I
107TH CONGRESS
1ST SESSION
H. R. 2646
To provide for the continuation of agricultural programs through fiscal year
2011.
IN THE HOUSE OF REPRESENTATIVES
JULY 26, 2001
Mr. COMBEST (for himself and Mr. STENHOLM) introduced the following bill;
which was referred to the Committee on Agriculture
A BILL
To provide for the continuation of agricultural programs
through fiscal year 2011.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Agricultural Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—COMMODITY PROGRAMS
Sec. 100. Definitions.
Subtitle A—Fixed Decoupled Payments and Counter-Cyclical
Payments
Sec. 101. Payments to eligible producers.
Sec. 102. Establishment of payment yield.
Sec. 103. Establishment of base acres and payment acres for a farm.
Sec. 104. Availability of fixed, decoupled payments.
Sec. 105. Availability of counter-cyclical payments.
Sec. 106. Producer agreement required as condition on provision of fixed, de-
coupled payments and counter-cyclical payments.
Sec. 107. Planting flexibility.
Sec. 108. Relation to remaining payment authority under production flexibility
contracts.
Sec. 109. Payment limitations.
Sec. 110. Period of effectiveness.
Subtitle B—Marketing Assistance Loans and Loan Deficiency
Payments
Sec. 121. Availability of nonrecourse marketing assistance loans for covered
commodities.
Sec. 122. Loan rates for nonrecourse marketing assistance loans.
Sec. 123. Term of loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency payments.
Sec. 126. Payments in lieu of loan deficiency payments for grazed acreage.
Sec. 127. Special marketing loan provisions for upland cotton.
Sec. 128. Special competitive provisions for extra long staple cotton.
Sec. 129. Availability of recourse loans for high moisture feed grains and seed
cotton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for wool and
mohair.
Sec. 131. Availability of nonrecourse marketing assistance loans for honey.
Subtitle C—Other Commodities
CHAPTER 1—DAIRY
Sec. 141. Milk price support program.
Sec. 142. Repeal of recourse loan program for processors.
Sec. 143. Dairy export incentive program.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product mandatory reporting.
Sec. 146. Funding of dairy promotion and research program.
CHAPTER 2—SUGAR
Sec. 151. Sugar program.
Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938 re-
garding sugar.
Sec. 153. Storage facility loans.
CHAPTER 3—PEANUTS
Sec. 161. Definitions.
Sec. 162. Establishment of payment yield, peanut acres, and payment acres for
a farm.
Sec. 163. Availability of fixed, decoupled payments for peanuts.
Sec. 164. Availability of counter-cyclical payments for peanuts.
Sec. 614. Grants to nonprofit organizations to finance the construction, refur-
bishing, and servicing of individually-owned household water
well systems in rural areas for individuals with low or moderate
incomes.
Sec. 615. National Rural Development Partnership.
TITLE VII—RESEARCH AND RELATED MATTERS
Subtitle A—Extensions
Sec. 700. Market expansion research.
Sec. 701. National Rural Information Center Clearinghouse.
Sec. 702. Grants and fellowships for food and agricultural sciences education.
Sec. 703. Policy research centers.
Sec. 704. Human nutrition intervention and health promotion research pro-
gram.
Sec. 705. Pilot research program to combine medical and agricultural research.
Sec. 706. Nutrition education program.
Sec. 707. Continuing animal health and disease research programs.
Sec. 708. Appropriations for research on national or regional problems.
Sec. 709. Grants to upgrade agricultural and food sciences facilities at 1890
land-grant colleges, including Tuskegee University.
Sec. 710. National research and training centennial centers at 1890 land-grant
institutions.
Sec. 711. Hispanic-serving institutions.
Sec. 712. Competitive grants for international agricultural science and edu-
cation programs.
Sec. 713. University research.
Sec. 714. Extension service.
Sec. 715. Supplemental and alternative crops.
Sec. 716. Aquaculture research facilities.
Sec. 717. Rangeland research.
Sec. 718. National genetics resources program.
Sec. 719. High-priority research and extension initiatives.
Sec. 720. Nutrient management research and extension initiative.
Sec. 721. Agricultural telecommunications program.
Sec. 722. Alternative Agricultural Research And Commercialization Revolving
Fund.
Sec. 723. Assistive technology program for farmers with disabilities.
Sec. 724. Partnerships for high-value agricultural product quality research.
Sec. 725. Biobased products.
Sec. 726. Integrated research, education, and extension competitive grants pro-
gram.
Sec. 727. Institutional capacity building grants.
Sec. 728. 1994 Institution research grants.
Sec. 729. Endowment for 1994 Institutions.
Sec. 730. Precision agriculture.
Sec. 731. Thomas Jefferson Initiative for Crop Diversification.
Sec. 732. Support for research regarding diseases of wheat, triticale, and barley
caused by Fusarium graminearum or by Tilletia indica.
Sec. 733. Office of Pest Management policy.
Sec. 734. National Agricultural Research, Extension, Education, and Econom-
ics Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols and in-
dustrial hydrocarbons from agricultural commodities and forest
products.
Sec. 736. Biomass research and development.
Sec. 737. Agricultural experiment stations research facilities.
Sec. 738. Competitive, Special, and Facilities Research Grants National Re-
search Initiative.
Sec. 739. Federal agricultural research facilities authorization of appropria-
tions.
Subtitle B—Modifications
Sec. 741. Equity in Educational Land-Grant Status Act of 1994.
Sec. 742. National Agricultural Research, Extension, and Teaching Policy Act
of 1977.
Sec. 743. Agricultural Research, Extension, and Education Reform Act of
1998.
Sec. 744. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 745. National Agricultural Research, Extension, and Teaching Policy Act
of 1977.
Sec. 746. Biomass research and development.
Sec. 747. Biotechnology risk assessment research.
Sec. 748. Competitive, special, and facilities research grants.
Sec. 749. Matching funds requirement for research and extension activities of
1890 Institutions.
Sec. 750. Initiative for future agriculture and food systems.
Sec. 751. Carbon cycle research.
Sec. 752. Definition of food and agricultural sciences.
Sec. 753. Federal extension service.
Subtitle C—Related Matters
Sec. 761. Resident instruction at land-grant colleges in United States terri-
tories.
Sec. 762. Declaration of extraordinary emergency and resulting authorities.
Subtitle D—Repeal of Certain Activities and Authorities
Sec. 771. Food Safety Research Information Office and National Conference.
Sec. 772. Reimbursement of expenses under Sheep Promotion, Research, and
Information Act of 1994.
Sec. 773. National genetic resources program.
Sec. 774. National Advisory Board on Agricultural Weather.
Sec. 775. Agricultural information exchange with Ireland.
Sec. 776. Pesticide resistance study.
Sec. 777. Expansion of education study.
Sec. 778. Support for Advisory Board.
Sec. 779. Task force on 10-year strategic plan for agricultural research facili-
ties.
Subtitle E—Agriculture Facility Protection
Sec. 790. Additional protections for animal or agricultural enterprises, research
facilities, and other entities.
TITLE VIII—FORESTRY INITIATIVES
Sec. 801. Repeal of forestry incentives program and stewardship incentive pro-
gram.
Sec. 802. Establishment of forest land enhancement program.
Sec. 803. Renewable resources extension activities.
Sec. 804. Enhanced community fire protection.
Sec. 805. International forestry program.
Sec. 806. Long-term forest stewardship contracts for hazardous fuels removal
and implementation of National Fire Plan.
Sec. 807. McIntire-Stennis cooperative forestry research program.
TITLE IX—MISCELLANEOUS PROVISIONS
Subtitle A—Tree Assistance Program
Sec. 901. Eligibility.
Sec. 902. Assistance.
Sec. 903. Limitation on assistance.
Sec. 904. Definitions.
Sec. 905. Duplicative payments.
Subtitle B—Other Matters
Sec. 911. Hazardous fuel reduction grants to prevent wildfire disasters and
transform hazardous fuels to electric energy, useful heat, or
transportation fuels.
Sec. 912. Bioenergy program.
Sec. 913. Availability of section 32 funds.
Sec. 914. Seniors farmers’ market nutrition program.
Sec. 915. Federal marketing order for cane berries.
TITLE I—COMMODITY
PROGRAMS
SEC. 100. DEFINITIONS.
In this title (other than chapter 3 of subtitle C):
(1) AGRICULTURAL
ACT
OF
1949.—The term
‘‘Agricultural Act of 1949’’ means the Agricultural
Act of 1949 (7 U.S.C. 1421 et seq.), as in effect
prior to the suspensions under section 171 of the
Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7301).
(2) BASE ACRES.—The term ‘‘base acres’’, with
respect to a covered commodity on a farm, means
the number of acres established under section 103
with respect to the commodity upon the election
made by the producers on the farm under subsection
(a) of such section.
(3) COUNTER-CYCLICAL PAYMENT.—The term
‘‘counter-cyclical payment’’ means a payment made
to producers under section 105.
(4) COVERED COMMODITY.—The term ‘‘covered
commodity’’ means wheat, corn, grain sorghum, bar-
ley, oats, upland cotton, rice, soybeans, and other
oilseeds.
(5) EFFECTIVE
PRICE.—The term ‘‘effective
price’’, with respect to a covered commodity for a
crop year, means the price calculated by the Sec-
retary under section 105 to determine whether
counter-cyclical payments are required to be made
for that crop year.
(6) ELIGIBLE PRODUCER.—The term ‘‘eligible
producer’’ means a producer described in section
101(a).
(7) FIXED, DECOUPLED PAYMENT.—The term
‘‘fixed, decoupled payment’’ means a payment made
to producers under section 104.
(8) OTHER
OILSEED.—The term ‘‘other oil-
seed’’ means a crop of sunflower seed, rapeseed,
canola, safflower, flaxseed, mustard seed, or, if des-
ignated by the Secretary, another oilseed.
(9) PAYMENT
ACRES.—The term ‘‘payment
acres’’ means 85 percent of the base acres of a cov-
ered commodity on a farm, as established under sec-
tion 103, upon which fixed, decoupled payments and
counter-cyclical payments are to be made.
(10) PAYMENT
YIELD.—The term ‘‘payment
yield’’ means the yield established under section 102
for a farm for a covered commodity.
(11) PRODUCER.—The term ‘‘producer’’ means
an owner, operator, landlord, tenant, or share-
cropper who shares in the risk of producing a crop
and who is entitled to share in the crop available for
marketing from the farm, or would have shared had
the crop been produced. In determining whether a
grower of hybrid seed is a producer, the Secretary
shall not take into consideration the existence of a
hybrid seed contract and shall ensure that program
requirements do not adversely affect the ability of
the grower to receive a payment under this title.
(12) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture.
(13) 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.
(14) TARGET PRICE.—The term ‘‘target price’’
means the price per bushel (or other appropriate
unit in the case of upland cotton, rice, and other oil-
seeds) of a covered commodity used to determine the
payment rate for counter-cyclical payments.
(15) UNITED
STATES.—The term ‘‘United
States’’, when used in a geographical sense, means
all of the States.
Subtitle A—Fixed Decoupled Pay-
ments 
and 
Counter-Cyclical
Payments
SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.
(a) PAYMENTS
REQUIRED.—Beginning with the
2002 crop of covered commodities, the Secretary shall
make fixed decoupled payments and counter-cyclical pay-
ments under this subtitle—
(1) to producers on a farm that were parties to
a production flexibility contract under section 111 of
the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7211) for fiscal year 2002;
and
(2) to other producers on farms in the United
States as described in section 103(a).
that, subject to section 109, would be made under
section 114 of such Act (7 U.S.C. 7214) for the cov-
ered commodity on the farm.
(b) SINGLE ELECTION; TIME FOR ELECTION.—The
opportunity to make the election described in subsection
(a) shall be available to producers on a farm only once.
The producers shall notify the Secretary of the election
made by the producers under such subsection not later
than 180 days after the date of the enactment of this Act.
(c) EFFECT OF FAILURE TO MAKE ELECTION.—If
the producers on a farm fail to make the election under
subsection (a), or fail to timely notify the Secretary of the
selected option as required by subsection (b), the pro-
ducers shall be deemed to have made the election described
in subsection (a)(2) to determine base acres for all covered
commodities on the farm.
(d) APPLICATION OF ELECTION TO ALL COVERED
COMMODITIES.—The election made under subsection (a)
or deemed to be made under subsection (c) with respect
to a farm shall apply to all of the covered commodities
on the farm. Producers may not make the election de-
scribed in subsection (a)(1) for one covered commodity
and the election described in subsection (a)(2) for other
covered commodities on the farm.
(e) TREATMENT OF CONSERVATION RESERVE CON-
TRACT ACREAGE.—
(1) IN GENERAL.—In the case of producers on
a farm that make the election described in sub-
section (a)(2), the Secretary shall provide for an ad-
justment in the base acres for the farm whenever ei-
ther of the following circumstances occur:
(A) A conservation reserve contract en-
tered into under section 1231 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831) with respect
to the farm expires or is voluntarily terminated.
(B) Cropland is released from coverage
under a conservation reserve contract by the
Secretary.
(2) SPECIAL PAYMENT RULES.—For the fiscal
year and crop year in which a base acre adjustment
under paragraph (1) is first made, the producers on
the farm shall elect to receive either fixed decoupled
payments and counter-cyclical payments with respect
to the acreage added to the farm under this sub-
section or a prorated payment under the conserva-
tion reserve contract, but not both.
(f) PAYMENTS ACRES.—The payment acres for a cov-
ered commodity on a farm shall be equal to 85 percent
of the base acres for the commodity.
(g) PREVENTION OF EXCESS PAYMENT ACRES.—
(1) REQUIRED REDUCTION.—If the sum of the
base acres for a farm, together with the acreage de-
scribed in paragraph (2), exceeds the actual crop-
land acreage of the farm, the Secretary shall make
such reductions in the quantity of base acres for the
farm as may be necessary so that the sum of the
base acres and acreage described in paragraph (2)
does not exceed the actual cropland acreage of the
farm.
(2) OTHER ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following:
(A) Any peanut acreage for the farm under
chapter 3 of subtitle C.
(B) Any acreage on the farm enrolled in
the conservation reserve program or wetlands
reserve program under chapter 1 of subtitle D
of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled
in a conservation program for which payments
are made in exchange for not producing an ag-
ricultural commodity on the acreage.
SEC. 104. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS.
(a) PAYMENT REQUIRED.—For each of the 2002
through 2011 crop years of each covered commodity, the
Secretary shall make fixed, decoupled payments to eligible
producers.
(b) PAYMENT RATE.—The payment rates used to
make fixed, decoupled payments with respect to covered
commodities for a crop year are as follows:
(1) Wheat, $0.53 per bushel.
(2) Corn, $0.30 per bushel.
(3) Grain sorghum, $0.36 per bushel.
(4) Barley, $0.25 per bushel.
(5) Oats, $0.025 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.42 per bushel.
(9) Other oilseeds, $0.0074 per pound.
(c) PAYMENT AMOUNT.—The amount of the fixed,
decoupled payment to be paid to the eligible producers on
a farm for a covered commodity for a crop year shall be
equal to the product of the following:
(1) The payment rate specified in subsection
(b).
(2) The payment acres of the covered com-
modity on the farm.
(3) The payment yield for the covered com-
modity for the farm.
(d) TIME FOR PAYMENT.—
(1) GENERAL
RULE.—Fixed, decoupled pay-
ments shall be paid not later than September 30 of
each of fiscal years 2002 through 2011. In the case
of the 2002 crop, payments may begin to be made
on or after December 1, 2001.
(2) ADVANCE PAYMENTS.—At the option of an
eligible producer, 50 percent of the fixed, decoupled
payment for a fiscal year shall be paid on a date se-
lected by the producer. The selected date shall be on
or after December 1 of that fiscal year, and the pro-
ducer may change the selected date for a subsequent
fiscal year by providing advance notice to the Sec-
retary.
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a
producer that receives an advance fixed, decoupled
payment for a fiscal year ceases to be an eligible
producer before the date the fixed, decoupled pay-
ment would otherwise have been made by the Sec-
retary under paragraph (1), the producer shall be
responsible for repaying the Secretary the full
amount of the advance payment.
SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAY-
MENTS.
(a) PAYMENT REQUIRED.—The Secretary shall make
counter-cyclical payments with respect to a covered com-
modity whenever the Secretary determines that the effec-
tive price for the commodity is less than the target price
for the commodity.
(b) EFFECTIVE PRICE.—For purposes of subsection
(a), the effective price for a covered commodity is equal
to the sum of the following:
(1) The higher of the following:
(A) The national average market price re-
ceived by producers during the 12-month mar-
keting year for the commodity, as determined
by the Secretary.
(B) The national average loan rate for a
marketing assistance loan for the covered com-
modity in effect for the same period under sub-
title B.
(2) The payment rate in effect for the covered
commodity under section 104 for the purpose of
making fixed, decoupled payments with respect to
the commodity.
(c) TARGET PRICE.—For purposes of subsection (a),
the target prices for covered commodities are as follows:
(1) Wheat, $4.04 per bushel.
(2) Corn, $2.78 per bushel.
(3) Grain sorghum, $2.64 per bushel.
(4) Barley, $2.39 per bushel.
(5) Oats, $1.47 per bushel.
(6) Upland cotton, $0.736 per pound.
(7) Rice, $10.82 per hundredweight.
(8) Soybeans, $5.86 per bushel.
(9) Other oilseeds, $0.1036 per pound.
(d) PAYMENT RATE.—The payment rate used to
make counter-cyclical payments with respect to a covered
commodity for a crop year shall be equal to the difference
between—
(1) the target price for the commodity; and
(2) the effective price determined under sub-
section (b) for the commodity.
(e) PAYMENT AMOUNT.—The amount of the counter-
cyclical payment to be paid to the eligible producers on
a farm for a covered commodity for a crop year shall be
equal to the product of the following:
(1) The payment rate specified in subsection
(d).
(2) The payment acres of the covered com-
modity on the farm.
(3) The payment yield for the covered com-
modity for the farm.
(f) TIME FOR PAYMENTS.—
(1) GENERAL RULE.—The Secretary shall make
counter-cyclical payments under this section for a
crop of a covered commodity as soon as possible
after determining under subsection (a) that such
payments are required for that crop year.
(2) PARTIAL
PAYMENT.—The Secretary may
permit, and, if so permitted, an eligible producer
may elect to receive, up to 50 percent of the pro-
jected counter-cyclical payment, as determined by
the Secretary, to be made under this section for a
crop of a covered commodity upon completion of the
first six months of the marketing year for that crop.
The producer shall repay to the Secretary the
amount, if any, by which the partial payment ex-
ceeds the actual counter-cyclical payment to be made
for that marketing year.
(g) SPECIAL RULE FOR CURRENTLY UNDESIGNATED
OILSEED.—If the Secretary uses the authority under sec-
tion 100(8) to designate another oilseed as an oilseed for
which counter-cyclical payments may be made, the Sec-
retary may modify the target price specified in subsection
(c)(9) that would otherwise apply to that oilseed as the
Secretary considers appropriate.
SEC. 106. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION ON PROVISION OF FIXED, DECOUPLED
PAYMENTS AND COUNTER-CYCLICAL PAY-
MENTS.
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—
(1) REQUIREMENTS.—Before the producers on
a farm may receive fixed, decoupled payments or
counter-cyclical payments with respect to the farm,
the producers shall agree, in exchange for the
payments—
(A) to comply with applicable conservation
requirements under subtitle B of title XII of
the Food Security Act of 1985 (16 U.S.C. 3811
et seq.);
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title
XII of the Act (16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 107; and
(D) to use the land on the farm, in an
amount equal to the base acres, for an agricul-
tural or conserving use, and not for a non-
agricultural commercial or industrial use, as de-
termined by the Secretary.
(2) COMPLIANCE.—The Secretary may issue
such rules as the Secretary considers necessary to
ensure producer compliance with the requirements of
paragraph (1).
(b) EFFECT OF FORECLOSURE.—A producer may not
be required to make repayments to the Secretary of fixed,
decoupled payments and counter-cyclical payments if the
farm has been foreclosed on and the Secretary determines
that forgiving the repayments is appropriate to provide
fair and equitable treatment. This subsection shall not
void the responsibilities of the producer under subsection
(a) if the producer continues or resumes operation, or con-
trol, of the farm. On the resumption of operation or con-
trol over the farm by the producer, the requirements of
subsection (a) in effect on the date of the foreclosure shall
apply.
(c) TRANSFER OR CHANGE OF INTEREST IN FARM.—
(1) TERMINATION.—Except as provided in
paragraph (4), a transfer of (or change in) the inter-
est of a producer in base acres for which fixed, de-
coupled payments or counter-cyclical payments are
made shall result in the termination of the payments
with respect to the base acres, unless the transferee
or owner of the acreage agrees to assume all obliga-
tions under subsection (a). The termination shall be
effective on the date of the transfer or change.
decision for purposes of the availability of administrative
review of the determination.
SEC. 107. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS.—Subject to subsection (b),
any commodity or crop may be planted on base acres on
a farm.
(b) LIMITATIONS
AND
EXCEPTIONS
REGARDING
FRUITS AND VEGETABLES.—
(1) LIMITATIONS.—The planting of fruits and
vegetables (other than lentils, mung beans, and dry
peas) shall be prohibited on base acres.
(2) EXCEPTIONS.—Paragraph (1) shall not
limit the planting of a fruit or vegetable—
(A) in any region in which there is a his-
tory of double-cropping of covered commodities
with fruits or vegetables, as determined by the
Secretary, in which case the double-cropping
shall be permitted;
(B) on a farm that the Secretary deter-
mines has a history of planting fruits or vegeta-
bles on base acres, except that fixed, decoupled
payments and counter-cyclical payments shall
be reduced by an acre for each acre planted to
the fruit or vegetable; or
(C) by a producer who the Secretary deter-
mines has an established planting history of a
specific fruit or vegetable, except that—
(i) the quantity planted may not ex-
ceed the producer’s average annual plant-
ing history of the fruit or vegetable in the
1991 through 1995 crop years (excluding
any crop year in which no plantings were
made), as determined by the Secretary;
and
(ii) fixed, decoupled payments and
counter-cyclical payments shall be reduced
by an acre for each acre planted to the
fruit or vegetable.
SEC. 108. RELATION TO REMAINING PAYMENT AUTHORITY
UNDER 
PRODUCTION 
FLEXIBILITY 
CON-
TRACTS.
(a) TERMINATION OF SUPERSEDED PAYMENT AU-
THORITY.—Notwithstanding section 113(a)(7) of the Fed-
eral Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7213(a)(7)) or any other provision of law, the Sec-
retary shall not make payments for fiscal year 2002 after
the date of the enactment of this Act under production
flexibility contracts entered into under section 111 of such
Act (7 U.S.C. 7211).
(b) CONTRACT PAYMENTS MADE BEFORE ENACT-
MENT.—If, on or before the date of the enactment of this
Act, a producer receives all or any portion of the payment
authorized for fiscal year 2002 under a production flexi-
bility contract, the Secretary shall reduce the amount of
the fixed, decoupled payment otherwise due the producer
for that same fiscal year by the amount of the fiscal year
2002 payment previously received by the producer.
SEC. 109. PAYMENT LIMITATIONS.
Sections 1001 through 1001C of the Food Security
Act of 1985 (7 U.S.C. 1308 through 1308–3) shall apply
to fixed, decoupled payments and counter-cyclical pay-
ments. A producer eligible to receive a fixed, decoupled
payment or counter-cyclical payment satisfies the require-
ments of section 1001A(b) of such Act.
