.
‘‘(a) IN GENERAL.—Notwithstanding any other law,
if, after the effective date of this section, the President or
any other member of the Executive branch causes exports
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from the United States to any country to be unilaterally
suspended for reasons of national security or foreign policy,
and if within 180 days after the date on which the suspen-
sion is imposed on United States exports no other country
agrees to participate in the suspension, the Secretary shall
carry out a trade compensation and assistance program in
accordance with this section (referred to in this section as
a ‘program’).
‘‘(b) PROVISION OF FUNDS.—Under a program, the
Secretary shall make available for each fiscal year funds
of the Commodity Credit Corporation, in an amount cal-
culated under subsection (c), to promote agricultural ex-
ports or provide agricultural commodities to developing
countries, under any authorities available to the Secretary.
‘‘(c) DETERMINATION OF AMOUNT OF FUNDS.—For
each fiscal year of a program, the amount of funds made
available under subsection (b) shall be equal to 90 percent
of the average annual value of United States agricultural
exports to the country with respect to which exports are sus-
pended during the most recent 3 years prior to the suspen-
sion for which data are available.
‘‘(d) DURATION OF PROGRAM.—
‘‘(1) IN GENERAL.—For each suspension of ex-
ports for which a program is implemented under this
section, funds shall be made available under sub-
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section (b) for each fiscal year or part of a fiscal year
for which the suspension is in effect, but not to exceed
2 fiscal years.
‘‘(2) PARTIAL-YEAR EMBARGOES.—Regardless of
whether an embargo is in effect for only part of a fis-
cal year, the full amount of funds as calculated under
subsection (c) shall be made available under a pro-
gram for the fiscal year. If the Secretary determines
that making the required amount of funds available
in a partial fiscal year is impracticable, the Sec-
retary may make all or part of the funds required to
be made available in the partial fiscal year available
in the following fiscal year (in addition to any funds
otherwise required under a program to be made avail-
able in the following fiscal year).’’.
SEC. 249. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978 (7
U.S.C. 5693) is amended to read as follows:
‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL-
TURAL SERVICE.
‘‘The Service shall assist the Secretary in carrying out
the agricultural trade policy and international cooperation
policy of the United States by—
‘‘(1) acquiring information pertaining to agri-
cultural trade;
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‘‘(2) carrying out market promotion and devel-
opment activities;
‘‘(3) providing agricultural technical assistance
and training; and
‘‘(4) carrying out the programs authorized under
this Act, the Agricultural Trade Development and As-
sistance Act of 1954 (7 U.S.C. 1691 et seq.), and other
Acts.’’.
SEC. 250. REPORTS.
The first sentence of section 603 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5713) is amended by striking
‘‘The’’ and inserting ‘‘Subject to section 217 of the Depart-
ment of Agriculture Reorganization Act of 1994 (7 U.S.C.
6917), the’’.
Subtitle C—Miscellaneous
SEC. 251. REPORTING REQUIREMENTS RELATING TO TO-
BACCO.
Section 214 of the Tobacco Adjustment Act of 1983 (7
U.S.C. 509) is repealed.
SEC. 252. TRIGGERED EXPORT ENHANCEMENT.
(a) READJUSTMENT OF SUPPORT LEVELS.—Section
1302 of the Omnibus Budget Reconciliation Act of 1990
(Public Law 101–508; 7 U.S.C. 1421 note) is repealed.
(b) TRIGGERED MARKETING LOANS AND EXPORT EN-
HANCEMENT.—Section 4301 of the Omnibus Trade and
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Competitiveness Act of 1988 (Public Law 100–418; 7 U.S.C.
1446 note) is repealed.
(c) EFFECTIVE DATE.—The amendments made by this
section shall be effective beginning with the 1996 crops of
wheat, feed grains, upland cotton, and rice.
SEC. 253. DISPOSITION OF COMMODITIES TO PREVENT
WASTE.
Section 416 of the Agricultural Act of 1949 (7 U.S.C.
1431) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by inserting after the
first sentence the following: ‘‘The Secretary may
use funds of the Commodity Credit Corporation
to cover administrative expenses of the pro-
grams.’’;
(B) in paragraph (7)(D)(iv), by striking
‘‘one year of acquisition’’ and all that follows
and inserting the following: ‘‘a reasonable length
of time, as determined by the Secretary, except
that the Secretary may permit the use of pro-
ceeds in a country other than the country of ori-
gin—
‘‘(I) as necessary to expedite the transpor-
tation of commodities and products furnished
under this subsection; or
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‘‘(II) if the proceeds are generated in a cur-
rency generally accepted in the other country.’’;
(C) in paragraph (8), by striking subpara-
graph (C); and
(D) by striking paragraphs (10), (11), and
(12); and
(2) by striking subsection (c).
SEC. 254. DIRECT SALES OF DAIRY PRODUCTS.
Section 106 of the Agriculture and Food Act of 1981
(7 U.S.C. 1446c-1) is repealed.
SEC. 255. EXPORT SALES OF DAIRY PRODUCTS.
Section 1163 of the Food Security Act of 1985 (Public
Law 99–198; 7 U.S.C. 1731 note) is repealed.
SEC. 256. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) IN GENERAL.—Section 1517 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C.
1706) is repealed.
(b) CONFORMING AMENDMENT.—Subsection (e)(3) of
the Food for Progress Act of 1985 (7 U.S.C. 1736o(e)(3))
is amended by striking ‘‘section 106’’ and inserting ‘‘section
103’’.
SEC. 257. POLICY ON EXPANSION OF INTERNATIONAL MAR-
KETS.
Section 1207 of the Agriculture and Food Act of 1981
(7 U.S.C. 1736m) is repealed.
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SEC. 258. POLICY ON MAINTENANCE AND DEVELOPMENT OF
EXPORT MARKETS.
Section 1121 of the Food Security Act of 1985 (7
U.S.C. 1736p) is amended—
(1) by striking subsection (a); and
(2) in subsection (b)—
(A) by striking ‘‘(b)’’; and
(B) by striking paragraphs (1) through (4)
and inserting the following:
‘‘(1) be the premier supplier of agricultural and
food products to world markets and expand exports of
high value products;
‘‘(2) support the principle of free trade and the
promotion of fair trade in agricultural commodities
and products;
‘‘(3) cooperate fully in all efforts to negotiate
with foreign countries further reductions in tariff and
nontariff barriers to trade, including sanitary and
phytosanitary measures and trade-distorting sub-
sidies;
‘‘(4) aggressively counter unfair foreign trade
practices as a means of encouraging fairer trade;’’.
SEC. 259. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7
U.S.C. 1736q) is repealed.
