104TH CONGRESS
2D SESSION
H. R. 2854
AN ACT
To modify the operation of certain agricultural
programs.
104TH CONGRESS
2D SESSION
H. R. 2854
AN ACT
To modify the operation of certain agricultural programs.
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
‘‘Agricultural Market Transition 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 MARKET TRANSITION PROGRAM
Sec. 101. Purpose.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Elimination of permanent price support authority.
Sec. 110. Effect of amendments.
TITLE II—DAIRY
Sec. 201. Milk price support program.
Sec. 202. Consolidation and reform of federal milk marketing orders.
Sec. 203. Dairy export incentive program.
Sec. 204. Effect on fluid milk standards in the State of California.
Sec. 205. Repeal of milk manufacturing marketing adjustment.
Sec. 206. Promotion.
TITLE III—CONSERVATION
Sec. 301. Conservation.
Sec. 302. Wetlands reserve program.
Sec. 303. Elimination of consultation requirements with Sectary of the Interior.
Sec. 304. Environmental conservation acreage reserve program.
Sec. 305. Conservation reserve program.
TITLE IV—AGRICULTURAL PROMOTION AND EXPORT
PROGRAMS
Subtitle A—Agricultural Promotion and Export Enhancement
Programs
Sec. 401. Market promotion program.
Sec. 402. Export enhancement program.
Subtitle B—Amendments to Agricultural Trade Development
and Assistance Act of 1954 and Related Statutes
Sec. 411. Food aid to developing countries.
Sec. 412. Trade and development assistance.
Sec. 413. Agreements regarding eligible countries and private entities.
Sec. 414. Terms and conditions of sales.
Sec. 415. Use of local currency payment.
Sec. 416. Eligible organizations.
Sec. 417. Generation and use of foreign currencies.
Sec. 418. General levels of assistance under Public Law 480.
Sec. 419. Food aid consultative group.
Sec. 420. Support of nongovernmental organizations.
Sec. 421. Commodity determinations.
Sec. 422. General provisions.
Sec. 423. Agreements.
Sec. 424. Administrative provisions.
Sec. 425. Expiration date.
Sec. 426. Regulations.
Sec. 427. Independent evaluation of programs.
Sec. 428. Authorization of appropriations.
Sec. 429. Coordination of foreign assistance programs.
Sec. 430. Use of certain local currency.
Sec. 431. Level of assistance to farmer to farmer program.
Sec. 432. Food security commodity reserve.
Sec. 433. Food for progress program.
Subtitle C—Amendments to Agricultural Trade Act of 1978
Sec. 451. Agricultural export promotion stragegy.
Sec. 452. Export credits.
Sec. 453. Export program and food assistance transfer authority.
Sec. 454. Arrival certification.
Sec. 455. Regulations.
Sec. 456. Foreign agricultural service.
Sec. 457. Reports.
Subtitle D—Miscellaneous
Sec. 471. Reporting requirements relating to tobacco.
Sec. 472. Triggered export enhancement.
Sec. 473. Disposition of commodities to prevent waste.
Sec. 474. Debt-for-health-and-protection swap.
Sec. 475. Policy on expansion of international markets.
Sec. 476. Policy on maintenance and development of export markets.
Sec. 477. Policy on trade liberalization.
Sec. 478. Agricultural trade negotiations.
Sec. 479. Policy on unfair trade practices.
Sec. 480. Agricultural aid and trade missions.
Sec. 481. Annual reports by agricultural attaches.
Sec. 482. World livestock market price information.
Sec. 483. Orderly liquidation of stocks.
Sec. 484. Sales of extra long staple cotton.
Sec. 485. Regulations.
Sec. 486. Emerging markets.
Sec. 487. Implementation of commitments under Uruguay Round Agreements.
Sec. 488. Sense of Congress concerning multilateral disciplines on credit guar-
antees.
Sec. 489. Foreign market development cooperator program.
Subtitle E—Dairy Exports
Sec. 491. Dairy export incentive program.
Sec. 492. Authority to assist in establishment and maintenance of export trad-
ing company.
Sec. 493. Standby authority to indicate entity best suited to provide inter-
national market development and export services.
Sec. 494. Study and report regarding potential impact of Urguay Round on
prices, income and government purchases.
Sec. 495. Promotion of United States dairy products in international markets
through dairy promotion program.
TITLE V—MISCELLANEOUS
Sec. 501. Crop insurance.
Sec. 502. Collection and use of agricultural quarantine and inspection fees.
Sec. 503. Commodity Credit Corporation interest rate.
Sec. 504. Establishment of Office of Risk Management.
Sec. 505. Business Interruption Insurance Program.
Sec. 506. Continuation of options pilot program.
Sec. 507. Everglades agricultural area.
Sec. 508. Sense of Congress regarding purchase of American-made equipment
and products; requirement regarding notice.
TITLE VI—COMMISSION ON 21ST CENTURY PRODUCTION
AGRICULTURE
Sec. 601. Establishment.
Sec. 602. Composition.
Sec. 603. Comprehensive review of past and future of production agriculture.
Sec. 604. Reports.
Sec. 605. Powers.
Sec. 606. Commission procedures.
Sec. 607. Personnel matters.
Sec. 608. Termination of Commission.
TITLE VII—EXTENSION OF CERTAIN AUTHORITIES
Sec. 701. Extension of authority under Public Law 480.
Sec. 702. Extension of food for progress program.
TITLE I—AGRICULTURAL
MARKET TRANSITION PROGRAM
SEC. 101. PURPOSE.
It is the purpose of this title—
(1) to authorize the use of binding production
flexibility contracts between the United States and
agricultural producers to support farming certainty
and flexibility while ensuring continued compliance
with farm conservation compliance plans and wet-
land protection requirements;
(2) to make nonrecourse marketing assistance
loans and loan deficiency available for certain crops;
(3) to improve the operation of farm programs
for peanuts and sugar; and
(4) to terminate price support authority under
the Agricultural Act of 1949.
SEC. 102. DEFINITIONS.
In this title:
(1) CONSIDERED
PLANTED.—The term ‘‘con-
sidered planted’’ means acreage that is considered
planted under title V of the Agricultural Act of 1949
(7 U.S.C. 1461 et seq.) (as in effect prior to the
amendment made by section 109(b)(2)) and such
other acreage as the Secretary considers fair and eq-
uitable.
(2) CONTRACT.—The term ‘‘contract’’ means a
production flexibility contract entered into under
section 103.
(3) CONTRACT ACREAGE.—The term ‘‘contract
acreage’’ means 1 or more crop acreage bases estab-
lished for contract commodities under title V of the
Agricultural Act of 1949 (as in effect prior to the
amendment made by section 109(b)(2)) that would
have been in effect for the 1996 crop (but for the
amendment made by section 109(b)(2)).
(4) CONTRACT COMMODITY.—The term ‘‘con-
tract commodity’’ means wheat, corn, grain sor-
ghum, barley, oats, upland cotton, and rice.
(5) CONTRACT PAYMENT.—The term ‘‘contract
payment’’ means a payment made under section 103
pursuant to a contract.
(6) DEPARTMENT.—The term ‘‘Department’’
means the United States Department of Agriculture.
(7) FARM
PROGRAM
PAYMENT
YIELD.—The
term ‘‘farm program payment yield’’ means the farm
program payment yield established for the 1995 crop
of a contract commodity under section 505 of the
Agricultural Act of 1949 (as in effect prior to the
amendment made by section 109(b)(2)) The Sec-
retary shall adjust the farm program payment yield
for the 1995 crop of a contract commodity to ac-
count for any additional yield payments made with
respect to that crop under subsection (b)(2) of the
section.
(8) LOAN COMMODITY.—The term ‘‘loan com-
modity’’ means each contract commodity, extra long
staple cotton, and oilseeds.
(9) OILSEED.—The term ‘‘oilseed’’ means a
crop of soybeans, sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed, or, if designated
by the Secretary, other oilseeds.
(10) PRODUCER.—The term ‘‘producer’’ means
an owner, landlord, tenant, or sharecropper 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.
(11) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture.
(12) 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.
(13) UNITED
STATES.—The term ‘‘United
States’’, when used in a geographical sense, means
all of the States.
SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) CONTRACTS AUTHORIZED.—
(1) OFFER AND TERMS.—Beginning as soon as
practicable after the date of the enactment of this
title, the Secretary shall offer to enter into a con-
tract with an eligible owner or operator described in
paragraph (2) on a farm containing eligible farm-
land. Under the terms of a contract, the owner or
operator shall agree, in exchange for annual contract
payments, to—
(A) comply with the conservation plan for
the farm prepared in accordance with section
1212 of the Food Security Act of 1985 (16
U.S.C. 3812);
(B) comply with wetland protection re-
quirements applicable to the farm under sub-
title C of title XII of the Act (16 U.S.C. 3821
et seq.); and
(C) comply with the planting flexibility re-
quirements of subsection (j); and
(D) to use the land subject to the contract
for agricultural or related activities, but not for
nonagricultural commercial or industrial uses.
(2) ELIGIBLE
OWNERS
AND
OPERATORS
DE-
SCRIBED.—The producers and owners described in
this paragraph shall be eligible to enter into a con-
tract:
(A) An owner of eligible farmland who as-
sumes all of the risk of producing a crop.
(B) An owner of eligible farmland who
shares in the risk of producing a crop.
(C) An operator of eligible farmland with
a share-rent lease of the eligible farmland, re-
gardless of the length of the lease, if the owner
enters into the same contract.
(D) An operator of eligible farmland who
cash rents the eligible farmland under a lease
expiring on or after September 30, 2002, in
which case the consent of the owner is not re-
quired.
(E) An operator of eligible farmland who
cash rents the eligible farmland under a lease
expiring before September 30, 2002, if the
owner consents to the contract.
(F) An owner of eligible farmland who
cash rents the eligible farmland and the lease
term expires before September 30, 2002, but
only if the actual operator of the farm declines
to enter into a contract. In the case of an
owner covered by this subparagraph, contract
payments shall not begin under a contract until
the fiscal year following the fiscal year in which
the lease held by the nonparticipating operator
expires.
(G) An owner or operator described in any
preceding subparagraph of this paragraph re-
gardless of whether the owner or operator pur-
chased catastrophic risk protection for a fall-
planted 1996 crop under section 508(b) of the
Federal 
Crop 
Insurance 
Act 
(7 
U.S.C.
1508(b)).
(3) TENANTS AND SHARECROPPERS.—In carry-
ing out this section, the Secretary shall provide ade-
quate safeguards to protect the interests of tenants
and sharecroppers.
(b) ELEMENTS.—
(1) TIME FOR CONTRACTING.—
(A) DEADLINE.—Except as provided in
subparagraph (B), the Secretary may not enter
into a contract after April 15, 1996.
(B) CONSERVATION RESERVE LANDS.—
(i) IN GENERAL.—At the beginning of
each fiscal year, the Secretary shall allow
an eligible owner or operator on a farm
covered by a conservation reserve contract
entered into under section 1231 of the
Food Security Act of 1985 (16 U.S.C.
3831) that terminates after the date speci-
fied in subparagraph (A) to enter into or
expand a production flexibility contract to
cover the contract acreage of the farm that
was subject to the former conservation re-
serve contract.
(ii) 
AMOUNT.—Contract 
payments
made for contract acreage under this sub-
paragraph shall be made at the rate and
amount applicable to the annual contract
payment level for the applicable crop.
(2) DURATION OF CONTRACT.—
(A) BEGINNING DATE.—A contract shall
begin with—
(i) the 1996 crop of a contract com-
modity; or
(ii) in the case of acreage that was
subject to a conservation reserve contract
described in paragraph (1)(B), the date
the production flexibility contract was en-
tered into or expanded to cover the acre-
age.
(B) ENDING DATE.—A contract shall ex-
tend through the 2002 crop.
(3) ESTIMATION OF CONTRACT PAYMENTS.—At
the time the Secretary enters into a contract, the
Secretary shall provide an estimate of the minimum
contract payments anticipated to be made during at
least the first fiscal year for which contract pay-
ments will be made.
(c) ELIGIBLE FARMLAND DESCRIBED.—Land shall
be considered to be farmland eligible for coverage under
a contract only if the land has contract acreage attrib-
utable to the land and—
(1) for at least 1 of the 1991 through 1995
crops, at least a portion of the land was enrolled in
the acreage reduction program authorized for a crop
of a contract commodity under section 101B, 103B,
105B, or 107B of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section
109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve con-
tract under section 1231 of the Food Security Act
of 1985 (16 U.S.C. 3831) whose term expired, or
was voluntarily terminated, on or after January 1,
1995; or
(3) is released from coverage under a conserva-
tion reserve contract by the Secretary during the pe-
riod beginning on January 1, 1995, and ending on
the date specified in subsection (b)(1)(A).
(d) TIME FOR PAYMENT.—
(1) IN GENERAL.—An annual contract payment
shall be made not later than September 30 of each
of fiscal years 1996 through 2002.
(2) ADVANCE PAYMENTS.—
(A) FISCAL YEAR 1996.—At the option of
the owner or operator, 50 percent of the con-
tract payment for fiscal year 1996 shall be
made not later than June 15, 1996.
(B) SUBSEQUENT FISCAL YEARS.—At the
option of the owner or operator for fiscal year
1997 and each subsequent fiscal year, 50 per-
cent of the annual contract payment shall be
made on December 15.
(e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS
FOR EACH FISCAL YEAR.—
(1) IN GENERAL.—The Secretary shall, to the
maximum extent practicable, expend on a fiscal year
basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) ALLOCATION.—The amount made available
for a fiscal year under paragraph (1) shall be allo-
cated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) ADJUSTMENT.—The Secretary shall adjust
the amounts allocated for each contract commodity
under paragraph (2) for a particular fiscal year by—
(A) adding an amount equal to the sum of
all repayments of deficiency payments received
under section 114(a)(2) of the Agricultural Act
of 1949 (as in effect prior to the amendment
made by section 109(b)(2)) for the commodity;
(B) to the maximum extent practicable,
adding an amount equal to the sum of all con-
tract payments withheld by the Secretary, at
the request of an owner or operator subject to
a contract, as an offset against repayments of
deficiency payments otherwise required under
section 114(a)(2) of the Act (as so in effect) for
the commodity;
(C) adding an amount equal to the sum of
all refunds of contract payments received dur-
ing the preceding fiscal year under subsection
(h) of this section for the commodity; and
(D) subtracting an amount equal to the
amount, if any, necessary during that fiscal
year to satisfy payment requirements for the
commodity under sections 103B, 105B, or
107B of the Agricultural Act of 1949 (as in ef-
fect prior to the amendment made by section
109(b)(2)) for the 1994 and 1995 crop years.
(4) SPECIAL ADJUSTMENT TO COVER EXISTING
RICE PAYMENT REQUIREMENTS.—As soon as pos-
sible after the date of the enactment of this Act, the
Secretary shall determine the amount, if any, nec-
essary to satisfy remaining payment requirements
under section 101B of the Agricultural Act of 1949
(as in effect prior to the amendment made by sec-
tion 109(b)(2)) for the 1994 and 1995 crops of rice.
The total amount determined under this paragraph
shall be deducted, in equal amounts each fiscal year,
from the amount allocated for rice under paragraph
(2)(G) for fiscal years after the fiscal year in which
the final remaining payments are made for rice.
(f) DETERMINATION OF CONTRACT PAYMENTS.—
(1) INDIVIDUAL PAYMENT QUANTITY OF CON-
TRACT COMMODITIES.—For each contract, the pay-
ment quantity of a contract commodity for each fis-
cal year shall be equal to the product of—
(A) 85 percent of the contract acreage;
and
(B) the farm program payment yield.
(2) ANNUAL PAYMENT QUANTITY OF CONTRACT
COMMODITIES.—The payment quantity of each con-
tract commodity covered by all contracts for each
fiscal year shall equal the sum of the amounts cal-
culated under paragraph (1) for each individual con-
tract.
(3) ANNUAL
PAYMENT
RATE.—The payment
rate for a contract commodity for each fiscal year
shall be equal to—
(A) the amount made available under sub-
section (e) for the contract commodity for the
fiscal year; divided by
(B) the amount determined under para-
graph (2) for the fiscal year.
(4) ANNUAL PAYMENT AMOUNT.—The amount
to be paid under a contract in effect for each fiscal
year with respect to a contract commodity shall be
equal to the product of—
(A) the payment quantity determined
under paragraph (1) with respect to the con-
tract; and
(B) the payment rate in effect under para-
graph (3).
(5) ASSIGNMENT OF CONTRACT PAYMENTS.—
The provisions of section 8(g) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall
apply to contract payments under this subsection.
The owner or operator making the assignment, or
the assignee, shall provide the Secretary with notice,
in such manner as the Secretary may require in the
contract, of any assignment made under this para-
graph.
(6) SHARING OF CONTRACT PAYMENTS.—The
Secretary shall provide for the sharing of contract
payments among the owners and operators subject
to the contract on a fair and equitable basis.
(g) PAYMENT LIMITATION.—Sections 1001 through
1001C of the Food Security Act of 1985 (7 U.S.C. 1308
through 1308–3), as amended by section 105, establish
payment limitations on the total amount of contract pay-
ments that may be made under contracts during any fis-
cal year.
(h) EFFECT OF VIOLATION.—
(1) TERMINATION
OF
CONTRACT.—Except as
provided in paragraph (2), if an owner or operator
subject to a contract violates a requirement of the
contract specified in subparagraphs (A), (B), (C), or
(D) of subsection (a)(1), the Secretary shall termi-
nate the contract with respect to the owner or opera-
tor on each farm in which the owner or operator has
an interest. On the termination, the owner or opera-
tor shall forfeit all rights to receive future contract
payments on each farm in which the owner or opera-
tor has an interest and shall refund to the Secretary
all contract payments received by the owner or oper-
ator during the period of the violation, together with
interest on the contract payments as determined by
the Secretary.
(2) REFUND
OR
ADJUSTMENT.—If the Sec-
retary determines that a violation does not warrant
termination of the contract under paragraph (1), the
Secretary may require the owner or operator subject
to the contract—
(A) to refund to the Secretary that part of
the contract payments received by the owner or
operator during the period of the violation, to-
gether with interest on the contract payments
as determined by the Secretary; or
(B) to accept a reduction in the amount of
future contract payments that is proportionate
to the severity of the violation, as determined
by the Secretary.
(3) FORECLOSURE.—An owner or operator sub-
ject to a contract may not be required to make re-
payments to the Secretary of amounts received
under the contract if the contract acreage has been
foreclosed on and the Secretary determines that for-
giving the repayments is appropriate in order to pro-
vide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner
or operator under the contract if the owner or opera-
tor continues or resumes operation, or control, of the
contract acreage. On the resumption of operation or
control over the contract acreage by the owner or
operator, the provisions of the contract in effect on
the date of the foreclosure shall apply.
(4) REVIEW.—A determination of the Secretary
under this subsection shall be considered to be an
adverse decision for purposes of the availability of
administrative review of the determination.
(i) TRANSFER OF INTEREST IN LANDS SUBJECT TO
CONTRACT.—
(1) EFFECT
OF
TRANSFER.—Except as pro-
vided in paragraph (2), the transfer by an owner or
operator subject to a contract of the right and inter-
est of the owner or operator in the contract acreage
shall result in the termination of the contract with
respect to the acreage, effective on the date of the
transfer, unless the transferee of the acreage agrees
with the Secretary to assume all obligations of the
contract. At the request of the transferee, the Sec-
retary may modify the contract if the modifications
are consistent with the objectives of this section as
determined by the Secretary. The Secretary shall
carry out this paragraph in such a manner as to en-
sure that the reconstitution of a farm as part of the
transfer of contract acreage results in no additional
outlays under this section.
(2) EXCEPTION.—If an owner or operator who
is entitled to a contract payment dies, becomes in-
competent, or is otherwise unable to receive the con-
tract payment, the Secretary shall make the pay-
ment, in accordance with regulations prescribed by
the Secretary.
(j) PLANTING FLEXIBILITY.—
(1) PERMITTED CROPS.—Subject to paragraph
(2), any commodity or crop may be planted on con-
tract acreage on a farm.
(2) LIMITATIONS.—
(A) HAYING AND GRAZING.—
(i) TIME LIMITATIONS.—Haying and
grazing on land exceeding 15 percent of
the contract acreage on a farm as provided
in clause (iii) shall be permitted, except
during any consecutive 5-month period be-
tween April 1 and October 31 that is de-
termined by the State committee estab-
lished under section 8(b) of the Soil Con-
servation and Domestic Allotment Act (6
U.S.C. 590h(b)) for a State. In the case of
a natural disaster, the Secretary may per-
mit unlimited haying and grazing on the
contract acreage of a farm.
