H. R. 2646
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To provide for the continuation of agricultural programs through fiscal year 2007,
and for other purposes.
Be it enacted by the Senate and House of Representatives 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
and Rural Investment Act of 2002’’.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I—COMMODITY PROGRAMS
Sec. 1001. Definitions.
Subtitle A—Direct Payments and Counter-Cyclical Payments
Sec. 1101. Establishment of base acres and payment acres for a farm.
Sec. 1102. Establishment of payment yield.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of direct
payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Relation to remaining payment authority under production flexibility
contracts.
Sec. 1108. Period of effectiveness.
Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commod-
ities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains and seed
cotton.
Subtitle C—Peanuts
Sec. 1301. Definitions.
Sec. 1302. Establishment of payment yield and base acres for peanuts for a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of direct
payments and counter-cyclical payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for peanuts.
Sec. 1308. Miscellaneous provisions.
Sec. 1309. Termination of marketing quota programs for peanuts and compensation
to peanut quota holders for loss of quota asset value.
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Sec. 1310. Repeal of superseded price support authority and effect of repeal.
Subtitle D—Sugar
Sec. 1401. Sugar program.
Sec. 1402. Storage facility loans.
Sec. 1403. Flexible marketing allotments for sugar.
Subtitle E—Dairy
Sec. 1501. Milk price support program.
Sec. 1502. National dairy market loss payments.
Sec. 1503. Dairy export incentive and dairy indemnity programs.
Sec. 1504. Dairy product mandatory reporting.
Sec. 1505. Funding of dairy promotion and research program.
Sec. 1506. Fluid milk promotion.
Sec. 1507. Study of national dairy policy.
Sec. 1508. Studies of effects of changes in approach to national dairy policy and
fluid milk identity standards.
Subtitle F—Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Commission on application of payment limitations.
Sec. 1606. Adjustments of loans.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Extension of existing administrative authority regarding loans.
Sec. 1609. Commodity Credit Corporation Inventory.
Sec. 1610. Reserve stock level.
Sec. 1611. Farm reconstitutions.
Sec. 1612. Assignment of payments.
Sec. 1613. Equitable relief from ineligibility for loans, payments, or other benefits.
Sec. 1614. Tracking of benefits.
Sec. 1615. Estimates of net farm income.
Sec. 1616. Availability of incentive payments for certain producers.
Sec. 1617. Renewed availability of market loss assistance and certain emergency
assistance to persons that failed to receive assistance under earlier au-
thorities.
Sec. 1618. Producer retention of erroneously paid loan deficiency payments and
marketing loan gains.
TITLE II—CONSERVATION
Subtitle A—Conservation Security
Sec. 2001. Conservation security program.
Sec. 2002. Conservation compliance.
Sec. 2003. Partnerships and cooperation.
Sec. 2004. Administrative requirements for conservation programs.
Sec. 2005. Reform and assessment of conservation programs.
Sec. 2006. Conforming amendments.
Subtitle B—Conservation Reserve
Sec. 2101. Conservation reserve program.
Subtitle C—Wetlands Reserve Program
Sec. 2201. Reauthorization.
Sec. 2202. Enrollment.
Sec. 2203. Easements and agreements.
Sec. 2204. Changes in ownership; agreement modification; termination.
Subtitle D—Environmental Quality Incentives
Sec. 2301. Environmental quality incentives program.
Subtitle E—Grassland Reserve
Sec. 2401. Grassland reserve program.
Subtitle F—Other Conservation Programs
Sec. 2501. Agricultural management assistance.
Sec. 2502. Grazing, wildlife habitat incentive, source water protection, and Great
Lakes basin programs.
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Sec. 2503. Farmland protection program.
Sec. 2504. Resource conservation and development program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Use of symbols, slogans, and logos.
Sec. 2507. Desert terminal lakes.
Subtitle G—Conservation Corridor Demonstration Program
Sec. 2601. Definitions.
Sec. 2602. Conservation corridor demonstration program.
Sec. 2603. Implementation of conservation corridor plan.
Sec. 2604. Funding requirements.
Subtitle H—Funding and Administration
Sec. 2701. Funding and administration.
Sec. 2702. Regulations.
TITLE III—TRADE
Subtitle A—Agricultural Trade Development and Assistance Act of 1954 and
Related Statutes
Sec. 3001. United States policy.
Sec. 3002. Provision of agricultural commodities.
Sec. 3003. Generation and use of currencies by private voluntary organizations and
cooperatives.
Sec. 3004. Levels of assistance.
Sec. 3005. Food Aid Consultative Group.
Sec. 3006. Maximum level of expenditures.
Sec. 3007. Administration.
Sec. 3008. Assistance for stockpiling and rapid transportation, delivery, and dis-
tribution of shelf-stable prepackaged foods.
Sec. 3009. Sale procedure.
Sec. 3010. Prepositioning.
Sec. 3011. Transportation and related costs.
Sec. 3012. Expiration date.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski Farmer-to-Farmer Program.
Subtitle B—Agricultural Trade Act of 1978
Sec. 3101. Exporter assistance initiative.
Sec. 3102. Export credit guarantee program.
Sec. 3103. Market access program.
Sec. 3104. Export enhancement program.
Sec. 3105. Foreign market development cooperator program.
Sec. 3106. Food for progress.
Sec. 3107. McGovern-Dole International Food for Education and Child Nutrition
Program.
Subtitle C—Miscellaneous
Sec. 3201. Surplus commodities for developing or friendly countries.
Sec. 3202. Bill Emerson Humanitarian Trust Act.
Sec. 3203. Emerging markets.
Sec. 3204. Biotechnology and agricultural trade program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global market strategy.
Sec. 3207. Report on use of perishable commodities and live animals.
Sec. 3208. Study on fee for services.
Sec. 3209. Sense of Congress concerning foreign assistance programs.
Sec. 3210. Sense of the Senate concerning agricultural trade.
TITLE IV—NUTRITION PROGRAMS
Sec. 4001. Short title.
Subtitle A—Food Stamp Program
Sec. 4101. Encouragement of payment of child support.
Sec. 4102. Simplified definition of income.
Sec. 4103. Standard deduction.
Sec. 4104. Simplified utility allowance.
Sec. 4105. Simplified determination of housing costs.
Sec. 4106. Simplified determination of deductions.
Sec. 4107. Simplified definition of resources.
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Sec. 4108. Alternative issuance systems in disasters.
Sec. 4109. State option to reduce reporting requirements.
Sec. 4110. Cost neutrality for electronic benefit transfer systems.
Sec. 4111. Report on electronic benefit transfer systems.
Sec. 4112. Alternative procedures for residents of certain group facilities.