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SEC. 260. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7
U.S.C. 1736r) is amended to read as follows:
‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) on a level playing field, United States pro-
ducers are the most competitive suppliers of agricul-
tural products in the world;
‘‘(2) exports of United States agricultural prod-
ucts will account for $53,000,000,000 in 1995, con-
tributing a net $24,000,000,000 to the merchandise
trade balance of the United States and supporting ap-
proximately 1,000,000 jobs;
‘‘(3) increased agricultural exports are critical to
the future of the farm, rural, and overall United
States economy, but the opportunities for increased
agricultural exports are limited by the unfair sub-
sidies of the competitors of the United States, and a
variety of tariff and nontariff barriers to highly com-
petitive United States agricultural products;
‘‘(4) international negotiations can play a key
role in breaking down barriers to United States agri-
cultural exports;
‘‘(5) the Uruguay Round Agreement on Agri-
culture made significant progress in the attainment of
increased market access opportunities for United
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States exports of agricultural products, for the first
time—
‘‘(A) restraining foreign trade-distorting do-
mestic support and export subsidy programs;
and
‘‘(B) developing common rules for the appli-
cation of sanitary and phytosanitary restric-
tions;
that should result in increased exports of United
States agricultural products, jobs, and income growth
in the United States;
‘‘(6) the Uruguay Round Agreement on Agri-
culture did not succeed in completely eliminating
trade distorting domestic support and export sub-
sidies by—
‘‘(A) allowing the European Union to con-
tinue unreasonable levels of spending on export
subsidies; and
‘‘(B) failing to discipline monopolistic state
trading entities, such as the Canadian Wheat
Board, that use nontransparent and discrimina-
tory pricing as a hidden de facto export subsidy;
‘‘(7) during the period 1996 through 2002, there
will be several opportunities for the United States to
negotiate fairer trade in agricultural products, in-
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cluding further negotiations under the World Trade
Organization, and steps toward possible free trade
agreements of the Americas and Asian-Pacific Eco-
nomic Cooperation (APEC); and
‘‘(8) the United States should aggressively use
these opportunities to achieve more open and fair op-
portunities for trade in agricultural products.
‘‘(b) GOALS OF THE UNITED STATES IN AGRICUL-
TURAL TRADE NEGOTIATIONS.—The objectives of the Unit-
ed States with respect to future negotiations on agricultural
trade include—
‘‘(1) increasing opportunities for United States
exports of agricultural products by eliminating or
substantially reducing tariff and nontariff barriers to
trade;
‘‘(2) leveling the playing field for United States
producers of agricultural products by limiting per
unit domestic production supports to levels that are
no greater than those available in the United States;
‘‘(3) ending the practice of export dumping by
eliminating all trade distorting export subsidies and
disciplining state trading entities so that they do not
(except in cases of bona fide food aid) sell in foreign
markets at below domestic market prices nor their full
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costs of acquiring and delivering agricultural prod-
ucts to the foreign markets; and
‘‘(4) encouraging government policies that avoid
price-depressing surpluses.’’.
SEC. 261. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Public
Law 99–198; 99 Stat. 1499) is repealed.
SEC. 262. AGRICULTURAL AID AND TRADE MISSIONS.
(a) IN GENERAL.—The Agricultural Aid and Trade
Missions Act (7 U.S.C. 1736bb et seq.) is repealed.
(b) CONFORMING AMENDMENT.—Section 7 of Public
Law 100–277 (7 U.S.C. 1736bb note) is repealed.
SEC. 263. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954
(7 U.S.C. 1748(b)(1)(B)) is amended by striking ‘‘including
fruits, vegetables, legumes, popcorn, and ducks’’.
SEC. 264. WORLD LIVESTOCK MARKET PRICE INFORMA-
TION.
Section 1545 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 1761
note) is repealed.
SEC. 265. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956
(7 U.S.C. 1851 and 1857) are repealed.
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SEC. 266. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7 U.S.C.
1852) is repealed.
SEC. 267. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging
Eurasian Democracies and Open Markets Support Act of
1992 (Public Law 102–511; 7 U.S.C. 5621 note) is amended
by striking subsection (d).
SEC. 268. EMERGING MARKETS.
(a) PROMOTION
OF
AGRICULTURAL
EXPORTS
TO
EMERGING MARKETS.—
(1) EMERGING MARKETS.—Section 1542 of the
Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101–624; 7 U.S.C. 5622 note) is
amended—
(A) in the section heading, by striking
‘‘EMERGING
DEMOCRACIES’’ and inserting
‘‘EMERGING MARKETS’’;
(B) by striking ‘‘emerging democracies’’
each place it appears in subsections (b), (d), and
(e) and inserting ‘‘emerging markets’’;
(C) by striking ‘‘emerging democracy’’ each
place it appears in subsection (c) and inserting
‘‘emerging market’’; and
(D) by striking subsection (f) and inserting
the following:
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‘‘(f) EMERGING MARKET.—In this section and section
1543, the term ‘emerging market’ means any country that
the Secretary determines—
‘‘(1) is taking steps toward a market-oriented
economy through the food, agriculture, or rural busi-
ness sectors of the economy of the country; and
‘‘(2) has the potential to provide a viable and
significant market for United States agricultural
commodities or products of United States agricultural
commodities.’’.
(2) FUNDING.—Section 1542 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 is
amended by striking subsection (a) and inserting the
following:
‘‘(a) FUNDING.—The Commodity Credit Corporation
shall make available for fiscal years 1996 through 2002 not
less than $1,000,000,000 of direct credits or export credit
guarantees for exports to emerging markets under section
201 or 202 of the Agricultural Trade Act of 1978 (7 U.S.C.
5621 and 5622), in addition to the amounts acquired or
authorized under section 211 of the Act (7 U.S.C. 5641)
for the program.’’.
(3) AGRICULTURAL
FELLOWSHIP
PROGRAM.—
Section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 is amended—
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(A) in subsection (b), by striking the last
sentence and inserting the following: ‘‘The Com-
modity Credit Corporation shall give priority
under this subsection to—
‘‘(A) projects that encourage the privatization of
the agricultural sector or that benefit private farms or
cooperatives in emerging markets; and
‘‘(B) projects for which nongovernmental persons
agree to assume a relatively larger share of the costs.’’;
and
(B) in subsection (d)—
(i) in the matter preceding paragraph
(1), by striking ‘‘the Soviet Union’’ and in-
serting ‘‘emerging markets’’;
(ii) in paragraph (1)—
(I) in subparagraph (A)(i)—
(aa) by striking ‘‘1995’’ and
inserting ‘‘2002’’; and
(bb) by striking ‘‘those sys-
tems, and identify’’ and inserting
‘‘the systems, including potential
reductions in trade barriers, and
identify and carry out’’;
(II) in subparagraph (B), by
striking ‘‘shall’’ and inserting ‘‘may’’;
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(III) in subparagraph (D), by in-
serting ‘‘(including the establishment of
extension services)’’ after ‘‘technical as-
sistance’’;
(IV) by striking subparagraph
(F);
(V) by redesignating subpara-
graphs (G), (H), and (I) as subpara-
graphs (F), (G), and (H), respectively;
and
(VI) in subparagraph (H) (as re-
designated by subclause (V)), by strik-
ing 
‘‘$10,000,000’’ 
and 
inserting
‘‘$20,000,000’’;
(iii) in paragraph (2)—
(I) by striking ‘‘the Soviet Union’’
each place it appears and inserting
‘‘emerging markets’’;
(II) in subparagraph (A), by
striking ‘‘a free market food production
and distribution system’’ and inserting
‘‘free market food production and dis-
tribution systems’’;
(III) in subparagraph (B)—
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(aa) in clause (i), by striking
‘‘Government’’ 
and 
inserting
‘‘governments’’;
(bb) in clause (iii)(II), by
striking ‘‘and’’ at the end;
(cc) in clause (iii)(III), by
striking the period at the end and
inserting ‘‘; and’’; and
(dd) by adding at the end of
clause (iii) the following:
‘‘(IV) to provide for the exchange
of administrators and faculty members
from agricultural and other institu-
tions to strengthen and revise edu-
cational programs in agricultural eco-
nomics, agribusiness, and agrarian
law, to support change towards a free
market economy in emerging mar-
kets.’’;
(IV) by striking subparagraph
(D); and
(V) by redesignating subpara-
graph (E) as subparagraph (D); and
(iv) by striking paragraph (3).
