‘‘(3) QUOTA NOT PRODUCED.—
‘‘(A) IN GENERAL.—Insofar as practicable
and on such fair and equitable basis as the Sec-
retary may by regulation prescribe, the farm
poundage quota established for a farm for any
marketing year shall be reduced to the extent
that the Secretary determines that the farm
poundage quota established for the farm for
any 2 of the 3 marketing years preceding the
marketing year for which the determination is
being made was not produced, or considered
produced, on the farm.
‘‘(B) EXCLUSIONS.—For purposes of this
paragraph, the farm poundage quota for any
such preceding marketing year shall not include
any increase resulting from the allocation of
quotas voluntarily released for 1 year under
paragraph (7).
‘‘(4) QUOTA
CONSIDERED
PRODUCED.—For
purposes of this subsection, the farm poundage
quota shall be considered produced on a farm if—
‘‘(A) the farm poundage quota was not
produced on the farm because of drought, flood,
or any other natural disaster, or any other con-
dition beyond the control of the producer, as
determined by the Secretary; or
‘‘(B) the farm poundage quota for the
farm was either leased to another owner or op-
erator of a farm within the same county for
transfer to such farm for only 1 of the 3 mar-
keting years immediately preceding the market-
ing year for which the determination is being
made or the farm poundage quota was released
voluntarily under paragraph (7) for only 1 of
the 3 marketing years immediately preceding
the marketing year for which the determination
is being made. The farm poundage quota shall
not be considered produced for more than one
marketing year out of the three immediately
preceding marketing years under this subpara-
graph.
‘‘(5) QUOTA PERMANENTLY RELEASED.—Not-
withstanding any other provision of law—
‘‘(A) the farm poundage quota established
for a farm under this subsection, or any part of
the quota, may be permanently released by the
owner of the farm, or the operator with the per-
mission of the owner; and
‘‘(B) the poundage quota for the farm for
which the quota is released shall be adjusted
downward to reflect the quota that is so re-
leased.
‘‘(6) ALLOCATION OF QUOTAS REDUCED OR RE-
LEASED.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the total quantity of the
farm poundage quotas reduced or voluntarily
released from farms in a State for any market-
ing year under paragraphs (3) and (5) shall be
allocated, as the Secretary may by regulation
prescribe, to other farms in the State as pro-
vided in subparagraph (B) on which peanuts
were produced in at least 2 of the 3 crop years
immediately preceding the year for which the
allocation is being made.
‘‘(B) SET-ASIDE
FOR
FARMS
WITH
NO
QUOTA.—The total amount of farm poundage
quota to be allocated in the State under sub-
paragraph (A) shall be allocated to farms in the
State for which no farm poundage quota was
established for the immediately preceding year’s
crop. The allocation to any such farm shall not
exceed the average farm production of peanuts
for the 3 immediately preceding years during
which peanuts were produced on the farm. Any
farm quota pounds remaining after allocation to
farms under this subparagraph shall be allo-
cated to farms in the State on which poundage
quotas were established for the immediately
preceding year’s crop.
‘‘(7) QUOTA TEMPORARILY RELEASED.—
‘‘(A) IN
GENERAL.—The farm poundage
quota, or any portion thereof, established for a
farm for a marketing year may be voluntarily
released to the Secretary to the extent that the
quota, or any part thereof, will not be produced
on the farm for the marketing year. Any farm
poundage quota so released in a State shall be
allocated to other farms in the State on such
basis as the Secretary may by regulation pre-
scribe.
‘‘(B) EFFECTIVE PERIOD.—Except as oth-
erwise provided in this section, any adjustment
in the farm poundage quota for a farm under
subparagraph (A) shall be effective only for the
marketing year for which it is made and shall
not be taken into consideration in establishing
a farm poundage quota for the farm from which
respect to the crop of peanuts produced in the cal-
endar year immediately following the calendar year
in which the referendum is held.
‘‘(e) DEFINITIONS.—For the purposes of this part
and title I of the Agricultural Act of 1949 (7 U.S.C. 1441
et seq.):
‘‘(1) ADDITIONAL PEANUTS.—The term ‘addi-
tional peanuts’ means, for any marketing year—
‘‘(A) any peanuts that are marketed from
a farm for which a farm poundage quota has
been established and that are in excess of the
marketings of quota peanuts from the farm for
the year; and
‘‘(B) all peanuts marketed from a farm for
which no farm poundage quota has been estab-
lished in accordance with subsection (b).
‘‘(2) CRUSHING.—The term ‘crushing’ means
the processing of peanuts to extract oil for food uses
and meal for feed uses, or the processing of peanuts
by crushing or otherwise when authorized by the
Secretary.
‘‘(3) DOMESTIC EDIBLE USE.—The term ‘do-
mestic edible use’ means use for milling to produce
domestic food peanuts (other than those described in
paragraph (2)) and use on a farm, except that the
Secretary may exempt from this definition seeds of
peanuts that are used to produce peanuts excluded
under section 358d(c), are unique strains, and are
not commercially available.
‘‘(4) QUOTA PEANUTS.—The term ‘quota pea-
nuts’ means, for any marketing year, any peanuts
produced on a farm having a farm poundage quota,
as determined in subsection (b), that—
‘‘(A) are eligible for domestic edible use as
determined by the Secretary;
‘‘(B) are marketed or considered marketed
from a farm; and
‘‘(C) do not exceed the farm poundage
quota of the farm for the year.
‘‘(f) CROPS.—Notwithstanding any other provision of
law, this section shall be effective only for the 1996
through 2002 crops of peanuts.’’.
(b) SALE, LEASE, OR TRANSFER OF FARM POUND-
AGE QUOTA.—Section 358b of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1358b) is amended to read
as follows:
‘‘SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUND-
AGE QUOTA FOR PEANUTS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—Subject to such terms, con-
ditions, or limitations as the Secretary may pre-
scribe, the owner, or operator with the permission of
the owner, of any farm for which a farm poundage
quota has been established under this Act may sell
or lease all or any part of the poundage quota to any
other owner or operator of a farm within the same
State if not less than 90 percent of the basic quota
(the farm quota exclusive of temporary quota trans-
fers), plus any poundage quota transferred to the
farm under this subsection, has been planted or con-
sidered planted on the farm from which the quota is
to be transfered. The transfer shall be under such
terms and conditions as the Secretary may by regu-
lation prescribe. In the case of a fall transfer or a
transfer after the normal planting season by a cash
lessee, the landowner shall not be required to sign
the transfer authorization. A fall transfer or a trans-
fer after the normal planting season may be made
not later than 72 hours after the peanuts that are
the subject of the transfer are inspected and graded.
Fall transfers of quota pounds shall not affect the
farm quota history for the transferring or receiving
farm and shall not result in reducing the farm
poundage quota on the transferring farm.
‘‘(2) TRANSFERS
IN
STATES
WITH
SMALL
QUOTAS.—Notwithstanding paragraph (1) and (2),
in the case of any State for which the poundage
quota allocated to the State was less than 10,000
tons for the preceding year’s crop, all or any part of
a farm poundage quota may be transferred by sale
or lease or otherwise from a farm to another farm
in any State.
‘‘(b) CONDITIONS.—Transfers (including transfer by
sale or lease) of farm poundage quotas under this section
shall be subject to all of the following conditions:
‘‘(1) LIENHOLDERS.—No transfer of the farm
poundage quota from a farm subject to a mortgage
or other lien shall be permitted unless the transfer
is agreed to by the lienholders, except that no such
agreement shall be necessary in the event of all
lease, if the operator had the lienholder’s agreement
for a previous spring cash lease.
‘‘(2) TILLABLE CROPLAND.—No transfer of the
farm poundage quota shall be permitted if the coun-
ty committee established under section 8(b) of the
Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) determines that the receiving farm
does not have adequate tillable cropland to produce
the farm poundage quota.