Sec. 4113. Redemption of benefits through group living arrangements.
Sec. 4114. Availability of food stamp program applications on the Internet.
Sec. 4115. Transitional food stamps for families moving from welfare.
Sec. 4116. Grants for simple application and eligibility determination systems and
improved access to benefits.
Sec. 4117. Delivery to retailers of notices of adverse action.
Sec. 4118. Reform of quality control system.
Sec. 4119. Improvement of calculation of State performance measures.
Sec. 4120. Bonuses for States that demonstrate high or most improved perform-
ance.
Sec. 4121. Employment and training program.
Sec. 4122. Reauthorization of food stamp program and food distribution program on
Indian reservations.
Sec. 4123. Expanded grant authority.
Sec. 4124. Consolidated block grants for Puerto Rico and American Samoa.
Sec. 4125. Assistance for community food projects.
Sec. 4126. Availability of commodities for the emergency food assistance program.
Subtitle B—Commodity Distribution
Sec. 4201. Commodity supplemental food program.
Sec. 4202. Commodity donations.
Sec. 4203. Distribution of surplus commodities to special nutrition projects.
Sec. 4204. Emergency food assistance.
Subtitle C—Child Nutrition and Related Programs
Sec. 4301. Commodities for school lunch program.
Sec. 4302. Eligibility for free and reduced price meals.
Sec. 4303. Purchases of locally produced foods.
Sec. 4304. Applicability of Buy-American requirement to Puerto Rico.
Sec. 4305. Fruit and vegetable pilot program.
Sec. 4306. Eligibility for assistance under the special supplemental nutrition pro-
gram for women, infants, and children.
Sec. 4307. WIC farmers’ market nutrition program.
Subtitle D—Miscellaneous
Sec. 4401. Partial restoration of benefits to legal immigrants.
Sec. 4402. Seniors farmers’ market nutrition program.
Sec. 4403. Nutrition information and awareness pilot program.
Sec. 4404. Hunger fellowship program.
Sec. 4405. General effective date.
TITLE V—CREDIT
Subtitle A—Farm Ownership Loans
Sec. 5001. Direct loans.
Sec. 5002. Financing of bridge loans.
Sec. 5003. Amount of guarantee of loans for farm operations on tribal lands.
Sec. 5004. Guarantee of loans made under State beginning farmer or rancher pro-
grams.
Sec. 5005. Down Payment Loan Program.
Sec. 5006. Beginning farmer and rancher contract land sales program.
Subtitle B—Operating Loans
Sec. 5101. Direct loans.
Sec. 5102. Suspension of limitation on period for which borrowers are eligible for
guaranteed assistance.
Subtitle C—Emergency Loans
Sec. 5201. Emergency loans in response to an emergency resulting from quar-
antines.
Subtitle D—Administrative Provisions
Sec. 5301. Evaluations of direct and guaranteed loan programs.
Sec. 5302. Eligibility of trusts and limited liability companies for farm ownership
loans, farm operating loans, and emergency loans.
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Sec. 5303. Debt settlement.
Sec. 5304. Temporary authority to enter into contracts; private collection agencies.
Sec. 5305. Interest rate options for loans in servicing.
Sec. 5306. Elimination of requirement that Secretary require county committees to
certify in writing that certain loan reviews have been conducted.
Sec. 5307. Simplified loan guarantee application available for loans of greater
amounts.
Sec. 5308. Inventory property.
Sec. 5309. Administration of certified lenders and preferred certified lenders pro-
grams.
Sec. 5310. Definitions.
Sec. 5311. Loan authorization levels.
Sec. 5312. Reservation of funds for direct operating loans for beginning farmers
and ranchers.
Sec. 5313. Interest rate reduction program.
Sec. 5314. Reamortization of recapture payments.
Sec. 5315. Allocation of certain funds for socially disadvantaged farmers and ranch-
ers.
Sec. 5316. Waiver of borrower training certification requirement.
Sec. 5317. Timing of loan assessments.
Sec. 5318. Annual review of borrowers.
Sec. 5319. Loan eligibility for borrowers with prior debt forgiveness.
Sec. 5320. Making and servicing of loans by personnel of State, county, or area
committees.
Sec. 5321. Eligibility of employees of State, county, or area committee for loans and
loan guarantees.
Subtitle E—Farm Credit
Sec. 5401. Repeal of burdensome approval requirements.
Sec. 5402. Banks for cooperatives.
Sec. 5403. Insurance corporation premiums.
Subtitle F—General Provisions
Sec. 5501. Technical amendments.
TITLE VI—RURAL DEVELOPMENT
Subtitle A—Consolidated Farm and Rural Development Act
Sec. 6001. Eligibility of rural empowerment zones and rural enterprise commu-
nities for direct and guaranteed loans for essential community facili-
ties.
Sec. 6002. Water or waste disposal grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facilities.
Sec. 6005. Rural water and wastewater circuit rider program.
Sec. 6006. Multijurisdictional regional planning organizations.
Sec. 6007. Loan guarantees for certain rural development loans.
Sec. 6008. Tribal college and university essential community facilities.
Sec. 6009. Emergency and imminent community water assistance grant program.
Sec. 6010. Water and waste facility grants for Native American tribes.
Sec. 6011. Grants for water systems for rural and native villages in Alaska.
Sec. 6012. Grants to nonprofit organizations to finance the construction, refur-
bishing, and servicing of individually-owned household water well sys-
tems in rural areas for individuals with low or moderate incomes.
Sec. 6013. Loans and loan guarantees for renewable energy systems.
Sec. 6014. Rural business enterprise grants.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Business and industry loan modifications.
Sec. 6018. Use of rural development loans and grants for other purposes.
Sec. 6019. Simplified application forms for loan guarantees.
Sec. 6020. Definition of rural and rural area.
Sec. 6021. National Rural Development Partnership.
Sec. 6022. Rural telework.
Sec. 6023. Historic barn preservation.
Sec. 6024. Grants for NOAA weather radio transmitters.
Sec. 6025. Grants to train farm workers in new technologies and to train farm
workers in specialized skills necessary for higher value crops.
Sec. 6026. Rural community advancement program.
Sec. 6027. Delta Regional Authority.
Sec. 6028. Northern Great Plains Regional Authority.
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Sec. 6029. Rural business investment program.
Sec. 6030. Rural strategic investment program.
Sec. 6031. Funding of pending rural development loan and grant applications.
Subtitle B—Rural Electrification Act of 1936
Sec. 6101. Guarantees for bonds and notes issued for electrification or telephone
purposes.
Sec. 6102. Expansion of 911 access.