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(4) UNITED
STATES
AGRICULTURAL
COMMOD-
ITY.—Subsections (b) and (c) of section 1542 of the
Food, Agriculture, Conservation, and Trade Act of
1990 are amended by striking ‘‘section 101(6)’’ each
place it appears and inserting ‘‘section 102(7)’’.
(5) REPORT.—The first sentence of section
1542(e)(2) of the Food, Agriculture, Conservation,
and Trade Act of 1990 is amended by striking ‘‘Not’’
and inserting ‘‘Subject to section 217 of the Depart-
ment of Agriculture Reorganization Act of 1994 (7
U.S.C. 6917), not’’.
(b) AGRICULTURAL FELLOWSHIP PROGRAM FOR MID-
DLE INCOME COUNTRIES, EMERGING DEMOCRACIES, AND
EMERGING MARKETS.—Section 1543 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C.
3293) is amended—
(1) in the section heading, by striking ‘‘MIDDLE
INCOME
COUNTRIES
AND
EMERGING
DEMOC-
RACIES’’ and inserting ‘‘MIDDLE INCOME COUN-
TRIES, EMERGING DEMOCRACIES, AND EMERG-
ING MARKETS’’;
(2) in subsection (b), by adding at the end the
following:
‘‘(5) EMERGING MARKET.—Any emerging mar-
ket, as defined in section 1542(f).’’; and
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(3) in subsection (c)(1), by striking ‘‘food needs’’
and inserting ‘‘food and fiber needs’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 501 of the Agricultural Trade Devel-
opment and Assistance Act of 1954 (7 U.S.C. 1737)
is amended—
(A) in subsection (a), by striking ‘‘emerging
democracies’’ and inserting ‘‘emerging markets’’;
and
(B) in subsection (b), by striking paragraph
(1) and inserting the following:
‘‘(1) EMERGING MARKET.—The term ‘emerging
market’ means any country that the Secretary deter-
mines—
‘‘(A) is taking steps toward a market-ori-
ented economy through the food, agriculture, or
rural business sectors of the economy of the coun-
try; and
‘‘(B) has the potential to provide a viable
and significant market for United States agri-
cultural commodities or products of United
States agricultural commodities.’’.
(2) Section 201(d)(1)(C)(ii) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is
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amended by striking ‘‘emerging democracies’’ and in-
serting ‘‘emerging markets’’.
(3) Section 202(d)(3)(B) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is
amended by striking ‘‘emerging democracies’’ and in-
serting ‘‘emerging markets’’.
SEC. 269. IMPORT ASSISTANCE FOR CBI BENEFICIARY
COUNTRIES AND THE PHILIPPINES.
Section 583 of Public Law 100–202 (101 Stat. 1329–
182) is repealed.
SEC. 270. STUDIES, REPORTS, AND OTHER PROVISIONS.
(a) IN GENERAL.—Sections 1551 through 1555, section
1559, and section 1560 of subtitle E of title XV of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Public
Law 101–624; 104 Stat. 3696) are repealed.
(b) LANGUAGE PROFICIENCY.—Section 1556 of the
Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101–624; 7 U.S.C. 5694 note) is amended by
striking subsection (c).
SEC. 271. IMPLEMENTATION OF COMMITMENTS UNDER
URUGUAY ROUND AGREEMENTS.
Part III of subtitle A of title IV of the Uruguay Round
Agreements Act (Public Law 103–465; 108 Stat. 4964) is
amended by adding at the end the following:
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‘‘SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER
URUGUAY ROUND AGREEMENTS.
‘‘Not later than September 30 of each fiscal year, the
Secretary of Agriculture shall determine whether the obliga-
tions undertaken by foreign countries under the Uruguay
Round Agreement on Agriculture are being fully imple-
mented. If the Secretary of Agriculture determines that any
foreign country, by not implementing the obligations of the
country, is significantly constraining an opportunity for
United States agricultural exports, the Secretary shall—
‘‘(1) submit to the United States Trade Rep-
resentative a recommendation as to whether the Presi-
dent should take action under any provision of law;
and
‘‘(2) transmit a copy of the recommendation to
the Committee on Agriculture, and the Committee on
Ways and Means, of the House of Representatives and
the Committee on Agriculture, Nutrition, and For-
estry, and the Committee on Finance, of the Senate.’’.
SEC. 272. SENSE OF CONGRESS CONCERNING MULTILAT-
ERAL DISCIPLINES ON CREDIT GUARANTEES.
It is the sense of Congress that—
(1) in negotiations to establish multilateral dis-
ciplines on agricultural export credits and credit
guarantees, the United States should not agree to any
arrangement that is incompatible with the provisions
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of United States law that authorize agricultural ex-
port credits and credit guarantees;
(2) in the negotiations (which are held under the
auspices of the Organization for Economic Coopera-
tion and Development), the United States should not
reach any agreement that fails to impose disciplines
on the practices of foreign government trading entities
such as the Australian Wheat Board and Canadian
Wheat Board; and
(3) the disciplines should include greater open-
ness in the operations of the entities as long as the
entities are subsidized by the foreign government or
have monopolies for exports of a commodity that are
sanctioned by the foreign government.
SEC. 273. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601
et seq.) is amended by adding at the end the following:
‘‘TITLE 
VII—FOREIGN 
MARKET
DEVELOPMENT COOPERATOR
PROGRAM
‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZA-
TION.
‘‘In this title, the term ‘eligible trade organization’
means a United States trade organization that—
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‘‘(1) promotes the export of 1 or more United
States agricultural commodities or products; and
‘‘(2) does not have a business interest in or re-
ceive remuneration from specific sales of agricultural
commodities or products.
‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall establish and,
in cooperation with eligible trade organizations, carry out
a foreign market development cooperator program to main-
tain and develop foreign markets for United States agricul-
tural commodities and products.
‘‘(b) ADMINISTRATION.—Funds made available to
carry out this title shall be used only to provide—
‘‘(1) cost-share assistance to an eligible trade or-
ganization under a contract or agreement with the or-
ganization; and
‘‘(2) assistance for other costs that are necessary
or appropriate to carry out the foreign market devel-
opment cooperator program, including contingent li-
abilities that are not otherwise funded.
‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title such sums as may be necessary for each of fiscal
years 1996 through 2002.’’.
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SEC. 274. PRICE SUPPORT FOR RICE.
Section 101 of the Agricultural Act of 1949 is amended
by adding a subsection (e) that reads as follows:
‘‘(e) RICE.—The Secretary shall make available to pro-
ducers of each crop of rice on a farm price support at a
level that is not less than 50%, or more than 90% of the
parity price for rice as the Secretary determines will not
result in increasing stocks of rice to the Commodity Credit
Corporation.’’.
TITLE III—CONSERVATION
Subtitle A—Definitions
SEC. 301. DEFINITIONS.
Section 1201(a) of the Food Security Act of 1985 (16
U.S.C. 3801(a)) is amended—
(1) by redesignating paragraphs (3) through (16)
as paragraphs (4) through (17), respectively; and
(2) by inserting after paragraph (2) the follow-
ing:
‘‘(3) CONSERVATION
SYSTEM.—The term ‘con-
servation system’ means the conservation measures
and practices that are approved for application by a
producer to a highly erodible field and that provide
for cost effective and practical erosion reduction on
the field based on local resource conditions and stand-
ards contained in the Natural Resources Conservation
Service field office technical guide.’’.
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Subtitle 
B—Environmental 
Con-
servation Acreage Reserve Pro-
gram
SEC. 311. ENVIRONMENTAL CONSERVATION ACREAGE RE-
SERVE PROGRAM.
Section 1230 of the Food Security Act of 1985 (16
U.S.C. 3830) is amended to read as follows:
‘‘SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RE-
SERVE PROGRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—During the 1996 through
2002 calendar years, the Secretary shall establish an
environmental conservation acreage reserve program
(referred to in this section as ‘ECARP’) to be imple-
mented through contracts and the acquisition of ease-
ments to assist owners and operators of farms and
ranches to conserve and enhance soil, water, and re-
lated natural resources, including grazing land, wet-
land, and wildlife habitat.
‘‘(2) MEANS.—The Secretary shall carry out the
ECARP by—
‘‘(A) providing for the long-term protection
of environmentally sensitive land; and
‘‘(B) providing technical and financial as-
sistance to farmers and ranchers to—
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‘‘(i) improve the management and op-
eration of the farms and ranches; and
‘‘(ii) reconcile productivity and profit-
ability with protection and enhancement of
the environment.
‘‘(3) PROGRAMS.—The ECARP shall consist of—
‘‘(A) the conservation reserve program es-
tablished under subchapter B;
‘‘(B) the wetlands reserve program estab-
lished under subchapter C;
‘‘(C) the environmental quality incentives
program established under chapter 4; and
‘‘(D) a farmland protection program under
which the Secretary shall use funds of the Com-
modity Credit Corporation for the purchase of
conservation easements or other interests in not
less than 170,000, nor more than 340,000, acres
of land with prime, unique, or other productive
soil that is subject to a pending offer from a
State or local government for the purpose of pro-
tecting topsoil by limiting nonagricultural uses
of the land, except that any highly erodible crop-
land shall be subject to the requirements of a
conservation plan, including, if required by the
Secretary, the conversion of the land to less in-
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tensive uses. In no case shall total expenditures
of funding from the Commodity Credit Corpora-
tion exceed a total of $35,000,000 over the first
3 and subsequent fiscal years.
‘‘(b) ADMINISTRATION.—
‘‘(1) IN GENERAL.—In carrying out the ECARP,
the Secretary shall enter into contracts with owners
and operators and acquire interests in land through
easements from owners, as provided in this chapter
and chapter 4.
‘‘(2) PRIOR ENROLLMENTS.—Acreage enrolled in
the conservation reserve or wetlands reserve program
prior to the effective date of this paragraph shall be
considered to be placed into the ECARP.
‘‘(c) CONSERVATION PRIORITY AREAS.—
‘‘(1) DESIGNATION.—
‘‘(A) IN
GENERAL.—The Secretary shall
designate watersheds or regions of special envi-
ronmental sensitivity, including the Chesapeake
Bay Region (consisting of Pennsylvania, Mary-
land, and Virginia), the Great Lakes Region, the
Rainwater Basin Region, the Lake Champlain
Basin, the Prairie Pothole Region, and the Long
Island Sound Region, as conservation priority
areas that are eligible for enhanced assistance
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through the programs established under this
chapter and chapter 4.
‘‘(B) APPLICATION.—A designation shall be
made under this paragraph if agricultural prac-
tices on land within the watershed or region pose
a significant threat to soil, water, and related
natural resources, as determined by the Sec-
retary, and an application is made by—
‘‘(i) a State agency in consultation
with the State technical committee estab-
lished under section 1261; or
‘‘(ii) State agencies from several States
that agree to form an interstate conserva-
tion priority area.
‘‘(C) ASSISTANCE.—The Secretary shall des-
ignate a watershed or region of special environ-
mental sensitivity as a conservation priority
area to assist, to the maximum extent prac-
ticable, agricultural producers within the water-
shed or region to comply with nonpoint source
pollution requirements under the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.)
and other Federal and State environmental laws.
‘‘(2) APPLICABILITY.—The Secretary shall des-
ignate a watershed or region of special environmental
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sensitivity as a conservation priority area in a man-
ner that conforms, to the maximum extent prac-
ticable, to the functions and purposes of the conserva-
tion reserve, wetlands reserve, and environmental
quality incentives programs, as applicable, if partici-
pation in the program or programs is likely to result
in the resolution or amelioration of significant soil,
water, and related natural resource problems related
to agricultural production activities within the water-
shed or region.
‘‘(3) TERMINATION.—A conservation priority
area designation shall terminate on the date that is
5 years after the date of the designation, except that
the Secretary may—
‘‘(A) redesignate the area as a conservation
priority area; or
‘‘(B) withdraw the designation of a water-
shed or region if the Secretary determines the
area is no longer affected by significant
soil,water, and related natural resource impacts
related to agricultural production activities.’’.
SEC. 312. CONSERVATION RESERVE PROGRAM.
(a) IN GENERAL.—Section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) is amended—
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(1) by striking ‘‘1995’’ each place it appears and
inserting ‘‘2002’’; and
(2) in subsection (d), by striking ‘‘38,000,000’’
and inserting ‘‘36,520,000’’.
