I
106TH CONGRESS
1ST SESSION
H. R. 2843
To provide emergency assistance to farmers and ranchers in the United
States.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 13, 1999
Mr. HAYES (for himself and Mr. FLETCHER) introduced the following bill;
which was referred to the Committee on Agriculture, and in addition to
the Committees on the Budget, and International Relations, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To provide emergency assistance to farmers and ranchers
in the United States.
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
‘‘Emergency Assistance for Farmers and Ranchers Act of
1999’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Emergency requirement.
TITLE I—CROP LOSS ASSISTANCE
Sec. 101. Crop loss assistance.
TITLE II—MARKET LOSS ASSISTANCE
Sec. 201. Assistance for producers of contract commodities.
Sec. 202. Assistance for producers of soybeans and other oilseeds.
Sec. 203. Assistance for producers of specialty crops.
Sec. 204. Assistance for producers of peanuts.
Sec. 205. Assistance for producers of tobacco.
TITLE III—TEMPORARY REMOVAL OF LIMIT ON LOAN
DEFICIENCY PAYMENTS AND MARKETING LOAN GAINS
Sec. 301. Removal of limit on authorized amount of marketing loan gains and
loan deficiency payments.
TITLE IV—UPLAND COTTON PRICE COMPETITIVENESS
Sec. 401. Upland cotton price competitiveness.
TITLE V—ASSISTANCE FOR LIVESTOCK AND DAIRY PRODUCERS
Sec. 501. Assistance for livestock and dairy producers.
TITLE VI—CROP INSURANCE
Sec. 601. Premium schedule for additional coverage.
Sec. 602. Premium schedule for other plans of insurance.
Sec. 603. Adjustment in actual production history to establish insurable yields.
TITLE VII—FREEDOM TO MARKET
Sec. 701. GAO report.
Sec. 702. Prohibition on unilateral agricultural or medical sanctions.
Sec. 703. Annual reports by Secretary of Agriculture.
Sec. 704. Actions by Department of Agriculture.
Sec. 705. Definition.
TITLE VIII—EMERGENCY CONSERVATION PROGRAM
Sec. 801. Funding for emergency conservation program.
SEC. 2. EMERGENCY REQUIREMENT.
Notwithstanding the last sentence of section 252(e)
of the Balanced Budget and Emergency Deficit Control
Act of 1985, amounts made available by this Act are des-
ignated by the Congress as an emergency requirement
(2) quality (including, but not limited to,
aflatoxin) losses; or
(3) severe economic losses due to damaging
weather or related condition.
(d) CROPS COVERED.—Assistance under this section
shall be applicable to losses for all crops (including losses
of trees from which a crop is harvested), as determined
by the Secretary, due to disasters.
(e) CROP INSURANCE.—
(1) ADMINISTRATION.—In carrying out this
section, the Secretary shall not discriminate against
or penalize producers on a farm who have purchased
crop insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.).
(2) ENCOURAGING
FUTURE
CROP
INSURANCE
PARTICIPATION.—Subject to section 2, the Sec-
retary, acting through the Federal Crop Insurance
Corporation, may use the funds made available
under subsection (b), and only those funds, to pro-
vide premium refunds or other assistance to pur-
chasers of crop insurance for their 1999 insured
crops, or their preceding (including 1999) insured
crops.
(3) PRODUCERS WHO HAVE NOT PURCHASED
CROP INSURANCE FOR 1999 CROP.—As a condition of
receiving assistance under this section, producers on
a farm who have not purchased crop insurance for
the 1999 crop under that Act shall agree by contract
to purchase crop insurance for the 2000 and 2001
crops produced by the producers.
(4) LIQUIDATED DAMAGES.—
(A) IN
GENERAL.—The contract under
paragraph (3) shall provide for liquidated dam-
ages to be paid by the producers due to the fail-
ure of the producers to purchase crop insurance
as provided in paragraph (3).
