I
104TH CONGRESS
2D SESSION
H. R. 2854
To modify the operation of certain agricultural programs.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1996
Mr. ROBERTS (for himself, Mr. EMERSON, Mr. ALLARD, Mr. BARRETT of Ne-
braska, Mr. EWING, Mr. COMBEST, Mr. BOEHNER, Mr. CHAMBLISS, and
Mr. NETHERCUTT) introduced the following bill; which was referred to
the Committee on Agriculture, and in addition to the Committee on Ways
and Means, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned
A BILL
To modify the operation of certain agricultural programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SEC. 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I—AGRICULTURAL MARKET TRANSITION PROGRAM
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Production flexibility contracts.
Sec. 104. Nonrecourse marketing assistance loans and loan deficiency pay-
ments.
Sec. 105. Payment limitations.
Sec. 106. Peanut program.
Sec. 107. Sugar program.
Sec. 108. Administration.
Sec. 109. Elimination of permanent price support authority.
Sec. 110. Effect of amendments.
TITLE II—CONSERVATION
Sec. 201. Conservation.
TITLE III—AGRICULTURAL PROMOTION AND EXPORT PROGRAMS
Sec. 301. Market promotion program.
Sec. 302. Export enhancement program.
TITLE IV—MISCELLANEOUS
Sec. 401. Crop insurance.
Sec. 402. Collection and use of agricultural quarantine and inspection fees.
Sec. 403. Commodity Credit Corporation interest rate.
TITLE V—COMMISSION ON 21ST CENTURY PRODUCTION
AGRICULTURE
Sec. 501. Establishment.
Sec. 502. Composition.
Sec. 503. Comprehensive review of past and future of production agriculture.
Sec. 504. Reports.
Sec. 505. Powers.
Sec. 506. Commission procedures.
Sec. 507. Personnel matters.
Sec. 508. Termination of Commission.
TITLE I—AGRICULTURAL
MARKET TRANSITION PROGRAM
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Agricultural Market
Transition Act’’.
SEC. 102. DEFINITIONS.
In this title:
(1) CONSIDERED
PLANTED.—The term ‘‘con-
sidered planted’’ means acreage that is considered
planted under title V of the Agricultural Act of 1949
(7 U.S.C. 1461 et seq.) (as in effect prior to the
amendment made by section 109(b)(2)).
(2) CONTRACT.—The term ‘‘contract’’ means a
production flexibility contract entered into under
section 103.
(3) CONTRACT ACREAGE.—The term ‘‘contract
acreage’’ means 1 or more crop acreage bases estab-
lished for contract commodities under title V of the
Agricultural Act of 1949 (as in effect prior to the
amendment made by section 109(b)(2)) that would
have been in effect for the 1996 crop (but for the
amendment made by section 109(b)(2)).
(4) CONTRACT COMMODITY.—The term ‘‘con-
tract commodity’’ means wheat, corn, grain sor-
ghum, barley, oats, upland cotton, and rice.
(5) CONTRACT PAYMENT.—The term ‘‘contract
payment’’ means a payment made under section 103
pursuant to a contract.
(6) CORN.—The term ‘‘corn’’ means field corn.
(7) DEPARTMENT.—The term ‘‘Department’’
means the United States Department of Agriculture.
(8) FARM
PROGRAM
PAYMENT
YIELD.—The
term ‘‘farm program payment yield’’ means the farm
program payment yield established for the 1995 crop
of a contract commodity under title V of the Agri-
cultural Act of 1949 (as in effect prior to the
amendment made by section 109(b)(2)).
(9) LOAN COMMODITY.—The term ‘‘loan com-
modity’’ means each contract commodity, extra long
staple cotton, and oilseeds.
(10) OILSEED.—The term ‘‘oilseed’’ means a
crop of soybeans, sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed, or, if designated
by the Secretary, other oilseeds.
(11) PERSON.—The term ‘‘person’’ means an
individual, partnership, firm, joint-stock company,
corporation, association, trust, estate, or State agen-
cy.
(12) PRODUCER.—
(A) IN GENERAL.—The term ‘‘producer’’
means a person who, as owner, landlord, ten-
ant, or sharecropper, shares in the risk of pro-
ducing a crop, and is entitled to share in the
crop available for marketing from the farm, or
would have shared had the crop been produced.
(B) HYBRID SEED.—The term ‘‘producer’’
includes a person growing hybrid seed under
contract. In determining the interest of a grow-
er of hybrid seed in a crop, the Secretary shall
not take into consideration the existence of a
hybrid seed contract.
(13) PROGRAM.—The term ‘‘program’’ means
the agricultural market transition program estab-
lished under this title.
(14) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Agriculture.
(15) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, and
any other territory or possession of the United
States.
(16) UNITED
STATES.—The term ‘‘United
States’’, when used in a geographical sense, means
all of the States.
SEC. 103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) CONTRACTS AUTHORIZED.—
(1) OFFER AND TERMS.—Beginning as soon as
practicable after the date of the enactment of this
title, the Secretary shall offer to enter into a con-
tract with an eligible owner or operator described in
paragraph (2) on a farm containing eligible farm-
land. Under the terms of a contract, the owner or
operator shall agree, in exchange for annual contract
payments, to comply with—
(A) the conservation plan for the farm pre-
pared in accordance with section 1212 of the
Food Security Act of 1985 (16 U.S.C. 3812);
(B) wetland protection requirements appli-
cable to the farm under subtitle C of title XII
of the Act (16 U.S.C. 3821 et seq.); and
(C) the planting flexibility requirements of
subsection (j).
(2) ELIGIBLE
OWNERS
AND
OPERATORS
DE-
SCRIBED.—The following persons shall be considered
to be an owner or operator eligible to enter into a
contract:
(A) An owner of eligible farmland who as-
sumes all of the risk of producing a crop.
(B) An owner of eligible farmland who
shares in the risk of producing a crop.
(C) An operator of eligible farmland with
a share-rent lease of the eligible farmland, re-
gardless of the length of the lease, if the owner
enters into the same contract.
(D) An operator of eligible farmland who
cash rents the eligible farmland under a lease
expiring on or after September 30, 2002, in
which case the consent of the owner is not re-
quired.
(E) An operator of eligible farmland who
cash rents the eligible farmland under a lease
expiring before September 30, 2002, if the
owner consents to the contract.
(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 contract. In the case of an
owner covered by this subparagraph, contract
payments shall not begin under a contract until
the fiscal year following the fiscal year in which
the lease held by the nonparticipating operator
expires.
(G) An owner or operator described in a
preceding subparagraph regardless of whether
the owner or operator purchased catastrophic
risk protection for a fall-planted 1996 crop
under section 508(b) of the Federal Crop Insur-
ance Act (7 U.S.C. 1508(b)).
(3) TENANTS AND SHARECROPPERS.—In carry-
ing out this section, the Secretary shall provide ade-
quate safeguards to protect the interests of opera-
tors who are tenants and sharecroppers.
(b) ELEMENTS.—
(1) TIME FOR CONTRACTING.—
(A) DEADLINE.—Except as provided in
subparagraph (B), the Secretary may not enter
into a contract after April 15, 1996.
(B) CONSERVATION RESERVE LANDS.—
(i) IN GENERAL.—At the beginning of
each fiscal year, the Secretary shall allow
an eligible owner or operator on a farm
covered by a conservation reserve contract
entered into under section 1231 of the
Food Security Act of 1985 (16 U.S.C.
3831) that terminates after the date speci-
fied in subparagraph (A) to enter into or
expand a production flexibility contract to
cover the contract acreage of the farm that
was subject to the former conservation re-
serve contract.
(ii) 
AMOUNT.—Contract 
payments
made for contract acreage under this sub-
paragraph shall be made at the rate and
amount applicable to the annual contract
payment level for the applicable crop.
(2) DURATION OF CONTRACT.—
(A) BEGINNING DATE.—A contract shall
begin with—
(i) the 1996 crop of a contract com-
modity; or
(ii) in the case of acreage that was
subject to a conservation reserve contract
described in paragraph (1)(B), the date
the production flexibility contract was en-
tered into or expanded to cover the acre-
age.
(B) ENDING DATE.—A contract shall ex-
tend through the 2002 crop.
(3) ESTIMATION OF CONTRACT PAYMENTS.—At
the time the Secretary enters into a contract, the
Secretary shall provide an estimate of the minimum
contract payments anticipated to be made during at
least the first fiscal year for which contract pay-
ments will be made.
(c) ELIGIBLE FARMLAND DESCRIBED.—Land shall
be considered to be farmland eligible for coverage under
a contract only if the land has contract acreage attrib-
utable to the land and—
(1) for at least 1 of the 1991 through 1995
crops, at least a portion of the land was enrolled in
the acreage reduction program authorized for a crop
of a contract commodity under section 101B, 103B,
105B, or 107B of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section
109(b)(2)) or was considered planted;
(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, or
was voluntarily terminated, on or after January 1,
1995; or
(3) is released from coverage under a conserva-
tion reserve contract by the Secretary during the pe-
riod beginning on January 1, 1995, and ending on
the date specified in subsection (b)(1)(A).
(d) TIME FOR PAYMENT.—
(1) IN GENERAL.—An annual contract payment
shall be made not later than September 30 of each
of fiscal years 1996 through 2002.
(2) ADVANCE PAYMENTS.—
(A) FISCAL YEAR 1996.—At the option of
the owner or operator, 50 percent of the con-
tract payment for fiscal year 1996 shall be
made not later than June 15, 1996.
(B) SUBSEQUENT FISCAL YEARS.—At the
option of the owner or operator for fiscal year
1997 and each subsequent fiscal year, 50 per-
cent of the annual contract payment shall be
made on December 15.
(e) AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS
FOR EACH FISCAL YEAR.—
(1) IN GENERAL.—The Secretary shall, to the
maximum extent practicable, expend on a fiscal year
basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) ALLOCATION.—The amount made available
for a fiscal year under paragraph (1) shall be allo-
cated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) ADJUSTMENT.—The Secretary shall adjust
the amounts allocated for each contract commodity
under paragraph (2) for a particular fiscal year by—
(A) subtracting an amount equal to the
amount, if any, necessary to satisfy payment re-
quirements under sections 101B, 103B, 105B,
and 107B of the Agricultural Act of 1949 (as
in effect prior to the amendment made by sec-
tion 109(b)(2)) for the 1994 and 1995 crops of
the commodity;
(B) adding an amount equal to the sum of
all repayments of deficiency payments received
under section 114(a)(2) of the Act (as so in ef-
fect) for the commodity;
(C) to the maximum extent practicable,
adding an amount equal to the sum of all con-
tract payments withheld by the Secretary, at
the request of an owner or operator subject to
a contract, as an offset against repayments of
deficiency payments otherwise required under
section 114(a)(2) of the Act (as so in effect) for
the commodity; and
(D) adding an amount equal to the sum of
all refunds of contract payments received dur-
ing the preceding fiscal year under subsection
(h) for the commodity.