(b) DUTIES OF OWNERS AND OPERATORS.—Section
1232(c) of the Food Security Act of 1985 (16 U.S.C.
3832(c)) is amended by striking ‘‘1995’’ and inserting
‘‘2002’’.
(c) RELATIONSHIP TO OTHER LAW.—The authority
granted to the Secretary of Agriculture as a result of the
amendments made by this section shall supersede any re-
striction on the operation of the conservation reserve pro-
gram established under any other provision of law.
SEC. 313. WETLANDS RESERVE PROGRAM.
(a) PURPOSES.—Section 1237(a) of the Food Security
Act of 1985 (16 U.S.C. 3837(a)) is amended by striking
‘‘to assist owners of eligible lands in restoring and protect-
ing wetlands’’ and inserting ‘‘to protect wetlands for pur-
poses of enhancing water quality and providing wildlife
benefits while recognizing landowner rights’’.
(b) ENROLLMENT.—Section 1237 of the Food Security
Act of 1985 (16 U.S.C. 3837) is amended by striking sub-
section (b) and inserting the following:
‘‘(b) MINIMUM ENROLLMENT.—The Secretary shall en-
roll into the wetlands reserve program—
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‘‘(1) during the 1996 through 2002 calendar
years, a total of not more than 975,000 acres; and
‘‘(2) beginning with offers accepted by the Sec-
retary during calendar year 1997, to the maximum
extent practicable, 1⁄3 of the acres in permanent ease-
ments, 1⁄3 of the acres in 30-year easements, and 1⁄3
of the acres in restoration cost-share agreements.’’.
(c) ELIGIBILITY.—Section 1237(c) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837(c)) is amended—
(1) by striking ‘‘2000’’ and inserting ‘‘2002’’;
and
(2) by inserting ‘‘the land maximizes wildlife
benefits and wetland values and functions and’’ after
‘‘determines that’’.
(d) OTHER ELIGIBLE LANDS.—Section 1237(d) (16
U.S.C. 3837(d)) is amended by inserting after ‘‘subsection
(c)’’ the following ‘‘, land that maximizes wildlife benefits
and that is’’.
(e) EASEMENTS.—Section 1237A of the Food Security
Act of 1985 (16 U.S.C. 3837a) is amended—
(1) in the section heading, by inserting before the
period at the end the following: ‘‘AND
AGREE-
MENTS’’;
(2) by striking subsection (c) and inserting the
following:
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‘‘(c) RESTORATION PLANS.—The development of a res-
toration plan, including any compatible use, under this sec-
tion shall be made through the local Natural Resources Con-
servation Service representative, in consultation with the
State technical committee.’’;
(3) in subsection (f), by striking the third sen-
tence and inserting the following: ‘‘Compensation
may be provided in not less than 5, nor more than
30, annual payments of equal or unequal size, as
agreed to by the owner and the Secretary.’’; and
(4) by adding at the end the following:
‘‘(h) COST SHARE AGREEMENTS.—The Secretary may
enroll land into the wetland reserve through agreements that
require the landowner to restore wetlands on the land, if
the agreement does not provide the Secretary with an ease-
ment.’’.
(f) COST SHARE AND TECHNICAL ASSISTANCE.—Sec-
tion 1237C of the Food Security Act of 1985 (16 U.S.C.
3837c) is amended by striking subsection (b) and inserting
the following:
‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—In
the case of an easement entered into during the 1996
through 2002 calendar years, in making cost share pay-
ments under subsection (a)(1), the Secretary shall—
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‘‘(1) in the case of a permanent easement, pay
the owner an amount that is not less than 75 percent,
but not more than 100 percent, of the eligible costs;
‘‘(2) in the case of a 30-year easement or a cost-
share agreement, pay the owner an amount that is
not less than 50 percent, but not more than 75 per-
cent, of the eligible costs; and
‘‘(3) provide owners technical assistance to assist
landowners in complying with the terms of easements
and agreements.’’.
SEC. 314. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM.
Subtitle D of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.) is amended by adding at the end
the following:
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM
‘‘SEC. 1238. FINDINGS AND PURPOSES.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) farmers and ranchers cumulatively manage
more than 1⁄2 of the private lands in the continental
United States;
‘‘(2) because of the predominance of agriculture,
the soil, water, and related natural resources of the
United States cannot be protected without cooperative
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relationships between the Federal Government and
farmers and ranchers;
‘‘(3) farmers and ranchers have made tremen-
dous progress in protecting the environment and the
agricultural resource base of the United States over
the past decade because of not only Federal Govern-
ment programs but also their spirit of stewardship
and the adoption of effective technologies;
‘‘(4) it is in the interest of the entire United
States that farmers and ranchers continue to strive to
preserve soil resources and make more efforts to pro-
tect water quality and wildlife habitat, and address
other broad environmental concerns;
‘‘(5) environmental strategies that stress the pru-
dent management of resources, as opposed to idling
land, will permit the maximum economic opportuni-
ties for farmers and ranchers in the future;
‘‘(6) unnecessary bureaucratic and paperwork
barriers associated with existing agricultural con-
servation assistance programs decrease the potential
effectiveness of the programs; and
‘‘(7) the recent trend of Federal spending on ag-
ricultural conservation programs suggests that assist-
ance to farmers and ranchers in future years will, ab-
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sent changes in policy, dwindle to perilously low lev-
els.
‘‘(b) PURPOSES.—The purposes of the environmental
quality incentives program established by this chapter are
to—
‘‘(1) combine into a single program the functions
of—
‘‘(A) the agricultural conservation program
authorized by sections 7 and 8 of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C.
590g and 590h) (as in effect before the amend-
ments made by section 355(a)(1) of the Agricul-
tural Reform and Improvement Act of 1996);
‘‘(B) the Great Plains conservation program
established under section 16(b) of the Soil Con-
servation and Domestic Allotment Act (16 U.S.C.
590p(b)) (as in effect before the amendment
made by section 355(b)(1) of the Agricultural
Reform and Improvement Act of 1996); and
‘‘(C) the water quality incentives program
established under chapter 2 (as in effect before
the amendment made by section 355(k) of the
Agricultural Reform and Improvement Act of
1996); and
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‘‘(C) the Colorado River Basin salinity con-
trol program established under section 202(c) of
the Colorado River Basin Salinity Control Act
(43 U.S.C. 1592(c)) (as in effect before the
amendment made by section 355(c)(1) of the Ag-
ricultural Reform and Improvement Act of
1996); and
‘‘(2) carry out the single program in a manner
that maximizes environmental benefits per dollar ex-
pended, and that provides—
‘‘(A) flexible technical and financial assist-
ance to farmers and ranchers that face the most
serious threats to soil, water, and related natural
resources, including grazing lands, wetlands, and
wildlife habitat;
‘‘(B) assistance to farmers and ranchers in
complying with this title and Federal and State
environmental laws, and to encourage environ-
mental enhancement;
‘‘(C) assistance to farmers and ranchers in
making beneficial, cost-effective changes to crop-
ping systems, grazing management, manure, nu-
trient, pest, or irrigation management, land
uses, or other measures needed to conserve and
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improve soil, water, and related natural re-
sources; and
‘‘(D) for the consolidation and simplifica-
tion of the conservation planning process to re-
duce administrative burdens on the owners and
operators of farms and ranches.