Sec. 6103. Enhancement of access to broadband service in rural areas.
Subtitle C—Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 6201. Alternative Agricultural Research and Commercialization Corporation.
Sec. 6202. Rural electronic commerce extension program.
Sec. 6203. Telemedicine and distance learning services in rural areas.
Subtitle D—SEARCH Grants for Small Communities
Sec. 6301. Definitions.
Sec. 6302. SEARCH grant program.
Sec. 6303. Report.
Sec. 6304. Funding.
Subtitle E—Miscellaneous
Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Agriculture innovation center demonstration program.
Sec. 6403. Fund for Rural America.
Sec. 6404. Rural local television broadcast signal loan guarantees.
Sec. 6405. Rural firefighters and emergency personnel grant program.
Sec. 6406. Sense of Congress on rural policy coordination.
TITLE VII—RESEARCH AND RELATED MATTERS
Subtitle A—Extensions
Sec. 7101. National rural information center clearinghouse.
Sec. 7102. Grants and fellowships for food and agricultural sciences education.
Sec. 7103. Policy research centers.
Sec. 7104. Human nutrition intervention and health promotion research program.
Sec. 7105. Pilot research program to combine medical and agricultural research.
Sec. 7106. Nutrition education program.
Sec. 7107. Continuing animal health and disease research programs.
Sec. 7108. Appropriations for research on national or regional problems.
Sec. 7109. Grants to upgrade agricultural and food sciences facilities at 1890 land-
grant colleges, including Tuskegee University.
Sec. 7110. National research and training virtual centers.
Sec. 7111. Hispanic-serving institutions.
Sec. 7112. Competitive grants for international agricultural science and education
programs.
Sec. 7113. University research.
Sec. 7114. Extension service.
Sec. 7115. Supplemental and alternative crops.
Sec. 7116. Aquaculture research facilities.
Sec. 7117. Rangeland research.
Sec. 7118. National genetics resources program.
Sec. 7119. High-priority research and extension initiatives.
Sec. 7120. Nutrient management research and extension initiative.
Sec. 7121. Agricultural telecommunications program.
Sec. 7122. Assistive technology program for farmers with disabilities.
Sec. 7123. Partnerships for high-value agricultural product quality research.
Sec. 7124. Biobased products.
Sec. 7125. Integrated research, education, and extension competitive grants pro-
gram.
Sec. 7126. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7127. 1994 Institution research grants.
Sec. 7128. Endowment for 1994 Institutions.
Sec. 7129. Precision agriculture.
Sec. 7130. Thomas Jefferson Initiative for crop diversification.
Sec. 7131. Support for research regarding diseases of wheat, triticale, and barley
caused by fusarium graminearum or by tilletia indica.
Sec. 7132. Office of Pest Management Policy.
Sec. 7133. National Agricultural Research, Extension, Education, and Economics
Advisory Board.
Sec. 7134. Grants for research on production and marketing of alcohols and indus-
trial hydrocarbons from agricultural commodities and forest products.
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Sec. 7135. Agricultural experiment stations research facilities.
Sec. 7136. Competitive, special, and facilities research grants national research ini-
tiative.
Sec. 7137. Federal agricultural research facilities authorization of appropriations.
Sec. 7138. Critical agricultural materials research.
Sec. 7139. Aquaculture.
Subtitle B—Modifications
Sec. 7201. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7202. Carryover for experiment stations.
Sec. 7203. Authorization percentages for research and extension formula funds.
Sec. 7204. Carryover for eligible institutions.
Sec. 7205. Initiative for future agriculture and food systems.
Sec. 7206. Eligibility for integrated grants program.
Sec. 7207. Agricultural Research, Extension, and Education Reform Act of 1998.
Sec. 7208. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 7209. National Agricultural Research, Extension, and Teaching Policy Act of
1977.
Sec. 7210. Biotechnology risk assessment research.
Sec. 7211. Competitive, special, and facilities research grants.
Sec. 7212. Matching funds requirement for research and extension activities of
1890 Institutions.
Sec. 7213. Matching requirements for research and extension formula funds for in-
sular area land-grant institutions.
Sec. 7214. Definition of food and agricultural sciences.
Sec. 7215. Federal Extension Service.
Sec. 7216. Policy research centers.
Sec. 7217. Availability of competitive grant funds.
Sec. 7218. Organic agriculture research and extension initiative.
Sec. 7219. Senior scientific research service.
Sec. 7220. Termination of certain schedule a appointments.
Sec. 7221. Biosecurity planning and response programs.
Sec. 7222. Indirect costs for small business innovation research grants.
Sec. 7223. Carbon cycle research.
Subtitle C—Repeal of Certain Activities and Authorities
Sec. 7301. Food Safety Research Information Office and National Conference.
Sec. 7302. Reimbursement of expenses under Sheep Promotion, Research, and In-
formation Act of 1994.
Sec. 7303. Market expansion research.
Sec. 7304. National Advisory Board on Agricultural Weather.
Sec. 7305. Agricultural information exchange with Ireland.
Sec. 7306. Pesticide resistance study.
Sec. 7307. Expansion of education study.
Sec. 7308. Task force on 10-year strategic plan for agricultural research facilities.
Subtitle D—New Authorities
Sec. 7401. Subtitle definitions.
Sec. 7402. Research equipment grants.
Sec. 7403. Joint requests for proposals.
Sec. 7404. Review of Agricultural Research Service.
Sec. 7405. Beginning farmer and rancher development program.
Sec. 7406. Sense of Congress regarding doubling of funding for agricultural re-
search.
Sec. 7407. Organic production and market data initiatives.
Sec. 7408. International organic research collaboration.
Sec. 7409. Report on producers and handlers of organic agricultural products.
Sec. 7410. Report on genetically modified pest-protected plants.
Sec. 7411. Study of nutrient banking.
Sec. 7412. Grants for youth organizations.
Subtitle E—Miscellaneous
Sec. 7501. Resident instruction and distance education at institutions of higher
education in United States insular areas.
Sec. 7502. Definitions.
Sec. 7503. Resident instruction and distance education grants program for insular
area institutions of higher education.
Sec. 7504. Declaration of extraordinary emergency and resulting authorities.
Sec. 7505. Agricultural biotechnology research and development for developing
countries.
Sec. 7506. Land acquisition authority, national peanut research laboratory, Daw-
son, Georgia.
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TITLE VIII—FORESTRY
Subtitle A—Cooperative Forestry Assistance Act of 1978
Sec. 8001. Repeal of forestry incentives program and stewardship incentive pro-
gram.
Sec. 8002. Establishment of forest land enhancement program.
Sec. 8003. Enhanced community fire protection.
