Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress regarding regulatory and tax relief for agricultural
producers and role of farm programs in ending the federal defi-
cit.
TITLE I—EXTENSION OF CERTAIN COMMODITY
PROGRAMS
Sec. 101. Extension of loans, payments, and acreage reduction programs for
wheat through 2002.
Sec. 102. Extension of loans, payments, and acreage reduction programs for
feed grains through 2002.
Sec. 103. Extension of loans, payments, and acreage reduction programs for
cotton through 2002.
Sec. 104. Extension of loans, payments, and acreage reduction programs for
rice through 2002.
Sec. 105. Extension of loans and payments for oilseeds through 2002.
TITLE II—MODIFICATION OF COMMODITY PROGRAM
OPERATIONS
Sec. 201. Increase in flex acres to reduce acres for which deficiency payments
are available.
Sec. 202. Application of same repayment criteria to 0/50 and 0/85 payments
as regular deficiency payments.
Sec. 203. Increased planting flexibility.
Sec. 204. Alternative repayment provision for marketing loans.
Sec. 205. Peanut program.
Sec. 206. Sugar program.
Sec. 207. Effect of amendments on 1991 through 1995 crops.
TITLE III—GENERAL COMMODITY PROVISIONS
Sec. 301. Extension of supplemental set-aside and acreage limitation authority.
Sec. 302. Extension of deficiency and land diversion payments.
Sec. 303. Extension of authority to adjust established prices.
Sec. 304. Extension of limitation on adjustments of support prices.
Sec. 305. Extension of option to extend programs.
Sec. 306. References to terms regarding price support.
Sec. 307. Extension of acreage base and yield system.
Sec. 308. Normally planted acreage.
Sec. 309. Extension of National Agricultural Cost of Production Standards Re-
view Board.
Sec. 310. Extension of payment limitations.
Sec. 311. Extension of requirements for notice and public participation in Sec-
retary determinations.
Sec. 312. Determination of normal supply.
Sec. 313. Extension of options pilot program.
TITLE IV—REPEAL OF EMERGENCY LIVESTOCK FEED
ASSISTANCE PROGRAM
Sec. 401. Repeal of emergency livestock feed assistance program.
TITLE V—FEDERAL CROP INSURANCE
Sec. 501. Conversion of catastrophic risk protection program to a voluntary
program.
TITLE VI—MISCELLANEOUS PROGRAMS
Sec. 601. Reduction in funding levels for export enhancement program.
Sec. 602. Spending limitations on conservation reserve program.
TITLE VII—COMMISSION ON 21ST CENTURY PRODUCTION
AGRICULTURE
Sec. 701. Establishment.
Sec. 702. Composition.
Sec. 703. Comprehensive review of past and future of production agriculture.
Sec. 704. Reports.
Sec. 705. Powers.
Sec. 706. Commission procedures.
Sec. 707. Personnel matters.
Sec. 708. Termination of Commission.
SEC. 2. SENSE OF CONGRESS REGARDING REGULATORY
AND TAX RELIEF FOR AGRICULTURAL PRO-
DUCERS AND ROLE OF FARM PROGRAMS IN
ENDING THE FEDERAL DEFICIT.
(a) FINDINGS.—The Congress finds that—
(1) the continuation of significant Federal
budgetary deficits harms the economic well-being of
the United States and is detrimental to the develop-
ment of sound, long-term agricultural policy;
(2) agricultural price support and production
adjustment programs are necessary for the contin-
ued economic health of United States agriculture,
which must compete in international markets
against subsidized foreign competition; and
(3) regulatory and tax relief for agricultural
producers is necessary so that agricultural producers
in the United States can continue to produce an
abundant supply of agricultural commodities and
compete in international markets.