(f) DETERMINATION OF CONTRACT PAYMENTS.—
(1) INDIVIDUAL PAYMENT QUANTITY OF CON-
TRACT COMMODITIES.—For each contract, the pay-
ment quantity of a contract commodity for each fis-
cal year shall be equal to the product of—
(A) 85 percent of the contract acreage;
and
(B) the farm program payment yield.
(2) ANNUAL PAYMENT QUANTITY OF CONTRACT
COMMODITIES.—The payment quantity of each con-
tract commodity covered by all contracts for each
fiscal year shall equal the sum of the amounts cal-
culated under paragraph (1) for each individual con-
tract.
(3) ANNUAL
PAYMENT
RATE.—The payment
rate for a contract commodity for each fiscal year
shall be equal to—
(A) the amount made available under sub-
section (e) for the contract commodity for the
fiscal year; divided by
(B) the amount determined under para-
graph (2) for the fiscal year.
(4) ANNUAL PAYMENT AMOUNT.—The amount
to be paid under a contract in effect for each fiscal
year with respect to a contract commodity shall be
equal to the product of—
(A) the payment quantity determined
under paragraph (1) with respect to the con-
tract; and
(B) the payment rate in effect under para-
graph (3).
(5) ASSIGNMENT OF CONTRACT PAYMENTS.—
The provisions of section 8(g) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C.
590h(g)) (relating to assignment of payments) shall
apply to contract payments under this subsection.
The owner or operator making the assignment, or
the assignee, shall provide the Secretary with notice,
in such manner as the Secretary may require in the
contract, of any assignment made under this para-
graph.
(6) SHARING OF CONTRACT PAYMENTS.—The
Secretary shall provide for the sharing of contract
payments among the owners and operators subject
to the contract on a fair and equitable basis.
(g) PAYMENT LIMITATION.—The total amount of
contract payments made to a person under a contract dur-
ing any fiscal year may not exceed the payment limitations
established under sections 1001 through 1001C of the
Food Security Act of 1985 (7 U.S.C. 1308 through 1308–
3).
(h) EFFECT OF VIOLATION.—
(1) TERMINATION
OF
CONTRACT.—Except as
provided in paragraph (2), if an owner or operator
subject to a contract violates the conservation plan
for the farm containing eligible farmland under the
contract, wetland protection requirements applicable
to the farm, or the planting flexibility requirements
of subsection (j), the Secretary shall terminate the
contract with respect to the owner or operator on
each farm in which the owner or operator has an in-
terest. On the termination, the owner or operator
shall forfeit all rights to receive future contract pay-
ments on each farm in which the owner or operator
has an interest and shall refund to the Secretary all
contract payments received by the owner or operator
during the period of the violation, together with in-
terest on the contract payments as determined by
the Secretary.
(2) REFUND
OR
ADJUSTMENT.—If the Sec-
retary determines that a violation does not warrant
termination of the contract under paragraph (1), the
Secretary may require the owner or operator subject
to the contract—
(A) to refund to the Secretary that part of
the contract payments received by the owner or
operator during the period of the violation, to-
gether with interest on the contract payments
as determined by the Secretary; or
(B) to accept a reduction in the amount of
future contract payments that is proportionate
to the severity of the violation, as determined
by the Secretary.
(3) FORECLOSURE.—An owner or operator sub-
ject to a contract may not be required to make re-
payments to the Secretary of amounts received
under the contract if the contract acreage has been
foreclosed on and the Secretary determines that for-
giving the repayments is appropriate in order to pro-
vide 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
contract acreage. On the resumption of operation or
control over the contract acreage by the owner or
operator, the provisions of the contract in effect on
the date of the foreclosure shall apply.
(4) REVIEW.—A determination of the Secretary
under this subsection shall be considered to be an
adverse decision for purposes of the availability of
administrative review of the determination.
(i) 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 contract of the right and inter-
est of the owner or operator in the contract acreage
shall result in the termination of the contract with
respect to the acreage, effective on the date of the
transfer, unless the transferee of the acreage agrees
with the Secretary to assume all obligations of the
contract. At the request of the transferee, the Sec-
retary may modify the contract if the modifications
are consistent with the objectives of this section as
determined by the Secretary.
(2) EXCEPTION.—If an owner or operator who
is entitled to a contract payment dies, becomes in-
competent, or is otherwise unable to receive the con-
tract payment, the Secretary shall make the pay-
ment, in accordance with regulations prescribed by
the Secretary.
(j) PLANTING FLEXIBILITY.—
(1) PERMITTED CROPS.—Subject to paragraph
(2)(A), any commodity or crop may be planted on
contract acreage.
(2) LIMITATIONS.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), the planting of any fruit or
vegetable, and unlimited haying and grazing,
shall be permitted on not more than 15 percent
of the contract acreage.
(B) EXCEPTION.—Subparagraph (A) shall
not apply to the planting of contract commod-
ities, lentils, mung beans, and dry peas on con-
tract acreage.
(3) ALFALFA.—The planting and harvesting of
alfalfa on contract acreage shall be unlimited, except
that the quantity of acreage on which the contract
payment of the owner or operator would otherwise
be based shall be reduced for each acre planted to
alfalfa in excess of the limitation in effect under
paragraph (2)(A) for the contract.
(4) HAYING AND GRAZING.—Subject to para-
graphs (2) and (3), haying and grazing of contract
acreage shall be permitted, except during any con-
secutive 5-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 pe-
riod shall be established during the period beginning
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 contract acre-
age.
(k) PRODUCTION FLEXIBILITY CONTRACTS.—Not-
withstanding 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 produc-
tion flexibility contract.
SEC. 104. NONRECOURSE MARKETING ASSISTANCE LOANS
AND LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY OF NONRECOURSE LOANS.—
(1) AVAILABILITY.—For each of the 1996
through 2002 crops of each loan commodity, the
Secretary shall make available to producers on a
farm nonrecourse marketing assistance loans for
loan commodities produced on the farm. The loans
shall be made under terms and conditions that are
prescribed by the Secretary and at the loan rate es-
tablished under subsection (b) for the loan commod-
ity.
(2) ELIGIBLE
PRODUCTION.—The following
production shall be eligible for a marketing assist-
ance loan under this section:
(A) In the case of a marketing assistance
loan for a contract commodity, any production
by a producer who has entered into a produc-
tion flexibility contract.
(B) In the case of a marketing assistance
loan for extra long staple cotton and oilseeds,
any production.
(b) LOAN RATES.—
(1) WHEAT.—
(A) LOAN RATE.—Subject to subparagraph
(B), the loan rate for a marketing assistance
loan for wheat shall be—
(i) not less than 85 percent of the
simple average price received by producers
of wheat, as determined by the Secretary,
during the marketing years for the imme-
diately preceding 5 crops of wheat, exclud-
ing the year in which the average price was
the highest and the year in which the aver-
age price was the lowest in the period; but
(ii) not more than $2.58 per bushel.
(B) STOCKS
TO
USE
RATIO
ADJUST-
MENT.—If the Secretary estimates for any mar-
keting year that the ratio of ending stocks of
wheat to total use for the marketing year will
be—
(i) equal to or greater than 30 per-
cent, the Secretary may reduce the loan
rate for wheat for the corresponding crop
by an amount not to exceed 10 percent in
any year;
(ii) less than 30 percent but not less
than 15 percent, the Secretary may reduce
the loan rate for wheat for the correspond-
ing crop by an amount not to exceed 5 per-
cent in any year; or
(iii) less than 15 percent, the Sec-
retary may not reduce the loan rate for
wheat for the corresponding crop.
(C) NO EFFECT ON FUTURE YEARS.—Any
reduction in the loan rate for wheat under sub-
paragraph (B) shall not be considered in deter-
mining the loan rate for wheat for subsequent
years.
(2) FEED GRAINS.—
(A) LOAN
RATE
FOR
CORN.—Subject to
subparagraph (B), the loan rate for a market-
ing assistance loan for corn shall be—
(i) not less than 85 percent of the
simple average price received by producers
of corn, as determined by the Secretary,
during the marketing years for the imme-
diately preceding 5 crops of corn, excluding
the year in which the average price was the
highest and the year in which the average
price was the lowest in the period; but
(ii) not more than $1.89 per bushel.
(B) STOCKS
TO
USE
RATIO
ADJUST-
MENT.—If the Secretary estimates for any mar-
keting year that the ratio of ending stocks of
corn to total use for the marketing year will
be—
(i) equal to or greater than 25 per-
cent, the Secretary may reduce the loan
rate for corn for the corresponding crop by
an amount not to exceed 10 percent in any
year;
(ii) less than 25 percent but not less
than 12.5 percent, the Secretary may re-
duce the loan rate for corn for the cor-
responding crop by an amount not to ex-
ceed 5 percent in any year; or
(iii) less than 12.5 percent the Sec-
retary may not reduce the loan rate for
corn for the corresponding crop.
(C) NO EFFECT ON FUTURE YEARS.—Any
reduction in the loan rate for corn under sub-
paragraph (B) shall not be considered in deter-
mining the loan rate for corn for subsequent
years.
(D) OTHER FEED GRAINS.—The loan rate
for a marketing assistance loan for grain sor-
ghum, barley, and oats, respectively, shall be es-
tablished at such level as the Secretary deter-
mines is fair and reasonable in relation to the
rate that loans are made available for corn, tak-
ing into consideration the feeding value of the
commodity in relation to corn.
(3) UPLAND COTTON.—
(A) LOAN RATE.—Subject to subparagraph
(B), the loan rate for a marketing assistance
loan for upland cotton shall be established by
the Secretary at such loan rate, per pound, as
will reflect for the base quality of upland cot-
ton, as determined by the Secretary, at average
locations in the United States a rate that is not
less than the smaller of—
(i) 85 percent of the average price
(weighted by market and month) of the
base quality of cotton as quoted in the des-
ignated United States spot markets during
3 years of the 5-year period ending July
31 in the year in which the loan rate is an-
nounced, excluding the year in which the
average price was the highest and the year
in which the average price was the lowest
in the period; or
(ii) 90 percent of the average, for the
15-week period beginning July 1 of the
year in which the loan rate is announced,
of the 5 lowest-priced growths of the
growths quoted for Middling 13⁄32-inch cot-
ton C.I.F. Northern Europe (adjusted
downward by the average difference during
the period April 15 through October 15 of
the year in which the loan is announced
between the average Northern European
price quotation of such quality of cotton
and the market quotations in the des-
ignated United States spot markets for the
base quality of upland cotton), as deter-
mined by the Secretary.
