Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Farm Freedom Act
of 1995’’.
SEC. 2. REDUCTION IN TARGET PRICES AND TERMINATION
OF DEFICIENCY PAYMENTS AND MARKETING
LOANS FOR WHEAT, FEED GRAINS, RICE, AND
COTTON.
(a) WHEAT.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for wheat admin-
istered by the Secretary of Agriculture, the estab-
lished price for wheat for a crop year shall not ex-
ceed—
(A) for the 1996 crop of wheat, $3.84 per
bushel; and
(B) for the 1997 through 2000 crops of
wheat, an amount that is four percent less than
the established price for wheat for the preced-
ing crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of wheat, the Secretary of Agriculture shall
not make deficiency payments available to producers
of wheat or permit producers to repay a price sup-
port loan at a rate below the original loan rate.
(b) CORN.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for corn adminis-
tered by the Secretary of Agriculture, the established
price for corn for a crop year shall not exceed—
(A) for the 1996 crop of corn, $2.64 per
bushel; and
(B) for the 1997 through 2000 crops of
corn, an amount that is four percent less than
the established price for corn for the preceding
crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of corn, the Secretary of Agriculture shall not
make deficiency payments available to producers of
corn or permit producers to repay a price support
loan at a rate below the original loan rate.
(c) OATS.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for oats adminis-
tered by the Secretary of Agriculture, the established
price for oats for a crop year shall not exceed—
(A) for the 1996 crop of oats, $1.39 per
bushel; and
(B) for the 1997 through 2000 crops of
oats, an amount that is four percent less than
the established price for oats for the preceding
crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of oats, the Secretary of Agriculture shall not
make deficiency payments available to producers of
oats or permit producers to repay a price support
loan at a rate below the original loan rate.
(d) GRAIN SORGHUMS.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for grain sor-
ghums administered by the Secretary of Agriculture,
the established price for grain sorghums for a crop
year shall not exceed—
(A) for the 1996 crop of grain sorghums,
$2.51 per bushel; and
(B) for the 1997 through 2000 crops of
grain sorghums, an amount that is four percent
less than the established price for grain sor-
ghums for the preceding crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of grain sorghums, the Secretary of Agri-
culture shall not make deficiency payments available
to producers of grain sorghums or permit producers
to repay a price support loan at a rate below the
original loan rate.
(e) BARLEY.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for barley admin-
istered by the Secretary of Agriculture, the estab-
lished price for barley for a crop year shall not ex-
ceed—
(A) for the 1996 crop of barley, $2.27 per
bushel; and
(B) for the 1997 through 2000 crops of
barley, an amount that is four percent less than
the established price for barley for the preced-
ing crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of barley, the Secretary of Agriculture shall
not make deficiency payments available to producers
of barley or permit producers to repay a price sup-
port loan at a rate below the original loan rate.
(f) RICE.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for rice adminis-
tered by the Secretary of Agriculture, the established
price for rice for a crop year shall not exceed—
(A) for the 1996 crop of rice, $10.28 per
hundredweight; and
(B) for the 1997 through 2000 crops of
rice, an amount that is four percent less than
the established price for rice for the preceding
crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of rice, the Secretary of Agriculture shall not
make deficiency payments available to producers of
rice or permit producers to repay a price support
loan at a rate below the original loan rate.
(g) UPLAND COTTON.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for upland cotton
administered by the Secretary of Agriculture, the es-
tablished price for upland cotton for a crop year
shall not exceed—
(A) for the 1996 crop of upland cotton,
$0.70 per hundredweight; and
(B) for the 1997 through 2000 crops of
upland cotton, an amount that is four percent
less than the established price for upland cotton
for the preceding crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of upland cotton, the Secretary of Agriculture
shall not make deficiency payments available to pro-
ducers of upland cotton or permit producers to repay
a price support loan at a rate below the original loan
rate.
(h) EXTRA LONG STAPLE COTTON.—
(1) REDUCTION
IN
TARGET
PRICES.—In the
case of any price support program for extra long
staple cotton administered by the Secretary of Agri-
culture, the established price for extra long staple
cotton for a crop year shall not exceed—
(A) for the 1996 crop of extra long staple
cotton, $0.918 per hundredweight; and
(B) for the 1997 through 2000 crops of
extra long staple cotton, an amount that is four
percent less than the established price for extra
long staple cotton for the preceding crop year.
