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, de-
coupled 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
commodities.
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
cotton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for wool and
mohair.
Sec. 131. Availability of nonrecourse marketing assistance loans for honey.
Sec. 132. Producer retention of erroneously paid loan deficiency payments and
marketing loan gains.
Subtitle C—Other Commodities
CHAPTER 1—DAIRY
Sec. 141. Milk price support program.
Sec. 142. Repeal of recourse loan program for processors.
Sec. 143. Extension of dairy export incentive and dairy indemnity programs.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product mandatory reporting.
Sec. 146. Funding of dairy promotion and research program.
Sec. 147. Study of national dairy policy.
CHAPTER 2—SUGAR
Sec. 151. Sugar program.
Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938 re-
garding 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, de-
coupled 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.
Sec. 188. Report on effect of certain farm program payments on economic via-
bility of producers and farming infrastructure.
TITLE II—CONSERVATION
Subtitle A—Environmental Conservation Acreage Reserve
Program
Sec. 201. General provisions.
Subtitle B—Conservation Reserve Program
Sec. 211. Reauthorization.
Sec. 212. Enrollment.
Sec. 213. Duties of owners and operators.
Sec. 214. Reference to conservation reserve payments.
Sec. 215. Expansion of pilot program to all States.
Subtitle C—Wetlands Reserve Program
Sec. 221. Enrollment.
Sec. 222. Easements and agreements.
Sec. 223. Duties of the Secretary.
Sec. 224. Changes in ownership; agreement modification; termination.
Subtitle D—Environmental Quality Incentives Program
Sec. 231. Purposes.
Sec. 232. Definitions.
Sec. 233. Establishment and administration.
Sec. 234. Evaluation of offers and payments.
Sec. 235. Environmental Quality Incentives Program plan.
Sec. 236. Duties of the Secretary.
Sec. 237. Limitation on payments.
Sec. 238. Ground and surface water conservation.
Subtitle E—Funding and Administration
Sec. 241. Reauthorization.
Sec. 242. Funding.
Sec. 243. Allocation for livestock production.
Sec. 244. Administration and technical assistance.
Subtitle F—Other Programs
Sec. 251. Private grazing land and conservation assistance.
Sec. 252. Wildlife Habitat Incentives Program.
Sec. 253. Farmland Protection Program.
Sec. 254. Resource Conservation and Development Program.
Sec. 255. Grassland Reserve Program.
Sec. 256. Farmland Stewardship Program.
Sec. 257. Small Watershed Rehabilitation Program.
Sec. 258. Provision of assistance for Repaupo Creek Tide Gate and Dike Res-
toration Project, New Jersey.
Subtitle G—Repeals
Sec. 261. Provisions of the Food Security Act of 1985.
Sec. 262. National Natural Resources Conservation Foundation Act.
TITLE III—TRADE
Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Surplus commodities for developing or friendly countries.
Sec. 304. Export Enhancement Program.
Sec. 305. Foreign Market Development Cooperator Program.
Sec. 306. Export Credit Guarantee Program.
Sec. 307. Food for Peace (Public Law 480).
Sec. 308. Emerging markets.
Sec. 309. Bill Emerson Humanitarian Trust.
Sec. 310. Technical assistance for specialty crops.
Sec. 311. Farmers to Africa and the Caribbean Basin.
Sec. 312. George McGovern–Robert Dole International Food for Education and
Child Nutrition Program.
Sec. 313. Study on fee for services.
Sec. 314. National export strategy report.
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 con-
ducted.
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. Evaluations of direct and guaranteed loan programs.
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.
Sec. 522. Temporary suspension of foreclosure on certain real property owned
by, and recovery of certain payments from, borrowers with
shared appreciation arrangements.
Sec. 523. Authority to make business and industry guaranteed loans for farm-
er-owned projects that add value to or process agricultural
products.
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 de-
velopment 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 en-
ergy 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 re-
gional 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
seeking to modernize or expand.
Sec. 619. Intangible assets and subordinated unsecured debt required to be
considered in determining eligibility of farmer-owned coopera-
tive 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.
Sec. 621. Rural water and waste facility grants.
Sec. 622. Rural water circuit rider program.
