112
(b) APPROVAL OR TERMINATION OF PARTICIPATION IN
STANDBY POOL.—Order provisions under this section shall
not become effective in any marketing order unless such pro-
visions are approved by producers in the manner provided
for the approval of marketing orders under section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937, but separately from other order provisions.
Standby pool provisions approved under this section in an
order may be disapproved separately by producers or termi-
nated separately by the Secretary under section 8c(16)(B)
of such Act. Such disapproval or termination shall not be
considered to be a disapproval or termination of the other
terms of that order.
(c) EFFECTIVE DATE.—This section shall take effect
on the first day of the first month beginning not less than
30 days after the date of the enactment of this Act.
Subtitle B—Reform of Federal Milk
Marketing Orders
SEC. 221. ISSUANCE OR AMENDMENT OF FEDERAL MILK
MARKETING ORDERS TO IMPLEMENT CER-
TAIN REFORMS.
(a) ISSUANCE OF AMENDED ORDERS.—Subject to the
time limits specified in section 222, the Secretary of Agri-
culture shall issue new or amended marketing orders with
113
respect to milk and its products under section 8c of the Ag-
ricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act
of 1937, to effectuate the requirements of subsection (b). The
orders shall take effect on the date the orders are issued and
shall supersede all other marketing orders and any other
statutes, rules, and regulations that are applicable to the
pricing and marketing of milk and its products in effect
immediately before that date, whether under the authority
of section 8c of such Act or a State or local law.
(b) REFORM REQUIREMENTS.—The Secretary shall re-
form the Federal milk marketing order system under sub-
section (a) to accomplish the following purposes:
(1) Consolidation of Federal milk marketing or-
ders into not less than 8 nor more than 13 orders,
which shall also include those areas of the 48 contig-
uous States not covered by a Federal milk marketing
order on the date of the enactment of this Act. One
of the new Federal milk marketing orders shall only
cover the State of California. A new or amended order
shall have the right to blend order receipts to address
unique issues to that order such as a preexisting State
quota system.
114
(2) Implementation of uniform multiple compo-
nent pricing for milk used in manufactured dairy
products.
(3) Establishment of class prices for milk used to
produce cheese, nonfat dry milk, and butter based on
national product prices, less a manufacturing allow-
ance. The resulting prices shall not vary regionally,
except to reflect variances in transportation and rea-
sonable operating costs, if any, of efficient processing
plants in different geographical areas.
(c) STATUS OF PRODUCER HANDLERS.—In amending
Federal milk marketing orders under this section, the Sec-
retary shall ensure that the legal status of producer handlers
of milk under the Agricultural Adjustment Act (7 U.S.C.
601 et seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, shall be the same after
the amendments made by this section take effect as it was
before the effective date of the amendments.
SEC. 222. REFORM PROCESS.
(a) PROCESS.—In preparation for the issuance of the
new or amended Federal milk marketing orders required
under section 221, the Secretary of Agriculture shall comply
with the following expedited procedural requirements:
(1) Not later than 165 days after the date of the
enactment of this Act, the Secretary shall issue pro-
115
posed amendments or new milk marketing orders to
effectuate the reform requirements specified in such
section.
(2) The Secretary shall provide for a 75-day
comment period on the proposed amendments or or-
ders issued under paragraph (1).
(3) Not later than 120 days after the end of the
comment period provided under paragraph (2), the
Secretary shall publish in the Federal Register a final
administrative decision regarding the issuance or
amendment of Federal milk marketing orders to effec-
tuate the reform requirements specified in such sec-
tion.
(b) REFERENDUM
AND MARKETING AGREEMENT.—
After the issuance of the new or amended Federal milk mar-
keting orders under section 221, the Secretary may conduct
a referendum in the manner provided in section 8c(16)(B)
of the Agricultural Adjustment Act (7 U.S.C. 608c(16)(B)),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, with respect to each order to deter-
mine whether milk producers subject to the order favor the
termination of the order.
(c) APPLICATION OF ADMINISTRATIVE PROCEDURES
ACT.—The issuance of the new or amended Federal milk
116
marketing orders required under section 221 shall not be
subject to rulemaking under title 5, United States Code.
(d) REVIEW AND APPROVAL.—The action of the Sec-
retary under section 221 shall not be subject to review or
approval by any other executive agency.
