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‘‘(F) An owner of eligible farmland who
cash rents the eligible farmland and the lease
term expires before September 30, 2002, but
only if the actual operator of the farm declines
to enter into a market transition contract. In
the case of an owner covered by this subpara-
graph, payments will not begin under a market
transition contract until the fiscal year follow-
ing the fiscal year in which the lease held by
the nonparticipating operator expires.
‘‘(3) TENANTS
AND
SHARECROPPERS.—The
Secretary shall provide adequate safeguards to pro-
tect the interests of operators who are tenants and
sharecroppers.
‘‘(b) ELEMENTS OF CONTRACTING.—
‘‘(1) TIME FOR CONTRACTING.—
‘‘(A) DEADLINE.—Except as provided in
subparagraph (B), the Secretary may not enter
into a market transition contract after April 15,
1996.
‘‘(B) SPECIAL RULE FOR CONSERVATION
RESERVE LANDS.—Eligible owners and opera-
tors on farms covered by a conservation reserve
contract under section 1231 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831) that expires
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after April 15, 1996, may enter into or expand
a market transition contract to cover the acre-
age equal to the quantity of the farm’s crop
acreage bases restored with respect to the farm
under the terms and conditions of the conserva-
tion reserve program. The Secretary shall annu-
ally conduct an enrollment for such conserva-
tion reserve program acreage for the fiscal
years 1997 through 2002.
‘‘(2) DURATION OF CONTRACT.—The term of
each market transition contract shall—
‘‘(A) begin with the 1996 crop year, or the
crop year in which the contract is entered into
in the case of a contract entered into after
April 15, 1996; and
‘‘(B) extend through the 2002 crop year.
‘‘(3) ESTIMATION OF PAYMENTS.—At the time
the Secretary enters into a market transition con-
tract, the Secretary shall provide an estimate of the
minimum payments anticipated to be made under
the contract during at least the first fiscal year for
which payments will be made. If the actual payment
under the contract for the first fiscal year is less
than 95 percent of the estimated payment, the
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owner or operator subject to the contract may termi-
nate the contract without penalty.
‘‘(4) REPORT
ON
CONTRACTING.—Not later
than 90 days after the date of the enactment of this
section, the Secretary shall submit to the Committee
on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and For-
estry of the Senate a report describing the manner
in which the Secretary proposes to enter into market
transition contracts, the number of persons and
acreage covered by such contracts, and the total
amount of anticipated payments to be made under
such contracts (consistent with the limitations speci-
fied in subsection (e)).
‘‘(c) ELIGIBLE FARMLAND DESCRIBED.—Land shall
be considered to be farmland eligible for coverage under
a market transition contract only if the land has crop acre-
age base attributable to the land and—
‘‘(1) for at least one of the 1991 through 1995
crop years, at least a portion of the land was en-
rolled in the acreage reduction program authorized
for a crop of rice, upland cotton, feed grains, or
wheat under section 101B, 103B, 105B, or 107B or
was considered planted to rice, upland cotton, feed
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grains, or wheat, as certified under section
503(c)(7);
‘‘(2) was subject to a conservation reserve con-
tract under section 1231 of the Food Security Act
of 1985 (16 U.S.C. 3831) whose term expired on or
after January 1, 1995; or
‘‘(3) is released from coverage under a con-
servation reserve contract by the Secretary during
the period beginning on January 1, 1995, and end-
ing on April 15, 1996.
‘‘(d) TIME FOR PAYMENT.—
‘‘(1) IN GENERAL.—An annual payment under
a market transition contract shall be made not later
than September 30 of each of the fiscal years 1996
through 2002.
‘‘(2) ADVANCE PAYMENTS.—Beginning in fiscal
year 1997, half of the annual payment may be made
on March 15 at the option of the owner or operator
subject to the contract. At the option of the owner
or operator, half of the annual payment for fiscal
year 1996 may be made within 90 days of the date
on which the owner or operator enters into the mar-
ket transition contract.
