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(2) Subsections (a) through (h) of section 358a
(7 U.S.C. 1358a).
(3) Subsections (a), (b), (d), and (e) of section
358d (7 U.S.C. 1359).
(4) Part I of subtitle C of title III (7 U.S.C.
1361 et seq.).
(5) Section 371 (7 U.S.C. 1371).
(l) EXTENSION
OF
REPORTING
AND
RECORD-
KEEPING REQUIREMENTS.—Section 373(a) of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is
amended by inserting after the first sentence the following
new sentence: ‘‘In the case of the 1996 through 2002
crops of peanuts, this subsection shall also apply to all
producers engaged in the production of peanuts.’’.
(m) SUSPENSION OF CERTAIN PRICE SUPPORT PRO-
VISIONS.—Section 101 of the Agricultural Act of 1949 (7
U.S.C. 1441) shall not apply to the 1996 through 2002
crops of peanuts.
SEC. 1302. AVAILABILITY OF LOANS FOR PROCESSORS OF
SUGARCANE AND SUGAR BEETS.
(a) SUGAR LOANS.—Section 206 of the Agricultural
Act of 1949 (7 U.S.C. 1446g) is amended to read as fol-
lows:
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‘‘SEC. 206. ASSURANCE OF ADEQUATE SUGAR SUPPLY.
‘‘(a) SUGARCANE PROCESSOR LOANS.—For the 1996
through 2002 crops of domestically grown sugarcane, the
Secretary shall make loans available to sugarcane proc-
essors on raw cane sugar processed from such crops. Sub-
ject to subsection (c), loans under this subsection shall be
made at a rate equal to the rate provided under this sec-
tion, as in effect on the day before the date of the enact-
ment of the Agricultural Reconciliation Act of 1995, for
raw cane sugar produced from the 1995 crop of domesti-
cally grown sugarcane.
‘‘(b) SUGAR BEETS.—For the 1996 through 2002
crops of domestically grown sugar beets, the Secretary
shall make loans available to sugar beet processors on re-
fined beet sugar processed from such crops. Subject to
subsection (c), loans under this subsection shall be made
at a rate equal to the rate provided under this section,
as in effect on the day before the date of the enactment
of the Agricultural Reconciliation Act of 1995, for refined
beet sugar produced from the 1995 crop of domestically
grown sugar beets.
‘‘(c) REDUCTION IN LOAN RATES.—
‘‘(1) REDUCTION
REQUIRED.—The Secretary
shall reduce the loan rate specified in subsection (a)
for domestically grown sugarcane and subsection (b)
for domestically grown sugar beets if the Secretary
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determines that negotiated reductions in export sub-
sidies and domestic subsidies provided for sugar of
the European Union and other major sugar growing,
producing, and exporting countries in the aggregate
exceed the commitments made as part of the Agree-
ment on Agriculture.
‘‘(2) EXTENT OF REDUCTION.—The Secretary
shall not reduce the loan rate under subsection (a)
or (b) below a rate that provides an equal measure
of support to that provided by the European Union
and other major sugar growing, producing, and ex-
porting countries, based on an examination of both
domestic and export subsidies subject to reduction in
the Agreement on Agriculture.
‘‘(3) ANNOUNCEMENT
OF
REDUCTION.—The
Secretary shall announce any loan rate reduction to
be made under this subsection as far in advance as
is practicable.
‘‘(4) MAJOR SUGAR COUNTRIES DEFINED.—For
purposes of this subsection, the term ‘major sugar
growing, 
producing, 
and 
exporting 
countries’
means—
‘‘(A) the countries of the European Union;
and
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‘‘(B) the ten foreign countries not covered
by subparagraph (A) that the Secretary deter-
mines produce the greatest amount of sugar.
‘‘(5) 
AGREEMENT
ON
AGRICULTURE
DE-
FINED.—For purposes of this subsection and sub-
section (d), the term ‘Agreement on Agriculture’
means the Agreement on Agriculture referred to in
section 101(d)(2) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(2)).
‘‘(d) LOAN TYPE; PROCESSOR ASSURANCES.—
‘‘(1) RECOURSE LOANS.—Subject to paragraph
(2), the Secretary shall carry out this section
through the use of recourse loans.
‘‘(2) SWITCH TO NONRECOURSE LOANS.—
‘‘(A) IN GENERAL.—During any fiscal year
in which the tariff rate quota for imports of
sugar into the United States is set at, or is in-
creased to, a level that exceeds the loan modi-
fication threshold, the Secretary shall carry out
this section by making available nonrecourse
loans. Any recourse loan previously made avail-
able by the Secretary under this section during
such fiscal year shall be modified by the Sec-
retary into a nonrecourse loan.
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‘‘(B) LOAN
MODIFICATION
THRESHOLD
DEFINED.—For the purposes of this subsection,
the term ‘loan modification threshold’ means—
‘‘(i) for fiscal years 1996 and 1997,
1,257,000 short tons raw value; and
‘‘(ii) for fiscal years after fiscal year
1997, 103 percent of the loan modification
threshold for the previous fiscal year.
‘‘(3) PROCESSOR
ASSURANCES.—If the Sec-
retary is required under paragraph (2) to make
nonrecourse loans available during a fiscal year or to
modify recourse loans into nonrecourse loans, the
Secretary shall obtain from each processor that re-
ceives a loan under this section such assurances as
the Secretary considers adequate that the processor
will provide an appropriate minimum payment for
sugar beets and sugarcane delivered by producers
served by the processor. The Secretary may establish
appropriate minimum payments for purposes of this
paragraph.
‘‘(4) ANNOUNCEMENT
OF
THRESHOLD.—As
soon as practicable, but not later than September 1
of each fiscal year, the Secretary shall announce the
loan modification threshold that shall apply under
paragraph (2) for the subsequent fiscal year.
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‘‘(e) LENGTH OF LOANS.—Each loan made under
this section shall be for a term of three months, and may
be extended for additional three-month terms, except
that—
‘‘(1) no loan may have a cumulative term in ex-
cess of nine months or a term that extends beyond
September 30 of the fiscal year in which the loan is
made; and
‘‘(2) a processor may terminate a loan and re-
deem the collateral for the loan at any time by pay-
ment in full of principal, interest, and fees then
owing.
‘‘(f) USE OF COMMODITY CREDIT CORPORATION.—
The Secretary shall use the funds, facilities, and authori-
ties of the Commodity Credit Corporation to carry out this
section.
‘‘(g) MARKETING ASSESSMENT.—
‘‘(1) SUGARCANE.—Effective only for market-
ings of raw cane sugar during fiscal years 1996
through 2003, the first processor of sugarcane shall
remit to the Commodity Credit Corporation a non-
refundable marketing assessment for each pound of
raw cane sugar, processed by the processor from do-
mestically produced sugarcane or sugarcane molas-
ses, that has been marketed. The assessment rate