I
106TH CONGRESS
1ST SESSION
H. R. 217
To authorize the provision of economic assistance to certain hog producers
in response to current disastrously low prices for hogs.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1999
Mr. NUSSLE (for himself, Mr. LEACH, and Mr. LATHAM) introduced the
following bill; which was referred to the Committee on Agriculture
A BILL
To authorize the provision of economic assistance to certain
hog producers in response to current disastrously low
prices for hogs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 
1. 
NONRECOURSE 
MARKETING 
ASSISTANCE
LOANS FOR CERTAIN HOG PRODUCERS.
(a) NONRECOURSE LOANS AUTHORIZED.—
(1) IN GENERAL.—In order to assist hog pro-
ducers described in paragraph (2) to market their
hogs in an orderly manner during a period of disas-
trously low prices, from October 1, 1998, to Septem-
ber 30, 1999, the Secretary of Agriculture may
make available to such producers nonrecourse mar-
keting assistance loans for hogs produced by such
producers. The loans shall be made under terms and
conditions prescribed by the Secretary and at the
loan rate determined under subsection (b).
(2) ELIGIBLE HOG PRODUCERS.—To be eligible
for a loan under this section, a producer shall mar-
ket not more than 5,000 hogs during the period
specified in paragraph (1).
(b) LOAN RATE.—The loan rate of a marketing as-
sistance loan under this section shall be—
(1) 85 percent of the average price for live hogs
during the preceding five-calendar years, excluding
the year in which the average price was the highest
and the year in which the average price was the low-
est in the period; but
(2) not more than $30 per hundredweight.
(c) TERM OF LOAN.—A marketing assistance loan
under this section shall have a term of nine months begin-
ning on the first day of the first month after the month
in which the loan is made. The Secretary may not extend
the term of the loan.
(d) REPAYMENT RATES.—The Secretary shall permit
a producer to repay a marketing assistance loan under this
section at a rate that is the lesser of—
(1) the loan rate established under subsection
(b), plus interest (as determined by the Secretary);
or
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodity by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; and
(D) allow the commodity produced in the
United States to be marketed freely and com-
petitively, both domestically and internationally.
(e) AVAILABILITY
OF
LOAN
DEFICIENCY
PAY-
MENTS.—
(1) IN
GENERAL.—The Secretary may make
loan deficiency payments available to producers who,
although eligible to obtain a marketing assistance
loan under this section, agree to forgo obtaining the
loan in return for payments under this subsection.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by
multiplying—
(A) the loan payment rate determined
under paragraph (3); by
(B) the quantity of the loan commodity
that the producers on a farm are eligible to
place under loan but for which the producers
forgo obtaining the loan in return for payments
under this subsection.
(3) LOAN
PAYMENT
RATE.—For purposes of
this subsection, the loan payment rate shall be the
amount by which—
(A) the loan rate established under sub-
section (b) and in effect; exceeds
(B) the rate at which a loan for the com-
modity may be repaid under subsection (d).
(f) PAYMENT LIMITATION.—The total gain that a
person may receive under this section from the repayment
of a marketing assistance loan under this section or the
receipt of loan deficiency payments under subsection (e)
may not exceed $75,000.
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