(6) One of the essential elements of a sound ag-
ricultural economy is the ability of the United States
to compete in the world market.
(7) Exports of United States agricultural com-
modities 
are 
expected 
to 
reach 
nearly
$50,000,000,000 in 1995 and contribute about
$20,000,000,000 to the United States balance of
trade.
(8) Agricultural exports account for over
1,000,000 American jobs.
(9) Commodity Credit Corporation outlays for
farm programs have declined from a high of approxi-
mately $26,000,000,000 for fiscal year 1986 to less
than $9,000,000,000 for fiscal year 1995, a reduc-
tion of over 65 percent that is unique among the
many mandatory spending programs of the Federal
Government.
(10) According to the Congressional Budget Of-
fice, farm program outlays are projected to remain
below the outlay level for fiscal year 1995 for the
next 5 years and continue to decline by nearly 8 per-
cent, even if no changes are made in current law for
existing farm programs.
(b) POLICY.—It is the policy of the United States
that—
(1) continued Federal Government support is
necessary to provide stability for American agricul-
tural producers to—
(A) enable the producers to continue to
provide consumers with a steady and depend-
able supply of food and fiber at fair prices;
(B) enhance farmer and rancher profit-
ability;
(C) encourage young farmers to stay on
the farm;
(D) maintain the competitiveness of the
United States in the world market; and
(E) otherwise preserve the underpinnings
of a sound agricultural economy; and
(2) reductions in farm program spending should
be made in a fair and equitable manner in order to
meet the objective of achieving a balanced budget for
the Federal Government in a manner consistent with
paragraph (1).
(c) PURPOSE.—The purpose of this Act is to establish
agricultural price support and production adjustment pro-
grams for the 1996 through 2002 crop years that provide
a structure for a sound agricultural economy in a manner
consistent with subsection (b).
SEC. 3. SENSE OF CONGRESS ON ENDING THE FEDERAL
DEFICIT.
It is the sense of Congress that—
(1) the continuation of significant Federal
budgetary deficits harms the economic well-being of
the United States and is detrimental to the develop-
ment of sound, long-term agricultural policy;
(2) agricultural price support and production
adjustment programs are necessary for the contin-
ued economic health of United States agriculture,
which must compete in international markets
against subsidized foreign competition; and
(3) agricultural price support and production
adjustment programs should be—
(A) implemented, to the maximum extent
practicable, in a manner that is consistent with
the primary goal of the concurrent resolution on
the budget for fiscal year 1996 (H. Con. Res.
67, agreed to June 29, 1995) to end Federal
budget deficits; and
(B) modified, as necessary, to ensure that
the programs comply with applicable budget
reconciliation instructions in the concurrent res-
olution that are designed to end Federal budget
deficits, in a manner consistent with section
306 of the concurrent resolution.
SEC. 4. NONRECOURSE LOANS AND DEFICIENCY PAYMENTS
FOR THE 1996 THROUGH 2002 CROPS OF RICE,
UPLAND COTTON, FEED GRAINS, WHEAT, AND
OILSEEDS.
(a) DEFINITIONS.—For purposes of this section:
(1) COVERED COMMODITIES.—The term ‘‘cov-
ered commodities’’ means rice, upland cotton, feed
grains, wheat, and oilseeds.
(2) FEED
GRAINS.—The term ‘‘feed grains’’
means corn, grain sorghum, barley, and oats.
(3) OILSEEDS.—The term ‘‘oilseeds’’ means
soybeans, sunflower seeds, canola, rapeseed, saf-
flower, flaxseed, mustard seed, and such other oil-
seeds as the Secretary may determine appropriate
for inclusion.
(b) NONRECOURSE LOANS.—
(1) PRICE
SUPPORT
LOANS.—The Secretary
shall make available to producers on a farm
nonrecourse loans for each of the 1996 through
2002 crops of each covered commodity at the level
specified in paragraph (2). Acreage covered shall in-
clude both mandatory and voluntary flex acres.
(2) LOAN LEVELS.—The loan levels for each
covered commodity shall be 100 percent of the sim-
ple average price received by producers of that cov-
ered commodity, as determined by the Secretary,
during the marketing years for the preceding 5
crops of that covered commodity, 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. The Secretary may adjust the loan level for
a particular covered commodity to reflect changes in
the market price of that covered commodity.
(3) PROHIBITIONS.—The Secretary shall not
make available a marketing loan or loan deficiency
payment to any producer on a farm for any of the
1996 through 2002 crops of covered commodities.