‘‘(3) RECORD.—No transfer of the farm pound-
age quota shall be effective until a record thereof is
filed with the county committees of the counties
from which transferred and to which transferred and
the committees determined that the transfer com-
plies with this section.
‘‘(4) OTHER
TERMS.—Such other terms and
conditions that the Secretary may by regulation pre-
scribe.
‘‘(c) CROPS.—Notwithstanding any other provision of
law, this section shall be effective only for the 1996
through 2002 crops of peanuts.’’.
(c) MARKETING PENALTIES; DISPOSITION OF ADDI-
TIONAL PEANUTS.—Section 358e of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1359a) is amended to
read as follows:
‘‘SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF
ADDITIONAL PEANUTS.
‘‘(a) MARKETING PENALTIES.—
‘‘(1) IN GENERAL.—
‘‘(A) MARKETING PEANUTS IN EXCESS OF
QUOTA.—The marketing of any peanuts for do-
mestic edible use in excess of the farm pound-
age quota for the farm on which the peanuts
are produced shall be subject to penalty at a
rate equal to 140 percent of the support price
for quota peanuts for the marketing year in
which the marketing occurs. The penalty shall
not apply to the marketing of breeder or Foun-
dation seed peanuts grown and marketed by a
publicly owned agricultural experiment station
(including a State operated seed organization)
under such regulations as the Secretary may
prescribe.
‘‘(B) MARKETING YEAR.—For purposes of
this section, the marketing year for peanuts
shall be the 12-month period beginning August
1 and ending July 31.
‘‘(C) 
MARKETING
ADDITIONAL
PEA-
NUTS.—The marketing of any additional pea-
nuts from a farm shall be subject to the same
penalty unless the peanuts, in accordance with
regulations established by the Secretary, are—
‘‘(i) placed under loan at the addi-
tional loan rate in effect for the peanuts
under section 108B of the Agricultural Act
of 1949 and not redeemed by the produc-
ers;
‘‘(ii) marketed through an area mar-
keting association designated pursuant to
section 108B(c)(1) of the Agricultural Act
of 1949; or
‘‘(iii) marketed under contracts be-
tween handlers and producers pursuant to
subsection (f).
‘‘(2) PAYER.—The penalty shall be paid by the
person who buys or otherwise acquires the peanuts
from the producer or, if the peanuts are marketed
by the producer through an agent, the penalty shall
be paid by the agent. The person or agent may de-
duct an amount equivalent to the penalty from the
price paid to the producer.
‘‘(3) FAILURE TO COLLECT.—If the person re-
quired to collect the penalty fails to collect the pen-
alty, the person and all persons entitled to share in
the peanuts marketed from the farm or the proceeds
thereof shall be jointly and severally liable with such
persons who failed to collect the penalty for the
amount of the penalty.
‘‘(4) APPLICATION
OF
QUOTA.—Peanuts pro-
duced in a calendar year in which farm poundage
quotas are in effect for the marketing year begin-
ning therein shall be subject to the quotas even
though the peanuts are marketed prior to the date
on which the marketing year begins.
‘‘(5) FALSE
INFORMATION.—If any producer
falsely identifies, fails to accurately certify planted
acres, or fails to account for the disposition of any
peanuts produced on the planted acres, a quantity of
peanuts equal to the greater of the farm’s average
or actual yield, as determined by the Secretary,
times the planted acres, shall be deemed to have
been marketed in violation of permissible uses of
quota and additional peanuts. Any penalty payable
under this paragraph shall be paid and remitted by
the producer.
‘‘(6) UNINTENTIONAL VIOLATIONS.—The Sec-
retary shall authorize, under such regulations as the
Secretary shall issue, the county committees estab-
lished under section 8(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590h(b)) to
waive or reduce marketing penalties provided for
under this subsection in cases which the committees
determine that the violations that were the basis of
the penalties were unintentional or without knowl-
edge on the part of the parties concerned.
‘‘(7) DE
MINIMIS
VIOLATIONS.—Errors in
weight that do not exceed one-tenth of 1 percent in
the case of any one marketing document shall not be
considered to be marketing violations except in cases
of fraud or conspiracy.
‘‘(b) USE OF QUOTA AND ADDITIONAL PEANUTS.—
‘‘(1) QUOTA
PEANUTS.—Only quota peanuts
may be retained for use as seed or for other uses on
a farm. When peanuts are so retained, such reten-
tion shall be considered as marketings of quota pea-
nuts, except that the Secretary may exempt from
consideration as marketings of quota peanuts seeds
of peanuts for the quantity involved that are used to
produce peanuts excluded under section 358d(c), are
unique strains, and are not commercially available.
‘‘(2) ADDITIONAL
PEANUTS.—Additional pea-
nuts shall not be retained for use on a farm and
shall not be marketed for domestic edible use, except
as provided in subsection (g).
‘‘(3) SEED.—Except as provided in paragraph
(1), seed for planting of any peanut acreage in the
United States shall be obtained solely from quota
peanuts marketed or considered marketed for do-
mestic edible use.
‘‘(c) MARKETING PEANUTS WITH EXCESS QUAN-
TITY, GRADE, OR QUALITY.—On a finding by the Sec-
retary that the peanuts marketed from any crop for do-
mestic edible use by a handler are larger in quantity or
higher in grade or quality than the peanuts that could rea-
sonably be produced from the quantity of peanuts having
the grade, kernel content, the quality of the quota peanuts
acquired by the handler from the crop for the marketing
year, the handler shall be subject to a penalty equal to
140 percent of the loan level for quota peanuts on the
quantity of peanuts that the Secretary determines are in
excess of the quantity, grade, or quality of the peanuts
that could reasonably have been produced from the pea-
nuts so acquired.
‘‘(d) SUPERVISION OF HANDLERS OF ADDITIONAL
PEANUTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall require that the han-
dling and disposal of additional peanuts be super-
vised by agents of the Secretary or by area market-
ing associations designated pursuant to section
108B(c)(1) of the Agricultural Act of 1949.
‘‘(2) SUPERVISION BY NONHANDLERS.—
‘‘(A) IN
GENERAL.—Supervision of the
handling and disposal of additional peanuts by
a handler shall not be required under para-
graph (1) if the handler agrees in writing, prior
to any handling or disposal of the peanuts, to
comply with regulations that the Secretary shall
issue.
‘‘(B) REGULATIONS.—The regulations is-
sued by the Secretary under subparagraph (A)
shall include the following provisions:
‘‘(i) 
TYPES
OF
EXPORTED
OR
CRUSHED PEANUTS.—Handlers of shelled
or milled peanuts may export or crush pea-
nuts classified by type in all of the follow-
ing quantities:
‘‘(I) SOUND SPLIT KERNEL PEA-
NUTS.—Sound split kernel peanuts
purchased by the handler as addi-
tional peanuts to which, under price
support loan schedules, a mandated
deduction with respect to the price
paid to the producer of the peanuts
would be applied due to the percent-
age of the sound splits.
‘‘(II) SOUND
MATURE
KERNEL
PEANUTS.—Sound mature kernel pea-
nuts (which term includes sound split
kernel peanuts and sound whole ker-
nel peanuts) in an amount equal to
the poundage of the peanuts pur-
chased by the handler as additional
peanuts, less the total poundage of
sound split kernel peanuts described
in subclause (I).
‘‘(III) 
REMAINDER.—The 
re-
maining quantity of total kernel con-
tent of peanuts purchased by the han-
dler as additional peanuts.
‘‘(ii) 
DOCUMENTATION.—Handlers
shall ensure that any additional peanuts
exported or crushed are evidenced by on-
board bills of lading or other appropriate
documentation as may be required by the
Secretary, or both.