(ii) CONTRACT
COMMODITIES.—Con-
tract acreage planted to a contract com-
modity for harvest may be hayed or grazed
at any time without limitation.
(iii) HAYING
AND
GRAZING
LIMITA-
TION
ON
PORTION
OR
CONTRACT
ACRE-
AGE.—Unlimited haying and grazing shall
be permitted on not more than 15 percent
of the contract acreage on a farm.
(B) ALFALFA.—Alfalfa may be grown on
contract acreage in excess of the acreage limita-
tion in subparagraph (A)(iii) and without re-
gard to the time limitation in subparagraph
(A)(i), except that each contract acre of alfalfa
on a farm that is harvested in excess of 15 per-
cent of the total contract acreage on the farm
shall be ineligible for contract payments.
(C) FRUITS AND VEGETABLES.—
(i) IN
GENERAL.—The planting for
harvest of fruits and vegetables shall be
prohibited on contract acreage, except in
any region in which there is a history of
double-cropping, as determined by the Sec-
retary.
(ii) UNRESTRICTED
VEGETABLES.—
Notwithstanding clause (i), lentils, mung
beans, and dry peas may be planted for
harvest without limitation on contract
acreage.
SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS
AND LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY
OF
MARKETING
ASSISTANCE
LOANS.—
(1) NONRECOURSE
LOANS
AVAILABLE.—For
each of the 1996 through 2002 crops of each loan
commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assist-
ance loans for loan commodities produced on the
farm. The loans shall be made under terms and con-
ditions that are prescribed by the Secretary and at
the loan rate established under subsection (b) for
the loan commodity.
(2) ELIGIBLE
PRODUCTION.—The following
production shall be eligible for a marketing assist-
ance loan under paragraph (1):
(A) In the case of a marketing assistance
loan for a contract commodity, any production
by a producer who has entered into a produc-
tion flexibility contract.
(B) In the case of a marketing assistance
loan for extra long staple cotton and oilseeds,
any production.
(3) RECOURSE
LOANS
FOR
HIGH
MOISTURE
FEED GRAINS.—
(A) RECOURSE
LOANS
AVAILABLE.—For
each of the 1996 through 2002 crops of corn
and grain sorghum, the Secretary shall make
available recourse loans, as determined by the
Secretary, to producers on a farm who—
(i) normally harvest all or a portion of
their crop of corn or grain sorghum in a
high moisture state;
(ii) present—
(I) certified scale tickets from an
inspected, certified commercial scale,
including 
licensed 
warehouses,
feedlots, feed mills, distilleries, or
other similar entities approved by the
Secretary, pursuant to regulations is-
sued by the Secretary; or
(II) present field or other phys-
ical measurements of the standing or
stored crop in regions of the country,
as determined by the Secretary, that
do not have certified commercial
scales from which certified scale tick-
ets may be obtained within reasonable
proximity of harvest operation;
(iii) certify that they were the owners
of the feed grain at the time of delivery to,
and that the quantity to be placed under
loan under this paragraph was in fact har-
vested on the farm and delivered to, a
feedlot, feed mill, or commercial or on-
farm high-moisture storage facility, or to
such facilities maintained by the users of
corn and grain sorghum in a high moisture
state; and
(iv) comply with deadlines established
by the Secretary for harvesting the corn or
grain sorghum and submit applications for
loans under this paragraph within dead-
lines established by the Secretary.
(B) ELIGIBILITY
OF
ACQUIRED
FEED
GRAINS.—Loans under this paragraph shall be
made on a quantity of corn or grain sorghum
of the same crop acquired by the producer
equivalent to a quantity determined by mul-
tiplying—
(i) the acreage of the corn or grain
sorghum in a high moisture state har-
vested on the producer’s farm; by
(ii) the lower of the farm program
payment yield or the actual yield on a
field, as determined by the Secretary, that
is similar to the field from which the corn
or grain sorghum was obtained.
(C) HIGH MOISTURE STATE DEFINED.—In
this paragraph, the term ‘‘high moisture state’’
means corn or grain sorghum having a moisture
content in excess of Commodity Credit Corpora-
tion standards for marketing assistance loans
made by the Secretary under paragraph (1).
(b) LOAN RATES.—
(1) WHEAT.—
(A) LOAN RATE.—Subject to subparagraph
(B), the loan rate for a marketing assistance
loan under subsection (a)(1) for wheat shall
be—
(i) not less than 85 percent of the
simple average price received by producers
of wheat, as determined by the Secretary,
during the marketing years for the imme-
diately preceding 5 crops of wheat, exclud-
ing the year in which the average price was
the highest and the year in which the aver-
age price was the lowest in the period; but
(ii) not more than $2.58 per bushel.
(B) STOCKS
TO
USE
RATIO
ADJUST-
MENT.—If the Secretary estimates for any mar-
keting year that the ratio of ending stocks of
wheat to total use for the marketing year will
be—
(i) equal to or greater than 30 per-
cent, the Secretary may reduce the loan
rate for wheat for the corresponding crop
by an amount not to exceed 10 percent in
any year;
(ii) less than 30 percent but not less
than 15 percent, the Secretary may reduce
the loan rate for wheat for the correspond-
ing crop by an amount not to exceed 5 per-
cent in any year; or
(iii) less than 15 percent, the Sec-
retary may not reduce the loan rate for
wheat for the corresponding crop.
(C) NO EFFECT ON FUTURE YEARS.—Any
reduction in the loan rate for wheat under sub-
paragraph (B) shall not be considered in deter-
mining the loan rate for wheat for subsequent
years.
(2) FEED GRAINS.—
(A) LOAN
RATE
FOR
CORN.—Subject to
subparagraph (B), the loan rate for a market-
ing assistance loan under subsection (a)(1) for
corn shall be—
(i) not less than 85 percent of the
simple average price received by producers
of corn, as determined by the Secretary,
during the marketing years for the imme-
diately preceding 5 crops of corn, excluding
the year in which the average price was the
highest and the year in which the average
price was the lowest in the period; but
(ii) not more than $1.89 per bushel.
(B) STOCKS
TO
USE
RATIO
ADJUST-
MENT.—If the Secretary estimates for any mar-
keting year that the ratio of ending stocks of
corn to total use for the marketing year will
be—
(i) equal to or greater than 25 per-
cent, the Secretary may reduce the loan
rate for corn for the corresponding crop by
an amount not to exceed 10 percent in any
year;
(ii) less than 25 percent but not less
than 12.5 percent, the Secretary may re-
duce the loan rate for corn for the cor-
responding crop by an amount not to ex-
ceed 5 percent in any year; or
(iii) less than 12.5 percent the Sec-
retary may not reduce the loan rate for
corn for the corresponding crop.
(C) NO EFFECT ON FUTURE YEARS.—Any
reduction in the loan rate for corn under sub-
paragraph (B) shall not be considered in deter-
mining the loan rate for corn for subsequent
years.
(D) OTHER FEED GRAINS.—The loan rate
for a marketing assistance loan under sub-
section (a)(1) for grain sorghum, barley, and
oats, respectively, shall be established at such
level as the Secretary determines is fair and
reasonable in relation to the rate that loans are
made available for corn, taking into consider-
ation the feeding value of the commodity in re-
lation to corn.
(3) UPLAND COTTON.—
(A) LOAN RATE.—Subject to subparagraph
(B), the loan rate for a marketing assistance
loan under subsection (a)(1) for upland cotton
shall be established by the Secretary at such
loan rate, per pound, as will reflect for the base
quality of upland cotton, as determined by the
Secretary, at average locations in the United
States a rate that is not less than the smaller
of—
(i) 85 percent of the average price
(weighted by market and month) of the
base quality of cotton as quoted in the des-
ignated United States spot markets during
3 years of the 5-year period ending July
31 in the year in which the loan rate is an-
nounced, excluding the year in which the
average price was the highest and the year
in which the average price was the lowest
in the period; or
(ii) 90 percent of the average, for the
15-week period beginning July 1 of the
year in which the loan rate is announced,
of the 5 lowest-priced growths of the
growths quoted for Middling 13⁄32-inch cot-
ton C.I.F. Northern Europe (adjusted
or oilseeds, the Secretary shall also permit a pro-
ducer to repay the loan at such level as the Sec-
retary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodity by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; and
(D) allow the commodity produced in the
United States to be marketed freely and com-
petitively, both domestically and internationally.
(3) REPAYMENT RATES FOR EXTRA LONG STA-
PLE COTTON.—Repayment of a marketing assistance
loan for extra long staple cotton shall be at the loan
rate established for the commodity under subsection
(b), plus interest (as determined by the Secretary).
(4) PREVAILING WORLD MARKET PRICE.—For
purposes of paragraph (1) and subsection (f), the
Secretary shall prescribe by regulation—
(A) a formula to determine the prevailing
world market price for each loan commodity,
adjusted to United States quality and location;
and
(B) a mechanism by which the Secretary
shall announce periodically the prevailing world
market price for each loan commodity.
(5) ADJUSTMENT OF PREVAILING WORLD MAR-
KET PRICE FOR UPLAND COTTON.—
(A) IN GENERAL.—During the period end-
ing July 31, 2003, the prevailing world market
price for upland cotton (adjusted to United
States quality and location) established under
paragraph (4) shall be further adjusted if—
(i) the adjusted prevailing world mar-
ket price is less than 115 percent of the
loan rate for upland cotton established
under subsection (b), as determined by the
Secretary; and
(ii) the Friday through Thursday av-
erage price quotation for the lowest-priced
United States growth as quoted for Mid-
dling (M) 13⁄32-inch cotton delivered C.I.F.
Northern Europe is greater than the Fri-
day through Thursday average price of the
5 lowest-priced growths of upland cotton,
as quoted for Middling (M) 13⁄32-inch cot-
ton, delivered C.I.F. Northern Europe (re-
ferred to in this subsection as the ‘‘North-
ern Europe price’’).
(B) FURTHER
ADJUSTMENT.—Except as
provided in subparagraph (C), the adjusted pre-
vailing world market price for upland cotton
shall be further adjusted on the basis of some
or all of the following data, as available:
(i) The United States share of world
exports.
(ii) The current level of cotton export
sales and cotton export shipments.
(iii) Other data determined by the
Secretary to be relevant in establishing an
accurate prevailing world market price for
upland cotton (adjusted to United States
quality and location).
(C) LIMITATION
ON
FURTHER
ADJUST-
MENT.—The adjustment under subparagraph
(B) may not exceed the difference between—
(i) the Friday through Thursday aver-
age price for the lowest-priced United
States growth as quoted for Middling
13⁄32-inch cotton delivered C.I.F. Northern
Europe; and
(ii) the Northern Europe price.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—Except as provided in
paragraph (4), the Secretary may make loan defi-
ciency payments available to producers who, al-
though eligible to obtain a marketing assistance loan
under subsection (a)(1) with respect to a loan com-
modity, agree to forgo obtaining the loan for the
commodity in return for payments under this sub-
section.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by multiply-
ing—
(A) the loan payment rate determined
under paragraph (3) for the loan commodity; by
(B) the quantity of the loan commodity
that the producers on a farm are eligible to
place under loan but for which the producers
forgo obtaining the loan in return for payments
under this subsection.
(3) LOAN
PAYMENT
RATE.—For purposes of
this subsection, the loan payment rate shall be the
amount by which—
(A) the loan rate established under sub-
section (b) for the loan commodity; exceeds
(B) the rate at which a loan for the com-
modity may be repaid under subsection (d).
(4) EXCEPTION FOR EXTRA LONG STAPLE COT-
TON.—This subsection shall not apply with respect
to extra long staple cotton.
(f) SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON.—
(1) 
COTTON
USER
MARKETING
CERTIFI-
CATES.—
(A) ISSUANCE.—Subject to subparagraph
(D), during the period ending July 31, 2003,
the Secretary shall issue marketing certificates
or cash payments to domestic users and export-
ers for documented purchases by domestic users
and sales for export by exporters made in the
week following a consecutive 4-week period in
which—
(i) the Friday through Thursday aver-
age price quotation for the lowest-priced
United States growth, as quoted for Mid-
dling (M) 13⁄32-inch cotton, delivered
C.I.F. 
Northern 
Europe 
exceeds 
the
Northern Europe price by more than 1.25
cents per pound; and
(ii) the prevailing world market price
for upland cotton (adjusted to United
States quality and location) does not ex-
ceed 130 percent of the loan rate for up-
land cotton established under subsection
(b).
(B) VALUE
OF
CERTIFICATES
OR
PAY-
MENTS.—The value of the marketing certifi-
cates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents
per pound) in the prices during the 4th week of
the consecutive 4-week period multiplied by the
quantity of upland cotton included in the docu-
mented sales.
(C) REDEMPTION, MARKETING, OR
EX-
CHANGE.—The Secretary shall establish proce-
dures to assist persons receiving marketing cer-
tificates under this paragraph in the redemp-
tion of certificates for cash, or in the marketing
or exchange of certificates for agricultural com-
modities owned by the Commodity Credit Cor-
poration, in such manner and at such price lev-
els as the Secretary determines will best effec-
tuate the purposes of the marketing certificates.
Any price restrictions that may otherwise apply
to the disposition of agricultural commodities
by the Commodity Credit Corporation shall not
apply to the redemption of certificates under
this paragraph.
(D) EXCEPTION.—The Secretary shall not
issue marketing certificates or cash payments
under subparagraph (A) if, for the immediately
preceding consecutive 10-week period, the Fri-
day through Thursday average price quotation
for the lowest priced United States growth, as
quoted for Middling (M) 13⁄32-inch cotton, deliv-
ered C.I.F. Northern Europe, adjusted for the
value of any certificate issued under this para-
graph, exceeds the Northern Europe price by
more than 1.25 cents per pound.
(E) LIMITATION
ON
EXPENDITURES.—
Total expenditures under this paragraph shall
not exceed $701,000,000 during fiscal years
1996 through 2002.
(2) SPECIAL IMPORT QUOTA.—
(A) 
ESTABLISHMENT.—The 
President
shall carry out an import quota program that
provides that, during the period ending July 31,
2003, whenever the Secretary determines and
announces that for any consecutive 10-week pe-
riod, the Friday through Thursday average
price quotation for the lowest-priced United
States growth, as quoted for Middling (M)
13⁄32-inch cotton, delivered C.I.F. Northern Eu-
rope, adjusted for the value of any certificates
issued under paragraph (1), exceeds the North-
ern Europe price by more than 1.25 cents per
pound, there shall immediately be in effect a
special import quota.
(B) QUANTITY.—The quota shall be equal
to 1 week’s consumption of upland cotton by
domestic mills at the seasonally adjusted aver-
age rate of the most recent 3 months for which
data are available.
(C) APPLICATION.—The quota shall apply
to upland cotton purchased not later than 90
days after the date of the Secretary’s announce-
ment under subparagraph (A) and entered into
the United States not later than 180 days after
the date.
(D) OVERLAP.—A special quota period
may be established that overlaps any existing
quota period if required by subparagraph (A),
except that a special quota period may not be
established under this paragraph if a quota pe-
riod has been established under subsection (g).
(E) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a special import
quota shall be considered to be an in-quota
quantity for purposes of—
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act
of 1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(F) DEFINITION.—In this paragraph, the
term ‘‘special import quota’’ means a quantity
of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND
COTTON.—
(1) IN
GENERAL.—The President shall carry
out an import quota program that provides that
whenever the Secretary determines and announces
that the average price of the base quality of upland
cotton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of such quality of cotton
in the markets for the preceding 36 months, not-
withstanding any other provision of law, there shall
immediately be in effect a limited global import
quota subject to the following conditions:
(A) QUANTITY.—The quantity of the quota
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months
for which data are available.
(B) QUANTITY
IF
PRIOR
QUOTA.—If a
quota has been established under this sub-
section during the preceding 12 months, the
quantity of the quota next established under
this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to
increase the supply to 130 percent of the de-
mand.
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a limited global
import quota shall be considered to be an in-
quota quantity for purposes of—
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act
of 1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(D) DEFINITIONS.—In this subsection:
(i) 
SUPPLY.—The 
term 
‘‘supply’’
means, using the latest official data of the
Bureau of the Census, the Department of
Agriculture, and the Department of the
Treasury—
(I) the carry-over of upland cot-
ton at the beginning of the marketing
year (adjusted to 480-pound bales) in
which the quota is established;
(II) production of the current
crop; and
(III) imports to the latest date
available during the marketing year.
(ii) DEMAND.—The term ‘‘demand’’
means—
(I) the average seasonally ad-
justed annual rate of domestic mill
consumption in the most recent 3
months for which data are available;
and
(II) the larger of—
(aa) average exports of up-
land cotton during the preceding
6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is estab-
lished.
(iii) 
LIMITED
GLOBAL
IMPORT
QUOTA.—The term ‘‘limited global import
quota’’ means a quantity of imports that is
not subject to the over-quota tariff rate of
a tariff-rate quota.
(E) QUOTA
ENTRY
PERIOD.—When a
quota is established under this subsection, cot-
ton may be entered under the quota during the
90-day period beginning on the date the quota
is established by the Secretary.
(2) NO OVERLAP.—Notwithstanding paragraph
(1), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (f)(2).
(h) SOURCE OF LOANS.—
(1) IN GENERAL.—The Secretary shall provide
the loans authorized by this section and the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.) through the Commodity Credit Corporation
and other means available to the Secretary.
(2) PROCESSORS.—Whenever any loan or sur-
plus removal operation for any agricultural commod-
ity is carried out through purchases from or loans
or payments to processors, the Secretary shall, to
the extent practicable, obtain from the processors
such assurances as the Secretary considers adequate
that the producers of the commodity have received
or will receive maximum benefits from the loan or
surplus removal operation.
(i) ADJUSTMENTS OF LOANS.—
(1) IN
GENERAL.—The Secretary may make
appropriate adjustments in the loan levels for any
commodity for differences in grade, type, quality, lo-
cation, and other factors.
(2) LOAN LEVEL.—The adjustments shall, to
the maximum extent practicable, be made in such
manner that the average loan level for the commod-
ity will, on the basis of the anticipated incidence of
the factors, be equal to the level of support deter-
mined as provided in this section or the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).
(j) PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), no producer shall be personally liable for
any deficiency arising from the sale of the collateral
securing any nonrecourse loan made under this sec-
tion or the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.) unless the loan was obtained
through a fraudulent representation by the producer.
(2) LIMITATIONS.—Paragraph (1) shall not
prevent the Commodity Credit Corporation or the
Secretary from requiring a producer to assume li-
ability for—
(A) a deficiency in the grade, quality, or
quantity of a commodity stored on a farm or
delivered by the producer;
(B) a failure to properly care for and pre-
serve a commodity; or
(C) a failure or refusal to deliver a com-
modity in accordance with a program estab-
lished under this section or the Agricultural Ad-
justment Act of 1938.
(3) ACQUISITION OF COLLATERAL.—The Sec-
retary may include in a contract for a nonrecourse
loan made under this section or the Agricultural Ad-
justment Act of 1938 a provision that permits the
Commodity Credit Corporation, on and after the ma-
turity of the loan, to acquire title to the unredeemed
collateral without obligation to pay for any market
value that the collateral may have in excess of the
loan indebtedness.
(4) SUGARCANE AND SUGAR BEETS.—A secu-
rity interest obtained by the Commodity Credit Cor-
poration as a result of the execution of a security
agreement by the processor of sugarcane or sugar
beets shall be superior to all statutory and common
law liens on raw cane sugar and refined beet sugar
in favor of the producers of sugarcane and sugar
beets and all prior recorded and unrecorded liens on
the crops of sugarcane and sugar beets from which
the sugar was derived.
(k) COMMODITY CREDIT CORPORATION SALES PRICE
RESTRICTIONS.—
(1) IN GENERAL.—The Commodity Credit Cor-
poration may sell any commodity owned or con-
trolled by the Corporation at any price that the Sec-
retary determines will maximize returns to the Cor-
poration.
(2) NONAPPLICATION
OF
SALES
PRICE
RE-
STRICTIONS.—Paragraph (1) shall not apply to—
(A) a sale for a new or byproduct use;
(B) a sale of peanuts or oilseeds for the ex-
traction of oil;
(C) a sale for seed or feed if the sale will
not substantially impair any loan program;
(D) a sale of a commodity that has sub-
stantially deteriorated in quality or as to which
there is a danger of loss or waste through dete-
rioration or spoilage;
(E) a sale for the purpose of establishing
a claim arising out of a contract or against a
person who has committed fraud, misrepresen-
tation, or other wrongful act with respect to the
commodity;
(F) a sale for export, as determined by the
Corporation; and
(G) a sale for other than a primary use.