‘‘(e) TOTAL AMOUNTS AVAILABLE FOR PAYMENTS
UNDER ALL CONTRACTS.—
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‘‘(1) TOTAL PAYMENTS.—Total payments under
all market transition contracts for fiscal years 1996
through 2002 shall not exceed $38,733,000,000.
‘‘(2) TOTAL PAYMENTS PER FISCAL YEAR.—Be-
ginning in fiscal year 1996, the Secretary shall ex-
pend on a fiscal year basis the following amounts to
satisfy the obligations of the Secretary under market
transition contracts:
‘‘(A) For fiscal year 1996,
$6,014,000,000.
‘‘(B) For fiscal year 1997,
$5,829,000,000.
‘‘(C) For fiscal year 1998,
$6,244,000,000.
‘‘(D) For fiscal year 1999,
$6,047,000,000.
‘‘(E) For fiscal year 2000,
$5,573,000,000.
‘‘(F) For fiscal year 2001,
$4,574,000,000.
‘‘(G) For fiscal year 2002,
$4,453,000,000.
‘‘(3) ADJUSTMENT OF PAYMENT AMOUNTS.—
The Secretary shall adjust the amount specified in
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paragraph (1), and the amount specified in para-
graph (2) for a particular fiscal year, as follows:
‘‘(A) Subtracting an amount equal to the
amount, if any, necessary during that fiscal
year to satisfy payment requirements under sec-
tions 101B, 103B, 105B, and 107B for the
1994 and 1995 crop years.
‘‘(B) Adding an amount equal to the sum
of all producer repayments of deficiency pay-
ments received during that fiscal year under
section 114(a)(2).
‘‘(C) Adding an amount equal to the sum
of all market transition contract payments with-
held by the Secretary, at the request of produc-
ers, during the preceding fiscal year as an off-
set against producer repayments of deficiency
payments otherwise required under section
114(a)(2).
‘‘(D) Adding an amount equal to the sum
of all refunds of market transition contract pay-
ments received during the preceding fiscal year
under subsection (i).
‘‘(f) CONTRACT PAYMENTS TO BE BASED ON HIS-
TORIC EXPENDITURE LEVELS.—
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‘‘(1) CONTRACT
COMMODITY
DEFINED.—For
purposes of this section, the term ‘contract commod-
ity’ means rice, upland cotton, feed grains, or wheat.
‘‘(2) CALCULATION OF HISTORIC EXPENDITURE
LEVELS.—
‘‘(A) IN
GENERAL.—For each contract
commodity, the Secretary shall calculate the
total expenditures that were required for the
1991 through 1995 crops of that contract com-
modity under section 101B, 103B, 105B, or
107B, including expenditures in the form of de-
ficiency payments, loan deficiency payments,
gains realized from repaying loans at a level
less than the original level, and marketing cer-
tificates.
‘‘(B) SPECIAL
RULE
FOR
1995
CROP
YEAR.—In the absence of information regarding
actual expenditures for the 1995 crop of each
contract commodity, the Secretary may use an
estimate of expenditures under section 101B,
103B, 105B, or 107B for that crop year. The
Secretary shall base such estimate on informa-
tion contained in the President’s budget for fis-
cal year 1997 submitted to the Congress under
section 1105 of title 31, United States Code.
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‘‘(3) AMOUNTS
AVAILABLE
FOR
EACH
CON-
TRACT COMMODITY.—The amount available for a fis-
cal year for payments with respect to crop acreage
base of a contract commodity included in market
transition contracts in effect during that fiscal year
shall be equal to the product of—
‘‘(A) the ratio of the amount calculated
under paragraph (2) for that contract commod-
ity to the total amount calculated for all con-
tract commodities under such paragraph; and
‘‘(B) the amount specified in paragraph
(2) of subsection (e) for that fiscal year, as ad-
justed under paragraph (3) of such subsection.