(c) DEFICIENCY PAYMENTS.—
(1) IN GENERAL.—The Secretary shall make
deficiency payments available to producers for each
of the 1996 through 2002 crops of each covered
commodity (other than oilseeds) in an amount com-
puted by multiplying—
(A) the payment rate for the covered com-
modity;
(B) the payment acres for the crop of that
covered commodity; and
(C) the farm program yield for the crop of
that covered commodity for the farm.
(2) PAYMENT RATE.—
(A) MINIMUM ESTABLISHED PRICE.—The
minimum established price in effect for the
1991 through 1995 crops of each covered com-
modity shall continue in effect for the 1996
through 2002 crops of that covered commodity.
(B) ESTABLISHMENT OF RATE.—The pay-
ment rate for each of the 1996 through 2002
crops of each covered commodity shall be the
amount by which the target price exceeds the
higher of—
(i) the loan level established for that
covered commodity under subsection (b);
(ii) the average market price of that
covered commodity.
(3) PAYMENT
ACRES.—Payment acres for a
crop of a covered commodity shall equal base acres
less idled (set aside) and flex (mandatory and op-
tional) acres.
(4) ELIMINATION
OF
0⁄85
AND
50⁄85
PRO-
GRAMS.—The Secretary shall discontinue the partial
payment programs, variously known as 0⁄85, 50⁄85,
0⁄92, and 50⁄92, effective with crop year 1996.
(d) FLEXIBILITY (‘FLEX’) PROGRAM.—The Sec-
retary shall increase producer planting flexibility—
(1) by increasing the mandatory flex acreage
percentage for each covered commodity from 15 per-
cent to 20 percent; and
(2) by offering producers an additional vol-
untary increase in flex acres of between 10 percent
to 25 percent.
(e) CROP INSURANCE REQUIREMENT.—As a condi-
tion for eligibility for crop loans and deficiency payments
under this section, the producers on a farm shall obtain
catastrophic risk protection insurance coverage in accord-
ance with section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)).
(f) CONFORMING REPEALS.—Sections 101B (rice),
103B (cotton), 105B (feed grains), 107B (wheat), and
205 (oilseeds) of the Agricultural Act of 1949 are re-
pealed. The repeal of such sections 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 a covered commodity under a provi-
sion of law in effect immediately before the date of the
enactment of this Act.
SEC. 5. REVIEW OF STATUS AND FUTURE OF PRODUCTION
AGRICULTURE.
(a) SCOPE
OF REVIEW.—The Secretary of Agri-
culture shall conduct a comprehensive review of the status
and future of production agriculture and farming commu-
nities in the United States and the extent to which the
program changes made by this Act will impact production
agriculture and farming communities in the United States.
The review shall include the following—
(1) an assessment of the food security situation
in the United States in the areas of trade, consumer
prices, international competitiveness of United
States production agriculture, food supplies, and hu-
manitarian relief;
(2) an assessment of current and future farm
land values and agricultural producer incomes;
(3) an assessment of the extent to which regu-
latory relief for agricultural producers has been en-
acted and implemented, including the application of
cost-benefit principles in the issuance of agricultural
regulations;
(4) an assessment of the extent to which tax re-
lief for agricultural producers has been enacted in
the form of capital gains tax reductions, estate tax
exemptions, and mechanisms to average tax loads
over high- and low-income years;
(5) an assessment of any Federal Government
interference in agricultural export markets, such as
the imposition of trade embargoes, and the degree of
implementation and success of international trade
agreements;
(6) identification of the appropriate future rela-
tionship of the Federal Government with production
agriculture after 2002;
(7) identification of the long-term goals for pro-
duction agriculture and farming communities in the
United States and recommendations for actions
needed to achieve those goals; and
(8) an assessment of manpower and infrastruc-
ture requirements of the Department of Agriculture
as the result of program changes made by this Act.
(b) LEGISLATIVE PROPOSALS.—As part of the com-
prehensive review required under subsection (a), the Sec-
retary shall develop specific legislative proposals to imple-
ment any recommendations being made.
(c) REPORTS.—The Secretary shall report the find-
ings and recommendations made under subsection (a) to
the President, to the Committee on Agriculture of the
House of Representatives, and to the Committee on Agri-
culture, Nutrition, and Forestry of the Senate, not later
than March 31, 1997.
(d) HEARINGS.—The Secretary may, for the purpose
of carrying out this section, conduct such hearings and
receive such evidence as the Secretary considers appro-
priate.
(e) ASSISTANCE FROM OTHER AGENCIES.—The Sec-
retary may secure from other departments and agencies
of the Federal Government such information as may be
necessary to carry out this section.
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