‘‘(iii) LOSS OF PEANUTS.—If a han-
dler suffers a loss of peanuts as a result of
fire, flood, or any other condition beyond
the control of the handler, the portion of
the loss allocated to contracted additional
peanuts shall not be greater than the por-
tion of the handler’s total peanut pur-
chases for the year attributable to con-
tracted additional peanuts purchased for
export or crushing by the handler during
the year.
‘‘(iv) SHRINKAGE ALLOWANCE.—
‘‘(I) IN
GENERAL.—The obliga-
tion of a handler to export or crush
peanuts in quantities described in this
subparagraph shall be reduced by a
shrinkage allowance, to be determined
by the Secretary, to reflect actual dol-
lar value shrinkage experienced by
handlers in commercial operations, ex-
cept that the allowance shall not be
less than 4 percent, except as pro-
vided in subclause (II).
‘‘(II) COMMON INDUSTRY PRAC-
TICES.—The Secretary may provide a
lower shrinkage allowance for a han-
dler who fails to comply with the re-
strictions on the use of peanuts, as
may be specified by the Commodity
Credit Corporation, to take into ac-
count common industry practices.
‘‘(3) ADEQUATE FINANCES AND FACILITIES.—A
handler shall submit to the Secretary adequate fi-
nancial guarantees, as well as evidence of adequate
facilities and assets, with the facilities under the
control and operation of the handler, to ensure the
handler’s compliance with the obligation to export
peanuts.
‘‘(4) COMMINGLING OF LIKE PEANUTS.—Quota
and additional peanuts of like type and segregation
or quality may, under regulations issued by the Sec-
retary, be commingled and exchanged on a dollar
value basis to facilitate warehousing, handling, and
marketing.
‘‘(5) PENALTY.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the failure by a handler to
comply with regulations issued by the Secretary
governing the disposition and handling of addi-
tional peanuts shall subject the handler to a
penalty at a rate equal to 140 percent of the
loan level for quota peanuts on the quantity of
peanuts involved in the violation.
‘‘(B) NONDELIVERY.—A handler shall not
be subject to a penalty for failure to export ad-
ditional peanuts if the peanuts were not deliv-
ered to the handler.
‘‘(6) REENTRY OF EXPORTED PEANUTS.—
‘‘(A) PENALTIES.—If any additional pea-
nuts or peanut products manufactured from ad-
ditional peanuts exported by a handler are reen-
tered into the United States in commercial
quantities as determined by the Secretary, the
importer thereof shall be subject to a penalty at
a rate equal to 140 percent of the loan level for
quota peanuts on the quantity of peanuts reen-
tered.
‘‘(B) RECORDS.—Each person, firm, or
handler who imports peanuts into the United
States shall maintain such records and docu-
ments as are required by the Secretary to en-
sure compliance with this subsection.
‘‘(e) SPECIAL EXPORT CREDITS.—
‘‘(1) IN GENERAL.—The Secretary shall, with
due regard for the integrity of the peanut program,
promulgate regulations that will permit any handler
of peanuts who manufactures peanut products from
domestic edible peanuts to export the products and
receive credit for the fulfillment of export obligations
for the peanut content of the products against which
the export credits the handler may thereafter apply,
up to the amount thereof, equivalent quantities of
additional peanuts of the same type acquired by the
handler and used in the domestic edible market. The
peanuts so acquired for the domestic edible market
as provided in this subsection shall be of the same
crop year as the peanuts used in the manufacture of
the products so exported.
‘‘(2) CERTIFICATION.—Under such regulations,
the Secretary shall require all handlers who are pea-
nut product manufacturers to submit annual certifi-
cations of peanut product content on a product-by-
product basis. Any changes in peanut product for-
mulas as affecting peanut content shall be recorded
within 90 days of the changes. The Secretary shall
conduct an annual review of the certifications. The
Secretary shall pursue all available remedies with re-
spect to persons who fail to comply with this para-
graph.
‘‘(3) RECORDS.—The Secretary shall require
handlers who are peanut product manufacturers to
maintain and provide such documents as are nec-
essary to ensure compliance with this subsection and
to maintain the integrity of the peanut program.
‘‘(f) CONTRACTS
FOR PURCHASE
OF ADDITIONAL
PEANUTS.—
‘‘(1) IN GENERAL.—Handlers may, under such
regulations as the Secretary may issue, contract with
producers for the purchase of additional peanuts for
crushing or export, or both.
‘‘(2) SUBMISSION TO SECRETARY.—
‘‘(A) CONTRACT
DEADLINE.—Any such
contract shall be completed and submitted to
the Secretary (or if designated by the Sec-
retary, the area marketing association) for ap-
proval not later than September 15 of the year
in which the crop is produced.
‘‘(B) EXTENSION
OF
DEADLINE.—The
Secretary may extend the deadline under sub-
paragraph (A) by up to 15 days in response to
damaging weather or related condition (as de-
fined in section 112 of the Disaster Assistance
Act of 1989 (7 U.S.C. 1421 et seq.)). The Sec-
retary shall announce the extension no later
than September 5 of the year in which the crop
is produced.
‘‘(3) FORM.—The contract shall be executed on
a form prescribed by the Secretary. The form shall
require such information as the Secretary deter-
mines appropriate to ensure the proper handling of
the additional peanuts, including the identity of the
contracting parties, the poundage, and category of
the peanuts, the disclosure of any liens, and the in-
tended disposition of the peanuts.
‘‘(4) INFORMATION FOR HANDLING AND PROC-
ESSING
ADDITIONAL
PEANUTS.—Notwithstanding
any other provision of this section, any person wish-
ing to handle and process additional peanuts as a
handler shall submit to the Secretary (or if des-
ignated by the Secretary, the area marketing asso-
ciation), such information as may be required under
subsection (d) by such date as prescribed by the Sec-
retary so as to permit final action to be taken on the
application by July 1 of each marketing year.
‘‘(5) TERMS.—Each such contract shall contain
the final price to be paid by the handler for the pea-
nuts involved and a specific prohibition against the
disposition of the peanuts for domestic edible or seed
use.
‘‘(6) SUSPENSION
OF
RESTRICTIONS
ON
IM-
PORTED PEANUTS.—Notwithstanding any other pro-
vision of this Act, if the President issues a proclama-
tion under section 404(b) of the Uruguay Round
Agreements Act expanding the quantity of peanuts
subject to the in-quota rate of duty under a tariff-
rate quota, or under section 22 of the Agricultural
Adjustment Act (7 U.S.C. 624), reenacted with
amendments by the Agricultural Marketing Agree-
ment Act of 1937, temporarily suspending restric-
tions on the importation of peanuts, the Secretary
shall, subject to such terms and conditions as the
Secretary may prescribe, permit a handler, with the
written consent of the producer, to purchase addi-
tional peanuts from any producer who contracted
with the handler and to offer the peanuts for sale
for domestic edible use.
‘‘(g) MARKETING
OF PEANUTS OWNED
OR CON-
TROLLED BY THE COMMODITY CREDIT CORPORATION.—
‘‘(1) IN GENERAL.—Subject to section 407 of
the Agricultural Act of 1949 (7 U.S.C. 1427), any
peanuts owned or controlled by the Commodity
Credit Corporation may be made available for do-
mestic edible use, in accordance with regulations is-
sued by the Secretary, so long as doing so does not
result in substantially increased cost to the Com-
modity Credit Corporation. Additional peanuts re-
ceived under loan shall be offered for sale for domes-
tic edible use at prices not less than those required
to cover all costs incurred with respect to the pea-
nuts for such items as inspection, warehousing,
shrinkage, and other expenses, plus—
‘‘(A) not less than 100 percent of the loan
value of quota peanuts if the additional peanuts
are sold and paid for during the harvest season
on delivery by and with the written consent of
the producer;
‘‘(B) not less than 105 percent of the loan
value of quota peanuts if the additional peanuts
are sold after delivery by the producer but not
later than December 31 of the marketing year;
or
‘‘(C) not less than 107 percent of the loan
value of quota peanuts if the additional peanuts
are sold later than December 31 of the market-
ing year.