‘‘(g) DETERMINATION OF PAYMENTS UNDER PAR-
TICULAR CONTRACT.—
‘‘(1) INDIVIDUAL
PRODUCTION
OF
CONTRACT
COMMODITIES.—For each market transition con-
tract, the amount of production of a contract com-
modity covered by the contract shall be equal to the
product of—
‘‘(A) the crop acreage base of that contract
commodity attributable to the eligible farmland
subject to the contract; and
‘‘(B) the farm program payment yield in
effect for the 1995 crop of that contract com-
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modity for the farm containing that eligible
farmland.
‘‘(2) ANNUAL
TOTAL
PRODUCTION
OF
CON-
TRACT COMMODITIES.—For each of the fiscal years
1996 through 2002, the total production of each
contract commodity covered by all market transition
contracts shall be equal to the sum of the amounts
calculated under paragraph (1) for each individual
market transition contract in effect during that fis-
cal year.
‘‘(3) ANNUAL PAYMENT RATE.—The payment
rate for a contract commodity for a fiscal year shall
be equal to—
‘‘(A) the amount made available under
subsection (f)(3) for that contract commodity
for that fiscal year; divided by
‘‘(B) the amount determined under para-
graph (2) for that fiscal year.
‘‘(4) ANNUAL PAYMENT AMOUNT.—For each of
the fiscal years 1996 through 2002, the amount to
be paid under a particular market transition con-
tract in effect during that fiscal year with respect to
a contract commodity shall be equal to the product
of—
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‘‘(A) the amount of production determined
under paragraph (1) for that contract for that
contract commodity; and
‘‘(B) the payment rate in effect under
paragraph (3) for that fiscal year for that con-
tract commodity.
‘‘(5) ASSIGNMENT OF PAYMENTS.—The provi-
sions of section 8(g) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(g)) (relat-
ing to assignment of payments) shall apply to pay-
ments under this subsection. The owner or operator
making the assignment, or the assignee, shall pro-
vide the Secretary with notice, in such manner as
the Secretary may require in the market transition
contract, of any assignment made under this para-
graph.
‘‘(6) SHARING OF PAYMENTS.—The Secretary
shall provide for the sharing of payments made
under a market transition contract among the own-
ers and operators subject to the contract on a fair
and equitable basis.
‘‘(h) LIMITATION
ON TOTAL AMOUNT
OF PAY-
MENT.—The total amount of payments made to a person
under a market transition contract during any fiscal year
may not exceed $50,000. The Secretary shall issue regula-
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tions defining the term ‘person’ as used in this section,
which shall conform, to the extent practicable, to the regu-
lations defining the term ‘person’ issued under section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308).
In the case of payments under a market transition con-
tract provided to corporations and other persons described
in paragraph (5)(B)(i)(II) of such section, the Secretary
shall comply with the attribution requirements specified
in paragraph (5)(C) of such section.
‘‘(i) EFFECT OF VIOLATION.—
‘‘(1) TERMINATION
OF
CONTRACT.—If an
owner or operator subject to a market transition
contract violates the conservation compliance plan
for the farm containing eligible farmland under the
contract or wetland protection requirements applica-
ble to the farm, the Secretary may terminate the
market transition contract with respect to that
owner or operator. Upon such termination, the
owner or operator shall forfeit all rights to receive
future payments under the contract and shall refund
to the Secretary all payments under the contract re-
ceived by the owner or operator during the period of
the violation, together with interest thereon as deter-
mined by the Secretary.
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‘‘(2) REFUND OR ADJUSTMENT.—If the Sec-
retary determines that a violation of a market tran-
sition contract does not warrant termination of the
contract under paragraph (1), the Secretary may re-
quire the owner or operator subject to the con-
tract—
‘‘(A) to refund to the Secretary that part
of the payments received by the owner or opera-
tor during the period of the violation, together
with interest thereon as determined by the Sec-
retary; or
‘‘(B) to accept an adjustment in the
amount of future payments otherwise required
under the contract.