Subtitle B—Amendments to Other Laws
Sec. 8101. Sustainable forestry outreach initiative; renewable resources extension
activities.
Sec. 8102. Office of International Forestry.
Subtitle C—Miscellaneous Provisions
Sec. 8201. McIntire-Stennis cooperative forestry research program.
TITLE IX—ENERGY
Sec. 9001. Definitions.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Biorefinery development grants.
Sec. 9004. Biodiesel fuel education program.
Sec. 9005. Energy audit and renewable energy development program.
Sec. 9006. Renewable energy systems and energy efficiency improvements.
Sec. 9007. Hydrogen and fuel cell technologies.
Sec. 9008. Biomass research and development.
Sec. 9009. Cooperative research and extension projects.
Sec. 9010. Continuation of bioenergy program.
TITLE X—MISCELLANEOUS
Subtitle A—Crop Insurance
Sec. 10001. Equal crop insurance treatment of potatoes and sweet potatoes.
Sec. 10002. Continuous coverage.
Sec. 10003. Quality loss adjustment procedures.
Sec. 10004. Adjusted gross revenue insurance pilot program.
Sec. 10005. Sense of Congress on expansion of crop insurance coverage.
Sec. 10006. Report on specialty crop insurance.
Subtitle B—Disaster Assistance
Sec. 10101. Reference to sea grass and sea oats as crops covered by noninsured
crop disaster assistance program.
Sec. 10102. Emergency grants to assist low-income migrant and seasonal farm-
workers.
Sec. 10103. Emergency loans for seed producers.
Sec. 10104. Assistance for livestock producers.
Sec. 10105. Market loss assistance for apple producers.
Sec. 10106. Market loss assistance for onion producers.
Sec. 10107. Commercial fisheries failure.
Sec. 10108. Study of feasibility of producer indemnification from Government-
caused disasters.
Subtitle C—Tree Assistance Program
Sec. 10201. Definitions.
Sec. 10202. Eligibility.
Sec. 10203. Assistance.
Sec. 10204. Limitations on assistance.
Sec. 10205. Authorization of appropriations.
Subtitle D—Animal Welfare
Sec. 10301. Definition of animal under the Animal Welfare Act.
Sec. 10302. Prohibition on interstate movement of animals for animal fighting.
Sec. 10303. Penalties and foreign commerce provisions of the Animal Welfare Act.
Sec. 10304. Report on rats, mice, and birds.
Sec. 10305. Enforcement of Humane Methods of Slaughter Act of 1958.
Subtitle E—Animal Health Protection
Sec. 10401. Short title.
Sec. 10402. Findings.
Sec. 10403. Definitions.
Sec. 10404. Restriction on importation or entry.
H. R. 2646—9
Sec. 10405. Exportation.
Sec. 10406. Interstate movement.
Sec. 10407. Seizure, quarantine, and disposal.
Sec. 10408. Inspections, seizures, and warrants.
Sec. 10409. Detection, control, and eradication of diseases and pests.
Sec. 10410. Veterinary accreditation program.
Sec. 10411. Cooperation.
Sec. 10412. Reimbursable agreements.
Sec. 10413. Administration and claims.
Sec. 10414. Penalties.
Sec. 10415. Enforcement.
Sec. 10416. Regulations and orders.
Sec. 10417. Authorization of appropriations.
Sec. 10418. Repeals and conforming amendments.
Subtitle F—Livestock
Sec. 10501. Transportation of poultry and other animals.
Sec. 10502. Swine contractors.
Sec. 10503. Right to discuss terms of contract.
Sec. 10504. Veterinary training.
Sec. 10505. Pseudorabies eradication program.
Subtitle G—Specialty Crops
Sec. 10601. Marketing orders for caneberries.
Sec. 10602. Availability of section 32 funds.
Sec. 10603. Purchase of specialty crops.
Sec. 10604. Protection for purchasers of farm products.
Sec. 10605. Farmers’ market promotion program.
Sec. 10606. National organic certification cost-share program.
Sec. 10607. Exemption of certified organic products from assessments.
Sec. 10608. Cranberry acreage reserve program.
Subtitle H—Administration
Sec. 10701. Initial rate of basic pay for employees of county committees.
Sec. 10702. Commodity Futures Trading Commission pay comparability.
Sec. 10703. Overtime and holiday pay.
Sec. 10704. Assistant Secretary of Agriculture for Civil Rights.
Sec. 10705. Operation of Graduate School of Department of Agriculture.
Sec. 10706. Implementation funding and information management.
Sec. 10707. Outreach and assistance for socially disadvantaged farmers and ranch-
ers.
Sec. 10708. Transparency and accountability for socially disadvantaged farmers
and ranchers; public disclosure requirements for county committee elec-
tions.
Subtitle I—General Provisions
Sec. 10801. Cotton classification services.
Sec. 10802. Program of public education regarding use of biotechnology in pro-
ducing food for human consumption.
Sec. 10803. Chino Dairy Preserve Project.
Sec. 10804. Grazinglands Research Laboratory.
Sec. 10805. Food and Agricultural Policy Research Institute.
Sec. 10806. Market names for catfish and ginseng.
Sec. 10807. Food Safety Commission.
Sec. 10808. Pasteurization.
Sec. 10809. Rulemaking on labeling of irradiated food; certain petitions.
Sec. 10810. Penalties for violations of Plant Protection Act.
Sec. 10811. Preclearance quarantine inspections.
Sec. 10812. Connecticut River Atlantic Salmon Commission.
Sec. 10813. Pine Point School.
Sec. 10814. 7-month extension of chapter 12 of title 11 of the United States Code.
Sec. 10815. Practices involving nonambulatory livestock.
Sec. 10816. Country of origin labeling.
Subtitle J—Miscellaneous Studies and Reports
Sec. 10901. Report on specialty crop purchases.
Sec. 10902. Report on pouched and canned salmon.
Sec. 10903. Study on updating yields.
Sec. 10904. Report on effect of farm program payments.
Sec. 10905. Chiloquin Dam fish passage feasibility study.
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Sec. 10906. Report on geographically disadvantaged farmers and ranchers.
Sec. 10907. Studies on agricultural research and technology.
Sec. 10908. Report on tobacco settlement agreement.
Sec. 10909. Report on sale and use of pesticides for agricultural uses.
Sec. 10910. Review of operation of agricultural and natural resource programs on
tribal trust land.
TITLE I—COMMODITY PROGRAMS
SEC. 1001. DEFINITIONS.
In this title (other than subtitle C):
(1) AGRICULTURAL ACT OF 1949.—The term ‘‘Agricultural
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 Agriculture 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 1101 with respect to the covered
commodity on the election made by the owner of the farm
under subsection (a) of such section.