(b) SENSE OF CONGRESS.—Based on the findings ex-
pressed in subsection (a), it is the sense of Congress
that—
(1) agricultural price support and production
adjustment programs should be—
(A) implemented, to the maximum extent
practicable, in a manner that is consistent with
the primary goal of the concurrent resolution on
the budget for fiscal year 1996 (H.Con.Res. 67,
agreed to June 29, 1995) to end Federal budg-
et deficits; and
(B) modified, as necessary, to ensure that
the programs comply with applicable budget
reconciliation instructions in the concurrent res-
olution that are designed to end Federal budget
deficits, in a manner consistent with section
306 of the concurrent resolution;
(2) regulatory relief for agricultural producers
should be enacted and implemented, including the
application of cost/benefit principles in the issuance
of agricultural regulations; and
(3) tax relief for agricultural producers should
be enacted in the form of capital gains tax reduc-
tions, estate tax exemptions, and mechanisms to av-
erage tax loads over high and low income years.
TITLE I—EXTENSION OF CER-
TAIN COMMODITY PROGRAMS
SEC. 101. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE
REDUCTION 
PROGRAMS 
FOR 
WHEAT
THROUGH 2002.
(a) AGRICULTURAL ACT OF 1949.—Section 107B of
the Agricultural Act of 1949 (7 U.S.C. 1445b–3a) is
amended—
(1) in the section heading by striking ‘‘1995’’
and inserting ‘‘2002’’;
(2) in subsections (a)(1), (a)(4)(C), (b)(1),
(c)(1)(A), 
(c)(1)(B)(iii), 
(e)(1)(G), 
(e)(3)(A),
(e)(3)(C)(iii), (f)(1), (q), by striking ‘‘1995’’ each
place it appears and inserting ‘‘2002’’;
(3) in the heading of subsection (c)(1)(B)(ii),
by striking ‘‘AND
1995’’ and inserting ‘‘THROUGH
2002’’;
(4) in subsection (c)(1)(B)(ii), by striking ‘‘and
1995’’ and inserting ‘‘through 2002’’; and
(5) 
in 
subsections 
(c)(1)(E)(i) 
and
(c)(1)(E)(vii), by striking ‘‘1997’’ each place it ap-
pears and inserting ‘‘2002’’;
(6) in the heading of subsection (e)(1)(G), by
striking ‘‘1995’’ and inserting ‘‘2002’’; and
(7) in subsection (g)(1), by striking ‘‘and
1995’’ and inserting ‘‘through 2002’’.
(b) FOOD SECURITY WHEAT RESERVE.—Section
302(i) of the Food Security Wheat Reserve Act of 1980
(7 U.S.C. 1736f–1(i)) is amended by striking ‘‘1995’’ both
places it appears and inserting ‘‘2002’’.
(c) NONAPPLICABILITY OF CERTIFICATE REQUIRE-
MENTS.—Sections 379d through 379j of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1379d–1379j) shall not
be applicable to wheat processors or exporters during the
period June 1, 1996, through May 31, 2003.
(d) SUSPENSION OF LAND USE, WHEAT MARKETING
ALLOCATION, 
AND
PRODUCER
CERTIFICATE
PROVI-
SIONS.—Sections 331 through 339, 379b, and 379c of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1331
through 1339, 1379b, and 1379c) shall not be applicable
to the 1996 through 2002 crops of wheat.
(e) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—
The joint resolution entitled ‘‘A joint resolution relating
to corn and wheat marketing quotas under the Agricul-
tural Adjustment Act of 1938, as amended’’, approved
May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be
applicable to the crops of wheat planted for harvest in the
calendar years 1996 through 2002.
(f) NONAPPLICABILITY OF SECTION 107 OF AGRI-
CULTURAL ACT OF 1949.—Section 107 of the Agricultural
Act of 1949 (7 U.S.C. 1445a) shall not be applicable to
the 1996 through 2002 crops of wheat.
SEC. 102. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE
REDUCTION PROGRAMS FOR FEED GRAINS
THROUGH 2002.