SEC. 223. EFFECT OF FAILURE TO COMPLY WITH REFORM
PROCESS REQUIREMENTS.
(a) FAILURE TO TIMELY ISSUE OR AMEND ORDERS.—
If, before the end of the 1-year period beginning on the date
of the enactment of this Act, the Secretary of Agriculture
does not issue new or amended Federal milk marketing or-
ders under section 8c of the Agricultural Adjustment Act
(7 U.S.C. 608c), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, to effectuate the
requirements of section 221(b), then the Secretary may not
assess or collect assessments from milk producers or han-
dlers under such section 8c for marketing order administra-
tion and services provided under such section after the end
of that period. The Secretary may not reduce the level of
services provided under such section on account of the pro-
hibition against assessments, but shall rather cover the cost
of marketing order administration and services through
funds available for the Agricultural Marketing Service of
the Department of Agriculture.
117
(b) FAILURE TO TIMELY IMPLEMENT ORDERS.—Un-
less the Secretary certifies to Congress before the end of the
2-year period beginning on the date of the enactment of this
Act that all of the Federal marketing order reforms required
by section 221(b) have been fully implemented, then, effec-
tive at the end of that period—
(1) the Secretary shall immediately cease all
price support activities under section 201;
(2) the Secretary shall immediately terminate all
Federal milk marketing orders under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reen-
acted with amendments by the Agricultural Market-
ing Agreement Act of 1937, and may not issue any
further order under such Act with respect to milk;
(3) the Commodity Credit Corporation shall im-
mediately cease to operate the dairy export incentive
program under section 153 of the Food Security Act
of 1985 (15 U.S.C. 713a–14);
(4) the Secretary and the National Processor Ad-
vertising and Promotion Board shall immediately
cease all activities under the Fluid Milk Promotion
Act of 1990 (7 U.S.C. 6401 et seq.); and
(5) the Secretary and the National Dairy Pro-
motion and Research Board shall immediately cease
118
all activities under the Dairy Production Stabiliza-
tion Act of 1983 (7 U.S.C. 4501 et seq.).
(c) EFFECT OF COURT ORDER.—The actions author-
ized by this section are intended to ensure the timely publi-
cation and implementation of new and amended Federal
milk marketing orders under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amend-
ments by the Agricultural Marketing Agreement Act of
1937. In the event that the Secretary is enjoined or other-
wise restrained by a court order from publishing or imple-
menting the reform requirements specified by section 221,
the length of time for which that injunction or other re-
straining order is effective shall be added to the time limita-
tions specified in subsections (a) and (b) thereby extending
those time limitations by a period of time equal to the pe-
riod of time for which the injunction or other restraining
order is effective.
TITLE III—CONSERVATION
SEC. 301. CONSERVATION.
(a) FUNDING.—Subtitle E of title XII of the Food Se-
curity Act of 1985 (16 U.S.C. 3841 et seq.) is amended to
read as follows:
119
‘‘Subtitle E—Funding
‘‘SEC. 1241. FUNDING.
‘‘(a) MANDATORY EXPENSES.—For each of fiscal years
1996 through 2002, the Secretary shall use the funds of the
Commodity Credit Corporation to carry out the programs
authorized by—
‘‘(1) subchapter B of chapter 1 of subtitle D (in-
cluding contracts extended by the Secretary pursuant
to section 1437 of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (Public Law 101–624; 16
U.S.C. 3831 note));
‘‘(2) subchapter C of chapter 1 of subtitle D; and
‘‘(3) chapter 4 of subtitle D.
‘‘(b) LIVESTOCK ENVIRONMENTAL ASSISTANCE PRO-
GRAM.—For each of fiscal years 1996 through 2002,
$100,000,000 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 relating to livestock production under the livestock
environmental assistance program under chapter 4 of sub-
title D.’’.
(b) LIVESTOCK ENVIRONMENTAL ASSISTANCE 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:
120
‘‘CHAPTER 4—LIVESTOCK
ENVIRONMENTAL ASSISTANCE PROGRAM
‘‘SEC. 1240. DEFINITIONS.