(3) COUNTER-CYCLICAL
PAYMENT.—The term ‘‘counter-
cyclical payment’’ means a payment made to producers on
a farm under section 1104.
(4) COVERED COMMODITY.—The term ‘‘covered commodity’’
means wheat, corn, grain sorghum, barley, oats, upland cotton,
rice, soybeans, and other oilseeds.
(5) DIRECT PAYMENT.—The term ‘‘direct payment’’ means
a payment made to producers on a farm under section 1103.
(6) 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 1104 to deter-
mine whether counter-cyclical payments are required to be
made for that crop year.
(7) EXTRA LONG STAPLE COTTON.—The term ‘‘extra long
staple cotton’’ means cotton that—
(A) 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 Sec-
retary, having characteristics needed for various end uses
for which United States upland cotton is not suitable and
grown in irrigated cotton-growing regions of the United
States designated by the Secretary or other areas des-
ignated by the Secretary as suitable for the production
of the varieties or types; and
(B) is ginned on a roller-type gin or, if authorized
by the Secretary, ginned on another type gin for experi-
mental purposes.
(8) LOAN COMMODITY.—The term ‘loan commodity’ means
wheat, corn, grain sorghum, barley, oats, upland cotton, extra
long staple cotton, rice, soybeans, other oilseeds, wool, mohair,
honey, dry peas, lentils, and small chickpeas.
(9) OTHER
OILSEED.—The term ‘‘other oilseed’’ means a
crop of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, or, if designated by the Secretary, another oil-
seed.
(10) PAYMENT ACRES.—The term ‘‘payment acres’’ means
85 percent of the base acres of a covered commodity on a
H. R. 2646—11
farm, as established under section 1101, on which direct pay-
ments and counter-cyclical payments are made.
(11) PAYMENT YIELD.—
(A) IN
GENERAL.—The term ‘‘payment yield’’ means
the yield established under section 1102 for a farm for
a covered commodity.
(B) UPDATED PAYMENT YIELD.—The term ‘‘updated pay-
ment yield’’ means the payment yield elected by the owner
of a farm under section 1102(e) to be used in calculating
the counter-cyclical payments for the farm.
(12) PRODUCER.—The term ‘‘producer’’ means an owner,
operator, landlord, tenant, or sharecropper that shares in the
risk of producing a crop and is entitled to share in the crop
available for marketing 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 receive a payment under this
title.
(13) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of Agriculture.
(14) 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.
(15) 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 payment rate for counter-cyclical payments.
(16) UNITED STATES.—The term ‘‘United States’’, when used
in a geographical sense, means all of the States.
Subtitle A—Direct Payments and Counter-
Cyclical Payments
SEC. 1101. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES
FOR A FARM.
(a) ELECTION
BY
OWNER
OF
BASE
ACRES
CALCULATION
METHOD.—
(1) ALTERNATIVE CALCULATION METHODS.—For the purpose
of making direct payments and counter-cyclical payments with
respect to a farm, the Secretary shall give an owner of the
farm an opportunity to elect 1 of the following as the method
by which the base acres of all covered commodities on the
farm are to be determined:
(A) Subject to paragraphs (3) and (4), the 4-year aver-
age of the following:
(i) Acreage planted on the farm to covered commod-
ities for harvest, grazing, haying, silage, or other
similar purposes for the 1998 through 2001 crop years.
(ii) Any acreage on the farm that the producers
were prevented from planting during the 1998 through
2001 crop years to covered commodities because of
H. R. 2646—12
drought, flood, or other natural disaster, or other condi-
tion beyond the control of the producers, as determined
by the Secretary.
(B) Subject to paragraph (3), the sum of the following:
(i) The contract acreage (as defined in section 102
of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7202)) used by the Secretary
to calculate the fiscal year 2002 payment authorized
under section 114 of such Act (7 U.S.C. 7214) for
the covered commodities on the farm.
(ii) The 4-year average of eligible oilseed acreage
on the farm for the 1998 through 2001 crop years,
as determined by the Secretary under paragraph (2).
(2) ELIGIBLE OILSEED ACREAGE.—
(A) 
CALCULATION.—For 
purposes 
of 
paragraph
(1)(B)(ii), the eligible acreage for each oilseed on a farm
during each of the 1998 through 2001 crop years shall
be determined in the manner provided in paragraph (1)(A),
except that the total acreage for all oilseeds on the farm
for a crop year may not exceed the difference between—
(i) the total acreage determined under paragraph
(1)(A) for all covered commodities for that crop year;
and
(ii) the total contract acreage determined under
paragraph (1)(B)(i).
(B) EFFECT OF NEGATIVE NUMBER.—If the subtraction
performed under subparagraph (A) results in a negative
number, the eligible oilseed acreage on the farm for that
crop year shall be zero for purposes of determining the
4-year average.
(C) OFFSET OF CONTRACT ACREAGE.—The owner of a
farm may increase the eligible acreage for an oilseed on
the farm by reducing the contract acreage determined
under paragraph (1)(B)(i) for 1 or more covered commodities
on an acre-for-acre basis, except that the total base acreage
for each oilseed on the farm may not exceed the 4-year
average of each oilseed determined under paragraph
(1)(B)(ii).
(3) INCLUSION OF ALL 4 YEARS IN AVERAGE.—For the purpose
of determining a 4-year acreage average under this subsection
for a farm, the Secretary shall not exclude any crop year
in which a covered commodity was not planted.
(4) TREATMENT
OF
MULTIPLE
PLANTING
OR
PREVENTED
PLANTING.—For the purpose of determining under paragraph
(1)(A) the acreage on a farm that producers planted or were
prevented from planting during the 1998 through 2001 crop
years to covered commodities, if the acreage that was planted
or prevented from being planted was devoted to another covered
commodity in the same crop year (other than a covered com-
modity produced under an established practice of double crop-
ping), the owner may elect the commodity to be used for that
crop year in determining the 4-year average, but may not
include both the initial commodity and the subsequent com-
modity.
(b) SINGLE ELECTION; TIME FOR ELECTION.—
(1) NOTICE OF ELECTION OPPORTUNITY.—As soon as prac-
ticable after the date of enactment of this Act, the Secretary
H. R. 2646—13
shall provide notice to owners of farms regarding their oppor-
tunity to make the election described in subsection (a). The
notice shall include the following:
(A) Notice that the opportunity of an owner to make
the election is being provided only once.
(B) Information regarding the manner in which the
election must be made and the time periods and manner
in which notice of the election must be submitted to the
Secretary.
