Food Security Improvements Act of 1986
PL 99-260 (H.R.1614), enacted 03/20/1986

PUBLIC LAW 99-260—MAR. 20, 1986 
100 STAT. 45 
Public Law 99-260 
99th Congress 
An Act 
Entitled the "Food Security Improvements Act of 1986". 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Food Security Improvements Act of 
1986". 
SEC. 2. NONPROGRAM CROPS. 
(a) WHEAT.—Section 107D(c)(l) of the Agricultural Act of 1949 (as 
added by section 308 of the Food Security Act of 1985) is amended— 
(1) in subparagraph (C), by striking out "or nonprogram 
crops" each place it appears in clauses (i) and (iv) and inserting 
in lieu thereof "(except as provided in subparagraph (K))"; 
(2) in subparagraph (C)(iii), by striking out the last sentence 
and inserting in lieu thereof the following new sentence: "To be 
eligible for payments under this clause, such producers must 
devote such acreage to conservation uses (except as provided in 
subparagraph (K))."; and 
(3) by striking out subparagraph (K) and inserting in lieu 
thereof the following new subparagraph: 
"(K)(i) The Secretary may permit, subject to such terms and 
conditions as the Secretary may prescribe, all or any part of acreage 
otherwise required to be devoted to conservation uses as a condition 
of qualifying for payments under subparagraph (C) to be devoted to 
sweet sorghum or the production of guar, sesame, safflower, sun-
flower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, commodities for which no substantial domestic produc-
tion or market exists but that could yield industrial raw material 
being imported, or likely to be imported, into the United States, or 
commodities grown for experimental purposes (including kenaf), 
subject to the following sentence. The Secretary may permit such 
acreage to be devoted to such production only if the Secretary 
determines that— 
"(I) the production is not likely to increase the cost of the 
price support program and will not affect farm income ad-
versely; and 
"(II) the production is needed to provide an adequate supply of 
the commodity, or, in the case of commodities for which no 
substantial domestic production or market exists but that could 
yield industrial raw materials, the production is needed to 
encourage domestic manufacture of such raw material and 
could lead to increased industrial use of such raw material to 
. the long-term benefit of United States industry. 
"(ii)(I) -Except as provided in subclause (II), the Secretary shall 
permit, at the request of 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 and subject to such terms and conditions 
Mar. 20, 1986 
[H.R. 1614] 
Food Security 
Improvements 
Act of 1986. 
Agriculture and 
agricultural 
commodities. 
7 u s e 1281 note. 
Conservation. 
99 Stat. 1383. 
7 u s e 1445b-3. 
State and local 
governments. 
Ante, p. 36. 
100 STAT. 46 
PUBLIC LAW 99-260—MAR. 20, 1986 
99 Stat. 1395. 
7 u s e 1444e. 
State and local 
governments. 
Ante, p. 36. 
99 Stat. 1407. 
7 u s e 1444-1. 
as the Secretary may prescribe, all or any part of acreage otherwise 
required to be devoted to conservation uses as a condition of qualify-
ing for payments under subparagraph (C) in such State to be devoted 
to haying and grazing. 
"(11) Haying and grazing shall not be permitted for any crop under 
subclause (I) if the Secretary determines that haying and grazing 
would have an adverse economic effect.". 
(b) FEED GRAINS.—Section 105C(c)(l) of the Agricultural Act of 
1949 (as added by section 401 of the Food Security Act of 1985) is 
amended— 
(1) in subparagraph (B), by striking out "or nonprogram 
crops" each place it appears in clauses (i) and (iv) and inserting 
in lieu thereof "(except as provided in subparagraph (I))"; 
(2) in subparagraph (B)(iii), by striking out the last sentence 
and inserting in lieu thereof the following new sentence: "To be 
eligible for payments under this clause, such producers must 
devote such acreage to conservation uses (except as provided in 
subparagraph (I))."; and 
(3) by striking out subparagraph (I) and inserting in lieu 
thereof the following new subparagraph: 
"(I)(i) The Secretary may permit, subject to such terms and condi-
tions as the Secretary may prescribe, all or any part of acreage 
otherwise required to be devoted to conservation uses as a condition 
of qualifying for payments under subparagraph (B) to be devoted to 
sweet sorghum or the production of guar, sesame, safflower, sun-
flower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, commodities for which no substantial domestic produc-
tion or market exists but that could yield industrial raw material 
being imported, or likely to be imported, into the United States, or 
commodities grown for experimental purposes (including kenaf), 
subject to the following sentence. The Secretary may permit such 
acreage to be devoted to such production only if the Secretary 
determines that— 
"(I) the production is not likely to increase the cost of the 
price support program and will not affect farm income ad-
versely; and 
"(II) the production is needed to provide an adequate supply of 
the commodity, or, in the case of commodities for which no 
substantial domestic production or market exists but that could 
yield industrial raw materials, the production is needed to 
encourage domestic manufacture of such raw material and 
could lead to increased industrial use of such raw material to 
the long-term benefit of United States industry. 