‘‘SEC. 1238A. DEFINITIONS.
‘‘In this chapter:
‘‘(1) LAND MANAGEMENT PRACTICE.—The term
‘land management practice’ means nutrient or ma-
nure management, integrated pest management, irri-
gation management, tillage or residue management,
grazing management, or another land management
practice the Secretary determines is needed to protect
soil, water, or related resources in the most cost effec-
tive manner.
‘‘(2) LARGE CONFINED LIVESTOCK OPERATION.—
The term ‘large confined livestock operation’ means a
farm or ranch that—
‘‘(A) is a confined animal feeding oper-
ation; and
‘‘(B) has more than—
‘‘(i) 700 mature dairy cattle;
‘‘(ii) 1,000 beef cattle;
‘‘(iii) 100,000 laying hens or broilers;
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‘‘(iv) 55,000 turkeys;
‘‘(v) 2,500 swine; or
‘‘(vi) 10,000 sheep or lambs.
‘‘(3) LIVESTOCK.—The term ‘livestock’ means
mature dairy cows, beef cattle, laying hens, broilers,
turkeys, swine, sheep, or lambs.
‘‘(4) OPERATOR.—The term ‘operator’ means a
person who is engaged in crop or livestock production
(as defined by the Secretary).
‘‘(5) STRUCTURAL PRACTICE.—The term ‘struc-
tural practice’ means the establishment of an animal
waste management facility, terrace, grassed water-
way, contour grass strip, filterstrip, permanent wild-
life habitat, or another structural practice that the
Secretary determines is needed to protect soil, water,
or related resources in the most cost effective manner.
‘‘SEC. 1238B. ESTABLISHMENT AND ADMINISTRATION OF
ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—During the 1996 through
2002 fiscal years, the Secretary shall provide tech-
nical assistance, cost-sharing payments, and incentive
payments, education to operators, who enter into con-
tracts with the Secretary, through an environmental
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quality incentives program in accordance with this
chapter.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—An opera-
tor who implements a structural practice shall be
eligible for technical assistance or cost-sharing
payments, education or both.
‘‘(B) LAND MANAGEMENT PRACTICES.—An
operator who performs a land management prac-
tice shall be eligible for technical assistance or
incentive payments, education or both.
‘‘(b) APPLICATION AND TERM.—A contract between an
operator and the Secretary under this chapter may—
‘‘(1) apply to 1 or more structural practices or
1 or more land management practices, or both; and
‘‘(2) have a term of not less than 5, nor more
than 10, years, as determined appropriate by the Sec-
retary, depending on the practice or practices that are
the basis of the contract.
‘‘(c) STRUCTURAL PRACTICES.—
‘‘(1) COMPETITIVE OFFER.—The Secretary shall
administer a competitive offer system for operators
proposing to receive cost-sharing payments in ex-
change for the implementation of 1 or more structural
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practices by the operator. The competitive offer system
shall consist of—
‘‘(A) the submission of a competitive offer
by the operator in such manner as the Secretary
may prescribe; and
‘‘(B) evaluation of the offer in light of the
priorities established in section 1238C and the
projected cost of the proposal, as determined by
the Secretary.
‘‘(2) CONCURRENCE OF OWNER.—If the operator
making an offer to implement a structural practice is
a tenant of the land involved in agricultural produc-
tion, for the offer to be acceptable, the operator shall
obtain the concurrence of the owner of the land with
respect to the offer.
‘‘(d) LAND MANAGEMENT PRACTICES.—The Secretary
shall establish an application and evaluation process for
awarding technical assistance or incentive payments, or
both, to an operator in exchange for the performance of 1
or more land management practices by the operator.
‘‘(e) COST-SHARING AND INCENTIVE PAYMENTS.—
‘‘(1) COST-SHARING PAYMENTS.—
‘‘(A) IN GENERAL.—The Federal share of
cost-sharing payments to an operator proposing
to implement 1 or more structural practices shall
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not be more than 75 percent of the projected cost
of the practice, as determined by the Secretary,
taking into consideration any payment received
by the operator from a State or local govern-
ment.
‘‘(B) LIMITATION.—An operator of a large
confined livestock operation shall not be eligible
for cost-sharing payments to construct an ani-
mal waste management facility.
‘‘(C) OTHER PAYMENTS.—An operator shall
not be eligible for cost-sharing payments for
structural practices on eligible land under this
chapter if the operator receives cost-sharing pay-
ments or other benefits for the same land under
chapter 1 or 3.
‘‘(2) INCENTIVE PAYMENTS.—The Secretary shall
make incentive payments in an amount and at a rate
determined by the Secretary to be necessary to encour-
age an operator to perform 1 or more land manage-
ment practices.
‘‘(f) TECHNICAL ASSISTANCE.—
‘‘(1) FUNDING.—The Secretary shall allocate
funding under this chapter for the provision of tech-
nical assistance according to the purpose and pro-
jected cost for which the technical assistance is pro-
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vided in a fiscal year. The allocated amount may
vary according to the type of expertise required,
quantity of time involved, and other factors as deter-
mined appropriate by the Secretary. Funding shall
not exceed the projected cost to the Secretary of the
technical assistance provided in a fiscal year.
‘‘(2) OTHER AUTHORITIES.—The receipt of tech-
nical assistance under this chapter shall not affect the
eligibility of the operator to receive technical assist-
ance under other authorities of law available to the
Secretary.
‘‘(g) MODIFICATION
OR
TERMINATION
OF
CON-
TRACTS.—
‘‘(1) VOLUNTARY
MODIFICATION
OR
TERMI-
NATION.—The Secretary may modify or terminate a
contract entered into with an operator under this
chapter if—
‘‘(A) the operator agrees to the modification
or termination; and
‘‘(B) the Secretary determines that the
modification or termination is in the public in-
terest.
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under this chapter
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if the Secretary determines that the operator violated
the contract.
‘‘(h) NON-FEDERAL ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary may request
the services of a State water quality agency, State
fish and wildlife agency, State forestry agency, or any
other governmental or private resource considered ap-
propriate to assist in providing the technical assist-
ance necessary for the development and implementa-
tion of a structural practice or land management
practice.
‘‘(2) LIMITATION ON LIABILITY.—No person shall
be permitted to bring or pursue any claim or action
against any official or entity based on or resulting
from any technical assistance provided to an operator
under this chapter to assist in complying with a Fed-
eral or State environmental law.
