I
107TH CONGRESS
1ST SESSION
H. R. 2164
To amend the Agricultural Market Transition Act to gradually reduce the
loan rate for peanuts, to repeal peanut quotas for the 2004 and subse-
quent crops, and to require the Secretary of Agriculture to purchase
peanuts and peanut products for nutrition programs only at the world
market price, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 13, 2001
Mr. SHAYS (for himself, Mr. KANJORSKI, Mr. KOLBE, Mr. TOOMEY, Mr.
ENGLISH, Mr. MILLER of Florida, Mr. BASS, Mr. BARRETT of Wisconsin,
Mr. SUNUNU, Mr. BORSKI, Mr. SMITH of New Jersey, Mr. SENSEN-
BRENNER, Mr. LIPINSKI, Mr. KIRK, Mr. UPTON, Mr. SOUDER, Mr.
GEKAS, Mr. FRELINGHUYSEN, Mr. BRADY
of Pennsylvania, Mr.
PALLONE, Mrs. ROUKEMA, Mr. BLUMENAUER, Mr. HUTCHINSON, Mrs.
KELLY, Mr. ROHRABACHER, Mr. CRANE, Mr. WAMP, Mr. RYAN of Wis-
consin, Mr. CAPUANO, Mrs. MALONEY of New York, Mrs. MORELLA, Mr.
PITTS, Mr. GOSS, Mr. LUTHER, Mr. FRANK, Mr. ALLEN, Mr. KELLER,
Mrs. BIGGERT, Mr. LOBIONDO, Mr. ROYCE, Mr. GUTIERREZ, and Mr.
GEORGE MILLER of California) introduced the following bill; which was
referred to the Committee on Agriculture, and in addition to the Com-
mittee on Education and the Workforce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Agricultural Market Transition Act to gradu-
ally reduce the loan rate for peanuts, to repeal peanut
quotas for the 2004 and subsequent crops, and to require
the Secretary of Agriculture to purchase peanuts and
peanut products for nutrition programs only at the world
market price, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REDUCTION IN LOAN RATES FOR PEANUTS.
(a) LOAN RATE REDUCTION.—Subsection (a) of sec-
tion 155 of the Agricultural Market Transition Act (7
U.S.C. 7271) is amended by striking paragraph (2) and
inserting the following new paragraph:
‘‘(2) LOAN RATE.—The national average quota
loan rate for quota peanuts shall be as follows:
‘‘(A) $610 per ton for the 2001 crop.
‘‘(B) $550 per ton for the 2002 crop.
‘‘(C) $500 per ton for the 2003 crop.’’.
(b) EXTENSION OF MARKETING ASSESSMENT.—Sub-
section (g) of such section is amended by striking ‘‘2002’’
both places it appears and inserting ‘‘2003’’.
(c) CONFORMING AMENDMENT.—Subsection (h) of
such section is amended by striking ‘‘2002’’ and inserting
‘‘2003’’.
(d) CONTINUED SUSPENSION OF CERTAIN PEANUT
QUOTA PROVISIONS.—The following provisions of the Ag-
ricultural Adjustment Act of 1938 shall not be applicable
to the 2003 crops of peanuts:
(1) Subsections (a) through (j) of section 358
(7 U.S.C. 1358).
(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.
1361–1368).
SEC. 2. NONRECOURSE LOANS FOR 2004 AND SUBSEQUENT
CROPS OF PEANUTS.
(a) LOAN
PROGRAM.—The Agricultural Market
Transition Act is amended by inserting after section 155
(7 U.S.C. 7271) the following new section:
‘‘SEC. 155A. PEANUT PROGRAM FOR 2004 AND SUBSEQUENT
CROPS.
‘‘(a) AVAILABILITY OF LOANS.—The Secretary shall
make nonrecourse loans available to producers of peanuts
for each of the 2004 and subsequent crops of peanuts.
