IB
Union Calendar No. 121
107TH CONGRESS
1ST SESSION
H. R. 2646
[Report No. 107–191, Parts I, II, and III]
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
AUGUST 2, 2001
Reported with an amendment and referred to the Committee on International
Relations for a period ending not later than September 7, 2001, for con-
sideration of such provisions of the bill and amendment as fall within the
jurisdiction of that committee pursuant to clause 1(j), rule X
[Strike out all after the enacting clause and insert the part printed in italic]
SEPTEMBER 7, 2001
Referral to the Committee on International Relations extended for a period
ending not later than September 10, 2001
SEPTEMBER 10, 2001
Reported from the Committee on International Relations with amendments,
committed to the Committee of the Whole House on the State of the
Union, and ordered to be printed
[Omit the part struck through in italic and insert the part printed in boldface roman]
[For text of introduced bill, see copy of bill as introduced on July 26, 2001]
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
‘‘Farm Security 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, decou-
pled 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 com-
modities.
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 cot-
ton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for wool and mo-
hair.
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 regard-
ing 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. 165. Producer agreement required as condition on provision of fixed, decou-
pled payments and counter-cyclical payments.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance loans and loan deficiency payments for peanuts.
Sec. 168. Quality improvement.
Sec. 169. Payment limitations.
Sec. 170. Termination of marketing quota programs for peanuts and compensa-
tion to peanut quota holders for loss of quota asset value.
Subtitle D—Administration
Sec. 181. Administration generally.
Sec. 182. Extension of suspension of permanent price support authority.
Sec. 183. Limitations.
Sec. 184. Adjustments of loans.
Sec. 185. Personal liability of producers for deficiencies.
Sec. 186. Extension of existing administrative authority regarding loans.
Sec. 187. Assignment of payments.
TITLE II—CONSERVATION
Subtitle A—Definition
Sec. 201. Definition of agricultural commodity.
Subtitle B—Wetland Conservation Program
Sec. 211. Ineligibility for certain loans and payments.
Subtitle C—Environmental Conservation Acreage Reserve
Program
Sec. 221. Elimination of general provisions.
Subtitle D—Conservation Reserve Program
Sec. 231. Reauthorization.
Sec. 232. Enrollment.
Sec. 233. Duties of owners and operators.
Sec. 234. Duties of the Secretary.
Sec. 235. Acceptance of contract offers.
Sec. 236. Contracts.
Subtitle E—Wetlands Reserve Program
Sec. 241. Enrollment.
Sec. 242. Easements and agreements.
Sec. 243. Duties of the Secretary.
Sec. 244. Payment limitation.
Sec. 245. Changes in ownership; agreement modification; termination.
Subtitle F—Environmental Quality Incentives Program
Sec. 251. Purposes.
Sec. 252. Definitions.
Sec. 253. Establishment and administration.
Sec. 254. Evaluation of offers and payments.
Sec. 255. Duties of producers.
Sec. 256. Environmental Quality Incentives Program plan.
Sec. 257. Duties of the Secretary.
Sec. 258. Limitation on payments.
Sec. 259. Groundwater conservation.
Subtitle G—Funding and Administration
Sec. 261. Reauthorization.
Sec. 262. Funding.
Sec. 263. Allocation for livestock production.
Sec. 264. Use of other agencies.
Sec. 265. Administration and technical assistance.
Subtitle H—Other Programs
Sec. 271. Wildlife Habitat Incentives Program.
Sec. 272. Farmland Protection Program.
Sec. 273. Resource Conservation and Development Program.
Sec. 274. Grassland Reserve Program.
Sec. 275. Farmland Stewardship Program.
Sec. 276. Small Watershed Rehabilitation Program.
Subtitle I—Availability of Funds
Sec. 281. Availability of funds appropriated pursuant to the Soil Conservation
and Domestic Allotment Act.
Subtitle J—Repeals
Sec. 291. Provisions of the Food Security Act of 1985.
Sec. 292. National Natural Resources Conservation Foundation Act.
TITLE III—TRADE
Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Export Enhancement Program.
Sec. 304. Foreign Market Development Cooperator Program.
Sec. 305. Export Credit Guarantee Program.
Sec. 306. Food for Peace (PL 480).
Sec. 307. Emerging markets.
Sec. 308. Bill Emerson Humanitarian Trust.
Sec. 309. Technical assistance for specialty crops.
TITLE III—TRADE
Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Surplus commodities for developing or friendly coun-
tries.
Sec. 304. Export Enhancement Program.
Sec. 305. Foreign Market Development Cooperator Program.
Sec. 306. Export Credit Guarantee Program.
Sec. 307. Food for Peace (PL 480).
Sec. 308. Emerging markets.
Sec. 309. Bill Emerson Humanitarian Trust.
Sec. 310. Fee for services.
Sec. 311. Multiyear agricultural trade strategy.
Sec. 312. George Mcgovern–Robert Dole International Food for
Education and Child Nutrition Program.
Sec. 313. Farmers for Africa and Caribbean Basin Program.
Sec. 314. International food relief partnership.
Sec. 315. Technical assistance for specialty crops.
TITLE IV—NUTRITION PROGRAMS
Subtitle A—Food Stamp Program
Sec. 401. Simplified definition of income.
Sec. 402. Standard deduction.
Sec. 403. Transitional food stamps for families moving from welfare.
Sec. 404. Quality control systems.
Sec. 405. Simplified application and eligibility determination systems.
Sec. 406. Authorization of appropriations.
Subtitle B—Commodity Distribution
Sec. 441. Distribution of surplus commodities to special nutrition projects.
Sec. 442. Commodity supplemental food program.
Sec. 443. Emergency food assistance.
Subtitle C—Miscellaneous Provisions
Sec. 461. Hunger fellowship program.
Sec. 462. General effective date.
TITLE V—CREDIT
Sec. 501. Eligibility of limited liability companies for farm ownership loans,
farm operating loans, and emergency loans.
Sec. 502. Suspension of limitation on period for which borrowers are eligible for
guaranteed assistance.
Sec. 503. Administration of Certified Lenders and Preferred Certified Lenders
programs.
Sec. 504. Simplified loan guarantee application available for loans of greater
amounts.
Sec. 505. Elimination of requirement that Secretary require county committees to
certify in writing that certain loan reviews have been conducted.
Sec. 506. Authority to reduce percentage of loan guaranteed if borrower income
is insufficient to service debt.
Sec. 507. Timing of loan assessments.
Sec. 508. Making and servicing of loans by personnel of State, county, or area
committees.
Sec. 509. Eligibility of employees of State, county, or area committee for loans
and loan guarantees.
Sec. 510. Emergency loans in response to an economic emergency resulting from
quarantines and sharply increasing energy costs.
Sec. 511. Extension of authority to contract for servicing of farmer program
loans.
Sec. 512. Authorization for loans.
Sec. 513. Reservation of funds for direct operating loans for beginning farmers
and ranchers.
Sec. 514. Extension of interest rate reduction program.
Sec. 515. Increase in duration of loans under down payment loan program.
Sec. 516. Horse breeder loans.
Sec. 517. Sunset of direct loan programs under the Consolidated Farm and Rural
Development Act.
Sec. 518. Definition of debt forgiveness.
Sec. 519. Loan eligibility for borrowers with prior debt forgiveness.
Sec. 520. Allocation of certain funds for socially disadvantaged farmers and
ranchers.
Sec. 521. Horses considered to be livestock under the Consolidated Farm and
Rural Development Act.
TITLE VI—RURAL DEVELOPMENT
Sec. 601. Funding for rural local television broadcast signal loan guarantees.
Sec. 602. Expanded eligibility for value-added agricultural product market devel-
opment grants.
Sec. 603. Agriculture innovation center demonstration program.
Sec. 604. Funding of community water assistance grant program.
Sec. 605. Loan guarantees for the financing of the purchase of renewable energy
systems.
Sec. 606. Loans and loan guarantees for renewable energy systems.
Sec. 607. Rural business opportunity grants.
Sec. 608. Grants for water systems for rural and native villages in Alaska.
Sec. 609. Rural cooperative development grants.
Sec. 610. National reserve account of Rural Development Trust Fund.
Sec. 611. Rural venture capital demonstration program.
Sec. 612. Increase in limit on certain loans for rural development.
Sec. 613. Pilot program for development and implementation of strategic regional
development plans.
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.
Sec. 616. Eligibility of rural empowerment zones, rural enterprise communities,
and champion communities for direct and guaranteed loans for
essential community facilities.
Sec. 617. Grants to train farm workers in new technologies and to train farm
workers in specialized skills necessary for higher value crops.
Sec. 618. Loan guarantees for the purchase of stock in a farmer cooperative seek-
ing to modernize or expand.
Sec. 619. Intangible assets and subordinated unsecured debt required to be consid-
ered in determining eligibility of farmer-owned cooperative for
business and industry guaranteed loan.
Sec. 620. Ban on limiting eligibility of farmer cooperative for business and in-
dustry loan guarantee based on population of area in which co-
operative is located.
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 program.
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 education
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 Economics
Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols and indus-
trial 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 Research
Initiative.