(2) ELECTION DEADLINE.—Within the time period and in
the manner prescribed pursuant to paragraph (1), the owner
of a farm shall submit to the Secretary notice of the election
made by the owner under subsection (a).
(c) EFFECT
OF FAILURE TO MAKE ELECTION.—If the owner
of a farm fails to make the election under subsection (a) or fails
to timely notify the Secretary of the election made, as required
by subsection (b), the owner shall be deemed to have made the
election described in subsection (a)(1)(B) to determine base acres
for all covered commodities on the farm.
(d) APPLICATION OF ELECTION TO ALL COVERED COMMODITIES.—
The election made under subparagraph (A) or (B) of subsection
(a)(1), or deemed to be made under subsection (c), with respect
to a farm shall apply to all of the covered commodities on the
farm.
(e) TREATMENT OF CONSERVATION RESERVE CONTRACT ACRE-
AGE.—
(1) IN GENERAL.—The Secretary shall provide for an adjust-
ment, as appropriate, in the base acres for covered commodities
for a farm whenever either of the following circumstances
occurs:
(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 con-
servation reserve contract by the Secretary.
(2) SPECIAL PAYMENT RULES.—For the crop year in which
a base acres adjustment under paragraph (1) is first made,
the owner of the farm shall elect to receive either direct pay-
ments and counter-cyclical payments with respect to the acre-
age 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 covered com-
modity on a farm shall be equal to 85 percent of the base acres
for the covered commodity.
(g) PREVENTION OF EXCESS BASE ACRES.—
(1) REQUIRED REDUCTION.—If the sum of the base acres
for a farm, together with the acreage described in paragraph
(2), exceeds the actual cropland acreage of the farm, the Sec-
retary shall reduce the base acres for 1 or more covered
commodities for the farm or the base acres for peanuts for
the farm under subtitle C so that the sum of the base acres
and acreage described in paragraph (2) does not exceed the
actual cropland acreage of the farm.
(2) OTHER ACREAGE.—For purposes of paragraph (1), the
Secretary shall include the following:
H. R. 2646—14
(A) Any base acres for peanuts for the farm under
subtitle C.
(B) Any acreage on the farm enrolled in the conserva-
tion 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 con-
servation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(3) SELECTION
OF
ACRES.—The Secretary shall give the
owner of the farm the opportunity to select the base acres
or the base acres for peanuts for the farm under subtitle C
against which the reduction required by paragraph (1) will
be made.
(4) 
EXCEPTION
FOR
DOUBLE-CROPPED
ACREAGE.—In
applying paragraph (1), the Secretary shall make an exception
in the case of double cropping, as determined by the Secretary.
(5) COORDINATED
APPLICATION
OF
REQUIREMENTS.—The
Secretary shall take into account section 1302(f) when applying
the requirements of this subsection.
(h) PERMANENT REDUCTION IN BASE ACRES.—The owner of a
farm may reduce, at any time, the base acres for any covered
commodity for the farm. The reduction shall be permanent and
made in the manner prescribed by the Secretary.
SEC. 1102. ESTABLISHMENT OF PAYMENT YIELD.
(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making
direct 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.—Except as other-
wise provided in this section, the payment yield for each of the
2002 through 2007 crops of a covered commodity for a farm shall
be the farm program payment yield established for the 1995 crop
of the covered commodity under section 505 of the Agricultural
Act of 1949 (7 U.S.C. 1465), as adjusted by the Secretary to account
for any additional yield payments made with respect to that crop
under section 505(b)(2) of that Act.
(c) FARMS WITHOUT FARM PROGRAM PAYMENT YIELD.—In the
case of a farm for which a farm program payment yield is unavail-
able for a covered commodity (other than soybeans or other oilseeds),
the Secretary shall establish an appropriate payment yield for
the covered commodity on the farm taking into consideration the
farm program payment yields applicable to the commodity under
subsection (b) for similar farms, but before the yields for the similar
farms are updated as provided in subsection (e).
(d) PAYMENT YIELDS FOR OILSEEDS.—
(1) DETERMINATION OF AVERAGE YIELD.—In the case of soy-
beans and each other oilseed, the Secretary shall determine
the average yield per planted acre for the oilseed on a farm
for the 1998 through 2001 crop years, excluding any crop year
in which the acreage planted to the oilseed was zero.
(2) ADJUSTMENT FOR PAYMENT YIELD.—The payment yield
for a farm for an oilseed shall be equal to the product of
the following:
H. R. 2646—15
(A) The average yield for the oilseed determined under
paragraph (1).
(B) The ratio resulting from dividing the national aver-
age yield for the oilseed for the 1981 through 1985 crops
by the national average yield for the oilseed for the 1998
through 2001 crops.
(3) USE OF PARTIAL COUNTY AVERAGE YIELD.—If the yield
per planted acre for a crop of an oilseed for a farm for any
of the 1998 through 2001 crop years was less than 75 percent
of the county yield for that oilseed, the Secretary shall assign
a yield for that crop year equal to 75 percent of the county
yield for the purpose of determining the average under para-
graph (1).
(e) OPPORTUNITY TO PARTIALLY UPDATE YIELDS USED TO DETER-
MINE COUNTER-CYCLICAL PAYMENTS.—
(1) ELECTION TO UPDATE.—If the owner of a farm elects
to use the base acres calculation method described in section
1101(a)(1)(A), the owner shall also have a 1-time opportunity
to elect to use 1 of the methods described in paragraph (3)
to partially update the payment yields that would otherwise
be used in calculating any counter-cyclical payments for covered
commodities on the farm.
(2) TIME
FOR
ELECTION.—The election under paragraph
(1) shall be made at the same time and in the same manner
as the Secretary prescribes for the election required under
section 1101.
(3) METHODS OF UPDATING YIELDS.—If the owner of a farm
elects to update yields under this subsection, the payment
yield for a covered commodity on the farm, for the purpose
of calculating counter-cyclical payments only, shall be equal
to the yield determined using either of the following:
(A) The sum of the following:
(i) The payment yield applicable for direct pay-
ments for the covered commodity on the farm.
(ii) 70 percent of the difference between—
(I) the average yield per planted acre for the
crop of the covered commodity on the farm for
the 1998 through 2001 crop years, as determined
by the Secretary, excluding any crop year in which
the acreage planted to the crop of the covered
commodity was zero; and
(II) the payment yield applicable for direct
payments for the covered commodity on the farm.
(B) 93.5 percent of the average of the yield per planted
acre for the crop of the covered commodity on the farm
for the 1998 through 2001 crop years, as determined by
the Secretary, excluding any crop year in which the acreage
planted to the crop of the covered commodity was zero.