‘‘(b) LOAN RATE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Secretary shall offer nonrecourse loans to peanut
producers under subsection (a) at a rate equal to not
less than 85 percent of the simple average price re-
ceived by producers for peanuts, as determined by
the Secretary, during the marketing year for each of
the immediately preceding 5 crops of peanuts, ex-
cluding the year in which the average price was the
highest and the year in which the average price was
the lowest during the period.
‘‘(2) MAXIMUM LOAN RATE.—Notwithstanding
paragraph (1), the loan rate under subsection (a)
shall not exceed $350 per ton.
‘‘(3) ANNOUNCEMENT.—The Secretary shall
announce the loan rate for each crop of peanuts not
later than the February 15 preceding the marketing
year for which the loan rate is being determined.
‘‘(c) INSPECTION, HANDLING, OR STORAGE.—The
loan rate determined under subsection (b) for a crop of
peanuts shall not be reduced by any deduction for inspec-
tion, handling, or storage.
‘‘(d) LOCATION AND OTHER FACTORS.—The Sec-
retary may make adjustments in the loan rate determined
under subsection (b) for the location of peanuts and such
other factors as are authorized by section 403(a) of the
Agricultural Act of 1949 (7 U.S.C. 1423).
‘‘(e) NO NET COST REQUIREMENT.—Loans under
subsection (a) shall be administered at no net cost to the
Commodity Credit Corporation.
‘‘(f) MARKETING
OF PEANUTS OWNED
OR CON-
TROLLED BY COMMODITY CREDIT CORPORATION.—Any
peanuts owned or controlled by the Commodity Credit
Corporation may be made available for domestic edible
use, in accordance with regulations issued by the Sec-
retary, so long as doing so results in no net cost to the
Commodity Credit Corporation.
‘‘(g) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall carry out the program authorized by this sec-
tion through the Commodity Credit Corporation.’’.
(b) REPEAL OF OTHER PEANUT PRICE SUPPORT AU-
THORITY.—The Agricultural Act of 1949 (7 U.S.C. 1441
et seq.) is amended—
(1) in section 101(b) (7 U.S.C. 1441(b)), by
striking ‘‘and peanuts’’; and
(2) in section 408 (7 U.S.C. 1428)—
(A) in subsection (c), by striking ‘‘pea-
nuts,’’; and
(B) in subsection (d), by inserting before
the period at the end the following: ‘‘or pea-
nuts’’.
SEC. 3. ELIMINATION OF PEANUT QUOTAS FOR 2004 AND
SUBSEQUENT CROPS OF PEANUTS.
(a) IN GENERAL.—Part VI of subtitle B of title III
of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1357 et seq.) is repealed.
(b) CONFORMING AMENDMENTS.—
(1) DEFINITIONS.—Section 301(b) of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1301(b))
is amended—
(A) in paragraph (3)(A), by striking ‘‘corn,
rice, and peanuts’’ and inserting ‘‘corn and
rice’’;
(B) in paragraph (6), by striking subpara-
graph (C);
(C) in paragraph (10)(A)—
(i) by striking ‘‘wheat, and peanuts’’
and inserting ‘‘and wheat’’; and
(ii) by striking ‘‘; 20 per centum in
the case of wheat; and 15 per centum in
the case of peanuts’’ and inserting ‘‘; and
20 percent in the case of wheat’’;
(D) in paragraph (13)—
(i) by striking subparagraphs (B) and
(C); and
(ii) in subparagraph (G), by striking
‘‘or peanuts’’ both places it appears; and
(E) in paragraph (16)(A), by striking
‘‘rice, and peanuts’’ and inserting ‘‘and rice’’.
(2) ADMINISTRATIVE PROVISIONS.—Section 361
of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1361) is amended by striking ‘‘peanuts,’’.
(3) ADJUSTMENT OF QUOTAS.—Section 371 of
the Agricultural Adjustment Act of 1938 (7 U.S.C.