SEC. 110. PERIOD OF EFFECTIVENESS.
This subtitle shall be effective beginning with the
2002 crop year of each covered commodity through the
2011 crop year.
Subtitle B—Marketing Assistance
Loans and Loan Deficiency Pay-
ments
SEC. 121. AVAILABILITY OF NONRECOURSE MARKETING AS-
SISTANCE LOANS FOR COVERED COMMOD-
ITIES.
(a) NONRECOURSE LOANS AVAILABLE.—
(1) AVAILABILITY.—For each of the 2002
through 2011 crops of each covered commodity, the
Secretary shall make available to producers on a
farm nonrecourse marketing assistance loans for
covered commodities 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 section 122 for the covered com-
modity.
(2) INCLUSION OF EXTRA LONG STAPLE COT-
TON.—In this subtitle, the term ‘‘covered com-
modity’’ includes extra long staple cotton.
(b) ELIGIBLE PRODUCTION.—Any production of a
covered commodity on a farm shall be eligible for a mar-
keting assistance loan under subsection (a).
(c) TREATMENT OF CERTAIN COMMINGLED COM-
MODITIES.—In carrying out this subtitle, the Secretary
shall make loans to a producer that is otherwise eligible
to obtain a marketing assistance loan, but for the fact the
covered commodity owned by the producer is commingled
with covered commodities of other producers in facilities
unlicensed for the storage of agricultural commodities by
the Secretary or a State licensing authority, if the pro-
ducer obtaining the loan agrees to immediately redeem the
loan collateral in accordance with section 166 of the Fed-
eral Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7286).
(d) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of
a marketing assistance loan under subsection (a), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet-
land protection requirements under subtitle C of title XII
of the Act (16 U.S.C. 3821 et seq.) during the term of
the loan.
(e) DEFINITION
OF EXTRA LONG STAPLE COT-
TON.—In this subtitle, the term ‘‘extra long staple cotton’’
means cotton that—
(1) is produced from pure strain varieties of the
Barbadense species or any hybrid thereof, or other
similar types of extra long staple cotton, designated
by the Secretary, having characteristics needed for
various end uses for which United States upland cot-
ton is not suitable and grown in irrigated cotton-
growing regions of the United States designated by
the Secretary or other areas designated by the Sec-
retary as suitable for the production of the varieties
or types; and
(2) is ginned on a roller-type gin or, if author-
ized by the Secretary, ginned on another type gin for
experimental purposes.
(e) TERMINATION OF SUPERSEDED LOAN AUTHOR-
ITY.—Notwithstanding section 131 of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C.
7231), nonrecourse marketing assistance loans shall not
be made for the 2002 crop of covered commodities under
subtitle C of title I of such Act.
SEC. 122. LOAN RATES FOR NONRECOURSE MARKETING AS-
SISTANCE LOANS.
(a) WHEAT.—
(1) LOAN RATE.—Subject to paragraph (2), the
loan rate for a marketing assistance loan under sec-
tion 121 for wheat shall be—
(A) not less than 85 percent of the simple
average price received by producers of wheat, as
determined by the Secretary, during the mar-
keting years for the immediately preceding five
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
(B) not more than $2.58 per bushel.
(2) 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—
(A) 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;
(B) less than 30 percent but not less than
15 percent, the Secretary may reduce the loan
rate for wheat for the corresponding crop by an
amount not to exceed 5 percent in any year; or
(C) less than 15 percent, the Secretary
may not reduce the loan rate for wheat for the
corresponding crop.
(b) FEED GRAINS.—
(1) LOAN RATE FOR CORN AND GRAIN SOR-
GHUM.—Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 121 for
corn and grain sorghum shall be—
(A) not less than 85 percent of the simple
average price received by producers of corn or
grain sorghum, respectively, as determined by
the Secretary, during the marketing years for
the immediately preceding five crops of the cov-
ered 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; but
(B) not more than $1.89 per bushel.
(2) STOCKS TO USE RATIO ADJUSTMENT.—If
the Secretary estimates for any marketing year that
the ratio of ending stocks of corn or grain sorghum
to total use for the marketing year will be—
(A) equal to or greater than 25 percent,
the Secretary may reduce the loan rate for the
covered commodity for the corresponding crop
by an amount not to exceed 10 percent in any
year;
(B) less than 25 percent but not less than
12.5 percent, the Secretary may reduce the loan
rate for the covered commodity for the cor-
responding crop by an amount not to exceed 5
percent in any year; or
(C) less than 12.5 percent, the Secretary
may not reduce the loan rate for the covered
commodity for the corresponding crop.
(3) OTHER FEED GRAINS.—The loan rate for a
marketing assistance loan under section 121 for bar-
ley and oats shall be—
(A) established at such level as the Sec-
retary determines is fair and reasonable in rela-
tion to the rate that loans are made available
for corn, taking into consideration the feeding
value of the commodity in relation to corn, but
(B) not more than—
(i) $1.65 per bushel for barley; and
(ii) $1.21 per bushel for oats.
(c) UPLAND COTTON.—
(1) LOAN RATE.—Subject to paragraph (2), the
loan rate for a marketing assistance loan under sec-
tion 121 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 de-
termined by the Secretary, at average locations in
the United States a rate that is not less than the
smaller of—
(A) 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 three years
of the five-year period ending July 31 of the
year preceding the year in which the crop is
planted, 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; or
(B) 90 percent of the average, for the 15-
week period beginning July 1 of the year pre-
ceding the year in which the crop is planted, of
the five 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 April 15
through October 15 of the year preceding the
year in which the crop is planted between the
average 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.
(2) LIMITATIONS.—The loan rate for a mar-
keting assistance loan for upland cotton shall not be
less than $0.50 per pound or more than $0.5192 per
pound.
(d) EXTRA LONG STAPLE COTTON.—The loan rate
for a marketing assistance loan under section 121 for
extra long staple cotton shall be—
(1) not less than 85 percent of the simple aver-
age price received by producers of extra long staple
cotton, as determined by the Secretary, during three
years of the five-year period ending July 31 of the
year preceding the year in which the crop is planted,
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
(2) not more than $0.7965 per pound.
(e) RICE.—The loan rate for a marketing assistance
loan under section 121 for rice shall be $6.50 per hun-
dredweight.
(f) OILSEEDS.—
(1) SOYBEANS.—The loan rate for a marketing
assistance loan under section 121 for soybeans shall
be—
(A) not less than 85 percent of the simple
average price received by producers of soybeans,
as determined by the Secretary, during the
marketing years for the immediately preceding
five crops of soybeans, 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 $4.92 per bushel.
(2) OTHER
OILSEEDS.—The loan rate for a
marketing assistance loan under section 121 for
other oilseeds shall be—
(A) not less than 85 percent of the simple
average price received by producers of the other
oilseed, as determined by the Secretary, during
the marketing years for the immediately pre-
ceding five crops of the other oilseed, 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 $0.087 per pound.
SEC. 123. TERM OF LOANS.
(a) TERM OF LOAN.—In the case of each covered
commodity (other than upland cotton or extra long staple
cotton), a marketing assistance loan under section 121
shall have a term of nine months beginning on the first
day of the first month after the month in which the loan
is made.
(b) SPECIAL RULE FOR COTTON.—A marketing as-
sistance loan for upland cotton or extra long staple cotton
shall have a term of 10 months beginning on the first day
of the month in which the loan is made.
(c) EXTENSIONS PROHIBITED.—The Secretary may
not extend the term of a marketing assistance loan for
any covered commodity.
SEC. 124. REPAYMENT OF LOANS.
(a) REPAYMENT RATES FOR WHEAT, FEED GRAINS,
AND OILSEEDS.—The Secretary shall permit a producer
to repay a marketing assistance loan under section 121
for wheat, corn, grain sorghum, barley, oats, and oilseeds
at a rate that is the lesser of—
(1) the loan rate established for the commodity
under section 122, plus interest (as determined by
the Secretary); or
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodity by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; and
(D) allow the commodity produced in the
United States to be marketed freely and com-
petitively, both domestically and internationally.
(b) REPAYMENT RATES FOR UPLAND COTTON AND
RICE.—The Secretary shall permit producers to repay a
marketing assistance loan under section 121 for upland
cotton and rice at a rate that is the lesser of—
(1) the loan rate established for the commodity
under section 122, plus interest (as determined by
the Secretary); or
(2) the prevailing world market price for the
commodity (adjusted to United States quality and
location), as determined by the Secretary.
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE
COTTON.—Repayment of a marketing assistance loan for
extra long staple cotton shall be at the loan rate estab-
lished for the commodity under section 122, plus interest
(as determined by the Secretary).
(d) PREVAILING WORLD MARKET PRICE.—For pur-
poses of this section and section 127, the Secretary shall
prescribe by regulation—
(1) a formula to determine the prevailing world
market price for each covered commodity, adjusted
to United States quality and location; and
(2) a mechanism by which the Secretary shall
announce periodically the prevailing world market
price for each covered commodity.
(e) ADJUSTMENT OF PREVAILING WORLD MARKET
PRICE FOR UPLAND COTTON.—
(1) IN GENERAL.—During the period beginning
on the date of the enactment of this Act and ending
July 31, 2012, the prevailing world market price for
upland cotton (adjusted to United States quality and
location) established under subsection (d) shall be
further adjusted if—
(A) the adjusted prevailing world market
price is less than 115 percent of the loan rate
for upland cotton established under section 122,
as determined by the Secretary; and
(B) 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 is
greater than the Friday through Thursday av-
erage price of the 5 lowest-priced growths of
upland cotton, as quoted for Middling (M)
13⁄32-inch cotton, delivered C.I.F. Northern Eu-
rope (referred to in this section as the ‘‘North-
ern Europe price’’).
(2) FURTHER
ADJUSTMENT.—Except as pro-
vided in paragraph (3), the adjusted prevailing world
market price for upland cotton shall be further ad-
justed on the basis of some or all of the following
data, as available:
(A) The United States share of world ex-
ports.
(B) The current level of cotton export sales
and cotton export shipments.
(C) Other data determined by the Sec-
retary to be relevant in establishing an accurate
prevailing world market price for upland cotton
(adjusted to United States quality and loca-
tion).
(3) LIMITATION ON FURTHER ADJUSTMENT.—
The adjustment under paragraph (2) may not ex-
ceed the difference between—
(A) the Friday through Thursday average
price for the lowest-priced United States growth
as quoted for Middling 13⁄32-inch cotton deliv-
ered C.I.F. Northern Europe; and
(B) the Northern Europe price.
SEC. 125. LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY
OF
LOAN
DEFICIENCY
PAY-
MENTS.—Except as provided in subsection (d), the Sec-
retary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing as-
sistance loan under section 121 with respect to a covered
commodity, agree to forgo obtaining the loan for the com-
modity in return for payments under this section.
(b) COMPUTATION.—A loan deficiency payment
under this section shall be computed by multiplying—
(1) the loan payment rate determined under
subsection (c) for the covered commodity; by
(2) the quantity of the covered commodity pro-
duced by the eligible producers, excluding any quan-
tity for which the producers obtain a loan under sec-
tion 121.
(c) LOAN PAYMENT RATE.—For purposes of this sec-
tion, the loan payment rate shall be the amount by
which—
(1) the loan rate established under section 122
for the covered commodity; exceeds
(2) the rate at which a loan for the commodity
may be repaid under section 124.
(d) EXCEPTION
FOR EXTRA LONG STAPLE COT-
TON.—This section shall not apply with respect to extra
long staple cotton.
(e) TIME FOR PAYMENT.—The Secretary shall make
a payment under this section to a producer with respect
to a quantity of a covered commodity as of the earlier of
the following:
(1) The date on which the producer marketed
or otherwise lost beneficial interest in the com-
modity, as determined by the Secretary.
(2) The date the producer requests the pay-
ment.
SEC. 126. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE.
(a) ELIGIBLE PRODUCERS.—Effective for the 2002
through 2011 crop years, in the case of a producer that
would be eligible for a loan deficiency payment under sec-
tion 125 for wheat, barley, or oats, but that elects to use
acreage planted to the wheat, barley, or oats for the graz-
ing of livestock, the Secretary shall make a payment to
the producer under this section if the producer enters into
an agreement with the Secretary to forgo any other har-
vesting of the wheat, barley, or oats on that acreage.
(b) PAYMENT AMOUNT.—The amount of a payment
made to a producer on a farm under this section shall
be equal to the amount determined by multiplying—
(1) the loan deficiency payment rate determined
under section 125(c) in effect, as of the date of the
agreement, for the county in which the farm is lo-
cated; by
(2) the payment quantity determined by
multiplying—
(A) the quantity of the grazed acreage on
the farm with respect to which the producer
elects to forgo harvesting of wheat, barley, or
oats; and
(B) the payment yield for that covered
commodity on the farm.
(c) TIME, MANNER, AND AVAILABILITY
OF PAY-
MENT.—
(1) TIME AND MANNER.—A payment under this
section shall be made at the same time and in the
same manner as loan deficiency payments are made
under section 125.
(2) AVAILABILITY.—The Secretary shall estab-
lish an availability period for the payment author-
ized by this section that is consistent with the avail-
ability period for wheat, barley, and oats established
by the Secretary for marketing assistance loans au-
thorized by this subtitle.
(d) PROHIBITION ON CROP INSURANCE OR NON-
INSURED CROP ASSISTANCE.—A 2002 through 2011 crop
of wheat, barley, or oats planted on acreage that a pro-
ducer elects, in the agreement required by subsection (a),
to use for the grazing of livestock in lieu of any other har-
vesting of the crop shall not be eligible for insurance under
the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
or noninsured crop assistance under section 196 of the
Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333).
SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON.
(a) COTTON USER MARKETING CERTIFICATES.—
(1) ISSUANCE.—During the period beginning on
the date of the enactment of this Act and ending
July 31, 2012, the Secretary shall issue marketing
certificates or cash payments, at the option of the
recipient, to domestic users and exporters for docu-
mented purchases by domestic users and sales for
export by exporters made in the week following a
consecutive four-week period in which—
(A) 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 Eu-
rope exceeds the Northern Europe price by
more than 1.25 cents per pound; and
(B) the prevailing world market price for
upland cotton (adjusted to United States qual-
ity and location) does not exceed 134 percent of
the loan rate for upland cotton established
under section 122.
(2) VALUE OF CERTIFICATES OR PAYMENTS.—
The value of the marketing certificates or cash pay-
ments shall be based on the amount of the difference
(reduced by 1.25 cents per pound) in the prices dur-
ing the fourth week of the consecutive four-week pe-
riod multiplied by the quantity of upland cotton in-
cluded in the documented sales.
(3) ADMINISTRATION OF MARKETING CERTIFI-
CATES.—
(A) REDEMPTION, MARKETING, OR
EX-
CHANGE.—The Secretary shall establish proce-
dures for redeeming marketing certificates for
cash or marketing or exchange of the certifi-
cates for agricultural commodities owned by the
Commodity Credit Corporation or pledged to
the Commodity Credit Corporation as collateral
for a loan in such manner, and at such price
levels, as the Secretary determines will best ef-
fectuate the purposes of cotton user marketing
certificates, including enhancing the competi-
tiveness and marketability of United States cot-
ton. Any price restrictions that would otherwise
apply to the disposition of agricultural commod-
ities by the Commodity Credit Corporation shall
not apply to the redemption of certificates
under this subsection.
(B) DESIGNATION OF COMMODITIES AND
PRODUCTS.—To the extent practicable, the Sec-
retary shall permit owners of certificates to des-
ignate the commodities and products, including
storage sites, the owners would prefer to receive
in exchange for certificates.
(C) TRANSFERS.—Marketing certificates
issued to domestic users and exporters of up-
land cotton may be transferred to other persons
in accordance with regulations issued by the
Secretary.
(b) SPECIAL IMPORT QUOTA.—
(1) ESTABLISHMENT.—
(A) IN
GENERAL.—The President shall
carry out an import quota program during the
period beginning on the date of the enactment
of this Act and ending July 31, 2012, as pro-
vided in this subsection.
(B) PROGRAM REQUIREMENTS.—Except as
provided in subparagraph (C), whenever the
Secretary determines and announces that for
any consecutive four-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, deliv-
ered C.I.F. Northern Europe, adjusted for the
value of any certificate issued under subsection
(a), exceeds the Northern Europe price by more
than 1.25 cents per pound, there shall imme-
diately be in effect a special import quota.
(C) TIGHT
DOMESTIC
SUPPLY.—During
any month for which the Secretary estimates
the season-ending United States upland cotton
stocks-to-use ratio, as determined under sub-
paragraph (D), to be below 16 percent, the Sec-
retary, in making the determination under sub-
paragraph (B), shall not adjust the Friday
through Thursday average price quotation for
the lowest-priced United States growth, as
quoted for Middling (M) 13⁄32-inch cotton, deliv-
ered C.I.F. Northern Europe, for the value of
any certificates issued under subsection (a).
(D) 
SEASON-ENDING
UNITED
STATES
STOCKS-TO-USE
RATIO.—For the purposes of
making estimates under subparagraph (C), the
Secretary shall, on a monthly basis, estimate
and report the season-ending United States up-
land cotton stocks-to-use ratio, excluding pro-
jected raw cotton imports but including the
quantity of raw cotton that has been imported
into the United States during the marketing
year.
(2) QUANTITY.—The quota shall be equal to
one week’s consumption of upland cotton by domes-
tic mills at the seasonally adjusted average rate of
the most recent three months for which data are
available.
(3) APPLICATION.—The quota shall apply to
upland cotton purchased not later than 90 days
after the date of the Secretary’s announcement
under paragraph (1) and entered into the United
States not later than 180 days after the date.
(4) OVERLAP.—A special quota period may be
established that overlaps any existing quota period if
required by paragraph (1), except that a special
quota period may not be established under this sub-
section if a quota period has been established under
subsection (c).
(5) PREFERENTIAL TARIFF TREATMENT.—The
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of—
(A) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(6) DEFINITION.—In this subsection, the term
‘‘special import quota’’ means a quantity of imports
that is not subject to the over-quota tariff rate of a
tariff-rate quota.
(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing
year under the special import quota established
under this subsection may not exceed the equivalent
of five week’s consumption of upland cotton by do-
mestic mills at the seasonally adjusted average rate
of the three months immediately preceding the first
special import quota established in any marketing
year.
(c) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND
COTTON.—
(1) IN
GENERAL.—The President shall carry
out an import quota program that provides that
whenever the Secretary determines and announces
that the average price of the base quality of upland
cotton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of such quality of cotton
in the markets for the preceding 36 months, not-
withstanding 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 three
months for which data are available.
(B) QUANTITY
IF
PRIOR
QUOTA.—If a
quota has been established under this sub-
section 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 consumption calculated under
subparagraph (A) or the quantity required to
increase the supply to 130 percent of the de-
mand.
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a limited global
import quota shall be considered to be an in-
quota quantity 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 cot-
ton 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.
(ii) DEMAND.—The term ‘‘demand’’
means—
(I) the average seasonally ad-
justed annual rate of domestic mill
consumption during the most recent
three months for which data are avail-
able; and
(II) the larger of—
(aa) average exports of up-
land cotton during the preceding
six 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, cot-
ton may be entered under the quota during the
90-day period beginning on the date the quota
is established by the Secretary.
(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 (b).
SEC. 128. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA
LONG STAPLE COTTON.
(a) COMPETITIVENESS PROGRAM.—Notwithstanding
any other provision of law, during the period beginning
on the date of the enactment of this Act and ending on
July 31, 2012, the Secretary shall carry out a program
to maintain and expand the domestic use of extra long
staple cotton produced in the United States, to increase
exports of extra long staple cotton produced in the United
States, and to ensure that extra long staple cotton pro-
duced in the United States remains competitive in world
markets.
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under
the program, the Secretary shall make payments available
under this section whenever—
(1) for a consecutive four-week period, the
world market price for the lowest priced competing
growth of extra long staple cotton (adjusted to
United States quality and location and for other fac-
tors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing
United States price for a competing growth of extra
long staple cotton; and
(2) the lowest priced competing growth of extra
long staple cotton (adjusted to United States quality
and location and for other factors affecting the com-
petitiveness of such cotton), as determined by the
Secretary, is less than 134 percent of the loan rate
for extra long staple cotton.
(c) ELIGIBLE RECIPIENTS.—The Secretary shall
make payments available under this section to domestic
users of extra long staple cotton produced in the United
States and exporters of extra long staple cotton produced
in the United States who enter into an agreement with
the Commodity Credit Corporation to participate in the
program under this section.
(d) PAYMENT AMOUNT.—Payments under this sec-
tion shall be based on the amount of the difference in the
prices referred to in subsection (b)(1) during the fourth
week of the consecutive four-week period multiplied by the
amount of documented purchases by domestic users and
sales for export by exporters made in the week following
such a consecutive four-week period.
(e) FORM OF PAYMENT.—Payments under this sec-
tion shall be made through the issuance of cash or mar-
keting certificates, at the option of eligible recipients of
the payments.
SEC. 129. AVAILABILITY OF RECOURSE LOANS FOR HIGH
MOISTURE FEED GRAINS AND SEED COTTON
AND OTHER FIBERS.
(a) HIGH MOISTURE FEED GRAINS.—
(1) RECOURSE LOANS AVAILABLE.—For each of
the 2002 through 2011 crops of corn and grain sor-
ghum, the Secretary shall make available recourse
loans, as determined by the Secretary, to producers
on a farm who—
(A) normally harvest all or a portion of
their crop of corn or grain sorghum in a high
moisture state;
(B) present—
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill,
distillery, or other similar entity approved
by the Secretary, pursuant to regulations
issued by the Secretary; or
(ii) field or other physical measure-
ments of the standing or stored crop in re-
gions of the United States, as determined
by the Secretary, that do not have certified
commercial scales from which certified
scale tickets may be obtained within rea-
sonable proximity of harvest operation;
(C) certify that they were the owners of
the feed grain at the time of delivery to, and
that the quantity to be placed under loan under
this subsection was in fact harvested on the
farm and delivered to, a feedlot, feed mill, or
commercial or on-farm high-moisture storage
facility, or to a facility maintained by the users
of corn and grain sorghum in a high moisture
state; and
(D) comply with deadlines established by
the Secretary for harvesting the corn or grain
sorghum and submit applications for loans
under this subsection within deadlines estab-
lished by the Secretary.
(2) ELIGIBILITY OF ACQUIRED FEED GRAINS.—
A loan under this subsection shall be made on a
quantity of corn or grain sorghum of the same crop
acquired by the producer equivalent to a quantity
determined by multiplying—
(A) the acreage of the corn or grain sor-
ghum in a high moisture state harvested on the
producer’s farm; by
(B) the lower of the farm program pay-
ment yield or the actual yield on a field, as de-
termined by the Secretary, that is similar to the
field from which the corn or grain sorghum was
obtained.
(3) HIGH MOISTURE STATE DEFINED.—In this
subsection, the term ‘‘high moisture state’’ means
corn or grain sorghum having a moisture content in
excess of Commodity Credit Corporation standards
for marketing assistance loans made by the Sec-
retary under section 121.
(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For each of the 2002 through 2011 crops of upland
cotton and extra long staple cotton, the Secretary shall
make available recourse seed cotton loans, as determined
by the Secretary, on any production.