‘‘SEC. 1238C. EVALUATION OF OFFERS AND PAYMENTS.
‘‘(a) REGIONAL PRIORITIES.—The Secretary shall pro-
vide technical assistance, cost-sharing payments, and incen-
tive payments to operators in a region, watershed, or con-
servation priority area under this chapter based on the sig-
nificance of the soil, water, and related natural resource
problems in the region, watershed, or area, and the struc-
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tural practices or land management practices that best ad-
dress the problems, as determined by the Secretary.
‘‘(b) MAXIMIZATION OF ENVIRONMENTAL BENEFITS.—
‘‘(1) IN GENERAL.—In providing technical as-
sistance, cost-sharing payments, and incentive pay-
ments to operators in regions, watersheds, or con-
servation priority areas under this chapter, the Sec-
retary shall accord a higher priority to assistance and
payments that maximize environmental benefits per
dollar expended.
‘‘(2) NATIONAL AND REGIONAL PRIORITY.—The
prioritization shall be done nationally as well as
within the conservation priority area, region, or wa-
tershed in which an agricultural operation is located.
‘‘(3) CRITERIA.—To carry out this subsection,
the Secretary shall establish criteria for implementing
structural practices and land management practices
that best achieve conservation goals for a region, wa-
tershed, or conservation priority area, as determined
by the Secretary.
‘‘(c) STATE
OR LOCAL CONTRIBUTIONS.—The Sec-
retary shall accord a higher priority to operators whose ag-
ricultural operations are located within watersheds, regions,
or conservation priority areas in which State or local gov-
ernments have provided, or will provide, financial or tech-
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nical assistance to the operators for the same conservation
or environmental purposes.
‘‘(d) PRIORITY LANDS.—The Secretary shall accord a
higher priority to structural practices or land management
practices on lands on which agricultural production has
been determined to contribute to, or create, the potential
for failure to meet applicable water quality standards or
other environmental objectives of a Federal or State law.
‘‘SEC. 1238D. DUTIES OF OPERATORS.
‘‘To receive technical assistance, cost-sharing pay-
ments, or incentives payments under this chapter, an opera-
tor shall agree—
‘‘(1) to implement an environmental quality in-
centives program plan that describes conservation and
environmental goals to be achieved through a struc-
tural practice or land management practice, or both,
that is approved by the Secretary;
‘‘(2) not to conduct any practices on the farm or
ranch that would tend to defeat the purposes of this
chapter;
‘‘(3) on the violation of a term or condition of
the contract at any time the operator has control of
the land, to refund any cost-sharing or incentive pay-
ment received with interest, and forfeit any future
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payments under this chapter, as determined by the
Secretary;
‘‘(4) on the transfer of the right and interest of
the operator in land subject to the contract, unless the
transferee of the right and interest agrees with the
Secretary to assume all obligations of the contract, to
refund all cost-sharing payments and incentive pay-
ments received under this chapter, as determined by
the Secretary;
‘‘(5) to supply information as required by the
Secretary to determine compliance with the environ-
mental quality incentives program plan and require-
ments of the program; and
‘‘(6) to comply with such additional provisions
as the Secretary determines are necessary to carry out
the environmental quality incentives program plan.
‘‘SEC. 1238E. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM PLAN.
‘‘An environmental quality incentives program plan
shall include (as determined by the Secretary)—
‘‘(1) a description of the prevailing farm or
ranch enterprises, cropping patterns, grazing man-
agement, cultural practices, or other information that
may be relevant to conserving and enhancing soil,
water, and related natural resources;
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‘‘(2) a description of relevant farm or ranch re-
sources, including soil characteristics, rangeland types
and condition, proximity to water bodies, wildlife
habitat, or other relevant characteristics of the farm
or ranch related to the conservation and environ-
mental objectives set forth in the plan;
‘‘(3) a description of specific conservation and
environmental objectives to be achieved;
‘‘(4) to the extent practicable, specific, quan-
titative goals for achieving the conservation and envi-
ronmental objectives;
‘‘(5) a description of 1 or more structural prac-
tices or 1 or more land management practices, or
both, to be implemented to achieve the conservation
and environmental objectives;
‘‘(6) a description of the timing and sequence for
implementing the structural practices or land man-
agement practices, or both, that will assist the opera-
tor in complying with Federal and State environ-
mental laws; and
‘‘(7) information that will enable evaluation of
the effectiveness of the plan in achieving the conserva-
tion and environmental objectives, and that will en-
able evaluation of the degree to which the plan has
been implemented.
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‘‘(8) Not withstanding any provision of law, the
Secretary shall ensure that the process of writing, de-
veloping, and assisting in the implementation of
plans required in the programs established under this
title be open to individuals in agribusiness including
but not limited to agricultural producers, representa-
tives from agricultural cooperatives, agricultural
input retail dealers, and certified crop advisers. This
process shall be included in but not limited to pro-
grams and plans established under this title and any
other Department program using incentive, technical
assistance, cost-share or pilot project programs that
require plans.
‘‘SEC. 1238F. DUTIES OF THE SECRETARY.
‘‘To the extent appropriate, the Secretary shall assist
an operator in achieving the conservation and environ-
mental goals of an environmental quality incentives pro-
gram plan by—
‘‘(1) providing an eligibility assessment of the
farming or ranching operation of the operator as a
basis for developing the plan;
‘‘(2) providing technical assistance in developing
and implementing the plan;
‘‘(3) providing technical assistance, cost-sharing
payments, or incentive payments for developing and
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implementing 1 or more structural practices or 1 or
more land management practices, as appropriate;
‘‘(4) providing the operator with information,
education, and training to aid in implementation of
the plan; and
‘‘(5) encouraging the operator to obtain technical
assistance, cost-sharing payments, or grants from
other Federal, State, local, or private sources.
‘‘SEC. 1238G. ELIGIBLE LANDS.
‘‘Agricultural land on which a structural practice or
land management practice, or both, shall be eligible for tech-
nical assistance, cost-sharing payments, or incentive pay-
ments under this chapter include—
‘‘(1) agricultural land (including cropland,
rangeland, pasture, and other land on which crops or
livestock are produced) that the Secretary determines
poses a serious threat to soil, water, or related re-
sources by reason of the soil types, terrain, climatic,
soil, topographic, flood, or saline characteristics, or
other factors or natural hazards;
‘‘(2) an area that is considered to be critical ag-
ricultural land on which either crop or livestock pro-
duction is carried out, as identified in a plan submit-
ted by the State under section 319 of the Federal
Water Pollution Control Act (33 U.S.C. 1329) as hav-
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ing priority problems that result from an agricultural
nonpoint source of pollution;
‘‘(3) an area recommended by a State lead agen-
cy for protection of soil, water, and related resources,
as designated by a Governor of a State; and
‘‘(4) land that is not located within a designated
or approved area, but that if permitted to continue to
be operated under existing management practices,
would defeat the purpose of the environmental quality
incentives program, as determined by the Secretary.