Sec. 739. Federal agricultural research facilities authorization of appropriations.
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 territories.
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 In-
formation 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 facilities.
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.
Subtitle B—Advisory Council and Federal Interagency Working
Group on Upper Mississippi River
Sec. 911. Definitions.
Sec. 912. Establishment of Advisory Council on the Upper Mississippi River
Stewardship Initiative.
Sec. 913. Responsibilities of Advisory Council.
Sec. 914. Advisory nature of council.
Sec. 915. Federal Interagency Working Group
Sec. 916. Authorization of appropriations.
Subtitle C—Other Matters
Sec. 921. Hazardous fuel reduction grants to prevent wildfire disasters and trans-
form hazardous fuels to electric energy, useful heat, or transpor-
tation fuels.
Sec. 922. Bioenergy program.
Sec. 923. Availability of section 32 funds.
Sec. 924. Seniors farmers’ market nutrition program.
Sec. 925. Federal marketing order for cane berries.
Sec. 926. National Appeals Division.
Sec. 927. Outreach and assistance for socially disadvantaged farmers and ranch-
ers.
TITLE I—COMMODITY
PROGRAMS
SEC. 100. DEFINITIONS.
In this title (other than chapter 3 of subtitle C):
(1) AGRICULTURAL ACT OF 1949.—The term ‘‘Ag-
ricultural 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 Agri-
culture 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 re-
spect 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 oil-
seeds.
(5) EFFECTIVE
PRICE.—The term ‘‘effective
price’’, with respect to a covered commodity for a
crop year, means the price calculated by the Secretary
under section 105 to determine whether counter-cycli-
cal 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 oilseed’’
means a crop of sunflower seed, rapeseed, canola, saf-
flower, flaxseed, mustard seed, or, if designated by the
Secretary, another oilseed.
(9) PAYMENT
ACRES.—The term ‘‘payment
acres’’ means 85 percent of the base acres of a covered
commodity on a farm, as established under section
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 sharecropper
who shares in the risk of producing a crop and who
is entitled to share in the crop available for mar-
keting 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 re-
ceive 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 oilseeds)
of a covered commodity used to determine the pay-
ment 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 Pay-
ments
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 payments 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).
(b) TENANTS AND SHARECROPPERS.—In carrying out
this title, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
(c) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of fixed, decoupled payments and
counter-cyclical payments among the eligible producers on
a farm on a fair and equitable basis.
SEC. 102. ESTABLISHMENT OF PAYMENT YIELD.
(a) ESTABLISHMENT AND PURPOSE.—For the purpose
of making fixed decoupled payments and counter-cyclical
payments under this subtitle, the Secretary shall provide
for the establishment of a payment yield for each farm for
each covered commodity in accordance with this section.
(b) USE OF FARM PROGRAM PAYMENT YIELD.—Ex-
cept as otherwise provided in this section, the payment yield
for each of the 2002 through 2011 crops of a covered com-
modity for a farm shall be the farm program payment yield
in effect for the 2002 crop of the covered commodity under
section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465).
(c) FARMS
WITHOUT
FARM
PROGRAM
PAYMENT
YIELD.—In the case of a farm for which a farm program
payment yield is unavailable for a covered commodity
(other than soybeans or other oilseeds), the Secretary shall
establish an appropriate payment yield for the covered com-
modity on the farm taking in consideration the farm pro-
gram payment yields applicable to the commodity under
subsection (b) for similar farms in the area.
(d) PAYMENT YIELDS FOR OILSEEDS.—
(1) AVERAGE YIELD.—In the case of soybeans
and each other oilseed, the Secretary shall establish a
payment yield for a farm for the oilseed by first de-
termining the average yield for the oilseed on the
farm for the 1998 through 2001 crop years, excluding
any crop year in which the acreage planted to the oil-
seed was zero. If, for any of these four crop years in
which the oilseed was planted, the farm would have
satisfied the eligibility criteria established to carry
out section 1102 of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999 (Public Law 105–
277; 7 U.S.C. 1421 note), the Secretary shall assign
a yield for that year equal to 65 percent of the county
yield.
(2) REDUCTION.—The Secretary shall reduce the
average yield determined under paragraph (1) for the
oilseed by a percentage equal to the percentage in-
crease in national average yields for the oilseed be-
tween the following two periods:
(A) The 1981 through 1985 crops.
(B) The 1998 through 2001 crops.
SEC. 103. ESTABLISHMENT OF BASE ACRES AND PAYMENT
ACRES FOR A FARM.
(a) ELECTION BY PRODUCERS OF BASE ACRE CAL-
CULATION METHOD.—For the purpose of making fixed de-
coupled payments and counter-cyclical payments with re-
spect to a farm, the Secretary shall give producers on the
farm an opportunity to elect one of the following as the
method by which the base acres of all covered commodities
on the farm are to be determined:
(1) The four-year average of acreage actually
planted on the farm to a covered commodity for har-
vest, grazing, haying, silage, or other similar purposes
during crop years 1998, 1999, 2000, and 2001 and
any acreage on the farm that the producers were pre-
vented from planting during such crop years to the
covered commodity because of drought, flood, or other
natural disaster, or other condition beyond the control
of the producer, as determined by the Secretary.
(2) The contract acreage (as defined in section
102 of the Federal Agriculture Improvement and Re-
form Act of 1996 (7 U.S.C. 7202)) used by the Sec-
retary to calculate the fiscal year 2002 payment that,
subject to section 109, would be made under section
114 of such Act (7 U.S.C. 7214) for the covered com-
modity on the farm.
(b) SINGLE ELECTION; TIME FOR ELECTION.—The op-
portunity 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 sub-
section (a), or fail to timely notify the Secretary of the se-
lected option as required by subsection (b), the producers
shall be deemed to have made the election described in sub-
section (a)(2) to determine base acres for all covered com-
modities 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 described in sub-
section (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 subsection
(a)(2), the Secretary shall provide for an adjustment
in the base acres for the farm whenever either of the
following circumstances occur:
(A) A conservation reserve contract entered
into under section 1231 of the Food Security 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 Sec-
retary.
(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 subsection
or a prorated payment under the conservation reserve
contract, but not both.
(f) PAYMENT 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 cropland
acreage of the farm, the Secretary shall reduce the
quantity of base acres for one or more covered com-
modities for the farm or peanut acres for the farm as
necessary so that the sum of the base acres and acre-
age described in paragraph (2) does not exceed the ac-
tual cropland acreage of the farm. The Secretary shall
give the producers on the farm the opportunity to se-
lect the base acres or peanut acres against which the
reduction will be made.
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following:
(A) Any peanut acres 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 agri-
cultural 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 commod-
ities 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.
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 pro-
ducer before the date the fixed, decoupled payment
would otherwise have been made by the Secretary
under paragraph (1), the producer shall be respon-
sible for repaying the Secretary the full amount of the
advance payment.
SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) PAYMENT REQUIRED.—The Secretary shall make
counter-cyclical payments with respect to a covered com-
modity whenever the Secretary determines that the effective
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 mak-
ing 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 com-
modity 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 commodity
on the farm.
(3) The payment yield for the covered commodity
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 per-
mit, and, if so permitted, an eligible producer may
elect to receive, up to 50 percent of the projected
counter-cyclical payment, as determined by the Sec-
retary, 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 pro-
ducer 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 mar-
keting year.
(g) SPECIAL RULE FOR CURRENTLY UNDESIGNATED
OILSEED.—If the Secretary uses the authority under section
100(8) to designate another oilseed as an oilseed for which
counter-cyclical payments may be made, the Secretary may
modify the target price specified in subsection (c)(9) that
would otherwise apply to that oilseed as the Secretary con-
siders 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 para-
graph (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 control, of the
farm. On the resumption of operation or control 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 para-
graph (4), a transfer of (or change in) the interest of
a producer in base acres for which fixed, decoupled
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 obligations
under subsection (a). The termination shall be effec-
tive on the date of the transfer or change.
(2) TRANSFER OF PAYMENT BASE.—There is no
restriction on the transfer of a farm’s base acres or
payment yield as part of a change in the producers
on the farm.
(3) MODIFICATION.—At the request of the trans-
feree or owner, the Secretary may modify the require-
ments of subsection (a) if the modifications are con-
sistent with the objectives of such subsection, as deter-
mined by the Secretary.
(4) EXCEPTION.—If a producer entitled to a
fixed, decoupled payment or counter-cyclical payment
dies, becomes incompetent, or is otherwise unable to
receive the payment, the Secretary shall make the
payment, in accordance with regulations prescribed
by the Secretary.
(d) ACREAGE REPORTS.—
(1) IN GENERAL.—As a condition on the receipt
of any benefits under this subtitle or subtitle B, the
Secretary shall require producers to submit to the
Secretary acreage reports.
(2) CONFORMING AMENDMENT.—Section 15 of
the Agricultural Marketing Act (12 U.S.C. 1141j) is
amended by striking subsection (d).
(e) REVIEW.—A determination of the Secretary under
this section shall be considered to be an adverse 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 determines
has a history of planting fruits or vegetables 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 planting
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 flexi-
bility 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 payments.
