I
106TH CONGRESS
1ST SESSION
H. R. 2571
To provide for a gradual reduction in the loan rate for peanuts, to repeal
peanut quotas for the 2002 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.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 1999
Mr. SHAYS (for himself, Mr. KANJORSKI, Mr. BARRETT of Wisconsin, Mr.
BASS, Mrs. BIGGERT, Mr. BLAGOJEVICH, Mr. BRADY of Pennsylvania,
Mr. CAMPBELL, Mr. CASTLE, Mr. COOK, Mr. COX, Mr. COYNE, Mr.
CRANE, Mr. ENGLISH, Mr. FRANK of Massachusetts, Mr. FRANKS of
New Jersey, Mr. FRELINGHUYSEN, Mr. GEJDENSON, Mr. GEKAS, Mr.
GOSS, Mr. HUTCHINSON, Mrs. KELLY, Mr. KOLBE, Mr. LIPINSKI, Mr.
LOBIONDO, Mrs. LOWEY, Mr. LUTHER, Mr. MCINTOSH, Mrs. MALONEY
of New York, Mr. MEEHAN, Mr. MILLER of Florida, Mr. GEORGE MIL-
LER of California, Mrs. MORELLA, Mr. PALLONE, Mr. PITTS, Mr. POR-
TER, Mr. PORTMAN, Mrs. ROUKEMA, Mr. ROYCE, Mr. RYAN of Wis-
consin, Mr. SALMON, Mr. SANFORD, Mr. SENSENBRENNER, Mr. SMITH
of New Jersey, Mr. SUNUNU, Mrs. TAUSCHER, Mr. TOOMEY, Mr. VIS-
CLOSKY, Mr. WAMP, and Mr. WEINER) introduced the following bill;
which was referred to the Committee on Agriculture, and in addition to
the Committee on Education and the Workforce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide for a gradual reduction in the loan rate for
peanuts, to repeal peanut quotas for the 2002 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.
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.
Section 155(a) of the Agricultural Market Transition
Act (7 U.S.C. 7271(a)) is amended by striking paragraph
(2) and inserting the following:
‘‘(2) LOAN RATE.—The national average quota
loan rate for quota peanuts shall be as follows:
‘‘(A) $610 per ton for the 1999 crop.
‘‘(B) $550 per ton for the 2000 crop.
‘‘(C) $500 per ton for the 2001 crop.’’.
SEC. 2. NONRECOURSE LOANS FOR 2002 AND SUBSEQUENT
CROPS OF PEANUTS.
Effective beginning with the 2002 crop of peanuts,
section 155 of the Agricultural Market Transition Act (7
U.S.C. 7271) is amended to read as follows:
‘‘SEC. 155. PEANUT PROGRAM.
‘‘(a) IN GENERAL.—
‘‘(1) LOANS.—The Secretary shall make non-
recourse loans available to producers of peanuts for
each of the 2002 and subsequent crops of peanuts.
‘‘(2) RATE.—In carrying out paragraph (1), the
Secretary shall offer to all peanut producers non-
recourse loans at a level not less than 85 percent of
the simple average price received by producers for
peanuts, as determined by the Secretary, during the
marketing year for each of the immediately pre-
ceding 5 crops of peanuts, excluding the year in
which the average price was the highest and the year
in which the average price was the lowest during the
period, but not more than $350 per ton. The loans
shall be administered at no net cost to the Com-
modity Credit Corporation.
‘‘(3) INSPECTION, HANDLING, OR STORAGE.—
The levels of support determined under paragraph
(2) shall not be reduced by any deduction for inspec-
tion, handling, or storage.
‘‘(4) MARKETING OF PEANUTS OWNED OR CON-
TROLLED
BY
THE
COMMODITY
CREDIT
CORPORA-
TION.—Any peanuts owned or controlled by the
Commodity Credit Corporation may be made avail-
able for domestic edible use, in accordance with reg-
ulations issued by the Secretary, so long as doing so
results in no net cost to the Commodity Credit Cor-
poration.
‘‘(5) LOCATION
AND
OTHER
FACTORS.—The
Secretary may make adjustments for the location of
peanuts and such other factors as are authorized by
section 403.
‘‘(6) ANNOUNCEMENT.—The Secretary shall
announce the level of support for each crop of pea-
nuts not later than the February 15 preceding the
marketing year for which the level of support is
being determined.
‘‘(b) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall carry out the program authorized by this sec-
tion through the Commodity Credit Corporation.
‘‘(c) CROPS.—This section shall be effective for each
of the 2002 and subsequent crops of peanuts.’’.
SEC. 3. ELIMINATION OF PEANUT QUOTAS FOR 2002 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-