amended by striking paragraph (1) and inserting the fol-
lowing new paragraph:
‘‘(1) LOAN RATE.—Subject to paragraph (2),
the loan rate for a marketing assistance loan under
section 131 for wheat shall be equal to not less than
85 percent of the simple average price received by
producers of wheat, as determined by the Secretary,
during the marketing years for the immediately pre-
ceding 5 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 pe-
riod.’’.
(b) FEED GRAINS.—Subsection (b) of such section
is amended by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) LOAN RATE FOR CORN.—Subject to para-
graph (2), the loan rate for a marketing assistance
loan under section 131 for corn shall be equal to not
less than 85 percent of the simple average price re-
ceived by producers of corn, as determined by the
Secretary, during the marketing years for the imme-
diately preceding 5 crops of corn, 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.’’.
(c) UPLAND COTTON.—Subsection (c)(2) of such sec-
tion is amended by striking ‘‘or more than $0.5192 per
pound’’.
(d) EXTRA LONG STAPLE COTTON.—Subsection (d)
of such section is amended to read as follows:
‘‘(d) EXTRA LONG STAPLE COTTON.—The loan rate
for a marketing assistance loan under section 131 for
extra long staple cotton shall be equal to not less than
85 percent of the simple average price received by produc-
ers of extra long staple cotton, as determined by the Sec-
retary, during 3 years of the 5-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.’’.
(e) OILSEEDS.—Subsection (f) of such section is
amended—
(1) in paragraph (1)(B), by striking ‘‘or more
than $5.26’’; and
(2) in paragraph (2)(B), by striking ‘‘or more
than $0.093’’.
SEC. 3. COST-SHARE ASSISTANCE FOR AGRICULTURAL
PRODUCERS 
PERFORMING 
CERTAIN
DROUGHT ALLEVIATION PROJECTS.
(a) DEFINITIONS.—In this section:
(1) DESIGNATED DISASTER AREA.—The term
‘‘designated disaster area’’ means an area that is
covered by a Presidential declaration of major disas-
ter issued under section 401 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170) or determined to be a disaster
area by the Secretary of Agriculture under subpart
A of part 1945 of title 7, Code of Federal Regula-
tions, if the basis for the Presidential declaration or
Secretarial determination is at least in part the re-
sult of drought conditions in the area.
(2) ELIGIBLE LAND.—The term ‘‘eligible land’’
means agricultural land, including cropland, range-
land, pasture, and other land on which crops or live-
stock are produced, or land used to support the pro-
duction of crops or livestock.
(3) LIVESTOCK.—The term ‘‘livestock’’ means
dairy cattle, beef cattle, laying hens, broilers, tur-
keys, swine, sheep, and such other animals as deter-
mined by the Secretary.
(4) PRODUCER.—The term ‘‘producer’’ means a
person who is engaged in livestock or agricultural
production (as defined by the Secretary).
(b) AUTHORITY TO PROVIDE ASSISTANCE.—During
the 1999 through 2002 fiscal years, the Secretary of Agri-
culture may provide technical assistance and cost-share
payments to a producer who undertakes on eligible lands
in a designated disaster area a project intended to allevi-
ate or otherwise respond to the effects of drought on crop
or livestock production. A producer may apply for cost-
share payments under this section before undertaking an
eligible project, during the course of the project, or within
one year after completing the project. A project may be
completed after the expiration of the designation of an
area as a designated disaster area.
(c) ELIGIBLE PROJECTS.—The projects for which as-
sistance may be provided under this section include—
(1) the installation of water wells to be used
primarily for crop irrigation or livestock watering;
(2) the dredging of ponds or other small bodies
of water on eligible lands; and
(3) the extension of public water supply lines to
serve eligible lands.
(d) OFFER SELECTION PROCESS.—The Secretary of
Agriculture shall, to the maximum extent practicable, es-
tablish a process for selecting applications for financial as-
sistance if there are numerous applications for assistance
for eligible projects that would provide substantially the
same level of benefits. The process shall be based on—
(1) a reasonable estimate of the projected cost
of the proposals and other factors identified by the
Secretary for determining which applications will re-
sult in the least cost to the program authorized by
this section; and
(2) such other factors determined by the Sec-
retary that maximize benefits in designated disaster
areas per dollar expended.
(e) CONCURRENCE
OF OWNER.—If the producer
making an offer to receive assistance is a tenant using
the eligible land, for the offer to be acceptable, the pro-
ducer shall obtain the concurrence of the owner of the eli-
gible land with respect to the offer.
(f) AMOUNT OF COST-SHARE PAYMENTS.—The Fed-
eral share of cost-share payments to a producer proposing
to implement one or more eligible project shall be not more
than 75 percent of the projected cost of the project, as
determined by the Secretary of Agriculture, taking into
consideration any payment received by the producer from
a State or local government. A producer may not receive
cost-share payments under this section for a project if the
producer receives cost-share payments or other benefits
for the same project under another provision of law.
(g) TECHNICAL ASSISTANCE.—The receipt of tech-
nical assistance under this section shall not affect the eli-
gibility of the producer to receive technical assistance
under other authorities of law available to the Secretary
of Agriculture.
(h) RETROACTIVE EFFECT.—This section shall apply
to eligible projects commenced in designated disaster areas
on or after January 1, 1998.
SEC. 4. AUTHORITY TO PROVIDE EMERGENCY LOANS
BASED ON ESTIMATED LOSSES.
Subtitle C of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1961–1970) is amended by in-
serting after section 327 the following:
‘‘SEC. 328. In this subtitle, the terms ‘actual loss’
and ‘actual production loss’ mean actual loss or (if great-
er) the estimated loss as determined by the relevant coun-
ty committee.’’.
SEC. 5. BORROWER ELECTION TO DEFER INTEREST PAY-
MENTS ON EMERGENCY LOANS.
Section 324 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1964) is amended by adding at
the end the following:
‘‘(f) A borrower of a loan made under this subtitle
may elect to defer the payment of any or all interest on
the loan until the end of the period for which the loan
is made.’’.
Æ