(c) REPAYMENT RATES.—Repayment of a recourse
loan made under this section shall be at the loan rate es-
tablished for the commodity by the Secretary, plus interest
(as determined by the Secretary).
(d) TERMINATION OF SUPERSEDED LOAN AUTHOR-
ITY.—Notwithstanding section 137 of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C.
7237), recourse loans shall not be made for the 2002 crop
of corn, grain sorghum, and seed cotton under such sec-
tion.
SEC. 130. AVAILABILITY OF NONRECOURSE MARKETING AS-
SISTANCE LOANS FOR WOOL AND MOHAIR.
(a) NONRECOURSE LOANS AVAILABLE.—During the
2002 through 2011 marketing years for wool and mohair,
the Secretary shall make available to producers on a farm
nonrecourse marketing assistance loans for wool and mo-
hair produced on the farm during that marketing year.
(b) LOAN RATE.—The loan rate for a loan under sub-
section (a) shall be not more than—
(1) $1.00 per pound for graded wool;
(2) $0.40 per pound for nongraded wool; and
(3) $4.20 per pound for mohair.
(c) TERM OF LOAN.—A loan under subsection (a)
shall have a term of one year beginning on the first day
of the first month after the month in which the loan is
made.
(d) REPAYMENT RATES.—The Secretary shall permit
a producer to repay a marketing assistance loan under
subsection (a) for wool or mohair at a rate that is the
lesser of—
(1) the loan rate established for the commodity
under subsection (b), plus interest (as determined by
the Secretary); or
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodity by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; and
(D) allow the commodity produced in the
United States to be marketed freely and com-
petitively, both domestically and internationally.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—The Secretary may make
loan deficiency payments available to producers that,
although eligible to obtain a marketing assistance
loan under this section, agree to forgo obtaining the
loan in return for payments under this section.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by
multiplying—
(A) the loan payment rate in effect under
paragraph (3) for the commodity; by
(B) the quantity of the commodity pro-
duced by the eligible producers, excluding any
quantity for which the producers obtain a loan
under this subsection.
(3) LOAN
PAYMENT
RATE.—For purposes of
this subsection, the loan payment rate for wool or
mohair shall be the amount by which—
(A) the loan rate in effect for the com-
modity under subsection (b); exceeds
(B) the rate at which a loan for the com-
modity may be repaid under subsection (d).
(4) TIME FOR PAYMENT.—The Secretary shall
make a payment under this subsection to a producer
with respect to a quantity of a wool or mohair as of
the earlier of the following:
(A) The date on which the producer mar-
keted or otherwise lost beneficial interest in the
wool or mohair, as determined by the Secretary.
(B) The date the producer requests the
payment.
(f) LIMITATIONS.—The marketing assistance loan
gains and loan deficiency payments that a person may re-
ceive for wool and mohair under this section shall be sub-
ject to a separate payment limitation, but in the same dol-
lar amount, as the payment limitation that applies to mar-
keting assistance loans and loan deficiency payments re-
ceived by producers of other agricultural commodities in
the same marketing year.
SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING AS-
SISTANCE LOANS FOR HONEY.
(a) NONRECOURSE LOANS AVAILABLE.—During the
2002 through 2011 crop years for honey, the Secretary
shall make available to producers on a farm nonrecourse
marketing assistance loans for honey produced on the
farm during that crop year.
(b) LOAN RATE.—The loan rate for a marketing as-
sistance loan for honey under subsection (a) shall be equal
to $0.60 cents per pound.
(c) TERM OF LOAN.—A marketing assistance loan
under subsection (a) shall have a term of one year begin-
ning on the first day of the first month after the month
in which the loan is made.
(d) REPAYMENT RATES.—The Secretary shall permit
a producer to repay a marketing assistance loan for honey
under subsection (a) at a rate that is the lesser of—
(1) the loan rate for honey, plus interest (as de-
termined by the Secretary); or
(2) the prevailing domestic market price for
honey, as determined by the Secretary.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—The Secretary may make
loan deficiency payments available to any producer
of honey that, although eligible to obtain a mar-
keting assistance loan under subsection (a), agrees
to forgo obtaining the loan in return for a payment
under this subsection.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be determined by
multiplying—
(A) the loan payment rate determined
under paragraph (3); by
(B) the quantity of honey that the pro-
ducer is eligible to place under loan, but for
which the producer forgoes obtaining the loan
in return for a payment under this subsection.
(3) LOAN PAYMENT RATE.—For the purposes
of this subsection, the loan payment rate shall be the
amount by which—
(A) the loan rate established under sub-
section (b); exceeds
(B) the rate at which a loan may be repaid
under subsection (d).
(4) TIME FOR PAYMENT.—The Secretary shall
make a payment under this subsection to a producer
with respect to a quantity of a honey as of the ear-
lier of the following:
(A) The date on which the producer mar-
keted or otherwise lost beneficial interest in the
honey, as determined by the Secretary.
(B) The date the producer requests the
payment.
(f) LIMITATIONS.—The marketing assistance loan
gains and loan deficiency payments that a person may re-
ceive for a crop of honey under this section shall be subject
to a separate payment limitation, but in the same dollar
amount, as the payment limitation that applies to mar-
keting assistance loans and loan deficiency payments re-
ceived by producers of other agricultural commodities in
the same crop year.
(g) PREVENTION OF FORFEITURES.—The Secretary
shall carry out this section in such a manner as to mini-
mize forfeitures of honey marketing assistance loans.
Subtitle C—Other Commodities
CHAPTER 1—DAIRY
SEC. 141. MILK PRICE SUPPORT PROGRAM.
(a) SUPPORT ACTIVITIES.—During the period begin-
ning on January 1, 2002, and ending on December 31,
2011, the Secretary of Agriculture shall support the price
of milk produced in the 48 contiguous States through the
purchase of cheese, butter, and nonfat dry milk produced
from the milk.
(b) RATE.—During the period specified in subsection
(a), the price of milk shall be supported at a rate equal
to $9.90 per hundredweight for milk containing 3.67 per-
cent butterfat.
(c) PURCHASE
PRICES.—The support purchase
prices under this section for each of the products of milk
(butter, cheese, and nonfat dry milk) announced by the
Secretary shall be the same for all of that product sold
by persons offering to sell the product to the Secretary.
The purchase prices shall be sufficient to enable plants
of average efficiency to pay producers, on average, a price
that is not less than the rate of price support for milk
in effect under subsection (b).
(d) SPECIAL RULE FOR BUTTER AND NONFAT DRY
MILK PURCHASE PRICES.—
(1) ALLOCATION OF PURCHASE PRICES.—The
Secretary may allocate the rate of price support be-
tween the purchase prices for nonfat dry milk and
butter in a manner that will result in the lowest level
of expenditures by the Commodity Credit Corpora-
tion or achieve such other objectives as the Secretary
considers appropriate. Not later than 10 days after
making or changing an allocation, the Secretary
shall notify the Committee on Agriculture of the
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate of
the allocation. Section 553 of title 5, United States
Code, shall not apply with respect to the implemen-
tation of this section.
(2) TIMING
OF
PURCHASE
PRICE
ADJUST-
MENTS.—The Secretary may make any such adjust-
ments in the purchase prices for nonfat dry milk
and butter the Secretary considers to be necessary
not more than twice in each calendar year.
(e) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall carry out the program authorized by this sec-
tion through the Commodity Credit Corporation.
SEC. 142. REPEAL OF RECOURSE LOAN PROGRAM FOR
PROCESSORS.
Section 142 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7252) is repealed.
SEC. 143. DAIRY EXPORT INCENTIVE PROGRAM.
Section 153(a) of the Food Security Act of 1985 (15
U.S.C. 713a–14(a)) is amended by striking ‘‘2002’’ and
inserting ‘‘2011’’.
SEC. 144. FLUID MILK PROMOTION.
(a) DEFINITION OF FLUID MILK PRODUCT.—Section
1999C of the Fluid Milk Promotion Act of 1990 (7 U.S.C.
6402) is amended by striking paragraph (3) and inserting
the following new paragraph:
‘‘(3) FLUID MILK PRODUCT.—The term ‘fluid
milk product’ has the meaning given such term—
‘‘(A) in section 1000.15 of title 7, Code of
Federal Regulations, subject to such amend-
ments as may be made from time to time; or
‘‘(B) in any successor regulation providing
a definition of such term that is promulgated
pursuant to the Agricultural Adjustment Act (7
U.S.C. 601 et seq.), reenacted with amend-
ments by the Agricultural Marketing Agreement
Act of 1937.’’.
(b) DEFINITION OF FLUID MILK PROCESSOR.—Sec-
tion 1999C(4) of the Fluid Milk Promotion Act of 1990
(7 U.S.C. 6402(4)) is amended by striking ‘‘500,000’’ and
inserting ‘‘3,000,000’’.
(c) ELIMINATION OF ORDER TERMINATION DATE.—
Section 1999O of the Fluid Milk Promotion Act of 1990
(7 U.S.C. 6414) is amended—
(1) by striking subsection (a); and
(2) by redesignating subsections (b) and (c) as
subsections (a) and (b), respectively.
SEC. 145. DAIRY PRODUCT MANDATORY REPORTING.
Section 273(b)(1)(B) of the Agricultural Marketing
Act of 1946 (7 U.S.C. 1637b(b)(1)(B)) is amended—
(1) by inserting ‘‘and substantially identical
products designated by the Secretary’’ after ‘‘dairy
products’’ the first place it appears; and
(2) by inserting ‘‘and such substantially iden-
tical products’’ after ‘‘dairy products’’ the second
place it appears.
SEC. 146. FUNDING OF DAIRY PROMOTION AND RESEARCH
PROGRAM.
(a) DEFINITIONS.—Section 111 of the Dairy Produc-
tion Stabilization Act of 1983 (7 U.S.C. 4502) is
amended—
(1) in subsection (k), by striking ‘‘and’’ at the
end;
(2) in subsection (l), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(m) the term ‘imported dairy product’ means
any dairy product that is imported into the United
States, including dairy products imported into the
United States in the form of—
‘‘(1) milk, cream, and fresh and dried
dairy products;
‘‘(2) butter and butterfat mixtures;
‘‘(3) cheese; and
‘‘(4) casein and mixtures;
‘‘(n) the term ‘importer’ means a person that
imports an imported dairy product into the United
States; and
‘‘(o) the term ‘Customs’ means the United
States Customs Service.’’.
(b) REPRESENTATION OF IMPORTERS ON BOARD.—
Section 113(b) of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4504(b)) is amended—
(1) by inserting ‘‘NATIONAL DAIRY PROMOTION
AND RESEARCH BOARD.—’’ after ‘‘(b)’’;
(2) by designating the first through ninth sen-
tences as paragraphs (1) through (5) and para-
graphs (7) through (10), respectively, and indenting
the paragraphs appropriately;
(3) in paragraph (2) (as so designated), by
striking ‘‘Members’’ and inserting ‘‘Except as pro-
vided in paragraph (6), the members’’; and
(4) by inserting after paragraph (5) (as so des-
ignated) the following:
‘‘(6) IMPORTERS.—
‘‘(A) REPRESENTATION.—The Secretary
shall appoint not more than 2 members who
represent importers of dairy products and are
subject to assessments under the order, to re-
flect the proportion of domestic production and
imports supplying the United States market,
which shall be based on the Secretary’s deter-
mination of the average volume of domestic pro-
duction of dairy products proportionate to the
average volume of imports of dairy products in
the United States over the previous three years.
‘‘(B) ADDITIONAL
MEMBERS; 
NOMINA-
TIONS.—The members appointed under this
paragraph—
‘‘(i) shall be in addition to the total
number of members appointed under para-
graph (2); and
‘‘(ii) shall be appointed from nomina-
tions submitted by importers under such
procedures as the Secretary determines to
be appropriate.’’.
(c) IMPORTER ASSESSMENT.—Section 113(g) of the
Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(g)) is amended—
(1) by inserting ‘‘ASSESSMENTS.—’’ after
‘‘(g)’’;
(2) by designating the first through fifth sen-
tences as paragraphs (1) through (5), respectively,
and indenting appropriately; and
(3) by adding at the end the following:
‘‘(6) IMPORTERS.—
‘‘(A) IN GENERAL.—The order shall pro-
vide that each importer of imported dairy prod-
ucts shall pay an assessment to the Board in
the manner prescribed by the order.
‘‘(B) TIME
FOR
PAYMENT.—The assess-
ment on imported dairy products shall be paid
by the importer to Customs at the time of the
entry of the products into the United States
and shall be remitted by Customs to the Board.
For purposes of this subparagraph, entry of the
products into the United States shall be deemed
to have occurred when the products are released
from custody of Customs and introduced into
the stream of commerce within the United
States. Importers include persons who hold title
to foreign-produced dairy products immediately
upon release by Customs, as well as persons
who act on behalf of others, as agents, brokers,
or consignees, to secure the release of dairy
products from Customs and the introduction of
the released dairy products into the stream of
commerce.
‘‘(C) RATE.—The rate of assessment on
imported dairy products shall be determined in
the same manner as the rate of assessment per
hundredweight or the equivalent of milk.
‘‘(D) VALUE OF PRODUCTS.—For the pur-
pose of determining the assessment on imported
dairy products under subparagraph (C), the
value to be placed on imported dairy products
shall be established by the Secretary in a fair
and equitable manner.
‘‘(E) USE OF ASSESSMENTS ON IMPORTED
DAIRY.—Assessments collected on imported
dairy products shall not be used for foreign
market promotion.’’.
(d) RECORDS.—Section 113(k) of the Dairy Produc-
tion Stabilization Act of 1983 (7 U.S.C. 4504(k)) is
amended in the first sentence by striking ‘‘person receiv-
ing’’ and inserting ‘‘importer of imported dairy products,
each person receiving’’.
(e) IMPORTER
ELIGIBILITY
TO
VOTE
IN
REF-
ERENDUM.—Section 116(b) of the Dairy Promotion Sta-
bilization Act of 1983 (7 U.S.C. 4507(b)) is amended—
(1) in the first sentence—
(A) by inserting after ‘‘of producers’’ the
following: ‘‘and importers’’; and
(B) by inserting after ‘‘the producers’’ the
following: ‘‘and importers’’; and
(2) in the second sentence, by inserting after
‘‘commercial use’’ the following: ‘‘and importers vot-
ing in the referendum (who have been engaged in
the importation of dairy products during the same
representative period, as determined by the Sec-
retary).’’.
(f) CONFORMING AMENDMENTS TO REFLECT ADDI-
TION OF IMPORTERS.—Section 110(b) of the Dairy Pro-
duction Stabilization Act of 1983 (7 U.S.C. 4501(b)) is
amended—
(1) in the first sentence—
(A) by inserting after ‘‘commercial use’’
the following: ‘‘and on imported dairy prod-
ucts’’; and
(B) by striking ‘‘products produced in the
United States.’’ and inserting ‘‘products.’’; and
(2) in the second sentence, by inserting after
‘‘produce milk’’ the following: ‘‘or the right of any
person to import dairy products’’.
CHAPTER 2—SUGAR
SEC. 151. SUGAR PROGRAM.
(a) CONTINUATION OF PROGRAM.—Subsection (i) of
section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7251) is amended—
(1) by striking ‘‘(other than subsection (f))’’;
and
(2) by striking ‘‘2002 crops’’ and inserting
‘‘2011 crops’’.
(b) TERMINATION OF MARKETING ASSESSMENT.—
Effective as of October 1, 2001, subsection (f) of such sec-
tion is repealed.
(c) LOAN RATE ADJUSTMENTS.—Subsection (c) of
such section is amended—
(1) by striking ‘‘REDUCTION IN LOAN RATES’’
and inserting ‘‘LOAN RATE ADJUSTMENTS’’; and
(2) in paragraph (1)—
(A) by striking ‘‘REDUCTION REQUIRED’’
and inserting ‘‘POSSIBLE REDUCTION’’; and
(B) by striking ‘‘shall’’ and inserting
‘‘may’’.
(d) NOTIFICATION.—Subsection (e) of such section is
amended by adding at the end the following new para-
graph:
‘‘(3) PREVENTION OF ONEROUS NOTIFICATION
REQUIREMENTS.—The Secretary may not impose or
enforce any prenotification or similar administrative
requirement that has the effect of preventing a proc-
essor from choosing to forfeit the loan collateral
upon the maturity of the loan.’’.
(e) IN PROCESS SUGAR.—Such section is further
amended by inserting after subsection (e) the following
new subsection (f):
‘‘(f) LOANS FOR IN-PROCESS SUGAR.—
‘‘(1) AVAILABILITY; RATE.—The Secretary shall
make nonrecourse loans available to processors of
domestically grown sugarcane and sugar beets for
in-process sugars and syrups derived from such
crops. The loan rate shall be equal to 80 percent of
the loan rate applicable to raw cane sugar or refined
beet sugar, depending on the source material for the
in-process sugars and syrups.
‘‘(2) 
FURTHER
PROCESSING
UPON
FOR-
FEITURE.—As a condition on the forfeiture of in-
process sugars and syrups serving as collateral for
a loan under paragraph (1), the processor shall,
within such reasonable time period as the Secretary
may prescribe and at no cost to the Commodity
Credit Corporation, convert the in-process sugars
and syrups into raw cane sugar or refined beet
sugar of acceptable grade and quality for sugars eli-
gible for loans under subsection (a) or (b). Once the
in-process sugars and syrups are fully processed into
raw cane sugar or refined beet sugar, the processor
shall transfer the sugar to the Corporation, which
shall make a payment to the processor in an amount
equal to the difference between the loan rate for raw
cane sugar or refined beet sugar, whichever applies,
and the loan rate the processor received under para-
graph (1).
‘‘(3) LOAN CONVERSION.—If the processor does
not forfeit the collateral as described in paragraph
(2), but instead further processes the in-process sug-
ars and syrups into raw cane sugar or refined beet
sugar and repays the loan on the in-process sugars
and syrups, the processor may then obtain a loan
under subsection (a) or (b) on the raw cane sugar
or refined beet sugar, as appropriate.
‘‘(4) DEFINITION.—In this subsection the term
‘in-process sugars and syrups’ does not include raw
sugar, liquid sugar, invert sugar, invert syrup, or
other finished products that are otherwise eligible
for loans under subsection (a) or (b).’’.
(f) ADMINISTRATION OF PROGRAM.—Such section is
further amended by adding at the end the following new
subsection:
‘‘(j) AVOIDING FORFEITURES; CORPORATION INVEN-
TORY DISPOSITION.—
‘‘(1) NO COST.—To the maximum extent prac-
ticable, the Secretary shall operate the sugar pro-
gram established under this section at no cost to the
Federal Government by avoiding the forfeiture of
sugar to the Commodity Credit Corporation.
‘‘(2) INVENTORY DISPOSITION.—In support of
the objective specified in paragraph (1), the Com-
modity Credit Corporation may accept bids for com-
modities in the inventory of the Corporation from
(or otherwise make available such commodities, on
appropriate terms and conditions, to) processors of
sugarcane and processors of sugar beets (when the
processors are acting in conjunction with the pro-
ducers of the sugarcane or sugar beets processed by
such processors) in return for the reduction of pro-
duction of raw cane sugar or refined beet sugar, as
appropriate. The authority provided under this para-
graph is in addition to any authority of the Corpora-
tion under any other law.’’.
(g) INFORMATION REPORTING.—Subsection (h) of
such section is amended—
(1) by redesignating paragraphs (2) and (3) as
paragraphs (4) and (5), respectively;
(2) by inserting after paragraph (1) the fol-
lowing new paragraphs:
‘‘(2) DUTY OF PRODUCERS TO REPORT.—
‘‘(A) PROPORTIONATE
SHARE
STATES.—
The Secretary shall require a producer of sug-
arcane located in a State (other than Puerto
Rico) in which there are in excess of 250 sugar-
cane producers to report, in the manner pre-
scribed by the Secretary, the producer’s sugar-
cane yields and acres planted to sugarcane.
‘‘(B) OTHER STATES.—The Secretary may
require producers of sugarcane or sugar beets
not covered by paragraph (1) to report, in the
manner prescribed by the Secretary, each pro-
ducer’s sugarcane or sugar beet yields and
acres planted to sugarcane or sugar beets, re-
spectively.
‘‘(3) DUTY OF IMPORTERS TO REPORT.—The
Secretary shall require an importer of sugars, syrups
or molasses to be used for human consumption or to
be used for the extraction of sugar for human con-
sumption, except such sugars, syrups, or molasses
that are within the quantities of tariff-rate quotas
that are at the lower rate of duties, to report, in the
manner prescribed by the Secretary, the quantities
of such products imported and the sugar content or
equivalent of such products.’’; and
(3) in paragraph (5), as so redesignated, by
striking ‘‘paragraph (1)’’ and inserting ‘‘this sub-
section’’.
(h) INTEREST RATE.—Section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7283) is amended by adding at the end the fol-
lowing new sentence: ‘‘For purposes of this section, raw
cane sugar, refined beet sugar, and in process sugar eligi-
ble for a loan under section 156 shall not be considered
an agricultural commodity.’’.
SEC. 152. REAUTHORIZE PROVISIONS OF AGRICULTURAL
ADJUSTMENT 
ACT 
OF 
1938 
REGARDING
SUGAR.
(a) INFORMATION REPORTING.—Section 359a of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa)
is repealed.
(b) ESTIMATES.—Section 359b of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended:
(1) in the section heading—
(A) by inserting ‘‘FLEXIBLE’’ before
‘‘MARKETING’’; and
(B) by striking ‘‘AND
CRYSTALLINE
FRUCTOSE’’;
(2) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘Before’’ and inserting
‘‘Not later than August 1 before’’;
(ii) by striking ‘‘1992 through 1998’’
and inserting ‘‘2002 through 2011’’;
(iii) in subparagraph (A), by striking
‘‘(other than sugar’’ and all that follows
through ‘‘stocks’’;
(iv) by redesignating subparagraphs
(B) and (C) as subparagraphs (C) and
(E), respectively;
(v) by inserting after subparagraph
(A) the following:
‘‘(B) the quantity of sugar that would pro-
vide for reasonable carryover stocks;’’;
(vi) in subparagraph (C), as so
redesignated—
(I) by striking ‘‘or’’ through
‘‘beets’’; and
(II) by striking the ‘‘and’’ fol-
lowing the semicolon;
(vii) by inserting after subparagraph
(C), as so redesignated, the following:
‘‘(D) the quantity of sugar that will be
available from the domestic processing of sugar-
cane and sugar beets; and’’; and
(viii) in subparagraph (E), as so
redesignated—
(I) by striking ‘‘quantity of
sugar’’ and inserting ‘‘quantity of
sugars, syrups, and molasses’’;
(II) by inserting ‘‘human’’ after
‘‘imported for’’;
(III) by inserting after ‘‘con-
sumption’’ the following: ‘‘or to be
used for the extraction of sugar for
human consumption’’;
(IV) by striking ‘‘year’’ and in-
serting ‘‘year, whether such articles
are under a tariff-rate quota or are in
excess or outside of a tariff rate
quota’’; and
(V) by striking ‘‘in (other than
sugar’’ and all that follows through
‘‘carry-in stocks’’;
(B) by redesignating paragraph (2) as
paragraph (3);
(C) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) EXCLUSION.—The estimates in this sec-
tion shall not include sugar imported for the produc-
tion of polyhydric alcohol or to be refined and re-ex-
ported in refined form or in sugar containing prod-
ucts.’’;
(D) in paragraph (3), as so redesignated—
(i) by amending the heading to read
‘‘REESTIMATES’’; and
(ii) by inserting ‘‘as necessary, but’’
after ‘‘a fiscal year’’;
(3) in subsection (b)—
(A) by striking paragraph (1) and insert-
ing the following new paragraph:
‘‘(1) IN GENERAL.—By the beginning of each
fiscal year, the Secretary shall establish for that fis-
cal year appropriate allotments under section 359c
for the marketing by processors of sugar processed
from sugar beets and from domestically-produced
sugarcane at a level that the Secretary estimates will
result in no forfeitures of sugar to the Commodity
Credit Corporation under the loan program for
sugar.’’; and
(B) in paragraph (2), by striking ‘‘or crys-
talline fructose’’;
(4) by striking subsection (c);
(5) by redesignating subsection (d) as sub-
section (c); and
(6) in subsection (c), as so redesignated—
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively; and
(C) in paragraph (2), as so redesignated—
(i) by striking ‘‘or manufacturer’’
through ‘‘(2)’’; and
(ii) by striking ‘‘or crystalline fruc-
tose’’.