"(ii)(I) Except as provided in subclause (II), the Secretary shall 
permit, at the request of 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 and subject to such terms and conditions 
as the Secretary may prescribe, all or any part of acreage otherwise 
required to be devoted to conservation uses as a condition of qualify-
ing for payments under subparagraph (B) in such State to be devoted 
to haying and grazing. 
"(II) Haying and grazing shall not be permitted for any crop under 
subclause (I) if the Secretary determines that haying and grazing 
would have an adverse economic effect.". 
(c) COTTON.—Section 103A(cXl) of the Agricultural Act of 1949 (as 
added by section 501 of the Food Security Act of 1985) is amended— 
PUBLIC LAW 99-260—MAR. 20, 1986 
100 STAT. 47 
(1) in subparagraph (B), by striking out "or nonprogram 
crops" each place it appears in clauses (i) and (iv) and inserting 
in lieu thereof "(except as provided in subparagraph (G))"; 
(2) in subparagraph (BXiii), by striking out the last sentence 
and inserting in lieu thereof the following new sentence: "To be 
eligible for payments under this clause, such producers must 
devote such acreage to conservation uses (except as provided in 
subparagraph (G))."; and 
(3) by striking out subparagraph (G) and inserting in lieu 
thereof the following new subparagraph: 
"(G)(i) The Secretary may permit, subject to such terms and 
conditions as the Secretary may prescribe, all or any part of acreage 
otherwise required to be devoted to conservation uses as a condition 
of qualifying for payments under subparagraph (B) to be devoted to 
sweet sorghum or the production of guar, sesame, safflower, sun-
flower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, commodities for which no substantial domestic produc-
tion or market exists but that could yield industrial raw material 
being imported, or likely to be imported, into the United States, or 
commodities grown for experimental purposes (including kenaf), 
subject to the following sentence. The Secretary may permit such 
acreage to be devoted to such production only if the Secretary 
determines that— 
"(I) the production is not likely to increase the cost of the 
price support program and will not affect farm income ad-
versely; and 
"(II) the production is needed to provide an adequate supply of 
the commodity, or, in the case of commodities for which no 
substantial domestic production or market exists but that could 
yield industrial raw materials, the production is needed to 
encourage domestic manufacture of such raw material and 
could lead to increased industrial use of such raw material to 
the long-term benefit of United States industry. 
"(ii)(I) Except as provided in subclause (II), the Secretary shall State and local 
permit, at the request of the State committee established under governments. 
section 8(b) of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(b)) for a State and subject to such terms and conditions Ante, p. 36. 
as the Secretary may prescribe, all or any part of acreage otherwise 
required to be devoted to conservation uses as a condition of qualify-
ing for payments under subparagraph (B) in such State to be devoted 
to haying and grazing. 
"(II) Haying and grazing shall not be permitted for any crop under 
subclause (I) if the Secretary determines that haying and grazing 
would have an adverse economic effect.". 