(3) PRESIDENTIAL DISASTER AREAS.—
(A) IN GENERAL.—Notwithstanding para-
graph (1), on such terms and conditions as the
Secretary may consider in the public interest,
the Corporation may make available any com-
modity or product owned or controlled by the
Corporation for use in relieving distress—
(i) in any area in the United States
(including the Virgin Islands) declared by
the President to be an acute distress area
because of unemployment or other eco-
nomic cause, if the President finds that the
use will not displace or interfere with nor-
mal marketing of agricultural commodities;
and
(ii) in connection with any major dis-
aster determined by the President to war-
rant assistance by the Federal Government
under the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42
U.S.C. 5121 et seq.).
(B) COSTS.—Except on a reimbursable
basis, the Corporation shall not bear any costs
in connection with making a commodity avail-
able under subparagraph (A) beyond the cost of
the commodity to the Corporation incurred in—
(i) the storage of the commodity; and
(ii) the handling and transportation
costs in making delivery of the commodity
to designated agencies at 1 or more central
locations in each State or other area.
(4) EFFICIENT
OPERATIONS.—Paragraph (1)
shall not apply to the sale of a commodity the dis-
position of which is desirable in the interest of the
effective and efficient conduct of the operations of
the Corporation because of the small quantity of the
commodity involved, or because of the age, location,
or questionable continued storability of the commod-
ity.
SEC. 105. PAYMENT LIMITATIONS.
(a) IN GENERAL.—Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended by striking para-
graphs (1) through (4) and inserting the following:
‘‘(1) LIMITATION ON PAYMENTS UNDER PRO-
DUCTION
FLEXIBILITY
CONTRACTS.—The 
total
amount of contract payments made under section
103 of the Agricultural Market Transition Act to a
person under 1 or more production flexibility con-
tracts entered into under the section during any fis-
cal year may not exceed $40,000.
‘‘(2) LIMITATION ON MARKETING LOAN GAINS
AND LOAN DEFICIENCY PAYMENTS.—For each of the
1996 through 2002 crops of loan commodities, the
total amount of payments specified in paragraph (3)
that a person shall be entitled to receive under sec-
tion 104 of the Agricultural Market Transition Act
for one or more loan commodities may not exceed
$75,000.
‘‘(3) DESCRIPTION OF PAYMENTS SUBJECT TO
LIMITATION.—The payments referred to in para-
graph (2) are the following:
‘‘(A) Any gain realized by a producer from
repaying a marketing assistance loan for a crop
of any loan commodity at a lower level than the
original loan rate established for the loan com-
modity under section 104(b) of the Agricultural
Market Transition Act.
‘‘(B) Any loan deficiency payment received
for a loan commodity under section 104(e) of
the Act.
‘‘(4) DEFINITIONS.—In this title, the terms
‘contract payment’ and ‘loan commodity’ have the
meaning given those terms in section 102 of the Ag-
ricultural Market Transition Act.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1001A of the Food Security Act of
1985 (7 U.S.C. 1308–1) is amended—
(A) in subsection (a)(1), by striking
‘‘under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.)’’; and
(B) in subsection (b)(1), by striking
‘‘under the Agricultural Act of 1949’’.
(2) Section 1001C(a) of the Act (7 U.S.C.
1308–3(a)) is amended—
(A) by striking ‘‘For each of the 1991
through 1997 crops, any’’ and inserting ‘‘Any’’;
(B) by striking ‘‘production adjustment
payments, price support program loans, pay-
ments, or benefits made available under the Ag-
ricultural Act of 1949 (7 U.S.C. 1421 et seq.),’’
and inserting ‘‘loans or payments made avail-
able under title I of the Agricultural Market
Transition Act,’’; and
(C) by striking ‘‘during the 1989 through
1997 crop years’’.
SEC. 106. PEANUT PROGRAM.
(a) QUOTA PEANUTS.—
(1) AVAILABILITY OF LOANS.—The Secretary
shall make nonrecourse loans available to producers
of quota peanuts.
(2) LOAN RATE.—The national average quota
loan rate for quota peanuts shall be $610 per ton.
(3) INSPECTION, HANDLING, OR
STORAGE.—
The loan amount may not be reduced by the Sec-
retary by any deductions for inspection, handling, or
storage.
(4) LOCATION AND OTHER FACTORS.—The Sec-
retary may make adjustments in the loan rate for
quota peanuts for location of peanuts and such other
factors as are authorized by section 104(i)(1).
(5) OFFERS FROM HANDLERS.—In the case of
any producer who had an offer available from a han-
dler to purchase quota peanuts, for delivery within
the same county or a contiguous county, at a price
equal to or greater than the applicable quota sup-
port rate, the Secretary shall reduce the support
rate by 5 percent for the peanuts that were subject
to the offer.
(b) ADDITIONAL PEANUTS.—
(1) IN GENERAL.—The Secretary shall make
nonrecourse loans available to producers of addi-
tional peanuts at such rates as the Secretary finds
appropriate, taking into consideration the demand
for peanut oil and peanut meal, expected prices of
other vegetable oils and protein meals, and the de-
mand for peanuts in foreign markets.
(2) ANNOUNCEMENT.—The Secretary shall an-
nounce the loan rate for additional peanuts of each
crop not later than February 15 preceding the mar-
keting year for the crop for which the loan rate is
being determined.
(c) AREA MARKETING ASSOCIATIONS.—
(1) WAREHOUSE STORAGE LOANS.—
(A) IN
GENERAL.—In carrying out sub-
sections (a) and (b), the Secretary shall make
warehouse storage loans available in each of the
producing areas (described in section 1446.95
of title 7 of the Code of Federal Regulations
(January 1, 1989)) to a designated area mar-
keting association of peanut producers that is
selected and approved by the Secretary and
that is operated primarily for the purpose of
conducting the loan activities. The Secretary
may not make warehouse storage loans avail-
able to any cooperative that is engaged in oper-
ations or activities concerning peanuts other
than those operations and activities specified in
this section and section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) ADMINISTRATIVE
AND
SUPERVISORY
ACTIVITIES.—An area marketing association
shall be used in administrative and supervisory
activities relating to loans and marketing activi-
ties under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C.
1359a).
(C) ASSOCIATION COSTS.—Loans made to
the association under this paragraph shall in-
clude such costs as the area marketing associa-
tion reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e
of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(2) POOLS FOR QUOTA AND ADDITIONAL PEA-
NUTS.—
(A) IN GENERAL.—The Secretary shall re-
quire that each area marketing association es-
tablish pools and maintain complete and accu-
rate records by area and segregation for quota
peanuts handled under loan and for additional
peanuts placed under loan, except that separate
pools shall be established for Valencia peanuts
produced in New Mexico. Bright hull and dark
hull Valencia peanuts shall be considered as
separate types for the purpose of establishing
the pools.
(B) NET GAINS.—Net gains on peanuts in
each pool, unless otherwise approved by the
Secretary, shall be distributed only to producers
who placed peanuts in the pool and shall be dis-
tributed in proportion to the value of the pea-
nuts placed in the pool by each producer. Net
gains for peanuts in each pool shall consist of
the following:
(i) QUOTA PEANUTS.—For quota pea-
nuts, the net gains over and above the loan
indebtedness and other costs or losses in-
curred on peanuts placed in the pool.
(ii) ADDITIONAL PEANUTS.—For ad-
ditional peanuts, the net gains over and
above the loan indebtedness and other
costs or losses incurred on peanuts placed
in the pool for additional peanuts.
(d) LOSSES.—Losses in quota area pools shall be cov-
ered using the following sources in the following order of
priority:
(1) 
TRANSFERS
FROM
ADDITIONAL
LOAN
POOLS.—The proceeds due any producer from any
pool shall be reduced by the amount of any loss that
is incurred with respect to peanuts transferred from
an additional loan pool to a quota loan pool by the
producer under section 358–1(b)(8) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1358–
1(b)(8)).
(2) OTHER PRODUCERS IN SAME POOL.—Fur-
ther losses in an area quota pool shall be offset by
reducing the gain of any producer in the pool by the
amount of pool gains attributed to the same pro-
ducer from the sale of additional peanuts for domes-
tic and export edible use.
(3) BUY-BACK GAINS WITHIN AREA.—Further
losses in an area quota pool shall be offset by gains
or profits attributable to sales of additional peanuts
in that area pursuant to the provisions of section
358e(g)(1)(A) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359a(g)(1)(A)).
(4) USE OF MARKETING ASSESSMENTS.—The
Secretary shall use funds collected under subsection
(g) (except funds attributable to handlers) to offset
further losses in area quota pools. The Secretary
shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this
subsection that the Secretary determines are not re-
quired to cover losses in area quota pools.
(5) CROSS
COMPLIANCE.—Further losses in
area quota pools, other than losses incurred as a re-
sult of transfers from additional loan pools to quota
loan pools under section 358–1(b)(8) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1358–
1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than
separate type pools established under subsection
(c)(2)(A) for Valencia peanuts produced in New
Mexico) in such manner as the Secretary shall by
regulation prescribe. If losses in area quota pools
have not been entirely offset through use of the pre-
ceding sentence, then further losses shall be offset
by gains or profits attributable to sales of additional
peanuts 
in 
other 
areas 
pursuant 
to 
section
358e(g)(1)(A) 
of 
such 
Act 
(7 
U.S.C.
1359a(g)(1)(A)).
(6) INCREASED ASSESSMENTS.—If use of the
authorities provided in the preceding paragraphs is
not sufficient to cover losses in an area quota pool,
the Secretary shall increase the marketing assess-
ment established under subsection (g) by such an
amount as the Secretary considers necessary to
cover the losses. The increased assessment shall
apply only to quota peanuts covered by that pool.
Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the
Secretary to cover losses in that pool.
(e) DISAPPROVAL
OF
QUOTAS.—Notwithstanding
any other provision of law, no loan for quota peanuts may
be made available by the Secretary for any crop of peanuts
with respect to which poundage quotas have been dis-
approved by producers, as provided for in section 358–
1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358–1(d)).
(f) QUALITY IMPROVEMENT.—
(1) IN
GENERAL.—With respect to peanuts
under loan, the Secretary shall—
(A) promote the crushing of peanuts at a
greater risk of deterioration before peanuts of a
lesser risk of deterioration;
(B) ensure that all Commodity Credit Cor-
poration inventories of peanuts sold for domes-
tic edible use must be shown to have been offi-
cially inspected by licensed Department inspec-
tors both as farmer stock and shelled or cleaned
in-shell peanuts;
(C) continue to endeavor to operate the
peanut program so as to improve the quality of
domestic peanuts and ensure the coordination
of activities under the Peanut Administrative
Committee established under Marketing Agree-
ment No. 146, regulating the quality of domes-
tically produced peanuts (under the Agricul-
tural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the
peanut program as a result of this subsection
requiring additional production or handling at
the farm level shall be reflected as an upward
adjustment in the Department loan schedule.
(2) EXPORTS AND OTHER PEANUTS.—The Sec-
retary shall require that all peanuts in the domestic
and export markets fully comply with all quality
standards under Marketing Agreement No. 146.
(g) MARKETING ASSESSMENT.—
(1) IN GENERAL.—The Secretary shall provide
for a nonrefundable marketing assessment. The as-
sessment shall be made on a per pound basis in an
amount equal to 1.1 percent for each of the 1994
and 1995 crops, 1.15 percent for the 1996 crop, and
1.2 percent for each of the 1997 through 2002
crops, of the national average quota or additional
peanut loan rate for the applicable crop.
(2) FIRST PURCHASERS.—
(A) IN
GENERAL.—Except as provided
under paragraphs (3) and (4), the first pur-
chaser of peanuts shall—
(i) collect from the producer a mar-
keting assessment equal to the quantity of
peanuts acquired multiplied by—
(I) in the case of each of the
1994 and 1995 crops, .55 percent of
the applicable national average loan
rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent
of the applicable national average loan
rate;
(ii) pay, in addition to the amount col-
lected under clause (i), a marketing assess-
ment in an amount equal to the quantity
of peanuts acquired multiplied by .55 per-
cent of the applicable national average loan
rate; and
(iii) remit the amounts required under
clauses (i) and (ii) to the Commodity Cred-
it Corporation in a manner specified by the
Secretary.
(B) DEFINITION OF FIRST PURCHASER.—
In this subsection, the term ‘‘first purchaser’’
means a person acquiring peanuts from a pro-
ducer except that in the case of peanuts for-
feited by a producer to the Commodity Credit
Corporation, the term means the person acquir-
ing the peanuts from the Commodity Credit
Corporation.
(3) OTHER PRIVATE MARKETINGS.—In the case
of a private marketing by a producer directly to a
consumer through a retail or wholesale outlet or in
the case of a marketing by the producer outside of
the continental United States, the producer shall be
responsible for the full amount of the assessment
and shall remit the assessment by such time as is
specified by the Secretary.
(4) LOAN PEANUTS.—In the case of peanuts
that are pledged as collateral for a loan made under
this section, the grower portion of the assessment
shall be deducted from the proceeds of the loan. The
remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of com-
puting net gains on peanuts under this section, the
reduction in loan proceeds shall be treated as having
been paid to the producer.
(5) PENALTIES.—If any person fails to collect
or remit the reduction required by this subsection or
fails to comply with the requirements for record-
keeping or otherwise as are required by the Sec-
retary to carry out this subsection, the person shall
be liable to the Secretary for a civil penalty up to
an amount determined by multiplying—
(A) the quantity of peanuts involved in the
violation; by
(B) the national average quota peanut rate
for the applicable crop year.
(6) ENFORCEMENT.—The Secretary may en-
force this subsection in the courts of the United
States.
(h) CROPS.—Subsections (a) through (f) shall be ef-
fective only for the 1996 through 2002 crops of peanuts.
(i) POUNDAGE QUOTAS.—
(1) IN GENERAL.—Part VI of subtitle B of title
III of the Agricultural Adjustment Act of 1938 is
amended—
(A) in section 358–1 (7 U.S.C. 1358–1)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1997 CROPS OF’’;
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by
striking ‘‘of the 1991 through 1997 mar-
keting years’’ each place it appears and in-
serting ‘‘marketing year’’;
(iii) in subsection (a)(3), by striking
‘‘1990’’ and inserting ‘‘1990, for the 1991
through 1995 marketing years, and 1995,
for the 1996 through 2002 marketing
years’’;
(iv) in subsection (b)(1)(A)—
(I) by striking ‘‘each of the 1991
through 1997 marketing years’’ and
inserting ‘‘each marketing year’’; and
(II) in clause (i), by inserting be-
fore the semicolon the following: ‘‘, in
the case of the 1991 through 1995
marketing years, and the 1995 mar-
keting year, in the case of the 1996
through 2002 marketing years’’; and
(v) in subsection (f), by striking
‘‘1997’’ and inserting ‘‘2002’’;
(B) in section 358b (7 U.S.C. 1358b)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1995 CROPS OF’’; and
(ii) in subsection (c), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(C) 
in 
section 
358c(d) 
(7 
U.S.C.
1358c(d)), by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(D) in section 358e (7 U.S.C. 1359a)—
(i) in the section heading, by striking
‘‘FOR 1991 THROUGH 1997 CROPS OF
PEANUTS’’; and
(ii) in subsection (i), by striking
‘‘1997’’ and inserting ‘‘2002’’.
(2) 
ELIGIBILITY
FOR
FARM
POUNDAGE
QUOTA.—
(A) CERTAIN FARMS INELIGIBLE.—Section
358–1(b)(1) of the Act (7 U.S.C. 1358–1(b)(1))
is amended by adding at the end the following:
‘‘(D) CERTAIN
FARMS
INELIGIBLE
TO
HOLD
QUOTA.—Effective beginning with the
1997 marketing year, the Secretary shall no
longer establish farm poundage quotas under
subparagraph (A) for farms—
‘‘(i) owned or controlled by munici-
palities, airport authorities, schools, col-
leges, refuges, and other public entities
(not including universities for research
purposes); or
‘‘(ii) owned or controlled by a person
who is not a producer and resides in an-
other State.’’.
(B) ALLOCATION
OF
QUOTA
TO
OTHER
FARMS.—Section 358–1(b)(2) of the Act (7
U.S.C. 1358–1(b)(2)) is amended by adding at
the end the following:
‘‘(E) TRANSFER OF QUOTA FROM INELI-
GIBLE FARMS.—Any farm poundage quota held
on or after January 1, 1997, by a farm de-
scribed in paragraph (1)(D) shall be allocated
to other farms in the same State on such basis
as the Secretary may by regulation prescribe.’’.
(3) ELIMINATION OF QUOTA FLOOR.—Section
358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is
amended by striking the second sentence.
(4) TEMPORARY QUOTA ALLOCATION.—Section
358–1 of the Act (7 U.S.C. 1358–1) is amended—
(A) in subsection (a)(1), by striking ‘‘do-
mestic edible, seed,’’ and inserting ‘‘domestic
edible use (except seed)’’;
(B) in subsection (b)(2)—
(i) in subparagraph (A), by striking
‘‘subparagraph (B) and subject to’’; and
(ii) by striking subparagraph (B) and
inserting the following:
‘‘(B) TEMPORARY QUOTA ALLOCATION.—
‘‘(i) ALLOCATION RELATED TO SEED
PEANUTS.—Temporary allocation of quota
pounds for the marketing year only in
which the crop is planted shall be made to
producers for each of the 1996 through
2002 marketing years as provided in this
subparagraph.
‘‘(ii) 
QUANTITY.—The 
temporary
quota allocation shall be equal to the
pounds of seed peanuts planted on the
farm, as may be adjusted under regula-
tions prescribed by the Secretary.
‘‘(iii) ADDITIONAL QUOTA.—The tem-
porary allocation of quota pounds under
this paragraph shall be in addition to the
farm poundage quota otherwise established
under this subsection and shall be credited,
for the applicable marketing year only, in
total to the producer of the peanuts on the
farm in a manner prescribed by the Sec-
retary.
‘‘(iv) EFFECT
OF
OTHER
REQUIRE-
MENTS.—Nothing in this section alters or
changes the requirements regarding the
use of quota and additional peanuts estab-
lished by section 358e(b).’’; and
(C) in subsection (e)(3), strike ‘‘and seed
and use on a farm’’.
(5) SPRING AND FALL TRANSFERS WITHIN A
STATE.—Section 358b(a)(1) of the Act (7 U.S.C.
1358b(a)(1)) is amended—
(A) by striking ‘‘, conditions, or limita-
tions’’ in the matter preceding the subpara-
graphs and inserting ‘‘and conditions’’;
(B) by striking ‘‘any such lease’’ in the
matter preceding the subparagraphs and insert-
ing ‘‘any such sale or lease’’; and
(C) by striking ‘‘in the fall or after the
normal planting season—’’ and subparagraphs
(A) and (B) and inserting the following: ‘‘in the
spring (or before the normal planting season)
or in the fall (or after the normal planting sea-
son) with the owner or operator of a farm lo-
cated within any county in the same State. In
the case of a fall transfer or a transfer after the
normal planting season, the transfer may be
made only if not less than 90 percent of the
quota (the farm quota exclusive of temporary
quota transfers), plus any poundage quota
transferred to the farm under this subsection,
has been planted or considered planted on the
farm from which the quota is to be leased.’’.
(6) UNDERMARKETINGS.—Part VI of subtitle B
of title III of the Act is amended—
(A) in section 358–1(b) (7 U.S.C. 1358–
1(b))—
(i) in paragraph (1)(B), by striking
‘‘including—’’ and clauses (i) and (ii) and
inserting ‘‘including any increases resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).’’;
(ii) in paragraph (3)(B), by striking
‘‘include—’’ and clauses (i) and (ii) and in-
serting ‘‘include any increase resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).’’;
and
(iii) by striking paragraphs (8) and
(9); and
(B) 
in 
section 
358b(a) 
(7 
U.S.C.
1358b(a))—
(i) in paragraph (1), by striking ‘‘(in-
cluding any applicable under marketings)’’
both places it appears;
(ii) in paragraph (2), by striking ‘‘(in-
cluding any applicable under marketings)’’;
and
(iii) in paragraph (3), by striking
‘‘(including 
any 
applicable
undermarketings)’’.
(7) DISASTER TRANSFERS.—Section 358–1(b)
of the Act (7 U.S.C. 1358–1(b)), as amended by
paragraph (6)(A)(iii), is further amended by adding
at the end the following:
‘‘(8) DISASTER TRANSFERS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), additional peanuts produced
on a farm from which the quota poundage was
not harvested and marketed because of drought,
flood, or any other natural disaster, or any
other condition beyond the control of the pro-
ducer, may be transferred to the quota loan
pool for pricing purposes on such basis as the
Secretary shall by regulation provide.
‘‘(B) LIMITATION.—The poundage of pea-
nuts transferred under subparagraph (A) shall
not exceed the difference between—
‘‘(i) the total quantity of peanuts
meeting quality requirements for domestic
edible use, as determined by the Secretary,
marketed from the farm; and
‘‘(ii) the total farm poundage quota,
excluding quota pounds transferred to the
farm in the fall.