(c) ESTABLISHMENT.—Section 359c of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359cc) is
amended—
(1) in the section heading by inserting ‘‘FLEXI-
BLE’’ after ‘‘OF’’;
(2) in subsection (a), by inserting ‘‘flexible’’
after ‘‘establish’’;
(3) in subsection (b)—
(A) in paragraph (1)(A), by striking
‘‘1,250,000’’ and inserting ‘‘1,532,000’’; and
(B) in paragraph (2), by striking ‘‘to the
maximum extent practicable’’;
(4) by striking subsection (c) and inserting the
following new subsection:
‘‘(c) MARKETING ALLOTMENT FOR SUGAR DERIVED
FROM SUGAR BEETS AND MARKETING ALLOTMENT FOR
SUGAR DERIVED FROM SUGARCANE.—The overall allot-
ment quantity for the fiscal year shall be allotted among—
‘‘(1) sugar derived from sugarbeets by estab-
lishing a marketing allotment for a fiscal year at a
quantity equal to the product of multiplying the
overall allotment quantity for the fiscal year by the
percentage of 54.35; and
‘‘(2) sugar derived from sugarcane by estab-
lishing a marketing allotment for a fiscal year at a
quantity equal to the product of multiplying the
overall allotment quantity for the fiscal year by the
percentage of 45.65.’’;
(5) by amending subsection (d) to read as fol-
lows:
‘‘(d) FILLING CANE SUGAR AND BEET SUGAR AL-
LOTMENTS.—Each marketing allotment for cane sugar es-
tablished under this section may only be filled with sugar
processed from domestically grown sugarcane, and each
marketing allotment for beet sugar established under this
section may only be filled with sugar domestically proc-
essed from sugar beets.’’;
(6) by striking subsection (e);
(7) by redesignating subsection (f) as sub-
section (e);
(8) in subsection (e), as so redesignated—
(A) by inserting ‘‘(1) IN GENERAL.—’’ be-
fore ‘‘The allotment for sugar’’ and indenting
such paragraph appropriately;
(B) in such paragraph (1)—
(i) by striking ‘‘the 5’’ and inserting
‘‘the’’;
(ii) by inserting after ‘‘sugarcane is
produced,’’ the following: ‘‘after a hearing,
if requested by the affected sugar cane
processors and growers, and on such notice
as the Secretary by regulation may pre-
scribe,’’;
(iii) by striking ‘‘on the basis of past
marketings’’ and all that follows through
‘‘allotments’’, and inserting ‘‘as provided in
this 
subsection 
and 
section
359(d)(a)(2)(A)(iv)’’; and
(C) by inserting after paragraph (1) the
following new paragraphs:
‘‘(2) OFFSHORE ALLOTMENT.—
‘‘(A) COLLECTIVELY.—Prior to the allot-
ment of sugar derived from sugarcane to any
other State, 325,000 short tons, raw value shall
be allotted to the offshore States.
‘‘(B) INDIVIDUALLY.—The collective off-
shore State allotment provided for under sub-
paragraph (A) shall be further allotted among
the offshore States in which sugarcane is pro-
duced, after a hearing if requested by the af-
fected sugar cane processors and growers, and
on such notice as the Secretary by regulation
may prescribe, in a fair and equitable manner
on the basis of—
‘‘(i) past marketings of sugar, based
on the average of the 2 highest years of
production of raw cane sugar from the
1996 through 2000 crops;
‘‘(ii) the ability of processors to mar-
ket the sugar covered under the allotments
for the crop year; and
‘‘(iii) past processings of sugar from
sugarcane based on the 3 year average of
the crop years 1998 through 2000.
‘‘(3) MAINLAND
ALLOTMENT.—The allotment
for sugar derived from sugarcane, less the amount
provided for under paragraph (2), shall be allotted
among the mainland States in the United States in
which sugarcane is produced, after a hearing if re-
quested by the affected sugar cane processors and
growers, and on such notice as the Secretary by reg-
ulation may prescribe, in a fair and equitable man-
ner on the basis of—
‘‘(A) past marketings of sugar, based on
the average of the 2 highest years of production
of raw cane sugar from the 1996 through 2000
crops;
‘‘(B) the ability of processors to market
the sugar covered under the allotments for the
crop year; and
‘‘(C) past processings of sugar from sugar-
cane, based on the 3 crop years with the great-
est processings (in the mainland States collec-
tively) during the 1991 through 2000 crop
years.’’;
(9) by inserting after subsection (e), as so re-
designated, the following new subsection (f):
‘‘(f) FILLING CANE SUGAR ALLOTMENTS.—Except
as otherwise provided in section 359e, a State cane sugar
allotment established under subsection (e) for a fiscal year
may be filled only with sugar processed from sugarcane
grown in the State covered by the allotment.’’;
(10) in subsection (g)—
(A) 
in 
paragraph 
(1), 
by 
striking
‘‘359b(a)(2)—’’ through the end of subpara-
graph (C) and inserting ‘‘359b(a)(3), adjust up-
ward or downward marketing allotments in a
fair and equitable manner’’;
(B) in paragraph (2) by striking ‘‘359f(b)’’
and inserting ‘‘359f(c)’’; and
(C) in paragraph (3)—
(i) by striking ‘‘REDUCTIONS’’ and in-
serting ‘‘CARRY-OVER OF REDUCTIONS’’;
(ii) by inserting after ‘‘this subsection,
if’’ the following: ‘‘at the time of the reduc-
tion’’;
(iii) by striking ‘‘price support’’ and
inserting ‘‘nonrecourse’’;
(iv) by striking ‘‘206’’ through ‘‘the
allotment’’ and inserting ‘‘156 of the Agri-
cultural Market Transition Act (7 U.S.C.
7272),’’; and
(v) by striking ‘‘, if any,’’; and
(11) by amending subsection (h) to read as fol-
lows:
‘‘(h) SUSPENSION OF ALLOTMENTS.—Whenever the
Secretary estimates, or reestimates, under section
359b(a), or has reason to believe that imports of sugars,
syrups or molasses for human consumption or to be used
for the extraction of sugar for human consumption, wheth-
er under a tariff-rate quota or in excess or outside of a
tariff-rate quota, will exceed 1.532 million short tons, raw
value equivalent, and that such imports would lead to a
reduction of the overall allotment quantity, the Secretary
shall suspend the marketing allotments until such time as
such imports have been restricted, eliminated, or otherwise
reduced to or below the level of 1.532 million tons.’’.
(d) ALLOCATION.—Section 359d of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359dd) is amended—
(1) in subsection (a)(2)(A)—
(A) by inserting ‘‘(i) IN GENERAL.—’’ be-
fore ‘‘The Secretary shall’’ and indenting such
clause appropriately;
(B) in clause (i), as so designated—
(ii) by striking ‘‘interested parties’’
and inserting ‘‘the affected sugar cane
processors and growers’’;
(iii) by striking ‘‘by taking’’ through
‘‘allotment allocated.’’ and inserting ‘‘with
this subparagraph.’’; and
(iv) by inserting at the end the fol-
lowing new sentence: ‘‘Each such allocation
shall be subject to adjustment under sec-
tion 359c(g).’’;
(C) by inserting after clause (i) the fol-
lowing new clause:
‘‘(ii) 
MULTIPLE
PROCESSOR
STATES.—Except as provided in clause
(iii), the Secretary shall allocate the allot-
ment for cane sugar among multiple cane
sugar processors in a single State based
upon—
‘‘(I) past marketings of sugar,
based on the average of the 2 highest
years of production of raw cane sugar
from among the 1996 through 2000
crops;
‘‘(II) the ability of processors to
market sugar covered by that portion
of the allotment allocated for the crop
year;
‘‘(III) past processings of sugar
from sugarcane, based on the average
of the 3 highest years from among
crop years 1996 through 2000; and
‘‘(IV) however, only with respect
to allotments under subclauses (I),
(II), and (III) attributable to the
former operations of the Talisman
processing facility, shall be allocated
among processors in the State coinci-
dent with the provisions of the agree-
ments of March 25 and March 26,
1999, between the affected processors
and the Department of the Interior.
‘‘(iii) 
PROPORTIONATE
SHARE
STATES.—In the case of States subject to
section 359f(c), the Secretary shall allocate
the allotment for cane sugar among mul-
tiple cane sugar processors in a single
state based upon—
‘‘(I) past marketings of sugar,
based on the average of the two high-
est years of production of raw cane
sugar from among the 1997 through
2001 crop years;
‘‘(II) the ability of processors to
market sugar covered by that portion
of the allotments allocated for the
crop year; and
‘‘(III) past processings of sugar
from sugarcane, based on the average
of the two highest crop years from the
five crop years 1997 through 2001.
‘‘(iv) 
NEW
ENTRANTS.—Notwith-
standing clauses (ii) and (iii), the Sec-
retary, on application of any processor that
begins processing sugarcane on or after the
date of enactment of this clause, and after
a hearing if requested by the affected sug-
arcane processors and growers, and on
such notice as the Secretary by regulation
may prescribe, may provide such processor
with an allocation which provides a fair, ef-
ficient and equitable distribution of the al-
locations from the allotment for the State
in which the processor is located and, in
the case of proportionate share States,
shall establish proportionate shares in an
amount sufficient to produce the sugarcane
required to satisfy such allocations. How-
ever, the allotment for a new processor
under this clause shall not exceed 50,000
short tons, raw value.
‘‘(v) TRANSFER OF OWNERSHIP.—Except as other-
wise provided in section 359f(c)(8), in the event that a
sugarcane processor is sold or otherwise transferred to an-
other owner, or closed as part of an affiliated corporate
group processing consolidation, the Secretary shall trans-
fer the allotment allocation for the processor to the pur-
chaser, new owner, or successor in interest, as applicable,
of the processor.’’; and
(2) in subsection (a)(2)(B)—
(A) by striking ‘‘interested parties’’ and in-
serting ‘‘the affected sugar beet processors and
growers’’; and
(B) by striking ‘‘processing capacity’’
through ‘‘allotment allocated’’ and inserting the
following: ‘‘the marketings of sugar processed
from sugar beets of any or all of the 1996
through 2000 crops, and such other factors as
the Secretary may deem appropriate after con-
sultation with the affected sugar beet proc-
essors and growers. However, in the case of any
processor which has started processing sugar
beets after January 1, 1996, the Secretary shall
provide such processor with an allocation which
provides a fair, efficient and equitable distribu-
tion of the allocations.’’.
(e) REASSIGNMENT.—Section 359e(b) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is
amended—
(1) in paragraph (1)—
(A) in subparagraph (B) by striking the
‘‘and’’ after the semicolon;
(B) by redesignating subparagraph (C) as
subparagraph (D);
(C) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) if after the reassignments, the deficit
cannot be completely eliminated, the Secretary
shall reassign the estimated quantity of the def-
icit to the sale of any inventories of sugar held
by the Commodity Credit Corporation; and’’;
and
(D) in subparagraph (D), as so redesig-
nated, by inserting ‘‘and sales’’ after ‘‘reassign-
ments’’; and
(2) in paragraph (2)—
(A) in subparagraph (A) by striking the
‘‘and’’ after the semicolon;
(B) in subparagraph (B), by striking ‘‘re-
assign the remainder to imports.’’ and inserting
‘‘use the estimated quantity of the deficit for
the sale of any inventories of sugar held by the
Commodity Credit Corporation; and’’; and
(C) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) if after such reassignments and sales,
the deficit cannot be completely eliminated, the
Secretary shall reassign the remainder to im-
ports.’’.
(f) PRODUCER PROVISIONS.—Section 359f of the Ag-
ricultural Adjustment Act of 1938 (7 U.S.C. 1359ff) is
amended—
(1) in subsection (a)—
(A) by striking ‘‘processor’s allocation’’ in
the second sentence and inserting ‘‘allocation to
the processor’’; and
(B) by inserting after ‘‘request of either
party’’ the following: ‘‘, and such arbitration
should be completed within 45 days, but not
more than 60 days, of the request’’;
(2) by redesignating subsection (b) as sub-
section (c);
(3) by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) SUGAR BEET PROCESSING FACILITY CLO-
SURES.— In the event that a sugar beet processing facility
is closed and the sugar beet growers who previously deliv-
ered beets to such facility desire to deliver their beets to
another processing company:
‘‘(1) Such growers may petition the Secretary
to modify existing allocations to accommodate such
a transition; and
‘‘(2) The Secretary may increase the allocation
to the processing company to which the growers de-
sire to deliver their sugar beets, and which the proc-
essing company agrees to accept, not to exceed its
processing capacity, to accommodate the change in
deliveries.
‘‘(3) Such increased allocation shall be deducted
from the allocation to the company that owned the
processing facility that has been closed and the re-
maining allocation will be unaffected.
‘‘(4) The Secretary’s determination on the
issues raised by the petition shall be made within 60
days of the filing of the petition.’’;
(4) in subsection (c), as so redesignated—
(A) in paragraph (3)(A), by striking ‘‘the
preceding five years’’ and inserting ‘‘the two
highest years from among the years 1999,
2000, and 2001’’;
(B) in paragraph (4), subparagraph (A),
by striking ‘‘each’’ through ‘‘in effect’’ and in-
serting ‘‘the two highest of the three (3) crop
years 1999, 2000, and 2001’’; and
(C) by inserting after paragraph (7) the
following new paragraph:
‘‘(8) PROCESSING FACILITY CLOSURES.—In the
event that a sugarcane processing facility subject to
this subsection is closed and the sugarcane growers
who previously delivered sugarcane to such facility
desire to deliver their sugarcane to another proc-
essing company—
‘‘(A) such growers may petition the Sec-
retary to modify existing allocations to accom-
modate such a transition;
‘‘(B) the Secretary may increase the allo-
cation to the processing company to which the
growers desire to deliver the sugarcane, and
which the processing company agrees to accept,
not to exceed its processing capacity, to accom-
modate the change in deliveries;
‘‘(C) such increased allocation shall be de-
ducted from the allocation to the company that
owned the processing facility that has been
closed and the remaining allocation will be un-
affected; and
‘‘(D) the Secretary’s determination on the
issues raised by the petition shall be made with-
in 60 days of the filing of the petition.’’.
(g) CONFORMING AMENDMENTS.—(1) The heading
of part VII of subtitle B of Title III of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is
amended to read as follows:
‘‘PART VII—FLEXIBLE MARKETING ALLOTMENTS
FOR SUGAR’’.
(2) Section 359g of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1359gg) is amended—
(A) by striking ‘‘359f’’ each place it appears
and inserting ‘‘359f(c);
(B) in subsection (b), by striking ‘‘3 consecu-
tive’’ and inserting ‘‘5 consecutive’’; and
(C) in subsection (c), by inserting ‘‘or adjusted’’
after ‘‘share established’’.
(3) Section 359j(c) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359jj) is amended—
(2) by amending the heading to read ‘‘DEFINI-
TIONS.—’’;
(B) by striking ‘‘Notwithstanding’’ and in-
serting the following:
‘‘(1) UNITED
STATES
AND
STATE.—Notwith-
standing’’; and
(C) by inserting after such paragraph (1)
the following new paragraph:
‘‘(2) OFFSHORE STATES.—For purposes of this
part, the term ‘offshore States’ means the sugarcane
producing States located outside of the continental
United States.’’.
(h) LIFTING OF SUSPENSION.—Section 171(a)(1)(E)
of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7301(a)(1)(E)) is amended by inserting
before the period at the end the following: ‘‘, but only with
respect to sugar marketings through fiscal year 2002’’.
SEC. 153. STORAGE FACILITY LOANS.
(a) STORAGE FACILITY LOAN PROGRAM.—Notwith-
standing any other provision of law and as soon as prac-
ticable after the date of enactment of this section, the
Commodity Credit Corporation shall amend part 1436 of
title 7, Code of Federal Regulations, to establish a sugar
storage facility loan program to provide financing for proc-
essors of domestically-produced sugarcane and sugar beets
to build or upgrade storage and handling facilities for raw
sugars and refined sugars.
(b) ELIGIBLE PROCESSORS.—Storage facility loans
shall be made available to any processor of domestically
produced sugarcane or sugar beets that has a satisfactory
credit history, determines a need for increased storage ca-
pacity (taking into account the effects of marketing allot-
ments), and demonstrates an ability to repay the loan.
100
(c) TERM OF LOANS.—Storage facility loans shall be
for a minimum of seven years, and shall be in such
amounts and on such terms and conditions (including
down payment, security requirements, and eligible equip-
ment) as are normal, customary, and appropriate for the
size and commercial nature of the borrower.
(d) ADMINISTRATION.—The sugar storage facility
loan program shall be administered using the services, fa-
cilities, funds, and authorities of the Commodity Credit
Corporation.
CHAPTER 3—PEANUTS
SEC. 161. DEFINITIONS.
In this chapter:
(1) COUNTER-CYCLICAL PAYMENT.—The term
‘‘counter-cyclical payment’’ means a payment made
to producers under section 164.
(2) EFFECTIVE
PRICE.—The term ‘‘effective
price’’ means the price calculated by the Secretary
under section 164 for peanuts to determine whether
counter-cyclical payments are required to be made
under such section for a crop year.
(3) ELIGIBLE PEANUT PRODUCER.—The term
‘‘eligible producer’’ means a producer on a farm in
the United States that produced or attempted to
101
produce peanuts during any or all of crop years
1998, 1999, 2000, and 2001.
(4) FIXED, DECOUPLED PAYMENT.—The term
‘‘fixed, decoupled payment’’ means a payment made
to producers under section 163.
(5) PAYMENT
ACRES.—The term ‘‘payment
acres’’ means 85 percent of the peanut acres on a
farm, as established under section 162, upon which
fixed, decoupled payments and counter-cyclical pay-
ments are to be made.
(6) PEANUT ACRES.—The term ‘‘peanut acres’’
means the number of acres planted and prevented
from being planted to peanuts for harvest on the
farm over a certain number of crop years, as estab-
lished under section 162.
(7) PAYMENT
YIELD.—The term ‘‘payment
yield’’ means the yield established under section 162
for a farm for peanuts.
(8) PRODUCER.—The term ‘‘producer’’ means
an owner, operator, landlord, tenant, or share-
cropper who shares in the risk of producing a crop
of peanuts and who is entitled to share in the crop
available for marketing from the farm, or would
have shared had the crop been produced.
102
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture.
(10) 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.
(11) TARGET PRICE.—The term ‘‘target price’’
means the price per ton of peanuts used to deter-
mine the payment rate for counter-cyclical pay-
ments.
(12) UNITED
STATES.—The term ‘‘United
States’’, when used in a geographical sense, means
all of the States.
SEC. 162. ESTABLISHMENT OF PAYMENT YIELD, PEANUT
ACRES, AND PAYMENT ACRES FOR A FARM.
(a) ESTABLISHMENT OF PAYMENT YIELD.—
(1) ESTABLISHMENT AND PURPOSE.—For the
purpose of making fixed decoupled payments and
counter-cyclical payments to eligible peanut pro-
ducers under this chapter, the Secretary shall pro-
vide for the establishment of a payment yield for
each peanut farm in accordance with this subsection.
(2) AVERAGE YIELD.—The Secretary shall es-
tablish a payment yield for peanuts on a farm by
103
first determining the average yield for peanuts on
the farm for the 1998 through 2001 crop years, ex-
cluding any crop year in which the yield was zero.
If, for any of these four crop years in which peanuts
were planted, the farm would have satisfied the eligi-
bility criteria established to carry out section 1102
of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appro-
priations Act, 1999 (7 U.S.C. 1421 note; Public
Law 105–277), the Secretary shall assign a yield for
that year equal to 65 percent of the county yield, as
determined by the Secretary.
(b) PEANUTS ACRES.—The peanut acres for a farm
shall be equal to the four-year average of acreage actually
planted on the farm in peanuts for harvest during crop
years 1998, 1999, 2000, and 2001 and any acreage on
the farm that the producers were prevented from planting
to peanuts during such crop years because of drought,
flood, or other natural disaster, or other condition beyond
the control of the producer, as determined by the Sec-
retary.
(c) PAYMENTS ACRES.—The payment acres for pea-
nuts on a farm shall be equal to 85 percent of the peanut
acres for the farm.
(d) PREVENTION OF EXCESS PAYMENT ACRES.—
104
(1) REQUIRED REDUCTION.—If the sum of the
peanut acres for a farm, together with the acreage
described in paragraph (2), exceeds the actual crop-
land acreage of the farm, the Secretary shall make
such reductions in the quantity of peanut acres for
the farm as may be necessary so that the sum of the
peanut acres and acreage described in paragraph (2)
does not exceed the actual cropland acreage of the
farm.
(2) OTHER ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following:
(A) Any base acres for the farm under
subtitle A.
(B) Any acreage on the farm enrolled in
the conservation reserve program or wetlands
reserve program under chapter 1 of subtitle D
of title XII of the Food Security Act of 1985
(16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled
in a conservation program for which payments
are made in exchange for not producing an ag-
ricultural commodity on the acreage.
105
SEC. 163. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS
FOR PEANUTS.
(a) PAYMENT REQUIRED.—For each of the 2002
through 2011 crop years, the Secretary shall make fixed,
decoupled payments to eligible peanut producers on a
farm.
(b) PAYMENT RATE.—The payment rate used to
make fixed, decoupled payments with respect to peanuts
for a crop year shall be equal to $36 per ton.
(c) PAYMENT AMOUNT.—The amount of the fixed,
decoupled payment to be paid to the eligible peanut pro-
ducers on a farm for a covered commodity for a crop year
shall be equal to the product of the following:
(1) The payment rate specified in subsection
(b).
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(d) TIME FOR PAYMENT.—
(1) GENERAL
RULE.—Fixed, decoupled pay-
ments shall be paid not later than September 30 of
each of fiscal years 2002 through 2011. In the case
of the 2002 crop, payments may begin to be made
on or after December 1, 2001.
(2) ADVANCE PAYMENTS.—At the option of an
eligible peanut producer, 50 percent of the fixed, de-
coupled payment for a fiscal year shall be paid on
106
a date selected by the producer. The selected date
shall be on or after December 1 of that fiscal year,
and the producer may change the selected date for
a subsequent fiscal year by providing advance notice
to the Secretary.