(a) AGRICULTURAL ACT OF 1949.—Section 105B of
the Agricultural Act of 1949 (7 U.S.C. 1444f) is amend-
ed—
(1) in the section heading, by striking ‘‘1995’’
and inserting ‘‘2002’’;
(2) in subsections (a)(1), (a)(4)(C), (a)(6),
(b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(1)(H),
(e)(2)(H), (e)(3)(A), (e)(3)(C)(iii), (f)(1), (p)(1),
(q)(1), and (r), by striking ‘‘1995’’ each place it ap-
pears and inserting ‘‘2002’’;
(3) in the heading of subsection (c)(1)(B)(ii),
by striking ‘‘AND
1995’’ and inserting ‘‘THROUGH
2002’’;
(4) in subsection (c)(1)(B)(ii), by striking ‘‘and
1995’’ and inserting ‘‘through 2002’’;
(5) 
in 
subsections 
(c)(1)(E)(i) 
and
(c)(1)(E)(vii), by striking ‘‘1997’’ each place it ap-
pears and inserting ‘‘2002’’;
(6) in the headings of subsections (e)(1)(G) and
(e)(1)(H), by striking ‘‘1995’’ both places it appears
and inserting ‘‘2002’’; and
(7) in subsection (g)(1), by striking ‘‘and
1995’’ and inserting ‘‘through 2002’’.
(b) RECOURSE LOAN PROGRAM FOR SILAGE.—Sec-
tion 403 of the Food Security Act of 1985 (7 U.S.C.
1444e–1) is amended by striking ‘‘1996’’ and inserting
‘‘2002’’.
(c) NONAPPLICABILITY OF SECTION 105 OF AGRI-
CULTURAL ACT OF 1949.—Section 105 of the Agricultural
Act of 1949 (7 U.S.C. 1444b) shall not be applicable to
the 1996 through 2002 crops of feed grains.
SEC. 103. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE
REDUCTION 
PROGRAMS 
FOR 
COTTON
THROUGH 2002.
(a) 
EXTRA
LONG
STAPLE
COTTON.—Section
103(h)(16) of the Agricultural Act of 1949 (7 U.S.C.
1444(h)(16)) is amended by striking ‘‘1996’’ and inserting
‘‘2003’’.
(b) UPLAND COTTON.—Section 103B of the Agricul-
tural Act of 1949 (7 U.S.C. 1444–2) is amended—
(1) in the section heading, by striking ‘‘1997’’
and inserting ‘‘2002’’;
(2) in subsections (a)(1), (b)(1), (c)(1)(A),
(c)(1)(B)(ii), (c)(1)(D)(i), (c)(1)(D)(v)(II), and (o),
by striking ‘‘1997’’ each place it appears and insert-
ing ‘‘2002’’;
(3) 
in 
the 
heading 
of 
subsection
(c)(1)(D)(v)(II), by striking ‘‘1997 CROPS’’ and in-
serting ‘‘2002 CROPS’’;
(4) in subsection (e)(1)(D), by striking ‘‘the
1997 crop’’ and inserting ‘‘each of the 1997 through
2002 crops’’;
(5) in subsections (e)(3)(A) and (f)(1), by strik-
ing ‘‘1995’’ each place it appears and inserting
‘‘2002’’; and
(6) in subparagraphs (B)(i), (D)(i), (E)(i), and
(F)(i) of subsection (a)(5), by striking ‘‘1998’’ each
place it appears and inserting ‘‘2003’’.
(c) COTTONSEED AND COTTONSEED OIL.—Section
203(b) of the Agricultural Act of 1949 (7 U.S.C.
1446d(b)) is amended by striking ‘‘1995’’ and inserting
‘‘2002’’.
(d) AGRICULTURAL ADJUSTMENT ACT OF 1938.—
Section 374(a) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1374(a)) is amended by striking ‘‘1995’’
each place it appears and inserting ‘‘2002’’.
(e) SUSPENSION OF BASE ACREAGE ALLOTMENTS,
MARKETING QUOTAS, AND RELATED PROVISIONS.—Sec-
tions 342, 343, 344, 345, 346, and 377 of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1342–1346 and 1377)
shall not be applicable to any of the 1996 through 2002
crops of upland cotton.
(f) SUSPENSION OF MISCELLANEOUS COTTON PRO-
VISIONS.—Section 103(a) of the Agricultural Act of 1949
(7 U.S.C. 1444(a)) shall not be applicable to the 1996
through 2002 crops.
(g) PRELIMINARY ALLOTMENTS FOR 2003 CROP OF
UPLAND COTTON.—Notwithstanding any other provision
of law, the permanent State, county, and farm base acre-
age allotments for the 1977 crop of upland cotton, ad-
justed for any underplantings in 1977 and reconstituted
as provided in section 379 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1379), shall be the preliminary al-
lotments for the 2003 crop.