(4) USE OF PARTIAL COUNTY AVERAGE YIELD.—If the yield
per planted acre for a crop of the covered commodity for a
farm for any of the 1998 through 2001 crop years was less
than 75 percent of the county yield for that commodity, the
Secretary shall assign a yield for that crop year equal to 75
percent of the county yield for the purpose of determining
the average yield under paragraph (3).
(5) APPLICATION OF ELECTION AND METHOD TO ALL COVERED
COMMODITIES.—The owner of a farm may not elect the method
H. R. 2646—16
described in paragraph (3)(A) for 1 covered commodity on the
farm and the method described in paragraph (3)(B) for other
covered commodities on the farm.
SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.
(a) PAYMENT REQUIRED.—For each of the 2002 through 2007
crop years of each covered commodity, the Secretary shall make
direct payments to producers on farms for which payment yields
and base acres are established.
(b) PAYMENT RATE.—The payment rates used to make direct
payments with respect to covered commodities for a crop year
are as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.44 per bushel.
(9) Other oilseeds, $0.0080 per pound.
(c) PAYMENT AMOUNT.—The amount of the direct payment to
be paid to the 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 of the covered commodity on the
farm.
(3) The payment yield for the covered commodity for the
farm.
(d) TIME FOR PAYMENT.—
(1) IN
GENERAL.—The Secretary shall make direct
payments—
(A) in the case of the 2002 crop year, as soon as
practicable after the date of enactment of this Act; and
(B) in the case of each of the 2003 through 2007
crop years, not before October 1 of the calendar year in
which the crop of the covered commodity is harvested.
(2) ADVANCE PAYMENTS.—At the option of the producers
on a farm, up to 50 percent of the direct payment for a covered
commodity for any of the 2003 through 2007 crop years shall
be paid to the producers in advance. The producers shall select
the month within which the advance payment for a crop year
will be made. The month selected may be any month during
the period beginning on December 1 of the calendar year before
the calendar year in which the crop of the covered commodity
is harvested through the month within which the direct pay-
ment would otherwise be made. The producers may change
the selected month for a subsequent advance payment by pro-
viding advance notice to the Secretary.
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a producer on
a farm that receives an advance direct payment for a crop
year ceases to be a producer on that farm, or the extent to
which the producer shares in the risk of producing a crop
changes, before the date the remainder of the direct payment
is made, the producer shall be responsible for repaying the
Secretary the applicable amount of the advance payment, as
determined by the Secretary.
H. R. 2646—17
SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.
(a) PAYMENT REQUIRED.—For each of the 2002 through 2007
crop years for each covered commodity, the Secretary shall make
counter-cyclical payments to producers on farms for which payment
yields and base acres are established with respect to the covered
commodity if the Secretary determines that the effective price for
the covered commodity is less than the target price for the covered
commodity.
(b) EFFECTIVE PRICE.—For purposes of subsection (a), the effec-
tive 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 received by
producers during the 12-month marketing year for the
covered commodity, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for the covered commodity in effect for
the applicable period under subtitle B.
(2) The payment rate in effect for the covered commodity
under section 1103 for the purpose of making direct payments
with respect to the covered commodity.
(c) TARGET PRICE.—
(1) 2002 AND 2003 CROP YEARS.—For purposes of the 2002
and 2003 crop years, the target prices for covered commodities
shall be as follows:
(A) Wheat, $3.86 per bushel.
(B) Corn, $2.60 per bushel.
(C) Grain sorghum, $2.54 per bushel.
(D) Barley, $2.21 per bushel.
(E) Oats, $1.40 per bushel.
(F) Upland cotton, $0.7240 per pound.
(G) Rice, $10.50 per hundredweight.
(H) Soybeans, $5.80 per bushel.
(I) Other oilseeds, $0.0980 per pound.
(2) SUBSEQUENT CROP YEARS.—For purposes of each of the
2004 through 2007 crop years, the target prices for covered
commodities shall be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7240 per pound.
(G) Rice, $10.50 per hundredweight.
(H) Soybeans, $5.80 per bushel.
(I) Other oilseeds, $0.1010 per pound.
(d) PAYMENT RATE.—The payment rate used to make counter-
cyclical payments with respect to a covered commodity for a crop
year shall be equal to the difference between—
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for
the covered commodity.
(e) PAYMENT
AMOUNT.—If counter-cyclical payments are
required to be paid for any of the 2002 through 2007 crop years
of a covered commodity, the amount of the counter-cyclical payment
to be paid to the producers on a farm for that crop year shall
be equal to the product of the following:
H. R. 2646—18
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the
farm.
(3) The payment yield or updated payment yield for the
farm, depending on the election of the owner of the farm under
section 1102.
(f) TIME FOR PAYMENTS.—
(1) GENERAL RULE.—If the Secretary determines under sub-
section (a) that counter-cyclical payments are required to be
made under this section for the crop of a covered commodity,
the Secretary shall make the counter-cyclical payments for
the crop as soon as practicable after the end of the 12-month
marketing year for the covered commodity.
(2) AVAILABILITY OF PARTIAL PAYMENTS.—If, before the end
of the 12-month marketing year for a covered commodity, the
Secretary estimates that counter-cyclical payments will be
required for the crop of the covered commodity, the Secretary
shall give producers on a farm the option to receive partial
payments of the counter-cyclical payment projected to be made
for that crop of the covered commodity.
(3) TIME FOR PARTIAL PAYMENTS.—
(A) 2002 THROUGH 2006 CROP YEARS.—When the Sec-
retary makes partial payments available under paragraph
(2) for a covered commodity for any of the 2002 through
2006 crop years—
(i) the first partial payment for the crop year shall
be made not earlier than October 1, and, to the max-
imum extent practicable, not later than October 31,
of the calendar year in which the crop of the covered
commodity is harvested;
(ii) the second partial payment shall be made not
earlier than February 1 of the next calendar year;
and
(iii) the final partial payment shall be made as
soon as practicable after the end of the 12-month mar-
keting year for the covered commodity.
(B) 2007 CROP YEAR.—When the Secretary makes par-
tial payments available for a covered commodity for the
2007 crop year—
(i) the first partial payment shall be made after
completion of the first 6 months of the marketing year
for the covered commodity; and
(ii) the final partial payment shall be made as
soon as practicable after the end of the 12-month mar-
keting year for the covered commodity.
(4) AMOUNT OF PARTIAL PAYMENTS.—
(A) 2002 THROUGH 2006 CROP YEARS.—
(i) FIRST PARTIAL PAYMENT.—For each of the 2002
through 2006 crop years of a covered commodity, the
first partial payment under paragraph (3) to the pro-
ducers on a farm may not exceed 35 percent of the
projected counter-cyclical payment for the covered com-
modity for the crop year, as determined by the Sec-
retary.