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a
producer that receives an advance fixed, decoupled
payment for a fiscal year ceases to be an eligible
peanut producer before the date the fixed, decoupled
payment would otherwise have been made by the
Secretary under paragraph (1), the producer shall be
responsible for repaying the Secretary the full
amount of the advance payment.
SEC. 164. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS
FOR PEANUTS.
(a) PAYMENT REQUIRED.—During the 2002 through
2011 crop years for peanuts, the Secretary shall make
counter-cyclical payments with respect to peanuts when-
ever the Secretary determines that the effective price for
peanuts is less than the target price.
(b) EFFECTIVE PRICE.—For purposes of subsection
(a), the effective price for peanuts is equal to the sum
of the following:
(1) The higher of the following:
107
(A) The national average market price re-
ceived by producers during the 12-month mar-
keting year for peanuts, as determined by the
Secretary.
(B) The national average loan rate for a
marketing assistance loan for peanuts in effect
for the same period under this chapter.
(2) The payment rate in effect under section
163 for the purpose of making fixed, decoupled pay-
ments.
(c) TARGET PRICE.—For purposes of subsection (a),
the target price for peanuts shall be equal to $480 per
ton.
(d) PAYMENT RATE.—The payment rate used to
make counter-cyclical payments for a crop year shall be
equal to the difference between—
(1) the target price; and
(2) the effective price determined under sub-
section (b).
(e) PAYMENT AMOUNT.—The amount of the counter-
cyclical payment to be paid to the eligible peanut pro-
ducers on a farm for a crop year shall be equal to the
product of the following:
(1) The payment rate specified in subsection
(d).
108
(2) The payment acres on the farm.
(3) The payment yield for the farm.
(f) TIME FOR PAYMENTS.—
(1) GENERAL RULE.—The Secretary shall make
counter-cyclical payments under this section for a
peanut crop as soon as possible after determining
under subsection (a) that such payments are re-
quired for that crop year.
(2) PARTIAL
PAYMENT.—The Secretary may
permit, and, if so permitted, an eligible peanut pro-
ducer may elect to receive, up to 50 percent of the
projected counter-cyclical payment, as determined by
the Secretary, to be made under this section for a
peanut crop upon completion of the first six months
of the marketing year for that crop. The producer
shall repay to the Secretary the amount, if any, by
which the partial payment exceeds the actual
counter-cyclical payment to be made for that crop.
SEC. 165. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION ON PROVISION OF FIXED, DECOUPLED
PAYMENTS AND COUNTER-CYCLICAL PAY-
MENTS.
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—
(1) REQUIREMENTS.—Before the producers on
a farm may receive fixed, decoupled payments or
109
counter-cyclical payments with respect to the farm,
the producers shall agree, in exchange for the
payments—
(A) to comply with applicable conservation
requirements under subtitle B of title XII of
the Food Security Act of 1985 (16 U.S.C. 3811
et seq.);
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title
XII of the Act (16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 166; and
(D) to use the land on the farm, in an
amount equal to the peanut acres, for an agri-
cultural or conserving use, and not for a non-
agricultural commercial or industrial use, as de-
termined by the Secretary.
(2) COMPLIANCE.—The Secretary may issue
such rules as the Secretary considers necessary to
ensure producer compliance with the requirements of
paragraph (1).
(b) EFFECT OF FORECLOSURE.—A producer may not
be required to make repayments to the Secretary of fixed,
decoupled payments and counter-cyclical payments if the
farm has been foreclosed on and the Secretary determines
110
that forgiving the repayments is appropriate to provide
fair and equitable treatment. This subsection shall not
void the responsibilities of the producer under subsection
(a) if the producer continues or resumes operation, or con-
trol, of the farm. On the resumption of operation or con-
trol over the farm by the producer, the requirements of
subsection (a) in effect on the date of the foreclosure shall
apply.
(c) TRANSFER OR CHANGE OF INTEREST IN FARM.—
(1) TERMINATION.—Except as provided in
paragraph (4), a transfer of (or change in) the inter-
est of a producer in peanut acres for which fixed, de-
coupled payments or counter-cyclical payments are
made shall result in the termination of the payments
with respect to the peanut acres, unless the trans-
feree or owner of the acreage agrees to assume all
obligations under subsection (a). The termination
shall be effective on the date of the transfer or
change.
(2) TRANSFER OF PAYMENT BASE.—There is
no restriction on the transfer of a farm’s peanut
acres or payment yield as part of a change in the
producers on the farm.
(3) MODIFICATION.—At the request of the
transferee or owner, the Secretary may modify the
111
requirements of subsection (a) if the modifications
are consistent with the objectives of such subsection,
as determined by the Secretary.
(4) EXCEPTION.—If a producer entitled to a
fixed, decoupled payment or counter-cyclical pay-
ment dies, becomes incompetent, or is otherwise un-
able to receive the payment, the Secretary shall
make the payment, in accordance with regulations
prescribed by the Secretary.
(d) ACREAGE REPORTS.—As a condition on the re-
ceipt of any benefits under this chapter, the Secretary
shall require producers to submit to the Secretary acreage
reports.
(e) TENANTS
AND SHARECROPPERS.—In carrying
out this chapter, the Secretary shall provide adequate
safeguards to protect the interests of tenants and share-
croppers.
(f) SHARING OF PAYMENTS.—The Secretary shall
provide for the sharing of fixed, decoupled payments and
counter-cyclical payments among the eligible peanut pro-
ducers on a farm on a fair and equitable basis.
SEC. 166. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS.—Subject to subsection (b),
any commodity or crop may be planted on peanut acres
on a farm.
113
any crop year in which no plantings were
made), as determined by the Secretary;
and
(ii) fixed, decoupled payments and
counter-cyclical payments shall be reduced
by an acre for each acre planted to the
fruit or vegetable.
SEC. 167. MARKETING ASSISTANCE LOANS AND LOAN DEFI-
CIENCY PAYMENTS FOR PEANUTS.
(a) NONRECOURSE LOANS AVAILABLE.—
(1) AVAILABILITY.—For each of the 2002
through 2011 crops of peanuts, the Secretary shall
make available to producers on a farm nonrecourse
marketing assistance loans for peanuts 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).
(2) ELIGIBLE PRODUCTION.—Any production of
peanuts on a farm shall be eligible for a marketing
assistance loan under this subsection.
(3) TREATMENT
OF
CERTAIN
COMMINGLED
COMMODITIES.—In carrying out this subsection, the
Secretary shall make loans to a producer that is oth-
erwise eligible to obtain a marketing assistance loan,
but for the fact the peanuts owned by the producer
114
are commingled with other peanuts in facilities unli-
censed for the storage of agricultural commodities
by the Secretary or a State licensing authority, if
the producer obtaining the loan agrees to imme-
diately redeem the loan collateral in accordance with
section 166 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7286).
(4) OPTIONS FOR OBTAINING LOAN.—A mar-
keting assistance loan under this subsection, and
loan deficiency payments under subsection (e), may
be obtained at the option of the producer through—
(A) a designated marketing association of
peanut producers that is approved by the Sec-
retary;
(B) a loan servicing agent approved by the
Secretary; or
(C) the Farm Service Agency.
(5) LOAN SERVICING AGENT.—As a condition
of the Secretary’s approval of an entity to serve as
a loan servicing agent or to handle or store peanuts
for producers that receive any marketing loan bene-
fits, the entity shall agree to provide adequate stor-
age (if available) and handling of peanuts at the
commercial rate to other approved loan servicing
agents and marketing associations.
115
(b) LOAN RATE.—The loan rate for a marketing as-
sistance loan under for peanuts subsection (a) shall be
equal to $350 per ton.
(c) TERM OF LOAN.—
(1) IN GENERAL.—A marketing assistance loan
for peanuts under subsection (a) shall have a term
of nine months beginning on the first day of the
first month after the month in which the loan is
made.
(2) EXTENSIONS PROHIBITED.—The Secretary
may not extend the term of a marketing assistance
loan under subsection (a).
(d) REPAYMENT RATE.—The Secretary shall permit
producers to repay a marketing assistance loan for pea-
nuts under subsection (a) at a rate that is the lesser of—
(1) the loan rate established for the commodity
under subsection (b), plus interest (as determined by
the Secretary); or
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
peanuts by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and
116
(D) allow peanuts produced in the United
States to be marketed freely and competitively,
both domestically and internationally.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—The Secretary may make
loan deficiency payments available to producers who,
although eligible to obtain a marketing assistance
loan for peanuts under subsection (a), agree to forgo
obtaining the loan for the peanuts in return for pay-
ments under this subsection.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by
multiplying—
(A) the loan payment rate determined
under paragraph (3) for peanuts; by
(B) the quantity of the peanuts produced
by the eligible producers, excluding any quan-
tity for which the producers obtain a loan under
subsection (a).
(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); exceeds
117
(B) the rate at which a loan may be repaid
under subsection (d).
(4) TIME FOR PAYMENT.—The Secretary shall
make a payment under this subsection to a producer
with respect to a quantity of peanuts as of the ear-
lier of the following:
(A) The date on which the producer mar-
keted or otherwise lost beneficial interest in the
peanuts, as determined by the Secretary.
(B) The date the producer requests the
payment.
(f) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of
a marketing assistance loan under subsection (a), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet-
land protection requirements under subtitle C of title XII
of the Act (16 U.S.C. 3821 et seq.) during the term of
the loan.
(g) REIMBURSABLE AGREEMENTS AND PAYMENT OF
EXPENSES.—To the extent practicable, the Secretary
shall implement any reimbursable agreements or provide
for the payment of expenses under this chapter in a man-
118
ner that is consistent with such activities in regard to
other commodities.
(h) TERMINATION OF SUPERSEDED PRICE SUPPORT
AUTHORITY.—
(1) REPEAL.—Section 155 of the Federal Agri-
culture Improvement and Reform Act of 1996 (7
U.S.C. 7271) is repealed.
(2) CONFORMING AMENDMENTS.—The Agricul-
tural Act of 1949 (7 U.S.C. 1441 et seq.) is
amended—
(A) in section 101(b) (7 U.S.C. 1441(b)),
by striking ‘‘and peanuts’’; and
(B) in section 408(c) (7 U.S.C. 1428(c)),
by striking ‘‘peanuts,’’.
SEC. 168. QUALITY IMPROVEMENT.
(a) OFFICIAL INSPECTION.—
(1) MANDATORY
INSPECTION.—All peanuts
placed under a marketing assistance loan under sec-
tion 167 shall be officially inspected and graded by
Federal or State inspectors.
(2) 
OPTIONAL
INSPECTION.—Peanuts 
not
placed under a marketing assistance loan may be
graded at the option of the producer.
(b) TERMINATION
OF
PEANUT
ADMINISTRATIVE
COMMITTEE.—The Peanut Administrative Committee es-
119
tablished under Marketing Agreement No. 1436, which
regulates the quality of domestically produced peanuts
under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, is terminated.
(c) 
ESTABLISHMENT
OF
PEANUT
STANDARDS
BOARD.—The Secretary shall establish a Peanut Stand-
ards Board for the purpose of assisting in the establish-
ment of quality standards with respect to peanuts. The
authority of the Board is limited to assisting in the estab-
lishment of quality standards for peanuts. The members
of the Board should fairly reflect all segments of the pea-
nut industry.
(d) EFFECTIVE DATE.—This section shall take effect
with the 2002 crop of peanuts.
SEC. 169. PAYMENT LIMITATIONS.
For purposes of sections 1001 through 1001C of the
Food Security Act of 1985 (7 U.S.C. 1308 through 1308–
3), separate payment limitations shall apply to peanuts
with respect to—
(1) fixed, decoupled payments;
(2) counter-cyclical payments; and
(3) limitations on marketing loan gains and
loan deficiency payments.
120
SEC. 170. TERMINATION OF MARKETING QUOTA PROGRAMS
FOR PEANUTS AND COMPENSATION TO PEA-
NUT QUOTA HOLDERS FOR LOSS OF QUOTA
ASSET VALUE.
(a) REPEAL OF MARKETING QUOTA.—Part VI of
subtitle B of title III of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1357–1359a), relating to peanuts, is
repealed.
(b) COMPENSATION REQUIRED.—During fiscal years
2002 through 2006, the Secretary shall make payments
under this section to eligible peanut quota holders to com-
pensate them for the lost value of the quota on account
of the repeal of the marketing quota program for peanuts
under subsection (a).
(c) TIME FOR PAYMENT.—The payments required by
this section shall be provided in five equal installments not
later than September 30 of each of fiscal years 2002
through 2006.
(d) PAYMENT AMOUNT.—The amount of the pay-
ment for a fiscal year to a peanut quota holder under this
section shall be equal to the product obtained by
multiplying—
(1) $0.10 per pound; by
(2) the actual farm poundage quota (excluding
seed and experimental peanuts) established for the
peanut quota holder’s farm under section 358–1(b)
121
of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1358–1(b)) for the 2001 marketing year.
(e) ASSIGNMENT OF PAYMENTS.—The provisions of
section 8(g) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590h(g)), relating to assignment of
payments, shall apply to the payments made to peanut
quota holders under this section. The peanut quota holder
making the assignment, or the assignee, shall provide the
Secretary with notice, in such manner as the Secretary
may require, of any assignment made under this sub-
section.
(f) PEANUT QUOTA HOLDER DEFINED.—In this sec-
tion, the term ‘‘peanut quota holder’’ means a person or
enterprise that owns a farm that—
(1) was eligible, immediately before the date of
the enactment of this Act, to have a peanut quota
established upon it;
(2) if there are not quotas currently established,
would be eligible to have a quota established upon
it for the succeeding crop year, in the absence of the
amendment made by subsection (a); or
(3) is otherwise a farm that was eligible for
such a quota at the time the general quota establish-
ment authority was repealed.
122
The Secretary shall apply this definition without regard
to temporary leases or transfers or quotas for seed or ex-
perimental purposes.
Subtitle D—Administration
SEC. 181. ADMINISTRATION GENERALLY.
(a) USE OF COMMODITY CREDIT CORPORATION.—
The Secretary shall carry out this title through the Com-
modity Credit Corporation.
(b) DETERMINATIONS
BY SECRETARY.—A deter-
mination made by the Secretary under this title shall be
final and conclusive.
(c) REGULATIONS.—Not later than 90 days after the
date of the enactment of this Act, the Secretary and the
Commodity Credit Corporation, as appropriate, shall issue
such regulations as are necessary to implement this title.
The issuance of the regulations shall be made without re-
gard to—
(1) the notice and comment provisions of sec-
tion 553 of title 5, United States Code;
(2) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804) relating to notices of proposed rulemaking
and public participation in rulemaking; and
123
(3) chapter 35 of title 44, United States Code
(commonly know as the ‘‘Paperwork Reduction
Act’’).
(d) PROTECTION OF PRODUCERS.—The protection
afforded producers that elect the option to accelerate the
receipt of any payment under a production flexibility con-
tract payable under the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7212 note) shall also
apply to the advance payment of fixed, decoupled pay-
ments and counter-cyclical payments.
SEC. 182. EXTENSION OF SUSPENSION OF PERMANENT
PRICE SUPPORT AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—
Section 171(a)(1) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is amend-
ed by striking ‘‘2002’’ both places it appears and inserting
‘‘2011’’.
(b) 
AGRICULTURAL
ACT
OF
1949.—Section
171(b)(1) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7301(b)(1)) is amended
by striking ‘‘2002’’ both places it appears and inserting
‘‘2011’’.
(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—
Section 171(c) of the Federal Agriculture Improvement
124
and Reform Act of 1996 (7 U.S.C. 7301(c)) is amended
by striking ‘‘2002’’ and inserting ‘‘2011’’.
SEC. 183. LIMITATIONS.
(a) LIMITATION ON AMOUNTS RECEIVED.—Section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308)
is amended—
(1) in paragraph (1)—
(A) by striking ‘‘PAYMENTS UNDER PRO-
DUCTION FLEXIBILITY CONTRACTS’’ and insert-
ing ‘‘FIXED, DECOUPLED PAYMENTS’’;
(B) by striking ‘‘contract payments made
under the Agricultural Market Transition Act
to a person under 1 or more production flexi-
bility contracts’’ and inserting ‘‘fixed, decoupled
payments made to a person’’;
(C) by striking ‘‘4’’ and inserting ‘‘5’’;
(2) in paragraphs (2) and (3)—
(A) by striking ‘‘payments specified’’ and
all that follows through ‘‘and oilseeds’’ and in-
serting ‘‘following payments that a person shall
be entitled to receive’’;
(B) by striking the period at the end of
paragraph (2) and all that follows through ‘‘the
following’’ in paragraph (3);
125
(C) by striking ‘‘section 131’’ and all that
follows through ‘‘section 132’’ and inserting
‘‘section 121 of the Agricultural Act of 2001
for a crop of any covered commodity at a lower
level than the original loan rate established for
the commodity under section 122’’; and
(D) by striking ‘‘section 135’’ and insert-
ing ‘‘section 125’’; and
(3) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3) LIMITATION ON COUNTER-CYCLICAL PAY-
MENTS.—The amount specified in paragraph (2) is
the limit on the total amount of counter-cyclical pay-
ments that a person may receive during any crop
year.’’.
(b) DEFINITIONS.—Paragraph (4) of section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308) is amend-
ed to read as follows:
‘‘(4) DEFINITIONS.—In this title, the terms
‘covered commodity’, ‘counter-cyclical payment’, and
‘fixed, decoupled payment’ have the meaning given
those terms in section 100 of the Agricultural Act
of 2001.’’.
(c) TRANSITION.—Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308), as in effect on the day before
126
the date of the enactment of this Act, shall continue to
apply with respect to fiscal year 2001 and the 2001 crop
of any covered commodity.
SEC. 184. ADJUSTMENTS OF LOANS.
Section 162(b) of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 7282(b)) is
amended by striking ‘‘this title’’ and inserting ‘‘this title
and title I of the Agricultural Act of 2001’’.
SEC. 185. PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES.
Section 164 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7284) is amended by
striking ‘‘this title’’ both places it appears and inserting
‘‘this title and title I of the Agricultural Act of 2001’’.
SEC. 186. EXTENSION OF EXISTING ADMINISTRATIVE AU-
THORITY REGARDING LOANS.
Section 166 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7286) is amended by
striking ‘‘subtitle C’’ both places it appears and inserting
‘‘subtitle C of this title and title I of the Agricultural Act
of 2001’’.
SEC. 187. ASSIGNMENT OF PAYMENTS.
The provisions of section 8(g) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590h(g)), re-
lating to assignment of payments, shall apply to payments
127
made under the authority of this Act. The producer mak-
ing the assignment, or the assignee, shall provide the Sec-
retary with notice, in such manner as the Secretary may
require, of any assignment made under this section.
TITLE II—CONSERVATION
Subtitle A—Definition
SEC. 201. DEFINITION OF AGRICULTURAL COMMODITY.
Section 1201(a)(1) of the Food Security Act of 1985
(16 U.S.C. 3801(a)(1)) is amended to read as follows:
‘‘(1) AGRICULTURAL COMMODITY.—The term ‘agri-
cultural commodity’ means any agricultural commodity
planted or produced in a State.’’.
Subtitle B—Wetland Conservation
Program
SEC. 211. INELIGIBILITY FOR CERTAIN LOANS AND PAY-
MENTS.
Section 1221(b) of the Food Security Act of 1985
(16 U.S.C. 3821(b)) is amended by inserting ‘‘relating to
any commodity produced during that crop year by such
person’’ before ‘‘for which the person’’.
128
Subtitle 
C—Environmental 
Con-
servation Acreage Reserve Pro-
gram
SEC. 221. ELIMINATION OF GENERAL PROVISIONS.
Chapter 1 of subtitle D of title XII of the Food Secu-
rity Act of 1985 is amended—
(1) by striking the heading for subchapter A;
(2) by striking section 1230 (16 U.S.C. 3830);
(3) in section 1230A (16 U.S.C. 3830a), by
striking ‘‘chapter’’ each place it appears and insert-
ing ‘‘title’’;
(4) by redesignating section 1230A as section
1244; and
(5) by transferring section 1244 (as so redesig-
nated) to the end of subtitle E.
Subtitle D—Conservation Reserve
Program
SEC. 231. REAUTHORIZATION.
Section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amended in each of subsections (a),
(b)(3), and (d), by striking ‘‘2002’’ and inserting ‘‘2011’’.
SEC. 232. ENROLLMENT.
(a) ELIGIBILITY.—Section 1231(b) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831(b)) is amended—
129
(1) by striking paragraphs (2) and (3) and in-
serting the following:
‘‘(2) marginal pasturelands devoted to natural
vegetation in or near riparian areas or for similar
water quality purposes;’’;
(2) in paragraph (4)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) if the Secretary determines that—
‘‘(i) the lands contribute to the deg-
radation of soil, water, or air quality, or
would pose an on-site or off-site environ-
mental threat to soil, water, or air quality
if permitted to remain in agricultural pro-
duction; and
‘‘(ii) soil, water, and air quality objec-
tives with respect to the land cannot be
achieved under the environmental quality
incentives program established under chap-
ter 4;’’;
(B) by striking ‘‘or’’ at the end of subpara-
graph (C);
(C) by striking the period at the end of
subparagraph (D) and inserting ‘‘; or’’; and
(D) by adding at the end the following:
130
‘‘(E) if the Secretary determines that en-
rollment of such lands would contribute to con-
servation of ground or surface water.’’; and
(3) by redesignating paragraph (4) as para-
graph (3).
(b) INCREASE IN MAXIMUM ENROLLMENT.—Section
1231(d) of such Act (16 U.S.C. 3831(d)) is amended by
striking ‘‘36,400,000’’ and inserting ‘‘40,000,000’’.
(c) ELIGIBILITY ON CONTRACT EXPIRATION.—Sec-
tion 1231(f) of such Act (16 U.S.C. 3831(f)) is amended
to read as follows:
‘‘(f) ELIGIBILITY ON CONTRACT EXPIRATION.—On
the expiration of a contract entered into under this sub-
chapter, the land subject to the contract shall be eligible
to be re-enrolled in the conservation reserve.’’.
(d) BALANCE AMONG CONTRACTS AWARDED.—
(1) IN GENERAL.—Section 1231 of such Act
(16 U.S.C. 3831) is amended by adding at the end
the following:
‘‘(i) BALANCE AMONG CONTRACTS AWARDED.—In
determining the acceptability of contract offers under this
subchapter, the Secretary shall balance conservation inter-
ests in soil erosion, water quality, and wildlife habitat.’’.
(2) REGULATIONS.—Not later than 180 days
after the date of the enactment of this Act, the Sec-
131
retary of Agriculture shall issue final regulations im-
plementing section 1231(i) of the Food Security Act
of 1985, as added by paragraph (1) of this sub-
section.
SEC. 233. DUTIES OF OWNERS AND OPERATORS.
Section 1232 of the Food Security Act of 1985 (16
U.S.C. 3832) is amended—
(1) in subsection (a)—
(A) in paragraph (3), by inserting ‘‘as de-
scribed in section 1232(a)(7) or for other pur-
poses’’ before ‘‘as permitted’’;
(B) in paragraph (4), by inserting ‘‘where
practicable, or maintain existing cover’’ before
‘‘on such land’’; and
(C) in paragraph (7), by striking ‘‘Sec-
retary—’’ and all that follows and inserting
‘‘Secretary may permit—
‘‘(A) managed grazing and limited haying,
in which case the Secretary shall reduce the
rental payment otherwise payable under the
contract by an amount commensurate with the
economic value of the activity;
‘‘(B) wind turbines for the provision of
wind energy, whether or not commercial in na-
ture; and
132
‘‘(C) land subject to the contract to be
harvested for recovery of biomass used in en-
ergy production, in which case the Secretary
shall reduce the rental payment otherwise pay-
able under the contract by an amount commen-
surate with the economic value of such activ-
ity;’’; and
(2) by striking subsections (c) and (d) and re-
designating subsection (e) as subsection (c).