(h) COTTON CLASSIFICATION SERVICES.—The first
sentence of section 3a of the Act of March 3, 1927 (com-
monly known as the ‘‘Cotton Statistics and Estimates
Act’’) (chapter 337; 7 U.S.C. 473a), is amended by strik-
ing ‘‘1996’’ and inserting ‘‘2002’’.
SEC. 104. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE
REDUCTION PROGRAMS FOR RICE THROUGH
2002.
Section 101B of the Agricultural Act of 1949 (7
U.S.C. 1441–2) is amended—
(1) in the section heading, by striking ‘‘1995’’
and inserting ‘‘2002’’;
(2) in subsections (a)(1), (a)(3), (b)(1),
(c)(1)(A), (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n),
by striking ‘‘1995’’ each place it appears and insert-
ing ‘‘2002’’;
(3) in subsection (a)(5)(D)(i), by striking
‘‘1996’’ and inserting ‘‘2001’’;
(4) in the heading of subsection (c)(1)(B)(ii),
by striking ‘‘AND
1995’’ and inserting ‘‘THROUGH
2002’’;
(5) in subsection (c)(1)(B)(ii), by striking ‘‘and
1995’’ and inserting ‘‘through 2002’’;
(6) 
in 
subsections 
(c)(1)(D)(i) 
and
(c)(1)(D)(v)(II), by striking ‘‘1997’’ each place it
appears and inserting ‘‘2002’’; and
(7) 
in 
the 
heading 
of 
subsection
(c)(1)(D)(v)(II), by striking ‘‘1997 CROPS’’ and in-
serting ‘‘2002 CROPS’’.
SEC. 105. EXTENSION OF LOANS AND PAYMENTS FOR OIL-
SEEDS THROUGH 2002.
Section 205 of the Agricultural Act of 1949 (7 U.S.C.
1446f) is amended—
(1) in the section heading, by striking ‘‘1995’’
and inserting ‘‘2002’’;
(2) in subsections (b), (c), (e)(1), and (n), by
striking ‘‘1995’’ each place it appears and inserting
‘‘2002’’; and
(3) in subsections (c) and (h)(2), by striking
‘‘1997’’ each places it appears and inserting ‘‘2002’’.
TITLE 
II—MODIFICATION 
OF
COMMODITY PROGRAM OPER-
ATIONS
SEC. 201. INCREASE IN FLEX ACRES TO REDUCE ACRES
FOR WHICH DEFICIENCY PAYMENTS ARE
AVAILABLE.
(a) WHEAT.—Subsection (c)(1)(C)(ii) of section
107B of the Agricultural Act of 1949 (7 U.S.C. 1445b–
3a) is amended by striking ‘‘85 percent’’ and inserting
‘‘85 percent (through the 1995 crop of wheat) and 70 per-
cent (for the 1996 through 2002 crops)’’.
(b) FEED GRAINS.—Subsection (c)(1)(C)(ii) of sec-
tion 105B of such Act (7 U.S.C. 1444f) is amended by
striking ‘‘85 percent’’ and inserting ‘‘85 percent (through
the 1995 crop) and 70 percent (for the 1996 through 2002
crops)’’.
(c) UPLAND COTTON.—Subsection (c)(1)(C)(ii) of
section 103B of such Act (7 U.S.C. 1444–2) is amended
by striking ‘‘85 percent’’ and inserting ‘‘85 percent
(through the 1995 crop of upland cotton) and 70 percent
(for the 1996 through 2002 crops)’’.
(d) RICE.—Subsection (c)(1)(C)(ii) of section 101B
of such Act (7 U.S.C. 1441–2) is amended by striking ‘‘85
percent’’ and inserting ‘‘85 percent (through the 1995
crop of rice) and 70 percent (for the 1996 through 2002
crops)’’.
SEC. 202. APPLICATION OF SAME REPAYMENT CRITERIA TO
0/50 AND 0/85 PAYMENTS AS REGULAR DEFI-
CIENCY PAYMENTS.