‘‘(C) SUPPORT
RATE.—Peanuts trans-
ferred under this paragraph shall be supported
at 70 percent of the quota support rate for the
marketing years in which the transfers occur.
The transfers for a farm shall not exceed 25
percent of the total farm quota pounds, exclud-
ing pounds transferred in the fall.’’.
SEC. 107. SUGAR PROGRAM.
(a) SUGARCANE.—The Secretary shall make loans
available to processors of domestically grown sugarcane at
a rate equal to 18 cents per pound for raw cane sugar.
(b) SUGAR BEETS.—The Secretary shall make loans
available to processors of domestically grown sugar beets
at a rate equal to 22.9 cents per pound for refined beet
sugar.
(c) REDUCTION IN LOAN RATES.—
(1) REDUCTION
REQUIRED.—The Secretary
shall reduce the loan rate specified in subsection (a)
for domestically grown sugarcane and subsection (b)
for domestically grown sugar beets if the Secretary
determines that negotiated reductions in export sub-
sidies and domestic subsidies provided for sugar of
the European Union and other major sugar growing,
producing, and exporting countries in the aggregate
exceed the commitments made as part of the Agree-
ment on Agriculture.
(2) EXTENT
OF
REDUCTION.—The Secretary
shall not reduce the loan rate under subsection (a)
or (b) below a rate that provides an equal measure
of support to that provided by the European Union
and other major sugar growing, producing, and ex-
porting countries, based on an examination of both
domestic and export subsidies subject to reduction
in the Agreement on Agriculture.
(3) ANNOUNCEMENT
OF
REDUCTION.—The
Secretary shall announce any loan rate reduction to
be made under this subsection as far in advance as
is practicable.
(4) MAJOR SUGAR COUNTRIES DEFINED.—For
purposes of this subsection, the term ‘‘major sugar
growing, 
producing, 
and 
exporting 
countries’’
means—
(A) the countries of the European Union;
and
(B) the ten foreign countries not covered
by subparagraph (A) that the Secretary deter-
mines produce the greatest amount of sugar.
(5) AGREEMENT ON AGRICULTURE DEFINED.—
For purposes of this subsection, the term ‘‘Agree-
ment on Agriculture’’ means the Agreement on Agri-
culture referred to in section 101(d)(2) of the Uru-
guay 
Round 
Agreements 
Act 
(19 
U.S.C.
3511(d)(2)).
(d) TERM OF LOANS.—
(1) IN
GENERAL.—Loans under this section
during any fiscal year shall be made available not
retary under this section during the fiscal year shall
be changed by the Secretary into a nonrecourse loan.
(3) PROCESSOR ASSURANCES.—If the Secretary
is 
required 
under 
paragraph 
(2) 
to 
make
nonrecourse loans available during a fiscal year or to
change recourse loans into nonrecourse loans, the
Secretary shall obtain from each processor that re-
ceives a loan under this section such assurances as
the Secretary considers adequate to ensure that the
processor will provide payments to producers that
are proportional to the value of the loan received by
the processor for sugar beets and sugarcane deliv-
ered by producers served by the processor. The Sec-
retary may establish appropriate minimum payments
for purposes of this paragraph.
(f) MARKETING ASSESSMENT.—
(1) SUGARCANE.—Effective for marketings of
raw cane sugar during the 1996 through 2003 fiscal
years, the first processor of sugarcane shall remit to
the Commodity Credit Corporation a nonrefundable
marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal
year 1996, 1.1 percent of the loan rate estab-
lished under subsection (a) per pound of raw
cane sugar, processed by the processor from do-
mestically produced sugarcane or sugarcane
molasses, that has been marketed (including the
transfer or delivery of the sugar to a refinery
for further processing or marketing); and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.375 per-
cent of the loan rate established under sub-
section (a) per pound of raw cane sugar, proc-
essed by the processor from domestically pro-
duced sugarcane or sugarcane molasses, that
has been marketed (including the transfer or
delivery of the sugar to a refinery for further
processing or marketing).
(2) SUGAR BEETS.—Effective for marketings of
beet sugar during the 1996 through 2003 fiscal
years, the first processor of sugar beets shall remit
to the Commodity Credit Corporation a nonrefund-
able marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal
year 1996, 1.1794 percent of the loan rate es-
tablished under subsection (a) per pound of
beet sugar, processed by the processor from do-
mestically produced sugar beets or sugar beet
molasses, that has been marketed; and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.47425
percent of the loan rate established under sub-
section (a) per pound of beet sugar, processed
by the processor from domestically produced
sugar beets or sugar beet molasses, that has
been marketed.
(3) COLLECTION.—
(A) TIMING.—A marketing assessment re-
quired under this subsection shall be collected
on a monthly basis and shall be remitted to the
Commodity Credit Corporation not later than
30 days after the end of each month. Any cane
sugar or beet sugar processed during a fiscal
year that has not been marketed by September
30 of the year shall be subject to assessment on
that date. The sugar shall not be subject to a
second assessment at the time that it is mar-
keted.
(B) MANNER.—Subject to subparagraph
(A), marketing assessments shall be collected
under this subsection in the manner prescribed
by the Secretary and shall be nonrefundable.
(4) PENALTIES.—If any person fails to remit
the assessment required by this subsection or fails to
comply with such requirements for recordkeeping or
otherwise as are required by the Secretary to carry
out this subsection, the person shall be liable to the
Secretary for a civil penalty up to an amount deter-
mined by multiplying—
(A) the quantity of cane sugar or beet
sugar involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) ENFORCEMENT.—The Secretary may en-
force this subsection in a court of the United States.
(g) FORFEITURE PENALTY.—
(1) IN GENERAL.—A penalty shall be assessed
on the forfeiture of any sugar pledged as collateral
for a nonrecourse loan under this section.
(2) CANE SUGAR.—The penalty for cane sugar
shall be 1 cent per pound.
(3) BEET SUGAR.—The penalty for beet sugar
shall bear the same relation to the penalty for cane
sugar as the marketing assessment for sugar beets
bears to the marketing assessment for sugarcane.
(4) EFFECT OF FORFEITURE.—Any payments
owed producers by a processor that forfeits any
sugar pledged as collateral for a nonrecourse loan
shall be reduced in proportion to the loan forfeiture
penalty incurred by the processor.
(h) INFORMATION REPORTING.—
(1) DUTY OF PROCESSORS AND REFINERS TO
REPORT.—A sugarcane processor, cane sugar re-
finer, and sugar beet processor shall furnish the Sec-
retary, on a monthly basis, such information as the
Secretary may require to administer sugar pro-
grams, including the quantity of purchases of sugar-
cane, sugar beets, and sugar, and production, impor-
tation, distribution, and stock levels of sugar.
(2) PENALTY.—Any person willfully failing or
refusing to furnish the information, or furnishing
willfully any false information, shall be subject to a
civil penalty of not more than $10,000 for each such
violation.
(3) MONTHLY REPORTS.—Taking into consider-
ation the information received under paragraph (1),
the Secretary shall publish on a monthly basis com-
posite data on production, imports, distribution, and
stock levels of sugar.
(i) MARKETING ALLOTMENTS.—Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359aa et seq.) is repealed.
(j) CROPS.—This section (other than subsection (i))
shall be effective only for the 1996 through 2002 crops
of sugar beets and sugarcane.
SEC. 108. ADMINISTRATION.
(a) COMMODITY CREDIT CORPORATION.—
(1) USE
OF
CORPORATION.—The Secretary
shall carry out this title through the Commodity
Credit Corporation.
(2) PROHIBITION
ON
SALARIES
AND
EX-
PENSES.—Notwithstanding any other provision of
law, no funds of the Corporation shall be used for
any salary or expense of any officer, employee, or
agency of the Department of Agriculture.
(b) DETERMINATIONS
BY SECRETARY.—A deter-
mination made by the Secretary under this title or the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.) shall be final and conclusive.
(c) REGULATIONS.—The Secretary may issue such
regulations as the Secretary determines necessary to carry
out this title.
SEC. 109. ELIMINATION OF PERMANENT PRICE SUPPORT
AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—
The Agricultural Adjustment Act of 1938 is amended—
(1) in title III—
(A) in subtitle B—
(i) by striking parts II through V (7
U.S.C. 1326–1351); and
(ii) in part VI—
(I) by moving subsection (c) of
section 358d (7 U.S.C. 1358d(c)) to
appear after section 301(b)(17) (7
U.S.C. 1301(b)(17)), redesignating
the subsection as paragraph (18), and
moving the margin of the paragraph 2
ems to the right; and
(II) by striking sections 358,
358a, and 358d (7 U.S.C. 1358,
1358a, and 1359); and
(B) by striking subtitle D (7 U.S.C.
1379a–1379j); and
(2) by striking title IV (7 U.S.C. 1401–1407).
(b) AGRICULTURAL ACT OF 1949.—
(1) TRANSFER
OF
CERTAIN
SECTIONS.—The
Agricultural Act of 1949 is amended—
(A) by transferring sections 106, 106A,
and 106B (7 U.S.C. 1445, 1445–1, 1445–2) to
appear after section 314A of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1314–1) and
redesignating the transferred sections as sec-
tions 315, 315A, and 315B, respectively;
(B) by transferring section 111 (7 U.S.C.
1445f) to appear after section 304 of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C.
1304) and redesignating the transferred section
as section 305; and
(C) by transferring sections 404 and 416
(7 U.S.C. 1424 and 1431) to appear after sec-
tion 390 of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1390) and redesignating the
transferred sections as sections 390A and
390B, respectively.
(2) REPEAL.—The Agricultural Act of 1949 (7
U.S.C. 1421 et seq.) (as amended by paragraph (1))
is repealed.
(c) CONFORMING AMENDMENTS.—
(1) Section 361 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1361) is amended by striking
‘‘, corn, wheat, cotton, peanuts, and rice, estab-
lished’’.
(2) 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 ‘‘cotton, rice, peanuts, or’’; and
(B) in the first sentence of subsection (b),
by striking ‘‘cotton, rice, peanuts or’’.
SEC. 110. EFFECT OF AMENDMENTS.
(a) EFFECT ON PRIOR CROPS.—Except as otherwise
specifically provided and notwithstanding any other provi-
sion of law, this title and the amendments made by this
title shall not affect the authority of the Secretary to carry
out a price support or production adjustment program for
any of the 1991 through 1995 crops of an agricultural
commodity established under a provision of law in effect
immediately before the date of the enactment of this Act.
(b) LIABILITY.—A provision of this title or an
amendment made by this title shall not affect the liability
of any person under any provision of law as in effect be-
fore the date of the enactment of this Act.
TITLE II—DAIRY
SEC. 201. MILK PRICE SUPPORT PROGRAM.
(a) SUPPORT ACTIVITIES.—During the period begin-
ning on the date of the enactment of this Act and ending
December 31, 2000, the Secretary of Agriculture shall
support the price of milk produced in the 48 contiguous
States through the purchase of cheese, butter, and nonfat
dry milk produced from the milk.
(b) RATE.—The price of milk shall be supported at
the following rates per hundredweight for milk containing
3.67 percent butterfat:
(1) During calendar year 1996, $10.15.
(2) During calendar year 1997, $10.05.
(3) During calendar year 1998, $9.95.
(4) During calendar year 1999, $9.85.
(5) During calendar year 2000, $9.75.
(c) BID
PRICES.—The support purchase prices
under this section for each of the products of milk (but-
ter, cheese, and nonfat dry milk) announced by the Sec-
retary shall be the same for all of that product sold by
persons offering to sell the product to the Secretary. The
purchase prices shall be sufficient to enable plants of av-
erage efficiency to pay producers, on average, a price that
is not less than the rate of price support for milk in ef-
fect under subsection (b).
(d) SPECIAL RULE FOR BUTTER AND NONFAT DRY
MILK—
(1) ALLOCATION
OF
PURCHASE
PRICES.—The
Secretary may allocate the rate of price support be-
tween the purchase prices for nonfat dry milk and
butter in a manner that will result in the lowest level
of expenditures by the Commodity Credit Corpora-
tion or achieve such other objectives as the Secretary
considers appropriate. The Secretary shall notify the
Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate of the allocation.
(2) 
TIMING
OF
PURCHASE
PRICE
ADJUST-
MENTS.—The Secretary may make any such adjust-
ments in the purchase prices for nonfat dry milk
and butter the Secretary considers to be necessary
not more than twice in each calendar year.
(e) REFUNDS OF 1995AND 1996 ASSESSMENTS.—
(1) REFUND
REQUIRED.—The Secretary shall
provide for a refund of the entire reduction required
under section 204(h)(2) of the Agricultural Act of
1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day
before the date of the enactment of this Act, in the
price of milk received by a producer during calendar
year 1995 or 1996, if the producer provides evidence
that the producer did not increase marketings in cal-
endar year 1995 or 1996 when compared to cal-
endar year 1994 or 1995, respectively.
(2) EXCEPTION.—This subsection shall not apply
with respect to a producer for a particular calendar
year if the producer has already received a refund
under section 204(h) of the Agricultural Act of 1949
for the same fiscal year before the date of the enact-
ment of this Act.
(3) TREATMENT OF REFUND.—A refund under
this subsection shall not be considered as any type
of price support or payment for purposes of sections
1211 and 1221 of the Food Security Act of 1985
(16 U.S.C. 3811 and 3821).
(f) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall carry out the program authorized by this sec-
tion through the Commodity Credit Corporation.
(g) PERIOD OF EFFECTIVENESS.—This section shall
be effective only during the period beginning on the date
of the enactment of this Act and ending on December 31,
2000. The program authorized by this section shall ter-
minate on December 31, 2000, and shall be considered
to have expired notwithstanding section 257 of the Bal-
anced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 907).
SEC. 202. CONSOLIDATION AND REFORM OF FEDERAL MILK
MARKETING ORDERS.
(a) AMENDMENT
OF ORDERS.—As soon as prac-
ticable after the date of the enactment of this Act, the
Secretary shall amend Federal milk marketing orders is-
sued under section 8c of the Agricultural Adjustment Act
(7 U.S.C. 608c), reenacted with amendments by the Ag-
ricultural Marketing Agreement Act of 1937, to—
(1) limit the number of Federal milk marketing
orders to between 10 and 14 orders; and
(2) provide for multiple basing points for the pric-
ing of milk.
(b) EXPEDITED PROCESS.—Using the rulemaking
procedures provided in section 553 of title 5, United
States Code, the Secretary shall—
(1) announce the amendments required under
subsection (a) not later than December 31, 1998;
and
(2) implement the amendments not later than De-
cember 31, 2000.
(c) FUNDING.—Effective beginning January 1,
2001, the Secretary shall not use any funds to administer
more than 14 Federal milk marketing orders.
(d) STUDY REGARDING FURTHER REFORMS.—Not
later than January 1, 1998, the Secretary of Agriculture
shall submit to Congress a report—
(1) reviewing the Federal milk marketing order
system established pursuant to section 8c of the Ag-
ricultural Adjustment Act (7 U.S.C. 608c), reen-
acted with amendments by the Agricultural Market-
ing Agreement Act of 1937, in light of the reforms
required by subsection (a); and
(2) containing such recommendations as the Sec-
retary considers appropriate for further improve-
ments and reforms to the Federal milk marketing
order system.
SEC. 203. DAIRY EXPORT INCENTIVE PROGRAM.
(a) DURATION.—Section 153(a) of the Food Secu-
rity Act of 1985 (15 U.S.C. 713a–14) is amended by
striking ‘‘2001’’ and inserting ‘‘2002’’.
(b) SOLE DISCRETION.—Section 153(b) of the Food
Security Act of 1985 is amended by inserting ‘‘sole’’ be-
fore ‘‘discretion’’.
(c) ELEMENTS OF PROGRAM.—Section 153(c) of the
Food Security Act of 1985 is amended—
(1) by striking ‘‘and’’ at the end of paragraph (1);
(2) by striking the period at the end of paragraph
(2) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) the maximum volume of dairy product ex-
ports allowable consistent with the obligations of the
United States as a member of the World Trade Or-
ganization is exported under the program each year
(minus the volume sold under section 1163 of the
Food Security Act of 1985 (Public Law 99–198; 7
U.S.C. 1731 note) during that year), except to the
extent that the export of such a volume under the
program would, in the judgment of the Secretary,
exceed the limitations on the value set forth in sub-
section (f); and
‘‘(4) payments may be made under the program
for exports to any destination in the world for the
purpose of market development, except a destination
in a country with respect to which shipments from
the United States are otherwise restricted by law.’’.
(d) MARKET DEVELOPMENT.—Section 153(e)(1) of
the Food Security Act of 1985 is amended—
(1) by striking ‘‘and’’ and inserting ‘‘the’’; and
(2) by inserting before the period the following: ‘‘,
and any additional amount that may be required to
assist in the development of world markets for Unit-
ed States dairy products’’.
(e) MAXIMUM ALLOWABLE AMOUNTS.—Section 153
of the Food Security Act of 1985 is amended by adding
at the end the following:
‘‘(f) REQUIRED FUNDING.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Commodity Credit Corporation shall
in each year use money and commodities for the pro-
gram under this section in the maximum amount
consistent with the obligations of the United States
as a member of the World Trade Organization,
minus the amount expended under section 1163 of
the Food Security Act of 1985 (Public Law 99–198;
7 U.S.C. 1731 note) during that year.
‘‘(2) VOLUME
LIMITATIONS.—The Commodity
Credit Corporation may not exceed the limitations
specified in subsection (c)(3) on the volume of allow-
able dairy product exports.’’.
SEC. 204. EFFECT ON FLUID MILK STANDARDS IN THE
STATE OF CALIFORNIA.
Nothing in this Act or any other provision of law
shall be construed to preempt, prohibit or otherwise limit
the authority of the State of California, directly or indi-
rectly, to establish or continue to effect any law, regula-
tion or requirement regarding—
(1) the percentage of milk solids or solids not fat
in fluid milk products sold at retail or marketed in
the State of California; or
(2) the labeling of such fluid milk products with
regard to milk solids or solids not fat.
SEC. 205. REPEAL OF MILK MANUFACTURING MARKETING
ADJUSTMENT.
Section 102 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 1446e–1) is repealed.
SEC. 206. PROMOTION.
(a) CONGRESSIONAL PURPOSE.—Section 1999B(a)
of the Fluid Milk Promotion Act of 1990 (7 U.S.C.
6401(a)) is amended—
(1) by redesignating paragraphs (6), (7) and (8)
as paragraphs (7), (8) and (9), respectively; and
(2) by inserting after paragraph (5) the following
new paragraph:
‘‘(6) the congressional purpose underlying this
subtitle is to maintain and expand markets for fluid
milk products, not to maintain or expand any proc-
essor’s share of those markets and that the subtitle
does not prohibit or restrict individual advertising or
promotion of fluid milk products since the programs
created and funded by this subtitle are not extended
to replace individual advertising and promotion ef-
forts;’’.
(b) CONGRESSIONAL POLICY.—Section 1999B(b) of
the Fluid Milk Promotion Act of 1990 (7 U.S.C.
6401(b)) is amended to read as follows:
‘‘(b) POLICY.—It is declared to be the policy of Con-
gress that it is in the public interest to authorize the es-
tablishment, through the exercise of powers provided in
this subtitle, of an orderly procedure for developing, fi-
nancing, through adequate assessments on fluid milk
products produced in the United States and carrying out
an effective, continuous, and coordinated program of pro-
motion, research, and consumer information designed to
strengthen the position of the dairy industry in the mar-
ketplace and maintain and expand domestic and foreign
markets and uses for fluid milk products, the purpose of
which is not to compete with or replace individual adver-
tising or promotion efforts designed to promote individual
brand name or trade name fluid milk products, but rath-
er to maintain and expand the markets for all fluid milk
products, with the goal and purpose of this subtitle being
a national governmental goal that authorizes and funds
programs that result in government speech promoting
government objectives.’’.
(c) RESEARCH.—Section 1999C(6) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6402(6)) is amended
to read as follows:
‘‘(6) RESEARCH.—The term ‘research’ means
market research to support advertising and pro-
motion efforts, including educational activities, re-
search directed to product characteristics, product
development, including new products or improved
technology in production, manufacturing or process-
ing of milk and the products of milk.’’.
(d) VOTING.—(1) Section 1999N(b)(2) of the Fluid
Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is
‘‘(2) subchapter C of chapter 1 of subtitle D; and
‘‘(3) chapter 4 of subtitle D.
‘‘(b) ENVIRONMENTAL QUALITY INCENTIVE PRO-
GRAM.—For each of fiscal years 1996 through 2002,
$200,000,000 of the funds of the Commodity Credit Cor-
poration shall be available for providing technical assist-
ance, cost-sharing payments, and incentive payments for
practices authorized under the environmental quality in-
centive program under chapter 4 of subtitle D. At least
50 percent of the funds made available under this sub-
section for a fiscal year shall be used to provide technical
assistance, cost-sharing payments, and incentive pay-
ments under such chapter relating to livestock produc-
tion.’’.