Sec. 623. Rural water grassroots source water protection program.
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 pro-
gram.
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 edu-
cation 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 Econom-
ics Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols and in-
dustrial 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 appropria-
tions.
Sec. 740. Cotton classification services.
Sec. 740A. Critical agricultural materials research.
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. 749A. Matching funds requirement for research and extension activities
for the United States territories.
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.
Sec. 754. Policy research centers.
Subtitle C—Related Matters
Sec. 761. Resident instruction at land-grant colleges in United States terri-
tories.
Sec. 762. Declaration of extraordinary emergency and resulting authorities.
Sec. 763. Agricultural biotechnology research and development for the devel-
oping world.
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
Information 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 facili-
ties.
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—Other Matters
Sec. 921. Hazardous fuel reduction grants to prevent wildfire disasters and
transform hazardous fuels to electric energy, useful heat, or
transportation fuels.
Sec. 922. Bioenergy program.
Sec. 923. Availability of section 32 funds.
Sec. 924. Seniors farmers’ market nutrition program.
Sec. 925. Department of Agriculture authorities regarding caneberries.
Sec. 926. National Appeals Division.
Sec. 927. Outreach and assistance for socially disadvantaged farmers and
ranchers.
Sec. 928. Equal treatment of potatoes and sweet potatoes.
Sec. 929. Reference to sea grass and sea oats as crops covered by noninsured
crop disaster assistance program.
Sec. 930. Operation of Graduate School of Department of Agriculture.
Sec. 931. Assistance for livestock producers.
Sec. 932. Compliance with Buy American Act and sense of Congress regarding
purchase of American-made equipment, products, and services
using funds provided under this Act.
Sec. 933. Report regarding genetically engineered foods.
Sec. 934. Market name for pangasius fish species.
Sec. 935. Program of public education regarding use of biotechnology in pro-
ducing food for human consumption.
Sec. 936. GAO study.
Sec. 937. Interagency Task Force on Agricultural Competition.
Sec. 938. Authorization for additional staff and funding for the Grain Inspec-
tion, Packers and Stockyards Administration.
Sec. 939. Enforcement of the humane methods of Slaughter Act of 1958.
Sec. 940. Penalties and foreign commerce provisions of the Animal Welfare
Act.
Sec. 941. Prohibition on interstate movement of animals for animal fighting.
Sec. 942. Renewable energy resources.
Sec. 943. Use of amounts provided for fixed, decoupled payments to provide
necessary funds for rural development programs.
Sec. 944. Country of origin labeling of perishable agricultural commodities.
Sec. 945. Unlawful stockyard practices involving nonambulatory livestock.
Sec. 946. Annual report on imports of beef and pork.
TITLE I—COMMODITY
PROGRAMS
SEC. 100. DEFINITIONS.
In this title (other than chapter 3 of 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 103
with respect 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
oilseeds.
(5) EFFECTIVE
PRICE.—The term ‘‘effective
price’’, with respect to a covered commodity for a
crop year, means the price calculated by the Sec-
retary under section 105 to determine whether
counter-cyclical 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 oil-
seed’’ means a crop of sunflower seed, rapeseed,
canola, safflower, flaxseed, mustard seed, or, if des-
ignated by the Secretary, another oilseed.
(9) PAYMENT
ACRES.—The term ‘‘payment
acres’’ means 85 percent of the base acres of a cov-
ered commodity on a farm, as established under sec-
tion 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 share-
cropper who shares in the risk of producing a crop
and who 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.
(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 oil-
seeds) of a covered commodity used to determine the
payment 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
Payments
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 pay-
ments 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 safe-
guards to protect the interests of tenants and share-
croppers.
(c) SHARING OF PAYMENTS.—The Secretary shall
provide 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 pur-
pose of making fixed decoupled payments and counter-cy-
clical 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
commodity 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
commodity on the farm taking in consideration the farm
program payment yields applicable to the commodity
under subsection (b) for similar farms in the area.