SEC. 234. DUTIES OF THE SECRETARY.
Section 1233 of the Food Security Act of 1985 (16
U.S.C. 3833) is amended—
(1) in paragraph (1), by adding ‘‘and’’ at the
end;
(2) in paragraph (2), by striking ‘‘; and’’ and
inserting a period; and
(3) striking paragraph (3).
SEC. 235. ACCEPTANCE OF CONTRACT OFFERS.
Section 1234(c) of the Food Security Act of 1985 (16
U.S.C. 3834(c)) is amended by striking paragraph (3).
SEC. 236. CONTRACTS.
(a) IN GENERAL.—Section 1235 of the Food Security
Act of 1985 (16 U.S.C. 3835) is amended—
(1) in subsection (a)(1)—
133
(A) in subparagraph (A), by adding ‘‘or’’
at the end;
(B) by striking subparagraphs (B) and
(C); and
(C) by redesignating subparagraph (D)
and subparagraph (B).
(2) by adding at the end the following:
‘‘(f) RESTORATION OF BASE.—On the expiration of
a contract entered into under this subchapter, the Sec-
retary shall restore the base, contract acreage, quota, or
allotment history applicable to the land when the contract
was entered into.’’.
(b) 
CONSERVATION
RESERVE
PAYMENT.—Sub-
chapter B of chapter 1 of subtitle D of title XII of such
Act (16 U.S.C. 3831–3836) is amended by striking ‘‘rent-
al payment’’ each place it appears and inserting ‘‘con-
servation reserve payment’’.
Subtitle E—Wetlands Reserve
Program
SEC. 241. ENROLLMENT.
(a) MAXIMUM.—Section 1237(b) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837(b)) is amended by strik-
ing paragraph (1) and inserting the following:
‘‘(1) ANNUAL
ENROLLMENT.—In addition to
any acres enrolled in the wetlands reserve program
135
‘‘(c) PRIORITY.—For purposes of enrolling acreage in
the wetlands reserve program, the Secretary shall give pri-
ority to land that maximizes wetland functions and values.
‘‘(d) INELIGIBLE LAND.—The Secretary may not ac-
quire an easement under this chapter on land which is—
‘‘(1) enrolled in the conservation reserve pro-
gram established under subchapter B; or
‘‘(2) subject to a contract under the environ-
mental quality incentives program established by
chapter 4.’’.
(d) CONFORMING AMENDMENTS.—Section 1237 of
such Act (16 U.S.C. 3837) is amended—
(1) by redesignating subsection (f) as sub-
section (e); and
(2) by striking subsection (g).
SEC. 242. EASEMENTS AND AGREEMENTS.
Section 1237A of the Food Security Act of 1985 (16
U.S.C. 3837a) is amended—
(1) in subsection (b), by striking paragraph (2)
and inserting the following:
‘‘(2) prohibits the alteration of wildlife habitat
and other natural features of such land, unless spe-
cifically permitted by the plan;’’;
(2) in subsection (e), by striking paragraph (2)
and inserting the following:
137
‘‘(1) the new ownership was acquired by will or
succession as a result of the death of the previous
owner; or
‘‘(2) the ownership change occurred due to fore-
closure on the land and the owner of the land imme-
diately before the foreclosure exercises a right of re-
demption from the mortgage holder in accordance
with State law.’’.
Subtitle F—Environmental Quality
Incentives Program
SEC. 251. PURPOSES.
Section 1240 of the Food Security Act of 1985 (16
U.S.C. 3839aa) is amended—
(1) by striking ‘‘to—’’ and all that follows
through ‘‘provides—’’ and inserting ‘‘provide—’’;
(2) by striking ‘‘that face the most serious
threats to’’ and inserting ‘‘to address environmental
needs and provide benefits to air,’’;
(3) by redesignating the subparagraphs (A)
through (D) that follow the matter amended by
paragraph (2) of this section as paragraphs (1)
through (4), respectively;
(4) by moving each of such redesignated
provisions 2 ems to the left; and
138
(5) by striking ‘‘farmers and ranchers’’
each place it appears and inserting ‘‘pro-
ducers’’.
SEC. 252. DEFINITIONS.
Section 1240A of the Food Security Act of 1985 (16
U.S.C. 3839aa–1) is amended—
(1) in paragraph (1)—
(A) by inserting ‘‘non-industrial private
forest land,’’ before ‘‘and other land’’; and
(B) by striking ‘‘poses a serious threat’’
and all that follows and inserting ‘‘provides in-
creased environmental benefits to air, soil,
water, or related resources.’’;
(2) in paragraph (4), by inserting ‘‘, including
non-industrial private forestry’’ before the period;
and
(3) in paragraph (5), by striking ‘‘permanent
wildlife habitat,’’.
SEC. 253. ESTABLISHMENT AND ADMINISTRATION.
(a) REAUTHORIZATION.—Section 1240B(a)(1) of the
Food Security Act of 1985 (16 U.S.C. 3839aa–2(a)(1))
is amended by striking ‘‘2002’’ and inserting ‘‘2011’’.
(b) TERM OF CONTRACTS.—Section 1240B(b)(2) of
such Act (16 U.S.C. 3839aa–2(b)(2)) is amended by strik-
139
ing ‘‘not less than 5, nor more than 10, years’’ and insert-
ing ‘‘not less than 1 year, nor more than 10 years’’.
(c) 
STRUCTURAL
PRACTICES.—Section
1240B(c)(1)(B) of such Act (16 U.S.C. 3839aa–
2(c)(1)(B)) is amended to read as follows:
‘‘(B) achieving the purposes established
under this subtitle.’’.
(d) ELIMINATION OF CERTAIN LIMITATIONS ON ELI-
GIBILITY
FOR
COST-SHARE
PAYMENTS.—Section
1240B(e)(1) of such Act (16 U.S.C. 3839aa–2(e)(1)) is
amended—
(1) by striking subparagraph (B) and redesig-
nating subparagraph (C) as subparagraph (B); and
(2) in subparagraph (B) (as so redesignated),
by striking ‘‘or 3’’.
(e) INCENTIVE PAYMENTS.—Section 1240B of such
Act (16 U.S.C. 3839aa–2) is amended—
(1) in subsection (e)—
(A) in the subsection heading, by striking
‘‘, INCENTIVE PAYMENTS,’’; and
(B) by striking paragraph (2); and
(2) by redesignating subsection (f) as sub-
section (g) and inserting after subsection (e) the fol-
lowing:
140
‘‘(f) FARMLAND CONSERVATION INCENTIVE PAY-
MENTS.—
‘‘(1) IN GENERAL.—The Secretary may make
incentive payments in an amount and at a rate de-
termined by the Secretary to be necessary to encour-
age a producer to perform multiple land manage-
ment practices and to promote the enhancement of
soil, water, air, and related resources.
‘‘(2) SPECIAL
RULE.—In determining the
amount and rate of incentive payments, the Sec-
retary may accord great weight to those practices
that include residue, nutrient, pest, invasive species,
and air quality management.’’.
SEC. 254. EVALUATION OF OFFERS AND PAYMENTS.
Section 1240C of the Food Security Act of 1985 (16
U.S.C. 3839aa–3) is amended by striking paragraphs (1)
through (3) and inserting the following:
‘‘(1) aid farmers and ranchers in complying
with this title and Federal and State environmental
laws, and encourage environmental enhancement and
conservation; and
‘‘(2) maximize the beneficial usage of animal
manure and other similar soil amendments which
improve soil health, tilth, and water-holding capac-
ity.’’.
141
SEC. 255. DUTIES OF PRODUCERS.
Section 1240D of the Food Security Act of 1985 (16
U.S.C. 3839aa–4) is amended by striking paragraph (2)
and redesignating paragraphs (3) through (6) as para-
graphs (2) through (5), respectively.
SEC. 256. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM PLAN.
Section 1240E(a) of the Food Security Act of 1985
(16 U.S.C. 3839aa–5(a)) is amended by striking ‘‘that in-
corporates such conservation practices’’ and all that fol-
lows and inserting ‘‘that provides or will continue to pro-
vide increased environmental benefits to air, soil, water,
or related resources.’’.
SEC. 257. DUTIES OF THE SECRETARY.
Section 1240F of the Food Security Act of 1985 (16
U.S.C. 3839aa–6) is amended by striking paragraphs (2)
and (3) and redesignating paragraphs (4) and (5) as para-
graphs (2) and (3), respectively.
SEC. 258. LIMITATION ON PAYMENTS.
Section 1240G of the Food Security Act of 1985 (16
U.S.C. 3839aa–7) is amended—
(1) in subsection (a)—
(A) 
in 
paragraph 
(1), 
by 
striking
‘‘$10,000’’ and inserting ‘‘$50,000’’; and
(B) 
in 
paragraph 
(2), 
by 
striking
‘‘$50,000’’ and inserting ‘‘$200,000’’;
142
(2) in subsection (b), by striking ‘‘the maxi-
mization of environmental benefits per dollar ex-
pended and’’; and
(3) by striking subsection (c).
SEC. 259. GROUNDWATER CONSERVATION.
Section 1240H of the Food Security Act of 1985 (16
U.S.C. 3839aa–8) is amended to read as follows:
‘‘SEC. 1240H. GROUNDWATER CONSERVATION.
‘‘The Secretary may use $67,500,000 of the funds
of the Commodity Credit Corporation in each of fiscal
years 2002 through 2011 to provide cost-share payments
and low-interest loans to encourage groundwater conserva-
tion, including irrigation system improvement, and to pro-
vide incentive payments for capping wells, reducing use
of water for irrigation, and switching from irrigation to
dryland farming.’’.
Subtitle G—Funding and
Administration
SEC. 261. REAUTHORIZATION.
Section 1241(a) of the Food Security Act of 1985
(16 U.S.C. 3841(a)) is amended by striking ‘‘2002’’ and
inserting ‘‘2011’’.
SEC. 262. FUNDING.
Section 1241(b)(1) of the Food Security Act of 1985
(16 U.S.C. 3841(b)(1)) is amended—
143
(1) by striking ‘‘and’’ the 1st place it appears;
(2) by striking ‘‘$130,000,000’’ and all that fol-
lows through ‘‘2002’’ and inserting ‘‘$200,000,000
for fiscal year 2001, and $1,200,000,000 for each of
fiscal years 2002 through 2011’’.
SEC. 263. ALLOCATION FOR LIVESTOCK PRODUCTION.
Section 1241(b)(2) of the Food Security Act of 1985
(16 U.S.C. 3841(b)(2)) is amended by striking ‘‘2002’’
and inserting ‘‘2011’’.
SEC. 264. USE OF OTHER AGENCIES.
Section 1242(a) of the Food Security Act of 1985
(16 U.S.C. 3842(a)) is amended to read as follows:
‘‘(a) PRINCIPAL AGENCY.—The Secretary shall use
the Farm Service Agency in carrying out subtitles B and
C, and subchapter B of chapter 1, and chapters 2 and
4, of subtitle D.’’.
SEC. 265. ADMINISTRATION AND TECHNICAL ASSISTANCE.
(a) BROADENING OF EXCEPTION TO ACREAGE LIMI-
TATION.—Section 1243(b)(2) of the Food Security Act of
1985 (16 U.S.C. 3843(b)(2)) is amended by striking
‘‘that—’’ and all that follows and inserting ‘‘that the ac-
tion would not adversely affect the local economy of the
county.’’.
(b) RULES GOVERNING PROVISION OF TECHNICAL
ASSISTANCE.—Section 1243(d) of the Food Security Act
144
of 1985 (16 U.S.C. 3843(d)) is amended to read as fol-
lows:
‘‘(d) RULES GOVERNING PROVISION OF TECHNICAL
ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall provide
technical assistance under this title to a producer el-
igible for such assistance, by providing the assist-
ance directly or, at the option of the producer,
through an approved third party if available.
‘‘(2) AMOUNT.—The Secretary shall determine
the amount of technical assistance to be provided to
a producer under this title, and on making the de-
termination, shall make the amount available to—
‘‘(A) if the producer has selected an ap-
proved third party to provide the assistance,
such approved third party; or
‘‘(B) otherwise, the Natural Resources
Conservation Service.
‘‘(3) FUNDING SOURCE; LIMITATION.—
‘‘(A) USE OF CCC FUNDS.—Subject to sub-
paragraph (B), the Secretary may use not more
than $100,000,000 of funds of the Commodity
Credit Corporation for each of fiscal years 2002
through 2011 to carry out this subsection.
145
‘‘(B) LIMITATION.—The total amount ex-
pended under this subsection for fiscal years
2002 
through 
2011 
may 
not 
exceed
$850,000,000.
‘‘(4) CERTIFICATION
OF
THIRD-PARTY
PRO-
VIDERS.—
‘‘(A) IN
GENERAL.—Not later than 6
months after the date of the enactment of this
Act, the Secretary of Agriculture shall, by regu-
lation, establish a system for approving persons
to provide technical assistance pursuant to this
title. In the system, the Secretary shall give pri-
ority to a person who has a memorandum of
understanding regarding the provision of tech-
nical assistance in place with the Secretary be-
fore the date of the enactment of this sub-
section.
‘‘(B) 
EXPERTISE
REQUIRED.—In 
pre-
scribing such regulations, the Secretary shall
ensure that persons with expertise in the tech-
nical aspects of conservation planning, water-
shed planning, environmental engineering, in-
cluding commercial entities, nonprofit entities,
State or local governments or agencies, and
other Federal agencies, are eligible to become
146
approved providers of such technical assist-
ance.’’.
(b) CONFORMING AMENDMENTS.—
(1) HIGHLY ERODIBLE LAND CONSERVATION.—
Section 1213(e) of such Act (16 U.S.C. 3812a(e)) is
amended to read as follows:
‘‘(e) TECHNICAL ASSISTANCE.—A producer who is
receiving a benefit under this subtitle shall be eligible to
receive technical assistance in accordance with section
1243(d) throughout the development, revision, and appli-
cation of the conservation plan and any conservation sys-
tem of the producer.’’.
(2) CONSERVATION RESERVE PROGRAM.—Sec-
tion 1233 of such Act (16 U.S.C. 3833) is
amended—
(A) by inserting ‘‘(a) IN GENERAL.—’’ be-
fore ‘‘In return’’;
(B) by adding ‘‘and’’ at the end of para-
graph (1);
(C) by striking ‘‘; and’’ at the end of para-
graph (2)(B) and inserting a period;
(D) by striking paragraph (3); and
(E) by adding after and below the end the
following:
147
‘‘(b) TECHNICAL ASSISTANCE.—An owner or oper-
ator who is receiving a benefit under this subtitle shall
be eligible to receive technical assistance in accordance
with section 1243(d) to assist the owner or operator in
carrying out a contract entered into under section 1232.’’.
(3) WETLANDS
RESERVE
PROGRAM.—Section
1237C(b) of such Act (16 U.S.C. 3837c(b)) is
amended—
(A) in the subsection heading, by striking
‘‘AND TECHNICAL ASSISTANCE’’; and
(B) by striking paragraph (3) and insert-
ing the following:
‘‘(2) TECHNICAL ASSISTANCE.—A producer who
is receiving a benefit under this subtitle shall be eli-
gible to receive technical assistance in accordance
with section 1243(d) to assist the producer in com-
plying with the terms of easements and restoration
cost share agreements under this subchapter.’’.
(4) ENVIRONMENTAL
QUALITY
INCENTIVES
PROGRAM.—
(A) IN GENERAL.—Section 1240B of such
Act (16 U.S.C. 3839aa–2) is amended—
(i) in subsection (a)(1), by striking
‘‘technical assistance,’’; and
(ii) in subsection (e)—
148
(I) in the subsection heading, by
striking ‘‘AND
TECHNICAL
ASSIST-
ANCE’’; and
(II) by striking paragraph (3)
and inserting the following:
‘‘(2) TECHNICAL ASSISTANCE.—A producer who
is receiving a benefit under this subtitle shall be eli-
gible to receive technical assistance in accordance
with section 1243(d) to assist the producer in writ-
ing and developing proposals and plans for contracts
under this chapter, and in the implementation of
structural practices and land management practices
covered by such contracts.’’.
(B) CONFORMING AMENDMENTS.—Section
1241(b) of such Act (16 U.S.C. 3841(b)) is
amended—
(i) in paragraph (1), by striking
‘‘technical assistance,’’; and
(ii) in paragraph (2), by striking
‘‘technical assistance’’ and all that follows
through ‘‘education’’ and inserting ‘‘cost-
share payments and incentive payments’’.
150
‘‘SEC. 1528. STATEMENT OF PURPOSE.
‘‘It is the purpose’’; and
(2) by inserting ‘‘through designated RC&D
councils’’ before ‘‘in rural areas’’.
(b) DEFINITIONS.—Section 1529 of such Act (16
U.S.C. 3452) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1529. As used in this sub-
title—’’ and inserting the following:
‘‘SEC. 1529. DEFINITIONS.
‘‘In this title:’’;
(2) in paragraph (1)—
(A) in the matter preceding subparagraph
(A), by inserting ‘‘RC&D council’’ before ‘‘area
plan’’;
(B) in subparagraph (B), by striking
‘‘through control of nonpoint sources of pollu-
tion’’;
(C) in subparagraph (C)—
(i) by striking ‘‘natural resources
based’’ and inserting ‘‘resource-based’’;
(ii) by striking ‘‘development of aqua-
culture,’’;
(iii) by striking ‘‘and satisfaction’’
and inserting ‘‘satisfaction’’; and
151
(iv) by inserting ‘‘food security, eco-
nomic development, and education’’ before
the semicolon; and
(D) in subparagraph (D), by striking
‘‘other’’ and inserting ‘‘land management’’;
(3) in paragraph (3), by striking ‘‘any State,
local unit of government, or local nonprofit organiza-
tion’’ and inserting ‘‘the designated RC&D council’’;
(4) by striking paragraphs (4) through (6) and
inserting the following:
‘‘(4)(A) The term ‘financial assistance’ means
the Secretary may—
‘‘(i) provide funds directly to RC&D coun-
cils or associations of RC&D councils through
grants, cooperative agreements, and interagency
agreements that directly implement RC&D area
plans; and
‘‘(ii) may join with other federal agencies
through interagency agreements and other ar-
rangements as needed to carry out the pro-
gram’s purpose.
‘‘(B) Funds may be used for such things as—
‘‘(i) technical assistance;
152
‘‘(ii) financial assistance in the form of
grants for planning, analysis and feasibility
studies, and business plans;
‘‘(iii) training and education; and
‘‘(iv) all costs associated with making such
services available to RC&D councils or RC&D
associations.
‘‘(5) The term ‘RC&D council’ means the re-
sponsible leadership of the RC&D area. RC&D coun-
cils and associations are non-profit entities whose
members are volunteers and include local civic and
elected officials. Affiliations of RC&D councils are
formed in states and regions.’’;
(5) in paragraph (8), by inserting ‘‘and feder-
ally recognized Indian tribes’’ before the period;
(6) in paragraph (9), by striking ‘‘works of im-
provement’’ and inserting ‘‘projects’’;
(7) by redesignating paragraphs (7) through
(9) as paragraphs (6) through (8), respectively; and
(8) by striking paragraph (10) and inserting
the following:
‘‘(9) The term ‘project’ means any action taken
by a designated RC&D council that achieves any of
the elements identified under paragraph (1).’’.
153
(c) ESTABLISHMENT AND SCOPE.—Section 1530 of
such Act (16 U.S.C. 3453) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1530. The Secretary’’ and in-
serting the following:
‘‘SEC. 1530. ESTABLISHMENT AND SCOPE.
‘‘The Secretary’’; and
(2) by striking ‘‘the technical and financial as-
sistance necessary to permit such States, local units
of government, and local nonprofit organizations’’
and inserting ‘‘through designated RC&D councils
the technical and financial assistance necessary to
permit such RC&D Councils’’.
(d) SELECTION
OF DESIGNATED AREAS.—Section
1531 of such Act (16 U.S.C. 3454) is amended by striking
the section heading and all that follows through ‘‘SEC.
1531. The Secretary’’ and inserting the following:
‘‘SEC. 1531. SELECTION OF DESIGNATED AREAS.
‘‘The Secretary’’.
(e) AUTHORITY OF SECRETARY.—Section 1532 of
such Act (16 U.S.C. 3455) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1532. In carrying’’ and in-
serting the following:
154
‘‘SEC. 1532. AUTHORITY OF SECRETARY.
‘‘In carrying’’;
(2) in each of paragraphs (1) and (3)—
(A) by striking ‘‘State, local unit of gov-
ernment, or local nonprofit organization’’ and
inserting ‘‘RC&D council’’; and
(B) by inserting ‘‘RC&D council’’ before
‘‘area plan’’;
(3) in paragraph (2), by inserting ‘‘RC&D
council’’ before ‘‘area plans’’; and
(4) in paragraph (4), by striking ‘‘States, local
units of government, and local nonprofit organiza-
tions’’ and inserting ‘‘RC&D councils or affiliations
of RC&D councils’’.
(f) TECHNICAL AND FINANCIAL ASSISTANCE.—Sec-
tion 1533 of such Act (16 U.S.C. 3456) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1533. (a) Technical’’ and in-
serting the following:
‘‘SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.
‘‘(a) Technical’’;
(2) in subsection (a)—
(A) by striking ‘‘State, local unit of gov-
ernment, or local nonprofit organization to as-
sist in carrying out works of improvement spec-
ified in an’’ and inserting ‘‘RC&D councils or
155
affiliations of RC&D councils to assist in car-
rying out a project specified in a RC&D coun-
cil’’;
(B) in paragraph (1)—
(i) by striking ‘‘State, local unit of
government, or local nonprofit organiza-
tion’’ and inserting ‘‘RC&D council or af-
filiate’’; and
(ii) by striking ‘‘works of improve-
ment’’ each place it appears and inserting
‘‘project’’;
(C) in paragraph (2)—
(i) by striking ‘‘works of improve-
ment’’ and inserting ‘‘project’’; and
(ii) by striking ‘‘State, local unit of
government, or local nonprofit organiza-
tion’’ and inserting ‘‘RC&D council’’;
(D) in paragraph (3), by striking ‘‘works
of improvement’’ and all that follows and in-
serting ‘‘project concerned is necessary to ac-
complish and RC&D council area plan objec-
tive’’;
(E) in paragraph (4), by striking ‘‘the
works of improvement provided for in the’’ and
156
inserting ‘‘the project provided for in the RC&D
council’’;
(F) in paragraph (5), by inserting ‘‘feder-
ally recognized Indian tribe’’ before ‘‘or local’’
each place it appears; and
(G) in paragraph (6), by inserting ‘‘RC&D
council’’ before ‘‘area plan’’;
(3) in subsection (b), by striking ‘‘works of im-
provement’’ and inserting ‘‘project’’; and
(4) in subsection (c), by striking ‘‘any State,
local unit of government, or local nonprofit organiza-
tion to carry out any’’ and inserting ‘‘RC&D council
to carry out any RC&D council’’.