(d) RICE.—Section 101A(c)(l) of the Agricultural Act of 1949 (as 
added by section 601 of the Food Security Act of 1985) is amended— 
99 Stat. 1419. 
(1) in subparagraph (B), by striking out "or nonprogram 
'^ ^SC1441-1. 
crops" each place it appears in clauses (i) and (iv) and inserting 
in lieu thereof "(except as provided in subparagraph (G))"; 
(2) in subparagraph (B)(iii), by striking out the last sentence 
and inserting in lieu thereof the following new sentence: "To be 
eligible for payments under this clause, such producers must 
devote such acreage to conservation uses (except as provided in 
subparagraph (G))."; and 
(3) by striking out subparagraph (G) and inserting in lieu 
thereof the following new subparagraph: 
100 STAT. 48 
PUBLIC LAW 99-260—MAR. 20, 1986 
"(G)(i) The Secretary may permit, subject to such terms and 
conditions as the Secretary may prescribe, all or any part of acreage 
otherwise required to be devoted to conservation uses as a condition 
of qualifying for payments under subparagraph (B) to be devoted to 
sweet sorghum or the production of guar, sesame, safflower, sun-
flower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, commodities for which no substantial domestic produc-
tion or market exists but that could yield industrial raw material 
being imported, or likely to be imported, into the United States, or 
commodities grown for experimental purposes (including kenaf), 
subject to the following sentence. The Secretary may permit such 
acreage to be devoted to such production only if the Secretary 
determines that— 
"(I) the production is not likely to increase the cost of the 
price support program and will not affect farm income ad-
versely; and 
"(II) the production is needed to provide an adequate supply of 
the commodity, or, in the case of commodities for which no 
substantial domestic production or market exists but that could 
yield industrial raw materials, the production is needed to 
encourage domestic manufacture of such raw material and 
could lead to increased industrial use of such raw material to 
the long-term benefit of United States industry. 
State and local 
"(ii)(I) Except as provided in subclause (II), the Secretary shall 
governments. 
permit, at the request of the State committee established under 
section 8(b) of the Soil Conservation and Domestic Allotment Act (16 
Ante, p. 36. 
U.S.C. 590h(b)) for a State and subject to such terms and conditions 
as the Secretary may prescribe, all or any part of acreage otherwise 
required to be devoted to conservation uses as a condition of qualify-
ing for payments under subparagraph (B) in such State to be devoted 
to haying and grazing. 
"(II) Haying and grazing shall not be permitted for any crop under 
subclause (I) if the Secretary determines that haying and grazing 
would have an adverse economic effect.". 
7 use 1441-1 
(e) APPLICATION.—In the case of the 1986 crops of wheat, feed 
note. 
grains, upland cotton, and rice, the amendments made by this 
section shall not apply to any producer who demonstrates to the 
satisfaction of the Secretary of Agriculture that the producer, before 
February 26, 1986, planted or contracted to plant for the 1986 crop 
year a portion of the permitted acreage of the producer to any 
agricultural commodity other than wheat, feed grains, upland 
cotton, extra long staple cotton, rice, or soybeans. 
SEC. 3. FARM PROGRAM PAYMENT YIELDS. 
(a) 
ESTABLISHED PRICE PAYMENTS FOR 1986 
AND 1987 
CROP 
YEARS.—Section 506(b) of the Agricultural Act of 1949 (as added by 
99 Stat. 1463. 
section 1031 of the Food Security Act of 1985) is amended— 
7 use 1466. 
(1) in paragraph (1), by striking out "paragraph (2)" and 
inserting in lieu thereof "paragraphs (2) and (3)"; 
(2) by redesignating paragraphs (2) through (4) as paragraphs 
(3) through (5), respectively; and 
(3) by inserting after paragraph (1) the following new 
paragraph: 
"(2)(A) In the case of the 1986 crop year for a commodity, if the 
farm program payment yield for a farm is reduced more than 3 
percent below the farm program payment yield for the 1985 crop 
year, the Secretary shall make available to producers established 
PUBLIC LAW 99-260—MAR. 20, 1986 
100 STAT. 49 
99 Stat. 1463. 
7 u s e 1466. 
price payments for the commodity (in the form of commodities 
owned by the Commodity Credit Corporation) in such amount as the 
Secretary determines is necessary to provide the same total return 
to producers as if the farm program payment yield had not been 
reduced more than 3 percent below the farm program payment yield 
for the 1985 crop year. 