(B) NOTICE OF DAMAGES.—The amount
of the liquidated damages shall be established
by the Secretary and specified in the contract
agreed to by the producers.
(5) FUNDING FOR CROP INSURANCE PURCHASE
REQUIREMENT.—Subject to section 2, such sums as
may be necessary, to remain available until ex-
pended, shall be available to the Federal Crop Insur-
ance Corporation to cover costs incurred by the Cor-
poration as a result of the crop insurance purchase
requirement of paragraph (3). Funds made available
under subsection (b) may not be used to cover such
costs.
TITLE II—MARKET LOSS
ASSISTANCE
SEC. 201. ASSISTANCE FOR PRODUCERS OF CONTRACT
COMMODITIES.
(a) IN GENERAL.—The Secretary of Agriculture shall
use not more than $5,544,453,000 for assistance to own-
ers and producers on a farm who are eligible for final pay-
ments for fiscal year 1999 under a production flexibility
contract for the farm under the Agricultural Market Tran-
sition Act (7 U.S.C. 7201 et seq.) to partially compensate
the owners and producers for the loss of markets for the
1999 crop of a commodity.
(b) AMOUNT.—The amount of assistance made avail-
able to owners and producers on a farm under this section
shall be proportional to the amount of the contract pay-
ment received by the owners and producers for fiscal year
1999 under a production flexibility contract for the farm
under the Agricultural Market Transition Act.
(c) TIME
FOR PAYMENT.—The assistance made
available under this section for an eligible owner or pro-
ducer shall be made as soon as practicable after the date
of enactment of this Act.
(d) USE OF COMMODITY CREDIT CORPORATION.—
Subject to subsection (e), the Secretary shall use the
funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
SEC. 202. ASSISTANCE FOR PRODUCERS OF SOYBEANS AND
OTHER OILSEEDS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary of Agriculture shall use not less
than $475,000,000 of funds of the Commodity Credit Cor-
poration to make payments to producers of the 1999 crop
of oilseeds that are eligible to obtain a marketing assist-
ance loan under section 131 of the Agricultural Market
Transition Act (7 U.S.C. 7231).
(b) COMPUTATION.—A payment to producers on a
farm 
under 
this 
section 
shall 
be 
computed 
by
multiplying—
(1) a payment rate determined by the Sec-
retary; by
(2) the quantity of oilseeds that the producers
on the farm are eligible to place under loan under
section 131 of that Act.
(c) LIMITATION.—Payments made under this section
shall be considered to be contract payments for the pur-
poses of section 1001(1) of the Food Security Act of 1985
(7 U.S.C. 1308(1)).
SEC. 203. ASSISTANCE FOR PRODUCERS OF SPECIALTY
CROPS.
The Secretary of Agriculture shall use not more than
$50,000,000 of funds of the Commodity Credit Corpora-
tion to provide assistance to producers of fruits and vege-
tables in a manner determined by the Secretary.
SEC. 204. ASSISTANCE FOR PRODUCERS OF PEANUTS.
(a) ASSISTANCE AVAILABLE.—The Secretary of Agri-
culture shall use such amounts as are necessary to provide
payments to producers of quota peanuts or additional pea-
nuts to partially compensate the producers for continuing
low commodity prices, and increasing costs of production,
for the 1999 crop year.
(b) AMOUNT.—The amount of a payment made to
producers on a farm of quota peanuts or additional pea-
nuts under subsection (a) shall be equal to the product
obtained by multiplying—
(1) the quantity of quota peanuts or additional
peanuts produced or considered produced by the pro-
ducers under section 155 of the Agricultural Market
Transition Act (7 U.S.C. 7271); by
(2) an amount equal to 5 percent of the loan
rate established for quota peanuts or additional pea-
nuts, respectively, under section 155 of that Act.
SEC. 205. ASSISTANCE FOR PRODUCERS OF TOBACCO.