‘‘(3) FORECLOSURE.—An owner or operator
subject to a market transition contract may not be
required to make repayments to the Secretary of
amounts received under the contract if the eligible
farm land that is subject to the contract has been
foreclosed upon and the Secretary determines that
forgiving such repayments is appropriate in order to
provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner
or operator under the contract if the owner or opera-
tor continues or resumes operation, or control, of the
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property that is subject to the contract. Upon the
resumption of operation or control over the property
by the owner or operator, the provisions of the con-
tract in effect on the date of the foreclosure shall
apply.
‘‘(4) REVIEW.—A determination of the Sec-
retary under this subsection shall be considered to
be an adverse decision for purposes of the availabil-
ity of administrative review of the determination.
‘‘(j) TRANSFER OF INTEREST IN LANDS SUBJECT TO
CONTRACT.—
‘‘(1) EFFECT OF TRANSFER.—Except as pro-
vided in paragraph (2), the transfer by an owner or
operator subject to a market transition contract of
the right and interest of the owner or operator in
the eligible farmland under the contract shall result
in the termination of the contract with respect to
that farmland, effective on the date of the transfer,
unless the transferee of the land agrees with the
Secretary to assume all obligations of the contract.
At the request of the transferee, the Secretary may
modify the contract if the modifications are consist-
ent with the objectives of this section as determined
by the Secretary.
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‘‘(2) EXCEPTION.—If an owner or operator who
is entitled to a payment under a market transition
contract dies, becomes incompetent, or is otherwise
unable to receive such payment, the Secretary shall
make such payment, in accordance with regulations
prescribed by the Secretary and without regard to
any other provision of law, in such manner as the
Secretary determines is fair and reasonable in light
of all of the circumstances.
‘‘(k) PLANTING FLEXIBILITY.—
‘‘(1) PERMITTED CROPS.—In the case of acre-
age on a farm that serves as the basis for payments
under a market transition contract, an owner or op-
erator on the farm may plant for harvest on the
acreage—
‘‘(A) rice, upland cotton, feed grains, and
wheat;
‘‘(B) any oilseed;
‘‘(C) any industrial or experimental crop
designated by the Secretary;
‘‘(D) mung beans, lentils, and dry peas;
and
‘‘(E) any other crop, except any fruit or
vegetable crop (including potatoes and dry edi-
ble beans) not covered by subparagraph (D),
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unless such fruit or vegetable crop is designated
by the Secretary as—
‘‘(i) an industrial or experimental
crop; or
‘‘(ii) a crop for which no substantial
domestic production or market exists.
‘‘(2) LIMITATION.—At the discretion of the
Secretary, the Secretary may prohibit the planting
of any crop specified in paragraph (1) on acreage on
a farm that serves as the basis for payments under
a market transition contract.
‘‘(3) NOTIFICATION.—With regard to commod-
ities that may be planted pursuant to this sub-
section, the Secretary shall make a determination in
each crop year of the commodities that may not be
planted pursuant to this subsection and shall make
available a list of the commodities.
‘‘(4) CONSERVATION USES.—In lieu of planting
any crop specified in paragraph (1), the owner or
operator on a farm may devote to conservation uses
all or part of the eligible farmland subject to a mar-
ket transition contract, in accordance with regula-
tions issued by the Secretary.
‘‘(5) HAYING AND GRAZING.—Haying and graz-
ing of eligible farmland subject to a market transi-
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tion contract shall be permitted, except during any
consecutive five-month period that is established by
the State committee established under section 8(b)
of the Soil Conservation and Domestic Allotment
Act (16 U.S.C. 590h(b)) for a State. The 5-month
period shall be established during the period begin-
ning April 1, and ending October 31, of a year. In
the case of a natural disaster, the Secretary may
permit unlimited haying and grazing on the eligible
farmland. The Secretary may not exclude irrigated
or irrigable acreage not planted in alfalfa when exer-
cising the authority under the preceding sentence.
‘‘(l) MARKET TRANSITION CONTRACTS.—Notwith-
standing any other provision of law, no order issued for
any fiscal year under section 252 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C.
902) shall affect any payment under any market transi-
tion contract.