"(B) In the case of the 1987 crop year for a commodity, if the farm 
program payment yield for a farm is reduced more than 5 percent 
below the farm program payment yield for the 1985 crop year, the 
Secretary shall make available to producers established price pay-
ments for the commodity (in the form of commodities owned by the 
Commodity Credit Corporation) in such amount as the Secretary 
determines is necessary to provide the same total return to produc-
ers as if the farm program payment yield had not been reduced 
more than 5 percent below the farm program payment yield for the 
1985 crop year.". 
(b) FARM PROGRAM PAYMENT YIELDS FOR 1988 AND SUBSEQUENT 
CROP YEARS.—Section 506(c)(1) of the Agricultural Act of 1949 is 
amended by adding at the end thereof the following new sentence: 
"Notwithstanding any other provision of this paragraph, for pur-
poses of establishing a farm program payment yield for any program 
crop for any farm for the 1988 and subsequent crop years, the farm 
program payment yield for the 1986 crop year may not be reduced 
more than 10 percent below the farm program payment yield for the 
farm for the 1985 crop year.". 
SEC. 4. SPECIAL ASSISTANT FOR AGRICULTURAL TRADE AND FOOD 
ASSISTANCE. 
(a) CHANGE OF TITLE.—(1) Section 1113 of the Food Security Act of 99 Stat. 1479. 
1985 is amended— 
'
^ USC 1736-1. 
(A) in the caption, by striking out "FOOD AID" and inserting 
in lieu thereof "FOOD ASSISTANCE"; and 
(B) in subsection (a), by striking out "Food Aid" and inserting 
in lieu thereof "Food Assistance". 
(2) The table of contents in section 2 of such Act is amended by 
striking out "Food Aid" in the item relating to section 1113 and 
inserting in lieu thereof "Food Assistance". 
(b) APPOINTMENT OF INITIAL SPECIAL ASSISTANT.—Section 1113(a) President of U.S. 
of such Act is amended by adding at the end thereof the following 
new sentence: "The President shall appoint the initial Special 
Assistant not later than May 1,1986.". 
(c) REMOVAL OF LEVEL I CLASSIFICATION.—Section 5312 of title 5, 
United States Code, as amended by section 1113(d) of the Food 
Security Act of 1985, is amended by striking out the item relating to: 
"Special Assistant for Agricultural Trade and Food Aid.". 
(d) COMPENSATION FOR THE SPECIAL ASSISTANT.—Section 1113(d) of 7 use i736-i. 
the Food Security Act of 1985 is amended to read as follows: 
"(d) Compensation for the Special Assistant shall be fixed by the President of U.S. 
President at an annual rate of basic pay of not less than the rate 
applicable to positions in level III of the Executive Schedule.". 
SEC. 5. TARGETED EXPORT ASSISTANCE. 
Section 1124 of the Food Security Act of 1985 is amended by 
striking out subsection (a) and inserting in lieu thereof the following 
new subsection: 
"(a) For export activities authorized to be carried out by the 
Secretary of Agriculture or the Commodity Credit Corporation, in 
99 Stat. 1481. 
7 USC 1736s. 
100 STAT. 50 
PUBLIC LAW 99-260—MAR. 20, 1986 
99 Stat. 1483. 
7 u s e 1736v. 
99 Stat. 1383. 
7 u s e 1445b-3. 
State and local 
governments. 
Ante, p. 36. 
99 Stat. 1395. 
7 u s e 14448. 
addition to any funds or commodities otherwise required under this 
Act to be used for such activities— 
"(1) for each of the fiscal years ending September 30, 1986, 
through September 30, 1988, the Secretary shall use under this 
section not less than $110,000,000 of funds of, or commodities 
owned by, the Corporation; and 
"(2) for each of the fiscal years ending September 30, 1989, 
and September 30, 1990, the Secretary shall use under this 
section not less than $325,000,000 of funds of, or commodities 
owned by, the Corporation.". 
SEC. 6. DEVELOPMENT AND EXPANSION OF MARKETS FOR UNITED 
STATES AGRICULTURAL COMMODITIES. 