A producer eligible to receive a fixed, decoupled payment
or counter-cyclical payment satisfies the requirements 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 non-
recourse marketing assistance loans for covered com-
modities 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 commodity.
(2) INCLUSION
OF
EXTRA
LONG
STAPLE
COT-
TON.—In this subtitle, the term ‘‘covered commodity’’
includes extra long staple cotton.
(b) ELIGIBLE PRODUCTION.—Any production of a cov-
ered commodity on a farm shall be eligible for a marketing
assistance loan under subsection (a).
(c) TREATMENT OF CERTAIN COMMINGLED COMMOD-
ITIES.—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 cov-
ered commodities of other producers in facilities unlicensed
for the storage of agricultural commodities by the Secretary
or a State licensing authority, if the producer obtaining
the loan agrees to immediately redeem the loan collateral
in accordance with section 166 of the Federal 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 wetland
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 COTTON.—
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.
(f) 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 sub-
title 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 pe-
riod; 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 ex-
ceed 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 cor-
responding 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 covered
commodity, excluding the year in which the av-
erage price was the highest and the year in
which the average price was the lowest in the pe-
riod; 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 cov-
ered 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 Secretary
determines is fair and reasonable in relation 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 determined
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 (weight-
ed 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 av-
erage difference during the period April 15
through October 15 of the year preceding the
year in which the crop is planted between the av-
erage 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 average
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 pre-
ceding the year in which the crop is planted, exclud-
ing the year in which the average price was the high-
est 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 hundred-
weight.
(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 mar-
keting 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 mar-
keting assistance loan under section 121 for other oil-
seeds 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 high-
est 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 com-
modity (other than upland cotton or extra long staple cot-
ton), 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 assist-
ance 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 competi-
tively, 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 cot-
ton 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 lo-
cation), 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 established
for the commodity under section 122, plus interest (as deter-
mined 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 fur-
ther 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 aver-
age price of the 5 lowest-priced growths of up-
land cotton, as quoted for Middling (M) 13⁄32-
inch cotton, delivered C.I.F. Northern Europe
(referred to in this section as the ‘‘Northern Eu-
rope price’’).
(2) FURTHER ADJUSTMENT.—Except as provided
in paragraph (3), the adjusted prevailing world mar-
ket price for upland cotton shall be further adjusted
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 Secretary
to be relevant in establishing an accurate pre-
vailing world market price for upland cotton
(adjusted to United States quality and location).
(3) LIMITATION
ON
FURTHER
ADJUSTMENT.—
The adjustment under paragraph (2) may not exceed
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 delivered
C.I.F. Northern Europe; and
(B) the Northern Europe price.
SEC. 125. LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.—
Except as provided in subsection (d), the Secretary may
make loan deficiency payments available to producers who,
although eligible to obtain a marketing assistance loan
under section 121 with respect to a covered commodity,
agree to forgo obtaining the loan for the commodity in re-
turn 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 sub-
section (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 COTTON.—
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 commodity, as
determined by the Secretary.
(2) The date the producer requests the payment.
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 grazing
of livestock, the Secretary shall make a payment to the pro-
ducer under this section if the producer enters into an
agreement with the Secretary to forgo any other harvesting
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 com-
modity on the farm.
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.—
(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 establish
an availability period for the payment authorized by
this section that is consistent with the availability pe-
riod for wheat, barley, and oats established by the
Secretary for marketing assistance loans authorized
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 producer
elects, in the agreement required by subsection (a), to use
for the grazing of livestock in lieu of any other harvesting
of the crop shall not be eligible for insurance under the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et seq.) or non-
insured crop assistance under section 196 of the Federal Ag-
riculture 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 certifi-
cates or cash payments, at the option of the recipient,
to domestic users and exporters for documented pur-
chases by domestic users and sales for export by ex-
porters 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 Europe ex-
ceeds 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 quality
and location) does not exceed 134 percent of the
loan rate for upland cotton established under sec-
tion 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 period
multiplied by the quantity of upland cotton included
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 certificates
for agricultural commodities owned by the Com-
modity 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 effectuate
the purposes of cotton user marketing certificates,
including enhancing the competitiveness and
marketability of United States cotton. Any price
restrictions that would otherwise apply to the
disposition of agricultural commodities by the
Commodity Credit Corporation shall not apply
to the redemption of certificates under this sub-
section.
(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 upland
cotton may be transferred to other persons in ac-
cordance with regulations issued by the Sec-
retary.
(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 provided
in this subsection.
(B) PROGRAM REQUIREMENTS.—Except as
provided in subparagraph (C), whenever the Sec-
retary 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 Mid-
dling (M) 13⁄32-inch cotton, delivered 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 immediately be in
effect a special import quota.
(C) TIGHT DOMESTIC SUPPLY.—During any
month for which the Secretary estimates the sea-
son-ending United States upland cotton stocks-
to-use ratio, as determined under subparagraph
(D), to be below 16 percent, the Secretary, in
making the determination under subparagraph
(B), shall not adjust the Friday through Thurs-
day 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, 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 domestic
mills at the seasonally adjusted average rate of the
most recent three months for which data are avail-
able.
(3) APPLICATION.—The quota shall apply to up-
land cotton purchased not later than 90 days after the
date of the Secretary’s announcement under para-
graph (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 entered
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 domestic 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 av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot
markets for a month exceeded 130 percent of the aver-
age price of such quality of cotton in the markets for
the preceding 36 months, notwithstanding 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 subsection 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 con-
sumption calculated under subparagraph (A) or
the quantity required to increase the supply to
130 percent of the demand.
(C) PREFERENTIAL TARIFF TREATMENT.—
The quantity under a limited global import
quota shall be considered to be an in-quota quan-
tity 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 cotton
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 adjusted
annual rate of domestic mill consump-
tion during the most recent three
months for which data are available;
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, cotton may
be entered under the quota during the 90-day pe-
riod beginning on the date the quota is estab-
lished 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 main-
tain 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 produced 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 factors 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 cot-
ton; 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 Sec-
retary, 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 section
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 con-
secutive four-week period.
(e) FORM OF PAYMENT.—Payments under this section
shall be made through the issuance of cash or marketing
certificates, at the option of eligible recipients of the pay-
ments.
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 reasonable
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 sub-
section was in fact harvested on the farm and de-
livered 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 de-
termined 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 payment
yield or the actual yield on a field, as deter-
mined 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 mar-
keting assistance loans made by the Secretary 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 estab-
lished 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 section.
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 sub-
section (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 competi-
tively, 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 produced
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 commodity
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 pay-
ment.
(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 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 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 mar-
keting assistance loans for honey produced on the farm dur-
ing that crop year.
(b) LOAN RATE.—The loan rate for a marketing assist-
ance 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 marketing
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 producer
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 earlier
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 pay-
ment.
(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 effi-
ciency 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 Corporation
or achieve such other objectives as the Secretary con-
siders appropriate. Not later than 10 days after mak-
ing or changing an allocation, the Secretary shall no-
tify the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate of the alloca-
tion. Section 553 of title 5, United States Code, shall
not apply with respect to the implementation 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 in-
serting ‘‘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 amendments
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 amendments
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 in-
serting ‘‘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 paragraphs
(7) through (10), respectively, and indenting the
paragraphs appropriately;
(3) in paragraph (2) (as so designated), by strik-
ing ‘‘Members’’ and inserting ‘‘Except as provided 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 rep-
resent importers of dairy products and are sub-
ject to assessments under the order, to reflect the
proportion of domestic production and imports
supplying the United States market, which shall
be based on the Secretary’s determination of the
average volume of domestic production 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 provide
that each importer of imported dairy products
shall pay an assessment to the Board in the
manner prescribed by the order.
‘‘(B) TIME FOR PAYMENT.—The assessment
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 oc-
curred when the products are released from cus-
tody of Customs and introduced into the stream
of commerce within the United States. Importers
include persons who hold title to foreign-pro-
duced dairy products immediately upon release
by Customs, as well as persons who act on behalf
of others, as agents, brokers, or consignees, to se-
cure the release of dairy products from Customs
and the introduction of the released dairy prod-
ucts into the stream of commerce.
‘‘(C) RATE.—The rate of assessment on im-
ported dairy products shall be determined in the
same manner as the rate of assessment per hun-
dredweight 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 amend-
ed in the first sentence by striking ‘‘person receiving’’ and
inserting ‘‘importer of imported dairy products, each per-
son 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 fol-
lowing: ‘‘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 rep-
resentative period, as determined by the Secretary).’’.
(f) CONFORMING AMENDMENTS TO REFLECT ADDI-
TION OF IMPORTERS.—Section 110(b) of the Dairy Produc-
tion 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 products’’;
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 Re-
form 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.—Ef-
fective as of October 1, 2001, subsection (f) of such section
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 paragraph:
‘‘(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 do-
mestically 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 accept-
able grade and quality for sugars eligible for loans
under subsection (a) or (b). Once the in-process sug-
ars and syrups are fully processed into raw cane
sugar or refined beet sugar, the processor shall trans-
fer 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 paragraph (1).