(B) LIMITATIONS.—The loan rate for a
marketing assistance loan for upland cotton
shall not be less than $0.50 per pound or more
than $0.5192 per pound.
(4) EXTRA LONG STAPLE COTTON.—The loan
rate for a marketing assistance loan for extra long
staple cotton shall be—
(A) not less than 85 percent of the simple
average price received by producers of extra
long staple cotton, as determined by the Sec-
retary, during 3 years of the 5 previous market-
ing years, excluding the year in which the aver-
age price was the highest and the year in which
the average price was the lowest in the period;
but
(B) not more than $0.7965 per pound.
(5) RICE.—The loan rate for a marketing as-
sistance loan for rice shall be $6.50 per hundred-
weight.
(6) OILSEEDS.—
(A) SOYBEANS.—The loan rate for a mar-
keting assistance loan for soybeans shall be
$4.92 per bushel.
(B) 
SUNFLOWER
SEED, 
CANOLA,
RAPESEED, SAFFLOWER, MUSTARD SEED, AND
FLAXSEED.—The loan rates for a marketing as-
sistance loan for sunflower seed, canola,
rapeseed, safflower, mustard seed, and flaxseed,
individually, shall be $0.087 per pound.
(C) OTHER OILSEEDS.—The loan rates for
a marketing assistance loan for other oilseeds
shall be established at such level as the Sec-
retary determines is fair and reasonable in rela-
tion to the loan rate available for soybeans, ex-
cept in no event shall the rate for the oilseeds
(other than cottonseed) be less than the rate es-
tablished for soybeans on a per-pound basis for
the same crop.
(c) TERM OF LOAN.—In the case of each loan com-
modity (other than upland cotton or extra long staple cot-
ton), a marketing assistance loan under subsection (a)
shall have a term of 9 months beginning on the first day
of the first month after the month in which the loan is
made. A marketing assistance loan for upland cotton or
extra long staple cotton shall have a term of 10 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 for any
loan commodity.
(d) REPAYMENT.—
(1) REPAYMENT RATES FOR WHEAT AND FEED
GRAINS.—The Secretary shall permit a producer to
repay a marketing assistance loan under subsection
(a) for wheat, corn, grain sorghum, barley, and oats
at a level that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
the commodities by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodities;
and
(D) allow the commodities produced in the
United States to be marketed freely and com-
petitively, both domestically and internationally.
(2) REPAYMENT RATES FOR UPLAND COTTON
AND RICE.—The Secretary shall permit producers to
repay a marketing assistance loan under subsection
(a) for upland cotton and rice at a level that is the
lesser of—
(A) the loan rate established for upland
cotton and rice, respectively, under subsection
(b); or
(B) the prevailing world market price for
upland cotton and rice, respectively (adjusted to
United States quality and location), as deter-
mined by the Secretary.
(3) REPAYMENT RATES FOR EXTRA LONG STA-
PLE COTTON.—Repayment of a marketing assistance
loan for extra long staple cotton shall be at the loan
rate established for the commodity under subsection
(b), plus interest (as determined by the Secretary).
(4) PREVAILING WORLD MARKET PRICE.—For
purposes of paragraph (2)(B) and subsection (f), the
Secretary shall prescribe by regulation—
(A) a formula to determine the prevailing
world market price for each loan commodity,
adjusted to United States quality and location;
and
(B) a mechanism by which the Secretary
shall announce periodically the prevailing world
market price for each loan commodity.
(5) ADJUSTMENT OF PREVAILING WORLD MAR-
KET PRICE FOR UPLAND COTTON.—
(A) IN GENERAL.—During the period end-
ing July 31, 2003, the prevailing world market
price for upland cotton (adjusted to United
States quality and location) established under
paragraph (4) shall be further adjusted if—
(i) the adjusted prevailing world mar-
ket price is less than 115 percent of the
loan rate for upland cotton established
under subsection (b), as determined by the
Secretary; and
(ii) the Friday through Thursday av-
erage price quotation for the lowest-priced
United States growth as quoted for Mid-
dling (M) 13⁄32-inch cotton delivered C.I.F.
Northern Europe is greater than the Fri-
day through Thursday average price of the
5 lowest-priced growths of upland cotton,
as quoted for Middling (M) 13⁄32-inch cot-
ton, delivered C.I.F. Northern Europe (re-
ferred to in this subsection as the ‘‘North-
ern Europe price’’).
(B) FURTHER
ADJUSTMENT.—Except as
provided in subparagraph (C), the adjusted pre-
vailing world market price for upland cotton
shall be further adjusted on the basis of some
or all of the following data, as available:
(i) The United States share of world
exports.
(ii) The current level of cotton export
sales and cotton export shipments.
(iii) Other data determined by the
Secretary to be relevant in establishing an
accurate prevailing world market price for
upland cotton (adjusted to United States
quality and location).
(C) LIMITATION
ON
FURTHER
ADJUST-
MENT.—The adjustment under subparagraph
(B) may not exceed the difference between—
(i) the Friday through Thursday aver-
age price for the lowest-priced United
States growth as quoted for Middling
13⁄32-inch cotton delivered C.I.F. Northern
Europe; and
(ii) the Northern Europe price.
(e) LOAN DEFICIENCY PAYMENTS.—
(1) AVAILABILITY.—Except as provided in
paragraph (4), the Secretary may make loan defi-
ciency payments available to producers who, al-
though eligible to obtain a marketing assistance loan
under subsection (a) with respect to a loan commod-
ity, agree to forgo obtaining the loan for the com-
modity in return for payments under this subsection.
(2) COMPUTATION.—A loan deficiency payment
under this subsection shall be computed by multiply-
ing—
(A) the loan payment rate determined
under paragraph (3) for the loan commodity; 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) for the loan commodity; exceeds
(B) the rate at which a loan for the com-
modity may be repaid under subsection (d).
(4) EXCEPTION FOR EXTRA LONG STAPLE COT-
TON.—This subsection shall not apply with respect
to extra long staple cotton.
(f) SPECIAL MARKETING LOAN PROVISIONS FOR UP-
LAND COTTON.—
(1) FIRST
HANDLER
MARKETING
CERTIFI-
CATES.—
(A) IN GENERAL.—During the period end-
ing on July 31, 2003, if the repayment rates
provided in subsection (d) for upland cotton or
the availability of loan deficiency payments for
upland cotton under subsection (e) fails to
make United States upland cotton fully com-
petitive in world markets and the prevailing
world market price of upland cotton (adjusted
to United States quality and location) is below
the current loan repayment rate for upland cot-
ton, to make United States upland cotton com-
petitive in world markets and to maintain and
expand domestic consumption and exports of
upland cotton produced in the United States,
the Secretary shall provide for the issuance of
marketing certificates or cash payments in ac-
cordance with this paragraph.
(B) PAYMENTS.—The Commodity Credit
Corporation, under such regulations as the Sec-
retary may prescribe, shall make payments,
through the issuance of marketing certificates
or cash payments, to first handlers of upland
cotton (persons regularly engaged in buying or
selling upland cotton) who have entered into an
agreement with the Commodity Credit Corpora-
tion to participate in the program established
under this paragraph. The payments shall be
made in such amounts and subject to such
terms and conditions as the Secretary deter-
mines will make upland cotton produced in the
United States available at competitive prices,
consistent with the purposes of this paragraph.
(C) VALUE.—The value of each certificate
or cash payment issued under subparagraph
(B) shall be based on the difference between—
(i) the loan repayment rate for upland
cotton; and
(ii) the prevailing world market price
of upland cotton (adjusted to United
States quality and location), as determined
by the Secretary.
(D) REDEMPTION, MARKETING, OR
EX-
CHANGE.—The Commodity Credit Corporation,
under regulations prescribed by the Secretary,
may assist any person receiving marketing cer-
tificates under this paragraph in the redemp-
tion of certificates for cash, or marketing or ex-
change of the certificates for agricultural com-
modities or products owned by the Commodity
Credit Corporation, at such times, in such man-
ner, and at such price levels as the Secretary
determines will best effectuate the purposes of
the program established under this paragraph.
Any price restrictions that may otherwise apply
to the disposition of agricultural commodities
by the Commodity Credit Corporation shall not
apply to the redemption of certificates under
this paragraph.
(E) DESIGNATION OF COMMODITIES AND
PRODUCTS; CHARGES.—Insofar as practicable,
the Secretary shall permit owners of certificates
to designate the commodities and products, in-
cluding storage sites, the owners would prefer
to receive in exchange for certificates. If any
certificate is not presented for redemption, mar-
keting, or exchange within a reasonable number
of days after the issuance of the certificate (as
determined by the Secretary), reasonable costs
of storage and other carrying charges, as deter-
mined by the Secretary, shall be deducted from
the value of the certificate for the period begin-
ning after the reasonable number of days and
ending with the date of the presentation of the
certificate to the Commodity Credit Corpora-
tion.
(F) DISPLACEMENT.—The Secretary shall
take such measures as may be necessary to pre-
vent the marketing or exchange of agricultural
commodities and products for certificates under
this subsection from adversely affecting the in-
come of producers of the commodities or prod-
ucts.
(G) TRANSFERS.—Under regulations pre-
scribed by the Secretary, certificates issued to
cotton handlers under this paragraph may be
transferred to other handlers and persons ap-
proved by the Secretary.
(2) 
COTTON
USER
MARKETING
CERTIFI-
CATES.—
(A) ISSUANCE.—Subject to subparagraph
(D), during the period ending July 31, 2003,
the Secretary shall issue marketing certificates
or cash payments to domestic users and export-
ers for documented purchases by domestic users
and sales for export by exporters made in the
week following a consecutive 4-week period in
which—
(i) the Friday through Thursday aver-
age price quotation for the lowest-priced
United States growth, as quoted for Mid-
dling (M) 13⁄32-inch cotton, delivered
C.I.F. 