Subsection (i) of section 1127 of the Food Security Act of 1985 is 
amended to read as follows: 
"(i) During the period beginning October 1, 1985, and ending 
September 30, 1988, the Secretary shall use agricultural commod-
ities and the products thereof referred to in subsection (a) to carry 
out this section, except that the value of the commodities and 
products may not be less than $1,000,000,000, nor more than 
$1,500,000,000. To the maximum extent practicable, such commod-
ities shall be used in equal amounts during each of the years in such 
period.". 
SEC. 
7
. 
HAY 
AND 
GRAZING 
ON 
DIVERTED 
WHEAT 
AND 
FEED 
GRAIN 
ACRE-
AGE. 
(a) WHEAT.—Subparagraph (C) of section 107D(f)(4) of the Agricul-
tural Act of 1949 (as added by section 308 of the Food Security Act of 
1985) is amended to read as follows: 
"(C)(i) Except as provided in clause (ii), the Secretary shall permit, 
at the request of the State committee established under section 8(b) 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590hOb)) for a State and subject to such terms and conditions as the 
Secretary may prescribe, all or any part of such acreage diverted 
from production by participating producers in such State to be 
devoted to— 
"(I) hay and grazing during not less than 5 of the principal 
growing months (as established for a State by the State commit-
tee), in the case of the 1986 crop of wheat; and 
"(II) grazing, in the case of each of the 1987 through 1990 
crops of wheat. 
"(ii) In the case of each of the 1987 through 1990 crops of wheat, 
grazing shall not be permitted for any crop of wheat under clause 
(i)(II) during any 5-consecutive-month period that is established for 
such crop for a State by the State committee established under 
section 8(b) of such Act.". 
O
t
)
) FEED GRAINS.—Subparagraph (C) of section 105C(f)(4) of the 
Agricultural Act of 1949 (as added by section 401 of the Food 
Security Act of 1985) is amended to read as follows: 
"(C)(i) Except as provided in clause (ii), the Secretary shall permit, 
at the request of the State committee established under section 8(b) 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590hOt))) for a State and subject to such terms and conditions as the 
Secretary may prescribe, all or any part of such acreage diverted 
from production by participating producers in such State to be 
devoted to— 
PUBLIC LAW 99-260—MAR. 20, 1986 
100 STAT. 51 
99 
Stat. 1461. 
7 use 1464. 
Conservation. 
99 
Stat. 1383, 
1395, 1407, 1419. 
7 use 1445b-3, 
1444e, 1444-1, 
1441-1. 
"(I) hay and grazing during not less than 5 of the principal 
growing months (as established for a State by the State commit-
tee), in the case of the 1986 crop of feed grains; and 
"(II) grazing, in the case of each of the 1987 through 1990 
crops of feed grains, 
"(ii) In the case of each of the 1987 through 1990 crops of feed 
grains, grazing shall not be permitted for any crop of feed grains 
under clause (i)(II) during any 5-consecutive-month period that is 
established for such crop for a State by the State committee estab-
lished under section 8(b) of such Act.". 
SEC. 8. PROTECTION OF BASE ON NONPROGRAM CROP ACREAGE. 
Section 504(b)(2) of the Agricultural Act of 1949 (as added by 
section 1031 of the Food Security Act of 1985) is amended— 
(1) by redesignating clause (D) as clause (E); and 
(2) by striking out clause (C) and inserting in lieu thereof the 
following new clauses: 
"(C) acreage in an amount equal to the difference between the 
permitted acreage for a program crop and the acreage planted 
to the crop, if the acreage considered to be planted is devoted to 
conservation uses or the production of commodities permitted 
under 
section 
107D(c)(l)(K), 105C(c)(l)(I), 103A(c)(l)(G), or 
101A(c)(l)(G), as the case may be; 
"(D) in the case of each of the 1986 through 1989 crop years, 
acreage in an amount equal to not to exceed 50 percent of the 
permitted acreage for a program crop for each of the 1986 and 
1987 crop years, 35 percent of the permitted acreage for the 
1988 crop year, and 20 percent of the permitted acreage for the 
1989 crop year, if— 
"(i) the acreage considered to be planted is planted to a 
crop, other than a program crop, peanuts, soybeans, extra 
long staple cotton, or commodities specified in clause (C); 
"(ii) the producers on the farm plant for harvest to the 
program crop at least 50 percent of the permitted acreage 
for such crop; and 
"(iii) payments are not received by producers under 
107D(c)(l)(C), 105C(c)(l)(B), 103A(c)(l)(B), or 101A(c)(l)(B), as 
the case may be; and". 