‘‘(m) COMMODITY CREDIT CORPORATION.—The Sec-
retary shall carry out this section through the Commodity
Credit Corporation, except that no funds of the Corpora-
tion shall be used for any salary or expense of any officer
or employee of the Department of Agriculture in connec-
tion with the administration of market transition pay-
ments or loans under this Act.
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‘‘(n) REGULATIONS.—The Secretary may issue such
regulations as the Secretary determines necessary to carry
out this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) 
WHEAT
0/85
PROGRAM.—Section
107B(c)(1)(E) of the Agricultural Act of 1949 (7
U.S.C. 1445b–3a(c)(1)(E)) is amended by striking
‘‘through 1997’’ in clauses (i) and (vii) each place
it appears and inserting ‘‘and 1995’’.
(2) FEED
GRAINS
0/85
PROGRAM.—Section
105B(c)(1)(E) 
of 
such 
Act 
(7 
U.S.C.
1444f(c)(1)(E)) is amended by striking ‘‘through
1997’’ in clauses (i) and (vii) each place it appears
and inserting ‘‘and 1995’’.
(3) COTTON PROGRAM.—Section 103B of such
Act (7 U.S.C. 1444–2) is amended—
(A) in the section heading, by striking
‘‘1997’’ and inserting ‘‘1995’’;
(B) in subsections (a)(1), (b)(1), (c)(1)(A),
(c)(1)(B)(ii), and (o), by striking ‘‘1997’’ each
place it appears and inserting ‘‘1995’’;
(C) 
in 
subsections 
(c)(1)(D)(i) 
and
(c)(1)(D)(v)(II) by striking ‘‘through 1997’’
each place it appears and inserting ‘‘and 1995’’;
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(D) 
in 
the 
heading 
of 
subsection
(c)(1)(D)(v)(II), by striking ‘‘THROUGH
1997
CROPS’’ and inserting ‘‘AND 1995 CROPS’’;
(E) in subsection (e)(1)(D), by striking
‘‘291⁄2 percent for each of the 1995 and 1996
crops, and 29 percent for the 1997 crop’’ and
inserting ‘‘and 291⁄2
percent for the 1995
crop’’; and
(F) in subparagraphs (B)(i), (D)(i), (E)(i),
and (F)(i) of subsection (a)(5), by striking
‘‘1998’’ each place it appears and inserting
‘‘1996’’.
(4) RICE
50/85
PROGRAM.—Section 101B of
such Act (7 U.S.C. 1441–2) is amended—
(A) 
in 
subsections 
(c)(1)(D)(i) 
and
(c)(1)(D)(v)(II), by striking ‘‘through 1997’’
each place it appears and inserting ‘‘and 1995’’;
and
(B) 
in 
the 
heading 
of 
subsection
(c)(1)(D)(v)(II), by striking ‘‘THROUGH
1997
CROPS’’ and inserting ‘‘AND 1995 CROPS’’.
(5) OILSEEDS.—Section 205(c) of such Act (7
U.S.C. 1446f(c)) is amended by striking ‘‘through
1997’’ both places it appears and inserting ‘‘and
1995’’.
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(6) CROP ACREAGE BASE.—Section 509 of such
Act (7 U.S.C. 1469) is amended by striking ‘‘effec-
tive only for the 1991 through 1997 program crops’’
and inserting ‘‘effective only until January 1, 1996’’.
SEC. 1103. AVAILABILITY OF NONRECOURSE MARKETING
ASSISTANCE 
LOANS 
FOR 
WHEAT, 
FEED
GRAINS, COTTON, RICE, AND OILSEEDS.
(a) NONRECOURSE LOANS AVAILABLE.—The Agri-
cultural Act of 1949 is amended by inserting after section
102, as amended by section 1102, the following new sec-
tion:
‘‘SEC. 
102A. 
NONRECOURSE 
MARKETING 
ASSISTANCE
LOANS FOR CERTAIN CROPS.