Northern 
Europe 
exceeds 
the
Northern Europe price by more than 1.25
cents per pound; and
(ii) the prevailing world market price
for upland cotton (adjusted to United
States quality and location) does not ex-
ceed 130 percent of the loan rate for up-
land cotton established under subsection
(b).
(B) VALUE
OF
CERTIFICATES
OR
PAY-
MENTS.—The value of the marketing certifi-
cates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents
per pound) in the prices during the 4th week of
the consecutive 4-week period multiplied by the
quantity of upland cotton included in the docu-
mented sales.
(C) 
ADMINISTRATION.—Subparagraphs
(D) through (G) of paragraph (1) shall apply to
marketing certificates issued under this para-
graph. Any such certificates may be transferred
to other persons in accordance with regulations
issued by the Secretary.
(D) EXCEPTION.—The Secretary shall not
issue marketing certificates or cash payments
under subparagraph (A) if, for the immediately
preceding consecutive 10-week period, the Fri-
day through Thursday average price quotation
for the lowest priced United States growth, as
quoted for Middling (M) 13⁄32-inch cotton, deliv-
ered C.I.F. Northern Europe, adjusted for the
value of any certificate issued under this para-
graph, exceeds the Northern Europe price by
more than 1.25 cents per pound.
(E) LIMITATION
ON
EXPENDITURES.—
Total expenditures under this paragraph shall
not exceed $701,000,000 during fiscal years
1996 through 2002.
(3) SPECIAL IMPORT QUOTA.—
(A) 
ESTABLISHMENT.—The 
President
shall carry out an import quota program that
provides that, during the period ending July 31,
2003, whenever the Secretary determines and
announces that for any consecutive 10-week pe-
riod, the Friday through Thursday average
price quotation for the lowest-priced United
States growth, as quoted for Middling (M)
13⁄32-inch cotton, delivered C.I.F. Northern Eu-
rope, adjusted for the value of any certificates
issued under paragraph (2), exceeds the North-
ern Europe price by more than 1.25 cents per
pound, there shall immediately be in effect a
special import quota.
(B) QUANTITY.—The quota shall be equal
to 1 week’s consumption of upland cotton by
domestic mills at the seasonally adjusted aver-
age rate of the most recent 3 months for which
data are available.
(C) APPLICATION.—The quota shall apply
to upland cotton purchased not later than 90
days after the date of the Secretary’s announce-
ment under subparagraph (A) and entered into
the United States not later than 180 days after
the date.
(D) OVERLAP.—A special quota period
may be established that overlaps any existing
quota period if required by subparagraph (A),
except that a special quota period may not be
established under this paragraph if a quota pe-
riod has been established under subsection (g).
(E) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a special import
quota shall be considered to be an in-quota
quantity for purposes of—
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act
of 1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(F) DEFINITION.—In this paragraph, the
term ‘‘special import quota’’ means a quantity
of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(g) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND
COTTON.—
(1) IN
GENERAL.—The President shall carry
out an import quota program that provides that
whenever the Secretary determines and announces
that the average price of the base quality of upland
cotton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of such quality of cotton
in the markets for the preceding 36 months, not-
withstanding any other provision of law, there shall
immediately be in effect a limited global import
quota subject to the following conditions:
(A) QUANTITY.—The quantity of the quota
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months
for which data are available.
(B) QUANTITY
IF
PRIOR
QUOTA.—If a
quota has been established under this sub-
section during the preceding 12 months, the
quantity of the quota next established under
this subsection shall be the smaller of 21 days
of domestic mill consumption calculated under
subparagraph (A) or the quantity required to
increase the supply to 130 percent of the de-
mand.
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a limited global
import quota shall be considered to be an in-
quota quantity for purposes of—
(i) section 213(d) of the Caribbean
Basin Economic Recovery Act (19 U.S.C.
2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act
of 1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(D) DEFINITIONS.—In this subsection:
(i) 
SUPPLY.—The 
term 
‘‘supply’’
means, using the latest official data of the
Bureau of the Census, the Department of
Agriculture, and the Department of the
Treasury—
(I) the carry-over of upland cot-
ton at the beginning of the marketing
year (adjusted to 480-pound bales) in
which the quota is established;
(II) production of the current
crop; and
(III) imports to the latest date
available during the marketing year.
(ii) DEMAND.—The term ‘‘demand’’
means—
(I) the average seasonally ad-
justed annual rate of domestic mill
consumption in the most recent 3
months for which data are available;
and
(II) the larger of—
(aa) average exports of up-
land cotton during the preceding
6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is estab-
lished.
(iii) 
LIMITED
GLOBAL
IMPORT
QUOTA.—The term ‘‘limited global import
quota’’ means a quantity of imports that is
not subject to the over-quota tariff rate of
a tariff-rate quota.
(E) QUOTA
ENTRY
PERIOD.—When a
quota is established under this subsection, cot-
ton may be entered under the quota during the
90-day period beginning on the date the quota
is established by the Secretary.
(2) NO OVERLAP.—Notwithstanding paragraph
(1), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (f)(3).
(h) SOURCE OF LOANS.—
(1) IN GENERAL.—The Secretary shall provide
the loans authorized by this section and the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.) through the Commodity Credit Corporation
and other means available to the Secretary.
(2) PROCESSORS.—Whenever any loan or sur-
plus removal operation for any agricultural commod-
ity is carried out through purchases from or loans
or payments to processors, the Secretary shall, to
the extent practicable, obtain from the processors
such assurances as the Secretary considers adequate
that the producers of the commodity have received
or will receive maximum benefits from the loan or
surplus removal operation.
(i) ADJUSTMENTS OF LOANS.—
(1) IN
GENERAL.—The Secretary may make
appropriate adjustments in the loan levels for any
commodity for differences in grade, type, quality, lo-
cation, and other factors.
(2) LOAN LEVEL.—The adjustments shall, to
the maximum extent practicable, be made in such
manner that the average loan level for the commod-
ity will, on the basis of the anticipated incidence of
the factors, be equal to the level of support deter-
mined as provided in this section or the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1281 et seq.).
(j) PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), no producer shall be personally liable for
any deficiency arising from the sale of the collateral
securing any nonrecourse loan made under this sec-
tion or the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.) unless the loan was obtained
through a fraudulent representation by the producer.
(2) LIMITATIONS.—Paragraph (1) shall not
prevent the Commodity Credit Corporation or the
Secretary from requiring a producer to assume li-
ability for—
(A) a deficiency in the grade, quality, or
quantity of a commodity stored on a farm or
delivered by the producer;
(B) a failure to properly care for and pre-
serve a commodity; or
(C) a failure or refusal to deliver a com-
modity in accordance with a program estab-
lished under this section or the Agricultural Ad-
justment Act of 1938.
(3) ACQUISITION OF COLLATERAL.—The Sec-
retary may include in a contract for a nonrecourse
loan made under this section or the Agricultural Ad-
justment Act of 1938 a provision that permits the
Commodity Credit Corporation, on and after the ma-
turity of the loan or any extension of the loan, to ac-
quire title to the unredeemed collateral without obli-
gation to pay for any market value that the collat-
eral may have in excess of the loan indebtedness.
(4) SUGARCANE AND SUGAR BEETS.—A secu-
rity interest obtained by the Commodity Credit Cor-
poration as a result of the execution of a security
agreement by the processor of sugarcane or sugar
beets shall be superior to all statutory and common
law liens on raw cane sugar and refined beet sugar
in favor of the producers of sugarcane and sugar
beets and all prior recorded and unrecorded liens on
the crops of sugarcane and sugar beets from which
the sugar was derived.
(k) COMMODITY CREDIT CORPORATION SALES PRICE
RESTRICTIONS.—
(1) IN GENERAL.—The Commodity Credit Cor-
poration may sell any commodity owned or con-
trolled by the Corporation at any price that the Sec-
retary determines will maximize returns to the Cor-
poration.
(2) NONAPPLICATION
OF
SALES
PRICE
RE-
STRICTIONS.—Paragraph (1) shall not apply to—
(A) a sale for a new or byproduct use;
(B) a sale of peanuts or oilseeds for the ex-
traction of oil;
(C) a sale for seed or feed if the sale will
not substantially impair any loan program;
(D) a sale of a commodity that has sub-
stantially deteriorated in quality or as to which
there is a danger of loss or waste through dete-
rioration or spoilage;
(E) a sale for the purpose of establishing
a claim arising out of a contract or against a
person who has committed fraud, misrepresen-
tation, or other wrongful act with respect to the
commodity;
(F) a sale for export, as determined by the
Corporation; and
(G) a sale for other than a primary use.
(3) PRESIDENTIAL DISASTER AREAS.—
(A) IN GENERAL.—Notwithstanding para-
graph (1), on such terms and conditions as the
Secretary may consider in the public interest,
the Corporation may make available any com-
modity or product owned or controlled by the
Corporation for use in relieving distress—
(i) in any area in the United States
(including the Virgin Islands) declared by
the President to be an acute distress area
because of unemployment or other eco-
nomic cause, if the President finds that the
use will not displace or interfere with nor-
mal marketing of agricultural commodities;
and
(ii) in connection with any major dis-
aster determined by the President to war-
rant assistance by the Federal Government
under the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42
U.S.C. 5121 et seq.).
(B) COSTS.—Except on a reimbursable
basis, the Corporation shall not bear any costs
in connection with making a commodity avail-
able under subparagraph (A) beyond the cost of
the commodity to the Corporation incurred in—
(i) the storage of the commodity; and
(ii) the handling and transportation
costs in making delivery of the commodity
to designated agencies at 1 or more central
locations in each State or other area.
(4) EFFICIENT
OPERATIONS.—Paragraph (1)
shall not apply to the sale of a commodity the dis-
position of which is desirable in the interest of the
effective and efficient conduct of the operations of
the Corporation because of the small quantity of the
commodity involved, or because of the age, location,
or questionable continued storability of the commod-
ity.
SEC. 105. PAYMENT LIMITATIONS.
(a) IN GENERAL.—Section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308) is amended by striking para-
graphs (1) through (4) and inserting the following:
‘‘(1) LIMITATION ON PAYMENTS UNDER PRO-
DUCTION
FLEXIBILITY
CONTRACTS.—The 
total
amount of contract payments made under section
103 of the Agricultural Market Transition Act to a
person under 1 or more production flexibility con-
tracts during any fiscal year may not exceed
$40,000.
‘‘(2) LIMITATION ON MARKETING LOAN GAINS
AND LOAN DEFICIENCY PAYMENTS.—
‘‘(A) LIMITATION.—The total amount of
payments specified in subparagraph (B) that a
person shall be entitled to receive under section
104 of the Agricultural Market Transition Act
for contract commodities and oilseeds during
any crop year may not exceed $75,000.
