I
105TH CONGRESS
2D SESSION
H. R. 4272
To amend the Agricultural Market Transition Act to provide an alternative
single payment for production flexibility contracts.
IN THE HOUSE OF REPRESENTATIVES
JULY 17, 1998
Mr. THUNE (for himself, Mr. LUCAS of Oklahoma, and Mr. MORAN of Kan-
sas) introduced the following bill; which was referred to the Committee
on Agriculture
A BILL
To amend the Agricultural Market Transition Act to provide
an alternative single payment for production flexibility
contracts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Farm Life Extension
Act of 1998’’.
SEC. 2. ALTERNATIVE SINGLE PAYMENT.
(a) IN GENERAL.—Section 112(d) of the Agricultural
Market Transition Act (7 U.S.C. 7212(d)) is amended—
(1) in paragraph (1), by striking ‘‘An’’ and in-
serting ‘‘Except as provided in paragraph (3), an’’;
and
(2) by adding at the end the following:
‘‘(3) SINGLE
PAYMENT
ALTERNATIVE.—The
Secretary may, at the request of an eligible owner or
producer, and in lieu of annual contract payments,
make a single payment representing the present
value, as of the time the single payment is made, of
the right to receive the remaining annual contract
payments that would otherwise be made under the
contract. Any single payment made under this para-
graph shall be conditioned on the owner or producer
irrevocably assigning to the Secretary or the des-
ignee of the Secretary the right of the owner or pro-
ducer to receive the full amount of the remaining
annual contract payments that would otherwise be
made under the contract in lieu of the single pay-
ment.’’.
(b) PAYMENT LIMITATIONS.—Paragraphs (1) and
(2) of section 1001 of the Food Security Act of 1985 (7
U.S.C. 1308) are each amended by striking ‘‘The total’’
and inserting ‘‘Except a single payment under section
112(d)(3) of the Agricultural Market Transition Act, the
total’’.
SEC. 3. FINANCING THROUGH THE FEDERAL AGRICUL-
TURAL MORTGAGE CORPORATION.
(a) ISSUANCE OF SECURITIES.—
(1) IN GENERAL.—Notwithstanding the Farm
Credit Act of 1971, the Federal Agricultural Mort-
gage Corporation may issue securities, at the request
of the Secretary of Agriculture, to raise funds suffi-
cient to cover the amount (if any) by which Federal
outlays made in any fiscal year for single payments
under section 112(d)(3) of the Agricultural Market
Transition Act exceed the Federal outlays that
would have been made in the fiscal year for the an-
nual contract payments in lieu of which the single
payments are made.
(2) TERMS
AND
CONDITIONS.—Each security
issued pursuant to paragraph (1) shall be issued
subject to such terms and conditions as the Sec-
retary of Agriculture deems appropriate. Sections
8.32, 8.33, and 8.34 of the Farm Credit Act of 1971
shall not apply to any on- or off-balance sheet asset
created or acquired by the Federal Agricultural
Mortgage Corporation under this Act.
(b) USE OF PROCEEDS FROM SECURITY SALES.—
The proceeds from the sales of securities issued pursuant
to subsection (a) shall be covered into the Treasury of the
United States as a miscellaneous receipt.
(c) ADMINISTRATIVE AUTHORITIES.—The Secretary
of Agriculture may issue such regulations, enter into such
contracts, and take such other actions as the Secretary
determines are necessary or appropriate to implement this
Act.
(d) ASSIGNMENT OF ANNUAL PAYMENTS.—To the
extent that the Federal Agricultural Mortgage Corpora-
tion provides funds under this Act, the Secretary of Agri-
culture shall ensure that all annual contract payments
that would otherwise be made under any contract in lieu
of a single payment under section 112(d)(3) of the Agri-
cultural Market Transition Act are assigned to the Fed-
eral Agricultural Mortgage Corporation and are so paid
regardless of the status of the owner or producer assigning
the payments or the status of the land in respect of which
the payments were to be made.
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