‘‘(2) ACCEPTANCE OF BIDS BY AREA MARKET-
ING ASSOCIATIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), for the period from the date
additional peanuts are delivered for loan to
March 1 of the calendar year following the year
in which the additional peanuts were harvested,
the area marketing association designated pur-
suant to section 108B(c)(1) of the Agricultural
Act of 1949 shall have sole authority to accept
or reject lot list bids when the sales price, as
determined under this subsection, equals or ex-
ceeds the minimum price at which the Commu-
nity Credit Corporation may sell its stocks of
additional peanuts.
‘‘(B) MODIFICATION.—The area marketing
association and the Community Credit Corpora-
tion may agree to modify the authority granted
by subparagraph (A) to facilitate the orderly
marketing of additional peanuts.
‘‘(3) PRODUCER MARKETING AND EXPENSES.—
Notwithstanding any other provision of this Act, the
Secretary shall, in any determination required under
subsections (a)(2) and (b)(1) of section 108B of the
Agricultural Act of 1949, include any additional
marketing expenses required by law, excluding the
amount of any assessment required under the Omni-
bus Budget Reconciliation Act of 1990.
‘‘(h) ADMINISTRATION.—
‘‘(1) INTEREST.—The person liable for payment
or collection of any penalty provided for in this sec-
tion shall be liable also for interest thereon at a rate
per annum equal to the rate per annum of interest
that was charged the Commodity Credit Corporation
by the Treasury of the United States on the date the
penalty became due.
‘‘(2) DE MINIMIS QUANTITY.—This section shall
not apply to peanuts produced on any farm on which
the acreage harvested for nuts is one acre or less if
the producers who share in the peanuts produced on
the farm do not share in the peanuts produced on
any other farm.
‘‘(3) LIENS.—Until the amount of the penalty
provided by this section is paid, a lien on the crop
of peanuts with respect to which the penalty is in-
curred, and on any subsequent crop of peanuts sub-
ject to farm poundage quotas in which the person
liable for payment of the penalty has an interest,
shall be in effect in favor of the United States.
‘‘(4) PENALTIES.—
‘‘(A) PROCEDURES.—Notwithstanding any
other provision of law, the liability for and the
amount of any penalty assessed under this sec-
tion shall be determined in accordance with
such procedures as the Secretary by regulation
may prescribe. The facts constituting the basis
for determining the liability for or amount of
any penalty assessed under this section, when
officially determined in conformity with the ap-
plicable regulations prescribed by the Secretary,
shall be final and conclusive and shall not be
reviewable by any other officer or agency of the
Government.
‘‘(B) JUDICIAL REVIEW.—Nothing in this
section shall be construed as prohibiting any
court of competent jurisdiction from reviewing
any determination made by the Secretary with
respect to whether the determination was made
in conformity with the applicable law and regu-
lations.
‘‘(C) CIVIL PENALTIES.—All penalties im-
posed under this section shall for all purposes
be considered civil penalties.
‘‘(5) REDUCTION OF PENALTIES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law and except as provided in
subparagraph (B), the Secretary may reduce
the amount of any penalty assessed against
handlers under this section by any appropriate
amount, including, in an appropriate case,
eliminating the penalty entirely, if the Secretary
finds that the violation on which the penalty is
based was minor or inadvertent, and that the
reduction of the penalty will not impair the op-
eration of the peanut program.
‘‘(B) FAILURE
TO
EXPORT
CONTRACTED
ADDITIONAL
PEANUTS.—The amount of any
penalty imposed on a handler under this section
that resulted from the failure to export or crush
contracted additional peanuts shall not be re-
duced by the Secretary.
‘‘(i) CROPS.—Notwithstanding any other provision of
law, this section shall be effective only for the 1996
through 2002 crops of peanuts.’’.
(d) EXTENSION OF EXPERIMENTAL AND RESEARCH
PROGRAMS FOR PEANUTS.—Subsection 358c(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358c(d))
is amended by striking ‘‘1991 through 1995’’ and insert-
ing ‘‘1996 through 2002’’.
(e) PRICE SUPPORT PROGRAM.—Section 108B of the
Agricultural Act of 1949 (7 U.S.C. 1445c–3) is amended
to read as follows:
‘‘SEC. 108B. PRICE SUPPORT PROGRAM FOR PEANUTS.
‘‘(a) QUOTA PEANUTS.—
‘‘(1) IN GENERAL.—The Secretary shall make
price support available to producers through loans,
purchases, and other operations on quota peanuts
for each crop.
‘‘(2) SUPPORT
RATES.—The national average
quota support rate for each crop of quota peanuts
shall be the national average quota support rate for
the immediately preceding crop adjusted to reflect
any increase or decrease during the calendar year
immediately preceding the marketing year for the
crop for which a level of support is being deter-
mined, in the national average cost of peanut pro-
duction, excluding any change in the cost of land,
and the cost of any assessments required under sub-
section (g), except that in no event shall the national
average quota support rate be increased by more
than 5 percent of the national average quota support
rate for the preceding crop, nor be decreased by
more than 5 percent of the national average quota
support rate for the preceding crop.
‘‘(3) INSPECTION, HANDLING, OR STORAGE.—
The levels of support so announced shall not be re-
duced by any deductions for inspection, handling, or
storage.
‘‘(4) LOCATION
AND
OTHER
FACTORS.—The
Secretary may make adjustments for location of pea-
nuts and such other factors as are authorized by
section 403.
‘‘(5) ANNOUNCEMENT.—The Secretary shall
announce the level of support for quota peanuts of
each crop not later than February 15 preceding the
marketing year for the crop for which the level of
support is being determined.
‘‘(b) ADDITIONAL PEANUTS.—
‘‘(1) IN GENERAL.—The Secretary shall make
price support available to producers through loans,
purchases, or other operations on additional peanuts
from each crop at such levels 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, except that
the Secretary shall set the support rate on additional
peanuts at a level estimated by the Secretary to en-
sure that there are no losses to the Commodity
Credit Corporation on the sale or disposal of the
peanuts.
‘‘(2) ANNOUNCEMENT.—The Secretary shall
announce the level of support for additional peanuts
of each crop not later than February 15 preceding
the marketing year for the crop for which the level
of support 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
three producing areas (described in section
1446.95 of title 7 of the Code of Federal Regu-
lations (January 1, 1989)) to a designated area
marketing 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 sections 358d and 358e of the
Agricultural Adjustment Act of 1938.
‘‘(B) ADMINISTRATIVE AND SUPERVISORY
ACTIVITIES.—The area marketing associations
shall be used in administrative and supervisory
activities relating to price support and market-
ing activities under this section and sections
358d and 358e of the Agricultural Adjustment
Act of 1938.
‘‘(C) ASSOCIATION COSTS.—Loans made to
the association under this paragraph shall in-
clude, in addition to the price support value of
the peanuts, such costs as the area marketing
association reasonably may incur in carrying
out its responsibilities, operations, and activities
under this section and sections 358d and 358e
of the Agricultural Adjustment Act of 1938.
‘‘(2) POOLS FOR QUOTA AND ADDITIONAL PEA-
NUTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
require 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. Peanuts physically
produced outside the State of New Mexico shall
not be eligible for entry into or participation in
the New Mexico pools. 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 shall be distrib-
uted in proportion to the value of the peanuts
placed in the pool by each producer. Net gains
for peanuts in each pool shall consist of the fol-
lowing:
‘‘(i) QUOTA
PEANUTS.—For quota
peanuts, the net gains over and above the
loan indebtedness and other costs or losses
incurred on peanuts placed in the pool plus
an amount from all additional pool gains
equal to any loss on disposition of all pea-
nuts in the pool for quota peanuts.