(b) ENVIRONMENTAL
QUALITY
INCENTIVE
PRO-
GRAM.—Subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3830 et seq.) is amended by adding
at the end the following:
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY
INCENTIVE PROGRAM
‘‘SEC. 1240. DEFINITIONS.
‘‘In this chapter and section 1241:
‘‘(1) LAND MANAGEMENT PRACTICE.—The term
‘land management practice’ means a site-specific nu-
trient or manure management, integrated pest man-
agement, irrigation management, tillage or residue
management, grazing management, or other land
management practice that the Secretary determines
is needed to protect, in the most cost effective man-
ner, water, soil, or related resources from degrada-
tion.
‘‘(2) LIVESTOCK.—The term ‘livestock’ means
mature livestock, dairy cows, beef cattle, laying hens,
turkeys, swine, sheep, and such other animals as de-
termined by the Secretary.
‘‘(3) PRODUCER.—The term ‘producer’ means a
person who is engaged in livestock or agricultural
production (as defined by the Secretary).
‘‘(4) STRUCTURAL PRACTICE.—The term ‘struc-
tural practice’ means—
‘‘(A) the establishment of an animal waste
management facility, terrace, grassed waterway,
contour grass strip, filterstrip, tailwater pit, or
other structural practice that the Secretary de-
termines is needed to protect, in the most cost
effective manner, water, soil, or related re-
sources from degradation; and
‘‘(B) the capping of abandoned wells.
‘‘SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF
ENVIRONMENTAL QUALITY INCENTIVE PRO-
GRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—During the 1996 through
2002 fiscal years, the Secretary shall provide tech-
nical assistance, cost-sharing payments, and incen-
tive payments to producers who enter into contracts
with the Secretary, through a environmental quality
incentive program.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—A producer
who implements a structural practice shall be
eligible for technical assistance or cost-sharing
payments, or both.
‘‘(B) LAND
MANAGEMENT
PRACTICES.—A
producer who performs a land management
practice shall be eligible for technical assistance
or incentive payments, or both.
‘‘(3) ELIGIBLE
LAND.—Assistance under this
chapter may be provided with respect to land that
is used for livestock or agricultural production and
on which a serious threat to water, soil, or related
resources exists, as determined by the Secretary, by
reason of the soil types, terrain, climatic, soil, topo-
graphic, flood, or saline characteristics, or other fac-
tors or natural hazards.
‘‘(4) SELECTION
CRITERIA.—In providing tech-
nical assistance, cost-sharing payments, and incen-
tive payments to producers in a region or watershed,
the Secretary shall consider—
‘‘(A) the significance of the water, soil, and
related natural resource problems; and
‘‘(B) the maximization of environmental ben-
efits per dollar expended.
‘‘(b) APPLICATION AND TERM.—
‘‘(1) IN
GENERAL.—A contract between a pro-
ducer and the Secretary under this chapter may—
‘‘(A) apply to 1 or more structural practices
or 1 or more land management practices, or
both; and
‘‘(B) have a term of not less than 5, nor
more than 10, years, as determined appropriate
by the Secretary, depending on the practice or
practices that are the basis of the contract.
‘‘(2) DUTIES OF PRODUCERS AND SECRETARY.—
To receive cost-sharing or incentive payments, or
technical assistance, participating producers shall
comply with all terms and conditions of the contract
and a plan, as established by the Secretary.
‘‘(c) STRUCTURAL PRACTICES.—
‘‘(1) COMPETITIVE OFFER.—The Secretary shall
administer a competitive offer system for producers
proposing to receive cost-sharing payments in ex-
change for the implementation of 1 or more struc-
tural practices by the producer. The competitive
offer system shall consist of—
‘‘(A) the submission of a competitive offer by
the producer in such manner as the Secretary
may prescribe; and
‘‘(B) evaluation of the offer in light of the se-
lection criteria established under subsection
(a)(4) and the projected cost of the proposal, as
determined by the Secretary.
‘‘(C) CONCURRENCE OF OWNER.—If the producer
making an offer to implement a structural practice
is a tenant of the land involved in agricultural pro-
duction, for the offer to be acceptable, the producer
shall obtain the concurrence of the owner of the land
with respect to the offer.
‘‘(d) LAND MANAGEMENT PRACTICES.—The Sec-
retary shall establish an application and evaluation proc-
ess for awarding technical assistance or incentive pay-
ments, or both, to a producer in exchange for the per-
100
formance of 1 or more land management practices by the
producer.
‘‘(e) COST-SHARING, INCENTIVE PAYMENTS, AND
TECHNICAL ASSISTANCE.—
‘‘(1) COST-SHARING PAYMENTS.—
‘‘(A) IN
GENERAL.—The Federal share of
cost-sharing payments to a producer proposing
to implement 1 or more structural practices
shall not be greater than 75 percent of the pro-
jected cost of each practice, as determined by
the Secretary, taking into consideration any
payment received by the producer from a State
or local government.
‘‘(B) OTHER PAYMENTS.—A producer shall
not be eligible for cost-sharing payments for
structural practices on eligible land under this
chapter if the producer receives cost-sharing
payments or other benefits for the same land
under chapter 1, 2, or 3.
‘‘(2) INCENTIVE PAYMENTS.—The Secretary shall
make incentive payments in an amount and at a rate
determined by the Secretary to be necessary to en-
courage a producer to perform 1 or more land man-
agement practices.
‘‘(3) TECHNICAL ASSISTANCE.—
101
‘‘(A) FUNDING.—The Secretary shall allocate
funding under this chapter for the provision of
technical assistance with respect to non-Federal
lands according to the purpose and projected
cost for which the technical assistance is pro-
vided for a fiscal year. The allocated amount
may vary according to the type of expertise re-
quired, quantity of time involved, and other fac-
tors as determined appropriate by the Sec-
retary. Funding shall not exceed the projected
cost to the Secretary of the technical assistance
provided for a fiscal year.
‘‘(B) OTHER AUTHORITIES.—The receipt of
technical assistance under this chapter shall not
affect the eligibility of the producer to receive
technical assistance under other authorities of
law available to the Secretary.
‘‘(C) PRIVATE
SOURCES.—The Secretary
shall ensure that the process of writing and de-
veloping proposals and plans for contracts
under this chapter, and of assisting in the im-
plementation of structural practices and land
management practices covered by the contracts,
are open to individuals in agribusiness, includ-
ing agricultural producers, representatives from
102
agricultural cooperatives, agricultural input re-
tail dealers, and certified crop advisers. The re-
quirements of this subparagraph shall also
apply to any other Department program using
incentive payments, technical assistance, or
cost-share payments and to pilot project pro-
grams of the Department that require plans.
‘‘(f) LIMITATION ON PAYMENTS.—
‘‘(1) IN
GENERAL.—The total amount of cost-
sharing and incentive payments paid to a person
under this chapter may not exceed—
‘‘(A) $10,000 for any fiscal year; or
‘‘(B) $50,000 for any multiyear contract.
‘‘(2) EXCEPTION TO ANNUAL LIMIT.—The Sec-
retary may exceed the limitation on the annual
amount of a payment under paragraph (1)(A) on a
case-by-case basis if the Secretary determines that a
larger payment is essential to accomplish the land
management practice or structural practice for
which the payment is made.
‘‘(3) REGULATIONS.—The Secretary shall issue
regulations that are consistent with section 1001 for
the purpose of—
‘‘(A) defining the term ‘person’ as used in
paragraph (1); and
103
‘‘(B) prescribing such rules as the Secretary
determines necessary to ensure a fair and rea-
sonable application of the limitations estab-
lished under this subsection.
‘‘(g) REGULATIONS.—Not later than 180 days after
the effective date of this subsection, the Secretary shall
issue regulations to implement the environmental quality
incentive program established under this chapter.’’.
SEC. 302. WETLANDS RESERVE PROGRAM.
(a) ENROLLMENT.—Section 1237 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837) is amended by strik-
ing subsection (b) and inserting the following:
‘‘(b) ENROLLMENT CONDITIONS.—
‘‘(1) MAXIMUM ENROLLMENT.—The total number
of acres enrolled in the wetlands reserve program
shall not exceed 975,000 acres.
‘‘(2) METHODS OF ENROLLMENT.—The Secretary
shall ensure, to the maximum extent practicable,
that of the total number of acres enrolled in the wet-
lands reserve program—
‘‘(A) one-third of the acres are enrolled
through the use of permanent easements;
‘‘(B) one-third of the acres are enrolled
through the use of 30-year easements (or ease-
104
ments of a shorter period if required under ap-
plicable State laws); and
‘‘(C) one-third of the acres are enrolled
through the use of restoration cost-share agree-
ments authorized under section 1237A(h).’’.
‘‘(3) TEMPORARY EMPHASIS ON CERTAIN ENROLL-
MENT METHODS.—To achieve the enrollment rations
specified in paragraph (2), the Secretary shall en-
deavor, to the maximum extent practicable, to rely
on the enrollment methods described in subpara-
graphs (B) and (C) of paragraph (2) to enroll lands
in the wetlands reserve program until such time as
enrollments under each such subparagraph accounts
for approximately one-third of all lands enrolled in
the wetlands reserve.’’
(b) ELIGIBILITY.—Section 1237(c) of the Food Se-
curity Act of 1985 (16 U.S.C. 3837(c)) is amended by
striking ‘‘2000’’ and inserting ‘‘2002’’.
(c) EASEMENTS
AND RESTORATION COST-SHARE
AGREEMENTS.—Section 1237A of the Food Security Act
of 1985 (16 U.S.C. 3837a) is amended—
(1) in the section heading, by inserting before the
period at the end the following: ‘‘AND RES-
TORATION 
COST-SHARE 
AGREE-
MENTS’’;
105
(2) by striking subsection (c) and inserting the
following:
‘‘(c) RESTORATION PLANS.—The development of a
restoration plan, including any compatible use, under this
section shall be made through the local Natural Re-
sources Conservation Service representative.’’;
(3) in subsection (f), by striking the third sen-
tence and inserting the following: ‘‘Compensation
may be provided in not less than 5, nor more than
30, annual payments of equal or unequal size, as
agreed to by the owner and the Secretary.’’; and
(4) by adding at the end the following:
‘‘(h) RESTORATION COST-SHARE AGREEMENTS.—
The Secretary may enroll land in the wetland reserve
program through agreements that require the landowner
to restore wetlands on the land, if the agreement does
not provide the Secretary with an easement. Other than
cost share and technical assistance provided under sec-
tion 1237C(b), the Secretary may not provide compensa-
tion for an agreement under this subsection.’’.
(d) SHARE AND TECHNICAL ASSISTANCE.—Section
1237C of the Food Security Act of 1985 (16 U.S.C.
3837c) is amended by striking subsection (b) and insert-
ing the following:
‘‘(b) COST SHARE AND TECHNICAL ASSISTANCE.—
106
‘‘(1) EASEMENTS.—In the case of an easement
entered into during the 1996 through 2002 calendar
years, in making cost share payments under sub-
section (a)(1), the Secretary shall—
‘‘(A) in the case of a permanent easement,
pay the owner an amount that is not less than
75 percent, but not more than 100 percent, of
the eligible costs; and
‘‘(B) in the case of a 30-year easement, pay
the owner an amount that is not less than 50
percent, but not more than 75 percent, of the
eligible costs.
‘‘(2) RESTORATION COST-SHARE AGREEMENTS.—
In making cost share payments in connection with a
restoration cost-share agreement entered into under
section 1237(A)(h), the Secretary shall pay the
owner an amount that is not less than 50 percent,
but not more than 75 percent, of the eligible costs.
‘‘(3) TECHNICAL
ASSISTANCE.—The Secretary
shall provide owners with technical assistance to as-
sist owners in complying with the terms of ease-
ments and restoration cost-share agreements.’’.
(e) 
EFFECT
ON
EXISTING
EASEMENTS.—The
amendments made by this section shall not affect the va-
lidity or terms of any easements acquired by the Sec-
108
subsections (a) and (b)(3), by striking ‘‘1995’’ each
place it appears and inserting ‘‘2002’’.
(3) DUTIES OF OWNERS AND OPERATORS.—Sec-
tion 1232(c) of the Act (16 U.S.C. 3832(c)) is
amended by striking ‘‘1995’’ and inserting ‘‘2002’’.
(b) MAXIMUM ENROLLMENT.—Section 1231(d) of
the Food Security Act of 1985 (16 U.S.C. 3831(d)) is
amended by striking ‘‘total of’’ and all that follows
through the period at the end of the subsection and in-
serting ‘‘total of 36,400,000 acres during the 1986
through 2002 calendar years (including contracts ex-
tended by the Secretary pursuant to section 1437(c) of
the Food, Agriculture, Conservation, and Trade Act of
1990 (Public Law 101–624; 16 U.S.C. 3831 note).’’.
(c) OPTIONAL CONTRACT TERMINATION
BY PRO-
DUCERS.—Section 1235 of the Food Security Act of
1985 (16 U.S.C. 3835) is amended by adding at the end
the following new subsection:
‘‘(e) TERMINATIONAL BY OWNER OR OPERATOR.—
(1) EARLY
TERMINATION
AUTHORIZED.—The
Secretary shall allow an owner or operator of land
that, on the date of the enactment of the Agricul-
tural Market Transition Act, is covered by a con-
tract that was entered into under this subchapter at
least five years before that date to terminate the
109
contract with respect to all or a portion of the cov-
ered land. The owner or operator shall provide the
Secretary with reasonable notice of the termination
request.
‘‘(2) CERTAIN LANDS EXCEPTED.—Notwithstand-
ing paragraph (1), the following lands shall not be
subject to an early termination of contract under
this subsection:
‘‘(A) Filterstrips, waterways, strips adjacent
to riparian areas, windbreaks, and shelterbelts.
‘‘(B) Land with an erodibility index of more
than 15.
‘‘(C) Other lands of high environmental
value, as determined by the Secretary.
‘‘(3) EFFECTIVE
DATE.—The contract termi-
nation shall take effect 60 days after the date on
which the owner or operator submits the notice
under paragraph (1).
‘‘(4) PRORATED RENTAL PAYMENT.—If a contract
entered into under this subchapter is terminated
under this subsection before the end of the fiscal
year for which a rental payment is due, the Sec-
retary shall provide a prorated rental payment cover-
ing the portion of the fiscal year during which the
contract was in effect.
110
‘‘(5) RENEWED ENROLLMENT.—The termination
of a contract entered into under this subchapter
shall not affect the ability of the owner or operator
who requested the termination to submit a subse-
quent bid to enroll the land that was subject to the
contract into the conservation reserve.
‘‘(6) CONSERVATION
REQUIREMENTS.—If land
that was subject to a contract is returned to produc-
tion of an agricultural commodity, the conservation
requirements under subtitles B and C shall apply to
the use of the land to the extent that the require-
ments are similar to those requirements imposed on
other similar lands in the area, except than the re-
quirements may not be more onerous that the re-
quirements imposed on other lands.’’.
(d) USE OF UNEXPENDED FUNDS.—Section 1231
of the Food Security Act of 1985 (16 U.S.C. 3831) is
amended by adding at the end the following:
‘‘(h) USE
OF UNEXPENDED FUNDS
FROM CON-
TRACT TERMINATIONS.—If a contract entered into under
this section is terminated, voluntarily or otherwise, before
the expiration date specified in the contract, the Sec-
retary may use funds, already available to the Secretary
to cover payments under the contract, but unexpended as
a result of the contract termination, to enroll other eligi-
111
ble lands in the conservation reserve established under
this subchapter.’’.
(e) FAIR MARKET VALUE RENTAL RATES.—
(1) IN GENERAL.—Section 1234(c) of the Food
Security Act of 1985 (16 U.S.C. 3834(c)) is amend-
ed by adding at the end the following new para-
graph:
‘‘(5) In the case of a contract covering land which
has not been previously enrolled in the conservation re-
serve, annual rental payments under the contract may
not exceed the average fair market rental rate for com-
parable lands in the county in which the lands are lo-
cated. This paragraph shall not apply to the extension of
an existing contract.’’
(2) APPLICATION OF AMENDMENT.—The amend-
ment made by paragraph (1) shall apply with re-
spect to contracts for the enrollment of lands in the
conservation reserve program under section 1231 of
the Food Security Act of 1985 (16 U.S.C. 3831))
entered into after the date of the enactment of this
Act.
(f) ENROLLMENTS IN 1997.—Section 725 of the Ag-
riculture, Rural Development, Food and Drug Adminis-
tration, and Related Agencies Appropriations Act, 1996
(Public Law 104–37; 109 Stat. 332), is amended by
112
striking the proviso relating to enrollment of new acres
in 1997.
TITLE IV—AGRICULTURAL PRO-
MOTION AND EXPORT PRO-
GRAMS
Subtitle A—Agricultural Promotion
and Export Enhancement Pro-
grams
SEC. 401. MARKET PROMOTION PROGRAM.
Effective as of October 1, 1995, section 211(c)(1) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1))
is amended—
(1) by striking ‘‘and’’ after ‘‘1991 through
1993,’’; and
(2) by striking ‘‘through 1997,’’ and inserting
‘‘through 1995, and not more than $100,000,000
for each of fiscal years 1996 through 2002,’’.
SEC. 402. EXPORT ENHANCEMENT PROGRAM.
(a) GENERALLY.—Effective as of October 1, 1995,
section 301(e)(1) of the Agricultural Trade Act of 1978
(7 U.S.C. 5651(e)(1)) is amended to read as follows:
‘‘(1) IN
GENERAL.—The Commodity Credit
Corporation shall make available to carry out the
program established under this section not more
than—
113
‘‘(A) $350,000,000 for fiscal year 1996;
‘‘(B) $350,000,000 for fiscal year 1997;
‘‘(C) $500,000,000 for fiscal year 1998;
‘‘(D) $550,000,000 for fiscal year 1999;
‘‘(E) $579,000,000 for fiscal year 2000;
‘‘(F) $478,000,000 for fiscal year 2001;
and
‘‘(G) $478,000,000 for fiscal year 2002.’’.
(b) PRIORITY FUNDING FOR WHEAT FLOUR.—Sec-
tion 301 of the Agricultural Trade Act of 1978 (7 U.S.C.
5651) is amended by adding at the end the following:
‘‘(h) PRIORITY FUNDING
FOR WHEAT FLOUR.—
Consistent, as determined by the Secretary, with the obli-
gations and reduction commitments undertaken by the
United States set forth in the Uruguay Round Agree-
ments, the Secretary shall announce awards under this
section on an annual basis for the sale of wheat flour in
sufficient amount to maintain the percentage of market
share of world commercial flour markets achieved by the
United States wheat flour industry during the Uruguay
Round base period years of 1986 through 1990.’’.
114
Subtitle B—Amendments to Agri-
cultural Trade Development and
Assistance Act of 1954 and Re-
lated Statutes
SEC. 411. FOOD AID TO DEVELOPING COUNTRIES.
(a) IN GENERAL.—Section 3 of the Agricultural
Trade Development and Assistance Act of 1954 (7
U.S.C. 1691a) is amended to read as follows:
‘‘SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.
‘‘(a) POLICY.—In light of the Uruguay Round
Agreement on Agriculture and the Ministerial Decision
on Measures Concerning the Possible Negative Effects of
the Reform Program on Least-Developed and Net-Food
Importing Developing Countries, the United States reaf-
firms the commitment of the United States to providing
food aid to developing countries.
‘‘(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
‘‘(1) the President should initiate consultations
with other donor nations to consider appropriate lev-
els of food aid commitments to meet the legitimate
needs of developing countries;
‘‘(2) the United States should increase its con-
tribution of bona fide food assistance to developing
116
‘‘(1) have the demonstrated potential to become
commercial markets for competitively priced United
States agricultural commodities;
‘‘(2) are undertaking measures for economic de-
velopment purposes to improve food security and ag-
ricultural development, alleviate poverty, and pro-
mote broad-based equitable and sustainable develop-
ment; and
‘‘(3) demonstrate the greatest need for food.
‘‘(b) PRIVATE ENTITIES.—An agreement entered
into under this title with a private entity shall require
such security, or such other provisions as the Secretary
determines necessary, to provide reasonable and adequate
assurance of repayment of the financing extended to the
private entity.
‘‘(c) 
AGRICULTURAL
MARKET
DEVELOPMENT
PLAN.—
‘‘(1) DEFINITION OF AGRICULTURAL TRADE OR-
GANIZATION.—In this subsection, the term ‘agricul-
tural trade organization’ means a United States ag-
ricultural trade organization that promotes the ex-
port and sale of a United States agricultural com-
modity and that does not stand to profit directly
from the specific sale of the commodity.