(a) WHEAT.—Subsection (c)(1)(E) of section 107B
of the Agricultural Act of 1949 (7 U.S.C. 1445b–3a) is
amended by striking clause (ii) and inserting the following
new clause:
‘‘(ii) DEFICIENCY PAYMENTS; REPAY-
MENT.—Notwithstanding any other provi-
sion of this section, for the 1996 through
2002 crops of wheat, any producer who de-
votes a portion of the maximum payment
acres for wheat for the farm to conserva-
tion uses (or other uses as provided in sub-
paragraph (F)) under this subparagraph
shall receive deficiency payments on the
acreage that is considered to be planted to
wheat and eligible for payments under this
subparagraph for the crop. Such deficiency
payments shall be made at the payment
rate provided in subparagraph (B) for defi-
ciency payments under subparagraph (A)
and shall be subject to repayment under
the terms set forth in section 114.’’.
(b) FEED GRAINS.—Subsection (c)(1)(E) of section
105B of such Act (7 U.S.C. 1444f) is amended by striking
clause (ii) and inserting the following new clause:
‘‘(ii) DEFICIENCY PAYMENTS; REPAY-
MENT.—Notwithstanding any other provi-
sion of this section, for the 1996 through
2002 crops of feed grains, any producer
who devotes a portion of the maximum
payment acres for feed grains for the farm
to conservation uses (or other uses as pro-
vided in subparagraph (F)) under this sub-
paragraph shall receive deficiency pay-
ments on the acreage that is considered to
be planted to feed grains and eligible for
payments under this subparagraph for the
crop. Such deficiency payments shall be
made at the payment rate provided in sub-
paragraph (B) for deficiency payments
under subparagraph (A) and shall be sub-
ject to repayment under the terms set
forth in section 114.’’.
(c) UPLAND COTTON.—Subsection (c)(1)(D) of sec-
tion 103B of such Act (7 U.S.C. 1444–2) is amended by
striking clause (iii) and inserting the following new clause:
‘‘(iii) DEFICIENCY PAYMENTS; REPAY-
MENT.—Notwithstanding any other provi-
sion of this section, for the 1996 through
2002 crops of upland cotton, any producer
who devotes a portion of the maximum
payment acres for upland cotton for the
farm to conservation uses (or other uses as
provided in subparagraph (F)) under this
subparagraph shall receive deficiency pay-
ments on the acreage that is considered to
be planted to upland cotton and eligible for
payments under this subparagraph for the
crop. Such deficiency payments shall be
made at the payment rate provided in sub-
paragraph (B) for deficiency payments
under subparagraph (A) and shall be sub-
ject to repayment under the terms set
forth in section 114.’’.
(d) RICE.—Subsection (c)(1)(D) of section 101B of
such Act (7 U.S.C. 1441–2) is amended by striking clause
(iii) and inserting the following new clause:
‘‘(iii) DEFICIENCY PAYMENTS; REPAY-
MENT.—Notwithstanding any other provi-
sion of this section, for the 1996 through
2002 crops of rice, any producer who de-
votes a portion of the maximum payment
acres for rice for the farm to conservation
uses (or other uses as provided in subpara-
graph (F)) under this subparagraph shall
receive deficiency payments on the acreage
that is considered to be planted to rice and
eligible for payments under this subpara-
graph for the crop. Such deficiency pay-
ments shall be made at the payment rate
provided in subparagraph (B) for defi-
ciency payments under subparagraph (A)
and shall be subject to repayment under
the terms set forth in section 114.’’.
SEC. 203. INCREASED PLANTING FLEXIBILITY.
(a) EXPANSION OF 25 PERCENT LIMITATION.—Sub-
section (c) of section 504 of the Agricultural Act of 1949
(7 U.S.C. 1464) is amended to read as follows:
‘‘(c) LIMITATION ON ACREAGE.—The quantity of the
crop acreage base that may be planted to a commodity,
other than the specific program crop, under this section
may not exceed 100 percent of the crop acreage base.’’.