‘‘(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 less any
amount allocated to offset any loss on the
pool for quota peanuts as provided in
clause (i).
‘‘(d) LOSSES.—Notwithstanding any other provision
of this section:
‘‘(1) QUOTA PEANUTS PLACED UNDER LOAN.—
Any distribution of net gains on additional peanuts
(other than net gains on additional peanuts in sepa-
rate 
type 
pools 
established 
under 
subsection
(c)(2)(A) for Valencia peanuts produced in New
Mexico) shall be first reduced to the extent of any
loss by the Commodity Credit Corporation on quota
peanuts placed under loan.
‘‘(2) QUOTA LOAN POOLS.—
‘‘(A) 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 such producer under section
358–1(b)(8) of the Agricultural Adjustment Act
of 1938.
‘‘(B) OTHER
LOSSES.—Losses in area
quota pools shall be offset by reducing the gains
of any producer in such pool by the amount of
pool gains attributed to the same producer from
the sale of additional peanuts for export and
domestic edible use.
‘‘(e) DISAPPROVAL
OF QUOTAS.—Notwithstanding
any other provision of law, no price support may be made
available by the Secretary for any crop of peanuts with
respect to which poundage quotas have been disapproved
by producers, as provided for in section 358–1(d) of the
Agricultural Adjustment Act of 1938.
‘‘(f) QUALITY IMPROVEMENT.—
‘‘(1) PRICE SUPPORT PEANUTS.—With respect
to peanuts under price support 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
Corporation loan stocks of peanuts sold for do-
mestic edible use must be shown to have been
officially inspected by licensed Department of
Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
‘‘(C) continue to endeavor to operate the
peanut price support program so as to improve
the quality of domestic peanuts and ensure the
coordination of activities under the Peanut Ad-
ministrative Committee established under Mar-
keting Agreement No. 146, regulating the qual-
ity of domestically produced peanuts (under the
Agricultural Marketing Agreement Act of 1937
(7 U.S.C. 601 et seq.)); and
‘‘(D) ensure that any changes made in the
price support program as a result of this sub-
section requiring additional production or han-
dling at the farm level shall be reflected as an
upward adjustment in the Department of Agri-
culture loan schedule.
‘‘(2) EXPORTS
AND
OTHER
PEANUTS.—The
Secretary shall require that all peanuts, including
peanuts imported into the United States, meet all
U.S. quality standards under Marketing Agreement
No. 146 and that importers of such peanuts fully
comply with inspection, handling, storage and proc-
essing requirements implemented under Marketing
Agreement No. 146. The Secretary shall ensure that
peanuts produced for the export market meet qual-
ity, inspection, handling, storage and processing re-
quirements under Marketing Agreement No. 146.
‘‘(g) MARKETING ASSESSMENT.—
‘‘(1) IN GENERAL.—The Secretary shall pro-
vide, by regulation, for a nonrefundable marketing
assessment applicable to each crop of domestically-
grown peanuts and peanuts produced outside the
United States. The assessment shall be made in ac-
cordance with this subsection and shall be on a per
pound basis in an amount equal to 1.2 percent of
the applicable support rate under this subsection.
‘‘(2) FIRST PURCHASERS.—
‘‘(A) IN
GENERAL.—Except as provided
under paragraphs (4) and (5), 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 .65 percent
of the applicable national average support
rate;
‘‘(ii) pay, in addition to the amount
collected under clause (i), a marketing as-
sessment in an amount equal to the quan-
tity of peanuts acquired multiplied by .55
percent of the applicable national average
support rate; and
‘‘(iii) remit the amounts required
under clauses (i) and (ii) to the Commod-
ity Credit Corporation in a manner speci-
fied by the Secretary.
‘‘(B) DEFINITION.—For purposes of this
subsection, the term ‘first purchaser’ means a
person acquiring peanuts from a producer, ex-
cept that in the case of peanuts forfeited by a
producer to the Commodity Credit Corporation,
such term means the person acquiring the pea-
nuts from the Commodity Credit Corporation.
‘‘(3) OTHER PEANUTS.—Each importer of pea-
nuts for domestic edible use produced outside of the
United States shall remit to the Commodity Credit
Corporation a nonrefundable marketing assessment
in an amount equal to the product obtained by mul-
tiplying the number of pounds of peanuts imported
by the importer by 1.2 percent of the national aver-
age support rate for domestic edible peanuts.
‘‘(4) 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 out-
side of the continental United States, the producer
shall be responsible for the full amount of the as-
sessment and shall remit the assessment by such
time as is specified by the Secretary.
‘‘(5) LOAN PEANUTS.—In the case of peanuts
that are pledged as collateral for a price support
loan made under this section, one-half of the assess-
ment 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 computing net gains on peanuts under this sec-
tion, the reduction in loan proceeds shall be treated
as having been paid to the producer.
‘‘(6) PENALTIES.—If any person fails to collect
or remit an assessment required by this subsection
or fails to comply with such 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
price support level for the applicable crop year.
‘‘(7) ENFORCEMENT.—The Secretary may en-
force this subsection in the courts of the United
States.
‘‘(h) CROPS.—Notwithstanding any other provision
of law, this section shall be effective only for the 1996
through 2002 crops of peanuts.’’.
(f) REPORTS AND RECORDS.—Effective only for the
1996 through 2002 crops of peanuts, the first sentence
of section 373(a) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1373(a)) is amended by inserting before
‘‘all brokers and dealers in peanuts’’ the following: ‘‘all
producers engaged in the production of peanuts,’’.
(g) SUSPENSION OF CERTAIN PRICE SUPPORT PRO-
VISIONS.—Section 101 of the Agricultural Act of 1949 (7
U.S.C. 1441) shall not be applicable to the 1996 through
2002 crops of peanuts.
(h) REGULATIONS.—The Secretary of Agriculture
shall issue such regulations as are necessary to carry out
this Act and the amendments made by this Act. In issuing
the regulations, the Secretary—
(1) is encouraged to comply with subchapter II
of chapter 5 of title 5, United States Code;
(2) shall provide public notice through the Fed-
eral Register of any such proposed regulations; and
(3) shall allow adequate time for written public
comment prior to the formulation and issuance of
any final regulations.
(i) FOOD, AGRICULTURE, CONSERVATION, 
AND
TRADE ACT OF 1990.—Title VIII of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (Public Law
101–624; 104 Stat. 3459) is amended—
(1) in section 801 (104 Stat. 3459), by striking
‘‘1995’’ and inserting ‘‘2000’’;
(2) in section 807 (104 Stat. 3478), by striking
‘‘1995’’ and inserting ‘‘2000’’; and
(3) in section 808 (7 U.S.C. 1441 note), by
striking ‘‘1995’’ and inserting ‘‘2000’’.
SEC. 206. SUGAR PROGRAM.
(a) ASSURANCE OF SUGAR SUPPLY.—Section 206 of
the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended
to read as follows:
‘‘SEC. 206. ASSURANCE OF SUGAR SUPPLY.
‘‘(a) IN GENERAL.—The price of each crop of sugar
beets and sugarcane, respectively, shall be supported in
accordance with this section.
‘‘(b) SUGARCANE.—Subject to subsection (d), the
Secretary shall support the price of domestically grown
sugarcane through loans at 18 cents per pound for raw
cane sugar.
‘‘(c) SUGAR BEETS.—Subject to subsection (d), the
Secretary shall support the price of each crop of domesti-
cally grown sugar beets through loans at the level provided
for refined beet sugar produced from the 1995 crop of do-
mestically grown sugar beets.