SEC. 9. MARKETWIDE SERVICE PAYMENTS. 
(a) HEARING.—Not later than 90 days after receipt of a proposal to 
amend a milk marketing order in accordance with section 8c(5)(J) of 
the Agricultural Adjustment Act, reenacted with amendments by 7 USe 608c note. 
the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 
608c(5)(J)) (as added by section 133 of the Food Security Act of 1985), 99 Stat. 1373. 
the Secretary of Agriculture shall conduct a hearing on the 
proposal. 
(b) IMPLEMENTATION.—Not later than 120 days after a hearing is 
conducted under subsection (a), the Secretary shall implement, in 
accordance with the Agricultural Adjustment Act, a marketwide 7 use 601 note. 
service payment program under section 8c(5)(J) of such Act that 
meets the requirements of such Act. 
100 STAT. 52 
PUBLIC LAW 99-260—MAR. 20, 1986 
SEC. 10. INCREASED MILK ASSESSMENTS TO MEET DEFICIT REDUCTION 
REQUIREMENTS. 
Effective March 1, 1986, section 201(d)(2) of the Agricultural Act of 
1949 (as amended by section 101(a) of the Food Security Act of 1985 
99 Stat. 1362. 
(Public Law 99-198)) is amended— 
7 use 1446. 
(1) in subparagraph (B), by striking out "The" and inserting in 
lieu thereof "Except as provided in subparagraph (E), the"; and 
(2) by adding at the end thereof the following new 
subparagraph: 
"(E)(i) In lieu of any reductions in payments made by the 
Secretary for the purchase of milk and the products of milk 
under this subsection during the period beginning March 1, 
1986, and ending September 30, 1986, required under the order 
issued by the President on February 1, 1986, under section 252 
of the Balanced Budget and Emergency Deficit Control Act of 
99 Stat. 1072. 
1985 (Public Law 99-177), the Secretary shall increase the 
2 use 902. 
amount of the reduction required under subparagraph (A) 
during the period beginning April 1, 1986, and ending Septem-
ber 30, 1986, as the sole means of meeting any reductions 
required under the order in payments made by the Secretary for 
the purchase of milk and the products of milk under this 
subsection. 
"(ii) The aggregate amount of any increased reduction under 
clause (i) shall be equal, to the extent practicable, to the aggre-
gate amount of the reduction that would otherwise be required 
under the order referred to in clause (i) in payments made by 
the Secretary for the purchase of milk and the products of milk 
under this subsection during the period beginning March 1, 
1986, and ending September 30, 1986, except that the amount of 
any increased reduction under clause (i) may not exceed 12 
cents per hundredweight of milk marketed.". 
SEC. 11. RESEARCH ON EXTERNAL COMBUSTION ENGINES. 
Exports. 
Section 4(m) of the Commodity Credit Corporation Charter Act is 
15 use 714b. 
amended by adding at the end thereof a new sentence as follows: 
"Notwithstanding any other provision of this Act, the Corporation 
may, in the exercise of its power to remove and dispose of surplus 
agricultural commodities, export, or cause to be exported, not to 
exceed such amounts of commodities owned by the Corporation as 
will enable the Corporation to finance research and development of 
external combustion engines using fuel other than that derived from 
petroleum and petroleum products. The total value of commodities 
exported annually for the purposes of the research authorized by the 
preceding sentence may not exceed $30,000,000.". 
SEC. 12. QUALITY CONTROL STUDIES UNDER THE FOOD STAMP PROGRAM. 
99 Stat. 1587. 
Section 1538 of the Food Security Act of 1985 is amended— 
7 use 2025 note. 
(j) jn subsection (a)(3), by striking out "of enactment of this 
Act" and inserting in lieu thereof "the Secretary and the 
National Academy of Sciences enter into the contract required 
under paragraph (2)"; 
(2) in subsection (c)(1), by striking out "18 months after the 
date of enactment of this Act" and inserting in lieu thereof "6 
months after the date on which the results of both studies 
required under subsection (a)(3) have been reported"; and 
(3) in subsection (c)(2), by striking out "2 years after the date 
of enactment of this Act" and inserting in lieu thereof "6 
PUBLIC LAW 99-260—MAR. 20, 1986 
100 STAT. 53 
months after the date on which the results of both studies 
required under subsection (a)(3) have been reported,". 