(ii) SECOND PARTIAL PAYMENT.—The second partial
payment for a covered commodity for a crop year may
not exceed the difference between—
H. R. 2646—19
(I) 70 percent of the projected counter-cyclical
payment (including any revision thereof) for the
crop of the covered commodity; and
(II) the amount of the payment made under
clause (i).
(iii) FINAL PAYMENT.—The final payment for a cov-
ered commodity for a crop year shall be equal to the
difference between—
(I) the actual counter-cyclical payment to be
made to the producers for the covered commodity
for that crop year; and
(II) the amount of the partial payments made
to the producers under clauses (i) and (ii) for that
crop year.
(B) 2007 CROP YEAR.—
(i) FIRST
PARTIAL
PAYMENT.—For the 2007 crop
year, the first partial payment under paragraph (3)
to the producers on a farm may not exceed 40 percent
of the projected counter-cyclical payment for the cov-
ered commodity for the crop year, as determined by
the Secretary.
(ii) FINAL PAYMENT.—The final payment for the
2007 crop year shall be equal to the difference
between—
(I) the actual counter-cyclical payment to be
made to the producers for the covered commodity
for that crop year; and
(II) the amount of the partial payment made
to the producers under clause (i).
(5) REPAYMENT.—The producers on a farm that receive
a partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total
of the partial payments exceed the actual counter-cyclical pay-
ment to be made for the covered commodity for that crop
year.
SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF
PROVISION 
OF 
DIRECT 
PAYMENTS 
AND 
COUNTER-
CYCLICAL PAYMENTS.
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—
(1) REQUIREMENTS.—Before the producers on a farm may
receive direct payments or counter-cyclical payments with
respect to the farm, the producers shall agree, during the
crop year for which the payments are made and in exchange
for the payments—
(A) to 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.);
(B) to comply with applicable wetland protection
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 1106;
(D) to use the land on the farm, in a quantity equal
to the attributable base acres for the farm and any base
acres for peanuts for the farm under subtitle C for an
H. R. 2646—20
agricultural or conserving use, and not for a non-
agricultural commercial or industrial use, as determined
by the Secretary; and
(E) to effectively control noxious weeds and otherwise
maintain the land in accordance with sound agricultural
practices, as determined by the Secretary, if the agricul-
tural or conserving use involves the noncultivation of any
portion of the land referred to in subparagraph (D).
(2) COMPLIANCE.—The Secretary may issue such rules as
the Secretary considers necessary to ensure producer compli-
ance with the requirements of paragraph (1).
(3) MODIFICATION.—At the request of the transferee or
owner, the Secretary may modify the requirements of this sub-
section if the modifications are consistent with the objectives
of this subsection, as determined by the Secretary.
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.—
(1) TERMINATION.—Except as provided in paragraph (2),
a transfer of (or change in) the interest of the producers on
a farm in base acres for which direct 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 obliga-
tions under subsection (a). The termination shall take effect
on the date determined by the Secretary.
(2) EXCEPTION.—If a producer entitled to a direct 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 rules issued by the
Secretary.
(c) ACREAGE REPORTS.—As a condition on the receipt of any
benefits under this subtitle or subtitle B, the Secretary shall require
producers on a farm to submit to the Secretary annual acreage
reports with respect to all cropland on the farm.
(d) TENANTS AND SHARECROPPERS.—In carrying out this sub-
title, the Secretary shall provide adequate safeguards to protect
the interests of tenants and sharecroppers.
(e) SHARING OF PAYMENTS.—The Secretary shall provide for
the sharing of direct payments and counter-cyclical payments among
the producers on a farm on a fair and equitable basis.
SEC. 1106. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS.—Subject to subsection (b), any com-
modity or crop may be planted on base acres on a farm.
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.—
(1) GENERAL LIMITATION.—The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on
base acres unless the commodity, if planted, is destroyed before
harvest.
(2) TREATMENT
OF
TREES
AND
OTHER
PERENNIALS.—The
planting of an agricultural commodity specified in paragraph
(3) that is produced on a tree or other perennial plant shall
be prohibited on base acres.
(3) COVERED AGRICULTURAL COMMODITIES.—Paragraphs (1)
and (2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
H. R. 2646—21
(C) Wild rice.
(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall
not limit the planting of an agricultural commodity specified in
paragraph (3) of that subsection—
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the Secretary,
in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history
of planting agricultural commodities specified in subsection
(b)(3) on base acres, except that direct payments and counter-
cyclical payments shall be reduced by an acre for each acre
planted to such an agricultural commodity; or
(3) by the producers on a farm that the Secretary deter-
mines has an established planting history of a specific agricul-
tural commodity specified in subsection (b)(3), except that—
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995
or 1998 through 2001 crop years (excluding any crop year
in which no plantings were made), as determined by the
Secretary; and
(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to such
agricultural commodity.
(d) SPECIAL RULE FOR 2002 CROP YEAR.—For the 2002 crop
year only, if the calculation of base acres under section 1101(a)
results in total base acres for a farm in excess of the contract
acreage (as defined in section 102 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7202)) for the
farm used to calculate the fiscal year 2002 payment authorized
under section 114 of such Act (7 U.S.C. 7214), paragraphs (1)
and (2) of subsection (b) shall not limit the harvesting of an agricul-
tural commodity specified in paragraph (3) of that subsection on
the excess base acres, except that direct payments and counter-
cyclical payments for the 2002 crop year shall be reduced by an
acre for each acre of the excess base acres planted to such an
agricultural commodity.
SEC. 1107. RELATION TO REMAINING PAYMENT AUTHORITY UNDER
PRODUCTION FLEXIBILITY CONTRACTS.
(a) TERMINATION OF SUPERSEDED PAYMENT AUTHORITY.—Not-
withstanding section 113(a)(7) of the Federal Agriculture Improve-
ment and Reform Act of 1996 (7 U.S.C. 7213(a)(7)) or any other
provision of law, the Secretary shall not make payments for fiscal
year 2002 after the date of enactment of this Act under a production
flexibility contract entered into under section 111 of that Act (7
U.S.C. 7211) unless requested by the producer that is a party
to the contract.
(b) CONTRACT PAYMENTS MADE BEFORE ENACTMENT.—If a pro-
ducer receives all or any portion of the payment authorized for
fiscal year 2002 under a production flexibility contract, the Sec-
retary shall reduce the amount of the direct payment otherwise
due the producer for the 2002 crop year under section 1103 by
the amount of the fiscal year 2002 payment received by the producer
under the production flexibility contract.