‘‘(d) ADJUSTMENT IN SUPPORT LEVEL.—
‘‘(1) DOWNWARD
ADJUSTMENT
IN
SUPPORT
LEVEL.—
‘‘(A) IN
GENERAL.—The Secretary shall
decrease the support price of domestically
grown sugarcane and sugar beets from the
price determined for the preceding crop, as es-
tablished under this section, if negotiated re-
ductions in export subsidies and domestic sub-
sidies provided for sugar of the European
Union and other major sugar growing, produc-
ing, and exporting countries (‘major countries’)
in the aggregate exceed the commitments made
as part of the Uruguay Round Agreements.
‘‘(B) EXTENT OF REDUCTION.—The Sec-
retary shall not reduce the support price under
this section below a level that provides an equal
measure of support to that provided by any
other major country or customs union based on
an examination of both domestic and export
subsidies subject to reduction in the Agreement
on 
Agriculture 
referenced 
in 
U.S.C.
3511(d)(2).
‘‘(C) MAJOR COUNTRIES.—For purposes of
this subsection, the term ‘major countries’ in-
cludes all countries allocated a share of the tar-
iff rate quota for imported sugars and syrups
by the United States Trade Representative pur-
suant to additional U.S. note 5 of chapter 17
of the Harmonized Tariff Schedule, all coun-
tries of the European Union, and the People’s
Republic of China.
‘‘(2) INCREASES IN SUPPORT LEVEL.—The Sec-
retary may increase the support level for each crop
of domestically grown sugarcane and sugar beets
from the level determined for the preceding crop
based on such factors as the Secretary determines
appropriate, including changes (during the 2 crop
years immediately preceding the crop year for which
the determination is made) in the cost of sugar
products, the cost of domestic sugar production, the
amount of any applicable assessments, and other
factors or circumstances that may adversely affect
domestic sugar production.
‘‘(e) LOAN TYPE; PROCESSOR ASSURANCES.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Secretary shall carry out this section through
the use of recourse loans.
‘‘(2) MODIFICATION.—During any fiscal year in
which the tariff rate quota for imports of sugar into
the United States is set at or is increased to a level
that exceeds the minimum level for such imports
committed to by the United States under the Agree-
ment on Agriculture contained in the Uruguay
Round of Agreements of the General Agreement on
Tariffs and Trade, the Secretary shall carry out this
section by making available nonrecourse loans. Any
recourse loan previously made available by the Sec-
retary under this section during such fiscal year
shall 
be 
modified 
by 
the 
Secretary 
into 
a
nonrecourse loan.
‘‘(3) PROCESSOR ASSURANCES.—In order to ef-
fectively support the prices of sugar beets and sugar-
cane received by the producer, the Secretary shall
obtain from each processor that receives a loan
under this section such assurances as the Secretary
considers adequate that, if the Secretary is required
under paragraph (2) to make nonrecourse loans
available, or modify recourse loans into nonrecourse
loans, each producer served by the processor will re-
ceive the appropriate minimum payment for sugar
beets and sugarcane delivered by the producer, as
determined by the Secretary.
‘‘(f) ANNOUNCEMENTS.—In order to ensure the effi-
cient administration of the program under this section and
the effective support of the price of sugar, the Secretary
shall announce the type of loans available and the loan
rates for beet sugar and cane sugar for any fiscal year
under this section as far in advance as is practicable.
‘‘(g) LOAN TERM.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) and subsection (h), loans under this sec-
tion during any fiscal year shall be made available
not earlier than the beginning of the fiscal year and
shall mature at the end of 3 months.
‘‘(2) EXTENSION.—The maturity of a loan
under this section may be extended for up to 2 addi-
tional 3-month periods, at the option of the bor-
rower, upon written request to the Commodity Cred-
it Corporation. The maturity of a loan may not be
extended under this paragraph beyond the end of
the fiscal year.
‘‘(h) SUPPLEMENTARY
LOANS.—Subject to sub-
section (d), the Secretary shall make available to eligible
processors price support loans with respect to sugar proc-
essed from sugar beets and sugarcane harvested in the last
3 months of a fiscal year. Such loans shall mature at the
end of the fiscal year. The processor may repledge the
sugar as collateral for a price support loan in the subse-
quent fiscal year, except that the second loan shall—
‘‘(1) be made at the loan rate in effect at the
time the second loan is made; and
‘‘(2) mature in not more than 9 months less the
quantity of time that the first loan was in effect.
‘‘(i) USE OF COMMODITY CREDIT CORPORATION.—
The Secretary shall use the funds, facilities, and authori-
ties of the Commodity Credit Corporation to carry out this
section.
‘‘(j) MARKETING ASSESSMENTS.—The following as-
sessments shall be collected with respect to all sugar mar-
keted within the United States during the 1996 through
2003 fiscal years:
‘‘(1) BEET
SUGAR.—The first seller of beet
sugar produced from sugar beets or sugar beet mo-
lasses, or refined sugar refined outside of the United
States, shall remit to the Commodity Credit Cor-
poration a nonrefundable marketing assessment in
an amount equal to 1.1794 percent of the loan level
established under subsection (b) per pound of sugar
marketed.
‘‘(2) CANE SUGAR.—The first seller of raw cane
sugar produced from sugarcane or sugarcane molas-
ses, shall remit to the Commodity Credit Corpora-
tion a nonrefundable marketing assessment in an
amount equal to 1.1 percent of the loan level estab-
lished under subsection (b) per pound of sugar mar-
keted (including the transfer or delivery of the sugar
to a refinery for further processing or marketing).
‘‘(3) COLLECTION.—
‘‘(A) TIMING.—Marketing assessments re-
quired under this subsection shall be collected
and remitted to the Commodity Credit Corpora-
tion within 30 days of the date that the sugar
is marketed.
‘‘(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
an 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 sugar involved in the
violation; by
‘‘(B) the loan level for the applicable crop
of sugarcane or sugar beets from which the
sugar is produced.
For the purposes of this paragraph, refined sugar
shall be treated as produced from sugar beets.
‘‘(5) ENFORCEMENT.—The Secretary may en-
force this subsection in the courts of the United
States.
‘‘(6) REGULATIONS.—The Secretary shall pro-
mulgate regulations to carry out this subsection.
‘‘(k) INFORMATION REPORTING.—
‘‘(1) DUTY OF PROCESSORS AND REFINERS TO
REPORT.—All sugarcane processors, cane sugar re-
finers, and sugar beet processors shall furnish the
Secretary, 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) DUTY
OF
PRODUCERS
TO
REPORT.—In
order to efficiently and effectively carry out the pro-
gram under this section, the Secretary may require
a producer of sugarcane or sugar beets to report, in
the manner prescribed by the Secretary, the produc-
er’s sugarcane or sugar beet yields and acres planted
to sugarcane or sugar beets, respectively.
‘‘(3) 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.
‘‘(4) MONTHLY REPORTS.—Taking into consid-
eration the information received under paragraph
(1), the Secretary shall publish on a monthly basis
composite data on production, imports, distribution,
and stock levels of sugar.
‘‘(l) SUGAR ESTIMATES.—
‘‘(1) DOMESTIC REQUIREMENT.—Before the be-
ginning of each fiscal year, the Secretary shall esti-
mate the domestic sugar requirement of the United
States equal to Total Estimated Disappearance
minus the quantity of sugar that will be available
from carry-in stocks.
‘‘(2) TOTAL
DISAPPEARANCE.—For the pur-
poses of this subsection, the term ‘total estimated
disappearance’ means the quantity of sugar, as esti-
mated by the Secretary, that will be consumed in the
United States during the fiscal year (other than
sugar imported for the production of polyhydric alco-
hol or to be refined and reexported in refined form
or in sugar containing products) plus the quantity of
sugar that would provide for adequate carryover
stocks.
