I
105TH CONGRESS
2D SESSION
H. R. 4580
To amend the Agricultural Market Transition Act to provide supplemental
payments to farm owners and producers who have entered into produc-
tion flexibility contracts under that Act.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 16, 1998
Mr. BARRETT of Nebraska (for himself, Mr. MORAN of Kansas, Mr. EWING,
Mr. PICKERING, Mr. BLUNT, Mr. LEACH, Mr. COOKSEY, Mr.
NETHERCUTT, Mr. SMITH of Michigan, Mr. BEREUTER, Mr. CHAMBLISS,
Mr. HILL, Mr. LAHOOD, Mr. RYUN, Mr. LEWIS of Kentucky, Mrs.
EMERSON, Mr. BUNNING, Mr. WELLER, Mr. CRAPO, Mr. LUCAS of Okla-
homa, and Mr. WATTS of Oklahoma) introduced the following bill; which
was referred to the Committee on Agriculture
A BILL
To amend the Agricultural Market Transition Act to provide
supplemental payments to farm owners and producers
who have entered into production flexibility contracts
under that Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Agricultural Trade
Emergency Response Act of 1998’’.
SEC. 2. SUPPLEMENTAL PAYMENTS UNDER SUBTITLE B OF
AGRICULTURAL MARKET TRANSITION ACT.
(a) FINDINGS.—Congress finds the following:
(1) United States exports of agricultural com-
modities declined substantially in 1997 and 1998
primarily as a result of the economic and financial
crisis in Asia.
(2) Export sales of United States wheat, feed
grains, rice, and upland cotton have declined by 20
percent because of the Asian financial crisis.
(3) As a result, producers who are parties to
production flexibility contracts under subtitle B of
the Agricultural Market Transition Act (7 U.S.C.
7211 et seq.) have experienced low crop prices and
a severe decline in farm income.
(4) The severity of the decline in farm income
places producers in such temporary financial jeop-
ardy that a supplemental payment under the Agri-
cultural Market Transition Act is required to assist
them in coping with financial conditions beyond
their control.
(b) AUTHORITY TO PROVIDE SUPPLEMENTAL PAY-
MENT.—Subtitle B of the Agricultural Market Transition
Act (7 U.S.C. 7211 et seq.) is amended by adding at the
end the following new section:
‘‘SEC. 119. PROVISION OF SUPPLEMENTAL PAYMENTS.
‘‘(a) AUTHORITY TO PROVIDE.—In addition to the
contract payment determined and paid under a production
flexibility contract for fiscal years 1998 and 1999, the Sec-
retary shall make a supplemental payment under this sec-
tion in connection with that contract for each of those fis-
cal years.
‘‘(b) AMOUNT OF PAYMENT.—The amount of the
supplemental payment made in connection with a produc-
tion flexibility contract for each of the fiscal years 1998
and 1999 shall be equal to 20 percent of the amount of
the contract payment determined for that contract for the
applicable fiscal year under section 114.
‘‘(c) TIME FOR PAYMENT.—
‘‘(1) FISCAL
YEAR
1998.—The supplemental
payment for fiscal year 1998 for an owner or pro-
ducer eligible for the payment shall be made not
later than 30 days after the date of the enactment
of this section.
‘‘(2) FISCAL
YEAR
1999.—The supplemental
payment for fiscal year 1999 for an owner or pro-
ducer shall be made in connection with the contract
payment for that fiscal year or as soon thereafter as
practicable.
‘‘(d) SHARING OF PAYMENT.—As is the case with
contract payments, the Secretary shall provide for the
sharing of the supplemental payment made in connection
with a production flexibility contract among the owners
and producers subject to that contract on a fair and equi-
table basis.
‘‘(e) EFFECT OF VIOLATIONS OF CONTRACT.—A sup-
plemental payment shall be treated as a contract payment
for purposes of section 116.’’.
Æ