(d) PAYMENT YIELDS FOR OILSEEDS.—
(1) DETERMINATION OF AVERAGE YIELD.—In
the case of soybeans and each other oilseed, the Sec-
retary shall determine the average yield for the oil-
seed on a farm for the 1998 through 2001 crop
years, excluding any crop year in which the acreage
planted to the oilseed was zero. If, for any of these
four crop years in which the oilseed was planted, the
farm would have satisfied the eligibility criteria es-
tablished to carry out section 1102 of the Agri-
culture, Rural Development, Food and Drug Admin-
istration, 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) ADJUSTMENT FOR PAYMENT YIELD.—The
payment yield for a farm for an oilseed shall be
equal to the product of the following:
(A) The average yield for the oilseed deter-
mined under paragraph (1).
(B) The ratio resulting from dividing the
national average yield for the oilseed for the
1981 through 1985 crops by the national aver-
age yield for the oilseed for 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
decoupled payments and counter-cyclical payments with
respect 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 commod-
ities 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 pur-
poses during crop years 1998, 1999, 2000, and
2001 and any acreage on the farm that the pro-
ducers were prevented 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 de-
termined by the Secretary.
(2) 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
that, subject to section 109, would be made under
section 114 of such Act (7 U.S.C. 7214) for the cov-
ered commodity on the farm.
(b) SINGLE ELECTION; TIME FOR ELECTION.—The
opportunity 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
subsection (a), or fail to timely notify the Secretary of the
selected option as required by subsection (b), the pro-
ducers shall be deemed to have made the election described
in subsection (a)(2) to determine base acres for all covered
commodities 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 de-
scribed in subsection (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 sub-
section (a)(2), the Secretary shall provide for an ad-
justment in the base acres for the farm whenever ei-
ther of the following circumstances occur:
(A) A conservation reserve contract en-
tered into under section 1231 of the Food Secu-
rity 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
Secretary.
(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 sub-
section or a prorated payment under the conserva-
tion 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 BASE 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 crop-
land acreage of the farm, the Secretary shall reduce
the quantity of base acres for one or more covered
commodities for the farm or peanut acres for the
farm as necessary so that the sum of the base acres
and acreage described in paragraph (2) does not ex-
ceed the actual cropland acreage of the farm. The
Secretary shall give the producers on the farm the
opportunity to select 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 ag-
ricultural commodity on the acreage.
(3) EXCEPTION FOR DOUBLE-CROPPED ACRE-
AGE.—In applying paragraph (1), the Secretary
shall make an exception in the case of double crop-
ping, as determined by the Secretary.
(3) The payment yield for the covered com-
modity for the farm.
(d) TIME FOR PAYMENT.—
(1) GENERAL
RULE.—Fixed, decoupled pay-
ments 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
eligible producer, 50 percent of the fixed, decoupled
payment for a fiscal year shall be paid on a date se-
lected 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
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
responsible for repaying the Secretary the full
amount of the advance payment.
SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAY-
MENTS.
(a) PAYMENT REQUIRED.—The Secretary shall make
counter-cyclical payments with respect to a covered com-
modity whenever the Secretary determines that the effec-
tive 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
making 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
commodity 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 com-
modity on the farm.
(3) The payment yield for the covered com-
modity 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
permit, and, if so permitted, an eligible producer
may elect to receive, up to 40 percent of the pro-
jected counter-cyclical payment, as determined by
the Secretary, 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 producer shall repay to the Secretary the
amount, if any, by which the partial payment ex-
ceeds the actual counter-cyclical payment to be made
for that marketing year.
(g) SPECIAL RULE FOR CURRENTLY UNDESIGNATED
OILSEED.—If the Secretary uses the authority under sec-
tion 100(8) to designate another oilseed as an oilseed for
which counter-cyclical payments may be made, the Sec-
retary may modify the target price specified in subsection
(c)(9) that would otherwise apply to that oilseed as the
Secretary considers appropriate.
(h) SPECIAL RULE FOR BARLEY USED ONLY FOR
FEED PURPOSES.—For purposes of calculating the effec-
tive price for barley under subsection (b), the Secretary
shall use the loan rate in effect for barley under section
122(b)(3), except, in the case of producers who received
the higher loan rate provided under such section for barley
used only for feed purposes, the Secretary shall use that
higher loan rate.
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.);
lished for the commodity under section 122, plus interest
(as determined 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
further 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