I
107TH CONGRESS
1ST SESSION
H. R. 2213
To respond to the continuing economic crisis adversely affecting American
agricultural producers.
IN THE HOUSE OF REPRESENTATIVES
JUNE 19, 2001
Mr. COMBEST introduced the following bill; which was referred to the
Committee on Agriculture
A BILL
To respond to the continuing economic crisis adversely
affecting American agricultural producers.
Be it enacted by the Senate and House of Representa-
tives 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
‘‘Crop Year 2001 Agricultural Economic Assistance Act’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—AGRICULTURAL ASSISTANCE
Sec. 101. Market loss assistance.
Sec. 102. Oilseeds.
Sec. 103. Other commodities.
Sec. 104. Payments in lieu of loan deficiency payments for grazed acreage.
Sec. 105. Expansion of producers eligible for loan deficiency payments.
Sec. 106. Loan deficiency payments and marketing loan gains.
Sec. 107. Milk price support program.
TITLE II—ADMINISTRATION
Sec. 201. Regulations.
Sec. 202. Commodity Credit Corporation reimbursement.
Sec. 203. Technical corrections regarding existing cotton producer indemnity
fund.
TITLE I—AGRICULTURAL
ASSISTANCE
SEC. 101. MARKET LOSS ASSISTANCE.
(a) IN GENERAL.—The Secretary of Agriculture (re-
ferred to in this Act as the ‘‘Secretary’’) shall use funds
of the Commodity Credit Corporation to provide assist-
ance in the form of a market loss assistance payment to
owners and producers on a farm that are eligible for a
final payment for fiscal year 2001 under a production
flexibility contract for the farm under the Agricultural
Market Transition Act (7 U.S.C. 7201 et seq.).
(b) AMOUNT AND MANNER.—In providing payments
under this section, the Secretary shall—
(1) use the same contract payment rates as are
used under section 802(b) of the Agriculture, Rural
Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2000 (7
U.S.C. 1421 note; Public Law 106–78); and
(2) provide the payments in a manner that is
consistent with section 802(c) of that Act.
(c) TIMING.—The Secretary shall make the payments
required by this section not earlier than September 1,
2001, but not later than September 30, 2001.
SEC. 102. OILSEEDS.
(a) 
IN
GENERAL.—The 
Secretary 
shall 
use
$500,000,000 of funds of the Commodity Credit Corpora-
tion to make payments to producers of the 2001 crop of
oilseeds that are eligible to obtain a marketing assistance
loan under section 131 of the Agricultural Market Transi-
tion Act (7 U.S.C. 7231).
(b) COMPUTATION.—A payment to producers on a
farm under this section for an oilseed shall be equal to
the product obtained by multiplying—
(1) a payment rate determined by the Sec-
retary;
(2) the acreage of the producers on the farm
for the oilseed, as determined under subsection (c);
and
(3) the yield of the producers on the farm for
the oilseed, as determined under subsection (d).
(c) ACREAGE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the acreage of the producers on the farm
for an oilseed under subsection (b)(2) shall be equal
to the number of acres planted to the oilseed by the
producers on the farm during the 1998, 1999, or
2000 crop year, whichever is greatest, as reported by
the producers on the farm to the Secretary (includ-
ing any acreage reports that are filed late).
(2) NEW PRODUCERS.—Except as provided in
paragraph (3), in the case of producers on a farm
that planted acreage to an oilseed during the 2001
crop year, but not the 1998, 1999, or 2000 crop
year, the acreage of the producers for the oilseed
under subsection (b)(2) shall be equal to the number
of acres planted to the oilseed by the producers on
the farm during the 2001 crop year, as reported by
the producers on the farm to the Secretary (includ-
ing any acreage reports that are filed late).
(d) YIELD.—
(1) SOYBEANS.—Except as provided in para-
graph (3), in the case of soybeans, the yield of the
producers on a farm under subsection (b)(3) shall be
equal to the greatest of—
(A) the average county yield per harvested
acre for each of the 1996 through 2000 crop
years, excluding the crop year with the highest
yield per harvested acre and the crop year with
the lowest yield per harvested acre; or
(B) the actual yield of the producers on
the farm for the 1998, 1999, or 2000 crop
year.
(2) OTHER OILSEEDS.—Except as provided in
paragraph (3), in the case of oilseeds other than soy-
beans, the yield of the producers on a farm under
subsection (b)(3) shall be equal to the greatest of—
(A) the average national yield per har-
vested acre for each of the 1996 through 2000
crop years, excluding the crop year with the
highest yield per harvested acre and the crop
year with the lowest yield per harvested acre; or
(B) the actual yield of the producers on
the farm for the 1998, 1999, or 2000 crop
year.
(3) NEW
PRODUCERS.—In the case of pro-
ducers on a farm that planted acreage to an oilseed
during the 2001 crop year but not the 1998, 1999,
or 2000 crop year, the yield of the producers on a
farm under subsection (b)(3) shall be equal to the
greater of—
(A) the average county yield per harvested
acre for each of the 1996 through 2000 crop
years, excluding the crop year with the highest
yield per harvested acre and the crop year with
the lowest yield per harvested acre; or
(B) the actual yield of the producers on
the farm for the 2001 crop.