117
‘‘(2) AN.—The Secretary shall consider a develop-
ing country for which an agricultural market devel-
opment plan has been approved under this sub-
section to have the demonstrated potential to become
a commercial market for competitively priced United
States agricultural commodities for the purpose of
granting a priority under subsection (a).
‘‘(3) REQUIREMENTS.—
‘(A) IN GENERAL.—To be approved by the
Secretary, an agricultural market development
plan shall—
‘‘(i) be submitted by a developing coun-
try or private entity, in conjunction with
an agricultural trade organization;
‘‘(ii) describe a project or program for
the development and expansion of a United
States agricultural commodity market in a
developing country, and the economic de-
velopment of the country, using funds de-
rived from the sale of agricultural com-
modities received under an agreement de-
scribed in section 101;
‘‘(iii) provide for any matching funds
that are required by the Secretary for the
project or program;
118
‘‘(iv) provide for a results-oriented
means of measuring the success of the
project or program; and
‘‘(v) provide for graduation to the use of
non-Federal funds to carry out the project
or program, consistent with requirements
established by the Secretary.
‘‘(B) 
AGRICULTURAL
TRADE
ORGANIZA-
TION.—The project or program shall be de-
signed and carried out by the agricultural trade
organization.
‘‘(C) ADDITIONAL REQUIREMENTS.—An agri-
cultural market development plan shall contain
such additional requirements as are determined
necessary by the Secretary.
‘‘(4) ADMINISTRATIVE COSTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
make funds made available to carry out this
title available for the reimbursement of admin-
istrative expenses incurred by agricultural trade
organizations in developing, implementing, and
administering agricultural market development
plans, subject to such requirements and in such
amounts as the Secretary considers appropriate.
119
‘‘(B) DURATION.—The funds shall be made
available to agricultural trade organizations for
the duration of the applicable agricultural mar-
ket development plan.
‘‘(C) TERMINATION.—The Secretary may ter-
minate assistance made available under this
subsection if the agricultural trade organization
is not carrying out the approved agricultural
market development plan.’’.
SEC. 414. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1703) is amend-
ed—
‘‘(1) in subsection (a)(2)(A)—
(A) by striking ‘‘a recipient country to
make’’; and
(B) by striking ‘‘such country’’ and inserting
‘‘the appropriate country’’;
(2) in subsection (c), by striking ‘‘less than
10 nor’’; and
(3) in subsection (d)—
(A) by striking ‘‘recipient country’’ and in-
serting ‘‘developing country or private entity’’;
and
(B) by striking ‘‘7’’ and inserting ‘‘5’’.
120
SEC. 415. USE OF LOCAL CURRENCY PAYMENT.
Section 104 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1704) is amend-
ed—
(1) in subsection (a), by striking ‘‘recipient coun-
try’’ and inserting ‘‘developing country or private en-
tity’’; and
(2) in subsection (c)—
(A) by striking ‘‘recipient country’’ each
place it appears and inserting ‘‘appropriate de-
veloping country’’; and
(B) in paragraph (3), by striking ‘‘recipient
countries’’ and inserting ‘‘appropriate develop-
ing countries’’.
SEC. 416. ELIGIBLE ORGANIZATIONS.
Section 202 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1722) is amend-
ed—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) NONEMERGENCY ASSISTANCE.—
‘‘(1) IN GENERAL.—The Administrator may pro-
vide agricultural commodities for nonemergency as-
sistance under this title through eligible organiza-
tions (as described in subsection (d)) that have en-
121
tered into an agreement with the Administrator to
use the commodities in accordance with this title.
‘‘(2) LIMITATION.—The Administrator may not
deny a request for funds or commodities submitted
under this subsection because the program for which
the funds or commodities are requested—
‘‘(A) would be carried out by the eligible or-
ganization in a foreign country in which the
Agency for International Development does not
have a mission, office, or other presence; or
‘‘(B) is not part of a development plan for
the country prepared by the Agency.’’; and
(2) in subsection (e)—
(A) in the subsection heading, by striking
‘‘PRIVATE VOLUNTARY ORGANIZATIONS
AND
COOPERATIVES’’ and inserting ‘‘ELIGIBLE OR-
GANIZATIONS’’;
(B) in paragraph (1)—
(i) by striking ‘‘$13,500,000’’ and in-
serting ‘‘$28,000,000’’; and
(ii) by striking ‘‘private voluntary orga-
nizations and cooperatives to assist such
organizations and cooperatives’’ and insert-
ing ‘‘eligible organizations described in
subsection (d), to assist the organizations’’;
122
(C) in paragraph (3), by striking ‘‘a private
voluntary organization or cooperative, the Ad-
ministrator may provide assistance to that or-
ganization or cooperative’’ and inserting ‘‘an el-
igible organization, the Administrator may pro-
vide assistance to the eligible organization’’.
SEC. 417. GENERATION AND USE OF FOREIGN CUR-
RENCIES.
Section 203 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1723) is amend-
ed—
(1) in subsection (a), by inserting ‘‘, or in a coun-
try in the same region,’’ after ‘‘in the recipient coun-
try’’;
(2) in subsection (b)—
(A) by inserting ‘‘or in countries in the same
region,’’ after ‘‘in recipient countries,’’; and
(B) by striking ‘‘10 percent’’ and inserting
‘‘15 percent’’;
(3) in subsection (c), by inserting ‘‘or in a country
in the same region,’’ after ‘‘in the recipient coun-
try,’’; and
(4) in subsection (d)(2), by inserting ‘‘or within a
country in the same region’’ after ‘‘within the recipi-
ent country’’.
123
SEC. 418. GENERAL LEVELS OF ASSISTANCE UNDER PUB-
LIC LAW 480.
Section 204(a) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is
amended—
(1) in paragraph (1), by striking ‘‘amount that’’
and all that follows through the period at the end
and inserting ‘‘amount that for each of fiscal years
1996 through 2002 is not less than 2,025,000 met-
ric tons.’’;
(2) in paragraph (2), by striking ‘‘amount that’’
and all that follows through the period at the end
and inserting ‘‘amount that for each of fiscal years
1996 through 2002 is not less than 1,550,000 met-
ric tons.’’; and
(3) in paragraph (3), by adding at the end the fol-
lowing: ‘‘No waiver shall be made before the begin-
ning of the applicable fiscal year.’’.
SEC. 419. FOOD AND CONSULTATIVE GROUP.
Section 205 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1725) is amend-
ed—
(1) in subsection (a), by striking ‘‘private vol-
untary organizations, cooperatives and indigenous
non-governmental organizations’’ and inserting ‘‘eli-
gible organizations described in section 202(d)(1)’’;
124
(2) in subsection (b)—
(A) in paragraph (2), by striking ‘‘for Inter-
national Affairs and Commodity Programs’’
and inserting ‘‘of Agriculture for Farm and
Foreign Agricultural Services’’;
(B) in paragraph (4), by striking ‘‘and’’ at
the end;
(C) in paragraph (5), by striking the period
at the end and inserting ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(6) representatives from agricultural producer
groups in the United States.’’;
(3) in the second sentence of subsection (d), by in-
serting ‘‘(but at least twice per year)’’ after ‘‘when
appropriate’’; and
(4) in subsection (f), by striking ‘‘1995’’ and in-
serting ‘‘2002’’.
SEC. 420. SUPPORT OF NONGOVERNMENTAL ORGANIZA-
TIONS.
(a) IN GENERAL.—Section 306(b) of the Agricul-
tural Trade Development and Assistance Act of 1954 (7
U.S.C. 1727e(b)) is amended—
(1) in the subsection heading, by striking ‘‘INDIG-
ENOUS NON-GOVERNMENTAL’’ and inserting ‘‘NON-
GOVERNMENTAL’’; and
125
(2) by striking ‘‘utilization of indigenous’’ and in-
serting ‘‘utilization of’’.
(b) CONFORMING AMENDMENT.—Section 402 of the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1732) is amended by striking paragraph
(6) and inserting the following:
‘‘(6) NONGOVERNMENTAL
ORGANIZATION.—The
term ‘nongovernmental organization’ means an orga-
nization that works at the local level to solve devel-
opment problems in a foreign country in which the
organization is located, except that the term does
not include an organization that is primarily an
agency or instrumentality of the government of the
foreign country.’’.
SEC. 421. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1731) is amend-
ed—
(1) by striking subsections (a) through (d) and in-
serting the following:
‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul-
tural commodity shall be available for disposition under
this Act if the Secretary determines that the disposition
would reduce the domestic supply of the commodity below
the supply needed to meet domestic requirements and
126
provide adequate carryover (as determined by the Sec-
retary), unless the Secretary determines that some part
of the supply should be used to carry out urgent humani-
tarian purposes under this Act.’’;
(2) by redesignating subsections (e) and (f) as
subsections (b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by
striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.
SEC. 422. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1733) is amend-
ed—
(1) in subsection (b)—
(A) in the subsection heading, by striking
‘‘CONSULTATIONS’’ and inserting ‘‘IMPACT ON
LOCAL FARMERS AND ECONOMY’’; and
(B) by striking ‘‘consult with’’ and all that
follows through ‘‘other donor organizations to’’;
(2) in subsection (c)—
(A) by striking ‘‘from countries’’; and
(B) by striking ‘‘for use’’ and inserting ‘‘or
use’’;
(3) in subsection (f)—
(A) by inserting ‘‘or private entities, as ap-
propriate,’’ after ‘’from countries’’; and
127
(B) by inserting ‘‘or private entities’’ after
‘‘such countries’’; and
(4) in subsection (i)(2), by striking subparagraph
(C).
SEC. 423. AGREEMENTS.
Section 404 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1734) is amend-
ed—
(1) in subsection (a), by inserting ‘‘with foreign
countries’’ after ‘‘Before entering into agreements’’;
(2) in subsection (b)(2)—
(A) by inserting ‘’with foreign countries’’
after ‘‘with respect to agreements entered into’’;
and
(B) by inserting before the semicolon at the
end the following: ‘‘and broad-based economic
growth’’; and
(3) in subsection (c), by striking paragraph (1)
and inserting the following:
‘‘(1) IN GENERAL.—Agreements to provide assist-
ance on a multi-year basis to recipient countries or
to eligible organizations—
‘‘(A) may be made available under titles I
and III; and
‘‘(B) shall be made available under title II.’’.
128
SEC. 424. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736a) is amend-
ed—
(1) in subsection (a)—
(A) in paragraph (1), by inserting ‘‘or private
entity that enters into an agreement under title
I’’ after ‘‘importing country’’; and
(B) in paragraph (2), by adding at the end
the following: ‘‘Resulting contracts may contain
such terms and conditions as the Secretary de-
termines are necessary and appropriate.’’;
(2) in subsection (c)—
(A) in paragraph (1)(A), by inserting ‘‘im-
porter or’’ before ‘‘importing country’’; and
(B) in paragraph (2)(A), by inserting ‘‘im-
porter or’’ before ‘‘importing country’’;
(3) in subsection (d)—
(A) by striking paragraph (2) and inserting
the following:
‘‘(2) 
FREIGHT
PROCUREMENT.—
Nothwithstanding the Federal Property and Admin-
istrative Services Act of 1949 (40 U.S.C. 471 et
seq.) or other similar provisions of law relating to
the making or performance of Federal Government
contracts, ocean transportation under titles II and
129
III may be procured on the basis of such full and
open competitive procedures. Resulting contracts
may contain such terms and conditions, as the Ad-
ministrator determines are necessary and appro-
priate.’’; and
(B) by striking paragraph (4);
(4) in subsection (g)(2)—
(A) in subparagraph (B), by striking ‘‘and’’
at the end;
(B) in subparagraph (C), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(D) an assessment of the progress towards
achieving food security in each country receiv-
ing food assistance from the United States Gov-
ernment, with special emphasis on the nutri-
tional status of the poorest populations in each
country.’’; and
(5) by striking subsection (h).
SEC. 425. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
130
SEC. 426. REGULATIONS.
Section 409 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.
SEC. 427. INDEPENDENT EVALUATION OF PROGRAMS.
Section 410 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.
SEC. 428. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 412 of the Agricultural
Trade Development and Assistance Act of 1954 (7
U.S.C. 1736f) is amended—
(1) by striking subsections (b) and (c) and insert-
ing the following:
‘‘(b) TRANSFER OF FUNDS.—Nothwithstanding any
other provision of law, the President may direct that—
‘‘(1) up to 15 percent of the funds available for
any fiscal year for carrying out title I or III of this
Act be used to carry out any other title of this Act;
and
‘‘(2) up to 100 percent of funds available for title
III be used to carry out title II.’’; and
(2) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(b) 
RELATION
TO
OTHER
WAIVER.—Section
204(a)(3) of the Agricultural Trade Development and As-
sistance Act of 1954 (7 U.S.C. 1724(a)(3)) is amended
by inserting ‘‘all authority to transfer from title I under
131
section 412 has been exercised with respect to that fiscal
year and’’ after ‘‘any fiscal year if’’.
SEC. 429. COORDINATION OF FOREIGN ASSISTANCE PRO-
GRAMS.
Section 413 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736g) is amended
by inserting ‘‘title III of’’ before ‘‘this Act’’ each place it
appears.
SEC. 430. USE OF CERTAIN LOCAL CURRENCY.
Title IV of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as
amended by section 222) is further amended by adding
at the end the following:
‘‘SEC. 416. USE OF CERTAIN LOCAL CURRENCY.
‘‘Local currency payments received by the United
States pursuant to agreements entered into under title I
(as in effect on November 27, 1990) may be utilized by
the Secretary in accordance with section 108 (as in effect
on November 27, 1990).’’.
SEC. 431. LEVEL OF ASSISTANCE TO FARMER TO FARMER
PROGRAM.
Section 501(c) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1737(c)) is
amended—
(1) by striking ‘‘0.2’’ and inserting ‘‘0.4’’;
132
(2) by striking ‘‘0.1’’ and inserting ‘‘0.2’’; and
(3) by striking ‘‘1991 through 1955’’ and insert-
ing ‘‘1996 through 2002’’.
SEC. 432. FOOD SECURITY COMMODITY RESERVE.
(a) FOOD SECURITY COMMODITY RESERVE ACT OF
1995.—The title heading of title III of the Agricultural
Act of 1980 (7 U.S.C. 1736f–1 note) is amended by
striking ‘‘FOOD SECURITY WHEAT RESERVE
ACT OF 1980’’ and inserting ‘‘FOOD SECURITY
COMMODITY RESERVE ACT OF 1995’’.
(b) SHORT TITLE.—Section 301 of the Act (7
U.S.C. 1736f–1 note) is amended by striking ‘‘Food Se-
curity Wheat Reserve Act of 1980’’ and inserting ‘‘Food
Security Commodity Reserve Act of 1995’’.
(c) IN GENERAL.—Section 302 of the Act (7 U.S.C.
1736f–1) is amended—
(1) in the section heading, by striking ‘‘FOOD
SECURITY WHEAT RESERVE’’ and insert-
ing ‘‘FOOD SECURITY COMMODITY RE-
SERVE’’;
(2) so that subsection (a) reads as follows:
‘‘(a) IN GENERAL.—To provide for a reserve solely
to meet emergency humanitarian food needs in developing
countries, the Secretary shall establish a reserve stock of
wheat, rice, corn, or sorghum, or any combination of the
133
commodities, totaling not more than 4,000,000 metric
tons for use as described in subsection (c).’’;
(3) so that subsection (b)(1) reads as follows:
‘‘(b) COMMODITIES IN RESERVE.—
‘‘(1) IN GENERAL.—The reserve established under
this section shall consist of—
‘‘(A) wheat in the reserve established under
the Food Security Commodity Reserve Act of
1980 as of the date of enactment of the Food
For Peace Reauthorization Act of 1995;
‘‘(B) wheat, rice, corn, and sorghum (re-
ferred to in this section as ‘eligible commod-
ities’) acquired in accordance with paragraph
(2) to replenish eligible commodities released
from the reserve, including wheat to replenish
wheat released from the reserve established
under the Food Security Wheat Reserve Act of
1980 but not replenished as of the date of en-
actment of the Food For Peace Reauthorization
Act of 1995; and
‘‘(C) such rice, corn, and sorghum as the
Secretary of Agriculture (referred to in this sec-
tion as the ‘Secretary’) may, at such time and
in such manner as the Secretary determines ap-
propriate, acquire as a result of exchanging an
134
equivalent value of wheat in the reserve estab-
lished under this section.’’;
(4) in subsection (b)(2)—
(A) by striking ‘‘(2)(A) Subject to’’ and in-
serting the following:
‘‘(2) REPLENISHMENT OF RESERVE.—
‘‘(A) IN GENERAL.—Subject to;
(B) in subparagraph (A)—
(i) by striking ‘‘(i) of this section stocks
of wheat’’ and inserting ‘‘(i) stocks of eligi-
ble commodities’’;
(ii) in clause (ii), by striking ‘‘stocks of
wheat’’ and inserting ‘‘stocks of eligible
commodities’’; and
(iii) in the second sentence, by striking
‘‘wheat’’ and inserting ‘‘eligible commod-
ities’’; and
(C) in subpagraph (B)—
(i) by striking ‘‘(B) Not later’’ and in-
serting ‘‘(B) TIME FOR REPLENISHMENT
OF RESERVE.—Not later’’; and
(ii) in clause (ii), by striking ‘‘wheat’’
and inserting ‘‘eligible commodities’’;
(5) so that subsections (c) through (f) read as fol-
lows:
135
‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—
‘‘(1) DETERMINATION.—If the Secretary deter-
mines that the amount of commodities allocated for
minimum assistance under section 204(a)(1) of the
Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1724(a)(1)) less the amount of
commodities allocated for minimum non-emergency
assistance under section 204(a)(2) of the Act (7
U.S.C. 1724(a)(2)) will be insufficient to meet the
need for commodities for emergency assistance
under section 202(a) of the Act (7 U.S.C. 1722(a)),
the Secretary in any fiscal year may release from the
reserve—
‘‘(A) up to 500,000 metric tons of wheat or
the equivalent value of eligible commodities
other than wheat; and
‘‘(B) any eligible commodities which under
subparagraph (A) could have been released but
were not released in prior fiscal years.
‘‘(2) AVAILABILITY OF COMMODITIES.—Commod-
ities released under paragraph (1) shall be made
available under title II of the Agricultural Trade De-
velopment and Assistance Act of 1954 (7 U.S.C.
1721 et seq.) for emergency assistance.
136
‘‘(3) EXCHANGE.—The Secretary may exchange
an eligible commodity for another United States
commodity of equal value, including powdered milk,
pulses, and vegetable oil.
‘‘(4) USE OF NORMAL COMMERCIAL PRACTICES.—
To the maximum extend practicable consistent with
the fulfillment of the purposes of this section and
the effective and efficient administration of this sec-
tion, the Secretary shall use the usual and cus-
tomary channels, facilities, arrangements, and prac-
tices of the trade and commerce.
‘‘(5) WAIVER
OF
MINIMUM
TONNAGE
REQUIRE-
MENTS.—Nothing in this subsection shall require
the exercise of the waiver under section 204(a)(3) of
the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite
for the release of eligible commodities under this
subsection.
‘‘(d) TRANSPORTATION AND HANDLING COSTS.—
‘‘(1) IN
GENERAL.—The cost of transportation
and handling of eligible commodities released from
the reserve established under this section shall be
paid by the Commodity Credit Corporation in ac-
cordance with section 406 of the Agricultural Trade
137
Development and Assistance Act of 1954 (7 U.S.C.
1736).
‘‘(2) REIMBURSEMENT.—
‘‘(A) IN GENERAL.—The Commodity Credit
Corporation shall be reimbursed for the costs
incurred under paragraph (1) from the funds
made available to carry out the Agricultural
Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.)
‘‘(B) BASIS FOR REIMBURSEMENT.—The re-
imbursement shall be made on the basis of the
lesser of the actual cost incurred by the Com-
modity Credit Corporation less any savings
achieved as a result of decreased storage and
handling costs for the reserve.
‘‘(C) DECREASED STORAGE AND HANDLING
COSTS.—For purposes of this subsection, ‘de-
creased storage and handling costs’ shall mean
the total actual costs for storage and handling
incurred by the Commodity Credit Corporation
for the reserve established under title III of the
Agricultural Act of 1980 in fiscal year 1995
less the total actual costs for storage and han-
dling incurred by the Corporation for the re-
138
serve established under this Act in the fiscal
year for which the savings are calculated.
‘‘(e) MANAGEMENT
OF RESERVE.—The Secretary
shall provide for—
‘‘(1) the management of eligible commodities in
the reserve as to location and quality of commodities
needed to meet emergency situations; and
‘‘(2) the periodic rotation of eligible commodities
in the reserve to avoid spoilage and deterioration of
such stocks.