(b) TWO-WAY FLEXIBILITY.—Such section is further
amended by adding at the end the following new sub-
section:
‘‘(f) TWO-WAY FLEXIBILITY.—
‘‘(1) PLANTING ON HISTORICAL SOYBEAN ACRE-
AGE.—Notwithstanding any other provision of this
Act, producers of a program crop on a farm who are
participating in the production adjustment program
for the program crop under this Act shall be allowed
to plant the program crop in a quantity that exceeds
the permitted acreage for the crop without losing the
eligibility of the producers for loans, purchases, or
payments with respect to the crop under this Act if
the acreage planted to the program crop on the farm
in excess of the permitted acreage does not exceed
25 percent of the historical soybean acreage on the
farm for the crop.
‘‘(2) ADDITIONAL FLEXIBILITY.—Any authority
to plant a program crop in excess of the permitted
acreage for the crop under this subsection shall be
in addition to authority provided under subsection
(d).
‘‘(3) LIMITATION.—The Secretary may limit
the application of this subsection with respect to a
program crop if the Secretary determines the limita-
tion to be necessary to prevent an increase in the
acreage limitation program that would otherwise be
implemented in accordance with sections 101B,
103B, 105B, and 107B during a crop year for the
crop.’’.
(c) CONFORMING AMENDMENTS.—Such section is
further amended—
(1) in subsection (d)—
(A) by striking ‘‘Notwithstanding’’ and in-
serting ‘‘Except as provided in subsection (f)
and notwithstanding’’; and
(B) in paragraph (1), by striking ‘‘25 per-
cent’’ and inserting ‘‘100 percent’’; and
(2) in subsection (e)(2)(A), by striking ‘‘25 per-
cent’’ and inserting ‘‘100 percent’’.
SEC. 204. ALTERNATIVE REPAYMENT PROVISION FOR MAR-
KETING LOANS.
(a) WHEAT.—
(1) 
MARKETING
LOAN
REPAYMENT.—Sub-
section (a) of section 107B of the Agricultural Act
of 1949 (7 U.S.C. 1445b–3a) is amended—
(A) by striking paragraph (3) and all that
follows through paragraph (4)(A) and inserting
the following:
‘‘(3) MARKETING LOANS.—
‘‘(A) IN
GENERAL.—The Secretary shall
permit the producers on a farm to repay a loan
made under this subsection for a crop at a level
(except as provided in subparagraph (C)) that
is the lesser of—
‘‘(i) the loan level determined for the
crop; and
‘‘(ii) the prevailing world market price
for wheat (adjusted to United States qual-
ity and location), as determined by the
Secretary.’’; and
(B) by redesignating paragraph (5) as
paragraph (4).
(2) 
CONFORMING
AMENDMENT.—Subsection
(c)(1) of such section is amended by striking sub-
paragraph (D).
(b) FEED GRAINS.—
(1) 
MARKETING
LOAN
REPAYMENT.—Sub-
section (a) of section 105B of the Agricultural Act
of 1949 (7 U.S.C. 1444f) is amended—
(A) by striking paragraph (3) and all that
follows through paragraph (4)(A) and inserting
the following:
‘‘(3) MARKETING LOANS.—
‘‘(A) IN
GENERAL.—The Secretary shall
permit the producers on a farm to repay a loan
made under this subsection for a crop at a level
(except as provided in subparagraph (C)) that
is the lesser of—
‘‘(i) the loan level determined for the
crop; and
‘‘(ii) the prevailing world market price
for feed grains (adjusted to United States
quality and location), as determined by the
Secretary.’’; and
(B) by redesignating paragraphs (5) and
(6) as paragraphs (4) and (5), respectively.
(2) 
CONFORMING
AMENDMENT.—Subsection
(c)(1) of such section is amended by striking sub-
paragraph (D).
SEC. 205. PEANUT PROGRAM.
(a) NATIONAL POUNDAGE QUOTAS AND ACREAGE
ALLOTMENTS.—Section 358–1 of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1358–1) is amended to read
as follows:
‘‘SEC. 358–1. NATIONAL POUNDAGE QUOTAS AND ACREAGE
ALLOTMENTS FOR PEANUTS.