‘‘(B) DESCRIPTION
OF
PAYMENTS.—The
payments referred to in subparagraph (A) are
the following:
‘‘(i) Any gain realized by a producer
from repaying a marketing assistance loan
for a crop of any loan commodity at a
lower level than the original loan rate es-
tablished for the commodity under section
104(b) of the Act.
‘‘(ii) Any loan deficiency payment re-
ceived for a loan commodity under section
104(e) of the Act.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) (as amended by subsection
(a)) is amended—
(A) by redesignating paragraphs (5), (6),
and (7) as paragraphs (3), (4), and (5), respec-
tively; and
(B) in the second sentence of paragraph
(3)(A) (as so redesignated), by striking ‘‘para-
graphs (6) and (7)’’ and inserting ‘‘paragraphs
(4) and (5)’’.
(2) Section 1305(d) of the Agricultural Rec-
onciliation Act of 1987 (Public Law 100–203; 7
U.S.C. 1308 note) is amended by striking ‘‘para-
graphs (5) through (7) of section 1001, as amended
by this subtitle,’’ and inserting ‘‘paragraphs (3)
through (5) of section 1001,’’.
(3) Section 1001A of the Food Security Act of
1985 (7 U.S.C. 1308–1(a)(1)) is amended—
(A) in the first sentence of subsection
(a)(1)—
(i) by striking ‘‘section 1001(5)(B)(i)’’
and inserting ‘‘section 1001(3)(B)(i)’’;
(ii) by striking ‘‘under the Agricul-
tural Act of 1949 (7 U.S.C. 1421 et
seq.)’’; and
(iii) 
by 
striking 
‘‘section
1001(5)(B)(i)(II)’’ and inserting ‘‘section
1001(3)(B)(i)(II)’’; and
(B) in subsection (b)—
(i) in paragraph (1)—
(I) by striking ‘‘under the Agri-
cultural Act of 1949’’; and
(II) 
by 
striking 
‘‘section
1001(5)(B)(i)’’ and inserting ‘‘section
1001(3)(B)(i)’’; and
(ii) in paragraph (2)(B), by striking
‘‘section 1001(5)(B)(i)(II)’’ and inserting
‘‘section 1001(3)(B)(i)(II)’’.
(4) Section 1001C(a) of the Food Security Act
of 1985 (7 U.S.C. 1308–3(a)) is amended—
(A) by striking ‘‘For each of the 1991
through 1997 crops, any’’ and inserting ‘‘Any’’;
(B) by striking ‘‘price support program
loans, payments, or benefits made available
under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.),’’ and inserting ‘‘loans or pay-
ments made available under the Agricultural
Market Transition Act’’; and
(C) by striking ‘‘during the 1989 through
1997 crop years’’.
SEC. 106. PEANUT PROGRAM.
(a) QUOTA PEANUTS.—
(1) AVAILABILITY OF LOANS.—The Secretary
shall make nonrecourse loans available to producers
of quota peanuts.
(2) LOAN RATE.—The national average quota
loan rate for quota peanuts shall be $610 per ton.
(3) INSPECTION, HANDLING, OR
STORAGE.—
The loan amount may not be reduced by the Sec-
retary by any deductions for inspection, handling, or
storage.
(4) LOCATION AND OTHER FACTORS.—The Sec-
retary may make adjustments in the loan rate for
quota peanuts for location of peanuts and such other
factors as are authorized by section 411 of the Agri-
cultural Adjustment Act of 1938.
(5) OFFERS FROM HANDLERS.—The Secretary
shall reduce the support rate by 5 percent for any
producer who had an offer, within a county or con-
tiguous county at the time and place of delivery,
from a handler to purchase quota peanuts from that
farm on which the peanuts were produced at a price
equal to or greater than the applicable quota sup-
port rate.
(b) ADDITIONAL PEANUTS.—
(1) IN GENERAL.—The Secretary shall make
nonrecourse loans available to producers of addi-
tional peanuts at such rates 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.
(2) ANNOUNCEMENT.—The Secretary shall an-
nounce the loan rate for additional peanuts of each
crop not later than February 15 preceding the mar-
keting year for the crop for which the loan rate 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
producing areas (described in section 1446.95
of title 7 of the Code of Federal Regulations
(January 1, 1989)) to a designated area mar-
keting 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 section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) ADMINISTRATIVE
AND
SUPERVISORY
ACTIVITIES.—An area marketing association
shall be used in administrative and supervisory
activities relating to loans and marketing activi-
ties under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C.
1359a).
(C) ASSOCIATION COSTS.—Loans made to
the association under this paragraph shall in-
clude such costs as the area marketing associa-
tion reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e
of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(2) POOLS FOR QUOTA AND ADDITIONAL PEA-
NUTS.—
(A) IN GENERAL.—The Secretary shall re-
quire 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. 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 and shall be dis-
tributed in proportion to the value of the pea-
nuts placed in the pool by each producer. Net
gains for peanuts in each pool shall consist of
the following:
(i) QUOTA PEANUTS.—For quota pea-
nuts, the net gains over and above the loan
indebtedness and other costs or losses in-
curred on peanuts placed in the pool.
(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.
(d) LOSSES.—Losses in quota area pools shall be cov-
ered using the following sources in the following order of
priority:
(1) 
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 the
producer under section 358–1(b)(8) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1358–
1(b)(8)).
(2) OTHER PRODUCERS IN SAME POOL.—Fur-
ther losses in an area quota pool shall be offset by
reducing the gain of any producer in the pool by the
amount of pool gains attributed to the same pro-
ducer from the sale of additional peanuts for domes-
tic and export edible use.
(3) USE OF MARKETING ASSESSMENTS.—The
Secretary shall use funds collected under subsection
(g) (except funds attributable to handlers) to offset
further losses in area quota pools. The Secretary
shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this
subsection that the Secretary determines are not re-
quired to cover losses in area quota pools.
(4) CROSS
COMPLIANCE.—Further losses in
area quota pools, other than losses incurred as a re-
sult of transfers from additional loan pools to quota
loan pools under section 358–1(b)(8) of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1358–
1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than
separate type pools established under subsection
(c)(2)(A) for Valencia peanuts produced in New
Mexico) in such manner as the Secretary shall by
regulation prescribe.
(5) INCREASED ASSESSMENTS.—If use of the
authorities provided in the preceding paragraphs is
not sufficient to cover losses in an area quota pool,
the Secretary shall increase the marketing assess-
ment established under subsection (g) by such an
amount as the Secretary considers necessary to
cover the losses. The increased assessment shall
apply only to quota peanuts covered by that pool.
Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the
Secretary to cover losses in that pool.
(e) DISAPPROVAL
OF
QUOTAS.—Notwithstanding
any other provision of law, no loan for quota peanuts may
be made available by the Secretary for any crop of peanuts
with respect to which poundage quotas have been dis-
approved by producers, as provided for in section 358–
1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358–1(d)).
(f) QUALITY IMPROVEMENT.—
(1) IN
GENERAL.—With respect to peanuts
under 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 Cor-
poration inventories of peanuts sold for domes-
tic edible use must be shown to have been offi-
cially inspected by licensed Department inspec-
tors both as farmer stock and shelled or cleaned
in-shell peanuts;
(C) continue to endeavor to operate the
peanut program so as to improve the quality of
domestic peanuts and ensure the coordination
of activities under the Peanut Administrative
Committee established under Marketing Agree-
ment No. 146, regulating the quality of domes-
tically produced peanuts (under the Agricul-
tural Adjustment Act (7 U.S.C. 601 et seq.),
reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the
peanut program as a result of this subsection
requiring additional production or handling at
the farm level shall be reflected as an upward
adjustment in the Department loan schedule.
(2) EXPORTS AND OTHER PEANUTS.—The Sec-
retary shall require that all peanuts in the domestic
and export markets fully comply with all quality
standards under Marketing Agreement No. 146.
(g) MARKETING ASSESSMENT.—
(1) IN GENERAL.—The Secretary shall provide
for a nonrefundable marketing assessment. The as-
sessment shall be made on a per pound basis in an
amount equal to 1.1 percent for each of the 1994
and 1995 crops, 1.15 percent for the 1996 crop, and
1.2 percent for each of the 1997 through 2002
crops, of the national average quota or additional
peanut loan rate for the applicable crop.
(2) FIRST PURCHASERS.—
(A) IN
GENERAL.—Except as provided
under paragraphs (3) and (4), 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—
(I) in the case of each of the
1994 and 1995 crops, .55 percent of
the applicable national average loan
rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent
of the applicable national average loan
rate;
(ii) pay, in addition to the amount col-
lected under clause (i), a marketing assess-
ment in an amount equal to the quantity
of peanuts acquired multiplied by .55 per-
cent of the applicable national average loan
rate; and
(iii) remit the amounts required under
clauses (i) and (ii) to the Commodity Cred-
it Corporation in a manner specified by the
Secretary.
(B) DEFINITION OF FIRST PURCHASER.—
In this subsection, the term ‘‘first purchaser’’
means a person acquiring peanuts from a pro-
ducer except that in the case of peanuts for-
feited by a producer to the Commodity Credit
Corporation, the term means the person acquir-
ing the peanuts from the Commodity Credit
Corporation.
(3) 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 outside of
the continental United States, the producer shall be
responsible for the full amount of the assessment
and shall remit the assessment by such time as is
specified by the Secretary.
(4) LOAN PEANUTS.—In the case of peanuts
that are pledged as collateral for a loan made under
this section, 1⁄2 of the assessment 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 section, the reduction in loan
proceeds shall be treated as having been paid to the
producer.
(5) PENALTIES.—If any person fails to collect
or remit the reduction required by this subsection or
fails to comply with the 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 rate
for the applicable crop year.
(6) ENFORCEMENT.—The Secretary may en-
force this subsection in the courts of the United
States.
(h) CROPS.—Subsections (a) through (f) shall be ef-
fective only for the 1996 through 2002 crops of peanuts.