‘‘(3) LOAN CONVERSION.—If the processor does
not forfeit the collateral as described in paragraph
(2), but instead further processes the in-process sugars
and syrups into raw cane sugar or refined beet sugar
and repays the loan on the in-process sugars and syr-
ups, the processor may then obtain a loan under sub-
section (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 program
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 appro-
priate terms and conditions, to) processors of sugar-
cane and processors of sugar beets (when the proc-
essors are acting in conjunction with the producers of
the sugarcane or sugar beets processed by such proc-
essors) in return for the reduction of production of
raw cane sugar or refined beet sugar, as appropriate.
The authority provided under this paragraph is in
addition to any authority of the Corporation 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 sugarcane
located in a State (other than Puerto Rico) in
which there are in excess of 250 sugarcane pro-
ducers to report, in the manner prescribed by the
Secretary, the producer’s sugarcane 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 man-
ner prescribed by the Secretary, each producer’s
sugarcane or sugar beet yields and acres planted
to sugarcane or sugar beets, respectively.
‘‘(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 equiva-
lent 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 Agri-
culture Improvement and Reform Act of 1996 (7 U.S.C.
7283) is amended by adding at the end the following new
sentence: ‘‘For purposes of this section, raw cane sugar, re-
fined beet sugar, and in process sugar eligible 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 Ad-
justment Act of 1938 (7 U.S.C. 1359bb) is amended:
(1) in the section heading—
(A) by inserting ‘‘FLEXIBLE’’ before ‘‘MAR-
KETING’’; 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 sug-
ars, syrups, and molasses’’;
(II) by inserting ‘‘human’’ after
‘‘imported for’’;
(III) by inserting after ‘‘consump-
tion’’ the following: ‘‘or to be used for
the extraction of sugar for human con-
sumption’’;
(IV) by striking ‘‘year’’ and in-
serting ‘‘year, whether such articles are
under a tariff-rate quota or are in ex-
cess 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 fol-
lowing new paragraph:
‘‘(2) EXCLUSION.—The estimates in this section
shall not include sugar imported for the production of
polyhydric alcohol or to be refined and re-exported in
refined form or in sugar containing products.’’;
(D) in paragraph (3), as so redesignated—
(i) by striking ‘‘QUARTERLY REESTI-
MATES’’ and inserting ‘‘REESTIMATES’’; and
(ii) by inserting ‘‘as necessary, but’’
after ‘‘a fiscal year’’;
(3) in subsection (b)—
(A) by striking paragraph (1) and inserting
the following new paragraph:
‘‘(1) IN GENERAL.—By the beginning of each fis-
cal year, the Secretary shall establish for that fiscal
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 Cor-
poration 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 subsection
(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 over-
all allotment quantity for the fiscal year by the per-
centage 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 over-
all allotment quantity for the fiscal year by the per-
centage of 45.65.’’;
(5) by amending subsection (d) to read as fol-
lows:
‘‘(d) FILLING CANE SUGAR AND BEET SUGAR ALLOT-
MENTS.—Each marketing allotment for cane sugar estab-
lished under this section may only be filled with sugar proc-
essed from domestically grown sugarcane, and each mar-
keting allotment for beet sugar established under this section
may only be filled with sugar domestically processed from
sugar beets.’’;
(6) by striking subsection (e);
(7) by redesignating subsection (f) as subsection
(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 proc-
essors and growers, and on such notice as
the Secretary by regulation may prescribe,’’;
(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 fol-
lowing 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 offshore
State allotment provided for under subparagraph
(A) shall be further allotted among the offshore
States in which sugarcane is produced, after a
hearing if requested by the affected 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 produc-
tion of raw cane sugar from the 1996
through 2000 crops;
‘‘(ii) the ability of processors to market
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 pro-
vided 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 regu-
lation may prescribe, in a fair and equitable manner
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 greatest
processings (in the mainland States collectively)
during the 1991 through 2000 crop years.’’;
(9) by inserting after subsection (e), as so redes-
ignated, the following new subsection (f):
‘‘(f) FILLING CANE SUGAR ALLOTMENTS.—Except as
otherwise provided in section 359e, a State cane sugar allot-
ment 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 subparagraph
(C) and inserting ‘‘359b(a)(3), adjust upward 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 al-
lotment’’ and inserting ‘‘156 of the Agricul-
tural 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 ex-
traction of sugar for human consumption, whether under
a tariff-rate quota or in excess or outside of a tariff-rate
quota, will exceed 1.532 million short tons, raw value equiv-
alent, 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.—’’ before
‘‘The Secretary shall’’ and indenting such clause
appropriately;
(B) in clause (i), as so designated—
(i) by striking ‘‘interested parties’’ and
inserting ‘‘the affected sugar cane processors
and growers’’;
(ii) by striking ‘‘by taking’’ through
‘‘allotment allocated.’’ and inserting ‘‘with
this subparagraph.’’; and
(iii) by inserting at the end the fol-
lowing new sentence: ‘‘Each such allocation
shall be subject to adjustment under section
359c(g).’’;
(C) by inserting after clause (i) the fol-
lowing new clause:
‘‘(ii) MULTIPLE PROCESSOR STATES.—
Except as provided in clause (iii), the Sec-
retary shall allocate the allotment 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 op-
erations of the Talisman processing fa-
cility, shall be allocated among proc-
essors in the State coincident with the
provisions of the agreements 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 highest
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 sugar-
cane 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, effi-
cient and equitable distribution of the allo-
cations from the allotment for the State in
which the processor is located and, in the
case of proportionate share States, shall es-
tablish proportionate shares in an amount
sufficient to produce the sugarcane required
to satisfy such allocations. However, the al-
lotment for a new processor under this
clause shall not exceed 50,000 short tons,
raw value.
‘‘(v) TRANSFER OF OWNERSHIP.—Ex-
cept as otherwise provided in section
359f(c)(8), in the event that a sugarcane
processor is sold or otherwise transferred to
another owner, or closed as part of an affili-
ated corporate group processing consolida-
tion, the Secretary shall transfer the allot-
ment 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 consulta-
tion with the affected sugar beet processors 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 distribution 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 ‘‘reas-
sign the remainder to imports.’’ and inserting
‘‘use the estimated quantity of the deficit for the
sale of any inventories of sugar held by the Com-
modity 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 Agri-
cultural 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 subsection
(c);
(3) by inserting after subsection (a) the following
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 an-
other 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 desire
to deliver their sugar beets, and which the processing
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)(A), by striking ‘‘each’’
through ‘‘in effect’’ and inserting ‘‘the two high-
est of the three (3) crop years 1999, 2000, and
2001’’; and
(C) by inserting after paragraph (7) the fol-
lowing 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 processing
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 alloca-
tion 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 unaffected;
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 Adjust-
ment 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 consecutive’’
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—
(A) by amending the subsection heading to read
as follows: ‘‘DEFINITIONS.—’’;
(B) by striking ‘‘Notwithstanding’’ and inserting
the following:
‘‘(1) UNITED
STATES
AND
STATE.—Notwith-
standing’’; and
(C) by inserting after such paragraph (1) the fol-
lowing 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 Com-
modity 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 processors
of domestically-produced sugarcane and sugar beets to build
or upgrade storage and handling facilities for raw sugars
and refined sugars.
100
(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.
(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 pay-
ment, security requirements, and eligible equipment) as are
normal, customary, and appropriate for the size and com-
mercial nature of the borrower.
(d) ADMINISTRATION.—The sugar storage facility loan
program shall be administered using the services, facilities,
funds, and authorities of the Commodity Credit Corpora-
tion.
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
101
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
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 established
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 sharecropper
102
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.
(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 determine
the payment rate for counter-cyclical payments.
(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 producers
under this chapter, the Secretary shall provide for the
establishment of a payment yield for each peanut
farm in accordance with this subsection.
103
(2) AVERAGE YIELD.—The Secretary shall estab-
lish a payment yield for peanuts on a farm by first
determining the average yield for peanuts on the farm
for the 1998 through 2001 crop years, excluding any
crop year in which the acreage planted to peanuts
was zero. If, for any of these four crop years in which
peanuts were planted, the farm would have satisfied
the eligibility criteria established to carry out section
1102 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Ap-
propriations 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) PEANUT 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 con-
trol of the producer, as determined by the Secretary.
(c) PAYMENT ACRES.—The payment acres for peanuts
on a farm shall be equal to 85 percent of the peanut acres
for the farm.
104
(d) PREVENTION OF EXCESS PAYMENT ACRES.—
(1) REQUIRED REDUCTION.—If the sum of the
peanut acres for a farm, together with the acreage de-
scribed in paragraph (2), exceeds the actual cropland
acreage of the farm, the Secretary shall reduce the
quantity of peanut acres for the farm or base acres
for one or more covered commodities for the farm as
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. The Sec-
retary shall give the producers on the farm the oppor-
tunity to select the peanut acres or base acres against
which the reduction will be made.
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following:
(A) Any base acres for the farm under sub-
title 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
105
are made in exchange for not producing an agri-
cultural commodity on the acreage.
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, de-
coupled payment to be paid to the eligible peanut 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 on the farm.
(3) The payment yield for the farm.
