I
105TH CONGRESS
1ST SESSION
H. R. 1864
To provide for a gradual reduction in the loan rate for peanuts, to repeal
peanut quotas for the 2002 and subsequent crops, and to make non-
recourse loans available for peanut producers.
IN THE HOUSE OF REPRESENTATIVES
JUNE 11, 1997
Mr. SHAYS (for himself, Mrs. LOWEY, Mr. ANDREWS, Mr. BARRETT of Wis-
consin, Mr. BASS, Ms. CARSON, Mr. CASTLE, Mr. CHABOT, Mr. COYNE,
Mr. DELLUMS, Mr. DOYLE, Mr. ENGLISH of Pennsylvania, Mr. ENSIGN,
Mr. FAWELL, Mr. FOGLIETTA, Mr. FRANKS of New Jersey, Mr.
FRELINGHUYSEN, Mr. GEKAS, Mr. HINCHEY, Mr. HOBSON, Mr. HOLD-
EN, Mr. HUTCHINSON, Mr. KANJORSKI, Mr. KLUG, Mr. KNOLLENBERG,
Mr. KOLBE, Mr. LAFALCE, Mr. LATOURETTE, Mr. LIPINSKI, Mr.
LOBIONDO, Mr. MCINTOSH, Mrs. MALONEY of New York, Mr. MARKEY,
Mr. MARTINEZ, Mr. MCHALE, Mr. MEEHAN, Mr. MENENDEZ, Mr. MIL-
LER of Florida, Mrs. MORELLA, Mr. NEUMANN, Mr. OLVER, Mr. PACK-
ARD, Mr. PORTER, Mr. PORTMAN, Mr. QUINN, Mr. RAMSTAD, Ms. RIV-
ERS, Mr. ROHRABACHER, Mr. ROTHMAN, Mrs. ROUKEMA, Mr. ROYCE,
Mr. SCHUMER, Mr. SENSENBRENNER, Mr. SKAGGS, Mr. SMITH of New
Jersey, Mr. SOUDER, Mr. STARK, Mr. TORRES, Mr. VISCLOSKY, and Mr.
WAMP) introduced the following bill; which was referred to the Committee
on Agriculture
A BILL
To provide for a gradual reduction in the loan rate for
peanuts, to repeal peanut quotas for the 2002 and subse-
quent crops, and to make nonrecourse loans available
for peanut producers.
(d) CONFORMING AMENDMENTS.—The Agricultural
Act of 1949 (7 U.S.C. 1441 et seq.) is amended—
(1) in section 101(b) (7 U.S.C. 1441(b)), by
striking ‘‘and peanuts’’; and
(2) in section 408(c) (7 U.S.C. 1428(c)), by
striking ‘‘peanuts,’’.
(e) PROHIBITION ON SUBSEQUENT PROVISION OF
PRICE SUPPORT.—
(1) PROHIBITION.—After the effective date of
this section, except as provided in section 3, the Sec-
retary of Agriculture may not make price support
available, whether in the form of loans, purchases,
or other operations, to peanut producers for the
2002 and subsequent crops of peanuts by using the
funds of the Commodity Credit Corporation or under
the authority of any law.
(2) OUTSTANDING
LOANS.—Notwithstanding
paragraph (1), the Secretary shall settle any out-
standing loans under section 155 of the Agricultural
Market Transition Act (title I of Public Law 104–
127; 7 U.S.C. 7271) made before the effective date
of this section with regard to the 2001 and previous
crops of peanuts.
(f) CONTINUED LIABILITY
OF PRODUCERS.—An
amendment made by this section shall not affect the liabil-
ity of any person under any provision of law as in effect
before the effective date of this section.
SEC. 3. NONRECOURSE LOANS FOR PEANUT PRODUCERS.
(a) NONRECOURSE LOANS AVAILABLE.—For each of
the 2002 and subsequent crops of peanuts produced in
the United States, the Secretary of Agriculture shall make
available to producers on a farm a nonrecourse loan for
peanuts produced on the farm. The loans shall be made
under terms and conditions that are prescribed by the Sec-
retary and at the loan rate established under subsection
(b).
(b) LOAN RATE.—The loan rate for a nonrecourse
loan under this section for peanuts shall be—
(1) not less than 85 percent of the simple aver-
age price received by producers of peanuts, as deter-
mined by the Secretary, during the marketing years
for the immediately preceding five crops of peanuts,
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 $350 per ton.
(c) TERM OF LOAN.—A nonrecourse loan for peanuts
under this section shall have a term of 9 months beginning
on the first day of the first month after the month in
which the loan is made. The Secretary may not extend
the term of the loan.
(d) REPAYMENT RATES.—The Secretary shall permit
a producer to repay a nonrecourse loan for peanuts under
this section at a rate that is the lesser of—
(1) the loan rate established 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 the peanuts; and
(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 peanut produc-
ers who, although eligible to obtain a nonrecourse
loan under this section, agree to forgo obtaining the
loan for the commodity in return for payments
under this subsection.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by multiply-
ing—
(A) the loan payment rate determined
under paragraph (3); by
(B) the quantity of peanuts that the pro-
ducers on a farm are eligible to place under
loan but for which the producers forgo obtain-
ing the loan in return for payments under this
subsection.
(3) LOAN
PAYMENT
RATE.—For purposes of
this subsection, the loan payment rate shall be the
amount by which—
(A) the loan rate established under sub-
section (b); exceeds
(B) the rate at which a loan for the pea-
nuts may be repaid under subsection (d).
Æ