(i) MARKETING QUOTAS.—
(1) IN GENERAL.—Part VI of subtitle B of title
III of the Agricultural Adjustment Act of 1938 is
amended—
(A) in section 358–1 (7 U.S.C. 1358–1)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1997 CROPS OF’’;
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by
striking ‘‘of the 1991 through 1997 mar-
keting years’’ each place it appears and in-
serting ‘‘marketing year’’;
(iii) in subsection (a)(3), by striking
‘‘1990’’ and inserting ‘‘1990, for the 1991
through 1995 marketing years, and 1995,
for the 1996 through 2002 marketing
years’’;
(iv) in subsection (b)(1)(A)—
(I) by striking ‘‘each of the 1991
through 1997 marketing years’’ and
inserting ‘‘each marketing year’’; and
(II) in clause (i), by inserting be-
fore the semicolon the following: ‘‘, in
the case of the 1991 through 1995
marketing years, and the 1995 mar-
keting year, in the case of the 1996
through 2002 marketing years’’; and
(v) in subsection (f), by striking
‘‘1997’’ and inserting ‘‘2002’’;
(B) in section 358b (7 U.S.C. 1358b)—
(i) in the section heading, by striking
‘‘1991 THROUGH 1995 CROPS OF’’; and
(ii) in subsection (c), by striking
‘‘1995’’ and inserting ‘‘2002’’;
(C) 
in 
section 
358c(d) 
(7 
U.S.C.
1358c(d)), by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(D) in section 358e (7 U.S.C. 1359a)—
(i) in the section heading, by striking
‘‘FOR 1991 THROUGH 1997 CROPS OF
PEANUTS’’; and
(ii) in subsection (i), by striking
‘‘1997’’ and inserting ‘‘2002’’.
(2) PRIORITIZED QUOTA REDUCTIONS.—Section
358–1(b)(2)(C) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1358–1(b)(2)(C)) is amended—
(A) by striking ‘‘all the’’; and
(B) by adding at the end the following new
sentence: ‘‘Rather than allocating the decrease
among all the farms in a State, the Secretary
shall allocate the decrease among farms in the
following order of priority:
‘‘(i) Farms owned or controlled by
municipalities, airport authorities, schools,
colleges, refuges, and other public entities
(not including universities for research
purposes).
‘‘(ii) Farms for which the quota hold-
er is not a producer and resides in another
State.
‘‘(iii) Other farms described in the
first sentence of this subparagraph.’’.
(3) ELIMINATION OF QUOTA FLOOR.—Section
358–1(a)(1) of the Act (7 U.S.C. 1358–1(a)(1)) is
amended by striking the second sentence.
(4) TEMPORARY QUOTA ALLOCATION.—Section
358–1 of the Act (7 U.S.C. 1358–1) is amended—
(A) in subsection (a)(1), by striking ‘‘do-
mestic edible, seed,’’ and inserting ‘‘domestic
edible use’’;
(B) in subsection (b)(2)—
(i) in subparagraph (A), by striking
‘‘subparagraph (B) and subject to’’; and
(ii) by striking subparagraph (B) and
inserting the following:
‘‘(B) TEMPORARY QUOTA ALLOCATION.—
‘‘(i) ALLOCATION RELATED TO SEED
PEANUTS.—Temporary allocation of quota
pounds for the marketing year only in
which the crop is planted shall be made to
producers for each of the 1996 through
2002 marketing years as provided in this
subparagraph.
‘‘(ii) 
QUANTITY.—The 
temporary
quota allocation shall be equal to the
pounds of seed peanuts planted on the
farm, as may be adjusted under regula-
tions prescribed by the Secretary.
‘‘(iii) ADDITIONAL QUOTA.—The tem-
porary allocation of quota pounds under
this paragraph shall be in addition to the
farm poundage quota otherwise established
under this subsection and shall be credited,
for the applicable marketing year only, in
total to the producer of the peanuts on the
farm in a manner prescribed by the Sec-
retary.
‘‘(iv) EFFECT
OF
OTHER
REQUIRE-
MENTS.—Nothing in this section alters or
changes the requirements regarding the
use of quota and additional peanuts estab-
lished by section 358e(b).’’; and
(C) in subsection (e)(3), strike ‘‘and seed
and use on a farm’’.
(5) SPRING AND FALL TRANSFERS WITHIN A
STATE.—Section 358b(a)(1) of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1358b(a)(1)) is
amended—
(A) by striking ‘‘any such lease’’ in the
matter preceding the subparagraphs and insert-
ing ‘‘any such sale or lease’’; and
(B) by striking ‘‘in the fall or after the
normal planting season—’’ and subparagraphs
(A) and (B) and inserting the following: ‘‘in the
spring (or before the normal planting season)
or in the fall (or after the normal planting sea-
son) with the owner or operator of a farm lo-
cated within any county in the same State. In
the case of a fall transfer or a transfer after the
normal planting season, the transfer may be
made only if not less than 90 percent of the
basic quota (the farm quota exclusive of tem-
porary quota transfers), plus any poundage
quota transferred to the farm under this sub-
section, has been planted or considered planted
on the farm from which the quota is to be
leased.’’.
(6) UNDERMARKETINGS.—Part VI of subtitle B
of title III of the Act is amended—
(A) in section 358–1(b) (7 U.S.C. 1358–
1(b))—
(i) in paragraph (1)(B), by striking
‘‘including—’’ and clauses (i) and (ii) and
inserting ‘‘including any increases resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).’’;
(ii) in paragraph (3)(B), by striking
‘‘include—’’ and clauses (i) and (ii) and in-
serting ‘‘include any increase resulting
from the allocation of quotas voluntarily
released for 1 year under paragraph (7).’’;
and
(iii) by striking paragraphs (8) and
(9); and
(B) 
in 
section 
358b(a) 
(7 
U.S.C.
1358b(a))—
(i) in paragraph (1), by striking ‘‘(in-
cluding any applicable under marketings)’’
both places it appears;
(ii) in paragraph (1)(A), by striking
‘‘of undermarketings and’’;
(iii) in paragraph (2), by striking
‘‘(including any applicable under market-
ings)’’; and
(iv) in paragraph (3), by striking
‘‘(including 
any 
applicable
undermarketings)’’.
(7) DISASTER TRANSFERS.—Section 358–1(b)
of the Act (7 U.S.C. 1358–1(b)), as amended by
paragraph (4)(A)(iii), is further amended by adding
at the end the following:
‘‘(8) DISASTER TRANSFERS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), additional peanuts produced
on a farm from which the quota poundage was
not harvested and marketed because of drought,
flood, or any other natural disaster, or any
other condition beyond the control of the pro-
ducer, may be transferred to the quota loan
pool for pricing purposes on such basis as the
Secretary shall by regulation provide.
‘‘(B) LIMITATION.—The poundage of pea-
nuts transferred under subparagraph (A) shall
not exceed the difference between—
‘‘(i) the total quantity of peanuts
meeting quality requirements for domestic
edible use, as determined by the Secretary,
marketed from the farm; and
‘‘(ii) the total farm poundage quota,
excluding quota pounds transferred to the
farm in the fall.
‘‘(C) SUPPORT
RATE.—Peanuts trans-
ferred under this paragraph shall be supported
at 70 percent of the quota support rate for the
marketing years in which the transfers occur.
The transfers for a farm shall not exceed 25
percent of the total farm quota pounds, exclud-
ing pounds transferred in the fall.’’.
SEC. 107. SUGAR PROGRAM.
(a) SUGARCANE.—The Secretary shall make loans
available to processors of domestically grown sugarcane at
a rate equal to 18 cents per pound for raw cane sugar.
(b) SUGAR BEETS.—The Secretary shall make loans
available to processors of domestically grown sugar beets
at a rate equal to 22.9 cents per pound for refined beet
sugar.
(c) REDUCTION IN LOAN RATES.—
(1) REDUCTION
REQUIRED.—The Secretary
shall reduce the loan rate specified in subsection (a)
for domestically grown sugarcane and subsection (b)
for domestically grown sugar beets if the Secretary
determines that negotiated reductions in export sub-
sidies and domestic subsidies provided for sugar of
the European Union and other major sugar growing,
producing, and exporting countries in the aggregate
exceed the commitments made as part of the Agree-
ment on Agriculture.
(2) EXTENT
OF
REDUCTION.—The Secretary
shall not reduce the loan rate under subsection (a)
or (b) below a rate that provides an equal measure
of support to that provided by the European Union
and other major sugar growing, producing, and ex-
porting countries, based on an examination of both
domestic and export subsidies subject to reduction in
the Agreement on Agriculture.
(3) ANNOUNCEMENT
OF
REDUCTION.—The
Secretary shall announce any loan rate reduction to
be made under this subsection as far in advance as
is practicable.
(4) MAJOR SUGAR COUNTRIES DEFINED.—For
purposes of this subsection, the term ‘‘major sugar
growing, 
producing, 
and 
exporting 
countries’’
means—
(A) the countries of the European Union;
and
(B) the ten foreign countries not covered
by subparagraph (A) that the Secretary deter-
mines produce the greatest amount of sugar.
(5) AGREEMENT ON AGRICULTURE DEFINED.—
For purposes of this subsection, the term ‘‘Agree-
ment on Agriculture’’ means the Agreement on Agri-
culture referred to in section 101(d)(2) of the Uru-
guay 
Round 
Agreements 
Act 
(19 
U.S.C.
3511(d)(2)).
(d) TERM OF LOANS.—
recourse loan previously made available by the Sec-
retary under this section during the fiscal year shall
be changed by the Secretary into a nonrecourse loan.
(3) PROCESSOR ASSURANCES.—If the Secretary
is 
required 
under 
paragraph 
(2) 
to 
make
nonrecourse loans available during a fiscal year or to
change recourse loans into nonrecourse loans, the
Secretary shall obtain from each processor that re-
ceives a loan under this section such assurances as
the Secretary considers adequate to ensure that the
processor will provide payments to producers that
are proportional to the value of the loan received by
the processor for sugar beets and sugarcane deliv-
ered by producers served by the processor. The Sec-
retary may establish appropriate minimum payments
for purposes of this paragraph.
(f) MARKETING ASSESSMENT.—
(1) SUGARCANE.—Effective for marketings of
raw cane sugar during the 1996 through 2003 fiscal
years, the first processor of sugarcane shall remit to
the Commodity Credit Corporation a nonrefundable
marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal
year 1996, 1.1 percent of the loan rate estab-
lished under subsection (a) per pound of raw
cane sugar, processed by the processor from do-
mestically produced sugarcane or sugarcane
molasses, that has been marketed (including the
transfer or delivery of the sugar to a refinery
for further processing or marketing); and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.375 per-
cent of the loan rate established under sub-
section (a) per pound of raw cane sugar, proc-
essed by the processor from domestically pro-
duced sugarcane or sugarcane molasses, that
has been marketed (including the transfer or
delivery of the sugar to a refinery for further
processing or marketing).