SEC. 13. ADVANCE RECOURSE LOANS. 
7 USC 1433c-l. 
(a) It is the sense of Congress that the Secretary of Agriculture 
carry out a program authorized by section 424 of the Agricultural 
Act of 1949. Such program, if implemented, shall provide for the 99 Stat. 1447. 
following: 
7 use 1433c. 
(1) Advance recourse loans shall be made available only to 
those producers of a commodity who are unable to obtain 
sufficient credit elsewhere to finance the production of the 1986 
crop of that commodity, taking into consideration prevailing 
private and cooperative rates and terms for loans for similar 
purposes (as determined by the Secretary) in the community in 
or near which the applicant resides. A producer who has re-
ceived a commitment or been furnished sufficient credit or a 
loan for production of the 1986 crop of a commodity shall not be 
eligible for an advance recourse loan to finance the production 
of that commodity for such crop year. 
(2) Advance recourse loans shall be made available to produc-
ers of a commodity at the applicable nonrecourse loan rate for 
the commodity (as determined by the Secretary). Within the 
limits set out in paragraphs (5) and (7), advance recourse loans 
shall be available— 
(A) to producers of wheat, feed grains, cotton, and rice 
who agree to participate in the program announced for the 
commodity on an amount of the commodity equal to one-
half of the farm program yield for the commodity multi-
plied by the farm program acreage intended to be planted 
to the commodity for harvest in 1986, as determined by the 
Secretary; 
(B) to producers of tobacco and peanuts who are on a farm 
for which a marketing quota or poundage quota has been 
established on an amount of the commodity equal to one-
half of the farm marketing quota or poundage quota for the 
commodity, as determined by the Secretary; and 
(C) to producers of other commodities on an amount of 
the commodity equal to one-half of the farm yield for the 
commodity multiplied by the farm acreage intended to be 
planted to the commodity for harvest in 1986, as deter-
mined by the Secretary. 
(3) An advance recourse loan under section 424 shall come due Contracts. 
at such time immediately following harvest as the Secretary 
determines appropriate. Each loan contract entered into under 
section 424 shall specify the date on which the loan is to come 
due. 
(4)(A) The Secretary shall establish procedures, when prac-
ticalale, under which a producer, simultaneously with repay-
ment of his recourse loan, may obtain a nonrecourse loan on his 
crop (as otherwise provided for in the Agricultural Act of 1949) 7 use 1421 note. 
in an amount sufficient to repay his recourse loan. 
(B) In cases in which nonrecourse loans under such Act are 
not normally made available directly to producers, the Sec-
retary shall establish procedures under which a producer may 
repay a recourse loan at the same time the producer receives 
advances or other payment from the producer's disposition of 
his crop. 
100 STAT. 54 
PUBLIC LAW 99-260—MAR. 20, 1986 
Insurance. 
Insurance. 
99 Stat. 1447. 
7 use 1433c. 
Ante, p. 36. 
Regulations. 
(5) Advance recourse loans shall be made available as needed 
solely to cover costs involved in the production of the 1986 crop 
that are incurred or are outstanding on or after the date of 
enactment of this section. 
(6) To obtain an advance recourse loan, the producer on a 
farm must— 
(A) provide as security for the loan a first lien on the crop 
covered by the loan or provide such other security as may 
be available to the producer and determined by the Sec-
retary to be adequate to protect the Government's interests; 
and 
(B) obtain multiperil crop insurance, if available, to pro-
tect the crop that serves as security for the loan. 
If a producer does not have multiperil crop insurance and is 
located in a county in which the signup period for multiperil 
crop insurance has expired, the producer shall be required to 
obtain other crop insurance, if available. 
(7) The total amount in advance recourse loans that may be 
made to a producer under section 424 may not exceed $50,000. 