‘‘(3) QUARTERLY
REESTIMATES.—The Sec-
retary shall make quarterly reestimates of sugar
consumption, stocks, production, and imports for a
fiscal year no later than the beginning of each of the
second through fourth quarters of the fiscal year.
‘‘(m) DEFINITION
OF MARKET.—For purposes of
this section, the term ‘market’ means to sell or otherwise
dispose of in commerce in the United States (including,
with respect to any integrated processor and refiner, the
movement of raw cane sugar into the refining process) and
deliver to a buyer.
‘‘(n) CROPS.—This section shall be effective only for
the 1996 through 2002 crops of sugar beets and sugar-
cane.’’.
(b) CONFORMING AMENDMENT.—Part VII ob sub-
title B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359aa, et seq.) is repealed.
SEC. 207. EFFECT OF AMENDMENTS ON 1991 THROUGH 1995
CROPS.
The amendments made by this tile shall not affect
the authority of the Secretary of Agriculture to carry out
a price support, production adjustment, or payment pro-
gram for any of the 1991 through 1995 crops of an agri-
cultural commodity established under a provision of law
as in effect immediately before the enactment of this Act.
TITLE III—GENERAL
COMMODITY PROVISIONS
SEC. 301. EXTENSION OF SUPPLEMENTAL SET-ASIDE AND
ACREAGE LIMITATION AUTHORITY.
Section 113 of the Agricultural Act of 1949 (7 U.S.C.
1445h) is amended by striking ‘‘1995’’ and inserting
‘‘2002’’.
SEC. 302. EXTENSION OF DEFICIENCY AND LAND DIVER-
SION PAYMENTS.
Section 114 of the Agricultural Act of 1949 (7 U.S.C.
1445j) is amended—
(1) in subsections (a)(1) and (c), by striking
‘‘1997’’ each place it appears and inserting ‘‘2002’’;
and
(2) in subsection (b), by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 303. EXTENSION OF AUTHORITY TO ADJUST ESTAB-
LISHED PRICES.
Section 402(b) of the Agricultural Act of 1949 (7
U.S.C. 1422(b)) is amended by striking ‘‘1995’’ and in-
serting ‘‘2002’’.
SEC. 304. EXTENSION OF LIMITATION ON ADJUSTMENTS OF
SUPPORT PRICES.
Section 403(c) of the Agricultural Act of 1949 (7
U.S.C. 1423(c)) is amended by striking ‘‘1995’’ and in-
serting ‘‘2002’’.
SEC. 305. EXTENSION OF OPTION TO EXTEND PROGRAMS.
Section 406(b) of the Agricultural Act of 1949 (7
U.S.C. 1426(b)) is amended—
(1) by striking ‘‘1995’’ each place it appears
and inserting ‘‘2002’’;
(2) by striking ‘‘1996’’ each place it appears
and inserting ‘‘2003’’; and
(3) in paragraph (4), by striking ‘‘November
28, 1990’’ and inserting ‘‘January 1, 1995’’.
SEC. 306. REFERENCES TO TERMS REGARDING PRICE SUP-
PORT.
Section 408(k)(3) of the Agricultural Act of 1949 (7
U.S.C. 1428(k)(3)) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 307. EXTENSION OF ACREAGE BASE AND YIELD SYS-
TEM.
Title V of the Agricultural Act of 1949 (7 U.S.C.
1461 et seq.) is amended—
(1) in subsections (c)(3) and (h)(2)(A) of sec-
tion 503 (7 U.S.C. 1463), by striking ‘‘1997’’ each
place it appears and inserting ‘‘2002’’;
(2) in paragraphs (1) and (2) of section 505(b)
(7 U.S.C. 1465(b)), by striking ‘‘1997’’ each place
it appears and inserting ‘‘2002’’; and
(3) in section 509 (7 U.S.C. 1469), by striking
‘‘1997’’ and inserting ‘‘2002’’.
SEC. 308. NORMALLY PLANTED ACREAGE.
Section 1001 of the Food and Agriculture Act of
1977 (7 U.S.C. 1309) is amended in subsections (a),
(b)(1), and (c) by striking ‘‘1995’’ each place it appears
and inserting ‘‘2002’’.
SEC. 309. EXTENSION OF NATIONAL AGRICULTURAL COST
OF 
PRODUCTION 
STANDARDS 
REVIEW
BOARD.
Section 1014 of the Agriculture and Food Act of
1981 (7 U.S.C. 4110) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 310. EXTENSION OF PAYMENT LIMITATIONS.
Title X of the Food Security Act of 1985 (Public Law
99–198; 99 Stat. 1444) is amended—
(1) in paragraphs (1)(A), (1)(B), and (2)(A) of
section 1001 (7 U.S.C. 1308), by striking ‘‘1997’’
each place it appears and inserting ‘‘2002’’; and
(2) in section 1001C(a) (7 U.S.C. 1308–3(a)),
by striking ‘‘1997’’ both places it appears and in-
serting ‘‘2002’’.
SEC. 311. EXTENSION OF REQUIREMENTS FOR NOTICE AND
PUBLIC PARTICIPATION IN SECRETARY DE-
TERMINATIONS.
Section 1017(b) of the Food Security Act of 1985
(7 U.S.C. 1385 note) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 312. DETERMINATION OF NORMAL SUPPLY.
Section 1019 of the Food Security Act of 1985 (7
U.S.C. 1310a) is amended by striking ‘‘1995’’ and insert-
ing ‘‘2002’’.
SEC. 313. EXTENSION OF OPTIONS PILOT PROGRAM.
The Options Pilot Program Act of 1990 (subtitle E
of title XI of Public Law 101–624; 104 Stat. 3518; 7
U.S.C. 1421 note) is amended—
(1) in subsections (a) and (b) of section 1153,
by striking ‘‘1995’’ each place it appears and insert-
ing ‘‘2002’’; and
(2) in section 1154(b)(1)(A), by striking
‘‘1995’’ both places it appears and inserting ‘‘2002’’.
TITLE 
IV—REPEAL 
OF 
EMER-
GENCY LIVESTOCK FEED AS-
SISTANCE PROGRAM
SEC. 401. REPEAL OF EMERGENCY LIVESTOCK FEED AS-
SISTANCE PROGRAM.
(a) REPEAL.—The Emergency Livestock Feed As-
sistance Act of 1988 (title VI of the Agricultural Act of
1949; 7 U.S.C. 1471–1471j) is repealed.
(b) EFFECT OF REPEAL ON APPROVED APPLICA-
TIONS FOR ASSISTANCE.—The repeal of the Emergency
Livestock Feed Assistance Act of 1988 by subsection (a)
shall not affect the provision of payments or benefits
under such Act pursuant to a completed application ap-
proved by the Secretary of Agriculture before the date of
the enactment of this Act. The Emergency Livestock Feed
Assistance Act of 1988, as in effect on the day before the
date of the enactment of this Act, shall continue to apply
to the provision of payments or benefits pursuant to such
an application.
TITLE V—FEDERAL CROP
INSURANCE
SEC. 501. CONVERSION OF CATASTROPHIC RISK PROTEC-
TION PROGRAM TO A VOLUNTARY PROGRAM.
Section 508(b)(7) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)(7)) is amended—
(1) by redesignating subparagraph (B) as sub-
paragraph (C); and
(2) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), a producer may decline to ob-
tain catastrophic risk protection, yet remain eli-
gible for any price support or production ad-
justment program, the conservation reserve pro-
gram, or any benefit described in section 371 of
the Consolidated Farm and Rural Development
Act, if the producer agrees in writing to waive
any eligibility for emergency crop loss assist-
ance in connection with losses to any crop for
which the producer declines to obtain cata-
strophic risk protection.’’.