(2) TERMINATION
OF
DEFICIENCY
PAYMENT
AND
MARKETING
LOANS.—Notwithstanding 
any
other provision of law, for the 2001 and subsequent
crops of extra long staple cotton, the Secretary of
Agriculture shall not make deficiency payments
available to producers of extra long staple cotton or
permit producers to repay a price support loan at a
rate below the original loan rate.
(i) FUTURE REPEAL OF CURRENT PROVISIONS RE-
GARDING PRICE SUPPORT.—Effective October 1, 2000,
the following provisions of the Agricultural Act of 1949,
if still in effect on such date, are repealed:
(1) Section 101 (7 U.S.C. 1441) regarding
price support levels generally.
(2) Section 101B (7 U.S.C. 1441–2) regarding
loans, deficiency payments, and acreage reduction
programs for rice.
(3) Section 103(h) (7 U.S.C. 1444(h)) regard-
ing loans, deficiency payments, and acreage reduc-
tion programs for extra long staple cotton.
(4) Section 103B (7 U.S.C. 1444–2) regarding
loans, deficiency payments, and acreage reduction
programs for upland cotton.
(5) Section 105B (7 U.S.C. 1444f) regarding
loans, deficiency payments, and acreage reduction
programs for feed grains.
(6) Section 107B (7 U.S.C. 1445–3a) regarding
loans, deficiency payments, and acreage reduction
programs for wheat.
(7) Any similar provisions of law, enacted after
the date of the enactment of this Act, relating to
loans, deficiency payments, and acreage reduction
programs for the crops referred to in the preceding
paragraphs.
SEC. 3. ABANDONMENT OF ACREAGE REDUCTION PRO-
GRAMS AND 0/85 AND 50/85 PROGRAMS.
(a) ABANDONMENT.—The Agricultural Act of 1949
is amended by inserting after section 115 (7 U.S.C.
1445k) the following new section:
‘‘SEC. 116. ABANDONMENT OF RELIANCE ON ACREAGE RE-
DUCTION PROGRAMS AND 0/85 AND 50/85 PRO-
GRAMS AFTER THE 1998 CROP YEAR.
‘‘(a) ZERO PERCENTAGE ARP.—Beginning with the
1999 crops of rice, cotton, feed grains, and wheat, in oper-
ating any acreage reduction program on the production
of such crops, the Secretary shall impose a uniform per-
centage reduction of zero percent to the applicable crop
acreage base.
‘‘(b) EFFECT ON 0/85 AND 50/85 PROGRAMS.—Be-
cause operation of the 0/85 and 50/85 programs for rice,
cotton, feed grains, and wheat for a crop year are condi-
tioned on implementation of an acreage reduction program
for that crop year, the Secretary shall not conduct 0/85
and 50/85 programs for such crops after the 1998 crop
year.
‘‘(c) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘feed grains’ means corn, oats,
grain sorghums, and barley.
‘‘(2) The term ‘acreage reduction program’
means a program to reduce the crop acreage base
for rice, cotton, feed grains, or wheat by an an-
nounced acreage reduction requirement, in the man-
ner provided by—
‘‘(A) section 107B(e) of this Act, in the
case of wheat;
‘‘(B) section 105B(e) of this Act, in the
case of feed grains;
‘‘(C) section 103(h) of this Act, in the case
of extra long staple cotton;
‘‘(D) section 103B(e) of this Act, in the
case of upland cotton; and
‘‘(E) section 101B(e) of this Act, in the
case of rice.
‘‘(3) The term ‘0/85 and 50/85 programs’
means a program that authorizes deficiency pay-
ments on a certain percentage of the maximum pay-
ment acres of a program crop even though the crop
is not actually planted on such acres, in the manner
provided by—
‘‘(A) section 107B(c)(1)(E) of this Act, in
the case of wheat;
‘‘(B) section 105B(c)(1)(E) of this Act, in
the case of feed grains;
‘‘(C) section 103B(c)(1)(D) of this Act, in
the case of upland cotton; and
‘‘(D) section 101B(c)(1)(D) of this Act, in
the case of rice.’’.