‘‘SEC. 1238H. LIMITATIONS ON PAYMENTS.
‘‘(a) PAYMENTS.—The total amount of cost-sharing
and incentive payments paid to a person under this chapter
may not exceed—
‘‘(1) $10,000 for any fiscal year; or
‘‘(2) $50,000 for any multiyear contract.
‘‘(b) REGULATIONS.—The Secretary shall issue regula-
tions that are consistent with section 1001 for the purpose
of—
‘‘(1) defining the term ‘person’ as used in sub-
section (a); and
‘‘(2) prescribing such rules as the Secretary de-
termines necessary to ensure a fair and reasonable
application of the limitations contained in subsection
(a).’’.
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Subtitle C—Conservation Funding
SEC. 321. CONSERVATION FUNDING.
(a) IN GENERAL.—Subtitle E of title XII of the Food
Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended
to read as follows:
‘‘Subtitle E—Funding
‘‘SEC. 1241. FUNDING.
‘‘(a) MANDATORY EXPENSES.—For each of fiscal years
1996 through 2002, the Secretary shall use the funds of the
Commodity Credit Corporation to carry out the programs
authorized by—
‘‘(1) subchapter B of chapter 1 of subtitle D (in-
cluding contracts extended by the Secretary pursuant
to section 1437 of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (Public Law 101–624; 16
U.S.C. 3831 note));
‘‘(2) subchapter C of chapter 1 of subtitle D; and
‘‘(3) chapter 4 of subtitle D.
‘‘(b) ENVIRONMENTAL
QUALITY
INCENTIVES
PRO-
GRAM.—
‘‘(1) IN GENERAL.—For each of fiscal years 1996
through 2002, $200,000,000 of the funds of the Com-
modity Credit Corporation shall be available for pro-
viding technical assistance, cost-sharing payments,
and incentive payments under the environmental
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quality incentives program under chapter 4 of subtitle
D.
‘‘(2) LIVESTOCK PRODUCTION.—For each of fis-
cal years 1996 through 2002, 50 percent of the fund-
ing available for technical assistance, cost-sharing
payments, and incentive payments under the environ-
mental quality incentives program shall be targeted
at practices relating to livestock production.
‘‘(c) ADVANCE APPROPRIATIONS TO CCC.—The Sec-
retary may use the funds of the Commodity Credit Corpora-
tion to carry out chapter 3 of subtitle D, except that the
Secretary may not use the funds of the Corporation unless
the Corporation has received funds to cover the expenditures
from appropriations made available to carry out chapter
3 of subtitle D.
‘‘SEC. 1242. ADMINISTRATION.
‘‘(a) PLANS.—The Secretary shall, to the extent prac-
ticable, avoid duplication in—
‘‘(1) the conservation plans required for—
‘‘(A) highly erodible land conservation
under subtitle B;
‘‘(B) the conservation reserve program es-
tablished under subchapter B of chapter 1 of sub-
title D; and
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‘‘(C) the wetlands reserve program estab-
lished under subchapter C of chapter 1 of subtitle
D; and
‘‘(2) the environmental quality incentives pro-
gram established under chapter 4 of subtitle D.
‘‘(b) ACREAGE LIMITATION.—
‘‘(1) IN GENERAL.—The Secretary shall not en-
roll more than 25 percent of the cropland in any
county in the programs administered under the con-
servation reserve and wetlands reserve programs es-
tablished under subchapters B and C, respectively, of
chapter 1 of subtitle D. Not more than 10 percent of
the cropland in a county may be subject to an ease-
ment acquired under the subchapters.
‘‘(2) EXCEPTION.—The Secretary may exceed the
limitations in paragraph (1) if the Secretary deter-
mines that—
‘‘(A) the action would not adversely affect
the local economy of a county; and
‘‘(B) operators in the county are having dif-
ficulties complying with conservation plans im-
plemented under section 1212.
‘‘(3) SHELTERBELTS
AND
WINDBREAKS.—The
limitations established under this subsection shall not
apply to cropland that is subject to an easement
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under chapter 1 or 3 of subtitle D that is used for the
establishment of shelterbelts and windbreaks.
‘‘(c) TENANT PROTECTION.—Except for a person who
is a tenant on land that is subject to a conservation reserve
contract that has been extended by the Secretary, the Sec-
retary shall provide adequate safeguards to protect the in-
terests of tenants and sharecroppers, including provision for
sharing, on a fair and equitable basis, in payments under
the programs established under subtitles B through D.
‘‘(d) REGULATIONS.—Not later than 90 days after the
effective date of this subsection, the Secretary shall issue reg-
ulations to implement the conservation reserve and wet-
lands reserve programs established under chapter 1 of sub-
title D.’’.
Subtitle D—National Natural
Resources Conservation Foundation
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ‘‘National Natural
Resources Conservation Foundation Act’’.
SEC. 332. DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) BOARD.—The term ‘‘Board’’ means the
Board of Trustees established under section 334.
(2) DEPARTMENT.—The term ‘‘Department’’
means the United States Department of Agriculture.
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(3) 
FOUNDATION.—The 
term 
‘‘Foundation’’
means the National Natural Resources Conservation
Foundation established by section 333(a).
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
SEC. 333. NATIONAL NATURAL RESOURCES CONSERVATION
FOUNDATION.
(a) ESTABLISHMENT.—A National Natural Resources
Conservation Foundation is established as a charitable and
nonprofit corporation for charitable, scientific, and edu-
cational purposes specified in subsection (b). The Founda-
tion is not an agency or instrumentality of the United
States.
(b) PURPOSES.—The purposes of the Foundation are
to—
(1) promote innovative solutions to the problems
associated with the conservation of natural resources
on private lands, particularly with respect to agri-
culture and soil and water conservation;
(2) promote voluntary partnerships between gov-
ernment and private interests in the conservation of
natural resources;
(3) conduct research and undertake educational
activities, 
conduct 
and 
support 
demonstration
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projects, and make grants to State and local agencies
and nonprofit organizations;
(4) provide such other leadership and support as
may be necessary to address conservation challenges,
such as the prevention of excessive soil erosion, en-
hancement of soil and water quality, and the protec-
tion of wetlands, wildlife habitat, and strategically
important farmland subject to urban conversion and
fragmentation;
(5) encourage, accept, and administer private
gifts of money and real and personal property for the
benefit of, or in connection with, the conservation and
related activities and services of the Department, par-
ticularly the Natural Resources Conservation Service;
(6) undertake, conduct, and encourage edu-
cational, technical, and other assistance, and other
activities, that support the conservation and related
programs administered by the Department (other
than activities carried out on National Forest System
lands), particularly the Natural Resources Conserva-
tion Service, except that the Foundation may not en-
force or administer a regulation of the Department;
and
(7) raise private funds to promote the purposes
of the Foundation.