‘‘(f) TREATMENT
OF
RESERVE
UNDER
OTHER
LAW.—Eligible commodities in the reserve established
under this section shall not be—
‘‘(1) considered a part of the total domestic sup-
ply (including carryover) for the purpose of admin-
istering the Agricultural Trade Development and As-
sistance Act of 1954 (7 U.S.C. 1691 et seq.); and
‘‘(2) subject to any quantitative limitation on ex-
ports that may be imposed under section 7 of the
Export Administration Act of 1979 (50 U.S.C. App.
2406).’’;
(6) in subsection (g)—
(A) by striking ‘‘(g)(1) The’’ and inserting
the following:
139
‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—
The’’;
(B) by striking ‘‘wheat’’ and inserting ‘‘an el-
igible commodity’’; and
(C) by striking paragraph (2);
(7) in subsection (h)—
(A) by striking ‘‘(h) Any’’ and inserting:
‘‘(h) FINALITY OF DETERMINATION.—Any’’; and
(B) by striking ‘‘President or the Secretary
of Agriculture’’ and inserting ‘‘Secretary’’; and
(8) in subsection (i)—
(A) by striking ‘‘(i) The’’ and inserting:
‘‘(i) TERMINATION OF AUTHORITY.—The’’;
(B) by striking ‘‘wheat’’ each place it appears
and inserting ‘‘eligible commodities’’; and
(C) by striking ‘‘1995’’ each place it appears
and inserting ‘‘2002’’.
(d) EFFECTIVE DATE.—Section 303 of the Act (7
U.S.C. 1736–1 note) is amended by striking ‘‘October 1,
1980’’ and all that follows through the end of the section
and inserting ‘‘on the date of enactment of this Act.’’.
(e) CONFORMING AMENDMENT.—Section 208(d)(2)
of the Agriculture Trade Suspension Adjustment Act of
1980 (7 U.S.C. 4001(d)(2)) is amended to read as fol-
lows:
140
‘‘(2) APPLICABILITY OF CERTAIN PROVISIONS.—
Subsections (b)(2), (c), (e), and (f) of section 302 of
the Food Security Commodity Reserve Act of 1995
shall apply to commodities in any reserve established
under paragraph (1), except that the references to
‘eligible commodities’ in the subsections shall be
deemed to be references to ‘agricultural commod-
ities’.’’.
SEC. 423. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C.
1736o) is amended—
(1) in subsection (b)—
(A) in paragraph (1)—
(i) by striking ‘‘(b)(1)’’ and inserting
‘‘(b)’’; and
(ii) in the first sentence, by inserting
‘‘intergovernmental organizations’’ after
‘‘cooperatives’’; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ‘‘203’’ and in-
serting ‘‘406’’;
(3) in subsection (f)—
(A) in paragraph (1), by striking ‘‘in the case
of the independent states of the former Soviet
Union,’’;
141
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ‘‘in each
of fiscal years 1996 through 2002’’ after ‘‘may
be used’’; and
(D) by redesignating paragraphs (3) through
(5) as paragraphs (2) through (4), respectively;
(4) in subsection (g), by striking ‘‘1995’’ and in-
serting ‘‘2002’’;
(5) in subsection (j), by striking ‘‘shall’’ and in-
serting ‘‘may’’;
(6) in subsection (k), by striking ‘‘1995’’ and in-
serting ‘‘2002’’;
(7) in subsection (l)(1)—
(A) by striking ‘‘1991 through 1995’’ and in-
serting ‘‘1996 through 2002’’; and
(B) by inserting ‘‘, and to provide technical
assistance for monetization programs,’’ after
‘‘monitoring of food assistance programs’’; and
(8) in subsection (m)—
(A) by striking ‘‘with respect to the inde-
pendent states of the former Soviet Union’’;
(B) by striking ‘‘private voluntary organiza-
tions and cooperatives’’ each place it appears
and inserting ‘‘agricultural trade organizations,
142
intergovernmental organizations, private vol-
untary organizations, and cooperatives’’; and
(C) in paragraph (2), by striking ‘‘in the
independent states’’.
Subtitle C—Amendments to Agricultural Trade Act
of 1978
SEC. 451. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) IN GENERAL.—Section 103 of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5603) is amended to
read as follows:
‘‘SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
‘‘(a) IN GENERAL.—The Secretary shall develop a
strategy for implementing Federal agricultural export
promotion programs that takes into account the new
market opportunities for agricultural products, including
opportunities that result from—
‘‘(1) the North American Free Trade Agreement
and the Uruguay Round Agreements;
‘‘(2) any accession to membership in the World
Trade Organization;
‘‘(3) the continued economic growth in the Pacific
Rim; and
‘‘(4) other developments.
‘‘(b) PURPOSE OF STRATEGY.—The strategy devel-
oped under subsection (a) shall encourage the mainte-
143
nance, development, and expansion of export markets for
United States agricultural commodities and related prod-
ucts, including high-value and value-added products.
‘‘(c) GOALS OF STRATEGY.—The strategy developed
under subsection (a) shall have the following goals:
‘‘(1) By September 30, 2002, increasing the value
of annual United States agricultural exports to
$60,000,000,000.
‘‘(2) By September 30, 2002, increasing the Unit-
ed States share of world export trade in agricultural
products significantly above the average United
States share from 1993 through 1995.
‘‘(3) By September 30, 2002, increasing the Unit-
ed States share of world trade in high-value agricul-
tural products to 20 percent.
‘‘(4) Ensuring that the value of United States ex-
ports of agricultural products increases at a faster
rate than the rate of increase in the value of overall
world export trade in agricultural products.
‘‘(5) Ensuring that the value of United States ex-
ports of high-value agricultural products increases at
a faster rate than the rate of increase in overall
world export trade in high-value agricultural prod-
ucts.
‘‘(6) Ensuring to the extent practicable that—
144
‘‘(A) substantially all obligations undertaken
in the Uruguay Round Agreement on Agri-
culture that provide significantly increased ac-
cess for United States agricultural commodities
are implemented to the extent required by the
Uruguay Round Agreements; or
‘‘(B) applicable United States trade laws are
used to secure United States rights under the
Uruguay Round Agreement on Agriculture.
‘‘(d) PRIORITY MARKETS.—
‘‘(1) IDENTIFICATION OF MARKETS.—In develop-
ing the strategy required under subsection (a), the
Secretary shall identify as priority markets—
‘‘(A) those markets in which imports of agri-
cultural products show the greatest potential
for increase by September 30, 2002; and
‘‘(B) those markets in which, with the assist-
ance of Federal export promotion programs, ex-
ports of United States agricultural products
show the greatest potential for increase by Sep-
tember 30, 2002.
‘‘(2) IDENTIFICATION OF SUPPORTING OFFICES.—
The President shall identify annually in the budget
of the United States Government submitted under
section 1105 of title 31, United States Code, each
145
overseas office of the Foreign Agricultural Service
that provides assistance to United States exporters
in each of the priority markets identified under
paragraph (1).
‘‘(e) REPORT.—Not later than December 31, 2001,
the Secretary shall prepare and submit a report to Con-
gress assessing progress in meeting the goals established
by subsection (c).
‘‘(f) FAILURE TO MEET GOALS.—Notwithstanding
any other law, if the Secretary determines that more than
2 of the goals established by subsection (c) are not met
by September 30, 2002, the Secretary may not carry out
agricultural trade programs under the Agricultural Trade
Act of 1978 (7 U.S.C. 5601 et seq.) as of that date.
‘‘(g) NO PRIVATE RIGHT OF ACTION.—This section
shall not create any private right of action.’’.
(b) CONTINUATION OF FUNDING.—
(1) IN GENERAL.—If the Secretary of Agriculture
makes a determination under section 103(f) of the
Agricultural Trade Act of 1978 (as amended by sub-
section (a)), the Secretary shall utilize funds of the
Commodity Credit Corporation to promote United
States agricultural exports in a manner consistent
with the Commodity Credit Corporation Chapter Act
146
(15 U.S.C. 714 et seq.) and obligations pursuant to
the Uruguay Round Agreements.
(2) FUNDING.—The amount of Commodity Credit
Corporation funds used to carry out paragraph (1)
during a fiscal year shall not exceed the total outlays
for agricultural trade programs under the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5601 et seq.)
during fiscal year 2002.
(c) ELIMINATION OF REPORT.—
(1) IN GENERAL.—Section 601 of the Agricultural
Trade Act of 1978 ( 7 U.S.C. 5711) is repealed.
(2) CONFORMING
AMENDMENT.—The last sen-
tence of section 603 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5713) is amendment by striking
‘‘, in a consolidated report,’’ and all that follows
through ‘‘section 601’’ and inserting ‘‘ or in a con-
solidated report’’.
SEC. 452. EXPORT CREDITS.
(a) EXPORT CREDIT GUARANTEE PROGRAM.—Sec-
tion 202 of the Agricultural Trade Act of 1978 ( 7
U.S.C. 5622) is amended—
(1) in subsection (a)—
(A) by striking ‘‘GUARANTEES.—The’’ and
inserting the following ‘‘GUARANTEES.—
‘‘(1) IN GENERAL.—The’’; and
147
(B) by adding at the end the following:
‘‘(2) SUPPLIER CREDITS.—In carrying out this
section, the Commodity credit Corporation may issue
guarantees for the repayment of credit made avail-
able for a period of not more than 180 days by a
United States exporter to a buyer in a foreign coun-
try.’’;
(2) in subsection (f)—
(A) by striking ‘‘(f) RESTRICTIONS.—The’’
and inserting the following:
‘‘(f) Restrictions.—
‘‘(1) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(2) CRITERIA FOR DETERMINATION.—In mak-
ing the determination required under paragraph (1)
with respect to credit guarantees under subsection
(b) for a country, the Secretary may consider, in ad-
dition to financial, macroeconomic, and monetary in-
dicators—
‘‘(A) whether an International Monetary
Fund standby agreement, Paris Club reschedul-
ing plan, or other economic restructuring plan
is in place with respect to the country;
‘‘(B) the convertibility of the currency of
the country;
148
‘‘(C) whether the country provides ade-
quate legal protection for foreign investments;
‘‘(D) whether the country has viable finan-
cial markets;
‘‘(E) whether the country provides ade-
quate legal protection for the private property
rights of citizens of the country; and
‘‘(F) any other factors that are relevant to
the ability of the country to service the debt of
the country.’’;
(3) by striking subsection (h) and inserting the
following:
‘‘(h) UNITED STATES AGRICULTURAL COMPO-
NENTS.—The Commodity Credit Corporation shall fi-
nance or guarantee under this section only United States
agricultural commodities.’’;
(4) in subsection (i)—
(A) by striking ‘‘INSTITUTIONS.—A finan-
cial’’ and inserting the following: ‘‘INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—A financial’’;
(B) by striking paragraph (1);
(C) by striking ‘‘(2) is’’ and inserting the
following:
‘‘(A) is’’;
149
(D) by striking ‘‘(3) is’’ and inserting the
following:
‘‘(B) is’’; and
(E) by adding at the end the following:
‘‘(2) THIRD COUNTRY BANKS.—The Commodity
Credit Corporation may guarantee under subsections
(a) and (b) the repayment of credit made available
to finance an export sale irrespective of whether the
obligor is located in the country to which the export
sale is destined.’’; and
(5) by striking subsection (k) and inserting the
following:
‘‘(k) PROCESSED AND HIGH-VALUE PRODUCTS.—
‘‘(1) IN
GENERAL.—In issuing export credit
guarantees under this section, the Commodity Credit
Corporation shall, subject to paragraph (2), ensure
that not less than 25 percent for each of fiscal years
1996 and 1997, 30 percent for each of fiscal years
1998 and 1999, and 35 percent of each of fiscal
years 2000, 2001, and 2002, of the total amount of
credit guarantees issued for a fiscal year is issued to
promote the export of processed or high-value agri-
cultural products and that the balance is issued to
promote the export of bulk or raw agricultural com-
modities.
150
‘‘(2) LIMITATION.—The percentage requirement
of paragraph (1) shall apply for a fiscal year to the
extent that a reduction in the total amount of credit
guarantees issued for the fiscal year is not required
to meet the percentage requirement.’’.
(b) FUNDING LEVELS.—Section 211(b) of the Ag-
ricultural Trade Act of 1978 (7 U.S.C. 5641(b)) is
amended—
(1) by striking paragraph (2);
(2) by redesignating subparagraph (B) of para-
graph (1) as paragraph (2) and indenting the mar-
gin of paragraph (2) (as so redesignated) so as to
align with the margin of paragraph (1); and
(3) by striking paragraph (1) and inserting the
following:
‘‘(1) 
EXPORT
CREDIT
GUARANTEES.—The
Commodity Credit Corporation shall make available
for each of fiscal years 1996 through 2002 not less
than $5,500,000,000 in credit guarantees under
subsections (a) and (b) of section 202.’’.
(c) DEFINITIONS.—Section 102(7) of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5602(7)) is amended
by striking subparagraphs (A) and (B) and inserting the
following:
151
‘‘(A) an agricultural commodity or product
entirely produced in the United States; or
‘‘(B) a product of an agricultural commod-
ity—
‘‘(i) 90 percent or more of the agricul-
tural components of which by weight, ex-
cluding packaging and added water, is en-
tirely produced in the United States; and
‘‘(ii) that the Secretary determines to
be a United States high value agricultural
product.’’.
(d) REGULATIONS.—Not later than 180 days
after the effective date of this title, the Secretary of agri-
culture shall issue regulations to carry out the amend-
ments made by this section.
SEC. 453. EXPORT PROGRAM AND FOOD ASSISTANCE
TRANSFER AUTHORITY.
The Secretary of Agriculture shall fully utilize and
aggressively implement the full range of agricultural ex-
port programs authorized in this Act and any other Act,
in any combination, to help United States agriculture
maintain and expand export markets, promote United
States agricultural commodity and product exports,
counter subsidized foreign competition, and capitalize on
potential new market opportunities. Consistent with Unit-
152
ed States obligations under GATT, if the Secretary de-
termines that funds available under 1 or more export
subsidy programs cannot be fully or effectively utilized
for such programs, the Secretary may utilize such funds
for other authorized agricultural export and food assist-
ance programs to achieve the above objectives and to fur-
ther enhance the overall global competitiveness of United
States agriculture. Funds so utilized shall be in addition
to funds which may otherwise be authorized or appro-
priated for such other agricultural export programs.
SEC. 454. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978
(7 U.S.C. 5662(a)) is amended by striking subsection (a)
and inserting the following:
‘‘(a) ARRIVAL CERTIFICATION.—With respect to a
commodity provided, or for which financing or a credit
guarantee or other assistance is made available, under a
program authorized in section 201, 202, or 301, the
Commodity Credit Corporation shall require the exporter
of the commodity to maintain records of an official or
customary commercial nature or other documents as the
Secretary may require, and shall allow representatives of
the Commodity Credit Corporation access to the records
or documents as needed, to verify the arrival of the com-
153
modity in the country that was the intended destination
of the commodity.’’.
SEC. 455. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978
(7 U.S.C. 5664) is repealed.
SEC. 456. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978
(7 U.S.C. 5693) is amended to read as follows:
‘‘SEC. 503. ESTABLISHMENT OF THE FOREIGN AGRICUL-
TURAL SERVICE.
‘‘The Service shall assist the Secretary in carrying
out the agricultural trade policy and international co-
operation policy of the United States by—
‘‘(1) acquiring information pertaining to agricul-
tural trade;
‘‘(2) carrying out market promotion and develop-
ment activities;
‘‘(3) providing agricultural technical assistance
and training; and
‘‘(4) carrying out the programs authorized under
this Act, the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 et seq.), and
other Acts.’’.
154
SEC. 457. REPORTS.
The first sentence of section 603 of the Agricultural
Trade Act of 1978 (7 U.S.C. 5713) is amended by strik-
ing ‘‘The’’ and inserting ‘‘Subject to section 217 of the
Department of Agriculture Reorganization Act of 1994
(7 U.S.C. 6917), the’’.
Subtitle D—Miscellaneous
SEC. 471. REPORTING REQUIREMENTS RELATING TO TO-
BACCO.
Section 214 of the Tobacco Adjustment Act of 1983
(7 U.S.C. 509) is repealed.
SEC. 472. TRIGGERED EXPORT ENHANCEMENT.
(a) READJUSTMENT OF SUPPORT LEVELS.—Section
1302 of the Omnibus Budget Reconciliation Act of 1990
(Public Law 101–508; 7 U.S.C. 1421 note) is repealed.
(b) TRIGGERED MARKETING LOANS AND EXPORT
ENHANCEMENT.—Section 4301 of the Omnibus Trade
and Competitiveness Act of 1988 (Public Law 100–418;
7 U.S.C. 1446 note) is repealed.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective beginning with the 1996
crops of wheat, feed grains, upland cotton, and rice.
SEC. 473. DISPOSITION OF COMMODITIES TO PREVENT
WASTE.
Section 416 of the Agricultural Act of 1949 (7
U.S.C. 1431) is amended—
155
(1) in subsection (b)—
(A) in paragraph (1), by inserting after the
first sentence the following: ‘‘The Secretary
may use funds of the Commodity Credit Cor-
poration to cover administrative expenses of the
programs.’’;
(B) in paragraph (7)(D)(iv), by striking ‘‘one
year of acquisition’’ and all that follows and in-
serting the following: ‘‘a reasonable length of
time, as determined by the Secretary, except
that the Secretary may permit the use of pro-
ceeds in a country other than the country of or-
igin—
‘‘(I) as necessary to expedite the transpor-
tation of commodities and products furnished
under this subsection; or
‘‘(II) if the proceeds are generated in a cur-
rency generally accepted in the other country.’’;
(C) in paragraph (8), by striking subpara-
graph (C); and
(D) by striking paragraphs (10), (11), and
(12); and
(2) by striking subsection (c).
156
SEC. 474. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) IN GENERAL.—Section 1517 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7 U.S.C.
1706) is repealed.
(b) CONFORMING AMENDMENT.—Subsection (e)(3)
of the Food for Progress Act of 1985 (7 U.S.C.
1736o(e)(3)) is amended by striking ‘‘section 106’’ and
inserting ‘‘section 103’’.
SEC. 475. POLICY ON EXPANSION OF INTERNATIONAL MAR-
KETS.
Section 1207 of the Agriculture and Food Act of
1981 (7 U.S.C. 1736m) is repealed.
SEC. 476. POLICY ON MAINTENANCE AND DEVELOPMENT
OF EXPORT MARKETS.
Section 1121 of the Food Security Act of 1985 (7
U.S.C. 1736p) is amended—
(1) by striking subsection (a); and
(2) in subsection (b)—
(A) by striking ‘‘(b)’’; and
(B) by striking paragraphs (1) through (4)
and inserting the following:
‘‘(1) be the premier supplier of agricultural and
food products to world markets and expand exports
of high value products;
157
‘‘(2) support the principle of free trade and the
promotion of fair trade in agricultural commodities
and products;
‘‘(3) cooperate fully in all efforts to negotiate with
foreign countries further reductions in tariff and
nontariff barriers to trade, including sanitary and
phytosanitary measures and trade-distorting sub-
sidies;
‘‘(4) aggressively counter unfair foreign trade
practices as a means of encouraging fairer trade;’’.
SEC. 477. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7
U.S.C. 1736q) is repealed.
SEC. 478. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7
U.S.C. 1736r) is amended to read as follows:
‘‘SEC. 1123. TRADE NEGOTIATIONS POLICY.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) on a level playing field, United States pro-
ducers are the most competitive suppliers of agricul-
tural products in the world;
‘‘(2) exports of United States agricultural prod-
ucts will account for $54,000,000,000 in 1995, con-
tributing a net $24,000,000,000 to the merchandise
158
trade balance of the United States and supporting
approximately 1,000,000 jobs;
‘‘(3) increased agricultural exports are critical to
the future of the farm, rural, and overall United
States economy, but the opportunities for increased
agricultural exports are limited by the unfair sub-
sidies of the competitors of the United States, and
a variety of tariff and nontariff barriers to highly
competitive United States agricultural products;
‘‘(4) international negotiations can play a key role
in breaking down barriers to United States agricul-
tural exports;
‘‘(5) the Uruguay Round Agreement on Agri-
culture made significant progress in the attainment
of increased market access opportunities for United
States exports of agricultural products, for the first
time—
‘‘(A) restraining foreign trade-distorting do-
mestic support and export subsidy programs;
and
‘‘(B) developing common rules for the appli-
cation of sanitary and phytosanitary restric-
tions;
159
that should result in increased exports of United
States agricultural products, jobs, and income
growth in the United States;
‘‘(6) the Uruguay Round Agreement on Agri-
culture did not succeed in completely eliminating
trade distorting domestic support and export sub-
sidies by—
‘‘(A) allowing the European Union to con-
tinue unreasonable levels of spending on export
subsidies; and
‘‘(B) failing to discipline monopolistic state
trading entities, such as the Canadian Wheat
Board, that use nontransparent and discrimina-
tory pricing as a hidden de facto export sub-
sidy;
‘‘(7) during the period 1996 through 2002, there
will be several opportunities for the United States to
negotiate fairer trade in agricultural products, in-
cluding further negotiations under the World Trade
Organization, and steps toward possible free trade
agreements of the Americas and Asian-Pacific Eco-
nomic Cooperation (APEC); and
‘‘(8) the United States should aggressively use
these opportunities to achieve more open and fair
opportunities for trade in agricultural products.