‘‘(a) NONRECOURSE LOANS AVAILABLE.—For each
of the 1996 through 2002 crops of wheat, feed grains, up-
land cotton, extra long staple cotton, rice, and oilseeds,
the Secretary shall make available to eligible producers on
a farm nonrecourse marketing assistance loans under
terms and conditions that are prescribed by the Secretary
and at a loan rate calculated under subsection (c). A mar-
keting assistance loan shall have a term of nine months
beginning 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 a marketing assistance loan.
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‘‘(b) ANNOUNCEMENT OF LOAN RATE.—The Sec-
retary shall announce the loan rate for each commodity
specified in subsection (a) not later than the start of the
marketing year of the commodity for which the loan rate
is to be in effect.
‘‘(c) CALCULATION OF LOAN RATE.—
‘‘(1) CALCULATION.—Subject to adjustment
under paragraph (2), the loan rate for marketing as-
sistance loans under subsection (a) for a particular
commodity specified in such subsection shall be
equal to 70 percent of the simple average price re-
ceived by producers of that commodity during the
marketing years for the immediately preceding five
crops of that commodity.
‘‘(2) REQUIRED BUDGETARY ADJUSTMENTS.—
If the Secretary estimates for one of the marketing
years for the 1996 through 2002 crops of a particu-
lar commodity specified in subsection (a) that the
average price to be received by producers of that
commodity is likely to be less that the loan rate cal-
culated under paragraph (1) for that marketing
year, the Secretary shall reduce the loan rate for
that commodity for that marketing year by an
amount sufficient to enable the Secretary to provide
marketing assistance loans at no net cost to the
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Federal Government by preventing the accumulation
of that commodity by the Commodity Credit Cor-
poration through loan forfeitures and by limiting
producer gains under the marketing loan provision
under subsection (d).
‘‘(3) SIMPLE AVERAGE PRICE.—The Secretary
shall be responsible for determining the simple aver-
age price received by producers of a commodity spec-
ified in subsection (a). In determining the simple av-
erage price a commodity for a five-year period, the
Secretary shall exclude the year in which the average
price was the highest and the year in which the av-
erage price was the lowest during the period.
‘‘(d) MARKETING LOAN PROVISION.—If during the
marketing year, the Secretary determines that the market
price of a commodity subject to a marketing assistance
loan under this section falls below the lower of (1) the
loan rate, or (2) the loan rate as adjusted by subsection
(c)(2), the Secretary shall allow such loan to be repaid
at such market price. This subsection shall not apply in
the case of marketing assistance loans for extra long sta-
ple cotton, rye, or oilseeds.
‘‘(e) ADJUSTMENTS FOR GRADE, TYPE, QUALITY,
LOCATION, AND OTHER FACTORS.—The Secretary may
make such adjustments in the announced loan rate for a
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commodity specified in subsection (a) as the Secretary
considers appropriate to reflect differences in grade, type,
quality, location, and other factors.
‘‘(f) PRODUCERS ELIGIBLE FOR LOANS.—Only the
following producers shall be eligible for a marketing assist-
ance loan under this section:
‘‘(1) In the case of a marketing assistance loan
for a crop of wheat, feed grains (other than rye), up-
land cotton, or rice, a producer whose land on which
the crop is raised is subject to a market transition
contract under section 102.
‘‘(2) In the case of a marketing assistance loan
for a crop of extra long staple cotton, rye, or oil-
seeds, any producer.
‘‘(g) PROHIBITION ON STORAGE PAYMENTS.—The
Secretary may not make payments to producers to cover
storage charges incurred in connection with marketing as-
sistance loans made under this section.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) The term ‘feed grains’ means corn, grain
sorghums, barley, oats, and rye.
‘‘(2) The term ‘oilseeds’ means soybeans, sun-
flower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, and, if designated by the Secretary,
other oilseeds.
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‘‘(i) REGULATIONS.—The Secretary may issue such
regulations as the Secretary determines necessary to carry
out this section.’’.
(b) REPEAL OF CURRENT ADJUSTMENT AUTHOR-
ITY.—Section 403 of the Agricultural Act of 1949 (7
U.S.C. 1423) is repealed.
SEC. 1104. REFORM OF PAYMENT LIMITATION PROVISIONS
OF FOOD SECURITY ACT OF 1985.