1371) is amended—
(A) in the first sentence of subsection (a),
by striking ‘‘peanuts,’’; and
(B) in the first sentence of subsection (b),
by striking ‘‘peanuts’’.
(4) REPORTS AND RECORDS.—Section 373 of
the Agricultural Adjustment Act of 1938 (7 U.S.C.
1373) is amended—
(A) in subsection (a), by striking the first
sentence and inserting the following new sen-
tence: ‘‘This subsection shall apply to ware-
housemen, processors, and common carriers of
corn, wheat, cotton, rice, or tobacco, and all
ginners of cotton, all persons engaged in the
business of purchasing corn, wheat, cotton, rice,
or tobacco from producers, and all persons en-
gaged in the business of redrying, prizing, or
stemming tobacco for producers.’’; and
(B) in subsection (b), by striking ‘‘pea-
nuts,’’.
(5) REGULATIONS.—Section 375(a) of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1375(a))
is amended by striking ‘‘peanuts,’’.
(6) EMINENT DOMAIN.—The first sentence of
section 378(c) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1378(c)) is amended by striking
‘‘cotton, tobacco, and peanuts,’’ and inserting ‘‘cot-
ton and tobacco,’’.
(c) LIABILITY.—A provision of this section or an
amendment made by this section shall not affect the liabil-
ity of any person under any provision of law as in effect
before the application of the provision of this section or
the amendment in accordance with this section.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect October 1, 2003, and shall
apply with respect to the 2004 and subsequent crops of
peanuts.
SEC. 4. PURCHASE OF PEANUTS FOR NUTRITION PRO-
GRAMS.
Section 14 of the National School Lunch Act (42
U.S.C. 1762a) is amended by adding at the end the fol-
lowing:
‘‘(h) PURCHASE OF PEANUTS FOR NUTRITION PRO-
GRAMS.—
‘‘(1) DEFINITIONS.—In this subsection—
‘‘(A) ADDITIONAL
PEANUTS.—The term
‘additional peanuts’ has the meaning given the
term in section 358–1(e) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358–1(e)).
‘‘(B) COVERED PROGRAM.—The term ‘cov-
ered program’ means—
‘‘(i) a program established under this
Act;
‘‘(ii) a program established under the
Child Nutrition Act of 1966 (42 U.S.C.
1771 et seq.);
‘‘(iii) the emergency food assistance
program established under the Emergency
Food Assistance Act of 1983 (7 U.S.C.
7501 et seq.);
‘‘(iv) the food distribution program on
Indian reservations established under sec-
tion 4(b) of the Food Stamp Act of 1977
(7 U.S.C. 2013(b));
‘‘(v) the commodity distribution pro-
gram established under section 4 of the
Agriculture and Consumer Protection Act
of 1973 (Public Law 93–86; 7 U.S.C. 612c
note);
‘‘(vi) the commodity supplemental
food program established under section 5
of the Agriculture and Consumer Protec-
tion Act of 1973 (Public Law 93–86; 7
U.S.C. 612c note); and
‘‘(vii) a nutrition program carried out
under part C of title III of the Older
Americans Act of 1965 (42 U.S.C. 3030e
et seq.).
‘‘(2) PURCHASES.—Notwithstanding any other
provision of law, in purchasing peanuts or peanut
products to carry out a covered program, the Sec-
retary shall—
‘‘(A) purchase the peanuts or peanut prod-
ucts at a price that is not more than the pre-
vailing world market price for peanuts or pea-
nut products produced in the United States, as
determined by the Secretary; and
‘‘(B) in the case of peanut purchases, pur-
chase only additional peanuts.
‘‘(3) DOMESTIC EDIBLE USE.—Notwithstanding
any other provision of law, additional peanuts pur-
chased by the Secretary to carry out a covered pro-
gram shall not be considered to be peanuts for do-
mestic edible use under the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1281 et seq.) or Agricultural
Market Transition Act (7 U.S.C. 7201 et seq.).