(4) DATA SOURCE.—To the maximum extent
available, the Secretary shall use data provided by
the National Agricultural Statistics Service to carry
out this subsection.
(e) TIMING.—The Secretary shall make the payments
required by this section not earlier than October 1, 2001,
but not later than September 30, 2002.
SEC. 103. OTHER COMMODITIES.
(a) SURPLUS SPECIALTY CROP PURCHASES.—
(1) PURCHASES
REQUIRED.—The Secretary
shall use $220,000,000 of funds of the Commodity
Credit Corporation to purchase specialty crops that
have experienced low prices during the 2000 or 2001
crop years, including apples, apricots, black-eyed
peas, cherries, chickpeas, citrus, cranberries, dried
plums, dry peas, grapefruit, lentils, melons, onions,
peaches, pears, potatoes, raisins, and raspberries.
The Secretary shall ensure that purchases of spe-
cialty crops under this subsection will not displace
purchases by the Secretary under any other law.
(2) ASSISTANCE
TO
STATES.—The Secretary
may use up to $20,000,000 of the amount made
available under paragraph (1) to provide assistance
to States to cover costs incurred by the States in
transporting and distributing the commodities pur-
chased pursuant to such paragraph.
(3) TIMING.—The Secretary shall make the
purchases required by this subsection not earlier
than October 1, 2001, but not later than September
30, 2002.
(b) PEANUTS.—The Secretary shall use funds of the
Commodity Credit Corporation to provide payments to
producers of peanuts for the 2001 crop year. The amount
of the payment made to producers on a farm shall be equal
to the product obtained by multiplying—
(1) the quantity of peanuts actually produced
by the producers on the farm; and
(2) a payment rate equal to $30.00 per ton.
(c) ANIMAL FIBER PRODUCTION.—The Secretary
shall use funds of the Commodity Credit Corporation to
make payments to producers of wool, and producers of
mohair, for the 2001 marketing year. The payment rate
shall be equal to—
(1) in the case of wool, 20 cents per pound; and
(2) in the case of mohair, 40 cents per pound.
(d) SUGAR.—Section 156(f) of the Agricultural Mar-
ket Transition Act (7 U.S.C. 7272(f)) shall not apply with
respect to the 2001 crop of sugar beets and sugarcane.
(e) TOBACCO.—
(1) ADDITIONAL
PAYMENT
UNDER
EXISTING
AUTHORITY.—The Secretary shall use $129,000,000
of funds of the Commodity Credit Corporation to
make additional payments under section 204(b) of
the Agricultural Risk Protection Act of 2000 (Public
Law 106–224; 7 U.S.C. 1421 note) to eligible per-
sons, as defined in paragraph (1)(A) of such section.
The requirements applicable to the allocation of
these funds among States, among farms in a State,
and among eligible persons, as specified in para-
graphs (3), (4), and (5) of such section, shall be ad-
justed by the Secretary to reflect the additional
amount made available for payments under such sec-
tion.
(2) TIMING.—Notwithstanding the payment
dates specified in section 204(b) of the Agricultural
Risk Protection Act of 2000, of the amount made
available under paragraph (1), the Secretary shall—
(A) expend $34,000,000 before September
30, 2001; and
(B) expend the remainder during the pe-
riod beginning on October 1, 2001, and ending
on September 30, 2002.
SEC. 104. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE.
(a) ELIGIBLE PRODUCERS.—Effective for the 2002
crop year, in the case of a producer that would be eligible
for a loan deficiency payment under section 135 of the
Agricultural Market Transition Act (7 U.S.C. 7235) for
wheat, barley, or oats, but that elects to use acreage plant-
ed to the wheat, barley, or oats for the grazing of livestock,
the Secretary shall make a payment to the producer under
this section if the producer enters into an agreement with
the Secretary to forgo any other harvesting of the wheat,
barley, or oats on that acreage.
(b) PAYMENT AMOUNT.—The amount of a payment
made to a producer on a farm under this section shall
be equal to the amount determined by multiplying—
(1) the loan deficiency payment rate determined
under section 135(c) of the Agricultural Market
Transition Act (7 U.S.C. 7235(c)) in effect, as of
the date of the agreement, for the county in which
the farm is located; by
(2) the payment quantity determined by
multiplying—
(b) TREATMENT OF PRODUCERS WHO LOST BENE-
FICIAL INTEREST.—The Secretary shall allow a producer
that marketed or redeemed a quantity of an eligible 2001
crop for which the producer did not receive, either because
of operation of section 1001(2) of the Food Security Act
of 1985 (7 U.S.C. 1308(2)) or for any other reason, a
loan deficiency payment or marketing loan gain under sec-
tion 134 or 135 of the Agricultural Market Transition Act
(7 U.S.C. 7234, 7235) before the quantity was marketed
or redeemed to receive such payment or gain as of the
date on which the quantity was marketed or redeemed.
SEC. 107. MILK PRICE SUPPORT PROGRAM.