The Secretary of Agriculture shall use $328,000,000
of funds of the Commodity Credit Corporation to make
distributions to tobacco growers in accordance with the
formulas established under the National Tobacco Grower
Settlement Trust.
TITLE 
III—TEMPORARY 
RE-
MOVAL OF LIMIT ON LOAN
DEFICIENCY PAYMENTS AND
MARKETING LOAN GAINS
SEC. 301. REMOVAL OF LIMIT ON AUTHORIZED AMOUNT OF
MARKETING LOAN GAINS AND LOAN DEFI-
CIENCY PAYMENTS.
Section 1001(2) of the Food Security Act of 1985
(7 U.S.C. 1308(2)) is amended by adding at the end the
following new sentence: ‘‘However, this limitation shall not
apply during the 1999 and 2000 crop years.’’.
TITLE IV—UPLAND COTTON
PRICE COMPETITIVENESS
SEC. 401. UPLAND COTTON PRICE COMPETITIVENESS.
(a) IN GENERAL.—Section 136(a) of the Agricultural
Market Transition Act (7 U.S.C. 7236(a)) is amended—
(1) in paragraph (1), by striking ‘‘or cash pay-
ments’’ and inserting ‘‘or cash payments, at the op-
tion of the recipient,’’;
ered C.I.F. Northern Europe, for the value of
any certificates issued under subsection (a).
‘‘(D) SEASON-ENDING
UNITED
STATES
STOCKS-TO-USE
RATIO.—For the purposes of
making estimates under subparagraph (C), the
Secretary shall, on a monthly basis, estimate
and report the season-ending United States up-
land cotton stocks-to-use ratio, excluding pro-
jected raw cotton imports but including the
quantity of raw cotton that has been imported
into the United States during the marketing
year.’’; and
(2) by adding at the end the following:
‘‘(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing
year under the special import quota established
under this subsection may not exceed the equivalent
of 5 week’s consumption of upland cotton by domes-
tic mills at the seasonally adjusted average rate of
the 3 months immediately preceding the first special
import quota established in any marketing year.’’.
(c) REMOVAL OF SUSPENSION OF MARKETING CER-
TIFICATE AUTHORITY.—Section 171(b)(1) of the Agricul-
tural Market Transition Act (7 U.S.C. 7301(b)(1)) is
amended—
(1) by striking subparagraph (G); and
(2) 
by 
redesignating 
subparagraphs 
(H)
through (L) as subparagraphs (G) through (K), re-
spectively.
(d) REDEMPTION OF MARKETING CERTIFICATES.—
Section 115 of the Agricultural Act of 1949 (7 U.S.C.
1445k) is amended—
(1) by redesignating subsections (a), (b), and
(c) as subsections (b), (c), and (d), respectively;
(2) by inserting immediately before subsection
(b) (as so redesignated) the following new sub-
section:
‘‘(a) In making payments or in-kind payments under
any of the annual programs for wheat, feed grains, oil-
seeds, upland cotton, or rice, the Secretary shall make
such payments available, at the option of the producer,
in marketing certificates which the Commodity Credit
Corporation shall redeem for a commodity in accordance
with regulations prescribed by the Secretary.’’;
(3) in subsection (b) (as so redesignated)—
(A) by striking ‘‘in-kind payments under
any of the annual programs for wheat, feed
grains, upland cotton, or rice (other than nego-
tiable marketing certificates for upland cotton
or rice)’’ and inserting ‘‘the payments and in-
kind payments as provided in subsection (a)’’;
(B) by striking ‘‘and’’ at the end of para-
graph (1);
(C) by striking ‘‘Corporation.’’ at the end
of paragraph (2) and inserting in lieu thereof
‘‘Corporation; and’’; and
(D) by adding at the end the following new
paragraph:
‘‘(3) redeem marketing certificates for cash
under such terms and conditions as are established
by the Secretary.’’;
(4) in subsection (c) (as so redesignated), by
striking ‘‘negotiable certificates’’ and inserting
‘‘marketing certificates’’;
(5) in subsection (d) (as so redesignated)—
(A) by striking ‘‘commodity certificate’’
and inserting ‘‘marketing certificate’’; and
(B) by striking ‘‘marketing promotion pro-
gram’’ and inserting ‘‘marketing assistance pro-
gram’’; and
(6) by adding at the end the following new sub-
sections:
‘‘(e) The Secretary shall establish procedures for re-
deeming marketing certificates for cash or marketing or
exchange of the certificates for agricultural commodities
owned by the Commodity Credit Corporation or pledged
to the Commodity Credit Corporation as collateral for a
marketing assistance loan in such manner, and at such
price levels, as the Secretary determines will best effec-
tuate the purposes of marketing certificates including en-
hancing the competitiveness and marketability of the
United States commodities.