(d) TIME FOR PAYMENT.—
(1) GENERAL RULE.—Fixed, decoupled payments
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 el-
igible peanut producer, 50 percent of the fixed, decou-
106
pled payment for a fiscal year shall be paid on a date
selected 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 pea-
nut 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 re-
sponsible 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 whenever
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 payments.
(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 producers
on a farm 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 on the farm.
(3) The payment yield for the farm.
(f) TIME FOR PAYMENTS.—
108
(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 required
for that crop year.
(2) PARTIAL PAYMENT.—The Secretary may per-
mit, and, if so permitted, an eligible peanut producer
may elect to receive, up to 50 percent of the projected
counter-cyclical payment, as determined by the Sec-
retary, 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-cycli-
cal 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
counter-cyclical payments with respect to the farm,
the producers shall agree, in exchange for the
payments—
109
(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 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 para-
graph (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
110
producer continues or resumes operation, or control, of the
farm. On the resumption of operation or control 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 para-
graph (4), a transfer of (or change in) the interest of
a producer in peanut acres for which fixed, decoupled
payments or counter-cyclical payments are made
shall result in the termination of the payments with
respect to the peanut acres, unless the transferee or
owner of the acreage agrees to assume all obligations
under subsection (a). The termination shall be effec-
tive 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 trans-
feree or owner, the Secretary may modify the require-
ments of subsection (a) if the modifications are con-
sistent with the objectives of such subsection, as deter-
mined by the Secretary.
(4) EXCEPTION.—If a producer entitled to a
fixed, decoupled payment or counter-cyclical payment
111
dies, becomes incompetent, or is otherwise unable 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 receipt
of any benefits under this chapter, the Secretary shall re-
quire producers to submit to the Secretary acreage reports.
(e) TENANTS AND SHARECROPPERS.—In carrying out
this chapter, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and sharecroppers.
(f) SHARING OF PAYMENTS.—The Secretary shall pro-
vide 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.
(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 peanut acres.
(2) EXCEPTIONS.—Paragraph (1) shall not limit
the planting of a fruit or vegetable—
112
(A) in any region in which there is a his-
tory of double-cropping of peanuts with fruits or
vegetables, as determined by the Secretary, in
which case the double-cropping shall be per-
mitted;
(B) on a farm that the Secretary determines
has a history of planting fruits or vegetables on
peanut acres, except that fixed, decoupled pay-
ments and counter-cyclical payments shall be re-
duced 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 planting
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.
113
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 avail-
able 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 COM-
MODITIES.—In carrying out this subsection, the Sec-
retary shall make loans to a producer that is other-
wise eligible to obtain a marketing assistance loan,
but for the fact the peanuts owned by the producer 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 immediately re-
deem the loan collateral in accordance with section
166 of the Federal Agriculture Improvement and Re-
form Act of 1996 (7 U.S.C. 7286).
114
(4) OPTIONS
FOR
OBTAINING
LOAN.—A mar-
keting assistance loan under this subsection, and loan
deficiency payments under subsection (e), may be ob-
tained 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 benefits,
the entity shall agree to provide adequate storage (if
available) and handling of peanuts at the commercial
rate to other approved loan servicing agents and mar-
keting associations.
(b) LOAN RATE.—The loan rate for a marketing assist-
ance 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
115
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 peanuts
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
(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
116
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 quantity for
which the producers obtain a loan under sub-
section (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
(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 earlier
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.
117
(B) The date the producer requests the pay-
ment.
(f) COMPLIANCE WITH CONSERVATION AND WETLANDS
REQUIREMENTS.—As a condition of the receipt of a mar-
keting assistance loan under subsection (a), the producer
shall 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.) and applicable wetland pro-
tection 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 manner that
is consistent with such activities in regard to other commod-
ities.
(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—
118
(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 COM-
MITTEE.—The Peanut Administrative Committee estab-
lished under Marketing Agreement No. 1436, which regu-
lates the quality of domestically produced peanuts under
the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), re-
enacted with amendments by the Agricultural Marketing
Agreement Act of 1937, is terminated.
(c) 
ESTABLISHMENT
OF
PEANUT
STANDARDS
BOARD.—The Secretary shall establish a Peanut Standards
Board for the purpose of assisting in the establishment of
quality standards with respect to peanuts. The authority
of the Board is limited to assisting in the establishment of
119
quality standards for peanuts. The members of the Board
should fairly reflect all segments of the peanut 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.
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 sub-
title B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1357–1359a), relating to peanuts, is re-
pealed.
(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
120
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 payment
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) 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 subsection.
121
(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 es-
tablished 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 establishment
authority was repealed.
The Secretary shall apply this definition without regard to
temporary leases or transfers or quotas for seed or experi-
mental purposes.
Subtitle D—Administration
SEC. 181. ADMINISTRATION GENERALLY.
(a) USE OF COMMODITY CREDIT CORPORATION.—The
Secretary shall carry out this title through the Commodity
Credit Corporation.
(b) DETERMINATIONS BY SECRETARY.—A determina-
tion made by the Secretary under this title shall be final
and conclusive.
122
(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 section
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
(3) chapter 35 of title 44, United States Code
(commonly know as the ‘‘Paperwork Reduction Act’’).
(d) PROTECTION OF PRODUCERS.—The protection af-
forded producers that elect the option to accelerate the re-
ceipt 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 payments
and counter-cyclical payments.
SEC. 182. EXTENSION OF SUSPENSION OF PERMANENT
PRICE SUPPORT AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—Sec-
tion 171(a)(1) of the Federal Agriculture Improvement and
123
Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is amended 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 and
Reform Act of 1996 (7 U.S.C. 7301(c)) is amended by strik-
ing ‘‘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 PRODUC-
TION
FLEXIBILITY
CONTRACTS’’ and inserting
‘‘FIXED, DECOUPLED PAYMENTS’’;
(B) by striking ‘‘contract payments made
under the Agricultural Market Transition Act to
a person under 1 or more production flexibility
contracts’’ and inserting ‘‘fixed, decoupled pay-
ments made to a person’’;
(C) by striking ‘‘4’’ and inserting ‘‘5’’;
124
(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 ‘‘75’’ and inserting ‘‘150’’;
and
(C) by striking the period at the end of
paragraph (2) and all that follows through ‘‘the
following’’ in paragraph (3);
(D) by striking ‘‘section 131’’ and all that
follows through ‘‘section 132’’ and inserting ‘‘sec-
tion 121 of the Farm Security 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
(E) by striking ‘‘section 135’’ and inserting
‘‘section 125’’; and
(3) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3) LIMITATION
ON
COUNTER-CYCLICAL
PAY-
MENTS.—The total amount of counter-cyclical pay-
ments that a person may receive during any crop
year shall not exceed the amount specified in para-
125
graph (2), as in effect on the day before the date of
the enactment of the Farm Security Act of 2001.’’.
(b) DEFINITIONS.—Paragraph (4) of section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308) is amended
to read as follows:
‘‘(4) DEFINITIONS.—In this title, the terms ‘cov-
ered commodity’, ‘counter-cyclical payment’, and
‘fixed, decoupled payment’ have the meaning given
those terms in section 100 of the Farm Security 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
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 Improvement
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 Farm Security 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
126
striking ‘‘this title’’ both places it appears and inserting
‘‘this title and title I of the Farm Security 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 Farm Security
Act of 2001’’.
SEC. 187. ASSIGNMENT OF PAYMENTS.
The provisions of section 8(g) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(g)), relating
to assignment of payments, shall apply to payments made
under the authority of this Act. The producer 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 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 ‘agricul-
tural commodity’ means any agricultural crop planted or
produced in a State.’’.
127
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’’.
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 Security
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 strik-
ing ‘‘chapter’’ each place it appears and inserting
‘‘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.
128
Subtitle D—Conservation Reserve
Program
SEC. 231. REAUTHORIZATION.
(a) IN GENERAL.—Section 1231 of the Food Security
Act of 1985 (16 U.S.C. 3831) is amended in each of sub-
sections (a), (b)(3), and (d), by striking ‘‘2002’’ and insert-
ing ‘‘2011’’.
(b) SCOPE OF PROGRAM.—Section 1231(a) of such Act
(16 U.S.C. 3831(a)) is amended by striking ‘‘and water’’
and inserting ‘‘, water, and wildlife’’.
SEC. 232. ENROLLMENT.
(a) ELIGIBILITY.—Section 1231(b) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831(b)) is amended—
(1) by striking paragraphs (2) and (3) and in-
serting the following:
‘‘(2) marginal pasturelands to be devoted to nat-
ural vegetation in or near riparian areas or for simi-
lar 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-
129
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 sub-
paragraph (D) and inserting ‘‘; or’’; and
(D) by adding at the end the following:
‘‘(E) if the Secretary determines that enroll-
ment of such lands would contribute to conserva-
tion 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 ‘‘39,200,000’’.
(c) ELIGIBILITY ON CONTRACT EXPIRATION.—Section
1231(f) of such Act (16 U.S.C. 3831(f)) is amended to read
as follows:
130
‘‘(f) ELIGIBILITY ON CONTRACT EXPIRATION.—On the
expiration of a contract entered into under this subchapter,
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 fol-
lowing:
‘‘(i) BALANCE AMONG CONTRACTS AWARDED.—In de-
termining the acceptability of contract offers under this sub-
chapter, the Secretary shall balance conservation interests
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-
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 subsection.