160
‘‘(b) GOALS OF THE UNITED STATES IN AGRICUL-
TURAL TRADE NEGOTIATIONS.—The objectives of the
United States with respect to future negotiations on agri-
culture trade include—
‘‘(1) increasing opportunities for United States
exports of agricultural products by eliminating tariff
and nontariff barriers to trade;
‘‘(2) leveling the playing field for United States
producers of agricultural products by limiting per
unit domestic production supports to levels that are
no greater than those available in the United States;
‘‘(3) ending the practice of export dumping by
eliminating all trade distorting export subsidies and
disciplining state trading entities so that they do not
(except in cases of bona fide food aid) sell in foreign
markets at below domestic market prices nor their
full costs of acquiring and delivering agricultural
products to the foreign markets; and
‘‘(4) encouraging government policies that avoid
price-depressing surpluses.’’.
SEC. 479. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985
(Public Law 99–198; 99 Stat. 1499) is repealed.
161
SEC. 480. AGRICULTURAL AID AND TRADE MISSIONS.
(a) IN GENERAL.—The Agricultural Aid and Trade
Missions Act (7 U.S.C. 1736bb et seq.) is repealed.
(b) CONFORMING AMENDMENT.—Section 7 of Public
Law 100–277 (7 U.S.C. 1736bb note) is repealed.
SEC. 481. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of
1954 (7 U.S.C. 1748(b)(1)(B)) is amended by striking
‘‘including fruits, vegetables, legumes, popcorn, and
ducks’’.
SEC. 482. WORLD LIVESTOCK MARKET PRICE INFORMA-
TION.
Section 1545 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (Public Law 101–624; 7 U.S.C.
1761 note) is repealed.
SEC. 483. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of
1956 (7 U.S.C. 1851 and 1857) are repealed.
SEC. 484. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7
U.S.C. 1852) is repealed.
SEC. 485. REGULATIONS.
Section 707 of the Freedom for Russia and Emerg-
ing Eurasian Democracies and Open Markets Support
Act of 1992 (Public Law 102–511; 7 U.S.C. 5621 note)
is amended by striking subsection (d).
163
modities or products of United States agricultural
commodities.’’.
(2) FUNDING.—Section 1542 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 is
amended by striking subsection (a) and inserting the
following:
‘‘(a) FUNDING.—The Commodity Credit Corporation
shall make available for fiscal years 1996 through 2002
not less than $1,000,000,000 of direct credits or export
credit guarantees for exports to emerging markets under
section 201 or 202 of the Agricultural Trade Act of 1978
(7 U.S.C. 5621 and 5622), in addition to the amounts
acquired or authorized under section 211 of the Act (7
U.S.C. 5641) for the program.’’.
(3) AGRICULTURAL FELLOWSHIP PROGRAM.—Sec-
tion 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 is amended—
(A) in subsection (b), by striking the last
sentence and inserting the following: ‘‘The
Commodity Credit Corporation shall give prior-
ity under this subsection to—
‘‘(A) projects that encourage the privatiza-
tion of the agricultural sector or that benefit
private farms or cooperatives in emerging mar-
kets; and
164
‘‘(B) projects for which nongovernmental per-
sons agree to assume a relatively larger share
of the costs.’’; and
(B) in subsection(d)—
(i) in the matter preceding paragraph
(1), by striking ‘‘the Soviet Union’’ and in-
serting ‘‘emerging markets’’;
(ii) in paragraph (1)—
(I) in subparagraph (A)(i)—
(aa) by striking ‘‘1995’’ and
inserting ‘‘2002’’; and
(bb) by striking ‘‘those sys-
tems, and identify’’ and inserting
‘‘the systems, including potential
reductions in trade barriers, and
identify and carry out’’;
(II) in subparagraph (B), by strik-
ing ‘‘shall’’ and inserting ‘‘may’’;
(III) in subparagraph (D), by in-
serting ‘‘(including the establishment
of extension services)’’ after ‘‘tech-
nical assistance’’;
(IV) by striking subparagraph (F);
165
(V) by redesignating subparagraphs
(G)(H), and (I) as subparagraphs
(F), (G), and (H), respectively; and
(VI) in subparagraph (H) (as re-
designated by subclause (V)), by strik-
ing 
‘‘$10,000,000’’ 
and 
inserting
‘‘$20,000,000’’;
(iii) in paragraph (2)—
(I) by striking ‘‘the Soviet Union’’
each place it appears and inserting
‘‘emerging markets’’;
(II) in subparagraph (A), by strik-
ing ‘‘a free market food production
and distribution system’’ and insert-
ing ‘‘free market food production and
distribution systems’’;
(III) in subparagraph (B)—
(aa) in clause (i), by striking
‘‘Government’’ 
and 
inserting
‘‘governments’’;
(bb) in clause (iii)(II), by
striking ‘‘and’’ at the end;
(cc) in clause (iii)(III), by
striking the period at the end
and inserting ‘‘; and’’; and
166
(dd) by adding at the end of
clause (iii) the following:
‘‘(IV) to provide for the exchange of
administrators and faculty members
from agricultural and other institu-
tions to strengthen and revise edu-
cational programs in agricultural eco-
nomics, agribusiness, and agrarian
law, to support change towards a free
market economy in emerging mar-
kets.’’;
(IV) by striking subparagraph (D);
and
by redesignating subparagraph (E)
as subparagraph (D); and
(iv) by striking paragraph (3).
(4) UNITED
STATES
AGRICULTURAL
COMMOD-
ITY.—Subsections (b) and (c) of section 1542 of the
Food, Agriculture, Conservation, and Trade Act of
1990 are amended by striking ‘‘section 101(6)’’ each
place it appears and inserting ‘‘section 102(7)’’.
(5) REPORT.—The first sentence of section
1542(e)(2) of the Food, Agriculture, Conservation,
and Trade Act of 1990 is amended by striking
‘‘Not’’ and inserting ‘‘Subject to section 217 of the
167
Department of Agriculture Reorganization Act of
1994 (7 U.S.C. 6917), not’’.
(b) AGRICULTURAL
FELLOWSHIP PROGRAM
FOR
MIDDLE INCOME COUNTRIES, EMERGING DEMOCRACIES,
AND EMERGING MARKETS.—Section 1543 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 3293) is amended—
(1) in the section heading, by striking ‘‘MID-
DLE INCOME COUNTRIES AND EMERG-
ING DEMOCRACIES’’ and inserting ‘‘MID-
DLE INCOME COUNTRIES, EMERGING
DEMOCRACIES, AND EMERGING MAR-
KETS’’;
(2) in subsection (b), by adding at the end the fol-
lowing:
‘‘(5) EMERGING MARKET.—Any emerging market,
as defined in section 1542(f).’’; and
(3) in subsection (c)(1), by striking ‘‘food needs’’
and inserting ‘‘food and fiber needs’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 501 of the Agricultural Trade Devel-
opment and Assistance Act of 1954 (7 U.S.C. 1737
is amended—
168
(A) in subsection (a), by striking ‘‘emerging
democracies’’ and inserting ‘‘emerging mar-
kets’’; and
(B) in subsection (b), by striking paragraph
(1) and inserting the following:
‘‘(1) EMERGING
MARKET.—The term ‘emerging
market’ means any country that the Secretary deter-
mines—
(A) is taking steps toward a market-oriented
economy through the food, agriculture, or rural
business sectors of the economy of the country;
and
‘‘(B) has the potential to provide a viable and
significant market for United States agricul-
tural commodities or products of United States
agricultural commodities.’’.
(2) Section 201(d)(1)(C)(ii) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is
amended by striking ‘‘emerging democracies’’ and
inserting ‘‘emerging markets’’.
(3) Section 202(d)(3)(B) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is
amended by striking ‘‘emerging democracies’’ and
inserting ‘‘emerging markets’’.
169
SEC. 487. IMPLEMENTATION OF COMMITMENTS UNDER
URUGUAY ROUND AGREEMENTS.
Part III of subtitle A of title IV of the Uruguay
Round Agreements Act (Public Law 103–465; 108 Stat.
4964) is amended by adding at the end the following:
‘‘SEC. 427. IMPLEMENTATION OF COMMITMENTS UNDER
URUGUAY ROUND AGREEMENTS
‘‘Not later than September 30 of fiscal year, the
Secretary of Agriculture shall determine whether the obli-
gations undertaken by foreign countries under the Uru-
guay Round Agreement on Agriculture are being fully
implemented. If the Secretary of Agriculture determines
that any foreign country, by not implementing the obliga-
tions of the country, is significantly constraining an op-
portunity for United States agricultural exports, the Sec-
retary shall—
‘‘(1) submit to the United States Trade Representa-
tive a recommendation as to whether the President
should take action under any provision of law; and
‘‘(2) transmit a copy of the recommendation to
the Committee on Agriculture, the Committee on
International Relations, and the Committee on Ways
and Means, of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry,
and the Committee on Finance, of the Senate.’’.
170
SEC. 488. SENSE OF CONGRESS CONCERNING MULTILAT-
ERAL DISCIPLINES ON CREDIT GUARANTEES.
It is the sense of Congress that—
(1) in negotiations to establish multilateral dis-
ciplines on agricultural export credits and credit
guarantees, the United States should not agree to
any arrangement that is incompatible with the provi-
sions of United States law that authorize agricul-
tural export credits and credit guarantees;
(2) in the negotiations (which are held under the
auspices of the Organization for Economic Coopera-
tion and Development), the United States should not
reach any agreement that fails to impose disciplines
on the practices of foreign government trading enti-
ties such as the Australian Wheat Board and Cana-
dian Wheat Board; and
(3) the disciplines should include greater openness
in the operations of the entities as long as the enti-
ties are subsidized by the foreign government or
have monopolies for exports of a commodity that are
sanctioned by the foreign government.
SEC. 489. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601
et seq.) is amended by adding at the end the following:
171
‘‘TITLE VII—FOREIGN MARKET
DEVELOPMENT COOPERATOR
PROGRAM
‘‘SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZA-
TION.
‘‘In this title, the term ‘eligible trade organization’
means a United States trade organization that—
‘‘(1) promotes the export of 1 or more United
States agricultural commodities or products; and
‘‘(2) does not have a business interest in or re-
ceive remuneration from specific sales of agricultural
commodities or products.
‘‘SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR
PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall establish
and, in cooperation with eligible trade organizations,
carry out a foreign market development cooperator pro-
gram to maintain and develop foreign markets for United
States agricultural commodities and products.
‘‘(b) ADMINISTRATION.—Funds made available to
carry out this title shall be used only to provide—
‘‘(1) cost-share assistance to an eligible trade or-
ganization under a contract or agreement with the
organization; and
172
‘‘(2) assistance for other costs that are necessary
or appropriate to carry out the foreign market devel-
opment cooperator program, including contingent li-
abilities that are not otherwise funded.
‘‘SEC. 703. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry
out this title such sums as may be necessary for each of
fiscal years 1996 through 2002.’’.
Subtitle E—Dairy Exports
SEC. 491. DAIRY EXPORT INCENTIVE PROGRAM
(a) IN GENERAL.—Section 153(c) of the Food Se-
curity Act of 1985 (15 U.S.C. 713a–14(c)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(1);
(2) by striking the period at the end of para-
graph (2) and inserting ’’;’’; and
(3) by adding at the end the following new
paragraphs:
‘‘(3) the maximum volume of dairy product ex-
ports allowable consistent with the obligations of the
United States as a member of the World Trade Or-
ganization are exported under the program each
year (minus the volume sold under section 1163 of
the Food Security Act of 1985 (7 U.S.C. 1731 note)
during that year), except to the extent that the ex-
173
port of such a volume under the program would, in
the judgment of the Secretary, exceed the limitations
on the value set forth in subsection (f); and
‘‘(4) payments may be made under the program
for exports to any destination in the world for the
purpose of market development, except a destination
in a country with respect to which shipments from
the United States are otherwise restricted by law.’’.
(b) SOLE DISCRETION.—Section 153(b) of the
Food Security Act of 1985 (15 U.S.C. 713a–14(b)) is
amended by inserting ‘‘sole’’ before ‘‘discretion’’.
(c) MARKET DEVELOPMENT.—Section 153(e)(1)
of the Food Security Act of 1985 (15 U.S.C. 713a–
14(e)(1)) is amended—
(1) by striking ‘‘and’’ and inserting ‘‘the’’; and
(2) by inserting before the period the following:
’’, and any additional amount that may be required
to assist in the development of world markets for
United States dairy products’’.
(d) MAXIMUM ALLOWABLE AMOUNTS.—Section
153 of the Food Security Act of 1985 (15 U.S.C. 713a–
14) is amended by adding at the end the following:
‘‘(f) 
REQUIRED
FUNDING.—The 
Commodity
Credit Corporation shall in each year use money and
commodities for the program under this section in the
174
maximum amount consistent with the obligations of the
United States as a member of the World Trade Organi-
zation, minus the amount expended under section 1163
of the Food Security Act of 1985 (7 U.S.C. 1731 note)
during that year. However, the Commodity Credit Cor-
poration may not exceed the limitations specified in sub-
section (c)(3) on the volume of allowable dairy product
exports.’’.
(e) CONFORMING AMENDMENT.—Section 153(a)
of the Food Security Act of 1985 (15 U.S.C. 713a–
14(a)) is amended by striking ‘‘2001’’ and inserting
‘‘2002’’.
SEC. 492. AUTHORITY TO ASSIST IN ESTABLISHMENT AND
MAINTENANCE OF EXPORT TRADING COM-
PANY.
The Secretary of Agriculture shall, consistent with
the obligations of the United States as a member of the
World Trade Organization, provide such advice and as-
sistance to the United States dairy industry as may be
necessary to enable that industry to establish and main-
tain an export trading company under the Export Trad-
ing Company Act of 1982 (15 U.S.C. 4001 et seq.) for
the purpose of facilitating the international market devel-
opment for and exportation of dairy products produced in
the United States.
175
SEC. 493. STANDBY AUTHORITY TO INDICATE ENTITY BEST
SUITED TO PROVIDE INTERNATIONAL MAR-
KET DEVELOPMENT AND EXPORT SERVICES.
(a) INDICATION OF ENTITY BEST SUITED TO AS-
SIST INTERNATIONAL MARKET DEVELOPMENT FOR AND
EXPORT OF UNITED STATES DAIRY PRODUCTS.—If—
(1) the United States dairy industry has not es-
tablished an export trading company under the Ex-
port Trading Company Act of 1982 (15 U.S.C. 4001
et seq.) for the purpose of facilitating the inter-
national market development for an exportation of
dairy products produced in the United States on or
before June 30, 1996; or
(2) the quantity of exports of United States
dairy products during the 12-month period preced-
ing July 1, 1997 does not exceed the quantity of ex-
ports of United States dairy products during the 12-
month period preceding July 1, 1996 by 1.5 billion
pounds (milk equivalent, total solids basis);
the Secretary of Agriculture is directed to indicate which
entity autonomous of the Government of the United States
is best suited to facilitate the international market devel-
opment for and exportation of United States dairy prod-
ucts.
(b) FUNDING OF EXPORT ACTIVITIES.—The Sec-
retary shall assist the entity in identifying sources of
176
funding for the activities specified in subsection (a) from
within the diary industry and elsewhere.
(c) APPLICATION OF SECTION.—This section shall
apply only during the period beginning on July 1, 1997
and ending on September 30, 2000.
SEC. 494. STUDY AND REPORT REGARDING POTENTIAL IM-
PACT OF URUGUAY ROUND ON PRICES, IN-
COME AND GOVERNMENT PURCHASES.
(a) STUDY.—The Secretary of Agriculture shall
conduct a study, on a variety by variety of cheese basis,
to determine the potential impact on milk prices in the
United States, dairy producer income, and Federal dairy
program costs, of the allocation of additional cheese
granted access to the United States as a result of the ob-
ligations of the United States as a member of the world
Trade Organization.
(b) REPORT.—Not later than June 30, 1997, the
Secretary shall report to the Committees on Agriculture
of the Senate and the House of Representatives the re-
sults of the study conducted under this section.
(c) RULE OF CONSTRUCTION.—Any limitation im-
posed by Act of Congress on the conduct or completion
of studies or reports to Congress shall not apply to the
study and report required under this section unless such
limitation explicitly references this section in doing so.
177
SEC. 495. PROMOTION OF UNITED STATES DAIRY PROD-
UCTS 
IN 
INTERNATIONAL 
MARKETS
THROUGH DAIRY PROMOTION PROGRAM.
Section 113(e) of the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4504(e)) is amended by add-
ing at the end the following new sentence: ‘‘For each of
the fiscal years 1996 through 2000, the Board’s budget
shall provide for the expenditure of not less than 10 per-
cent of the anticipated revenues available to the Board to
develop international markets for, and to promote within
such markets, the consumption of dairy products pro-
duced in the United States from milk produced in the
United States.’’.
TITLE V—MISCELLANEOUS
SEC. 501. CROP INSURANCE.
(a) CATASTROPHIC
RISK
PROTECTION.—Section
508(b) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)) is amended—
(1) in paragraph (4), by adding at the end the
following:
‘‘(C) DELIVERY OF COVERAGE.—
‘‘(i) IN GENERAL.—In full consulta-
tion with approved insurance providers, the
Secretary may continue to offer cata-
strophic risk protection in a State (or a
portion of a State) through local offices of
178
the Department if the Secretary deter-
mines that there is an insufficient number
of approved insurance providers operating
in the State or portion to adequately pro-
vide catastrophic risk protection coverage
to producers.
‘‘(ii) COVERAGE BY APPROVED INSUR-
ANCE PROVIDERS.—To the extent that cat-
astrophic risk protection coverage by ap-
proved insurance providers is sufficiently
available in a State as determined by the
Secretary, only approved insurance provid-
ers may provide the coverage in the State.
‘‘(iii) CURRENT POLICIES.—Subject to
clause (ii), all catastrophic risk protection
policies written by local offices of the De-
partment shall be transferred to the ap-
proved insurance provider for performance
of all sales, service, and loss adjustment
functions. Any fees in connection with such
policies that are not yet collected at the
time of the transfer shall be payable to the
approved insurance providers assuming the
policies.’’; and
179
(2) in paragraph (7), by striking subparagraph
(A) and inserting the following:
‘‘(A) IN
GENERAL.—Effective for the
spring-planted 1996 and subsequent crops, to
be eligible for any payment or loan under title
I of the Agricultural Market Transition Act or
the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.), for the conservation re-
serve program, or for any benefit described in
section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f), a
person shall—
‘‘(i) obtain at least the catastrophic
level of insurance for each crop of eco-
nomic significance in which the person has
an interest; or
‘‘(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connec-
tion with the crop.’’.
(b) 
COVERAGE
OF
SEED
CROPS.—Section
519(a)(2)(B) of the Act (7 U.S.C. 1519(a)(2)(B)) is
amended by inserting ‘‘seed crops,’’ after ‘‘turfgrass sod,’’.
180
SEC. 502. COLLECTION AND USE OF AGRICULTURAL QUAR-
ANTINE AND INSPECTION FEES.
Subsection (a) of section 2509 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (21 U.S.C.
136a) is amended to read as follows:
‘‘(a) QUARANTINE AND INSPECTION FEES.—
‘‘(1) FEES AUTHORIZED.—The Secretary of Ag-
riculture may prescribe and collect fees sufficient—
‘‘(A) to cover the cost of providing agricul-
tural quarantine and inspection services in con-
nection with the arrival at a port in the cus-
toms territory of the United States, or the
preclearance or preinspection at a site outside
the customs territory of the United States, of
an international passenger, commercial vessel,
commercial aircraft, commercial truck, or rail-
road car;
‘‘(B) to cover the cost of administering this
subsection; and
‘‘(C) through fiscal year 2002, to maintain
a reasonable balance in the Agricultural Quar-
antine Inspection User Fee Account established
under paragraph (5).
‘‘(2) LIMITATION.—In setting the fees under
paragraph (1), the Secretary shall ensure that the
amount of the fees are commensurate with the costs