(a) EXTENSION OF PROGRAM.—Section 141 of the
Agricultural Market Transition Act (7 U.S.C. 7251) is
amended—
(1) in subsection (b), by adding at the end the
following new paragraph:
‘‘(5) During the period beginning on January 1,
2002, and ending on August 31, 2002, $9.90.’’; and
(2) in subsection (h), by striking ‘‘December
31, 2001’’ both places it appears and inserting ‘‘Au-
gust 31, 2002’’.
(b) REPEAL
OF RECOURSE LOAN PROGRAM
FOR
PROCESSORS.—Section 142 of the Agricultural Market
Transition Act (7 U.S.C. 7252(e)) is repealed.
TITLE II—ADMINISTRATION
SEC. 201. REGULATIONS.
(a) PROMULGATION.—As soon as practicable after
the date of the enactment of this Act, the Secretary and
the Commodity Credit Corporation, as appropriate, shall
promulgate such regulations as are necessary to imple-
ment this Act and the amendments made by this Act. The
promulgation of the regulations and administration of this
Act shall be made without regard to—
(1) the notice and comment provisions of sec-
tion 553 of title 5, United States Code;
(2) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking
and public participation in rulemaking; and
(3) chapter 35 of title 44, United States Code
(commonly known as the ‘‘Paperwork Reduction
Act’’).
(b) CONGRESSIONAL REVIEW
OF AGENCY RULE-
MAKING.—In carrying out this section, the Secretary shall
use the authority provided under section 808 of title 5,
United States Code.
SEC. 202. COMMODITY CREDIT CORPORATION REIMBURSE-
MENT.
(a) REIMBURSEMENT REQUIREMENT.—Out of any
moneys in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall use such sums as may be
necessary to reimburse the Commodity Credit Corporation
for net realized losses sustained, but not previously reim-
bursed, under title I.
(b) TIMING.—
(1) FISCAL YEAR 2001.—The reimbursement re-
quired under subsection (a) shall be provided not
later than September 30, 2001, to offset the losses
of the Commodity Credit Corporation sustained on
account of the Secretary’s use of Commodity Credit
Corporation funds—
(A) to provide market loss assistance
under section 101; and
(B) to provide the payments required
under section 103(e) before the deadline speci-
fied in paragraph (2)(A) of such section.
(2) FISCAL YEAR 2002.—The reimbursement re-
quired under subsection (a) for other Commodity
Credit Corporation losses sustained under title I
shall be provided not earlier than October 1, 2001,
but not later than September 30, 2002.
SEC. 203. TECHNICAL CORRECTIONS REGARDING EXISTING
COTTON PRODUCER INDEMNITY FUND.
(a) CONDITIONS
ON PAYMENT
TO STATE.—Sub-
section (b) of section 1121 of the Agriculture, Rural De-
velopment, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999 (as contained in sec-
tion 101(a) of division A of Public Law 105–277 (7 U.S.C.
1421 note), and as amended by section 754 of the Agri-
culture, Rural Development, Food and Drug Administra-
tion, and Related Agencies Appropriations Act, 2001 (as
enacted by Public Law 106–387; 114 Stat. 1549A–42),
is amended to read as follows:
‘‘(b) CONDITIONS
ON PAYMENT
TO STATE.—The
Secretary of Agriculture shall make the payment to the
State of Georgia under subsection (a) only if the State—
‘‘(1) contributes $5,000,000 to the indemnity
fund and agrees to expend all amounts in the indem-
nity fund by not later than January 1, 2002 (or as
soon as administratively practical thereafter), to pro-
vide compensation to cotton producers as provided in
such subsection;
‘‘(2) requires the recipient of a payment from
the indemnity fund to repay the State, for deposit
in the indemnity fund, the amount of any duplicate
payment the recipient otherwise recovers for such
loss of cotton, or the loss of proceeds from the sale
of cotton, up to the amount of the payment from
the indemnity fund; and
‘‘(3) agrees to deposit in the indemnity fund the
proceeds of any bond collected by the State for the
benefit of recipients of payments from the indemnity
fund, to the extent of such payments.’’.
(b) ADDITIONAL DISBURSEMENTS FROM THE IN-
DEMNITY FUND.—Subsection (d) of such section is
amended to read as follows:
‘‘(d) ADDITIONAL DISBURSEMENT TO COTTON GIN-
NERS.—The State of Georgia shall use funds remaining
in the indemnity fund, after the provision of compensation
to cotton producers in Georgia under subsection (a) (in-
cluding cotton producers who file a contingent claim, as
defined and provided in section 5.1 of chapter 19 of title
2 of the Official Code of Georgia), to compensate cotton
ginners (as defined and provided in such section) that—
‘‘(1) incurred a loss as the result of—
‘‘(A) the business failure of any cotton
buyer doing business in Georgia; or
‘‘(B) the failure or refusal of any such cot-
ton buyer to pay the contracted price that had
been agreed upon by the ginner and the buyer
for cotton grown in Georgia on or after Janu-
ary 1, 1997, and had been purchased or con-