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’’;
131
(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 con-
servation reserve 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
‘‘(C) land subject to the contract to be har-
vested for recovery of biomass used in energy
production, in which case the Secretary shall re-
duce the conservation reserve payment otherwise
payable under the contract by an amount com-
mensurate with the economic value of such activ-
ity;’’; and
(2) by striking subsections (c) and (d) and redes-
ignating subsection (e) as subsection (c).
132
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)—
(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 Secretary
shall restore the base, contract acreage, quota, or allotment
133
history applicable to the land when the contract was entered
into.’’.
(b) CONSERVATION RESERVE PAYMENT.—Subchapter
B of chapter 1 of subtitle D of title XII of such Act (16
U.S.C. 3831–3836) is amended by striking ‘‘rental pay-
ment’’ each place it appears and inserting ‘‘conservation
reserve payment’’.
Subtitle E—Wetlands Reserve
Program
SEC. 241. ENROLLMENT.
(a) MAXIMUM.—Section 1237(b) of the Food Security
Act of 1985 (16 U.S.C. 3837(b)) is amended by striking
paragraph (1) and inserting the following:
‘‘(1) ANNUAL ENROLLMENT.—In addition to any
acres enrolled in the wetlands reserve program as of
the end of a calendar year, the Secretary may in the
succeeding calendar year enroll in the program a
number of additional acres equal to—
‘‘(A) if the succeeding calendar year is cal-
endar year 2002, 150,000;
‘‘(B) if the succeeding calendar year is a
calendar year after calendar year 2002—
‘‘(i) 150,000; plus
‘‘(ii) the amount (if any) by which
150,000, multiplied by the number of cal-
134
endar years in the period that begins with
calendar year 2002 and ends with the cal-
endar year preceding such succeeding cal-
endar year, exceeds the total number of
acres added to the reserve during the pe-
riod.’’.
(b) METHODS.—Section 1237(b)(2) of such Act (16
U.S.C. 3837(b)(2)) is amended to read as follows:
‘‘(2) METHODS OF ENROLLMENT.—The Secretary
shall enroll acreage into the wetlands reserve program
through the use of easements, restoration cost share
agreements, or both.’’.
(c) ELIGIBILITY.—Section 1237 of such Act (16 U.S.C.
3837) is amended by striking subsections (c), (d), and (e)
and inserting the following:
‘‘(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 program
established under subchapter B; or
‘‘(2) subject to a contract under the environ-
mental quality incentives program established by
chapter 4.’’.
135
(d) CONFORMING AMENDMENTS.—Section 1237 of such
Act (16 U.S.C. 3837) is amended—
(1) by redesignating subsection (f) as subsection
(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:
‘‘(2) shall be consistent with applicable State
law.’’;
(3) by striking subsections (c) and (h) and redes-
ignating subsections (d) through (g) as subsections (c)
through (f), respectively.
SEC. 243. DUTIES OF THE SECRETARY.
Section 1237C of the Food Security Act of 1985 (16
U.S.C. 3837c) is amended—
(1) in subsection (a)—
136
(A) by striking ‘‘shall—’’ and all that fol-
lows through ‘‘(1)’’ and inserting ‘‘shall’’; and
(B) by striking ‘‘interest;’’ and all that fol-
lows and inserting ‘‘interest.’’; and
(2) by striking subsection (d).
SEC. 244. PAYMENT LIMITATION.
Section 1237D(c)(1) of the Food Security Act of 1985
(16 U.S.C. 3837d(c)(1)) is amended by striking ‘‘easement
payments’’ and inserting ‘‘payments’’.
SEC. 245. CHANGES IN OWNERSHIP; AGREEMENT MODIFICA-
TION; TERMINATION.
Section 1237E(a)(2) of the Food Security Act of 1985
(16 U.S.C. 3837e(a)(2)) is amended to read as follows:
‘‘(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, or’’.
Subtitle F—Environmental Quality
Incentives Program
SEC. 251. PURPOSES.
on 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—’’;
137
(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 para-
graph (2) of this section as paragraphs (1) through
(4), respectively;
(4) by moving each of such redesignated provi-
sions 2 ems to the left; and
(5) by striking ‘‘farmers and ranchers’’ each
place it appears and inserting ‘‘producers’’.
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 increased
environmental benefits to air, soil, water, or re-
lated 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,’’.
138
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-
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 ELIGI-
BILITY 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
139
(2) by redesignating subsection (f) as subsection
(g) and inserting after subsection (e) the following:
‘‘(f) FARMLAND
CONSERVATION
INCENTIVE
PAY-
MENTS.—
‘‘(1) IN GENERAL.—The Secretary may make in-
centive payments in an amount and at a rate deter-
mined by the Secretary to be necessary to encourage
a producer to perform multiple land management
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 Secretary
may accord great weight to those practices that in-
clude 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 producers in complying with this title
and Federal and State environmental laws, and en-
courage environmental enhancement and conserva-
tion; and
140
‘‘(2) maximize the beneficial usage of animal
manure and other similar soil amendments which im-
prove soil health, tilth, and water-holding capacity.’’.
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 incor-
porates such conservation practices’’ and all that follows
and inserting ‘‘that provides or will continue to provide in-
creased 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)—
141
(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’’;
(2) in subsection (b), by striking ‘‘the maximiza-
tion of environmental benefits per dollar expended
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 shall use $60,000,000 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 conservation, in-
cluding irrigation system improvement, and to provide in-
centive payments for capping wells, reducing use of water
for irrigation, and switching from irrigation to dryland
farming.’’.
142
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 insert-
ing ‘‘2011’’.
SEC. 262. FUNDING.
Section 1241(b)(1) of the Food Security Act of 1985
(16 U.S.C. 3841(b)(1)) is amended—
(1) by striking ‘‘and’’ the 1st place it appears;
and
(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,
143
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 LIMITA-
TION.—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 action would
not adversely affect the local economy of the county.’’.
(b) RULES GOVERNING PROVISION OF TECHNICAL AS-
SISTANCE.—Section 1243(d) of the Food Security Act of
1985 (16 U.S.C. 3843(d)) is amended to read as follows:
‘‘(d) RULES GOVERNING PROVISION OF TECHNICAL
ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary shall provide
technical assistance under this title to a producer eli-
gible for such assistance, by providing the assistance
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 deter-
mination, shall make the necessary funds available
to—
144
‘‘(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 Con-
servation 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.
‘‘(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 regula-
tion, 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 un-
derstanding regarding the provision of technical
145
assistance in place with the Secretary before the
date of the enactment of this subsection.
‘‘(B) 
EXPERTISE
REQUIRED.—In 
pre-
scribing such regulations, the Secretary shall en-
sure that persons with expertise in the technical
aspects of conservation planning, watershed
planning, environmental engineering, including
commercial entities, nonprofit entities, State or
local governments or agencies, and other Federal
agencies, are eligible to become approved pro-
viders of such technical assistance.’’.
(c) DUTY OF SECRETARY.—
(1) IN GENERAL.—Section 1770(d) of such Act
(7 U.S.C. 2276(d)) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (9);
(B) by striking the period at the end of
paragraph (11) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(12) title XII of this Act.’’.
(2) 
CONFORMING
AMENDMENTS.—Section
1770(e) of such Act (7 U.S.C. 2276(e)) is amended—
(A) by striking the subsection heading and
inserting ‘‘EXCEPTIONS’’; and
146
(B) by inserting ‘‘, or as necessary to carry
out a program under title XII of this Act as de-
termined by the Secretary’’ before the period.
(d) 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 sub-
ject to this subtitle shall be eligible to receive technical as-
sistance in accordance with section 1243(d) throughout the
development, revision, and application of the conservation
plan and any conservation system of the producer.’’.
(2) CONSERVATION RESERVE PROGRAM.—Section
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:
‘‘(b) TECHNICAL ASSISTANCE.—An owner or operator
who is participating in the program under this subtitle
147
shall be eligible to receive technical assistance in accordance
with section 1243(d) to assist the owner or operator in car-
rying 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 inserting
the following:
‘‘(2) TECHNICAL ASSISTANCE.—A producer who
is participating in the program under this subtitle
shall be eligible to receive technical assistance in ac-
cordance with section 1243(d) to assist the producer
in complying with the terms of easements and res-
toration cost share agreements under this sub-
chapter.’’.
(4) ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM.—
(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 participating in the program under this subtitle
shall be eligible to receive technical assistance in ac-
cordance with section 1243(d) to assist the producer
in writing and developing proposals and plans for
contracts under this chapter, and in the implementa-
tion 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 ‘‘tech-
nical assistance,’’; and
(ii) in paragraph (2), by striking
‘‘technical assistance’’ and all that follows
through ‘‘education’’ and inserting ‘‘cost-
share payments and incentive payments’’.
149
Subtitle H—Other Programs
SEC. 271. WILDLIFE HABITAT INCENTIVES PROGRAM.