‘‘(f) Marketing certificates issued in accordance with
this section may be transferred to other persons in accord-
ance with regulations issued by the Secretary.’’.
TITLE V—ASSISTANCE FOR LIVE-
STOCK 
AND 
DAIRY 
PRO-
DUCERS
SEC. 501. ASSISTANCE FOR LIVESTOCK AND DAIRY PRO-
DUCERS.
The Secretary of Agriculture shall use $350,000,000
of funds of the Commodity Credit Corporation to provide
assistance to livestock and dairy producers for losses of
pasture and hay crops due to disasters (as determined by
the Secretary). The funds may not be used to compensate
the owners and producers for the loss of markets for live-
stock products.
TITLE VI—CROP INSURANCE
SEC. 601. PREMIUM SCHEDULE FOR ADDITIONAL COV-
ERAGE.
(a) PREMIUM AMOUNTS.—Section 508(d)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(d)(2)) is
amended by striking subparagraphs (B) and (C) and in-
serting the following new subparagraph:
‘‘(B) In the case of additional coverage
equal to or greater than 50 percent of the re-
corded or appraised average yield indemnified
at not greater than 100 percent of the expected
market price, or an equivalent coverage, the
amount of the premium shall—
‘‘(i) be sufficient to cover anticipated
losses and a reasonable reserve; and
‘‘(ii) include an amount for operating
and administrative expenses, as determined
by the Corporation, on an industry-wide
basis as a percentage of the amount of the
premium used to define loss ratio.’’.
(b) PAYMENT SCHEDULE.—Section 508(e)(2) of the
Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is
amended by striking subparagraphs (B) and (C) and in-
serting the following new subparagraphs:
‘‘(B) In the case of additional coverage
equal to or greater than 50 percent, but less
than 55 percent, of the recorded or appraised
average yield indemnified at not greater than
100 percent of the expected market price, or an
equivalent coverage, the amount shall be equal
to the sum of—
‘‘(i) 67 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and ad-
ministrative expenses.
‘‘(C) In the case of additional coverage
equal to or greater than 55 percent, but less
than 65 percent, of the recorded or appraised
average yield indemnified at not greater than
100 percent of the expected market price, or an
equivalent coverage, the amount shall be equal
to the sum of—
‘‘(i) 64 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and ad-
ministrative expenses.
‘‘(D) In the case of additional coverage
equal to or greater than 65 percent, but less
than 75 percent, of the recorded or appraised
average yield indemnified at not greater than
100 percent of the expected market price, or an
equivalent coverage, the amount shall be equal
to the sum of—
‘‘(i) 59 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and ad-
ministrative expenses.
‘‘(E) In the case of additional coverage
equal to or greater than 75 percent, but less
than 80 percent, of the recorded or appraised
average yield indemnified at not greater than
100 percent of the expected market price, or an
equivalent coverage, the amount shall be equal
to the sum of—
‘‘(i) 54 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and ad-
ministrative expenses.
‘‘(F) In the case of additional coverage
equal to or greater than 80 percent, but less
than 85 percent, of the recorded or appraised
average yield indemnified at not greater than
100 percent of the expected market price, or an
equivalent coverage, the amount shall be equal
to the sum of—
‘‘(i) 40.6 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and ad-
ministrative expenses.