(g) RESOURCE CONSERVATION AND DEVELOPMENT
POLICY BOARD.—Section 1534(b) of such Act (16 U.S.C.
3457(b)) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1534. (a) The Secretary’’ and
inserting the following:
‘‘SEC. 1534. RESOURCE CONSERVATION AND DEVELOP-
MENT POLICY BOARD.
‘‘(a) The Secretary’’; and
(2) by striking ‘‘seven’’.
(h) PROGRAM EVALUATION.—Section 1535 of such
Act (16 U.S.C. 3458) is amended—
157
(1) by striking the section heading and all that
follows through ‘‘SEC. 1535. The Secretary’’ and in-
serting the following:
‘‘SEC. 1535. PROGRAM EVALUATION.
‘‘The Secretary’’;
(2) by inserting ‘‘with assistance from RC&D
councils’’ before ‘‘provided’’;
(3) by inserting ‘‘federally recognized Indian
tribes,’’ before ‘‘local units’’; and
(4) by striking ‘‘1986’’ and inserting ‘‘2007’’.
(i) LIMITATION ON ASSISTANCE.—Section 1536 of
such Act (16 U.S.C. 3458) is amended by striking the sec-
tion heading and all that follows through ‘‘SEC. 1536. The
program’’ and inserting the following:
‘‘SEC. 1536. LIMITATION ON ASSISTANCE.
‘‘The program’’.
(j) SUPPLEMENTAL
AUTHORITY
OF
THE
SEC-
RETARY.—Section 1537 of such Act (16 U.S.C. 3460) is
amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1537. The authority’’ and in-
serting the following:
‘‘SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.
‘‘The authority’’; and
158
(2) by striking ‘‘States, local units of govern-
ment, and local nonprofit organizations’’ and insert-
ing ‘‘RC&D councils’’.
(k) AUTHORIZATION OF APPROPRIATIONS.—Section
1538 of such Act (16 U.S.C. 3461) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1538. There are’’ and insert-
ing the following:
‘‘SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are’’; and
(2) by striking ‘‘for each of the fiscal years
1996 through 2002’’.
SEC. 274. GRASSLAND RESERVE PROGRAM.
Chapter 1 of subtitle D of title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3830–3837f) is amended by
adding at the end the following:
‘‘Subchapter D—Grassland Reserve Program
‘‘SEC. 1238. GRASSLAND RESERVE PROGRAM.
‘‘(a) 
ESTABLISHMENT.—The 
Secretary, 
acting
through the Farm Service Agency, shall establish a grass-
land reserve program (referred to in this subchapter as
the ‘program’) to assist owners in restoring and con-
serving eligible land described in subsection (c).
‘‘(b) ENROLLMENT CONDITIONS.—
159
‘‘(1) MAXIMUM ENROLLMENT.—The total num-
ber of acres enrolled in the program shall not exceed
2,000,000 acres, not more than 1,000,000 of which
shall be restored grassland, and not more than
1,000,000 of which shall be virgin (never cultivated)
grassland.
‘‘(2) METHODS
OF
ENROLLMENT.—The Sec-
retary shall enroll in the program for a willing owner
not less than 100 contiguous acres of land west of
the 90th meridian or not less than 50 contiguous
acres of land east of the 90th meridian through 10-
year, 15-year, or 20-year contracts.
‘‘(c) ELIGIBLE LAND.—Land shall be eligible to be
enrolled in the program if the Secretary determines that—
‘‘(1) the land is natural grass or shrubland; or
‘‘(2) the land—
‘‘(A) is located in an area that has been
historically dominated by natural grass or
shrubland; and
‘‘(B) has potential to serve as habitat for
animal or plant populations of significant eco-
logical value if the land is restored to natural
grass or shrubland.
160
‘‘SEC. 1238A. CONTRACTS AND AGREEMENTS.
‘‘(a) REQUIREMENTS OF LANDOWNER.—To be eligi-
ble to enroll land in the program, the owner of the land
shall—
‘‘(1) agree to comply with the terms of the con-
tract and related restoration agreements; and
‘‘(2) agree to the suspension of any existing
cropland base and allotment history for the land
under any program administered by the Secretary.
‘‘(b) TERMS OF CONTRACT.—A contract under sub-
section (a) shall—
‘‘(1) permit—
‘‘(A) common grazing practices on the land
in a manner that is consistent with maintaining
the viability of natural grass and shrub species
indigenous to that locality;
‘‘(B) haying, mowing, or haying for seed
production, except that such uses shall not be
permitted until after the end of the nesting sea-
son for birds in the local area which are in sig-
nificant decline or are conserved pursuant to
State or Federal law, as determined by the Nat-
ural Resources Conservation Service State con-
servationist; and
161
‘‘(C) construction of fire breaks and
fences, including placement of the posts nec-
essary for fences;
‘‘(2) prohibit—
‘‘(A) the production of row-crops, fruit
trees, vineyards, or any other agricultural com-
modity that requires breaking the soil surface;
and
‘‘(B) the conduct of any other activities
that would disturb the surface of the land cov-
ered by the contract, including—
‘‘(i) plowing; and
‘‘(ii) disking; and
‘‘(3) include such additional provisions as the
Secretary determines are appropriate to carry out or
facilitate the administration of this subchapter.
‘‘(c) RANKING CONTRACT APPLICATIONS.—
‘‘(1) ESTABLISHMENT OF CRITERIA.—The Sec-
retary shall establish criteria to evaluate and rank
applications for contracts under this subchapter.
‘‘(2) EMPHASIS.—In establishing the criteria,
the Secretary shall emphasize support for native
grass and shrubland, grazing operations, and plant
and animal biodiversity.
162
‘‘(d) RESTORATION AGREEMENTS.—The Secretary
shall prescribe the terms by which grassland that is sub-
ject to a contract under the program shall be restored.
The agreement shall include duties of the land owner and
the Secretary, including the Federal share of restoration
payments and technical assistance.
‘‘(e) VIOLATIONS.—On the violation of the terms or
conditions of a contract or restoration agreement entered
into under this section—
‘‘(1) the contract shall remain in force; and
‘‘(2) the Secretary may require the owner to re-
fund all or part of any payments received by the
owner under this subchapter, with interest on the
payments as determined appropriate by the Sec-
retary.
‘‘SEC. 1238B. DUTIES OF SECRETARY.
‘‘(a) IN GENERAL.—In return for the granting of a
contract by an owner under this subchapter, the Secretary
shall make contract payments and payments of the Fed-
eral share of restoration and provide technical assistance
to the owner in accordance with this section.
‘‘(b) CONTRACT
PAYMENTS.—In return for the
granting of contract by an owner under this subchapter,
the Secretary shall make annual contract payments to the
163
owner in an amount that is not more than 75 percent of
the grazing value of the land.
‘‘(c) FEDERAL SHARE OF RESTORATION.—The Sec-
retary shall make payments to the owner of not more
than—
‘‘(1) in the case of virgin (never cultivated)
grassland, 90 percent of the costs of carrying out
measures and practices necessary to restore grass-
land functions and values; or
‘‘(2) in the case of restored grassland, 75 per-
cent of such costs.
‘‘(d) TECHNICAL ASSISTANCE.—A landowner who is
receiving a benefit under this subchapter shall be eligible
to receive technical assistance in accordance with section
1243(d) to assist the owner or operator in carrying out
a contract entered into under this subchapter.
‘‘(e) PAYMENTS TO OTHERS.—If an owner who is en-
titled to a payment under this subchapter dies, becomes
incompetent, is otherwise unable to receive the payment,
or is succeeded by another person who renders or com-
pletes the required performance, the Secretary shall make
the payment, in accordance with regulations promulgated
by the Secretary and without regard to any other provision
of law, in such manner as the Secretary determines is fair
and reasonable in light of all the circumstances.’’.
164
SEC. 275. FARMLAND STEWARDSHIP PROGRAM.
Subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830–3839bb) is amended by inserting
after chapter 1 (and the matter added by section 274 of
this Act) the following:
‘‘CHAPTER 2—FARMLAND STEWARDSHIP
PROGRAM
‘‘SEC. 1239. DEFINITIONS.
‘‘In this chapter:
‘‘(1) AGREEMENT.—The terms ‘farmland stew-
ardship agreement’ and ‘agreement’ mean a stew-
ardship contract authorized by this chapter.
‘‘(2) CONTRACTING AGENCY.—The term ‘con-
tracting agency’ means a local conservation district,
resource conservation and development district, local
office of the Department of Agriculture, other par-
ticipating government agency, or other nongovern-
mental organization that is designated by the Sec-
retary to enter into farmland stewardship agree-
ments on behalf of the Secretary.
‘‘(3) ELIGIBLE
AGRICULTURAL
LANDS.—The
term ‘eligible agricultural lands’ means private lands
that are in primarily native or natural condition or
are classified as cropland, pastureland, grazing
lands, timberlands, or other lands as specified by the
Secretary that—
165
‘‘(A) contain wildlife habitat, wetlands, or
other natural resources; or
‘‘(B) provide benefits to the public at
large, such as—
‘‘(i) conservation of soil, water, and
related resources;
‘‘(ii) water quality protection or im-
provement;
‘‘(iii) control of invasive and exotic
species;
‘‘(iv) wetland restoration, protection,
and creation; and
‘‘(v) wildlife habitat development and
protection;
‘‘(vi) preservation of open spaces, or
prime, unique, or other productive farm
lands; and
‘‘(vii) and other similar conservation
purposes.
‘‘(4) FARMLAND STEWARDSHIP PROGRAM; PRO-
GRAM.—The terms ‘Farmland Stewardship Pro-
gram’ and ‘Program’ mean the conservation pro-
gram of the Department of Agriculture established
by this chapter.
166
‘‘SEC. 1239A. ESTABLISHMENT AND PURPOSE OF PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a conservation program of the Department of Agri-
culture, to be known as the Farmland Stewardship Pro-
gram, that is designed to more precisely tailor and target
existing conservation programs to the specific conservation
needs and opportunities presented by individual parcels of
eligible agricultural lands.
‘‘(b) RELATION
TO OTHER CONSERVATION PRO-
GRAMS.—Under the Farmland Stewardship Program, the
Secretary may implement, or combine together, the fea-
tures of—
‘‘(1) the Wetlands Reserve Program;
‘‘(2) the Wildlife Habitat Incentives Program;
‘‘(3) the Forest Land Enhancement Program;
‘‘(4) the Farmland Protection Program; or
‘‘(5) other conservation programs administered
by other Federal agencies and State and local gov-
ernment entities, where feasible and with the con-
sent of the administering agency or government.
‘‘(c) FUNDING SOURCES.—
‘‘(1) IN GENERAL.—The Farmland Stewardship
Program and agreements under the Program shall
be funded by the Secretary using—
‘‘(A) the funding authorities of the con-
servation programs that are implemented in
167
whole, or in part, through the use of agree-
ments or easements; and
‘‘(B) such funds as are provided to carry
out the programs specified in paragraphs (1)
through (4) of subsection (b).
‘‘(2) COST-SHARING.—It shall be a requirement
of the Farmland Stewardship Program that the ma-
jority of the funds to carry out the Program must
come from other existing conservation programs,
which may be Federal, State, regional, local, or pri-
vate, that are combined into and made a part of an
agreement, or from matching funding contributions
made by State, regional, or local agencies and divi-
sions of government or from private funding sources.
‘‘(d) PERSONNEL COSTS.—The Secretary may use
the Natural Resources Conservation Service to carry out
the Farmland Stewardship Program.
‘‘(e) TECHNICAL ASSISTANCE.—An owner or oper-
ator who is receiving a benefit under this chapter shall
be eligible to receive technical assistance in accordance
with section 1243(d) to assist the owner or operator in
carrying out a contract entered into under this chapter.
168
‘‘SEC. 1239B. USE OF FARMLAND STEWARDSHIP AGREE-
MENTS.
‘‘(a) AGREEMENTS AUTHORIZED.—The Secretary
shall carry out the Farmland Stewardship Program by en-
tering into stewardship contracts as determined by the
Secretary, to be known as farmland stewardship agree-
ments, with the owners or operators of eligible agricultural
lands to maintain and protect for the natural and agricul-
tural resources on the lands.
‘‘(b) BASIC PURPOSES.—An agreement with the
owner or operator of eligible agricultural lands shall be
used—
‘‘(1) to negotiate a mutually agreeable set of
guidelines, practices, and procedures under which
conservation practices will be provided by the owner
or operator to protect, maintain, and, where pos-
sible, improve, the natural resources on the lands
covered by the agreement in return for annual pay-
ments to the owner or operator;
‘‘(2) to implement a conservation program or
series of programs where there is no such program
or to implement conservation management activities
where there is no such activity; and
‘‘(3) to expand conservation practices and re-
source management activities to a property where it
is not possible at the present time to negotiate or
169
reach agreement on a public purchase of a fee-sim-
ple or less-than-fee interest in the property for con-
servation purposes.
‘‘(c) MODIFICATION OF OTHER CONSERVATION PRO-
GRAM ELEMENTS.—If most, but not all, of the limitations,
conditions, and requirements of a conservation program
that is implemented in whole, or in part, through the
Farmland Stewardship Program are met with respect to
a parcel of eligible agricultural lands, and the purposes
to be achieved by the agreement to be entered into for
such lands are consistent with the purposes of the con-
servation program, then the Secretary may waive any re-
maining limitations, conditions, or requirements of the
conservation program that would otherwise prohibit or
limit the agreement.
‘‘(d) STATE
AND LOCAL CONSERVATION PRIOR-
ITIES.—To the maximum extent practicable, agreements
shall address the conservation priorities established by the
State and locality in which the eligible agricultural lands
are located.
‘‘(e) WATERSHED ENHANCEMENT.—To the extent
practicable, the Secretary shall encourage the development
of Farmland Stewardship Program applications on a wa-
tershed basis.
170
‘‘SEC. 1239C. PARTNERSHIP APPROACH TO PROGRAM.
‘‘(a) 
AUTHORITY
OF
SECRETARY
EXERCISED
THROUGH PARTNERSHIPS.—The Secretary may admin-
ister agreements under the Farmland Stewardship Pro-
gram in partnership with other Federal, State, and local
agencies whose programs are incorporated into the Pro-
gram under section 1239A.
‘‘(b) DESIGNATION
AND
USE
OF
CONTRACTING
AGENCIES.—Subject to subsection (c), the Secretary may
authorize a local conservation district, resource conserva-
tion & development district, nonprofit organization, or
local office of the Department of Agriculture or other par-
ticipating government agency to enter into and administer
agreements under the Program as a contracting agency
on behalf of the Secretary.
‘‘(c) CONDITIONS ON DESIGNATION.—The Secretary
may designate an eligible district or office as a contracting
agency under subsection (b) only if the district of office—
‘‘(1) submits a written request for such des-
ignation to the Secretary;
‘‘(2) affirms that it is willing to follow all guide-
lines for executing and administering an agreement,
as promulgated by the Secretary;
‘‘(3) demonstrates to the satisfaction of the
Secretary that it has established working relation-
ships with owners and operators of eligible agricul-
171
tural lands, and based on the history of these work-
ing relationships, demonstrates that it has the abil-
ity to work with owners and operators of eligible ag-
ricultural lands in a cooperative manner;
‘‘(4) affirms its responsibility for preparing all
documentation for the agreement, negotiating its
terms with an owner or operator, monitoring compli-
ance, making annual reports to the Secretary, and
administering the agreement throughout its full
term; and
‘‘(5) demonstrates to the satisfaction of the
Secretary that it has or will have the necessary staff
resources and expertise to carry out its responsibil-
ities under paragraphs (3) and (4).
‘‘SEC. 1239D. PARTICIPATION OF OWNERS AND OPERATORS
OF ELIGIBLE AGRICULTURAL LANDS.
‘‘(a) APPLICATION
AND APPROVAL PROCESS.—To
participate in the Farmland Stewardship Program, an
owner or operator of eligible agricultural lands shall—
‘‘(1) submit to the Secretary an application in-
dicating interest in the Program and describing the
owner’s or operator’s property, its resources, and
their ecological and agricultural values;
172
‘‘(2) submit to the Secretary a list of services
to be provided, a management plan to be imple-
mented, or both, under the proposed agreement;
‘‘(3) if the application and list are accepted by
the Secretary, enter into an agreement that details
the services to be provided, management plan to be
implemented, or both, and requires compliance with
the other terms of the agreement.
‘‘(b) APPLICATION ON BEHALF OF AN OWNER OR
OPERATOR.—A designated contracting agency may sub-
mit the application required by subsection (a) on behalf
of an owner or operator if the contracting agency has se-
cured the consent of the owner or operator to enter into
an agreement.’’.
SEC. 276. SMALL WATERSHED REHABILITATION PROGRAM.
Section 14(h) of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1012(h)) is amended—
(1) by adding ‘‘and’’ at the end of paragraph
(1); and
(2) by striking all that follows paragraph (1)
and inserting the following:
‘‘(2) $15,000,000 for fiscal year 2002 and each
succeeding fiscal year.’’.
173
Subtitle I—Availability of Funds
SEC. 281. AVAILABILITY OF FUNDS APPROPRIATED PURSU-
ANT TO THE SOIL CONSERVATION AND DO-
MESTIC ALLOTMENT ACT.
Section 6 of the Soil Conservation and Domestic Al-
lotment Act (16 U.S.C. 590f) is amended—
(1) in the 1st undesignated paragraph, by in-
serting ‘‘(a)’’ before ‘‘There’’;
(2) in the 2nd undesignated paragraph, by in-
serting ‘‘(b)’’ before ‘‘Appropriations’’; and
(3) by adding at the end the following:
‘‘(c) Funds made available to carry out the purposes
of this Act may be used, to the extent determined by the
Secretary of Agriculture to be necessary, by the agency
of the Department of Agriculture to which the funds are
appropriated, to provide technical assistance to owners
and operators of land to achieve the objectives of any con-
servation program administered by the Secretary of Agri-
culture.’’.
Subtitle K—Repeals
SEC. 291. PROVISIONS OF FOOD SECURITY ACT OF 1985.
(a) WETLANDS MITIGATION BANKING PROGRAM.—
Section 1222 of the Food Security Act of 1985 (16 U.S.C.
3822) is amended by striking subsection (k).
174
(b) PAYMENT LIMITATIONS UNDER THE CONSERVA-
TION RESERVE PROGRAM.—Section 1234(f) of such Act
(16 U.S.C. 3837d(c)) is amended by striking paragraph
(3).
(c) BASE HISTORY PROVISION.—
(1) REPEAL.—Section 1236 of such Act (16
U.S.C. 3836) is repealed.
(2) 
CONFORMING
AMENDMENT.—Section
1232(a)(5) of such Act (16 U.S.C. 3832(a)(5)) is
amended by striking ‘‘in addition to the remedies
provided under section 1236(d),’’.
(d) PAYMENT LIMITATIONS UNDER THE WETLANDS
RESERVE PROGRAM.—Section 1237D(c) of such Act (16
U.S.C. 3837d(c)) is amended by striking paragraph (3).
(e) ENVIRONMENTAL EASEMENT PROGRAM.—
(1) REPEAL.—Chapter 3 of subtitle D of title
XII of such Act (16 U.S.C. 3839–3839d) is re-
pealed.
(2) 
CONFORMING
AMENDMENT.—Section
1243(a)(3) of such Act (16 U.S.C. 3843(a)(3)) is
amended by striking ‘‘or 3’’.
(f) CONSERVATION FARM OPTION.—Chapter 5 of
subtitle D of title XII of such Act (16 U.S.C. 3839bb)
is repealed.
175
(g) TREE PLANTING INITIATIVE.—Section 1256 of
such Act (16 U.S.C. 2101 note) is repealed.
TITLE III—TRADE
SEC. 301. MARKET ACCESS PROGRAM.
Section 211(c)(1) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)(1)) is amended—
(1) by striking ‘‘and not more’’ and inserting
‘‘not more’’;
(2) 
by 
inserting 
‘‘and 
not 
more 
than
$200,000,000 for each of fiscal years 2002 through
2011,’’ after ‘‘2002’’; and
(3) by striking ‘‘2002’’ and inserting ‘‘2001’’.
SEC. 302. FOOD FOR PROGRESS.
(a) IN GENERAL.—Subsections (f)(3), (g), (k), and
(l)(1) of section 1110 of the Food Security Act of 1985
(7 U.S.C. 1736o) are each amended by striking ‘‘2002’’
and inserting ‘‘2011’’.
(b) INCREASE IN FUNDING.—Section 1110(l)(1) of
the Food Security Act of 1985 (7 U.S.C. 1736o(l)(1)) is
amended by striking ‘‘fiscal year 1999’’ and inserting ‘‘fis-
cal years 2002 through 2011’’.
(c) 
EXCLUSION
FROM
LIMITATION.—Section
1110(e)(2) of the Food Security Act of 1985 (7 U.S.C.
1736o(e)(2)) is amended by inserting ‘‘, and subsection
(g) does not apply to such commodities furnished on a
176
grant basis or on credit terms under title I of the Agricul-
tural Trade Development Act of 1954’’ before the final
period.
(d) TRANSPORTATION COSTS.—Section 1110(f)(3) of
the Food Security Act of 1985 (7 U.S.C. 1736o) is amend-
ed 
by 
striking 
‘‘$30,000,000’’ 
and 
inserting
‘‘$35,000,000’’.
(e) MULTIYEAR BASIS.—Section 1110(j) of the Food
Security Act of 1985 (7 U.S.C. 17360(j)) is amended—
(1) by striking ‘‘may’’ and inserting ‘‘is encour-
aged’’; and
(2) by inserting ‘‘to’’ before ‘‘approved’’.
(f) NEW PROVISIONS.—Section 1110 of the Food Se-
curity Act of 1985 (7 U.S.C. 17360) is amended by adding
at the end the following:
‘‘(p) The Secretary is encouraged to finalize program
agreements and resource requests for programs under this
section before the beginning of the relevant fiscal year.
By November 1 of the relevant fiscal year, the Secretary
shall provide to the Committee on Agriculture of the
House of Representatives, and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a list of
approved programs, countries, and commodities, and the
total amounts of funds approved for transportation and
administrative costs, under this section.’’.
178
(b) PROCESSED AND HIGH VALUE PRODUCTS.—Sec-
tion 202(k)(1) of the Agricultural Trade Act of 1978 (7
U.S.C. 5622(k)(1)) is amended by striking ‘‘, 2001, and
2002’’ and inserting ‘‘through 2011’’.
SEC. 306. PL 480.
The Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1691 et seq.) is amended—
(1) in section 204(a), by striking ‘‘2002’’ each
place it appears and inserting ‘‘2011’’;
(2) in section 208(f), by striking ‘‘2002’’ and
inserting ‘‘2011’’;
(3) in section 407(c)(4), by striking ‘‘2001 and
2002’’ and inserting ‘‘2001 through 2011’’;
(4) in section 408, by striking ‘‘2002’’ and in-
serting ‘‘2011’’; and
(5) in section 501(c), by striking ‘‘2002’’ and
inserting ‘‘2011’’.
SEC. 307. EMERGING MARKETS.
Section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5622n) is amended in
subsections (a) and (d)(1)(A)(i), by striking ‘‘2002’’ and
inserting ‘‘2011’’.
SEC. 308. BILL EMERSON HUMANITARIAN TRUST.