Section 387(c) of the Federal Agriculture Improvement
and Reform Act of 1996 (16 U.S.C. 3836a(c)) is amended
to read as follows:
‘‘(c) FUNDING.—To carry out this section, there shall
be made available $25,000,000 for each of fiscal years 2002
through 2011, from funds made available from the Com-
modity Credit Corporation.’’.
SEC. 272. FARMLAND PROTECTION PROGRAM.
(a) CONSERVATION
OF
HISTORIC
AND
ARCHAE-
OLOGICAL RESOURCES.—Section 388(a) of the Federal Ag-
riculture Improvement and Reform Act of 1996 (16 U.S.C.
3830 note) is amended by inserting ‘‘, or agricultural land
that contains historic or archeological resources,’’ after
‘‘other productive soil’’.
(b) FUNDING.—Section 388(c) of such Act (16 U.S.C.
3830 note) is amended to read as follows:
‘‘(c) FUNDING.—The Secretary shall use not more than
$50,000,000 of the funds of the Commodity Credit Corpora-
tion in each of fiscal years 2002 through 2011 to carry out
this section.’’.
150
SEC. 273. RESOURCE CONSERVATION AND DEVELOPMENT
PROGRAM.
(a) PURPOSE.—Section 1528 of the Agriculture and
Food Act of 1981 (16 U.S.C. 3451) is amended—
(1) by striking the section heading and all that
follows through ‘‘SEC. 1528. It is the purpose’’ and
inserting the following:
‘‘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 subtitle—
’’ 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)—
151
(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
(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-
152
rangements as needed to carry out the program’s
purpose.
‘‘(B) Funds may be used for such things as—
‘‘(i) technical assistance;
‘‘(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 respon-
sible leadership of the RC&D area. RC&D councils
and associations are non-profit entities whose mem-
bers 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 federally
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:
153
‘‘(9) The term ‘project’ means any action taken
by a designated RC&D council that achieves any of
the elements identified under paragraph (1).’’.
(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—
154
(1) by striking the section heading and all that
follows through ‘‘SEC. 1532. In carrying’’ and insert-
ing the following:
‘‘SEC. 1532. AUTHORITY OF SECRETARY.
‘‘In carrying’’;
(2) in each of paragraphs (1) and (3)—
(A) by striking ‘‘State, local unit of govern-
ment, or local nonprofit organization’’ and in-
serting ‘‘RC&D council’’; and
(B) by inserting ‘‘RC&D council’’ before
‘‘area plan’’;
(3) in paragraph (2), by inserting ‘‘RC&D coun-
cil’’ 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.—Section
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)—
155
(A) by striking ‘‘State, local unit of govern-
ment, or local nonprofit organization to assist in
carrying out works of improvement specified in
an’’ and inserting ‘‘RC&D councils or affili-
ations of RC&D councils to assist in carrying
out a project specified in a RC&D council’’;
(B) in paragraph (1)—
(i) by striking ‘‘State, local unit of
government, or local nonprofit organiza-
tion’’ and inserting ‘‘RC&D council or affil-
iate’’; and
(ii) by striking ‘‘works of improve-
ment’’ each place it appears and inserting
‘‘project’’;
(C) in paragraph (2)—
(i) by striking ‘‘works of improvement’’
and inserting ‘‘project’’; and
(ii) by striking ‘‘State, local unit of
government, or local nonprofit organiza-
tion’’ and inserting ‘‘RC&D council’’;
(C) in paragraph (3), by striking ‘‘works of
improvement’’ and all that follows and inserting
‘‘project concerned is necessary to accomplish
and RC&D council area plan objective’’;
156
(D) in paragraph (4), by striking ‘‘the
works of improvement provided for in the’’ and
inserting ‘‘the project provided for in the RC&D
council’’;
(E) in paragraph (5), by inserting ‘‘feder-
ally recognized Indian tribe’’ before ‘‘or local’’
each place it appears; and
(F) 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 DEVELOPMENT
POLICY BOARD.
‘‘(a) The Secretary’’; and
(2) by striking ‘‘seven’’.
157
(h) PROGRAM EVALUATION.—Section 1535 of such Act
(16 U.S.C. 3458) is amended—
(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 section
heading and all that follows through ‘‘SEC. 1536. The pro-
gram’’ 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:
158
‘‘SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.
‘‘The authority’’; and
(2) by striking ‘‘States, local units of govern-
ment, and local nonprofit organizations’’ and insert-
ing ‘‘RC&D councils’’.
(i) 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 inserting
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 Security
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 grassland reserve
program (referred to in this subchapter as the ‘program’)
to assist owners in restoring and conserving eligible land
described in subsection (c).
‘‘(b) ENROLLMENT CONDITIONS.—
159
‘‘(1) MAXIMUM ENROLLMENT.—The total number
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 Secretary
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 en-
rolled 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 his-
torically 
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 eligible
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 crop-
land 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
‘‘(C) construction of fire breaks and fences,
including placement of the posts necessary for
fences;
161
‘‘(2) prohibit—
‘‘(A) the production of any agricultural
commodity (other than hay); and
‘‘(B) unless allowed under subsection (d),
the conduct of any other activity that would dis-
turb the surface of the land covered by the con-
tract; 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.
‘‘(d) RESTORATION
AGREEMENTS.—The Secretary
shall prescribe the terms by which grassland that is subject
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 pay-
ments and technical assistance.
162
‘‘(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 Federal
share of restoration and provide technical assistance to the
owner in accordance with this section.
‘‘(b) CONTRACT PAYMENTS.—In return for the grant-
ing of contract by an owner under this subchapter, the Sec-
retary shall make annual contract payments to the owner
in an amount that is not more than 75 percent of the graz-
ing 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
163
measures and practices necessary to restore grassland
functions and values; or
‘‘(2) in the case of restored grassland, 75 percent
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 enti-
tled to a payment under this subchapter dies, becomes in-
competent, is otherwise unable to receive the payment, or
is succeeded by another person who renders or completes the
required performance, the Secretary shall make the pay-
ment, 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 rea-
sonable in light of all the circumstances.’’.
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:
164
‘‘CHAPTER 2—FARMLAND STEWARDSHIP
PROGRAM
‘‘SEC. 1239. DEFINITIONS.
‘‘In this chapter:
‘‘(1) AGREEMENT.—The terms ‘farmland stew-
ardship agreement’ and ‘agreement’ mean a steward-
ship contract authorized by this chapter.
‘‘(2) CONTRACTING
AGENCY.—The term ‘con-
tracting agency’ means a local conservation district,
resource conservation and development council, local
office of the Department of Agriculture, other partici-
pating government agency, or other nongovernmental
organization that is designated by the Secretary to
enter into farmland stewardship agreements 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 Sec-
retary that—
‘‘(A) contain wildlife habitat, wetlands, or
other natural resources; or
‘‘(B) provide benefits to the public at large,
such as—
165
‘‘(i) conservation of soil, water, and re-
lated 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 Program’
and ‘Program’ mean the conservation program of the
Department of Agriculture established by this chapter.
‘‘SEC. 1239A. ESTABLISHMENT AND PURPOSE OF PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
a conservation program of the Department of Agriculture,
to be known as the Farmland Stewardship Program, that
is designed to more precisely tailor and target existing con-
servation programs to the specific conservation needs and
166
opportunities presented by individual parcels of eligible ag-
ricultural lands.
‘‘(b) RELATION
TO
OTHER
CONSERVATION
PRO-
GRAMS.—Under the Farmland Stewardship Program, the
Secretary may implement, or combine together, the features
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 govern-
ment entities, where feasible and with the consent 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 conserva-
tion programs that are implemented in whole, or
in part, through the use of agreements or ease-
ments; and
‘‘(B) such funds as are provided to carry
out the programs specified in paragraphs (1)
through (4) of subsection (b).
167
‘‘(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 operator
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.
‘‘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 Sec-
retary, to be known as farmland stewardship agreements,
with the owners or operators of eligible agricultural lands
168
to maintain and protect for the natural and agricultural
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 possible,
improve, the natural resources on the lands covered by
the agreement in return for annual payments to the
owner or operator;
‘‘(2) to implement a conservation program or se-
ries 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
reach agreement on a public purchase of a fee-simple
or less-than-fee interest in the property for conserva-
tion 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 Farm-
169
land 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 conservation pro-
gram, then the Secretary may waive any remaining limita-
tions, conditions, or requirements of the conservation pro-
gram that would otherwise prohibit or limit the agreement.
‘‘(d) STATE AND LOCAL CONSERVATION PRIORITIES.—
To the maximum extent practicable, agreements shall ad-
dress the conservation priorities established by the State
and locality in which the eligible agricultural lands are lo-
cated.
‘‘(e) WATERSHED
ENHANCEMENT.—To the extent
practicable, the Secretary shall encourage the development
of Farmland Stewardship Program applications on a wa-
tershed basis.
‘‘SEC. 1239C. PARTNERSHIP APPROACH TO PROGRAM.
‘‘(a) 
AUTHORITY
OF
SECRETARY
EXERCISED
THROUGH PARTNERSHIPS.—The Secretary may admin-
ister agreements under the Farmland Stewardship Program
in partnership with other Federal, State, and local agencies
whose programs are incorporated into the Program under
section 1239A.