(b) PRESERVATION
OF
FLEX
ACRE
PLANTING
FLEXIBILITY.—Beginning with the 1999 crops of rice,
cotton, feed grains, and wheat, the Secretary of Agri-
culture may not impose any restriction on the types of
crops a producer may plant on that percentage of the pro-
ducer’s crop acreage base that is excluded from payment
acres and ineligible for target price deficiency payments.
SEC. 4. INCOME LIMITATIONS ON PARTICIPATION IN COM-
MODITY PRICE SUPPORT PROGRAMS.
(a) INCOME LIMITATIONS ON PARTICIPATION.—Sec-
tion 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) is amended by adding at the end the following new
paragraph:
‘‘(8) ADJUSTED GROSS INCOME LIMITATION.—
‘‘(A) LIMITATION.—Subject to subparagraph
(B), a person who has an adjusted gross income, as
defined in section 62 of the Internal Revenue Code
of 1986 (26 U.S.C. 62), of more than $100,000 an-
nually shall not be eligible to receive deficiency pay-
ments and land diversion payments described in
paragraph (1) or other payments described in para-
graph (2)(B).
‘‘(B) EXCLUSION OF CERTAIN REVENUE.—Rev-
enues from the farming, ranching, and forestry oper-
ations of a person shall be excluded from the cal-
culation of the person’s adjusted gross income under
subparagraph (A).’’.
(b) APPLICATION.—The amendment made by sub-
section (a) shall apply to crop years beginning after the
date of the enactment of this Act.
SEC. 5. REDUCTION IN TOTAL AMOUNT OF AUTHORIZED
DEFICIENCY PAYMENTS AND ACREAGE DI-
VERSION PAYMENTS.
(a) $10,000 REDUCTION.—Section 1001(1)(A) of the
Food Security Act of 1985 (7 U.S.C. 1308) is amended
by striking ‘‘$50,000’’ and inserting ‘‘$40,000’’.
(b) APPLICATION.—The amendment made by sub-
section (a) shall apply to crop years beginning after the
date of the enactment of this Act.
SEC. 6. BUDGETARY LIMITATIONS ON OUTLAYS FOR DEFI-
CIENCY 
PAYMENTS 
FOR 
WHEAT, 
FEED,
GRAINS, RICE, AND COTTON.
(a) LIMITATION.—The total Commodity Credit Cor-
poration outlays for deficiency payments for wheat, feed,
grains, rice and cotton for the crop year 1996 through
2000 may not exceed—
(1) for fiscal year 1996, 88 percent of the pro-
jected Congressional Budget Office baseline of
$6,556,000,000;
(2) for fiscal year 1997, 70 percent of the pro-
jected Congressional Budget Office baseline of
$6,525,000,000;
(3) for fiscal year 1998, 53 percent of the pro-
jected Congressional Budget Office baseline of
$6,936,000,000;
(4) for fiscal year 1999, 40 percent of the pro-
jected Congressional Budget Office baseline of
$6,921,000,000;
(5) for fiscal year 2000, 23 percent of the pro-
jected Congressional Budget Office baseline of
$6,671,000,000;
(b) PRORATION OF PAYMENTS.—In any crop year be-
fore deficiency payments are terminated under section 2,
if the total Commodity Credit Corporation obligations for
such payments are projected to exceed the applicable
spending limit specified in subsection (a), the Secretary
of Agriculture shall prorate deficiency payments to recipi-
ents to meet such spending limit.
SEC. 7. SENSE OF CONGRESS REGARDING INCLUSION OF
AGRICULTURAL COMMODITIES AND PROD-
UCTS IN TRADE EMBARGOES.
It is the sense of Congress that trade embargoes,
which include agricultural commodities and products pro-
duced in the United States among the prohibited items,
should not used as a tool of United States foreign policy
unless the embargo is directed against a country, the gov-
ernment of which the Secretary of State has determined,
for purposes of section 6(j)(1) of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2405(6)(j)(1)), has re-
peatedly provided support for acts of international terror-
ism.
SEC. 8. REPORT ON FEASIBILITY OF PRIVATE REVENUE IN-
SURANCE.
Not later than six months after the date of the enact-
ment of this Act, the Secretary of Agriculture shall submit
to Congress a report evaluating the feasibility of using rev-
enue insurance for agricultural producers provided
through the private sector as an alternative to the contin-
ued use of price support loans, deficiency payments, and
other methods to provide income support to producers.
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