Subsections (b)(2)(i), (h)(1), and (h)(2) of section
302 of the Bill Emerson Humanitarian Trust Act (7
179
U.S.C. 1736f–1) are each amended by striking ‘‘2002’’
and inserting ‘‘2011’’.
SEC. 309. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) ESTABLISHMENT.—The Secretary of Agriculture
shall establish an export assistance program (referred to
in this section as the ‘‘program’’) to address unique bar-
riers that prohibit or threaten the export of United States
specialty crops.
(b) PURPOSE.—The program shall provide direct as-
sistance through public and private sector projects and
technical assistance to remove, resolve, or mitigate sani-
tary and phytosanitary and related barriers to trade.
(c) PRIORITY.—The program shall address time sen-
sitive and strategic market access projects based on—
(1) trade effect on market retention, market ac-
cess, and market expansion; and
(2) trade impact.
(d) FUNDING.—The Secretary shall make available
$3,000,000 for each of fiscal years 2002 through 2011
of the funds of, or an equal value of commodities owned
by, the Commodity Credit Corporation.
180
TITLE IV—NUTRITION
PROGRAMS
Subtitle A—Food Stamp Program
SEC. 401. SIMPLIFIED DEFINITION OF INCOME.
Section 5(d) of the Food Stamp Act of 1977 (7
U.S.C. 2014(d)) is amended—
(1) in paragraph (3)—
(A) by striking ‘‘and (C)’’ and inserting
‘‘(C)’’; and
(B) by inserting after ‘‘premiums,’’ the fol-
lowing:
‘‘(D) to the extent that any other educational loans on
which payment is deferred, grants, scholarships, fellow-
ships, veterans’ educational benefits, and the like, are re-
quired to be excluded under title XIX of the Social Secu-
rity Act, the state agency may exclude it under this sub-
section,’’;
(2) by striking ‘‘and (15)’’ and inserting
‘‘(15)’’;
(3) by inserting before the period at the end the
following:
‘‘; (16) any state complementary assistance program pay-
ments that are excluded pursuant to subsections (a) and
(b) of section 1931 of title XIX of the Social Security Act;
and (17) at the option of the State agency, any types of
181
income that the State agency does not consider when de-
termining eligibility for cash assistance under a program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) or medical assistance under sec-
tion 1931 of the Social Security Act (42 U.S.C. 1396u–
1), except that this paragraph shall not authorize a State
agency to exclude earned income, payments under title I,
II, IV, X, XIV, or XVI of the Social Security Act, or such
other types of income whose consideration the Secretary
determines essential to equitable determinations of eligi-
bility and benefit levels except to the extent that those
types of income may be excluded under other paragraphs
of this subsection’’.
SEC. 402. STANDARD DEDUCTION.
Section 5(e)(1) of the Food Stamp Act of 1977 (7
U.S.C. 2014(e)(1)) is amended—
(1) by striking ‘‘of $134, $229, $189, $269,
and $118’’ and inserting ‘‘equal to 9.7 percent of
the eligibility limit established under section 5(c)(1)
for fiscal year 2002 but not more than 9.25 percent
of the eligibility limit established under section
5(c)(1) for a household of six nor less than $134,
$229, $189, $269, and $118’’; and
(2) by inserting before the period at the end the
following:
182
‘‘, except that the standard deduction for Guam
shall be determined with reference to 2 times the eli-
gibility limits under section 5(c)(1) for the 48 con-
tiguous states and the District of Columbia’’.
SEC. 403. TRANSITIONAL FOOD STAMPS FOR FAMILIES
MOVING FROM WELFARE.
(a) IN GENERAL.—Section 11 of the Food Stamp Act
of 1977 (7 U.S.C. 2020) is amended by adding at the end
the following:
‘‘(s) TRANSITIONAL BENEFITS OPTION.—
‘‘(1) IN GENERAL.—A State may provide tran-
sitional food stamp benefits to a household that is
no longer eligible to receive cash assistance under a
State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
‘‘(2) TRANSITIONAL BENEFITS PERIOD.—Under
paragraph (1), a household may continue to receive
food stamp benefits for a period of not more than
6 months after the date on which cash assistance is
terminated.
‘‘(3) AMOUNT.—During the transitional bene-
fits period under paragraph (2), a household shall
receive an amount equal to the allotment received in
the month immediately preceding the date on which
cash assistance is terminated. A household receiving
183
benefits under this subsection may apply for recer-
tification at any time during the transitional benefit
period. If a household reapplies, its allotment shall
be determined without regard to this subsection for
all subsequent months.
‘‘(4) DETERMINATION
OF
FUTURE
ELIGI-
BILITY.—In the final month of the transitional bene-
fits period under paragraph (2), the State agency
may—
‘‘(A) require a household to cooperate in a
redetermination of eligibility to receive an au-
thorization card; and
‘‘(B) renew eligibility for a new certifi-
cation period for the household without regard
to whether the previous certification period has
expired.
‘‘(5) LIMITATION.—A household sanctioned
under section 6, or for a failure to perform an action
required by Federal, State, or local law relating to
such cash assistance program, shall not be eligible
for transitional benefits under this subsection.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 3(c) of
the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amend-
ed by adding at the end the following: ‘‘The limits in this
186
a State agency’s performance with respect to any of the
2 performance measures established in subparagraph (A)
is substantially worse than a level the Secretary deems
reasonable, other than for good cause shown, the Sec-
retary shall investigate that State agency’s administration
of the food stamp program. If this investigation deter-
mines that the State’s administration has been deficient,
the Secretary shall require the State agency to take
prompt corrective action.’’.
(b) IMPLEMENTATION.—The amendment made by
subsection (a)(5) shall apply to all fiscal years beginning
on or after October 1, 2001. All other amendments made
by this section shall apply to all fiscal years beginning on
or after October 1, 1999.
SEC. 405. SIMPLIFIED APPLICATION AND ELIGIBILITY DE-
TERMINATION SYSTEMS.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C.
2025) is amended by inserting at the end the following:
‘‘(l) The Secretary shall expend up to $10 million in
each fiscal year to pay 100 percent of the costs of State
agencies to develop and implement simple application and
eligibility determination systems.’’.
187
SEC. 406. AUTHORIZATION OF APPROPRIATIONS.
(a) EMPLOYMENT AND TRAINING PROGRAMS.—Sec-
tion 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2025(h)(1)) is amended—
(1) in subparagraph (A)(vii) by striking ‘‘fiscal
year 2002’’ and inserting ‘‘each of the fiscal years
2003 through 2011’’; and
(2) in subparagraph (B) by striking ‘‘2002’’
and inserting ‘‘2011’’.
(b) COST ALLOCATION.—Section 16(k)(3) of the
Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is
amended—
(1) in subparagraph (A) by striking ‘‘2002’’
and inserting ‘‘2011’’; and
(2) in subparagraph (B)(ii) by striking ‘‘2002’’
and inserting ‘‘2011’’.
(c) CASH
PAYMENT
PILOT
PROJECTS.—Section
17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(B)(vi)) is amended by striking ‘‘2002’’ and in-
serting ‘‘2011’’.
(d) OUTREACH DEMONSTRATION PROJECTS.—Sec-
tion 17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C.
2026(i)(1)(A)) is amended by striking ‘‘1992 through
2002’’ and inserting ‘‘2003 through 2011’’.
(e) AUTHORIZATION OF APPROPRIATIONS.—Section
18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C.
188
2027(a)(1)) is amended by striking‘‘ ‘‘1996 through
2002’’ and inserting ‘‘2003 through 2011’’.
(f) PUERTO RICO.—Section 19(a)(1)(A) of the Food
Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is
amended—
(1) in clause (ii) by striking ‘‘and’’ at the end;
(2) in clause (iii) by adding ‘‘and’’ at the end;
and
(3) by inserting after clause (iii) the following:
‘‘(iv) for each of fiscal years 2003 through
2011, the amount equal to the amount required to
be paid under this subparagraph for the preceding
fiscal year, as adjusted by the percentage by which
the thrifty food plan is adjusted under section
3(o)(4) for the current fiscal year for which the
amount is determined under this clause;’’.
(g) TERRITORY OF AMERICAN SAMOA.—Section 24
of the Food Stamp Act of 1977 (7 U.S.C. 2033) is amend-
ed by striking ‘‘1996 through 2002’’ and inserting ‘‘2003
through 2011’’.
(h) 
ASSISTANCE
FOR
COMMUNITY
FOOD
PROJECTS.—Section 25(b)(2) of the Food Stamp Act of
1977 (7 U.S.C. 2034(b)(2)) is amended—
(1) in subparagraph (A) by striking ‘‘and’’ at
the end;
189
(2) in subparagraph (B)—
(A) by striking ‘‘2002’’ and inserting
‘‘2001’’; and
(B) by adding ‘‘and’’ at the end; and
(3) by inserting after subparagraph (B) the fol-
lowing:
‘‘(C) $7,500,000 for each of the fiscal
years 2002 through 2011.’’.
(i) AVAILABILITY OF COMMODITIES FOR THE EMER-
GENCY FOOD ASSISTANCE PROGRAM.—Section 27 of the
Food Stamp Act of 1977 (7 U.S.C. 2036) is amended—
(1) in subsection (a)—
(A) by striking ‘‘1997 through 2002’’ and
inserting ‘‘2002 through 2011’’; and
(B) by striking ‘‘$100,000,000’’ and in-
serting ‘‘$140,000,000’’; and
(2) by adding at the end the following:
‘‘(c) USE OF FUNDS FOR RELATED COSTS.—For
each of the fiscal years 2002 through 2011, the Secretary
shall use $10,000,000 of the funds made available under
subsection (a) to pay for the direct and indirect costs of
the States related to the processing, storing, transporting,
and distributing to eligible recipient agencies of commod-
ities purchased by the Secretary under such subsection
and commodities secured from other sources, including
190
commodities secured by gleaning (as defined in section
111 of the Hunger Prevention Act of 1988 (7 U.S.C. 612c
note)).’’.
(j) SPECIAL EFFECTIVE DATE.—The amendments
made by subsections (h) and (i) shall take effect of Octo-
ber 1, 2001.
Subtitle B—Commodity
Distribution
SEC. 441. DISTRIBUTION OF SURPLUS COMMODITIES TO
SPECIAL NUTRITION PROJECTS.
Section 1114(a) of the Agriculture and Food Act of
1981 (7 U.S.C. 1431e) is amended by striking ‘‘2002’’
and inserting ‘‘2011’’.
SEC. 442. COMMODITY SUPPLEMENTAL FOOD PROGRAM.
The Agriculture and Consumer Protection Act of
1975 (7 U.S.C. 612c note) is amended—
(1) in section 4(a) by striking ‘‘1991 through
2002’’ and inserting ‘‘2003 through 2011’’; and
(2) in subsections (a)(2) and (d)(2) of section
5 by striking ‘‘1991 through 2002’’ and inserting
‘‘2003 through 2011’’.
SEC. 443. EMERGENCY FOOD ASSISTANCE.
The 1st sentence of section 204(a)(1) of the Emer-
gency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended—
191
(1) by striking ‘‘1991 through 2002’’ and in-
serting ‘‘2003 through 2011’’;
(2) by striking ‘‘administrative’’, and
(3) by inserting ‘‘storage,’’ after ‘‘processing,’’.
Subtitle C—Miscellaneous
Provisions
SEC. 461. HUNGER FELLOWSHIP PROGRAM.
(a) SHORT TITLE; FINDINGS.—
(1) SHORT TITLE.—This section may be cited
as the ‘‘Congressional Hunger Fellows Act of 2001’’.
(2) FINDINGS.—The Congress finds as follows:
(A) There is a critical need for compas-
sionate individuals who are committed to assist-
ing people who suffer from hunger as well as a
need for such individuals to initiate and admin-
ister solutions to the hunger problem.
(B) Bill Emerson, the distinguished late
Representative from the 8th District of Mis-
souri, demonstrated his commitment to solving
the problem of hunger in a bipartisan manner,
his commitment to public service, and his great
affection for the institution and the ideals of
the United States Congress.
(C) George T. (Mickey) Leland, the distin-
guished late Representative from the 18th Dis-
192
trict of Texas, demonstrated his compassion for
those in need, his high regard for public service,
and his lively exercise of political talents.
(D) The special concern that Mr. Emerson
and Mr. Leland demonstrated during their lives
for the hungry and poor was an inspiration for
others to work toward the goals of equality and
justice for all.
(E) These 2 outstanding leaders main-
tained a special bond of friendship regardless of
political affiliation and worked together to en-
courage future leaders to recognize and provide
service to others, and therefore it is especially
appropriate to honor the memory of Mr. Emer-
son and Mr. Leland by creating a fellowship
program to develop and train the future leaders
of the United States to pursue careers in hu-
manitarian service.
(b) ESTABLISHMENT.—There is established as an
independent entity of the legislative branch of the United
States Government the Congressional Hunger Fellows
Program (hereinafter in this section referred to as the
‘‘Program’’).
(c) BOARD OF TRUSTEES.—
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(1) IN GENERAL.—The Program shall be sub-
ject to the supervision and direction of a Board of
Trustees.
(2) MEMBERS OF THE BOARD OF TRUSTEES.—
(A) APPOINTMENT.—The Board shall be
composed of 6 voting members appointed under
clause (i) and 1 nonvoting ex officio member
designated in clause (ii) as follows:
(i) 
VOTING
MEMBERS.—(I) 
The
Speaker of the House of Representatives
shall appoint 2 members.
(II) The minority leader of the House
of Representatives shall appoint 1 member.
(III) The majority leader of the Sen-
ate shall appoint 2 members.
(IV) The minority leader of the Sen-
ate shall appoint 1 member.
(ii) NONVOTING MEMBER.—The Exec-
utive Director of the program shall serve
as a nonvoting ex officio member of the
Board.
(B) TERMS.—Members of the Board shall
serve a term of 4 years.
(C) VACANCY.—
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(i) AUTHORITY
OF
BOARD.—A va-
cancy in the membership of the Board does
not affect the power of the remaining
members to carry out this section.
(ii) APPOINTMENT OF SUCCESSORS.—
A vacancy in the membership of the Board
shall be filled in the same manner in which
the original appointment was made.
(iii) INCOMPLETE TERM.—If a mem-
ber of the Board does not serve the full
term applicable to the member, the indi-
vidual appointed to fill the resulting va-
cancy shall be appointed for the remainder
of the term of the predecessor of the indi-
vidual.
(D) CHAIRPERSON.—As the first order of
business of the first meeting of the Board, the
members shall elect a Chairperson.
(E) COMPENSATION.—
(i) IN
GENERAL.—Subject to clause
(ii), members of the Board may not receive
compensation for service on the Board.
(ii) TRAVEL.—Members of the Board
may be reimbursed for travel, subsistence,
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and other necessary expenses incurred in
carrying out the duties of the program.
(3) DUTIES.—
(A) BYLAWS.—
(i) 
ESTABLISHMENT.—The 
Board
shall establish such bylaws and other regu-
lations as may be appropriate to enable the
Board to carry out this section, including
the duties described in this paragraph.
(ii) CONTENTS.—Such bylaws and
other regulations shall include provisions—
(I) for appropriate fiscal control,
funds accountability, and operating
principles;
(II) to prevent any conflict of in-
terest, or the appearance of any con-
flict of interest, in the procurement
and employment actions taken by the
Board or by any officer or employee
of the Board and in the selection and
placement of individuals in the fellow-
ships developed under the program;
(III) for the resolution of a tie
vote of the members of the Board;
and
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(IV) for authorization of travel
for members of the Board.
(iii) TRANSMITTAL
TO
CONGRESS.—
Not later than 90 days after the date of
the first meeting of the Board, the Chair-
person of the Board shall transmit to Con-
gress a copy of such bylaws.
(B) BUDGET.—For each fiscal year the
program is in operation, the Board shall deter-
mine a budget for the program for that fiscal
year. All spending by the program shall be pur-
suant to such budget unless a change is ap-
proved by the Board.
(C) PROCESS FOR SELECTION AND PLACE-
MENT OF FELLOWS.—The Board shall review
and approve the process established by the Ex-
ecutive Director for the selection and placement
of individuals in the fellowships developed under
the program.
(D) ALLOCATION OF FUNDS TO FELLOW-
SHIPS.—The Board of Trustees shall determine
the priority of the programs to be carried out
under this section and the amount of funds to
be allocated for the Emerson and Leland fellow-
ships.
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(d) PURPOSES; AUTHORITY OF PROGRAM.—
(1) PURPOSES.—The purposes of the program
are—
(A) to encourage future leaders of the
United States to pursue careers in humani-
tarian service, to recognize the needs of people
who are hungry and poor, and to provide assist-
ance and compassion for those in need;
(B) to increase awareness of the impor-
tance of public service; and
(C) to provide training and development
opportunities for such leaders through place-
ment in programs operated by appropriate or-
ganizations or entities.
(2) AUTHORITY.—The program is authorized to
develop such fellowships to carry out the purposes of
this section, including the fellowships described in
paragraph (3).
(3) FELLOWSHIPS.—
(A) IN GENERAL.—The program shall es-
tablish and carry out the Bill Emerson Hunger
Fellowship and the Mickey Leland Hunger Fel-
lowship.
(B) CURRICULUM.—
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(iv) WORKPLAN.—To carry out clause
(i) and to assist in the evaluation of the
fellowships under paragraph (4), the pro-
gram shall, for each fellow, approve a work
plan that identifies the target objectives for
the fellow in the fellowship, including spe-
cific duties and responsibilities related to
those objectives.
(C) PERIOD OF FELLOWSHIP.—
(i) EMERSON FELLOW.—A Bill Emer-
son Hunger Fellowship awarded under this
paragraph shall be for no more than 1
year.
(ii) LELAND FELLOW.—A Mickey Le-
land Hunger Fellowship awarded under
this paragraph shall be for no more than
2 years.
(D) SELECTION OF FELLOWS.—
(i) IN GENERAL.—A fellowship shall
be awarded pursuant to a nationwide com-
petition established by the program.
(ii) 
QUALIFICATION.—A 
successful
applicant shall be an individual who has
demonstrated—
200
(I) an intent to pursue a career
in humanitarian service and out-
standing potential for such a career;
(II) a commitment to social
change;
(III) leadership potential or ac-
tual leadership experience;
(IV) diverse life experience;
(V) proficient writing and speak-
ing skills; and
(VI) an ability to live in poor or
diverse communities.
(iii) AMOUNT OF AWARD.—
(I) IN
GENERAL.—Each indi-
vidual awarded a fellowship under this
paragraph shall receive a living allow-
ance and, subject to subclause (II), an
end-of-service award as determined by
the program.
(II) REQUIREMENT
FOR
SUC-
CESSFUL
COMPLETION
OF
FELLOW-
SHIP.—Each individual awarded a fel-
lowship under this paragraph shall be
entitled to receive an end-of-service
award at an appropriate rate for each
201
month of satisfactory service as deter-
mined by the Executive Director.
(iv) RECOGNITION
OF
FELLOWSHIP
AWARD.—
(I) EMERSON FELLOW.—An indi-
vidual awarded a fellowship from the
Bill Emerson Hunger Fellowship shall
be known as an ‘‘Emerson Fellow’’.
(II) LELAND FELLOW.—An indi-
vidual awarded a fellowship from the
Mickey Leland Hunger Fellowship
shall be known as a ‘‘Leland Fellow’’.
(4) EVALUATION.—The program shall conduct
periodic evaluations of the Bill Emerson and Mickey
Leland Hunger Fellowships. Such evaluations shall
include the following:
(A) An assessment of the successful com-
pletion of the work plan of the fellow.
(B) An assessment of the impact of the fel-
lowship on the fellows.
(C) An assessment of the accomplishment
of the purposes of the program.
(D) An assessment of the impact of the
fellow on the community.
(e) TRUST FUND.—
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(1) ESTABLISHMENT.—There is established the
Congressional Hunger Fellows Trust Fund (herein-
after in this section referred to as the ‘‘Fund’’) in
the Treasury of the United States, consisting of
amounts appropriated to the Fund under subsection
(i), amounts credited to it under paragraph (3), and
amounts received under subsection (g)(3)(A).
(2) INVESTMENT OF FUNDS.—The Secretary of
the Treasury shall invest the full amount of the
Fund. Each investment shall be made in an interest
bearing obligation of the United States or an obliga-
tion guaranteed as to principal and interest by the
United States that, as determined by the Secretary
in consultation with the Board, has a maturity suit-
able for the Fund.
(3) RETURN ON INVESTMENT.—Except as pro-
vided in subsection (f)(2), the Secretary of the
Treasury shall credit to the Fund the interest on,
and the proceeds from the sale or redemption of, ob-
ligations held in the Fund.
(f) EXPENDITURES; AUDITS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall transfer to the program from the amounts
described in subsection (e)(3) and subsection
(g)(3)(A) such sums as the Board determines are
203
necessary to enable the program to carry out the
provisions of this section.
(2) LIMITATION.—The Secretary may not
transfer to the program the amounts appropriated to
the Fund under subsection (i).
(3) USE OF FUNDS.—Funds transferred to the
program under paragraph (1) shall be used for the
following purposes:
(A) STIPENDS FOR FELLOWS.—To provide
for a living allowance for the fellows.
(B) TRAVEL OF FELLOWS.—To defray the
costs of transportation of the fellows to the fel-
lowship placement sites.
(C) INSURANCE.—To defray the costs of
appropriate insurance of the fellows, the pro-
gram, and the Board.
(D) TRAINING
OF
FELLOWS.—To defray
the costs of preservice and midservice education
and training of fellows.
(E) SUPPORT STAFF.—Staff described in
subsection (g).
(F) 
AWARDS.—End-of-service 
awards
under subsection (d)(3)(D)(iii)(II).
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(G) ADDITIONAL
APPROVED
USES.—For
such other purposes that the Board determines
appropriate to carry out the program.
(4) AUDIT BY GAO.—
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall conduct an an-
nual audit of the accounts of the program.
(B) BOOKS.—The program shall make
available to the Comptroller General all books,
accounts, financial records, reports, files, and
all other papers, things, or property belonging
to or in use by the program and necessary to
facilitate such audit.
(C) REPORT TO CONGRESS.—The Comp-
troller General shall submit a copy of the re-
sults of each such audit to the Congress.
(g) STAFF; POWERS OF PROGRAM.—
(1) EXECUTIVE DIRECTOR.—
(A) IN
GENERAL.—The Board shall ap-
point an Executive Director of the program who
shall administer the program. The Executive
Director shall carry out such other functions
consistent with the provisions of this section as
the Board shall prescribe.
205
(B) RESTRICTION.—The Executive Direc-
tor may not serve as Chairperson of the Board.
(C) COMPENSATION.—The Executive Di-
rector shall be paid at a rate not to exceed the
rate of basic pay payable for level V of the Ex-
ecutive Schedule under section 5316 of title 5,
United States Code.
(2) STAFF.—
(A) IN GENERAL.—With the approval of a
majority of the Board, the Executive Director
may appoint and fix the pay of additional per-
sonnel as the Executive Director considers nec-
essary and appropriate to carry out the func-
tions of the provisions of this section.
(B) COMPENSATION.—An individual ap-
pointed under subparagraph (A) shall be paid
at a rate not to exceed the rate of basic pay
payable for level GS–15 of the General Sched-
ule.
(3) POWERS.—In order to carry out the provi-
sions of this section, the program may perform the
following functions:
(A) GIFTS.—The program may solicit, ac-
cept, use, and dispose of gifts, bequests, or de-
vises of services or property, both real and per-