(a) ATTRIBUTION OF PAYMENTS MADE TO CORPORA-
TIONS AND OTHER ENTITIES.—Paragraph (5)(C) of sec-
tion 1001 of the Food Security Act of 1985 (7 U.S.C.
1308) is amended to read as follows:
‘‘(C)(i) In the case of payments to corporations and
other entities described in subparagraph (B)(i)(II), the
Secretary shall attribute payments to individuals in pro-
portion to their ownership interests in the corporation or
entity receiving the payment or in any other corporation
or entity that has a substantial beneficial interest in the
corporation or entity actually receiving the payment. This
subparagraph shall apply to individuals who hold or ac-
quire, directly or through another corporation or entity,
a substantial beneficial interest in the corporation or en-
tity actually receiving the payment.
‘‘(ii) In the case of payments to corporations and
other entities described in subparagraph (B)(i)(II), the
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Secretary shall also attribute payments to any State (or
political subdivision or agency thereof) or other corpora-
tion or entity that has a substantial beneficial interest in
the corporation or entity actually receiving the payment
in proportion to their ownership interests in the corpora-
tion or entity receiving the payment. This subparagraph
shall apply even if the payments are also attributable to
individuals under clause (i).
‘‘(iii) For purposes of this subparagraph, the term
‘substantial beneficial interest’ means not less than five
percent of all beneficial interests in the corporation or en-
tity actually receiving the payment, except that the Sec-
retary may set a lower percentage in order to ensure that
the provisions of this section and the scheme or device pro-
visions in section 1001B are not circumvented.’’.
(b) TRACKING OF PAYMENTS.—Paragraph (3) of sec-
tion 1001A(a) of the Food Security Act of 1985 (7 U.S.C.
1308–1(a)) is amended to read as follows:
‘‘(3) NOTIFICATION.—To facilitate administra-
tion of this section, each entity or individual receiv-
ing payments as a separate person shall notify each
individual or other entity that acquires or holds a
substantial beneficial interest in it of the require-
ments and limitations under this subsection. Each
such entity or individual receiving payments shall
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provide to the Secretary, at such times and in such
manner as prescribed by the Secretary, the name
and social security number of each individual, or the
name and taxpayer identification number of each en-
tity, that holds or acquires a substantial beneficial
interest.’’.
(c) CONFORMING AMENDMENT.—Paragraph (2) of
such section is amended to read as follows:
‘‘(2) SUBSTANTIAL
BENEFICIAL
INTEREST.—
For purposes of this subsection, the term ‘substan-
tial beneficial interest’ has the meaning given such
term in section 1001(5)(C)(iii).’’.
SEC. 1105. SUSPENSION OF CERTAIN PROVISIONS REGARD-
ING PROGRAM CROPS.
(a) WHEAT.—
(1) NONAPPLICABILITY
OF
CERTIFICATE
RE-
QUIREMENTS.—Sections 379d through 379j of the
Agricultural Adjustment Act of 1938 (7 U.S.C.
1379d–1379j) (relating to marketing certificate re-
quirements for processors and exporters) shall not
be applicable to wheat processors or exporters dur-
ing the period June 1, 1996, through May 31, 2003.
(2) SUSPENSION OF LAND USE, WHEAT MAR-
KETING ALLOCATION, AND PRODUCER CERTIFICATE
PROVISIONS.—Sections 331 through 339, 379b, and
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379c of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1331 through 1339, 1379b, and 1379c) shall
not be applicable to the 1996 through 2002 crops of
wheat.
(3) SUSPENSION
OF
CERTAIN
QUOTA
PROVI-
SIONS.—The joint resolution entitled ‘‘A joint reso-
lution relating to corn and wheat marketing quotas
under the Agricultural Adjustment Act of 1938, as
amended’’, approved May 26, 1941 (7 U.S.C. 1330
and 1340) shall not be applicable to the crops of
wheat planted for harvest in the calendar years 1996
through 2002.