‘‘(a) NATIONAL POUNDAGE QUOTAS.—
‘‘(1) ESTABLISHMENT.—The national poundage
quota for peanuts for each marketing year shall be
established by the Secretary at a level that is equal
to the quantity of peanuts (in tons) that the Sec-
retary estimates will be devoted in each such mar-
keting year to domestic edible and related uses, ex-
cluding seed. The Secretary shall also include in his
annual estimate of domestic edible and related uses,
the estimated quantity of peanuts and peanut prod-
ucts to be imported into the United States for the
marketing year for which the quota is being estab-
lished.
‘‘(2) ANNOUNCEMENT.—The national poundage
quota for a marketing year shall be announced by
the Secretary not later than December 15 preceding
the marketing year.
‘‘(3) APPORTIONMENT
AMONG
STATES.—The
national poundage quota established under para-
graph (1) shall be apportioned among the States so
that the poundage quota allocated to each State
shall be equal to the percentage of the national
poundage quota allocated to farms in the State for
1995.
‘‘(b) FARM POUNDAGE QUOTAS.—
‘‘(1) IN GENERAL.—
‘‘(A) ESTABLISHMENT.—A farm poundage
quota for each marketing year shall be estab-
lished—
‘‘(i) for each farm that had a farm
poundage quota for peanuts for the 1995
marketing year;
‘‘(ii) if the poundage quota appor-
tioned to a State under subsection (a)(3)
for any such marketing year is larger than
the quota for the immediately preceding
marketing year, for each other farm on
which peanuts were produced for market-
ing in at least 2 of the 3 immediately pre-
ceding crop years, as determined by the
Secretary; and
‘‘(iii) as approved and determined by
the Secretary under section 358c, for each
farm on which peanuts are produced in
connection with experimental and research
programs.
‘‘(B) QUANTITY.—The farm poundage
quota for each marketing year for each farm
described in subparagraph (A)(i) shall be the
same as the farm poundage quota for the farm
for the immediately preceding marketing year,
as adjusted under paragraph (2), but not in-
cluding any increases resulting from the alloca-
tion of quotas voluntarily released for one year
under paragraph (7). The farm poundage
quota, if any, for each marketing year for each
farm described in subparagraph (A)(ii) shall be
equal to the quantity of peanuts allocated to the
farm for the year under paragraph (2).
‘‘(C) TRANSFERS.—For purposes of this
subsection, if the farm poundage quota, or any
part thereof, is permanently transferred in ac-
cordance with section 358a or 358b, the receiv-
ing farm shall be considered as possessing the
farm poundage quota (or portion thereof) of the
transferring farm for all subsequent marketing
years.
‘‘(2) ADJUSTMENTS.—
‘‘(A) ALLOCATION OF INCREASED QUOTA
GENERALLY.—Except as provided in subpara-
graph (C), if the poundage quota apportioned
to a State under subsection (a)(3) of any mar-
keting year is increased over the poundage
quota apportioned to farms in the State for the
immediately preceding marketing year, the in-
crease shall be allocated proportionately, based
on farm production history for peanuts for the
3 immediately preceding years, among—
‘‘(i) all farms in the State for each of
which a farm poundage quota was estab-
lished for the marketing year immediately
preceding the marketing year for which the
allocation is being made; and
‘‘(ii) all other farms in the State on
each of which peanuts were produced in at
least 2 of the 3 immediately preceding crop
years, as determined by the Secretary.
‘‘(B) DECREASE.—If the poundage quota
apportioned to a State under subsection (a)(3)
for any marketing year is decreased from the
poundage quota apportioned to farms in the
State under subsection (a)(3) for the imme-
diately preceding marketing year, the decrease
shall be allocated among all the farms in the
State for each of which a farm poundage quota
was established for the marketing year imme-
diately preceding the marketing year for which
the allocation is being made.
‘‘(C) SPECIAL RULE ON TENANT’S SHARE
OF INCREASED QUOTA.—Subject to terms and
conditions prescribed by the Secretary, on
farms that were leased to a tenant for peanut
production, the tenant shall share equally with
the owner of the farm in that percentage of the
quota referred to in subparagraph (A) and oth-
erwise allocated to the farm as the result of the
tenant’s production on the farm of additional
peanuts. Not later than April 1 of each year or
as soon as practicable, the tenant’s share of any
such quota shall be allocated to a farm within
the county owned by the tenant or sold by the
tenant to the owner of any farm within the
county and permanently transferred to that
farm. Any quota not so disposed of as provided
in this subparagraph shall be allocated to other
quota farms in the State under paragraph (6)
as part of the quota reduced from farms in the
State due to the failure to produce the quota.
allocation shall be equal to the pounds of seed
peanuts planted on the farm as may be ad-
justed under regulations that shall be pre-
scribed by the Secretary. The temporary alloca-
tion of quota pounds under this paragraph shall
be in addition to the farm quota pounds estab-
lished under paragraph (1).