TITLE VI—MISCELLANEOUS
PROGRAMS
SEC. 601. REDUCTION IN FUNDING LEVELS FOR EXPORT
ENHANCEMENT PROGRAM.
Section 301(e) of the Trade Act of 1978 (7 U.S.C.
5651(e)) is amended by striking paragraph (1) and insert-
ing the following new paragraph:
‘‘(1) IN GENERAL.—To carry out the program
established under this section, the Commodity Credit
Corporation shall make available—
‘‘(A) for each of the fiscal years 1991
through 1995, not less than $500,000,000 of
the funds or commodities of the Commodity
Credit Corporation; and
‘‘(B) for each of the fiscal years 1996
through 2002, not more than $400,000,000 of
the funds or commodities of the Commodity
Credit Corporation.’’.
SEC. 602. SPENDING LIMITATIONS ON CONSERVATION RE-
SERVE PROGRAM.
Title XII of the Food Security Act of 1985 is amend-
ed by inserting after section 1236 (16 U.S.C. 3836) the
following new section:
‘‘SEC. 1236A. SPENDING LIMITATIONS ON CONSERVATION
RESERVE PROGRAM.
‘‘The Secretary shall ensure that expenditures under
this subchapter for the conservation reserve program do
not exceed the following amounts:
‘‘(1) $1,852,000,000 during fiscal year 1997.
‘‘(2) $1,385,000,000 during fiscal year 1998.
‘‘(3) $1,106,000,000 during fiscal year 1999.
‘‘(4) $918,000,000 during fiscal year 2000.
‘‘(5) $779,000,000 during fiscal year 2001.
‘‘(6) $753,000,000 during fiscal year 2002.’’.
TITLE 
VII—COMMISSION 
ON
21ST CENTURY PRODUCTION
AGRICULTURE
SEC. 701. ESTABLISHMENT.
There is hereby established a commission to be known
as the ‘‘Commission on 21st Century Production Agri-
culture’’ (hereinafter in this title referred to as the ‘‘Com-
mission’’).
SEC. 702. COMPOSITION.
(a) APPOINTMENT.—The Commission shall be com-
posed of 11 members, appointed as follows:
(1) Three members shall be appointed by the
President.
(2) Four members shall be appointed by the
Chairman of the Committee on Agriculture of the
House of Representatives in consultation with the
ranking minority member of the Committee.
(3) Four members shall be appointed by the
Chairman of the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate in consultation with
the ranking minority member of the Committee.
(b) QUALIFICATIONS.—The members of the Commis-
sion shall be appointed from among persons having knowl-
edge and experience in agricultural production, marketing,
finance, or trade.
(c) TERM OF MEMBERS; VACANCIES.—Members of
the Commission shall be appointed for the life of the Com-
mission. A vacancy on the Commission shall not affect its
powers, but shall be filled in the same manner as the origi-
nal appointment was made.
(d) TIME FOR APPOINTMENT; FIRST MEETING.—
The members of the Commission shall be appointed not
later than October 1, 1997. The Commission shall convene
its first meeting to carry out its duties under this title
30 days after six members of the Commission have been
appointed.
(e) CHAIRMAN.—The chairman of the Commission
shall be designated jointly by the Chairman of the Com-
mittee on Agriculture of the House of Representatives and
the Chairman of the Committee on Agriculture, Nutrition,
and Forestry of the Senate from among the members of
the Commission.
SEC. 703. COMPREHENSIVE REVIEW OF PAST AND FUTURE
OF PRODUCTION AGRICULTURE.
(a) INITIAL REVIEW.—The Commission shall conduct
a comprehensive review of changes in the condition of pro-
duction agriculture in the United States since the date of
the enactment of this Act and the extent to which such
(6) An assessment of the effect of any Govern-
ment interference in agricultural export markets,
such as the imposition of trade embargoes, and the
degree of implementation and success of inter-
national trade agreements.
(b) SUBSEQUENT REVIEW.—The Commission shall
conduct a comprehensive review of the future of produc-
tion agriculture in the United States and the appropriate
role of the Federal Government in support of production
agriculture. The review shall include the following:
(1) An assessment of changes in the condition
of production agriculture in the United States since
the initial review conducted under subsection (a).
(2) Identification of the appropriate future rela-
tionship of the Federal Government with production
agriculture after 2002.
(3) An assessment of the manpower and infra-
structure requirements of the Department of Agri-
culture necessary to support the future relationship
of the Federal Government with production agri-
culture.
(c) RECOMMENDATIONS.—In carrying out the subse-
quent review under subsection (b), the Commission shall
develop specific recommendations for legislation to achieve
the appropriate future relationship of the Federal Govern-
ment with production agriculture identified under sub-
section (a)(2).
SEC. 704. REPORTS.
(a) REPORT ON INITIAL REVIEW.—Not later than
January 1, 1999, the Commission shall submit to the
President, the Committee on Agriculture of the House of
Representatives, and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate a report containing the
results of the initial review conducted under section
703(a).
(b) REPORT ON SUBSEQUENT REVIEW.—Not later
than January 1, 2001, the Commission shall submit to
the President and the congressional committees specified
in subsection (a) a report containing the results of the
subsequent review conducted under section 703(b).
SEC. 705. POWERS.
(a) HEARINGS.—The Commission may, for the pur-
pose of carrying out this title, conduct such hearings, sit
and act at such times, take such testimony, and receive
such evidence, as the Commission considers appropriate.
(b) ASSISTANCE
FROM
OTHER
AGENCIES.—The
Commission may secure directly from any department or
agency of the Federal Government such information, rel-
evant to its duties under this title, as may be necessary
to carry out such duties. Upon request of the chairman
of the Commission, the head of the department or agency
shall, to the extent permitted by law, furnish such infor-
mation to the Commission.
(c) MAIL.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as the departments and agencies of the Federal
Government.
(d) ASSISTANCE FROM SECRETARY.—The Secretary
of Agriculture shall provide to the Commission appropriate
office space and such reasonable administrative and sup-
port services as the Commission may request.
SEC. 706. COMMISSION PROCEDURES.
(a) MEETINGS.—The Commission shall meet on a
regular basis (as determined by the chairman) and at the
call of the chairman or a majority of its members.
(b) QUORUM.—A majority of the members of the
Commission shall constitute a quorum for the transaction
of business.
SEC. 707. PERSONNEL MATTERS.
(a) COMPENSATION.—Each member of the Commis-
sion shall serve without compensation, but shall be allowed
travel expenses including per diem in lieu of subsistence,
as authorized by section 5703 of title 5, United States
Code, when engaged in the performance of Commission
duties.
(b) STAFF.—The Commission shall appoint a staff
director, who shall be paid at a rate not to exceed the
maximum rate of basic pay under section 5376 of title
5, United States Code, and such professional and clerical
personnel as may be reasonable and necessary to enable
the Commission to carry out its duties under this title
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service,
and without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title, or any other
provision of law, relating to the number, classification, and
General Schedule rates. No employee appointed under this
subsection (other than the staff director) may be com-
pensated at a rate to exceed the maximum rate applicable
to level 15 of the General Schedule.
(c) DETAILED PERSONNEL.—Upon request of the
chairman of the Commission, the head of any department
or agency of the Federal Government is authorized to de-
tail, without reimbursement, any personnel of such depart-
ment or agency to the Commission to assist the Commis-
sion in carrying out its duties under this section. The de-
tail of any such personnel may not result in the interrup-
tion or loss of civil service status or privilege of such per-
sonnel.
SEC. 708. TERMINATION OF COMMISSION.
The Commission shall terminate upon submission of
the final report required by section 704.
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