(4) NONAPPLICABILITY OF SECTION 107 PRO-
GRAM.—Section 107 of the Agricultural Act of 1949
(7 U.S.C. 1445a) shall not be applicable to the 1996
through 2002 crops of wheat.
(b) FEED GRAINS.—Section 105 of the Agricultural
Act of 1949 (7 U.S.C. 1444b) shall not be applicable to
the 1996 through 2002 crops of feed grains.
(c) COTTON.—
(1) SUSPENSION
OF
BASE
ACREAGE
ALLOT-
MENTS, MARKETING QUOTAS, AND RELATED PROVI-
SIONS.—Sections 342, 343, 344, 345, 346, and 377
of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1342–1346 and 1377) shall not be applicable
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to any of the 1996 through 2002 crops of upland
cotton.
(2) NONAPPLICABILITY OF SECTION 103 PRO-
GRAM.—Section 103(a) of the Agricultural Act of
1949 (7 U.S.C. 1444(a)) shall not be applicable to
the 1996 through 2002 crops of upland cotton.
Subtitle B—Dairy
CHAPTER 1—AUTHORIZATION OF MARKET
TRANSITION PAYMENTS IN LIEU OF
MILK PRICE SUPPORT PROGRAM
SEC. 1201. SEVEN-YEAR MARKET TRANSITION CONTRACTS
FOR MILK PRODUCERS.
(a) CONTRACTS AUTHORIZED.—Section 204 of the
Agricultural Act of 1949 (7 U.S.C. 1446e) is amended to
read as follows:
‘‘SEC. 204. SEVEN-YEAR MARKET TRANSITION CONTRACTS
FOR MILK PRODUCERS AND RELATED PROVI-
SIONS.
‘‘(a) MARKET TRANSITION CONTRACTS AUTHOR-
IZED.—
‘‘(1) OFFER AND MAIN TERMS.—The Secretary
shall offer to enter into a contract (to be known as
a ‘market transition contract’) with willing milk pro-
ducers, under which the milk producers agree, in ex-
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change for seven payments under the contract, to
comply with—
‘‘(A) governmental animal waste manage-
ment regulations otherwise applicable to the
milk producer; and
‘‘(B) any wetland protection requirements
applicable to the farm under subtitle C of title
XII of such Act (16 U.S.C. 3821 et seq.).
‘‘(2) MILK PRODUCER DEFINED.—For purposes
of this section, the term ‘milk producer’ means a
person that was engaged in the production of cow’s
milk in the 48 contiguous States on September 15,
1995, and that received a payment during the 45-
day period before that date for cow’s milk marketed
for commercial use. Such term includes a person
considered to be a producer-handler that satisfies
the requirements of the preceding sentence.
‘‘(b) TIME
FOR CONTRACTING; DURATION.—The
Secretary shall begin to offer to enter into market transi-
tion contracts as soon as possible after the date of the
enactment of this section. The Secretary may not enter
into a market transition contract after April 15, 1996.
The term of each market transition contract shall extend
through December 31, 2001.
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‘‘(c) ESTIMATION OF PAYMENTS.—At the time the
Secretary enters into a market transition contract, the
Secretary shall provide an estimate of the payments antici-
pated to be made under the contract for at least fiscal
year 1996.
‘‘(d) TIME FOR PAYMENT.—The fiscal year 1996
payment under a market transition contract shall be made
on April 15, 1996, or as soon thereafter as practicable.
The Secretary shall make subsequent payments not later
than October 15 of each of the fiscal years 1997 through
2002.
‘‘(e) PAYMENT RATE.—The Secretary shall use the
following payment rates to calculate payments under a
market transition contract for a fiscal year:
‘‘(1) For fiscal year 1996, 10 cents per hun-
dredweight.
‘‘(2) For fiscal year 1997, 15 cents per hun-
dredweight.
‘‘(3) For fiscal year 1998, 13 cents per hun-
dredweight.
‘‘(4) For fiscal year 1999, 11 cents per hun-
dredweight.
‘‘(5) For fiscal year 2000, 9 cents per hundred-
weight.