‘‘(G) Subject to subsection (c)(4), in the
case of additional coverage equal to or greater
than 85 percent of the recorded or appraised
average yield indemnified at not greater than
100 percent of the expected market price, or an
equivalent coverage, the amount shall be equal
to the sum of—
‘‘(i) 30.6 percent of the amount of the
premium 
established 
under 
subsection
(d)(2)(B)(i) for the coverage level selected;
and
‘‘(ii) the amount determined under
subsection (d)(2)(B)(ii) for the coverage
level selected to cover operating and ad-
ministrative expenses.’’.
(c) 
PREMIUM
PAYMENT
DISCLOSURE.—Section
508(e) of the Federal Crop Insurance Act (7 U.S.C.
1508(e)) is amended by adding at the end the following
new paragraph:
‘‘(5) PREMIUM PAYMENT DISCLOSURE.—Each
policy or plan of insurance under this title shall
prominently indicate the dollar amount of the por-
tion of the premium paid by the Corporation under
this subsection or subsection (h)(2).’’.
SEC. 602. PREMIUM SCHEDULE FOR OTHER PLANS OF IN-
SURANCE.
Section 508(h)(2) of the Federal Crop Insurance Act
(7 U.S.C. 1508(h)(2)) is amended—
(1) by striking ‘‘A policy’’ and inserting the fol-
lowing:
‘‘(A) PREPARATION.—A policy’’;
(2) by striking the second sentence; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) PREMIUM SCHEDULE.—In the case of
a policy offered under this subsection (except
paragraph (10)) or subsection (m)(4), the Cor-
poration shall pay a portion of the premium of
the policy that shall be equal to—
‘‘(i) the percentage, specified in sub-
section (e) for a similar level of coverage,
of the total amount of the premium used
to define loss ratio; and
‘‘(ii) the dollar amount of the admin-
istrative and operating expenses that would
be paid by the Corporation under sub-
section (e) for a similar level of coverage.’’.
SEC. 603. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY
TO ESTABLISH INSURABLE YIELDS.
Section 508(g) of the Federal Crop Insurance Act (7
U.S.C. 1508(g)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(4) ADJUSTMENT
IN
ACTUAL
PRODUCTION
HISTORY TO ESTABLISH INSURABLE YIELDS.—
‘‘(A) APPLICATION.—This paragraph shall
apply whenever the Corporation uses the actual
production history of the producer to establish
insurable yields for an agricultural commodity
for the 2000 and subsequent crop years.
‘‘(B) ELECTION TO USE PERCENTAGE OF
TRANSITIONAL YIELD.—If, for one or more of
the crop years used to establish the producer’s
actual production history of an agricultural
commodity, the producer’s recorded or ap-
praised yield of the commodity was less than 60
percent of the applicable transitional yield, as
determined by the Corporation, the Corporation
shall, at the election of the producer—
‘‘(i) exclude any of such recorded or
appraised yield; and
‘‘(ii) replace each excluded yield with
a yield equal to 60 percent of the applica-
ble transitional yield.’’.
TITLE VII—FREEDOM TO
MARKET
SEC. 701. GAO REPORT.
Not later than 1 year after the date of the enactment
of this Act, the Comptroller General shall—
(1) conduct—
(A) a detailed examination of all economic
sanctions affecting United States businesses,
differentiating between unilateral and multilat-
eral economic sanctions;
(B) an assessment of comparable measures
undertaken by other countries in each instance;
(C) an evaluation of the effectiveness of
both unilateral and multilateral economic sanc-
tions in meeting stated policy goals;
(D) an assessment on humanitarian condi-
tions within sanctioned countries, evaluating
how sanctions have affected particular states;
(E) an assessment of the relationship with
United States allies as a consequence of unilat-
eral economic sanctions;
(F) an examination of the economic impact
of sanctions on United States producers and ex-
porters; and