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‘‘(1) IN GENERAL.—The Secretary shall make
price support available to producers through loans,
purchases, or other operations on additional peanuts
from each crop at such levels 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, except that
the Secretary shall set the support rate on additional
peanuts at a level estimated by the Secretary to en-
sure that there are no losses to the Commodity
Credit Corporation on the sale or disposal of the
peanuts.
‘‘(2) ANNOUNCEMENT.—The Secretary shall
announce the level of support for additional peanuts
of each crop not later than February 15 preceding
the marketing year for the crop for which the level
of support 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
three producing areas (described in section
1446.95 of title 7 of the Code of Federal Regu-
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lations (January 1, 1989)) to a designated area
marketing 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 sections 358d and 358e of the
Agricultural Adjustment Act of 1938.
‘‘(B) ADMINISTRATIVE AND SUPERVISORY
ACTIVITIES.—The area marketing associations
shall be used in administrative and supervisory
activities relating to price support and market-
ing activities under this section and sections
358d and 358e of the Agricultural Adjustment
Act of 1938.
‘‘(C) ASSOCIATION COSTS.—Loans made to
the association under this paragraph shall in-
clude, in addition to the price support value of
the peanuts, such costs as the area marketing
association reasonably may incur in carrying
out its responsibilities, operations, and activities
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under this section and sections 358d and 358e
of the Agricultural Adjustment Act of 1938.
‘‘(2) POOLS FOR QUOTA AND ADDITIONAL PEA-
NUTS.—
‘‘(A) IN
GENERAL.—The Secretary shall
require 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. Peanuts physically
produced outside the State of New Mexico shall
not be eligible for entry into or participation in
the New Mexico pools. 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 shall be distrib-
uted in proportion to the value of the peanuts
placed in the pool by each producer. Net gains
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for peanuts in each pool shall consist of the fol-
lowing:
‘‘(i) QUOTA
PEANUTS.—For quota
peanuts, the net gains over and above the
loan indebtedness and other costs or losses
incurred on peanuts placed in the pool plus
an amount from all additional pool gains
equal to any loss on disposition of all pea-
nuts in the pool for quota peanuts.
‘‘(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 less any
amount allocated to offset any loss on the
pool for quota peanuts as provided in
clause (i).
‘‘(d) LOSSES.—Notwithstanding any other provision
of this section:
‘‘(1) QUOTA PEANUTS PLACED UNDER LOAN.—
Any distribution of net gains on additional peanuts
(other than net gains on additional peanuts in sepa-
rate 
type 
pools 
established 
under 
subsection
(c)(2)(A) for Valencia peanuts produced in New
Mexico) shall be first reduced to the extent of any
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loss by the Commodity Credit Corporation on quota
peanuts placed under loan.
‘‘(2) QUOTA LOAN POOLS.—
‘‘(A) 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 such producer under section
358–1(b)(8) of the Agricultural Adjustment Act
of 1938.
‘‘(B) OTHER
LOSSES.—Losses in area
quota pools shall be offset by reducing the gains
of any producer in such pool by the amount of
pool gains attributed to the same producer from
the sale of additional peanuts for export and
domestic edible use.
‘‘(e) DISAPPROVAL
OF QUOTAS.—Notwithstanding
any other provision of law, no price support may be made
available by the Secretary for any crop of peanuts with
respect to which poundage quotas have been disapproved
by producers, as provided for in section 358–1(d) of the
Agricultural Adjustment Act of 1938.
‘‘(f) QUALITY IMPROVEMENT.—
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‘‘(1) PRICE SUPPORT PEANUTS.—With respect
to peanuts under price support 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
Corporation loan stocks of peanuts sold for do-
mestic edible use must be shown to have been
officially inspected by licensed Department of
Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
‘‘(C) continue to endeavor to operate the
peanut price support program so as to improve
the quality of domestic peanuts and ensure the
coordination of activities under the Peanut Ad-
ministrative Committee established under Mar-
keting Agreement No. 146, regulating the qual-
ity of domestically produced peanuts (under the
Agricultural Marketing Agreement Act of 1937
(7 U.S.C. 601 et seq.)); and
‘‘(D) ensure that any changes made in the
price support program as a result of this sub-
section requiring additional production or han-
dling at the farm level shall be reflected as an
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‘‘(A) IN
GENERAL.—Except as provided
under paragraphs (4) and (5), 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 .65 percent
of the applicable national average support
rate;
‘‘(ii) pay, in addition to the amount
collected under clause (i), a marketing as-
sessment in an amount equal to the quan-
tity of peanuts acquired multiplied by .55
percent of the applicable national average
support rate; and
‘‘(iii) remit the amounts required
under clauses (i) and (ii) to the Commod-
ity Credit Corporation in a manner speci-
fied by the Secretary.
‘‘(B) DEFINITION.—For purposes of this
subsection, the term ‘first purchaser’ means a
person acquiring peanuts from a producer, ex-
cept that in the case of peanuts forfeited by a
producer to the Commodity Credit Corporation,
such term means the person acquiring the pea-
nuts from the Commodity Credit Corporation.
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‘‘(3) OTHER PEANUTS.—Each importer of pea-
nuts for domestic edible use produced outside of the
United States shall remit to the Commodity Credit
Corporation a nonrefundable marketing assessment
in an amount equal to the product obtained by mul-
tiplying the number of pounds of peanuts imported
by the importer by 1.2 percent of the national aver-
age support rate for domestic edible peanuts.
‘‘(4) 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 out-
side of the continental United States, the producer
shall be responsible for the full amount of the as-
sessment and shall remit the assessment by such
time as is specified by the Secretary.
‘‘(5) LOAN PEANUTS.—In the case of peanuts
that are pledged as collateral for a price support
loan made under this section, one-half of the assess-
ment 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 sec-
tion, the reduction in loan proceeds shall be treated
as having been paid to the producer.
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‘‘(6) PENALTIES.—If any person fails to collect
or remit an assessment required by this subsection
or fails to comply with such 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
price support level for the applicable crop year.
‘‘(7) ENFORCEMENT.—The Secretary may en-
force this subsection in the courts of the United
States.
‘‘(h) CROPS.—Notwithstanding any other provision
of law, this section shall be effective only for the 1996
through 2000 crops of peanuts.’’.
SEC. 6. REPORTS AND RECORDS.
Effective only for the 1996 through 2000 crops of
peanuts, the first sentence of section 373(a) of the Agri-
cultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is
amended by inserting before ‘‘all brokers and dealers in
peanuts’’ the following: ‘‘all producers engaged in the pro-
duction of peanuts,’’.
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SEC. 7. SUSPENSION OF CERTAIN PRICE SUPPORT PROVI-
SIONS.
Section 101 of the Agricultural Act of 1949 (7 U.S.C.
1441) shall not be applicable to the 1996 through 2000
crops of peanuts.
SEC. 8. REGULATIONS.
The Secretary of Agriculture shall issue such regula-
tions as are necessary to carry out this Act and the
amendments made by this Act. In issuing the regulations,
the Secretary—
(1) is encouraged to comply with subchapter II
of chapter 5 of title 5, United States Code;
(2) shall provide public notice through the Fed-
eral Register of any such proposed regulations; and
(3) shall allow adequate time for written public
comment prior to the formulation and issuance of
any final regulations.
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