(8) An advance recourse loan may be made available only to a 
producer who agrees to comply with such other terms and 
conditions determined appropriate by the Secretary and consist-
ent with the provisions of section 424. 
03) The Secretary shall carry out the program provided for under 
section 424 through the Commodity Credit Corporation, using the 
services of the Agricultural Stabilization and Conservation Service 
and the county committees established under section 80b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h0))) to 
make determinations of eligibility with respect to the credit test 
under subsection (a)(1), and determinations as to the sufficiency of 
security under subsection (a)(6). The Secretary may use such 
committees for such other purposes as the Secretary determines 
appropriate in carrying out section 424. 
(c) It is further the sense of Congress that the Secretary of 
Agriculture issue or, as appropriate, amend regulations to im-
plement any program established under section 424 as soon as 
practicable, but not later than 15 days after the date of enactment of 
this Act. Loans and other assistance provided under such program 
shall be made available beginning on the date such regulations are 
issued or amended. 
SEC. 
14. TRANSFER 
OF 
AGRICULTURAL 
PRODUCTS 
STORED IN 
WAREHOUSES. 
Section 17 of the United States Warehouse Act (7 U.S.C. 259) is 
amended— 
(1) by striking out "That" and inserting in lieu thereof "(a) 
Except as provided in subsection (b),"; and 
(2) by adding at the end thereof the following new subsection: 
"(h)(1) Notwithstanding any other provision of this Act, if a 
warehouseman because of a temporary shortage lacks sufficient 
space to store the agricultural products of all depositors in a licensed 
warehouse, the warehouseman may, in accordance with regulations 
issued by the Secretary of Agriculture and subject to such terms and 
conditions as the Secretary may prescribe, transfer stored agricul-
tural products for which receipts have been issued out of such 
warehouse to another licensed warehouse for continued storage. 
PUBLIC LAW 99-260—MAR. 20, 1986 
100 STAT. 55 
"(2) The warehouseman of a licensed warehouse from which agri-
cultural products have been transferred under paragraph (1) shall 
deliver to the rightful owner of such products, on request, at the 
licensed warehouse where first deposited, such products in the 
amount, and of the kind, quality, and grade, called for by 
the receipts or other evidence of storage of such owner.". 
SEC. 
1
5
. 
PLAN 
FOR 
THE 
USE 
OF 
AFRICA 
FAMINE 
RELIEF. 
Title II of the Act of April 4, 1985, entitled "An Act Making 
urgent supplemental appropriations for the fiscal year ending 
September 30, 1985, for emergency famine relief and recovery in 
Africa, and for other purposes", Public Law 99-10, is amended by 99 Stat. 28. 
striking out "the Administrator" and all that follows through 
"Africa." and inserting in lieu thereof the following: "the President 
certifies that the use of such funds is essential to famine relief in 
Africa. The Administrator of the Agency for International Develop-
ment shall prepare and submit to Congress before April 15, 1986, a 
plan specifying how such additional funds for African famine relief 
would be used. The plan shall ensure, among other things, that the 
funds for the reserve, if utilized, shall be available to cover all costs 
for inland transportation of food only as are necessary for its timely 
delivery.". 
SEC. 16. ESTIMATION OF COMMODITY CREDIT CORPORATION UNCOMMIT-
TED STOCK. 
Section 416(b)(10)(B) of the Agricultural Act of 1949 is amended— 99 Stat. 1467. 
(1) by inserting before the period at the end of the second ^ use I43i. 
sentence the following: "or, in the case of fiscal year 1986, prior 
to March 31,1986"; and 
(2) by inserting before the period at the end of the third 
sentence the following: "or, in the case of fiscal year 1986, 
March 31,1986". 
Approved March 20, 1986. 
LEGISLATIVE HISTORY—H.R. 1614 (S. 822) (S. 2143): 
HOUSE REPORTS: No. 99-146 (Comm. on Agriculture). 
CONGRESSIONAL RECORD: 
Vol. 131 (1985): June 4, considered and passed House. 
Vol. 132 (1986): Mar. 5, S. 2143 considered and passed Senate. 
Mar. 6, H.R. 1614 considered and passed Senate, amended, 
in lieu of S. 2143. House concurred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): 
Mar. 20, Presidential statement.