‘‘(B) The allocation of quota pounds to
producers under the provisions of this sub-
section shall be performed in such a manner as
will not result in a net decrease in quota
pounds on a farm in excess of 3 percent, after
temporary seed quota is added, from the basic
farm quota in 1996 and such decrease shall
occur one time only and shall be applicable to
the 1996 marketing year only.
‘‘(C) Implementation of provisions in this
subsection may continue so long as doing so
does not result in increased cost to the Com-
modity Credit Corporation by displacement of
quota peanuts by additional peanuts in the do-
mestic market, increased losses in the Associa-
tion loan pools or other such increases in cost.
‘‘(D) Nothing in this paragraph shall alter
or change in any way the requirements of sec-
tion 358e(b).
‘‘(c) FARM YIELDS.—
‘‘(1) IN GENERAL.—For each farm for which a
farm poundage quota is established under subsection
(b), and when necessary for purposes of this Act, a
farm yield of peanuts shall be determined for each
such farm.
‘‘(2) QUANTITY.—The yield shall be equal to
the average of the actual yield per acre on the farm
for each of the 3 crop years in which yields were
highest on the farm out of the 5 crop years 1973
through 1977.
‘‘(3) APPRAISED YIELDS.—If peanuts were not
produced on the farm in at least 3 years during the
5-year period or there was a substantial change in
the operation of the farm during the period (includ-
ing a change in operator, lessee who is an operator,
or irrigation practices), the Secretary shall have a
yield appraised for the farm. The appraised yield
shall be that quantity determined to be fair and rea-
sonable on the basis of yields established for similar
farms that are located in the area of the farm and
on which peanuts were produced, taking into consid-
eration land, labor, and equipment available for the
production of peanuts, crop rotation practices, soil
and water, and other relevant factors.
‘‘(d) 
REFERENDUM
RESPECTING
POUNDAGE
QUOTAS.—
‘‘(1) IN GENERAL.—Not later than December
15 of each calendar year, the Secretary shall con-
duct a referendum of producers engaged in the pro-
duction of quota peanuts in the calendar year in
which the referendum is held to determine whether
the producers are in favor of or opposed to poundage
quotas with respect to the crops of peanuts produced
in the 5 calendar years immediately following the
year in which the referendum is held, except that, if
as many as two-thirds of the producers voting in any
referendum vote in favor of poundage quotas, no ref-
erendum shall be held with respect to quotas for the
second, third, fourth, and fifth years of the period.
‘‘(2) PROCLAMATION.—The Secretary shall pro-
claim the result of the referendum within 30 days
after the date on which it is held.
‘‘(3) VOTE
AGAINST
QUOTAS.—If more than
one-third of the producers voting in the referendum
vote against quotas, the Secretary also shall pro-
claim that poundage quotas will not be in effect with
changes are the result of the amendments made by this
Act. The review shall include the following:
(1) An assessment of the success of farm pro-
grams under the Agricultural Act of 1949 in sup-
porting the economic viability of farming in the
United States.
(2) An assessment of the food security situation
in the United States in the areas of trade, consumer
prices, international competitiveness of United
States production agriculture, food supplies, and hu-
manitarian relief.
(3) An assessment of the changes in farm land
values and agricultural producer incomes since the
date of the enactment of this Act.
(4) An assessment of the extent to which regu-
latory relief for agricultural producers has been en-
acted and implemented, including the application of
cost/benefit principles in the issuance of agricultural
regulations.
(5) An assessment of the extent to which tax
relief for agricultural producers has been enacted in
the form of capital gains tax reductions, estate tax
exemptions, and mechanisms to average tax loads
over high and low income years.