‘‘(b) DESIGNATION AND USE OF CONTRACTING AGEN-
CIES.—Subject to subsection (c), the Secretary may author-
170
ize a local conservation district, resource conservation & de-
velopment district, nonprofit organization, or local office of
the Department of Agriculture or other participating gov-
ernment 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 designa-
tion 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 Sec-
retary that it has established working relationships
with owners and operators of eligible agricultural
lands, and based on the history of these working rela-
tionships, demonstrates that it has the ability to work
with owners and operators of eligible agricultural
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
171
administering the agreement throughout its full term;
and
‘‘(5) demonstrates to the satisfaction of the Sec-
retary that it has or will have the necessary staff re-
sources and expertise to carry out its responsibilities
under paragraphs (3) and (4).
‘‘SEC. 1239D. PARTICIPATION OF OWNERS AND OPERATORS
OF ELIGIBLE AGRICULTURAL LANDS.
‘‘(a) APPLICATION AND APPROVAL PROCESS.—To par-
ticipate 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;
‘‘(2) submit to the Secretary a list of services to
be provided, a management plan to be implemented,
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 imple-
mented, or both, and requires compliance with the
other terms of the agreement.
‘‘(b) APPLICATION ON BEHALF OF AN OWNER OR OP-
ERATOR.—A designated contracting agency may submit the
172
application required by subsection (a) on behalf of an owner
or operator by if the contracting agency has secured the con-
sent 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.’’.
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 Allot-
ment Act (16 U.S.C. 590f) is amended—
(1) in the 1st undesignated paragraph, by insert-
ing ‘‘(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
173
Secretary of Agriculture to be necessary, by the agency of
the Department of Agriculture to which the funds are ap-
propriated, to provide technical assistance to owners and
operators of land to achieve the objectives of any conserva-
tion program administered by the Secretary of Agri-
culture.’’.
Subtitle J—Repeals
SEC. 291. PROVISIONS OF THE 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).
(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 pro-
vided 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.—
174
(1) REPEAL.—Chapter 3 of subtitle D of title
XII of such Act (16 U.S.C. 3839–3839d) is repealed.
(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 sub-
title D of title XII of such Act (16 U.S.C. 3839bb) is re-
pealed.
(g) TREE PLANTING INITIATIVE.—Section 1256 of such
Act (16 U.S.C. 2101 note) is repealed.
SEC. 292. NATIONAL NATURAL RESOURCES CONSERVATION
FOUNDATION ACT.
Subtitle F of title III of the Federal Agriculture Im-
provement and Reform Act of 1996 (16 U.S.C. 5801–5809)
is repealed.
TITLE III—TRADE
SEC. 301. MARKET ACCESS PROGRAM.
(a) IN GENERAL.—Section 211(c)(1) of the Agricul-
tural 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’’.
175
(b) COMMODITY ELIGIBILITY.—Section 1302(b)(3) of
the Agricultural Reconciliation Act of 1993 (7 U.S.C. 5623
note) is amended by inserting ‘‘, other than leaf tobacco’’
after ‘‘tobacco’’.
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 amend-
ed by striking ‘‘fiscal year 1999’’ and inserting ‘‘fiscal years
2002 through 2011’’.
(c)
EXCLUSION
FROM
LIMITATION.—Section
1110(e)(2) of the Food Security Act of 1985 (&. U.S. C.
1736o(e)(2)) is amended by inserting ‘‘, and subsection (g)
does not apply to such commodities furnished on a grant
basis or on credit terms under title I of the Agricultural
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(f)(3)) is
amended
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—
176
(1) by striking ‘‘may’’ and inserting ‘‘is encour-
aged’’; and
(2) by inserting ‘‘to’’ before ‘‘approved’’.
(f) NEW PROVISIONS.—Section 1110 of the Food Secu-
rity 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 Agriculture, Nutri-
tion, and Forestry of the Senate a list of approved pro-
grams, countries, and commodities, and the total amounts
of funds approved for transportation and administrative
costs, under this section.’’.
SEC. 303. EXPORT ENHANCEMENT PROGRAM.
Section 301(e)(1)(G) of the Agricultural Trade Act of
1978 (7 U.S.C. 5651(e)(1)(G)) is amended by inserting
‘‘and for each fiscal year thereafter through fiscal year
2011’’ after ‘‘2002’’.
SEC. 304. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
(a) IN GENERAL.—Section 703 of the Agricultural
Trade Act of 1978 (7 U.S.C.5723) is amended—
177
(1) by inserting ‘‘(a) PRIOR YEARS.—’’;
(1) by striking ‘‘2002’’ and inserting ‘‘2001’’;
and
(2) by adding at the end the following new sub-
section:
‘‘(b) FISCAL 2002 AND LATER.—For each of fiscal years
2002 through 2011 there are authorized to be appropriated
such sums as may be necessary to carry out this title, and,
in addition to any sums so appropriated, the Secretary
shall use $35,000,000 of the funds of, or an equal value of
the commodities of, the Commodity Credit Corporation to
carry out this title.’’.
(b) VALUE ADDED PRODUCTS.—
(1) IN GENERAL.—Section 702(a) of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5721 et seq.) is
amended by inserting ‘‘, with a significant emphasis
on the importance of the export of value-added United
States agricultural products into emerging markets’’
after ‘‘products’’.
(2) REPORT TO CONGRESS.—Section 702 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5722) is
amended by adding at the end the following:
‘‘(c) REPORT TO CONGRESS.—The Secretary shall re-
port annually to Congress the amount of funding provided,
types of programs funded, the value added products that
178
have been targeted, and the foreign markets for those prod-
ucts that have been developed.’’.
SEC. 305. EXPORT CREDIT GUARANTEE PROGRAM.
(a) REAUTHORIZATION.—Section 211(b)(1) of the Ag-
ricultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is
amended by striking ‘‘2002’’ and inserting ‘‘2011’’.
(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. FOOD FOR PEACE (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 in-
serting ‘‘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 in-
serting ‘‘2011’’.
179
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 in-
serting ‘‘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 U.S.C.
1736f-1) are each amended by striking ‘‘2002’’ and insert-
ing ‘‘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 barriers
that prohibit or threaten the export of United States spe-
cialty crops.
(b) PURPOSE.—The program shall provide direct as-
sistance through public and private sector projects and tech-
nical assistance to remove, resolve, or mitigate sanitary 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.
180
(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.
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 in-
serting ‘‘not more’’;
(2) by striking ‘‘2002’’ and inserting
‘‘2001’’; and
(3) by inserting ‘‘and not more than
$180,000,000 for each of fiscal years 2002
through 2007,’’ after ‘‘2001,’’.
SEC. 302. FOOD FOR PROGRESS.
(a) IN GENERAL.—Subsections (f)(3), (g),
and (k) of section 1110 of the Food Security
Act of 1985 (7 U.S.C. 1736o) are each amended
by striking ‘‘2002’’ and inserting ‘‘2007’’.
(b) 
INCREASE
IN
FUNDING.—Section
1110(l)(1) of the Food Security Act of 1985 (7
U.S.C. 1736o(l)(1)) is amended—
181
(1) by striking ‘‘fiscal years 1996
through 2002’’ and inserting ‘‘fiscal years
2002 through 2007’’; and
(2) by striking ‘‘$10,000,000 (or in the
case of fiscal year 1999, $12,000,000)’’ and
inserting ‘‘$15,000,000’’.
(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 be-
fore the period ‘‘, and subsection (g) does not
apply to such commodities furnished on a
grant basis or on credit terms under title I of
the Agricultural Trade Development and As-
sistance Act of 1954’’.
(d) 
TRANSPORTATION
COSTS.—Section
1110(f)(3) of the Food Security Act of 1985 (7
U.S.C. 1736o(f)(3)) is amended by striking
‘‘$30,000,000’’ and inserting ‘‘$40,000,000’’.
(e) AMOUNTS
OF
COMMODITIES.—Section
1110(g) of the Food Security Act of 1985 (7
U.S.C. 1736o(g)) is amended by striking
‘‘500,000’’ and inserting ‘‘1,000,000’’.
(f) MULTIYEAR BASIS.—Section 1110(j) of
the Food Security Act of 1985 (7 U.S.C.
1736o(j)) is amended—
182
(1) by striking ‘‘may’’ and inserting ‘‘is
encouraged’’; and
(2) by inserting ‘‘to’’ before ‘‘approve’’.
(g) MONETIZATION.—Section 1110(l)(3) of
the Food Security Act of 1985 (7 U.S.C.
1736o(l)(3)) is amended by striking ‘‘local cur-
rencies’’ and inserting ‘‘proceeds’’.
(h) NEW PROVISIONS.—Section 1110 of the
Food Security Act of 1985 (7 U.S.C. 1736o) is
amended by adding at the end the following:
‘‘(p) The Secretary is encouraged to final-
ize program agreements and resource re-
quests 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 and the Committee on Inter-
national Relations of the House of Represent-
atives, and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate a list of ap-
proved programs, countries, and commod-
ities, and the total amounts of funds approved
for transportation and administrative costs,
under this section.’’.