(2) SUGAR BEETS.—Effective for marketings of
beet sugar during the 1996 through 2003 fiscal
years, the first processor of sugar beets shall remit
to the Commodity Credit Corporation a nonrefund-
able marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal
year 1996, 1.1794 percent of the loan rate es-
tablished under subsection (a) per pound of
beet sugar, processed by the processor from do-
mestically produced sugar beets or sugar beet
molasses, that has been marketed; and
(B) in the case of marketings during each
of fiscal years 1997 through 2003, 1.47425
percent of the loan rate established under sub-
section (a) per pound of beet sugar, processed
by the processor from domestically produced
sugar beets or sugar beet molasses, that has
been marketed.
(3) COLLECTION.—
(A) TIMING.—A marketing assessment re-
quired under this subsection shall be collected
on a monthly basis and shall be remitted to the
Commodity Credit Corporation not later than
30 days after the end of each month. Any cane
sugar or beet sugar processed during a fiscal
year that has not been marketed by September
30 of the year shall be subject to assessment on
that date. The sugar shall not be subject to a
second assessment at the time that it is mar-
keted.
(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
the 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 cane sugar or beet
sugar involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) ENFORCEMENT.—The Secretary may en-
force this subsection in a court of the United States.
(g) FORFEITURE PENALTY.—
(1) IN GENERAL.—A penalty shall be assessed
on the forfeiture of any sugar pledged as collateral
for a nonrecourse loan under this section.
(2) CANE SUGAR.—The penalty for cane sugar
shall be 1 cent per pound.
(3) BEET SUGAR.—The penalty for beet sugar
shall bear the same relation to the penalty for cane
sugar as the marketing assessment for sugar beets
bears to the marketing assessment for sugarcane.
(4) EFFECT OF FORFEITURE.—Any payments
owed producers by a processor that forfeits of any
sugar pledged as collateral for a nonrecourse loan
shall be reduced in proportion to the loan forfeiture
penalty incurred by the processor.
(h) INFORMATION REPORTING.—
(1) DUTY OF PROCESSORS AND REFINERS TO
REPORT.—A sugarcane processor, cane sugar re-
finer, and sugar beet processor shall furnish the Sec-
retary, 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) 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.
(3) MONTHLY REPORTS.—Taking into consider-
ation the information received under paragraph (1),
the Secretary shall publish on a monthly basis com-
posite data on production, imports, distribution, and
stock levels of sugar.
(i) MARKETING ALLOTMENTS.—Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359aa et seq.) is repealed.
(j) CROPS.—This section (other than subsection (i))
shall be effective only for the 1996 through 2002 crops
of sugar beets and sugarcane.
SEC. 108. ADMINISTRATION.
(a) COMMODITY CREDIT CORPORATION.—
(1) USE
OF
CORPORATION.—The Secretary
shall carry out this title through the Commodity
Credit Corporation.
(2) PROHIBITION
ON
SALARIES
AND
EX-
PENSES.—Notwithstanding any other provision of
law, no funds of the Corporation shall be used for
any salary or expense of any officer or employee of
the Department of Agriculture.
(b) DETERMINATIONS
BY SECRETARY.—A deter-
mination made by the Secretary under this title or the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et
seq.) shall be final and conclusive.
(c) REGULATIONS.—The Secretary may issue such
regulations as the Secretary determines necessary to carry
out this title.
SEC. 109. ELIMINATION OF PERMANENT PRICE SUPPORT
AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—
The Agricultural Adjustment Act of 1938 is amended—
(1) in title III—
(A) in subtitle B—
(i) by striking parts II through V (7
U.S.C. 1326–1351); and
(ii) in part VI—
(I) by moving subsection (c) of
section 358d (7 U.S.C. 1358d(c)) to
appear after section 301(b)(17) (7
U.S.C. 1301(b)(17)) and redesignat-
ing the subsection as paragraph (18);
and
(II) by striking sections 358,
358a, and 358d (7 U.S.C. 1358,
1358a, and 1359); and
(B) by striking subtitle D (7 U.S.C.
1379a–1379j); and
(2) by striking title IV (7 U.S.C. 1401–1407).
(b) AGRICULTURAL ACT OF 1949.—
(1) TRANSFER
OF
CERTAIN
SECTIONS.—The
Agricultural Act of 1949 is amended—
(A) by transferring sections 106, 106A,
and 106B (7 U.S.C. 1445, 1445–1, 1445–2) to
appear after section 314A of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1314–1) and
redesignating the transferred sections as sec-
tions 315, 315A, and 315B, respectively;
(B) by transferring sections 111, 201(c),
and 204 (7 U.S.C. 1445f, 1446(c), 1446e) to
appear after section 304 of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1304) and re-
designating the transferred sections as sections
305, 306, and 307, respectively; and
(C) by transferring sections 404 and 416
(7 U.S.C. 1424 and 1431) to appear after sec-
tion 390 of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1390) and redesignating the
transferred sections as sections 390A and
390B, respectively.
(2) REPEAL.—The Agricultural Act of 1949 (7
U.S.C. 1421 et seq.) (as amended by paragraph (1))
is repealed.
(c) CONFORMING AMENDMENTS.—
(1) Section 306 of the Agricultural Adjustment
Act of 1938 (as transferred and redesignated by
subsection (b)(1)(B)) is amended by striking ‘‘204’’
and inserting ‘‘307’’.
(2) Section 361 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1361) is amended by striking
‘‘, corn, wheat, cotton, peanuts, and rice, estab-
lished’’.
(3) Section 371 of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1371) is amended—
(A) in the first sentence of subsection (a),
by striking ‘‘cotton, rice, peanuts, or’’; and
(B) in the first sentence of subsection (b),
by striking ‘‘cotton, rice, peanuts or’’.
SEC. 110. EFFECT OF AMENDMENTS.
(a) EFFECT ON PRIOR CROPS.—Except as otherwise
specifically provided and notwithstanding any other provi-
sion of law, this title and the amendments made by this
title shall not affect the authority of the Secretary to carry
out a price support or production adjustment program for
any of the 1991 through 1995 crops of an agricultural
commodity established under a provision of law in effect
immediately before the date of the enactment of this Act.
(b) LIABILITY.—A provision of this title or an
amendment made by this title shall not affect the liability
of any person under any provision of law as in effect be-
fore the date of the enactment of this Act.
TITLE II—CONSERVATION
SEC. 201. CONSERVATION.
(a) FUNDING.—Subtitle E of title XII of the Food
Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended
to read as follows:
‘‘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
(including contracts extended by the Secretary pur-
suant to section 1437 of the Food, Agriculture, Con-
servation, 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 live-
stock environmental assistance program under chapter 4
of subtitle D.’’.
(b) LIVESTOCK ENVIRONMENTAL ASSISTANCE PRO-
GRAM.—To carry out the programs funded under the
amendment made by subsection (a), 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:
‘‘CHAPTER 4—LIVESTOCK
ENVIRONMENTAL ASSISTANCE PROGRAM
‘‘SEC. 1240. DEFINITIONS.
‘‘In this chapter:
‘‘(1) 
LAND
MANAGEMENT
PRACTICE.—The
term ‘land management practice’ means a site-spe-
cific nutrient or manure management, irrigation
management, tillage or residue management, grazing
management, or other land management practice
that the Secretary determines is needed to protect,
in the most cost effective manner, water, soil, or re-
lated resources from degradation due to livestock
production.
‘‘(2) LARGE
CONFINED
LIVESTOCK
OPER-
ATION.—The term ‘large confined livestock oper-
ation’ 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 wa-
tering);
‘‘(iv) 100,000 laying hens or broilers
(if the facility has a liquid manure sys-
tem);
‘‘(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 de-
termined by the Secretary.
‘‘(4) OPERATOR.—The term ‘operator’ means a
person who is engaged in livestock production (as
defined 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 need-
ed to protect, in the most cost effective manner,
water, soil, or related resources from degradation
due to livestock 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 incen-
tive payments to operators who enter into contracts
with the Secretary, through a livestock environ-
mental assistance program.
‘‘(2) ELIGIBLE PRACTICES.—
‘‘(A) STRUCTURAL PRACTICES.—An opera-
tor who implements a structural practice shall
be eligible for technical assistance or cost-shar-
ing payments, or both.
‘‘(B) LAND MANAGEMENT PRACTICES.—An
operator who performs a land management
practice 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 seri-
ous threat to water, soil, or related resources exists,
as determined 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 incen-
tive payments to operators in a region, watershed, or
conservation priority area in which an agricultural
operation is located, the Secretary shall consider—
‘‘(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 op-
erator and the Secretary under this chapter may—
‘‘(A) apply to 1 or more structural prac-
tices 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
SEC-
RETARY.—To receive cost-sharing or incentive pay-
ments, or technical assistance, participating opera-
tors shall comply with all terms and conditions of
the contract and a plan, as established by the Sec-
retary.
‘‘(c) STRUCTURAL PRACTICES.—
‘‘(1) COMPETITIVE
OFFER.—The Secretary
shall administer a competitive offer system for oper-
ators proposing to receive cost-sharing payments in
exchange for the implementation of 1 or more struc-
tural 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 Sec-
retary 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 opera-
tor making an offer to implement a structural prac-
tice is a tenant of the land involved in agricultural
production, for the offer to be acceptable, the opera-
tor shall obtain the concurrence of the owner of the
land with respect to the offer.
‘‘(d) LAND MANAGEMENT PRACTICES.—The Sec-
retary shall establish an application and evaluation proc-
ess for awarding technical assistance or incentive pay-
ments, or both, to an operator in exchange for the per-
formance 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
to implement 1 or more structural practices
shall not be greater than 75 percent of the pro-
jected cost of each practice, as determined by
the Secretary, 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-shar-
ing payments 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 encourage an operator to perform 1 or more land
management practices.
‘‘(3) TECHNICAL ASSISTANCE.—
‘‘(A) FUNDING.—The Secretary shall allo-
cate funding under this chapter for the provi-
sion of technical assistance according to the
purpose and projected cost for which the tech-
nical assistance is provided for a fiscal year.
The allocated amount may vary according to
the type of expertise required, quantity of time
involved, and other factors as determined ap-
propriate 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 re-
ceive technical assistance under other authori-
ties 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
‘‘(B) prescribing such rules as the Sec-
retary determines necessary to ensure a fair
and reasonable application of the limitations es-
tablished under this subsection.