‘‘In this chapter:
‘‘(1) LAND MANAGEMENT PRACTICE.—The term
‘land management practice’ means a site-specific nu-
trient or manure management, irrigation manage-
ment, tillage or residue management, grazing man-
agement, or other land management practice that the
Secretary determines is needed to protect, in the most
cost effective manner, water, soil, or related resources
from degradation due to livestock production.
‘‘(2) LARGE CONFINED LIVESTOCK OPERATION.—
The term ‘large confined livestock operation’ means
an operation that—
‘‘(A) is a confined animal feeding oper-
ation; and
‘‘(B) has more than—
‘‘(i) 55 mature dairy cattle;
‘‘(ii) 10,000 beef cattle;
‘‘(iii) 30,000 laying hens or broilers (if
the facility has continuous overflow water-
ing);
‘‘(iv) 100,000 laying hens or broilers
(if the facility has a liquid manure system);
121
‘‘(v) 55,000 turkeys;
‘‘(vi) 15,000 swine; or
‘‘(vii) 10,000 sheep or lambs.
‘‘(3) LIVESTOCK.—The term ‘livestock’ means
dairy cows, beef cattle, laying hens, broilers, turkeys,
swine, sheep, lambs, and such other animals as deter-
mined by the Secretary.
‘‘(4) OPERATOR.—The term ‘operator’ means a
person who is engaged in livestock production (as de-
fined by the Secretary).
‘‘(5) STRUCTURAL PRACTICE.—The term ‘struc-
tural practice’ means the establishment of an animal
waste management facility, terrace, grassed water-
way, contour grass strip, filterstrip, or other struc-
tural practice that the Secretary determines is needed
to protect, in the most cost effective manner, water,
soil, or related resources from degradation due to live-
stock production.
‘‘SEC. 1240A. ESTABLISHMENT AND ADMINISTRATION OF
LIVESTOCK 
ENVIRONMENTAL 
ASSISTANCE
PROGRAM.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—During the 1996 through
2002 fiscal years, the Secretary shall provide tech-
nical assistance, cost-sharing payments, and incentive
122
payments to operators who enter into contracts with
the Secretary, through a livestock environmental as-
sistance program.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—An opera-
tor who implements a structural practice shall be
eligible for technical assistance or cost-sharing
payments, or both.
‘‘(B) LAND MANAGEMENT PRACTICES.—An
operator who performs a land management prac-
tice 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 production and on which a serious
threat to water, soil, or related resources exists, as de-
termined by the Secretary, by reason of the soil types,
terrain, climatic, soil, topographic, flood, or saline
characteristics, or other factors or natural hazards.
‘‘(4) SELECTION CRITERIA.—In providing tech-
nical assistance, cost-sharing payments, and incentive
payments to operators in a region, watershed, or con-
servation priority area in which an agricultural op-
eration is located, the Secretary shall consider—
123
‘‘(A) the significance of the water, soil, and
related natural resource problems; and
‘‘(B) the maximization of environmental
benefits per dollar expended.
‘‘(b) APPLICATION AND TERM.—
‘‘(1) IN GENERAL.—A contract between an oper-
ator 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 OPERATORS AND SECRETARY.—
To receive cost-sharing or incentive payments, or
technical assistance, participating operators 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 operators
proposing to receive cost-sharing payments in ex-
change for the implementation of 1 or more structural
124
practices by the operator. The competitive offer system
shall consist of—
‘‘(A) the submission of a competitive offer
by the operator in such manner as the Secretary
may prescribe; and
‘‘(B) evaluation of the offer in light of the
selection criteria established under subsection
(a)(4) and the projected cost of the proposal, as
determined by the Secretary.
‘‘(2) CONCURRENCE OF OWNER.—If the operator
making an offer to implement a structural practice is
a tenant of the land involved in agricultural produc-
tion, for the offer to be acceptable, the operator shall
obtain the concurrence of the owner of the land with
respect to the offer.
‘‘(d) LAND MANAGEMENT PRACTICES.—The Secretary
shall establish an application and evaluation process for
awarding technical assistance or incentive payments, or
both, to an operator in exchange for the performance of 1
or more land management practices by the operator.