‘‘(g) REGULATIONS.—Not later than 180 days after
the effective date of this subsection, the Secretary shall
issue regulations to implement the livestock environmental
assistance program established under this chapter.’’.
(c) CONFORMING AMENDMENTS.—
(1) USE
OF COMMODITY CREDIT CORPORA-
TION.—Section 1241 of the Food Security Act of
1985 (16 U.S.C. 3841(a)) is amended to read as fol-
lows:
‘‘(a) The Secretary may use facilities, services, au-
thorities, and funds of the Commodity Credit Corporation
to carry out subtitle D. Except for the purpose of carrying
out subchapter B of chapter 1 of such subtitle, the Sec-
retary may not use funds of the Corporation to carry out
such subtitle unless the Corporation has received funds to
cover such expenditures from appropriations made to
carry out this subtitle.’’.
(2) WETLANDS RESERVE PROGRAM.—
(A) IN
GENERAL.—Section 1237 of the
Food Security Act of 1985 (16 U.S.C. 3837) is
amended—
(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:
‘‘(2) shall be for 15 years, but in no case shall
be a permanent easement.’’.
(3) CONSERVATION RESERVE PROGRAM.—
(A) IN GENERAL.—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
subsection and inserting ‘‘total of 36,400,000
acres.’’.
(B) OPTIONAL
CONTRACT
TERMINATION
BY PRODUCERS.—Section 1235 of the Food Se-
curity Act of 1985 (16 U.S.C. 3835) is amend-
ed by adding at the end the following:
‘‘(e) TERMINATION BY OWNER OR OPERATOR.—
‘‘(1) NOTICE OF TERMINATION.—An owner or
operator of land subject to a contract entered into
under this subchapter may terminate the contract by
submitting to the Secretary written notice of the in-
tention of the owner or operator to terminate the
contract.
‘‘(2) EFFECTIVE
DATE.—The contract termi-
nation shall take effect 60 days after the date on
which the owner or operator submits the written no-
tice under paragraph (1).
‘‘(3) PRORATED RENTAL PAYMENT.—If a con-
tract entered into under this subchapter is termi-
nated under this subsection before the end of the fis-
cal year for which a rental payment is due, the Sec-
retary shall provide a prorated rental payment cover-
ing the portion of the fiscal year during which the
contract was in effect.
‘‘(4) RENEWED
ENROLLMENT.—The termi-
nation of a contract entered into under this sub-
chapter shall not affect the ability of the owner or
operator who requested the termination to submit a
subsequent bid to enroll the land that was subject to
the contract into the conservation reserve.
‘‘(5) CONSERVATION REQUIREMENTS.—If land
that was subject to a contract is returned to produc-
tion of an agricultural commodity, the conservation
requirements under subtitles B and C shall apply to
the use of the land to the extent that the require-
ments are similar to those requirements imposed on
other similar lands in the area, except that the re-
quirements may not be more onerous that the re-
quirements imposed on other lands.
‘‘(6) REPAYMENT OF COST SHARE.—A person
who terminates a contract entered into under this
subchapter within less than 3 years after entering
into the contract shall reimburse the Secretary for
any cost share assistance provided under the con-
tract.’’.
(C) LIMITATION.—Notwithstanding any
other provision of law, no new acres shall be en-
rolled in the conservation reserve program es-
tablished under subchapter B of chapter 1 of
subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3831 et seq.) in calendar
year 1997.
TITLE III—AGRICULTURAL PRO-
MOTION AND EXPORT PRO-
GRAMS
SEC. 301. MARKET PROMOTION PROGRAM.
Effective 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,’’.
SEC. 302. EXPORT ENHANCEMENT PROGRAM.
Effective 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
Corporation shall make available to carry out the
program 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 IV—MISCELLANEOUS
SEC. 401. 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 consulta-
tion with approved insurance providers, the
Secretary may continue to offer cata-
strophic risk protection in a State (or a
portion of a State) through local offices of
the Department if the Secretary deter-
mines that there is an insufficient number
of approved insurance providers operating
in the State or portion to adequately pro-
vide catastrophic risk protection coverage
to producers.
‘‘(ii) COVERAGE BY APPROVED INSUR-
ANCE PROVIDERS.—To the extent that cat-
astrophic 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 as-
sume the policies) to the approved insur-
ance provider for performance of all sales,
service, and loss adjustment functions.’’;
and
(2) in paragraph (7), by striking subparagraph
(A) and inserting the following:
‘‘(A) IN
GENERAL.—Effective for the
spring-planted 1996 and subsequent crops, to
be eligible for any payment or loan under the
Agricultural Market Transition Act, the con-
servation reserve program, or any benefit de-
scribed in section 371 of the Consolidated 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 eco-
nomic significance in which the person has
an interest; or
‘‘(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connec-
tion 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
amended by inserting ‘‘seed crops,’’ after ‘‘turfgrass sod,’’.
SEC. 402. COLLECTION AND USE OF AGRICULTURAL QUAR-
ANTINE AND INSPECTION FEES.
Subsection (a) of section 2509 of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (21 U.S.C.
136a) is amended to read as follows:
‘‘(a) QUARANTINE AND INSPECTION FEES.—
‘‘(1) FEES AUTHORIZED.—The Secretary of Ag-
riculture may prescribe and collect fees sufficient—
‘‘(A) to cover the cost of providing agricul-
tural quarantine and inspection services in con-
nection with the arrival at a port in the cus-
toms territory of the United States, or the
preclearance or preinspection at a site outside
the customs territory of the United States, of
an international passenger, commercial vessel,
commercial aircraft, commercial truck, or rail-
road car;
‘‘(B) to cover the cost of administering this
subsection; and
‘‘(C) through fiscal year 2002, to maintain
a reasonable balance in the Agricultural Quar-
antine Inspection User Fee Account established
under paragraph (5).
‘‘(2) LIMITATION.—In setting the fees under
paragraph (1), the Secretary shall ensure that the
amount of the fees are commensurate with the costs
of agricultural quarantine and inspection services
with respect to the class of persons or entities pay-
ing the fees. The costs of the services with respect
to passengers as a class includes the costs of related
inspections of the aircraft or other vehicle.
‘‘(3) STATUS OF FEES.—Fees collected under
this subsection by any person on behalf of the Sec-
retary are held in trust for the United States and
shall be remitted to the Secretary in such manner
and at such times as the Secretary may prescribe.
‘‘(4) LATE PAYMENT PENALTIES.—If a person
subject to a fee under this subsection fails to pay the
fee when due, the Secretary shall assess a late pay-
ment penalty, and the overdue fees shall accrue in-
terest, as required by section 3717 of title 31, Unit-
ed States Code.
‘‘(5) AGRICULTURAL QUARANTINE INSPECTION
USER FEE ACCOUNT.—
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Treasury of the United States a
no-year fund, to be known as the ‘Agricultural
Quarantine Inspection User Fee Account’,
which shall contain all of the fees collected
under this subsection and late payment pen-
alties and interest charges collected under para-
graph (4) through fiscal year 2002.
‘‘(B) USE OF ACCOUNT.—For each of the
fiscal years 1996 through 2002, funds in the
Agricultural Quarantine Inspection User Fee
Account shall be available, in such amounts as
are provided in advance in appropriations Acts,
to cover the costs associated with the provision
100
of agricultural quarantine and inspection serv-
ices and the administration of this subsection.
Amounts made available under this subpara-
graph shall be available until expended.
‘‘(C) EXCESS
FEES.—Fees and other
amounts collected under this subsection in any
of the fiscal years 1996 through 2002 in excess
of $100,000,000 shall be available for the pur-
poses specified in subparagraph (B) until ex-
pended, without further appropriation.
‘‘(6) USE OF AMOUNTS COLLECTED AFTER FIS-
CAL YEAR 2002.—After September 30, 2002, the un-
obligated balance in the Agricultural Quarantine In-
spection User Fee Account and fees and other
amounts collected under this subsection shall be
credited to the Department of Agriculture accounts
that incur the costs associated with the provision of
agricultural quarantine and inspection services and
the administration of this subsection. The fees and
other amounts shall remain available to the Sec-
retary until expended without fiscal year limitation.
‘‘(7) STAFF YEARS.—The number of full-time
equivalent positions in the Department of Agri-
culture attributable to the provision of agricultural
quarantine and inspection services and the adminis-
101
tration of this subsection shall not be counted to-
ward the limitation on the total number of full-time
equivalent positions in all agencies specified in sec-
tion 5(b) of the Federal Workforce Restructuring
Act of 1994 (Public Law 103–226; 5 U.S.C. 3101
note) or other limitation on the total number of full-
time equivalent positions.’’.
SEC. 403. COMMODITY CREDIT CORPORATION INTEREST
RATE.
Notwithstanding any other provision of law, the
monthly Commodity Credit Corporation interest rate ap-
plicable to loans provided for agricultural commodities by
the Corporation shall be 100 basis points greater than the
rate determined under the applicable interest rate formula
in effect on October 1, 1995.
TITLE V—COMMISSION ON 21ST
CENTURY PRODUCTION AGRI-
CULTURE
SEC. 501. 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’’).
102
SEC. 502. COMPOSITION.
(a) MEMBERSHIP AND APPOINTMENT.—The Com-
mission shall be composed 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.—At least one of the members
appointed under each of the paragraphs (1), (2), and (3)
of subsection (a) shall be an individual who is primarily
involved in production agriculture. All other members of
the Commission shall be appointed from among individ-
uals having knowledge and experience in agricultural pro-
duction, 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.
103
(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 Act 30
days after six members of the Commission have been ap-
pointed.
(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. 503. 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
changes are the result of the amendments made by this
Act. The review shall include the following:
(1) An assessment of the initial success of pro-
duction flexibility contracts under section 102 in
supporting the economic viability of farming in the
United States.
106
SEC. 504. REPORTS.
(a) REPORT ON INITIAL REVIEW.—Not later than
June 1, 1998, the Commission shall submit to the Presi-
dent, the Committee on Agriculture of the House of Rep-
resentatives, and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report containing the results
of the initial review conducted under section 503(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 503(b).
SEC. 505. POWERS.
(a) HEARINGS.—The Commission may, for the pur-
pose of carrying out this Act, 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 as
may be necessary for the Commission to carry out its du-
ties under this Act. Upon request of the chairman of the
Commission, the head of the department or agency shall,
to the extent permitted by law, furnish such information
to the Commission.
107
(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. 506. 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. 507. 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
108
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 Act
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 GS–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. 508. TERMINATION OF COMMISSION.
The Commission shall terminate upon submission of
the final report required by section 504.
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