‘‘(e) COST-SHARING, INCENTIVE
PAYMENTS, 
AND
TECHNICAL ASSISTANCE.—
‘‘(1) COST-SHARING PAYMENTS.—
‘‘(A) IN GENERAL.—The Federal share of
cost-sharing payments to an operator proposing
125
to implement 1 or more structural practices shall
not be greater than 75 percent of the projected
cost of each practice, as determined by the Sec-
retary, taking into consideration any payment
received by the operator from a State or local
government.
‘‘(B) LIMITATION.—An operator of a large
confined livestock operation shall not be eligible
for cost-sharing payments to construct an ani-
mal waste management facility.
‘‘(C) OTHER PAYMENTS.—An operator shall
not be eligible for cost-sharing payments for
structural practices on eligible land under this
chapter if the operator receives cost-sharing pay-
ments 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 encour-
age an operator to perform 1 or more land manage-
ment practices.
‘‘(3) TECHNICAL ASSISTANCE.—
‘‘(A) FUNDING.—The Secretary shall allo-
cate funding under this chapter for the provision
of technical assistance according to the purpose
126
and projected cost for which the technical assist-
ance is provided for a fiscal year. The allocated
amount may vary according to the type of exper-
tise required, quantity of time involved, and
other factors as determined appropriate by the
Secretary. 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 operator to receive
technical assistance under other authorities of
law available to the Secretary.
‘‘(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) 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
127
‘‘(B) prescribing such rules as the Secretary
determines necessary to ensure a fair and rea-
sonable application of the limitations established
under this subsection.
‘‘(g) REGULATIONS.—Not later than 180 days after the
effective date of this subsection, the Secretary shall issue reg-
ulations to implement the livestock environmental assist-
ance program established under this chapter.’’.
(c) CONFORMING PROGRAM CHANGES.—
(1) WETLANDS RESERVE PROGRAM.—
(A) IN GENERAL.—Section 1237 of the Food
Security Act of 1985 (16 U.S.C. 3837) is amend-
ed—
(i) in subsection (b)(2)—
(I) by striking ‘‘not less’’ and in-
serting ‘‘not more’’; and
(II) by striking ‘‘2000’’ and in-
serting ‘‘2002’’; and
(ii) in subsection (c), by striking
‘‘2000’’ and inserting ‘‘2002’’.
(B) 
LENGTH
OF
EASEMENT.—Section
1237A(e) of the Food Security Act of 1985 (16
U.S.C. 3837a(e)) is amended by striking para-
graph (2) and inserting the following:
128
‘‘(2) shall be for 15 years, but in no case shall
be a permanent easement.’’.
(2) CONSERVATION RESERVE PROGRAM.—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 sub-
section and inserting ‘‘total of 36,400,000 acres.’’.
Section 725 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies
Appropriations Act, 1996 (Public Law 104–37; 109
Stat. 332), is amended by striking the proviso relat-
ing to enrollment of new acres in 1997.
TITLE IV—AGRICULTURAL PRO-
MOTION AND EXPORT 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,’’.
129
SEC. 402. EXPORT ENHANCEMENT PROGRAM.
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 Cor-
poration shall make available to carry out the pro-
gram established under this section not more than—
‘‘(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.’’.
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 consultation
with approved insurance providers, the Sec-
retary may continue to offer catastrophic
risk protection in a State (or a portion of
130
a State) through local offices of the Depart-
ment if the Secretary determines that there
is an insufficient number of approved in-
surance providers operating in the State or
portion to adequately provide catastrophic
risk protection coverage to producers.
‘‘(ii) COVERAGE BY APPROVED INSUR-
ANCE PROVIDERS.—To the extent that cata-
strophic 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 (including all
fees collected for the crop year in which the
approved insurance provider will assume
the policies) to the approved insurance pro-
vider for performance of all sales, service,
and loss adjustment functions.’’; and
(2) in paragraph (7), by striking subparagraph
(A) and inserting the following:
131
‘‘(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 Ag-
ricultural Market Transition Act or the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.), for the conservation reserve program, or for
any benefit described in section 371 of the Con-
solidated 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 economic
significance in which the person has an in-
terest; or
‘‘(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connection
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 amend-
ed by inserting ‘‘seed crops,’’ after ‘‘turfgrass sod,’’.
SEC. 502. COLLECTION AND USE OF AGRICULTURAL QUAR-
ANTINE AND INSPECTION FEES.
Subsection (a) of section 2509 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is
amended to read as follows: